Annual Report 2003-2004

Governments. There are many infrastructure projects, which have been started
but are lying incomplete for want of resources. Even though there is an urgent
need of creating adequate employment opportunities in rural areas through
development of infrastructure, there had been virtually no institutional
arrangements for financing rural infrastructure.
Against this background, the Government of India in the Budget of
1995-1996 announced, the scheme for setting up of Rural Infrastructure
Development Fund (RIDF) to be operationalised by NABARD for financing of
the ongoing as well as the new infrastructure projects.
RIDF is being utilized for providing financial assistance to the State
Government for completing/taking of new infrastructure projects in rural areas.
The criteria for the selection of a project are:
the State Government should accord priority to the project;
the project should be such that it could be completed within two
to three years.
2. Projects, which can be sanctioned under RIDF
(a) Irrigation Sector : Medium, Minor and Major Irrigation Projects
(b) Flood Control Projects
(c) Agriculture and Allied Activities
(d) Social Sectors (Support to rural water supply system, infrastructure
for PHC and educational institutions, e-governance)
(e) Rural Connectivity (roads and bridges)
3. Procedure for Sanction of Projects
The Departments concerned formulate the project proposals. Project
Screening Committee (PSC), now renamed as High Power Committee (HPC),
headed by the Development Commissioner, examines the proposals along with
the estimates and feasibility report. After examination, the HPC recommends
the same to regional office of NABARD at Bhubaneswar for sanction. The
Consultant, after field visit submits the appraisal report indicating whether the
project is recommended or not. The main aspects seen while appraising the
project are :
(a) Whether the project is technically feasible, financially and
economically viable.
(b) Whether the State has the required machinery to execute the
project within a short period.
After receipt of appraisal report of the Consultant and his
recommendation, the project proposals are sent to the Head Office of the