Annual report - Performance Management Division

CHAPTER 12GRANT IN-AID SCHEME TO STATECHANNELISING AGENCIES OF NATIONALMINORITIES DEVELOPMENT & FINANCECORPORATION12.1 The National Minorities Development & Finance Corporation implements itsschemes through the State Channelising Agencies (SCAs). These are agencies so designatedby the concerned State Governments which identify the beneficiaries, channelise thelendings and also make recoveries from the beneficiaries. However, most of the StateChannelising Agencies have a very weak infrastructure leading to a weak delivery system.Consequently, the performance and the ambit of coverage of NMDFC may not improveunless the infrastructure of these agencies is improved.12.2 The Ministry launched a scheme of Grants-in-Aid for improvement of theinfrastructure of the SCAs during 2007-08. Under the scheme, 90% of the expenditure is tobe borne by the Central Government and the State Government make matching contributionof 10%. Out of ` 4 crore sanctioned for this scheme for the financial year 2010-11,` 3.83 crore was released. For 2011-12, ` 2.00 crore has been sanctioned under thescheme and proposals for release are being considered.36