Policy watch January 2007

 


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Jharkhand pays for not having panchayats
Jharkhand has lost Rs 1,800 crore in rural development assistance from the Union government in the last six years, as it doesn’t have panchayats. Jharkhand is the only state in India, which has not conducted elections to local bodies after the 72nd and 73rd constitutional amendments. At an average, every year the Centre should have transferred Rs 200 crore to Jharkhand as aid for rural development through panchayats. Add to this the annual Rs 100 crore for municipalities for which also the state has not held elections. This puts the total loss at Rs 1,800 crore in last six years. Most of these funds are meant for construction of roads, renovation of ponds, and construction and augmentation of irrigation.

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Rs 1,58,310 crore deficit in rural infrastructure
The National Council for Applied Economic Research (NCAER) has estimated that rural India has a deficit of Rs 1,58,310 crore in the telecommunications, power, roads and transport, and water and sanitation sectors. NCAER’s recently released India Rural Infrastructure Report points at lack of both governance and finance as the causes. It strongly recommends decentralisation of delivery of the services mentioned above, and seeking fresh financing sources. Going by this estimate, even doubling of current allocations will not be enough to finance the deficit.

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Panchayats to have say in GM crop trials
From now on, companies will need the consent of panchayats and village councils before taking up trials of genetically modified (GM) crops. The Centre took this decision after a series of incidents in which seed companies started trials without informing local communities. This was followed by protests in Chhattisgarh, Haryana and Uttar Pradesh. The Genetic Engineering Approval Committee has decided that from now on, approval for field trials will be issued only after companies specify the location and get consent from local bodies.

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In 2007, 22 crore people will be below poverty line
The Union ministry of housing and urban poverty alleviation’s compendium on urban poverty and slums estimates that in 2007 the number of people living below the poverty line (BPL) category will rise to 22.01 crore. Bihar (with 5.35 crore people in the BPL category) will be the poorest state in India, displacing Orissa. Among union territories, Delhi will top the list with over 3.38 lakh persons. The summary says that Daman and Diu, Goa, Chandigarh, Pondicherry and Lakshadweep will wipe out poverty -- reporting a negligent number. States in which the BPL population will cross the one crore mark include West Bengal, Orissa and Maharashtra. Madhya Pradesh’s BPL community will rise to two crore during 2007.

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Karnataka to fight its own land grabbing
Karnataka’s agriculture department has revived its State Land Use Board to fight the industry department’s aggressive land acquisition drive. The decision came after the state’s Industrial Development Board made public its plan to acquire 25,000 acres of land -- mostly farms -- for setting up industrial townships. The State Land Use Board had been rendered non-functional by successive governments. Now, it plans to regenerate 10 lakh hectares of wastelands for agricultural purposes. A few years ago, the board had prepared a 25-year perspective plan for development of barren land. However, it could not work on it, as there was no staff to implement it.

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States sign MoU on cooperative societies
Eleven states have accepted the Centre’s revival package for short-term cooperative credit structure. This move will make farmers debt free and raise their capital base. The decision was taken based on the recommendations of the task force headed by A Vaidyanathan. Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttaranchal and Uttar Pradesh and union territory Dadra and Nagar Haveli have already signed a memorandum of understanding with the Centre and the National Bank for Agriculture and Rural Development in this regard. These states account for 60.7 per cent of the country’s Primary Agricultural Credit Societies (PACS) and 70 per cent of the total district central cooperative banks (DCCBs). The financial assistance under the package is estimated at Rs 13,596 crore -- to be shared by the Centre, state governments and cooperative credit structure.

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Assam Hill Land and Ecological Sites Bill passed
The state legislative assembly has passed the Assam Hill Land and Ecological Sites (Protection and Management) Bill, 2006. The Bill was introduced to prevent indiscriminate cutting of hills and filling up of water bodies in urban areas, which had led to serious ecological problems in places like Guwahati. Prior to this, many assembly members had expressed apprehension that the Bill would take away traditional settlers’ rights over the hills. However, the state government assured them that it is committed to granting land rights to those who have been living on the hills for the past 15 years or more. It also promised a new land use policy for such settlers. Under the Bill, the state government can bring any hill under its purview for protection.


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Tamil Nadu’s new panchayat scheme
Tamil Nadu has announced a new rural development scheme, which will be implemented through panchayats. Under the scheme, Rs 500 crore (Rs 20 lakh for every panchayat) will be channelised through local bodies annually. The panchayats can spend one-fourth of the annual allocation as they wish within the functions devolved for them. One-fifth of the village panchayats in each block will be covered under this scheme every year. The bodies will be selected on the basis of their per capita income. In this way, all panchayats will come under the scheme in the next five years.

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National federation of panchayats formed
Panchayat bodies from various states have come together to form a registered society called the Association of Local Governance in India. The federation will work as the national level union for local bodies. It will try to achieve better power devolution and to operate as a unified pressure group. The Delhi-based Indian Institute of Social Sciences has facilitated formation of this society. Similar state-level federations will also come up soon to make the process of forming the national federation participatory and democratic.

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