Union Govt warns to stop financial assistance to J&K under PMGSY

Mohinder Verma

JAMMU, June 8: In an embarrassing situation for the PDP-BJP Coalition Government, the Centre has warned to stop financial assistance to Jammu and Kashmir under its flagship scheme of Pradhan Mantri Gram Sadak Yojana (PMGSY) for inordinate delay in transfer of Rs 157 crore to Jammu and Kashmir Rural Road Development Agency. Such a huge amount could not be utilized for the intended purpose because of withholding of the same by those at the helm of affairs in the Finance Department without any plausible reason.
Official sources told EXCELSIOR funds under all Centrally Sponsored Schemes are being released by the Government of India to the State Consolidated Fund and thereafter the funds are transferred to the respective departments for utilization strictly as per the guidelines of the respective schemes.
On April 29, 2015, the Union Ministry of Rural Development vide letter No. J-12020/1/2015-RC conveyed to Jammu and Kashmir Government payment of grant-in-aid amounting to Rs 157 crore as Central assistance under PMGSY for the financial year 2015-16.
While conveying release of Rs 157 crore first instalment under Phase-VIII of the PMGSY to J&K, the Union Ministry made it clear that State Government must transfer these funds to J&K State Rural Road Development Agency within three working days positively from the date of receipt of funds, sources said.
It was also explicitly conveyed by the Union Ministry that in case of non-transfer beyond this period, the Central Government may be constrained to stop further release and the State Government would be liable to pay interest at the rate of 12% for the period of delay beyond the specified period.
However, till date the Finance Department has not released the funds to the Jammu and Kashmir State Rural Road Development Agency, which is headed by Administrative Secretary of the Public Works (R&B) Department. The Administrative Secretary acts as Empowered Officer and the officer coordinates further release of funds to the Programme Implementing Units (PIUs) in the districts.
Now, the Joint Secretary concerned of the Union Ministry of Rural Development, Rajesh Bhushan vide DO No. P-17017/08/2015-RC has conveyed serious concern over delay in release of funds to Rural Road Development Agency to the Chief Secretary, Mohammad Iqbal Khandey, sources informed.
“I am given to understand that the first installment of Rs 157 crore has not yet been transferred to JKRRDA”, the Joint Secretary said in the communication, adding “since PMGSY is a time bound programme and being implemented on a contractual mode, delays in release of funds have the potential to hamper the pace of the programme”.
Sending a warning note, the Joint Secretary said, “the Central Government may be constrained to stop further releases to Jammu and Kashmir in case the State doesn’t credit the requisite amount to Jammu and Kashmir State Rural Road Development Agency on a priority basis”.
He has asked the Chief Secretary to direct the Finance Department to release the funds sanctioned under PMGSY to JKRRDA without further delay so that smooth implementation of this flagship programme of creation of rural infrastructure can be ensured in the State, sources informed.
Stating that Finance Department has failed to mend the ways even after warning note from the Union Ministry, sources said, “the Union Joint Secretary had dashed the communication to the Chief Secretary on May 26, 2015 but till date the Finance Department has not transferred the funds to JKRRDA”.
When contacted, the officers of Planning and Finance Departments posted in the Public Works (R&B) Department confirmed that Finance Department has not credited the requisite amount to SRRDA till date. They, however, wished not to be quoted.
“This is not for the first time that J&K Government has received criticism over withholding of funds released by the Union Government under its various schemes”, sources said, adding “every year one or two communications are sent by the Union Ministries expressing concern over delay in crediting of funds to the accounts of the implementing agencies but no efforts are made to streamline the system to avoid further embarrassments from the Union Ministries”.