GOVERNMENT OF KERALA
Abstract

Tenth Five Year Plan – Decentralised Planning by Local Governments – Guidelines – Approved – Orders Issued:-

PLANNING & ECONOMIC AFFAIRS (A) DEPARTMENT

G.O. (Ms) No. 20/2002/Plg.                                      Dated, Thiruvananthapuram, 6th June 2002

Order

      Government have decided to devolve one-third of Plan resources to Local Governments for the planning and implementation of development projects at their level during the Tenth Five Year Plan (2002-2007). The Local Governments are to prepare a Five Year Plan. The Guidelines for preparation of the Tenth Five Year Plan by Local Governments, as appended to this Government Order, are approved.

By Order of the Governor,         

S.M.VIJAYANAND               
Secretary to Government (Planning)

To

  1. The Director of Panchayats.


  2. The Commissioner of Rural Development.


  3. The Director of Municipal Administration.


  4. The Principal Secretary, Rural Development.


  5. The Secretary to Government, Local Self Government (Rural).


  6. The Secretary to Government, Local Self Government (Urban).


  7. All other Principal Secretaries and Secretaries to Government.


  8. The Member Secretary, State Planning Board.


  9. The Director of Public Relations (For immediate press release).


  10. All Chairpersons of District Planning Committees.


  11. All District Collectors & Secretaries to District Planning Committees.


  12. All Presidents/Secretaries of Grama Panchayats.


  13. All Presidents/Secretaries of Block Panchayats.


  14. All Presidents/Secretaries of District Panchayats.


  15. All Mayors/Secretaries of Corporations.


  16. All Chairpersons/Secretaries of Municipalities.


  17. The Chairman, Kerala State Electricity Board (With C/L).


  18. The Managing Director, Kerala State Road Transport Corporation(With C/L).


  19. The Managing Director, Kerala Water Authority (With C/L).


  20. All Managing Directors/Chief Executives of Public Sector Undertakings/ Corporations/ Boards/Autonomous Bodies (With C/L).


  21. The Director of Public Instructions.


  22. The Director of Collegiate Education.


  23. The Director of Technical Education.


  24. All other Heads of Departments.


  25. All District Planning Officers.


  26. The Convenor, State Level Bankers Committee (Canara Bank, Thiruvananthapuram ) (With C/L).


  27. All Convenors, District Level Bankers Committees (With C/L).


  28. All Departments in the Secretariat.


  29. The Accountant General (A&E), Kerala, Thiruvananthapuram(With C/L).


  30. The Accountant General (Audit), Kerala, Thiruvananthapuram(With C/L).


Copy to:
  1. The Principal Secretary to Chief Minister.


  2. The Private Secretary to the Minister, Local Self Government.


  3. The Private Secretary to the Minister, Rural Development.


  4. Private Secretaries to other Ministers.


  5. The P.A. to Vice Chairman,, State Planning Board.


  6. Joint Secretary to Chief Secretary.


  7. All Members of State Level Coordination Committee for Decentralised Planning.


  8. Planning & Economic Affairs Department.


  9. Local Self Government Department.


  10. Rural Development Department.


Appendix 

GUIDELINES FOR THE PREPARATION OF THE TENTH
FIVE-YEAR PLAN BY LOCAL GOVERNMENTS

    CONTENTS.
1. Background
2. Objectives
3. Resource Use
4. Planning Perspective
5. Sectoral Allocation
6. Preparatory phase
7. Planning Phase
8. General Items
9. Support Systems
10.Time Table For Plan Finalisation

1 . BACKGROUND
1 . 1
      Democratic decentralisation in Kerala is almost seven years old. During the Ninth Five Year Plan 30.5% of the Plan resources were devolved to local governments in a practically untied form with considerable freedom subject to guidelines to decide local priorities, prepare development projects in accordance with these priorities and implement them. Participatory planning was carried out on a campaign mode in the form of People’s Plan Campaign. Now the time is ripe for institutionalizing decentralised planning and development by building on the positive features, upgrading and replicating successes, avoiding the mistakes, addressing the needs and concerns and making use of the opportunities thrown up by the process so that effective and efficient local governments accessible and responsive to people emerge.

1 . 2
       Hitherto local governments have been preparing annual plans. Now that they have gained experience in preparing plans for local development, it has been decided to switch over to five year planning from the current year onwards and this would coincide with the Tenth Five Year Plan. Government have set apart one-third of the Plan resources totaling about Rs.8000 crores for decentralised planning and implementation through local governments during the Tenth Plan period. These Guidelines are issued to assist local governments in the preparation and implementation of local plans during the Tenth Plan period, using freedom within the framework of responsibilities transferred to them and accountability.

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2 . OBJECTIVES
2 . 1
       During the Ninth Five Year Plan local governments have performed fairly well in providing minimum needs infrastructure. In the Tenth Plan the core objectives of decentralised planning are:-

  1. Promote local economic development by increasing production and productivity of agriculture and allied sectors and the traditional and small-scale industries with focus on employment generation and poverty reduction.


  2. Move towards greater social justice and reduction in gender disparities.


  3. Focus on Natural Resource Management and integrated area development.


  4. Upgrade the quality of basic services provided by the local governments with special emphasis on health, education, water supply, sanitation including solid waste management and care of the disabled.


  5. Improve governance particularly with reference to responsiveness, transparency, people’s participation and management.


  6. Achieve improved efficiency of resource use.

2 . 2
       In the process of realizing these objectives the local governments are expected to play a proactive catalytic role by inducing synergies between various stakeholders in local development and enabling solutions to emerge through self-help and joint community action with public funds being spent only for the most critical purposes. Thus the Plan has to be much larger than the investment of public resources and much wider than the activity of local governments alone.

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3 . RESOURCE USE
3 . 1
       As the State is passing through a difficult financial situation it is the duty of every local government to ensure maximum efficiency in resource use. While preparing plans the local governments have to be extremely sensitive about the cost of funds which they are using. Though the Plan funds are given as grant-in-aid to local governments it should be noted that about 80 % of the funds are borrowed and the cost of borrowing works out to around 11 % per annum. This implies that when investment decisions are taken sufficient care must be taken to ensure that, on the whole, there should be adequate returns to the economy over a period of time which would facilitate not only repayment of the loans but also generate enough resources for smooth maintenance of the assets and higher future investment. Local governments should be conscious of the cost of resources and their scarcity while taking any spending decision.

3 . 2
       Though local governments get substantially enhanced grants, the resources available are insufficient to meet the demands of local development. Hence there is need for additional resource mobilization locally. This can be through improved tax effort particularly by using service tax and development cess by Village Panchayats and Municipalities/Corporations to finance development projects, mobilization of non-tax revenues particularly user charges from those who have the capacity to pay, attracting individual and community contribution as a share of development projects and by facilitating community investment for development purposes.

3 . 3
       During the Ninth Plan the local governments were not able to attract institutional finance from banks. In order to complement government resources, it is absolutely essential to tap loans from banks. Banks normally lend based on the viability of a project and the creditworthiness of the borrower. Local governments should be strongly involved in identification of viable activities and in enhancing the creditworthiness of the beneficiaries by providing the capacity required of the beneficiary to manage the loan. Also, special efforts are needed to facilitate direct borrowing by people through interventions like improving irrigation, bringing in electricity supply, support to value additions to produce, improvement in marketing facilities etc.

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4 . PLANNING PERSPECTIVE
4 . 1
       It is necessary for every local government to develop a strategic vision of development which is both sectoral and cross-sectoral. It is this vision, to be realised in a reasonable time frame, that should guide the preparation of the Five Year Plan. While preparing the Plan a conscious effort is required to avoid thin spread of resources, to stop wasteful expenditure, to reduce unproductive investments and to be very careful about investments which would increase future operation and maintenance costs beyond the capacity of the local governments. Every investment decision should carefully weigh the opportunity cost of using that quantum of funds; that is, if the resource can be used more efficiently and effectively for some other purpose, then it should be so done. When the vision of development is translated into a Five Year Plan there should be clear monitorable targets, which are set out clearly and regularly verified.

4 . 2
       The following general priorities are suggested:

  1. Local economic development to generate more jobs needs to be consciously attempted. It calls for focus on increasing agricultural productivity and value addition through post harvest processing. Paddy production has to be given top priority. Waste/fallow land development and fodder development also require particular attention. Successful farmers may be identified and used as resource persons for extending their farming systems methodology to other farmers.


  2. Rehabilitation of existing assets may be given priority to ensure their optimum utilization. These assets would include markets, schools, hospitals, water supply systems, minor irrigation systems where actual provision of water is there and equipment in public institutions. All local governments should focus on assets transferred to them for upgradation or rehabilitation. As these assets have been transferred to them no other fund would be available in the State budget. It is of paramount importance that the infrastructure, which the State has built up over the last several years, is not allowed to deteriorate.


  3. Also upgradation of traditional industries and promotion of micro enterprises for the poor are to be given special priority. The District Panchayats and larger Municipalities and Corporations should proactively facilitate private investment particularly for generation of jobs. They should do this by holding investors’ meet and removing bottlenecks due to infrastructure deficiencies, simplify procedures, raw material supply (wherever it is within the capability of local governments), sorting out labour problems, training of people below poverty line for equipping them to get placement etc. Similarly these local governments should tie up with organisations like Kudumbashree, NABARD, Lead Bank, IIM Kozhikode and take up focused programmes of entrepreneurship development ranging from identification of entrepreneurs, training them and providing support services for setting up units.


  4. All anti-poverty programmes should be as far as possible on the Kudumbashree mode. Providing house sites and houses to the absolutely landless has to be given high priority.


  5. As far as training programmes are concerned they should be for people below poverty line. Only those programmes which result in a self-employment venture or which have an assured job market for wage employment should be taken up. As far as computer training courses are concerned only accredited courses as approved by Government should be chosen.


  6. All agriculture and allied sectors and water use would be planned on a watershed basis in an integrated manner. For watershed treatment, preference should be given to natural, agrostological measures and appropriate technologies like use of geo textiles. Village Panchayats should take steps to complete Panchayat Resource Mapping and set apart the funds needed for it.


  7. Only irrigation schemes, which are demand-driven and where actual provision of water is intended, should be taken up in the productive sector except in the case of bunds in the padasekharams of Kuttanad and Kole lands of Thrissur and Malappuram. All other structures, side protection works and crossbar cum bridges would be classified as infrastructure.


  8. Municipalities and Corporations must give priority to detailed town planning schemes that have already been sanctioned, and also give special emphasis to solid waste management, water supply, upgradation of traditional markets and slum development including rehabilitation of poramboke dwellers.

4 . 3
       In order to avoid thin spread of resources the following guidelines are given.

  1. As far as roads are concerned the District Panchayat should first take up only the Village roads and Other District Roads (ODRs) as classified by the PWD. Only then new roads linking more than one Block Panchayat having at least eight meters width should be taken up. In the case of roads within Scheduled Caste habitats taken up under SCP or within Tribal habitats, the minimum width is relaxable to six metres if the District Planning Committee (DPC) is convinced that land is not available. Only Village Panchayats, Municipalities and Corporations may undertake construction of roads of less than six metres width. Block Panchayats shall confine themselves to link roads connecting two Village Panchayats or opening up new areas, with minimum width of eight meters relaxable by DPC to six metres within SC/ST habitats and coastal areas.


  2. In the case of irrigation also the investment should be according to the provisions of the IIIrd, IVth and Vth Schedules of the Kerala Panchayat Raj Act and the Ist Schedule of the Kerala Municipality Act.


  3. Only Village Panchayats, Municipalities and Corporations need undertake individual beneficiary oriented asset distribution programmes, but Block and District Panchayats can take up distribution of house sites through Village Panchayats. In Total Sanitation Districts, the District and Block Panchayats may also share the subsidy given to households and other items according to norms to be decided by the DPC. A decision may be taken by DPC on this.


  4. Block Panchayats and District Panchayats need undertake only comprehensive area development programmes with reference to habitats in Special Component Plan and promotion of Scheduled Caste development institutions like hostels.


  5. District Panchayats may not take up projects costing less than Rs. 5 lakhs, except in the case of repairs and addition to or purchase of equipment for assets transferred to them.

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5 . SECTORAL ALLOCATION
5 . 1
       The sectoral ceilings would be as follows for the General sector and Eleventh Finance Commission (EFC) grant taken together:

(a) Productive Sector (Minimum)

Ceiling (%)
Village Panchayat 30
Block Panchayat

30
District Panchayat

25
Urban Local Governments 10
(b) Infrastructure Sector (Maximum)

Ceiling (%)
Village Panchayat 30
Block Panchayat 30
District Panchayat 30
Urban Local Governments

50
5 . 2
       By productive sector is meant projects relating to agriculture, animal husbandry, dairy development, fisheries integrated watershed management including soil and water harvesting, traditional tiny and small industries, production of electricity through stand alone non-conventional energy projects and construction activities related to fish markets, and other traditional markets, manufacturing of manure from solid waste can also be included under this component.

5 . 3
       After finalizing the components of the Plan, those projects which are eligible to be taken up under the EFC grant should be classified as a distinct component of the total plan and monitored separately.The projects for which EFC grants can be used are those which relate to primary education, primary health care, drinking water supply, extension of street lighting, sanitation including solid and liquid waste management, setting up of cremation and burial grounds, creation of public facilities, protection and upgradation of common property resources.

5 . 4
       Upto 10% of the General Sector and EFC allocation could be spent for renovation/rehabilitation of hospitals, schools and water supply schemes and minor irrigation schemes where actual provision of water is involved. The Women Component Plan should get at least 10% of the total Plan size. In addition 5% has to be set apart for children, disabled and the aged. Feeding of Anganwadis cannot be done under this component. However the funds required for feeding in Anganwadis could be first set apart and then only various sectoral and mandatory allocations be made; the ceiling/minimum is to be achieved on the remaining amount only. In the districts where special Drinking Water Supply and Total Sanitation projects are under implementation, the Village Panchayat concerned can meet additional funds required by taking equal amounts from the three sectors. In such districts contributions can also be given by District Panchayats and Block Panchayats, as a share of the total project cost and this may be determined by the DPC.

5 . 5
       In the case of SCP not more than 30% can be spent on infrastructure by any Local Government.

5 . 6
       Adequate funds to ensure uninterrupted feeding in Anganawadis according to the prescribed standards should be earmarked by the Urban Local Governments in urban areas and Village Panchayats and Block Panchayats in rural areas in the ratio 2:1. Also the World Bank Project for construction of Anganwadis, the required contribution from Village Panchayats has to be mandatorily set apart. District and Block Panchayats can contribute to this as decided by the DPC. Preference may be given to the construction of baby-friendly toilets in Anganwadis.

5 . 7
       In the case of Sarva Siksha Abhiyan (SSA) the local government concerned should meet its share of the scheme, which would be 25% for the current plan period. In the case of Indira Awas Yojana Block Panchayats have to meet the gap required to increase the cost up to Rs.35,000 (Rs.42,000 in the case of Scheduled Tribes).

5 . 8
       Municipalities and Corporations have to spend at least 10% of their total allocation on slum development, which would also include resettlement of poromboke dwellers.

5 . 9
       The NSDP, SJSRY and VAMBAY plans and other anti-poverty projects would be initiated at the level of the Neighbourhood Group (NHG) in Municipalities and Corporations. These plans would be consolidated at the ward level by the Area Development Society (ADS) and further integrated at the Municipal/Corporation level by the Community Development Society (CDS) and forwarded to the relevant Working Groups on poverty reduction, SC/ST Development and Women & Child Development who will incorporate them with the overall plans. The priorities fixed by the ADS and CDS in SJSRY, NSDP and VAMBAY can be changed only with the prior approval of ADS/CDS.

5 . 10
       If in the Annual 2001-2002, there had been any downward deviation from the minimum share of the sectoral investment indicated for the productive sector or upward deviation from the ceiling indicated for the infrastructural sector or if any such deviation for the previous year has not yet been fully compensated for, an equivalent amount of compensatory provision must be made in the Annual Plan 2002-2003. Similarly any such shortfall in the SCP and Women Component Plan allocations should also be compensated.

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6 . RESOURCE USE
6 . 1
       Step 1 – Constitution of Working Groups

6.1.1.
       Working groups should be constituted by the local governments for different sectors/ areas of development. Working groups are mandatory for the following areas:

  1. Agriculture and allied sectors including irrigation and agro processing.


  2. Local economic development other than agriculture including local industries, facilitation of private and community investment.


  3. Poverty reduction and social security including care of the aged and disabled.


  4. Development of Scheduled Castes/Scheduled Tribes.


  5. Development of Women and Children.


  6. Health, Water Supply and Sanitation.


  7. Education.


  8. Infrastructure.

6.1.2.
       Each Working Group should be headed by an elected member and the Working Group on SC/ST should be headed by an SC/ST member and the Working Group on Women and Children by a lady member. The Convenor of the Working Group should be the senior most official transferred to the local government in that sector. A known expert in the sector should be nominated as the Vice Chairman of the Working Group. Each Working Group should have at least four more members of which two shall be women. The members should be drawn from among professionals, NGOs, representatives of interest groups, representatives of Bankers as approved by the District Collector, successful practitioners like farmers, entrepreneurs and SC Promoters. At least one member of the Kudumbashree CDS should be included in all the Working Groups and in the case of Working Groups on Poverty Reduction, Development of Women and Children and Development of Scheduled Castes/Scheduled Tribes at least two members of the CDS have to be included. SC Promoters should be nominated to all Groups and atleast three of them to the Group on Development of Scheduled Castes/Scheduled Tribes. The local governments should ensure that only those who are capable and those who have the capacity to participate actively and contribute ideas should be nominated.

6.1.3.
       The Working Group should meet as frequently as possible and keep a brief record of its deliberations. The quorum for the meetings shall be four including the mandatory presence of the Convener. The functions of the Working Groups would be the following:

  1. Analysis of the development sector(s)/area(s) assigned to it.


  2. Evaluation of the performance during the last five years.


  3. Identification of existing problems, gaps, needs, possibilities.


  4. Generation of a shared vision on the development of the sector(s)/area(s).


  5. Suggesting an action plan to realize the vision with priorities and reasons for the priority.


  6. Preparation of draft projects to implement the action plan.


  7. Identification of spillover projects.


  8. Updation of development reports.


  9. Monitoring of projects every quarter.


  10. Any other task assigned by the DPC or local government.
6 . 2
       Step 2 - Stock-taking of the Ninth Plan

A detailed exercise shall be initiated through the Working Group to take stock of the Ninth Plan with special reference to the following:

  1. Identification of spillover works which would need funds from the Tenth Plan.


  2. Identification of works left incomplete by the Beneficiary Committee or Contractor or Beneficiary and preparation of a report on the action taken.


  3. Listing out of deposit works with various agencies with the present status of each work.


  4. Listing out of projects implemented through co-operatives and the status of such projects.


  5. Description of charitable societies created under Plan and their present status including the existing management.


  6. Verification of assets created during the Ninth Plan including assets given to individuals. This should be done by committees set up by local governments, consisting of officials and other members of the Working Group. Every Committee should invariably have an official and the verification should be attested by the Committee members including the concerned official. Arrangements would be made by Government for random re-verification by independent agencies. SC promoters should be fully involved in verification of assets created under SCP. The verification report should bring out the present stage, present level of utilisation, instances of misuse/diversion etc.


  7. A quick evaluation of the Ninth Plan with reference to physical and financial targets and achievements, tangible benefits generated, additional resources expected and mobilized, timeliness of completion, the present state of upkeep of assets etc. The evaluation should be done by the Working Groups.
6 . 3
       Step 3 - Updation of Development Report

The various chapters of the development report should be distributed among the Working Groups and the chapters thoroughly revised and updated with the latest data available. The new report should have two parts. The first part should contain the evaluation of the Ninth Plan with reference to the stock taking mentioned earlier and the second part should be the updated chapters. Each chapter should invariably give the status of the sector with reference to data, the key issues and challenges, especially gaps and shortcomings and suggest a broad vision of development in that sector and the strategies required to attain that vision. How people can come together to tackle the development challenges needs to be clearly stated in each chapter.

6 . 4
       Step 4 - Revision of the District Plan

The District Plans which were prepared by the DPC in the year 2000 need to be revised so as to reflect the current development situation for the district.

The following steps may be taken.

  1. Technical Advisory Committees (TACs) may be constituted by DPC at the District Level with District Collector as Chairman and experts from Professional Colleges, experts from Academic Institutions, experts from Public/Private Sector Organizations, experts from NGOs, experts from among retired personnel and practitioners and bankers as members. District Planning Officer (DPO) would be the Convener and Secretary. Sectoral Sub-Committees of the Technical Advisory Committee may be constituted and given the task of studying different chapters of the District Plan as well as the Potential Linked Credit Plan prepared by NABARD.


  2. A Core Committee may be constituted from among TAC members to prepare a draft strategic vision document covering different development sectors as well as cross-sectoral areas with inter-sectoral priorities as well as specific thematic priorities relevant to the district.


  3. The DPC may discuss the draft vision with the following groups of people:


    1. Elected heads of local governments and district level officers.


    2. Professionals and academicians.


    3. NGOs, Practitioners, CDS representatives.


    4. Bankers.

  4. Thereafter modifications can be made.


  5. The Sectoral Sub-Committees of the TAC should then revise the chapters of the District Plan according to the Vision Document. The DPC could then meet and finalise the general District Plan and send them out to all local governments.
6 . 5
       Step 5 - Establishing linkage with banks

It is necessary to forge a strong linkage with credit institutions - nationalized banks, scheduled banks and co-operative banks. The District Collector should hold a special meeting of the District Level Bankers’ Committee (DLBC) in which the DPC Chairperson, and heads of urban local governments should specially be invited. They should discuss threadbare the possibilities of linking bank loans to local government plans particularly for individuals and groups as well as operationalisation of the Potential Linked Credit Plan. Similar meetings of Block Level Bankers’ Committee (BLBC) may be held in which the Presidents of Village Panchayats, and Block Panchayats are also invited.

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7 . PLANNING PHASE
7 . 1
       Step 1 - Preparation of Working Group

7.1.1.
       The Working Groups set up should meet regularly and discuss issues related to the development sector assigned to that Working Group. The Convener of the Working Group shall prepare a detailed note for discussion in the working group and circulate it among the members in the first meeting. A copy of the note should be retained by the Convener and another copy sent to the district level officer. The draft note of the Convener should contain the following points.

  1. Status of the sector with relevant data.


  2. Issues affecting the sector.


  3. Past efforts to address the issues, indicating the successes and failures.


  4. Suggested strategies for the Tenth Plan.


  5. Suggested priorities with justification.


  6. Action plan for implementing the strategies.


  7. Resources requirements and possible sources.

7.1.2.
       The Working Group should hold detailed consultations with various stakeholders in that sector and produce draft proposals clearly indicating the priorities and giving the reasons for prioritization. While preparing the reports, the Working Groups should follow the general guidelines indicated earlier. The sector-wise guidelines are given below:

  1. Agriculture and allied sectors


    1. The plan should be based on the watershed approach. It should be ensured that, instead of proposing different sectoral schemes within a watershed area in a mechanical way, the watershed processes need to be identified and a logical sequence of development interventions arrived at. Only schemes appropriate to a particular stage of watershed management should be taken up at that stage. This applies to soil protection, water conservation/ recharging, bio-mass production with the appropriate changes in cropping pattern and cropping intensity, addition of livestock in keeping with increased availability of bio-mass, utilization of surplus water etc.


    2. During the Ninth Plan preliminary steps for preparation of block level watershed master plans had been taken. The delineation of all micro watersheds each covering an area of around 500 hectares and the preparation of block level appraisal reports have been completed. The work to be done immediately include: –


      1. Delineation of watershed boundaries on 1: 4000 scale maps.


      2. Preparation of development reports for each micro watershed.


      3. Preparation of action plan for each micro watershed.

      These have to be completed before finalization of the Annual Plan 2002-03 by local governments. Thereafter all these have to be integrated into block level master plan for watershed development.

    3. In all Village Panchayats where Panchayat Resource Maps are ready, they should be used for planning purposes.


    4. As no money has been provided for Minor Irrigation in the State Plan, local governments have to give special importance to this sector. While new schemes could come up linked to watershed development, priority has to be accorded for rehabilitation of existing schemes which would result in increased water availability for agriculture.


    5. The District Panchayats should prepare clear five year development plans for the agriculture and animal husbandry farms which have been transferred to them. What is required is a revolving fund approach so that the flow back from such investment can sustain future investments.


  2. Poverty Reduction


    1. A total list of the poor based on existing data on below poverty line population needs to be prepared. The poor are to be organized into Neighbourhood Groups, Area Development Societies and Community Development Societies under Kudumbashree. Thereafter, using the poverty index the poor should be classified according to severity of poverty. A bottom up planning exercise is to be initiated with the NHGs preparing development plans for the families and the ADSs preparing plans for the Ward, CDSs should integrate these plans into an anti-poverty sub plan for local governments. The plan should focus on the poorest of the poor and destitutes, the disabled, the children and the aged, and other sections of society whom development has bypassed.


    2. As part of anti-poverty sub-plan, provision of minimum needs infrastructure for BPL families is to be taken up in a planned manner. A number of BPL families not having house plots, houses, sanitary latrines, electricity and communication may be identified and a phased programme prepared to provide them. This needs to be stated with clear physical targets in the plan.


    3. The Antyodaya approach of poorest being selected first, needs to be followed based on clear criteria of prioritization which should be published in advance as part of the plan. The absolutely poor destitutes have to be specially identified and a package of measures specifically addressing their deprivation needs to be prepared. This should be an obligatory component of the Anti Poverty Sub Plan of every local government.


  3. Special Component Plan (SCP)


    1. Same procedure prescribed for Poverty reduction is to be followed. The SC Promoters should be fully involved in the process. In addition the Working Group should identify programme for providing minimum needs infrastructure to families and the community namely, house plots, houses, sanitary latrines, electricity, water supply and connectivity. Special emphasis is to be given on improving performance in education and access to health services. Also skill upgradation resulting in self employment or wage employment is to be aimed at.


    2. Though Tribal Sub Plan funds are not directly routed through local governments, as the tribals constitute the poorest of the poor, the local governments are advised to use a portion of their general sector funds for the benefit of the Scheduled Tribes involving ST promoters and Oorukoottams. In order to facilitate this a weightage of 5% has been given to tribal population while distributing funds in the general sector. In case local governments have unspent balance under TSP from the Ninth Plan they have to spend the funds for the exclusive benefit of STs.

  4. Plan for women, and special groups consisting of children, aged and the disabled


    5. This may be prepared in two sections – one for women and the other for the remaining three special groups. Their specific problems may be identified and addressed through projects. Only schemes directly benefiting the groups with preference for people below poverty line may be taken up. Construction of Anganwadis and noon-feeding can not be included in this plan. However, providing teaching aids, baby-friendly toilets and playthings in Anganwadis could be included. Special facilities for the aged and disabled in public places and aids to the disables can be provided by this component.

  5. Integrated Child Development Scheme (ICDS)


    6. The gaps in infrastructure and equipment available in the Anganwadi network may be identified and filled up in a phased manner. The quality of nutrition and pre-primary education may be enhanced.

  6. Health

    In the health sector a comprehensive assessment of health needs has to be made and a plan prepared to improve the quality of health services to the people. This plan would require more of management measures than investment. In the case of health infrastructure the existing level and the minimum required standard need be noted and the gap filled in a phased manner according to resource availability and the priority assigned by the local governments. This fact should be clearly stated in the plan document of the local governments and revealed in the Grama Sabhas/Ward Sabhas and other fora.

  7. Education


    1. The same process as in the health sector may be followed. The focus should be on improving quality of education. Monitorable targets like attainment of minimum levels of learning and improved performance in SSLC examination need to be developed.


    2. Community based remedial coaching through the CDS system may be tried out in the case of students below poverty line in co-ordination with Kudumbashree.


    3. As part of education, development of sports is also to be taken up.

  8. Roads


    9. A road map may be prepared showing the roads under the control of the particular local government according to their type. The roads taken up for development during the last five years may be noted in the road map with a specific colour. Norms for prioritization of roads may be discussed and based on the norms a road development plan may be prepared. The year-wise development plan may be noted on the map in different colours for each of the next five years.

  9. Electricity


    10. The same process as above may be followed. Before finalizing the plan the opinion of the local Electricity Board office on the feasibility of the plan especially in relation to availability of power may be obtained.

  10. Water Supply


    11. A map of the local government may be prepared showing availability of safe drinking water with separate demarcation of areas with full coverage, partial coverage and nil coverage (Coverage means coverage with safe drinking water whatever be the source). A plan for total coverage showing phases needs to be prepared. Also a plan for taking over of single-Village Panchayat rural water supply schemes from KWA by the Village Panchayat concerned has to be got ready.

  11. Solid Waste Management


    12. A similar process as above may be followed.
7.1.3.
       The reports of the working group should contain the following chapters.

  1. Description of the sector with data.


  2. Development efforts during the Ninth Plan.


  3. Successes and failures including physical and financial achievements.


  4. Existing problems, gaps, needs, possibilities.


  5. Strategies for addressing them.


  6. Draft project proposals including criteria for identification of location, identification of beneficiaries and prioritization of eligible beneficiaries.


  7. Resource requirements and sources including possible contribution from the people.
7.1.4.
       These reports should be considered by the local governments and adopted for discussion in Grama Sabhas/Ward Sabhas and other fora.

7 . 2
       Step 2 - Meeting of Grama Sabha/Ward Sabha

7.2.1.
       It is necessary to increase the attendance in Grama Sabhas to at least 25% and Ward Sabhas to at least 20%. It is important that every socio economic section is properly represented. The following steps are suggested to be carried out on a campaign mode.
  1. Determination of dates in advance by the local governments.


  2. Printing of invitation notices and distributing them with each notice summarising the responsibilities of Grama Sabha/Ward Sabha in Plan formulation.


  3. Display of fixed notices in public places.


  4. Contact of ‘interest’ groups through officers and elected members.


  5. Information through representative organisations.


  6. Special publicity through schools, anganwadis and co-operatives.


  7. Special efforts through NGOs, libraries, and co-operatives.


  8. Mobilization through SHGs/NHGs/SC/ST promoters.


  9. Campaign through National Service Scheme volunteers, NCC cadets and College students on social work placement.


  10. House visits through squad work.
7.2.2.
       Each Grama Sabha/Ward Sabha should have two facilitators one male and one female identified unanimously from among the Working Group Members by the concerned local government. These facilitators are to be trained at the Block/Municipal levels.

7.2.3.
       As soon as the Working Group reports are ready, the Grama Sabha/Ward Sabha shall meet. The meetings would be structured as follows:

  1. A plenary session of about half an hour in which the role of Grama Sabha/Ward Sabha in plan preparation is clearly explained by the facilitators, a general review of the Ninth Plan made and the objectives of the Tenth Plan stated and discussed. The draft proposals of the working groups would be printed and circulated in the meeting along with the review of the ninth plan and annual accounts for 2001-2002.


  2. After the plenary session break out groups may be formed to cover as many sectors as possible. Groups to cover the sectors for which Working Groups are constituted should mandatorily be there. The group should discuss the Working Group suggestions in detail after presentation by a member of the Working Group who will record the discussions. The tackling of development issues by the people and by the local government has to be clearly discussed and a consensus arrived at. The Grama Sabha/Ward Sabha sub-groups should come out with norms for prioritization among sectors and within sectors and applying the norms, fix the priorities.


  3. Then there could be a closing plenary session where the minutes of the break out groups are summed up. This could be done by the facilitators. A general consensus on priorities may be arrived at and recorded.

7.2.4.
       The following records shall be meticulously kept and obtained and maintained by the Secretary of the local government.
  1. Photographs


  2. Attendance register showing details like House No., address, age, whether male or female, whether belonging to SC, whether belonging to ST, occupation etc.


  3. Record of discussions of breakout groups.


  4. Recommendations of the Grama Sabha/Ward Sabha as a whole.
7.2.5.
       Special procedure for Block Panchayats and District Panchayats

The Block Panchayats should hold a meeting of all elected local government members of the three tiers of Panchayat from within its jurisdiction and carry out a detailed consultation exercise as above. In the case of District Panchayats a meeting of all Village Panchayat Presidents, all elected members of the District and Block Panchayats may be held and a similar exercise may be undertaken. The procedures followed for Grama Sabha/Ward Sabha meetings would mutatis mutandis apply to these consultations.

7 . 3
       Step 3 - Strategy setting

7.3.1.
       The local government should consider the suggestions coming from the Grama Sabha/Ward Sabha along with the Working Group reports and finalise the draft document for discussion which sets out clearly its vision for the development of the area, priorities and the strategies which it intends to follow and the suggested projects and produce a deep discussion. Then as the next step the local government should hold a series of group consultations with key stakeholders like farmers, traders, industrialists, the labour, the poor and the academics and professionals on the basis of the deep discussion document. Thereafter a one day Development Seminar should be held which is attended by all elected members, transferred officers and other members of the Working Groups, two representatives each of Grama Sabha in the case of Village Panchayat (one male and one female), representatives of important groups of stakeholders, experts in development and representatives of DLBC or BLBC, as the case may be. The draft plan would be printed and circulated for discussion. This should be a one-day meeting and it should finalize the vision, priorities, strategies and suggest development projects.

7.3.2.
       The methodology for conducting the development seminar would be the same as that for Grama Sabha/Ward Sabha. There will be plenary session in which the draft Vision and the draft Plan are explained. Thereafter breakout groups at least for the sectors for which Working Groups are there would go into detailed discussion and the plenary session shall integrate the recommendations. The following records of the development seminar are to be maintained.
  1. Photographs.


  2. Attendance Register showing details like house No., address, age, whether male or female, whether belonging to SC, whether belonging to ST, occupation etc.


  3. Record of discussions of breakout groups.


  4. Recommendations of the Seminar.

7 . 4
       Step 4 - Projectization

7.4.1.
       Based on the suggestions of the Grama Sabha/Ward Sabha, consultation with stakeholders and the development seminar, the Working Groups would revise the development projects. Approximate total fund available for sector/sub-sector would be divided by the local government and indicated to the Working Groups. Certain general points need be followed:

  1. Special Component Plan.


    1. The projects that are included in SCP should be such that they would directly benefit the members of SC community. Notional flow of benefits to SCP is not permissible. The provision under SCP should not be diverted even for schemes benefiting tribals. The District Level Committee for SC Development shall have the power to monitor the implementation of the schemes by local bodies.


    2. Under SCP two categories of schemes are to be differentiated: The first category consists of beneficiary oriented schemes which may cover individuals (eg. Self-employment) families (eg. House, land) or groups (eg. Development of Women and Children in Urban Areas (DWCUA). In such cases all the beneficiaries should belong to the SCs, and unless exempted, should be from below poverty line.


    3. The second category of schemes would be infrastructure development schemes in which case the majority of the beneficiaries should belong to the Scheduled Caste. While taking up community activities and infrastructure development works, it should be ensured that 51% of the beneficiaries are people belonging to the Scheduled Castes. SCP funds should not be used for meeting regular establishment costs or payment of salary. In the case of area development schemes like watershed management, irrigation etc., the number of families should not be the criteria. More than 50% of the area benefited should belong to the SCs. All proposals for infrastructure should contain a social map showing the households benefited with SC households being marked separately, and certificate from an official or an authorised sub-committee formed by the local government that the schemes are in accordance with the guidelines and that the majority of its beneficiaries are Scheduled Castes.


    4. The schemesnot benefiting SCs, should not be taken up utilizing provision under SCP. If it is found that schemes not benefiting SCs as per the guidelines have been taken up, the person or group responsible for certifying the scheme will be liable for being charged with mis-utilisation of funds and the person or group is liable to make good the amount so misutilised.

  2. Women Component Plan.

    1. The Women Component Plan should focus on the gender needs of women especially those below poverty line. The CDS system and other women groups and NGOs actively involved in the formulation of the Women Component Plan. Setting up of micro enterprises of women and providing minimum needs assets to widow headed families can be taken up under this component. Revolving fund to CDS linked to their thrift is also possible. Local governments may take up detailed studies on the status of women within their area under this component.

  3. Subsidy norms.

    1. In the case of productive sector, subsidy should consciously be used to encourage complementary or supplementary investment for activities by the beneficiaries. Therefore, as far as possible, all subsidies should be made part of integrated programmes with provisions for the beneficiary contribution or activity. The maximum subsidy allowable is as follows:


      2. 1. Houses : Rs.35,000 per unit for Scheduled Castes and others Below Poverty Line. 20% extra for Scheduled Tribes
      2. Shelter Upgradation (changing of roof to make it pucca) : maximum of Rs.7500 for BPL families. Under no circumstance cash doles should be given. An estimate should be prepared for each repair work and work should preferably be executed through NHGs/ADS at Ward levels. 20% extra can be given for STs.
      3. Repair of houses of SC/STs : Upto a maximum of Rs.5000 / house. To be done as a project preferably executed by ADS/CDS.

      4. House plots to SC/ST :

      		For minimum 3 cents in rural and 1 12  cents in urban areas subsidy to the tune of Rs.19,500 in rural areas Rs. 20,000 in Municipal areas and Rs. 25,000 in Corporation areas or actual value in the document whichever is less can be given as Demand Draft to the seller of the land.
      5. Wiring of Houses : Upto a maximum of Rs.1000 for BPL families.
      6. Sanitation Unit : Rs.2000 per unit including soak pit, compost pit and toilet for BPL families.
      7. Assets for self-employment. : As per SGSY pattern in rural areas and SJSRY pattern in urban areas.
      8. Animal Husbandry schemes. : The percentage of subsidy would be as for category 7 above. But the unit cost should be as fixed by NABARD from time to time. Family and individual ceilings would be as in Category 7.

      Cattle Insurance approved by Government can be implemented.
      9. Wells : 1. For SC/ST and BPL families fully subsidized wells can be given for drinking water purposes and for agricultural purposes.

      2. In the case of non-BPL marginal farmers 50% subsidy of the unit cost can be given. The unit cost for wells would be fixed by the respective DLTC.
      10. Roof water harvesting : 50% of cost up to Rs.5000/- for BPL families (Unit cost to be fixed by DLTC)
      11 Agricultural Schemes – only for integrated group schemes. : (a)Fertilizer (including bio-fertilizer and manure) subsidy can be up to 50% of the cost and can be given only to marginal and small farmers (marginal farmers means owning 1 hectare or less and small farmer means one who owns between 1 to 2 hectares) as the component of a larger integrated production improvement project. There shall not be any scheme for fertilizer or pesticide distribution alone. Similar subsidy can be given for pesticides including bio-pesticides again as part of an integrated production improvement project for marginal farmers. Subsidy should not be p.aid in cash to individuals or families.

      (b)Vegetable seeds and paddy seeds and seedlings can be given free of cost and other seeds and seedlings may be given at 50% subsidy.

      (c)For pump sets, sprayers and other agricultural implements the subsidy would be 75% for SC/ST and 50% for non-SC/ST and can be given to marginal farmers only. The unit cost would be as fixed by NABARD.

      (d)Tractors, and other agricultural machinery, etc., can be given only to farmers’ co-operatives and registered ‘Padasekara Samithis,’ free of cost after getting an agreement signed by them that it will be put to common use and will be promptly maintained.
      12. Soil Conservation : Subsidy limits applicable under Western Ghats Development Programme
      13. Cutting of coconut trees affected by disease : The rates of subsidy would be the same as that given by the Agricultural Department. Only marginal farmers are eligible for this subsidy. There should be a system of marking of trees affected by disease by a committee which includes the Agricultural Officer and the payment should be made after verification.
      14. Fisheries Schemes : The subsidy limits and family income now fixed by the fisheries department would apply.
      15. Auto-rickshaw / Pick-up Auto : The subsidy could be up to Rs.10,000 in the case of non-SC and Rs.20,000 in the case of SC/ST beneficiaries. Invariably the scheme should be linked to institutional finance and payment should be as back-end subsidy to the bank concerned. The eligibility is limited to BPL families.

    2. In order to assist the physically and mentally challenged people it is permissible to provide the following items free of cost to those eligible people below poverty line.


      1. For the physically handicapped


        1. Surgical shoes/ankle boots/moulded shoes/specially made leather chappals according to required measurements/micro cellular chappals with rubber sole/accommodative foot wears.


        2. Orthotic equipments/different kinds of corrective shoes.


        3. Artificial limbs/different kinds of legs, hands etc.


        4. Walking aids/ different kinds of crutches, walkers.


        5. Lumbar Corset/ Spinal Brace/ Jacket/ Knee Brace/ Static or Dynamic Splints/Wheel Chair/Tri Cycles run by hand or by motor.

      2. For the hearing impaired


        3. Hearing aids

      3. For the mentally challenged


        1. Items that are given to physically handicapped as required.


        2. Tri cycles and wheel chairs made according to the health condition of the person concerned.

      4. For the vision impaired


        1. Special equipments for movement, white cane.


        2. Hand held stand magnifiers with and without light, speech synthesizers, Braille attachments necessary for computers.


        3. Braille attachment which is connected to telephone for vision impaired and hearing impaired.


        4. Equipments to help braille writing – short hand Braille machine, Braille type writer for students who have passed 10th talking calculators, raised map globes etc.


        5. Special study aids.

      5. Cost per unit of the above mentioned aids and their procurement would be as per the existing procedures of the Health department.


      6. In addition the following norms would apply.


        1. For Group Economic Development Schemes, the subsidy pattern applicable for SGSY would apply in rural areas and those applicable to SJSRY would apply in urban areas (only people below poverty line).


        2. All irrigation schemes would have at least 20% of the capital cost contributed by the benefitted farmers in proportion to the area under their possession. The farmers’ groups should also undertake to carry out the operation and maintenance. The work has to be approved by the farmers’ groups before it is implemented.


        3. In the case of water supply schemes beneficiary groups have to be formed of all families benefited and at least 10% of the capital contribution should be mobilized. There can be cross subsidies as decided by the community. The O&M responsibility should be taken up by the beneficiary group.


        4. Instead of subsidies, revolving funds may be given for farmers’ groups and Padasekhara Samithies after clearly specifying the purposes for which revolving funds can be used.


        5. Local governments may provide infrastructure for IT@school projects in government schools and for Copra/Pepper drying units and bio-fertilizer units of CDSs.


        6. In the case of insurance schemes Local Governments may contribute only to schemes which are approved by Government. This applies to accident insurance, health insurance, livestock insurance etc.


        7. Local Governments may contribute the subsidy to the Special Livestock Breeding Programme (SLBP) as per the norms fixed by the Animal Husbandry Department.

  4. Restriction on subsidies and other items.

    1. Provision of subsidies for the following items to individuals and families is not allowed.


      1. Pressure Cooker.


      2. Cooking Vessels/Storage Vessels.


      3. Furniture.


      4. TV/Radio/Mike sets/lamps/lanterns (except in the case of solar lanterns to SC/ST households in unelectrified areas).


      5. Bags/Slippers/Shoes/Umbrellas etc.


      6. Dress Items/Uniforms/Books.


      7. Cash Doles/Pensions/Donations/Advertisements.


      8. Grants for Treatment/Marriage/Funeral/Child Birth.


      9. Sewing Machine.


      10. Axe/Pick Axe/Shovel/Spade/Fork and other garden implements.


      11. Agricultural Land.


      12. Interest subsidy.

      This is an illustrative list and applies only to beneficiary oriented schemes either for an individual or a family. If the District Planning Committee feels that there are similar items, which would lead to mere distribution of funds, it may persuade the local governments to drop such projects. In case there is any dispute, the matter may be referred to Government for clarification.

    2. In view of the Information System network that is being planned by the Government for local governments, purchase of computer and software for the use of the local government can be made only with prior sanction of the Government. For provision of hardware and software for the IT@School project where Kudumbashree is not in a position to run it, the standards and specifications approved by government would have to be followed.


    3. No salary can be paid from the plan grant. However, short duration honorarium or consultancy charges may be paid subject to a maximum of three months and it should in no way cause any commitment to long run salary expenditure of the local governments. Only exemption to this is the honorarium subject to a maximum of Rs.100 per month that may be paid to Anganwadi Workers and Rs.50 to Anganwadi Helpers for the services in mobilizing women in the Grama Sabhas/Ward Conventions and assisting the implementation of Kudumbashree Programme. Also vehicles cannot be purchased using Plan Grant without prior permission from Government.


    4. Assistance to Co-operatives and Charitable Societies, including those promoted or set-up by local governments cannot be provided using Plan Grant.


    5. For any other item not mentioned in the Government Order, prior permission of the Government is required. Any violation of the subsidy norms would be deemed to be misutilisation of local body funds and any excess subsidy paid would be recoverable from the person(s) responsible as per the provisions of law.

  5. Credit linkages


    6. Based on the decisions of the District Level Bankers Committee and Block Level Bankers Committee, the Working Groups should work out credit linkages for as many schemes as possible i.e., the local government subsidy should be used to attract loans from the banks to the beneficiary group or individual. This would ensure that investment in sectors related to economic development gets multiplied. But before firming up proposals for credit linkages consultations may be held with local bankers for which DLBC/BLBC could be used as a forum to be attended by the conveners of the concerned Working Groups.


7 . 5
       Step 5 - Plan Finalization by Local Governments

7.5.1.
       Once the projects are prepared in order to finalize the plan the following steps have to be to taken.

  1. The concerned Standing Committee of the local government would have detailed interactions with the respective Working Group(s).


  2. A full meeting of the local government would finalize the projects which are to be included in the Five Year Plan as well as the Annual Plan 2002-03.

7.5.2.
       While finalizing the Plan the local government shall bear the following points in mind.

  1. Size of the Plan. The Annual Plan size is as indicated in the Appendix B of the State Budget. The Five Year Plan size can be assumed to be six times the current year’s allocation. The Annual Plans for the succeeding years may be estimated at 10% above the previous year’s Plan. As regards Centrally Sponsored Schemes a 10% annual increase can be estimated. For State sponsored schemes no increase need be assumed.


  2. In the case of Village Panchayats, Municipalities and Corporations all new developmental works and schemes should be part of the Annual Plan. The revenue surplus of these local governments should be used as an additional source for funding the Plan. The revenue surplus is to be calculated as follows:


    3. Own resources – X
    Transfers from Government through Director of Panchayats, Director of Municipalities – Y
    Establishment charges, maintenance charges, routine repairs, repayment of loans, reasonable amount of contingency for unforeseen emergencies. – Z
    REVENUE SURPLUS – (X + Y) – Z

  3. It is possible that unspent funds are available from the Centrally Sponsored and State Sponsored Schemes. An Action Plan for spending such funds in accordance with the departmental guidelines needs to be drawn up.


  4. The priorities indicated in these guidelines have to be considered and incorporated in to the Plan.

7.5.3.
       The various aspects of integration of plans have to be built into the Plan. The kinds of integration are explained below:

  1. Integration with State Plans:There are several State Plans which are implemented at the local level, which if the local governments so decide, can be replicated with increased allocation from local government funds. Also in some cases a component having a complementary nature could be added to the State Plan Scheme. Another kind of integration in this category would be to take up downstream activities after government completes a plan scheme; for example when the KSEB draws an electric line to a new area, the local government could take up wiring of BPL houses.


  2. Integration of resources There are several schemes both Centrally sponsored and State sponsored to which local governments can contribute additional resources. For example, training component of SGSY or SJSRY could be magnified using local government funds. Similarly, for housing under Indira Awas Yojana the local government can contribute up to Rs.13,000 per unit.


  3. Integration with Centrally Sponsored Schemes What is envisaged is that there shall be only one development plan for the local government prepared through a common planning process. Once the priorities and works are identified those components which can be taken up under the guidelines of the concerned Centrally Sponsored Scheme should be taken up using those funds. Once this matching is done, action plan for CSS can be drawn up from the total plan, as required under the guidelines of those schemes. In other words different types of plan preparation for different sources of funds should not be done.


  4. Horizontal integrationThis implies providing backward and forward linkages. Examples would be provision of irrigation being accompanied by introduction of high yielding variety of seeds, supply of milch cattle linked with disease prevention programme etc.


  5. Vertical integration This implies that higher level local governments should perform activities which have the advantages of scale and which cannot be done by the lower tiers of local government. In order to achieve this, the Block Panchayats should get the draft plans of Village Panchayats before finalizing their plan. Similarly the District Panchayats should consider the approved plans of Village and Block Panchayats before finalizing theirs.


  6. Sectoral integrationThis implies that instead of taking up one development component a group of related issues could be addressed. For example, a coconut development project could provide for cutting of diseased trees, replanting with high yielding varieties, inter-cropping with fodder, vegetables etc., micro irrigation and even copra drying.


  7. Cross-sectoral integrationIn order to achieve maximum impact it is possible to design schemes which have elements from several sectors. A typical watershed management programme would have components like soil conservation, water harvesting, micro irrigation, bio-mass generation, fisheries, animal husbandry, agro processing and even micro enterprise components, of course properly sequenced.


  8. Spatial integrationThis implies integration of schemes like roads which run through one or more local governments. Multi local government infrastructure projects can be taken up with proportionate contribution from the local governments concerned and entrusted to one local government for execution.

7.5.4.
       As the National Development Council has called for the Tenth Plan to be a Reform Plan each local government has to prepare a Reform Plan and include in its Plan document. It should consist of the following elements.

  1. Updating of records.


  2. Completion of Asset Register.


  3. Preparation of Road Register.


  4. Preparation of benefit register including supply of benefit cards to all beneficiaries..


  5. Increasing local resource mobilization through taxes, user charges and contributions.


  6. Innovative means of financing through cess, BOT, Community contribution and borrowings.


  7. Performance standards for institutions and officers.


  8. Steps to reduce waste and leakages.


  9. Measures to control possible corruption.


  10. Measures to improve performance of obligatory functions in the case of Village Panchayats and Municipal bodies.


  11. Efforts at promoting development through local action without significant outflow of funds from the local government. This could include tapping of funds from local philanthropists, NRIs, the Corporate sector and NGOs.

7.5.5.
       The structure of the Plan document: The Plan document submitted to the DPC for vetting should consist of the following chapters.

  1. Development scenario of the local government.


  2. Efforts during the past five years.


  3. Success and failures.


  4. Physical and Financial achievements.


  5. Thrust areas identified in the district plan.


  6. Strategic vision of the local government.


  7. Chapters on Anti-poverty Sub Plan, Women component Plan, Special Component Plan and Watershed Management Plan.


  8. Description of schemes sector wise and in each sector giving the existing scenario, the intended scenario, size of the gap and the phased filling up the gaps with monitorable targets. PERT charts are to be given for each scheme. In the case of schemes targeted at individuals or groups, the eligibility criteria and prioritization criteria among eligible applicants need to be clearly spelt out – in the case of prioritization criteria, marks assigned for each criterion has to be noted with the total being 100.


  9. Credit linkages.


  10. Efforts at integration & suggestion for higher tiers.


  11. Reform Plan.


  12. Monitoring arrangements.

7.5.6.
       The plan documents should be for five years giving details of the annual plans of the five years. In the case of the Annual Plan for the year 2002-2003 all details have to be specific. For other years the following instructions may be followed.

  1. Projects for infrastructure like roads, buildings, irrigation, water supply, solid waste management, electricity extension, play grounds, markets etc., would have to be specific giving location including ward, magnitude, cost etc.


  2. In the case of economic development schemes including poverty alleviation, the project should show various components – capacity building needs, costs, method of selection and implementation etc. The same system may be followed for self-employment schemes for individuals and groups.


  3. Projects for repairs and renovations need indicate only the annual allocation and sector and details can be worked out before implementation. But the assets chosen and the types of repair should be noted.


  4. For training projects also only the earmarking of resources and type of training, and target group need be indicated at the beginning.

7.5.7.
         In addition to the plan document, the following should be submitted to TACs :

  1. Statistical statement.


  2. Documents relating to various steps in the preparatory phase and the planning phase.


  3. Expenditure statement for Ninth Plan (year-wise).


7 . 6
       Step 6 - Vetting of Plans

7.6.1.
       The District Planning Committee (DPC) may constitute Technical Advisory Committees (TACs) at the district level for District Panchayats, Block Panchayats, Municipalities and Corporations and at the Block level for Village Panchayats as per the composition indicated earlier. The Block Development Officers (BDOs) would be the Convener and Secretary of Block Level TAC. The TACs should have sub groups for different sectors both at the District and Block Levels. The Chairpersons of Block Level TAC and the Chairpersons and Conveners of sub-groups of TAC both at the Block and District Levels would also be decided by the DPC. They would also fix the quorum for the sub groups and it shall not be less than three.

7.6.2.
       The functions of the TACs are:

  1. Ensuring that local government plans are in accordance with the mandatory guidelines issued by Government particularly in relation to investment ceilings for the broad sectors, subsidy limits, sectoral guidelines, priorities to various groups, ineligible categories for assistance etc.


  2. Ensuring that the plans are in accordance with prevailing technical guidelines.


  3. Verifying whether the costing is appropriate and the phasing is reasonable.


  4. Giving suggestions for innovative plans and integrated projects, which local governments may accept if they so desire.

7.6.3.
       However, it is clarified that TACs do not have any power to change a local government priority or to force a local government to take up a particular scheme or work. Any dispute regarding acceptance of a scheme at the Block TAC may be referred to the District TAC for decision. If the dispute is at the District level it may be referred to the Co-ordination Committee at the Government level for decision.

7.6.4.
       The TAC sub groups should go through every project in detail, visit sites if required and make suitable recommendations to the DPC. In case the TAC identifies any problem with local government projects it should hold discussions with the elected head and the concerned implementing officers of the local government and sort out matters across the table. No plan, which does not have the required allocation for Anganwadi feeding, should be forwarded to DPC.

7.6.5.
       The concerned local governments would submit their plans in one lot to the BDO or the DPO as the case may be and obtain receipt. The BDO or DPO may divide the projects among different sub groups of the TAC and pass them on to them for detailed scrutiny. The TAC shall not take more than 10 days for vetting the Plan of a local government.

7.6.6.
       The draft Plan of District Panchayats and Corporations should be submitted to the State Planning Board after vetting by TAC.


7 . 7
       Step 7 - Approval by District Planning Committee

The DPC would hold as many sittings as required to go through the plans submitted by local governments as vetted by the TACs. The DPC shall not take more than 10 days to approve plans of local governments.


7 . 8
       Step 8 - Technical Approval

7.8.1.
       Only public works need technical approvals. Technical Committees would be constituted at the Block, Municipality/Corporation and District Levels by the District Collector. Technical personnel would be drawn from among serving engineers, retired engineers and engineers from academic institutions both government and private and NGOs. Each Technical Committee could have independent sub-groups for irrigation and water supply consisting of atleast three engineers; one of whom shall be either from an academic institution or a non-government engineer. The works of Block Panchayats would be looked after by District Level Technical Committee (DLTC). Quorum for sub-groups would be three including one non-government engineer. Technical Committees and their sub –groups at all levels would have Convenors who would be engineers from government or public sector service. Ideally the Convenors of Block Level Committees should be of the rank of Assistant Executive Engineer and those at the District Level should be of the rank of Superintending Engineer.

7.8.2.
       The District Collector would be the Chairman of the DLTC. At the Block/ Municipal/Corporation levels a senior professional who is working in academic institutions, private sector or NGOs or who has retired from public or private service who has the stature and leadership to co-ordinate the working of the Technical Committee should be made the Co-ordinator of the Technical Committees. All these Committees are to be nominated by the District Collector in consultation with the DPC Chairperson.

7.8.3.
       The power of TS of a Sub-group or Technical Committee would be fixed at one level higher to the level of its Convener.

7.8.4.
       The responsibility for convening the Technical Committees would be with BDOs, Municipal/Corporation Secretaries and DPOs for the Block, Municipal/Corporation and District levels. Elected heads of District Panchayats, Block Panchayats and Municipalities/Corporations would have the right to review the progress of issue of technical sanction with the Technical Committees.

7.8.5.
       The Technical Committee shall give TS on a first come first served basis once the estimates are submitted to them. For projects which need changes discussions shall be held with the representatives of the local government concerned. They are fully responsible for the technical soundness of the estimates and the proposed work and they would have the same liability as that of any engineer who accords TS according to the PWD manual.

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8 . GENERAL ITEMS
8 . 1
       In order to eliminate benami works it is laid down that all building works are to be tendered except schools and Anganwadies where the PTAs, if they are willing to directly undertake construction, may do so. Similarly all road works involving tarring should be tendered. Only works having earth-work to the tune of at least 75% of the total cost and costing less than Rs.25,000 can be entrusted to beneficiary committees. And splitting of works is not permissible. Irrigation and Water supply works which have the mandatory contribution from the beneficiaries can be executed through the beneficiary groups themselves. For works executed through beneficiary committees the rates shall be the same as those stipulated for the year 2001-2002.

8 . 2
       In order to avoid high cost of advertisement the works may be tendered through a single advertisement. Also the tender notice should be put up in the official website for public information. In order to ensure transparency and accountability of tendered works, Monitoring Committees consisting of beneficiaries would be set up selected in the same manner as the Executive Committee of a Beneficiary Committee. Also tender excess would not be permitted except to the level of increase allowed for Beneficiary Committees for different categories of works.

8 . 3
       All documents relating to plan preparation are public documents and open for scrutiny or copying by any person.

8 . 4
       Officials from government, public sector or autonomous agencies aided by government would be deemed to be on duty on the days they participate in various committee meeting and the Secretary of the Local Government concerned is authorised to issue the attendance certificate for Working Groups and the Convenor for TACs and Technical Committees.

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9 . SUPPORT SYSTEMS
In order to help the local governments in the plan preparation process each local government may identify one official working within its jurisdiction to act as Plan Co-ordinator. In the case of Municipalities, Corporations, Block Panchayats and District Panchayats the officer should be a gazetted officer. Similarly a senior gazetted official should be identified by the DPC to function as the Plan Co-ordinator at the district level. All such identification has to be through unanimous resolutions.

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10 . TIME TABLE FOR PLAN FINALISATION
The following dates are suggested for completing various steps in the Plan preparation process. The dates are suggestive and local governments may make marginal changes to suit their convenience. However the dates for submission to Technical Advisory Committee and DPC are mandatory and if this is delayed, the local governments would forfeit 25% of the allocation for 2002-2003.

(1)Identification of Co-ordinator 20th June 2002
(2)Constitution of Working Group 25th June 2002
(3)Constitution of Technical Advisory Committes by DPCs. 1st July 2002
(4)Evaluation of Ninth Plan 31st July 2002
(5)Asset Verification 31st July 2002
(6)Completion of other items of stock-taking of the Ninth Plan. 31st July 2002
(7)Revision of Development Report 31st July 2002
(8)Revision of District Plan 31st July 2002
(9)Special meeting of DLBC/BLBC 31st July 2002
(10)Submission of Working Group Reports 10th August 2002
(11)Grama Sabha/Ward Sabha meetings 5th September 2002
(12)Consultations of Block Panchayats and
District Panchayats with other tiers 		31st August 2002
(13)Consultation with stake-holders 31st August 2002
(14)Development Seminar 15th September 2002
(15)Plan Finalisation and submission to DPC
through Technical Advisory Committee.
  1. Village Panchayats


    2.
  2. Block Panchayats/Municipalities


    3.
  3. District Panchayats/Corporations


25th September 2002

5th October 2002

12th October 2002
(16)Approval by the DPC
  1. Village Panchayats


    2.
  2. Block Panchayats/Municipalities


    3.
  3. District Panchayats/Corporations

15th October 2002

20th October 2002

31st October 2002