IMPLEMENTATION OF NABARD ASSISTED RIDF PROJECTS

The 14th year of implementation of NABARD assisted

RIDF Projects in Orissa will commence from 01.04.2008. RIDF
tranche-XIII, now in operation, will come to a close w.e.f.
31.03.2008. Corpus of RIDF-XIV has been raised to Rs.14,000 Cr.
with a separate window for rural roads as announced by the Hon'ble
Union Minister of Finance in his Budget Speech.
Negotiated loans availed from NABARD under RIDF is
primarily utilized for infrastructure development of the State. Since
Orissa has a low infrastructure index, development of roads and
bridges and extension of irrigation facilities have been taken as
priority programmes with the assistance received from NABARD.

Selection of new projects:

The High Power Committee constituted under the

chairmanship of the DC-cum-ACS select new projects under the
scheme for sanction. The Committee take into account the new
projects recommended by the Departments of Government and the
projects selected by the representatives of the people and the
dignitaries. The Committee select the projects for sanction under
RIDF considering the strategic importance, cost benefit ratio, parity
among the districts of the State and the socio-economic
development of backward areas. Concerned Departments submit
feasibility report / DPR to NABARD for sanction after clearance and
approval by the Committee.
Area of activity:

The list of activities covered under RIDF–XIII is furnished

below.

177
 1.Rural Roads, 2.Rural Bridges, 3.Minor Irrigation projects /
Micro Irrigation 4.Soil Conservation, 5.Flood Protection,
6.Watershed Development / Reclamation for Water logged area,
7.Drainage, 8.Forest Development, 9.Market Yard/ Go-down, Apna
Mandi, Rural hats and other marketing infrastructure, 10.Cold
Storage, Public or Joint Sector Cold Storage at various exit points,
11.Seed / Agriculture / Horticulture Farms, 12.Plantation &
Horticulture, 13.Grading & Certifying mechanisms such as Testing &
Certifying Laboratories etc., 14.Community Irrigation Wells of
Irrigation Purposes for the village as a whole, 15.Fishing Harbour /
Jetties, 16.Riverine fisheries, 17.Animal Husbandry, 18.Modern
Abattoir, 19.Medium Irrigation projects, 20.Mini Hydel Projects, 21.
Drinking Water, 22.Infrastructure for Rural Education Institutions,
23.Public Health Institutions (including mobile health clinics),
24.Construction of toilet blocks in existing Schools, 25.“Pay & use”
toilets in rural areas, 26.Major irrigation projects (only those
projects already sanctioned and under execution), 27.Village
knowledge centre, 28.Desalination plants in coastal areas, 29.Small
Hydel Projects (upto 10 MW), 30.Infrastructure for Information
Technology in rural areas 31.Construction of Anganwadi centres. 32
Filtration unit of Rural Drinking Water Supply Scheme using
membrane technology as well as domestic water filters not using
electricity.
RIDF in PPP model:

Public Private Partnership ( PPP) model can be adopted to

access RIDF funds in the areas like education, health, tourism, food
processing, agricultural marketing and supply chain management
etc. as communicated by NABARD in letter No. NB(ORI)/RIDF -
115/2006-07 dated 11.04.2007. Finance Department have
communicated the proposed model to the concerned Departments
in letter No. 25462(11)/F., dt.04.06.2007.

178
 Sanction of Projects:

After due scrutiny in the Regional Office of NABARD, detailed

project reports are sent to their head office for approval. The
projects sanctioned by the Project Screening Committee (PSC) of
NABARD are communicated to the State Government through the
Regional Office.
So far 74178 projects have been sanctioned by NABARD
under RIDF out of which 90 projects were withdrawn. Out of the
balance74088 projects, 32843 projects are under implementation.
As many as 41245 projects have been completed up to 29.02.2008
as indicated in the following table.

TABLE-I

Projects Projects Projects under Projects Incomplete

Year
sanctioned withdrawn implementation completed Projects
(1) (2) (3) (4) (5) (6)
1995-1996 2564 59 2505 2505 0
1996-1997 46 2 44 44 0
1997-1998 53 0 53 49 4
1998-1999 48 9 39 36 3
1999-2000 92 15 77 63 14
2000-2001 16122 1 16121 16107 14
2001-2002 148 1 147 94 53
2002-2003 395 0 395 87 308
2003-2004 28585 0 28585 19710 8875
2004-2005 440 3 437 84 353
2005-2006 7059 0 7059 2125 4934
2006-2007 16635 0 16635 341 16294
2007-08 1991 0 1991 0 1991
(up to
29.02.2008)
Total 74178 90 74088 41245 32843

As many as 37562 projects with a total estimated cost of

Rs.1603.37 Cr. were recommended by the High Power Committee
for sanction under RIDF-XIII during the year 2007-08 as against
which projects worth Rs.450.17 Cr. with a loan component of

179
Rs.370.68 cr. were sanctioned by NABARD up to 29.02.2008, vide
Page -

While communicating sanction of projects under

RIDF-XIII, NABARD has categorically indicated that if the
State Government fails to initiate implementation of the
projects by issue of necessary work orders etc. within a
period of two years from the date of the sanction letter, the
sanction of the project for RIDF assistance shall lapse.

Completion of Projects under RIDF:

There is substantial progress in implementation of RIDF

projects during the last few years due to regular monitoring and
review. The following table shows the position of sanction of RIDF
projects vis-à-vis completion of ongoing projects during the last five
years.
TABLE-II
(Rs. in Crore)
Amount sanctioned
No of projects No of projects
Year by NABARD
sanctioned completed
Loan State Share
(1) (2) (3) (4) (5)
28585 2788
2003-04 122.84 22.83
(incl. 28224 wells) (incl. 2718 wells)
6309
2004-05 440 297.45 79.79
(incl. 6257 wells)
2005-06 7059 396.96 110.38 8527
2006-07 16635 497.93 207.62 5222
2007-08
(up to 1991 370.68 67.96 5939
29.02.08)

Budgetary Provision:

The implementing Departments make necessary provision in

the budget keeping in view the plan ceiling communicated by the
P.& C. Department. They also keep in view the number of projects
sanctioned/to be sanctioned and the number of projects identified

180
for completion. Any shortage in provision noticed in course of the
year is made good by making provision at the supplementary stage.
Implementing Departments are advised to provide for the full
requirement for the ongoing projects nearing completion instead of
spreading the outlay thinly over a large number of projects to
ensure immediate benefit to the people.

Budget provision of Rs.521.81 crore including Supplementary

was made for 2007-08. Similarly, budget provision of Rs.465.00 Cr.
has been made in the BE for 2008-09. Depending on the progress of
work and achievement of physical target, the budget provision can
be augmented during Supplementary. Department-wise break up of
the budget provision is given in the following Table: -
TABLE-III
(Rs. in Crore)
Annual
Annual Budget Supplementary Total
Name of the Budget
provision for provision for provision
Department provision for
2007-08 2007-08 for 2007-08
2008-09
(1) (2) (3) (4) (5)
Water Res. 125.00 97.15 222.15 195.00
Works 115.00 51.82 166.82 143.00
Rural Devp. 58.00 30.60 88.60 71.00
Agriculture 10.00 32.24 42.24 50.00
Fisheries& ARD 2.00 - 2.00 6.00
Total 310.00 211.81 521.81 465.00

Filing of Claims:

Through periodic review, Finance Department urge upon the

implementing Departments to speed up expenditure, execution of
work and filing of claims for reimbursement. As a result of periodic
review, the position in filing of claims has improved considerably
with corresponding improvement in release of loans by NABARD as
indicated in the following table.

181
 TABLE-IV
(Rs. in Crore)
Claims
Budget Loan
L.C. filed (incl. Advance
Year Provision (incl. released by
issued arrear taken
Supplementary) NABARD
claims)
(1) (2) (3) (4) (5) (6)
2003-04 354.25 130.22 233.72 107.42 15.18
2004-05 416.95 260.46 287.72 154.60 NIL
2005-06 295.24 251.34 262.41 177.15 NIL
2006-07 521.62 321.78 272.92 187.06 NIL
2007-08
(up to 521.81 307.02 238.89 166.26 NIL
29.02.08)

Rate of Interest & Repayment of Loans:

Originally the rate of interest for RIDF loans was ranging from
13% to 8% per annum. Subsequently with the approval of RBI and
Govt. of India, the lending rates in respect of the loans sanctioned
by NABARD under RIDF-IV to IX were revised w.e.f. 01.11.2003.
Year-wise position of the rates of interest and the revised rates is
shown in the following table.

TABLE-V

Rate of Revised rate

Tranche Year Remarks
Interest of Interest
(1) (2) (3) (4) (5)
I 1995-96 13% - Not revised
II 1996-97 12% - -do-
III 1997-98 12% - -do-
IV 1998-99 12% 7% w.e.f. 01.11.03
V 1999-00 12% 7% -do-
VI 2000-01 11.5% 7% -do-
VII 2001-02 10.5% 7% -do-
VIII 2002-03 8.5% 6.5% -do-
IX 2003-04 8% 6.5% -do-
X 2004-05 6.5% - Not revised
XI 2005-06 6.5% - Not revised
XII 2006-07 6.5% - Not revised
XIII 2007-08 6.5% - Not revised

182
 During the year 2007-08, State Govt. have paid Rs.33.08 Cr.
towards interest to NABARD and also Rs.26.70 Cr. has been repaid
towards Principal.

Review of RIDF Projects:

Even though the progress in creation of rural infrastructure

has been appreciable, there are few issues concerning the
implementation of RIDF projects which need regular monitoring and
review. To address such issues impeding progress in
implementation and to ensure timely completion of projects with
regular funding from NABARD, review meetings are being taken up
at the level of the Hon’ble Minister, Finance, DC-cum-ACS and
Principal Secretary, Finance. Such issues are also being reviewed by
the Chief Secretary in the monthly meetings of all Secretaries.

183
Steps taken for timely completion of RIDF projects :

(a) Implementing Departments are advised to prepare

priority list of projects to be completed during the
year and if necessary, divert funds from the low
priority sector to ensure completion within specific
timeframe.
(b) Finance Department ensure issue of LC as per the
requirement.
(c) Finance Department ensure timely repayment of
loans and payment of interest to NABARD.
(d) Incomplete projects of earlier tranches involving cost
escalation are allowed to be reposed under the
current tranche to ensure completion of the balance
work.
(e) Finance Department allow expenditure out of the
Non-Plan budget for completion of the incomplete
projects the expenditure of which cannot be
reimbursed due to closure of the tranche.
(f) RIDF Cell has been constituted in the Implementing
Departments and Contact Officers have been
nominated who coordinate activities under the
scheme mainly in respect of filing of claims,
submission of PCR, submission of DPR etc.
(g) Secretaries of Departments have been requested to
review progress of work and expenditure at regular
intervals.

184
 SANCTION OF LOAN UNDER RIDF XIII
Department - Rural Development
(Rs. in Lakh)
Sl. Potential Loan Amount State
Name of the Project District
No. (Km/M/Ha) 2007-08 2008-09 2009-10 Total Share
(1) (2) (3) (4) (5) (6) (7) (8) (9)
(I) Rural Bridges (91 & 92 PSC)
HLB on Gudvela Jamut
1. Bolangir 153.00 124.41 124.41 124.40 373.22 93.30
Rd (1Km) over
HLB on Agalpur to
2. Bolangir 104.00 69.09 69.09 69.09 207.27 51.82
Nagaom Rd (13 Km)
HLB on Sarumuhan to
3. Bolangir 123.00 80.82 80.82 80.81 242.45 60.61
Sunamudi Rd over
HLB on Ampali
4. Bolangir 429.00 232.92 232.92 232.91 698.75 174.69
Balagon Road (18 Km)
HLB on Jasarajpur on
5. Cuttack 337.00 228.78 228.78 228.78 686.34 171.58
Bhida Anand
HLB Jaypore Debgaon
6. Mayurbhanj 214.00 155.24 155.24 155.24 465.72 116.43
Rd (1Km) over River
HLB Subarnapur
7. Gabakunda Rd Puri 77.00 104.37 104.37 104.36 313.10 78.28
(8.5 Km)
SB Kuarmunda Ushra
8. Sundargarh 97.00 53.50 53.50 53.50 160.50 40.12
Rd (1-4 Km) over
HLB Narada-Rajas- Rd
9. Khurda 92.00 78.98 78.98 78.99 236.95 59.24
(4.5 Km) over Dh
SB Jharigaon
Nawarangp
10. Dhamanguda Rd 61.00 29.98 29.98 29.97 89.93 22.48
ur
(15 Km)
SB Jharigaon
Nawarangp
11. Dhamanguda Rd 44.00 25.43 25.43 25.42 76.28 19.07
ur
(7 Km)
HLB Taranga Tulimal
12. Deogarh 61.00 48.24 48.24 48.25 144.73 36.18
Rd (2 Km) over
HLB Bhojpur
13. Jamankira Rd (12 Km) Deogarh 132.00 64.11 64.11 64.10 192.32 48.08
over
HLB Khariar Dumer
14. Nawapara 153.00 112.95 112.95 112.95 338.85 84.71
Jore Rd (5 Km) over
HLB Lachipur
15. Kutasingh Rd (1 Km) Sonepur 153.00 119.90 119.90 119.91 359.71 89.93
over
SB Lamataguda nallah
16. Malkangiri 27.00 39.72 39.72 39.71 119.15 29.79
on Kumarput Ma

HLB Kainjhar Gutigia

17. Khandamal 92.00 101.84 101.84 101.85 305.53 76.38
Rd (2 Km) over
HLB Baliguda-
18. Khandamal 123.00 77.91 77.91 77.91 233.73 58.43
Sindhigaon Rd over
HLB Subarnarekha
19. Balasore 368.00 165.97 331.94 331.95 829.86 207.47
(5 Km) OTR (92 PSC)
SB Brahmani Drg.
20. Kendrapara 33.00 13.16 26.31 26.31 65.78 16.44
(8 Km) Doba (92 PSC)
Total 1927.32 2106.44 2106.41 6140.17 1535.03

185
 SANCTION OF LOAN UNDER RIDF XIII
Department - Works
(Rs. in Lakh)
Sl. Potential Loan Amount State
Name of the Project District
No. (Km/M/Ha) 2007-08 2008-09 2009-10 Total Share
(1) (2) (3) (4) (5) (6) (7) (8) (9)
(I) Rural Bridges (91 PSC)
HLB Pathara-Babanpur
1. Ganajm 160.00 178.97 178.97 178.97 536.91 134.23
Rd (6Km) over
HLB Nayagarh-
2. Ganajm 175.00 173.28 173.28 173.28 519.84 129.96
BhanjnagarRd (80 Km)
HLB bridge over river
3. Sundargarh 365.00 218.13 218.13 218.14 654.40 163.60
Koel Rd over at Jhirpani
HLB on Badchana
4. Jajpur 175.00 318.27 318.27 318.27 954.81 238.70
Balichandrapur Road
Min bridges on Bhadrak-
5. Bhadrak 36.00 54.40 54.40 54.40 163.20 40.80
Aradi Road(16 Km)

TOTAL 943.05 943.05 943.06 2829.16 707.29

(ii) RURAL ROADS (92 PSC)
Imp. Talcher
1. Gopalprasad- Kaniha ANGUL 10.00 74.40 173.60 0.00 248.00 62.00
Rd
Imp. Patnagarh to
2. BOLANGIR 30.00 167.52 390.88 0.00 558.40 139.60
Dakipali Road
Imp. Badasanka Tarini
3. GANJAM 8.00 61.72 144.01 0.00 205.73 51.43
Vandika Rd.
Imp. Chikiti Digapahandi
4. GANJAM 17.00 106.85 249.31 0.00 356.16 89.04
Aska Rd.
Imp. Chandiput
5. GAJAPATI 13.00 85.13 198.65 0.00 283.78 70.94
Luhagadi Rd.
Imp. Basantapur JAGATSINGHPU
6. R
7.00 95.02 221.72 0.00 316.74 79.18
Kantour Rd.
Imp. Jajpur Binjharpur
7. JAJPUR 15.00 265.09 618.53 0.00 883.62 220.90
Rd.
App. Road HLB over
8. JAJPUR 8.00 166.32 388.08 0.00 554.40 138.60
river Kharsuan
Imp. Binjharlpur Singpur
9. JAJPUR 11.00 222.06 518.13 0.00 740.19 185.05
Rd.
Imp. Rambag
10. JAJPUR 17.00 178.15 415.67 0.00 593.82 148.45
Chatrapada Biripata Rd.
Imp. Jajpur Mangalpur
11. JAJPUR 26.00 348.85 813.97 0.00 1162.82 290.71
Kayangola Rd.
Imp. Kundupur Babar
12. KENDRAPARA 27.00 373.48 871.44 0.00 1244.92 311.23
Jambu Rd.1.61
Imp. Sunakhala-
13. KHURDA 11.00 192.13 448.29 0.00 640.42 160.10
Ayatpur Rd. (ODR)
Imp. Mahipur-
14. KHURDA 17.00 72.59 169.37 0.00 241.96 60.49
Bahadaylola Rd.
App. Rd - HL Bridge
15. KHURDA 6.00 24.78 57.81 0.00 82.59 20.65
over river Kusha
Imp.to Khariar Boden
16. NAWAPARA 23.00 143.51 334.87 0.00 478.38 119.60
Sinnapali Rd.
TOTAL 2577.60 6014.33 0.00 8591.93 2147.97

186
 SANCTION OF LOAN UNDER RIDF XIII
DEPARTMENT - F & ARD
(Rs. in Lakh)
Loan Amount
Sl. Potential State
Name of the Project District
No. (Km/M/Ha) 2007- 08 2008- 09 2009-10 Total Share

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(i) RURAL ROADS (92 PSC)

App. Road Fish Landing

1. MANY 16.00 210.200 490.46 0.000 700.66 175.16
Cent

TOTAL 210.200 490.460 0.000 700.660 175.160

(i) ANIMAL HUSBANDRY (91 PSC)

1. Consn. Livestock Aid Centre MANY 1323.75 1323.75 1134.64 3782.14 199.06

Consn. Veterinary
2. MANY 221.86 221.86 190.17 633.89 33.36
Dispensary

(Total Projects 1161) TOTAL 1545.61 1545.61 1324.81 4416.03 232.42

187