It is always desirable to set up an organization solely dedicated to accomplish well-defined objectives. Inspite of having the Ministry of Surface Transport a special purpose vehicle in the form of National Highway Authority of India (NHAI) was set up so as to exclusively attend to the development and maintenance of National Highways. This central agency is gradually taking over the execution of work hitherto being carried o0ut by the respective State Government. Similarly, inspite of having a Ministry of Rural Development, in view of the critical importance of the rural roads to the rural economy in general, a special purpose vehicle solely dedicated to the task of rural road construction is not only justifiable but also desirable and advisable to be set up on an urgent basis. This, however, does not imply that the structure of this authority be modeled on the pattern of NHAI. The various aspects of justification of establishment of such a vehicle are enlisted below:

7.1.1 Time-bound Execution : Involvement of multiple agencies proved to be a bottleneck and hence a single agency handling all functions is necessary. Existing system of disbursement of funds for rural development involves several intricate mechanisms and stages of administrative scrutiny,

controls and processing, right from Planning Commission, Central Government department, Zilla Parishads, Panchayat Samities and upto the Gram Panchayat level. This leads to tremendous delay in actual execution of the project. The quantum of work to be done in rendering 100% village connectivity is phenomenal and the work is to be completed in a time bound manner so as to meet the aspirations of millions of villagers in India who are perpetually deprived from the benefits of accessibility. This necessitates a dedicated agency.

7.1.2 Minimal Administrative Expenses and Overheads : Present level of administrative expenditure is approximately 60%-75% of the total outlay. Mr Rajiv Gandhi, the former Prime Minister of India had observed that more than 85% of the financial resources are spent over administrative machinery and the variety of overheads associated with it, finally leaving a marginal amount of 15% for the actual development work. The administrative costs could be reduced to about 7% by dedicating this task to a single accountable agency.

7.1.3 Timely Resource Mobilization and its Optimum Utilization : The gigantic task of 100% village – connectivity can be completed only if adequate financial resources could be mobilized in a speedy manner. This will require a flexible approach and innovative methods of financing, including issuing of special bonds, raising loans etc. An agency with a framework for optimal utilization of resources leading to sustained credit worthiness in capital markets is, therefore, an essential prerequisite for achieving 100% village connectivity.

7.1.3 Focussed Approach and Clear Mandate for Visible Results : For last 50 years, due to the constraints of the existing framework of development administration and inspite of inordinate delays and excessive administrative expenditure, there is a consistent failure in achieving the targets and visible results have not been achieved. Majority of the villages have therefore, remained away from the fruits of development. This important programme, therefore, demands one committed and highly result oriented agency with a focused approach, clear mandate and full delegated powers in every

aspect to achieve the objective of 100% village connectivity.

7.1.5 Quality Audit and Assurance : In the existing set-up, importance is attached only to the financial audit and not to the quality audit of the work due to the lack of monitoring / work audit machinery. Also, there is very little or no participation of the people in ensuring the quality of the work. In order to offer 100% village connectivity with long durability a highly performance oriented special agency with inbuilt mechanisms for quality assurance is necessary.

Structure

• A special purpose agency or authority to be established under the Ministry of Rural Development, Government of India for actual implementation and not for mere disbursement of funds to the states.
• The Authority should have a capital-market friendly structure.
• The Board of Directors of the Authority may consist of:
  
  • Chairman of the status of a Cabinet Minister of the Union Cabinet
  • Managing Director of the status of a Secretary to the Union Government
  • Secretary of Ministry of Rural Development, Govt. of India
  • I reputed Indian Industrialist from the Private Sector with extensive expertise and experience in capital market
  • I representative from NABARD
  • I representative from Financial Institutions
  • I Representative from HUDCO
  • I Representative from Nationalised Banks
  • I Secretary from one of the states’ Public Works Department / Rural Development Department
  • I Reputed Civil Engineer with extensive expertise and experience in Rural Road Construction
  • 4 Representatives from the Public
• No fresh recruitment and permanent employment.
• Induction from Central and State Government cadre on selective basis on deputation, as per the requirement.
• Other support and facilitation services to be hired on contract with a one moth notice period for termination and having no claim to permanent service.
• Field level project management by Project Management Consultants

(PMC) and quality audit through retired Military Civil Engineering Officers / PMCs.

Cooperation with State Governments, Zilla Parishads, etc.

7.3.1 A Facilitating and Enabling Authority : The establishment of a Special Purpose Authority for this task should not be conceived as a mechanism to curtail the freedom of the State Governments, Zilla Parishads, Panchayat Samitis or Gram Panchayats. In fact, on the other hand, this Authority is expected to create a high-quality rural road infrastructure in a short span of 4 years thereby facilitating and enabling the State Governments, Zilla Parishads, Panchayat Samitis and Gram Panchayats in accomplishing their main mission of overall rural development more effectively.

7.3.2 Expression of Willingness by Zilla Parishads : This agency shall undertake the work of rural road construction in a given district only after the respective Zilla Parishad passes a resolution to that effect and expresses its willingness by offering a no-objection certificate to the Authority.

7.3.3 Involvement of State Governments : The alignment of roads to be finalized by / with the approval of the State Governments. The land acquisition may also be made by the State Government. The compensation for the same may be paid by the State Government and in case if it is utmost necessary the same shall be borne by the Authority in specific cases.

7.3.4 State Governments as Actual Implementing Agency : If some of the State Governments express their initiative to take up a few projects on their own with equally professional approach, then the Authority should transfer the funds for implementation of 10-15 projects on a trail basis and based on the review of the performance of the respective State Governments, the Authority may adopt a suitable future course of action.

7.3.5 Construction of Major Bridges by the State Governments : The construction of major bridges, required in achieving 100%

village connectivity, may be entrusted to the respective State Governments.

Special Features

• Time bound implementation
• Total accountability and social responsibility
• No compromise on quality
• Complete transparency
• Credit-worthiness in the capital markets
• Efforts to minimize the cost
• Fully Computerized and online project management
• Adequate security and concurrent audit of the online functioning
• Authority to wind up upon completion of the mission within a period of five years.