From Jal Khambata

NEW DELHI: The Planning Commission is introducing a new criteria
for sanction of the Central funds to the states on the basis of
the annual "progress report" of the developmental projects
instead of releasing instalments.

The states of Madhya Pradesh, Gujarat, Rajasthan, Bihar and West
Bengal have been chosen in the first phase of the new experiment
aimed at penalisng the states which do not spend the money
allotted for the Centrally-aided projects.

The "progress report" to be prepared by the Planning Commission
officials on the basis of data collected from the states would
state how much money has been utilised from the sanctioned
funds and whether the project is progressing as per schedule.

The Planning Commission sources said the experiment was being
carried out in five states but all other states would also be
brought under the scheme in the next two years on the basis of
the efficacy studied on the basis of this experiment.

The "progress report" would help the Planning Commission to
decide whether to continue a particular project or to stop it.
There would be no automatic allocation of funds on the basis of
the demand sent by the states by just submitting utilisation of
the earlier sanctioned money.

The paucity of funds with the Centre has compelled the Planning
Commission to penalise the states which either divert the funds
for other expenditures or return the allotted funds without
utilisation.

Planning Commission deputy chairman K C Pant has already written
to the chief ministers that they must reduce their annual plans
for the new financial year of 2000-2001 that began from this
Saturday by incorporating only those schemes and projects which
are really progressing. END.
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