In the strongest ever indictment of the Non Lapsable Central Pool of Resources (NLCPR) scheme meant for the northeastern states, the Public Accounts Committee of Parliament in its report to Parliament on Thursday said the nodal DoNER Ministry should review whether the NLCPR scheme need to be continued at all.
"NLCPR funding constituted only around 4% of the total expenditure in the NE region, and as the scheme has failed to achieve its intended objective of ensuring speedy development of infrastructure in NE states, the committee have recommended that the ministry may review the further continuance of the NLCPR scheme," a PAC release said.
The PAC, headed by Murli Manohar Joshi, also castigated the nodal DoNER Ministry and the eight northeastern states for delays and ineffective implementation of many centrally sponsored schemes. "The ministry in coordination with the state governments should analyse the reasons for delays in completion of works," it said adding that a strategy needs to be developed to improve utilization of funds and accelerate the pace of development in the NE region.
As against a total accrual of Rs 6,525 crore in the NLCPR during 2003-04 to 2007-08, the aggregate amount released to the NE states was only Rs 3,205 crore constituting 49% of the accruals, indication poor implementation of the programme despite availability of funds.
As of September 30, 2008, 959 projects with an approved cost of Rs 7,070 crore had been sanctioned from the NLCPR. However, only 435 projects involving an expenditure of Rs 1,934 crore could be completed till October 2008 as against the target of 783 projects," it said in the report tabled in both Houses of Parliament today.
Set up in 1997, the NLCPR aimed at pooling unspent money allocated under various schemes by central ministries and departments in the annual budget.
The Central ministries need to earmark at least 10% of their budget for developmental programmes in the northeastern region and the unspent portion of the money goes to the NLCPR.
The funds from NLCPR are allocated to various states by DoNER ministry for developmental schemes.