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Unviable schemes face the axe

WORRIED OVER the financial crisis, both the Chief Minister?s Office and State Planning Board have decided to scrap non-performing schemes.

india Updated: Feb 07, 2007 20:13 IST
Manish Dixit
Manish Dixit

WORRIED OVER the financial crisis, both the Chief Minister’s Office and State Planning Board have decided to scrap non-performing schemes.

Planning Board secretary Manoj Jhalani admits that there is proposal for winding up some such State Government schemes which have lost their relevance and are a drain on resources.

Jhalani told Hindustan Times that three different strategies are being followed for rationalising State-funded schemes. While some of the schemes would be shifted from plan to non-plan head, those schemes that failed to make any major impact would be closed down. Besides, many schemes of similar nature would be merged into one scheme, he said.

According to sources, the government will save over Rs 600 by closing down nearly 200 schemes and can use the funds for other important activities.

The Chief Minister, the sources said, has given the freedom to the State Planning Board to find ways for mobilizing funds. Following this, State Planning Board has held several rounds of meetings with most of the departments and decided in principle to switch off non-performing schemes and converting some schemes from plan to non-plan head.

The State Government has decided in principle that out of 300-odd identified schemes of Rs 885 crore, only 80 schemes of Rs 261 crore are viable. Some of the remaining schemes will be merged. The money thus saved would be diverted for funding all politically sensitive and economically viable schemes in the next Plan. According to sources, the closing down of the schemes will to some extent solve Finance Minister Raghavji’s problems of mobilising fund.

“We don’t want that schemes which have outlived their utility both by failure in terms of outcome and waste of resources should be allowed to continue with,’’ a senior Government official told Hindustan Times.

First Published: Feb 07, 2007 20:13 IST