Saturday, September 27, 2008

Programme is riddled with corruption

Of course, there’s corruption and there are issues related to misappropriation of funds, allocation, quality and speed of work under the scheme. In the case of Bihar, CAG observed that there have been cases of diversion and misuse of funds, inadmissible payments, ineligible beneficiaries, and incomplete construction. Over Rs.90 crore budgeted for the scheme remained unutilised, and the state failed to obtain an assistance of Rs.401 crore from the Centre. CAG also detected that 3,050 houses had been made at the cost of Rs.4.78 crore for ineligible beneficiaries, and around 7,000 houses were either incomplete or abandoned for the past 2-5 years. The same is true for other parts of India.

Another problem with the project is that the houses are allocated to female members of the household in order to promote women empowerment. Nevertheless, the CAG report suggested that in 17 States and two Union Territories, as many as 37.75% of the allotments were made in favour of male members, thus defeating the main objective. But everything isn’t bleak, and this was proved by our experience in Bihar’s Samastipur, where the locals seemed happy and satisfied with the Yojna.

In addition, officials from local bodies—and sometimes the beneficiaries themselves—come up with ideas that have redefined the project. For example, in Begusarai district of Bihar, beneficiaries collectively worked as labourers to build the houses of other villagers who, in turn, helped them later. The result: the village saved Rs.5,000 per house. This model—which is like an informal self-help group—was later implemented in others districts of India.

Similarly, under another scheme in Patna district, the beneficiaries are given a loan of Rs.20,000 each at 4% interest to be repaid in 84 months at an EMI of Rs.275 per month. This was to prevent the beneficiaries from taking external borrowings at exorbitant interest. “Following this, the banks have come up with a scheme to assist them,” says Atul Mishra, Project Officer, DRDA. “The idea was an instant hit as it impacted the local moneylenders,” he adds.

With the national elections due next year, the UPA government would like to take electoral advantages from the Indira Awaas Yojna. Regional parties would do the same, as would local leaders. Nevertheless, the UPA hopes to gain all the brownie points by taking credit for the scheme, and blaming the states for not doing enough to implement the scheme. It is a smart move and the UPA believes it can get away with it.

But as we saw in Samastipur and other districts of Bihar, it won’t be a cakewalk for the ruling party at the Centre as other politicians and political parties have already convinced people that they had built the houses for the villagers. Each leader will claim the credit for building the houses, for giving a roof over the heads of the poor households. And it’s the voters who will finally decide.

The Snapshot
The Centre is responsible for policy, planning, finance, implementation, guidance, monitoring, and evaluation of the scheme

At the state and district levels, the responsibility rests with SLCCs, DRDAs and ZPs

The block development officers and panchayat samitis are the grassroots implementers of the rural housing blueprint

The Problems

Against the target of 109.53 lakh housing units, less than half were constructed or upgraded

CAG observed that there have been cases of diversion and misuse of funds, inadmissible payments, ineligible beneficiaries, and incomplete construction of the houses

Over a third of the houses were in favour of males defeating the purpose of empowering women

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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