PMGSY Briefing Book December, 2012 BRIEFING BOOK 1. Programme Objectives 1.1 Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on 25th December 2000 as a fully funded Centrally Sponsored Scheme to provide All- weather road connectivity in rural areas of the country. The programme envisages connecting all habitations with a population of 500 or more in plain areas and habitations with a Population of 250 persons and above in Hill States (North East, Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttarakhand), the desert areas (as identified in Desert Development Programme), the tribal areas and in 82 Left-Wing Extremists (LWE) affected / Integrated Action Plan (IAP) Districts as identified by the Ministry of Home Affairs and Planning Commission. 1.2 The PMGSY permits the Upgradation (to prescribed standards) of the existing roads in those districts where all the eligible unconnected habitations of the designated population size (refer Para 1.1 above) have been provided all-weather road connectivity. However, it must be noted that Upgradation is not central to the Programme. In Upgradation works, priority should be given to Through Routes of the Rural Core Network, which carry more traffic. 2. Cabinet decisions of 7th August, 2001 The main decisions of the Cabinet for the Pradhan Mantri Gram Sadak Yojana (PMGSY) are as follows:(i) PMGSY will be a 100% Centrally Sponsored Scheme executed through State Government Agencies. (ii) The primary objective of the Programme will be to provide connectivity by way of an Allweather road to all unconnected habitations with a population of 500 persons and above by the end of the 10th Plan Period (250 persons and above in case of Hill States and Desert areas). Upgradation, though not central to the Programme, would be allowed in cases where connectivity is complete. (iii) The total requirement of funds for the Programme is of the order of Rs. 60, 000 crore. The available source of funds, i.e. 50% share of the cess on High Speed Diesel (HSD), as per the Central Road Fund Act, being inadequate to finance a Programme of this magnitude, the Ministry of Rural Development is authorized to take appropriate steps in coordination with the Ministry of Finance to generate additional financial resources including by way of borrowings from, inter alia, the External Funding Agencies such as the World Bank and the Asian Development Bank. (iv) Execution of the Programme will be in project mode through setting up of National Rural Road Development Agency (NRRDA) to extend support to the Programme. 3. National Common Minimum Programme (NCMP) 2 The National Common Minimum Programme (NCMP) of the UPA states that UPA will pay special attention to augmenting and modernizing rural infrastructure consisting of roads, irrigation, electrification, cold-chain and marketing outlets. ‘Augmentation’ would mean ‘new connectivity’ and ‘Modernisation’ would mean ‘upgradation and maintenance’ in the context of PMGSY. In the Budget of 2005-06 the Finance Minister announced UPA Government’s goal to connect all villages that have a population of 1000 persons and above (500 persons and above in hilly/tribal areas) with a road as part of Bharat Nirman. 4. Magnitude of the Programme PMGSY is being implemented since 2000-01. It was estimated that about 1,72,772 habitations would require connectivity to be provided under the programme. Thereafter, based upon requests from the State Governments for reconciliation, coverage of left out habitations by some States that had proposed rectification to consider habitation as unit of connectivity (instead of Revenue Village taken earlier), accounting for habitations connected under other Schemes, deletion of non-feasible habitations, dropped out habitations, relaxation accorded by the Empowered Group of Officers and habitations connected under other Schemes, the revised number of total eligible unconnected habitations has become 1,58,891. As on 31st December, 2012, 12, project proposals for providing connectivity to 1,26,179 eligible habitations have been sanctioned. The total cost of sanctioned projects, including the projects for upgradation of roads under PMGSY is Rs.1,45,520 crore. Against this, Rs.1,02,658 crore has been released till 31st Dec. 12 including releases to the States, debt servicing of NABARD loans, administrative costs etc. As reported by the States, till 31st Dec. 12, a total of 3,66,789 km roads including upgradation have been constructed and All-weather connectivity has been provided to 89,382 eligible habitations (Annexure-VI(A). The Statement showing number of eligible unconnected habitations under PMGSY may be seen at Annexure-I. 5. Requirement of funds for PMGSY 5.1 As per the current price levels, the following is the requirement of funds for completion of works sanctioned and in progress: - 5.2 Value of proposal cleared as on -Rs. 1,18,949 crore 1st April 2011 Amount released in Programme - Rs. 84,731crore Fund upto March 2011 Funds required for completion of - Rs. 34,218crore works already sanctioned Assessment of funds required for works yet to be sanctioned on 1st April 2011 and due to new additions of habitations and relaxations under PMGSY is given below in Table. 3 S. No. Table (Rs. in crore- at 2010-11 prices) Activity (ies) Funds required Funds required for balance works 79,539 (ii) Funds required for works yet to be sanctioned on 1st April 2011 and due to new additions of habitations and relaxations Outstanding NABARD Loan (Principal) and interest as on 01-04-11 (iii) Left-out bridges on already sanctioned roads 8,000 (iv) 18,362 (vi) Impact of left out Habitations in Rajasthan, Bihar and Manipur due to Revision of their core network permitting to take habitations (as per guidelines) instead of revenue villages as units of connectivity Funds for New habitations of 250+ in 60 IAP districts a. For new connectivity of habitations having population of 250-499 persons in non-Sch V areas - Rs. 9,497 crore b. Upgradation of selected roads - Rs. 1,000 crore Impact of increase in length of bridges to 75m in IAP districts (vii) Impact due to snow fall/ landslides in Hill States 5,000 (viii) Administrative Expenditure including for States, Quality Monitoring etc. 1,000 (i) (v) 21,117 10,497 250 Funds required for the Proposed Relaxations for IAP districts, Special Category States, Schedule-V areas and Desert areas (ix) a) Impact of relaxation in the eligibility norm for the State of Assam to 5,650 provide connectivity (including bridges) to habitations of population 250 to 499 (2001 census) b) Funds required for additional length of bridges in Special Category States, Tribal (Schedule V areas) and States having Desert districts (as identified in the Desert Development Programme) (c) Funds required for providing connectivity to left-out habitations (as per 2001 census) and for upgradation of some selected roads in 60 IAP districts (d) Funds required for providing connectivity to eligible habitations having population of 100 to 249 persons (as per 2001 census) including bridges in 60 IAP districts 1,800 10,000 21,100 PMGSY-II (x) Funds required for launching of PMGSY-II from the first year of 12th Five Year Plan on sharing basis as under: - For Plain areas – 70:30 (Centre:State) - For Hill States, Desert Areas, Tribal (Schedule V areas) and LWE/ 60 IAP districts – 80:20 (Centre:State) For International Border Blocks in Hilly States – 90:10 (Centre:State) Funds needed 15,000 1,97,313 4 5.3 Net funds required for completion of balance PMGSY projects including projection of PMGSY-II – Funds required for completion of works already sanctioned as on 1-st Rs. 34,218 crore April 2011 funds required for works yet to be sanctioned on 1st April 2011 and Rs. 1,97,313 crore due to new additions of habitations and relaxations under PMGSY Total funds needed Funds available in year 2011-12 Rs. 2,31,531 Rs 20,000 crore Net fund required during 12th FYP (at 2010-11 prices) Rs.2,11,531 crore Say Rs. 2,12,000 crore 6. Bharat Nirman 6.1 Targets under Bharat Nirman (Rural Roads component) :- The President of India, in his address to Parliament on 25th February, 2005, announced a major business plan for rebuilding rural India called ‘Bharat Nirman’. The Finance Minister, in his Budget Speech of 28th February, 2005, identified Rural Roads as one of the six components of Bharat Nirman and has set a goal to provide connectivity to all villages with a population of 1000 persons and above (500 persons and above in the case of hilly or tribal areas) with an All-weather road by 2012. 6.2 Based on ground verification by States, 63,940 habitations were targeted (Core Network of Bihar and Rajasthan is under scrutiny so this figure may likely to be increased) to be connected under the programme. The physical target under the programme is as under:- a. New connectivity component:- Habitations to be connected: Road length to be constructed: b. Upgradation component: Road length to be upgraded/renewed: 6.3 - 63,940 nos. 1,89,987 km. - 1, 94,130 km. Overall Progress under Bharat Nirman (rural roads component) during the period 2005-12:- Overall Progress of habitation coverage and construction of road (both for new connectivity as well as upgradation) up to the end of Dec. 12 under Bharat Nirman is as under: 5 S.No Component 1. No. of habitations to be connected New connectivity (road length in kms.) Upgradation of throughroutes (road length in kms.) including renewal. 2. 3. Overall Target (2005-12) 63,940 Achievement upto Dec. 12 % achievement against target 47,622 74% 1,89,987 1,52,985 81% 1,94,130 2,41,883 125 % 47,622 habitations (74%) have been connected upto Dec. 2012, by constructing 1,52,985 km. rural roads. Projects for connecting 12,799 habitations (20%) are at different stages of completion. The details of achievements, State-wise, under Bharat Nirman (rural roads component) for the period 2005-12 have been given in Annexures II (A) to II (C). 6.4 Projected Time Frame for achieving the residual New connectivity targets:- Projected Time Frame for achieving the residual targets is indicated below:Projected Timeframe Target DPRs (Detailed Project Reports) cleared Habitations connected upto Dec.’ 12 Balance in progress Expected completion during 2012-13 Spillover to 2013-14 7. Financial Outlays and Outcome Budget 7.1 Allocation and Expenditure 63,940 60,421 47,622 12,799 4,000 15,851 The year wise allocation of funds and the expenditure is as under: Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Allocation (Rs. in crore) 2500.00 2500.00 2500.00 2325.00 2148.00 + 320.00* 3809.50 + 410.50* 3725.62 + 1500* Expenditure incurred (Rs. in crore) 6,529.93 + 798 3,077.45 4,100.39 7,304.27 Remarks Separate year wise information not available * Assistance ADB/WB. from 6 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (Supplementary) + 250 (RE) 3900.00 + 2600.00* + 4500.00** 5530.15 + 2250.00*+ 7500.00** 17840.00 (including NABARD loan) 22399.80*** 17789 + 2211* = 20000 10,618.69 **From RIDF Window of NABARD. 15,161.98 18,832.92 14,910.98 10,946.41 5,441.82 # # upto Dec.’2012 ***The allocation was Rs. 22000 crore, however, Rs. 399.80 crore received from internal savings and re-appropriation. 7.2 Outcome target and achievements Prior to 2005-06, no specific physical targets were laid down. From the year 2005-06 onwards, targets in terms of numbers of habitations to be connected and road length (in kms) to be completed have been specified in the Outcome Budget. Year-wise targets and achievements are given below:- Length (in Km.) Habitations (in nos.) 2005-06 Targets Achiev ements 17,454 22,891 7,895 Length (in Km.) Habitations (in nos.) Length (in Km.) Habitations (in nos.) 2006-07 Targets Achiev ements 27,250 30,710 10,801 2007-08 2008-09 Targets Achiev Targets Achieve ements ments 39,500 41,231 64,440 52,405 8,202 9,435 14,015 11,336 18,100 14,475 Targets 55,000 13,000 2009-10 Achievements 60,117 7,877 2010-11 Targets Achievements 34,090 45,109 4,000 7,584 2011-12 Targets Achievements 30,566 30,995 4,000 6,537 2012-13* Targets Achievements 30,000 16,287 4,000 4,968 * Figures upto Dec.’ 2012 State-wise detail of outcome target and achievements for the year 2012-13 has been given in Annexure V(D). 7 8. Raising of Additional Financial Resources 8.1 ADB and World Bank Funding Assistance from Asian Development Bank (ADB) ADB has been providing the assistance to PMGSY programme in the States of Assam, Chhattisgarh, Madhya Pradesh, Odisha, West Bengal, Chhattisgarh and Madhya Pradesh. Rural Roads Sector-I Project (RRSIP) has been completed in Madhya Pradesh and Chhattisgarh. Rural Roads Sector-II Investment Programme (RRSIIP) is being implemented in Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. Rural Connectivity Investment Program (RCIP) of US$ 800 M has been approved on 17th July 2012. The investment programme will finance the PMGSY in four tranches in the State of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. PFR-1 for Tranche I of Rural Connectivity Investment Programme has been filed on 15th May, 2012. (i ) Rural Roads Sector I Project (RRSIP) (Loan No. 2018-IND): ADB has approved the loan of US$ 400 million under Rural Road Sector I Project (RRSIP) to assist the implementation of the PMGSY projects in the State of Madhya Pradesh and Chhattisgarh. A total of 9,574.7 km of Allweather rural roads connecting 3,207 habitations was constructed. Project was successfully completed in June 2009. (ii) Rural Roads Sector II Investment Program Project 1 (Loan No. 2248-IND): ADB has approved the loan of US$ 180 million under Multi Tranche Financing Facility (MFF) to finance the sub projects in the State of Assam, Odisha and West Bengal. The total length of 2,507 km connecting 1,497 habitations was constructed under this project. The project was successfully completed in June, 2009. Project 2 (Loan No. 2414-IND): ADB has approved the loan of US$ 77.65 million for the Batch II Project in Odisha under Multi-Tranche Financing Facility (MFF). The project had provided the connectivity of 1,013 km in Odisha connecting 231 habitations. The loan was closed on 31st December, 2010. Project 3 (Loan No. 2445-IND): A loan of US$ 130 million under Multi-Tranche Financing Facility has been taken to finance the sub project of Batch II in Assam and West Bengal. The loan was made effective by ADB on 5th January 2009. The project will provide the connectivity to 985 km in Assam and 843 km in West Bengal. Thereby, this project will also provide the connectivity to 607 habitations in the State of Assam and 718 habitations in State of West Bengal. Loan will be closed on 30th June 2013. Project 4 (Loan No. 2535): A loan of US$ 185 million under Multi-Tranche Financing Facility has been taken to finance the sub projects of Batch III in Assam, Odisha and West Bengal. ADB has made effective this loan on 26th November 2009. This project will provide the connectivity of rural roads for 871 km in Assam, 1,287 km in Odisha and 660 km in West Bengal. Thereby, the project will connect 397 habitations in Assam and 517 habitations in Odisha and 704 habitations in West Bengal. The loan was closed on 31st December, 2012. 8 Project 5 (Loan No. 2651): A loan of US$ 222.22 million under Multi-Tranche Financing Facility has been taken to finance the sub projects of Batch IV in Odisha, Batch V and supplementary Batch V in Madhya Pradesh, Batch III (lot II) in West Bengal and Batch IV in Chhattisgarh. The loan has become effective on 29th October, 2010. This project will provide connectivity of rural roads for 325 km in Chhattisgarh, 2,535 km in Madhya Pradesh, 1,512 km in Odisha and 443 km in West Bengal. The project will thereby connect 428 habitations in Odisha, 895 habitations in Madhya Pradesh and 257 habitations in West Bengal. Loan will be closed on 30th June, 2014. The status of ADB assisted Rural Roads Sector II Investment Project is as under: Loan Data Loan No. 2445-IND Loan No. 2535-IND Loan No. 2651-IND ADB approval 26th September 2008 7th August 2009 6th July 2010 Date of Signing 10th November 2008 3rd September 2009 2nd August 2010 5th January 2009 26th November 2009 29th October 2010 Assam & West Bengal Assam, Odisha & West Bengal Chhattisgarh, Madhya Pradesh, Odisha & West Bengal US$ 130 million US$ 185 million US$ 222.22 million US$ 113.033 million US$ 184.775 million US$ 141.269 million 1325 1343 1582 Length of the proposed connectivity 1,828 Km 2,818 Km 4,815 Km Length completed upto March 12 1,489 Km 2,236 Km 2,318 Km Date of loan closing 30.06.2013 31.12.2012 30.06.2014 Loan effectiveness States financed Size of Loan Loan utilised upto Sept. 12 No. of habitations proposed to be connected (iii) Rural Connectivity Investment Program (RCIP): ADB loan of US$ 800 M for Rural Connectivity Investment Program to assist PMGSY in the States of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal is under negotiations. Indicative schedule for the first and the subsequent tranches is given below in Table: Financing ADB Government Total Tranche 1 (in US$ M) 252 85.15 337.15 Tranche 2 (in US$ M) 200 98.12 298.12 Tranche 3 (in US$ M) 150 96.09 246.09 Tranche 4 (in US$ M) 198.00 117.55 315.55 9 (iv) Rural Connectivity Investment Program (Supplementary): Proposed Rural Connectivity Investment Programme (supplementary) of US$ 500 M aims to construct or upgrade all-weather 7,000 km of Rural Roads connecting the unconnected eligible habitations and upgrading the already constructed roads to All-weather connectivity and taking 10% roads for research and innovative practices in rural road construction in the States of Assam, Bihar, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. World Bank assisted Projects: The World Bank is assisting construction and upgradation of road works under the scheme in four states with loan of $399.5 million (RRP-I). The details are as below: World Bank Assisted Projects Jharkhand, Rajasthan, Himachal Pradesh, Uttar States Pradesh Appraisal Process Start date April' 2002 Negotiation date August' 2004 Date of Loan Agreement October'2004 Closing Date 31st March, 2012 Loan Amount US$ 399.5 m (Rs. 1760 crore) Target upto March 2012 as per (PAD)* US$ 399.5 m Amount Disbursed US$ 399.5 m Loan Terms 10 yr. Moratorium + 35 year repayment. Interest rate 0% for $ 300m, 1.53% for $ 100m. * PAD - Project Appraisal Document World Bank reimburses @ 90% expenditure incurred on works and 80% of the expenditure incurred on consultancies. Details of Progress of World Bank assisted projects is as under:Project Sanctioned States Progress upto Dec.’ 12 Amount (Rs. in crore) Length (in km) Expenditure (Rs. in crore) Length (in km) Himachal Pradesh 253.89 1328.33 226.73(89%) 1188.32 (89%) Jharkhand 29.15 130.07 30.95 (106%) 125.56(97%) Rajasthan 1212.55 6517.53 1062.34 (88%) 6291.20 (96%) Uttar Pradesh 929.65 3036.46 723.22 (78%) 2347.50 (77%) Total: 2424.89 11012.39 2043.24 9952.58 10 (Figure in bracket indicates percentage to sanctioned cost or road length – Annexure V(a) Rural Road Project II (RRP-II) A loan of US$ 1.5 billion (Specific Investment Credit) has been approved by the Board of the th World Bank on 20 December 2010 and signed on 14th January, 2011. This Programme is based on programmatic approach to support the implementation of the PMGSY Rural Roads programme disbursed against results. Project Period is 5 years from 2011 upto 2016. The project has two components:– – Programme financing – US$ 1440 million • 7 States, Himachal Pradesh, Jharkhand, Meghalaya, Punjab, Rajasthan, Uttarakhand and Uttar Pradesh covered. • Total 8,323 habitations to be covered, 24,174 Km length to be built. Total cost US$ 1706 million. Institutional Strengthening – US$ 60 million will support a Technical Assistance program designed to strengthen the capacity of relevant agencies to implement the program. • R&D – US$ 11.9 million. • Independent Verification – US$ 6.7 million. • PMC – US$ 22.6 million • Equipment – US$ 7.8 million • Training the skill development US$ 11.00 million Brief description of the project is given below. # State 1 2 3 4 5 6 7 Himachal Pradesh Jharkhand Meghalaya Punjab Rajasthan Uttar Pradesh Uttarakhand Tentative Allocation US$ m 215 223 238 111 443 200 276 Total 1,706 Total Habitations Length in km 819 2,724 2,209 4,133 515 1,625 0 1,062 2,734 8,651 1,590 2,401 456 3,578 8,323 24,174 The disbursement under the programme linked to various indicators called DLIs. – DLI – I: (50% of actual expenditure) Habitation Connectivity (60%, 26300 baseline), FY 11 – 27600 (1300), FY 12 – 29400 (1800), FY 13 – 33600 (4200), FY 14 – 37700 (4100), FY 15 – 39500 (1800). 11 – DLI – II: (20% of actual expenditure) Programme Planning and Implementation. • Improved Planning: FY 11 – DPR Guidelines, FY 12 – Revised Operations Manual, FY 13 – GIS in 4 States, FY 14 – Revised Book of Specifications, FY 15 – 80% works fulfill DPR Guidelines. • Effective Procurement: FY 11 – Procurement and Contract Management Manual and Procurement Training, FY 12 – States implement contractor out reach programmes, FY 13 – 70% contract awarded in 45 days, FY 14 – 80% contracts awarded in 45 days, FY 15 – 90% contract awarded in 45 days. • Improved Quality: FY 11 – SQM Reports on Web, FY 12 – States implement 1st and 2nd Tier fully, FY 13 – Citizen Monitoring Programme on Pilot, FY 14 – 90% works rated Satisfactory, FY 15 – 95% works rated Satisfactory. • Effective OMMAS: FY 11 – Review of OMMAS by May, 2011, FY 12 – Format prescription for Management Reports on OMMAS, FY 13, 14 & 15– Management Reports on OMMAS. – DLI – III: (30% of actual expenditure) Effective Maintenance, FY 11 – Tracking of Maintenance Expenditure, FY 12 – States to issue road maintenance policy and guidelines, FY 13 – States to provide adequate funding, FY 14 – 60% of core roads in formal routine maintenance and 60% in periodic maintenance contract, FY 15 – 75% of core roads in formal routine maintenance and 70% in periodic maintenance contract. State-wise details of sanctions under RRP-II in Phase I till December, 2012 All in crore S No. 1. 2. 3. 4. 5. 6. 7. 8.2 State Himachal Pradesh Jharkhand Meghalaya Punjab Rajasthan Uttar Pradesh Uttarakhand Total: Entitlement DPR Cleared 975 992 1059 494 1971 1228 890 7591 230 651 95 490 1951 543 1919 5879 Works Awarded (up to Dec,2012) 100 137 84 421 832 18 370 1962 Expenditure ( up to Dec,2012) 52 39 7 108 323 3 47 579 Funding from NABARD:- (i) The requirement of funds for Bharat Nirman was estimated at Rs.48, 000 crore. However, the availability of funds was estimated as under:Cess Assistance from ADB/World Bank Loan from NABARD Rs. 16,000 crore. Rs. 9,000 crore Rs. 16,500 crore 12 Unfunded gap Rs. 6500 crore (ii) The matter was discussed in the National Rural Infrastructure Committee (NRIC) chaired by Hon’ble Prime Minister on 16.5.2005. The Planning Commission and the Finance Ministry were advised to locate the additional funds for the programme. The matter was again discussed in the second and third meeting of NRIC, held on 21.6.2005 and 5.10.2005 respectively when a suggestion was made that separate window on Bharat Nirman may be created in NABARD to fund the rural roads component of Bharat Nirman. Subsequently, the Cabinet in its meeting held 24.9.2006 decided as under. borrow funds from National Bank for Agriculture and Rural Development (NABARD) for achieving the rural roads targets of Bharat Nirman. allow National Rural Roads Development Agency to act as the agency for borrowing funds from the separate window under NABARD. amend the Central Road Fund Act, 2000 to enable borrowing and repayment of loan for development of rural roads and for this purpose to introduce in Parliament the Central Road Fund (Amendment) Bill 2006. (iii) A separate window was created under RIDF in NABARD with the allocation of Rs. 4,000 Crore during 2006-07 to augment funding for rural roads under ‘Bharat Nirman’. However, funds could not be drawn during 2006-07 from this window in the absence of enabling amendment to the Central Road Fund Act, 2000. This window continued during 2007-08 with an additional allocation of Rs. 4,500 crore. The Central Road Fund (Amendment) Act, 2007 (28 of 2007) was notified on 21.08.2007. Thereafter, a Tripartite Agreement for the loan of Rs. 16,000 crore was signed on 27-09-2007 between Ministry of Rural Development (MoRD), National Rural Roads Development Agency (NRRDA) and National Bank for Agriculture and Rural Development (NABARD). Subsequently addenda were issued for enhancing the loan amount first by Rs. 500 crore on 20.11.2009 and second by Rs. 2000 crore on 31.3.2010. Thus, the tripartite agreement with NABARD is for a total amount of Rs. 18,500 crore. Tripartite Agreement provides that: NRRDA shall make the payment of interest to NABARD on quarterly basis at the end of each quarter i.e. 31st March, 30th June, 30th September and 31st December every year. The first interest payment shall be made on the aforesaid dates occurring immediately after the loan not with standing that such period may be less than 3 months. The interest shall be paid by NRRDA on the first day of the succeeding English calendar month immediately succeeding the quarter. However, if the first day of the succeeding quarter is a Saturday/Sunday/Holiday, NRRDA shall pay the installment on the last working day of the same quarter (March, June, September and December, as the case may be). NRRDA shall repay the loan in 5 equal annual installments within 7 years from the date of each drawal. The first installment shall be paid on the first day of the succeeding English calendar month immediately on the expiry of 36 months form the date of drawal and each subsequent installment is to be paid at intervals of 12 months there from. However, if the first day of the succeeding English calendar month is a Saturday/ Sunday/ Holiday, NRRDA shall repay the installment on the last working day of the preceding month. NABARD had released Rs. 18,500 crore to NRRDA till 31-03-2010. Repayment of loan has commenced from the year 2010-11. Rs. 5,924.36 crore and Rs. 4,110.55 crore have been paid towards principal amount of loan and as interest to NABARD respectively upto 30 th September, 2012. The year-wise details of loan drawn from NABARD, interest and principal amount paid to NABARD is as under:-: 13 Year 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (upto 31st Dec. 2012) Loan drawn from NABARD 4,500 7,500 6,500 Nil Nil Nil Interest Paid 59,79 410.62 879.85 1,192.12 1,114.14 643.19 (Rs. in crore) Principal amount repaid to NABARD Nil Nil Nil 900 2,400 3,700 Balance of Rs. 11,500 crore is outstanding as on 1st Jan. 2013 towards repayment of the principal amount to NABARD upto 31st March, 2017 as per details given below:(Rs. in crore) Principal Interest amount reTotal Liability Year Payable payable to (2+3) NABARD 1 2 3 4 2012-13 (payable in the 184.32 184.32 month of March 2013) 2013-14 747.50 3,700.00 4,447.50 2014-15 460.21 3,700.00 4,160.21 2015-16 230.03 2,800.00 3,030.03 2016-17 67.94 1,300.00 1,367.94 Total 1,690.00 11,500.00 13,190.00 9. Physical and financial target during 11th Plan During the 11th Five Year Plan, it was proposed to provide connectivity to 86,904 habitations with new connectivity of 1,85,244 km road length and upgradation of 77,276 km existing rural roads. For this purpose, an outlay of Rs.81,801 crore was proposed. However¸ the Planning Commission indicated an outlay of Rs.38,179 crore (GBS) at constant price and Rs.43,251 crore at current price as the tentative outlay under 11th Five Year Plan for PMGSY. In addition, Rs.16,500 crore would be made available from the RIDF Window of NABARD. Thus, the total funds available during the 11th Five Year Plan would be Rs.59,751 crore at current prices as against the projected requirement of Rs.81,801 crore. After repayment of principal amount towards loan taken/being taken from NABARD, payment of interest for the loan, incurring expenditure for capacity building, administrative expenses etc., the net funds available would be Rs.50,310 crore for PMGSY projects as per following details:14 Year-wise availability of funds: (Rs. in crore) Year 2007-08 2008-09 2009-10 2010-11 2011-12 Total Budget i/c EAP 6500 9000 10000 9000 8751 43251 Loan from NABARD 4500 6000 6000 16500 Interest Payable Principal payable Net available 130 690 1080 1015 880 3795 900 2100 3000 10870 14310 14920 7085 5771 52956 Net excluding admn. expenses 10330 13600 14170 6730 5480 50310 Based upon the availability of funds, the physical targets would be as under:Year 2007-08 2008-09 2009-10 2010-11 2011-12 Total Net available (Rs. in crore 10330 13600 14170 6730 5480 50310 New Connectivity (Km) 26000 36720 52722 11545 2720 129707 Upgradation (km) 13500 29720 33620 12900 11000 100740 Habitation 12100 18100 22771 5000 2667 60638 Thus, the estimated targets for the 11th Five Year Plan would be as under:Period Targets up to the year 2009 as per Bharat Nirman Target for 2010-12 Overall for the 11th Plan No. of Habitation to be covered Length for new connectivity (Kms) Length (km) for renewal (to be borne by the State Government) 62720 Length for upgradation (Kms) (funded under PMGSY) 43220 30200 30438 60638 66987 129707 57520 100740 25759 76986 51227 Physical and financial target for 2008-09 Allocation for 2008-09 under PMGSY was Rs. 14,530 crore which included external aid (from World Bank and Asian Development Bank) of Rs. 3000 crore and Rs. 7000 crore to be drawn as loan from Rural Infrastructure Development Fund (RIDF) window of National Bank for Agriculture and Rural Development (NABARD). The budgetary outlay for the year 2008-09 was subsequently revised. The revised allocation for the year 2008-09 under PMGSY was Rs. 15 15,280.15 crore which included Rs. 4046.25 crore from cess, external budgetary support of Rs.2,250 crore, budgetary support of Rs. 1483.90 crore and Rs. 7,500 crore from the RIDF window of NABARD. It was targeted to provide all weather connectivity to 18100 habitations and to complete 64440 km of rural roads (New Connectivity-36720 km and Upgradation–27720 km) under PMGSY. Physical and financial target for 2009-10 Allocation for the year 2009-10 under PMGSY is Rs. 14,000 crore which includes external aid (from World Bank and Asian Development Bank) of Rs. 1350 crore and Rs. 4000 crore to be drawn as loan from Rural Infrastructure Development Fund (RIDF) window of National Bank for Agriculture and Rural Development (NABARD). The budgetary outlay for the year 2009-10 was subsequently revised and Rs. 6500 crore was available from the RIDF window of NABARD. During 2009-10, it is proposed to provide all weather road connectivity to 13,000 habitations under Bharat Nirman with 24,000 km. of the new connectivity road length. In addition, 16,000 km. of existing rural roads is proposed to be upgraded for improving farm to market connectivity. Physical and financial target for 2010-11 Allocation for the year 2010-11 under PMGSY is Rs. 22,000 crore which includes external aid (from World Bank and Asian Development Bank) of Rs. 890 crore and re-payment of Interest to NABARD, it is proposed to provide all weather road connectivity to 3,000 habitations under Bharat Nirman with 14,320 km. of the new connectivity road length. In addition, 12,500 km. of existing rural roads is proposed to be upgraded for improving farm to market connectivity. Physical and financial target for 2011-12 Allocation for the year 2011-12 under PMGSY is Rs. 20,000 crore which includes external aid (from World Bank and Asian Development Bank) of Rs. 2211 crore and re-payment of Interest to NABARD, it is proposed to provide all weather road connectivity to 3,000 habitations under Bharat Nirman with 12,000 km. of the new connectivity road length. In addition, 12,750 km. of existing rural roads is proposed to be upgraded for improving farm to market connectivity. The year wise release to States and expenditure incurred since inception has been given in Annexure III (A) and III (B). The status of proposals pertaining to districts sharing international borders and left wing extremist affected districts is at Annexure – IV. 10. Clearance of Project Proposals 10.1 Phase-wise Progress; So far, upto Dec‘12, project proposals for 1,24,105 road works including bridges measuring 4,81,535 kms. and valued at Rs. 1,46,828 crore have been cleared by this Ministry. The phase wise details have been given in Annexure V (A) to V (C) and Statewise state Profile are as per Annexure V (1-28). The year-wise physical and financial progress may be seen Annexure VI (A) & VI (B). Statewise Opening balance of funds, Releases, Expenditure & Closing Balance during 11th Plan may be seen Annexure VI (C) and Statewise Opening balance of Programme funds, Releases, Expenditure & Closing Balance during 2012-13 upto Dec’2 may be seen Annexure VI (D) 10.2 Projects cleared in 2009-10, 2010-11, 2011-12 and 2012-13 (Till Dec. 2012): For achieving the Bharat Nirman goals, level of utilisation of funds needs to be stepped up 4-5 times. Recognising the fact that expenditure on projects can also be increased by sanctioning 16 more projects, projects valued at Rs. 21688.62 crore, proposed by 23 States, to cover 71342.82 Km of road length were cleared during the year 2007-08. During the year 2008-09, the Ministry has cleared proposals of 25 States and one UT to cover a length of 90280.81 km at an estimated cost of Rs. 36806.55 crore. The Ministry, vide DO No. H-12013/1/2009-RC dated 12th June, 2009 advised the States to submit project proposals falling only in the following four categories. Residual new connectivity coverage envisaged under Phase-I of Bharat Nirman Projects to be taken up with the assistance of World Bank and Asian Development Bank New habitation connectivity in the 33 identified LWE affected districts Special road connectivity packages announced for the border areas. Proposals falling and the above four categories were considered and cleared by the Ministry. During 2009-10, project proposals for Rs. 6194.47 crore covering a road length of 18561.34 km. were cleared. During the year 2010-11, the Ministry has cleared proposals of 13 States to cover a length of 15207.88 km at an estimated cost of Rs. 6768.33 crore. The State-wise details are at Annexure VII(A). Details of Pre-Empowered Committee meeting are at Annexure VII (B) and details of Empowered Committee meeting at Annexure VII (C) & (D). 10.3 Time period allowed for completion of projects:- PMGSY is being implemented in accordance with the programme guidelines. In plain areas, the projects are to be completed within a period of 9 working months from the date of issue of the Work order. In case the period for execution is likely to be adversely affected by monsoon or other seasonal factors, the time period for execution is extended up to 12 calendar months. Where a package comprises more than one roadwork, the total time given for completion of the package is 12 months. In respect of hilly States where the work is executed in two stages, this time period will apply separately in respect of each stage. Time period for completion of projects (Stage I and CD works) under PMGSY has recently been modified. The time limit up to 18 calendar months has been permitted for completion of Stage-I works of hill roads (in hill States). Similarly, time period of 18-24 months has been permitted for completion of cross drainage works exceeding 25 meter length, depending on site conditions. 10.4 Recourse against delay Since time is the essence of the contract, action is required to be taken against the contractor in cases of delay, as per the contract provisions. Standard bidding document provides for two courses of action against delay i.e. (i) Levying of liquidated damages if specified milestones are not achieved within the given time frame and (ii) In case of persistent delay, the contract is liable to be terminated. 10.5 Reasons for delay in implementation:- Some of the reasons for delay in implementation of the PMGSY projects are: Non-availability of qualified engineers Administrative delay including late award of projects Inadequate capacity of the PIUs due to the smaller work load handled by them earlier. 17 At Nodal department or the SRRDA’s level also lack of capacity by way of man power is a constraint. A very long rainy reason. Most of the construction materials such as cement, steel, bitumen, machinery, personnel to handle machinery etc. are not locally available. Lack of contracting capacity as well as non availability of basic road making equipment such as road roller, crushing plants, dumper/dipper and trucks. Non availability of land or the land falling under forest areas. 10.6 Measures taken for increasing contracting capacity An expert Committee was constituted to review the Standard Bidding Document. On the basis of the recommendations of the Expert Committee, the following amendments have been made in the Standard Bidding Document: Standard Bidding Document amended in September 2006 & package sizes from Rs.50 lakh Rs. 2 crore & Rs. 2 crore – Rs.10 crore allowed with differential qualification criteria to enable more contractors to participate. Flexibility given to States in September 2006 to float packages above Rs.10 crore to induce participation by big contractors. Joint ventures between big and small contractors permitted. For building capacity of the small and medium contractors, an interaction between contractors, equipment manufactures, equipment leasing firms and financial institutions was held in Madhya Pradesh and Orissa. One more interaction is planned in West Bengal. Performance incentive for timely completion introduced in September 2006 through higher weightage in qualification assessment in future contracts. 10.7 Recent amendment in the Standard Bidding Document:- As per the existing provision, performance security of 5% is obtained from contractors at the time of execution of the agreement and another 5% is deducted from their running bills The Standard Bidding Document has been amended and upfront performance security amount to be obtained from the contractor has been reduced to 2.5%. The balance amount of 7.5% would be deducted from the running bills of the contractor. The revision is expected to enhance the pool of eligible contractors and thereby augment contracting capacity in the States. 11. Review of Programme Implementation Regional Review Meetings and Workshops are regularly conducted to sensitize the Implementing Agencies in the States on how to implement PMGSY in a better way, with focus on project formulation and quality monitoring. In these meetings, State level implementing agencies, State Technical Agencies, Principal Technical Agencies and National Quality Monitors of all the States are covered. The main issues covered in the Regional Review Meetings are – Planning & Core Network, Capacity development, Progress of works, Quality management, Maintenance management, On-line Management, Monitoring and Accounting System (OMMAS), Training, Works accounting etc. Details of Review Meetings held during Financial Year 2010-11, 2011-12 and 2012-13 is as below:Financial Year – 2010-11 S.No. Date Venue State(s) covered 18 01 22 July, 10 Bhubaneswar 02 03 23 July, 10 12August, 10 Bhubneshwar Pune 04 05 13 August,10 31 August.10 Pune Dehradun 06 10 September.10 Delhi 07 08 09 10 11 12 21 October, 10 22 October, 10 12 November, 10 8 February, 11 10 February. 11 24 February.11 Tawang Tawang Dehradun Shillong Kaziranga |Jammu Financial Year – 2011-12 S.No. Date 01 21 June, 11 02 23 June, 11 Trivandrum Lucknow Patna Bhubneswar Odisha and West Bengal 07 5 July, 11 11 October, 11 26 - 27 October, 11 30 December, 11 13 January, 12 State(s) covered Uttarakhand Himachal Pradesh, Haryana and Punjab Kerala, Karnataka and Tamil Nadu Uttar Pradesh Bihar and Jharkhand Guwahati 08 16 January, 12 Shillong 09 10 11 12 19 January, 12 24 January, 12 10 February, 12 2nd March, 12 Bhopal Hyderabad Jaipur Srinagar Assam, Arunachal Pradesh, Nagaland and Sikkim Meghalaya, Manipur, Mizoram and Tripura Madhya Pradesh and Chhattisgarh Andhra Pradesh and Maharashtra Rajasthan and Gujarat Jammu & Kashmir 03 04 05 06 Venue Mussoorie Shimla Bihar, Jharkhand, West Bengal, Odisha and Chhattisgarh Odisha PIU review Maharashtra, Andhra Pradesh, Kerala, Karnataka, Tamil Nadu and Gujarat Maharashtra PIU review Uttarakhand, Himachal Pradesh and Jammu Kashmir Madhya Pradesh, Rajasthan, Punjab, Haryana and Uttar Pradesh All NE States Arunachal Pradesh PIU Review Uttarakhand Meghalaya PIU review All NE States J&K, Himachal Pradesh, Uttarakhand, Punjab, Haryana and Rajasthan PIU-wise review in the States of Assam, Chhattisgarh, Maharashtra, Orissa, Uttarakhand and West Bengal was also carried out. Schedule to hold the Regional Review Meetings during 2012-13 For the period April 2012 – Oct. 2012 Region Eastern Date Apr 10-11, 2012 Location Bhubaneswar States covered Odisha, West Jharkhand. Northern May 22-23, 2012 Shimla J&K, Punjab, Haryana, Himachal Pradesh, Uttarakhand, Uttar Pradesh. Bengal, Bihar, 19 Southern Jul 10-11, 2012 Bengaluru Central Aug 02-03, 2012 Bhopal Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Goa. Madhya Pradesh, Chhattisgarh Western Sep 13-14, 2012 Jaipur Rajasthan, Gujarat, Maharashtra North East Oct 10-11, 2012 Guwahati All North Eastern States For the period Nov. 2012- Feb. 2013 S.No. 01 02 03 04 05 06 11.2 Name of States covered J&K, Punjab, Haryana, Himachal Pradesh, Uttarakhand, Uttar Pradesh Rajasthan, Gujarat, Maharashtra Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Goa Odisha, West Bengal, Bihar, Jharkhand Madhya Pradesh, Chhattisgarh All North Eastern States Date of Meeting Venue 23-24 Nov. 12 Chandigarh 26-27 Dec. 12 Pune 3-4 Jan. 13 Bengaluru 29-30 Jan. 13 Kolkata 14 Feb. 13 8-9 Mar. 13 Raipur Imphal Review of Focus States: Keeping in view the time frame of Bharat Nirman and slow pace of achievement of set targets by some major States, it was decided to closely monitor this component. In this context, Review Meetings for stepping up the pace of implementation of Bharat Nirman were carried out in Focus States viz. Assam, Bihar, Jharkhand, Madhya Pradesh, Orissa and West Bengal. Review meetings with PIUs and State officials were carried out by the Directors of NRRDA/Ministry and the progress and status of implementation of the Bharat Nirman component was reviewed in the above States. 12. Amendment in PMGSY Programme Guidelines 12.1 Consolidated Guidelines of 1st Nov. 2004 Government had last issued the Guidelines of the Pradhan Mantri Gram Sadak Yojana (PMGSY) on 7th January, 2003. As a result of close interaction with the State Governments, including Regional Reviews with the State Nodal Departments, Empowered Committee Meetings, and Reviews at the Minister’s level, it was felt necessary to further clarify some issues in the Guidelines relating to methodology of selecting roads, implementation through dedicated PIUs, quality assurance and execution of works. Consequently, supplementary guidelines/clarifications were issued on 5.3.04, 30.4.04, 5.7.04, 6.7.04, 16.7.04 and 25.8.04. All these clarifications and details have been consolidated along with the decision to allow upgradation of associated through Routes along with New Constructions, and the consolidated Guidelines have been circulated to States on 1st Nov. 2004. 12.2 Amendment to Para 3.4 of the guidelines:20 Para 3.4 of the PMGSY Programme Guidelines has been amended by the Ministry vide letter No. P-17023/38/2005-RC dated 29.02.2008. The said Para stands substituted as under:“Para 2.1 above refers to Population size of Habitations. The population, as recorded in the Census 2001, shall be the basis for determining the population size of the habitation. The population of all Habitations within a radius of 500 metres (1.5 km of path distance in case of Hills) may be clubbed together for the purpose of determining the population size. In the blocks bordering international boundary in the hill States (as identified by the Ministry of Home Affairs), however, all habitations within a path distance of 10 km may be treated as cluster for this purpose. This cluster approach would enable provision of connectivity to a larger number of Habitations, particularly in the Hill/mountainous areas.” 12.3 Guidelines/ Norms for Pradhan Mantri Gram Sadak Yojana (PMGSY) – Implementation in 82 Integrated Action Plan (IAP) Districts identified by Planning Commission. (i) All habitations in Integrated Action Plan (IAP) districts, whether in Schedule V areas or not, with a population of 250 and above (in 2001 Census) will be eligible for coverage under PMGSY. (ii) In Integrated Action Plan (IAP) districts, cost of bridges upto 75 meters under PMGSY will be borne by the Government of India as against 50 meters for other areas. For longer bridges, pro rata costs beyond 75 meters and changes, if any, would be borne by the State Government. Cost of causeways, however, irrespective of their length, will be fully borne by the Government of India. (iii)In case of LWE/ IAP districts, the minimum tender package amount is reduced to Rs. 50 lakhs. 12.4 Amendment in para 8.5 of the Programme Guidelines for Pradhan Mantri Gram Sadak Yojana Vide Ministry’s letter no. P-12015/8/201-RC (pt) dated 17.12.2008, the existing para 8.5 (v) of the Programme Guidelines has been substituted as under: 8.5 (v): “Rural Roads constructed under PMGSY must have proper embankment and drainage. Adequate number and type of Cross Drainage (CD) works, including causeways, where appropriate, must be provided based on site requirements ascertained through necessary investigations. Minor bridges (of single lane specifications only) may be provided where necessary. In case the length of an individual bridge exceeds 15m, a separate DPR will be prepared after site inspection jointly by the Superintending Engineer and the State Technical Agency. In case the length exceeds 25m, the project will be separately executed by the engineering division of the State Government having jurisdiction and the pro rata costs beyond 50m and agency charges, if any, will be borne by the State Government. Cost of causeways, however, irrespective of their length, will be fully borne by the Government of India. Vide letter No. P-17025/39/2010-RC dated 7-10-2010 the existing para 8.5 (v) of the Programme Guidelines has been substituted as under: In LWE districts (as identified by the Ministry of Home Affairs, Government of India), further amending para 8.5 of program guidelines amended on 17th December, 2008, cost of bridges up to 75m under PMGSY will be borne by the Government of India. For long span bridges, pro rata costs beyond 50m and agency charges, if any, will be borne by the State Government. Cost 21 of causeways, however, irrespective of their length, will be fully borne by the Government of India. 12.5 Amendment in para 11.5 of the Programme Guidelines for Pradhan Mantri Gram Sadak Yojana With the use of annual State Schedule of Rates it is expected that on average the tendered value would approximate the estimated value. All costs due to time over run, arbitration / judicial award shall be borne by the State Government. In case the value of tenders received is above the estimate that has been cleared by the Ministry, the difference (tender premium) pooled for the entire State for works cleared in a phase / batch will be borne by the State Government. Corresponding data changes in OMMAS should be endorsed by the SRRDA. In case there is material change in the scope of work or quantities, prior approval of NRRDA shall be obtained and difference absorbed in the District level surplus failing which net savings at State level will be used for the purpose. Data change in OMMS in such cases would be made with NRRDA authorisation. 12.6 Amendment to Para 18.4 of the PMGSY - Regulation of the Programme, Administrative and Maintenance expenditure – sub-para “(ix) in addition to the existing system of bank authorization, State Rural road Development Agency (SRRDA) may adopt an alternative system in which each PIU will prepare an authorization statement on the basis of bills passed by it every fortnight and send to the SRRDA. The authorization statement shall contain the details of the payment namely name of work and package number, name of authorized payee and his bank account number, sanctioned amount of the project, expenditure on the project upto previous fortnight and amount payable to him during the current fortnight for each package. Based on the authorization statement, the SRRDA shall issue an authority letter/ online payment instructions to the bank to credit the amounts in the accounts of the payees mentioned in the authorization statement under intimation to the PIU for making necessary entries in the Cash Book”. 12.7 Addition to Para 19.3 of the PMGSY Programme guidelines 2004 regarding submission of documents for release of funds to the SRRDAs. 13. Executing Machinery States have been advised to make the following institutional arrangements: (i) A State Rural Roads Development Agency (SRRDA) or similar body with distinct legal status, to receive PMGSY funds and act as nodal point for rural road sector policy and management. (ii) Executional arrangements overseen at State Level by officers of the SRRDA including State Quality Coordinator (SQC), Financial Controller, Empowered Officer, IT Nodal Officer etc. (iii) Programme Implementation Units (PIUs) at Division/District Level for managing the programme, accountable to the SRRDA. (iv) Arrangements for efficient management, including :Online Management, Monitoring and Accounting System (OMMAS) 3 tier quality control 22 Transparent tendering using Standard Bidding Document (v) Separate Bank Accounts for ‘Programme’, ‘Administrative’ and ‘Maintenance’ funds, centrally managed by the Agency and operated by the PIUs. (vi) Each State Government shall set up a State-level Standing Committee (headed by the chief Secretary or Additional chief Secretary) including all the main stakeholders of the programme viz; Secretaries of the Departments of Rural Developments, Panchayats, PWD, Forests, Finance, Revenue and Transport. The State Technical Agencies and State Informatics Officer (NIC) may also be invited to participate. The Committee shall vet the Core Network, the CNCPL and CUPL and shall clear the annual project proposals. The Committee shall also (a) (b) (c) (d) (e) monitor progress and quality control. resolve issues relating to land availability and forest/environment clearance. oversee maintenance funding arrangements for the Core Network. review capacity at SRRDA and PIU levels including financial management and on-line monitoring; and ensure convergence of development programmes including transport facilities on the constructed roads. 14. Special interventions for States where State implementation capacity is inadequate (a) Bihar: - Tie-up with Central Executing Agencies The Government of Bihar intimated the Ministry of Rural Development the consent on 28th June 2004 vide State Government’s Resolution that it would like to engage, on its behalf, Central Agencies for implementation of PMGSY projects in the State. Accordingly, Tripartite Agreements were executed with Central PSUs - NHPC, NBCC, NPCC and IRCON –, the State Government and the Ministry on 31st August, 2004 for execution of PMGSY projects in Bihar. 33 of the 37 districts of the State (Araria included in Purnea) have been assigned to these Agencies. The remaining 4 districts have been assigned to CPWD. These Agencies have mobilised their organisational resources and have commenced the implementation process. (b) North East/Hill States: - Tie-up with BRO & NBCC The issue of slow progress of PMGSY in a few States figured in the Consultative Committee Meeting on 10.4.2003. Visits of a Team of National Quality Monitors (NQMs) also indicated that there were serious problems in North Eastern States including lack of security, inadequate technical expertise, organisational deficiencies etc. and it was decided to explore whether, with the concurrence of the State Governments concerned, outside Technical Agencies could be inducted to impart the requisite professionalism to the execution of the Programme. After prolonged negotiations, tripartite agreement was signed by M/s. NBCC Ltd., Government of Tripura and Ministry of Rural Development by which M/s. NBCC Ltd. will execute PMGSY work in West Tripura and South Tripura. Similar agreement has also been signed with M/s Hindustan Steelworks Construction Limited for implementation of PMGSY works in North Tripura and Dhalai districts of Tripura. 23 (c ) Jharkhand The Principal Secretary, Rural Development Department, Jharkhand vide letter dated 20th June, 2007, informed that the Government of Jharkhand has given their consent for execution of PMGSY works through three Central Agencies, viz., M/s. National Buildings Construction Corporation Ltd. (NBCC), M/s. National Projects Construction Corporation Ltd (NPCC) and M/s. Hindustan Steel Works Construction Ltd (HSCL). Tripartite Agreements have since been signed between the State Government of Jharkhand, the Executing Agency and the Ministry of Rural Development. The details are given below:Tripartite Agreement with M/s. NBCC Ltd. Date of signing the agreement 5.12.2007 M/s. NPCC Ltd. 11.12.2007 M/s. HSC Ltd. 20.12.2007 (d) Districts where the agency will implement the programme Gumla, Lohardaga, and Garhwa districts. East Singhbhum, West Singhbhum and Latehar districts. Bokaro, Hazaribagh, Ramgarh, Chatra, Dhanbad, Koderma, Giridih and Palamu districts. Uttarakhand In order to overcome the capacity constraints in the State, the State Government has been advised in June 2005 that they may engage Project Implementation Consultants by outsourcing the tasks to assist PIUs. The State Government has also been advised in December 2005 that they may chalk out a detailed work plan, also indicating any special efforts required for achieving the Bharat Nirman goals. The Ministry has conveyed its willingness to consider all such options and extend all possible support to the State Government, upon receipt of a detailed proposal from the State. 15 Measures taken to ensure quality and transparency 15.1 On-line Management, Monitoring and Accounting System (OMMAS) In order to effectively monitor the entire Programme and bring about greater efficiency, accountability and transparency in implementation, a modern web based On-line Management, Monitoring and Accounting System (OMMAS) has been set up for the PMGSY. The main Application Software Modules include Rural Road Plan & Core Network, Proposals, Tendering & Contracting, Execution (Physical and Financial Progress), Quality Monitoring, Funds Flow and Receipt & Payment Accounts (work accounts). One feature that sets OMMAS apart from other software is its total transparency. One can start with national level abstract outputs and drill one’s way through the State, District and Block level abstraction to the basic elements-the data building blocks, which are ‘roads’, ‘habitations’ and ‘Rupees’. The web site is www.omms.nic.in. With the stablisation of the Receipts & Payments Module of OMMAS, manual compilation of Accounts is 24 being dispensed with by State Rural Roads Development Agencies (SRRDAs). e-Payment, eProcurement and on-line processing of funds release proposals from SRRDAs to MoRD have been added to it. Reports are also available in Hindi, Oriya, Gujarati and Tamil. To facilitate decision making, a graphical Decision Support System ( DSS) has been added. The website has a menu bar where “Feedback” appears prominently. The Feedback Module has three sections viz. Comment, Complaint and Query. This Module is accessible by all the citizens. Any complaint about the Programme can be entered through the Complaint Section of the Modules. Up-to-date data entry into the different modules of OMMAS is a prerequisite for efficient on-line management and monitoring of the Programme. To facilitate SRRDAs in knowing the data entry gaps on their respective part and other data entry levels, a new module – ‘ Online Data Entry Status ‘ has been added to OMMAS. The module provides online status of data entry gaps module wise across all the States and State wise on the URLhttp://omms.nic.in/aspnet/citizens/dg/08datagaps/DataGapsType.aspx. A Central Website has also been developed, which provides details of PMGSY Scheme, Guidelines, agencies involved, role and responsibilities, etc. and can be accessed at www.pmgsy.nic.in. 15.2 Standard Bidding Document A Standard Bidding Document has been developed for the Programme after the study of good procurement systems and best national and international practices. The work of development of Standard Bidding Document was given to the experts of the field. The procurement process and Standard Bidding Documents of various States, MoRTH, World Bank and ADB etc. were studied and the development of draft documents was completed. The draft was subjected to the process of thorough review and consultation by experts and the State Governments. The document has been prescribed for use by the Executing Agencies of the State Governments with effect from 2003-04. The Standard Bidding Document has the following main provisions:(i) The tender will be invited for construction as well as maintenance of the road work for five years. (ii) The technical qualification of the contractor in terms of the bidding capacity, the experience of civil engineering works and in relevant field, possession of requisite machinery and equipments and financial capacity etc. will be evaluated before opening of the financial offer. (iii) The responsibility of establishment of Quality Control laboratory and mandatory testing will be of the contractor and the contractor will be required to employ requisite engineering and technical staff. (iv) The funds for the construction will be provided through the Pradhan Mantri Gram Sadak Yojana and the funds for maintenance of the road work for five years will be provided by the State Governments. Based on the experiences of the States by using the document and feedback from other stakeholders, 9 amendments have been made in SBD. 25 15.3 e-Procurement under PMGSY As per the PMGSY Guidelines, a well established procedure for tendering through competition is required to be followed for selection of agencies to execute the projects sanctioned under the Scheme. Keeping in view the comparative advantage of e-Tendering, the Ministry of Rural Development had decided for eTendering w.e.f April, 2009 and presently all States are procuring the works under PMGSY through e-Tendering. Details of e-Procurement made by the States are enclosed as Annexure-VIII. 15.4 Quality Assurance Mechanism under Pradhan Mantri Gram Sadak Yojana PMGSY Guidelines emphasize upon quality centered implementation strategies and recognize quality as essence of the Programme. To bring execution of the Programme to the desired high quality standards, a three tier quality management mechanism has been institutionalized under PMGSY. The first tier of this mechanism is in-house quality control at Programme Implementation Unit (PIU) level. Objective of this tier is process control through mandatory tests on material and workmanship at field laboratory. A Quality Assurance Handbook (in 4 volumes) has been developed and provided to field functionaries to facilitate better understanding of the quality control requirements, equipment and testing procedures, management systems and also to rationalize the frequency tests. The concept of stage passing through prescription of testing by various levels of field functionaries has also been introduced in order to ensure clear accountability. Establishment of field laboratory has been linked with first payment. The second tier is a structured independent quality monitoring at the State level in which provision of regular inspection of works has been envisaged for product control. In this tier, every work is to be inspected at three stages, i.e. initial stage, middle stage and final stage of construction. In order to have uniform and structured inspections at the second tier, Technical Guidelines have been prescribed to the States in August, 2010. These guidelines contain detailed instructions for inspections and frequency of tests to be carried out. Under these guidelines, the State Quality Monitors (SQMs) are also required to upload abstracts of inspections and 10 digital photographs of each inspection on OMMAS. In view of limited availability of monitors in the States, a standard document for outsourcing of State Quality monitoring has also been prescribed. The statement showing quality grading of works inspected by SQMs in various States from November 2010 to December 2012 is at Annexure IX (A)1 - Annexure IX (A)3. Under the third tier, independent National Quality Monitors (NQMs) are deployed by NRRDA for inspection of road works at random not only to monitor quality but also to provide guidance of senior professionals to the field functionaries. The National Quality Monitors are senior engineers retired from the State Governments or Government of India organizations, empanelled on the basis of the criteria fixed by NRRDA. The NQMs are required to inspect the works and record observations as per the prescribed guidelines. The guidelines for NQM inspections have been made objective and based on defined methods of observation including clarity on actionable points. Guidelines for photographic recording of inspections by NQMs have also been prescribed. To ensure effective and uniform reporting of the quality issues, orientation programmes are organized for NQMs in coordination with the Indian Academy of Highway Engineers (IAHE). 26 The observations of NQMs are sent for action to the State Governments and Action Taken Reports (ATRs) are monitored at NRRDA. In order to bring more transparency in the process, States have been advised to widely publicize the NQM inspections. An independent Selection Committee comprising Secretary General (IRC), Director (CRRI), one subject matter specialist nominated by IRC and 2 members of STAs/PTAs considers the CVs of fresh candidates and make recommendations for their empanelment as National Quality Monitors (NQMs). The Executive Committee of NRRDA approves the empanelment of NQMs. The performance evaluation of the existing NQMs is also carried out by an independent Performance Evaluation Committee comprising officers from STAs/PTAs. The proceedings of the independent Performance Evaluation Committee are placed before the Selection Committee for its recommendations. A year wise statement showing quality grading of works inspected in various States from January, 2009 to December, 2012 is at Annexure IX (B)1 - Annexure IX (B)4 . A statement showing Abstract of NQM/SQM inspection w.r.t. ongoing/completed works in various States from January 2011 to December 2012 is at Annexure IX (C) & Annexure IX (D). 15.5 Citizen information boards Citizen information boards are displayed in local language at prominent locations in the benefited habitations indicating the volume of materials used in each layer of the pavement. 15.6 Inspection of PMGSY works by public representatives State Governments have been advised to arrange joint inspection of ongoing as well as completed works under PMGSY by Hon’ble MPs, Hon’ble MLAs and functionaries of Panchayati Raj Institutions. The arrangements of joint inspection are as under: The Superintending Engineer concerned of the zone/region will request Hon’ble MP and Zilla Pramukh representing that zone/region once in six months to select any PMGSY project(s) for joint inspection. The schedule of joint inspection will be fixed as per the convenience of Hon’ble MP/Zilla Pramukh. The Executive Engineer in-charge of a division will request Hon’ble MLA/Chairperson of the Intermediate Panchayat concerned once in three months for joint inspection of any PMGSY project(s) as per their choice and according to their convenience. Similarly, the Assistant Engineer in charge of the sub-division will request the concerned Sarpanch of the Gram Panchayat once in two months to select any PMGSY project(s) for joint inspection. Joint inspection of the project(s) may be arranged as per their convenience. 16. Sound Technical Base for PMGSY The Rural Roads Manual has been approved and printed by the Indian Roads Congress (IRC) as a Special Publication (IRC:SP-20:2002). This Manual provides a firm technical base for the road works that are being taken up under the PMGSY. 27 In order to streamline the process of estimation and to standardise contracts, a separate Book of Specification, Procurement & Contract Management Manual and a Standard Data Book have been published in the IRC. 17. Principal & State Technical Agencies The Ministry have identified 60 State Technical Agencies (STAs), which are National Institutes of Technology and Government Engineering Colleges of repute, in consultation with the State Governments and the Central Road Research Institute, New Delhi, to advise and assist the Executing Agencies, on behalf of the Ministry, on technical matters relating to PMGSY. The STAs are expected to scrutinise the project proposals prepared by the State Governments, provide requisite technical support to the State Governments, undertake Quality Control tests for the State Governments and undertake Training Programmes and Research Projects at NRRDA’s instance. The NRRDA has also identified 7 Principal Technical Agencies (PTAs), generally IITs, to act as the Regional Coordinators of the STAs as well as the extended arms of NRRDA in the pursuit of its objectives. The role and responsibilities of the PTAs include overseeing the activities of the STAs in the region, training, R&D, quality audit etc. The list of STAs and PTAs is at Annexure X-A and X-B. The Principal Technical Agencies have now been advised to check 2-3% of the number of Detailed Project Reports cleared by the State Technical Agencies. Projected traffic volume, being an important design parameter, has a significant bearing on cost of the road works. Similarly, recognising the need to test the assumptions underlying traffic projections, the STAs/PTAs have also been requested to conduct traffic volume studies on the roads constructed/improved under PMGSY upto December, 2003. 18. Training and HRD 18.1 Training Training of Engineers and personnel involved in implementation of PMGSY at PIU and SRRDA level has been one of the interventions determining the quality of project out comes. The training of PMGSY officials are conducted through SIRD’s located in each state. These trainings are funded by grant to SIRD as per training rules. Specific courses to the requirement of states have also been conducted through National Level training institutes. Such training are funded by NRRDA and are conducted as per standard 2,3 and 6 days modules for training of PMGSY Engineers developed by NRRDA. Various training programme have been organized by NRRDA at National Level Institutes such as Central Road Research Institute (CSIR), New Delhi and Indian Academy of Highway Engineers (MoRTH, GOI), Noida, Uttar Pradesh for senior officers and at state level at various states institutes of Rural Development for Junior Officers. During the year 2011-2012 upto December, 2011 about 1582 officers have been provided training on the basis of training module developed by NRRDA for 2,3 and 6 days by expert faculty(Resource Persons) recommended by NRRDA for respective topics. 28 Further training calendar for 2012-2013 is being finalized based on the requirements of training of personnel from all states. The requirement of training for next year will be fine tuned on the basis of feedback received from the training programs organized earlier and state requirements. Further National Institute of Rural Development (NIRD), Hyderabad under MoRD has also planned to organize training for 12 programmes for PMGSY officers for skill development during 2012-2013. 18.2 National Conference and Exposition on Rural Roads (a) National Conference on Asset Management on Rural Roads Rural roads constructed under PMGSY or any other programme requires regular and timely maintenance to keep them at least at minimum acceptable serviceability levels. However, as of now, this is not happening as desired due to several reasons including constraints of resources and lack of organized institutional arrangements. Realizing the fact that the assets created are to be preserved through appropriate asset management strategy, a national conference on "Asset Management on Rural Roads" was organized during 28th and 29th April, 2009 at Hyderabad jointly by NRRDA and APSRRDA. During the conference, three technical sessions, one group discussions and an experience sharing session were scheduled, where administrators, state engineers, other senior engineers, subject domain experts and representatives of multilateral organizations like, World Bank and ILO, participated. Several issues were discussed during the conference and many key issues for effective asset management were identified and deliberated upon. (b) Interactive Workshop on performance of NQMs and STAs An interactive workshop on performance of STA/PTAs and the NQMs was held at Bhubneshwar during 12th - 13th Aug, 09. STAs from the States of Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura and West Bengal and NQMs and SQCs having their Head quarters in the States of Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Jharkhand, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tamil Nadu, Tripura and West Bengal participated in the Workshop. Newly empanelled NQMs also attended the workshop. The workshop was held in two parallel sessions. In one session, the performance of STAs and project scrutiny issues were discussed and in the other, the performance of existing NQMs along with the training programme for the newly empanelled NQMs was carried out. (c) Workshop on Government e-Procurement Project (GePNIC) for States dealing with PMGSY. Ministry of Rural Development has decided to procure PMGSY works through eTendering. In this direction, a workshop on Government e-Procurement Project (GePNIC) for States dealing with PMGSY Programme was organized during 15-16 September, 2009 wherein experts from NIC, officials of NRRDA and MoRD and representatives of State Governments were present. NIC and States of Orissa, Tamil Nadu and West Bengal made presentation on their e-tendering systems during the workshop. Hands on training on GePNIC Software were also a part of the workshop. 29 As an outcome of the workshop, training on GePNIC software is being imparted in the States covered under first phase of implementation of e-Procurement. 18.3 PIARC (World Road Association) Seminar: Keeping in view importance of maintenance, PIARC International Seminar on Sustainable Maintenance of Rural Roads was held during 21-23rd January, 2010 at Hyderabad. The objective of the seminar was to provide a common platform for practitioners to share experiences and deliberate the issues and challenges associated with the planning, provision and maintenance of rural roads in a sustainable way. Innovations with respect to involving local communities throughout the process also formed a part of the overall objective of the Seminar. The Seminar was focused on the Indian experience of dedicated National Programme on Rural Accessibility PMGSY, Sustainable Accessibility and Planning the Development of Rural Road Network, Implementing Sustainable Maintenance, Community Participation and the way forward Exposition on Prime Minister's Rural Roads Programme (PMGSY) Alongside the Seminar, a small photo exposition was organized showing the details of PMGS'Y, India's national programme of rural connectivity. Participants viewed and discussed the valued information on PMGSY and practices for construction of low volume roads shown in this exposition. Inauguration of Seminar and Exposition Shri Pradeep Jain, Hon'ble Union Minister of State for Rural Development and Shri B. Satyanarayana, Hon'ble Minister of Panchayat Raj, Andhra Pradesh inaugurated the Seminar and Exposition on 21st January, 2010. The occasion was graced by the presence of many other dignitaries. Participation The Seminar was attended by about 500 participants from India and 20 international participants including delegates from Bolivia, Burkina Faso, France, Finland, Italy, Mexico, Nepal, Norway, Sri Lanka, Switzerland, Thailand and USA. Themes and Presentations during the Seminar The Seminar covered the four themes related to maintenance of rural roads and experts of eminence from various International and national organizations made presentations on the topics and technical sessions were attended by stakeholders from organizations over the globe. Details are as follows: Theme I: Theme II: Theme III: Theme IV: PMGSY in India Sustainable Accessibility and Planning the Development of Rural Road Network. Implementing Sustainable Maintenance Community Participation 30 18.4 International Seminar on Rural Roads Seminar on Sustainable Maintenance of Rural Roads : Second International Seminar on Sustainable Maintenance of Rural Roads was organized at Santa Cruz, Bolivia during 10th -12th March, 2011 followed by the seventh and the last meeting of TC- A4 Committee of PIARC for cycle 2008-2011 on the 13th March, 2011. The seminar was organized by Bolivian Highways Administration called ABC supported by PIARC. The International seminar was seen as an opportunity to understand the scenario of development of rural infrastructure in Latin American countries. Since the socio-economic parameters and geo-climatic conditions of Bolivia have considerable similarities to those in India, it was felt that the exposure to Bolivia and projection of achievements in PMGSY implementation of India would be helpful. A delegation of 4 members was deputed to attend the Seminar. The delegation was headed by Shri. Prabha Kant Katare, former Director, NRRDA. The other members of the delegation are: • • • Shri. K.C. Dhimole, CEO, Arunachal Pradesh Rural Roads Development Agency, Arunachal Pradesh Dr. I.K. Pateriya, Joint Director (Technical), NRRDA Shri. S.R. Mehar, Under Secretary, MoRD Socio climatic conditions of Bolivia are quite similar to those in India. About 70% of the population of Bolivia lives in 3 cities and rest of the population lives in rural areas and this was the difference when compared to India. The scenario of road development in Bolivia is relatively weaker compared to India in general. It was a matter of great satisfaction that implementation of PMGSY in India was presented before almost all the Latin American countries and it was taken as one of the most successful programme in the world on providing rural accessibility. International Seminar on “Performance Based Road Maintenance Contracting” at Orlando, Florida, USA. The International Road Federation had invited officers of National Rural Development Agency as extended invitation for participation in the latest addition of his Projective Seminar series five day programme of presentation with two days field exposure and discussion about performance based road maintenance contracting and preservation held from 30th October to 8th November, 2011. In Orlando, Florida, USA upon international experts representing his field of maintenance contract management, finance of sustainable policies development have presented best practices and case studies in maintenance contracting and preservation. Participants had been engaged in working groups with experts who are actively involved in Maintenance Contracting and Asset Management to discuss application of best practices under different country conditions on following agenda: Lessons and Principles of Output and Performance Based Road Maintenance Contracting. Trends in Private Participation in Roads. Financing Road Maintenance Programmes. Model Contract Documents. Output and Performance Based Contracting. Maintenance Management issues and Requirements. Best Practices & Sustainability in Maintenance. Outsourcing Maintenance in Developing Countries. Innovative Financing & Risk Issues (PPP). Environmental Benefits of Road Maintenance. 31 A delegation of 7 members was deputed to attend the Seminar. The delegation was headed by Shri Rohit Kumar, Director (RC), MoRD. The other members of the delegation are: (i) Shri N.C. Solanki, Director (Projects-I), NRRDA (ii) Shri K.K. Srivastava, Chief Engineer, PWD, Uttarakhand. (iii)Shri M.M. Sun, Chief Engineer, PWD, Meghalaya (iv) Smt. Anjana Devi, Technical Advisor, Govt. of Jharkhand. (v) Shri Anurag Asthana, Senior Engineer, UPRRDA, Uttar Pradesh (vi) Shri S.S. Bhatia, Assistant Director (Projects-I), NRRDA Orlando, Florida (USA) is a city in the Central region of United States of Florida. According to 2010 census, the city having area of 101 square mile with land area of 93.5 sq mile and having water 7.5 square mile and had a population of 238,300 making Orlando the 79th largest city in the United States. Summary and Key Issues to Success 18.5 Asset Maintenance a crucial aspect. Asset Maintenance Contract types: Corridor, Geographic, Facilities, Bridge. Incorporating existing resources into contracts. Selection of Contractor on Price and Technical proposal. Determination of ultimate customers i.e. Department or Traveling Public or anyone dealt with. Long term success requires, building a constructive relationship with the Asset Maintenance Contractor including Employee Development. Coordination of scope with industry. Use of clear & comprehensive defined Standard & Scope of Services against well established performance measures to maximize programme success and consistency. Use of established procedures and policies scope for dynamic changes. Interactive session for faster preparation/formulation of proposals to obtain clearance of PMGSY projects under Forest (conservation) Act:- More and more habitations in remote areas are being taken up now for road connectivity under PMGSY. In order to provide road connectivity to habitations in remote areas, it is sometimes required to construct/upgrade roads or portion thereof through forest areas which necessitates clearance under the Forest (conservation) Act, 1980 and its subsequent amendments. It takes much time at the State level to process and prepare the required documents for sending to the regional office of the Ministry of Environment and Forest in order to obtain the clearance under Forest (conservation) Act. Process simplification for faster preparation/formulation of proposal is required for timely implementation of PMGSY projects. For identification of the problems and working out suggestions for process simplification, a meeting was held with the officers of the MoEF, MoRD and the State Govt. of Himachal Pradesh and Uttrakhand on 27.02.09 in NRRDA. It was decided in the meeting to organise interactive sessions with the officials of State Rural Road Development Agency (SRRDA)/ Programme Implementation Units (PIUs), implementing the programme (PMGSY) in the State and the forest department of the State Governments. The first inter-active session was held at Shimla on 29.05.09. 32 19. Maintenance of Rural Roads PMGSY is a huge Central investment in the State sector as part of a poverty reduction strategy. This investment, in essentially the ‘last mile’ connectivity, is likely to be useful only if the main rural road network, particularly the rural Core Network is maintained in good condition. In the context of a farm-to-market connectivity, proper maintenance is essential if risks of long term investments, on-farm as well as off-farm, are to be taken by the rural entrepreneur. Accordingly, the institutional measures to ensure systematic maintenance and providing adequate funding for maintenance of the rural core network, particularly the Through Routes, will be key to the continuance of the PMGSY programme in the State. To this end, State Governments need to take steps to build up capacity in the District Panchayats and endeavour to devolve the funds and functionaries onto these Panchayats in order to enable them to manage maintenance contracts for rural roads. All PMGSY roads (including associated Main Rural Links / Through Routes of PMGSY link routes) will be covered by 5-year maintenance contracts, to be entered into along with the construction contract, with the same contractor, in accordance with the Standard Bidding Document. Maintenance funds to service the contract will be budgeted by the State Government and placed at the disposal of the SRRDA in a separate Maintenance Account. Since rural Through Routes / Main Rural Links carry comparatively larger traffic and keeping them in good condition is particularly important, Through Routes (whether upgraded under PMGSY or subjected to maintenance contract as an associated Through Route of a PMGSY link route) on expiry of 5-year post-construction maintenance shall be placed under Zonal maintenance contracts consisting of 5-year maintenance including renewal. The State Government will make the necessary budget provision and place the funds to service the zonal maintenance contracts at the disposal of the SRRDA in the Maintenance Account. Maintenance funds- Commitment, Release, Expenditure for all years State-wise as per Annexure –XI. 20. Research and Development At present following is the normal procedure followed in funding the R&D projects by Ministry of Rural Development under PMGSY. 1. The product proposed to be used and the technology shall get accreditation from Indian Roads Congress (IRC). 2. After getting the accreditation, the material supplier shall contact one or more state SRRDAs and convince them about the efficacy of the product and its application in their state. 3. The material supplier should engage a technical consultant and involve the state Engineers, where the pilot project is proposed, in preparing a DPR supported by data through appropriate investigations. 4. While preparing the DPR, the cost of the proposed road with new technology and conventional technology are to be worked out and compared to prove the economic viability and cost effectiveness. 33 5. While submitting the proposal through SRRDA, the Product manufactures/ Agents should give undertaking to the following effect: a. The product required for the pilot project road shall be given as a free sample, while the cost involved in the construction of other components will be given by Ministry of Rural Development. b. The material suppliers shall engage any competent technical agency to help the field engineers and the contractor’s engineers in the construction of road with their product and build capacity through formal and on-spot training. c. The company should agree to carryout post construction performance monitoring for a minimum period of 18 months, in association with the Technical Advisor. Indian Roads Congress has accredited more than 48 materials/ technologies for use on Pilot Basis for a period of 2 years. A list of these Materials/ Technologies is available on their website: www.irc.org.in The following R&D initiatives have so far been taken in association with the concerned agencies:(i) Use of Jute Geo Textiles in Rural Roads: – Cost of road construction being higher in poor soil, R&D findings on the benefits of using Jute to improve soil strength is being further investigated. In order to prove the efficacy of the use of Jute Geo Textiles in Rural Road Construction at field level, a Pilot Project has been initiated and the Jute Manufactures Development Council (JMDC), an Agency of Ministry of Textiles was identified as the nodal agency for the Pilot Project which in turn has retained Central Road Research Institute (CRRI), New Delhi as Technical Consultant. An MOU was signed between NRRDA and JMDC. 10 Road works for the Pilot Project were selected in the States of Assam, Chhattisgarh, Madhya Pradesh, Orissa and West Bengal, taking two roads in each state. The Detailed Project Reports for the selected road works, prepared by JMDC under the guidance of CRRI, were cleared by Empowered Committee. The SRRDAs tendered, awarded and executed the works following the provisions of SBD with necessary special conditions. Nine road works have been completed and performance evaluation of these roads is being carried out by CRRI. One road work could not be started due to local unfavorable conditions and has been dropped from the pilot project. Performance report is yet to be received from CRRI. Details of these road works executed are available at Sl No. 1 to 30 in Annexure XII(B). (ii) Rural Roads Pavement Performance Study: – Rural Roads Pavement Performance Study was initiated on the recommendations of the Workshop conducted for PTAs/ STAs, in order to enable the evaluation of the following: (i). (ii). (iii). Efficacy of the current design procedures for sustainability. Trends in the growth pattern of the traffic plying on the roads under different socioeconomic environments. The progression of deterioration of the pavements over a period of time under different field conditions. 34 15 institutions for carrying out Rural Roads Pavement Performance Study were identified and MoU were signed. Final Report has been received from most of the Institutes. IIT, Chennai has been nominated to carry out analysis and modeling at local and global level with the data of all institutes. (iii) Technology Demonstration Projects:States are encouraged to submit Technology Demonstration Projects along with regular proposals. Projects received from States are scrutinized and submitted to Empowered Committee for recommendation and approval from Ministry of Rural Development. States were requested vide letter No. P-17012/2/2004-Tech. to adopt soil stabilization techniques where CBR is below 3 and STAs will ensure that appropriate soil stabilization techniques have been proposed. A workshop on Use of Jute Geo Textiles was organized in 2009 and it was decided with the consent of the States that proposals of minimum length as detailed below, will be prepared using JGT Technology, by the States while bringing the next batch of proposals to NRRDA / MoRD for clearance. The States have informed that they will bring these proposals in the next batch. Arunachal Pradesh Chattisgarh Madhya Pradesh West Bengal Assam Bihar Sikkim About 30 km About 50 km About 50 km About 100 km About 100-150 km About 50 km ------ PM Package ADB Project ADB Projects to be considered by Empowered Committee on 19.06.09 Bharat Nirman ADB III Bharat Nirman For Slope Protection Works A Pilot Project using Cold Mix Technology for 500 km in the State of Assam was sanctioned in 2010. The State has informed that it has already completed 500 km road length using Cold Mix Technology. Letters have been circulated to all the States to take up Pilot Projects using any of the materials/ technologies accredited by IRC in their annual proposals. Technology Demonstration Projects for 24 road works using Cement Concrete (Cell filled and interlocking concrete block), Gravel, Lime Stabilized, Slag Stabilized, Coir and RBI-811 were considered under PMGSY in the State of Karnataka. Letters have been circulated to the States of Andhra Pradesh, Assam, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Orissa and Tamil Nadu to take up Rural Road Projects with Coir Geo Textiles covering a length of about 50 Km in each State either under New Connectivity or Upgradation. Letters have been circulated to all the States to take up Rural Road Projects, for about 100 Km on pilot basis, using Cold Mix Technology in the construction of surface layer of Rural Roads under PMGSY, if so allowed in the State. List of road works taken up under R & D is placed at Annexure – XII(A). 35 A Workshop was organized on 18th February, 2012 at Central Road Research Institute, New Delhi on Non Conventional Materials/ Technologies in order to create awareness among the field engineers, to bridge the gap between laboratory and the field construction techniques and to demonstrate the use of locally available materials, new materials and waste materials. The Workshop was attended by representatives of more than 20 States. 21. Consideration of Proposals of Members of Parliament Following are the main provisions in the PMGSY Guidelines for consultation with Members of Parliament: (i) The Core Network and District Rural Roads Plan is finalized by District Panchayat after giving full consideration to suggestions of MPs (Para 4.6). (ii) The Comprehensive New Connectivity Priority List (CNCPL) and Comprehensive Upgradation Priority List (CUPL) will be prepared after consultation with MPs and taking their suggestions. (Para 6.4). (iii) Lok Sabha Members will be consulted in respect of their constituencies and Rajya Sabha Members in respect of that district of the State they represent for which they have been nominated as Vice-Chairman of the District Vigilance & Monitoring Committee of the Ministry of Rural Development. (Para 6.10). (iv) In preparing Annual proposals for road works, the proposals of MPs will be given full consideration as follows. The Block or District CNCPL / CUPL should be sent to each MP with the request that their proposals on the selection of works out of the CNCPL / CUPL should be sent to the District Panchayat. It is suggested that at least 15 clear days may be given for the purpose. (Para 6.9 (i)). In order to ensure that the prioritisation has some reference to the funding available, the size of proposals expected may also be indicated to the Members of Parliament while forwarding them the CNCP / CUPL list. District / Block-wise allocation may be indicated to enable choice with the requisite geographical spread. It is expected that such proposals of Members of Parliament which adhere to the order of Priority would be invariably accepted subject to considerations of equitable allocation of funds. (Para 6.9 (ii)). The proposals received from the Members of Parliament by the stipulated date should be given full consideration in the District Panchayat which should record the reason in each case of non-inclusion, and the Members of Parliament should be informed of the inclusion / non-inclusion of their proposals along with the reasons in each case in the event of noninclusion. It would be preferable if the communication is issued from the Nodal Department at a senior level. (Para 6.9 (iii)). 36 22. Initiatives under PMGSY The Rural Road Programme has taken many new initiatives and established several new standards in its endeavour to construct roads of the highest possible quality. The new initiatives taken as part of the PMGSY programme include the following. 22.1 Development of Rural Roads in 82 Selected Tribal and Backward Districts under IAP For inclusive growth a number of initiatives have been taken. Special Dispensation accorded to 82 Selected Tribal and Backward Districts under IAP by Ministry of Rural development: (i) All habitations in 82 Selected Tribal and Backward Districts under IAP, whether in Schedule V areas or not, with a population of 250 persons and above (in 2001 Census) will be eligible for coverage under PMGSY. (ii) In 82 IAP districts, cost of bridges up to 75 meters under PMGSY will be borne by Government of India as against 50 meters for other areas. (iii) In case of 82 IAP districts, the minimum tender package amount has been reduced to Rs. 50 lakh to attract more response to bids. Special Dispensation accorded to 82 Selected Tribal and Backward Districts under IAP by Ministry of Environment and Forest: General approval under Section 2 of Forest (Conservation) Act 1980 for diversion of forest land up to 5 ha for creation of critical public infrastructure projects in 60 IAP districts has been given and orders have been issued, which covers rural roads. Workshop on “Appropriate Development Strategies for effective implementation of the schemes of Rural Development in 60 IAP Districts” A Workshop on “Appropriate Development Strategies for effective implementation of the schemes of Rural Development in 60 IAP Districts” was also held by the Ministry of Rural Development and the Planning Commission on 13th September, 2011 in which Principal Secretaries / Secretaries dealing with Rural Development Programmes of all the nine IAP States and District Collectors / CEO Zila Panchayats/PD DRDAs of all the 60 IAP Districts were invited in addition to the Secretaries of various Ministries / Departments of Government of India and Experts from various fields. Recommendations of the Workshop on PMGSY The workshop on “Appropriate Development Strategies for effective implementation of the schemes of Rural Development in 60 IAP Districts” held on 13.9.2011, after detailed deliberations, made the following recommendations vis-à-vis 60 IAP districts: 37 (i) Construction of critical Cement-Concrete (CC) Roads in highly affected blocks in 60 IAP districts may be permitted (ii) Manual tendering may be allowed in some highly-affected blocks of such districts for a limited period of one year. (iii) Clustering of PMGSY roads for creating greater synergy may be considered in such districts. (iv) Assessment criteria of bid capacity of contractors may be relaxed in such districts so that smaller contractors can also participate in PMGSY works. (v) The time period of execution of road works in these districts may be enhanced from the existing 18 months to 24 months. (vi) National Rural Roads Development Agency (NRRDA) may examine use of modern ground improvement techniques and use of pre-fabricated bridges to expedite construction in such districts. 22.2 Formulation of District Rural Roads Plan For the first time systematic District Rural Roads Plans have been prepared listing out the complete network of all roads in the district i.e., Village Roads, Major District Roads, State Roads and National Highways. 22.3 Implementation of concept of Core Network The concept of Core Network has been operationalised for the first time in order to focus on the set of roads which are considered essential to provide connectivity to all habitations of the desired size. The Core Network is the basic instrumentality for prioritisation of construction and allocation of funds for maintenance. The order of priority and the Comprehensive New Connectivity Priority List (CNCPL) / Comprehensive Upgradation Priority List (CNCPL) are the twin basis for taking up Annual proposals. 22.4 Consultation with public representatives The PMGSY has an inbuilt mechanism for consultation with public representatives from Panchayat to Parliament at various points of the programme. Consultation with Members of Parliament is held at both the Core Network finalisation and Annual Proposals stages. In addition, at the stage of preparing DPRs, the DPIU conducts a transect walk along the road alignment, involving the local panchayat. 22.5 Rural Roads Manuals The original Manual, called Manual on Route Location, Design, Construction and Maintenance of Rural Roads was brought out by the Indian Roads Congress as a publication in 1979 (IRC: SP:20-1979). 38 Following the launch of the PMGSY, the Ministry of Rural Development constituted 3 Committees in January 2001 to go into various aspects of rural road construction and the manuals on these different aspects brought out by the committees were combined into a separate ‘Rural Roads Manual’ and published as an IRC publication (IRC:SP 20-2002) in supersession of earlier manual. Subsequently, IRC has prepared and published the following codes, which will help in design of low volume rural roads. IRC:SP:62-2004 (Guidelines for the design and construction of cement concrete pavements for rural roads), IRC:SP:63-2004 (Guidelines for the use of Interlocking concrete block pavement), IRC:SP:68-2005 (Guidelines for construction of roller compacted concrete pavements), IRC:SP: 72-2007 (Guidelines for the design of flexible pavements for low volume rural roads), and IRC:SP:77-2008 (Manual for design, construction and maintenance of Gravel roads). Revision of the Chapters on CD Works is being taken up for achieving cost effectiveness and is at approval stage by IRC council. 22.6 Review of Geometric design parameters. An Expert Committee to review the Standards, Specifications and Design of rural Roads for achieving economy in the cost of construction under Pradhan Mantri Gram Sadak Yojana (PMGSY) was constituted. Subsequently the committee held consultative meetings with the State Representatives. Based on the deliberations, recommendations on road Geometrics in hill states as well as plain and rolling terrains have been finalized and communicated to all the states concerned. The recommendations made help to reduce the cost of construction and also facilitate Rural Road construction in the areas of land constraints. 22.7 Use of new technology and materials The focus given to Rural Roads through the PMGSY is now enabling the channelization of R&D efforts to this sector. Use of cement concrete, modified bitumen, jute Geotextile, fly ash as well as soil stabilisation techniques and other new methodologies, including waste plastic are all being pursued. 22.8 Outsourcing of technical inputs In order to manage the programme at the national level and yet ensure that adequate technical inputs are locally available for planning and execution of rural roads programme, an elaborate structure consisting of Principal Technical Agencies (national level technical institutions) as well as State Technical Agencies (regional level technical institutions) has been successfully brought into the framework of the programme planning and execution through a Government – academia partnership. 39 23. National Rural Roads Development Agency The National Rural Roads Development Agency (NRRDA) has been set up as a society under the Societies Registration Act on 14th January, 2002 to provide technical support to the programme. The NRRDA provides support on the following:1. To provide inputs to Ministry of Rural Development for framing appropriate Action Plan for effective and optimum result oriented implementation of PMGSY keeping in view the broad policies/guidelines and the budgetary resources made available by the Ministry of Rural Development. 2. Scrutiny of the proposals received from States and Union Territories for consideration by the Ministry of Rural Development. 3. To deal with matters relating to State Rural Roads Development Agencies (SRRDAs), monitor their progress in respect of the road-works with particular reference to time frame for completion, Technical Specifications, Project Appraisal and Quality Control methods, expenditure incurred by the State / Union Territories, planning for and plantation of other suitable trees on both sides of the rural roads. To hold meetings of the Performance Review Committee/ Regional Review Committee for periodic review of progress of PMGSY and send periodic reports to the Ministry on the progress of implementation of road works by the States or Union Territories. 4. To interact with State Governments, other Ministries/ Departments, national and international Bodies (ADB, WB, PIARC etc.) with a view to take concerted action for effective and meaningful implementation of PMGSY in a convergent manner. 5. To seek sufficient budgetary support for PMGSY from Ministry. 6. To undertake study, research activities, Pilot Projects, etc. and evaluate different technologies in respect of Rural Roads, and advise on appropriate design and specifications of rural roads including bridges and culverts, measures to improve the Quality and Cost-norms of the Rural Roads. 7. To appoint reputed Technical Institutions as Principal Technical Agencies and State Technical Agencies to perform the tasks to be entrusted to them and Independent Monitors from among serving or retired Engineers, Academicians, Administrators and other Agencies, with experience in Rural Roads and to review their performance. 8. To oversee and inspect through Independent Monitors, the execution of the road-works cleared by the Ministry and being implemented by States or Union Territories through their Executing Agencies. 9. To arrange suitable Training Programmes for functionaries involved in the implementation of the Rural Roads Programme; organise or sponsor to Workshops and Seminars in respect of Rural Roads and publish books, literature, print, audio-visual, publicity material in respect of the PMGSY. 40 10. To provide guidance to States in the matter relating to accounts and financial management of PMGSY, to monitor and follow up for compilation and audit of Accounts by the SRRDAs and review their Action Taken Reports on Audit observations. 11. Timely re-payment of principal amount of loan and payment of Interest to NABARD. 12. To maintain and upgrade OMMAS through an engaged agency (C-DAC) and monitor the progress made by SRRDAs in respect of updation of OMMAS including On-line generation of Accounts and submission of proposals for release of funds to Ministry of Rural Development. General Body As per Clause 11 of Rules and Regulations – Bye Laws of NRRDA the number of Members of the General Body shall not exceed 21. The Members of the Agency shall be nominated by the President. The General Body shall meet normally once in 6 months but at least once every year, on such date, time and place as may be determined by the President. Executive Committee As per Clause 18 of Rules and Regulations – Bye Laws of NRRDA there shall bean Executive Committee of the Agency and shall comprising the Director General- Ex-officio Chairman, 5 Members to be appointed by the President, of which one shall be Finance Member and the remaining 4 shall be from among the Principal Technical Agencies. The Executive Committee shall meet as often as is necessary but at least once in two months. The details of meetings of General Body and Executive Committee held in 2011-12 and 2012-13 are enclosed at Annexure XIII.. 24. Impact Assessment 24.1 Impact Assessment of PMGSY was conducted during January – February 2004 in 9 States. 24.2 M/s. Lea Associates South Asia Pvt. Ltd. was engaged (on 29th June, 2005) as a National Consultant to conduct a poverty-impact survey of Pradhan Mantri Gram Sadak Yojana on the rural population and also to study the satisfaction level of road-users. The study covers ten States, namely, Assam, Bihar, Himachal Pradesh, Karnataka, Mizoram, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal. 24.3 Nationwide impact assessment study of PMGSY was organized with the help of independent research agencies with CMI Social Research Centre, New Delhi as Nodal Agency. Report was submitted in March 2011. The study has covered 17 States, 50 districts and 748 habitations and 18655 households interviewed. The major findings of study include: Impact on Agriculture:Easier access to markets and improved flow of information attributed to improvements in agricultural production and incomes of the farmers Impact on employment generation:- 35% households reported increase in no of days of employment in principal occupation. 41 25. Impact on income and poverty alleviation: - 63% households reported an increase in the average annual income in their principal occupation and 65% reported increase in average annual in all occupations. Impact on health aspects:- In 87% habitations their has been a reduction in travel time to reach nearest health facility. Impact on education:- Provision of all whether road facilitated creation of infrastructure, institutions, increase in manpower and other improvements in educational aspects. Finance and Accounts of Project The State level autonomous agency designated as State Rural Development Agency (SRRDA) for each State receives Funds for the PMGSY Works from MoRD/NRRDA. Funds receive for construction of New Roads, up gradation of Existing Roads, sign board and such other activities that MoRD specify are kept by SRRDA in Programme Fund Account. Funds received for various Administrative Expense for the items specified in the charts of Accounts of PMGSY Administrative Expense Fund are kept in Administrative Expense Account. In the state of Bihar besides SRRDA, nominated executing agencies namely NBCC, NHPC, NPCC, IRCON and CPWD have also been entrusted the construction of PMGSY Roads in selected districts are related directly to them. The SRRDA’s and NEA’s are responsible for rendering their accounts audited from a Chartered Accountant selected from a panel approved by the C&AG of India, within six months from closure of the Financial Year. This account is supported by a statement of Bank Reconciliation, utilization certificate. Banker certificate indicating the balance amount on date of issue of the certificate and interest credited is submitted to sate Nodal Department and the MoRD. NRRDA also provide the Training on OMMAS (R&P) Module and Accounts. 25.1. Status of Audited Accounts Audited Financial Statement furnished by SRRDA/ NEA are reviewed by NRRDA shortcomings, if any, communicated to the concerned SRRDA/NEA under intimation to MoRD. However, CPWD executing PMGSY work in the State of Bihar sends the income and expenditure account directly to MoRD. There are 28 SRRDAs and 5 NEAs. The State of Himachal Pradesh, Madhya Pradesh (Programme Fund only), Odisha, Rajasthan (Programme Fund only) and Uttar Pradesh have prepared the Balance Sheet for the Year 2011-12 based on OMMAS. The status of submission of Balance Sheet to MoRD/NRRDA is given in Annexure -XIV. 25.2. OMMAS The Online Management, Monitoring and Accounting system (OMMAS) has been designed as an Online web based system with centralized database. The OMMAS consist of 9 Modules namely Master Data, Rural Road Plan, Proposal, Tendering, Execution, Quality monitoring, Accounting & Fund Flow, Maintenance and Security & Administration. Detailed procedure for making data Entry in the respective Modules is given in OMMAS User manual version 2.0. One of the parameter (Para 19.3(e) of PMGSY 42 Programme Guidelines) for release of second installment of Programme Fund in a year to SRRDA is that the output of the relevant Modules of OMMAS has been certified by the concerned SRRDA as correct. Further, as Para 12.1(ix) of PMGSY Programme Guidelines, the release of Administrative Expense Fund is dependent on continuous updation of OMMAS Module. The status of data entry in the Receipt & Payment module is given in the Annexure-XV. 26. Formulation Pradhan Mantri Gram Sadak Yojana –II (PMGSY-II) Scheme At the start of 12th Five Year Plan, many States have substantially completed New connectivity and Upgradation under PMGSY and many other States are likely to be in the same position within a year or two. 2. Keeping in view the asset value of the road network, it is increasingly essential to ensure that assets already created are maintained and yield services as originally envisaged before going on undertaking commitments for creating more assets. Hence, a programme, called PMGSY-II, is being conceived on sharing basis to consolidate existing rural road network by upgradation, renewal and maintenance of the vast network already created. In order to formulate the draft policy for the PMGSY-II, discussions were also held with experts in Rural Roads sector on 24th April, 2012. Also the discussions were held with some of the States. 3. Based on above discussions, a draft “Concept Paper” has been prepared to obtain the comments and suggestions of all the States and UTs. 4. Need for Consolidation of Rural Road Assets- Justification of the Scheme: It is proposed that PMGSY-II consolidates the existing rural road network. It would cover Upgradation of existing selected rural roads based on a criterion to make the road-network vibrant. The selection of routes would be with the objective of identification of rural growth centres and other critical rural hubs, rural places of importance (connectivity to other growth poles, market, rural hub, tourist places etc.). Development of Rural Hubs & growth centres are crucial to the overall strategy of facilitating poverty reduction through creating rural infrastructures. Growth centres/rural hubs provide markets, banking and other service facilities enabling and enhancing self employment and livelihood facilities. They also help ensure raw materials and labour inputs for off-farm activities. They will also help bring the benefits of economic growth to the rural hinterland, including white goods, automobiles etc. PMGSY-II, by recognising growth centres/rural hubs and facilitating their connectivity to the hinterland will catalyse livelihood based programmes, including the Nation Rural Livelihoods Mission (NRLM) launched in the 12th FYP. ********* 43