Economic Survey - Disbursements for rural infrastructure lag sanctions

Disbursements under the Rural Infrastructure Development Fund continue to lag behind sanctions, according to the Economic Survey, 2006-07. The cumulative amount sanctioned to the State governments up to January 25, was at Rs 58,795.36 crore while disbursements were at Rs 34,643.87 crore.

During 2006-07 (up to January 25) the amount sanctioned and disbursed were Rs 7,810.85 crore and Rs 3,306.60 crore, respectively.

The total corpus of RIDF, with 12 tranches, aggregated to Rs 60,000 crore and was announced by the Government in 1995-96 to boost public sector investment in agriculture and rural infrastructure.

The fund was to be raised from commercial banks defaulting on agricultural lending. The corpus is announced every year during the budget. So far, 11 tranches have been completed and RIDF-XII is on-going in 2006-07.

Initially the fund focussed on irrigation projects, development of rural roads and bridges but soon other activities were included. The activities which can get loans under the RIDF include hydel projects, community irrigation wells, soil conservation, watershed development and reclamation of waterlogged areas, grading and certifying mechanisms such as testing and certifying laboratories, fishing harbour, animal husbandry, public health and education institutions, among others.