The National Bank lays considerable emphasis on systematic and sustained monitoring of the projects sanctioned under RIDF. During the year 2002-03, 9647 projects were field monitored by various functionaries of the Regional Offices, depicting 23% growth compared to the previous year. Field monitoring is supplemented with desk reviews and periodic returns. With a view to ensuring smooth implementation of projects, designated officers from the Head Office and Regional Offices at the state level and the District Development Managers at the district level undertake regular field visits to monitor the progress of projects and discuss the problems with the field level functionaries.
The monitoring mechanism was streamlined and fine tuned, effective from 1st April 2002, covering desk monitoring, field monitoring, review of drawal of funds, supervisory monitoring and project completion reports. The monitoring mechanism for RIDF projects is based on the principle of monitoring by exception, obtaining critical information rather than elaborate information while monitoring, capacity building of the various partners and stakeholders and extensive use of the information technology. The objectives are :
facilitate timely physical completion of the projects;
avoid cost overruns;
ensure compliance to the approved design and quality parameters;
increase visibility of NABARD monitoring; and
identify new investment opportunities complementary and
supplementary to rural prosperity.
GUIDELINES FOR MONITORING OF RIDF PROJECTS
1. Desk Monitoring
1.1 The desk monitoring helps in identifying the critical issues such as non starter schemes, slow moving schemes, areas having concentration of projects and areas with inadequate/zero projects.
1.2 Assessment of Capacity of Implementing Departments: This is an important aspect and the pace and quality of project implementation depends largely on the capacity of the project implementation departments/divisions. Thus there is a need to ensure that sanctions are within the capacity of project implementing divisions/departments.
2. Field Monitoring
2.1 RIDF projects are currently being monitored on project basis. However, due to increase in the number of projects area-based stratified field monitoring mechanism could be more effective. The desk monitoring will facilitate crystallization of issues and selection of proper sample(s) in turn will help field monitoring.
2.2 Quantification of Monitoring and Quality Control Mechanism: As project monitoring is primarily the responsibility of the implementing department of the State Government, as such project proposals from the State Government need to indicate quantifiable details about monitoring and quality control mechanism in the implementing department. These quantifiable details form part of the sanction letter. The quality and adequacy of internal monitoring and quality control mechanism by the implementing departments is examined during field visits and lapses on this account, if any, are brought to notice of the State Government at appropriate fora with an objective of strengthening the internal monitoring mechanism of the implementing departments.
2.3 Sector-wise/Zone-wise Monitoring : NABARD has introduced a sector-wise, zone-wise field monitoring to be undertaken by officers of Regional Office and our District Development Managers, depending upon the number and size of projects. The operational area of the Chief Engineer/ Superintending Engineer of the implementing department is taken as a zone and based on objective sampling, a complete review of the on-going projects of individual implementing agencies i.e. Irrigation, PWD, Primary Education, Forest Department, etc. is undertaken separately for the selected zone. Efforts are made to cover all the zones of various implementing agencies atleast once a year.
2.4 Monitoring of Projects of Variable Outlay : In order that the frequency of field monitoring is, in general, based on the amount of loan involved, the projects are classified on the basis of loan amount sanctioned. Accordingly, projects are classified into three categories, i.e. (i) projects with loan amount upto and inclusive of Rs.2 crore, (ii) projects with loan amount more than Rs.2 crore but less than Rs.20 crore and (iii) projects with loan amount of Rs.20 crore and above. As regards the number of projects to be monitored, in case of projects coming under category (i) above, zonal/sectoral monitoring, to the extent of about 15 to 20 per cent of the number of projects, is taken up on an annual basis. All the projects under category (ii) are monitored on half yearly basis and each of the projects under category (iii) are monitored at least once in a quarter.
2.5 Selection Criteria : Selection of projects is based on physical progress in commensurate with financial progress, slow progress in drawals, projects not visited, projects in different geographical/ecological regions, projects with adverse public response, successful projects eligible for documentation as case study, etc.
2.6 Reporting of Findings : The Regional Offices convey the sector-wise findings on core issues for necessary follow-up at appropriate level of the State Government but for projects under category (ii) & (iii), the individual project-wise issues/constraints identified are communicated to appropriate level of the State Government for early necessary follow up.
2.7 Social Monitoring Tools : With a view to supplementing our monitoring efforts, it is desirable to encourage 'social monitoring' through display of the physical and financial details in local language, especially of smaller projects having people's participation. The physical details should generally be in a layman's understandable local language. In smaller projects which are sanctioned in large numbers like check dams etc. the available space on the walls in the vicinity is used for this purpose instead of metal boards to reduce expenditure on this head.
3. Drawal of Funds
It has been our experience that drawals of funds under RIDF are generally concentrated in the months of February and March although sanctions and implementation of projects are continuously undertaken throughout the year. Some of the monitoring studies have revealed inordinate delays on the part of State Governments in submission of drawal applications. With a view to further facilitating continuous flow of funds to the State Governments under RIDF
against actual implementation, it has been decided to encourage decentralization of submission of drawal application to NABARD at the level of Chief Engineers of the implementing department on proper notification of Finance Department. The funds will, however, be released to Finance Department. The Finance Department will continue to be the Nodal Department for documentation, receipts and repayment of RIDF loans, etc. Similarly, NABARD is willing to accept drawal applications on monthly basis. This will reduce the time gap in release of funds.
4. Supervisory Monitoring Mechanism - High Power Committees
4.1 The concept of High Power Committee (HPC) meetings has proved to be very effective. A review of this mechanism, however, reveals that during the last three years, 149 meetings could be held as against the expected 300 meetings by 25 State Governments. Inspite of best efforts by Regional Offices and interaction at appropriate levels, it has not been possible to hold HPC meetings regularly because of preoccupation of Chief Secretary/Agricultural Production Commissioner. It has, therefore, been decided to introduce a system of holding quarterly meetings also with the Administrative Secretaries and Heads of the implementing departments. This system will necessitate preparation of suitable agenda by the Regional Office and depending upon local situations, zonal heads of the implementing departments should also be invited to these meetings.
4.2 Supplementary Review Meetings : Some of the Regional Offices have introduced the system of District Level Review Committee under the chairmanship of District Collector with participation of local officers of implementing departments and the DDM. These committees have proved to be useful in sorting out various local operational problems.
5. Project Completion Report (PCR)
The objective in obtaining PCRs, inter alia, is to chalk out strategy for funding identical projects in future as also to ensure project completion, make overall assessment of the potential created for generation of income and employment in rural areas, etc. The status of receipt of PCRs for the completed projects has, however, not been upto mark. It has, therefore, been decided to introduce the following changes to improve receipt and use of PCRs.
(a) PCR will be accepted from zonal in-charges such as SEs in case of smaller projects like tubewells, village roads, primary schools, check dams etc. and from the heads of the department in case of projects with RIDF loan of more than Rs.1 crore.
(b) The sector-wise Tranche Completion Report (TCR) will be prepared by the Regional Offices which will be consolidated at Head Office level for appropriate use.
6. Miscellaneous Interventions
6.1 The phenomenal growth in the RIDF portfolio nevertheless necessitates efforts towards capacity building of all the stakeholders. Systematic documentation of field experiences under RIDF is also essential for capacity building. The following initiatives have been taken for capacity building of all the stakeholders.
(a) Officers of implementing departments
Efforts are made to provide to the staff concerned, orientation in the area of RIDF objectives, project preparation, operational aspects, drawal of funds from NABARD, monitoring, quality control aspects, social and economic gains from projects, preparation of project completion report, identification of new potential investment opportunities, etc. Workshops are organised in association with Head of the implementing departments at zonal level.
(b) RIDF Staff in Regional Offices
Orientation programmes are conducted to impart appropriate training to NABARD''s Staff working in RIDF divisions including DDMs.
(c) District Development Managers of NABARD
(i) The District Development Managers DDMs are associated with pre-appraisal field visits on selective basis to enable them to gain more insights into the projects; (ii) field visits are organised for DDMs to apprise them of various aspects/items to be examined during appraisal, monitoring, technical terminology, etc. to facilitate effective communication with the implementing departments.
(d) Users of RIDF Projects
User participation is important in successful implementation and maintenance of the asset created with RIDF support. Villagers receiving benefits from projects are to be involved from the project identification stage onwards and encouraged to form associations like Water Users' Associations (WUAs). Capacity building of users such as members of WUAs may be facilitated through exposure visits to successful projects especially with critical role of the local communities. 0.5% of the project cost could be earmarked for capacity building of users.
7. Documentation of Experiences
Documents for dissemination of experiences and lessons learnt from RIDF lendings as also impact of RIDF investments need to be properly developed. Efforts to record successes (as also failures), best practices evolved, etc. may be made. Training material based on such documentation would be valuable in capacity building at different levels.
8. Evaluation Studies
Since a large number of projects have been completed over the last few years, it is expected that benefits would have stabilized by now. NABARD has, therefore, launched several evaluation studies to study the benefits accrued on account of RIDF projects.
Services of consultants have also been commissioned for monitoring the project implementation. Those projects which were identified as critical have been subjected to intensive monitoring. Findings of the monitoring visits have been promptly communicated to the appropriate authority in the state government for follow-up action wherever required. The progress in the implementation of projects continued to be reviewed in quarterly meetings of the High Power Committee (HPC) constituted for the purpose in each of the states under the chairmanship of the Chief Secretary / Finance Secretary of the state. A supplementary monitoring mechanism to High Power Committee (HPC) has also been put in place by organizing structured meetings with Administrative Secretaries and Heads of the departments of project implementing departments of the State Governments. The identified issues relating to overall management of RIDF projects by the State Governments are also discussed with the State Chief Ministers by the Chairman / Managing Director, National Bank during their periodic visits.
A.1 Sectoral Monitoring of RIDF Projects
Monitoring strategy was refined to address to sectoral issues through sector specific monitoring studies by the different Regional Offices. During the year Bangalore (Roads and Irrigation), Chandigarh (Drinking Water supply), Hyderabad (Joint Forest Management, Roads and Bridges and Watershed) and Shimla (Drinking Water supply) Regional Offices have undertaken sectoral studies and the impact of such approach is encouraging. The new approach has also encouraged the State Governments to strengthen internal monitoring mechanism. The main findings are given below:
Irrigation (Karnataka)
The study indicated that minor Irrigation projects provided critical input of water for agriculture in the study area which were mostly undertaking farming under rainfed situations. Increased productivity of crops was reported besides raising of commercial crops like Cotton, Sugarcane, Paddy, Vegetables etc. Cropping intensity has also improved with the possibility of taking two crops in the single cropped areas. Rise in water levels of dugwells and borewells was another feature observed resulting in increased discharge of water. Some aberrations in the implementation were noticeable:
(i) The water rates fixed remained low as a result of which the collection on this account was meagre to meet the O&M expenses in most of the irrigation projects.
(ii) The monitoring exercise revealed that there is weak coordination between allied departments like agriculture, soil conservation, watershed development, forest, fisheries, mines and geology etc.
Rural Roads (Six studies in 5 States viz., Punjab, Karnataka, Kerala, Andhra Pradesh and Uttar Pradesh)
The investments in rural roads have been widely acclaimed by the rural populace. Quality of life has reportedly changed with easy access to markets and urban centres. Volume of traffic has risen considerably and vehicle operating cost, wear and tear etc, had registered notable downswing. The reports observed that wherever land acquisition problems were encountered they could be solved by convincing the villagers and farmers and the road projects could be completed without much delay. it has been reported that maintenance of rural roads continued to be a grey area.
Drinking Water Supply (2 studies carried out in Punjab and Himachal Pradesh)
The sectoral monitoring study has observed certain positive features in the implementation of drinking water supply projects. They included centralized purchase of pumps, pipes etc., ensuring standard/quality of material, satisfactory tendering procedure and good response for individual private connections. The grey areas observed were:
(i) the water rates prescribed by the authorities were not being collected for individual/standpost taps,and
(ii) the village level committee/Water Users' Association were not formed
Joint Forest Management (Andhra Pradesh)
The execution of works under the projects was generally satisfactory and the department has ensured active participation of VSS members in all the projects. The water table levels in the project area, down the valleys, have increased to about one metre above even when the rainfall was 30% less, as per the ground water assessment. Locally available material was utilized for civil works.
Watershed Development (Andhra Pradesh)
The projects have been well received by the local population as they envisaged bringing wasteland under cultivation and conserving soil and water for improved land productivity. The study team observed that the execution of works is generally satisfactory and the department is ensuring formation of Watershed Committees. According to it, scientific planning of the works is to be taken up on the one hand and maintenance of the structures is to be put in place on the other.
A-2 Quick monitoring studies conducted by the Head Office
The Head Office initiated monitoring studies of innovative and special type of projects during the year. The salient observations of the monitoring studies conducted by the Head Office are briefly presented below;
Rural Road/Bridge Projects in Arunachal Pradesh
The technical norms/specifications of ongoing schemes were adhered to and BIS standards were being followed. Measures taken for quality control of works were adequate and satisfactory. The overall progress of civil works was found to be satisfactory. However, availability of raw material/machinery was a bottleneck affecting speedier implementation of projects.
System Improvement in Power Sector in Arunachal Pradesh
The project on System improvement in power was being implemented in six districts of the State. The implementing agency was carrying out necessary tests for ensuring quality of civil and electrical works. The major shortcoming was that the future demand/load factor was not taken into consideration before finalizing transformers capacity.
Soil Moistures Conservation (SMC) structures in Andhra Pradesh
The positive features observed were (i) quality of construction was good. (ii) there has not been any cost overrun (iii) participatory approach has been adopted in implementation of the project and (iv) the project has led to increase of recharge of ground water and vegetative cover in the project area. The major deficiency related to the fact that more rockfilled dams have been constructed at the expense of percolation tank.
Flood Protection Projects in Punjab
During the course of study, Flood Protection (FP) projects envisaging construction of 77 Flood Protection (FP) works were physically examined. These works are expected to provide protection to various embankments constructed on river Sutlej and Beas. According to the study team 55 FP works were found to be intact and in reasonably good condition to arrest the fury of flood for a few more years. However, in many cases the choice of FP structures was not based on meticulous planning for long term sustainability.
Soil and Watershed Management in Meghalaya
The study revealed that the cultivated land in the project area has been expanded and water has been impounded for household uses also. The achievements of two projects (Umiap and Umshait) were found to be satisfactory. The implementing agency strictly adhered to the unit cost. Participatory approach had been adopted in the implementation of the projects. It was observed that the quality of civil works undertaken by the beneficiaries under the guidance of soil conservation departments was in desired lines and the materials used (stones, cements etc.) are also found to be of good quality. The major lacuna has been lack of coordinated efforts of different agencies/departments. Further, forward and backward linkages including bank credit were lacking.
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