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NABARD’s Potential-Linked Plans, District Planning Processes, etc, as
Integral Parts of the Panchayati Raj System
NABARD’s potential linked plans and Lead Managers’ District
Credit Plans based on them constitute the quintessential inputs for District
Development Plans in the changed context of an overwhelmingly large
proportion of private sector investment ingrained in the liberalised planning
process. Such private investment is in turn overwhelmingly based on external
finance (or institutional credit) for the farmers, and other rural enterprises.
The Planning Commission has decided that District Development Plans be an
integral part of the individual state’s five-year plans.
It is in the above context, that the machinery of the Lead Bank constitutes
an important foundation for the Panchayati Raj system, and potential-linked
plans, District Credit Plans and Annual Action Plans most crucial blue-prints
for rural development. Therefore, the Usha Thorat Committee has envisaged
vastly expanded role for the Lead Bank Scheme in the planning processes.
First, it has recommended the formulation of a one-time comprehensive
State-level as well as District-Level Development Plan which can take stock
of positives and negatives in banking development and evolve appropriate
strategies to facilitate development for financial inclusion and inclusive growth.
These development strategies would earmark roles and responsibilities for
different stakeholders – banks, state government and other stake holders. The
institutional arrangements for these would be state-level banking committee
for the state development plan and the Lead Development Manager – headed
district coordination committee (DCC).
At the second stage, NABARD’s PLP to be ready by August each year
(instead of October-November) so that the state governments may factor in the
projections made in the PLP; in turn NABARD should factor in suggestions
made in the District Development Plans:
“The Committee advocates that while preparing the District
Development Plans by the Government officials, the commitments
made in PLP/ACP should appropriately be taken into account.
The Committee further suggests that while preparing the credit
plans under the Lead Bank Scheme, the annual plans/ five year
plans prepared under the District Planning Process by the DPC
may be referred to for having a dovetailed approach towards
the development process as envisaged by the gram panchayats/
municipalities (p.71)
