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Local Units Flout Criteria while Recommending Projects under Indian Grant

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Local Units Flout Criteria while Recommending Projects under Indian Grant
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February 8: Local governments are found to be recommending projects under the Small Development Project (SDP)—a scheme financed by the Government of India—by going against set criteria.  

As local units are selecting and recommending projects for the scheme that do not fall under prescribed sectors, the federal government officials say that they have to reject such proposals.  

Along with their project proposals, local bodies are also required to submit Detailed Project Report (DPR), cost sharing commitment of respective local unit and evidence confirming availability of land for infrastructure development, among other documents.

Though infrastructure development projects like construction of school, hospital, child care center and library are funded through the SSP, many local governments are selecting projects that do not qualify under this scheme.

As a result, the Ministry of Federal Affairs and General Administration (MoFAGA) is declining those recommended projects, according to officials at the MoFAGA.

“Local units should follow certain criteria while submitting their projects under the SDP. Many local units do not pay attention to these criteria. Those incomplete proposals are returned to the respective local units. We have been drawing their attention about this issue which is yet to be resolved,” said Bishnu Dutta Gautam, a joint secretary at the MoFAGA.

Many projects recommended by local units are related to those areas that are different than those allowed under the scheme.

Going against the upper limit set for the funding under the SDP, some local units have also been found recommending projects with estimated cost higher than Rs 50 million, according to MoFAGA officials. 

After receiving proposals from local governments, the MoFAGA forwards the eligible projects for the funding to the Embassy of India in Kathmandu via the Ministry of Finance.

The Embassy of India in Kathmandu has allocated a budget of Rs 500 million for the SDP for the current fiscal year 2020/21. The Indian government directly releases the budget to the respective local governments based on the progress of the projects selected under this scheme.

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