Pradhan Mantri

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• Pradhan Mantri
• Gram Sadak Yojana
• Ministry of Rural Development
• Government of India
• May 25, 2004

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A Central intervention in the State Sector

• Rural Roads is a State subject and also a
  Panchayat subject
• Central Govt. funding of PMGSY - an important
  element of a poverty reduction strategy
• Full executional responsibility of State
  Governments retained in PMGSY
• Panchayati Raj Institutions involved in network
  planning and road works selection under PMGSY

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Pradhan Mantri Gram Sadak Yojana

• Programme launched on 25th Dec. 2000
• The Objectives
• All 500 Unconnected Habitations to be connected
  by 2007
• For Hill, NE States, Desert and Tribal Areas 250
  unconnected habitations also to be connected.
• Total Investment Rs 60,000 crore
• Eligible Habitations 1.6 lakh
• As per initial estimates

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Cabinet Decisions on 7th Aug. 2001

• PMGSY a 100 Centrally Sponsored Scheme (CSS)
• Funded out of Diesel Cess as per Central Road
  Fund Act
• National Rural Roads Development Agency (NRRDA)
  to be set up for operational management
• MoRD authorised to take appropriate steps in
  coordination with MoF to generate additional
  financial resources including ADB/World Bank
  funding

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PMGSY Features

• Block/District wise Core Network of existing and
  proposed roads prepared after detailed survey.
• Core Network approved by District Panchayat is
  basis for all PMGSY works.
• Connectivity being provided to about 60,000
  habitations with population of 1000, 81,000
  habitations with population of 500 and 29,000
  habitations with population of 250
• Special attention to 10 Core States with highest
  level of unconnectivity

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Number of Habitations and Length of Roads to be
Covered under PMGSY
As per Core Network Survey
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Cost of Connecting the Habitations in the Core
Network
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Linkage between Poverty Unconnectivity (Poorer
/ more unconnected ranks lower)
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Selection of Roads under PMGSY

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Execution of Works under PMGSY

• Technical Standards as per Indian Road Congress
  Rural Road Manual. (IRC SP-202002)
• DPRs checked by Independent State Technical
  Agencies ( IITs, RECs etc)
• Time Bound Execution Tendering in 75 days
  completion in 9 - 12 months
• Standard Bidding Document (SBD) prescribed to
  facilitate standard, transparent contracting, and
  construction by capable Contractors.
• 5 year routine maintenance contract, funded by
  State Govt.

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Computerised Management Monitoring System
Full information on PMGSY Scheme available at
website pmgsy.nic.in
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Computerised Management Monitoring System

• Road / Habitation level data and progress
  entered in database by Programme Implementation
  Units (PIUs) at district level and processed
  information available through Online Management
  Monitoring System (OMMS) at website
  http//pmgsy.org/

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Quality Management

• Quality Control as per QC Handbook
• QC Registers for every work maintained by
  Contractor and PIU.
• Three tier Quality Control Mechanism
• Quality Control by First tier of Quality Control
  at PIU Level
• Quality supervision by Second tier Monitoring
  under State Quality Coordinator (SQC)
• Quality Audit by Third tier of Quality mechanism
  Independent National Quality Monitors (NQMs).

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Good and Very Good
Poor and Average
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Other Initiatives under PMGSY

• State Level Rural Road Agencies got constituted
  for coordination
• Road Condition Survey of Core Network initiated
• Maintenance planning initiated
• Book of Specifications for Rural Roads being
  developed
• Standard Data Book for Analysis of Rates being
  developed
• Operations Manual being developed
• Training Programme for 15000 Engineers and
  Contractors

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Progress of Works under PMGSY
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Progress under PMGSY (Phase II ) for Core
States (ranked in order of of roads completed)
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Progress under PMGSY (Phase II ) for Non-Core
States (ranked in order of of roads completed)
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Progress of Works under PMGSY (continued)
Proposals from States cleared so far
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PMGSY (2000-01 to 2004-05)
Roadworks for both years were cleared together
In addition Rs 320 crores provided for
ADB/World Bank funded works
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States achieving coverage of 1000 Habitations
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Funding Requirement

World Bank has agreed in principle to fund PMGSY
under Sector Wide Approach (SWAp). Likely to be
about US 1.2 billion
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Domestic Borrowing Proposed

• LIC has agreed in principle to make available
  long term funding for PMGSY.
• A Funding Line of Rs. 2500 3000 crore per annum
  at an interest rate of about 7 p.a.
• Total credit offered is approx. Rs. 10,000
  crores.
• Maturity Period 25 years, with a moratorium of 10
  years.
• Lending is to be to an SPV which is backed by
  requisite guarantees by Govt. of India
• Cabinet Note circulated proposing repayment
  out of future Cess accruals in Central Road Fund.
  Law Ministry's advice awaited.

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Other Models of Funding

• WARANA Model
• Proposal by WARANA Group of Cooperatives,
  Maharashtra
• Construction and maintenance of roads in 3
  districts of Maharashtra
• Leveraging of PMGSY allocations of the Districts
• 15 years maintenance to be provided at their cost
  by raising plantations along the roadsides and
  monetising the usufructs.
• MOU has been signed on 13th Jan 2004, the final
  agreement is awaited
• Leveraging By State Governments
• Several State Governments asked to explore the
  possibility of raising additional resources by
  leveraging the Diesel Cess funds allocation
• So far the Govts of Andhra Pradesh, Gujarat and
  Tamil Nadu have shown interest.
• A Draft Mechanism to Leverage Funds by State
  Governments has been circulated for comments on
  27th April 2004

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Issue 1- Balance Cess Funding

• In Budget Announcement of 2003-04, Finance
  Minister levied additional Cess of 50 paise/litre
  on HSD
• Matter taken up several times with Planning
  Commission and Finance Ministry, but additional
  accrual (about Rs 1250 crores for PMGSY) not yet
  made available

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Issue 2 Maintenance of Core Network

• Maintenance to be done by States
• Funds severe constraint
• States asked to estimate Fund requirement and
  conduct survey to ascertain Road Condition Index
• Guidelines issued on how to prioritise
  maintenance based on Condition Index
• Matter taken up with Finance Commission to
  provide Rs 7255 crore per annum for routine
  maintenance and periodic renewal of 11.16 lakh km
  of rural roads.

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Issue 3 Executional Capacity Enhancement

• Many States lack trained and experienced
  engineers to manage PIUs
• States encouraged to outsource Project Management
  and Project Implementation to NBCC/BRO/RITES etc
• Guidelines being issued to enable States to
  select Consultants with adequate capacity.

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• Thank You