The National Bank lays considerable emphasis on systematic and sustained monitoring of the projects sanctioned under RIDF. During the year 2011-12, a total of 5499 projects were field monitored by various functionaries of the Regional Offices. 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 objectives of monitoring 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
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.
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 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.10 crore, (ii) projects with loan amount more than Rs.10 crore but less than Rs.25 crore and (iii) projects with loan amount of Rs.25 crore and above. Further, all projects need to be classified into two categories i.e. Normal Moving Projects (NMP) and Slow Moving Projects (SMP)/problematic projects. SMP are those projects whose progress is short of 50% of the annual phasing. Problematic projects are those having problems of litigations, land acquisition, statutory clearances, inadequate budgetary allocations, etc. Innovative projects are those which are being implemented for the first time in the State.. 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 5% & 10% for NMP and SMP respectively to be monitored once during the project implementation. The projects under category (ii), 50% of the NMP are to be monitored once during the project implementaiton and in case of all SMPs once in a year. The projects under category (iii), in case of NMP on annual basis and in case of SMPs on half-yearly basis. All innovative projects are monitored once in a year.
2.3 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.
2.4 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.
2.5 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. Supervisory Monitoring Mechanism - High Power Committees
4.1 High Power Committee (HPC) meetings are held on quarterly basis by the Regional Offices of NABARD 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.
4. 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.
National Bank for Agriculture and Rural Development