Minister seeks UN funds for panchayat network

It is estimated that the task would require an initial capital cost of Rs 2,000 crore and a recurring cost of about Rs 300 crore per annum, which cannot be met from the current level of Panchayati Raj funds. The ministry is now trying to create a resource pool to fund this exercise by pooling funds from different sources.

A meeting of Project Management Board PMB, which comprises officials from the Panchayati Raj Ministry and UNDP, met on October 31 to look into the resources required. It is learnt to have agreed in-principle to support the ministry8217;s initiatives. However, UNDP will not be funding the entire NCBF, but may be willing to fund a part or some of its components for about three years. Aiyer, who is visiting Washington at the invitation of the World Bank to address a meeting on local self-governance, will be meeting Dr Hafiz Pasha, assistant secretary-general of UNDP.