Citing the rising input costs, the state governments have sought from the ministry of rural development to significantly enhance allocation under flagship schemes. The rural ministry is considering the state governments’ demands to increase the rate of allocation for per unit kilometre of roads built under Pradhan Mantri Gram Sadak Yojna (PMGSY), dwelling units under Indira Awas Yojna (IAY) among others.
In the case of PMGSY, the state governments have cited significant increase in input costs to make bricks or concrete cemented roads to demand a hike from `50 lakhs per km allocation to `75 lakhs. The state governments have given presentation to the rural development ministry stating that it’s not feasible to construct one km of road at the current rate of `50 lakhs. The state governments have been seen lobbying hard for getting allocation under the PMGSY to improve rural connectivity, which has also been recognised by minister Jairam Ramesh as key to tackle the menace of Maoist violence.
The states, including West Bengal and Bihar, have maintained that the current allocation of `45,000 for constructions of one unit of dwelling unit under IAY is not enough. “The states are seeking upward revision under IAY to `75,000 for constructing a dwelling unit in the plain areas and `1 lakh in hilly and tough areas. They said constructing a dwelling unit with `45,000 is not feasible given sharp rise in input costs,” said a senior official. The states have also sounded the ministry, that they wish to hike the wages under Mahatma Gandhi National Rural Guarantee Act, which alone is likely to cost about an additional `7,000 crores to the Centre.