Government of India Ministry of Panchayati Raj Dated: 17th March, 2010 Subject: Amendments to Article 243 of the Constitution

for Strengthening the Local Bodies 1. 1.1 Need for the proposed Amendments to Art. 243 The Constitution provides a clear mandate for democratic decentralization

through the institutional framework of self-governing local elected bodies, i.e. the Panchayats (Panchayati Raj Institutions: PRIs) and the Municipalities (Urban Local Bodies: ULBs). The Local Bodies are critical to the inclusive governance as they facilitate direct participation of people, particularly the marginalized, in governance. They also ensure transparency and accountability of the public institutions and functionaries through processes such as social audit. They can prepare context specific plans to address poverty, local infrastructure and socio-economic needs. The Eleventh Plan document recognizes PRIs as the primary means of delivery of essential services that are critical to inclusive growth. Strengthening of the Local Bodies is, therefore, critical to improving governance across the country and ensuring that the benefits of the huge funds routed through the Central / State Schemes reach the people in full measure. 1.2 But in-spite of the Constitutional mandate, powers and functions have not been

devolved to the Local Bodies appropriately. Moreover, the Local Bodies need to have a voice in the formulation of State laws to promote implementation of the Constitutional provisions. To address these issues, it is necessary to bring about Constitution Amendments and take other legal measures. 1.3 It may be recalled that Mahatma Gandhi had dreamt of Gram Swaraj. Article 40

in the Directive Principles of State Policy (Relevant Articles of the Constitution are at Annex-1) states that the State shall take steps to organize village Panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government. 1.4 Moreover, the then PM, while introducing the 64th Constitution Amendment Bill

in May 1989, had concluded his speech (Annex-2) as follows To the people of India, let us ensure maximum democracy and maximum devolution. Let there be an end to the power-brokers. Let us give power to the people.

1.5

The Statement of Objects and Reasons of the Constitution (Seventy-third

Amendment) Act, 1992 states that In the light of the experience in the last forty years and in view of the shortcomings which have been observed, it is considered that there is an imperative need to enshrine in the Constitution certain basic and essential features of Panchayati Raj Institutions to impart certainty, continuity and strengthen them. 1.6 As the country has commemorated 50 years of three tier Panchayats on 2nd

October, 2009, it would be most appropriate to have a relook at the relevant provisions of the Constitution and carry out amendments required to realise true Gram Swaraj. 2. Constitution Amendments required 2.1 Amendment to Article 243 G and 243 W of the Constitution 2.1.1 Consequent upon the 73rd Amendment in 1992, Article 243G of the Constitution provides that the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government with respect to the preparation and implementation of plans for economic development and social justice including for matters listed in the Eleventh Schedule. Article 243W has provisions similar to Article 243G with respect to Municipalities regarding matters listed in the Twelfth Schedule. 2.1.2 The change in word from shall (Article 40) to may (Article 243G), gives discretion to the States in devolving powers and authority to the Local Bodies. As a result, the actual devolution to the Local Bodies has been uneven across States, and far from satisfactory in most of the States (Annex-3). Amendment remains largely unrealized. Thus the intent of the 73 rd

It may be noted that the Constitutional

provisions relating to the structure of local governments are mandatory in nature, and consequently, regular elections with the mandated reservations, constitution of State Finance Commission etc. have now become the norm. Correspondingly, devolution of powers and functions upon the Local Bodies that can be performed at the local level, also needs to be made mandatory. 2.1.3 As matters listed in the Eleventh and Twelfth Schedules are also State subjects, for genuine devolution in the present Constitutional framework, the Ministry of Panchayati Raj (MoPR) has supported the States in carrying out activity mapping, i.e. delineating clearly the functions to be performed at different levels (State Govt., 3 tiers of Panchayats, ULBs etc.), following the principle of subsidiarity (i.e. devolving

functions to the lowest possible level where it can be performed), to be followed by appropriate devolutions of funds and functionaries. But, this has not led to the desired outcome. Either the activity mapping has not been done, or has not been followed with government orders, or the principle of subsidiarity has not been followed, or funds and functionaries have not been devolved. 2.1.4 It is, therefore, proposed to make devolution of power and authority to Local Bodies mandatory with a suitable formulation. 2.2. 2.2.1 Setting up of District Councils The rural and urban areas represent a political, social, economic and

geographical continuum. However, in the present system, there is an artificial divide between rural and urban local governments, which has several shortcomings. First, the planning and management of socio-economic development including basic public services are artificially segmented. Second, in a rapidly urbanizing society, the boundaries between rural and urban territories keep shifting. The peri-urban areas around cities have dual characteristics of both the village and the town. Finally, as a democratic body representing the whole district does not exist and the District Collector continues to be the symbol of authority in the district, democratic decentralization is undermined. In all, the artificial separation of rural and urban local governments leads to fragmented planning and implementation, sub-optimal utilization of resources (manpower and financial) and vital gaps. 2.2.2 Though Article 243 ZD provides for the creation of District Planning Committees (DPCs) to consolidate plans prepared by the Panchayats and the Municipalities, the effectiveness of the DPC is very limited, because it does not have the necessary power and control over sectoral formations. To promote democratic governance and holistic planning and implementation for addressing peoples needs, an empowered institution, i.e. a unified elected District Council for the entire district (in place of the District Panchayat), with representation from all rural and urban areas, is needed. 2.2.3 The District Council will be responsible for planning for the whole district, as well as for all the local functions, including those listed in the Eleventh and Twelfth Schedules. Suitable regulatory functions could also be devolved to District Councils as these should be empowered bodies capable of taking decisions on a wide range of issues. The DPC comprising of officials and experts will become a professional /

technical arm of the District Council, providing overall support to the planning process; setting of district priorities on the basis of consensus among stakeholders; review of plans of local bodies, overseeing participative planning; monitoring and implementation of district plans. 2.2.4 The District Council will have its own Chief Executive Officer (CEO) of sufficient seniority to facilitate coordination of all the development departments of the district. The Collector may function as the CEO of the District Council, so that the strength of the Collectors institution is utilized to empower the District Council. The Collector would be accountable to the elected District Councils on all local matters and to the State Government on regulatory matters, not delegated to the District Councils. 2.2.5 Such an arrangement already exists in the Sixth Schedule areas in the North East, as the Autonomous Districts Councils enjoy legislative, judicial and executive powers without segmentation into the rural and urban areas. Such Councils were created to enable the local people to fulfill their aspirations and to promote their interests, a goal that is applicable across the country. Section 4(o) of the Panchayat (Extension to Scheduled Areas) Act 1996, (PESA), applicable in the Fifth Schedule areas, also recommends such provisions at the district level. 2.2.6 It is, therefore, proposed that the Constitution be amended to create elected District Councils substituting the District Panchayats, which will have representation from both rural and urban areas (excluding metropolitan areas) in proportion to their population. 2.3. Making the Panchayats accountable to the Gram Sabha 2.3.1 Peoples participation and accountability of the local public institutions to the people are two critical elements for the improved governance. These would evidently be facilitated by strengthening of the Local Bodies as a whole and of the Gram Sabha in particular. 2.3.2 As 50 years of 3 tier Panchayats was commemorated on 2nd Oct 09, 2 nd Oct, 09 2nd Oct, 10 is being observed as Year of the Gram Sabha to highlight the critical importance of the Gram Sabha in self-governance and transparent & accountable functioning of the Gram Panchayat and also to strengthen the Gram Sabha. Guidelines issued in this regard may be seen at Annex -5.

2.3.3 Article 243A of the Constitution provides that that the Gram Sabha may exercise such powers and perform such functions as the legislature of a State may, by law, decide. This provision is yet to be implemented in its spirit, which weakens the position of Panchayats as bodies accountable to the people and functioning in a transparent manner. Further, in may States Gram Panchayats are so large that people are not able to participate effectively. The creation of Ward Sabhas in large Gram Panchayats would enable effective citizen participation. 2.3.4 PESA provides a central role to the Gram Sabha in the Fifth Schedule areas (see Annex-6). Under PESA, Gram Sabhas have (a) Mandatory executive functions and responsibilities to approve plans of the village Panchayat, identify beneficiaries for schemes for socioeconomic development, and issue certificate of utilization of funds by the Panchayats; (b) Right of mandatory consultations in the matters of land acquisition, resettlement and rehabilitation, and mining leases for minor minerals; (c) Powers to prevent alienation of land and restore alienated land; (d) Powers to restrict sale/consumption of liquor; (e) Powers to manage village markets, (f) Control money lending; (g) Powers to control institutions and functionaries in all social sectors, etc. 2.3.5 It is, accordingly, proposed that provisions for Ward Sabhas be made in the Constitution and functions of the Gram Sabha be incorporated in the Constitution, along the lines of PESA Act. 2.4 Representation of MPs and State Legislatures, MLAs & MLCs in PRIs

2.4.1 Article 243 C (3) (c) and (d) provides that State Legislatures may by law provide for the representation of MPs, MLAs and MLCs in the intermediate and district level Panchayats. However, this provision is not in tune with the promotion of grassroots democracy as envisioned in Part IX of the Constitution. The presence of MPs, MLAs & MLCs inhibits elected Panchayat representatives from effective participation, affects the decision making process and hampers the emergence of grassroots leadership. 2.4.2 It is accordingly proposed that the provisions that give discretion to the State Governments to make MPs, MLAs and MLCs members of Panchayats be repealed. 2.5. Rotation in the reservation of seats 2.5.1 While the Constitution does not mandate rotation of seats after just one election cycle, this often is the practice across States. It counters the intent of reservation.

Candidates who win elections for the first time from reserved seats do not get adequate opportunity to gain in experience and grow in stature by getting re-elected. Often, powerful vested interests put up proxy candidates, who serve for a term, after which the seat gets de-reserved and becomes available to the existing powerful groups and individuals. Moreover, the rotation after one election cycle often leads to an unhealthy attitude of the elected, having little hope for re-election. 2.5.2 The 2nd ARC has recommended reservation for at least two terms to enable elected representation to grow as genuine leaders. Such a provision already exists in Tamil Nadu. It is argued that this would lead to a seat becoming available to a particular group (SC, ST, OBC, Women) after 4 decades and the right-to-recall should address the ills of one election cycle. But the balance of advantage would lie with rotation only after two election cycles. 2.5.3 Further, Article 243D provides that seats and offices of chairpersons reserved for SCs, STs and OBCs shall be allotted by rotation irrespective of their population in a Panchayat/Ward. Since, the proportion of population of these categories varies among Panchayats, this may lead to the situation that proportionate number of seats are not reserved for these categories in Panchayats/Wards, where their proportion is high, while disproportionate no. of seats are reserved for them in Panchayats where their population may be very low or even zero. This vitiates the spirit of reservation, and also increases resentment as the manner of reservation is seen as illogical. 2.5.4 It is, therefore, proposed that seats and offices of chairpersons be reserved for two continuous terms for a particular category and reservation be only in those territorial areas, Panchayats and District Councils where the population of a particular category is 5% or more. 2.6 Reconciling the term of the SFCs with that of the CFC.

2.6.1. Article 243 (I) of the Constitution states that the Governor of a State shall constitute a State Finance Commission (SFC) at the expiration of every fifth year to review the financial position of Panchayats and make recommendations regarding the principles governing the distribution and assignment, of taxes, duties etc. between the State and Panchayats, and grants in aid to Panchayats from the Consolidated Fund of the State. Article 280 (3) (bb) requires the Central Finance Commission (CFC) to make recommendations on the measures needed to augment the Consolidated Fund of a State

to supplement the resources of Panchayats in the State on the basis of the recommendations made by the SFCs. 2.6.2. The successive Finance Commissions have noted that as the period of the SFCs and the CFC was not synchronized, it was difficult to base the CFC report on the recommendations of the SFCs and State Governments should be empowered to constitute and direct their respective SFCs to give their report well before the CFC finalises its recommendations. 2.6.3. The present wording in the Constitution every fifth year limits the State Governments in constituting their SFCs so that the SFC reports are available to the CFC well in time. It is proposed to amend Article 243I (1) of the Constitution suitably. 2.7 Constitutional Amendments proposed

In pursuance of the above rationale, the amendments proposed in the Constitution are mentioned in the draft Bill at Annex-4 read with Annex-4A. 3. Law to be passed for restructuring of the Legislative Councils 3.1 The Legislative Councils can be critical institutions to enable the Local Bodies to have a say in the formulation of State laws and protect their institutional interests. Through the Legislative Councils, an organic link between the State Government and the Local Bodies can be established, and the issue of inadequate devolution of powers and functions to the Local Bodies could be resolved through legislative debates. 3.2 Clause 3 of Article 171 (2) of the Constitution provides for the election of only one third of the members of the Legislative Councils by the electorate of Local Bodies. The remaining two-thirds are to be elected from among university graduates, teachers, persons elected by MLAs, etc. The graduates and teachers

constituencies may have originally been conceived as a group of literate persons, when illiteracy was very high. With high literacy now, there is little logic in providing separate representation for graduates and teachers. Instead, the Legislative Councils need to be restructured to give larger representation to the Local Bodies, towards deepening the demonatic process. 3.3 As Article 171 (2) of the Constitution empowers Parliament to change the composition of Legislative Councils by law, it is proposed that, a law be framed under Article 171(2) to provide that two-thirds of the members of the

Legislative Councils shall be elected from among the elected members of the Local Bodies. Annex-7. 4. Proposals 4.1 It may be noted that more than 17 years have elapsed since the 73rd and 74th Constitution Amendments. Over this period, while the structure of Local Bodies has been put in place as mandated, the extent of devolution and institutional strength are far from satisfactory. The country commemorated 50 th years of Panchayati Raj on 2nd Oct, 09 and 2nd Oct.09- 2nd Oct, 10 is being observed as Year of the Gram Sabha. For strengthening Panchayati Raj, a fresh look at the existing Constitutional provisions is, therefore, timely and essential. Making devolution mandatory, creating District Councils, making local bodies accountable to Gram/Ward Sabha, increasing rotation cycle, and restructuring of Legislative Councils are necessary to ensure that the vision of local self government is realised in its true spirit. Minutes of the meeting held on with the States on the recommendations of the ARC is at Annex-8. 4.2 Accordingly, it is proposed to i) Amend the Constitution as in paras 2.1.4, 2.2.6, 2.3.5, 2.4.2, 2.5.4 and 2.6.3. The corresponding Amendment Bill is at Annex-4 (read with Annex-4A). ii) Bring an enactment under Article 171 as proposed in para 3.3. A comparative chart of existing and proposed provisions is at

(A.N.P. Sinha) Secretary (PR)

Annex 1 Relevant Articles of the Constitution 1. Article 40: Organization of village panchayats:The State shall take steps

to organize village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government. 2. Article 171: Composition of the Legislative Councils (1) The total number of members in the Legislative Council of a State having such a Council shall not exceed [one-third] of the total number of members in the Legislative Assembly of that State: Provided that the total number of members in the Legislative Council of a State shall in no case be less than forty. (2)Until Parliament by law otherwise provides, the composition of the Legislative Council of a State Shall be as provided in clause (3). (3) Of the total number of members of the Legislative Council of a State(a) as nearly as may be, one-third shall be elected by electorates consisting of members of municipalities, district boards and such other local authorities in the State as Parliament may be law specify; (b) as nearly as may be, one-twelfth shall be elected by electorates consisting of persons residing in the State who have been for at least three years graduates of any university in the territory of India or have been for at least three years graduates of any university in the territory of India or have been for at least three years in possession of qualifications prescribed by or under any law made by Parliament as equivalent to that of a graduate of any such university; (c) as nearly as may be, one-twelfth shall be elected by electorates consisting of persons who have been for at least three years engaged in teaching in such educational institutions within the State, not lower in standard than of a secondary school, as Parliament; (d) as nearly as may be, one-third shall be elected by the members of the Legislative Assembly of the State from amongst persons who are not members of the Assembly; may be prescribed by or under any law made by

(e) the remainder shall be nominated by the Governor in accordance with the provisions of clause (5). (4) The members to be elected under sub-clauses (a), (b) and (c) of clause (3) shall

be chosen in such territorial constituencies as may be prescribed by or under any law made by Parliament, and the elections under the said sub-clauses and under sub-clause (d) of the said clause shall be held in accordance with the system of proportional representation by means of the single transferable vote. (5) The members to be nominated by the Governor under sub-clause (e) of clause

(3) shall consist of persons having special knowledge or practical experience in respect of such matters as the following, namely: Literature, science, art, co-orperative movement and social service. 3. Article 243 A: Gram Sabha:-A Gram Sabha may exercise such powers and perform such functions at the village level as the Legislature of a State may, by law, provide. 4. Article 243 B (1): Constitution of Panchayats:- There shall be constituted in every State, Panchayats at the village, intermediate and district levels in accordance with the provisions of this Part. 5. Article 243 C (3): Composition of Panchayats:- The Legislature of a State may, by law, provide for the representationa. of the Chairpersons of the Panchayats at the village level, in the Panchayats at the intermediate level or, in the case of a State not having Panchayats at the intermediate level, in the Panchayats at the district level; b. of the Chairpersons of the Panchayats at the intermediate level, in the Panchayats at the district level; c. of the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies which

comprise wholly or partly a Panchayat area at a level other than the village level, in such Panchayat; d. of the members of the Council of States and the members of the Legislative Council of the State, where they are registered as electors within(i) a Panchayat area at the intermediate level, in Panchayat at the intermediate level;

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(ii) 6.

a Panchayat area at the district level, in Panchayat at the district level.

Article 243 D: Reservation of seats:-

(1) Seats shall be reserved fora. b. the Scheduled Castes; and the Scheduled Tribes,

in every Panchayat and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Panchayat as the population of the Scheduled Castes in that Panchayat area or of the Scheduled Tribes in that Panchayat area bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Panchayat. (2) Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes. (3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Panchayat shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Panchayat. (4) The offices of the Chairpersons in the Panchayats at the village or any other level shall be reserved for the Scheduled Castes, the Scheduled Tribes and women in such manner as the Legislature of a State may, by law, provide: Provided that the number of offices of Chairpersons reserved for the Scheduled Castes and the Scheduled Tribes in the Panchayats at each level in any State shall bear, as nearly as may be, the same proportion to the total number of such offices in the Panchayats at each level as the population of the Scheduled Castes in the State or of the Scheduled Tribes in the State bears to the total population of the State: Provided further that not less than one-third of the total number of offices of Chairpersons in the Panchayats at each level shall be reserved for women: Provided also that the number of offices reserved under this clause shall be allotted by rotation to different Panchayats at each level.

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(5) The reservation of seats under clauses (1) and (2) and the reservation of offices of Chairpersons (other than the reservation for women) under clause (4) shall cease to have effect on the expiration of the period specified in article 334. (6) Nothing in this Part shall prevent the Legislature of a State from making any provision for reservation of seats in any Panchayat or offices of Chairpersons in the Panchayats at nay level in favour of backward class of citizens. (7) Article 243 G: Powers, authority and responsibilities of Panchayat:-

Subject to the provisions of this Constitution the Legislature of a State shall by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to a. Preparation of plans for economic development and social justice as

b. The implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. (8) Article 243 I Constitution of Finance Commission to review financial position (1) The Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the governor as to(a) the principles which should govern(i) the distribution between the State and the Panchayats of the net

proceeds of the taxes, duties, tolls and fees leviable by the States, which may be divided between them under this Part and the allocation between the Panchayats at all levels of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Panchayats; (iii) the grants-in-aid to the Panchayats from the Consolidated Fund of the State;

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(b) the measures needed to improve the financial position of the Panchayats; (c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats. 9. Article 243 M (1) & (2) : Part not to apply to certain areas: (1) Nothing in this Part shall apply to the Scheduled Areas referred to in clause (1), and the tribal areas referred to in clause (2), of article 244. (2) Nothing in this Part shall apply to (a) the States of Nagaland, Meghalaya and Mizoram; (b) the hill areas in the State of Manipur for which District Councils exist under any law for the time being in force. (10) Article 243 W: Powers, authority and responsibilities

of Municipalities, etc:- Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow(a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to(i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred u0pon them including those in relation to the matters listed in the Twelfth Schedule. (11) Article 243 ZD: Committee for district planning:i. There shall be constituted in every State at the district level a District Planning Committee to consolidate the plans prepared by the Panchayats and the Municipalities in the district and to prepare a draft development plan for the district as a whole. ii. The Legislature of a State may, by law, make provision with respect to a. the composition of the District Planning Committees;

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b.

the manner in which the seats in such Committees shall be filled: Provided that not less than four-fifths of the total number of members of such Committee shall be elected by, and from amongst, the elected members of the Panchayat at the district level and of the Municipalities in the district in proportion to the ratio between the population of the rural areas and of the urban areas in the district;

c. the functions relating to district planning which may be assigned to such Committees; d. the manner in which the Chairpersons of such Committees be chosen. (3) Every District Planning Committee shall, in preparing the draft development plan,(a) (i) have regard to matters of common interest between the Panchayats and the

Municipalities including spatial planning, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation; (ii) the extent and type of available resources whether financial or otherwise; (iii) consult such institutions and organizations as the Governor may, by order, specify. (4) The Chairperson of every District Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State. 12. 1. 2. Eleventh Schedule Agriculture, including agricultural extension. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. 4. 5. 6. 7. 8. Minor irrigation, water management and watershed development. Animal husbandry, dairying and poultry. Fisheries. Social forestry and farm forestry. Minor forest produce. Small forest produce.

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9. 10. 11. 12. 13.

Small scale industries, including food processing industries. Rural housing. Drinking water. Fuel and fodder. Roads, culverts, bridges, ferries, waterways and other means of communication.

14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

Rural electrification, including distribution of electricity. Non-conventional energy sources. Poverty alleviation programme Education, including primary and secondary schools. Technical training and vocational education Adult and non-formal education Libraries. Cultural activities. Markets and fairs Health and sanitation, including hospitals, primary health centers and dispensaries.

24. 25. 26. 27.

Family welfare. Women and child development. Social welfare, including welfare of the handicapped and mentally retarded. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes.

28. 29.

Public distribution system. Maintenance of community assets.

13. Twelfth Schedule 1. 2. 3. 4. 5. 6. 7. Urban planning including town planning. Regulation of land-use and construction of buildings. Planning for economic and social development. Roads and bridges. Water supply for domestic, industrial and, commercial purposes. Public health, sanitation conservancy and solid waste management. Fire services.

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8.

Urban forestry, protection of the environment and promotion of ecological aspects.

9.

Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.

10. 11. 12.

Slum improvement and upgradation. Urban poverty alleviation. Provision of urban amenities and facilities such as parks, gardens, playgrounds.

13. 14.

Promotion of cultural, educational and aesthetic aspects. Burials and burial grounds; cremations, cremation grounds and electric crematoriums.

15. 16. 17.

Cattle ponds; prevention of cruelty to animals. Vital statistics including registration of births and deaths. Public amenities including street lighting, parking lots, bus stops and public conveniences.

18.

Regulation of slaughter houses and tanneries.

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Annex-3
Status of devolution of departments/subjects with funds, functions and functionaries to the Panchayati Raj Institutions. State/UT No. and names of the Departments/subjects Transferred to Panchayats with respect to Funds 1.A.P. 1. Zilla and Mandal Panchayats are not empowered to collect taxes. Gram Panchayats (GP) collect taxes such as house, lighting and water tax. GPs also collect a variety of duties and fees and generate revenues through auctions and lease rentals. 2. Governments Orders (GOs) issued for devolving funds in 10 departments. 75-80% funds devolved to PRIs are tied. Apart from establishment expenses, PRIs receive grants under TFC, SFC, BRGF and a per capita grant. 2.Arunachal 1. PRIs do not collect taxes. 2.Transfer of funds by departments has not taken place The SFC had identified various departments for devolution of funds but a decision has not yet been taken. 3. Assam 1. Though the Assam Panchayat Act 1994 empowers PRIs to collect taxes, such as tax on trade, entertainment, markets, fisheries etc and duties, cess etc the main source of revenue for all PRIs is lease rent from markets, river banks and ponds. PRIs cannot enforce tax collection, which remains poor. 2. PRIs receive funds under NREGS, BRGF, IAY, TFC and DDP. 4. Bihar 1. No taxes are collected by PRIs but a proposal regarding the same is under consideration of State Government. 2. Funds under TFC, BRGF and NREGS are allotted to PRIs. Functions Under the State PR Act 23 matters have been transferred to Mandal Panchayats, 21 to GPs and 1 to Zilla Panchayats (ZPs). Functionaries Functionaries are under the administrative control of their respective line departments but they are partially accountable to PRIs in respect of the devolved functions.

29 subjects as per Eleventh Schedule Functionaries have not been have been devolved. GOs covering transferred. 20 departments have been issued, but not yet implemented. All 29 functions have been devolved through legislation. The activitymapping document has been prepared covering 23 subjects and 17 departments. But GOs have been issued only for 7 subjects out of 23 by 6 departments. There has been very minimal devolution of functionaries in a few subjects. Officials continue to report to departments.

29 subjects as per Eleventh Schedule Departmental staff answer to have been devolved as per the Act departments. Angadwadi workers, and activity mapping has been teachers are health workers are

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Apart from these 3 schemes, PRIs do not receive funds under any of the Centrally and State sponsored schemes.

conducted. 21 line deptts. have issued GOs, PRIs play an important role in rural development & social welfare programmes, education, health and relief. Activity Mapping of 27 matters has been undertaken. Goa Panchayati Raj Act empowers Panchayats with respect to 29 subjects. A detailed activity mapping exercise has been conducted by the Second SFC and a report has been submitted and is under consideration of the State Government. At present, 18 matters are devolved to GPs, while 7 are devolved to ZPs. 14 functions have been completely devolved and 5 are partially devolved.

appointed by PRIs.

5. Chattisgarh

1. The GP is authorized to collect various types of taxes, including house tax, business tax, livestock registration tax etc. 2. Funds for 12 departments have been devolved. 1. Panchayats levy 11 types of taxes and also have non-tax sources of revenue. Matching grants are given by State Govt. on the basis of tax collection in previous year. 2. Untied funds are given to Panchayats through the Panchayati Raj Deptt. as well as specific purpose grants such as grant in aid to financially weak PRIs for strengthening administration, rural infrastructure and departmental grants.

Panchayat make recruitments for 9 departments. PRIs have their own core staff for the execution of works. At the GP level a secretary has been appointed and GPs have also employed own staff such as clerks and peons. The services of Executive, Assistant and Junior Engineers have been placed at the disposal of ZPs. Panchayats have power of appointment, transfer, and promotion etc. of all class III and class IV staff. GOs have been issued for devolution of functionaries for 14 functions. There is no significant devolution of functionaries.

6. Goa

7. Gujarat

1. 8 major taxes are collected by PRIs, which form an important source of own funds. 2. In 2008-09, 13 departments allocated funds to PRIs.

8.Haryana

1. GPs generate revenue from lease amount from auctioning of Panchayat land, liquor cess collected on behalf of Panchayats and rental of Panchayat premises to other deptts. 2. The 12th FC grant is made available to PRIs and some project specific grants are given to PRIs.

Panchayati Raj Act devolves 29 functions. GOs have been issued for 10 deptts. Five departments have issued instructions to implement these GOs.

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9. H.P.

1. Only the GP is empowered to levy taxes such as house tax, tax on shops, mills etc. GPs also levy service charges. Land revenue is transferred by the State Government to the GPs. A portion of the tax on liquor as well as telecommunication towers is also transferred to GPs. 2. Funds have not been transferred for any of the 29 subjects. PRIs mainly receive TFC grants and NREGS funds.

Activity Mapping of all 29 subjects has been undertaken vide notification dated 19th October, 2009.

The Panchayats of all 3 levels have been empowered to appoint functionaries of many categories on contract basis and pay their salary out of grant-in-aid provided by the State Government.

10. J&K 11.Jharkhand 12.Karnataka

Elections to PRIs have not been held Elections to PRIs have not been held. 1. PRIs collect 7 types of taxes. GPs also collect fees for various activities. Karnataka has delegated all 29 subjects to PRI by issuing Activity Mapping Notification dated 12.8.2003. The activity 2. Panchayati Raj legislation provides the mandatory mapping positions Zilla and Taluka transfer for untied funds to PRIs. The Govt. makes an Panchayats as planners and faciliators and untied grant of not less than Rs.5 lakhs to GPs. At the ZP owners of common executive machinery, level, funds have been devolved for 19 functions, at the Taluk Panchayat level for 14 functions and at the GP level GPs as local service providers and Gram and Ward Sabhas as instruments of down for 10 functions. ward accountability. 1. GPs have their own tax domain of 9 types of taxes and several non-tax revenue sources. Block an Zilla Panchayats do not levy taxes. 2. Untied funds devolved to Panchayats for development purposes to be used as per local prioritization. In addition, funds are transferred for specific purposes by deptts. Detailed activity mapping for all 29 functions has been conducted and activities have been devolved to Panchayats. All Panchayat posts barring those at the lower level are filled through deputation of Govt. employees who function under dual control of the Deptt. and the PRIs.

13.Kerala

Functionaries have been transferred to PRIs, which have full managerial and part disciplinary control over them.

14.M.P.

1. Panchayats are empowered to collect taxes such as property tax, mela tax, as well as generate non-tax income from sources such as temporary lease of land, rights for fisheries in ponds etc.

GOs containing the Activity Mapping in respect of 25 matters pertaining to 22 deptts. have been issued.

Functionaries for 13 departments have been transferred to the PRIs.

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2. Funds for 13 departments are released to PRIs. 15. Maharashtra 1. ZP and GP collect taxes. A percentage of taxes collected by the Revenue Department are passed on to the ZP. 2. Grants for 11 departments are transferred to PRIs. 11 subjects have been devolved totally to PRIs. For 18 subjects, schemes are implemented by PRIs as agencies from time to time. Class III and Class IV employees at all levels are Zilla Parishad employees. Class I and Class II officers in Line Departments are State Government employees but their performance review is initiated at the ZP level. Staff continue to function under the direction and control of State Government.

16. Manipur

PRIs receive 12th FC grants. State Finance Commission grants and BRGF grants. Additionally, Central and State Govts. allocate funds for implementation of NREGS, IAY and SGSY schemes. 1. Panchayats collect 6 types of taxes and fees. 2. Funds are provided for specific activities under NREGS, SGSY, IAY, scholarships, pensions etc covering 12 subjects. There is no clear devolution of untied funds.

The Panchayati Raj Act vests all 29 subjects with Panchayats. GOs have been issued across 16 departments. Five of these departments have taken steps to actually operationalise the devolution. 11 departments have devolved 21 subjects. The functions devolved to PRIs are basically of monitoring.

17.Orissa

Officials of 11 departments are accountable to PRIs as per GOs issued. The PRI control over official is in the nature of calling for information, supervision etc. No functionaries have been transferred to PRI by line departments.

18.Punjab

1. The main source of income of village Panchayats is through auction of Panchayat land. 2. There is no clear devolution of funds. Allocations are made by Line Departments for specific projects.

The devolution plan in respect of 7 key departments relating to 13 subjects has been approved by the State Govt. wherein crucial village level function of the same has been transferred to the PRIs. Functions have been devolved with respect to 17 departments.

20.Sikkim

1. Panchayats do not collect taxes but levy a few user charges. 2. Funds are being transferred by 17 departments.

Functionaries of 17 departments have been devolved to Panchayats, but Panchayats exercise limited control over them.

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21.Tamil Nadu

1. Only village Panchayats have the power to levy taxes. GPs and the intermediate Panchayats also have income from non-tax revenues and assigned and shared taxes. The only source of revenue of District Panchayat is from grants. 2. Panchayats receive Central and SFC grants. The State Government has issued orders that 9% of the States own tax revenue will be devolved to Local Bodies, of which rural local bodies will receive 58% share.

Out of 29 subjects in the Eleventh Schedule activities have been devolved to Panchayats in 21.

There is no significant devolution of functionaries.

22.Tripura

1. Panchayats collect non tax revenues, but the amounts are very small. Draft rules prepared for tax collection by Panchayats are under consideration of State Government. 2. Part funds related to lift irrigation scheme of the PWD Department, primary schools and Social Welfare and social education department and pension funds have been transferred to the Panchayats. Untied funds are also transferred to PRIs.

All 29 functions are devolved through legislation. So far GOs have been issued devolving irrigation schemes, primary schools and activities related to adult and non-formal education, women and child development and social welfare.

Functionaries of 5 subjects for which functions have devolved, have been transferred to Panchayats.

23. U.P.

1. All 3 tiers have the power to collect taxes. But since the tax base is small, there is very limited financial planning independence with PRIs. 2. Funds are received by Panchayats for NREGA, BRGF, SGSY, IAY mid-day meal scheme, total sanitation campaign and distribution of scholarships.

16 subjects relating to 12 departments have been devolved to PRIs.

PRIs do not have control over functionaries of the subjects devolved.

24.Uttarakhand

1. ZPs collect taxes. No taxes are collected at Block Panchayat. Gram Panchayat can levy property and Panchayat tax. 2. Funds are made available to PRIs for activities for only 3 functions.

Activity Mapping of 14 departments has been done.

Orders were issued in regard to 14 subjects, giving certain powers of seeking information and supervision to Panchayats over officials but Panchayats exercise limited control over officials.

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25.W. Bengal

1. GPs can impose and realize taxes on land and buildings. All 3 tiers can charge fees, tolls and realize charges against different services. Schematic funds are transferred from the Central and State Govt. 2. Untied funds are allocated under the TFC grant as well as SFC grant. The State Govt. also provides a grant for PRIs to meet establishment costs. Deptts. of the State Govt. transfer fund for devolved/assigned functions. 5 departments have opened Panchayat Window in their respective departmental budgets.

The State Govt. has devolved all 29 functions included in the 11th Schedule to the 3 tier PRIs. Activity Mapping has been completed for 28 subjects. 11 departments have so far issued necessary GOs.

The State Govt. has built a cadre of officials and technocrats specializing in devolved functions. The Panchayat employees have been made into different district cadres. Other than the posts created in the Panchayat bodies, 7 departments of the State Govt. have devolved functionaries at appropriate level of Panchayat till 2008-09. Functionaries for 13 departments have been transferred to Panchayats. Devolution of functionaries has not been done yet.

26. Daman & Diu 27.Puducherry

Not available 1. Panchayats collect taxes such as house tax, profession tax, entertainment tax etc. Panchayats also generate income from fees, lease on rights to sell vegetable, fish etc. 2. Panchayats receive funds from the state budget under the community development sector but PRIs are not able to meet the demands of community development.

12 subjects are fully devolved and 10 subjects are partially devolved. 22 functions have been devolved to the PRI.

Note: Mizoram, Meghalaya and Nagaland are exempt. Delhi has no Panchayats .Information is not available for UTs of Dadra & Nagar Haveli, Andaman & Nicobar Islands, Lakshadweep and Chandigarh.

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Annex-4 Bill No. XXXX of 2009 The Constitution (nth Amendment) Bill, 2009. A BILL further to amend the Constitution of India Be it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:1. (1) This Act may be called the Constitution (nth Amendment) Act, 2009. (2) It shall come into force on such date as the as the Central Government may, by notification in the Official Gazette, appoint. 2. In article 243 of the Constitution insert clause (g), (h), (i) and (j):(g) Village means a village specified by the Governor by public notification to be a village for the purposes of this Part and includes a group of villages so specified. Provided that due care and attention shall be paid to ensure that existing habitations which constitute village in natural sense shall be retained as a unit. (h) District Council means an institution (by whatever name called) of self government constituted under article 243B at the district level for rural and urban areas. (i) Ward means a territorial area within a village Panchayat representing, to the extent possible, a village in the natural sense. (j) Ward Sabha means a body consisting of persons registered in the electoral rolls relating to a Ward. 3. In Article 243 A the following clause shall be added: A Gram Sabha shall exercise such powers and perform such functions at the village level as are prescribed in Schedule 13 (Annex 6) Provided that the Gram Sabha may delegate any of its powers to the Ward Sabha. Provided that no State shall in any way make any law which at variance with the entries in Schedule 13. 4. In article 243 B of the Constitution:(i) for clause (1) of article 243 B, the following clause shall be substituted, namely:-

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There shall be constituted in every State, Panchayats at the village and intermediate level and a District Council representing all rural and urban areas (except metropolitan area) in the district at the district level, in accordance with the provisions of this part. 5. In Articles 243C to Article 243K the word Panchayats shall be substituted by the words Panchayats and District Council and the words Panchayat at district levels be substituted by words District Council. 6. The following proviso shall be added to Article 243C (1) as: Provided that the number of seats in the District Council for rural and urban areas shall be in proportion to their population.

7. Article 243 C (3) (C) and (d) shall be repealed. 8. Article 243 D(1) be amended as: 243D Reservation of seats.- (1) Seats shall be reserved for(a) the Scheduled Castes; and (b) the Scheduled Tribes, in every Panchayat and District Council and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Panchayat and District Council as the population of the Scheduled Castes in that Panchayat and District Council area or of the Scheduled Tribes in that Panchayat and District Council area bears to the total population of that area and such seats may be allotted by rotation to different territorial areas, Panchayats and District Councils where the proportion of population of Scheduled Castes or Scheduled Tribes, as the case may be, in the total population is 5% or more. The second proviso of Article 243D (4) be amended as: Provided also that the number of offices reserved under this clause shall be allotted by rotation to different Panchayats at each level and District Councils where the proportion of Scheduled Castes and Scheduled Tribes, as the case may be, in the total population is 5% or more. In Article 243 D, the following Proviso shall be added: Provided that seats and offices of chairpersons shall be reserved for at least two terms. 9. For Article 243 G , the following shall be substituted:-

Subject to the provisions of this Constitution, the Panchayats and District Councils shall be institutions of self government and exercise appropriate powers and authority and perform appropriate functions including in respect of the matters listed in the Eleventh Schedule in case of Panchayats and Eleventh and Twelfth Schedule in case of District Councils.

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10. Article 243 M (1) and (2) be substituted as: (1) Nothing in this Part, except the provisions of Article 243A concerning Gram Sabha, shall apply to the Scheduled Areas referred to in clause (1) and the tribal areas, referred to in clause (2) of article 244. 11. For Article 243 W the following Article shall be substituted: Subject to the provisions of this Constitution, the Municipalities at the appropriate level shall be institutions of self government and exercise appropriate powers and authority and perform appropriate functions including in respect of the matters listed in the Twelfth Schedule. In Article 243 I, the words or earlier be added after the words every fifth year. 12. Article 243 ZD shall be amended as:1. The District Council will consolidate the plans prepared by Panchayats and Municipalities in the district and prepare an integrated development plan for the district as a whole. 2. There shall be constituted in every State at the district level a District Planning Committee which shall work as a professional / technical advisory arm of the District Council. 3. The District Planning Committee will comprise of officials and experts as decided by the State Government. 4. The District Planning Committee will provide technical and professional support for the planning process in local bodies, setting of district priorities, review of plans of local governments, participative planning and monitoring and implementation of district plan etc to the District Council. 13. Schedule 13 shall be added to the constitution as: Schedule 13 [Article 243A] Powers and functions of Gram and Ward Sabha 1. 2. 3. 4. 5. 6. Competence to resolve disputes in respect of all matters that are included in this Schedule and other matters that may be specified under Nyaya Panchayat Act. Competence to safeguard and preserve the community resources including land, water, forest and minerals Ownership over minor forest produce Planning and management of minor water bodies. Control over Village Panchayat Developmental Programmes : The powers to (i) Control over local plans and resources for such plans;

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(v) 7. (i) (ii) (iii) (iv)

Approve the plans, programmes and projects for social and economic development before such plans, programmes and projects are taken up for implementation by the Gram Panchayat; (iii) Identify and select persons as beneficiaries under the poverty alleviation and other programmes: (iv) Conduct regular social audit at least once in two months to assess the progress of any work or other activities taken up in the village by any agency what so ever, expenditure incurred, quality, quantity and rates of materials purchased, wages disbursed and such like as. Certify utilisation of funds by Gram Panchayat on the basis of social audit. Other Matters Regulation or restriction on the sale and consumption of any intoxicant; Managing village markets by whatever name called; Control over money lending; Control over institutions and functionaries in all social sectors;

(ii)

8 Consultation with Gram Sabha Consultation with concerned Gram Sabhas before-(i) Making acquisition of land for development projects and before re-settling or rehabilitating persons affected by such projects; (ii) Granting prospecting license or mining lease for minor minerals; (iii) Granting concessions for the exploitation of minor minerals by auction. Explanation: The term concerned shall include all Gram Sabhas in the zone of influence of proposed project- industrial, mining, township and such like.

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Annex- 4A

Schedule 13 [Article 243A] Powers and functions of Gram and Ward Sabha 1. 2. 3. 4. 5. 6. Competence to resolve disputes in respect of all matters that are included in this Schedule and other matters that may be specified under Nyaya Panchayat Act. Competence to safeguard and preserve the community resources including land, water, forest and minerals Ownership over minor forest produce lanning and management of minor water bodies. Control over Village Panchayat Developmental Programmes : The powers to (i) Control over local plans and resources for such plans; (ii) Approve the plans, programmes and projects for social and economic development before such plans, programmes and projects are taken up for implementation by the Gram Panchayat; (iii) Identify and select persons as beneficiaries under the poverty alleviation and other programmes: (iv) Conduct regular social audit at least once in two months to assess the progress of any work or other activities taken up in the village by any agency what so ever, expenditure incurred, quality, quantity and rates of materials purchased, wages disbursed and such like as. Certify utilisation of funds by Gram Panchayat on the basis of social audit. Other Matters Regulation or restriction on the sale and consumption of any intoxicant; Managing village markets by whatever name called; Control over money lending; Control over institutions and functionaries in all social sectors;

(v) 7 (v) (vi) (vii) (viii)

8 Consultation with Gram Sabha Consultation with concerned Gram Sabhas before-(i) Making acquisition of land for development projects and before re-settling or rehabilitating persons affected by such projects; (ii) Granting prospecting license or mining lease for minor minerals; (iii) Granting concessions for the exploitation of minor minerals by auction. Explanation: The term concerned shall include all Gram Sabhas in the zone of influence of proposed project- industrial, mining, township and such like.

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Annex- 5 No. J-11011/12/2009-Media Government of India Ministry of Panchayati Raj Krishi Bhavan, New Delhi-110001. Dated: 2nd October, 2009 From: A.N.P. Sinha, Secretary. To: Chief Secretary, All States/UTs.

Subject: Guidelines for the effective functioning of the Gram Sabha. Sir, Gram Sabha is key to the self-governance and transparent and accountable functioning of the Gram Panchayat. The Gram Sabha is the forum that ensures direct, participative democracy. It offers equal opportunity to all citizens including the poor, the women and the marginalised to discuss and criticize, approve or reject proposals of the Gram Panchayat (the executive) and also assess its performance. Observing 2009-10 as the Year of Gram Sabha should further highlight the criticality of the Gram Sabha as a vibrant forum for promoting planned economic and social development of the villages. Gram Sabha and the Constitution/State Acts: 2. The Gram Sabha has been defined by the Constitution as a body consisting of all registered voters of a village within the area of a village Panchayat. Article 243A provides that a Gram Sabha may exercise such powers and perform such functions at the village level as the legislature of a State may, by law, provide. Powers assigned to the Gram Sabha, therefore, vary from State to State. 3. PESA Act, 1996 extended Panchayats to the Scheduled Areas of nine States, viz. Andhra Pradesh, Chhattisgarh, Gujarat, HP, Jharkhand, Maharashtra, MP, Orissa and Rajasthan. The Gram Sabha in PESA areas has inter-alia: Competence to safeguard traditions and customs of the people, their cultural identity, community resources and customary modes of dispute resolution, Mandatory executive functions and responsibilities to approve all plans, programmes and projects; identify beneficiaries for socio-economic development and issue certification of utilization of funds by Panchayats, Right of mandatory consultations in the matters of land acquisition, resettlement and rehabilitation, and mining leases for minor minerals, Powers to prevent alienation of land and restore alienated land, Powers to restrict sale/consumption of liquor, Powers to manage village markets, control money lending to STs, Powers to control institutions and functionaries in all social sectors, etc. Recommendations of the First Round Table, 2 nd ARC on Local Self Governance (LSG) etc.

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The First Round Table of Ministers-in-Charge of Panchayati Raj held in July, 2004 at Kolkata recognized that a strong system of the Gram Sabha is the indispensable foundation of good governance through Panchayati Raj. It recommended: State Governments to review the extant legislation to determine the legislative and other steps to ensure that the powers and functions stipulated in the Article 243A of the Constitution are adequately incorporated. Constitution of Sabhas below the Gram level and empowering them meaningfully. Regular meeting of Gram/Ward Sabhas, etc. 5. The Report of the 2nd ARC on LSG has also acknowledged that the Gram Sabha occupies a central place in the entire scheme of local governance because it provides an opportunity to the individual villager to participate in the local decision making process. The village plan emerges from the Gram Sabha. Moreover, there is a direct relationship between proper functioning of the Gram Sabha and empowerment of the PRIs. It also recommended effective system of robust social audit at all levels of LSG (Annex I). 6. The Prime Minister on 29 June 2004, while addressing the Conference of Chief Ministers had said Panchayat supervision through Gram Sabhas also offers opportunities to make governance transparent and accountable to the citizen. We now have potential to combine the grassroots power of Panchayats with advances in Information Technology to radically alter governance and service delivery, an opportunity we must expand and exploit. Present functioning of Gram Sabha 7. Although the Gram Sabha forum has high potential for grounding democracy at the grassroots, facilitating socio-economic inclusion, participation in planning and implementation of development programmes and ensuring accountability of the Panchayat to the electors, it is generally seen that meetings of the Gram Sabhas are not held regularly and are marked by thin attendance particularly of women and marginalized groups. There is little discussion on the proposals put forward for approval by the Panchayat. Issues of common interest and of the marginalized sections are often not discussed. 8. The general perception is that the task before the Gram Sabha is approval of the lists of beneficiaries, approval for issue of utilization certificates and passing of the annual accounts. Panchayat heads bring their own supporters and potential beneficiaries to attend the meetings so that while the quorum is completed, most of the other electors keep away. Hence, a sense of cynicism has developed about the efficacy of Gram Sabha meetings. 9. State Governments have been rather slow in formulating Rules under the PESA Act, issuing executive instructions and vesting the Gram Sabhas with the requisite powers. Here also, the Gram Sabhas continue to be essentially ineffectual. It is stated to be one of the primary causes behind the rise of Left Wing Extremism in the Scheduled Areas & vicinity. Activating Gram Sabha, Ward Sabha and other Peoples Assemblies 10. For the rural local governance to be effective, energizing Gram Sabhas is the real challenge. There is a need to evolve mechanisms for regular and meaningful meeting of the Gram Sabha, active participation of its members and monitoring its functioning. Guidelines for conducting Gram Sabha meeting are at Annex.II. Good practices that provide for peoples assemblies below the Gram Sabha such as Ward Sabha, Mahila Sabha and Bal Sabha should be promoted. Formation and federation of Self Help Groups of women on the pattern of Kudumbshree of Kerala would in particular expedite roll out of the proposed National Rural Livelihood Mission.

4.

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11. Since the area and population of a Ward Sabha is smaller and commonality of interest greater, people would discuss with close involvement matters that they wish taken up through the Ward Member to the Gram Panchayat and evolve a consensus. Evidentally, the ward Sabha etc. need to meet before the Gram Sabha meeting. 12. The States should make appropriate provisions in their State Panchayati Raj Acts to provide for this. The draft Model Panchayat and Gram Swaraj Act circulated by this Ministry and available on our website. includes provision for Gram/Ward Sabhas (Details at Annex III); assignment to them of powers vis--vis economic development, social welfare and monitoring; power of recall of chairpersons of Village Panchayats; citizen report cards; suo moto disclosure of information, social audit etc. Provisions of PESA Act would be a good reference for other Areas as well. 13. The scope of deliberations in the Gram Sabha meetings can be enhanced to make these more interesting and meaningful, such as: (a) Gram Sabha can be an effective forum for information sharing on programmes, schemes, good practices and matters of common interest for which assistance from the State and Centre is available through different policies and programmes. (b) Gram Sabha can discuss issues such as (i) quality of life and Millennium Development Goals, (ii) social security, gender justice, female feticides, substance abuse (alcohol, tobacco and drugs), hygiene, nutrition, (iii) sustainable development, diversification of agriculture, better cropping practices, opportunities for improving incomes, drought/flood management, soil & water conservation, (iv) infrastructure development, etc. (c) Gram Sabha should fully participate in planning, implementation and performance review of various schemes viz. BRGF, NREGA, NRHM, SSA, ICDS, IWMP, RKVY etc. In preparing plan and shelf of projects, realistic assessment of resources should be made. All State Departments should clearly articulate the role of Gram Sabha in their Policy/Programme/Scheme. 14. The role & responsibilities of Sarpanch, Panch and Secretary should be clearly defined. Sarpanch & Panch should represent the voice of people and not be rendered as mere functionaries of the administration. Secretary, while being accountable to the Gram Sabha through Gram Panchayat, should be duly protected from local pressures. Gram Sabha and Social Audit 15. Social audit is a close corollary of energetic Gram Sabha functioning. It would inculcate respect for downward accountability amongst elected representatives and government officials. If Gram Sabha keeps a close vigil on implementation, leakages & inefficiencies can be virtually eliminated. Essential features of social audit are given at Annex I. NREGA guidelines give comprehensive guidance on Social Audit of NREGA, including public vigilance and verification of the 11 stages of implementation, vulnerabilities of each, steps to ensure transparency and Social Audit, the Social Audit forum of Gram Sabha, which would address three sets of issues: viz. publicity and preparation before the forum; organizational and procedural aspects of the forum; and the Mandatory Agenda of the NREGS Social Audit Forum. This is a good template for other schemes too and State Governments should formulate simple rules/guidelines.

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16. Gram Sabha can monitor & discuss attendance of government functionaries, functioning of schools, dispensaries, anganwadi centres, ration shops and other local institutions. Gram Sabha can discuss reports of the Standing Committees of the Gram Panchayat. 17. Gram Sabha can be an effective forum for familiarizing the electors with the provisions of RTI for eliciting information that they are unable to obtain in the normal course. Gram Sabha and NREGA 18. The responsibilities of the Gram Sabha in NREGA include: Recommend to the Gram Panchayat the development plan and shelf of possible works, Monitor the execution of works, Conduct regular social audit of projects taken up within the Gram Panchayat. 19. The general measures outlined above for empowering and activating the Gram Sabha would be applicable in the case of NREGA also. It may specially be ensured that: A clear process of planning and monitoring is laid out for NREGA, which specifies the Gram Sabha. the role of

Panchayat representatives and Officials are trained to facilitate Gram Sabha participation in the planning process and social audit. NREGA Guidelines for social audit are clearly articulated and institutionalized. Monitoring reports and comments of the Gram Sabha are treated with utmost seriousness. Duty of Gram Panchayats and Govt. officials towards Gram Sabha 20. It is the bounden duty of the Gram Panchayats and government officials to ensure that the Gram Sabhas function properly through close monitoring and mentoring of their meetings and the Gram Sabhas are perceived as an effective fourth tier of local governance. A format for monitoring the functioning of the Gram Sabha, preferably by Intermediate Panchayat and Ombudsman is at Annex IV. 21. Your suggestions and comments on the subject would help us refine these guidelines. Yours faithfully,

(A.N.P.Sinha) Copy to: Principal Secretaries, Panchayati Raj and Planning Deptts., all States/UTs. Advance copy to: District Collectors/CEOs of Zila Parishad, all States/UTs.

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Annex-5 (I) Recommendations of the 2 ARC on Local Self Governance Wherever there are large Gram Panchayats, States should take steps to constitute Ward Sabhas which will exercise in such Panchayats, certain powers and functions of the Gram Sabha and of the Gram Panchayat as may be entrusted to them. An effective system of social audit at all level of local self government is critical to ensure accountability and transparency in these institutions. For establishing robust social audit norms, every State Government must take immediate steps to implement the action points as follows: (a) Social audit should not be individually prescribed for each scheme implemented by the local bodies. A multiplicity of social audits separately prescribed for each scheme undermines the importance of the process. (b) Adequate publicity needs to be given for social audit.
nd

(c) Social audit action taken reports have to be time bound and placed in the public domain. It is advisable to precede a social audit with the action taken on the previous social audit. (d) Opportunity has to be given to people to inspect the records of the local bodies particularly their documentation on property lists, tax assessments and tax collected, measurement books and muster rolls. (e) Adopt a system where a higher level of Panchayats, such as the Intermediate Panchayat, provide details of the comparative performance of all Panchayats falling within its jurisdiction, so that people can get an idea of where their Panchayat stands in respect of each service delivered. (f) Social audit of Gram Panchayats by the committees of Gram Sabha should be encouraged. (g) Community Based Organisations be involved in the social audit.

Suo motu disclosures under the Right to Information Act, 2005 should not be confined to the seventeen items provided in Section 4(1) of that Act. But other subjects where public interest exists should also be covered. Evaluation tools for assessing the performance of local bodies should be devised wherein citizens should have a say in the evaluation. Tools such as Citizens Report Cards may be introduced to incorporate a feedback mechanism. ----------------

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Annex-5(II) Guidelines for Conducting Gram Sabha Meetings Organizing Gram Sabha Meetings Organization of Gram Sabha is the responsibility of the Gram Panchayat and the Gram Panchayat may assign this task to a standing committee or a committee constituted for the purpose. The decision to convene a Gram Sabha may be taken as per the provisions of the State Panchayat Act, which may contain certain mandatory provisions, such as a minimum of four Gram Sabha in an year, and certain enabling ones, such as on the request of voters, in case of urgency etc. The venue for the Gram Sabha meetings should facilitate the participation of all concerned, irrespective of their caste, religion or political affiliation. The agenda should be finalized keeping is view decisions of the Panchayat, public demand and suggestions, directions of State Government, etc.. A notice about a Gram Sabha meeting must reach the people at least 7 days in advance. This would help in preparing for participation in the Gram Sabha in a serious manner. There are different ways in which the notice can be issued. Written notices can be put up in public places, the meeting can be announced by the beating of drums in the village, Self Help Groups (SHGs) or other micro-level outfits can give due publicity within their groups. In addition to information about place, date and time, the notice should also contain, in two or three lines, a brief description of the agenda. Conduct of the Gram Sabha Meetings The meeting of the Gram Sabha should be chaired as designated in the State Act. The official so designated should act as the secretary. At the beginning of the meeting, the Chairperson or the Secretary should read out the decisions of the previous Gram Sabha and explain the important activities/events in the Panchayat. If something could not be done, the reasons may also be explained. The main agenda items may subsequently be taken up one by one. The Chairperson should take care to ensure that every one is allowed to speak, and a few people do not dominate the proceedings. Special care needs to be taken with respect to women and marginalized groups. If the Gram Sabha is convened for planning, matters like review of the previous years performance, success as well as failures, new directions, deviations if any from the plan and the reasons for that, resource mobilization, allocation, beneficiaries of each scheme, benefiting area, criteria, activities, organization, funds etc. have to be discussed. A time should be allotted for individuals or groups to present proposals and resolutions. The Gram Sabha may, during the meeting, take a decision to form its own committees to look into an issue and make suggestions, or reports. People should also be encouraged to provide voluntary labour or other contributions in the meeting. At the end of the meeting, the minutes should be read out and signed by the persons designated to do so.

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Action to be taken after Gram Sabha Meetings If any of the Panchayat representatives or officials does not participate in a Gram Sabha despite invitations, the reasons thereof should be ascertained by the Gram Sabha after the meeting is over. The indifference of the absentees can be pointed out to them and in due course, this would cause a change in their mindset and they will start participating. If some persons or communities do not attend three consecutive Gram Sabha meetings, the matter should be discussed in the Gram Panchayat, and they should be motivated to attend. The minutes of the meeting should be displayed in the Panchayat office, including details of beneficiaries selected, projects recommended etc. The Village Panchayats should discuss and act on the minutes of the Gram Sabha. Special reports made by committees of the Gram Sabha should also be discussed. If suggestions of the Gram Sabha need to be forwarded to any of the Panchayats or government officials, action should be taken. --------------------

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Annex -5(III) Main provisions in the Draft Model Panchayat and Gram Swaraj Act regarding the Ward Sabha/Gram Sabha 1. Each ward will have a Ward Sabha consisting of all adult persons in the village whose names are included in the electoral roll. The Gram Sabha shall comprise of all persons whose names are included in the electoral roll relating to the Village Panchayat. 2. The powers and duties of the Ward Sabha inter alia are as follows: a) Development: Assisting the Village Panchayat in collection and compilation of data required for formulating plans; generating proposals; fixing priorities and rendering assistance for implementation of development schemes; identification of beneficiaries; suggesting location of public utilities. b) Social Welfare: Verifying eligibility of persons for various welfare schemes; assisting the Parents-Teachers Association; promoting literacy, education, health, child care and nutrition; assisting in public health activities. c) Monitoring: Getting information about development works; exercising social audit; awarding utilization certificates; following up on decisions of Ward Sabha; pointing out deficiencies in water supply, street lighting etc. and suggesting remedial measures; monitoring and rendering assistance to beneficiary communities engaged in developmental activities. d) Awareness Generation: Imparting awareness on matters of public interest such as cleanliness; preservation of environment; promoting harmony and unity; co-operating with Village Panchayat in sanitation. 3. The powers and duties of the Gram Sabha inter alia are as follows: a) Development:- Identifying, prioritizing and approving plans, programmes and projects for social and economic development; control over local plans including tribal sub-plan; making recommendations in annual plan of Village Panchayat; identifying beneficiaries; formulating and approving development plans for Abadi lands; supervising the construction, repair and maintenance of public works such as water sources, roads, lighting etc. b) Monitoring:- Ascertaining and certifying the proper utilization of funds by the Village Panchayat; social audit for plots allotted to weaker sections; seeking clarifications from the chairperson/ members of the Village Panchayat about any activity, scheme income and expenditure; considering the report of audit and accounts of the Village Panchayat; exercising control through the Village Panchayat over institutions and functionaries in social sectors. c) Village Management:- Managing natural resources; managing public land; ownership and management of minor forest produce; regulating and controlling gamesshows, shops, eating houses etc.; managing village markets; to be consulted before making the acquisition of land and resettlement & rehabilitation; making recommendations prior to grant of prospecting licence or mining lease for minor minerals

35

in the area and grant of concession for exploitation of minor minerals by auction; making arrangements for and reporting on epidemics, natural calamities etc. d)Others: Ensuring participation of people; mobilizing voluntary labour; promoting peace and harmony; general awareness; granting loans for the purpose of providing medical assistance and other benefits for indigent and in other way under privileged persons. 4. The Gram Sabha has the power to recall the Chairperson of a Village Panchayat if more than half the members vote to do so through a secret ballot. 5. At least 4 meetings of the Ward Sabha are to be held every year presided by a member of the Village Panchayat. The Village Panchayat is mandated to consider the suggestions made by the Ward Sabha and to place before it a report of development programmes undertaken in the previous year and those proposed to be undertaken in the following year. 6. The Gram Sabha is mandated to meet at least 4 times during the year. The Gram Sabha meeting is to be presided over by the chairperson of the Village Panchayat. The Village Panchayat has to place before the Gram Sabha a report regarding the development programmes undertaken during the previous year and those that are proposed to be undertaken in the current year as well as expenditure and statement of accounts. The audit and performance audit report is to be discussed in the Gram Sabha. The chairperson may require any officer of the Village Panchayat to attend the meeting. 7. State Governments should introduce a performance evaluation tool of Citizen Report Card for incorporating the feedback from citizens regarding the performance of the Panchayat. Suo moto disclosure under the Right to Information Act is to be extended to other subjects where public interest exists. Government should also ensure the conduct of social audit.

36

Annex -5(IV) Monitoring Format for Gram Sabhas FORMAT A: GENERAL INFORMATION ABOUT VILLAGE PANCHAYAT (To be filled every time elections to GP are held) Name of Gram Panchayat Name of the Village/s Name of the Block Name of the District No. of Wards No. of Panchayat Members SC, ST..,OBC.,Women., Total.. Total Adult Population as per data SC ST OBC Total used for conduct of elections Male Female FORMAT B: FUNCTIONING OF GRAM SABHA (To be filled every time a Gram Sabha Meeting is held) Schedule of Meeting (i) S.No. (ii) Months in which General Body meetings are to be held in the year Month Quorum required:

Organization of Meeting (i) (a) Date of the meeting held: (b)When was the meeting notice issued? (ii) What were the main Agenda of the meeting? (iii) Were regular absentees from Gram Sabha meetings particularly requested to attend? (a) If yes, how? Conduct of Meeting (vi) How many people attended the meeting (Number) ______________ (a) SC (b)ST (c)Women (d)OBC (e)Others (v) Did members of SC/ST/Women participate in the discussions? (a) If Yes, issues raised by each group (vi) (a) Did NGOs attend the Gram Sabha meeting? If Yes, their role?

(vii) Were the minutes of the last meeting and the action taken thereon discussed? (a) If yes, a brief on the action taken (viii) What were the topics taken up in the meeting:

37

(ix)

Were all members given a chance to express their opinions before taking decisions? (a) If Yes, how? Minutes of meeting (x) Have the minutes been finalized? (a) If Yes, enclose a copy.

S. S.No.

Topics Views expressed taken up (indicate who expressed these views)

Decision Mode of arriving at taken decision (consensus or any other method)

(xi) Have minutes of the meeting been put on GP notice board and online? (a) Notice Board (b) Online (c) No NREGA (xii) How did the Gram Sabha participate in the planning of NREGA and preparation of a shelf of projects? Give names of the work and the proposed follow up (xiii) Were there any complaints regarding (If yes, specify) (a) Registration of families (b) Distribution of Job cards, (c) Receipt of work application (d) Selection of work taken up by GP including location. (e) Payment of wages: non-payment, delayed payment, underpayment, payment to non-existent workers, payment on non-existent works, payment being less than minimum wages. (f) Quality of work, (g) Others. (xiv) Number of people demanding jobs under NREGA and action proposed? (xv) Mention specifically if social audit of NREGA work was conducted and outcomes thereof. FORMAT C: PLANNING, TRANSPARENCY AND ACCOUNTABILITY (To be filled every three months) (i) Have the details of all beneficiaries of poverty alleviation and development projects been put on the Walls / Notice Board of Gram Panchayat/Online ? (a) If Yes, specify the items (ii) Specify role played by Gram Sabha in social audit of various programmes. What has been the follow up on the last such exercise? (iii) How is the Gram Sabha involved in grassroots / bottom up planning process leading to Gram Panchayat Plan? If no, reasons thereof. If yes, details thereof.

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Annex-6 PESA,1996 THE PROVISIONS OF THE PANCHAYATS (EXTENSION TO THE SCHEDULED AREAS) ACT, 1996No.40 OF 1996 (24th December, 1996) An Act to provide for the extension of the provisions of Part IX of the Constitution relating to the Panchayats to the Scheduled Areas. Be it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:Short title 1. This Act may be called the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 Definition 2. In this Act, unless the context otherwise requires, Scheduled Areas means the Scheduled Areas as referred to in Clause (1) of Article 244 of the Constitution. Extension of part IX of The Constitution 3. The provision of Part IX of the Constitution relating to Panchayats are hereby extended to the Scheduled Areas subject to such exceptions and modifications as are provided in section 4. Exceptions and modifications to part IX of The Constitution 4. Notwithstanding anything contained under Part IX of the Constitution, the Legislature of a State shall not make any law under that Part which is inconsistent with any of the following features, namely:(a) a State legislation on the Panchayats that may be made shall be in consonance with the customary law, social and religious practices and traditional management practices of community resources; (b) a village shall ordinarily consist of a habitation or a group of habitations or a hamlet or a group of hamlets comprising a community and managing its affairs in accordance with traditions and customs; (c) every village shall have a Gram Sabha consisting of persons whose names are included in the electoral rolls for the Panchayat at the village level; (d) every Gram Sabha shall be competent to safeguard and preserve the traditions and customs of the people, their cultural identity, community resources and the customary mode of dispute resolution; (e) every Gram Sabha shalli. approve of the plans, programmes and projects for social and economic development before such plans, programmes and projects are taken up for implementation by the Panchayat at the

39

ii. (f)

(g)

(h)

(i)

(j) (k)

(l)

(m)

village level; be responsible for the identification or selection of persons as beneficiaries under the poverty alleviation and other programmes; every Panchayat at the village level shall be required to obtain from the Gram Sabha a certification of utilisation of funds by that Panchayat for the plans, programmes and projects referred to in clause(e); the reservation of seats in the Scheduled Areas at every Panchayat shall be in proportion to the population of the communities in that Panchayat for whom reservation is sought to be given under Part IX of the Constitution; Provided that the reservation for the Scheduled Tribes shall not be less than one-half of the total number of seats; Provided further that all seats of Chairpersons of Panchayats at all levels shall be reserved for the Scheduled Tribes; the State Government may nominate persons belonging to such Scheduled Tribes as have no representation in the Panchayat at the intermediate level or the Panchayat at the district level: Provided that such nomination shall not exceed one-tenth of the total members to be elected in that Panchayat; the Gram Sabha or the Panchayats at the appropriate level shall be consulted before making the acquisition of land in the Scheduled Areas for development projects and before re-setling or rehabilitating persons affected by such projects in the Scheduled Areas; the actual planning and implementation of the projects in the Scheduled Areas shall be coordinated at the State level; planning and management of minor water bodies in the Scheduled Areas shall be entrusted to Panchayats at the appropriate level; the recommendations of the Gram Sabha or the Panchayats at the appropriate level shall be made mandatory prior to grant of prospecting licence or mining lease for minor minerals in the Scheduled Areas; the prior recommendation of the Gram Sabha or the Panchayats at the appropriate level shall be made mandatory for grant of concession for the exploitation of minor minerals by auction; while endowing Panchayats in the Scheduled Areas with such powers and authority as may be necessary to enable them to function as institutions of self-government, a State Legislature shall ensure that the Panchayats at the appropriate level and the Gram Sabha are endowed specifically with(i) the power to enforce prohibition or to regulate or restrict the sale and consumption of any intoxicant; (ii) the ownership of minor forest produce; (iii) the power to prevent alienation of land in the Scheduled Areas and to take appropriate action to restore any unlawfully alienated land of a Scheduled Tribe; (iv) the power to manage village markets by whatever name called; (v) the power to exercise control over money lending to the Scheduled Tribes;

40

(vi) the power to exercise control over institutions and functionaries in all social sectors; (vii) the power to control over local plans and resources for such plans including tribal subplans; (n) the State Legislations that may endow Panchayats with powers and authority as may be necessary to enable them to function as institutions of self-government shall contain safeguards to ensure that Panchayats at the higher level do not assume the powers and authority of any Panchayat at the lower level or of the Gram Sabha; (o) the State Legislature shall endeavour to follow the pattern of the Sixth Schedule to the Constitution while designing the administrative arrangements in the Panchayats at district levels in the Scheduled Areas. Continuance of existing laws on panchayats: 5. Notwithstanding anything in Part IX of the Constitution with exceptions and modifications made by this Act, any provision of any law relating to Panchayats in force in the Scheduled Areas, immediately before the date on which this Act receives the assent of the President, which is inconsistent with the provisions of Part IX with such exceptions and modifications shall continue to be in force until amended or repealed by a competgent Legislature or other competent authority or until the expiration of one year from the date on which this Act receives the assent of the President; Provided that all the Panchayats existing immediately before such date shall continue till the expiration of their duration unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of that State or, in the case of a State having Legislative Council, by each House of the Legislature of that State.

K.L. MOHANPURIA, Secy. To the Govt. of India

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Annex - 7
Comparison between existing and proposed provisions of Article 171(2). Composition of Legislative Councils as per Proposed composition of Legislative Councils Article 171 (2) at present One third members to be elected by electorates Two third members to be elected from among elected consisting of municipalities, district boards member of rural and urban local bodies by an electorate and such other local authorities in the State as consisting of elected members of these local bodies and: the Parliament may be law specify Seats to be allocated to Districts in proportion of their population Seats to be allocated to rural and urban bodies in proportion to the respective population Not less than one third seats allocated to rural local bodies to be reserved for Gram Panchayats One twelfth of members to be elected by an Nil electorate comprising university graduates One twelfth of members to be elected by an Nil electorate comprising teachers One third to be elected by members of One sixth to be elected by members of Legislative Legislative Assembly from among persons Assembly from among persons who are not members of who are not members of the Legislative the Legislative Assembly Assembly The remainder to be nominated by the The remainder to be nominated by the Governor in Governor in accordance with Clause 5. accordance with Clause 5.

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Annex-8 Government of India Ministry of Panchayati Raj Sardar Patel Bhavan, New Delhi. Subject:Record of discussions in the meeting of the Principal Secretaries/Secretaries, States Departments of Panchyati Raj held on 26.9.2008 under the chairmanship of Shri A.N.P.Sinha, Union Secretary, Panchayati Raj regarding the recommendation of Administrative Reforms Commission on Local Governanace and BRGF. List of participants is at Annexure-I. Status of Implementation under BRGF Shri T.R. Raghunandan, Joint Secretary, made a presentation on the progress of BRGF. Main points are as follows: (i) Expenditure on BRGF: Rs. 1841.00 crore should be spent by October, 2008. Sanctions for 1190.00 Crore have been issued. Proposals for Rs 233.00 Crore are with IFD. Proposals for Rs 418 Crore are under process. Constitution of District Planning Committees (PRIs): 2.

(ii)

DPCs have not been constituted in Gujarat, Maharashtra, Punjab and Uttarakhand holding up a possible release of Rs. 371 crore. The status last reported is as follows:
State Gujarat Amount due (Rs in rores) 101.29 Status of constitution of DPCs DPCs are likely to be constituted within two months.

Maharashtra

253.57

Elections to DPCs are likely to be held before November 2008.

Punjab

15.65

Elections to DPCs have been held. Nominations of 1/5th members are under consideration. After these nomination, notifications for DPCs to be issued. Elections to the DPCs will be held after completion of Panchayat elections in October, 2008.

Uttarakhand

41.84

State Arunachal J &K Tamil Nadu Tripura Sikkim

Amount (Rs. in Crore) 14.47 45.85 108.04 12.21 12.97

Reasons Draft perspective plan received. Comments of MOPR to be sent to the State for convening the meeting of HPC. No response No response Meeting of HPC scheduled on 18.10.08 was postponed at the request of MoPR since the notice was too short. State may convene the meeting of HPC at the earliest. HPC had been scheduled on 14.10.08. State has been requested to prepare plans again though the Panchayats in a participatory manner vide D.O.

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No.N-11019/412/2007,dated 13th October 2008 from JS(R).

(iii) Following States are eligible but have not claimed any development grant so far: (iv) RSVY: RSVY: The balance entitlement yet to be claimed by the States of Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Maharashtra, Uttar Pradesh and West Bengal is Rs. 511.00 crore as follows:
Amount State (Rs in Crores) Andhra Pradesh Arunachal Pradesh Assam Bihar Gujarat Jharkhand Karnataka Kerala Maharashtra Uttar Pradesh West Bengal 53.50 15.00 45.00 217.50 22.50 7.50 15.00 15.00 30.00 60.00 30.00 Implementation slow. Reminder issued to Secretary, Panchayati Raj from JS(R) on 13.10.08. Proposal for 5th installment received. Physical progress report awaited. Video Conference held with the districts on 19.09.08 to expedite the implementation. Video Conference held with the districts on 18.09.08 to expedite the implementation. Video Conference held with the district on 19.09.08 to expedite the implementation. Reminder being issued. Expected to be completed within this Financial Year. Chief Secretary has reviewed the status and issued instruction for monitoring. Video Conference held with the district on 19.09.08 to expedite the implementation. Video Conference held with the district on 18.09.08 to expedite the implementation. Expected to be completed within this Financial Year. Reasons

(v)

Capacity Building Grant:

Implementation of capacity building programme is slow in Bihar and Uttar Pradesh, which have the largest entitlement. J&K, Manipur and Punjab have not sent any capacity building proposal so far. Maharashtra has not sent its revised 5-year plan holding up the next release. Proposals of Chhattisgarh, Sikkim, Tripura and West Bengal are under consideration. (vi) Progress in preparation and approval of plans for 2008-09 under BRGF: Meetings of HPCs have been held for the plans of 2008-09 in Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Rajasthan, Sikkim and Orissa. Proposals for release for balance to M.P. against plan of 2008-09 are under consideration. State High Powered Committee, Orissa has directed that the comprehensive district plans be prepared again in respect of Orissa. As regards, Chhattisgarh and Rajasthan, the requisite expenditure level has not been met for release to be possible.

44

In case of Sikkim, participatory process has not been followed in preparation of the District Plans. State has been requested to prepare plans again though the Panchayats in a participatory manner. Miscellaneous:

(vi)

Meetings of HPCs have been held for the plans of 2008-09 in Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Rajasthan, Sikkim and Orissa. Proposals for release for balance to M.P. against plan of 2008-09 are under consideration. State High Powered Committee, Orissa has directed that the comprehensive district plans be prepared again in respect of Orissa. As regards, Chhattisgarh and Rajasthan, the requisite expenditure level has not been met for release to be possible. In case of Sikkim, participatory process has not been followed in preparation of the District Plans. State has been requested to prepare plans again though the Panchayats in a participatory manner. ARC recommendation on Local Governance

3.

Union Secretary (Panchayati Raj) gave an overview of recommendations of the 2nd ARC in its Sixth Report on Local Governance An Inspiring Journey into the Future. Of the total 256 recommendations, 56 are exclusive to Rural Governance, 129 to Urban Governance and 71 common to both. Ministry of Panchayati Raj has written to all States/UTs for eliciting their views on 56+71 recommendations. While formal views of the States/UTs will be taken on record for appropriate action in due course, deliberations in this meeting would be considered a brain storming exercise and collective views expressed by the participants. Views as arrived at in the meeting on various recommendations are given in Appendix -I The meeting concluded with a vote of thanks to the Chair. *************

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Annexure-1 Meeting of Principal Secretaries of PR Department of States/UTs held on 26/9/2008 List of Participants Sl.No NAME & DESIGNATION Ministry of Panchayati Raj 1. Shri A.N.P.Sinha, Secretary 2. Shri Avtar Singh Sahota, Joint Secretary 3. Shri T.R.Raghunandan, Jiont Secretary 4 Shri S.K.Chakarabarti, Deputy Secretary 5. Shri P.K.Bhatnagar, Under Secretary States 1. Shri K.C. Saha, Pr. Secretary, PR Bihar 2. Prem K.Gera, RC Gujarat 3. Shri Baldev, Secretary, RD Maharashtra 4. Shri Anup Wadhawan, Secretary, PR,RD & Uttarakhand Cooperation 5. Shri S.C. Sawhney Jammu & Kashmir Additional Secretary, RD 6. Shri Anjani kumar Jharkhand OSD, RCs Office, Delhi 7. Shri Arvind Risbud Karnataka Resident Commissioner 8. Shri D.K.Singh Kerala Addl. Res.Commissioner 9. Mrs. Veena Ghanekar Madhya Pradesh Commissioner, Panchayati Raj 10. Shri Anand M. Sharan, Addl. R.C. Haryana 11. O.P. Mahapatra, Jt. Secretary, Panchayat & RD Orissa 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Shri J.P. Aggarwal, Director,Panchayati RaJ Smt.Saroj Dash, SIRD Shri N.S.Sandhu, SIRD Shri S.M.Raiger, Deputy Secretary, PR Shri Kisumi Lal, Addl. Dir & Jt. Secretary, PR Shri Sudhan Chandola, Joint Director, PR Ms. Anupama Alky, Dy. Secretary, PR Smt. Madhumita Ray, Jt Secretary, PR & RD Shri E-Vallavan, Director, LAD Dr. P.S.Batra, Jt. Resident Commissioner Orissa Orissa Punjab Rajasthan H.P. Uttar Pradesh Sikkim West Bengal Puducherry Daman & Diu,

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Appendix I Follow up action on the recommendation of ARC

Gist of ARC Recommendation Views that emerged in the meeting

The Principle of Subsidiarity (3.1.1.12) 1. Article 243 G be amended so as replace the word may with Acceptable. Till such time Constitution is amended, MoPR may frame a Model Law shall so that State Legislatures vest Panchayats with powers for States to consider adoption. and authority to make them function as institutions of self governance in respect of all functions. This will make it obligatory for the States to devolve all the functions listed in 11th Schedule to the PRIs.

Strengthening the Voice of Local Bodies(Para 3.1.2.4) 1. Parliament may by law provide for constitution of Legislative Acceptable Council in each State consisting of members elected by the local - The recommendation may be made governments. applicable for States presently having Legislative Council. Third tier of government should also have a stake in making laws in the State Legislatures. Besides, presence of elected representatives of Local Bodies in the Legislature Council tends to develop an organic linkage between State Government and Local Bodies. Structure of Local Bodies (Para 3.1.3.11) 4. Article 243 B (1.) be amended to enable State Legislatures to Acceptable setup Panchayats at appropriate levels. - Flexibility needed. But it should not lead to The existing provisions make it mandatory for the States to just one tier Panchayat. setup PRIs at three levels, which may not be required in smaller States/UTs. 5. Existing provisions (Article 243D) relating to reservation of Acceptable seats to be retained for providing adequate representations to weaker sections and women. 6. Members of Parliament and State Legislatures should not Acceptable become members of local bodies. - Proceeding of the meeting of Local Bodies Presence of MPs and MLAs subdues the emergence of local may however be sent to MP/MLA leadership. concerned. 7. Article 243C (1) enabling State Legislatures to make Acceptable provisions for composition of Panchayats to be retained.

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Acceptable 8. Article243C(2&3) be substituted by Subject to the provisions of this part, the Legislature of a State may, by law make provisions with respect to composition of Panchayats and the manner of elections provided that in any tier there shall be direct election of at least one of the two offices of Chairperson or members. 9. Setting up of a District Council in every district with Acceptable representation from both urban and rural areas. This will remove the artificial divide between rural and urban areas, which are organically, socially, economically and spatially linked. The district council will also be a single undivided Government at district level. Acceptable 10. Article 243B(2) be substituted so as to provide for constitution of District Council in every district with powers and functions in accordance with provisions of Articles 243G and 243W. The Electoral Process (Para 3.2.1.12) 11. Delimitation and reservation of constituencies be entrusted to Acceptable the State Election Commissions. 12. Local Government Laws of States to provide for adoption of Acceptable Assembly electoral rolls for election to local bodies. 13. The Registration of Electors Rules 1960 be amended to Acceptable define a part as a compact geographical unit. 14. Boundaries of part and enumeration block to coincide for Acceptable convergence of census data and electoral rolls. - It is important and should be implemented promptly. 15. Reservation of seats be done on either of the following two Acceptable principles (a) Single member constituency: rotation be after 2 terms of 5 years each, or (b) Reservation of seats by list system in respect of multi member constituency. 16. Elections of members of DPCs and MPCs be entrusted to the Acceptable State Election Commissions.

48

Constitution of the State Election Commission (Para 3.2.2.6) 17. Governor to appoint SEC on recommendations of a Acceptable collegiums comprising of CM, Speaker of State Legislative - Procedure for appointment of CEC and SEC Assembly and Leader of Opposition. should be similar. 18. Setting up of mechanism to bring Election Commission of Acceptable India and State Election Commissions on a common platform. Correcting the Urban Rural Imbalance in Representation in Legislative Bodies(Para 3.2.3.4) 19. In order to set right the electoral imbalance between the No comments, since it does not concern Local urban and rural population in view of rapid urbanisation, an Bodies. adjustment of territorial constituencies both Lok Sabha and the Assembly within a State should be carried out after each census. Devolution of Powers and Responsibilities (Para 3.3.1.7) 20. A clear delineation of functions for each level of local Acceptable government on a continuous basis. 21. Each subject matter law to provide for appropriate Acceptable devolution. Relevant Union and State laws to be suitably amended. ISC - Devolution of 3Fs to PRIs (Action Point 65) 22. For new laws, a Local Government Memorandum to be Acceptable added. Framework Law for Local Bodies (Para3.4.20) 24. Government of India should place before Parliament a Acceptable framework law for local governments under Article 252. This law to provide for broad principles of devolution of powers, responsibilities and functions to local governments and communities, based on (i) Principle of Subsidiarity, (ii) Democratic Decentralisation, (iii) Delineation of functions, (iv) Devolution in real terms, (v) Convergence and (vi) Citizen Centricity.

49

The State Finance Commission (SFC) (Para 3.5.2.18) 25. Working of SFCs to be as recommended by Twelfth Finance Acceptable. However, since SFCs have not grow Commission, which are as under :. makers would like to accept/reject such SFC rec (a) Principal recommendation will be accepted by the State having substantial financial implications, dependin Governments. the States. (b) SFCs to follow the procedure adopted by CFC for transfer of resources. (c) While estimating the resource gap, SFCs to follow a normative approach in assessment of revenue and expenditure. (d) People of eminence and competence be appointed in the SFCs. (e) States to prescribe qualifications for appointment of members of SFCs. (f) A permanent SFC Cell be setup in Finance Department of every State. 26. Article 243I (1) be amended to include at such earlier time Acceptable after the words every fifth year (so as to synchronise the functioning of SFCs with that of Central Finance Commission). 27. Qualifications of persons eligible for appointment as Acceptable members of SFCs be prescribed by law. 28. SFCs should evolve objective and transparent norms for Acceptable. SFCs to follow the procedure adopted b devolution and distribution of funds. resources. 29. ATRs on recommendations of SFCs compulsorily to be Acceptable placed in the State Legislature within six months. 30. Incentives be built into devolution from Union to States for Acceptable improving devolution from States to local bodies. 31. Common formats as recommended by Twelfth Finance Acceptable Commission be adopted and annual accounts and other data must be updated. 32. SFCs to carry out thorough analysis of the finances of the Acceptable local bodies for suggesting improvements in their working. 33. SFCs should evolve norms for staffing of local bodies. Acceptable 34. Provision of mechanism for review of the implementation of Acceptable recommendations of the SFCs.

Capacity Building for Self Governance (Para3.6.16) 35. Capacity building of elected /appointed functionaries of local Acceptable bodies to attend to organisation building requirements as also professional and skills up-gradation. 36. Local bodies be encouraged to outsource specific functions Acceptable to public/ private agencies. Outsourcing be backed by development of capacity for monitoring and oversight of outsourced activities. 37. Networking of training institutes to be ensured by nodal Acceptable agencies/ State Governments. 38. For capacity building, suitable schemes need to be drawn up Acceptable under State Plans for documentation of case studies, best practices and evaluations of performance.

50

39. Training of elected representatives and personnel to be a Acceptable continuing exercise. 40. Academic research, both theoretical and applied, for capacity Acceptable building by organisations like Indian Council of Social Science Research to be encouraged. 41. A pool of experts and specialist be set up by a federation/ Acceptable consortium of local bodies.

Decentralised Planning. (Para3.7.5.6) 42. District council be set up in all districts with representation Acceptable. District Council to be considered as an e form rural and urban areas and DPCs will either not exist or to governance and DPC. Moreover, rural-urban is a con become advisory arm of the District Council. Article 243(d) be economically and spatially. amended for this. 43. For the interim period, DPCs to be set up in all States and these bodies should be sole planning body for the districts. ISC DPCs to plan constitutionally mandated role (Action Point 71) 44. Existing development authorities should become technical Recommendations No. 43 to 49 to be holistically ex /planning arms of the DPCs and ultimately of the District Panchayati Raj. Rajasthan model of DPCs to be exam undertake social, economic and spatial planning. All Council. if required, to play supporting roles. 45. A dedicated centre be set up in every district for providing inputs to the LBs for preparation of plans. 46. Strict compliance of the guidelines issued by the Planning Commission for preparing plans for the district 47. States Governments to adopt participatory methodology for local level planning. 48. States to design a planning calendar prescribing time limits within which the LBs are to finalise their plan. 49. State Planning Boards to integrate District Plans with State Plans. Planning Commission to take initiative for this.

Accountability and Transparency (Para 3.8.6) 55. State Governments to set up independent audit committees at Acceptable district level. - As large funds are flowing to PRIs, there should be professionals while strengthening the social audit. 56. Separate Standing Committee of State Legislature for local Acceptable bodies on lines of PAC be set up. 57. A single member local body Ombudsman to be appointed to Acceptable look into complaints of corruption/maladministration against functionaries of local bodies. He should have authority to investigate cases and submit reports. 58. Complains of irregularities in elections to LBs to be handled Acceptable by SECs. 59. Functions be delegated to the lowest appropriate functionary Acceptable to facilitate access to citizens. 60. Each local body to have in-house mechanism for redressal of Acceptable public grievances. 61. State Governments to take immediate steps for establishing Acceptable robust social audit norms - Copy of Social Audit Rules to be obtained from Ke developing a national model.

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62. Suo moto disclosures of information to cover all matters of Acceptable public interest. 63. Suitable mechanism be set up to evolve a system of - MoPR to circulate a model. benchmarking of performance of local bodies. 64. Evaluation tools for assessing the performance of local - MoPR to circulate a model. bodies to be devised and citizens to have a say in that.

Accounting and Audit (Para 3.9.22) 65. States to adopt the accounting system for ULBs as provided Robust and simple Accounting system for PRIs bein in the National Municipal Accounts Manual. separately by Ministry of Panchayati Raj alongwith States. 66. Accounts of LBs to be audited like those of the government Acceptable companies and C&AG to prescribe guidelines for empanelment - O/o C&AG may indicate as to whether they have t of CAs. the huge task of audit of Local Bodies and if not, wh options. C&AG also to frame guidelines for audit of 67. Existing arrangements between C&AG and the States Acceptable Governments for Technical Guidance and Supervision (TGS) to be institutionalised. 68. Simple and comprehensible accounting formats should be Acceptable. Being done by MoPR along with CAG, adopted. 69. Independence of Director, Local Fund Audit (DLFA)/ Acceptable designated authority should be ensured. The head of this body to - Background information in the matter to be obtaine be appointed form a panel vetted by C&AG. Kerala and Maharashtra. 70. Release of Finance Commission grants to local bodies to be Acceptable made conditional on acceptance of technical supervision of C&AG. 71. Audit reports on LBs to be placed before the State - Not required. The Audit Report of State is not subm Legislature. Parliament. 72. State Laws to contain suitable provisions for access to Acceptable relevant information/records by DLFA/C&AG. - RTI in any case provides for it. 73. States to ensure capacity building of LBs for accounting and Acceptable auditing standards. 74. System of outcome auditing to be gradually introduced. For this, key performance indicators need be decided and announced in advance. 75. Adoption and monitoring of prudent financial practices in LBs be institutionalized by States by enacting a law on Fiscal Responsibilities for Local Bodies.

Acceptable - Background information in the matter to be obtaine West Bengal & Maharashtra. Acceptable - MoPR to obtain a copy of the existing ZP Account Maharashtra.

Information and Communication Technology (Para 3.10.1.2) 76. Information and Communication Technology to be utilized Acceptable for simplification of processes, transparency, accountability, and - Minutes of the meeting taken by MoPR on e-Panch delivery of services. States. Space Technology (Para 3.10.2.8) 77. Space Technology to be harnessed for creation of Acceptable information base and for providing services 78. Local Bodies to be one point service centers for web-based Acceptable and satellite-based services.

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Size of the Gram Panchayat (Para 4.1.3.5) 79. Size of Gram Panchayat should be such so as to make it a Acceptable viable unit of self-governance and ensure effective popular - Viable size for plains: 5 to 10 thousands. participation. - Hilly/Desert: 2 to 5 thousands. (Depending on dista GP Headquarters). Ward Sabha its Necessity (Para 4.1.4.4) 80. Ward Sabhas to be constituted in the case of large GPs and Acceptable. MoPR to work out model guidelines. such Sabhas may exercise powers and functions of GPs as may be entrusted to them.

Personnel Management in PRIs (Para 4.1.5.4) 81. Panchayats to be empowered to recruit personnel and to Acceptable. regulate their service conditions within State laws. - In Maharashtra, there is a separate cadre for Local - In West Bengal, there is Block Cadre for Group-D, ISC Recruitment of functionaries through Panchayat Group-C and State Cadre for Group-A. Group-D & Service Commission (Action Point 70) appointed respectively by Executive Officer of Bloc Executive Officer of ZP. For Group-A officers, recru State Government. 82. Detailed review of staffing pattern to be undertaken in order Acceptable. MoPR to undertake a study and circulat to implement the policy of PRI.

PRIs and the State Government (Para 4.1.6.8. 83. States acts Providing for approval of Panchayat budgets by All delegations to Panchayats should be subject to a higher tier to be abolished. - Higher tier not to approve budget for lower tier in r This will ensure the autonomy of PRIs as envisaged in Article resources and untied funds. 243G. 84. State Governments not to have power to suspend or to State Govts. should have power to suspend or rescin rescind resolution passed by PRIs or to take action against passed by PRIs, if irregular, assigning reasons in wr elected representatives. 85. Election related complaints to be investigated by SECs who Acceptable will submit the recommendations to the Governor. - SEC to exercise power on the lines of CEC. 86. In the cases requiring immediate action against a Panchayat Acceptable or an elected representative, State Government to approach - Ombudsman may conduct enquiry and take approp Ombudsman for urgent investigation. Ombudsman to send his - Ombudsman, as a quasi-judicial authority, should s to Governor. report to Governor through Lokayukta. 87. Reasons for disagreement with the recommendations of Acceptable Ombudsman / Lokayukta to be made public. - Lokayukta not be kept in the loop.

Position of Parastatals (Para 4.1.7.8) 88. Parastatals not to undermine the authority of PRIs. Acceptable - Undermine to be defined. 89. DRDAs to be merged with Zilla Parishads as also the Acceptable. Merger of DRDAs into ZPs has not imp District Water and Sanitation Committees (DWSC) ISC also recommends merger (Action Point 89) As the democratic decentralisation is now firmly established, there is no need for separate agency like DRDA. 90. District Health Society and FFDA to be restructured so as to Acceptable have organic relationship with PRIs. - Organic Relationship to be defined.

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91. Setting up of special committees outside PRIs to be avoided. Acceptable If such committees are necessary, they should either function under of supervision of PRIs or their relationship with PRIs should be worked out. 92. Creation of community level bodies with decisions at higher Acceptable. level to be avoided. Where necessary, such bodies to be accountable to PRIs. Activity Mapping (Para 4.2.3.10) 93. Comprehensive Activity Mapping for all items of Eleventh Acceptable. Schedule and the process to cover all aspects viz. planning, budgeting & provision of finance. 94. Central Government to take similar action for Centrally Acceptable. Sponsored Schemes. ISC CSS on 29 subjects of Eleventh Schedule be to PRIs (Action Point 68) transferred

Devolving Regulatory Functions to the Panchayats (Para 4.2.4.2)

95. Regulatory functions such as rural policing, enforcement of Acceptable building byelaws, issue of birth, death, caste and resident - Regulatory function to be properly defined on the p certificates, issue of voter identity cards etc. to be devolved upon subsidiarity. PRIs. PRIs may also manage small endowments and charities. 96. Identification and devolution of regulatory functions to be a continuing exercise.

Resource Generation by the Panchayats (Para 4.3.5.3) 97. Comprehensive exercise to be taken up for broadening and 97 to 103 Acceptable deepening of revenue base of Local Bodies. Exercise to cover (i) - MoPR may issue model policy guidelines for use b potential for taxation, (ii) fixation of realistic tax rates (iii) widening of tax base and (iv) improved collection. This may be one of the TOR of the Thirteenth Finance Commission. ISC Similar Action to be taken up by SFCs (Action Point 69) 98. Common property resources of Village Panchayats be - do identified and made productive for revenue generation. 99. Expansion of tax base of PRIs by State Governments by law - do and making it obligatory for them to levy taxes in that domain. 100. Higher level LBs to be encouraged to run utilities on a - do sound and viable financial basis. 101. Expanded tax domain to include levies on registration of - do cattle, restaurants, large shops, hotels, cyber cafes etc. 102. State Governments role to be limited to prescribing band - do of rates for taxes. 103. PRIs to be given share in the royalty from the minerals - do collected by State Governments. This aspect be considered by SFCs.

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104. State Governments should empower PRIs to collect cess on May be accepted for minor mining activities. For oth royalty from mining activity and also to impose and collect Central Govt. to settle issues with State Govts. special surcharge on such activities. - Some States are in favour of a separate Terms of R CFC. 105. Innovative steps by States and PRIs for augmenting their Acceptable resources be rewarded. Better performing PRIs be rewarded - A mix of monetary and non-monetary rewards to b through special incentives. 106. In tax domain assigned to PRIs, Village Panchayats to have Acceptable. primary authority. In cases of taxation having inter Panchayat ramifications, PRIs at higher level be given concurrent powers.

Transfer of Funds to the Panchayats (Para 4.3.7.5) 107. All allocations to PRIs to be untied except for major CSSs At least 30% of funds be given untied to PRIs. and special programmes of States. - Dual policy, one for CSS and the other for States t - MoPR to vigorously pursue centrality of PRIs in C - Institutional mechanism against misutilisation of u strengthened. 108. State Finance Rules to be modified to incorporate separate Acceptable provisions for State and District sector budgets, the later indicating district-wise allocations. 109. Separate Panchayat Sector line in State Budget. Acceptable 110. States to use software of Ministry of Panchayati Raj for Acceptable speedier transfer of funds to PRIs. 111. Release of funds to PRIs to be equally spaced in two Acceptable installments so as to give adequate time to PRIs to utilize funds during the year itself

PRIs and Access to Credit (Para 4.3.8.2) 112. PRIs to be encouraged to raise loans from financial Acceptable institutions for infrastructure. States to lay down the limits of - The responsibility of lending institutions to be defi borrowing only.

Local Area Development Schemes (Para 4.3.9.5) 113. Funds for all public development schemes in rural areas be Acceptable routed exclusively through Panchayats. Local Area Development - All public development schemes in rural areas sh Authorities etc. should immediately be wound up and their defined. functions and assets transferred to appropriate level of Panchayat. With popularly elected PRIs in place to take care of local development needs, there is no justification for existence of separate development bodies. 114. The Schemes of MPLAD and MLALAD be abolished. It does not concern PRIs. Rural Development (Para 4.4.7) 115. Territorial / Jurisdictional / Functional convergence in the Acceptable. implementation of the Centrally Sponsored Schemes to be ensured.

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116. Centrality of PRIs to be ensuredGram/Ward Sabha be accepted as the cutting edge participatory body. Committees dealing with functions of Eleventh Scheduled be subsumed by PRIs. Local Centre Committees be formed for smaller areas. These Committees be deliberative bodies and accountable to Gram/Ward Sabha. 117. Nodal Ministries to lay down broad guidelines leaving scope for flexibility. 118. All Centrally Sponsored Programmes to have properly demarcated goals and mechanism for assessing their socioeconomic impact. Task to be assigned to NSSO.

Acceptable.

Acceptable. Acceptable - MoPR may follow up in the matter.

Information, Education and CommunicationIEC (Para 4.4.8.6) 119. Multi pronged approach to be adopted for dissemination of Acceptable information and creating awareness about Panchayati Raj. - MoPR may interact with I&B. 120. I&B Ministry to devise mechanism in consultation with Ministry of Panchayati Raj, MoRD, MoAgr and other Ministries for implementing this activity. 121. Rural broadcasting to be a full-fledged independent activity and the broadcast to be primarily in local languages prevalent in the area.

Acceptable - MoPR may interact with Central Ministries concer Acceptable - MoPR may interact with M/o I&B.

Role of Panchayats in Delivery of Services (Para 4.5.4) 122. Immediate transfer of local level activities of elementary Acceptable education, preventive and promotive healthcare, water supply, sanitation, environmental improvement and nutrition to appropriate tiers of PRIs. 123. State Governments need to prepare overarching service Acceptable. MoPR to circulate Model Guidelines. delivery policy outlining the framework for departments to frame guidelines. Resources Centre at the Village Level (Para 4.5.5.6) 124. ICT and Space Technology enabled resources centers be set Acceptable. To be incorporated in the e-PRI. up at Village and Intermediate Panchayat level for resource mapping and generation of local information base. 125. These centers to be used for documenting local knowledge Acceptable and heritage. 126. Post-school education system to focus more on farm and Acceptable animal husbandry, computer applications, commercial cropping and soil and water management. Local Government in the fifth Schedule Areas (Para 4.6.1.2.3) 127. Union and State Laws impinging upon provisions of PESA Acceptable to be modified immediately. 128. Centre to issue directions under Proviso 3 of Part A of Fifth Acceptable. Schedule to States showing reluctance to implement PESA. Effective Implementation of PESA (Para 4.6.1.4.4)

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129. Due importance be given to annual reports from Governors of States and these reports to be placed in public domain. 130. PESA rules to provide for presence of women members to the extent of atleast 33%. 131. Each State to set up a group to look into strengthening of Administrative machinery in the State to go into (i) special administrative arrangements, (ii) provision of hardship pay, (iii) other incentives and preferential treatment in accommodation and education.

Acceptable. However, reports of Governors need no domain. Acceptable Acceptable - MoPR may setup a committee to look into it.

Effective Implementation of the Tribal Sub-Plan (TSP) (Para 4.6.1.5.3) 132. State Governments to set up special planning units to Acceptable. prepare Tribal Sub Plans (TSP). 133. A portion of allocation for TSP to be made non-lapsable Acceptable on the lines of NE -States and a special cell be set up in the Ministry of Tribal Affairs to - Criteria for earmarking non-lapsable funds may be monitor expenditure from this fund. 134. Impact Assessment Report in respect of States covered Acceptable. MoPR to follow up. under PESA to be prepared every year through a national level institute which may also rate the performance of the State.

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