The Hindu Business Line : AP Govt mulls revamp of panchayat system

The two main reasons for restructuring are misappropriation in a majority of minor panchayats and shoestring financial resources that have left a number of local bodies with no funds to take up developmental works.

Hinting at a revamp, the Minister for Panchayat Raj, Mr J.C. Divakar Reddy, told a news conference on Monday that the State has 21,943 panchayats as against about 15,000 in Uttar Pradesh, a State with a greater population. "They (panchayats) should be made viable," he said.

"Misappropriation in major panchayats is just 10 per cent, while 50-60 per cent of minor panchayats are found to be indulging in misappropriation," he said. Of the 21,943 panchayats, there are 1,319 major ones.

He, however, said the Government is in no hurry to right-size the local bodies. The Minister asserted that this decision would not be imposed. "Let them (people) come with a suggestion."

Meanwhile, the Government has decided to send sarpanches and other representatives of local bodies to Kerala, Karnataka, Madhya Pradesh and Maharashtra to study the panchayat system there. The delegation will visit those States in the first week of February and submit a report to the Government.

This is part of the devolution exercise prompted by the Prime Minister. The Government had identified at least nine subjects, including agriculture, animal husbandry, fisheries, health and rural development, where devolution of powers would be taken up.

The Government had taken up "activity mapping" of key departments' to identify parameters such as funds, functions and functionaries.

The Panchayat Raj Minister said the Government would link all the villages in the States with black-top roads at a cost of Rs 590 crore. Of this, Rs 90 crore would be Central funds, the rest being bank loans.

There are 16,700 villages in the State that do not have black-top roads.

The Minister also vowed to bring in an Act to set up district development committee, giving powers to panchayats during the Budget session.

The AP Economic Restructuring Project (APERP), being taken up with the assistance of World Bank in five phases, would be extended to nine more districts. At present, the project is being implemented in Adilabad, Karimnagar and Warangal districts.

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AP Govt mulls revamp of panchayat system