Sharing of Interest Accrued on Project Fund on Pro-Rata Basis Between Centre and State Under IWDP

The Department of Land Resources in the Ministry of Rural Development has decided that the interest accrued on project fund under the Integrated Watershed Development Program (IWDP) would be shared on pro-rata basis between Centre and State. In a letter sent to all Principal Secretaries/Secretaries of the Nodal departments implementing IDWP in all States it has been communicated that the sharing would be in the ratio of 11:1, subject to the condition that State Government provides a certificate as to the release of State matching share within the stipulated time while submitting proposal for release of next installment. Also, in the absence of such certificate, the entire amount will be treated as Central Share. So far, the interest accrued on the utilized fund in the project fund account is treated as Central share and the amount equal to the interest is deducted while considering the releases of Central Share for subsequent installments.

IWDP is Centrally Sponsored scheme with a cost norm of Rs. 6000 per ha which is shared between Centre and State 1.e. Rs.5500 and Rs.500 per ha, respectively, The State matching share is to be released by the State Governments within 15 days of the receipt of Central Share.

The main objective of the IWDP is to restore the ecological balance by harnessing, conserving and developing degraded natural resources such as soil, vegetative cover and water. The outcomes are prevention of soil run-off, regeneration of natural vegetation, rain water harvesting and recharging of the ground water table. This enables multi-cropping and the introduction of diverse agro-based activities, which help to provide sustainable livelihoods to the people residing in the watershed area. In addition, there is a Scheme of Technology Development, Extension and Training (TDET) being implemented to promote development of cost effective and proven technologies to support watershed management.

*****

AKT/ST/BS