An agreement for credit of US$ 84 million (equivalent) from World Bank for the Bihar Panchayat Strengthening Project was signed today at New Delhi. Mr. Nilaya Mitash, Joint Secretary, Department of Economic Affairs, Ministry of Finance signed on behalf of Government of India and Mr. Michael Haney, Operations Advisor, World Bank, India on behalf of the World Bank.

On behalf of Government of Bihar, Mr. Amitabh Verma, Principal Secretary, Department of Panchayati Raj signed the documents

The Objective of the project is to support the State Government in promoting inclusive, responsive and accountable gram panchayats in six districts, namely Patna, Nalanda, Bhojpur, Saharsa, Supaul and Madhepura. Successful experimentation and learning in these six districts can be scaled upto other districts under other Government programmes.

The new project has five main components viz (i) Gram Panchayat Sarkar Bhawan (ii) capacity building for gram panchayats (iii) strengthen the State Government capacity to manage a gradual decentralization and empowerment process (iv) panchayat performance grant and (v) project management and coordination.

The closing date for the project is December 2017.

DSM/RS/KA

(Release ID :96820)

Credit agreement to strengthen gram panchayats through capacity building, state decentralization support, performance grants, and coordination. A government credit agreement finances a Panchayat Strengthening Project to develop inclusive, responsive and accountable gram panchayats in six districts as a pilot for scaling. The project comprises five components: Gram Panchayat Sarkar Bhawan, capacity building for gram panchayats, strengthening State capacity for decentralization, panchayat performance grants, and project management and coordination, with a defined implementation timeframe and closing date.