‘Immediate review and replacement': Grants slashed, thinktank under rural ministry now faces parliamentary panel heat

Indian Express

a day ago

A parliamentary panel has 'strongly' recommended 'immediate review and replacement' of the current administration of the National Institute of Rural Development and Panchayati Raj (NIRD&PR), a thinktank under the Ministry of Rural Development (MoRD), which is facing troubles after the Centre cut its budgetary allocation.
The standing committee on Rural Development and Panchayati Raj, which is headed by Congress member Saptagiri Sankar Ulaka, said, 'The Committee were enlightened during their recent study visit about the centralized control and mismanagement by current administration.'
The NIRD&PR is facing challenges after the Centre slashed its budgetary allocation to Rs 1 lakh for financial year 2025-26 from Rs 73.68 crore in revised estimates of the 2024-25 fiscal and Rs 75.69 crore in 2023-24.
'In this connection, the Committee observe that since the 2025 budget presentation, NIRD&PR employees and faculty have sought clarity and administratorship from the Director General (DG) regarding a strategy for self-sustainability and institutional transition. Unfortunately, there has been no formal communication, no inclusive consultation, and no clarity on the way forward,' the committee noted in its report tabled in Lok Sabha on Tuesday.
The committee said, 'Internal file notings and verbal instructions are being used based on the Zero budget allocation by Government of India which is creating panic and distrust within the organization. The Committee also observe that, despite sufficient Internal Generated Revenue (IGR) and corpus fund interest, there are delays in salary disbursements, medical reimbursements, and vendor payments-causing financial distress, especially among SHG and contractual staff.'
The committee said it had also learnt that there was no plan or direction from the director general to mobilise resources or bring sponsored projects. 'There is pressure on individual faculty to generate income for her/his monthly salary. This centralized control has weakened the institution's operational integrity and create serious apprehensions about the administration's commitment to upholding the assurances made to faculty and staff at the time of their recruitment,' it said.
'Therefore, in order to ensure effective leadership and institutional stability, the Committee strongly recommend for immediate review and replacement of the current administration, which has failed to maintain faculty trust or organizational coherence till the grant already extended by the Government may be continued,' the committee said.
The committee also recommended to the ministry to expeditiously constitute a committee under its supervision to oversee administrative and governance matters so as to prevent the situation from going from bad to worse.
On the finance ministry's move to disengage the NIRD&PR, the committee said, that the need of the hour was to 'forge deeper strategic collaboration between MoRD and NIRD&PR through structural reforms, decentralized decision-making, adequate allocation of budgetary grant-in-aid and with greater autonomy and allow the institute to thrive and grow within the existing MoRD framework'.
The committee further said it strongly recommended that keeping in view the 'immense contribution made by NIRD&PR in the progress and development of nation building in all spheres in rural areas', the rural development ministry should 'take initiatives and come out with a strategic plan/new roadmap for the institute' and 'prevail upon the DoE [Department of Expenditure under the Ministry of Finance] to halt the ongoing process of disengagement and allowing the institute to continue and sustain itself'.
Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister's Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers' Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More