The District Rural Development Agency (DRDA) has traditionally been the principal organ at the District level to oversee the implementation of different anti poverty programmes. In the context of the requests from the States to review the administrative costs admissible to the DRDAs, an inter-Ministerial Committee was constituted in February, 1997, under the Chairmanship of Shri M. Shankar, Additional Secretary and Financial Advisor of the erstwhile Ministry of Rural Areas and Employment to review the support for administrative costs permitted under various programmes of the Ministry. On the basis of the recommendations of this Committee, a Centrally Sponsored Scheme for strengthening of DRDA Administration was launched w.e.f. 1.4.99. With this, a separate provision has been made to meet the administrative expenses of the DRDAs.

Objectives
The primary objective of the new Scheme of DRDA Administration is to professionalise the DRDAs so that they are able to effectively manage the anti poverty programmes of the Ministry of Rural Development and interact effectively with other agencies. The DRDAs will maintain a distinctive identity with Panchayati Raj Institutions.

Salient features of the Scheme

Organisational Structure
Each District will have its own District Rural Development Agency. The DRDA would be headed by a Project Director, who should be of the rank of an Additional District Magistrate. In respect of such States where DRDA does not have a separate identity, a separate Cell to be created in the Zilla Parishad to maintain separate accounts, so that these are capable of being audited separately.
The DRDA should emerge as a specialized agency capable of managing the Anti Poverty Programmes of the Ministry on the one hand and to effectively relate these to the overall effort of poverty eradication in the District.
Actual execution of programmes will be handled outside the DRDAs and the DRDA's role will be to facilitate the implementation of the programmes, to supervise/oversee and monitor the progress, to receive and send the progress reports as well as to account for the funds.
 

DRDAs will develop the capacity to build synergies among different agencies involved, for the most effective results.
If DRDAs are to be entrusted with programmes of other Ministries or those of the State Governments, it would be ensured that these have a definite Anti Poverty focus.
The Chairman, Zilla Parishad would be the Chairman of the Governing Body of the DRDA. The DRDA shall also have an Executive Committee.
The Project Director should cause the annual accounts of the DRDA to be prepared not later than 30th June. These shall be duly audited.
Staffing pattern
The staffing pattern is expected to reflect a clear departure from that of a purely administrative organisation. The staffing structure of DRDAs includes positions for Planning for Poverty Alleviation, Project formulation, Social Organisation and Capacity Building, Gender concerns, Engineering Supervision and Quality Control, Project Monitoring, Accountancy and Audit functions as well as Evaluation and Impact Studies.
Each DRDA would have the following wings:
(a) Self employment wing
(b) Women's wing
(c) Wage-employment wing
(d) Engineering wing
(e) Accounts wing
(f) Watershed Wing, (wherever DDP/DPAP/IWDP programmes are under implementation)
(g) Monitoring and
(h) General Administration

Administrative Cost
The administrative cost per District is fixed as follows:-
Category A District (<6 blocks) Rs.46lakhs
Category B District (6-10 blocks) Rs.57lakhs
Category C District (11-15 blocks) Rs.65lakhs
Category D District (>15 blocks) Rs.67lakhs
The above limits are applicable from the year 1999-2000. This ceiling will be raised every year, on a compounding basis, up to 5% to set off the increases due to inflation, etc. While the States follow their own salary structure, the ceiling indicated above would be strictly adhered to. Any increase over and above the ceiling would be met entirely by the State Government concerned.

Personnel Policy
The following principles are laid down in respect of personnel of DRDAs:
DRDA should not have any permanent staff and no longer any direct recruitment be allowed.
Taking employees on deputation to the DRDA for specific periods has the advantage of better choice of staff, flexibility in staffing pattern and of motivating the staff.
The Project Directors, Project Officers, APOs and all technical posts are to be manned by officers with proven capability and motivation and are to be selected in an objective manner by specific selection committees.
In the selection of Project Directors and APOs, emphasis should be on selecting officers of young age. The PDs and APO should not be more than 40-50 years of age and in any case not more than 50 years of age.

Target
The DRDA Administration being a staff Scheme, no physical targets are set under the Scheme.

Funding
This being a Centrally Sponsored Scheme, it is funded on a sharing basis between the Centre and the States in the proportion of 75:25. Allocation of funds to the Districts is based on the ceiling prescribed in the Guidelines depending upon the number of Blocks in the District.

Release of funds
The Central Assistance under the Scheme is released directly to the District Rural Development Agencies (DRDAs)/Zilla Parishads. 10% of the total entitlement of DRDAs in a State is earmarked for the State Headquarter.

Performance during 1999-2000
During the year 1999-2000, only a sum of Rs.110.00 crores was approved at RE stage for the Scheme. The entire amount was released to all the States/UTs proportionately.
The State wise releases made during 1999-2000.

Performance during 2000-2001
During 2000-01, a provision of Rs.220.00crores has been approved at BE stage. The first installment of 50% of Central Share based on the prescribed ceiling, amounting to Rs.130.00crores has already been released to all the States/UTs towards 1st installment of Central Share. The State wise financial position along with 1st installment release during 2000-01.