Nagaland Village Development Board; - A grass root level institution in Nagaland

Abstract

The Ketsapomi village in phek district of Nagaland pioneered the concept of ‘Village Development Board’ 38 years ago. The Government of Nagaland supported initiating “Village Development Board” advocated by Shri A.M. Gokhale IAS, then the Deputy Commissioner, Phek. The VDB is a concept based on traditional lines which appeared in the form of the Village Common Fund Committees (VCFC) at Ketsapomi village in Phek district of Nagaland in 1976 on an experimental basis. The concept of VDBs where villagers themselves chalk out the needs of their Village and apprise the government about their requirements was a welcome to all the federal villages of Nagaland. It was a conscious effort by The Government of Nagaland to incorporate villagers directly into the decision-making process and to break away from ‘Top down approach’ to ‘Bottom up approach’ in planning and execution of rural developmental activities in every recognized village. The concept of VDBs was socially accepted in all recognized Villages in Nagaland in 1980 under Clause 12 of Section 12 the Nagaland Village and Areas Council Act 1978.

The concept of Village Development Board relied heavily on the involvement of grass root people and it also required the line department to dedicate technical support and financial resources to ensure that the ‘Village Plan’ envisioned by the villages becomes reality.  The essence of The Village Development Board (VDB) Board is that all permanent residents of the village form the General body of the Village Development Board. A Management Committee is formed from the General Body Chosen by the Village Council concerned and a Secretary is selected to manage the affairs of the VDB for a period of three years. Besides women and youth are to constitute 25% each of the total of the management committee. The management committee helps formulate “One Village One Plan” and then continue to help to oversee the works that are being carried out.  The autonomy in deciding Village Plan by the villager themselves and funded by the Government Machinery is the USP of the Village Development Board in Nagaland.

Key Words: Village Plan, Village Development Board, Grass root level institution, Decentralized Planning, Devolution of Plan, Village Linkage, People’s participation in village development, Bottom up approach, One Village One plan.

Pioneer in Village level Decentralized planning – Ketsapomi Village, Nagaland.

An important function of village council is to constitute Village Development Board (VDB), a statutory body to assist the village council in executing development policy programs. The VDB is a village linkage enshrine under the Village Council in Nagaland. The institution of the VDBs, which are synonymous with the concept of decentralized grass root level planning in Nagaland, was first set up in 1976 in Ketsapomi village in Phek district on an experimental basis. Nevertheless, on seeing the success of the Ketsapomi VDB, a mass campaign was launched since 1980 to expand the coverage of this unique institution in all existing 918 recognized villages in 1980-81. VDBs were thereafter gradually constituted in the remaining parts of the State and the concept institutionalized with the enactment of VDB Model Rules, 1980. The initial allocation of Rs. 5000.00 per VDB was provided by the Government under what was known as common funds, which later was termed as matching cash grant scheme. The VDBs were advised to open account in the local SBI and commercial banks for deposit of this fund, which provided for the registration of the VDBs. An intensive interaction by the Department officers with village elders and council members including public leaders was initiated during the period from 1981 to 1982. Based on overwhelmingly positive response, the concept of VDB was socially accepted at a General Conference of the Chairmen of all Village Councils and VDB Secretaries at Kohima from 20 - 22 May 1980. The concept of VDBs was extended and installed to all existing 918 recognized villages in 1980-81, and at present there are 1143 VDBs with 2,24,915 rural households under 74 Block in 11 District in the State who takes part in the “Village Plan” planning process.

The VDBs are involved in all phases of developmental activities as part of their responsibilities. These include receipt of allocation of funds, selection of beneficiaries or schemes, monitoring of progress of works & expenditure and completion of schemes. They are accountable organization, where book keeping of accounts is mandatory, open and subject to any audit of its account.

Along with their role in the identification of beneficiaries for development programmes, they are to formulate and supervise village developmental scheme; help government agencies in carrying out developmental works in the village, receive grant-in-aid, donations, subsidies from the government or any other agencies; to provide security for due payment of loan by any permanent resident of the village from the government, bank or financial institutions, to lend money from its fund to the deserving villagers; to enter into any loan agreement with the government, bank or any financial institutions.

Present socio economic scenario and VDBs in Nagaland

Nagaland emerged as a State, carved out of the Naga Hills districts of Assam and North Eastern Frontier Agency (NEFA) province in 1963. The State has a population of 19.80,602 lakh with an area of 16.579 Sq.kms as per 2011 census. The population of Nagaland forms 0.16 percent of India in 2011. Nagaland has 11 District with 114 Sub-District and 1428 villages as per Census 2011. The density of population is 119 per sq.km. Nagaland has a rural population of 14, 06,861 which constitutes 71.03% and urban population of 5,73,741 which constitutes 28.97% of the total population. Overall literacy ratio is 80.11% in 2011.

Nagaland has 3, 99,965 households as per Census 2011. Naga Schedule Tribe households of the state comprise of 85.40% (3,49,022 households) and Non-Tribal 14.60% (50,943 Households).

Naga Schedule Tribe households can be further classified into rural and urban Naga Schedule Tribe. The rural Naga Schedule Tribe households stand at 2,66,800 out of which 1, 57,118 BPL households, which accounts for 58% of the rural households and as to 82,222 urban Naga Schedule Tribe households.

			2000-2001		2010-2011
Districts	Blocks	VDBs	Household	VDBs	Household
Kohima	4	83	24,196	88	24469
Mokokchung	6	75	23,126	78	23574
Tuensang	8	99	20,934	107	22195
Mon	6	94	26,120	98	26694
Wokha	5	111	14,312	118	14894
Zunheboto	6	167	18,833	167	18900
Phek	5	89	20,935	91	21263
Dimapur	4	189	28,762	195	30521
Kiphire	3	74	13,165	77	13419
Longleng	2	26	12,665	30	13137
Peren	3	76	13,475	79	14126
Total	52	1083	216,523	1128	223192

With a view to deliver development process more effectively in the rural areas, the State Government has created another 22 (twenty two) new Rural Development Blocks which are to be functional with effect from 1^st of April, 2012. As on 2012, the total number of Rural Development Block has increase from 52 to 74 blocks. There are now 1143 recognised villages having VDBs with 2,24,915 rural household in the State.

Village Development Board: - Organizational Structure and the operational framework

Village Development Board is a bottom up approach concept in the development of the rural villages in Nagaland. However all the activities and technical support are guided by the domain expert ranging from the Block level to District level to State level. The following are the duties and responsibilities of each tier that support the Village Development Boards.

State Level-Directorate of Rural Development:

The Directorate of R.D has now become one of the major Departments of the state with a full-fledged Directorate at the state level. There are 11 DRDAs in the 11 Districts with 74 Blocks spread over Nagaland.

Director (RD):-

-General Administration & Direction.

-Preparation of all allocation of funds.

-Frame policy and plan annual activity.

-Coordinate with Govt. of Nagaland & GOI for general matters.

-Proposal & sanctions of fund releases.

District Level-District Rural Development Agencies:    

During the year 1995, the State Rural Development Agency (SRDA) was disbanded, re-organized and constituted District Rural Development Agency (DRDA) in all the districts of the state to achieve greater decentralization in the planning process. The DRDA has a Chairman of the Governing Body, who is sitting MLA. The Deputy Commissioner of the district functions as the Chief Executive Officer assisted by Project Director within the district.

A. CEO DRDA/ VICE-CHAIRMAN DP & DB 

-Control, administer and review of DRDA & VDB activities.

-Approves/Reviews VDBs Schemes through DP & DB (District Planning & Development Boards).

-Monitor Schematic Implementation of the VDBs.

B. Project Director, DRDA

-Administrative control of Blocks.

-Submit shelf of VDB schemes to DPB. 

-Control/Release of VDB funds.

-Report and Returns, Proposal. 

-Maintain Records.

Block Level-Block Development Officers:

The Government of India created 15 Tribal Development Blocks during 1955-56 and 6 Community Development Blocks in 1964-65. At present there are 74 blocks in the state.

Block Development Officer

-Monitor fund utilization and progress of VDB activities.

-Ensure selection of priority based schemes.

-Ensure ground implementation of schemes, issues Completion Certificates & recommend Payment.

Village Level-Village Development Boards

The Village Level Development Agencies called the “Village Development Boards” (VDBs) has been formed in 1980 under Clause 12 of Section 12 of the Nagaland 

-Identify & Select priority based schemes through General Body Meeting.

-Ensure Ground implementation of Programmes.

-Ensure Community participation.

-Ensure Transparency & Proper Fund Utilization.

-Maintain Account, Muster Rolls & Beneficiary Records.

Operational framework of Village Development Board

Duties of the VDB:

The Village Development Board as per the directive of the Village Council formulate schemes, programmes of action for the development and progress of the Village, groups of individuals or for individuals in the Village, either using the village community or other funds.

Composition of VDB:

All permanent residents of a Village constitute the General Body of the VDB’s and from among them a Management Committee of the VDB’s is formed with not less than 5(five) members and up to 25(twenty five) members who are selected/chosen by the village council. Village council member and non members along with one fourth ¼ of women of the total members formed the Management Committee of the VDB’s. The Management Committee of the VDB’s are entrusted with the management of the Village Development Boards and the funds of the VDB’s for 3 (Three) years unless decided otherwise by the Village Council by resolution.

The essence of VDBs is that Government servants can be chosen as members of the Management Committee, with the permission of the government. A member of the Management Committee may be replaced by a resolution of the VC, for reasons to be recorded in the Resolution. The affairs of the Village Development Board is manage by a secretary popularly known as VDB’s Secretary who is selected from among themselves and gets a honorarium between Rs. 1000-3000/-.  A quorum of not less than 51% of the Management Committee is required to pass resolutions; The Management Committee is expected to meet every month. The secretary presents financial statement at the annual general body meetings. No Village council Chairman or Head GB or Village Administration Head etc. shall be permitted to hold the post of the VDB Management Chairman. However, Deputy Commissioner or the Additional Deputy Commissioner of the District is to be the ex officio Chairman of each VDB in the District. All funds/accounts are operated jointly between the Chairman/DC and the Secretary of the VDBs; VDBs are to maintain their Fixed Deposit Accounts as this forms the main basis for the existence of the VDB; Funds received and programme/scheme selection are taken up during the monthly meeting; A panel of auditors approved by the Chairman audits VDBs accounts annually.

The basic objectives of the VDBs are:

- To make each of the VDBs as vibrant, with powers to take decisions and implementation of schemes within the guidelines both for state and Centrally Sponsored Scheme (CSS);

- To enable themselves to mobilize its internal resources for investment in various income generating and economically productive activities;

- To check migration of educated unemployed rural youth to towns by ensuring self-employed opportunities through their involvement in taking up income generating and economically productive activities in the rural areas;

-To gradually transform the rural areas into the standards of semi-urban areas in so far as availability of the basic common facilities is concerned and

-To facilitate acting as financial intermediaries to manage their own rural credit and loan activities

Procedures for operating bank Account and financial transaction:

Fixed Deposits:

1.       No VDB shall be allowed to withdraw its Fixed Deposits since the Fixed Deposits form the main basis for the existence of the VDB. VDBs which withdraw their Fixed Deposits will cease to exist and hence for the will NOT be eligible for any developmental funds from the rural Development Department. In respect of VDBs whose term Deposits have expired, the concerned Chairman (DC’s/ADCs) shall direct these VDBs to renew their fixed Deposits Terms for another five years.

2.       Any withdrawal from the bank must accompanied with an authorization letter, signed by the Management Committee members present in the meeting and present it to the Chairman in triplicate for approval. Only on been approved by the chairman one copy will be attached to the Cheque for withdrawal. The second copy will remain in the Chairman’s office and the third copy will be brought back to the Village by the Secretary of the Management committee to be read out in the next month’s meeting. However, if the Chairman has some doubts, but not serious, he shall record his remark on the copy of the resolution to be kept on his office and record his approval on the other 2 copies. In such an event, the Chairman shall send the copies of his remarks to the members of the VDB Management Committee and the Chairman of the Village Council for their information. In case,  if the Chairman has serious doubts the propriety of the resolution he may return the resolution with his remarks for reconsideration or fix a date for an open public meeting in the village and put the matter before the public or the General Body of the VDB for arriving at a decision.

3.       No cheque shall be honored unless it is accompanied by a copy of the Management Committee’s resolution authorizing such withdrawals signed by all members present in the particular meeting, which must be attended by not less than 51% of the total members of the Management Committee and there after approved by the concerned Chairman of the VDB.

4.       The VDB account shall be operated jointly by the Chairman and Secretary of the Management Committee of the VDB.

Meeting and its conducts

Every decision or recommendation of the Village Development Board shall be in the form of resolution passed in a regular monthly meeting by all the members present in such a meeting. The meeting is open to the public.

The meeting of the VDB shall have three very important features:

Firstly, the VDB Secretary write down past month’s financial statement on a Black Board and explains all queries.

Secondly, each loanee (who agrees to be present in every meeting) progress and repayment are evaluated by the Management committee Members and public.

Thirdly, other issues in connection with Village Development will be debated.

At the end of each monthly public meeting the Secretary of the Management Committee shall brief to the Chairman of the VDB showing:-

(a) Names of Village Development Board Members absent.

(b) Names of Loanees absent.

Meetings Minutes and Record

The Secretary of the Management Committee shall maintain the following records which may be inspected by any member of the village in monthly public meeting:-

1. Register showing a record of meetings held, meeting minutes and absentees of members and loanee.
2. A file of Money expenditure resolution.
3. A cash register showing transaction of savings and current accounts and cash drawls made under Grant-in-Aid, JRY and other developmental programmes of the VDB.
4. A separate register for Schemes selected under Grant-in-Aid JRY etc and details of money as well as disbursals under the above mentioned programmes.
5. Secretary of the Management committee shall check his record against the records kept in the Chairman’s office every 3 months.
6. Secretary of the Management Committee shall keep a file for vouchers providing money transactions (payments & receipts).
7. Secretary of the Management committee shall keep a file letters to and from the Chairman.
8. Secretary shall keep a file for other letters.
9. All correspondence mad by the VDB shall be in triplicate. 1copy will be sent to the Chairman of the VDB for information. 1 copy will be kept in Management Committee’s record and 1 copy will be sent to the addressee.

Intending Beneficiaries:

Any person permanently residing in the Village may apply for any project, loan, or desiring to be included in any development schemes must tabled to the Management Committee in the monthly meeting. Only after the Management committee is convinced with the project and all documents in order will sanction the amount. A loanee must attend all monthly meeting till the loan is fully liquidated. In case of non repayment of the loan, the village council may impose any penalty, provided that the penalty shall be utilized for discharging the liability.

Audit and Accounts:

The Village Council may cause the VDB’s to be audited at such times as it may decide. The deputy Commissioner will render necessary assistance in auditing the accounts.

The Management Committee of the VDB shall place before the Village Council Annual Account before 30th April every year covering the period from 1st April of the previous year to 31st March of the current year. In addition, the Management Committee shall also place before the general body of the VDB annual accounts of all amounts received under Grant-in-Aid, JRY matching cash grant and other developmental programmes as well as drawls of money made by the Secretary of the Management Committee, the matter of utilization of the amounts drawn, the position of repayment of loans taken by individuals or community as a whole etc., at least twice a year. The Secretary of the Management Committee shall record any major decisions taken by the general body of the VDB during the course of the annual meeting which must be authenticated by the concerned Village Council Chairman. A copy of this may be sent to the Chairman of the VDB for information and necessary action.

Disputes and Interpretation:

All disputes, except those in which the lending institution is a party, arising out of the VDB Management Committee working and decisions shall be settled first by the Village Council.

On any disputes as to the interpretation of these rules, the Deputy Commissioner’s/Additional Deputy Commissioner’s decision thereon shall, be final subject to the approval of the Government.