INVC,,
Delhi,,
The Union Cabinet today gave its approval to wind up the National Fund for Rural Development (NFRD) and transfer the residual funds to Council for Advancement of People’s Action and Rural Technology (CAPART), an autonomous body under the Ministry of Rural Development.
The National Fund for Rural Development (NFRD) was set up in 1984 to mobilise funds from individuals, corporate and non-corporate bodies for undertaking rural development activities. The accruals to the Fund were to be utilized for implementing projects in the field of rural development. All categories of tax-payers and non-tax payers willing to join the effort in bringing about improvements to rural life were made eligible to make contribution in the name of NFRD. No contribution to the Fund was received beyond April, 2004.
In the meanwhile, a scheme namely Provision of Urban Amenities in Rural Areas (PURA) under the framework of public private partnership was approved enabling a role for the private sector to participate in the process of rural development. Since the contribution to the NFRD was too small to get tangible results, the Government has approved the winding up of NFRD. The funds available under NFRD will be transferred to CAPART for taking up well-identified projects fitting into the basic objectives of NFRD over a period of 2 years.
