• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Ajita Shashidhar

NEW DELHI, Nov. 5

THE Government is set to initiate talks with the World Bank shortly for funds aggregating close to $2 billion for its Sarva Shiksha Abhiyan (SSA) Project, which promises to provide elementary and primary education to each and every child by the year 2010.

According to a senior official from the Finance Ministry, this funding will be additional to the Rs 46,000 crore originally allocated in the Tenth Plan for a period of five years. "The World Bank has indicated its willingness to fund the project without any major restrictions," remarked the official.

A good portion of the proposed funding would be under the International Development Association (IDA) window, which has a repayment maturity of 50 years and soft interest charges.

The Union Government has reportedly sanctioned Rs 4,667 crore for the implementation of this project this year with an objective to set up 10,700 primary and elementary schools and 62,000 Education Guarantee Schemes to provide informal education in those areas where formal schools are inaccessible.

The SSA project has met with severe criticism from the industry, with NGOs such as the National Alliance for the Fundamental Right to Education (NAFRE), which claims that the actual disbursal of funds is just 10 per cent of the allocated sum. "The actual disbursal is around Rs 1,000 crore as opposed to Rs 10,000 crore per year. This also goes against the Financial Memorandum made by Parliament for the 93rd Constitutional Amendment Act, where it has promised to allocate around Rs 10,000 crore per annum for the SSA project," remarks Mr Sanjiv Kaura, National Convenor, NAFRE.

In fact, Mr Kaura of NAFRE has also expressed his reservations against the proposed World Bank funding, saying that a $2 billion loan would only add to the nation's debts, especially for a scheme where the implementation mechanism has gaping holes.

"We will blow up the debt money without achieving any worthwhile productive activity," he said.

Mr Kaura also referred to the Tapas Majumdar Committee Report, which said that only an average expenditure of 0.7 per cent of the GDP for 10 years was required to educate each and every child in this country.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Despite Kelkar, no joy ride for car buyers

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line