Purposes stated in the Rural Development Bill are “to narrow the socioeconomic divide between rural and urban regions”, “to ensure effective utilization of human resources and funds”, “to promote cooperation and participation of rural people in implementing rural development undertakings for their better living standards”, and “to realize the development of socioeconomic life of rural population”. The bill mainly focuses on “rural water supply, personal and environmental hygiene, electrification and rural housing”.
A Union-level supervisory committee formed with heads of government agencies under the leadership of minister and deputy minister for Agriculture, Livestock and Irrigation will enforce the bill. The committee will help each village set up their own capital guarantee funds.
The Department of Rural Development will spearhead the rural development projects through procurement, coordination and supervision.
According to the bill, rural communities will have the right to offer their inputs and make suggestions in rural development projects. No detailed information about how these comments will be taken and processed and how the village-level working committees will be formed.
A capital guarantee fund will be set up with contributions of the State budget, local donors, foreign governments, non-governmental organizations and private donors. Working committees in each village will have to take care of the fund with the bookkeeping assistance from the Department of Rural Development. Villagers are allowed to take loans from the fund, and they will have the right to spend the interests on the loans on the village projects.