I am delighted to be here today to inaugurate the State Institute of Rural Development. Over the last few years, this young State has already made a mark for itself on the training and educational map of our country. Chhattisgarh has gradually established major institutions that are required for effective governance. The SIRD is one more in this series.

2. It is a matter of great satisfaction that I am inaugurating this building in the presence of the elected representatives of the Parliament, State Legislature and the district panchayats and also the officials of the government. In the new context of the deepening of the political process in rural India, thanks to the far-sighted Constitution Amendment introduced by Shri Rajiv Gandhiji, capacity building institutions for rural development are no more restricted to training officials. Instead they have a key role in orienting the newly elected local body leadership to become effective in their new roles as development leaders.

3. I would like to utilize this unique opportunity where the audience covers the entire spectrum of people's representatives and state and district officials to outline the importance of good, effective governance at the grassroots and the importance of delivery mechanisms in the development of the nation. If India is to progress and occupy its rightful place in the comity of nations as an advanced, progressive and prosperous country, it is essential to not only ensure that does its economy grow rapidly but also ensure that the fruits of development reach all corners of the country. It is absolutely essential that we empower and equip our people to benefit from the growth processes that are taking place in the country.

4. Dispersal of the benefits of growth to our rural hinterland and to the vast population that lives in these areas requires particular emphasis on a few core areas. These are, needless to say, agriculture, irrigation & drinking water, health, education, employment and rural infrastructure. These are basic issues which affect the common man in all parts of the country. Hence, there is a need to focus attention at all levels to ensure that we have a prosperous, humane and just society free from want and disease.

5. Over the last year, our allocations under various programmes in these areas has seen a quantum leap. Allocations for development have risen by amounts which were not conceivable even a decade ago. To ensure that primary education reaches every child in the country, an education cess of 2% has been imposed and this has been set aside in a Prathmik Shiksha Kosh which is non-lapsable. These funds are being used to finance the Sarva Shiksha Abhiyan and the Mid-day Meal Programme which has now been made universal. The ICDS programme which ensures pre- and post natal care for mothers and supplementary nutrition for children is being universalised. On the health front, a National Rural Health Mission has been launched this year under which we propose to set up integrated district level health bodies which will plan, manage and monitor the health programmes based on local priorities. Every village will be provided a village health worker to ensure the necessary reach. All PHCs and Sub-PHCs are to be revamped. Just as DRDAs revolutionised the implementation of rural development programmes, the district health body will do the same in the health sector. Chhattisgarh, incidentally, has been one of the major beneficiaries of higher allocations.

6. In order to ensure that everyone has access to basic employment at a decent wage, the Food for Work programme has been launched. Once the National Employment Guarantee Act is passed, this will be the main instrument for implementing the guarantee which is aimed at preventing rural destitution and unemployment. Similar large scale initiatives are being taken in agriculture and irrigation as well, an example of which was the programme launched in Bhoramdeo in the morning.

7. By now it must be apparent to all of you assembled here that all the areas I have been taking of are critically dependent on the delivery mechanisms for their successful implementation. Our task is not achieved when allocations are made. We have to ensure that outlays are turned into outcomes. States have a crucial roles to play in the design and delivery of development and social sector programmes. States, Zila Panchayats and Gram Panchayats are far better placed in understanding local variations, assessing local needs, monitoring delivery systems and ensuring accountability of service delivery agents. They have the advantages of proximity, flexibility, rapidity in response and accountability. It is almost impossible to do this from a national level.

8. Given this reality, there is a need for states to focus a great deal of effort and energy on the issue of improving delivery of development programmes. Boldness in innovation and commitment to decentralization should be the drivers for delivery improvement. This can be done only through the involvement of local bodies and representatives in the panchayats. We need to ensure that panchayats become integral parts of the design and delivery mechanism at all levels and discharge their constitutional role envisaged for them. There is also a need to involve outside players such as NGOs, civil society, academic institutions, etc. in our development processes at the grassroots. All this adds up to the need to have good governance through the involvement of all stakeholders. The reason for elaborating so much on this subject is that efficiency in the delivery of development programmes can be improved substantially. It is true that some states may be doing better than others. However, as a country, we are not getting the best returns on our development investment.

9. I would like to draw attention to another problem that is affecting development in some regions, including in Chhattisgarh - the problem of left wing extremism. Delivery systems are often the first casualty under extremist pressures. Schools do not run, dispensaries do not open and PDS shops stay closed. Public service providers can now ascribe all these inefficiencies to "extremism". In many cases, "extremist" areas also appear to be closely associated with a lack of strong participatory mechanism. Panchayats are generally weak and even where they do exist, not enough powers are delegated. Panchayats are important from another angle. They create room for political action - by mainstream political parties, by NGOs and civil society. Generally, traditional headmen and village institutions are treated with respect even by extremists. Ideologically driven movements do exploit the vacant spaces caused by the absence of mainstream political formations at the grass roots level.

10. One way of equipping our local bodies adequately is by improving the planning capacity at the district level. We need to train our officials to become effective and accountable. We need to train our elected representatives to become effective development managers. All of this calls for institutions at the state and below state levels. The SIRD, therefore, has a very critical role in guiding the process of development of Chattisgarh. I believe this new building has been constructed with the support of the Union Ministry of Rural Development. I compliment both the Ministry of Rural Development and the Government of Chattisgarh for creating an institution that can serve as a capacity building unit for the development managers of Chattisgarh.

11. Rural India is India's big growth opportunity. It is time people perceive the rapid changes that are happening in rural India. Rural poverty has been steadily coming down and rural incomes going up. We need to accelerate this pace. Our Government is committed to giving a new deal to rural India. We must invest more in human capabilities in our rural areas. To do that we need to invest in critical areas like education, health care, basic infrastructure, especially water, power, roads and housing. The prosperity of our country can only be built on the strong foundation of agrarian transformation and agrarian prosperity.

11. Our government has recently announced a six-pronged programme for building rural infrastructure called Bharat Nirman. It is a four-year action plan. By 2009, we hope to ensure that every village in India is electrified, has a telephone connection, is connected by a pucca road and every habitation covered with drinking water supply and add a crore of additional hectares of irrigation as well as 60 lakhs more houses for the houseless. Chattisgarh as a relatively backward state in rural infrastructure is poised to gain immensely from Bharat Nirman. In the last year, we have had a record increase in the financial allocations to Chhattisgarh. This will continue in future as well. I call upon the State Government to ensure that all the targets under Bharat Nirman are met as planned.

12. I am aware that certain structural constraints relating to forest rights have kept the substantially large adivasi population of the state backward. It is necessary to recognize their need for assured property and land rights in areas they have been residing in for several generations. It is an irony that tribals who have been living in "forest villages" and have been practicing agriculture on these lands for several generations have not been given due recognition of their rights. Their problems are engaging the attention of the Government and we will try to settle the issue of land rights of tribals. One way is to introduce a Bill to recognize the historical rights of adivasis on the lands in their possession thereby removing the insecurity that has plagued them. Once their land rights are settled we need to think creatively on developing an incentive-based conservation programme where the objectives of conservation and livelihood security of the adivasi are complementary.

13. Chattisgarh should plan to be a state not only rich in resources but also with prosperous people. It should work hard towards reducing the burden of illiteracy, disease and the inequality of opportunity that continues to plague many regions. Historical experience is that whenever states have been divided, contrary to predictions, both parts have improved their development performance. I am sure this can happen to new states like Chattisgarh.

14. The SIRD should become a training institution that creatively engages with the challenges of development of Chattisgarh. It should develop its own unique methods of development communication based on it own local context. The tendency is generally to replicate the same methods across training institutions. Instead, training institutions should learn from the richness of local experience, involve local expertise and enrich the process of learning. I am confident that the State Institute of Rural Development would take up this creative challenge of thinking new on the development of this young promising State.

I wish the people of Chhatisgarh, the State Government and this institute all success in their endeavours.

Jai Hind!