Government Orders Merger of Two Rural Development Bodies, Slashes Budget for a Third

The Department of Expenditure (DoE) has directed the Ministry of Rural Development (MoRD), led by Shivraj Singh Chouhan, to integrate two autonomous bodies under its purview while drastically reducing the budget allocation for a third. This decision comes despite MoRD’s repeated requests for reconsideration.

Merger and Budget Cuts

According to official records, the DoE has mandated the merger of the National Rural Infrastructure Development Agency (NIDA) and the National Rural Livelihoods Promotion Society (NRLPS) with MoRD by the end of March 2025. The department cited difficulties in allocating further funds for these entities.

Simultaneously, the budget of the National Institute of Rural Development & Panchayati Raj (NIRD&PR)—a Hyderabad-based think tank—has been slashed from ₹73.68 crore (2024-25 revised estimates) to a mere ₹1 lakh for the financial year 2025-26. In the previous fiscal year (2023-24), NIRD&PR had received ₹75.69 crore.

Bharat Rural Livelihoods Foundation (BRLF) Exempted

Among the four autonomous bodies under MoRD, only the Bharat Rural Livelihoods Foundation (BRLF) has remained unaffected by these budgetary cuts and restructuring. BRLF, notably, has several serving and retired IAS officers in its governing body and works closely with both the central and state governments.

This is not the first instance of such restructuring. In 2020, the government merged the Council for Advancement of People’s Action and Rural Technology (CAPART) with NIRD&PR in a similar move.

Ministry’s Plea for Exemptions Denied

Documents reveal that MoRD had written to DoE in December 2024, seeking exemptions for NRIDA and NRLPS. The ministry argued for NRIDA’s continuation in its existing form and requested that NRLPS remain separate. However, in a response dated January 6, 2025, the DoE reiterated its stance, instructing MoRD to finalize the mergers by March or risk losing budgetary support for the financial year 2025-26.

Role of the Affected Autonomous Bodies

• NRIDA (National Rural Infrastructure Development Agency): Provides technical support for Pradhan Mantri Gram Sadak Yojana (PMGSY) and acts as a special-purpose vehicle to distribute NABARD’s financial assistance to states. In 2022-23, MoRD allocated ₹2,765 crore to NRIDA for interest payments on NABARD loans under the rural housing scheme and ₹47 crore for salaries and administration.
• NRLPS (National Rural Livelihoods Promotion Society): Established to offer professional and technical support for Deendayal Antyodaya Yojana—National Rural Livelihoods Mission (DAY-NRLM). MoRD granted ₹60.71 crore to NRLPS between 2017-18 and 2021-22.
• NIRD&PR (National Institute of Rural Development & Panchayati Raj): Functions as MoRD’s primary training, research, and policy institute, focusing on rural development. It offers academic programs like a Diploma in Rural Development Management and Tribal Development Management while also providing capacity-building initiatives.
• BRLF (Bharat Rural Livelihoods Foundation): Established in 2013-14, BRLF collaborates with government agencies and NGOs to support rural and tribal communities in states like Odisha, Jharkhand, West Bengal, Chhattisgarh, and others.

Lack of Official Response

The DoE and MoRD have yet to respond to requests for comments from The New Indian regarding the rationale behind these policy changes. However, the move signals a significant restructuring of MoRD’s operations, potentially impacting thousands of rural development initiatives across the country.