+
Govt releases Rs 1154 cr grants to 4 states for Urban local bodies
ECONOMY & POLICY

Govt releases Rs 1154 cr grants to 4 states for Urban local bodies

On Monday, the central government issued Rs 1154.90 crore to four states comprising Bihar, Gujarat, Andhra Pradesh, and Sikkim for giving grants to Urban Local Bodies.

The highest amount of Rs 769 crore is issued to Bihar. Andhra Pradesh has obtained Rs 225.60 crore, Gujarat has obtained Rs 165.30 crore, while Sikkim has obtained Rs 5 crore.

The grants issued are meant for Non-Million Plus cities (NMPCs) comprising Cantonment Boards, as per the Ministry of Finance.

The 15th Finance Commission, in its report for the period from 2021-22 to 2025-26, has separated the Urban Local Bodies into two categories: (a) Million-Plus urban.

.agglomerations or cities (excluding Delhi and Srinagar), and (b) all other cities and towns with less than one million population (Non-Million Plus cities).

The 15th Finance Commission has suggested separate grants for them. Out of the total grants suggested by the Commission for Non-Million Plus cities, 40% is the basic (untied) grant, and the remaining 60% is the tied grant.

Basic grants (untied) are utilised for location-specific felt requirements, except for salary payment and incurring other establishment expenditures.

On the other hand, tied grants for the Non-Million Plus cities are issued for helping and bolstering the delivery of basic services. Out of the total tied grant, 50% is allocated for Sanitation Solid Waste Management and attainment of star ratings as developed by the Ministry of Housing & Urban Affairs (MoH&UA). The remaining 50% is tied to ‘Drinking water, rainwater harvesting and water recycling.

The tied grants are meant to guarantee the availability of additional funds to urban local bodies over and above the funds assigned by the Centre and the State for sanitation and drinking water under different Centrally Sponsored Schemes and render quality services to citizens.

Image Source

Also read: Govt disbursed Rs 41,415 cr interest subsidy under PMAY-U

On Monday, the central government issued Rs 1154.90 crore to four states comprising Bihar, Gujarat, Andhra Pradesh, and Sikkim for giving grants to Urban Local Bodies. The highest amount of Rs 769 crore is issued to Bihar. Andhra Pradesh has obtained Rs 225.60 crore, Gujarat has obtained Rs 165.30 crore, while Sikkim has obtained Rs 5 crore. The grants issued are meant for Non-Million Plus cities (NMPCs) comprising Cantonment Boards, as per the Ministry of Finance. The 15th Finance Commission, in its report for the period from 2021-22 to 2025-26, has separated the Urban Local Bodies into two categories: (a) Million-Plus urban. .agglomerations or cities (excluding Delhi and Srinagar), and (b) all other cities and towns with less than one million population (Non-Million Plus cities). The 15th Finance Commission has suggested separate grants for them. Out of the total grants suggested by the Commission for Non-Million Plus cities, 40% is the basic (untied) grant, and the remaining 60% is the tied grant. Basic grants (untied) are utilised for location-specific felt requirements, except for salary payment and incurring other establishment expenditures. On the other hand, tied grants for the Non-Million Plus cities are issued for helping and bolstering the delivery of basic services. Out of the total tied grant, 50% is allocated for Sanitation Solid Waste Management and attainment of star ratings as developed by the Ministry of Housing & Urban Affairs (MoH&UA). The remaining 50% is tied to ‘Drinking water, rainwater harvesting and water recycling. The tied grants are meant to guarantee the availability of additional funds to urban local bodies over and above the funds assigned by the Centre and the State for sanitation and drinking water under different Centrally Sponsored Schemes and render quality services to citizens. Image Source Also read: Govt disbursed Rs 41,415 cr interest subsidy under PMAY-U

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code