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Centre Releases ₹1,133 Crore to Empower Rural Local Bodies in 3 States

The Central Government has released over ₹1,133 crore to strengthen Panchayati Raj Institutions in Madhya Pradesh, Punjab, and Telangana. Madhya Pradesh received ₹652.55 crore as a second instalment, benefiting thousands of local bodies. Punjab was allocated ₹222 crore as a first instalment for the new financial year, while Telangana received funds for the current and previous years. These untied grants are to be used for local development needs, excluding salaries, with tied grants focused on sanitation and water services.

Key Points: ₹1,133 Crore Released for Rural Local Bodies in MP, Punjab, Telangana

  • ₹652.55 cr for MP panchayats
  • ₹222 cr first instalment for Punjab
  • ₹256 cr for Telangana panchayats
  • Funds for location-specific needs
  • Grants exclude salary costs
2 min read

Govt releases Rs 1,133 crore to empower rural local bodies in MP, Punjab, Telangana

Central govt releases over ₹1,133 crore in untied grants to Panchayati Raj Institutions in Madhya Pradesh, Punjab, and Telangana for local development.

"These funds will support all 13,262 eligible Gram Panchayats - Ministry of Panchayati Raj"

New Delhi, Feb 6

The Centre on Friday said it has released over Rs 1,133 crore to strengthen Panchayati Raj Institutions and Rural Local Bodies in Madhya Pradesh, Punjab, and Telangana, as part of the 15th Finance Commission grants during FY2025-26.

According to the Ministry of Panchayati Raj, in Madhya Pradesh, Rs 652.55 crore has been released as the second instalment of Untied Grants for FY 2024-25.

The funds will benefit all 52 eligible District Panchayats, 312 eligible Block Panchayats and 23,001 eligible Gram Panchayats in the state.

Additionally, Rs 77 lakh representing the withheld portion of the first instalment of Untied Grants for FY 2024-25 has also been released to 3 additionally eligible Block Panchayats and 6 Gram Panchayats, the ministry informed.

The Centre released Rs 222 crore as the first instalment of Untied Grants for FY 2025-26 for Punjab.

"These funds will support all 13,262 eligible Gram Panchayats, 150 eligible Block Panchayats and 22 eligible District Panchayats across the state," the ministry said.

For Telangana, Rs 256.0295 crore were released as the first instalment of Untied Grants for FY 2024-25, benefiting 12,702 eligible Gram Panchayats.

Further, Rs 233.18 lakh, being the withheld portion of the second instalment of Untied Grants for FY 2023-24, has also been released to 11 additionally eligible Gram Panchayats and 40 Block Panchayats, the ministry said.

The Untied Grants will be utilised by Panchayati Raj Institutions and Rural Local Bodies for location-specific felt needs, except for salaries and other establishment costs.

Also, the Tied Grants can be used for the basic services of sanitation and maintenance of ODF status, and this should include management and treatment of household waste, human excreta and faecal sludge management in particular and supply of drinking water, rainwater harvesting and water recycling.

- IANS

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Reader Comments

P
Priya S
Good news for rural development! The focus on sanitation and drinking water under Tied Grants is crucial. In my village in Telangana, water scarcity is a big issue. Hope the panchayats use this for sustainable solutions like the rainwater harvesting mentioned.
R
Rohit P
Rs 1,133 crore sounds like a lot, but when you divide it among thousands of panchayats across three states, the amount per village might be small. The intent is good, but the scale of need is massive. Transparency in fund allocation and usage reports should be made public.
A
Anjali F
As someone from MP, I welcome this release. Our village panchayat has been waiting for funds to fix the drainage system before monsoon. I just hope the process is quick and there's no "commission culture" that delays or reduces the actual work done.
D
David E
Interesting to see the detailed breakdown. The concept of 'Untied Grants' for local needs is smart governance. Accountability will be key. Are there citizen committees to oversee the spending? That could build trust and ensure better outcomes.
K
Kavya N
The mention of maintaining ODF status and waste management is very important. Many villages became ODF but struggle with sustainability. This targeted funding can help build proper systems. Hope they also focus on awareness campaigns alongside infrastructure.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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