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Centre Boosts Odisha Rural Bodies with Rs 444 Crore Grant Release

The Centre has released significant funding to strengthen rural governance in Odisha. This Rs 444 crore grant will support local bodies across the state in addressing community-specific needs. The money can be used for essential services like sanitation, drinking water, and waste management. This financial boost comes alongside digital initiatives that are transforming rural governance through technology.

Key Points: Rs 444 Crore Released to Strengthen Odisha Rural Local Bodies

  • Second instalment of Rs 342 crore released for 20 district panchayats and 6,734 gram panchayats
  • Withheld first instalment of Rs 101 crore also cleared for eligible bodies
  • Grants can be used for sanitation, drinking water supply, and waste management
  • Funds support 29 development subjects excluding salaries and establishment costs
2 min read

Centre releases Rs 444 crore to strengthen rural local bodies in Odisha

Union government releases Rs 444 crore to Odisha's rural local bodies for sanitation, drinking water, and local development projects under 15th Finance Commission grants.

"Untied Grants may be utilised by panchayati raj institutions to meet location-specific needs - Ministry of Panchayati Raj"

New Delhi, Nov 3

The Union government has released Rs 444.38 crore to strengthen rural local bodies in Odisha as part of the 15th Finance Commission grants during the financial year 2025–26, according to a statement issued by the Ministry of Panchayati Raj on Monday.

The release includes the second instalment of Untied Grants amounting to Rs 342.5964 crore for 20 eligible District Panchayats (Zilla Parishads), 296 eligible Block Panchayats (Panchayat Samitis), and 6,734 eligible Gram Panchayats in the state, the statement said.

Additionally, Rs 101.7815 crore, representing the withheld portion of the first instalment of Untied Grants for FY 2025-26, has been released to 20 eligible Zilla Parishads, 233 eligible Panchayat Samitis, and 649 eligible Gram Panchayats.

The Central government, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of Fifteenth Finance Commission Grants to States for Panchayati Raj Institutions and Rural Local Bodies. The Ministry of Finance subsequently releases these grants in two instalments each financial year.

Untied Grants may be utilised by panchayati raj institutions and rural local bodies to meet location-specific needs under the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs. Tied grants can be used for the basic services of sanitation and maintenance of ODF (open defecation-free) status, and this should include management and treatment of household waste, and human excreta and faecal sludge management in particular. These grants can also be used for the supply of drinking water, rainwater harvesting and water recycling.

Meanwhile, the Ministry of Panchayati Raj has launched initiatives such as SabhaSaar - an AI-powered tool for recording and summarising Gram Sabha proceedings, SVAMITVA for digital land mapping and property rights, eGramSwaraj for integrated online planning, accounting and monitoring. Besides, Gram Manchitra has been rolled out for geo-spatial planning. These platforms not only improve transparency and efficiency but also empower citizens to participate more actively in local governance.

- IANS

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Reader Comments

R
Rohit P
Good initiative but I'm concerned about implementation. In my village in Odisha, previous funds were misused by local officials. The AI tools like SabhaSaar might help with transparency, but we need strict monitoring.
S
Sarah B
As someone working in rural development, I appreciate the focus on drinking water and sanitation. The ODF status maintenance is crucial for public health. Hope other states get similar support.
A
Arjun K
₹444 crore is a substantial amount! This should significantly boost rural infrastructure in Odisha. The digital initiatives like SVAMITVA and eGramSwaraj are game-changers for transparent governance. Jai Hind! 🇮🇳
M
Michael C
While the funding is welcome, I wonder why it took so long to release the withheld portion. Timely disbursement is key for effective project implementation. The bureaucracy needs to be more efficient.
K
Kavya N
Great to see focus on rural development! The untied grants allowing local bodies to address specific needs is a smart approach. Every village has different requirements - one size doesn't fit all.

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