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Tamil Nadu's Rural Boost: Centre Releases Rs 127 Crore for Panchayats

The Central Government has released over Rs 127 crore to rural local bodies in Tamil Nadu. This is the second instalment of Untied Grants from the 15th Finance Commission for the current financial year. The funds are designated for basic services like sanitation, drinking water, and waste management. This follows a pattern of similar grants being released to other states, including Uttarakhand.

Key Points: Centre Releases Rs 127 Crore to Tamil Nadu Rural Local Bodies

  • Second instalment of Untied Grants for FY 2025-26 released by the Centre
  • Funds allocated to nearly 3,000 eligible local bodies across Tamil Nadu
  • Grants aim to support sanitation, drinking water, and waste management projects
  • Release follows a similar disbursement of over Rs 94 crore to Uttarakhand
2 min read

Govt releases over Rs 127 crore for rural local bodies in Tamil Nadu

The Union Government has disbursed the second instalment of 15th Finance Commission grants to strengthen rural infrastructure and services in Tamil Nadu.

"These grants have been released for nine District Panchayats, 74 Block Panchayats and 2,901 Gram Panchayats - Ministry of Panchayati Raj"

New Delhi, Dec 19

The Central government, on Friday, released Rs 127.586 crore to rural local bodies and Panchayati Raj institutions in Tamil Nadu during the Financial Year 2025-26, officials said.

According to the Ministry of Panchayati Raj, the amount represents the second instalment of United Grants under the 15th Finance Commission for 2025-26.

"These grants have been released for nine District Panchayats, 74 Block Panchayats and 2,901 Gram Panchayats that have duly elected bodies and fulfil the prescribed eligibility conditions," the official statement said.

The Union government, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends release of 15th Finance Commission grants to states for rural local bodies/Panchayati Raj Institutions, which are then released by the Ministry of Finance.

The allocated grants are recommended and released in two installments in a financial year.

Earlier on Friday, the Union government released Rs 94.236 crore to strengthen rural local bodies in Uttarakhand during the financial year 2025-26.

The release includes the second instalment of Untied Grants for the Financial Year 2024-25 amounting Rs 94.10 crore for all eligible 13 district panchayats, 95 block panchayats and 7,784 gram panchayats in the southern state.

In addition, Rs 13.60 lakh towards the withheld portion of the first instalment of Untied Grants for Financial Year 2024-25 has been released to 15 additionally eligible gram panchayats.

In September this year, the Union government released more than Rs 342 crore for rural local bodies in Tamil Nadu and Assam, as part of the 15th Finance Commission's United Grants for Financial Year 2025-26.

The Union government disbursed the first installment of United Grants amounting to Rs 127.586 crore for Tamil Nadu in the Financial Year 2025-26 (covering 2,901 eligible Gram Panchayats, 74 eligible Block Panchayats, and nine eligible District Panchayats).

The United Grants will be utilised for location-specific felt needs, except for salaries and other establishment costs.

The United Grants can be used for the basic services of sanitation and maintenance of open defecation free status, and this should include management and treatment of household waste, and 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
While the release of funds is welcome, the real test is in its utilization. We need strong monitoring mechanisms to ensure this money actually builds toilets, provides clean water, and manages waste, not just fills someone's pocket. Transparency is key.
R
Rohit P
This is a positive step. Funds for rainwater harvesting are crucial for Tamil Nadu, given our water scarcity issues. Hope every gram panchayat prioritizes this. Jai Hind!
A
Ananya R
It's heartening to see the focus on maintaining ODF status and waste management. Clean villages lead to healthy communities. Hope the local bodies involve women's self-help groups in planning and execution for better results.
D
David E
Interesting to see the fiscal federalism at work here. Releasing funds in installments based on eligibility seems like a good accountability measure. Hope the data on outcomes is made public.
K
Karthik V
The article mentions Uttarakhand and Assam too. Good that development funds are being spread across states. But 127 crore for so many panchayats? Need to check the per-village allocation, might be too thin on the ground.

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