Grants are released to improve sanitation and maintenance of Open Defecation Free (ODF) status, and to supply drinking water, rainwater harvesting and water recycling.
The Finance Ministry on Tuesday said it has released around Rs 13,386 crore to 25 states for providing grants to rural local bodies (RLBs).
Bonded grants are released to rural local bodies (RLBs) to improve two services – sanitation and maintenance of open defecation free (ODF) status and supply of drinking water, rainwater harvesting and water recycling.
“The Department of Expenditure, Ministry of Finance on Monday released an amount of ₹13,385.70 crore to 25 states for providing grants to rural local bodies,” the ministry said in a statement.
This grant-in-aid is the first installment of the bonded grant for the year 2021-22. The grant has been released as per the recommendations of the 15th Finance Commission.
The tied grant is to ensure availability of additional funds to rural local bodies in addition to the funds allocated by the Center and states for sanitation and drinking water under centrally sponsored schemes.
States are required to transfer grants to rural local bodies within 10 working days of their receipt from the central government. Delays beyond 10 working days require the state governments to release the grant along with interest.
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