Grant of ₹ 1348.10 crore released to Six States for Urban Local Bodies

Total grant of ₹ 10,699.33 crore has been released to Urban Local bodies so far in 2021-22

The Department of Expenditure, Ministry of Finance today released an amount of ₹ 1348.10 crore to 6 States for providing grants to Urban Local Bodies.  The States to which grants were released on Friday are Jharkhand (₹ 112.20 crore), Karnataka (₹ 375 crore), Kerala (₹ 168 crore), Odisha (₹ 411 crore), Tamil Nadu (₹ 267.90 crore) and Tripura (₹ 14 crore).  The grants released are meant for Non-Million Plus cities (NMPCs) including Cantonment Boards.  

The 15^th Finance Commission in its report for the period from 2021-22 to 2025-26 has divided the Urban Local Bodies into two categories: (a) Million-Plus urban agglomerations/cities (excluding Delhi and Srinagar), and (b) all other cities and towns with less than one million population (Non-Million Plus cities).  The 15^th FC has recommended separate grants for them. Out of the total grants recommended by the Commission for Non-Million Plus cities, 40% is basic (untied) grant and the remaining 60% is tied grant.  Basic grants (untied) are utilised for location specific felt needs, except for payment of salary and incurring other establishment expenditure.

On the other hand, tied grants for the Non-Million Plus cities are released for supporting and strengthening the delivery of basic services.  Out of the total tied grant, 50% is earmarked 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 ensure availability of additional funds to urban local bodies over and above the funds allocated by the Centre and the State for sanitation and drinking water under various Centrally Sponsored Schemes and provide quality services to citizens.

In the current financial year, the Government of India has released a total amount of ₹ 10,699.33 crore so far to the States as grants to the Non-Million Plus cities. These grants are released by the Ministry of Finance on the recommendations of Ministry of Housing and Urban Affairs.

Annexure-I 

S. No.	State	Amount of ULB grant released in 2021-22 (Rs in crore)
1	Andhra Pradesh	873.00
2	Bihar	759.00
3	Chhattisgarh	369.90
4	Goa	13.50
5	Gujarat	660.00
6	Haryana	193.50
7	Himachal Pradesh	98.55
8	Jharkhand	299.20
9	Karnataka	750.00
10	Kerala	336.00
11	Madhya Pradesh	499.00
12	Maharashtra	461.00
13	Mizoram	17.00
14	Odisha	822.00
15	Punjab	185.00
16	Rajasthan	490.50
17	Sikkim	10.00
18	Tamil Nadu	1188.25
19	Telangana	209.43
20	Tripura	72.00
21	Uttar Pradesh	1592.00
22	Uttarakhand	104.50
23	West Bengal	696.00
	Total	10699.33

 

Non-Million Plus city grants split into untied and sector-tied components to bolster sanitation and water services. Grants targeted to Non-Million Plus cities were released to six States as part of a broader fiscal programme: allocations follow a Finance Commission-based framework splitting grants for Non-Million Plus cities into 40% basic (untied) grants-usable for location-specific needs except salaries-and 60% tied grants. Tied grants are equally earmarked for sanitation and solid waste management (including star-rating attainment) and for drinking water, rainwater harvesting and water recycling, intended to supplement existing central and state schemes; State-wise releases are recorded in an annexure.