Home Finance Odisha Gets 246 Cr Urban Grants

Odisha Gets 246 Cr Urban Grants

Bhubaneswar: Odisha has received Rs.246.60 Crore as First Installment of Tied Grant for Urban Local Bodies (ULB)s.

Odisha ranks 31st in the list of most urbanized states of the country, while in terms of actual urban population, the state ranks 11th in the list of states with the largest urban population.

While the Department of Expenditure, Ministry of Finance today released an amount of Rs. 2427 crore to 11 States for the Urban Local Bodies, Odisha received its share of Central Grants.

 The amount released is the 1st installment of tied grants for the year 2021-22.  These grants have been provided for the Non-Million Plus cities (NMPCs) including Cantonment Boards.  

The 15th Finance Commission in its report for the period from 2021-22 to 2025-26 has divided the Urban Local Bodies into two categories,  Million-Plus urban agglomerations/cities (excluding Delhi and Srinagar), and  all other cities and towns with less than one million population(Non-Million Plus cities) and 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 as tied grant.  Basic Grants(untied) can be utilized 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 which 50% is earmarked for ‘Sanitation Solid Waste Management and attainment of star ratings as developed by the Ministry of Housing & Urban Affairs (MOH&UA) and 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.

The States are required to transfer the grants to the ULBs within 10 working days of receipt from the Union Government.  Any delay beyond 10 working days requires the State Governments to release the grants with interest.