New Delhi, Feb 14 (FN Agency) The Centre on Monday released Rs 1,154.90 crore to four states for providing grants to Urban Local Bodies (ULBs). The states to which grants were released are Andhra Pradesh (Rs 225.60 crore), Bihar (Rs 769 crore), Gujarat (Rs 165.30 crore) and Sikkim (Rs 5 crore). “The grants released are meant for Non-Million Plus cities (NMPCs) including Cantonment Boards,” Finance Ministry said. The 15th Finance Commission in its report for the period from 2021-22 to 2025-26 has divided the ULBs into two categories of 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).
It has recommended separate grants for them. Out of the total grants recommended by the Commission for Non-Million Plus cities, 40 per cent is basic (untied) grant and the remaining 60 per cent 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 per cent 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 per cent 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 Finance Ministry said.