New Delhi: The Centre on Wednesday released more than Rs 342 crore for rural local bodies in Tamil Nadu and Assam, as part of the 15th Finance Commission's (XV FC) Untied Grants for FY26. The government disbursed the first installment of untied 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 9 eligible District Panchayats).
Moreover, Rs 214.542 crores for Assam (covering all 2,192 eligible Gram Panchayats, 156 eligible Block Panchayats, and all 27 eligible Zilla Parishads) were also released, according to the Ministry of Panchayati Raj. The government, through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends release of XV-FC grants to states for rural local bodies (RLBs)/Panchayati Raj Institutions (PRIs), which are then released by Ministry of Finance.
The allocated grants are recommended and released in two installments in a financial year. Centre releases over Rs 284 crore to strengthen rural local bodies in Mizoram, Odisha, Tripura Last month, the government released more than Rs 284 crore under the 15th Finance Commission Untied Grants for rural local bodies in three states during the financial year 2025–26.
Mizoram received Rs 14.2761 crore for 827 eligible village councils as part of the 2023–24 grants while Odisha has been allocated Rs 240.8149 crore for 6,085 eligible Gram Panchayats and 63 eligible Block Panchayats. Meanwhile, Tripura received Rs. 29.75 crore for 606 eligible Gram Panchayats, 35 eligible Block Panchayats, 8 eligible Zilla Parishads along with all 587 Village Committees and 40 eligible Block Advisory Committees of the state.
The Untied Grants will be utilised for location-specific felt needs, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and supply of drinking water, rainwater harvesting and water recycling.
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