The Union Government has released the Second Instalment of XV Finance Commission (XV FC) Untied Grants for the Financial Year 2025–26 to Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) in Andhra Pradesh, Maharashtra and Tripura to strengthen grassroots governance and support location-specific development needs.

In Andhra Pradesh an amount of ₹41,076 lakhs (Rs. 410.76 Crores) has been released as the second instalment of Untied Grants for FY 2025–26. The funds will benefit 13,092 eligible Gram Panchayats, 650 eligible Block Panchayats and all 13 eligible District Panchayats in the State. In Maharashtra, the Union Government has released ₹71,432 lakhs (Rs. 714.32 Crores) under the second instalment of XV FC Untied Grants for FY 2025–26. These grants will cover 26,407 eligible Gram Panchayats, 15 eligible Block Panchayats and 2 eligible Zilla Parishads across the State. For Tripura, ₹3,060 lakhs (Rs.30.6 Crores) has been released as the second instalment of Untied Grants for FY 2025–26. The release covers all 606 eligible Gram Panchayats, all 35 eligible Block Panchayats, all 8 eligible Zilla Parishads, all 587 eligible Village Committees, all 40 eligible Block Advisory Committees and 1 eligible TTAADC Headquarters. In addition, ₹85 lakh of the withheld portion of the first instalment of Untied Grant for FY 2025–26 has also been released to 1 additional eligible TTAADC Headquarters.

Government of India 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 Panchayati Raj Institutions/ Rural Local Bodies, which is then released by the Ministry of Finance. The allocated grants are recommended and released in 2 installments in a financial year. The Untied Grants will be utilized by PRIs/ RLBs for location-specific felt needs, under the Twenty-Nine Subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of (a) 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 (b) supply of drinking water, rainwater harvesting and water recycling.

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