Rural Ministry Ties Rural Housing Scheme Funding To States' Performance

The rural development ministry helmed by Giriraj Singh has tightened the process of releasing funds to states under the mega PM Rural Housing Scheme, linking it to their performance in the programme. A fresh order was issued. “It has been decided with the approval of the Hon’ble Minister of Rural Development for amendment in the Framework of Implementation of PM Awas Yojana Gramin (PMAY-G) relating to the release of central assistance of first instalment under PMAY-G,” says the order. So far, 50% of the central share of the scheme for a financial year was released by the Centre to the states as a first instalment at the beginning of the financial year if they had availed the second instalment in the previous year or submitted a proposal on the same. The provision has been changed to tie the release of money to the performance of the states in the previous year. The new rule says that at the onset of the financial year, an “annual financial allocation would be decided for each state/UT on the basis of the previous year performances, pending houses for completion and utilization of available funds”. The first instalment would now either be “50% of the annual financial allocation or against the targets allocated till the current financial year to the state/UT, whichever is smaller”. An empowered committee has been set up under the chairmanship of the secretary (rural development) to approve the Annual Action Plan. The new order also specifies that the funds pending for release under previous years would also be adjusted against the annual financial allocation so decided. “The fund release under the PMAY-G henceforth would be guided by the above amended provision,” the new order says. About 2.10 crore houses are to be built under the PMAY-G scheme, out of which the government says 1.63 crore houses have been completed so far. Some states like Assam, Goa, Bihar and Tamil Nadu are lagging.