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Govt releases Rs 1,133 crore to empower rural local bodies in MP, Punjab, Telangana

Published On Fri, 06 Feb 2026
Asian Horizan Network
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New Delhi, Feb 6 (AHN) The Centre on Friday said it has released over Rs 1,133 crore to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Madhya Pradesh, Punjab, and Telangana, as part of the 15th Finance Commission grants during FY2025–26.
According to the Ministry of Panchayati Raj, in Madhya Pradesh, Rs 652.55 crore has been released as the second instalment of Untied Grants for FY 2024–25.
The funds will benefit all 52 eligible District Panchayats, 312 eligible Block Panchayats and 23,001 eligible Gram Panchayats in the state.
Additionally, Rs 77 lakh representing the withheld portion of the first instalment of Untied Grants for FY 2024–25 has also been released to 3 additionally eligible Block Panchayats and 6 Gram Panchayats, the ministry informed.
The Centre released Rs 222 crore as the first instalment of Untied Grants for FY 2025–26 for Punjab.
"These funds will support all 13,262 eligible Gram Panchayats, 150 eligible Block Panchayats and 22 eligible District Panchayats across the state," the ministry said.
For Telangana, Rs 256.0295 crore were released as the first instalment of Untied Grants for FY 2024–25, benefiting 12,702 eligible Gram Panchayats.
Further, Rs 233.18 lakh, being the withheld portion of the second instalment of Untied Grants for FY 2023–24, has also been released to 11 additionally eligible Gram Panchayats and 40 Block Panchayats, the ministry said.
The Untied Grants will be utilised by Panchayati Raj Institutions and Rural Local Bodies for location-specific felt needs, except for salaries and other establishment costs.
Also, 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, human excreta and faecal sludge management in particular and supply of drinking water, rainwater harvesting and water recycling.