Rs 1.42-trillion tied grant to villages for water, sanitation: 15th FC

Tied grant 60% of total Rs 2.37 trn allocated to rural local bodies

In order to push tap water supply and better sanitation facilities in villages, the Fifteenth Finance Commission (15th FC) has recommended a Rs 1.42-trillion tied grant to local rural bodies and panchayats for the next five years (from 2021–22 to 2025–26).

This tied grant is 60 per cent of the total amount of Rs 2.37 trillion allocated to rural local bodies and is meant for ensuring supply of drinking water, rainwater harvesting, and water recycling. It is also to be used for sanitation and maintenance of open defecation-free status in villages.

The Department of Drinking Water and Sanitation - under the Jal Shakti ministry - will be the nodal department for determining the eligibility of the rural local bodies for the 15th FC's tied grant for water and sanitation and has recommended the release of funds to the finance ministry. The department has recommended release of the first instalment to 25 states.

A media statement by the Jal Shakti ministry said the funds will help village panchayats function as local public utilities with a focus on service delivery. With the latest allocation, along with the budgetary support from the Centre and states, the share for the Jal Jeevan Mission is more than the Rs 1 trillion available for making provision of piped water supply in villages this year. 

The government is also planning to take up a massive drive to sensitise, train, and empower panchayat functionaries to utilise this fund to ensure tap water supply and improved sanitation in villages. The ministry has prepared a manual for utilisation of these funds and shared it with states to further disseminate it among panchayats in the vernacular languages. 

In partnership with states to make the provision of tap water supply to every rural household, the Jal Jeevan Mission - with an outlay of Rs 3.6 trillion - has been under implementation since August 2019.

The government has selected 84 institutions to act as key resource centres to impart training and capacity building of gram panchayats for ensuring assured water supply, improved sanitation, and hygiene.

“States need to identify nodal departments and put in place a system in accordance with the guidelines during the 15th FC period,” observed the Jal Shakti ministry.

States have been asked to institute a robust ‘operation and maintenance’ policy to recover service charges from households. This is expected to help them meet the recurring expenditure on rural water supply and sanitation services in villages for long-term and assured service delivery.

For this, every village will have to draw up a five-year action plan for the same duration as the 15th FC’s period. The plan will consist of components of drinking water source strengthening, water supply, greywater treatment and its reuse, operation and maintenance, solid and liquid waste management, among others. These village action plans are to be a part of gram panchayat development plans.