As it faces an arduous task of achieving target of making rural India open defecation free by 2019, the Union Ministry of Water and Sanitation has decided to withhold Central assistance to the States, which do not release funds meant for water and sanitation activities in rural areas.
In a first of its kind move, the Ministry has made it clear to the States that they will have to pay a penal interest of 12 per cent for the delay in release of funds after 15 days of the receipt.
The Ministry officials felt that despite the urgency of reaching targets within five years under the Swachchh Bharat Mission , there was an inordinate delay in getting Central funds from the State exchequer to the implementing agencies. This was adversely effecting the achievement of the physical and financial target.
“To get rid of the situation, the Ministry has decided to incorporate a penalty clause in the financial sanction letters of the Ministry, for the delay in the transfer of Central funds from State exchequer to implementing agencies,” said a senior official from the Ministry.
In a recent letter to the States, the Ministry says, “The State is to ensure release/transfer of the released amount to the implementing agencies along with its matching share within fifteen days of the receipt. In case of delay in transfer of funds by the State Governments beyond this stipulated period a penal interest at the rate of 12 per cent per annum for the period of delay shall require to be transferred by the State Governments to the implementing agencies concerned along with the principal amount of the fund."
An official said that given the target under the Mission, they can't take things casually. "Most of the time, it is States which complain of delay in getting central funds. But situation it is just reverse. Though we have been releasing funds for the speedy implementation of the schemes, majority of the State Governments are sitting idle on the fund. In an ideal situation, fund should be released within three days after the receipt to the state exchequer, in actual the delay is as many as twenty days.
Because of the delay in funds, implementing agencies are not able to execute works on time as a result of which, they also fail to provide the project completion certificates.