Tamil Nadu rural bodies receive major central support, over ₹127 crore released

New Delhi (The Uttam Hindu): The Central Government on Friday released ₹127.586 crore for rural local bodies and Panchayati Raj Institutions in Tamil Nadu to strengthen rural development. This amount is the second instalment of the untied grant under the 15th Finance Commission for the financial year 2025–26, officials confirmed.

According to the Ministry of Panchayati Raj, the funds have been provided to eligible Panchayats in Tamil Nadu where elected bodies are in place and which meet the conditions set by the Centre. The grant will directly benefit 9 District Panchayats, 74 Block Panchayats and 2,901 Gram Panchayats across the state. Under the 15th Finance Commission, grants recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti are released to states by the Ministry of Finance, usually in two instalments every financial year.

Earlier on Friday, the Central Government also released ₹94.236 crore for rural local bodies in Uttarakhand, providing a significant boost to rural institutions in the state. This includes ₹94.10 crore as the second instalment of the untied grant for 2024–25, benefiting 13 District Panchayats, 95 Block Panchayats and 7,784 Gram Panchayats. Additionally, ₹13.60 lakh was released to 15 more eligible Gram Panchayats from the amount withheld earlier under the first instalment.

In September 2025, the Centre had released over ₹342 crore to rural local bodies in Tamil Nadu and Assam under the 15th Finance Commission as part of the untied grants for 2025–26. Tamil Nadu had also received ₹127.586 crore in the first phase of the same financial year for its 2,901 Gram Panchayats, 74 Block Panchayats and 9 District Panchayats.

These untied grants can be used by Panchayats according to local needs but cannot be spent on salaries or administrative expenses. The primary objective is to strengthen essential services such as sanitation, maintaining Open Defecation Free (ODF) status, solid and liquid waste management, drinking water supply, rainwater harvesting and water recycling.