The Uttar Pradesh government has eased norms for releasing funds in order to avoid unnecessary delay in implementation of low-cost projects in the state.
An amendment has been made to the conditions laid down for releasing the funds following a demand raised in this regard by the administrative departments in Uttar Pradesh.
“Administrative departments have been demanding that the condition of releasing funds needed for two months, to the work executing agency, in case of low-cost projects is causing delay in their implementation of projects,” additional chief secretary (finance) Prashant Trivedi observed in an official memorandum dated November 4, 2022 to amend the conditions laid down in an order issued on June 7, 2022.
Under the new office memorandum, the state government has asked administrative departments to release first instalment of funds for new construction projects in consultation with the finance department. It has, however, done away with the provision of releasing funds needed for two months for the project. At the same time, the administrative departments have been asked not to release more than the needed funds.
The state government’s office memorandum further asks that the funds should be released in two equal instalments for new construction projects involving cost of ₹2 crore to ₹10 crore. It points out that the amount thus released should be in accordance with the needs and the next instalment should be released for six months after 75% of the amount released earlier was used. It further says that in case of projects involving cost of over ₹10 crore, the funds should be released in four instalments.
{{/usCountry}}The state government’s office memorandum further asks that the funds should be released in two equal instalments for new construction projects involving cost of ₹2 crore to ₹10 crore. It points out that the amount thus released should be in accordance with the needs and the next instalment should be released for six months after 75% of the amount released earlier was used. It further says that in case of projects involving cost of over ₹10 crore, the funds should be released in four instalments.
{{/usCountry}}The administrative departments have been asked to release the next instalment after 75% of the amount released earlier was used.