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RA,IESH BHUSIIAN
JS(RC&IEC),DG, NRRDA&
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Ministry of Rural Development
Deptt. of Rural Development
Government of lndia
Krishi Bhavan, New Delhi-110114
Dated r5.5.zor5
E/-e^.,
Please refer to the order of Finance (SFC Cell -A) Department, Government of
Kerala dated 13.5.2015 regarding transfer of funds under PMGSY to the Account of
Kerala State Rural Road Development Agency (KSRRDA).
2.
As you are well aware that a decision was taken by the Union Cabinet that for all
Centrally Sponsored Schemes (CSS) under which funds are provided to the States are to
be classified and budgeted as Central Assistance to State Plan with effect from the
financial year 2014-15 and accordingly the releases under PMGSY are now being made
to the State Consolidated Fund. The changed system, however, would not adversely
affect the flow of funds from the Ministry of Rural Development to the States. In the
financial year 2014-15, against the indicative annual allocation of Rs.51 crore for t}re
State of Kerala, the Ministry has released an amount of Rs.22 crore to the State on
23.4.201,5. While releasing the above said amount to the State it was clearly indicated in
the sanctioned letter (Para 3) that "the State Government must trunsler these funds to
Keralu Rursl Road Development Agencf (TRRDA) wilhin 3 working days positivelt from the
dale of rcceipt of these funds. In case of non-bansfer beyond this peiod, Cenffal Govemment
moy be constained to stop fafthet rcleases. Besides, the State Government would be liable to
pay interest @12%for the period of delay be)tond the specwd perbd",
3.
Now as per the aforesaid order, the State Government has opened a special TSB
account which is maintained by KSRRDA at the district treasury Thiruvananthapuram.
The para 4 ofthe aforesaid order stipulates that the release of fund is exempted from all
treasury restrictions subject to the condition that account balance out of t}Ie amount
transferred
to
any bank shall not be more than Rs.5 crore on more than two
consequence dates.
4.
As per PMGSY guidelines, the programme funds are to be maintained in a single
account and apparently, the aforesaid order of Government of Kerala is not in harmony
with PMGSY guidelines. It is not clear under what rule, the provision of separate
account and the stipulations as indicated at para 4 of the aforesaid order has been made.
5.
I would, therefore, request you to take immediate action for uediting Rs.zz crore
to the account of KSRRDA, failing which the Ministry would be constrained to withhold
further releases to the State under PMGSY.
With regards,
Yours sincerely,
(RA,'ESH BHUSHAN)
Shri James Varghese,
Principle Secretary,
Local Self Government Department
Thiruvananthapuram