Centre sanctions Rs 580 cr MGNREGS fund to TN
Additionally, Rs 75.53 crore has been released towards administrative contingencies to support the effective implementation of the guaranteed employment scheme in the current financial year.
Representative Image
CHENNAI: The union government has sanctioned a grant-in-aid amounting to Rs 580 crore to the Tamil Nadu government towards material components for the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
Additionally, Rs 75.53 crore has been released towards administrative contingencies to support the effective implementation of the guaranteed employment scheme in the current financial year.
This follows the earlier release of Rs 773.93 crore towards material components a month ago, which brought down the state's outstanding amount from Rs 1,754 crore to Rs 980.93 crore. “By releasing Rs 580 crore now, the Centre has reduced the outstanding amount towards component materials to Rs 400 crore,” said a senior official and noted that there are no pending liabilities towards wages as the Union Ministry had released Rs 919 crore besides clearing the pending dues of Rs 2,853 crore for the fiscal year 2024-2025.
Director of the Union Ministry of Rural Development's Mahatma Gandhi NREGA wing, P Siva Sankar, in a communication dated July 18, stated that the President had given assent to the release of Rs 580 crore to Tamil Nadu. This fund is earmarked for material components under the guaranteed employment scheme for the financial year 2025-26.
He also instructed authorities in Tamil Nadu to utilise the fund to clear pending liabilities related to material components, and emphasised that the state government must release a matching share against the amount provided by the Union Ministry. As per the MGNREGS provisions, the Centre and State share the cost of material components in a 75:25 ratio.
In addition, the Union Ministry of Rural Development has released Rs 75.53 crore for administrative purposes. This fund will be used to enhance transparency and accountability in the execution of the scheme and for monitoring at the district and taluk levels.
Officials in the state's Rural Development Department noted that the funds will help clear outstanding dues to contractors and expedite pending works. So far, the department has utilised 43 per cent of the Rs 681 crore allocated for material and skilled wage components in the current financial year.
