Question : RELEASE OF FUNDS UNDER PMGSY

(a) whether the Union Government has not released any funds to the State of Andhra Pradesh during the last few years under the Pradhan Mantri Gram Sadak Yojna (PMGSY) for construction of rural roads;

(b) if so, the details thereof and the reasons therefor;

(c) whether the Union Government proposes to pay any compensation to the State in this regard; and

(d) if so, the details thereof?

MINISTER OF RURAL DEVELOPMENT (SHRI BIRENDER SINGH)

(a) to (d) ‘Rural Roads’ is a State subject and Pradhan Mantri Gram Sadak Yojana (PMGSY) is a one-time special intervention to provide rural connectivity, by way of a single all-weather road, to the eligible unconnected habitations in the core network. Funds are released to the State Government based on the assessment of the absorption capacity of the State, interest accrued on the available funds and unspent balance available with the State. The funds under PMGSY are to be released in two installments. The funds for the cleared projects are made available to the State Governments in two install- ments. The first installment amounting to 50% of the cleared value of projects is released considering the Opening Balance as on 1st April of the Financial Year (including interest accrued). For subsequent releases, State Governments are required to furnish Utilization Certificate to the Ministry showing expenditure of at least 60% of the available funds. No release under PMGSY was made to the State due to high opening balance avai- lable with the State. The year-wise details of Opening Balance, indicative annual allocation and expenditure as reported by the State are given below.

 
 (Figures in Rs. crore) 
 
	Indicative	Opening	Expenditure	annual	balance	allocation	as on 1st	April of	the Fina-	ncial Year. 2012-13	85	596.62	205.66 2013-14	385	414.16	152.56 2014-15	33	298.57#	141.59	(up to	18.11.2014)