Keralam 10 of 12

A tied grant, a basic grant and the committee that clears a district plan project

A municipal wastewater treatment plant at Malappuram that has stayed idle since it was opened in 2020 is to be revived. The revival follows the approval of an upgrade project by the District Planning Committee, the body that clears the plan projects of local bodies in a district. Under the sanctioned plan, 50 lakh rupees comes from the Central Finance Commission tied grant. Another 50 lakh rupees from the basic grant will buy two tanker trucks, one to carry wastewater and one to supply treated water for reuse. The plant itself was built at a cost of 35 lakh rupees, and was opened during the term of an earlier municipal council. It went into use without the oil-and-grease separator unit needed for kitchen effluents, so it stayed idle from the start. A technical check put the cost of fitting an oil separator and allied works at about 25 lakh rupees. The project will now go for technical vetting, and after that to tender.

Grant for the upgrade: a tied grant of 50 lakh rupees Cost of the old plant: about 35 lakh rupees
Why it matters for exams: The District Planning Committee and the two kinds of Finance Commission grant to local bodies are regular local government questions.
Kerala PSCUPSC

In plain words

District Planning Committee District Planning Committee — The district level body that consolidates and clears the plans of the local bodies in that district.

tied grant tied grant — A grant that may be spent only on the purposes stated for it, unlike a basic grant.

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