Saturday, September 10 2005 10:32 Hrs (IST) - World Time -

New Delhi: The Twelfth Finance Commission (TFC) has recommended grants amounting to Rs 25,000 crore for five years from 2005 to states for giving to rural and urban local bodies.

The grant should be used by Panchayati Raj Institutions (PRIs) to improve water supply and sanitation through the takeover of water supply assets created under the Swajaldhara programme.

This was stated by Wajahat Habibullah, Secretary in the Ministry of Panchayati Raj while addressing the third meeting of the Committee of Chief Secretaries and Secretaries of Panchayati Raj here yesterday (Sept 9, 2005).

According to the guidelines issued by the Finance Ministry, funds would be allocated in two equal installments in July and January in every financial year.