On the basis of recommendations of the 15th Finance Commission, the Central government on Monday released Rs 2,200 crore as the first instalment to 15 states for taking measures to improve air quality in Indian cities having over a million population.
Karnataka has received Rs 139.5 crores from the funds which will entirely go to Bruhat Bengaluru Mahanagara Palike (BBMP) local body grant.
"The grant will help the beneficiary states to undertake air quality measures, including capacity-building of the local bodies within their million-plus cities/agglomerations," Finance Minister Nirmala Sitharaman said on Monday.
BBMP is expected to get the amount within 10 working days of receipt
The government also said that the funds are intended to meet the additional needs of State Pollution Control Boards to appropriately assist the local bodies in monitoring the ambient air quality. BBMP is expected to get the amount within ten working days of receipt from the Union Government without any deduction, as per a statement of the Union Finance Ministry.
"Any delay beyond ten working days will require the state governments to release the same with interest as per the effective rate of interest on market borrowings/State Development Loans (SDLs) for the previous year," the ministry said in a release.
Karnataka has also received its second tranche funds to offset CST compensation cess shortfall along with 15 other states on Monday. In a press release, the Finance Ministry said that Rs 6,000 crore was being released to 16 states and three Union Territories under the special window of borrowing.
