Centre-Bengal standoff over funds continues: Mamata awaits Modi's team for Rs 20,000 crore release

In order to negotiate the release of cash, the Bengali government assembled a committee that included representatives from the four departments of finance, panchayat and rural development, education, and health. However, Nabanna has not received a response from Delhi as of yet.

According to sources within the state administration, at a meeting between Prime Minister Narendra Modi and Chief Minister Mamata Banerjee in Delhi on December 20, it was decided that the Centre would also form a team to negotiate with Bengal's officials regarding the release of outstanding funds, estimated to be worth Rs 20,000 crore, under various projects. There was no specific date mentioned, but the state was informed that the meeting would happen "soon."

"The state administration assembled its team and finished the preparatory work by obtaining data from the districts. However, Delhi has not yet let us know if the team has been assembled or the meeting date," a top bureaucrat stated.

Senior government sources stated that if the Centre delays the meeting, the state government may not be in a position to spend the money even if they are provided.

“It is already mid-January. It would be difficult for the state to use the funds in current fiscal year if they were released after the meeting, even in the first week of February, because a number of procedures must be undertaken before using monies at the grassroots level. A bureaucrat stated, "If the funds are not used, they return to central coffers."

Prime Minister Narendra Modi.
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The official clarified that before using funds under the programs, gram panchayats must create thorough project reports and have them validated if monies are provided under the 100 days' work plan at this time. This process takes time and cannot be completed in a single day.

"None of the panchayats prepared the DPRs to execute projects under the MGNREGS because no funds were allocated by the Center under the 100 days' work plan at the beginning of the financial year. The newly elected panchayats had not yet finished preparing their DPRs when panchayat polls were held later, the bureaucrat stated.

In a similar vein, even in the event that the Center approves cash for the rural housing project, the state is still required to validate the 11.46 lakh beneficiary list.

The state appointed secretaries and one senior official each from panchayat, finance, health, and education make up the panel, according to sources.

When this meeting is planned, the finance department will serve as the nodal department.

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