MoJS asks State to return ₹36.34 cr. released under PMKSY with 7% interest
The Ministry of Jal Shakti has directed the Telangana government to return over ₹54 crore in central assistance funds released for irrigation projects. The demand follows an audit observation regarding the failure to utilize funds for their intended purposes within the specified timelines.
Why it matters
This reflects ongoing fiscal accountability issues between the Indian central government and state administrations regarding infrastructure project funding.
The Directorate of Monitoring and Appraisal under the Ministry of Jal Shakto (MoJS) has asked the Telangana government (Irrigation Department) to return the Central Assistance of ₹54.22 crore including interest released under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) for nine ongoing projects.
In a letter addressed to the Engineer-in-Chief of Telangana, Director of M&A noted that the Telangana government had written to it in July 2023 for dropping the proposals submitted for 11 projects in the past and adjust the central assistance release to nine other eligible projects including Devadula Lift Irrigation Scheme, Rjiv Bhima LIS, Sriramsagar Stage-II and Paddavagu@Jagannathpur.
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