The Centre will release the first instalment of ₹260 crore for strengthening Gram Panchayats in Telangana, following the completion of local body elections and the recent submission of Utilisation Certificates (UCs) for 2023–24 by the State Government.
The remaining ₹2,500 crore will be released in phases upon the submission of additional UCs, Union Minister for Coal & Mines G. Kishan Reddy said in a press release on Wednesday (January 14, 2026). He said that, as per guidelines, every Gram Panchayat must maintain a separate bank account for fund utilisation, registered on the ‘PFMS’ portal with a unique agency code.
The Minister said the Prime Minister Narendra Modi Government has released over ₹11,000 crore to Gram Panchayats and local bodies — including ₹5,060 crore between 2015–16 and 2019–20, and ₹6,051 crore out of the ₹9,050 crore allocated for 2020–21 to 2025–26 — marking an 80% increase over the previous tranche.
The Centre firmly believes that strengthening grassroot democratic institutions enhances accountability and transparency, he said, adding that funds were released to local bodies in a timely manner. The Secunderabad MP also accused the previous Bharat Rashtra Samithi (BRS) government of attaching Gram Panchayat bank accounts and diverting funds for “other purposes.”
As a result, he said, several sarpanches resigned after not receiving funds for works completed during their tenure. In some tragic cases, sarpanches even died by suicide, which he described as deeply unfortunate and regrettable.
Mr. Reddy urged the Telangana Government to exercise due diligence and cooperate with the Centre to strengthen rural infrastructure, support village‑level development, and advance the nation’s growth goals.
Published – January 14, 2026 06:04 pm IST
