Cabinet approves: Raising of Extra Budgetary Resources for Swachh Bharat Mission amounting up to Rs 15,000 crore

• The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following:

• Raising funds up to Rs.15,000 crore as Extra Budgetary Resources (EBR) (Gol Fully Serviced Bonds) for Swachh Bharat Mission (Gramin) [SBM(G)] during the financial year 2018-19 through NABARD.

• Expansion of the scope of work of the Society named International Centre for Drinking Water Quality to authorise it for receiving EBR funds for SBM(G), disbursement of the same to the States/UTs implementing agencies, and its repayment.

• To change the name of the Society to “National Centre for Drinking Water, Sanitation and Quality” in place of “International Centre for Drinking Water Quality”.

Impact:

• This decision will benefit around 1.5 crore rural households eligible for an incentive under Swachh Bharat Mission (Gramin), and also Gram Panchayats for Solid and Liquid Waste Management (SLWM) activities.

• The funds will be utilized to achieve and sustain Open Defecation Free (ODF) status in the villages across the country.

Expenditure involved:

• The loan amount of Rs.15,000 crore will be repaid to NABARD as single bullet payment at the end of the 10th year from the date of loan disbursement as per the agreed terms and conditions.

• The EBR funds will be raised through NABARD after considering (the exact requirements/expenditure of the States/UTs and released to the States/UTs implementing agencies. For receiving the funds for SBM(G), disbursement of the same to the States/UTs implementing agencies, and repayment of the loan and interest amount, National Centre for Drinking Water, Sanitation and Quality shall work as a receptacle agency.

• This will help provide adequate and timely funds to the States/UTs for achieving the goal of SBM(G) within the targeted timelines.

Background:

• SBM(G) was launched with effect from 2nd October 2014, with the goal to achieve universal sanitation coverage in rural areas by 2nd October, 2019. For IHHLs, financial incentive of Rs. 12,000 is provided to the eligible beneficiaries for construction of individual household toilets in the prescribed funding share pattern between the Centre and the States. For SLWM activities, the financial assistance is provided with a cap of Rs.7/12/15/20 lakh to Gram Panchayats having up to 150/300/500/more than 500 households respectively. For 1EC, up to 5% of the total project cost can be spent at State/District levels and 3% at the Central level. For Admin expenses, up to 2% of the total project cost can be made. The funds sharing pattern for these activities between the Centre and the States (except North. Eastern States, Jamrau & Kashmir and the Special Category States) is 60:40. For the North-Eastern States, Jammu & Kashmir and the Special Category States, the funding pattern is 90:10.

• The Swachh Bharat Mission Gramin has made rapid progress in advancing sanitation in rural India. As on 31.07.2018, sanitation coverage in India is 88.9%. Over 7.94 crore toilets have been built since 2nd October 2014, with 4.06 lakh villages, 419 districts and 19 States & UTs already being declared Open Defecation Free (ODF). The pace of progress is constantly accelerating and India is on track to achieve ODF by October 2019.

• The Cabinet had approved the SBM(G) on 24th September 2014, with effect from 2nd October, 2014, with the goal to achieve universal sanitation coverage in rural areas by 2nd October 2019. Significant progress has already been made under SBM(G), and with the mission nearing its final, accelerated progress is being seen across States and UTs.

• In order to meet the financial requirements for achieving the goals of SBM(G), for the year 2018-19, in the Budget announcements made by Finance Minister, an amount of Rs.30,343 crore was allocated for SBM(G). This was proposed to be met by Rs. 15,343 crore from General Budgetary support and remaining Rs. 15,000 through Extra Budgetary Resources (EBR). Thereafter, the Steering Group on EBR under the chairmanship of Secretary, Department of Economic Affairs had recommended for raising of the EBR up to Rs.15,000 crore during 2018-19 for SBM(G) through NABARD.

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