The Central Government releases funds for urbal and rural areas in Tripura aiming to strengthen the urban development planning with a number of key projects and bolstering local Bodies for transformation in Rural Tripura.
Fund for Urban areas
To achieve urban planning reforms, the Finance Ministry has released ₹240.5 crore to Tripura while Rs. 31.1259 crore released for Rural bodies as part of the 2nd installment of 15th Finance Commission (XV FC) grants for Tripura.
Announcing this, Tripura Chief Minister Dr Manik Saha wrote in a social media post, “Glad to share that Ministry of Finance, Govt. of India has released ₹240.5 crores to #Tripura for achieving Urban Planning reforms.”
He said this fund will transform 20 Municipal and Nagar Panchayat areas with multiple projects.
Expressing gratitude, Dr Saha wrote, “My heartfelt thanks to Hon’ble PM Narendra Modi Ji, Hon’ble Union Ministers Nirmala Sitharaman Ji & Manohar Lal Ji for your constant support to #Tripura’s progress towards #ViksitBharat”.
Key Projects:
- Water supply & flood management
- Solar-powered street lights & high mast lights
- CCTV installation in all ULBs
- Water ATMs & market development
- Urban Anganwadi Centres & riverfront development
The planned projects include efforts to ensure reliable access to clean water and mitigate flood risks, a persistent challenge in the region, through upgraded water distribution systems and drainage infrastructure.
Additionally, the state will promote energy efficiency and enhance public safety with eco-friendly solar-powered street lights and high mast lights across towns and cities.
Security and surveillance will be strengthened by equipping urban areas with modern CCTV networks to deter crime and ensure public order.
Access to potable water will be improved through innovative Water ATMs, while local economies will be revitalized with upgraded marketplaces.
Funds will also be used to strengthen and enhance facilities in Urban Anganwadi Centres and development of riverfront is another area under the plan.

Fund for Rural Local Bodies
Apart from the Fund for Urban development, the Union Government has released the second installment of the Fifteenth Finance Commission (XV FC) Grants for Tripura rural local bodies, strengthening local governance and driving rural transformation.
Also the same has been released today for rural bodies of Karnataka.
According to a PIB Press Release, In Tripura, the government has allocated Rs. 31.1259 crores in Untied Grants (2nd installment), benefiting 589 eligible Gram Panchayats, along with all Block Panchayats, District Panchayats, and Traditional Local Bodies.
While for Karnataka, Rs. 404.9678 crores in Untied Grants (2nd installment) has been released for 5375 eligible Gram Panchayats, supporting rural local bodies across the state.
These grants empower Panchayati Raj Institutions (PRIs) enabling them to address location-specific needs under the 29 subjects outlined in the Eleventh Schedule of the Constitution.
These funds are utilized for development initiatives excluding salaries and establishment costs. The grants are divided into two categories:
Untied Grants
These can be used for diverse community-specific needs and are aimed at enhancing local infrastructure and development projects.
Tied Grants
Specifically allocated for the critical areas of sanitation (including the maintenance of Open Defecation Free status, waste management, and fecal sludge management) and drinking water (including rainwater harvesting and water recycling).
The release of these funds is a significant move toward decentralizing resources and empowering local governments.
Managed by the Ministry of Panchayati Raj and Ministry of Jal Shakti, the XV Finance Commission Grants are designed to drive grassroots development, enhance local governance, and support initiatives tailored to the unique needs of rural communities.