The LSG institutions will have to make land available free of cost for roads, housing projects and other public properties through contribution. Photo | Express Illustration
Kerala

Kerala: Find your own fund for infrastructure development, LSGs told

The government, in a recent circular based on the recommendation of the sixth Finance Commission, has asked local bodies to prepare an action plan to receive contributions for developmental activities.

K S Sreejith

THIRUVANANTHAPURAM: Apart from plan fund, local bodies in the state will now have to mobilise resources themselves, by collecting private contributions and corporate social responsibility (CSR) funds, to carry out infrastructure development.

The government, in a recent circular based on the recommendation of the sixth Finance Commission, has asked local bodies to prepare an action plan to receive contributions for developmental activities.

The innovative performance of a local body in that regard will, henceforth, be a key factor in rewarding LSG institutions for their excellent work. The sixth Finance Commission had stressed that public contributions could play a major role in resource mobilisation for development activities by local bodies. “There are tremendous chances in mobilising contribution for expanding the facilities of schools, hospitals, anganvadis, buds schools and other welfare institutions run by LSG institutions and the infrastructure projects such as drinking water, roads, play grounds, parks,” the circular says. Corporates can also contribute from their CSR funds, it adds.

The LSG institutions will have to make land available free of cost for roads, housing projects and other public properties through contribution. The contributions received by hospital management communities, parent-teacher associations in schools owned by the concerned local bodies and the contributions made by former students to these schools shall be used for the purpose, the circular says.

“The LSG institutions should make use of the voluntary activities, especially of the youths, and the professional services received from academic institutions as part of their academic responsibility work,” it says.

There should be clarity on matters like from whom the contribution is accepted and the time-frame for spending the amount. Details of the contribution should be included in the annual project report, the circular says. “Receipts should be provided for contributions. Involvement of middlemen is prohibited,” it adds.

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