Lok Sabha Question No. 4832 (UNSTARRED), answered on 2016-12-16
Subject: Non-Governmental Foundations
Ministry: FINANCE
Asked by: OM PRAKASH YADAV, JANARDAN MISHRA

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## Government of India Ministry of Finance

## Department of Economic Affairs

## LOK SABHA

## UNSTARRED QUESTION NO. † 4832 TO BE ANSWERED ON FRIDAY, 16 th DECEMBER, 2016 (AGRAHAYANA 25, 1938 (SAKA)

## NON-GOVERNMENTAL FOUNDATIONS

† 4832.   SHRI OM PRAKASH YADAY: SHRI JANARDAN MISHRA:

## Will the Minister of FINANCE ( वित्  त मंत्री ) be pleased to state:

- (a) whether the Government has prescribed the norms for providing grants to Non-Governmental Foundations;
- (b) if so, the details thereof; and
- (c) the  number  of  such  Non-Governmental  foundations  provided  grants  by  the  Government, State/UT-wise?

## ANSWER

(SHRI ARJUN RAM MEGHWAL)

(a)&(b): General Financial Rules prescribe that as a general principle, grants-in-aid can be given to a person or a public body or an institution having a distinct legal entity subject to the following major stipulations:

- (i) Any  institution  or  organisation  seeking  grant  from  Government  will  be  required  to  submit  an application which includes all relevant information such as Articles of Association, bye-laws, audited statement of accounts, sources and pattern of income and expenditure, etc. enabling the sanctioning authority to assess the suitability of the institution or organisation seeking grants;
- (ii) Awards of grants should be considered only on the basis of viable and specific schemes drawn up  in sufficient detail by the institution or organisation;
- (iii) Grants  to  meet  administrative  expenditure  to  any  private  institutions  other  than  the  voluntary organisations should not ordinarily be sanctioned;
- (iv) In  making grants to non-government or quasi-government institutions or organisations, a condition should be laid down that assets acquired wholly or substantially out of Government grants, except those declared as obsolete and unserviceable or condemned in accordance with the procedure laid down in the General Financial Rules, shall not be disposed of without obtaining prior approval of the authority which sanctioned the grants;
- (v) Before a grant is released, the members of the executive committee of the grantee should be asked to execute  bonds  in  a  prescribed  format  binding  themselves  jointly  and  severally  to  (a)  abide  by  the conditions of the grants by the target dates, if any, specified therein and (b) not to divert the grants or entrust execution of the scheme or work concerned to another institutions (s) or organisation(s);
- (vi) In the event of grantee failing to comply with the conditions or committing breach of the conditions of the bond, the signatories to the bond shall be jointly and severally liable to refund to the President, the whole or a part amount of the grant with interest at ten per cent per annum thereon or the sum specified under the bond.

Apart  from  the  above  conditionalities,  there  are  several  other  safeguards  for  proper  utilisation  of grants  sanctioned  such  as  refund  of  unutilized  grant,  adjustment  of  unspent  amount  against  future  grants, submission of utilization certificates, rendering of annual accounts, audit of account of the grantee institutions, submission of achievement-cum-performance reports, etc.

- (c)     : Information on Non-Governmental foundations which have been provided grants, State/UT-wise, is not maintained centrally.

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