Chandigarh--- The Local Bodies Department has disbursed Rs. 96 crore as grant in aid to all 148 local bodies in last month with this the total grant in aid disbursed to the local bodies in the current financial year has reach an amount of Rs. 498.44 crore. Disclosing this here today Mr. Chunni Lal Bhagat, Minister for Local Bodies, Punjab said that this amount is meant to compensate the local bodies for the loss of octroi. This grant meant for the overall development of the cities.

The Minister said that the grant in aid was provided to the local bodies out of the collection of the VAT. He said that the department has already released Rs. 402 crore grant in aid to the all local bodies in the first quarter of the current financial year 2013-14. He said that the total amount released to the local bodies up to August 7, 2013 has touched the limit of Rs. 498.44 crore. The respective Local Bodies included Municipal Corporations, Municipal Councils and Panchayats would use this grant for providing better basic amenities and setting up modern infrastructure.

The Minister while divulging the detail of the amount disbursed to the different Local Bodies till August 7, 2013, said that Municipal Corporation Ludhiana has been disbursed an amount of Rs. 123.25 crore, Municipal Corporation Jalandhar Rs. 51.99 crore, Municipal Corporation Amritsar Rs. 43.72 crore, Municipal Corporation Bathinda Rs. 22.22 crore, Municipal Corporation Mohali Rs. 17.21 crore and Municipal Corporation Patiala has been provided the finical assistance of Rs. 12.07 crore.