No.XVIII.KL-28/2002-24820/G.P.,BBSR.,Dated the 16^th Dec,2002.

Sub: Principle of distribution of Kendu Leaf Grant and its utilisation.

1. Principle of distribution of Kendu Leaf Grant and its utilisation was prescribed vide Resolution No.11341-XVIII-23/86/GP.,dt.21.6.86 of earth while C.D. and P.R.(G.P.Deptt., Amounts annually released by Forest Deptt. towards K.L.Grant was being distributed to Panchayat Samitis and Gram Panchayat of K.L.growing Sub-Divisions in accordance with the aforesaid resolution. The State Finance Commission recommended additional allocation of funds to Panchayati Raj Institutions. They further recommended that Zilla Parishad should also get a share from K.L.Grant. Considering all aspects, the Govt. have now decided the following policy for distribution of K.L.grant.

1. 90 % of the amount available under K.L.Grant may be distributed among Grama Panchayats, Panchayat Samities and Zilla Parishads of K.L. Growing areas at the ratio of 72 :10:8 respectively.
2. 10 % of the amount available under K.L.Grant may be retained at the level of Govt. for distribution for socially relevant purposes and activities.

2.1 Now Govt. have been pleased to decide, in supersession of all previous orders and instructions, that the distribution and utilisation of K.L.grant shall hereafter be governed in accordance with the following principles:

2. DISTRIBUTION OF GRANTS.

1. 10 % of the amount available under K.L.Grant may be retained at the level of Govt. for distribution for socially relevant purposes and activities. This amount shall in accordance with the present practice, be described as the Hard Case Kendu Leaf Grant.

2. UTILISATION OF K.L. GRANT BY GRAMA PANCHAYATS/ PANCHAYAT SAMITI AND ZILLA PARISHAD.

1. Grama Panchayaat/Panchayat Samiti /Zilla Parishad will utilise 80 % of K.L.Grant received during a financial year for infrastructure development according to shelf of projects approved by each tier of PRIs. A separate resolution will be passed in the Grama Panchayat/ Panchayat Samiti /Zilla Parishad indicating the project wise allocation of funds out of K.L.grant. There shall not be any overlapping in incurring expenditure out of K.L.grant and other sources.
2. When a project is selected for execution under K.L.grant, full cost shall be provided out of K.L.grant and grains allocated to the P.R.Is. The project shall be completed during one financial year.
3. The amount available under K.L.grant shall not be spent for completing a portion of the project.
4. P.R.Is may purchase private land for construction of infrastructure if Govt. land is not available.
5. If the Gram Panchayats, Panchayat Samiti and Zilla Parishad intend to pool the amount available with them for construction of a project requiring substantial big amount, resolution of Panchayat Raj bodies alongwith the recommendation of the Collector shall be sent to Govt. for approval.
6. 10 % of the K.L.Grant received during a financial year shall be spent for providing services to public in respect of Primary Education, Primary Health, Safe drinking water, street light, sanitation and public distribution system. Roads and buildings are not to be constructed under this sector. However, toilets and drains may be constructed under sanitation programme.
7. Rest 10 % shall be spent under the production activities. Under these activities village artisans may be imparted training for improvement of their skill, improved instruments may be provided to them. Grama Panchayats may purchase agricultural implements and provide the same farmers on hire. Self help group may be assisted under this sector.

3. HARD CASE KENDU LEAF GRANT.

1. The amount available at the level of Government under Hard Case K.L.grant shall be utilised for the following purposes.

(i) Promotion of Socially relevant purposes and activities and;

2. Improvement of Panchayati Raj administration.

1. Non-political institutions registered under the Societies Registration Act, Government aided institutions and government institutions shall be sanctioned funds under the provisions of paragraph 3.1.
2. The amount released under Hard Case K.L.grant shall be utilised through Panchayati Raj Institutions.