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    Decentralised planning by LSGIs introduced in the State from 1997-98 with devolution of 35 to 40 per cent of state plan funds envisaged identification of local development problems, prioritisation and formulation of plans and their implementation with people’s participation. Section 175 of the Kerala Panchayat Raj Act (KP Act) 1994 and section 51 of the Kerala Municipality Act (KM Act) 1994 provide that the three tier Panchayats, Municipalities and Corporations are to prepare every year a Development Plan for the succeeding year and submit to the District Planning Committee (DPC) for approval. The Grama/Ward Sabhas decide the priorities in planning and select beneficiaries for beneficiary oriented schemes.

   Local Self Government Institutions are provided Plan Allocation in two different streams. They are;

I. Plan Allocation for Centrally Sponsored Schemes and State Sponsored Schemes
II. Plan Allocation for Local Development (Development Fund)

    The schemes included in the first stream have been transferred to LSGIs for implementation. Under this scheme, the guidelines for Centrally Sponsored Schemes are formulated by the Central Government and for State Sponsored Scheme, the State Government. The role of the LSGIs under this stream is to act only as an agency for executing the scheme after deciding the location or beneficiaries of the scheme. For the second stream, the LSGIs have full freedom in formulating and implementing schemes after deciding their priority subject to a general overall framework. Decentralised planning has done well in provision of basic minimum needs in terms of housing, sanitation, water supply, power connection and physical connectivity. It has considerably improved infrastructure in public institutions.


    Guidelines (updated) on planning projects of the Local Self Government Institutions under the 12th plan have been issued as per G.O (M.S) No. 225/2012 dated 18.08.2012 of Local Self Government Department. As per Government Order (M.S) No. 248/12/LSGD, dt. 29.09.2012 guidelines regarding subsidy and as per G.O (M.S) 233/12 dated 07.09.2012, guidelines on project forms have been issued. Projects are to be prepared in compliance with the guidelines of both project planning and subsidy.

    Classification of the funds available to the LSGIs are classified differently as per different Government Orders issued from time to time and different Reports. The receipts of the LSGIs are first classified into four groups: grant-in-aid, loan, own funds and other receipts. Category 'A' funds are Plan funds provided by the State Government from the State Annual Plan Outlay to carry out the projects relating to the functions transferred to, and formulated by, the LSGIs under People's Plan Campaign now renamed as Kerala Development Plan.

GRANT IN AID -           Category A - Grant to Decentralized Plan

                                      Category B - State sponsored Scheme

                                      Category C - General & Maintenance Grant

                                      Category D - Centrally sponsored Scheme

LOAN -                        Category D - Loan from World Bank/ADB

OWN fund -                 Category E - Own revenue

Other receipts-            Category F - Receipts from other sources


Annual plan


2017-18 Plan Subsidy Guidelines


5 year plan


 Pradan Mantri Gram Sadak Yojana (PMGSY) 

   This scheme was launched by the Govt. of India 2000 to provide all-weather access to eligible unconnected habitations as part of a poverty reduction strategy. Govt. of India is endeavoring to set high and uniform technical and management standards and facilitating policy development and planning at State level in order to ensure sustainable management of the rural roads network. The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a 100% Centrally Sponsored Scheme. The PMGSY will permit the Upgradation (to prescribed standards) of the existing roads in those Districts where all the eligible Habitations of the designated population size (refer Para 2.1 above) have been provided all-weather road connectivity. However, it must be noted that Upgradation is not central to the Programme. In Upgradation works, priority should be given to Through Routes of the Rural Core Network, which carry more traffic. According to latest figures made available by the State Governments under a survey to identify Core Network as part of the PMGSY programme, about 1.67 lakh Unconnected Habitations are eligible for coverage under the programme. This involves construction of about 3.71 lakh km. of roads for New Connectivity and 3.68 lakh km under upgradation.




 Members of Parliament Local Area Development Scheme (MPLADS) 

   The Members of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Members of Parliament Local Area Development Scheme (MPLADS). zUnder the scheme, each MP has the choice to suggest to the District Collector for works to the tune of Rs.5 Crores per annum to be taken up in his/her constituency. The Rajya Sabha Members of Parliament can recommend works in one or more districts in the State from where he/she has been elected.

                                   The Nominated Members of the Lok Sabha and Rajya Sabha may select any one or more Districts from any one State in the Country for implementation of their choice of work under the scheme. The Ministry has issued the guidelines on MPLADS Scheme including implementation and monitoring of the scheme.



 MLA- Legislative Assembly Constituency Asset Development Fund ( LAC ADF) 

   This scheme aims at creating durable assets for which each MLA will be allocated 5 Crore during a particular financial year for undertaking capital works in his/her constituency so as to improve infrastructural facilities in all the Assembly Constituencies. Asset means fixed assets for long term uses like buildings, roads , bridges, water supply, sanitation, irrigation, infrastructure, machinery and equipment and fixtures of permanent nature that forms part of infrastructure facilities of Government essential for imparting effective service to the citizens. Major works of the choice of the MLA concerned will be taken up subject to the condition that the cost of works proposed during a year shall not exceed 5 Crore. The LAC-ADF Scheme aims at the upliftment of infrastructure facilities under various Legislative Constituencies by creating durable physical infrastructure of capital nature.


GO(Rt)No7791/2015/Fin Dated 01/09/2015
GO(P) No 257/2015/Fin Dated 26/06/2015
GO(P) No 213/2015/Fin Dated 05/06/2015
GO(P) No 47/2015/Fin Dated 30/04/2015
GO(P) No 90/2015/Fin Dated 19/02/2015
GO(P) No 505/2014/Fin Dated 15/11/2014
GO(P) No 526/2013/Fin Dated 19/10/2013
GO(P) No 161/2013/Fin Dated 09/04/2013
GO(P)No 157/2013/Fin Dated 06/04/2013
GO(P)No.419/2012/Fin Dated 26/07/2012
GO(P)No.337/2012/Fin Dated 12/06/2012
GO(P)No.332/2012/Fin Dated 11/06/2012

Circular No 33/2015/Fin Dated 12/04/2016
Circular No 67/2015/Fin Dated 22/07/2015
Circular No 19/2015/Fin Dated 02/02/2015
Circular No 54/2014/Fin Dated 03/06/2014
Circular No 97/2013/Fin Dated 04/12/2013
Circular No 80/2013/Fin Dated 19/10/2013
Circular No 61/2013/Fin Dated 05/08/2013
Circular No 44/2013/Fin Dated 21/05/2013
Circular No 32/2013/Fin Dated 26/03/2013
Circular No 73/2012/Fin Dated 28/12/2012

 MLA- Special Development Fund (SDF) 

   A Special Development Fund (SDF) is being allotted to the Members of Legislative Assembly of the State at the rate of Rs.25 lakhs per MLA per year. G.O (P) No.247/2004/Fin dated 27/05/2004 contains detailed instructions on the implementation of the scheme. The corpus of the fund, which can be used the members of the House for development schemes in their constituency, is currently 1 Crore.


GO(P) No 378/2015/Fin Dated 26/08/2015
GO(P) No 327/2015/Fin Dated 04/08/2015
GO(P) No 319/2015/Fin Dated 25/07/2015
GO(P)No 148/2015/Fin Dated 24/04/2015
GO(P) No 454/2014/Fin Dated 18/10/2014
GO(P) No 238/2014/Fin Dated 24/06/2014
GO(P) No 587/2013/Fin Dated 03/12/2013
GO(P) No 577/2013/Fin Dated 26/11/2013
GO(P)No 300/2013/Fin Dated 25/06/2013
GO(P)No 271/2013/Fin Dated 04/06/2013
GO(P)No 185/2012/Fin Dated 27/03/2012
GO(P)No 134/2012/Fin Dated 24/02/2012
GO(P)No 583/2010/Fin Dated 15/11/2010
GO(P)No 518/2009/Fin Dated 20/11/2009
GO(P)No 477/2009/Fin Dated 02/11/2009
GO(P)No 595/2007/Fin Dated 18/12/2007
GO(Ms)No 206/2007/Fin Dated 21/05/2007
GO(P)No 124/2007/Fin Dated 21/03/2007
GO(P)No 112/2007/Fin Dated 15/03/2007
GO(P)No 36/2007/Fin Dated 30/01/2007
GO(P)No 35/2007/Fin Dated 30/01/2007
GO(P)No 492/2006/Fin Dated 08/12/2006
GO(P)No 74/2006/Fin Dated 15/02/2006
GO(P)No 453/2005/Fin Dated 17/10/2005
GO(P)No 236/2005/Fin Dated 21/05/2005
GO(P)No 18/2005/Fin Dated 11/01/2005
GO(P)No 544/2004/Fin Dated 22/11/2004
GO(P)No 543/2004/Fin Dated 22/11/2004
GO(P)No 282/2004/Fin Dated 17/06/2004

Circular No 85/2014/Fin Dated 24/09/2014
Circular No .88/2013/Fin Dated 04/11/2013
Circular No 73/2013/Fin Dated 04/10/2013
Circular No. 50/2013/Fin Dated 04/06/2013
Circular No 29/2013/Fin Dated 11/03/2013
Circular No 40/2012/Fin Dated 21/06/2012
Circular No 59/2010/Fin Dated 22/06/2012
Circular No 87/2011/Fin Dated 27/12/2011
Circular No 95/2009/Fin Dated 20/11/2009
Circular No 74/2009/Fin Dated 29/08/2009
Circular No 56/2009/Fin Dated 20/07/2009
Circular No 66/NC3/2008/Fin Dated 01/11/2008
Circular No 67/NC3/2008/Fin Dated 01/01/2008
Circular No 39/NC3/2006/Fin Dated 31/07/2006


   The main objective of the Fund is to provide loans to State Governments and State-owned corporations to enable them to complete ongoing rural infrastructure projects. Government of India created the RIDF in NABARD in 1995-96, with an initial corpus of Rs.2,000 crore. With the allocation of Rs.25,000 crore for 2017-18 under RIDF XXIII, the cumulative allocation has reached Rs.2,92,500 crore, including Rs. 18,500 crore under Bharat Nirman. The project for rural connectivity, social and agri-related sector, are eligible for loans from 80 to 95% of project cost. Loan to be repaid in equal annual installments within seven years from the date of withdrawal, including a grace period of two years. The implementation phase for projects sanctioned is spread over 2-5 years, varying with type of the project and also location of the State.

   The scope of RIDF has been widened to include activities such as rural drinking water schemes, soil conservation, rural market yards, rural health centres and primary schools, mini hydel plants, shishu shiksha kendras, anganwadis, and system improvement in the power sector. From RIDF V onwards, the ambit was extended to projects undertaken by Panchayat Raj institutions and projects in the social sector covering primary education, health and drinking water. The activities to be financed under RIDF X include minor irrigation projects/micro irrigation, flood protection, watershed development/reclamation of waterlogged areas, drainage, forest development, market yard/godown, apna mandi, rural haats and other marketing infrastructure, cold storage, seed/agriculture/horticulture farms, plantation and horticulture, grading and certifying mechanisms such as testing and certifying laboratories, etc.,community irrigation wells for irrigation purposes for the village as a whole, fishing harbour/jetties, riverine fisheries, animal husbandry and modern abattoir.




   The objective of the Kerala Local Government and Service Delivery Project for India is to enhance and strengthen the institutional capacity of the local government system in Kerala to deliver services and undertake basic administrative and governance functions more effectively and in a sustainable manner. The project will have four components. Component one will provide Gram Panchayats (GPs) and Municipalities with additional discretionary funds to provide increased resources for expanded local investment for the creation, maintenance and operation of capital assets in a manner which incentivizes the strengthening of their institutional capacity. Component two will provide capacity-building inputs to strengthen and supplement the existing systems and human resource of Municipalities and GPs to enhance their institutional performance. Component three will strengthen the system of performance monitoring of GPs and Municipalities in Kerala. Component four will support project management. The Project will benefit 941 Grama Panchayats (GPs) and 87 Municipalities in the State. Investments made by the GPs and Municipalities will indirectly benefit the entire population of the State outside the six City Corporation areas.


Programme Implementation Manual


Guidelines for procurement of goods and award of work contracts using funds under (performance grant) of KLGSDP



    IWMP is a centrally sponsored scheme under the Ministry of Land Resources, Department of Rural Development, Government of India. In Kerala the scheme is implemented through Department of Rural Development. All the watershed development programmes like IWDP, Hariyali, NWDPRA etc are now under one watershed development programme viz., IWMP, following the New Common Guidelines published by GoI. The main objective of IWMP project is judicious utilization of every drop of rainwater received, for domestic consumption, agriculture, horticulture, livestock rearing etc thereby attaining self sufficiency in drinking water, increase in employment opportunities, increase the standard of living etc. Government of India has sanctioned projects to be treated under IWMP spread across all 14 districts of Kerala. The total cost of the project is to be shared between the Central and State governments in the ratio 90:10. Kerala is the only state where IWMP is being implemented exclusively and through the complete involvement of local self government organisations and involving maximum participation of local population right from planning through all stages of implementation and monitoring.


Operational Guidlines for Convergence of Various Programmes with IWMP
Benchmarking of Watershed Management Outcomes - Operational Guidelines
Monitoring, Evaluation, Learning and Documentation (MEL&D) of Projects under Integrated Watershed Management Programme (IWMP)
Common guidelines for watershed development projects


   AMRUT is a Centrally Sponsored Scheme under Ministry of Urban Development, Government of India. The Mission was launched on 25th June 2015. In Kerala, the Scheme is being implemented through the Local Self Government Department (LSGD). The Mission Directorate is supported by Mission Management Unit comprises of a team of technical experts in the State and city levels. Purpose of AMRUT is to create infrastructure to provide basic services and to build amenities to households. This will improve the quality of life of all, especially the poor and the disadvantaged. The infrastructure should lead to provision of better services to people. AMRUT aims to support 500 cities having a population greater than one lakh (100,000) during the five year Mission Period – from 2015 – 2020. Mission components are water supply, sewerage facilities, septage management, storm water drains to reduce flooding, Pedestrian, non-motorized and public transport facilities, parking spaces and enhancing amenity value of cities by creating and upgrading green spaces, parks and recreation centers especially for children.

   At present, there are nine AMRUT cities in Kerala. Initially seven cities including the Corporations of Thiruvananthapuram, Kollam, Kochi, Thrissur and Kozhikode and two municipalities of Alapuzha and Palakkad were included under AMRUT. Further, the State put up continuous request for allotting more AMRUT cities considering the notification of new municipalities and the increase in the number of statutory towns to 93 from 59. As a result, the Centre included two more cities under the Scheme – the newly formed Kannur Corporation and the pilgrim city, Guruvayoor.



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