Rule 230 — GFR

GFR

Rule 230 (1) Principles and Procedure for award of Grants-in-aid. Any Institution or Organisation seeking Grants-in-aid 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 Grant. The application should clearly spell out the need for seeking Grant and should be submitted in such form as may be prescribed by the sanctioning authority. The Institution or Organisation seeking Grants-in-aid should also certify that it has not obtained or applied for grants for the same purpose or activity from any other Ministry or Department of the Government of India or State Government.
Rule 230 (2) In order to obviate duplication in Grants-in-aid, each Ministry or Department should maintain a list of institutions or organisations along with details of amount and purpose of Grants given to them. These details should also be made available on the website of the Ministry/Department.
Rule 230 (3) Award of Grants should be considered only on the basis of viable and specific schemes drawn up in sufficient detail by the institution or organisation. The budget for such schemes should disclose, inter alia, the specific quantified and qualitative targets likely to be attained against the outlay. In the cases of the schemes where Grants are given as part of the expenditure on reimbursement basis (i.e. the expenditure has already been incurred on approved project/scheme and reimbursement from the Government in the form of Grant/Subsidy etc. is due) the same will be treated as the Central Financial Assistance (CFA) and no Utilization Certificate shall be required in such cases of reimbursements.
Rule 230 (4) Recurring Grant is defined as one which is released periodically to the same organization for the same purpose. Non- recurring Grant is one time release to an organization for a special purpose (which could be released in installments). Every order sanctioning a Grant shall indicate whether it is recurring or non-recurring and specify clearly the object for which it is being given and the general and special conditions, if any, attached to the Grant. In the case of non-recurring Grants for specified object, the order shall also specify the time limit within which the Grant or each installment of it, is to be spent.
Rule 230 (5) Central Autonomous Organisations which receive Grants should account for capital and revenue expenditure separately. The Government of India, Ministry of Finance has formulated standard formats for presentation of final accounts, for all Central Autonomous Organisations. All Grant sanctioning authorities should enforce the condition of maintaining and presenting their annual accounts in the standard formats on all Central Autonomous Organisations.
Rule 230 (6) The Grants sanctioning authorities should not only take into account the internally generated resources while regulating the award of Grants but should consider laying down targets for internal resources generation by the Grantee Institutions or Organisations every financial year, particularly where Grants are given on recurring basis every year.
Rule 230 (7) Unspent Balances: When recurring Grants-in-aid are sanctioned to the same Institution or Organisation for the same purpose, the unspent balance of the previous Grant should be taken into account in sanctioning the subsequent Grant. For this purpose, the Programme Division of Ministries/Department shall take help of PFMS Portal to know the bank balance of the recipients before making each release. The instructions of Department of Expenditure regarding the use of PFMS Portal for Central Sector Schemes issued from time to time shall be strictly followed by all Ministries/ Departments. The principles of ‘just in time release’, should be applied for releases in respect of all payments to the extent possible. The following broad principles shall be adhered to:
(i) Cash balance at a time should preferably not be more than 3 months of requirements
(ii) Funds should be released as per actual requirements and that sanction may precede the release of funds, though its validity may be limited to that financial year.
Rule 230 (8) All interests or other earnings against Grants in aid or advances (other than reimbursement) released to any Grantee institution should be mandatorily remitted to the Consolidated Fund of India immediately after finalisation of the accounts. Such advances should not be allowed to be adjusted against future releases.
Rule 230 (9) 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 the prior approval of the authority which sanctioned the Grants-in-aid.
Rule 230 (10) The sanctioning authority may prescribe conditions regarding quantum and periodicity for release of Grants-in- aid in installments in consultation with the Financial Adviser. However, the release of the last installment of the Annual Grant must be conditional upon the Grantee Institutions providing reasonable evidence of proper utilization of installments released earlier. In the cases where Central Financial Assistance (CFA) has been sanctioned, the grant will be released in one installment upon the Grantee Institutions/ Organisation providing complete evidence of achieving the specified objectives and expenditure incurred supported by Audited Statement of Expenditure. In these cases, the grantee institutions will not be required to submit Utilization Certificates.
Rule 230 (11) In order to finalize the Budgetary Estimates of Grants in aid to the Grantee Institutions, the Ministry or Department should impress upon Institution or Organisation desiring Grants from Government, to submit their requirement with supporting details by the end of September in the year preceding the year for which the Grants-in-aid is sought. The Ministry or Department should finalize their examination of the requests with the utmost expedition and make the necessary Budget provision where it is decided to sanction Grants. The Institution or Organisation should be informed of the result of their requests by April of the succeeding year.
Rule 230 (12)
(i) All Grantee Institutions or Organisations which receive more than fifty percent of their recurring expenditure in the form of Grants-in- aid, should ordinarily formulate terms and conditions of service of their employees which are, by and large, not higher than those applicable to similar categories of employees in Central Government. In exceptional cases relaxation may be made in consultation with the Ministry of Finance.
(ii) Grantee Institutions or Organisations should be encouraged to take advantage of the pension or gratuity schemes or Group Insurance Schemes or house buildings loans or vehicle loans schemes etc. available in the market for employees instead of undertaking liability on their own or Government account.
Rule 230 (13) The sanctioning authority, while laying down the pattern of assistance, may decide whether the ownership of buildings constructed with Grants-in-aid may vest with Government or the Grantee Institution or Organisation. Where the ownership is vested in the Government, the Grantee Institution or Organisation may be allowed to occupy the building as a lessee. In such cases suitable record of details of location, cost, name of lessee and terms & conditions of lease must be maintained in the records of the granting Ministry or Department. In all cases of buildings constructed with Grants-in-aid, responsibility of maintenance of such buildings shall be of the Grantee Institution or Organisation.
Rule 230 (14) Any other special terms and conditions or procedures for transaction of business as Government may desire to be followed by the Grantee Institution or Organisation, shall be got incorporated in the Articles of Association or bye-laws of the Institution or Organisation concerned before release of Grants-in-aid.
Rule 230 (15) Grants-in-aid may be sanctioned to meet the bonafide expenditure incurred not earlier than two years prior to the date of issue of the sanction.
Rule 230 (16) The stipulation in regard to refund of the un-utilised amount of Grant-in-aid with interest thereon should be brought out clearly in the letter sanctioning the Grant as well as in the bond so required to be executed.
Rule 230 (17)
(i) As a precondition to the sanction of Grants-in-aid to the agencies where:
(a) the recipient body employs more than twenty persons on a regular basis and at least fifty per cent of its recurring expenditure is met from Grants-in-aid from Central Government; and
(b) the body is a registered society or a co-operative institution and is in receipt of a general purpose annual
Grants-in-aid of Rupees twenty lakhs and above from the Consolidated Fund of India;
(c) the Grant sanctioning authority should ensure that a suitable clause is invariably included in the terms and conditions under which the Grants-in-aid are given, to provide for reservation for Scheduled Castes and Scheduled Tribes or OBC in posts and services under such organizations or agencies. The relative provision may be on the following lines: - “… … … … … (Name of Institution or Organization etc.) agrees to make reservations for Scheduled Castes and Scheduled Tribes or OBC in the posts or services under its control on the lines indicated by the Government of India”.
(ii) While sanctioning Grants-in- aid to Institutions or Organisations referred to in
(a) above, the Grant sanctioning authority should keep in view the progress made by such Institutions or Organisations in employing Scheduled Castes and Scheduled Tribes or OBC candidates in their services.

Rule 230 — GFR

GFR

Rule 230 (1) Principles and Procedure for award of Grants-in-aid. Any Institution or Organisation seeking Grants-in-aid 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 Grant. The application should clearly spell out the need for seeking Grant and should be submitted in such form as may be prescribed by the sanctioning authority. The Institution or Organisation seeking Grants-in-aid should also certify that it has not obtained or applied for grants for the same purpose or activity from any other Ministry or Department of the Government of India or State Government.
Rule 230 (2) In order to obviate duplication in Grants-in-aid, each Ministry or Department should maintain a list of institutions or organisations along with details of amount and purpose of Grants given to them. These details should also be made available on the website of the Ministry/Department.
Rule 230 (3) Award of Grants should be considered only on the basis of viable and specific schemes drawn up in sufficient detail by the institution or organisation. The budget for such schemes should disclose, inter alia, the specific quantified and qualitative targets likely to be attained against the outlay. In the cases of the schemes where Grants are given as part of the expenditure on reimbursement basis (i.e. the expenditure has already been incurred on approved project/scheme and reimbursement from the Government in the form of Grant/Subsidy etc. is due) the same will be treated as the Central Financial Assistance (CFA) and no Utilization Certificate shall be required in such cases of reimbursements.
Rule 230 (4) Recurring Grant is defined as one which is released periodically to the same organization for the same purpose. Non- recurring Grant is one time release to an organization for a special purpose (which could be released in installments). Every order sanctioning a Grant shall indicate whether it is recurring or non-recurring and specify clearly the object for which it is being given and the general and special conditions, if any, attached to the Grant. In the case of non-recurring Grants for specified object, the order shall also specify the time limit within which the Grant or each installment of it, is to be spent.
Rule 230 (5) Central Autonomous Organisations which receive Grants should account for capital and revenue expenditure separately. The Government of India, Ministry of Finance has formulated standard formats for presentation of final accounts, for all Central Autonomous Organisations. All Grant sanctioning authorities should enforce the condition of maintaining and presenting their annual accounts in the standard formats on all Central Autonomous Organisations.
Rule 230 (6) The Grants sanctioning authorities should not only take into account the internally generated resources while regulating the award of Grants but should consider laying down targets for internal resources generation by the Grantee Institutions or Organisations every financial year, particularly where Grants are given on recurring basis every year.
Rule 230 (7) Unspent Balances: When recurring Grants-in-aid are sanctioned to the same Institution or Organisation for the same purpose, the unspent balance of the previous Grant should be taken into account in sanctioning the subsequent Grant. For this purpose, the Programme Division of Ministries/Department shall take help of PFMS Portal to know the bank balance of the recipients before making each release. The instructions of Department of Expenditure regarding the use of PFMS Portal for Central Sector Schemes issued from time to time shall be strictly followed by all Ministries/ Departments. The principles of ‘just in time release’, should be applied for releases in respect of all payments to the extent possible. The following broad principles shall be adhered to:
(i) Cash balance at a time should preferably not be more than 3 months of requirements
(ii) Funds should be released as per actual requirements and that sanction may precede the release of funds, though its validity may be limited to that financial year.
Rule 230 (8) All interests or other earnings against Grants in aid or advances (other than reimbursement) released to any Grantee institution should be mandatorily remitted to the Consolidated Fund of India immediately after finalisation of the accounts. Such advances should not be allowed to be adjusted against future releases.
Rule 230 (9) 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 the prior approval of the authority which sanctioned the Grants-in-aid.
Rule 230 (10) The sanctioning authority may prescribe conditions regarding quantum and periodicity for release of Grants-in- aid in installments in consultation with the Financial Adviser. However, the release of the last installment of the Annual Grant must be conditional upon the Grantee Institutions providing reasonable evidence of proper utilization of installments released earlier. In the cases where Central Financial Assistance (CFA) has been sanctioned, the grant will be released in one installment upon the Grantee Institutions/ Organisation providing complete evidence of achieving the specified objectives and expenditure incurred supported by Audited Statement of Expenditure. In these cases, the grantee institutions will not be required to submit Utilization Certificates.
Rule 230 (11) In order to finalize the Budgetary Estimates of Grants in aid to the Grantee Institutions, the Ministry or Department should impress upon Institution or Organisation desiring Grants from Government, to submit their requirement with supporting details by the end of September in the year preceding the year for which the Grants-in-aid is sought. The Ministry or Department should finalize their examination of the requests with the utmost expedition and make the necessary Budget provision where it is decided to sanction Grants. The Institution or Organisation should be informed of the result of their requests by April of the succeeding year.
Rule 230 (12)
(i) All Grantee Institutions or Organisations which receive more than fifty percent of their recurring expenditure in the form of Grants-in- aid, should ordinarily formulate terms and conditions of service of their employees which are, by and large, not higher than those applicable to similar categories of employees in Central Government. In exceptional cases relaxation may be made in consultation with the Ministry of Finance.
(ii) Grantee Institutions or Organisations should be encouraged to take advantage of the pension or gratuity schemes or Group Insurance Schemes or house buildings loans or vehicle loans schemes etc. available in the market for employees instead of undertaking liability on their own or Government account.
Rule 230 (13) The sanctioning authority, while laying down the pattern of assistance, may decide whether the ownership of buildings constructed with Grants-in-aid may vest with Government or the Grantee Institution or Organisation. Where the ownership is vested in the Government, the Grantee Institution or Organisation may be allowed to occupy the building as a lessee. In such cases suitable record of details of location, cost, name of lessee and terms & conditions of lease must be maintained in the records of the granting Ministry or Department. In all cases of buildings constructed with Grants-in-aid, responsibility of maintenance of such buildings shall be of the Grantee Institution or Organisation.
Rule 230 (14) Any other special terms and conditions or procedures for transaction of business as Government may desire to be followed by the Grantee Institution or Organisation, shall be got incorporated in the Articles of Association or bye-laws of the Institution or Organisation concerned before release of Grants-in-aid.
Rule 230 (15) Grants-in-aid may be sanctioned to meet the bonafide expenditure incurred not earlier than two years prior to the date of issue of the sanction.
Rule 230 (16) The stipulation in regard to refund of the un-utilised amount of Grant-in-aid with interest thereon should be brought out clearly in the letter sanctioning the Grant as well as in the bond so required to be executed.
Rule 230 (17)
(i) As a precondition to the sanction of Grants-in-aid to the agencies where:
(a) the recipient body employs more than twenty persons on a regular basis and at least fifty per cent of its recurring expenditure is met from Grants-in-aid from Central Government; and
(b) the body is a registered society or a co-operative institution and is in receipt of a general purpose annual
Grants-in-aid of Rupees twenty lakhs and above from the Consolidated Fund of India;
(c) the Grant sanctioning authority should ensure that a suitable clause is invariably included in the terms and conditions under which the Grants-in-aid are given, to provide for reservation for Scheduled Castes and Scheduled Tribes or OBC in posts and services under such organizations or agencies. The relative provision may be on the following lines: - “… … … … … (Name of Institution or Organization etc.) agrees to make reservations for Scheduled Castes and Scheduled Tribes or OBC in the posts or services under its control on the lines indicated by the Government of India”.
(ii) While sanctioning Grants-in- aid to Institutions or Organisations referred to in
(a) above, the Grant sanctioning authority should keep in view the progress made by such Institutions or Organisations in employing Scheduled Castes and Scheduled Tribes or OBC candidates in their services.

Rule 230 — GFR

Original Rule Text

Rule 230 — GFR

Original Rule Text