Parliament Question: Financial Assistance for Maharashtra under SBM-U 2.0

GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2043 TO BE ANSWERED ON JULY 30, 2026 FINANCIAL ASSISTANCE FOR MAHARASHTRA UNDER SBM-U 2.0 NO. 2043 DR. BACHHAV SHOBHA DINESH: Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state: (a)whether any financial assistance has been released to Municipal Corporations in Maharashtra including Malegaon Municipal Corporation under Swachh Bharat Mission - Urban 2.0 (SBM-U 2.0) and Fifteenth Finance Commission grants for solid waste management during the last three years, Corporation-wise; (b) whether the Government maintains data on per-tonne rates paid by Urban Local Bodies (ULBs) for waste collection, transportation and disposal in Maharashtra and if so, the details thereof; (c)whether the Government has received representations on irregularities in the solid waste contract awarded by Malegaon Municipal Corporation including inflated rates, non-procurement of vehicles, claiming of municipal vehicle repair costs, absence of weighbridge verification and non-payment of workers' wages and if so, the details thereof along with the action taken thereon; (d) whether guidelines exist for transparency and competitive rates in outsourced, Centrally-funded waste contracts and if so, the details thereof; and (e) whether the Government proposes to review Central fund utilisation for waste management by the Corporation, if so, the details thereof and if not, the reasons therefor? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU) (a): Under SBM-U, Central Share of funds are released to the States/UTs …2/--2- on the basis of demand made by States/UTs in the form of complete proposals duly approved by State Level Technical Committee (SLTC) which are further transmitted to ULBs by the concerned State/UT Govt. as per their action plan. Further, under SBM – U 2.0, Govt. of India has allocated ₹ 3758.50 Cr for release as central share to the State of Maharashtra including Malegaon Municipal Corporation. Out of which action plans having central share of ₹ 3731.09 Cr has been approved and ₹1079.8 Cr claimed by the State of Maharashtra so far. Under 15th Finance Commission (FC), cities with 10 lakh population and above are provided with a Challenge Fund of ₹13,029 Cr over a 5-year period for meeting service level benchmarks on sanitation and Solid Waste Management. Further, out of total grant of ₹82,859 Cr for ULBs with less than 10 lakh population, 40% of grants are untied, while 60% is tied to national priorities including Sanitation and Solid Waste Management. Finance Commission recommended grants are released to the ULBs through the State Governments as recommended by 15th Finance Commission (FC). Hence, Corporation-wise details of financial assistance released to Municipal Corporations, particularly for Solid Waste Management, are not centrally maintained by this Ministry. (b): Under Swachh Bharat Mission-Urban (SBM-U) 2.0, the operational guidelines provide a normative estimate of ₹550 per metric tonne for Solid Waste Management for the purpose of extending Central Financial Assistance, as applicable. However, the actual rate for collection, transportation, processing and disposal of municipal solid waste is determined by the respective ULBs through procurement and contractual arrangements. …3/--3- (c): Sanitation is a State subject under the 7th Schedule of the Constitution and, by the 74th Amendment, the devolution of power has been made to the Urban Local Bodies (ULBs) for water and sanitation services. It is the responsibility of the State Government/ULB concerned to plan, execute, monitor and take appropriate action, including inquiry into complaints of irregularities, in respect of solid waste management contracts awarded by them, including the contract awarded by Malegaon Municipal Corporation. This Ministry does not centrally maintain records of specific representations regarding irregularities, including those relating to rates, vehicle procurement, repair-cost claims, weighbridge verification or payment of workers' wages, in individual ULB-level contracts. (d): Under Swachh Bharat Mission-Urban (SBM-U) 2.0, States/UTs and Urban Local Bodies (ULBs) are required to implement the projects in accordance with the Mission guidelines and applicable financial and procurement rules of the respective Government. The Mission provides an enabling environment for transparent and competitive procurement by facilitating the creation of Model Request for Proposals (RFPs) that States/UTs and ULBs may refer to while preparing their tender documents and by facilitating procurement through Government e-Marketplace (GeM). SBM-U 2.0 does not prescribe uniform rates for outsourced Waste Management contracts. The rates for such contracts are decided by the concerned ULBs/implementing agencies based on their requirements, tender conditions and applicable rules. (e): Central Assistance under SBM-U is released to States/UTs through the Single Nodal Agency (SNA) mechanism integrated with PFMS — "SNA …4/--4- SPARSH" under which funds are transferred on a Just-in-Time basis and utilisation is tracked on real time. As sanitation and waste management are State subjects, day-to-day monitoring of fund utilisation by individual Corporations, including Malegaon Municipal Corporation, vests with the State Government of Maharashtra. *****