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Scheme for Financial Assistance towards Building and Equipment Grants to Voluntary Cultural Organiz

Activities: Others

Write up on Scheme for Financial Assistance towards Building and Equipment Grants to

Voluntary Cultural Organizations

(as applicable for 2008-2009)

(Please note that the scheme may be modified for F.Y. 2009-2010)

Download Bank Authorization Letter                                                         DownLoad Adobe Acrobat


(a)The objective of the Scheme is to give grants to voluntary culture organizations for:

(i)Construction of their building;and

(ii)Purchase of specific items of equipments.

b)Requests for additions to and renovations of the existing buildings will not be covered under the Scheme unless the proposals are specifically for modernizing/upgrading/extending auditoria,studios,music halls,theatres etc.

An organization that has already availed of building grants under this Scheme will be eligible to apply for modernization/upgradation/extension assistance only after the expiry of five calender years which will be reckoned from the date of conclusion of the principal construction. 

Eligibility(a)The scheme covers all organizations working in the field for the promotion of culture such as dance ,drama,theatre,music,fine arts,indology and literature .Religious institutions, public libraries , museums, schools , universities , institutions fully funded by Central Governments / U.T. Administrations/Municipalities/Corporations will not be eligible.

(b)Only those organizations which are primarily working in the field of culture for at least 5 years,and have been registered at least for a period of two years under the Registration of Societies Act(XXI of 1860) or similar acts,or as a Trust,and are recommended for assistance by the State Governments,Union Territory Administrations or the Academies duly authorized by the State Governments/U.T.Administration for this purpose,will be considered for grants-in-aid.

Selection Criteria

In selecting organizations for grants-in-aid for the following criteria will be enforced:- 

(i)The organization should have a regional identity,and

(ii)Its charter devoted to the preservation,propagation and promotion of the Indian culture.

Nature of Grant(i)The grant whether for the construction of a building or for the purchase of equipment will be of non-recurring nature. 

(ii)The amount of grant, however, will not at any time exceed the amount collected and/or spent by the organization from other sources including the State-Government/U.T. administration.

(iii)In case the cost of construction is enhanced subsequently,the liability of the Government of India(GOI)will be restricted to the original proposal,and the grantee will meet the extra expenditure from its own sources.

Extent of AssistanceBuilding grant 

(a)The maximum assistance admissible to an organization for the construction of its building will be Rs. 15 Lakhs.

(b)Cost of the land (not marked value)and development charges borne by the organization shall be accounted as matching share .In case the organization has already incurred some expenditure on construction before the sanction of grant, that too shall be accounted as matching share. However,the total amount allowed as matching contribution on account of cost of land and development charges or expenditure on construction prior to sanction of grant or both shall be subject to a ceiling equal to the first instalment of grant.

Equipment grant

(c)the maximum assistance admissible to an organization for purchase of equipments will be Rs. 2.50 lakhs.The grant shall be utilized for the purchase of specific items of equipments such as musical instruments,costumes,audio,video,lighting equipment,state material ,furniture/air- conditioners for the auditorium,music hall,theatre,studio,classroom,etc. as specified in the sanction.

Release of grantThe Building Grant will be released in the following manner. 

(a)First Instalment

On approval of the project, the Ministry will communicate the decision to the organization indicating the quantum of assistance, and the terms and conditions of release. The organization will then have to execute a bond as per the prescribed format. As soon as the organization conveys its acceptance and executes the bond, the Ministry will release an amount equal to 30%of the approved grant as the first installment. (the bond, the resolution, the Pre-Stamped Receipt and the bank authorization letter may be submitted along with the Application form).

(b)Second Installment

The second instalment equal to 40% of the grant approved will be released on submission of :

(i) An audited statement of accounts of the project and a utilization certificate from a Chartered Accountant certifying that the organization has spent:

---the full amount released as the first instalment;

---an amount equal to the first instalment from its own resources;and

---a further amount equal to 40% of the grant.

(ii)An item-wise expenditure incurred till date in the prescribed form.

(c)Third Instalment

The third and final instalment being the balance 30% of the approved grant shall be released on submission of the following documents:

(i)An audited statement of accounts of the project and a utilization certificate from a Chartered accountant, certifying that the organization has spent:-

---the full amount released as the second instalment;

---an amount equal to the second instalment from its own resources;and

---a further amount equal to 30% of the grant.

(ii)An item-wise expenditure incurred till date in the prescribed form.

(iii)A completion-cum-valuation certificate from a State PWD Executive Engineer or concerned civic authority in the prescribed form.

(iv) A certificate from a Chartered Accountant certifying that the work has been completed as per the approved plan and estimate submitted by the organization to the GOI,and also indicating the cost of the construction according the the PWD rates.If the cost of the building so evaluated fall short of the approved estimated cost,the amount of the last instalment of the grant will be reduced correspondingly.

(d)Equipment Grant

The equipment grant would be released in the following manner:

Upto a maximum of 90% of the grant could be released as the first instalment depending on and to match the contribution raised by the organization from other sources. If,however,the organization's contribution falls short of 50% of the approved grant,the release of first instalment would not be considered. The balance will be released after the submission of the following:-

(i)An audited statement of account of the project and a utilization certificate from a Chartered Accountant.

(ii)A valuation certificate from a Chartered accountant to the effect that the project has been completed as per estimates submitted to the GOI alongwith a list of equipments purchased showing the value of each item.

Conditions of Grants(a) Seperate accounts shall be maintained in respect of the grants released by the GOI. 
(b) The accounts and the site of construction shall be open for inspection by the representatives of the Department of Culture at any time for verification.

(c) If the building construction project is not completed within a period of three years from the date of release of the 1st instalment,no further grant shall be released to the organization and the claim will become time barred.

(d) The accounts of the organization will be open to audit at any time by the Comptroller and Auditor General of India or his nominees at his discretion.

(e) Within six months of the close of the financial year of the grant,the grantee shall submit to the GOI a Statement of Accounts audited by a Chartered Accountant setting out the expenditure incurred on the approved project and indicating the utilization of the GOI grant in the preceding year. If the utilization certificate is not submitted within the said period ,the grantee may be asked to refund immediately the whole amount of the grant received together with interest thereon at the prevailing borrowing rate of the GOI unless specially exempted by the GOI.

(f) A register of the permanent and semi-permanent assets acquired wholly or mainly out of the GOI grant should be maintained in prescribed form (FORM GFR-19).Every year, a copy of this register should be furnished to the Department of Culture by the grantee.

(g) The grantee shall execute a bond in prescribed form with two sureties,in favour of the President of India providing therein that he will abide by the conditions of the grant. In the event of his failing to comply with the conditions of the grant or committing a breach of the bond, the grantee and the sureties shall individually or jointly refund to the President of India the entire amount of the grant,together with interest thereon at the prevailing borrowing rate of the GOI.

(h) The first lien on the building and assets acquired with Central assistance will vest in the President of India and neither the building nor the equipment shall be leased or mortgaged to other parties without the prior approval of the GOI. Provided however, that the lease of the auditorium to other parties for temporary use shall be excluded from this rule.

(i)If at any stage the Government are not satisfied about the proper utilization of the Government grant,or of the building after its completion, the Government may ask for the refund of the entire amount of the grant together with interest thereon at the prevailing lending rates of the GOI.

(j)Such other conditions as may be imposed by the GOI from time to time.

Application should be sent throughThe application on a prescribed performa should be sent to the Department of Culture , Government of India through the State Government/Union Territories Administration.
Documents to be attached
The application should be supported by:- 
(a) A copy (i) of the Prospectus ,(ii) Memorandum of association (English/Hindi version attested by a Gazetted Officer),(iii) Rules & Regulation of the organizations and (iv) Constitution of the Board of Management with particulars of each member.

(b)A copy of the Certificate for registration under the Societies registration Act,1860or similar other acts.

(c) Copies of the Accounts audited by Chartered Accountant and Annual Report of the organization for the last five years together with a Budget Estimate for the current year as well as detailed year-wise activities over the previous five years.

(d) Details of grant, if any, already received from the State Government/ Union Territory Administration for the purpose of the construction of the building or for the acquisition of equipment and furniture.

(e) Documentary evidence in support of amount collected so far through donation, subscription etc. e. g. a bank statement.

(f) The time frame indicating when the construction is likely to begin and be completed.

(g) A copy of the supporting documents regarding ownership of land in the name of institution (Attested English/Hindi version) indicating cost of land and development charges, if any.

(h) Plans (as approved by the municipality or the corporation or such civic body as may be concerned) and preliminary estimates of the building plan having the approval of a qualified Engineer not below the rank of an executive Engineer in the State PWD who will certify that the rates are in conformity with the standards of the State government and a copy of the letter according approval for construction from the concerned civic authority should be attached.

(i) An organization which has received building grants in the preceding years from the GOI should also indicate the details of grants received and how the grants were utilized and also attach a copy of the Utilization Certificate from a Chartered Accountant.

(j) The organization desiring grant for equipments should submit the estimated cost of equipments to be purchased, showing value of each item and duly certified by a Chartered Accountant that the estimated cost prepared by him are according to prevailing market rates.

Contact Details

The complete application may be send to US (P.Arts), Ministry of Culture Room No. 202 –D Wing Shastri Bhawan, New Delhi- 110001. The last dated of receipt of complete application form for 2008-2009, in the Ministry is 06-02-2009. For any further querries Mr.O.P.Chhillar (SO) on Phone No:011-23389480 may be contacted. 
The list indicating the name of the organization recommended for the grant would be put up on the Ministry’s website.


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