First installment of ₹ 25,863 crore under VB-GRAM G released

Union Minister Shivraj Singh Chouhan released the funds through a video conference from Bhopal at 10 am. File photo: PIB via PTI.

Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan on Sunday (July 5, 2026) released the first installment of ₹ 25,863 crore to all states under the Viksit Bharat-Garantee for Rozgar and Ajeevika Mission (Gramin) rural employment scheme, despite the planning of a Central Bill for the VB-GRAM (VB) programme.

Uttar Pradesh received the highest allocation of ₹ 3,210.76 crore, followed by Andhra Pradesh with ₹ 2,545.5 crore and Rajasthan with ₹ 2,274.37 crore. Tamil Nadu received ₹2,176.84 crore, placing it just below Rajasthan in fourth position, while Kerala received a considerably smaller allocation of ₹925.33 crore.

The minister released the funds through a video conference from Bhopal at 10:00 a.m. “Today, I am very happy and pleased to congratulate all of you, our rural development ministers and officials from both the central and state governments, for the fact that there have been no complaints so far. This means that this policy has been smoothly transitioned from the Russian Federation to the National MGNREGA (Erst Bharat G-RAM G Government Employment Act),” the Union minister said.

The VB-GRAM G Act came into effect on 1 July 2026. Work under this scheme will begin with the preparation of the Viksit Gram Panchayat Plan (VGPP). According to the draft framework for VGPP released by the ministry, the planning process will begin with the preparation of a comprehensive inventory of all assets and facilities in the gram panchayat, including those created under various central and state schemes.

This inventory will be mapped using both geospatial and non-spatial data available on platforms including Yuktdhara and PM Gati Shakti. Yuktdhara is a Geographic Information System (GIS) based planning portal developed by the Indian Space Research Organization (ISRO). PM Gati Shakti is a national master plan launched in October 2021 that brings together more than 16 ministries on a single digital platform for integrated planning and timely implementation of infrastructure projects.

Based on this database, development gaps are to be identified through a GIS-enabled assessment, primarily conducted on the Yuktdhara planning portal. Keeping in view the “identified gaps, local priorities, demand for works and recommendations of Ward Sabhas and Gram Sabha”, the gram panchayat is to prepare a proposal for the VGPP.

“They have converted what was a bottom-up, demand-driven scheme into a centrally designed, top-down infrastructure programme,” said Nikhil Dey of the Mazdoor Kisan Shakti Sangathan.

States were now expected to foot the bill for centrally designed programs that catered to the Centre’s priorities rather than the states’ priorities, he said. “Under the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), it was the sole prerogative of the gram panchayats to decide the field of projects and also prioritize. Now everything will be decided on computer,” said Mr. Dey.

Published – 05 Jul 2026 21:33 IST