Background of Untied Fund:-
Untied Fund is being placed at the disposal of every district/sub-division with a view to provide the Sub-divisional Planning & Development Committee initially to a certain measures of financial freedom and to encourage them to plan some schemes in their decision. This is an earmarked fund for the purpose of encourage local level planning. The schemes under Untied Fund should be a local nature. It is desirable that such schemes help either production or employment generation or both.
Features of Untied Fund:-
1) The type of should be such that can be completed in one or two working seasons i.e. within the same financial year.
2) The schemes should lead to the creation of durable assets.
3) The scheme should be for development works based on local felt needs.
4) The schemes should be productive/remunerative/revenue earning and economically viable.
5) Each individual work should be conceived and completed with the onetime fund allocated for the purpose.
6) The scheme should be of such type that helps removal of some problem of the area.
7) The scheme should be visible and may also help infrastructure development.
The following types of works, in particular shall not be allowed under Untied Fund:-
A. Work which do not fall within the scope of the district plan.
B. Work belonging to commercial organization trusts, registered, societies, private institutions of cooperative institutions.
C. Repair and maintenance works of any type as distinct from expansion and renovation works.
D. Grants and loans.
E. Memorials and memorial buildings.
F. Purchase of inventory or purchase of any type.
G. Acquisition of and or any compensation for land acquired.
H. Assets for an individual benefit, except those which are part of approved echems.
I. Places of religious worship.