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Thursday, January 22, 2026

Gujarat CM initiates payment of Rs 576 crore as additional grant for Octroi compensation to Gram Panchayats

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In Rajkot, Gujarat, state officials celebrated the end of the octroi tax with a new grant of 576 crore rupees for local Gram Panchayats. Chief Minister Bhupendra Patel announced the money to keep rural development programmes running smoothly after the state abolished octroi to boost business.

The announcement came during Vikas Saptah—a weeklong celebration from 7 to 15 October that marks the launch of Prime Minister Narendra Modi’s tenure as chief minister in 2001. On the fifth day of Vikas Saptah, Patel hosted a state‑wide “Viksit Gaam, Viksit Gujarat” event in Rajkot. The ceremony saw him start the grant, honor eight Panchayat‑run institutions for their work under the Swachhata Hi Seva cleaning scheme, and award four self‑help groups.

“Octroi was removed to make it easier for businesses to operate,” Patel said. “To make sure villages keep getting development money, the state has already given more than 576 crore rupees over the last decade as a compensation package. The Finance Commission also keeps increasing grant amounts for rural roads, electricity and water.”

Patel and the government also highlighted the Ministry of Panchayats’ Savvy Panchayat programme. This year, 761 villages earned “Samras” status, ‘Sartorial’ Panchayats in the state, and the number of young leaders in village councils has jumped. Nearly a fifth of the village heads are now younger than 40 and even some hold PhDs.

The chief minister praised Prime Minister Modi for building strong Panchayats and supporting rural projects such as Samras Gram, Tirthgram, E‑gram, Jyotigram and Pavan Gaam. He noted that what used to take a municipality 10 000 rupees to approve now can handle up to one crore rupees in fewer days.

During the event, the government reinforced its support for women’s groups. The “Drone Didi” scheme trains women in drone operations, giving them a new source of income. Patel encouraged local businesses to buy and sell more indigenous products, following Modi’s “Swadeshi” push.

In another highlight, Patel opened a new 194‑crore rupee development project in Rajkot city as a Diwali gift to the city. He was joined by local leaders and national politicians, including Rajkot mayor Naynaben Pedhadiya, the city mayor, and ministers from the state’s rural housing and development department.

The ceremony ended with speeches from the district Panchayat president and officials from the Panchayat Department. The event underscored Gujarat’s ongoing commitment to rural growth and its role at the heart of India’s “Aatmanirbhar Bharat” vision.

Source: aninews



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