Statewide Guidelines To Be Framed For Use Of Aashray Nidhi: Says Rural Development Minister Prahlad Patel

Statewide Guidelines To Be Framed For Use Of Aashray Nidhi: Says Rural Development Minister Prahlad Patel

Shelter Fund, commonly called Aashray Nidhi, is the amount that a coloniser has to deposit in Municipal Corporation

Staff ReporterUpdated: Friday, September 12, 2025, 11:58 PM IST
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Union minister Prahlad Patel |

Indore (Madhya Pradesh): In a significant move aimed at improving infrastructure in rural areas, panchayat and rural development minister Prahlad Patel on Friday announced that the Madhya Pradesh government will soon formulates statewide guidelines for the use of Aashray Nidhi (Shelter Fund).

Speaking at a review meeting held at the Indore Collectorate, Patel emphasised that the funds collected from developing colonies in rural areas should be used within the same Panchayat for local development. "This is the people’s money—it should benefit their own villages first," the minister said.

Patel added that Aashray Nidhi currently holds nearly Rs 180 crore in the district, but only Rs 20 crore worth of development work has been approved under 76 projects in the four assembly constituencies of rural areas in the district..

Water resources minister Tulsiram Silawat, ACS Dipali Rastogi, MP Kavita Patidar, CEO of District Panchayat Siddharth Jain, MLAs Usha Thakur and Madhu Verma and other public representatives and officers of the concerned departments were present in the meeting.

Patel said that colonies are now developing rapidly in the rural areas of the state. Aashray Nidhi received under the Panchayati Raj Act has a big role in the development of these colonies.

Our effort is that the Aashray Nidhi should be used in the same Panchayat from which the amount is recovered. There is also a need for proper use of Aashray Nidhi. In view of this, a detailed guideline is being prepared by the state government.

Patel reviewed the recovery and use of Aashray Nidhi received under the Panchayati Raj Act, implementation of legal provisions regarding rural colonies, proposed livelihood building and cleanliness related works under Ajeevika Mission etc.

He said that special attention should be paid to the recovery of Aashray Nidhi. Patel directed that the amount should be fully utilised. Aashray Nidhi should be used for basic facilities like drainage, electrification, drinking water etc. in colonies of rural areas. Minister Patel reviewed the progress of Swachhta Abhiyan being run in the district.

What is Aashray Nidhi

Shelter Fund, commonly called Aashray Nidhi, is the amount that a coloniser has to deposit in Municipal Corporation to obtain the colony development permission. The Corporation carries-out development work form this fund.

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