Grant-in-Aid to Non-Governmental Organisations, Puducherry

What is the Grant-in-Aid to Non-Governmental Organisations scheme?

Grant-in-Aid to Non-Governmental Organisations is a scheme of the Directorate of Social Welfare, Government of Puducherry. Under it, the government meets 90 per cent of the estimated maintenance cost of a welfare institution run by a voluntary organisation, with the organisation itself meeting the balance.

The Directorate's own scheme page states the position plainly. The eligibility criterion is "Any NGO which should be registered and ordinarily have existed for a period of 3 years continuously with sound financial position and proper infrastructure", and the benefit is "90% of estimated Maintenance cost".

The scheme exists because a large part of Puducherry's welfare infrastructure is run by voluntary organisations rather than by the government directly. Special schools for hearing-impaired and intellectually disabled children, homes for mentally challenged persons, orphanages, homes for the aged, and rehabilitation centres across Puducherry, Karaikal, Mahe and Yanam are licensed and monitored by the Directorate but operated by NGOs. Grant-in-aid is the instrument that keeps them running.

The Directorate operates the grant through two channels:

• State Grant-in-Aid, released from the Union Territory's own budget.
• Central Grant-in-Aid, where the Department of Social Welfare functions as the nodal agency implementing welfare programmes formulated by Government of India ministries through NGOs in the Union Territory, and recommends institutions for central grants.

Both lists are published year-wise on the Directorate's website under the "GIA to NGOs" heading, which gives applicants a public record of what comparable institutions have received.

This is not a personal benefit scheme. Individuals cannot apply. A person seeking welfare support should look at the Directorate's differently abled schemes, social defence schemes or the Women and Child Development Department's schemes instead.

Which organisations are eligible for grant-in-aid?

An organisation can apply if:

• It is registered; under the Societies Registration Act, 1860, or as a public trust under any law in force, or as a charitable company under section 25 of the Companies Act, 1956.
• It has ordinarily existed for three continuous years at the time of application.
• Its financial position is sound, evidenced by audited accounts.
• It has proper infrastructure, the premises, facilities and resources needed to run the institution it seeks aid for.
• It is licensed by the Department of Social Welfare where the institution houses women or children, under the Women and Children Licensing Rules, 1956.
• It has a properly constituted managing body whose powers, duties and responsibilities are defined in writing.
• It is non-sectarian, serving beneficiaries irrespective of religion, caste, colour or creed.

An organisation is not eligible and cannot apply if:

• It is unregistered or registered in a form outside the three permitted categories.
• It has existed for less than three years continuously. The Directorate may relax this in deserving cases where the institution could not be run without government assistance and was started solely to supplement the Government's own social welfare activities, but relaxation is discretionary and not a right.
• Its financial position is not sound or its accounts are unaudited.
• It lacks the infrastructure to run the institution.
• It is run for the profit of any individual or group of individuals.
• It restricts its beneficiaries by religion, caste, colour or creed.

Individuals cannot apply for this grant under any circumstances, whatever the nature of the welfare work they do personally.

What documents are required?

How to apply for grant-in-aid in Puducherry

1. Confirm registration and licensing. Check that the organisation's registration is current and, where women or children are housed, that the licence under the Women and Children Licensing Rules, 1956 is in force.
2. Complete the annual audit and obtain the audited statement of accounts. A sound financial position is an eligibility condition, so the audit is not optional paperwork.
3. Prepare the maintenance cost estimate for the institution for the year ahead, since the grant is fixed at 90 per cent of that estimate.
4. Prepare the utilisation certificate for any grant already received in an earlier year.
5. Compile the annual report, covering activities, staffing and beneficiary numbers.
6. Fill in the grant-in-aid application form, available under the "NGO Related – Download Forms" section of the Directorate's website or at the office, and attach all of the above.
7. Submit the application at the Directorate of Social Welfare, Saradhambal Nagar, Ellaipillaichavadhy, Puducherry, or at the Social Welfare Department sub-office in Karaikal, Mahe or Yanam.
8. Collect the acknowledgement and track the file through the department's annual processing cycle.

How much is granted and when?

The grant is 90 per cent of the estimated maintenance cost of the institution. The remaining 10 per cent is borne by the organisation.

Because the grant is proportional to a cost estimate rather than a flat figure, the amount differs from one institution to another and from one year to the next. What stays constant is the 90:10 ratio and the requirement that the organisation demonstrate its own 10 per cent contribution.

Applications are processed once a year, aligned to the financial year. The Directorate's published GIA lists show grants released to Puducherry NGOs across successive years under both State and Central heads.

Where an institution is a residential home for children, aged persons, disabled persons or other vulnerable persons, the more specific Grant-in-Aid to Non-Governmental Organisations Running Residential Homes under Social Defence applies, which is calculated at Rs 1,000 per inmate per month for 12 months and released in two equal instalments. An organisation should confirm with the Directorate which of the two routes its institution falls under before filing, because the calculation basis differs.

How does an organisation check its grant status?

1. Keep the file number issued by the Directorate on submission.
2. Contact the Directorate of Social Welfare in Puducherry, or the sub-office in Karaikal, Mahe or Yanam.
3. Ask whether the utilisation certificate for the previous grant has been accepted: this is the most frequent blocker.
4. Check the year-wise State Grant-in-Aid and Central Grant-in-Aid lists published on the Directorate's website to see whether your institution appears in the released list.

Why grant-in-aid applications get rejected or held up

• Utilisation certificate for an earlier grant not filed.
• Accounts unaudited or the audit report qualified, so financial soundness cannot be certified.
• Registration lapsed, or the organisation registered in a form outside the three permitted categories.
• Licence under the 1956 Rules missing for an institution housing women or children.
• Less than three years of continuous existence with no case made for relaxation.
• Maintenance cost estimate not submitted or not supported by accounts, so the 90 per cent cannot be computed.
• Own 10 per cent contribution not demonstrated.
• Managing body irregular, no written constitution of powers and duties.

Where do I complain if the grant is delayed?

• Director, Directorate of Social Welfare, Saradhambal Nagar, Ellaipillaichavadhy, Puducherry: +91-413-2205871, email socwel[at]py[dot]gov[dot]in.
• Karaikal: the Collector, Karaikal.
• Mahe and Yanam: the Regional Administrator.
• CPGRAMS at pgportal.gov.in for a written grievance with a tracking number.

The Directorate also maintains an NGO Directory and conducts a Social Audit, both published on its website. An organisation that is listed in the directory and has clean audit and utilisation records is in the strongest position when following up on a delayed release.