(1) In the first yeaj of the implementation of the Act, seventy five per cent, of the total Central share of expenditure, calculated on the basis of estimated annual allocation of food grains for the entitled persons and households, the norms of expenditure and Central share as mentioned in sub-rule (1) of rule 7 shall be released to the State Government in advance as first instalment, at the beginning of financial year.
(2) The balance twenty five per cent, of the Central assistance shall be released in the following i financial year.
(3) The admissibility of total annual Central assistance and its amount shall be calculated out on the basis of,-
(a) the quantity of food grains actually distributed during the financial year under the Act;/
(b) actual per quintal rates at which the expenditure was incurred by the State Government or Union territory on intra-State movement and handling of food grains and margins paid to fair price shop dealers, or the norms of expenditure specified in sub-rule ( i ) of rule
(7), whichever is lower; and
(c) norms of Central share specified in sub-rule (1) of rule 7.
(4) After release of first instalment, if any amount is due, it shall be released as the second instalment.
(5) In case of release of excess amount in the first instalment, the same shall be adjusted against due Central assistance for the subsequent financial year.
(6) For release of second instalment, the State Government shall furnish information in the proformas prescribed at Schedule I and Schedule II to these rules.
(7) In subsequent years, Central assistance shall be calculated on the basis of;
(a) estimated annual allocation of food grains for the entitled persons and households to the State;
(b) the actual per quintal rates at which expenditure was incurred by the State Government or Union territory during the previous year on intra-State transportation and handling of food grains and margin paid to the fair shop dealers separately or the norms of expenditure mentioned in sub-rule (1) of rule 7 whichever is lower; and
(c) norms of Central share specified in sub-rule (1) of rule 7.
(8) Seventy five per cent, of the Central assistance estimated under sub-rule (7), shall be released as first instalment in the beginning of the financial year.
(9) The balance twenty five per cent. Central assistance shall be released as second instalment in the next financial year subject to the conditions specified in sub-rules (3) (4) (5) and (6).