New Delhi, July 30 (IANS): The central government on Thursday said states and union territories will be penalised for any delay in transfer of funds to the local bodies under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

"States and UTs shall release the central assistance along with the state and UT share to the urban local bodies within seven working days of the release of central share failing which penal interest will be levied," Minister of State for Urban Development Babul Supriyo said.

AMRUT aims to provide basic services like water supply and sewerage to households and build amenities in cities.

The minister said this provision was made in the mission guidelines to avoid delays in the execution of projects under the mission.

He said AMRUT was a time bound programme to be implemented over a period of five years from 2015 with stipulated reforms to be completed in four years.

"To avoid delays in implementation, the ministry has also left the task of preparation, appraisal and execution of projects to the states and UT unlike in the past under JNNURM," the minister told the Rajya Sabha.