Finance, Property, Contracts
(1) The Consolidated Fund of India annually pays prescribed grants-in-aid to Assam, Bihar, Odisha, and West Bengal, in lieu of their share of net jute/jute-product export duty proceeds. (2) These grants continue only as long as any jute export duty is levied, or for 10 years from the Constitution's commencement, whichever is earlier.
This was a historical compensation arrangement for jute-growing states, ensuring they received financial support tied to jute export revenue even though the underlying export duty itself went to the Union rather than being directly assigned to these states - though this provision's practical effect has lapsed given its built-in 10-year (plus continued-levy) time limit, now long expired.
This is a largely historical provision today, reflecting jute's economic importance to certain eastern Indian states at the time the Constitution was drafted, rather than an ongoing active funding mechanism.