[mpisgmedia] NURM and PMC and CRISIL CDP

*PMC likely to lose Rs 500 cr NURM funds: Kareer* *State Government says
rollback on tax hike will violate MoU* *Express News
Service*<http://www.expressindia.com/about/feedback.html?mailto=vvdeshmukh@xxxxxxxxxxxxxxxx>

*Pune, February 13:* The general body on Monday approved the roll back on
tax hike. The Urban Development Department (UDD) had warned that Pune
Municipal Corporation (PMC) will have to withdraw from the Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) if it takes any decisions violating
the Memorandum of Understanding signed by Municipal Commissioner Nitin
Kareer on February 2.

With it, the chances of the PMC getting Rs 500 crore in the first phase of
JNNURM for 2006-07 is bleak. Kareer said, ''I will inform the Centre and the
State governments that the commitment given on tax reforms will now be
implemented from 2007-08. Chances of Pune getting the funds were high as
only three municipal corporations had submitted the proposals. But we will
have to respect the GB's decision and little can be done,'' he told
reporters after the GB meeting.

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[image:
web stats analysis] Earlier, during the crucial GB meet, city Congress chief
Abhay Chhajed supported Kareer. Chhajed read a letter which he said had been
sent to the PMC by UDD desk officer Meenal Pednekar. The letter quoted
newspaper reports over the past 10 days, saying that PMC had asked the civic
administration to submit a report on whether the decision on tax structure
was in contrast to the MoU signed by PMC for JNNURM. The letter also stated
that if the decision was against the MoU, PMC would not get benefits of
JNNURM.

However, Vijay Kale of BJP alleged that it was a ploy to blackmail the
House. Later, BJP leaders Vikas Mathkari and Ujjwal Keskar said the letter
was aimed at pressurising the House. ''The State government has no powers to
give suo moto advice to PMC on the basis of newspaper reports. If the State
government fails to apologise within 72 hours, we will challenge the letter
before Lokayukta,'' they said. Earlier the Standing Committee had scrapped
Kareer's tax budget and decided the roll back. While Kareer tried to pursue
it, corporators had gone to the extent of challenging Kareer's authority to
sign the MoU.

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