NEW DELHI: The finance ministry's quest for enforcing financial discipline
in allocating funds for the UPA government's ambitious Rs 55,000-crore
Jawaharlal Nehru National Urban Renewal Mission has put the urban
development ministry in a spot.
States in desperate need or Central assistance for urban infrastructure
development, have sent projects worth thousands of crores to UDM. But the
finance ministry has allocated only Rs 150 crore for the current financial
year.
Besides, states like Maharashtra and West Bengal which were opposed to
politically sensitive issues like repeal of the Urban Land Ceiling Act,
reforms in the Rent Control Act and rationalisation of stamp duty, have
agreed to take the plunge despite the fear of annoying influential voters.
Sources in UDM say that Maharashtra alone has submitted detailed project
reports (DPR) for cities like Mumbai and Nagpur totalling Rs 8,000 crore.
Next is Gujarat which has asked for Rs 5,000 crore for Ahmedabad, Rajkot and
Surat.
In desperate need of funds to revamp their ageing infrastructure, seven
cities — Mumbai, Pune, Nagpur, Bhopal, Ujjain, Indore and Jabalpur — have
already submitted city development plans (CDPs) to UDM.
''However, the CDPs are being sent to the National Institute of Urban
Affairs for project appraisal. After this, the mission directorate will
examine them before finally sending them to the Central Sanctioning and
Monitoring Committee for approval. But cities will have to wait for Central
funds till the next financial year,'' said a senior official.
The finance ministry has also allocated just Rs 100 crore for the other
component of the mission — basic services for the urban poor.
The policy spat between the finance ministry and UDM over custody of the
mission's funds is still unresolved as the Prime Minister has asked for the
opinion of the Planning Commission and the finance ministry on the issue.
UDM wants to include the money to be allocated for the mission in its budget
from the next financial year.
This was, however, rejected by the finance ministry.
in allocating funds for the UPA government's ambitious Rs 55,000-crore
Jawaharlal Nehru National Urban Renewal Mission has put the urban
development ministry in a spot.
States in desperate need or Central assistance for urban infrastructure
development, have sent projects worth thousands of crores to UDM. But the
finance ministry has allocated only Rs 150 crore for the current financial
year.
Besides, states like Maharashtra and West Bengal which were opposed to
politically sensitive issues like repeal of the Urban Land Ceiling Act,
reforms in the Rent Control Act and rationalisation of stamp duty, have
agreed to take the plunge despite the fear of annoying influential voters.
Sources in UDM say that Maharashtra alone has submitted detailed project
reports (DPR) for cities like Mumbai and Nagpur totalling Rs 8,000 crore.
Next is Gujarat which has asked for Rs 5,000 crore for Ahmedabad, Rajkot and
Surat.
In desperate need of funds to revamp their ageing infrastructure, seven
cities — Mumbai, Pune, Nagpur, Bhopal, Ujjain, Indore and Jabalpur — have
already submitted city development plans (CDPs) to UDM.
''However, the CDPs are being sent to the National Institute of Urban
Affairs for project appraisal. After this, the mission directorate will
examine them before finally sending them to the Central Sanctioning and
Monitoring Committee for approval. But cities will have to wait for Central
funds till the next financial year,'' said a senior official.
The finance ministry has also allocated just Rs 100 crore for the other
component of the mission — basic services for the urban poor.
The policy spat between the finance ministry and UDM over custody of the
mission's funds is still unresolved as the Prime Minister has asked for the
opinion of the Planning Commission and the finance ministry on the issue.
UDM wants to include the money to be allocated for the mission in its budget
from the next financial year.
This was, however, rejected by the finance ministry.