4 more City projects to get Central aid

4 more City projects to get Central aid
Deccan Herald

The expected signing of the Memorandum of Agreement (MoA) by the Centre, the State government and the Bangalore Mahanagara Palike to formalise the process for Bangalore to receive funds under the Jawaharlal Nehru National Urban Renewal Mission (JN-Nurm) did not happen on Friday.


The expected signing of the Memorandum of Agreement (MoA) by the Centre, the State government and the Bangalore Mahanagara Palike to formalise the process for Bangalore to receive funds under the Jawaharlal Nehru National Urban Renewal Mission (JN-Nurm) did not happen on Friday. The signing has been put off for a week (December 1).

Official sources said the Centre wanted the State government to clarify on a few issues before signing the MoA.

Friday, however, saw the Central Sanctioning and Monitoring Committee (of JN-Nurm), at a meeting in Delhi, approve for Bangalore four infrastructure projects (estimated at Rs 691.5 crore) as eligible to receive JN-Nurm assistance. The committee is headed by Urban Development Secretary (GoI) Ramachandra includes the finance secretary as a member.


The four projects that were approved are storm water drains remodelling project (Rs 648 crore), and three grade separator projects (Rs 43.5 crore), BMP Commissioner K Jairaj told reporters after the meeting.

The grade separator projects include the Malleshwaram Circle Underpass project which had run into controversy earlier this year due to opposition from a section of Malleshwaram residents. The other two are underpasses at RV Teachers’ College junction and Tagore Circle. All the four projects are approved under JN-Nurm’s submission “Infrastructure and Urban Governance”.

Mr Jairaj noted that in the case of the SWD project for example, the Centre would be contributing Rs 226.8 crore and the State government Rs 96 crore. It is in accordance with the funding pattern under the said submission: 35 per cent and 15 per cent as grants from the Centre and the State respectively; and the 50 per cent to be raised by the ULB (BMP).

Sources noted that the approval for the four projects came after their Detailed Project Reports were presented before the CSMC. Sources said that CSMC members made it known that the grade separator projects should not be stand-alone projects.

The BMP reportedly explained to the committee that these grade separators come under a grid plan and that they are important interlinking junctions to the proposed Inner Core Ring Road. Principal Secretary Urban Development Lakshmi Venkatachalam and senior officers of the KUIDFC were also present.



JM NURM’S GUIDELINES

The state governments and the ULBs including para-statal agencies where necessary would execute MoA with Centre indicating their commitment to implement identified reforms. MoA would spell out specific milestones to be achieved for each item of reform. Signing of MoA will be a necessary condition to access Central assistance. The central assistance will be predicated upon the State Governments and the LBs/Parastatals agreeing to the reforms platform.

A few reforms expected at State and ULB levels

Urban Local Body

*Adoption of modern, accrual-based double entry system of accounting

*Levy of reasonable user charges with the objective that full cost of operation and maintenance or recurring cost is collected within next seven years.

*Internal earmarking within local body, budgets for basic services to the urban poor.

State level

*Implementation of decentralisation measures as envisaged in 74th Constitution Amendment Act.

*Rationalisation of Stamp Duty to bring it down to no more than 5 per cent within next seven years.

*Enactment of Public Disclosure Law to ensure preparation of medium term fiscal plan of ULBs/Parastatals and release of quarterly performance information to all stakeholders.

*Enactment of Community Participation Law to institutionalise citizen participation and introducing the concept of Area Sabha in urban areas.