Now, Finance Ministry puts brakes on project
Friday, 04 December 2009 10:39
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The New Indian Express 04.12.2009Now, Finance Ministry puts brakes on project
NEW DELHI: Even while the Urban Development Ministry is toiling hard for the implementation of the metro rail project in Kochi, it is learnt that the Finance Ministry has been raising questions on whether Kochi should be the next claimant as six mega-cities are currently on with metro projects. Despite objections being raised by the Finance Ministry, Urban Development Minister S Jaipal Reddy chose to include the Kochi Metro in the list of metro projects at a function attended by Prime Minister Manmohan Singh in Delhi on Thursday. "We are going for metro projects in Kolkata, Delhi, Mumbai, Chennai, Bangalore, Hyderabad and in due course in Kochi", Reddy said while addressing the national conference of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Later, he told Express that he was hopeful of the issues pertaining to the Kochi Metro project being sorted out and bringing the matter to the Cabinet for discussion. "We are in talks with the Finance Ministry and the Planning Commission. We expect that the project would be discussed in the Cabinet soon", he said. However, he evaded the question, whether the Planning Commission had also joined the `objecting club'. But it is learnt from sources in the Ministry that the objections being raised by the Finance Ministry were not too undemanding to be downplayed. "The Finance Ministry is unconvinced about the viability of the project, and it is considering whether other cities should be awarded metro projects before Kochi gets it. It is also skeptical about the funding pattern", an official told Express. The objections on the population factor and resource crunch, learnt to have been raised by the Finance Ministry, might take the project back to square one as the same questions were raised by the Planning Commission earlier. But the Urban Development Ministry countered the Finance Ministry, stating that other cities were not so keen to have metro projects implemented.
Last Updated on Friday, 04 December 2009 10:48
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Bihar seeks changes in JNURM norms
Friday, 04 December 2009 07:31
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The Times of India 04.12.2009 Bihar seeks changes in JNURM normsTNN 4 December 2009, 03:56am IST PATNA: Bihar has urged the Centre to introduce changes in the Jawaharlal Nehru Urban Renewal Mission (JNURM) so that cities having a population of two lakh or more could be eligible for being selected under the mission.
Currently, cities having a population of 10 lakh or more are eligible for JNURM funds and the Centre is mulling over the idea of bringing down the population criteria to five lakh.
"The proposed move of the Centre would not be of any benefit to Bihar as except Patna none of the cities in Bihar have a population of five lakh or more," deputy chief minister Sushil Kumar Modi, who holds the additional charge of the urban development department, said while speaking at the fourth national conference on JNURM at Delhi on Thursday.
He also pressed for enhancing the JNURM fund for Bihar from the existing Rs 1,500 crore to Rs 5,000 crore claiming that the present sanctioned amount was very less for a developing state like Bihar.
Speaking about the fund-sharing formula under which the Centre gives 50% of the fund for JNURM schemes, the state concerned gives 30% and the remaining fund is mobilized by the urban local body (ULB) concerned, Modi said that since the financial condition of the ULBs in Bihar is very poor, their share too is contributed by the state government. Modi pressed for adopting a 80:20 fund-sharing formula between the Centre and the state for the JNURM schemes meant for Patna.
The deputy CM also said that the Centre should compensate Bihar financially for ensuring the state's adherence to bring down the stamp duty to 5% in accordance with the JNURM norms as reduction in the duty would adversely affect the revenue collection.
Modi also pressed for introduction of employment guarantee schemes on the pattern of NREGA for the urban areas.
Manmohan Singh for urban reforms to check chaos
Friday, 04 December 2009 06:48
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Deccan Herald 04.12.2009 | Manmohan Singh for urban reforms to check chaos | | New Delhi, Dec 3 (PTI): |
Noting that urban chaos was becoming a way of life, Prime Minister Manmohan Singh on Thursday emphasised on urban reforms, saying cities and towns are not an acceptable face of a rapidly modernising and developing economy. |
 "As infrastructure struggles to keep pace with demand, urban chaos is becoming a way of life. Our cities and towns are not an acceptable face of rapidly modernising and developing economy," he said at the national conference of JNNURM, to mark the fourth anniversary of the flagship programme of the government.
He said the success of JNNURM was critical to tackling the problems that go with rapid urbanisation.
Singh said the Centre has committed substantial funds for urban renewal along with the states and urban local bodies.
He said the two ministries of Urban Development and Urban Poverty Alleviation have approved projects worth Rs 103,462 crore for which the Centre has committed an assistance of Rs 55,625 crore.
"It is good that the focus of projects approved under the Mission has been on basic services like water supply, sewerage, drainage, solid waste management, improvement of slums and construction of houses for the poor," he noted.
Stressing the government's commitment to urban sector, he said JNNURM has created a "paradigm shift" in how the urban sector is viewed, both at state and city levels.
"This government can take great pride in having launched a Mission that is a game changer for urban India," the Prime Minister said.
He said the balanced development of the urban sector is an integral part of the strategy for inclusive growth.
Pointing out that the process of municipal reform under the Mission needs to deepen and be more even across cities, Singh said the urban local bodies have to develop the capacity to provide efficient, equitable and transparent governance.
"They have to have the ability to conceive, design and implement large projects. They have to be sensitive to the needs and welfare of the urban poor," he said, adding that improving the financial health of the municipalities was a priority.
"The states should fulfill their obligations to devolve functions and finances to municipal bodies. State Finance Commissions have to be set up periodically and their recommendations implemented in both letter and spirit," he said.
Noting that only urban local bodies in good financial shape would be able to attract private investment or assistance from multilateral financial institutions, Singh said both of these are indispensable for financing the development of our cities.
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