Urban News

Source : The Economic Times Date : 07.07.2009

Budget 2009-10 lays major emphasis on infrastructure

NEW DELHI: The budget has laid major emphasis on infrastructure development. The government proposes to ensure that IIFCL is given greater flexibility to aggressively fulfil its mandate. ( Watch ) To ensure that infrastructure projects do not face financing difficulties arising from the current downturn, the Government has decided that IIFCL will refinance 60 per cent of commercial bank loans for PPP projects in critical sectors over the next fifteen to eighteen months. The IIFCL and Banks are now in a position to support projects involving a total investment of Rs.100 thousand crore in infrastructure. Combined with the steps we are taking to increase public investment in infrastructure, this will provide a big boost to such investment. Highway and Railways The allocation during the current year to National Highways Authority of India (NHAI) for the National Highways Development Programme (NHDP) is being stepped up by 23 per cent over the 2008-09 (BE). Allocation for the Railways has been increased from Rs.10,800 crore made in the Interim Budget for 2009-10 to Rs.15,800 crore. ( Watch ) Urban Infrastructure The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has been an important instrument for refocusing the attention of the State governments on the importance of urban infrastructure. In recognition of the role of JNNURM, the allocation for this scheme is being stepped up by 87 per cent to Rs.12,887 crore in the current budget. To improve the lot of the urban poor, allocation has been enhanced for housing and provision of basic amenities to urban poor to Rs.3,973 crore in the current year’s budget. This includes the provision for Rajiv Awas Yojana (RAY), a new scheme announced in the address of the President of India. This scheme, the parameters of which are being worked out, is intended to make the country slum free in the five year period.

Source : The Hindu Date : 30.06.2009

JNNURM: Lagadapati’s remarks trigger row

Staff Reporter

VIJAYAWADA: Lagadapati Rajagopal, MP, has pleaded ignorance of an order issued by the State government seeking to treat a major part of its share of funding for the projects taken up under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) as loan.

The MP said this at the general body meeting of the Vijayawada Municipal Corporation (VMC) on Monday, the second day of deliberations after only a few issues on the agenda were discussed on Saturday.

The State government’s decision to treat a major chunk of its contribution for the JNNURM projects as loan was reported in these columns recently.

The MP, who attended the VMC general body meeting after a long time, said during a discussion on the issue: “I came to know recently that the State government issued a GO stating that its contribution as grant would be 2 per cent and the remaining 18 per cent would be treated as loan, instead of the entire 20 per cent as grant as stated earlier.”

Acrimonious debate

The statement led to an acrimonious debate between CPI (M) floor leader Ch. Babu Rao and Mr. Rajagopal.

Refusing to accept the MP’s claim of ignorance of the order, Mr. Babu Rao questioned him: “How do you substantiate your claim when the GO was issued in 2006? Were you not a member of the sanctioning committee?”

Sharply reacting, Mr. Rajagopal said: “I can’t study every GO issued by the State government on day-to-day basis.”

The CPI (M) leader reminded the MP that the guidelines were prepared by the Central government, and the State government religiously followed them.

Mr. Rajagopal reacted bitterly and said that he would not like to enter into an argument.

“I am neither a member of the State level committee nor an MLA. The issue has to be sorted out between the urban local body (VMC) and the State government,” he maintained.

In a bid to ease the situation, Mr. Rajagopal said that in the interests of the city and its people a committee could be formed to take up the issue with Chief Minister Y.S. Rajasekhara Reddy.

“We all can request the Chief Minister to exempt the city from footing the huge loan in view of the financial implications it involves,” he said, and left the meeting hall without giving any scope for a further discussion.

Later in the evening, the officials placed before the general body, under section 88K of the HMC Act, the GO and the information pertaining to it.

The ruling Congress and opposition parties decided to postpone the subject for next meeting.

Congress corporators said they would discuss the issue with the officials for taking suitable action and to chalk out a necessary plan.