The Hindu                     22.03.2013

Rs. 500 crore more for development mission

Staff Reporter 

Mega city development mission has covered a number of
civic improvement works in the past few years including the expanded
areas. In the State Budget for 2013-14 Finance Minister O. Panneerselvam
announced an additional Rs. 500 crore for works under the mega city
development mission.

On Thursday he said “In the last
two years, this government allocated Rs. 1,000 crore under the Chennai
Mega City Development Mission. These allocations will strengthen the
financial capacity of urban local bodies to take up more projects.”

“In
order to leverage additional funds to take up more projects under these
mission mode programmes, funding will henceforth be project based and
grant would be restricted to a maximum of 75 per cent of the project
cost for Chennai Corporation and financially stronger local bodies.”

Local body contributions

“The
balance of 25 per cent shall be leveraged through local body
contributions which may include loans from financial institutions. For
the financially weaker urban local bodies, grant component of the
project will be 90 per cent and the remaining 10 per cent will be
financed through own funds or loans or by dovetailing from
Infrastructure Gap Filling Fund,” he said.

The State
government in 2012 gave financial approval for a grid system of roads,
street lights, street furniture, footpaths and stormwater drains in
zones comprising the expanded areas of Chennai Corporation as part of
the Mega City Development Mission.

Mr. Panneerselvam
in his revised budget for 2011-12 had announced that Rs. 500 crore under
the Chennai Mega City Development Mission would supplement the
available funds under various schemes.

With the
conclusion of the World Bank-assisted TNUDP III, such funding was being
made available for improvement of infrastructure and basic amenities in
urban local bodies.

But many works under the mega city development mission continue to be delayed in Chennai for want of better monitoring.

“The
work order has been issued for a number of works. But zonal-level
officials are unable to make the contractors complete the work by the
deadline. There should be a better monitoring mechanism,” said an
official of Chennai Corporation.

Many works under the mission continue to be delayed in Chennai.