M'shtra clears projects for NURM funding

The steering committee headed by Chief Minister Vilasrao Deshmukh on Tuesday cleared the list of proposals to be submitted to the central government under the National Urban Renewal Mission (NURM).

However, vexed issues such as the repeal of the Urban Land Ceiling Act (ULC) and Rent Control Act (RCA) didn't figure in the meeting.

The steering committee comprises of representatives of five municipal corporations where NURM is to be implemented and local MPs. Under the NURM guidelines, states seeking central funds need to implement nine mandatory reforms including the repeal of ULC and RCA.

A senior official from the chief minister's office confirmed that the vexed issues were not discussed. He said, "Only such projects, for which a grant is to be sought from the Centre, were discussed."

The Centre has given five years for carrying out reforms and the state has to give a commitment to carry out such reforms within the timetable for being eligible to get NURM funds, pointed out another official.

The city projects which were cleared by the steering committee include Rs 2,376-crore sewage project, Rs 1,800-crore storm water drainage project and Rs 1,600-crore Upper Vaitarna irrigation project.

Under the NURM guidelines, the central government will provide a grant of 35 per cent for urban infrastructure projects, while states have to contribute 15 per cent of the project cost and the rest 50 per cent has to be raised by the concerned municipal corporation.