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NURM funds a mirage for Indore, Bhopal

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Our Regional Bureau Indore
Last Updated : Feb 15 2013 | 4:55 AM IST
Although both Indore and Bhopal are entitled to a slice of the Rs. 50,000 crore Jawaharlal Nehru National Urban Renewal Mission (JNNURM) pie, it may be a while before any money is forthcoming.
 
The Central Government has made fiscal and administrative norms at both state and municipal level a precondition for bankrolling an urban makeover of the 63-odd cities selected under the project.
 
Scaling down stamp duty to 5 per cent, effective implementation of the 74 th amendment, reform of the urban land (Ceiling and Regulation) Act-1976 and introduction of voluntary retirement schemes in civic bodies (optional) are among the correctional measures to be undertaken at state level.
 
The mission agenda, unveiled on December 3, further calls for concerned states to enact a public disclosure law to ensure transparency, as well as a community participation law to institutionalise citizens' participation in the local governance.
 
Although MP scores on 3 of 7 requirements, compliance with the rest remains iffy. At the municipal level, things are more evenly poised with the Indore Municipal Corporation (IMC) recording a requirement compliance ratio of 50:50.
 
The corporation's abysmal property tax realisation record, a crucial area given the JNNURM's emphasis on fiscal robustness of beneficiary cities, may, however, delay fund receipts.
 
In the period from April-1 to November-30 this year, the IMC realised a total of Rs. 16,49,66,660 in taxes against a recoverable amount of Rs. 57,99,59, 133- collection efficiency of mere 28 per cent, as against the 85 mandated by the mission.
 
Most of the items listed in the optional category are already in place at the IMC. However, even if all requirements are met, there is the matter of bureaucratic delays to contend with. Each city is required to prepare a City Development Plan that lays out the vision for next 20-25 years; second, to submit detailed project reports for financial assistance; and third, to submit a timeline for implementation of urban reforms.

 
 

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First Published: Dec 15 2005 | 12:00 AM IST

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