Promises without provisions

MAHARASHTRA BUDGET

State finance minister Jayant Patil's 10th consecutive Budget speech was high on assurances on Mumbai's infrastructure projects but low on actual provisions.

Apart from earmarking Rs 100 crore for the rehabilitation of those affected by the Rs 1,600-crore Brihanmumbai Storm Water Drainage Project (Brimstowad), no project has got any specific provision nor any deadline has been set for completing these projects.

Though the finance minister assured that the first line of metro between Varsova-Andheri-Ghatkopar would be completed by 2010, the Rs 636 crore viability gap funding (VGF) issue did not find any mention in the Budget speech.

The VGF has become necessary as contract condition puts restriction on fare that can be collected from individual passengers by the developer "" in this case the REL-led consortium.

On the Rs 4,500-crore Mumbai Urban Transport Project II, Patil reiterated the state government's decision to pay Rs 1,130 crore as the state's share for the project, but no substantial provision has been made.

The Budget also talks about the projects undertaken by the Mumbai Metropolitan Regional Development Authority (MMRDA) like developing the elevated skywalk at Bandra station, widening and upgradation of arterial roads in the Mumbai Metropolitan Region (MMR), and beautification of Marine Drive.

But, neither any specific deadline for completion of these projects nor any major initiative on the funding front was announced by him.

However, the bright spot includes the extra floor space index for all the housing colonies developed by the Maharashtra Area and Housing Development Authority (MHADA) if the builders go for the redevelopment scheme.

Apart from this, was the announcement to provide 1 million houses to lower and middle income groups in the urban areas of the state.

The provision for housing department has been more than tripled from Rs 611 crore to Rs 1,900 crore. However, the share of Mumbai is not yet known.

Speaking with Business Standard general secretary of the state BJP unit and MLC Vinod Tavde said, "the government in the state was quick to address the concerns of the builders by accepting their demand to increase the FSI. But, as far as Mumbai's infrastructure projects are concern, no concrete steps have been taken."