State may delay ULCA repeal as deadline is 5 yrs away

Repealing the Urban Land Ceiling Act (ULCA) is going to be the last item on the priority list of the state government which is desperate to get the funds for financing various urban infrastructure projects.

Under the National Urban Renewal Mission (NURM) guidelines, state governments have been asked to carry out eight to nine mandatory reforms such as repealing ULC, Rent Control Act, increasing people's participation in civic administration and planning etc.

For carrying out all these reforms, the central government has given a five year deadline. The states have been asked to submit the schedule of reforms.

A senior government official pointed out that a distant deadline gives the state government a breather and it can very well put the repeal of ULCA last on the agenda.

At the end of five year, nobody knows whether state has to actually honour these commitments, he added.

He further said the state has already given a commitment to the National Democratic Alliance (NDA) government earlier in this regard.

The NDA government had created a similar kind of fund for the urban infrastructure.

However, the NDA government neither asked for any commitment nor given any funds to Maharashtra under the scheme, he pointed out.

He further said, the chief minister has called a meeting of senior officials to discuss the issue of schedules which needs to be given to the central government. The issue will put before the state cabinet afterwards.

The state plans to invest Rs 40,000 crore to upgrade infrastructure in Mumbai. It earlier asked for assistance of around Rs 10,000 crore from the Centre.

However, the Centre had asked the state to wait as it was finalising the guidelines for the NURM.