Urban ministry for 6-fold hike in reform-incentive fund

In 2016-17, Rs 400 cr was distributed for those who pursued reforms

Urban development ministry has proposed a six-fold increase in reform-incentive fund to over Rs 3,000 crore annually over the next three years to push implementation of various schemes in the urban sector.

For providing the incentives, the cities will be ranked based on performance under five reforms— getting credit ratings, initiatives for value-capturing finances, adopting trust-and-verify method, land title reforms, and bringing in professionalism in municipalities.

These reforms were recommended by a group of secretaries for bringing in transformation in the urban sector.

Under trust-and-verify approach, the government gives nod for various services, like building construction, first, and then does the verification.

In 2016-17, Rs 400 crore was distributed for those who pursued reforms.

The ministry has come out with implementation framework in respect of these reforms under which it targets to provide online approval facility for building construction in all 4,041 cities and towns by 2019-20.

The move aims to cut on delays for granting permission by adopting 'grant approvals first and verify later' approach.

Besides, the government has set a deadline of March 2020 to make available title certificates for all properties in the next three years on the recommendations of the panel.

Citing a study by consultancy firm McKinsey, the panel noted that 90 per cent of the land records in the country are unclear and cost "land market distortions and unclear land titles" are costing the country 1.30 per cent of the GDP per year.

It recommended enactment of land titling laws and their implementation in a specific time frame.

The ministry will discuss these reforms with states and Union Territories at a national workshop on urban development on Tuesday.

To be chaired by Urban Development Minister M Venkaiah Naidu, the workshop will also witness discussions on new initiatives like Transit Oriented Development Policy, Metro Policy, Green Urban Mobility Scheme, Value Capture Policy and Fecal Sludge Management Policy.