Centre, M'rashtra sign pact on Mumbai infra project

Minister critical of state's lackadaisical approach on securing funds

Minister of state in the Prime Minister's Office (PMO), Prithviraj Chavan, was critical of the Maharashtra government's lacklustre approach in pursuing the Mumbai's infrastructure project with the central government for financial assistance under the National Urban Renewal Mission (NURM) scheme.

He was speaking at the function organised to sign a tripartite memorandum of agreement (MoA) between the representatives of the government of Maharashtra, Municipal Corporation of Greater Mumbai (MCGM) and the Centre to carry out the reforms in the municipal administration to pave the way for a central assistance for the Rs 5,548-crore urban infrastructure project.

The agreement was signed by state urban development secretary Jairaj Phatak, Mumbai's municipal commissioner Johny Joseph and joint secretary in the Union urban development ministry N Rajamani.

Chief minister Vilasrao Deshmukh, Union petroleum minister Murli Deora, Chavan and Mumbai mayor Datta Dalvi were present on the occasion.

Chavan said, "After the last year's deluge, Prime Minister Manmohan Singh immediately approved the Brihan Mumbai Storm Water Drainage Scheme (Brimstowad). But when nothing moved for a year or so, he personally instructed me to ensure that all necessary formalities were carried out for central assistance."

Despite reservations from the finance ministry, planning commission and the urban development ministry, the Prime Minister decided to make exception for the Brimstowad scheme and approved 100 per cent central assistance of Rs 1,200 crore for the project, he added.

He further said that had the state government and MCGM been more pro-active on the issue, funds for the schemes would have been sanctioned much earlier.

Under the scheme, the Centre would give Rs 1,369.39 crore for the Middle Vaitarna dam project, Rs 1,896 crore for Mumbai Sewage Water Disposal Project, Rs 1,284.35 crore for the Mithi River Improvement Scheme while the Mumbai Urban Infrastructure Project will get Rs 998.40 crore.

Under the NURM scheme, the Centre will provide an assistance up to 35 per cent of the project cost, 15 per cent will be borne by the state government and the rest of the expenditure will be made by the local self government bodies concerned.

For receiving the Centre's assistance, the state government will have to repeal the Urban Land Ceiling Act abolish the Rent Control Act, reform its property tax and accounting system and establish an Area Sabha on the lines of Gram Sabhas in the rural areas for participation in the municipal administration.