M'rashtra provides Rs 1,000 cr for urban infrastructure

The state government has made a provision of nearly Rs 1,000 crore for various schemes of urban infrastructure under the National Urban Renewal Scheme (NURM) as its share and nearly 70 per cent of the amount will be spent on various infrastructure projects of Mumbai, said state finance minister Jayant Patil.

He was replying to a question during a discussion on general budget in which many members, especially of opposition BJP-Shiv Sena, criticised Patil for not providing funds for Mumbai's infrastructure.

He further said, never ever had such a huge allocation ever been made for urban infrastructure in the state budget.

The allocations for urban development and housing development ministries increased from Rs 1,985.53 crore in 2006-07 budget to Rs 2,547.03 crore.

Patil also pointed out that global tenders have been floated for the redevelopment of Dharavi where the slum is spread over 550 acres and where 46,000 families live. The floor space index (FSI) has been allowed and Dharavi's redevelopment will be carried out on a cluster-based approach. It has been divided into five clusters.

The redevelopment will have a human face as all slum-dwellers will be relocated in the same area and state government wants, Dharavi should rival the Bandra-Kurla complex, he added.

There was demand from all party MLAS to provide relief to sugar co-operatives that are finding it difficult to crush all the sugarcane due to the bumper crop of sugarcane this year. Patil promised to waive the sugarcane purchase tax for sugar cooperatives for 2006-07 which will put additional burden of Rs 100 crore on state finances.

Patil also gave in to popular demand from all party MLAs and MLCs to increase the constituency fund.