The prices of properties in Mumbai may or may not get affected by the repeal of the Urban Land Ceiling Act but it would certainly provide impetus to urban infrastructure projects in various cities in Maharashtra, including Mumbai, as the state government has fulfilled the condition to access the funds under the Jawaharlal Nehru Urban Renewal Mission.
Quite fed up with the state government's dilly-dally approach in repealing the ULCA in September, while releasing the grant of around Rs 400 crore under the JNURM, the Centre had warned the state government that if it did not repeal the ULCA, funding under the JNURM scheme would be stopped. Subsequently, the state legislature had passed a Bill to repeal the ULCA in the recently concluded winter session of the Assembly.
The Centre had also asked the state government to carry out reforms like abolishing the Rent Control Act and shifting towards capital value assessment of property tax from rateable value.
This has paved the way for getting further grants of about Rs 8,300 crore for urban infrastructure projects which have been approved by the Centre for grants under the JNURM. It includes projects worth Rs 2,722 crore in Mumbai, said a senior official from the state Urban Development Ministry.
Maharashtra has so far received approximately Rs 750 crore from the Centre and expects another Rs 500 crore by the end of this fiscal, he added.
The process for granting approval to various urban infrastructure projects worth around Rs 30,000 crore, including projects worth Rs 12,000 for Mumbai would also be expedited by the Centre, the source added.