Finally, Mumbai to get aid from NURM scheme

Mumbai's Rs 23,000 crore infrastructure projects will soon get a helping hand from the central government under the National Urban Renewal Mission scheme.

This will enable the cash-strapped Brihanmumbai Municipal Corporation and the state government to complete the project on a war-footing.

Speaking to Business Standard on the sidelines of seminar on urban infrastructure, organised by the Bombay Chambers, joint secretary in central government's urban development ministry M Rajamani said, "We expect all formalities to be completed by the end of next month. After that, we will release the first installment of the grant."

The central government has also agreed to finance variability gap funding for Mumbai Metro project to the tune of 20 per cent, state government sources said.

The state government has submitted six infrastructure projects of Mumbai to the central government for its 35 per cent grant under NURM. These include storm water drainage scheme, Middle Vaitarna dam, Mithi river cleaning and beautification, Mumbai Sewerage Treatment Project (II) and Bandra-Worli Sea link project. Collectively, they cost Rs 23,000.

Out of these five projects, the approval process for storm water drainage scheme and Middle Vaitarna dam project is at its last stage, said BMC sources.

However, after releasing the first installment of the grant which will be 25 per cent of the total grant given by the central government, the Centre will review the progress of the project and mandatory reforms which the state government and the BMC need to carry out.

Under the NURM, the state government is required to repeal the Urban Land Ceiling Act and the Rent Control Act while the municipal corporations will have to shift to the approval-based accounting system from the present single entry system.

They will also have to create ward sabhas on the lines of gram sabhas in village panchayats to ensure greater participation by communities in planning and execution of the infrastructure projects.

"The state government has committed to repeal the ULCA in two years and the Rent Control Act in three year," Rajamani said.