The Hindu Business Line : Centre to grant Rs 35.95 cr for AP urban reforms

ANDHRA Pradesh has become the 11th State to come under the Centre's purview of Rs 500-crore Urban Reform Incentive Fund. The State has signed a memorandum of understanding with the Centre for this purpose.

The Fund seeks to extend reform-driven incentives in rent control laws, repeal of Urban Land Ceiling Acts, rationalisation of stamp duty, revision of municipal laws with the model prepared by the Union Ministry of Urban Development and levy of user charges. On signing the agreement, the Centre has consented to release Rs 35.95 crore, comprising 50 per cent of the total allocation for the State under the fund. However, the State has yet to decide with regard to the Urban Land Reforms Repeal Act and the stamp duty. While reforms in the former segment would get 10 per cent more funds, the latter would get 20 per cent more.

Announcing this here on Wednesday, Mr Bandaru Dattatreya, the Union Minister of State for Urban Development and Poverty Alleviation, said the allocations under the fund would be proportionate to the degree of compliance with the reform targets set by the Union Government.

He said the Government was planning to increase the fund size by an additional Rs 500 crore keeping in view the resource crunch being faced by the urban local bodies. Mr Dattatreya, who held a high-level review meeting of various urban development schemes, said the Centre would consider the State's request to extend `tax-free' status for the proposed bonds to improve the urban infrastructure.

Under the Swarna Jayanthi Shahari Rojagar Yojana, the Centre has sanctioned Rs 7 crore. "We have asked for Rs 50 crore," said Mr B.V. Mohan Reddy, Minister for Municipal Administration (Govt of AP). He said Rs 25 crore has been sanctioned for the National Slum Development Programme.

The Rs 200-crore plan for upgradation of water supply to Anantapur and Hindupur and the Rs 30-crore Jangaon water supply scheme too were discussed.

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