States to be penalized for delay in transfer of funds to ULBs under Atal Mission

Funds to be transferred in 7 days States and Union Territories will be penalized for any delay in transfer of funds to the Urban Local Bodies under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) which was launched on June 25, 2015.

Shri Babul Supriyo said that States and UTs shall release the Central Assistance along with the State/UT share to the Urban Local Bodies within seven working days of the release of Central Share failing which penal interest will be levied. He said this provision was made in the Mission Guidelines to avoid delays in the execution of projects under the Atal Mission.

The Minister stated that AMRUT is a time bound programme to be implemented over a period of 5 years from 2015 with stipulated Reforms to be completed in 4 years. To avoid delays in implementation, the Ministry of Urban Development has also left the task of preparation, appraisal and execution of projects to the States/UT unlike in the past under JNNURM.

Under AMRUT, Central Assistance ranges from one-third of the project cost for cities with a population of above 10 lakh to 50% for cities/towns with a population of less than 10 lakh for projects pertaining to water supply, sewerage, septage management, storm water drains and urban transport. Central government will bear 50% of the cost of projects related to development of green spaces and parks and 100% of the cost for capacity building and implementation of reforms.

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