Cabinet relaxes norms for grant of central funds for UIDSSMT

The Cabinet Committee on Infrastructure has cleared several proposals of the Urban Development ministry including the one to de-link reforms implementation from release of funds for the second instalment in the ongoing projects in northeastern states and Jammu and Kashmir, the UD ministry said in a statement here.

The Cabinet also gave its assent to the proposal that the second installment for the ongoing projects sanctioned under UIDSSMT may be released to those Urban Local Bodies (ULBs) that have completed four out of the six mandatory ULB level reforms, the ministry which implements the UIDSSMT, said.

These four reforms should include "two reforms relating to property tax to the extent of 60 per cent coverage of properties and 70 per cent collection efficiency and in respect of reforms on recovery of Operation and Maintenance cost through user charges to the extent of 70 percent," the statement said.

ULBs not able to achieve the relaxed standards may carry out the works with the funds available with states and these expenses can be reimbursed if required reforms are achieved by March 2014, it said.

As per existing stipulations of UIDSSMT, a total of 23 urban sector reforms needed to be implemented within the seven year Mission period March 2012, which has been extended by two years with the approval of Cabinet Committee on Infrastructure till March 2014, the UD ministry said. MORE