Legal Framework To Privatise Urban Core Sector

This announcement was made by urban affairs and employment minister U Venkateswarlu while opening a seminar on `Delhi Vision 2010 - Civic Infrastructure & Environment'. He said the Urban Land Ceiling Act will be amended to allow private sector investment in urban development. The Phd Chamber of Commerce & Industry organised the seminar. Venkateswarlu said partnerships with private sector was being explored to promote formats such as build-own-operate and build-own-lease-transfer.

He said the United Front government has decided to strengthen the municipalities. The 74th Amendment Act provides for constitution of metropolitan planning committee in every metropolitan region. Each area will be entrusted with the preparation of metropolitan development plan. The minister announced constitution of task forces to formulate the plans.

 

Sharing concern of the chamber infrastructure committee chairman Ravi Wig, the minister said further support will be provided to infrastructural development schemes in metropolitan cities and integrated development of small and medium towns.

These schemes aim at the development of integrated infrastructure facilities consisting of a package of remunerative, cost recovery-based and non-remunerative or social service-oriented projects to generate employment and income opportunities there.

The financing patterns under the schemes envisage a mix of Central and state grants, institutional finance and internal resources. The objective, he said, was to multiply the limited budgetary resources by leveraging the same with finance from the market so as to undertake a reasonably large programme of infrastructure development.

Venkateswarlu said the needs of urban areas are enormous and it will be impossible for the government agencies to manage with a few schemes.

He said only a cooperative approach, involving Central, state and local governments and the private sector, with the municipalities playing a Central role, will be able to make a dent on the problems. Budgetary resources alone cannot meet the backlog, he said.

Venkateswarlu said Prime Minister H D Deve Gowda has already constituted a special task force under his chairmanship with finance ministers as members from non-capital region states to suggest ways for mobilising resources.

The minister said increased urbanisation in India is accompanied by severe environmental problems, affecting quality of life.

The urban population of India is expected to rise from 217 million in 1991 to about 430 million in 2011. This growth is expected to take place in the existing cities and towns.

Chamber president P K Rajgarhia suggested steps to strengthen the capital's infrastructure with those who have arrived and in the NCR nodal towns to divert the incoming migrants to those areas.

Wig stressed the need for integrated comprehensive development scheme with a monitoring agency for time-bound implementation of the decision.