In the last budget (2005-’06) the Union Finance Minister P Chidambaram had promised a Rs 1,000-crore package for Mumbai. At the end of one year the government of Maharashtra has not received a single penny. What’s worse is the Centre has not responded to their repeated plea to consider the Rs 1,800-crore package to separately address last year’s July 26 deluge.
An official in the ministry of finance and urban development said, “One of the reasons for the inordinate delay in allocation of funds from the Centre was because of several conditions it wanted the state government to fulfil.” But what has upset the state planners is during the last budget the finance ministry had laid special emphasis on turning commercial capital Mumbai into Shanghai. It had made tall promises, raising the expectation levels — and all this just remain on paper at the end of 11 months.
The allocation of Rs 1,000 crore for 2005-’06, promised by the Centre was short listed under the National Urban Renewal Mission (NURM) project. The NURM project was formally inaugurated by Prime Minister Manmohan Singh in December. It took nine months for the announcement of the project and its inauguration.
State finance secretary OP Gehrotra said, “It is true that the Centre had promised us Rs 1000 crore. But we are still to receive the amount.” He hoped the centre would release the funds in the coming months. Another senior secretary in the chief minister’s office said, “ We still have a month (March as year ending) left. Let’s hope that the Centre would release the Rs 1000-crore promised in the last budget.” Under the NURM project, the Centre has provided us an additional Rs 700 crore for the 2006-’07. In that sense we cannot complain about the intention. But both the Centre and the state will have to iron out bureaucratic hurdles that lead to the delay in fund allocation.
Again, between December and February, the state projects submitted to the Centre had to be corrected twice. The Centre insisted on minute details and specific proforma to enable them to facilitate the state’s case for consideration under NURM project.
Two aspects that required intense state-Centre negotiations were related to the scrapping of urban land ceiling and amendment in rent control Act. The Centre wanted an undertaking from the state on these two issues within a time frame before it decided to take up their cause for NURM. The final City Development Plan (CDP) was submitted to the Centre last month. The Union urban joint secretary M Rajamani said the Maharashtra case would be considered on a priority basis by the Centre.
Win some, lose some
Vilasrao Deshmukh, chief minister:
The Budget is forward-looking and addresses the concerns of both the rural and urban India. The new power projects for Maharashtra promised in the 2006-07 Budget will address the power problems in the state. Development of five mega cities under the National Urban Renewal Mission is a big step forward for Maharashtra. Lower loans at 7 per cent to farmers show the UPA government’s concerns.
Nitin Gadkari, State BJP president:
“The Union Budget has nothing in it for the state. It appears the finance minister has forgotten the promises made by Prime Minister Manmohan Singh when he was in Mumbai. Despite having many political heavyweights from the state in the Union Cabinet the state has yet again got a raw deal in the Budget after the Railway Budget."
Jayant Patil, state finance minister:
The Budget has addressed the concerns of rural India, farmers, power and textile sectors. Maharashtra pays 35 per cent of the net revenue of the country. The state had expected a separate package from the Centre for Mumbai.
Dilip Walse-Patil, energy minister:
The Centre has given power sector top priority with Budget allocation of Rs1800 crore. It is a welcome step for Maharashtra reeling under acute shortage of electricity. We will initiate steps to generate 7000 MW in four years. We intend to invest Rs4 crore in transmission and Rs 11 crore in distribution sectors to upgrade our power sector.
(DNA - Daily News & Analysis)
An official in the ministry of finance and urban development said, “One of the reasons for the inordinate delay in allocation of funds from the Centre was because of several conditions it wanted the state government to fulfil.” But what has upset the state planners is during the last budget the finance ministry had laid special emphasis on turning commercial capital Mumbai into Shanghai. It had made tall promises, raising the expectation levels — and all this just remain on paper at the end of 11 months.
The allocation of Rs 1,000 crore for 2005-’06, promised by the Centre was short listed under the National Urban Renewal Mission (NURM) project. The NURM project was formally inaugurated by Prime Minister Manmohan Singh in December. It took nine months for the announcement of the project and its inauguration.
State finance secretary OP Gehrotra said, “It is true that the Centre had promised us Rs 1000 crore. But we are still to receive the amount.” He hoped the centre would release the funds in the coming months. Another senior secretary in the chief minister’s office said, “ We still have a month (March as year ending) left. Let’s hope that the Centre would release the Rs 1000-crore promised in the last budget.” Under the NURM project, the Centre has provided us an additional Rs 700 crore for the 2006-’07. In that sense we cannot complain about the intention. But both the Centre and the state will have to iron out bureaucratic hurdles that lead to the delay in fund allocation.
Again, between December and February, the state projects submitted to the Centre had to be corrected twice. The Centre insisted on minute details and specific proforma to enable them to facilitate the state’s case for consideration under NURM project.
Two aspects that required intense state-Centre negotiations were related to the scrapping of urban land ceiling and amendment in rent control Act. The Centre wanted an undertaking from the state on these two issues within a time frame before it decided to take up their cause for NURM. The final City Development Plan (CDP) was submitted to the Centre last month. The Union urban joint secretary M Rajamani said the Maharashtra case would be considered on a priority basis by the Centre.
Win some, lose some
Vilasrao Deshmukh, chief minister:
The Budget is forward-looking and addresses the concerns of both the rural and urban India. The new power projects for Maharashtra promised in the 2006-07 Budget will address the power problems in the state. Development of five mega cities under the National Urban Renewal Mission is a big step forward for Maharashtra. Lower loans at 7 per cent to farmers show the UPA government’s concerns.
Nitin Gadkari, State BJP president:
“The Union Budget has nothing in it for the state. It appears the finance minister has forgotten the promises made by Prime Minister Manmohan Singh when he was in Mumbai. Despite having many political heavyweights from the state in the Union Cabinet the state has yet again got a raw deal in the Budget after the Railway Budget."
Jayant Patil, state finance minister:
The Budget has addressed the concerns of rural India, farmers, power and textile sectors. Maharashtra pays 35 per cent of the net revenue of the country. The state had expected a separate package from the Centre for Mumbai.
Dilip Walse-Patil, energy minister:
The Centre has given power sector top priority with Budget allocation of Rs1800 crore. It is a welcome step for Maharashtra reeling under acute shortage of electricity. We will initiate steps to generate 7000 MW in four years. We intend to invest Rs4 crore in transmission and Rs 11 crore in distribution sectors to upgrade our power sector.
(DNA - Daily News & Analysis)