JNNURM norms not met,Centre blocks funds

Officials say as 65 cities in 31 states are approaching the Centre with utilisation certificates,only 90 per cent of the funds are being released.

State officials who attended the two meetings in Delhi said they were told that the funds will be released after the required reforms are fulfilled by the state governments are certified by an external monitoring body.

“They just wish to build up pressure on states,” said an official from Lucknow Municipal Corporation who attended one of the meetings.

The JNNURM was launched by Prime Minister Manmohan Singh in 2005 for next seven years ¿ 2011-2012 will be its final year.

In 2007,the Union Ministry of Urban Development had signed a Memorandum of Agreement with the Uttar Pradesh government for its seven cities — Lucknow,Varanasi,Kanpur,Allahabad,Meerut,Agra and Mathura.

As per the agreement and guidelines for the mission,the state had to take up both state and Urban Local Body level reforms in phases.

The procedure,which quietly began about 20 days ago,has irked many states. They find some of the mandatory reforms impractical and have started communicating that to the Center,requesting necessary amendments.

While Punjab has expressed its concern over the implementation of tax reforms,Andhra has sought more time to implement GIS mapping and solid waste management programmes.

Uttar Pradesh has expressed its inability to hand over Fire Services to municipal corporations and integrate corporations with Urban Development Authorities. The state has also asked for more time to implement e-governance projects in municipal corporations.

An official in the state Urban Development Department said over Rs 50 crore of the state’s funds has been held up by the Centre in the past 20-25 days.

“The reforms were to be implemented in phases and UP is very much on schedule as our stamp duty is below 5 per cent,we have already amended our Rent Control Act etc,” said Alok Ranjan,Principal Secretary,Urban Development. “There are some practical problems about which we have communicated to the Central government and hope that they would understand it.”

As far as handing over fire services is concerned,not only UP,but other states too,have said it will not be practical. “As a way out,we have given freedom to the Municipal Corporation to set up their separate Fire Services but no one opted for it,” he said.

Officials said the state has also communicated to the Centre that it will not be possible to hand over the city planning aspect of Urban Development Authorities to urban local bodies and have also sought time to implement e-governance projects like connecting tax collection,GIS mapping.

A senior officer in Union Ministry of Housing and Urban Poverty Alleviation said: “These reforms have not been forced upon the states in a single day. When the agreements were signed,each state was clearly told about the mandatory and optional reforms to be taken up. Even in the guidelines for release of funds,it was mentioned that states will have to fulfill all the requirements including implementation of the reforms before final release of funds.”