Rs 16,000 cr sought to set up global finance centre

While demanding five times its previous receipt of funds from the Finance Commission,the state government has sought Rs 16,000 crore solely for its aim of developing Mumbai as an international finance centre.

Written by Express News Service | Mumbai | Published: February 23, 2009 3:39:57 am

While demanding five times its previous receipt of funds from the Finance Commission,the state government has sought Rs 16,000 crore solely for its aim of developing Mumbai as an international finance centre (IFC). The money,the government said on Saturday,will be used for various developmental projects related to infrastructure,railways,roads,ports,water supplies and drainage along with the Dharavi Redevelopment Project.

In its report to the 13th Finance Commission,which was on a visit to the state over the last three days,the government said for becoming an IFC,the city will need “special efforts” in infrastructure,cosmopolitan environment,lifestyle in terms of schools,colleges,recreation facilities,stadiums and quality of governance and security. “We have asked for special funds for Mumbai as there is a plan and scope to develop the city as an international financial centre on the lines of Singapore,London and New York,” said Dilip Walse-Patil,Minister for Finance and Planning.

The government has demanded Rs 1.5 lakh crore in the 13th Finance Commission as against the Rs 36,000 crore received from the previous one.

The Mumbai Metropolitan Regional business plan seeks a total investment in infrastructure of US $ 60 billion till 2021. For successful implementation of the MMR business plan,an estimated amount of Rs 96,707 crore has to be made for the projects to be completed till 2021.

The government has requested 35 per cent assistance from Central resources — an amount of Rs 3,200 crore a year for the next 11 years. With reference to the 26/11 terror attacks,the government has made a “call for very substantial investments and Central assistance on the lines of those provided to Punjab some years ago.”

The government,which makes the highest contribution through tax collection to the Central funds,has again demanded a review of the formulae of considering the backwardness of a region for allocating funds. It asked the commission to make development and tax generation criteria for allocation of funds.

DEMANDS…
Rs 500
cr for security
Rs 435cr for creation of roads and development of Naxalite-hit areas
Rs 50,000cr for development projects 50% waiver on 30-year,Rs 80,000-crore central loan
Rs 4,500cr separate fund for calamities that are not natural
Rs 4,000cr for environment projects to be implemented from 2010-2015

…AND REASONS
Rs 2,500
cr revenue shortfall on budget estimates due to recession
Rs 78,975per capita income in Mumbai,thrice that of 5 districts
Rs 48,171state average income,matched by only 7 districts

For all the latest Mumbai News, download Indian Express App

Advertisement
Advertisement
Advertisement