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Urban Development Ministry sets guidelines for schemes launched by PM

26 Jun 2015 Evaluate

After the launch of three schemes by Prime Minister Narendra Modi, operational guidelines have been set by the Urban Development Ministry for execution, approval of projects under these three missions (Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All).

For AMRUT scheme, a set of 11 reforms need to be executed in 4 years, which includes promoting e-governance, improving collection of various taxes, fee and user charges, augmenting double entry accounting, constitution and professionalization of municipal cadre, preparation of GIS-based master plans, devolution of funds and functionaries to urban local bodies, review of building by-laws, setting up financial intermediaries for pooling and disbursement of resources, credit rating of urban local bodies, energy and water audit and achieving Swachh Bharat Mission. It also stated that, States need to transfer funds to Urban local bodies within 7 working days of transfer by the Centre. Funds will be allocated  according to the urban population and number of towns/cities in each State/UT.

Ministry has stated that the central resources for Smart Cities mission will be used only for infrastructure projects that have larger public benefits. Special Purpose Vehicles (SPVs) will be provided for implementation of Smart City plans with 50-50 equity of States and Urban local bodies. According to the guidelines, 500 acres is the minimum area norm for retrofitting; 50 acres for re-development; 250 acres for Greenfield projects. The criteria will be 50 % for North-Eastern and Himalayan States. About 10 per cent of energy needs are to be met from renewable sources, 80 % of building construction to be green and 35 % of housing in green field projects to be for Economically Weaker Section (EWS), in smart cities. The cities which are been selected will be provided Rs 100cr per year.

In the scheme of Housing for all, the ownership of the houses will be in the name of woman or jointly with husband. It also stated that the houses of 30sq. m carpet area to be built for EWS category. If there is non availability, the States can accept their beneficiaries and increase the area while meeting the additional expenses. Rs 1 lakh per house will be provided by the Centre for slum redevelopment project in the State to make them operable. Once the loan is sanctioned to the beneficiary an interest subvention at 6.50% will be paid soon in order to bring down the EMI.

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