In order to push implementation of various schemes in the urban sector, the Urban Development Ministry has recommended a six-fold increase in reform incentive fund to over Rs 3,000 crore annually over the next three years.
The government will provide these incentives by ranking the cities based on performance under five reforms which are - getting credit ratings, initiatives for value capturing finances, adopting ‘trust and verify’ method, land title reforms and bringing in professionalism in municipalities. These set of reforms were recommended by a group of secretaries for bringing in transformation in the urban sector.
The Ministry has proposed to increase ‘reform incentive fund’ from Rs 500 crore during 2017-18 to over Rs 3,000 crore per year over the next three years of implementation period. Earlier, in 2016-17, the government had distributed about Rs 400 crore for those who pursued reforms indicated in AMRUT guidelines.
Moreover, with an aim to cut down on delays for granting permission by adopting ‘grant approvals first and verify later’ approach, the Urban Development Ministry has come out with implementation framework in respect of these reforms under which it targets to provide online approval facility for building construction in all 4,041 cities and towns by 2019-20.