BANGALORE: The former Mayor P.R. Ramesh on Tuesday urged the Centre to enact a separate Act for major cities which have a population of more than four million, and allocate five per cent of the total taxes collected by the State and Central Governments to the urban local bodies (ULB) of these cities.

Addressing presspersons here, Mr. Ramesh said it is difficult for the ULBs of these cities (Kolkata, Mumbai, Delhi, Chennai and Bangalore) to develop infrastructure and administer the city with the meagre annual grants of Rs. 95 crore recommended by the State Finance Commission (SFC).

On the functioning of the Bangalore Mahanagara Palike (BMP), the former Mayor said the BMP requires over Rs. 750 crore for administration purposes. "But the revenue, including the grants, does not exceed Rs 700 crore. Though the SFC has recommended annual grants of Rs. 95 crore, we are only getting Rs. 65 crore from 2000-2001. Before the SFC was set up, the State Government was giving us over Rs. 82 crore collected as Octroi compensation, stamp duty surcharge, entertainment tax and vehicle tax from citizens. It is unfortunate that these grants have been stopped," he said.

Pointing out that he had faxed a memorandum in this regard to Union Urban Development Minister Jaipal Reddy, Mr. Ramesh said he will soon lead a team of corporators to Delhi. "We will meet the Minister and explain the need for more allocation," he said.

Demanding a five per cent allocation of the total tax (sales tax, excise, customs, entry tax, professional tax, income tax, road tax and service tax) collected by the State and Central Governments for the ULBs of the respective city corporations, Mr. Ramesh said these major cities can be exempted from the SFC grants. "These cities need bigger allocations and not the meagre SFC grants," he said.

The ULBs of these cities should also be allowed to have joint ventures and public-private partnerships for developing infrastructure to match international standards. "It is essential for a city development investment policy to be evolved for this purpose," the former Mayor said.

All stakeholders of these major cities such as power and water utilities, slum board and other service providers should be brought under one umbrella of the local self-government. The city corporation should be authorised to coordinate and monitor effective implementation of all development works, he added.

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