MUMBAI: The World Bank's Board of Executive Directors that met in Washington recently accepted the Action Plan — drawn up by the Government of Maharashtra and the World Bank's country office — to address shortcomings in implementation of the Bank's resettlement and rehabilitation policy in the $945 million Mumbai Urban Transport Project (MUTP). A month ago, a part of the loan agreement had been suspended following a critical report by the Bank's Independent Inspection Panel.

The panel had visited Mumbai in response to four petitions sent to it by groups representing shopkeepers and people affected by the MUTP. The panel had faulted the Mumbai Metropolitan Region Development Authority, the implementation agency for the MUTP, for violating the terms and conditions of the resettlement and rehabilitation policy agreed upon with the Bank. As a result of this report, the Bank's management decided to suspend further disbursals for the project.

Since then, according to a World Bank official, several teams from the Bank have negotiated with the Maharashtra Government to draw up an Action Plan to deal with each of the points raised by the Inspection Panel. This plan was placed before the Bank's Board and was accepted by it.

Among the actions that the MMRDA and the Government have agreed to are working out flexible criteria to resettle medium and bigger shopkeepers affected by one of the new roads being built under the MUTP. These businesses include automobile garages, timber marts, metal forging, blacksmith units and other businesses. There are also restaurants, printing presses and machineries that will have to be relocated.

Under the plan, these businesses will be given a choice of locations as well as options such as adding an additional floor to their new structures so that their income is not affected.

In addition, employees of the shops that are being relocated will be given one year's income on a one-time basis as compensation in the event that they lose their jobs as a result of the relocation.

In the resettlement sites, where the oustees had complained of lack of infrastructure, the plan includes improving water supply and transport connectivity. Also, the Inspection Panel faulted the grievance redress process. As a result, a new Chairman for the Independent Monitoring Panel that is based in Mumbai will be appointed and the procedures for the Grievance Redress mechanism will be publicised.

The MUTP had contracted some non-governmental organisations to implement the resettlement plan and also help in preparing baseline data.

This was faulted by the Inspection Panel.

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