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Delhi may lose out on Central funds for urban renewal

Sujay Mehdudia

Govt. fails to submit its proposals even after 8 months of the scheme being announced

NEW DELHI: The Delhi Government, which is already behind other cities in staking claim for the huge chunk of funds from the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), is faced with the prospect of being denied funds as it has still not initiated mandatory reforms that qualify it for such entitlements.

Although Chief Minister Sheila Dikshit had recently stated that a City Development Plan would be chalked out by all the department concerned for staking claim with the Union Urban Development Ministry for grant of such funds to carry out urban reforms, the most crucial steps are yet to be taken. Even the Planning Commission is understood to have taken note of the failure of the Delhi Government to submit its proposals under the JNNURM even after eight months of the scheme being announced. Surprisingly, despite all the talk about talking up infrastructure projects on the "mission mode", the Delhi Government is yet to formally appoint a consultant and sign the Memorandum of Understanding.

However, an important aspect of the entire scheme is that for any Government to qualify for sanction of funds, it will have to take certain measures within a specific period. A major irritant that could arise is the notification of the model Rent Control Act that has been gathering dust in the corridors of power for the last almost one decade. The Act has been amended by Parliament but its notification has been held back under pressure from the traders' lobby. However, under the new scheme of things, the Delhi Government would have to get the Rent Control Act notified if it has to claim funds under JNNURM, something it is yet to take up with the Ministry.

Another important but sensitive area where the Delhi Government could find itself on a weak footing is the handing over of services. According to officials, the Delhi Government will have to hand back the Delhi Jal Board to the Municipal Corporation of Delhi as the JNNURM scheme clearly points out that water and sewer services are to be transferred to the local civic body and until that is done it will not be entitled to grant of funds.

Similarly, the JNNURM also makes it clear that implementation of the urban reforms have to be taken in tandem with the local municipal body as it will be the civic bodies who will be spending major portion of the funds. This is also likely to turn into a contentious issue as the Chief Minister does not get along well with the Congress ruled MCD. The matter is likely to run into further trouble in case the BJP returns to power in the Corporation after next year's elections.

"Being the Chairperson of the Delhi Jal Board, the Chief Minister would be reluctant to part with such a powerful body. It was only after consistent effort that the Delhi Government managed to get the Delhi Jal Board in 1998 from the Corporation. Now this new condition is likely to make things a bit difficult for the Chief Minister and her Government who will not easily give up their claim on the funds or the Delhi Jal Board," remarked a Minister.

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