The Hindu : Andhra Pradesh / Hyderabad News : Convincing people to pay user charges

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Saturday, Jul 12, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Convincing people to pay user charges

M. L. Melly Maitreyi

HYDERABAD: With rapid urbanisation and the influx of population into towns and cities, the emphasis is not only on financially helping cities to develop sustainable infrastructure but on convincing people to pay user charges for basic services, M. Ramachandran, Secretary, Ministry of Urban Development (MoUD), said.

In fact, it was to achieve these objectives that the MoUD had launched the Jawaharlal Nehru New Urban Renewal Mission (JNNURM) in 2005, he told The Hindu here.

Change in thinking

Referring to the perceived reluctance of people to pay user charges and the political compulsions to levy the same, he said they would be willing to pay if the service was well-rendered and the rates were affordable. “A change in thinking is happening now. It is now imperative to look at the second generation reforms under JNNURM for proper management of services, cutting down wastage of resources, improving collection of revenue, levy of new taxes for project cost recovery,” he said. MoUs were signed with 63 mission cities across the country to help them improve water supply, storm water drainage, sewerage, solid waste management, public transport systems etc., in the wake of cities becoming engines of economic growth.

Importantly, the scheme is aimed at developing links between asset creation and maintenance by making these cities financially sustainable with their own development plans. Of 63 cities, 48 had their credit rating done and 18 of them, including Hyderabad, secured ‘A’ grade entitling them to raise resources outside the JNNURM grant, Mr. Ramachandran said.

Under JNNURM, the Union government was extending assistance of Rs. 30,000 crore for 330 projects designed to improve delivery of services and housing for urban poor. Of them, 90 projects would be completed by December this year, he said.

Public transport

Another thrust area was to encourage people to shift from private to public transport. Of seven cities where mass transport projects were proposed, Bangalore, Kolkata, Chennai, Hyderabad, Cochin, Chandigarh had opted for metro rail after seeing its success in Delhi. Only Ahmedabad preferred the Bus Rapid Transport System, he said.

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