Mah govt seeks 6-8 months time to repeal ULC

Mumbai, Oct 7: Maharashtra Chief Minister Vilasrao Deshmukh today said the State Government had sought six to eight months to repeal the Urban Land Ceiling (ULC) act, which is one of the most important reforms to be undertaken to avail funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Speaking on the occasion of a tripartite agreement between the Centre, State Government and the BrihanMumbai Municipal Corporation (BMC), for better water supply, sewage disposal, Mithi river development and urban infrastructure projects in Mumbai, Mr Deshmukh said his government has agreed in principle to repeal the act.

''But, we need to take into account views of all political parties on this issue. We will soon call an all party meeting where the leaders would be apprised of the conditions of the JNNURM to avail funds for development. We will take the neccessary action in six to eight months'', Mr Deshmukh said.

Referring to the reforms in the Rent Control laws, the Chief Minister said the matter was sub-judice and pending before the Supreme Court.

''We will act as per the SC verdict'', he said.

Asserting that the main agenda of his government was to change the landscape of Mumbai and transform it into a global metropolis, Mr Deshmukh thanked the Prime Minister Dr Manmohan Singh for being concerned and considerate on the problems faced by Mumbai as it tackles burgeoning population with inadequate infrastructure.

Mr Deshmukh expressed confidence that all political leaders in the state would agree to the reforms evisaged in the tripartite agreement as development of the city was the priority of all parties and there should be no differences on this issue.

''It is difficult for a state to hold on reforms'', he pointed out.

The Chief Minister revealed that five cities of Maharashtra have been brought under the JNNURM and the government has submitted 50 proposals worth Rs 31,000 crore.

The Middle Vaitarna water supply project worth Rs 1269.39 crore, which is likely to provide an additional 455 ml of water to Mumbai, and help it cope with the growing water demand, is expected to be completed by 2011. The Mumbai Sewage Disposal Project stage II, which will extend the coverage of sewage network from the current level of 60 per cent to around 80 per cent, will also be completed by 2011, BMC commissioner Johnny Joseph who was one of the signatories of the agreement, told reporters here.

Likewise, the Mumbai Urban Infrastructure Project is crucial to road infrastructure and Mithi River Development is vital from the point of view of storm water management and flood abatement in the city, the Chief Minister explained and added that these projects were in conjuction with the implementation of the BRIMSTOWAD (storm water drainage) project for which the Centre has recently decided to sanction Rs 1200 crore outside the JNNURM.

The joint secretary of the Ministry of Urban Development at the Centre, Mr Raja Mani, said that under the JNNURM, the State Government and the concerned urban local body are required to undertake certain reforms, like the repeal of the ULC, enactment of the public disclosure law, rationalisation of stamp duty, reforms in rent control laws by the State Government, accounting reforms, property tax reforms, e-governance and earmarking in the budget a certain sum that will be spent for the upliftment of the urban poor by the local body.

''The aim of the Centre is to ensure that the city becomes self-sustainable in the long run and hence reforms were an important cornerstone of JNNURM. We have set up teams which will be deputed to check whether the reforms are being implemented and also monitor the progress of the projects on the ground'', he added.

Minister of State in the PMO, Prithviraj Chavan said the Finance and Urban Development Ministry at the Centre as well as the Planning Commission wanted the BRIMSTOWAD project to be brought under the JNNURM so that the Centre would have to partake only 35 per cent of the total cost. But, the Prime Minister overruled all of them and decided to provide 100 per cent grant to the project. The challenge is now before the State Government to fulfill all the envisaged reforms and prepare a Detailed Project Report (DPR). The Centre will keep five per cent out of each project for approved consultancy in DPRs, he informed.

He said the signing of this Memorandum of Agreement will pave the way for the release of the first instalment of the financial assistance by the Government of India in respect for the Mumbai Sewage Disposal Project worth Rs 364.47 crore which has already been sanctioned under the JNNURM as well as the other projects like the Middle Vaitarna water supply project which is expected to be approved shortly.

Union Petroleum Minister Murli Deora and Mumbai Suburban Guardian Minister Chandrakant Handore, both former Mumbai Mayors as well as current Mayor Datta Dalvi were present on the occasion at ''Varsha'', the Chief Minister's official residence.

UNI