MP Govt. Approves Rs. 1,800 crore for Developing Basic Infra in 397 Cities

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The Madhya Pradesh government has approved to invest Rs. 1,800 crore for developing basic infrastructure in 397 cities under Chief Minister Urban Infrastructure Development Plan (CMUIDP). While the  Madhya Pradesh government is facing a serious financial crisis.

The funds will be invested for the improvement of water supply, sewerage networks, developing roads, provision of open and green spaces, community centers and public utilities in urban areas.
Officials said that Rs. 1,107 crore had been officially approved by the government in the beginning in order to develop small cities and towns on the lines of Smart City Project presumed by the Ministry of Urban Development.
A senior officer said in the directorate ” In the first phase, which aimed at infrastructure development in 288 cities, the government had sanctioned Rs1,428 crore for basic infrastructure works. So far the results have been found satisfactory despite financial crisis but, we hope to fulfill the task.”
The government has released funds for the development of 397 cities and towns in the second phase. They also approved the subsidy on investments. They said that the government will also provide loans through the urban administration department. This could be repaid in two installments.
The government has roped in Housing Development Corporation (HUDCO) for funding at an interest rate of 11% during the first phase. Now, efforts were running to obtain loans from nationalized or private banks. The State government would bear 75% cost of the loan with interest for the development, the civic body will have to bear 25% funding with interest for the development.
The official said that the municipal councils which were not included in the first phase will be sanctioned Rs 3 crore each this time for basic development works.
The State Finance Minister Jayant Maliya said that they have provided some funds for urban development in the Supplementary Budget. The remaining will be sanctioned at the earliest possible.
The government had sanctioned Rs 40 crore each for Bhopal and Indore in the beginning. It does not include the funds which were allocated for the Smart City Project.
Similarly, Jabalpur and Gwalior cities will get Rs 30 crore each while, temple town Ujjain will get Rs 20 crore for basic infrastructure development.
Officials revealed that 17 municipalities having the population of 1 lakh or more will be given Rs.5 crore each, 81 municipalities having the population less that 1 lakh, will be given Rs.3 crore each and the 11 cities having religious and tourist attraction will get Rs 3 crore each.
News Source: http://timesofindia.indiatimes.com/city/bhopal/Madhya-Pradesh-govt-approves-Rs-1800-crore-to-397-smart-cities-infra-development/articleshow/56005574.cms
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