Published On:January 5 2019
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Urban development: Biggest chunk of Central aid to States has gone to metro rail, housing projects.

Metro rail networks and construction of affordable housing have received top priority in the Centre’s urban development plan.
Data from the Ministry of Housing and Urban Affairs (MoHUA) reveal that of the total allocation of Rs. 1.32 lakh-crore for eight flagship urban development programmes, the Centre has allocated Rs. 53,000 crore, or 40 per cent, to States over the past four years to implement metro projects, and Rs. 33,000 crore, or 25 per cent, for the housing scheme Pradhan Mantri Awas Yojana-Urban.
As many as 17 cities are implementing 27 metro projects, of which 10 are 50:50 joint ventures between the Centre and the respective States.
The MoHUA approves the States’ proposals and releases financial assistance under its missions. The projects are then conceived, appraised, approved and implemented by the States.
Under one of its popular programmes, the Swachh Bharat Mission-Urban (SBM-U), the Centre released Rs. 8,750 crore to the States, of which 48 per cent has been utilised.
It has released Rs. 18,390 crore till date for the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), of which Rs. 9,876 crore (or 54 per cent) has been utilised. AMRUT, launched in June 2015, aims to provide taps to all urban households, and augment water supply, sewerage and drainage networks; non-motorised urban transport and development of green and open spaces in 500 mission cities.
Two programmes — the North-Eastern Region Urban Development Programme (NERUDP) and the 10% Lumpsum Scheme — received just 1 per cent of the total allocation.
The Heritage City Development and Augmentation Yojana (HRIDAY) has received even less than that. Interestingly, almost 80 per cent of the assistance given for the Smart Cities Mission (SCM) remains unutilised.
In total, States utilised 67 per cent of the Central funds provided under the eight urban development projects.
According to the MoHUA, to monitor the progress of schemes and funds allocated to the States, various institutional frameworks, such as submission of periodic progress reports, review meetings, video conferences and field visits, have been put in place.
Funds are released in instalments keeping in view the respective scheme guidelines, the reports of the Independent Review and Monitoring Agencies and Utilisation Certificates issued by State government authorities.
HBL




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