MoUD proposes to increase urban reform incentive fund six-fold to Rs 3,000 crore annually
ECONOMY & POLICY

MoUD proposes to increase urban reform incentive fund six-fold to Rs 3,000 crore annually

To push implementation of various schemes in the urban sector, the Ministry of Urban Development (MoUD) has proposed a six-fold increase in its ‘reform incentive fund’ to over Rs 3,000 crore annually, over the next three years.
 
For providing the incentives, the cities will be ranked based on performance under five reforms, which were recommended by a group of secretaries for bringing in transformation in the urban sector. The five reforms include: 1) getting credit ratings, 2) initiatives for value capturing finances, 3) adopting ‘trust and verify’ method, 4) land title reforms, and 5) bringing in professionalism in municipalities. 
 
And so, to incentivise, implementation of these five transformational reforms, the Ministry of Urban Development has proposed to increase the ‘reform incentive fund’ from Rs 500 crore during 2017-18 to over Rs 3,000 crore per year, over the next three years of implementation period. 
 
In 2016-17, about Rs 400 crore was distributed, for those who pursued reforms indicated in AMRUT guidelines.
 
The ministry has also come out with an implementation framework for these reforms, under which it targets to provide online approval facility for building construction in all 4,041 cities and towns by 2019-20, according to reports. Under the trust and verify approach, the government will give its nod for various services, like building construction first and then, do the verification. Reports indicate that the move aims to cut down on delays for granting permissions, by adopting a ‘grant approvals first and verify later’ approach.
 
Moreover, the government has set a deadline of March 2020, to make available title certificates for all properties in the next three years, on the recommendations of the panel. The ministry will discuss these reforms with states and Union Territories at a national workshop on urban development to be chaired by Urban Development Minister M Venkaiah Naidu.

To push implementation of various schemes in the urban sector, the Ministry of Urban Development (MoUD) has proposed a six-fold increase in its ‘reform incentive fund’ to over Rs 3,000 crore annually, over the next three years.   For providing the incentives, the cities will be ranked based on performance under five reforms, which were recommended by a group of secretaries for bringing in transformation in the urban sector. The five reforms include: 1) getting credit ratings, 2) initiatives for value capturing finances, 3) adopting ‘trust and verify’ method, 4) land title reforms, and 5) bringing in professionalism in municipalities.    And so, to incentivise, implementation of these five transformational reforms, the Ministry of Urban Development has proposed to increase the ‘reform incentive fund’ from Rs 500 crore during 2017-18 to over Rs 3,000 crore per year, over the next three years of implementation period.    In 2016-17, about Rs 400 crore was distributed, for those who pursued reforms indicated in AMRUT guidelines.   The ministry has also come out with an implementation framework for these reforms, under which it targets to provide online approval facility for building construction in all 4,041 cities and towns by 2019-20, according to reports. Under the trust and verify approach, the government will give its nod for various services, like building construction first and then, do the verification. Reports indicate that the move aims to cut down on delays for granting permissions, by adopting a ‘grant approvals first and verify later’ approach.   Moreover, the government has set a deadline of March 2020, to make available title certificates for all properties in the next three years, on the recommendations of the panel. The ministry will discuss these reforms with states and Union Territories at a national workshop on urban development to be chaired by Urban Development Minister M Venkaiah Naidu.

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