‘Baton of urban transformation now with states’

Venkaiah-Naidu-Conversions-PTINEW DELHI: After the launch of the three new urban missions by the government, the baton of urban transformation in the country is now in the hands of the states and urban local bodies, Union Minister M Venkaiah Naidu has said.

“It is for you to take it forward. The Central government has done its bit by formulating the new missions after extensive consultations with you and based on your views and suggestions,” Naidu said in his concluding remarks at the end of the two-day long consultations here.

The Union Urban Development Minister said states have been given full freedom in designing, approving and execution of projects under the new missions and states and the urban local bodies (ULBs) should now “rise to the occasion.”

The minister in particular urged the state governments to strengthen ULBs by transferring funds and functionaries and enhancing their administrative, planning and technical capacities.

Government has launched three mega urban schemes – Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All (Urban) by 2022′ aiming at urban transformation of the country.

Observing that urban transformation as being intended would be a major game changer for the country and the people, he stressed that focus should be on revenue generation and urban reforms to meet the aspirations of the citizens under the new urban missions.

Stating that to own a house is an essential pre-requisite for decent living, Naidu explained the Operational Guidelines for the Mission which provide for flexibility to states to make it a success.

Under the ‘Housing for All’ scheme, government aims construction of 2 crore houses in urban areas.

He referred to provision of an unprecedented interest subvention of 6.50 per cent for economically weaker sections (EWS) and low income groups (LIG) as an indication of central government’s commitment to help urban poor in owning houses.

Referring to mandatory registration of houses built under the mission, either in the name of woman or jointly with husbands, the minister said that this is being done since women would never think of selling a house unlike men.

On mobilization of required resources for urban housing scheme, Naidu informed the states and ULBs that there is substantial scope for FDI in construction sector including affordable housing.

He said that several measures are being taken to promote housing construction which include reduction in minimum built up area from 50,000 sqm to 20,000 sqm and reduction in minimum investment norm from USD 10 million to USD 5 million.

Steps are being taken for allowing external commercial borrowings for affordable housing and slum improvement at a level of USD 1 billion for the current fiscal.

Inclusion of slum development in the list of corporate social sector activities is also an initiative by the government.–PTI