States now more open to sop-based reforms

NEW DELHI: The government has shortlisted almost 40 cities across India for a heavy-duty makeover.

Municipalities would have to be made financially self-sustaining, so that they can carry on the reforms agenda in the future, without assistance from the Centre.

Sources say states today are more willing to subscribe to an incentive-linked reforms package than say about two years ago.

The Centre has been pushing the states to implement property tax reforms, reduce stamp duties to 5%, implement the 74th amendment to the Constitution that requires them to devolve power to the urban local bodies, amend the Rent Control Act, scrap the Urban Land Ceiling (regulation) Act, adopt model municipal law and levy appropriate user charges.