Parliamentary panel asks UD Ministry to seek more budgetary allocation

NEW DELHI: Noting that the budgetary allocation for urban infrastructure and development is "very low", a Parliamentary panel has asked the Urban Development Ministry to renew efforts for convincing the Finance Ministry and the Planning Commission to release more funds.

In its report on the UD ministry's Demand for Grants for fiscal 2013-14, the Standing Committee on Urban Development, which is chaired by JD(U) leader Sharad Yadav, mentioned that the ministry expressed its unhappiness when it was asked about fund allocation.

"The secretary, Ministry of Urban Development during deposition before the committee stated that the investment requirement for infrastructure has been estimated as Rs 40 lakh crore as per the rate of the year 2009-10. This amount has been increased to Rs 50 lakh crore. The allocation for this ministry is very low," the panel said.

It said that budgetary estimate for UD ministry in 2012- 13 was Rs 6,785 crore and Rs 7,312 crore for 2013-14, and added that the ministry had admitted that only 7.8 per cent growth is not sufficient to meet its objectives.

The panel observed that even in the past, the gap between projections and budget estimates had adversely affected some Metro rail and general pool residential accommodation projects.

"The Committee are distressed to note that only 7.8 per cent increase in budgetary allocation for the Department of Urban Development is not at all sufficient. Keeping in view all the facts, the committee call upon the ministry to continue its efforts to persuade the ministry of finance and Planning Commission for higher allocations at RE (Revised Estimates) stage," the panel said.

The committee also said the UD ministry should also pursue with Finance Ministry and the Planning Commission for higher allocations to the National Capital Region Planning Board (NCRPB) which at present is highly dependent on multilateral and bilateral agencies for funds.

The panel also said the implementation period of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) had been extended to 2014 and it expected that the ministry would make efforts for completion of all projects.

The committee also said that while government had been announcing buses for different cities under JNNURM the basic infrastructure was missing and recommended finds to be given for bus deports.