168 NEW TOWNS COVERED UNDER SCHEME FOR INTEGRATED DEVELOPMENT OF SMALL AND MEDIUM TOWNS

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LOK SABHA

168 new towns have been brought under the scheme for Integrated Development of Small and Medium Towns during the year 2002-03 whereas only 114 towns were covered under the scheme during the year 2001-02. The annual central release under the scheme has also been increased to Rs. 86.43 crore in the year 2002-03 (first year of 10^th plan) as against the release of Rs. 76.71 crore in the year 2001-02 (last year of the ninth plan). The Ministry of Urban Development and Poverty Alleviation reviews the implementation of this scheme with the State Governments and Union Territories twice a year.

This information was given by the Minister of State for Urban Development and Poverty Alleviation, Shri Pon. Radhakrishnan in a written reply to the question of Shri Prakash V. Patil in Lok Sabha today.

In his reply, Shri Radhakrishnan stated that the Planning Commission has made certain suggestions for improvement in the implementation of Integrated Development of Small & Medium Towns (IDSMT) Scheme. These are:-

• Revision of guidelines to cover all the cities up to one million population under IDSMT.

• Categories to towns to be provided assistance under IDSMT be reduced from 5 to 3.

• IDSMT outlay be allocated in the ration of 7:23:30 to A, B and C categories of towns.
• 66% of A category, 50% of B category and 25% of C category towns be covered during the Tenth Five Year Plan.

• The project cost (excluding institutional finance) of Rs. 4.5 crore for A category, Rs. 2.25 crore for B category and Rs. one crore for C category towns was proposed.

• For release of subsequent instalment, qualifying expenditure must exceed 50% of the Central assistance plus State share released and the share of financial institutions/other sources.

• Central assistance @ 50% for A category, 60% for B category and 75% for C category towns was proposed.

• State share @ 20% for A and B category towns and 15% for C category towns was proposed.

• Institutional finance @ 30% for A category towns, 20% for B category and 10% for C category towns was proposed.

• Minimum 40% of the project cost to be used for water supply and sanitation including solid waste management and drainage.

• Proposals under IDSMT should be processed by TCPO/Ministry of Urban Development & Poverty Alleviation only after town/city development plans are finalized by the State Government.

• Guidelines for the formulation of State Urban Development Strategy should be incorporated.

• Release under IDSMT should be made to the State only after the concerned State has created and operationalized the State Urban/Municipal Development fund.

• State level Sanctioning Committee must meet every quarter.

• An indicative list of projects eligible under IDSMT be included.