Friday, 11 July 2014

Current Affairs-Indian Government's General Budget 2014-15-Government to Spend 50,000 Crore Rupees for Development of Urban Areas

Government to Spend 50,000 Crore Rupees for Development of Urban Areas
100 Crore Allocated for Metro Projects in Lucknow and Ahmedabad

The Union Finance Minister Shri Arun Jaitley while presenting his maiden Budget, in the Lok Sabha announced that his Government has a major focus of providing good infrastructure, including public transport, solid waste disposal, sewerage treatment and drinking water in the urban areas. The Budgetary provision for the Pooled Municipal Debt Obligation Facility has been enhanced from Rs 5000 crores to Rs 50,000 crores with extension of the facility by five years to March 31, 2019. Shri Jaitley informed the House that this facility was set up in 2006 with participation of several banks to promote and finance infrastructure projects in Urban Areas on shared risk basis. 


Shri Jaitley said that for urban renewal of cities and towns, four fundamental activities are necessary like provision of safe drinking water and sewerage management, use of recycled water for growing organic fruits and vegetables, solid waste management and digital connectivity. The Finance Minister said it is the vision of this Government that at least five hundred (500) such habitations must be provided support, while harnessing private capital and expertise through PPPs, to renew their infrastructure and services in the next ten years. 



Government will encourage development of metro rail systems, including light rail systems, in the PPP mode, supported by the Central Government. Shri Jaitley stressed that for two million plus cities, planning of metro projects must begin now and in the current fiscal, a sum of Rs. 100 crore has been allocated for Metro Projects in Lucknow and Ahmedabad. 

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