Wednesday 9 May 2012

Assistance Under UIG

Funds under Urban Infrastructure & Governance (UIG) Sub-mission of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) are released upon receipt of Utilisation Certificates to the extent of 70% of the grants (Central & State) and subject to achievement of milestones for implementation of mandatory and optional reforms at the State and ULB/Parastatal level as envisaged in the Memorandum of Agreement(MoA). As the State has not achieved all the reforms as per commitment in the MoA, the Ministry was unable to consider release of subsequent installments of ACA for the approved projects. 

The Government has reviewed the position and decided on 01.12.2010 to accord approval for consideration/release of further installments of ACA after withholding 10% of the Central Share in case of UIG projects in States/ ULBs where significant progress has been made in the implementation of reforms. It has been further decided that States may use their own funds to meet the balance amount and complete the ongoing projects and obtain reimbursement of the withheld amount upon completion of reforms. 

As the State has not achieved all the reforms as per its commitment in MoA, the Ministry has released an amount of Rs.45.85 crore as installment of ACA for the project after withholding 10% of the ACA amounting to Rs.30.23 crore which the State can get reimbursed upon completion of reforms. 

This information was given by the Minister of State for Urban Development Shri Saugata Roy in a written reply to a question in Lok Sabha today. 

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