Date:20/08/2006 URL: http://www.thehindu.com/2006/08/20/stories/2006082006120400.htm

Karnataka - Bangalore

State to submit CDPs for Bangalore, Mysore soon

Staff Reporter

Bangalore CDP is being appraised by IIM, Ahmedabad

IN CONVERSATION: Union Urban Development Minister S. Jaipal Reddy (right) and Ramesh Ramanathan, trustee of Public Record of Operations and Finance, at a discussion on the performance of the Bangalore Mahanagara Palike, in Bangalore on Saturday. 51; Photo: K. Bhagya Prakash

Bangalore: Disclosure of information would demystify government transactions and finances and lead to drastic reduction in the level of corruption, Union Minister for Urban Development S. Jaipal Reddy said here on Saturday.

Transparency arising from information disclosure would increase people's confidence that their money was being used wisely and would encourage them to pay taxes, he said. The Minister was speaking at a discussion on Bangalore Mahanagara Palike's annual performance for 2005-06, organised by Public Record of Operations and Finance (PROOF).

Urban era

Stating that the Centre had realised that the 21st century was an "urban era in developing countries," Mr. Reddy said the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was a result of this thinking. "With the JNNURM, we are trying to assist States in a matter exclusive to them (urban development is a State subject) by insisting on fulfilling conditionalities," he said.

Two important conditions that States identified for JNNURM assistance had to meet were repealing the Urban Land Ceiling Act and reduction in stamp duty, Mr. Reddy said. The latter would help in reducing black money, a phenomenon rampant in developing countries,

Plans to be submitted

Later, speaking to presspersons, Mr. Reddy said Chief Minister H.D. Kumaraswamy had informed him that City Development Plans (CDPs) for Mysore and Bangalore would be submitted soon. For the schemes under the CDPs, the Centre would meet 50 per cent of the fund requirements for Mysore (as the population is below one million) and 35 per cent of the funds for Bangalore, he said.

JNNURM director M. Rajamani said that CDPs for 23 cities had been approved and 19 States had signed memorandums of agreement with the Centre to avail themselves of JNNURM assistance.

On reasons for the Bangalore CDP being rejected, Mr. Rajamani said the preparation of the CDP had not been a consultative process as required under the JNNURM guidelines.

Infrastructure Development Corporation, Karnataka is preparing the CDPs for Bangalore and Mysore. The Bangalore CDP is being appraised by the Indian Institute of Management, Ahmedabad.