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Segregate funds for city, local area infrastructure development: UP govt

According to officials, this has been done since earnings from different localities/colonies – on account of development charges – were getting deposited to the common account.

noida Updated: Aug 20, 2018 14:06 IST
Peeyush Khandelwal
Peeyush Khandelwal
Hindustan Times, Ghaziabad
UP govt,city level infrastructure,Ghaziabad Development Authority
A view of the colonies from Meerut Road in Ghaziabad, India, on Saturday, August 18, 2018.(Sakib Ali/ HT Photo)

The Uttar Pradesh government has directed all development agencies to maintain two separate accounts – one for city-level infrastructure and the other for area-level infrastructure developments.

Earlier, officials said, a certain portion of the earnings of the development agencies got deposited in a common pool for infrastructure development. With the new arrangement, funds meant for city and local areas will be deposited in two different accounts.

According to officials, this has been done since earnings from different localities/colonies – on account of development charges – were getting deposited to the common account. However, officials said, there was no mechanism to spend the funds for infrastructural development of the areas the charges were collected from.

Ghaziabad Development Authority’s chief architect and town planner Ishtiyaq Ahmad said, “Now, the state government has ordered us to keep two accounts for city-level and area-level infrastructural development. The division of the accounts will also help development agencies to spend on the localities from where the funds are collected.”

Officials from the Uttar Pradesh housing and urban planning department stated that the city-level account will now get 100% of the city development charges and land use coversion charges collected. It will also get funds to the tune of 50% from the compounding charges recovered from illegal constructions, while the rest 50% will be given to the respective authority. The account will also get 90% of charges collected by authorities for making property freehold while the rest 10% will go to the development authority. Likewise, the 90% of charges on executing of sale deeds will also go to the account while rest 10% will go to the authority.

“A committee headed by divisional commissioner and comprising district magistrate, vice-chairperson, municipal commissioner and others as members will take care of the funds in this account and approve its expenditure. The funds from this account can be used for development of master plan of roads, bridges, flyovers and other such facilities,” Ahmad said.

According to the order, the second account will get 100% of the fund collected as development charges, 90% of funds collected from regularisation of unauthorised colonies. The rest 10% will go to the development authority. Likewise, 90% of funds from the purchasable floor area ratio charges will also go to the account while the rest 10% will go to the development agency.

The area-level account will now be taken care of by the vice-chairperson of the development authority with other members such as the municipal commissioner, the authority’s chief engineer and officers from the UP Jal Nigam. Funds from this account can be spent for development of drainage, sewers etc.

“Earlier, all funds went to a single account and the divisional commissioner had to take call on the expenditure. The schedule of such meetings also got prolonged and development work suffered. Now, the implementation of spending on local infrastructure will be done in a better and faster manner,” said Rajendra Tyagi, the BJP councillor from Raj Nagar.

First Published: Aug 20, 2018 14:06 IST