In his Budget Speech 2002-2003, the then Union Finance Minister announced
the creation of an Urban Reforms Incentive Fund (URIF) with an initial
allocation of Rs. 500 crore to provide Urban Reform linked assistance to States.
The scheme was approved by the Govt. on 28-6-2003 with an annual allocation of
Rs.500 crore with following reforms areas:-
|
Sl.
No |
Reform Area |
Weightage |
|
1.
|
Repeal
of ULCRA |
10%
of State’s Share out of URIF |
|
2.
|
Rationalization
of stamp Duty |
20%
of State’s Share out of URIF |
|
3.
|
Reform
of Rent Control |
20%
of State’s Share out of URIF |
|
4.
|
Introduction
of computerised process of registration |
10%
of State’s Share out of URIF |
|
5.
|
Reform
of Property Tax |
10%
of State’s Share out of URIF |
|
6.
|
Levy
of reasonable user charges |
20%
of State’s Share out of URIF |
|
7.
|
Introduction
of double entry system of accounting in Urban Local Bodies |
10%
of State’s Share out of URIF |
Progress achieved under URIF Scheme during 2003-2004 and 2004-05
During the year 2003-2004, Memorandum of Agreements were signed between Government of India and 24 States/UTs viz Tamil Nadu, Madhya Pradesh, Chattisgarh, Tripura, Karnataka, Maharashtra, Manipur, Kerala, Haryana, Andhra Pradesh, West Bengal, Orissa, Nagaland, Arunachal Pradesh, Gujrat, Uttar Pradesh, Goa, Meghalaya, Bihar, Rajasthan, Himachal Pradesh and UTs of A&N Islands, Chandigarh, Govt. of NCT of Delhi.
During
2004-05 Govts of J&K, Jharkhand and Punjab signed MOA.
Further, Govts of Tamil Nadu & Rajasthan
have signed Supplementary MOA for the remaining reforms. Ministry of Home
Affairs in consultation with Ministry of Law informed that there was no need to
sign MOA with UTs and an Executive Order from the Centre would suffice.
Thereafter UT of Pondicherry was also recommended for release of funds during
2004-2005 on the basis of the reforms they were willing to carry out.
A total sum of Rs. 178.365 crore was released during 2003-04 and Rs. 95.358 was released during 2004-05. This scheme of URIF was discontinued as a separate scheme w.e.f. 1.4.2005 and subsumed with Jawaharlal Nehru National Urban Renewal Mission.
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