The Ministry of Urban Development (MoUD) has proposed to increase Reform Incentive Fund from Rs 500 crore during 2017-18 to over Rs 3,000 crore per year over the next three years. The States and cities will have to implement five new reforms that include formulating of land Titling law, credit rating of Urban local Bodies, value capture financing, moving to a trust and verify approach and improving professionalism of Urban local Bodies.
According to an official statement, cities will be ranked based on performance under each reform category for providing reform incentive.
“The ministry has evolved a new reform matrix to enable State sand cities to go beyond the present incrementalism of taking small steps towards implementing transformational reforms over the next three years, for a turnaround in urban governance, planning and finance. The concerned Group of Secretaries in their report on urban sector have recommended that “After a review of the schemes over the years, the Group felt that instead of an incremental approach, the time has come for ushering in transformational reforms in Governance, Planning and Finance,” the statement said.
The ministry has organised a national-level workshop on urban development on Tuesday. The Ministry will also discuss with States and Union Territories new initiatives.
