Page 35 - Shelter - April 2023

POLICY REVIEW

capital. But the experience is raised to this fund. The Fund Adopt rational pricing of all
disappointing. The collection shall be non-lapsable and Public Services
is poor as well as the will non-dirigible. To augment Municipal Bodies and other
to collect is weak. Systemic CDF, suggest that 0.001% of all Public Service Agencies are
changes are necessary. Local city development projects be obliged to provide public
Bodies need to be empowered credited to the CDF. Collection services to the public. The cost
and held responsible for of capital is important but of services is high. It is a good
efficient collection. more important is its rational principle to charge the user
allocation amongst different for the service. In recent times,
The Expert Group on The claimants. It is best that the under competitive political
Commercialization of fund is managed by the CPMA fever, governments are racing
Infrastructure Projects, Dept. till such time the measures to provide the services free.
of Economic Affairs, Ministry envisaged in 74 Amendment All urban services need to be
th
of Finance, GoI, in its Report is implemented. rationally priced and charged.
titled ‘The India Infrastructure
Report (1996)’ has identified The major share of the Resources–Land: Establish
few means of financing capital should go to the local Land Banks at the City Level
urban infrastructure, which authority to discharge their Land is a critical resource for
include: General Taxes; development functions. The urban development. Many
Special Taxes; User Fees and Fund needs to be judicially urban projects are held up,
Charges; Special assessment allocated to different projects delayed, or dropped for want
districts; Exactions and which are in line with the of land at the right time, right
Development Taxes; Pricing; prescribed policy and plans. place and in right quantity.
Land costs also make many
Betterment Levies; Land In addition to city level UDF, vital projects non-viable.
Readjustment Schemes; it is prudent to establish State Delhi experiment in the initial
Valorisation Charges; and National level UDFs to years owes much to the large
Capacity Allocations; Excess fund projects of state and extent of land vested with
Appropriation; Linkage; national importance and those the DDA. Presently, land is a
Build, Operate, Transfer; which lie in the jurisdiction of major constraint for most of
Infrastructure Development one or more urban areas. (As the projects. It is important
Banks; Development of this script was being edited, to establish Land Banks at
Domestic Capital Markets; the Union Finance Minister, city level. These could be
Bond Markets; Packaging in her budget speech, has managed by the CPMA. The
Long term Debt for announced the setup of process of establishing and
Infrastructure; Debt Market Urban Infra Fund with an managing Land Banks needs
Development through allocation of Rs10,000 crores to be detailed.
Infrastructure Finance. A per year. That is encouraging. Adopt and Adapt Modern
determined effort is called for But would the term “Infra” Technology
to identify, detail, and collect constrain flexibility? The
capital. amount is too small to matter. India missed the Industrial
It averages just above Rs. One Revolution and got pushed
It is prudent to establish a crore per urban centre. No in to the lowest level of
“(CITY) DEVELOPMENT matter. It is a good beginning. economic development.
FUND” and credit the capital The fund can be augmented. In recent past, India has

April, 2023, Volume 24. No.1 - SHELTER 33