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States to be penalised for delay in fund transfer to ULBs under Atal Mission

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States and Union Territories will be penalised for any delay in transfer of funds to Urban Local Bodies (ULBs) under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Parliament was informed.

“States and UTs shall release the Central Assistance along with the State/UT share to the Urban Local Bodies within seven working days of the release of Central Share failing which penal interest will be levied,” Urban Development and Housing & Urban Poverty Alleviation Babul Supriyo said in Rajya Sabha.

This provision was made in the Mission Guidelines to avoid delays in the execution of projects under the Atal Mission, the minister added.

AMRUT is a time bound programme to be implemented over a period of 5 years from 2015 with stipulated reforms to be completed in 4 years. “To avoid delays in implementation, the Ministry of Urban Development has also left the task of preparation, appraisal and execution of projects to the States/UT unlike in the past under JNNURM,” he further said.

Under AMRUT, central assistance ranges from one-third of the project cost for cities with a population of above 10 lakh to 50% for cities/towns with a population of less than 10 lakh for projects pertaining to water supply, sewerage, storm water drains and urban transport. Central government will bear 50% of the cost of projects related to development of green spaces and parks and 100% of the cost for capacity building and implementation of reforms.

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