Question : UTILISATION OF FUNDS FOR URBAN POOR



(a) whether the funds allocated for providing basic amenities to the urban poor are not being utilised optimally;

(b) if so, the reaction of the Government thereto;

(c) the number of States where less than 50% of the total allocated funds has been utilised during each of the last three years and the current year, State-wise;

(d) the reasons for under utilization of the allocated funds by such States;

(e) the reaction of the Union Government thereto; and

(f) the steps being taken by the Union Government to take up the matter with the defaulting States and to ensure proper utilisation of funds?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION (KUMARI SELJA)

(a) and (b): No, Madam. While the overall utilization of the funds allocated for providing basic amenities to the urban poor under the Basic Services for the Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP) - components of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is satisfactory, the progress is uneven between States/Union Territories.

(c): No State-wise year-wise allocation is made under BSUP and IHSDP. The details of States where less than 50% of the total allocated funds have been availed so far are annexed.

(d): The reasons for under-utilisation of the allocated funds by such States include:

(i) Non-furnishing of project proposals for sanction;

(ii) Slow progress of projects due to procedural problems:

(iii) Lack of availability of litigation-free land;

(iv) Lack of capacity of Urban Local Bodies to implement the projects; and

(v) Lack of additional financial resources to meet the cost escalation of projects.

(e) and (f): The Government has issued advisory to all States for drawing an action plan and to expedite the commissioning/implementation of projects which can be started after sorting out the present difficulties and submit an action plan for withdrawal/cancellation/modification of projects which are not going to be started at all, by 31.3.2011.