Housing and urban affairs: India

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Utilisation of funds

2017-18: low utilisation in six flagship projects

Dipak Dash, Lesser funds spent on 6 urban schemes, February 20, 2018: The Times of India

Status of schemes for housing and urban development in India, as on February 13, 2018
From: Dipak Dash, Lesser funds spent on 6 urban schemes, February 20, 2018: The Times of India

While the housing and urban affairs ministry has taken credit for allocating over Rs 1.31lakh crore for six flagship projects to transform urban areas including smart cities, AMRUT, Swachh Bharat and PM Awas Yojna, just Rs 13,000 crore has been spent by state agencies.

TOI has learnt that against the allocation of Rs 1.31 lakh crore since the NDA government launched these schemes, the housing and urban affairs ministry has released only Rs 38,890 crore to local authorities.

This could be one of the reasons why people living in cities and towns are not seeing visible change in their surroundings. This has also exposed how municipal bodies and local governments have little capacity to spend and undertake development work, which has a direct impact on the success of flagship schemes.

Sources said the Prime Minister’s Office (PMO) raised concern over this trend of central funds being “parked” when it held a review meeting last week on the utilisation of funds.

In percentage terms, the utilisation is the lowest in the Smart City Mission, primarily because city administrations have taken time to set up dedicated entities to carry out the task of preparing projects and bidding them out.

See also

Housing: India

Housing and urban affairs: India

Urban development: India

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