A new tool to fund infrastructure projects to be used in the country
New Delhi: Uttar Pradesh may not be a leader in many other areas, but it has taken a lead in implementation of the Value Capture Funding or VCF policy framed by the Centre to fund infrastructure projects in different parts of the country.
While most of the states are yet to identify districts or zones where this tool can be used for funding, the most populous state has already prepared a list of such cities . Beating all other states, it has also appointed consultants to name the scheme beneficial to a particular area and to prepare a detailed project report for the same.
The list prepared by the state includes districts like Banda, Sitapur and Varanasi. The consultants have been give a time limit for the preparation of the DPR.
The concept is not new for some foreign countries but it is for this country. The initiative for this was taken by the Urban Development ministry. This method of funding was used by some local bodies but only to a limited area and without any uniformity.
The new policy has been framed keeping in mind the urban and non-urban needs. Under this policy, certain developmental charge or tax will be levied on people benefiting from a particular project and the money collected from them will be used for creating another infrastructure.
This policy framework was mainly prepared in view of the growing demand for the modern facilities in the urban and semi-urban areas. A huge sum was needed to meet this demand which the government alone was in no position to collect.
As many as 163 cities across 17 states and two union territories have approved the scheme which may be later extended to non-urban areas. Uttar Pradesh has been followed by Andhra Pradesh where the scheme will be launched in 33 cities and Gujarat ( 32). Other states have identified less than ten cities for the purpose so far.
A committee headed by additional secretary of the Urban Development department has already named agencies besides central and state governments which will be involved in the project. Other agencies include railways, road transport, power and irrigation.
The project is in its early stage and will become more visible in months to come.