Uttar Pradesh Government to Release Rs 1,300 Crore for Urban Infrastructure Development
In a significant move to strengthen urban services and infrastructure across Uttar Pradesh, the state government is set to release an additional Rs 1,300 crore to urban local bodies and housing development authorities. This substantial funding injection comes after the removal of procedural roadblocks that had previously hindered the transfer of funds collected through stamp duty charges.
Stamp Duty Collections to Fuel Urban Development
The funding mechanism operates through a 2% infrastructure fund collected during property sale deed executions. When any individual or entity purchases property, 2% of the total charges are allocated specifically for developing basic infrastructure in the locality where the property is situated.
"Let us consider an example where someone buys commercial property in the Hazratganj area of Lucknow," explained a senior officer from the stamp department. "In such cases, 2% of the stamp duty is earmarked for infrastructure development in that locality. The collected amount is then transferred to the relevant local body, which in this scenario would be the Lucknow Municipal Corporation."
The officer further clarified that these transfers are supposed to occur on a quarterly basis, ensuring regular funding for urban development projects.
Procedural Hurdles and Fund Accumulation
However, the system has faced significant challenges due to various administrative and procedural issues. Local bodies must provide utilization certificates to the stamp and registration department after using the funds for approved infrastructure projects, which include essential services like sewer lines, drainage systems, and water supply networks.
"Due to procedural lapses such as delayed tendering processes, frequent transfers of staff members, or other administrative reasons including election periods, the execution of work often gets delayed," revealed a senior officer from the directorate of urban local bodies. "This prevents projects from being completed within the same quarter, leading to substantial fund accumulation over the years."
In some concerning instances, urban local bodies and other agencies were found using these dedicated infrastructure funds for purposes other than their intended development objectives, further complicating the fund release process.
Government Commitment to Streamline Process
Stamp and Registration Minister (Independent) Ravindra Jaiswal addressed these challenges, stating, "We are committed to finding a solution to this problem. Our officials are actively working on removing these hurdles while maintaining a system to ensure the money is being used prudently and for its designated purposes."
The Rs 1,300 crore represents funds accumulated during the 2024-25 financial year. Additionally, for the current financial year, an extra Rs 730 crore is due to be paid to various urban development bodies across the state.
Widespread Distribution of Development Funds
The fund release will benefit numerous urban entities throughout Uttar Pradesh:
- Lucknow Municipal Corporation is expected to receive Rs 53 crore in tranches
- Ayodhya's civic body would get Rs 2.9 crore once procedural hurdles are resolved
- More than 750 urban local bodies across the state will receive allocations
- 29 housing development agencies will benefit from the fund release
- Special development areas, industrial bodies, and authorities will also receive funding
This comprehensive distribution ensures that urban infrastructure development reaches communities throughout Uttar Pradesh, addressing critical needs in sewerage, drainage, water supply, and other essential urban services that directly impact residents' quality of life.
