Pune: Rs 300 Crore Sanctioned for Merged Villages; PMC to Receive 75% of Development Fee

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Pune, 19th May 2023: In 2017, 11 villages were included in the Pune Municipal Corporation (PMC), and in 2021, 23 villages were included under the PMRDA limits. These villages were under the authority of PMRDA. The government has approved allocating 75% of the construction and development fee balance fund to the PMC for the development of these villages.

As a result, the Municipal Corporation will receive approximately Rs 300 crores, providing a significant boost for the development of these areas.

Prior to the villages being included within the municipal limits, the PMC had requested a special grant from the government. However, on both occasions, the government did not provide the funds, and the municipal corporation did not receive the construction fee. Although the approval was given in principle upon making a demand, the funds were not available until now.

Now, the inclusion of the funds in the budget itself has cleared the path for obtaining this fund. The municipality will receive 75% of the remaining funds from the development fee collected from the villages, after deducting 10% for establishment expenses and allocating the rest to development works and administrative expenses.

Due to the limitations of municipal income and ongoing development works in the city, these villages were not receiving the necessary funds. In response, the municipality has focused on securing major projects for the villages through the Central Government, World Bank, and other financial institutions. This lack of funds has affected the provision of roads, electricity, and emergency water facilities. Even with the municipal budget, these villages faced difficulties in allocating additional funds. However, with the recent approval, the development of these villages is expected to accelerate.

Uruli Devachi and Fursungi, two out of the 34 villages initially included in the Municipal Corporation, have now been excluded. A separate Municipal council will be established for these villages, which will also have to provide funds to the government. This raises the question of who should contribute to the development fund for these two villages.


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