New Delhi: The Planning Commission is facing difficulties in meeting the strong demand for increasing funds for a key urban renewal mission as rise in crude oil prices has forced it to dole out more subsidies to tide over the situation.
The increase of global prices of oil and fertilisers has affected the government to a great extent in meeting the demand of additional funds for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) projects, Planning Commission Member Anwarul Hoda said here today.
He was speaking at a seminar, ‘Challenges of Urbanisation´, organised by the Urban Development Ministry.
However, it would not affect the total fund of Rs50,000 crore which has already been committed by the government for the JNNURM, Hoda clarified.
Citing shortage of funds for meeting the basic infrastructure requirements of 63 mission cities under JNNURM, the ministry has sought additional funds to the tune of Rs30,000 crore spread over the 11th Plan period.
In a recent report submitted to the Planning Commission, the ministry has also sought another Rs10,000 crore for providing incentives to better performing states and cities.
Admitting the need for more funds, Hoda said, “We are assessing the need and a decision would be taken soon.”