Nod to key urban reforms to ease financial burden on local bodies

In a move aimed at strengthening urban infrastructure and easing financial pressures on civic bodies, the Uttar Pradesh Cabinet on Thursday approved two major proposals under the AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme.

- HT Correspondent

LUCKNOW:

The decision is set to provide significant relief to urban local bodies (ULBs), especially those with limited revenue sources, and fast-track delayed development projects across the state.

Funding support under AMRUT 1.0 In a key decision, the UP cabinet sanctioned ₹89.81 crore from State Finance Commission grants to cover the remaining financial contributions of ULBs under AMRUT 1.0. This step is aimed at unblocking critical water supply and sewerage projects that have been stalled due to lack of funds from ULBs.

The cities that stand to benefit include Ayodhya, Mirzapur, Etah, Ghazipur, Rae Bareli, and Unnao—many of which have been facing challenges due to high floating populations and limited financial capacities.

The state government acknowledged that newly constituted municipal corporations like Ayodhya and religious hubs such as Mirzapur face unique fiscal constraints despite their growing infrastructure demands.

Out of 328 approved AMRUT 1.0 projects, 307 have already been completed. This funding decision is expected to ensure timely completion of the remaining 21, improving public service delivery and reducing the operational burden on ULBs.

Major relief under AMRUT 2.0 In another significant decision, the state cabinet approved a revised funding structure under AMRUT 2.0, reducing the financial contribution required from ULBs based on the size of the urban population.

The state will now shoulder a larger share of project costs, making infrastructure development more accessible for smaller cities.

Cities with population over 10 lakh: ULB share reduced from 15% to 8% and the state share increased from 60% to 67%.