Urban reform in Punjab

THE decision of the Punjab Cabinet to implement the 1995 rent Act is in line with the government’s newfound resolve on urban reform. It would spur private investment in urban infrastructure and housing. The state’s cities and towns remained neglected through the 2007-12 tenure of the SAD-BJP government, essentially for want of funds. There was no money as the populist approach of the government did not allow it to impose the taxes required. Some of it did not happen specifically because of the opposition from the BJP, which has its base entirely in urban areas. The SAD emerging stronger in 2012 may have something to do with it being able to push through reforms such as imposition of property tax.

Deputy Chief Minister Sukhbir Singh Badal recently announced a Rs-3,561 crore “Mission Ludhiana”, an integrated development plan for the city and its adjoining areas. It will encompass all areas such as solid waste management, water supply, sewerage, sewage treatment and local buses. A Rs-1,100-crore announcement for urban local bodies under the previous regime had never come through, as there was no source of money. Despite some of the recent reforms, the money required for the new Ludhiana plan — as well as other cities, which are equally in need — too would be hard to come by.

The Jawaharlal Nehru Urban Renewal Mission has forced the state government into some of these reforms, which are a condition for the release of money for development under it. There is a lot more to do yet, such as starting full recovery of user charges for utilities like sewerage, water and electricity; public interface improvement; transparent land-use conversion policy; accrual accounting, etc. No development is possible without money — as the Central government too has made clear — and people would be ready to pay if they get the services in return. The long queues to pay one’s electricity bills — even in a showcase city like Mohali — are not what give any confidence to people, or investors that the state is so desperately seeking.