KOCHI: The Kochi and Thiruvananthapuram Corporations are waiting for financial commitment from the State Government regarding the Jawaharlal Nehru National Urban Mission (JNNURM) projects.

According to the conditions in the mission project, State Governments will have to make commitment regarding the financial support they will extend to the civic bodies while receiving funds from the mission.

It will be after receiving the commitments from the State that the Kerala Sustainable Urban Development Programme (KSUDP), State nodal agency for the JNNURM, be submitting the City Development Plans to the mission authorities for funding.

The State Government will have to give the commitment to the mission authorities regarding the funding before the signing of the memorandum of agreement between the Central and State Governments and the Corporations concerned.

In the case of Kochi, the State Government will have to make a minimum commitment of 20 per cent of the cost of proposals the city has included in its City Development Plan (CDP). Kochi has prepared a City Development Plan of around Rs.10,000 crore.

The Central support for Kochi will be 50 per cent of the project cost and the civic body will have to manage 30 per cent of the funds on its own. Kochi will have to explore the possibility of raising its share through loans or assistance from the State Government.

The State's contribution will be just 10 per cent of the project cost in the case of Thiruvananthapuram, as the city will get 80 per cent financial assistance from the mission due to its status of being the capital city. The Thiruvananthapuram Corporation will have to raise 10 per cent of the project cost on its own.

It will be advisable to submit the CDP to the mission authorities only after receiving the Government commitment. If a situation arises where the mission authorities approve the CDP and the Government refuses to give commitment to the desired extent, the CDP will have to be downsized and it will have to be resubmitted to the mission for approval, the KSUDP authorities said.

Though the Kochi Corporation submitted proposals worth Rs.10,000 crore, the city is likely to receive around Rs.1,200 crore. Hence, the financial burden the commitment may bring on the State Government will be much less, said officials.

The revenue of the Corporation will improve after the introduction of the plinth area-based tax assessment for buildings and revision of property tax, hoped officials. Presently, the annual revenue of the Kochi Corporation is around Rs.80 crore.

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