Municipal corporations with over 50% revenue growth to receive grants up to Rs 100 crore

Lucknow : The Yogi government is actively working towards the comprehensive development of cities in Uttar Pradesh and increasing revenue collection for urban local bodies. As part of these efforts, the Urban Development Department has launched the  CM-VNY, expanding various schemes and missions under the ‘Mission to Movement’ initiative.

Under this scheme, municipal corporations that achieve at least a 25% increase in tax/non-tax revenue will receive grants ranging from Rs 2.5 crore to Rs 50 crore. Municipal councils and district headquarters with a population over one lakh that see at least a 15% increase in revenue will be eligible for grants ranging from Rs 25 lakh to Rs 20 crore.

For municipal councils and district headquarters with a population under one lakh, as well as Nagar Panchayats that achieve at least a 10% revenue increase, grants will range from Rs 10 lakh to Rs 5 crore.

In special circumstances, a maximum fund of Rs 100 crore per municipal corporation can be allocated to achieve a revenue increase of over 50% and implement innovative projects, revenue-generating initiatives, and projects of national or international significance. This provision is detailed in the Standard Operating Procedure (SOP) for implementing the  CM-VNY.

The scheme aims to boost self-revenue collection by over 10% compared to the base year of 2022-23, setting this as the eligibility criterion. It will be in effect for five years, starting from 2024-25, with a fund of Rs 500 crore allocated for the first year. The scheme will cover all 762 urban local bodies in Uttar Pradesh.

The initiative will adopt a 3E approach to promote sustainable economic growth, equity, and environmental protection across all urban areas in the state. Urban local bodies will be categorized into three groups based on type, population, and area: Category-1, Municipal Corporations (population over 3 lakh); category-2, Municipal Councils and District Headquarters (population over 1 lakh); and Category-3: Municipal Councils, Nagar Panchayats, and District Headquarters (population under 1 lakh). Various projects have been approved for each category to support the scheme’s objectives.

For the scheme’s budget allocation, 40% each of the funds have been reserved for Category-1 and  Category-2, and 20% for Category-3 for the financial year 2024-25.

The Minister of the Urban Development Department may adjust these allocations for Municipal Corporations, Municipal Councils, and Nagar Panchayats as needed.

Each urban local body will prepare a five-year vision plan and an annual action plan based on its requirements, following the guidelines and consulting with stakeholders.

The action plan for the first year must be submitted to the Directorate along with the vision plan. A Project Management Unit (PMU) will be established at the Directorate level to support all activities related to the scheme.