Wednesday, July 26, 2023

TN seeks Action Taken Report over State Finance Commission recommendations


C Shivakumar @ CHENNAI:
Tamil Nadu government has yet to implement some of the recommendations of sixth state finance commission (SFC). The memorandum on the action taken on the recommendations of the sixth state finance commission along with the report were placed in the legislative assembly on January 13, 2023, according to official sources.

It is learnt that the Tamil Nadu government has sought an action taken report (ATR) from the state housing department on 27 recommendations. While top officials could not be reached over the implementation of the recommendations, it is learnt that some of the recommendations are being scrutinised by the government including bringing in amendments to TNCDBR, while the others are in conceptual or in the final stage.

Among the list of recommendations include amending the Tamil Nadu Combined Development Building Rules, create land bank of all government lands so that land availability can be assessed for providing suitable infrastructure to local bodies; taking up public private partnership models of area development and affordable rental housing in high density urban areas; and creating robust property database with unique property identifiers using the existing GIS maps

Developers and builders have stated that the recommendation of increasing the fee for building plan and layouts by sixth finance commission is not feasible as it is already on the higher end. Association of India state secretary S Rama Prabhu says that the urban local bodies are currently demanding Rs 40 per square feet while CMDA demands Rs 100 per square feet. Any further rise now will impact the sector.

On amending Tamil Nadu Panchayat Building Rules by fixing time limit for grant of building plan by executive authority of Village Panchayat, Prabhu said tjhat this has been an ongoing demand from the sector. "If the plan is not approved within 30 days it should be considered as given," said Prabhu.

Among the other recommendations include creation of a specialised planning unit at the district level with redeployment of staff from rural development and panchayat raj department and housing and urban planning department. The SFC has also recommended end-to-end software for granting planning permission to be completed expeditiously. Currently, this has been a big issue with developers and builders highlighting flaws in the online system. The SFC also has highlighted the need to come out with a complete framework on Transferable Development Rights (TDRs), which are an underutilised source for funds.

The sixth state finance commission Commission has made 280 key recommendations to the state government, of which the state has accepted 259. Some recommendations have been accepted with modifications, while some have been deferred.


Factfile (Some of the other SFC recommendations)::
1. Fees for building plan and layout to be revised as per TNCDBR
2. TN panchayat building rules to be amended fixing time limit for grant of building plan by executive authority of village panchayat.
3. Specialised planning unit to be created at district level.
4. Vacant land tax to be collected regularly.
5.Asset register for immovable properties to be created
6. Development charges and other fees to be enhanced to reflect commodity price index

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