Following the Centre's decision to hand over certain powers of MCD to it, Delhi government is considering setting up a separate department to oversee functioning of the civic body.
The department will oversee the functioning of matters relating to finance, health and education of MCD besides other matters like monitoring of projects and sanctioning of developmental schemes.
Sources said chief minister Sheila Dikshit may keep the new department under her direct control or give it to one of the senior ministers.
They said finance minister AK Walia is also interested in taking responsibility of overseeing functioning of MCD.
Heeding to the longstanding demand of the Congress government in the city, the Union Home Ministry had yesterday delegated some of its powers relating to MCD to Delhi government.
Delhi government will now have the power to give the final nod to development schemes of the civic body as it got more teeth in financial matters and monitoring of work. The Government will also have the power to oversee functioning of MCD's health and education department, besides having greater say over appointment of the MCD Commissioner.
However, the Centre did not transfer the power to dissolve the MCD, as demanded by the state government.
Chief secretary Rakesh Mehta said the government will also have powers relating to building regulations.
"I am happy. The decision will help improve MCD's accountability," he said adding "proper mechanism" will be put into place to monitor functioning of the civic body.
Chief minister Sheila Dikshit had made several representations to the Centre demanding handing over of MCD to the city Government to reduce multiplicity of the authorities in the national capital.
Asked whether he was disappointed that all the powers have not been handed over to the city Government, he said the DMC Act (Delhi Municipal Corporation Act, 1957) will have to be amended for complete handover of powers which will be a "complex process".
"Ultimately we will have to think about a modern Act..It is a complicated process," he said.



