A World Bank inspection panel has expressed its satisfaction with the current pace of reforms on rehabilitation of the displaced households.
A World Bank inspection panel, which suspended the Rs500crore aid component to Maharashtra for its road and resettlement component of the Mumbai Urban Transport Project (MUTP) in March, has expressed its satisfaction with the current pace of reforms on rehabilitation of the displaced households and commercial establishments.
The panel told the state government that if the pace of reforms was sustained, the suspension would be revoked.
The state, since the suspension, has worked towards meeting the parameters of rehabilitation prescribed by the WB.
The bank has conceded to the state’s refusal to compensate commercial establishments displaced by the project with financial assistance for business loss suffered owing to the change in location.
Secretary (special projects) Sanjay Ubale told DNA: “The WB had insisted that apart from providing a new site to the displaced shopkeepers, the government must also offer financial assistance for the business loss suffered by them due to the change of site. For instance, if a commercial establishment was enjoying a business turnover of Rs15 lakh annually in its current site, the bank stipulated that post-rehabilitation if his business turnover annually is reduced to Rs5 lakh at the new site then the state should pay the difference as financial assistance.”
“The WB has accepted the state government point of view on this issue. Similarly, the state government has taken steps to address the issues of rehabilitation pointed by the WB,” Ubale said.
These include the failure by the state to form the societies of rehabilitated slum dwellers, transfer of Rs20,000 by the state for the maintenance of individual societies.
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