Wednesday, July 19, 2000,
Chandigarh, India


M A I N   N E W S

Union Cabinet halts Jagmohan’s drive
Unauthorised colonies regularised
Tribune News Service

NEW DELHI, July 18 — The Union Cabinet today approved the regularisation of unauthorised colonies on public land in the Capital, cleared a turnaround plan for Hindustan Machine Tools (HMT), and provided for compulsory telecast of Doordarshan channels by cable operators.

The Cabinet’s decision on approving the proposal to regularise unauthorised colonies on public land inhabited by both slum dwellers and the affluent sections assumes significance as it virtually halts the Urban Development Minister, Mr Jagmohan’s controversial demolition drive in the Capital. The Vajpayee government was under considerable pressure from MPs from the ruling side to halt Mr Jagmohan on his tracks.

The Cabinet, however, decided to make the concession to only those unauthorised colonies which came up before March 31, 1993. All unauthorised colonies and constructions are to face stiff action and penalty, the official spokesperson said.

In the case of unauthorised colonies inhabited by non affluent sections, the Cabinet decided that they could be authorised by paying land value notified by the Land and Development Officer and a penalty of 10 per cent on it. In the case of colonies inhabited by affluent sections, the regularisation would be done on the recovery of current market rate of land determined by the Central Bureau of Direct Taxes on the basis of market rates prevailing in similar affluent but authorised colonies in the neighbourhood.

There are around 1000 colonies which have been listed as unauthorised by the government and those which came up before 1993.

Another major decision taken by the Cabinet related to the restructuring plan of HMT on the basis of the recommendations of the Group of Ministers.

The restructuring plan includes making the company’s net worth positive as on April 1, 2000, by infusing the requisite equity. Increase in equity would be undertaken through conversion of government loan into equity as well as fresh infusion of funds.

Five unviable units, namely, Central Metal Forming Institute, Watch Case Unit, Lamp Factory, Food Processing Machinery Plant and Miniature Batter Unit would be closed by December 31, 2000, and VRS extended to the 454 employees.

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