State chief minister Narayan Rane, who held an hour long meeting with urban development minister Jagmohan here on Tuesday, said that the Government should sanction the funds on a priority basis as the commercial capital has been the major contributor to the central exchequer. Jagmohan said that the centre would adopt a fresh approach to decide on the allocations of funds for infrastructure projects in Mumbai.

The list of projects include: construction of new storm water drains and pumping station (Rs 1,000 crore), cement concrete roads (Rs 400 crore), acquisition of the land for providing civic amenities and acquisition and rehabilitation of project affected persons (Rs 650 crore), removal/reconstruction of slums on road (Rs 375 crore), procurement of stationary compactors and other garbage transport vehicles (Rs 350crore), construction of Santacruz-Chembur link road (Rs 100 crore), etc.

The government has also demanded relaxation of coastal regulatory zone (CRZ) rules in Greater Mumbai for the speedy implementation of slum and housing development plans. The chief minister appealed to the minister to pursue the Government's case with the union environment ministry.

Rane said that fate of various housing schemes, launched by the Maharashtra Housing and Area Development Authority (Mhada), and the government's ambitious slum rehabilitation scheme to provide free houses to 40 lakh city slumdwellers is uncertain if restrictions on floor space index (FSI) under CRZ is not be lifted. The government has granted 2.5 to 3.55 FSI for these projects while CRZ permits 1 or 1.33 FSI.

Rane said that the CRZ rules have also affected the implementation of development control plan prepared for the Greater Mumbai after an extensive work of over 20 years. He emphasised the need for relaxation of CRZ rules so that the developmentcontrol plan will be implemented effectively.

The chief minister said that following the recommendations of the 10th Finance Commission, the centre should give Rs 33.24 crore annually to the state government for carrying out urban development projects with a matching amount coming from the state. The centre has not yet paid Rs 91.41 crore and has only contributed Rs 41.55 crore for 1996-97 and 1997-98.

Urban development principal secretary Suresh Joshi said that the Government has sought an assistance of Rs 2 crore for the setting up of centre for human settlement technology for the rural-urban continum. According to him, the balance amount will be contributed to by the state government.

Joshi said that such a centre was necessary to undertake research in urban administration and urban planning in view of burgeoning growth of urbanisation in Maharashtra. As many as 39 per cent of population stays in urban Maharashtra compared to the national average of 25 per cent.