Governments Rs. 4,000 crore incentive for automobile industry

January 16th, 2009 - 6:19 pm ICT by ANI  

New Delhi, Jan 16(ANI): The Union Government has declared an incentive scheme under Jawaharlal Nehru National Urban Mission (JNNURM) for generating Rs. 4,000 Crore business in the automobile industry sector, hit by lack of retail finance.

According to the Urban Development Ministry, this second stimulus package scheme of the Government has been announced to give a one-time momentum to the states for purchase of buses for the Urban Transport System.

The scheme aspires to provide an improved transport system in all 63 cities where JNNURM is implemented.

JNNURM funds, until now, were meant for infrastructure development including construction of roads, bridges, drainage systems and water and sewerage plants among others.

States have also been asked to make detailed project reports of city bus service, BRTS, planning, financing arrangements, user charges, operation and maintenance.

The Government has also permitted Public Private Partnership (PPP) model for procuring buses under the scheme. However, the possession of buses will remain with the Urban Local Bodies. (ANI)

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