Nagpur, June 18: The State Government has decided to upgrade Akola municipality into a municipal corporation.

The State Cabinet, which met here this morning, took a decision in this regard. Akola will be the third municipal corporation in Vidarbha after Nagpur and Amravati, while it will be the 15th such corporation in the State.

Briefing newsmen after the meeting, Chief Minister Manohar Joshi said Akola's population had surpassed three lakhs, according to the 1991 census.According to the norms, the Government can upgrade any council into a municipal corporation if the population crosses the three-lakh mark, he said.

Earlier, the Government had decided to convert Sangli and Nanded municipalities into municipal corporations. The Government was also considering setting up Kalyan-Dombivali and Bhiwandi-Nizampur corporations soon, Joshi added.

He said the additional financial burden as a result of the upgradation of Akola is yet to be worked out. A Government notification regarding the upgradation of the city would be issued within the next two months, while fresh elections to the new municipal corporation would be held within the next six months.

Joshi said his deputy Gopinath Munde, who also holds the Home portfolio, was planning to set up a police commissionerate in each municipal corporation.The Chief Minister said the State Cabinet had decided to generate Rs 10,000 crore through a special small savings scheme in Maharashtra. As every state gets 75 per cent of the deposited amount under the scheme, the expected Rs 7,500 crore to be generated through the scheme would be spend on drinking water supply projects in the State, he added.

The scheme would be inaugurated by Prime Minister I K Gujral next month. The Government had also decided to observe this year as `Small Savings Year' to encourage investors, the Chief Minister said.

A special fund of Rs 20 crore had been sanctioned for the development of Nagpur during the current financial year, he added.

This move is sure to pacify the Vidarbha lobby in the Cabinet and in the state.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.