The West Bengal Panchayat (Amendment) Bill, 2007, passed in the Assembly on Monday, empowers the rural bodies to "fix rates for management or maintenance of institutions or works of public utility".

The delegation of financial powers to local bodies comes as part of the revenue generation drive that the ruling CPM took years ago. The CPM state secretariat then stood solidly by the government, saying that panchayats should impose user rates if it builds a resting shed beside a crematorium on its own. For CPM state secretary Anil Biswas led the campaign. But the government had to shelve the plan following fierce opposition from the Trinamul Congress and the SUCI. Even the Left Front partners resented the move.

The proposed Act will empower a rural body to manage or maintain any institution or work of public utility, including haats and markets. It also authorises the local bodies to acquire, construct and maintain haats and markets for the benefit of people in the area.

Panchayat minister Surjya Kanta Mishra, however, clarified that it doesn't empower local bodies to acquire land, as understood by the Land Acquisition Act of 1894. The zilla parishads were being allowed to maintain some facilities in municipal areas.