Villagers from 27 villages in KDMC limits had been protesting for years demanding separation from the KDMC and formation of the gram panchayats. These villages had even boycotted the last three general elections to stress their demand. The villagers argument was that the KDMC had hardly carried out any development work for the villages in the last several years. Besides, they said, problems like non-availability of potable water, mass transport service and so on were still prevalent.

Chief Minister Narayan Rane on Tuesday announced the decision in a press conference held in Mantralaya after the routine weekly Cabinet meeting. "The committee appointed by the State Government to look into the demands of the villagers and find out a solution had submitted its report to the Government. The committee hadrecommended that seven out of 27 villages should be excluded from KDMC jurisdiction. However, I had a meeting with representatives of the villagers and other officials on Monday. It was decided that 12 villages would be excluded and they would be allowed to form their own gram panchayats. The remaining 15 villages will have to be part of the KDMC," said Rane.

The 12 villages are: Bhesar, Hedutane, Umroli, Bhal, Darli, Manere, Vasar, Ashele, Nandivali, Adivali, Davdi and Chinchpada. Rane said the decision once made will not be reviewed at any cost and the 15 villages will have to follow the Government order.

Meanwhile, the State Cabinet also decided to lease out Government land in Mumbai to best at nominal charges. Rane said that the BEST had been demanding plots from the Government as well as the BMC at a concessional rate. "The plots will be rented out to the BEST at nominal rates. The BEST is planning to set up new bus depots, bus stations, electricity receiving stations etc on these plots. The BESTwill have to develop these plots according to the Development Control rules. If the BEST constructs a commercial complex on the plots such provided, then it will have to give 50 per cent of its earnings from the plot to the State Government," said Rane.

The State Cabinet also decided to pay salaries to 99 professors appointed by the University Grant Commission in different colleges Statewide.

The UGC, under the 9th Five Year Plan, had filled 99 vacancies in different colleges which included professors, readers and lecturers. The UGC had agreed to pay their salaries till 2002 and had asked the State Government to pay the salaries after 2002. Rane said the decision will cost Rs 1.90 crore to the State Government annually.