Jawaharlal Nehru National Urban Renewal Mission

Posted in Finance Articles, Total Reads: 2805 , Published on 30 October 2010

Jawaharlal Nehru National Urban Renewal Mission(JNNURM) is a city modernisation scheme launched by Government of India. It involves an investment of around $20 Bn over a period of 5-7 years. The main idea behind this programme is to improve the quality of life of the people living in cities. It comprises if 2 sub missions
a) Sub mission for urban infrastructure and governance. Its primary focus is on water supply, sanitation, waste management, road network.
b) Sub mission for basic services to the urban poor.

Mission Statement:
The aim is to encourage reforms and fast track planned development of identified cities. Focus is to be on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability of ULBs/ Parastatal agencies towards citizens.

Objectives of the Mission:

1) Attention towards the integrated development of infrastructure services in cities.
2) Ensuring adequate funds to meet deficiencies in urban infrastructure.
3) Provision of basic services to the urban poor. The primary focus being on water supply, sanitation, improved housing, health and social security
4) Scaling up of the delivery for civic amenities and provision of utilities.
5) Planned development of cities including per-urban areas, outgrowths and urban corridors leading to dispersed urbanisation.


Outcomes of the Mission:

1. All urban people will be able to obtain minimum level of basic services.
2. Self sustaining agencies for urban governance and service delivery will be established..
3. E- governance application will be introduced in major functions thereby reducing cost and time of service delivery processes.
4. Local services and governance will be conducted in transparent manner.
5. Modern and transparent budgeting, accounting, financial management system, designed and adopted for all urban service and governance functions.

Implementation Mechanism:

The funds for the mission are channelized through the state level nodal agencies. The grants from both the central and state governments are pooled and passed as grants/soft loans to the identified cities. These funds are passed on provided that the prepared city development projects fit within the strategies identified for this mission. The mission puts a major emphasis on transparency and accountability. It supports public-private partnership and cost recovery to enable self sustaining and financially viable projects. The funding by the central government can vary from 35% to the larger cities to 90% to the cities located in the North East. Most of the cities receive 50 -80% of the costs. Capacity building is also included in the mission to assist urban local bodies to prepare strategies and projects.

State Level Reforms: Gujarat leads the state level reforms among all the states. Except for rent control it has been successful in achieving other reforms. Progress on public disclosure and community participation laws has not been met effectively with only five states complying to it. Andhra Pradesh, West Bengal and Maharashtra are the other states which have successfully implemented majority of the reforms pertaining to this mission.

City Level Reforms: Vishakhapatnam has accomplished most of the reforms pertaining to water supply and sanitation. Vijayawada, Chennai, Hyderabad, Madurai are other proactive cities.

Project Sanctioning: Almost 415 projects have been sanctioned resulting in an investment of almost $10Bn, which is equivalent to half the size of the total envisaged program amount. Among the states, Maharashtra has been sanctioned the maximum number of projects and city wise, Bangalore is in the forefront.

Cities Eligible in this Mission:

The criteria for selection of cities are as follows:
1.  Cities/ UAs with 4 million plus population as per 2001 census
2.  Cities/ UAs with 1 million plus but less than 4 million population as per 2001 census
3.  Selected Cities/ UAs (State Capitals and other cities/ UA of religious/ historic and tourist importance)

Sectors & Projects Eligible in this mission:

1. Water Supply and Sanitation
2. Sewerage and solid waste management
3. Parking lots and spaces on PPP basis
4. Development of heritage areas
5. Construction and improvement of drains
6. Urban transportation
7. Preservation of water bodies
8. Prevention and rehabilitation of soil erosion and land slides

Projects not eligible for assistance under this scheme

1. Power
2. Telecom
3. Health
4. Education
5. Wage employment programmes and staff components


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