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Sunday 7 May 2017

Jawaharlal Nehru National Urban Renewal Mission (JnNURM) and its objective, scope, strategy and outcomes.

Jawaharlal Nehru National Urban Renewal Mission

The JNNURM was launched in 2005 as the first flagship scheme of this Ministry. JnNURM implemented by MoHUPA has two components e.g. Basic Services for Urban poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP) which aimed at integrated development of slums through projects for providing shelter, basic services and other related civic amenities with a view to providing utilities to the urban poor.


The Mission was initially for a seven year period i.e. up to March 2012 which was extended upto March 2014 for completion of the already approved projects. During March 2013, the Mission period was extended by one more year i.e. upto March 2015 to complete ongoing works. 65 Mission Cities identified based on urban population (Census 2001), cultural and tourist importance was covered under BSUP and the remaining cities were covered under IHSDP (887).
Under BSUP, project cost is shared in the ratio of 50:50 for cities with population more than 1million (as per Census 2001), 80:20 for other smaller Mission Cities and 90:10 for North Eastern and Special category States. Entire cost of construction of Dwelling Units (DUs) and associated infrastructure was shared as per the above mentioned sharing pattern without any limitation. Under IHSDP, project cost is shared in the ratio of 80:20 for remaining smaller cities and 90:10 for North Eastern and Special Category States. Cost ceiling of Rs. 1 lakh per DU including cost of infrastructure was applicable for projects taken up under IHSDP Scheme.

The two components of JnNURM were mandated to pursue 3 key pro-poor reforms, namely 
(a) earmarking of 25% of municipal budget for the urban poor for provision of basic services including affordable housing to the urban poor; 
(b) implementation of 7- Point Charter, namely provision of land tenure, affordable housing, water, sanitation, education, health and social security to the poor in a time-bound manner ensuring convergence with other programmes and 
(c) reservation of 25% of developed land in all housing projects, public or private, critical for slum improvement.

Objectives of the Mission 

The objectives of the JNNURM are to ensure that the following are achieved in the urban sector;. 
(a) Focussed attention to integrated development of infrastructure services in cities covered under the Mission;. 
(b) Establishment of linkages between asset-creation and asset-management through a slew of reforms for long-term project sustainability;. 
(c) Ensuring adequate funds to meet the deficiencies in urban infrastructural services;. 
(d) Planned development of identified cities including peri-urban areas, outgrowths and urban corridors leading to dispersed urbanisation;. 
(e) Scale-up delivery of civic amenities and provision of utilities with emphasis on universal access to the urban poor;. 
(f ) Special focus on urban renewal programme for the old city areas to reduce congestion; and 
(g) Provision of basic services to the urban poor including security of tenure at affordable prices, improved housing, water supply and sanitation, and ensuring delivery of other existing universal services of the government for education, health and social security.

Scope of the Mission 
The Mission shall comprise two Sub- Missions, namely: 

(1) Sub-Mission for Urban Infrastructure and Governance: 
This will be administered by the Ministry of Urban Development through the Sub- Mission Directorate for Urban Infrastructure and Governance. The main thrust of the Sub-Mission will be on infrastructure projects relating to water supply and sanitation, sewerage, solid waste management, road network, urban transport and redevelopment of old city areas with a view to upgrading infrastructure therein, shifting industrial and commercial establishments to conforming areas, etc.

(2) Sub-Mission for Basic Services to the Urban Poor: 
This will be administered by the Ministry of Urban Employment and Poverty Alleviation through the Sub-Mission Directorate for Basic Services to the Urban Poor. The main thrust of the Sub-Mission will be on integrated development of slums through projects for providing shelter, basic services and other related civic amenities with a view to providing utilities to the urban poor


Strategy of the Mission 
The objectives of the Mission shall be met through the adoption of the following strategy: 
(1) Preparing City Development Plan: 
Every city will be expected to formulate a City Development Plan (CDP) indicating policies, programmes and strategies, and financing plans. 

(2) Preparing Projects: 
The CDP would facilitate identification of projects. The Urban Local Bodies (ULBs) / parastatal agencies will be required to prepare Detailed Project Reports (DPRs) for undertaking projects in the identified spheres. It is essential that projects are planned in a manner that optimises the life-cycle cost of projects. The life-cycle cost of a project would cover the capital outlays and the attendant O&M costs to ensure that assets are in good working condition. A revolving fund would be created to meet the O&M requirements of assets created, over the planning horizon. In order to seek JNNURM assistance, projects would need to be developed in a manner that would ensure and demonstrate optimisation of the life-cycle costs over the planning horizon of the project. 

(3) Release and Leveraging of Funds
It is expected that the JNNURM assistance would serve to catalyse the flow of investment into the urban infrastructure sector across the country. Funds from the Central and State Government will flow directly to the nodal agency designated by the State, as grants-in-aid. The funds for identified projects across cities would be disbursed to the ULB/Parastatal agency through the designated State Level Nodal Agency (SLNA) as soft loan or grant-cum-loan or grant. The SLNA / ULBs in turn would leverage additional resources from other sources. 


(4) Incorporating Private Sector Efficiencies: 
In order to optimise the life-cycle costs over the planning horizon, private sector efficiencies can be inducted in development, management, implementation and financing of projects, through Public Private Partnership (PPP) arrangements.

Duration of the Mission The duration of the Mission would be seven years beginning from the year 2005-06. Evaluation of the experience of implementation of the Mission would be undertaken before the commencement of Eleventh Five Year Plan and if necessary, the program calibrated suitably.

Expected Outcomes of the JNNURM 

On completion of the Mission period, it is expected that ULBs and parastatal agencies will have achieved the following: 

(1) Modern and transparent budgeting, accounting, financial management systems, designed and adopted for all urban service and governance functions (2) City-wide framework for planning and governance will be established and become operational 
(3) All urban residents will be able to obtain access to a basic level of urban services 
(4) Financially self-sustaining agencies for urban governance and service delivery will be established, through reforms to major revenue instruments 
(5) Local services and governance will be conducted in a manner that is transparent and accountable to citizens 
(6) E-governance applications will be introduced in core functions of ULBs/Parastatal resulting in reduced cost and time of service delivery processes.


Sectors and Projects Eligible for Assistance under the Sub-Mission Directorate for Urban Infrastructure and Governance 

The sectors and projects eligible for JNNURM assistance would be as follows: 

(1) Urban renewal, that is, redevelopment of inner (old) city areas [including widening of narrow streets, shifting of industrial and commercial establishments from non-conforming (inner city) areas to conforming (outer city) areas to reduce congestion, replacement of old and worn out pipes by new and higher capacity ones, renewal of the sewerage, drainage, and solid waste disposal system etc.] ; 
(2) Water supply (including desalination plants) and sanitation. 
(3) Sewerage and solid waste management. 
(4) Construction and improvement of drains and storm water drains. 
(5) Urban transportation including roads, highways, expressways, MRTS, and metro projects. 
(6) Parking lots and spaces on PPP basis. 
(7) Development of heritage areas 
(8) Prevention and rehabilitation of soil erosion and landslides only in cases of special category States where such problems are common; and 
(9) Preservation of water bodies.

source:-http://mhupa.gov.in

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