JNNURM

The scheme was officially inaugurated by the Prime Minister, Manmohan Singh on 3 December 2005 as a program meant to improve the quality of life and infrastructure in the cities. The Mission 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 (a) Focused 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 urbanization;. (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 program 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. Schemes (1) BSUP (Basic service for Urban Poor) The BSUP covers 65 cities and towns which are placed under the following categories.

1. Seven cities having 4 million plus population as per 2001 census; 2. 28 cities having 1 million but less than 4 million population; and 3. 30 selected cities of religious/historic and tourist importance. (2) IHSDP (Integrated Housing & Slum Development Program) The IHSDP is applicable to all cities/towns that fall under the following criteria. 1. A minimum population of 5,000; 2. At least 75% of male working population engaged in non-agricultural pursuits; and 3. A density of population of at least 400 persons per sq.km. Funds Release under BSUP and IHSDP

(3) USIDSSMT (Urban Infrastructure Development Schemes for Small & Medium Town) Mission Objective for UIDSSMT The objectives of the Scheme are to: a) Improve infrastructural facilities and help created durable public assets and quality oriented services in cities & towns. b) Enhance public-private-partnership in infrastructure development and. c) Decentralize Urbanization and Promote planned Integrated development of towns & cities.

The scheme will apply to all cities/towns as per 2001 census, excepting cities/towns covered under Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

Allocation of funds among states will be on the basis of the states urban population (excluding cities covered under JNNURM) to total urban population in the country (excluding cities covered under JNNURM). States may allocate funds to towns/cities based on similar formula. However, funds would be provided to only those towns and cities where elections to local bodies have been held and elected bodies are in position. The State Governments may prioritize towns and cities on the basis of their felt-need. While prioritizing towns, States would take into account existing infrastructure, population of Scheduled Castes/Scheduled Tribes and special problems like hilly terrain

(4) UIG (Urban Infrastructure and Governance) UIG: - Meant for providing Basic Service to Urban Population, Urban Infrastructure Development in Urban Areas and reformation of Urban Governance System. Objectives The Mission Objectives is to integrate development of infrastructural services in the cities covered under the Mission and also to secure effective linkages between asset creation and asset management so that the infrastructure services created in the cities are not only maintained efficiently but also to become self-sustaining. It also ensures adequate investment of funds to fulfill deficiencies in the urban infrastructural services. The planned development of identified cities including peri-urban areas, out growths, urban corridors, so that urbanization takes place in a dispersed manner.

UIG Projects for small states

Funding of the projects

REFORMS
The thrust of the JNNURM is to ensure improvement in urban governance and service delivery so that ULBs become financially sound and sustainable for undertaking new programs. It is also envisaged that, with the charter of reforms that are followed by the State governments and ULBs, a stage will be set for PPPs. The agenda of reforms is given in the section below. The National Steering Group (NSG) may add additional reforms to identified reforms. A Memorandum of Agreement (MoA) between States/ULBs/Parastatal agencies and the Government of India, a prerequisite for accessing the Central assistance, would spell out specific milestones to be achieved for each item of reform. All mandatory and optional reforms shall be completed within the Mission period. 1. Mandatory Reforms (1) Mandatory Reforms at the Level of ULBs, and Parastatal Agencies (a) Adoption of modern accrual-based double entry system of accounting in ULBs and parastatal agencies. (b) Introduction of a system of e-governance using IT applications, such GIS and MIS for various services provided by ULBs and parastatal agencies.

(c) Reform of property tax with GIS. It becomes a major source of revenue for ULBs and arrangements for its effective implementation so that collection efficiency reaches at least 85 per cent within next seven years. (d) Levy of reasonable user charges by ULBs and Parastatals with the objective that the full cost of O&M or recurring cost is collected within the next seven years. However, cities and towns in the North East and other special category States may recover only 50 per cent of O&M charges initially. These cities and towns should graduate to full O&M cost recovery in a phased manner. (e) Internal earmarking, within local bodies, budgets for basic services to the urban poor. (f) Provision of basic services to the urban poor including security of tenure at affordable prices, improved housing, water supply and sanitation. Delivery of other existing universal services of the government for education, health and social security is ensured.

2) Mandatory Reforms at the Level of States (a) Implementation of decentralization measures as envisaged in 74th Constitutional Amendment Act. The State should ensure meaningful association and engagement of ULBs in planning the function of parastatal agencies as well as the delivery of services to the citizens. (b) *Repeal of ULCRA. 12(c) *Reform of Rent Control Laws balancing the interests of landlords and tenants. (d) Rationalization of Stamp Duty to bring it down to no more than 5 per cent within next seven years. (e) Enactment of the Public Disclosure Law to ensure preparation of medium-term fiscal plan of ULBs and parastatal agencies and release of quarterly performance information to all stakeholders. (f) Enactment of the Community Participation Law to institutionalize citizens participation and introduce the concept of the Area Sabha in urban areas. (g) Assigning or associating elected ULBs with city planning function. Over a period of seven years, transferring all special agencies that deliver civic services in urban areas to ULBs and creating accountability platforms for all urban civic service providers in transition. 2. Optional Reforms (common to States, ULBs and Parastatal Agencies)

The following optional reforms are expected to be undertaken by ULBs, parastatal agencies and State governments: (a) Revision of bye-laws to streamline the approval process for construction of buildings, development of site etc. (b) Simplification of legal and procedural frameworks for conversion of land from agricultural to non-agricultural purposes. (c) Introduction of Property Title Certification System in ULBs. (d) Earmarking at least 20-25 per cent of developed land in all housing projects (both public andprivate agencies) for EWS and LIG category with a system of cross subsidisation. (e) Introduction of computerised process of registration of land and property. (f) Revision of byelaws to make rain-water harvesting mandatory in all buildings and adoption of water conservation measures. (g) Byelaws for reuse of recycled water. (h) Administrative reforms i.e. reduction in establishment costs by adopting the Voluntary Retirement Scheme (VRS), not filling posts falling vacant due to retirement etc., and achieving specified milestones in this regard. (i) Structural reforms. (j) Encouraging PPP

Prepared by: Devang Patel 10 UP 02