As per 2001 population census 285.35 million people reside in urban areas. It constitutes 27.8% of the total population of the country. In post-independence era while population of India has grown three times, the urban population has grown five times. The rising urban population has also given rise to increase in the number of urban poor. As per 2001 estimates, the slum population is estimated to be 61.8 million. The ever increasing number of slum dwellers causes tremendous pressure on urban basic services and infrastructure. In order to cope with massive problems that have emerged as a result of rapid urban growth, it has become imperative to draw up a coherent urbanization policy/strategy to implement projects in select cities on mission mode.

Reforms driven, fast track, planned development of identified cities with focus on efficiency in urban infrastructure/services delivery mechanism, community participation and accountability of Urban Local Bodies (ULBs)/Parastatals towards citizens.

i. Planned urban perspective frameworks for a period of 20-25 years (with 5 yearly updates) indicating policies, programmes and strategies of meeting fund requirements would be prepared by every identified city. This perspective plan would be followed by preparation of Development Plans integrating land use with services, urban transport and environment management for every five year plan period.

ii. Cities/Urban Agglomerations/Parastatals will be required to prepare Detailed Project Reports for undertaking projects under identified areas.

iv. Funds for the identified cities would be released to the designated State Nodal Agency, which in turn would leverage, to the extent feasible, additional resources from the financial institutions/private sector/capital market.

v. Funds from Central and State Government will flow directly to the nodal agency designated by the State, as grant. The nodal agency will disburse central assistance to ULBs or para-statal agencies as the case may be, as soft loan or grant-cum-loan or grant.

vi. A revolving fund will be created to meet the operation and maintenance costs of the assets created under the Mission.

a) Focussed attention to integrated development of infrastructural services in the cities covered under the Mission.

b) Secure effective linkages between asset creation and asset management so that the infrastructural services created in the cities are not only maintained efficiently but also become self-sustaining over time.

c) Ensure adequate investment of funds to fulfill deficiencies in the urban infrastructural services.

. The duration of the Mission would be seven years beginning from 2005-06. During this period, the Mission will seek to ensure sustainable development of select cities. An evaluation of the experience of implementation of the Mission would be undertaken before the commencement of Eleventh Five Year Plan and if necessary, the programme calibrated suitably.

The main thrust of the sub-Mission on Urban Infrastructure and Governance will be on major infrastructure projects relating to water supply including sanitation, sewerage, solid waste management, road network, urban transport and redevelopment of inner (old) city areas with a view to upgrading infrastructure therein, shifting industrial/commercial establishments to conforming areas, etc.

i. Urban Renewal i.e. redevelopment of inner (old) city areas [this would include items like widening of narrow streets, shifting of industrial/commercial establishments from non-conforming to `conforming’ areas to reduce congestion, replacement of old and worn-out water pipes by new/higher capacity ones, renewal of sewerage/drainage/solid waste disposal systems, etc].

NOTE: Land cost will not be financed except for acquisition of private land for schemes/ projects in the North Eastern States and hilly States viz Himachal Pradesh, Uttaranchal and Jammu & Kashmir.

7.2 Inadmissible Components - Projects pertaining to the following will not be admissible under the Sub-Mission.

i. Power

ii. Telecom

iii. Health

Keeping in view the paucity of resources and administrative constraints in taking up all cities and towns under this intensive urban infrastructure improvement programme, it is suggested that under JNNURM only selected cities/ Urban Agglomerations (UAs) as per 2001 Census will be taken up, as per norms/criteria mentioned below:

Complete list of cities/Urban Agglomeration/towns covered under the Mission are given at Annexure – I.

8.1 The cities should have elected bodies in position.

to access market capital for undertaking new programmes and expansion of services. In this improved environment, public-private participation models for provisioning of various services would also become feasible. To achieve this objective, State Governments, Urban Local Bodies and para-statal agencies will be required to accept implementation of an agenda of reforms. The proposed reforms shall broadly fall into two categories:-

i) Mandatory reforms

ii) Optional reforms

List of mandatory and optional reforms is at Annexure-II.

9.2 All the mandatory and optional reforms shall be implemented by the State/ULB/Para-Statals within the mission period.

a. Repeal of Urban Land Ceiling and Regulation Act;

b. Amendment of Rent Control Act;

The State Governments and the ULBs including para-statal agencies where necessary would execute Memorandum of Agreement (MoA) with Government of India indicating their commitment to implement identified reforms. MoA would spell out specific milestones to be achieved for each item of reform. Signing of MoA will be a necessary condition to access Central assistance. This tripartite MoA would be submitted along with Detailed Project Reports (DPRs). The central assistance will be predicated upon the State Governments and the ULBs/Parastatals agreeing to the reforms platform.

11.2 National Steering Group may add additional reforms to the identified reforms.

11.3 National Steering Group may consider addition or deletion of cities/towns under Category-C (other than State capitals) based on the suggestions received from State Governments. The number of cities under the Mission shall, however, remain around 60.

There shall be a Mission Directorate under the charge of Joint Secretary in Ministry of Urban Development for ensuring effective coordination with State Governments and other agencies for expeditiously processing the project proposals. National Technical Advisor shall be one of the Members of the Directorate. The Mission Directorate will process the project proposals received from State Governments and place them before Central Sanctioning and Monitoring Committee for consideration.

13.1 Detailed Project Reports would be scrutinized by the Technical wings of the Ministry or if necessary by specialized/technical agencies before placing such proposals for sanction by Central Sanctioning and Monitoring Committee.

13.2 Depending upon the cost of the projects under the Sub-Mission on BSUP, Ministry of Urban Employment and Poverty Alleviation will ensure approval of competent authorities as envisaged in Ministry of Finance (Department of Expenditure) O.M.No. 1(26)-E.II(A)/2002 dated 21.12.2002 as amended from time to time.

1. Secretary (UD) Chairman

2. Secretary (UEPA) Member

3. Principal Adviser (HUD), Member Planning Commission

4. Joint Secretary & FA Member

5. Chief Planner, TCPO Member

6. Adviser, CPHEEO Member

7. CMD, HUDCO Member

8. Joint Secretary (UD) Member-Secretary

14.2 The Committee would assign higher priority in sanctioning projects of urban renewal, water supply including sanitation, sewerage, solid waste management, drainage, urban transport including roads.

14.3 Projects with private sector participation will be given priority over projects to be executed by ULBs/Parastatals themselves, as this will help leverage private capital and bring in efficiencies.

In addition, at the National level, an Advisory Group would be constituted for the Mission/sub-Mission. The Group would be headed by a Technical Adviser drawn from civil society with proven experience in mobilizing collective action for reforms in urban governance. The group would enable the Mission to create similar voluntary Technical Corps in each city identified for the Mission/sub-Mission.. It would encourage private sector participation, citizen’s involvement in urban governance at grass root level and transparency in municipal governance.

At the State level, a Steering Committee would be set up by each State for deciding and prioritizing the projects under the Mission. The Steering Committee would comprise:

i. Chief Minister of the State/ Chairman Minister of Urban Development/Minister of Housing

The Steering Committee at the State Level would be assisted by the nodal agency identified by the State Government for implementation of JNNURM. The nodal agency would, inter-alia, perform following functions:-

a. Appraisal of projects submitted by ULBs/Para-statal agencies;

b. Obtaining sanction of State Level Steering Committee for seeking assistance from Central Government under JNNURM;

c. Management of grants received from Central and State Government;

d. Release of funds to ULBs/Para-statal agencies either as grant, or soft loan or grant cum loan.

e. Management of Revolving Fund

f. Monitoring physical and financial progress of sanctioned projects;

g. Monitoring implementation of reform as entered into MoA.