Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

Year of Launch: December 2005. The mission was launched for a period of seven years.

Nodal Ministry: Ministry of Housing & Urban Poverty Alleviation

Budget:  In the first phase, the government had planned to spend about Rs 81,000 crore, of which Rs 42,000 crore was to come from the Centre.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) comprises four schemes. It funds specific projects for urban infrastructure and basic urban services in 65 cities of India through two schemes, i.e. the Scheme for Urban Infrastructure and Governance (UIG) and the Scheme for Basic Services to the Urban Poor (BSUP).

The other two schemes, i.e. the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) and the Integrated Housing and Slum Development Programme (IHSDP) cover non-Mission cities and towns with the aim of integrated provision of basic entitlements and services to all including the urban poor.

Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT)

Urban Renewal is one of the thrust areas in the National Common Minimum Programme of the Government and accordingly Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched on 3rd December 2005 with an investment of Rs.1,00,000.00 crores in Mission period of seven years beginning 2005-06. Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) is one of the components of JNNURM. The Mission is the single largest initiative of the Government of India for planned development of cities and towns. (To know more about the Scheme, clickhere)

Integrated Housing and Slum Development Programme (IHSDP)

Integrated Housing & Slum Development Programme aims at combining the existing schemes of VAMBAY and NSDP under the new IHSDP scheme for having an integrated approach in ameliorating the conditions of the urban slum dwellers who do not possess adequate shelter and reside in dilapidated conditions.

The mission has completed its normal tenure of 7 years on March 31, 2012 and the Government has extended the period for 2 years i.e. upto March 2014 for completion of ongoing projects and reforms only. (To know more about the Scheme, click here)

Objectives Of The Mission

The objectives of the JNNURM are to ensure that the following are achieved in the urban sector:

• Focussed attention to integrated development of infrastructure services in cities covered under the Mission
• Establishment of linkages between asset-creation and asset-management through a slew of reforms for long-term project sustainability
• Ensuring adequate funds to meet the deficiencies in urban infrastructural services
• Planned development of identified cities including peri-urban areas, outgrowths and urban corridors leading to dispersed urbanisation
• Scale-up delivery of civic amenities and provision of utilities with emphasis on universal access to the urban poor
• Special focus on urban renewal programme for the old city areas to reduce congestion
• 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.
• Under the JNNURM, the Government of India enters into partnership with state governments and Urban Local Bodies (ULBs).
• As a first step, the ULB has to prepare a perspective plan or a City Development Plan (CDP), which is followed by a Detailed Project Report (DPR) in line with the priorities laid out in the CDP.
• The state government and the ULB of a Mission city are required to sign a memorandum of agreement (MoA) with the Government of India, where both the state government and the ULB commit to a set of reforms and they all agree to share in the funding of the project.
• The state government and the ULB are expected to make specified parallel financial contributions along with the Government of India.
• For large cities with population of more than 4 million, a 35 per cent grant is made by the Government of India, 15 per cent by the state government, and 50 per cent by the ULB.
• In the case of cities with population between 1 and 4 million, 50 per cent is provided by the Government of India, 20 per cent by the state government, and 30 per cent by the ULB.
• For all other cities, the Government of India provides 80 per cent of the grant, while the state government and the ULB contribute 10 per cent each.
• Cities in north-eastern states and Jammu and Kashmir receive 90 per cent grant from the Government of India and 10 per cent from the state government.

Salient Features

• Under the JNNURM, the Government of India enters into partnership with state governments and Urban Local Bodies (ULBs).
• As a first step, the ULB has to prepare a perspective plan or a City Development Plan (CDP), which is followed by a Detailed Project Report (DPR) in line with the priorities laid out in the CDP.
• The state government and the ULB of a Mission city are required to sign a memorandum of agreement (MoA) with the Government of India, where both the state government and the ULB commit to a set of reforms and they all agree to share in the funding of the project.
• The state government and the ULB are expected to make specified parallel financial contributions along with the Government of India.
• For large cities with population of more than 4 million, a 35 per cent grant is made by the Government of India, 15 per cent by the state government, and 50 per cent by the ULB.
• In the case of cities with population between 1 and 4 million, 50 per cent is provided by the Government of India, 20 per cent by the state government, and 30 per cent by the ULB.
• For all other cities, the Government of India provides 80 per cent of the grant, while the state government and the ULB contribute 10 per cent each.
• Cities in north-eastern states and Jammu and Kashmir receive 90 per cent grant from the Government of India and 10 per cent from the state government.

NIJNNURM or JNNURM II

High Powered Expert Committee (HPEC) for estimating the investment requirement for urban infrastructure has recommended New Improved JNNURM (NIJNNURM) for the 12th five year plan.

Main features of the NIJNNURM spelt out by the committee are:

• Coverage — Accessible to all cities/towns – big and small
• Scale — 0.25 per cent of GDP annually
• Duration — 20 years
• City Differentials — Smaller cities and towns should be treated differently from larger cities and metros for funding, capacity building and reform content and timelines
• State Funding: State governments not required to make any financial contribution towards the NIJNNURM because of the Committee’s recommendation for devolution

Union Ministry of Urban development, and Housing and Urban Poverty Alleviation, in consultation with other relevant agencies are putting together detailed guidelines for the NIJNNURM.