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A report on

Jawaharlal Nehru National Urban Renewal Mission

By Monica Chhatwani Roll No. 10BCL006 11/18/2011

Under the guidance of Prof. Pratima Singh

Table of Contents
1. 2. 3. 4. 5. JNNURM - An Introduction Scope of the Mission Institutional Framework List Of JNNURM Cities Methodology 5.1 5.2 5.3 5.4 6. Steps in the JNNURM process and Preparation Of CDP Reforms Preparation Of DPR Expected Outcomes 1 3 4 6 8 10 12 13 14 15 15 16 17 18 20 23 27 28

CDP Ahmedabad 6.1 6.2 6.3 6.4 6.5 6.6 City Assessment Reforms implemented for Ahmedabad City Consultations Development themes thrust areas Issues and strategies Urban Transport Some important developments in transport under JNNURM

7. 8.

Milestones Achieved Shortcomings

1. JNNURM - An Introduction
JNNURM stands for Jawaharlal Nehru National Urban Renewal Mission. It is a nationwide urban development scheme launched on 3rd December 2005 by the Ministry of Urban Development, Government of India to fast track planned development of 65 identified Indian cities. This mission is the single largest initiative by the government of India for a planned development of cities in terms of urban infrastructure as well as governance. The mission focuses on efficiency in urban infrastructure and service delivery mechanism. Ministry of Urban Development, Ministry of Urban Employment and Poverty Alleviation, Planning Commission, state governments, urban local bodies and other experts have participated in the preparation of this Mission.

Need For Development of Urban Areas:

According to the 2001 census, India has a population of 1027 million with approximately 28% or 285 million people living in urban areas and cities contribute 50-55% to our GDP. Based on the United Nations World Urbanization Prospects, the urban population of the country will rise to 463 million by 2020. It is estimated that by the year 2011, urban areas would contribute about 65 per cent of gross domestic product (GDP). Rapid urbanization has outpaced the existing rate of infrastructure development and services in our cities; ill-effects of which are: Increasing slum areas Inadequate water supply Poor transportation Encroachment of heritage areas Environmental concerns The lack of investment in power sector Flawed solid waste management Traffic congestion Insufficient basic services

The reforms are thus needed as higher productivity of our cities is dependent on availability of infrastructure services such as power, telecom, roads, water supply and mass transportation, coupled with civic infrastructure, such as sanitation and solid waste management and the quality of the infrastructure.

The major problem faced in the overall development of cities is that of lack of funds. JNNURM is that national initiative which brings together the State Governments and enable ULBs catalyse investment flows in the urban infrastructure sector. This new mission is being named after Jawaharlal Nehru. Panditji used to refer to factories as the temples of modern India. He saw in industrialization a renewed hope for urban India. The infrastructure created by Panditji has helped the process of industrialization enormously. Thus naming the mission after him is apt.

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.

The mission aims to create economically productive, efficient, equitable and responsive cities. The objectives of the JNNURM are to ensure that the following are achieved in the urban sector; Improve and augment the economic and social infrastructure of cities Ensure basic services to the urban poor, which includes security of tenure at affordable price, improved housing, water supply, sanitation Strengthen municipal governments and reform their governance Ensuring adequate funds to meet the deficiencies in urban infrastructural services Initiate wide-ranging urban sector reforms to eliminate legal, institutional and financial constraints that have impeded investment in urban infrastructure and services Planned development of identified cities including peri-urban areas, outgrowths and culturally and historically important places Convergence of services in fields of education, health and social security

2. Scope of the Mission

The JNNURM is designed to support: Water supply including setting up of desalination plants ; Sewerage and sanitation ; Solid waste management including hospital waste management ; Construction and improvement of drains and storm-water drainage system ; Road network ; Urban transport ; Construction and development of bus and truck terminals ; Renewal and re-development of inner city areas ; Development of heritage areas ; Preservation of water bodies ; Integrated development of slums, i.e. housing and development of infrastructure in slum settlements ; Provision of basic services to the urban poor ; and Street lighting.


The mission was launched with a massive investment of 100,000 crores to be distributed among cities for the developmental projects. JNNURM comprises two Sub-Missions: (i) Urban Infrastructure and Governance (UIG) (Sub-mission I) Administered by Ministry of Urban Development (ii) Basic Services to the Urban Poor Urban (BSUP) (Sub-mission II) Administered by Ministry of Urban Employment and Poverty Alleviation There are, in addition, two other components included later: (i) Urban Infrastructure Development of Small & Medium Towns (UIDSSMT) (ii) Integrated Housing and Slum Development Programme (IHSDP)

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. The second phase of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), meant to improve the quality of life and infrastructure in cities, will begin next year after the completion of its first phase. with an allocation of Rs 1,00,000 crore, twice the amount meant for JNNURM phase-I . The proposed JNNURM-II may run over seven years in order to cater to cities with a population of five lakh.

3. Institutional Framework
The JNNURM will function under the overall guidance and supervision of a National Steering Group (NSG). To be chaired by the Minister of Urban Development and co-chaired by the Minister of State for Urban Employment and Poverty Alleviation respectively, the NSG will set policies for implementation, monitor and review progress, and suggest correctives where necessary. The NSG will be supported by a Technical Advisory Group (TAG) whose task will be to appraise proposals and a Central Sanctioning and Monitoring Committee which will be responsible for further appraising and sanctioning proposals. At the state level, the JNNURM will be co-ordinated by the State Level Steering Committees. To be headed by the Chief Ministers, the State Level Steering Committees will review and prioritise proposals for inclusion in the JNNURM. The State Level Committees will be supported by nodal agencies who will invite project proposals, appraise them, and manage and monitor the JNNURM.

Central Sanctioning And Monitoring Committee


Technical Advisory Group

Sub-Mission: UIG

Sub-Mission: BSUP

State Level Steering Committee

State Level Nodal Agency

Funding Pattern (As % of total project cost)

*The above pattern doesnt apply to MRTS projects

4. List Of JnNURM Cities

In 2009, the cities of Tirupati and Porbandar were added in the list of Mission Cities included in the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), taking the number of Mission cities to 65.


5. Methodology
5.1 Steps in the JNNURM process:

The objective of the Mission would be met through preparation of City Development Plans (CDPs), Detailed Project Reports (DPR) and signing of MoA between the Centre, State, and Urban Local Body (ULB). Every city is expected to formulate a City Development Plan (CDP) indicating policies, programmes and strategies, and financing plans. The CDP would include identification of projects leading to the formulation of Detailed Project Reports (DPRs). The Urban Local Bodies (ULBs) / Parastatal agencies have to prepare DPRs for undertaking projects in the identified spheres. The projects should be planned so as to optimize the life-cycle costs. 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 need to be developed in a manner that would ensure and demonstrate optimization of the life-cycle costs over the planning horizon of the project. On approval of the CDPs and DPRs, the State Government and ULBs including Parastatal agencies, where necessary would execute a MoA with GoI indicating commitment along with a timeline to implement identified reforms.


Briefly the project development cycle comprises the following: (a) Identification of urban infrastructure/ basic services to urban poor projects and their prioritisation. (b) Project scoping. (c) Preparation of a detailed project report. (d) Finalisation of the arrangements for implementation. (e) Sanction of JNNURM assistance. (f ) Achievement of financial closure. (g) Execution of a Memorandum of understanding (MoA) and other agreements for implementation.

5.1 Step I: Preparation of CDP

A city development plan is a perspective and a vision for the city. It provides a framework within which the reforms are to be identified and implemented. The CDP focuses on the development of economic and social infrastructure, strategies that deal specifically with issues affecting the urban poor, strengthening of municipal governments, bringing in accountability and transparency, and elimination of legal and other factors that have stifled the overall progress. The stages involved in preparation of a CDP are as follows:


SWOT Analysis of the city


Direction of reforms and expectations


Formulations of reforms in various sectors


Facilitating Investments

The city assessment and preparation of a perspective and vision of the


CDPs are prepared with the help of Toolkits. The Toolkit is a complete document prepared by the Government of India contains the outline of the JNNURM framework, methodology for preparation of CDPs, project proposals, and timeline for preparation of the Reform Agenda.

5.2 Reforms
Mandatory Reforms
To be undertaken at the state level, the mandatory reforms are: 1) Effective implementation of decentralisation initiatives as envisaged in the Constitution (seventy- fourth) Amendment Act, 1992 2) Repeal of Urban Land (Ceiling and Regulation) Act, 1976 3) Reform of Rent Control laws, by balancing the interests of landlords and tenants 4) Rationalization of stamp duty to bring it down to no more than 5 per cent within seven years 5) Enactment of a public disclosure law 6) Enactment of a community participation law, so as to institutionalise citizens' participation in local decision making 7) Association of elected municipalities with the city planning function.

Optional Reforms
1) Revision of bye-laws to streamline the approval process for construction of buildings, development of sites etc 2) Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes 3) Introduction of property title certification 4) Earmarking of at least 20-25 per cent developed land in housing projects for economically weaker sections and low income groups with a system of crosssubsidisation 5) Introduction of computerised registration of land and property 6) Revision of byelaws to make rainwater harvesting mandatory in all buildings, and adoption of water conservation measures 7) Byelaws for reuse of recycled water 8) Administrative reforms including reduction in establishment cost by introducing voluntary retirement schemes and surrender of posts falling vacant due to retirement 9) Structural reforms 10) Encouraging public private-partnership

Activities Admissible Under JnNurm

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 nonconforming (inner-city) areas to conforming (outer-city) 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). 1. Water Supply including setting up de-salination plants, where necessary. 2. Sewerage and solid waste management. 3. Construction and improvement of drains/storm water drains. 4. Urban transport. 5. Laying/improvement /widening of arterial/sub-arterial roads and bridges to remove transport hurdles. 6. Laying of ring roads and by-passes around metro and mega cities, provided certain cost recovery measures like toll charges are built in. 7. Construction and development of bus and truck terminals. 8. Environmental improvement and city beautification schemes. 9. Construction of working women hostels, marriage halls, old age and destitute Childrens homes, night shelters with community toilets.

Strategies for Development of

Environmental services Social infrastructure Urban renewal Slum improvement and housing for EWS Transport and road services

5.3 Step II: Preparation Of DPR

DPR is the Detailed Project Report which deals with the actual finalisation of the project development modus operandi. It includes Analysis of options for implementation Necessity of the particular reform

Cost evaluation of the project Long and short term benefits from the project Analysis for sustainability

The methods adopted for these are Project Scoping includes identification of issues and risks associated with the project which may have been identified during the process of preparation of the CDP. Categorise projects which could be implemented within a suitable public-partnership partnership (PPP) framework (as PPP projects) and those which could be implemented otherwise (as non-PPP projects). The DPR is prepared to get the grant assistance from JNNURM, hence following points need to be considered: o technical feasibility o financial sustainability o commercial viability o environmental compatibility o social and political acceptability Procurement and appointment of consultants

Design of project components Public-Private Partnership (PPP)

Under JNNURM, the government therefore has encopuraged PPPs to attract market investment, thereby leveraging government budgetary resources to meet the provisions for infrastructure. PPP projects meet the requirements of the government for service provision, with respect to standards, levels and quality of serviceetc., reduce their exposure to risks and attract private investments. Government of India (Department of Economic Affairs) has formulated a Scheme for support to Public Private Partnerships in Infrastructure, July 2005. The strategy outlined in the same shall be broadly followed for PPP Projects proposed for funding under the JNNURM. PPPs require project reports to be sufficiently detailed, an implementation framework with a clear definition of roles and responsibilities shared between the two parties, risk assessment and management, and financial assessment from the investors perspective to address returns and bankability criteria. PPP projects should enhance the base environmental and social level to comply with the basic objective of public good.

Step III: Appraisal And Sanction, MoA

JNNURM shall be the catalyst for achieving financial closure of identified projects. State governments and ULBs would execute a Memorandum of Agreement (MoA) with GoI indicating commitment to implement identified reforms. The MoA would spell out specific milestones to be achieved. Signing of the MoA will be necessary to access Central assistance.


Universal access to a minimum level of services Establishment of city-wide framework for planning and governance Modern and transparent budgeting, accounting, and financial management system at municipal levels Financial sustainability for municipalities and other service delivery institutions Introduction of e-governance in the core functions of municipal governments Transparency and accountability in urban service delivery and management

4. CDP Ahmedabad
The urban fabric of a city must be woven of Education Environment Employment Economy Health Infrastructure

Keeping these aspects in mind the City development Plan for Ahmedabad was prepared. The CDP aims at positioning Ahmedabad as the VIBRANT CITY- A vibrant gateway to India. Vibrant, productive, harmonious, sustainable and environmental friendly, clean and livable city having a responsive local government offering its citizens a good quality of life is the vision conceived for Ahmedabad A Vibrant City, a City of Quality Life for all.

6.1 City Assessment- the SWOT analysis of Abad

Despite fluctuating fortunes of its industrial base, the city has emerged as a vibrant city. Successfully transformed itself from an image of being just a Textile City, Capital Market City, Chemical City to that of an Emerging multi-sector economy. It is the largest supplier of denim and one of the largest exporter of gems & jewellery in the country. Low cost of living, the city has the reputation of livable city. A Safe City The people of Ahmedabad are known for their Entrepreneurship, Reputation of trust, and hospitality. The labour issues are absent. The governments, both the State and Local are known to be proactive, transparent and effective implementers. The city has location advantages as it is one hour flying time to Delhi and Mumbai and has a large base of agricultural areas growing cotton, tobacco. It is also strategically located with regard to ports. It has the privilege to host world-class educational institutions (IIM, NID, CEPT, MICA, etc.) Rich historical and cultural heritage makes the place unique. Building on its strengths to exploit opportunities to become: A Textile & Apparel exports Hub A Design Hub A potential agriculture export hub A Drug & Pharma export hub A hub for Biotech & Packaged Food A IT & ITES Hub A Logistic Hub A Technical Education Hub (Management, Design, Architecture & Planning, Pharmacy)

In order to achieve financial closure or for signing an MoA in JNNURM certain mandatory and optional reforms are to be undertaken by the city/state. These are listed below.

6.2 Overall status Ahmedabad

State level reforms achieved:





74th Constitutional Amendment Act (Transfer of 12 Sch. functions) 74th CAA(Constitution of District Planning Committees) 74th CAA(Constitution of Metropolitan Planning Committees) Transfer of City Planning Functions Transfer of Water Supply & Sanitation Reform in Rent Control Stamp duty rationalization to 5% Enactment of Community Participation Law Enactment of Public Disclosure Law ULB Level reforms achieved: E- Governance set-up Shift to Accrual based Double Entry Accounting Property Tax (85% Coverage) Property Tax ( 90% Collection efficiency ) 100% cost recovery (Water Supply) 100% cost recovery (Solid waste) Internal Earmarking of Funds for Services to Urban Poor Optional reforms Simplification of Legal and Procedural framework for conversion of agricultural land for non-agricultural purpose Introduction of Property Title Certification System Introduction of computerized process of Registration of land and property Byelaws on Reuse of Recycled Water Simplification of Legal and Procedural framework for conversion of agricultural land for non-agricultural purpose Introduction of computerized process of Registration of land and property

Byelaws on Reuse of Recycled Water Administrative Reforms Structural Reforms Encouraging Public PrivatePartnership

6.3 City Consultations

The consultation process of Ahmedabad may be summarized as three phase activities as presented below.

Phase-I Consultations: City Visioning and Strategy Formulation The Ahmedabad Municipal Corporation, Ahmedabad Urban Development Authority and Urban Development Department, Government of Gujarat organized the workshop on the Ahmedabad City Development Strategy with support from the World Bank and the Australian Agency for International Development. This workshop was the first in a series of broad-based consultations, which would culminate in a City Corporate Plan and a 5 year Capital Investment Plan for Ahmedabad. Phase-II Consultations: Social & Environmental Management Framework and Slum Policy The second series of consultations took place between May 02 to February 03. The primary objective was to identify projects, assess possible environmental and social consequences of projects and evolve a management framework. These were facilitated by CEPT. Phase-III Consultations: Detailed Project Formulation The Plan The present plan is an amalgam of outcomes of these evolved over time and focuses on the key services as identified in the Visioning exercise as cited above. The plan is anchored on the NURM goal of creating economically productive, efficient, equitable and responsive cities. In line with this goal the plan focused on the following Development Themes encompass the socio-economic development sectors and core services. Major Projects like Sabarmati Riverfront and BRTS were incorporated during these consultations. GIDB, Urban Development Department, AMC, AUDA and CEPT organised the stakeholder worshop on August 25, 2005. The outcome was in the form of decision on phase-I corridors and approval for concept design. 164 members participated in the workshop. Second consultative activity was to decide on technology of the bus. A workshop was accordingly organised at CEPT in 2005.

6.4 Development Themes Thrust Areas Abad City

1) Water Supply & Sanitation Water Sewerage Storm water Solid Waste Management Sanitation

2) Traffic and Transportation Roads Bridges & Flyovers Control Systems Utilities Better space efficient parking systems Urban Transport (BRTS & MRTS)

3) Inner City Development

Bhadra Area Development & other City Heritage Conservation Vehicle Free Zone Development City Tourist/Heritage Centre

4) Urban Poor & Housing 5) 6) 7) Social Amenities Health sector Education sector Public Amenities Urban Environment Disaster Management Projects Sabarmati Riverfront Development Development of Green Belt along Ring Road, Tree Plantation, Parks etc., in the periphery at a cost of Rs. 30 Crores Urban Finance

8) -

Urban Governance & Management E-Governance: For efficient management of the increasing administrative responsibilities and the welfare activities, AMC has initiated a project on EGovernance. CITY MAPS: Town Planning and Information Systems City proposes to earmark Rs. 60.00 Crores for information system development.

6.5 Issues and Strategies Urban Transport

The city and the state identify urban transport as an important element of the strategy proposing to make city vibrant, productive and efficient Integrated Street Development Project (120 Kms of Arterial Road) @ Rs. 160 Crores Strengthening of 1100 Kms of other road network @ Rs. 165 Crores Rail, River Bridges, Flyover & ROB @ Rs. 332 Crores Decentralized Rail Transport Terminal (Sabarmati) @ 158 Crores 5 Transport Nodes @ Rs. 75 Crores MRTS Projects Regional Rail Project @Rs 1200 Crores Metro Rail Project @ Rs. 3900 Crores

Road Network The greater Ahmedabad area roadway system is approximately 3478 Kms. Other than the National Highway Authority, which maintains National Highways and the State Roads and Roads and Transportation City Development Plan for Ahmedabad Buildings Department, the two urban local bodies; AMC and AUDA, are responsible for developing, operating and maintaining road infrastructure

Bridges and Flyovers

There are eight bridges, which make it possible to traverse east-west across the river Sabarmati. There are two additional bridges proposed of which one in the south is under construction. In addition, there is one more bridge proposed between Subhash Bridge and Gandhi Bridge.

Courtesy: CDP Ahmedabad document

The Western part of the city has developed as a mainly residential area and the eastern part has the industrial estates. Because of this, the traffic flow is very heavy from west to east in the mornings and vice-versa in the evening, which causes serious traffic congestion and frequent traffic jams on the city roads during morning and evening peak periods. In the city of Ahmedabad, AMTS has been providing public transport facilities. AMTS, a municipal body, operates the services with about 550 buses of which only about 350 are on road every day. They used to service about 250,000 passengers per day in the month of march 2004. The service had deteriorated significantly over the years. Now the system has improved with passenger patronage increasing to 6,50,000 per day.

Issues related to transport

Poor connectivity in peripheral areas: The areas which were incorporated within city limits in 1986, are not very well connected and the road network is not fully developed in these areas.

Discontinuity in Ring Road

Partially developed Right-of Ways

Poor Junction Design : The city has quite a number of five arm and six arm junctions, most of which are rotary intersections. Due to the limitation of its capacities, these rotaries are gradually becoming incapable of handling the increasing traffic. The roads have partially developed right-of-ways and lack pedestrian facilities.

Inadequate parking facilities: The commercial development in Ahmedabad is mostly along the major roads and junctions. Such developments have most of the time not accounted for parking facilities. Lack of adequate parking facilities has resulted in provision of on-street parking which reduces the effective carriage way of roads affecting the travel speed. Conflict between the slow and the fast traffic is another problem. Owing to the narrow road widths, segregation of traffic is not possible. Parking places are highly inadequate for the high vehicular population in the city. On street parking is observed along the major corridors, in the old city area and the public parking places near the ST Bus stand, commercial centres.

Lack of pedestrian facilities: The city lacks pedestrian facilities in form of footpaths, zebra crossings, subways etc. On the major roads like Ashram Road, Relief Road which have a very high traffic volume, such facilities are imperative for pedestrians. Also footpaths along major commercial roads are either of very less width or are encroached upon.

Delays and low travel speed : In most of the cases, the average travel speed on the major roads is less than 10km/hour because of congestion and increasing delays at intersections. Lack of traffic segregation on all the major arterial roads has been the main reason for the slow movement of vehicles and chaos at intersections.

Inefficient Public Transport System :The Public Transport System being offered by AMTS, is facing problems of increasing costs and decreasing occupancy rates. In Ahmedabad, currently public transport caters only to 20% trips. Poor service quality and quantity has resulted in non-reliance on the public transport system and thus whopping increases in personalized vehicle modes.

Thus the implementation of projects under JnNURM becomes all the more important to eliminate all these bottlenecks to makin Abad a fully developed vibrant city.

6.6 Some Important Developments in transport under JnNURM

1)Ahmedabad BRTS Estimated cost 604 crores in total
BRTS Exclusive Corridor Phase 1 BRTS Exclusive Corridor Phase 1 A BRTS Exclusive Corridor Phase 2 BRTS Feeder Network Total BRT Network 58 km 22 km 155 km 145 km 380 km

The BRTS Ahmedabad is an extremely successful project and won the best BRT system award in 2009 after completion of its first phase. These low floor CNG buses with regular onboard announcements have increased the ease in transportation in Ahemdabad manifold. The connectivity across the city has increased. Citizens can commute at affordable rates as well as save a lot of time.

2)Ahmedabads first two level flyover Estimated cost- 42.93 crores

Gujarat Chief Minister Shri Narendra Modi inaugurated Ahmedabads first two-level fly over bridge at CTM cross roads on Narol-Naroda road on 29 June, Wednesday.The flyover has been constructed under JnNURM. Ahmedabad is the first city in Gujarat to have a double split and cross flyover. An estimated Rs 42.93 crore have been spent to construct this flyover. One of the branches of this flyover will lead to Hatkeshwar from CTM crossroads, while the other will take commuters to Ahmedabad-Vadodara express highway. The cross flyover is a boon for those seeking direct connectivity to the expressway without any traffic snarls. The height of the upper branch of the flyover is around 15 metres while it is 8 metres at the lower branch.

3) Construction Of Six Lane Fly Over Bridge On Sola (AEC) Junction At Ahmedabad
Cost of project -22.18 crores

4) Construction Of Four Lane Bridge On Sabarmati - Viramgam B. G. Railway Line,

Chanakyapuri Ahmedabad

5) Construction Of Four Lane Fly Over Bridge On Shivranjani Junction At Ahmedabad

Cost of project -17.99 crores 6) Construction Of Six Lane Fly Over On Memnagar Junction At Ahmedabad

5. Milestones Achieved
As per the data upto 21st June, 2011 Number of cities covered under JNNURM Number of City Development Plans (CDPs) appraised Number of Memorandum of Agreements (MoAs) signed Number of projects approved Total approved project cost For 533 projects (Rs. In Crore) 65 64 65 533 60544.73

There is a special module for documentation of Best Practices, in order to set an example for the other cities to follow. For example Solid waste management in Singapore, solid waste management in greater Mumbai,etc. In order to encourage reforms, performance awards are given to cities where remarkable work has been done under JNNURM. 15,260 buses for 61 mission cities were approved in 2009. As many as 143 projects for water supply and 40 SWM (Solid Waste Management) projects have been sanctioned under JNNURM, which is an unprecedented development in these sectors for our country. According to Minister for Urban Development Mr. Saugata Roy at Gujarat has made the most significant progress in terms of implementation of JnNURM projects.

No. of projects sanctioned Cost of sanctioned projects (Rs. in lakh) ACA admissible (Rs. In lakh) ACA released (Rs. in lakh)

71 549323.60 238574.60 159084.8

6. Shortcomings
For urban development JNNURM alone is not enough. There are sectors which it misses out on the whole. Projects pertaining to the following are not eligible for JNNURM assistance: INADMISSIBLE COMPONENTS (1) Power (2) Telecom (3) Health (4) Education (5) Wage employment programme and staff components. (6) Creation of fresh employment opportunities

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM), at Rs 1,20,000 crore the largest-ever urban spending initiative in India, is spawning many such success storiesbut not in the numbers it should. After about 6 years of implementation and with only little over a year left for the mission's completion, a moderate implementation of reforms has taken place, many states and cities lag behind in completing milestones, thereby raising questions as to how seriously are the states committed to these much needed reforms and with such delays and somewhat lack of seriousness, will our cities be able to move in tune with the huge requirements of today and tomorrow.

Upto 15 Jan, 2011, out of the 527 infrastructure projects sanctioned so far for the 65 mission cities costing about Rs 60,000 crore, only 81 have got completed so far, that too in only eight states, maximum being in Gujarat (27 out of 70 projects).

Two major problems in implementing the new public transportation system: absence of (a) linkage of metro rail system to the bus system; and (b) lack of expertise in Bus Rapid Transport system. Many cities such as Indore, Baroda and Surat, private enterprises are allowed to run the public transport system. Public entity invites bids for certain routes and then the private agency is selected to operate.

There is often a mis-match between functional responsibilities and resource generation capacity of local governments. Therefore, the lower tiers of governance would depend on the higher tier for actual devolution. Thus there is always a top bottom approach in grtting any project done, not a bottom top approach.

The main problem with the JNNURM is the states are not keen on implementing the policy reforms that are linked to the release of funds. As a result only a third of the total funds under the JNNURM have been disbursed so far to the states.

Complexity and procrastinating the implementation of reforms: States seeking JNNURM funds have to implement 23 reforms, some mandatory and some optional. The reforms relate to e-governance, municipal accounting, property tax, lower stamp duty, community participation law, public disclosure law and levy of user charges, among other things. On the ground, only 30 civic bodies have shifted to double entry accounting, 13 claim to have e-governance in place and just nine states have reduced stamp duty.

Implementation of reforms is a complex process. The states keep deferring implementation and ask for more time. The states, instead, keep putting pressure on the Centre to release JNNURM funds even if the reforms have not been put in place.

State governments also have to transfer powers and responsibilities to urban local bodies or ULBs to enable them to become financially sustainable institutions. Lack of trained and motivated work force at ULB level: Most civic bodies do not have the capacity (trained manpower and processes) to complete the projects. However, the Centre is helping out with training programmes and project management units by organizing various conferences and workshops. Organizations such as PEARL and CCS are working for sharing the knowledge base so that cities could benefit from each other. But still there is need for technically sound professionals at ULB levels. In certain cities, the staff, including engineers and clerks at the ULBs, does not understand things such as financial analysis and such other terms.

Lack of knowledge about Capacity building initiatives

Very few CVTCs and TAGs have come up under the JnNURM though guidelines for the same have been incorporated by the centre. This has hampered proper monitoring, training and implementation of projects as well as reforms.

There is some amount of irresponsibility shown on the part of the ULB as well as the firms which have been assigned given projects like use of substandard material and delay in completion, but these instances are few.

To be fair, the JNNURM has changed the urban landscape in pockets. Every state now realises the importance of managing the process of urbanisation. Local governments are also keenly aware of the need to develop plans, identify priorities, raise matching funds and execute projects. And they are willing to do bigger projects. The JNNURM's Phase II will include another set of reforms, and a tighter monitoring mechanism. Also, the central government has learned that one-size-fits-all model doesn't work, so every state will have a different set of reforms. The private sector may get a bigger role as the ULBs and states cannot match their level of efficiency