Projects pertaining to the
following will be admissible under the Sub-Mission on Urban
Infrastructure and Governance.
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].
Water Supply (including
desalination plants) and sanitation
Sewerage and Solid Waste
improvement of drains/storm water drains
Urban Transport, including
roads, highways/expressways/ MRTS/metro projects.
Parking lots/spaces on
Public Private Partnership basis
Development of heritage
rehabilitation of soil erosion/landslides only in case of Special
Category States where such problems are common and
Preservation of water
Projects pertaining to the
following will not be admissible under the Sub-Mission.
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.
The main thrust of the
revised strategy of urban renewal is to ensure improvement in urban
governance so that Urban Local Bodies (ULBs) and para-statal agencies
become financially sound with enhanced credit rating and ability 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
All the mandatory and
optional reforms shall be implemented by the State/ULB/Para-Statals
within the mission period.
However, for schemes relating to water supply and sanitation, the following State level mandatory reforms may be treated as optional reforms:-
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:-
Appraisal of projects submitted by ULBs/Para-statal agencies;
Obtaining sanction of State Level Steering Committee for seeking assistance from Central Government under JNNURM;
Management of grants received from Central and State Government;
Release of funds to ULBs/Para-statal agencies either as grant, or soft loan or grant cum loan.
Management of Revolving Fund
Monitoring physical and financial progress of sanctioned projects;
Monitoring implementation of reform as entered into MoA.
Central assistance, as
aforesaid, would be the maximum assistance available under JNNURM.
In case any JNNURM project
is also approved as Externally Aided Project (EAP), the EAP funds can be
passed through as ACA to the State Government as funds contributed by
State/ULBs/FIs and JNNURM funds can be used as GoI contribution.
If necessary, internal
resources of implementing agencies, Member of Parliament Local Area
Development and Member of Legislative Assembly Local Area Development
funds may be substituted for institutional finance.
In case of Urban Transport
projects, the standard pattern of assistance of 35% will not apply. The
CCEA, while considering any such project proposal, may decide the level
of equity and/or loan to be provided by the Central Government.
In order to prepare City
Development Plan (CDP), Detailed Project Reports (DPRs), training &
capacity building, community participation, information, education and
communication (IEC), a provision of 5% of the Central grant or the
actual requirement, whichever is less, may be kept for sanction to
cities/towns covered under the Mission.
In addition, not more than
5% of the Central grant or the actual requirement, whichever is less,
may be used for Administrative and Other Expenses (A&OE) by the States.
Funds would be released as
Additional Central Assistance (100% Central Grant in respect of central
share) to the State Government or its designated State Level Nodal
Agency. 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. However, grant-cum-loan may be sanctioned in such a manner
that 25% of central and state grant put together is recovered and
ploughed into Revolving Fund to leverage market funds for financing of
further investment in infrastructure projects. At the end of the Mission
period, the Revolving Fund may be graduated to a State Urban
The first installment of
25% will be released on signing of Memorandum of Agreement by the State
Government/ULB/Para-Statal for implementation of JNNURM projects. The
balance amount of assistance shall be released as far as possible in
three insta lments upon receipt of Utilisation Certificates to the
extent of 70% of the grants (Central & State) and subject to achievement
of milestones agreed for implementation of mandatory and optional
reforms at the State and ULB/Parastatal level as envisaged in the
Memorandum of Agreement.