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Urban Infrastructure & Governance
Mission Coverage
Mission Components
Admissible Components Projects pertaining to the following will be admissible under the Sub-Mission on Urban Infrastructure and Governance.
  1. 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].
  2. Water Supply (including desalination plants) and sanitation
  3. Sewerage and Solid Waste Management
  4. Construction and improvement of drains/storm water drains
  5. Urban Transport, including roads, highways/expressways/ MRTS/metro projects.
  6. Parking lots/spaces on Public Private Partnership basis
  7. Development of heritage areas
  8. Prevention & rehabilitation of soil erosion/landslides only in case of Special Category States where such problems are common and
  9. Preservation of water bodies.
Inadmissible Components Projects pertaining to the following will not be admissible under the Sub-Mission.
  1. Power
  2. Telecom
  3. Health
  4. Education
  5. Wage employment programme & staff component
  Mission Coverage
  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.
  Urban Reforms
  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 categories:-
  1. Mandatory reforms
  2. Optional reforms
  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:-
  1. Repeal of Urban Land Ceiling and Regulation Act;
  2. Amendment of Rent Control Act;
  Nodal Agency
  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:-
  1. Appraisal of projects submitted by ULBs/Para-statal agencies;
  2. Obtaining sanction of State Level Steering Committee for seeking assistance from Central Government under JNNURM;
  3. Management of grants received from Central and State Government;
  4. Release of funds to ULBs/Para-statal agencies either as grant, or soft loan or grant cum loan.
  5. Management of Revolving Fund
  6. Monitoring physical and financial progress of sanctioned projects;
  7. 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.
  Release of Funds
  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 Infrastructure Fund.
  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.
  Monitoring progress of projects sanctioned under the Mission
  Ministry of Urban Development will periodically monitor the scheme through designated Officers of this Ministry for each State/ UT.
  • State level nodal agency would send quarterly progress report to the Ministry of Urban Development.
  • Upon completion of the project, nodal agency through the State Government would submit completion report in this regard.
  • Central Sanctioning & Monitoring Committee may meet as often as required to sanction and review/monitor the progress of projects sanctioned under the Mission.
  • Monitoring of progress of implementation of reforms would be outsourced to specialized/technical agencies.
List of identified cities
City Name of the State Population (in lakh)

Mega City

Kolkata West Bengal 132.06
Million-plus City
Asansol West Bengal 10.67
Mission Components Mission CoverageUrban ReformsNodal AgencyRelease of FundMonitoring progressList of identified citiesPhysical Component
Development Programmes
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