Jawaharlal Nehru National Urban Renewal Mission

Transforming Transportation26th January 2012

O.P. Agarwal

INDIA'S URBAN TRANSITION

109.10159.50

217.60285.35

352.25396.60

447.53

575.68

439.10524.80

628.70

741.67811.77 833.88 843.77 833.25

548.20

684.30

846.30

1027.02

1164.021230.48

1291.30

1408.93

0

200

400

600

800

1000

1200

1400

1600

1971 1981 1991 2001 2010 2015 2020 2030

YEAR

PO

PU

LATIO

N I

N M

ILLI

ON

Urban Population (million) Rural Population (million) Total Population (million)

Urban Challenge …..

2nd largest urban system globally Urban population - 320 million (2011) Urban decadal GR : 25% - 30% GDP contribution: 50% +

Urban system

Jawaharlal Nehru National Urban Renewal Mission….. a break from the past and integrated approach

• Towns (nos.) : 5,161• Million + cities : 35• 100,000 + cities: 423

Urban systems and challenges

Sub Mission for Urban Infrastructure and Governance

Sub Mission for Basic Services for the Urban Poor

Cities/UAs with 4 million + population 07Cities with 1 million + population 28State Capitals and other Cities 30

Track-I Track-II

Coverage- 65 cities

Coverage- all other cities

Jawaharlal Nehru National Urban Renewal MissionTwo track strategy for the urban sector development

Urban Infra. Dev. Scheme for Small & Medium Towns

Integrated Housing & Slum Dev. Program

• Planned development

• Integrated development of

infrastructure

• Linkages between asset

creation & asset

management

• Ensuring adequate

investment of funds

• Scaling up delivery of

services and emphasis on

universal access

• Renewal of inner city areas

Mission Objective and Coverage

PORBANBAR

THIRUPATI

Salient Features

• Cities are required to prepare City Development Plans (Vision Documents) as participatory frameworks for Infrastructure planning and prioritization, and Framing urban reform agendas

• Funding support for infrastructure is linked to reforms Cities and State need to enter into Memorandum of Agreement with

Government of India to implement urban reforms in order to access JNNURM funds

• Urban Infrastructure Projects are prepared and executed by the Cities Cities are provided funding assistance for implementing urban projects

based on Detailed Project Report.

• Urban Renewal • Water Supply • Sewerage & Sanitation• Solid Waste Management • Storm Water Drains• Urban Transport • Parking spaces (through PPP)• Development of heritage areas• Preservation of water bodies• Prevention & rehabilitation of soil erosion

Eligible projects

GrantULB/

Parastatals/Centre State

Cities with 4 million plus population 35% 15% 50%Cities with million plus but less than 4 million population

50% 20% 30%

Cities in North Eastern States and J&K 90% 10% -Other Cities 80% 10% 10%Desalination Plant (for any city) 80% 10% 10%

Funding Pattern

9

All reforms have to be completed within the Mission period, as per an agreed timeline – MoA .

Urban Sector Reforms

Reforms (1)

• Adoption of modern accrual-based double entry system of accounting

• Introduction of a system of e-governance using IT applications

• Reform of property tax so that it becomes a major source of revenue for the city

• Arrangements for its effective implementation so that collection efficiency reaches at least 85 per cent within next seven years.

• Levy of reasonable user charges with the objective that the full cost of O&M or recurring cost is collected within the next seven years

• Internal earmarking in the budgets for basic services to the urban poor.

Reforms (2)

• Revision of bye-laws to streamline the approval process for buildings, etc.

• Simplification of legal and procedural frameworks for conversion of agricultural land to non-agricultural purposes

• Introduction of Property Title Certification System• Earmarking at least 20-25% of developed land in all

housing projects for EWS and LIG category• Introduction of computerized process for registration of

land and property• Revision of byelaws to make rain-water harvesting

mandatory in all buildings and Byelaws for reuse of recycled water

• Encouraging PPP

12

Overall Status of Project Implementation

Particulars Total

Cost of Approved Projects (Rs. Billion) 734.58

Central Assistance Committed (Rs.

Billion)383.97

Central Assistance Released : FY

2005-2011 (Rs Billion)215.16

Approved Projects (Nos.) 1,296

Completed Projects (Nos.) 231

Total Utilisation (Rs. Billion) 303.13

Progress in use of funds (Rs Bn)

2005-06 2006-07 2007-08 2008-09 2009-10 2010-110

10

20

30

40

50

60

70

80

90

Allocated Utilised

13

Sector breakup

638

20

7 2

Water supply Urban Transport Sewarage Drainage Solid waste

14

Progress of Reforms- State Level

Category Name of States Number

Achieved allWest Bengal, Maharashtra, Madhya Pradesh, Uttar Pradesh, Delhi, Kerala 6

Performing well (above 50%)

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Karnataka, Orissa, Rajasthan, Tamil Nadu, Tripura,

11

Slow moving (below 50%)

Arunachal Pradesh, Chandigarh, Goa, Manipur, Mizoram, Nagaland, Sikkim, Jammu and Kashmir, Meghalaya, Punjab, Puducherry, Uttarakhand, Himachal Pradesh, Jharkhand

14

16

Progress of Reforms- ULB Level

Category Number

Achieved all 16

Performing well 23

Slow moving 24

Key Issues in Implementation

Lack of capacity of the ULBs : Dealing with delivery of specialized services such as fire services

and planning and Urban forestry - many states have not transferred these functions

Lack of Political support in some areas : Implementation of urban planning, rent control and Community

participation law require considerable political support Political consensus is also required for levy of property tax, doing

away with exemptions, periodic surveys and improving administration of ULBs to enhance coverage and collection.

Resistance from states/ULBs to implement reforms: Resistance on account of loss of revenue due to stamp duty

reduction Resistance to levy of user charges for solid waste as in many

states it is recovered under property tax ; People are reluctant to pay additional user charge as it is

considered as an obligatory responsibility of the ULB hence

An initiative for knowledge sharing among cities launched

Objective: To create manageable networks between JNNURM cities for cross learning and knowledge sharing

Progress so far: 5 groups have been formed - A: Mega Cities with global character in socio-economic profile,B: Major industrial cities,C: Mixed economy cities D: Cultural and religious cities,E: Hill and environmentally sensitive cities

Peer Experience and Reflective Learning (PEARL)

Major Impact

• Firmly established a focus on the development of cities

• Strong focus on cities taking responsibility

19

Lessons learnt

• Need to build capacity before launching such a huge program

• Special emphasis to hand hold lagging states needed – financial incentives not enough

• Sustained focus on reforms can be difficult – needs the right visionaries – political pressures on the investments

20

Thank You