Progress of Projects and reforms under JNNURM Reviewed
The Secretary, Ministry of Urban Development, Shri M. Ramachandran yesterday held a day long review of all the important urban development schemes with the Principal Secretaries/Secretaries of States and Union Territories in New Delhi.
The focus of the review was Jawaharlal Nehru National Urban Renewal Mission (JNNURM) both in terms of projects and the urban reforms which have been initiated due to the mission. Other areas of review included the National Urban Information System and the National Urban Data Bank indicators, implementation of the model Municipal Law, Setting up of District Planning Committees and Metropolitan Planning Bodies.
The meeting also explored finances required for the development of urban infrastructure. As per the cost estimates of the Government to sustain growth at 8.5 to 9 percent infrastructure investment is estimated at US $ 500 billion. The total resources available at present is US $ 350 billion with an unmet requirement of US $ 40 billion. The gap of US $ 150 is to be bridged. In this context the possibilities of inviting private parties in urban sector was explored. The Department of Economic Affairs made a short presentation on various steps taken by the Finance Ministry to attract private participation in urban sector. States were advised to look at the guidelines and initiatives by the Finance Ministry for encouraging private participation including appointment of transaction advisors, for preparing PPPS.
As far as JNNURM was concerned the meeting was apprised that 324 projects were approved by the Central Sanctioning Monitoring Committee (CSMC) amounting to over Rs. 30,000 crore and central assistance amounting to around Rs 15,000 crore was committed. 90 projects are slated for completion by December 2008 while 10 projects have been completed in 4 cities under the urban infrastructure and governance component.
Under the Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) during the last financial year central assistance amounting to Rs 1248.90 crore was released for 427 projects in 350 towns. The total cost of approved projects for which central assistance has been released in the last three years is Rs 6200 crores.
An important component of JNNURM is the reforms. Under the scheme reforms are to be initiated by the State Governments in order to increase the viability of the local bodies and also to improve the sustainability of the schemes initiative. While the progress in the reforms such as in the internal earmarking of resources for urban poor was good with 35 cities out of 63 having achieved it by the 3rd year, reforms in other areas such as enactment of public disclosure law and community participation law was slow.
Under the 74th constitution amendment conversion of all, Schedule 12 function with ULB and constitution of District Planning Committees and Metropolitan Planning Committees were to be initiated. While in the case of transfer of functions, 10 states have achieved the milestone. One state, Punjab has defaulted in terms of constitution of DPCs, while 15 states have achieved this milestone. Although 12 states have committed to enact new Rent Control Law, only 6 have accomplished this milestone. In terms of rationalization of stamp duty and reduction of duty by 5%, 5 states have been able to achieve this. At the ULB level mandatory reforms, some states have initiated full recovery of maintenance charges of water supply and sewerage.
The meeting yesterday also reviewed the progress of National Urban Information System. The first installment has also been released to 21 states for creation of information systems. It was also noted by the meeting that the states of Bihar and Sikkim have enacted municipal laws on the lines of Model Municipal Law.
During the meeting, states were sensitized to greater involvement of private partners in urban infrastructure. The meeting also reviewed the status of proposal on setting up of Independent Review & Monitoring Agencies (IRMA). The Centre has sanctioned IRMAs for Kerala and Rajasthan. During the meeting Tamil Nadu, Maharashtra, Orissa, Madhya Pradesh and Pudduchery committed to send proposals in a couple of months for IRMA. On credit ratings, the meeting was informed that ratings were under finalization for 5 cities namely, Meerut, Srinagar, Hyderabad, Vishakhapatnam and Howarah. Draft ratings have been assigned for 44 cities already.
EK/SB/RS
(Release ID :38378)