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Jawaharlal Nehru National Urban Renewal Mission

By O.P. Agarwal, Urban Transport Advisor, World Bank. Presented at Transforming Transportation, January 26, 2012, Washington, D.C.

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Jawaharlal Nehru National Urban Renewal Mission

  1. 1. Jawaharlal Nehru National Urban Renewal Mission Transforming Transportation 26th January 2012 O.P. Agarwal
  2. 2. Urban Challenge ….. INDIAS URBAN TRANSITION Urban Population (million) Rural Population (million) Total Population (million) 1600 1408.93 1400 1291.30POPULATION IN MILLION 1230.48 1200 1164.02 1027.02 1000 846.30 811.77 833.88 843.77 833.25 800 741.67 684.30 628.70 548.20 524.80 575.68 600 439.10 447.53 396.60 400 352.25 285.35 217.60 200 109.10 159.50 0 1971 1981 1991 2001 2010 2015 2020 2030 YEAR
  3. 3. Urban systems and challenges  2nd largest urban system globally Urban • Towns (nos.) : 5,161  Urban population - 320 million (2011) • Million + cities : 35 system  Urban decadal GR : 25% - 30% • 100,000 + cities: 423  GDP contribution: 50% + Jawaharlal Nehru National Urban Renewal Mission ….. a break from the past and integrated approach
  4. 4. Jawaharlal Nehru National Urban Renewal MissionTwo track strategy for the urban sector development Track-I Track-II Sub Mission for Urban Infrastructure Urban Infra. Dev. Scheme for and Governance Small & Medium Towns Sub Mission for Basic Services Integrated Housing & Slum Dev. for the Urban Poor Program Coverage- 65 citiesCities/UAs with 4 million + population 07 Coverage- all other citiesCities with 1 million + population 28State Capitals and other Cities 30
  5. 5. Mission Objective and Coverage• Planned development• Integrated development of infrastructure• Linkages between asset creation & asset management PORBANBAR• Ensuring adequate investment of funds• Scaling up delivery of THIRUPATI services and emphasis on universal access• Renewal of inner city areas
  6. 6. 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.
  7. 7. Eligible projects•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
  8. 8. Funding Pattern Grant ULB/ Centre State Parastatals/Cities with 4 million plus population 35% 15% 50%Cities with million plus but less than 4 50% 20% 30%million populationCities in North Eastern States and J&K 90% 10% -Other Cities 80% 10% 10%Desalination Plant (for any city) 80% 10% 10%
  9. 9. Urban Sector Reforms State level Mandatory Classification ULB level of reforms State/ULB Optional levelAll reforms have to be completed within the Mission period,as per an agreed timeline – MoA . 9
  10. 10. 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.
  11. 11. 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. 12. Overall Status of Project Implementation Particulars TotalCost of Approved Projects (Rs. Billion) 734.58Central Assistance Committed (Rs. 383.97Billion)Central Assistance Released : FY 215.162005-2011 (Rs Billion)Approved Projects (Nos.) 1,296Completed Projects (Nos.) 23112Total Utilisation (Rs. Billion) 303.13
  13. 13. Progress in use of funds (Rs Bn)9080706050403020100 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Allocated Utilised 13
  14. 14. Sector breakup 7 2 20 8 63Water supply Urban Transport Sewarage Drainage Solid waste 14
  15. 15. Progress of Reforms- State LevelCategory Name of States Number West Bengal, Maharashtra, MadhyaAchieved all Pradesh, Uttar Pradesh, Delhi, Kerala 6 Andhra Pradesh, Assam, Bihar, Chhattisgarh,Performing well(above 50%) Gujarat, Haryana, Karnataka, Orissa, 11 Rajasthan, Tamil Nadu, Tripura, Arunachal Pradesh, Chandigarh, Goa, Manipur, M izoram, Nagaland, Sikkim, Jammu andSlow moving (below50%) Kashmir, Meghalaya, Punjab, Puduche 14 rry, Uttarakhand, Himachal Pradesh, Jharkhand
  16. 16. Progress of Reforms- ULB LevelCategory NumberAchieved all 16Performing well 23Slow moving 24 16
  17. 17. 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
  18. 18. Peer Experience and Reflective Learning (PEARL)An initiative for knowledge sharing among cities launchedObjective: To create manageable networks between JNNURM cities for cross learning and knowledge sharingProgress 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
  19. 19. Major Impact• Firmly established a focus on the development of cities• Strong focus on cities taking responsibility 19
  20. 20. 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
  21. 21. Thank You