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The role of center and
State government for
funding
Urban infrastructure
project
Anupriya sharma
11507534
M.plan 2nd year
Case study of JnNURM
Amritsar BRTS project
JnNURM Scheme
• In 2005, the Ministry of Urban Development (MoUD), Government of India (GoI) launched the Jawaharlal Nehru
National Urban Renewal Mission (JnNURM).
• The aim of the mission was to encourage urban level reforms and fast track planned infrastructure development
of the 65 mission cities.
• The duration of the mission was from 2005-‘06 to 2011-‘12.
• However, since most of the projects have not been duly completed, the government has extended the mission
until March, 2014.
• water supply, sanitation, sewerage, solid waste management,
road network, urban transport and redevelopment of old
cities, etc.Urban Infrastructure and
Governance
• Integrating the development of slums through projects for
providing shelter, basic services and other related civic
amenities with a view to provide utilities to the urban poor.
Basic Services to the Urban Poor
Administered by the Ministry of Urban Development
Ministry of Urban Employment and Poverty Alleviation
ThemissioncomprisesoftwoSub-Missions
JnNURM Bus Funding Scheme
• On December 3, 2009 Goal announced that as a part of the second stimulus package, the funding for buses
for urban transport would be given under JnNURM as an incentive to cities and states across the country to
implement bus based public transport systems.
• The scheme guidelines were as follows :
Population of the mission
cities
Central Assistance State Assistance ULBs/ Parastatals/ Loans from
FIs
More than 4 million 35 per cent 15 per cent 50 per cent
1-4 million 50 per cent 20 per cent 30 per cent
Less than1 million 80 per cent 10 per cent 10 per cent
Jammu and Kashmir & North-
Eastern States
90 per cent 10 per cent -
• Under Central Financial Assistance, funds would be released as Additional Central Assistance (ACA) to the
State Governments or the State level Nodal Agency.
• The funds will be released in instalments.
Central Financial Assistance
The first instalment of
50 per cent will be
released upon the
sanction of the project
from the competent
authority.
The second instalment of 40 per cent
of ACA will be released upon the
receipt of Utilization Certificates (UC)
to the extent of 70 per cent of the
grants (Centre and State) and subject
to route permission from the
competent transport authority
The third instalment of 10 per
cent of ACA will be released upon
receipts of UCs to the extent of 70
per cent of the grants (Centre and
State) and subject to
commencement of satisfactory
service operations.
• Additional sales tax on petrol, additional registration fee on four-wheelers and two-wheelers, high
registration fee for personal vehicles running on diesel, annual renewal fee on driving license and
vehicle registration, etc. may be used to draw sources for the Dedicated Urban Transport Fund at
the State level.
• The funds so generated by the States can be used for new projects in urban transport.
State Urban Transport Fund
City Urban Transport Fund
• The cities can generate fund out of betterment levy on land in areas which benefit by investment
in urban transport projects; rationalization of parking-fee, property development tax,
advertisement revenue on transit corridors, etc.
• This fund at the city level can be used for establishing a fare contingency fund and to provide
ULBs' share for funding the urban transport projects.
Amritsar BRTS
(A Project sanctioned under JnNURM on January 21, 2014)
• Government of Punjab through Punjab Bus Metro Society (PBMS) has taken up the task of implementation
of Bus Rapid Transit System (BRTS) for the cities of Amritsar and Ludhiana.
• PBMS has engaged UMTC, A joint venture company of M/S IL&FS Ltd. and Ministry of Urban Development
(MoUD), GoI to carry out the design, securing approvals, tendering and project management consultancy for
complete implementation of BRTS in the cities of Amritsar and Ludhiana.
Proposed BRTS Corridors
A 31 km of BRT corridor has been proposed in city with median side double docking stations
1. Atari Road – ISBT to India Gate via Bhandari Bridge, GNDU, Chheharta (12 km);
2. Jalandhar Road – ISBT to MCA Gate via Tarawalan Pul (6 km); and
3. Verka Road – ISBT to Verka via Hussainpura Bridge, G. T. Road Bypass (13 km)
Total Project Cost is 495.54 Crores
Item Cost
1 Development Including Roads, Drainage, Street Lighting & Street Furniture 210.37
2 Foot Over Bridge 3.91
3 Bicycle Sharing Stand 0.16
4 Bus Shelter 17.17
5 Elevated BRT Corridor On Verka Road 127.67
6 Retrofitted Bus Stops At Existing Elevated Road 8.74
7 Rob At Verka Railway Crossing 40.82
8 Improvement Of Bhandari Bridge 35.43
9 Cost Of Depot 7.55
10 Cost Of ITS Infrastructure 28.07
11 Cost Of Provision For Pedestians Crossings Along BRTS Corridors 1.23
12 Contingencies @ 3% 14.43
GRAND TOTAL ALL ITEMS ( Rs. In Crores) 495.54
Sharing of Funds for Amritsar BRTS project is in proportion of 50:20:30. DPR was submitted to MOUD on
26th October 2013
Source of funding Sharing % Sharing amount
GOI 50% 247.77
GOP (share will be borne by PBMS) 20% 99.108
MC Amritsar (through PBMS) 30% 148.662
Total project cost 495.54
The total cost and funding pattern of the buses is given below :
Bus Types JNNURM /GOI State/PBMS Amritsar Municipal
Corporation (ULB)
Total (Rs Crores)
Standard AC Bus 900 mm
Diesel
50% 20% 30% 100%
Total in Rs. Crores 41.85 16.74 25.11 83.70
The 93 buses for BRT have been also proposed to procure under JNNURM Bus funding scheme for which DPR
has been approved by MOUD in the CSMC meet on 20th Feb 2014.
(Population – 2490656 (1-4 million))
Role of centre and state in finance of urban development project

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Role of centre and state in finance of urban development project

  • 1. The role of center and State government for funding Urban infrastructure project Anupriya sharma 11507534 M.plan 2nd year Case study of JnNURM Amritsar BRTS project
  • 2. JnNURM Scheme • In 2005, the Ministry of Urban Development (MoUD), Government of India (GoI) launched the Jawaharlal Nehru National Urban Renewal Mission (JnNURM). • The aim of the mission was to encourage urban level reforms and fast track planned infrastructure development of the 65 mission cities. • The duration of the mission was from 2005-‘06 to 2011-‘12. • However, since most of the projects have not been duly completed, the government has extended the mission until March, 2014.
  • 3. • water supply, sanitation, sewerage, solid waste management, road network, urban transport and redevelopment of old cities, etc.Urban Infrastructure and Governance • Integrating the development of slums through projects for providing shelter, basic services and other related civic amenities with a view to provide utilities to the urban poor. Basic Services to the Urban Poor Administered by the Ministry of Urban Development Ministry of Urban Employment and Poverty Alleviation ThemissioncomprisesoftwoSub-Missions
  • 4. JnNURM Bus Funding Scheme • On December 3, 2009 Goal announced that as a part of the second stimulus package, the funding for buses for urban transport would be given under JnNURM as an incentive to cities and states across the country to implement bus based public transport systems. • The scheme guidelines were as follows : Population of the mission cities Central Assistance State Assistance ULBs/ Parastatals/ Loans from FIs More than 4 million 35 per cent 15 per cent 50 per cent 1-4 million 50 per cent 20 per cent 30 per cent Less than1 million 80 per cent 10 per cent 10 per cent Jammu and Kashmir & North- Eastern States 90 per cent 10 per cent -
  • 5. • Under Central Financial Assistance, funds would be released as Additional Central Assistance (ACA) to the State Governments or the State level Nodal Agency. • The funds will be released in instalments. Central Financial Assistance The first instalment of 50 per cent will be released upon the sanction of the project from the competent authority. The second instalment of 40 per cent of ACA will be released upon the receipt of Utilization Certificates (UC) to the extent of 70 per cent of the grants (Centre and State) and subject to route permission from the competent transport authority The third instalment of 10 per cent of ACA will be released upon receipts of UCs to the extent of 70 per cent of the grants (Centre and State) and subject to commencement of satisfactory service operations.
  • 6. • Additional sales tax on petrol, additional registration fee on four-wheelers and two-wheelers, high registration fee for personal vehicles running on diesel, annual renewal fee on driving license and vehicle registration, etc. may be used to draw sources for the Dedicated Urban Transport Fund at the State level. • The funds so generated by the States can be used for new projects in urban transport. State Urban Transport Fund City Urban Transport Fund • The cities can generate fund out of betterment levy on land in areas which benefit by investment in urban transport projects; rationalization of parking-fee, property development tax, advertisement revenue on transit corridors, etc. • This fund at the city level can be used for establishing a fare contingency fund and to provide ULBs' share for funding the urban transport projects.
  • 7. Amritsar BRTS (A Project sanctioned under JnNURM on January 21, 2014) • Government of Punjab through Punjab Bus Metro Society (PBMS) has taken up the task of implementation of Bus Rapid Transit System (BRTS) for the cities of Amritsar and Ludhiana. • PBMS has engaged UMTC, A joint venture company of M/S IL&FS Ltd. and Ministry of Urban Development (MoUD), GoI to carry out the design, securing approvals, tendering and project management consultancy for complete implementation of BRTS in the cities of Amritsar and Ludhiana.
  • 8. Proposed BRTS Corridors A 31 km of BRT corridor has been proposed in city with median side double docking stations 1. Atari Road – ISBT to India Gate via Bhandari Bridge, GNDU, Chheharta (12 km); 2. Jalandhar Road – ISBT to MCA Gate via Tarawalan Pul (6 km); and 3. Verka Road – ISBT to Verka via Hussainpura Bridge, G. T. Road Bypass (13 km)
  • 9. Total Project Cost is 495.54 Crores Item Cost 1 Development Including Roads, Drainage, Street Lighting & Street Furniture 210.37 2 Foot Over Bridge 3.91 3 Bicycle Sharing Stand 0.16 4 Bus Shelter 17.17 5 Elevated BRT Corridor On Verka Road 127.67 6 Retrofitted Bus Stops At Existing Elevated Road 8.74 7 Rob At Verka Railway Crossing 40.82 8 Improvement Of Bhandari Bridge 35.43 9 Cost Of Depot 7.55 10 Cost Of ITS Infrastructure 28.07 11 Cost Of Provision For Pedestians Crossings Along BRTS Corridors 1.23 12 Contingencies @ 3% 14.43 GRAND TOTAL ALL ITEMS ( Rs. In Crores) 495.54
  • 10. Sharing of Funds for Amritsar BRTS project is in proportion of 50:20:30. DPR was submitted to MOUD on 26th October 2013 Source of funding Sharing % Sharing amount GOI 50% 247.77 GOP (share will be borne by PBMS) 20% 99.108 MC Amritsar (through PBMS) 30% 148.662 Total project cost 495.54 The total cost and funding pattern of the buses is given below : Bus Types JNNURM /GOI State/PBMS Amritsar Municipal Corporation (ULB) Total (Rs Crores) Standard AC Bus 900 mm Diesel 50% 20% 30% 100% Total in Rs. Crores 41.85 16.74 25.11 83.70 The 93 buses for BRT have been also proposed to procure under JNNURM Bus funding scheme for which DPR has been approved by MOUD in the CSMC meet on 20th Feb 2014. (Population – 2490656 (1-4 million))