Govt to tweak JNNURM, launch new plan

Written by Rajat Arora | New Delhi | Updated: May 29 2014, 10:33am hrs
UPA's flagship scheme, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), is all set for a relaunch by the Modi government with some key changes in design and a new name.

Minister for urban development Venkaiah Naidu on Wednesday said the government will soon launch a new mission in place of JNNURM.

According to ministry sources, the government is considering an outlay of Rs 1.5 lakh crore to be spent over a period of 10 years for renewing major urban centres. Theres also a plan to create 100 smart cities.

The minister will discuss all these plans with the Prime Minister after which the focus area would be decided and taken up on a priority basis, a senior government official told FE.

The proposed outlay is more than double the amount the government had sanctioned for the flagship scheme from 2005 to 2012 that focused on planned development in cities, sanctioning projects related to urban transport, water supply and sewage, among others.

We were considering allocation of Rs 1.75 lakh crore for the new urban renewal mission but finally the total outlay has been finalised at Rs 1.5 lakh crore, the official said.

The new mission won't be state-specific like its previous version where every state was given projects. This time the states would be given the grants for the project on first-come-first-served basis.

The government has also included development of waterways, including grants for procuring boats, setting up of rope-ways in hilly towns and procuring of buses for cities every year.

The mission meant to improve the quality of life and infrastructure in the cities was was launched in 2005 for a seven-year period to encourage cities to initiate steps for bringing phased improvements in their civic service levels.