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A rs 66,000-cr infrastructure intervention that needs more fuel - HTC Digitizer Replacement by e55he swrzsnb





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A rs 66,000-cr infrastructure intervention that needs more fuel - HTC Digitizer Replacement by
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A rs 66,000-cr infrastructure intervention that needs more fuel - HTC Digitizer Replacement


 
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The Mission comprises 2 sub-missions: * Urban Infrastructure and Governance (UIG) * Basic Services to the Urban Poor (BSUP) In addition to these there are two other components which wereadded later to accommodate more cities and towns. * Urban Infrastructure Development for Small and Medium TownsScheme (UIDSSMT) * Integrated Housing and Slum Development Programme (IHSDP). Now,let"s look at the sub-missions individually and also see whatthey have achieved in terms of targets set. ( BRICK BY BRICK ) Urban Infrastructure & Governance The UIG focuses on 65 mission cities in 31 states and UnionTerritories and has 532 sanctioned projects.

The estimated costsfor these projects are Rs 60,529 crore till completion (of theproject). The Government of India will provide ‘substantialassistance" while the rest will have to be financed either bythe state government or the urban local bodies (ULBs). Thefollowing table shows the break-up of contribution between centreand states under the UIG mission. It"s also interesting tonote the kind of projects that get a higher Central Governmentshare and those which do not. Sector-wise, the UIG has approved nearly 152 water supply projects,followed by sewage projects.

A further 4 projects pertaining topreservation of water bodies have been approved followed by five ondevelopment of heritage areas, parking lots and spaces onpublic-private partnerships (PPP) basis. State-wise, Maharashtra has the highest number of projects with 79followed by West Bengal with 58 projects worth Rs 11,504 crore andRs 5,604 crore, respectively, under UIG. Whereas, the states ofChattisgarh and Mizoram have only 1 project approved worth Rs303.64 crore and Rs 16.81crore, respectively. Focus on UIDSSMT The UIDSSMT focuses on 644 small and medium towns in the country.It has sanctioned 767 projects till March 11, 2011.

The estimatedcosts for these projects is Rs 12, 947.51crore and the AdditionalCentral Assistance (ACA) — or extra funds from the Centre— committed Rs 10, 450.33 crore. The funding for this project is shared between the centre and stategovernments on ratio of 80:10 while the balance 10 per cent israised by nodal or implementing agencies through financialinstitutions. The agencies may also exchange internal resources in order to raisefunds from financial institutions. However, the central governmentwill change its ratio of contribution 90:10 basis in some caseslike the north eastern states and the state of Jammu and Kashmir. The UIDSSMT has approved 418 projects pertaining to water supply,followed by 110 projects involving roads and flyovers.

Soilpreservation and parking projects are low on the list, with onlyone project each being approved. The highest number of projects approved by a state is 94 by thestate of Maharashtra followed by the state of Andhra Pradesh with84 worth Rs 2,699 crore and Rs 2,459 crore, respectively. BSUP and IHSDP Some 66 per cent of the BSUP funds are used in projects on slumdevelopment and other slum support infrastructure. The total moneyapproved for BSUP and IHSDP is Rs 16,356 crore and Rs 6,828 croreof which Rs 14,804 crore and Rs 7,311 crore have been approved,respectively. Maharashtra and West Bengal have been approved Rs3,320 crore and Rs 1,962 crore under the BSUP.

Under the IHSDP,Uttar Pradesh and Maharashtra have been approved funds worth Rs 846crore and Rs 1,433 crore, respectively. The mission suggest two types of reforms namely mandatory andoptional reforms in order to improve service delivery , access toservices, participation of citizens and accountability. The annual update on JNNURM report proposes mandatory reforms so asto ensure ‘internal earmarking of funds for services to theurban poor". The report also stresses on a shift to adouble-entry accounting system.

As it stands, nearly 44 cities ofthe 65 Mission cities have put aside funds for urban poor, while 55under UIG have moved to double entry accounting system. IndiaSpend has earlier reported on the delays in double entryaccounting system implementation in states like Maharashtra. Under the UIDSSMT, of the 644 small and medium towns in thecountry, 558 towns have agreed to internal earmarking of funds forservices to the urban poor. While 471 towns have agreed to initiateproperty tax reform which in turn will ensure 85 per cent coverage. The JNNURM has broadly pushed several optional reforms in returnfor funds invested.

For instance, ‘revision of buildingbye-laws such as to make rainwater harvesting mandatory" and‘encouraging public participation" has been adopted bynearly 60 and 55 of the 65 mission cities. Also, the‘revision of building bye-laws by making rainwater harvestingmandatory and ‘revision of building bye-laws by streamliningthe Approval process" has been implemented by nearly 579 and574 small and medium towns under the UIDSSMT. The Planning Commission"s mid-term review on JNNURM suggeststhis program needs to be extended keeping in mind the rapid growthof urbanisation. It adds the government could raise funds forfuture extensions through four untapped avenues namely; privatemoney, sale or lease of urban land, fair recovery user charges andthrough better management of property taxes. Sector-wise, most projects are focused on water supply and wastemanagement.

Another reason for the focus on basic services is thatit"s far easier to design and implement as compared toprogrammes related to urban transport (roads, parking lots) as theyinvolve issues pertaining to land acquisition. Whereas state-wise, the reasons for the failure of some toparticipate actively in mission is being attributed to theirinability to adapt to the conditions of reform and also a lack ofcapacity on the part of either the state or the ULB or both. Thelack of capacity refers to insufficient skilled professionals toimplement the reforms and the projects; also to develop plans,identify priority projects, raise funds and execute the projectsthemselves. While there are severe national deficits in areas like educationand healthcare, urban development as an issue will increasinglyconsume the minds of planners as the rate of urbanisationaccelerates.

The JNNURM way of combining funds with outcomes at thelocal level is a good start but it"s equally important toaddress the other end of the stick; sustained economic growth inrural India. Reprinted with special permission from IndiaSpend.com.

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