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Govt plans Rs 1 lakh-cr urban renewal mission

In a bid to accelerate growth in urban infrastructure, government is considering to launch a new version of its infrastructural initiative Jawaharlal Nehru National Urban Renewal Mission.

, ET Bureau|
Jun 29, 2009, 01.57 AM IST
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NEW DELHI: In a bid to accelerate growth in urban infrastructure, the government is considering to launch a new version of its infrastructural initiative Jawaharlal Nehru National Urban Renewal Mission (JNNURM) with an allocation amounting to Rs 1,00,000 crore, twice the amount meant for JNNURM phase-I.

The proposed JNNURM-II may run over a period of seven years in order to cater to cities with a population of five lakhs, an official in the urban development ministry said.

The proposal on the Jawaharlal Nehru National Urban Renewal Mission-II has already been forwarded by the urban development ministry to the finance ministry for consideration in 2009-10 Union Budget. If accepted, the new scheme might replace the existing one that is scheduled to lapse in 2012. The shortage of funds and more investment requirement to reach the targeted levels of infrastructural growth are seen as primary reasons for the renewed launch of the scheme.

"We have proposed to advance the launch of JNNRUM-II to current year as the existing schemes' seven-year allocation in respect to more states and cities is already exhausted. More investment is required to carry forward the targeted infrastructure growth under the scheme. Fresh allocation will help in running this scheme," the official said on the condition of anonymity.

Under the new proposed scheme, the ministry of urban development may include a new funding pattern with less central assistance. The projects will have a tighter monitoring and central assistance will depend on financial closure of projects.

Water supply, underground wastage, solid waste management and storm water drains would be proposed in new Jawaharlal Nehru National Urban Renewal Mission scheme under the public-private partnership (PPP) model with the government having the controlling stake.

Under phase-I of the initiative, 63 mission cities were funded. The ministry has sanctioned 463 projects worth Rs 49,743.46 crore and central assistance of Rs 8,253 crore had been released to shape up the urban infrastructure development programme.
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