Category Archives: Jawaharlal Nehru National Urban Renewal Mission

Urban Development and Housing in Union Budget 2010-11

Urban Development and Housing in Union Budget 2010-11

While presenting the Union Budget 20010-11, the Finance Minister said that “Swarna Jayanti Shahari Rozgar Yojana” designed to provide employment opportunities in urban areas has been strengthened with focus on community participation, skill development and self employment support structures. For the Year 2010-11, the allocation for urban development increased by 75 per cent from Rs. 3,060 crore to Rs. 5,400 crore. In addition the allocation for Housing and Urban Poverty alleviation has also been raised form Rs. 850 crore to Rs. 1,000 crore in 2010-11.

In last year’s budget, a Scheme of one per cent interest subvention on housing loans was introduced, where home buyers get one per cent interest subsidy for banking loans up to Rs 10 lakh, provided the cost of house does not exceed Rs 20 lakh. This Scheme has been extended up to March 31, 2011 and a sum of Rs. 700 crore has been provided under this scheme for 2010-11 period.

The Rajiv Awas Yojana (RAY) for slum dwellers and urban poor was announced last year to extend support to States that are willing to provide property rights to slum dwellers. Allocation to this scheme is Rs. 1,270 crore for 2010-11 as compared to Rs. 150 crore last year. This marks an increase of over 700 per cent. The government efforts in the implementation of RAY would be to encourage the States to create a slum free India at the earliest.


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Mysore, Feb. 17 (KCU&KK)-Dy. Commissioner and JNNURM Special Officer P. Manivannan today came down heavily on JUSCO officials for their alleged incompatibility and inaccessibility to the citizens.

Presiding over the JNNURM progress review meeting here, Manivannan expressed his displeasure over the alleged non-chalant behaviour of JUSCO officials regarding redressal of water woes of citizens.

ACICM Convenor M. Lakshmana, Mysore Kannada Vedike members Ravi and Balakrishna, who were present at the meeting, pointed out that water distribution was better in city before handing over the responsibility to JUSCO. “Its officials are inaccessible and water complaints have been pouring in from all wards. No meeting is held with citizens,” they reiterated.

The visually upset DC instructed JUSCO rep Purohit to convene a meeting on Feb. 23 at 11 am inviting officers of MCC, JUSCO and VVWW to sort out the issues. “With mounting complaints, it will be reviewed whether continuance of deal with JUSCO would be worthwhile.

Mayor Purushotham announced that JUSCO would be entrusted only pipeline networking job with VVWW retaining operation and maintenance.

Slum clearance: When Manivannan sought the progress of finalising the list of beneficiaries for rehabilitating slum-dwellers, the Assistant Engineer of Slum Clearance Board Tejasvi said that about 2,700 beneficiaries have been enlisted for rehabilitation process. Not convinced with her contention, the DC instructed her to announce the list in all newspapers and seek objections before finalising the allotment. Dy. Mayor Sharadamma, JNNURM SE Suresh Babu, MCC Commissioner K.S. Raikar, MUDA Commissioner P.C. Jayanna and other officers were present.

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JNNURM is such a big failure does not give quarterly report to PMs DMU

Ahead of Budget, govt schemes on slippery ground
Shishir Gupta Posted online: Monday , Jan 25, 2010 at 0340 hrs
New Delhi : With the Budget 2010-11 preparations in full swing, there is a growing realisation within the Manmohan Singh government that its flagship programmes, including the much-touted Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Sarva Shiksha Abhiyan (SSA) are performing much below par with the ministries concerned in some cases not being able to spend half of their Plan allocation.

Government sources told The Indian Express that the Ministry of Urban Development has spent only 47.27 per cent (Rs 24,922.77 crore) of the 11th Plan allocation of Rs 52,735.83 crore for the JNNURM. The total allocation in 2009-10 Budget for the urban renewal mission was Rs 12,685.18 crore, but the revised estimates are now pegged at only Rs 8,483.35 crore — a shortfall of Rs 4,201.83 crore. The worst hit is the basic services for urban poor (BSUP) under the JNNURM, where only 34.88 per cent (Rs 4,430.37 crore) of the total Rs 12,700 crore 11th Plan outlay has been spent. The fiscal situation in other key programmes is no different.

The school education and literacy scheme, which includes the SSA, is also being revised downward by the Finance Ministry as the HRD Ministry has not been able to spend Rs 4,071 crore of the total allocation of Rs 26,800 crore in the last Budget. The same is the fate of rural health mission under the Ministry of Health and Family Welfare with the department concerned not being able to spend Rs 2,000 crore out of the budget estimates of Rs 18,380 crore in the last fiscal.

However, the Women and Child Development Department has shown progress particularly in the Integrated Child Development Services (ICDS) programme this fiscal. Its budget is being revised upward by Rs 1,200 crore as the ministry has been able to spend all of its Rs 7,350 crore allocation in the 2009-10 budget.

But the same cannot be said about the Ministry of Power whose revised estimates are down by Rs 2,400 crore and the scheme that has taken the major hit is the Rajiv Gandhi Grameen Vidyutikaran Yojana. Despite all its talk about reforms, the Power Ministry could not spend its Rs 9,230 crore allocation in the last Budget.

In fact, a large number of schemes designed for the upliftment of the masses have taken a hit. For instance, the Department of Small and Medium Enterprises could not even spend a meager allocation of Rs 1,794 crore with its revised estimates down by Rs 277 crore.

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JNNURM expansion plan does not enthuse local bodies

JNNURM expansion plan does not enthuse local bodies
6 Jul 2009, 0148 hrs IST, TNN

VIJAYAWADA: Union urban development minister S Jaipal Reddy’s decision to increase the coverage of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme has not enthused the local bodies in the state in spite of the fact that the Centre will generously fund the developmental programmes in the towns.

For, the fund-starving state government’s decision to convert its share into loan has dampened the hopes of growing towns to get listed under the JNNURM. The state government’s move has already created tremors in Vijayawada and Visakhapatnam local bodies which were part of JNNURM phase I programme as it led to a huge financial burden on these civic bodies.

The government had not only slashed its share of grant from 20 to 2 per cent but also financed the 18 per cent as loan with huge rate of interest. As per the original scheme, the Centre would extend 50 per cent of the total fund as complete grant and directed the state government and urban local body to share the remaining 50 per cent.

With a view to cornering maximum funds under the scheme, the state government too had agreed to give 20 per cent as grant and left the urban bodies to take the remaining 30 per cent load. “We thought that the scheme will provide a major relief even if we needed to pool up 30 per cent funds from our sources. But, backtracking by the state government will hurt the local bodies,” observed senior Congress corporator Anne Prasanna.

Stung by the development, Vijayawada MP Lagadapati Rajagopal has promised to take a delegation from the civic body to the chief minister to discuss the issue as the Vijayawada Municipal Corporation (VMC) has to additionally garner funds to the tune of Rs 600 crore to complete the schemes. Initially, many civic bodies of big towns like Guntur, Kurnool, Warangal and Rajahmundry cried foul when only Hyderabad, Visakhapatnam and Vijayawada from the state were selected for the programme taking the 10 lakh population as the main criteria.

The public representatives in Guntur have even criticised the way the neighbouring Vijayawada bagged the programme by including Mangalagiri town located in the Guntur district to inflate its population to 10 lakh. Curiously, these civic bodies responded cautiously when Jaipal Reddy brought an amendment to population criteria by reducing it to five lakh to enable more towns and cities to take advantage of the programme as part of his 100-day action plan.

According to sources, several corporations, including Kadapa, Nizamabad, Elur, Kakinada and Nellore, which have population between 3 and 4 lakhs, too could send their proposals by extending the programmes to more suburban areas to make the population cross five lakh. “We wanted to study the guidelines and also the implementation before going for funding,” said Guntur mayor Rayapati Saimohan Krishna.

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WB $500 mn for non-JNNURM city

World Bank may lend $500 mn for non-JNNURM city utilities
11 Apr 2009, 0052 hrs IST, Rajat Guha, ET Bureau
NEW DELHI: The government plans to raise $500 million from the World Bank to finance urban facilities in 15 small cities that are not covered

under the Rs 50,000-crore Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

The funds will be used to finance facilities such as public transport, water management and sanitation projects.

“The government is talking to the World Bank for a loan. The loan will, in turn, be advanced to city development authorities after appraising their detailed project reports for infrastructure development,” said an urban development ministry official, requesting anonymity.

Long-term loans advanced by multilateral financial institutions such as the World Bank and the Asian Development Bank (ADB) are usually given at a low rates of interest. The ministry would examine the total transaction cost involved and then extend loans to state governments.

All states have been asked to set up dedicated authorities to focus on infrastructure needs in cities. The government encourages private participation in these projects, which can avail funding on the basis of their credit rating.

Apart from facilitating fund disbursal to states, eligible urban local bodies (ULB) will soon be permitted to access credit directly from multilateral lending agencies such as World Bank and ADB, as opposed to the current practice of funds being routed through the central government.

The ULBs will then be able to seek funding from multilateral lending agencies as the government has already launched an initiative to rate their infrastructure projects.

The urban development ministry is of the view that central allocation of Rs 50,000 crore through JNNURM alone would not be sufficient to meet the requirements of local bodies.

As per the estimates prepared under JNNURM, urban infrastructure investment requirement is Rs 3,35,000 crore for the 63 mission cities alone. Of this, an investment of Rs 57,000 crore is envisaged by 43 cities in the sectors of water supply, sewerage and drainage.

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They co-exist with rodents here in Bengaluru

They co-exist with rodents here

Afshan Yasmeen

Displaced slum-dwellers are uncertain about what to do next

Troubled times: A resident of Kalyani slum at her dwelling before they were moved out.

Bangalore: Gangabhavani, a resident of Kalyani slum in Sampangiramnagar, is shattered after her brother H. Srinivas (25) died in December. “He was suffering from typhoid. Though he was recovering, his condition deteriorated after he was bitten by these rats,” she said, pointing to the rodents moving around in her house.

Four other residents have met the same fate as Srinivas, following complications after being bitten by rodents in the last six months. Ms. Gangabhavani’s family is one of the 32 families residing in the makeshift tin sheds put up on a drain by the Bruhat Bangalore Mahanagara Palike (BBMP).

The palike shifted them from their original dwellings in the Kalyani slum to the makeshift sheds on the drain to facilitate the construction of a pilot project on “Basic Services for Urban Poor” (BSUP) taken up under the Jawarharlal Nehru National Urban Renewal Mission (JNNURM). The promise was that they would be allotted a 270-sq ft single bedroom-living room-kitchen flat with an attached bathroom and toilet in a three-storeyed building in eight months. But 27 months later, their living condition has only worsened. This despite the fact that the building is ready for occupation.

As the sheds are on a drain, the rodents scurry into the sheds all the time. When this reporter visited the slum on Wednesday, she found rodents moving around freely in the sheds, unmindful of people around them.

“We have to hold the plates in our hands to eat, otherwise the rats will jump into them even as we are eating,” Chakravarthy, another resident said.

“They have damaged our clothes, buckets and even cooker handles. We cannot store the food for a second meal. These rats will even gnaw through the thick plastic buckets to eat our food when we close the vessels with buckets. We are fed up with life,” said R. Rani, who said her husband K. Kumar also died recently following rat-bite.

The rain and the resultant mosquitoes have added to their misery. “We spent the whole of last night under the shelter of shop projections on the adjoining road as the temporary roofs of the sheds are not good enough to protect us from the rain,” Muniswamy B., another resident, said.

The slum is also full of mosquitoes and most residents are suffering from fever and joints pain.
BBMP view

BBMP Additional Commissioner (East) S. Puttaswamy told The Hindu that the slum-dwellers could occupy the new houses only after they pay the beneficiary contribution of 10 per cent of the project cost.

“Each family has to pay Rs. 31,621, which is a must as per the agreement between the palike and the residents. Though six of them have made the payment, the building can be occupied only after all the 32 families pay the amount,” he said.

“We are aware of the problems the residents are facing. We are in talks with their leaders, who are trying to arrange for bank loans. We will distribute the possession certificates soon after they make the payment,” he added.

But the residents said they are not hopeful.

“We are poor daily wage earners working as labourers and masons. How can we arrange such a huge amount?” Mr. Muniswamy asked.

Date:12/06/2009 URL: Back

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Maharashtra JNNURM: So little to show for so much

Maharashtra: So little to show for so much

One step forward, two steps back. That best describes Maharashtra’s progress on development projects that it took on with funds from a flagship nation-building scheme of the Centre.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) basically supplies additional funds to those raised by state governments and urban local bodies for specific projects. The UPA government launched it in December 2005, as a flagship scheme aimed at building 63 mission cities across India.

While 21 states and Union Territories out of 31 listed have had less than 10 JNNURM projects each sanctioned so far, Maharashtra got a whopping 77 projects sanctioned, which is 16 per cent of the 463 sanctioned so far. Of those 77, it has finished a grand total of one: a subway on a by-pass at Baner junction near Pune.

Out of total Central funds released so far, 27 per cent have been to Maharashtra – Rs 2,214 crore out of Rs 8,253 crore. But the state’s contribution to finished projects – 1 out of 32 across India – is just over 3 per cent.

Urban Development Secretary M Ramachandran told HT: “There may be a good many of these projects nearing completion. So one should not jump to conclusions. We on our part regularly alert all states that they should move swiftly.”

Gujarat is a welcome contrast, accounting for the highest number of finished projects: 13, which is 40 per cent of completed projects across India. This despite getting only 11 per cent – Rs 890 crore – of the total funds.

Andhra Pradesh did reasonably well, completing eight of 48 projects sanctioned. Tamil Nadu completed 3 of 51 sanctioned. Madhya Pradesh completed 3 of 20 sanctioned. Project sanctioning has happened at different times over the last three-and-a-half years – while some ongoing projects are at an advanced stage, some have just begun.

JNNURM also monitors progress on these projects through quarterly review meetings where state and municipal officials present reports.

“We rely on their reports and promises, since the state and municipal bodies too have stakes in the completion of these projects,” said an official on condition of anonymity since he is not authorised to speak to the media.

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