JNNURM may get Rs 20k-cr boost ahead of elections

NEW DELHI: Ahead of general elections, the government may enhance fund allocations for two-flagship programmes; the Jawaharlal Nehru Urban Renewal Mission (JNNURM) and the National Rural Employment Guarantee Scheme (NREGS).

���The finance ministry is considering a proposal to provide an additional Rs 20,000 crore to JNNURM in the 11th Plan period. The quantum of the additional fund for NREGS is yet to be firmed up,��� a finance ministry source said. It is likely that an announcement to this effect would be made in December, he added. Current allocation for NREGS in the 11th Plan is

Rs 100,000 crore. The Plan allocates Rs 54,000 crore for JNNURM. The nodal ministries for the two programmes have been pressing for more funds.

The two ministries involved with urbanisation ��� ministry of housing & urban poverty alleviation and ministry of urban development ��� have made several representations to the prime minister, the finance ministry and the Planning Commission for increasing the Central assistance for JNNURM, the official said.

In the Budget 2008-2009, an allocation of Rs 6,866 crore for JNNURM has been made, compared to Rs 5,482 in the previous year. JNNURM was launched in 2005-06 to assist and incentivise cities for improving urban infrastructure in a sustainable manner. Allocation for NREGS in the current budget was Rs 16,000 crore.

Main components of JNNURM are basic services to the urban poor (BSUP) and integrated housing & slum development (IHSDP). Budgetary provisioning for the flagship programme has been enhanced in past years as more and more cities are interested in improving their infrastructure.

The proposal of the finance ministry to increase allocations for the two programmes are based on Prime Minister Manmohan Singh���s emphasis on rural development and urban infrastructure. He had earlier said that the government would invest more in infrastructure and speed up spending in social sector for an inclusive growth.