Plan panel may allocate more for JNNURM

NEW DELHI: The Planning Commission could consider giving more funds for the UPA’s flagship urban development programme Jawahar Lal Nehru Urban Renewal Mission if the scheme is able to improve utilisation.

The Centre has decided not to give any more money to JNNURM after finding that only one-third of the allocation made for it this fiscal was utilised in the first 10 months.

“The figures don’t show a very good situation. The problem is that the scheme is linked to urban reforms and reforms have not taken off in the state governments,” said Planning Commission secretary Sudha Pillai.

It is not that the urban development ministry cannot expect more funds for the scheme, but they should ensure that they are able to utilise the funds that they have got by working harder with states, the secretary added. “They can always come back for more funds, if the expenditure picks up,” Ms Pillai said.

The total allocation in Union Budget 2009-10 for the mission was Rs 12,685 crore, but the revised estimates have been pegged at Rs 8,483 crore because of poor performance. Of the Rs 52,736 crore sanctioned for the JNNURM in the 11th Plan (2007-12), less than half the amount has been utilised so far.

Certain segments within the scheme, like the urban infrastructure development scheme for small and medium towns (UIDSSMT), have done particularly badly. “The scheme’s Delhi-centric approach has to go,” Ms Pillai said.

The urban development ministry had sought an additional Rs 50,000 crore for the scheme from the Planning Commission. It is now in talks with the World Bank for a $1-billion funding for the mission.