New urban development mission to replace JNNURM

NEW DELHI: The Narendra Modi government is preparing to replace one of its predecessor UPA’s flagship programmes soon after the prime minister returns from his overseas trip. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) will make way for a new mission aimed at upgrading infrastructure in cities.

The new mission has received the nod from the expenditure finance committee (EFC) and the Cabinet note has been circulated, officials told ET, adding that the states will have to rely mainly on their resources under the proposed model since the Centre has kept its funding commitment minimal.

"The new urban development mission will work on the model of devolution of powers to the states, which has been the Modi government’s mantra," a senior official said, requesting not to be named. "It will emphasise on partnership with the states, with the nodal central ministry ideating and planning," he added. The mission, involving projects related to sanitation, drinking water, urban transportation and sewerage, will be separate from the Centre’s other urban development initiatives such as Swachh Bharat Mission, Smart City scheme and programme to develop 500 cities.

The Centre will follow a strict incentive-based approach and release funds under the new mission only if the states meet the targets set for the projects. The states will also have to undertake certain reforms in order to be eligible for projects under this mission, another official said. Although the Modi government had earlier thought of renaming JNNURM after veteran BJP leader and former Prime Minister Atal Bihari Vajpayee, the urban development ministry, which is the nodal ministry for the urban renewal mission, has not proposed any name for the new mission.

"This decision is a political call. We have not proposed any name. This decision will be taken in the Cabinet when it discusses the new mission," said a senior ministry official.

A very big question before the mission is whether to fund the incomplete projects under JNNURM. Of the 1,406 projects sanctioned between 2007 and 2012 under JNNURM, 693 are incomplete. The programme had started floundering towards the end of the Congress-led UPA’s term, with land acquisition, non-availability of contractors and re-tendering issues plaguing the projects. If the Modi government were to fund all the projects till completion, it will have to fork out a whopping `7,871 cr. However, the government is not prepared for such commitment, officials said, adding that a formula has been worked out as per which the Centre is likely to fund those projects which have achieved at least threefourths physical progress.

"The government was earlier thinking of completely withdrawing from JNNURM projects. But the states gave us representations during interactions, urging that we could not ignore these ongoing projects. So the formula has been worked out," said the official.