core sector communique

Expenditure on Urban Infrastructure

The Minister of State for Urban Development, Shri Saugata Roy informed the Lok Sabha today that In order to provide reforms-linked Central Assistance for development of urban infrastructure, the 7 year Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched on 3rd Dec., 2005. Under the Urban Infrastructure and Governance (UIG) component of the Mission, Additional Central Assistance is provided inter-alia for capital expenditure for building urban infrastructure in 65 identified Mission cities, and under a similar subcomponent of Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), similar ACA is provided inter alia for capital expenditure for building urban infrastructure in all other towns and cities. The Mission objective is integrated development of infrastructural services in the cities and towns, securing effective linkages between asset creation and asset management so that the infrastructural services created in the cities are not only maintained efficiently but also become self-sustaining over time. For assistance under the Mission, the State Governments are required to prepare detailed project reports and commitment to meet their share/Urban Local Body share of the capital expenditure.

Other than JNNURM, there are schemes like 10% lumpsum assistance in the north-eastern states, North Eastern Region Urban Development Programme (NERUDP), Urban Infrastructure Development Scheme in Satellite Towns (UIDSST) around seven mega cities, which are also schemes that facilitate increase in capital expenditure on urban infrastructure like drinking water supply, sewerage and solid waste management.

He further informed that delivery of urban services take place at the State/Urban Local Body level and levy of user charges is also in the competence and the domain of the State/Urban Local Bodies.