Jawaharlal Nehru National Urban
      Renewal Mission


     Transforming Transportation
         26th January 2012


           O.P. Agarwal
Urban Challenge …..
                                                INDIA'S URBAN TRANSITION
                                 Urban Population (million)    Rural Population (million)      Total Population (million)

                        1600
                                                                                                                  1408.93
                        1400                                                                           1291.30
POPULATION IN MILLION




                                                                                            1230.48
                        1200                                                 1164.02
                                                                 1027.02
                        1000
                                                      846.30               811.77      833.88         843.77    833.25
                        800                                    741.67
                                           684.30
                                                    628.70
                                 548.20 524.80                                                                 575.68
                        600
                               439.10                                                              447.53
                                                                                    396.60
                        400                                             352.25
                                                              285.35
                                                 217.60
                        200 109.10     159.50


                          0
                                1971      1981       1991        2001        2010           2015       2020       2030
                                                                       YEAR
Urban systems and challenges


               2nd largest urban system globally
 Urban                                                  • Towns (nos.) :       5,161
               Urban population - 320 million (2011)
                                                        • Million + cities :      35
 system        Urban decadal GR : 25% - 30%
                                                        • 100,000 + cities:      423
               GDP contribution:     50% +




    Jawaharlal Nehru National Urban Renewal Mission
     ….. a break from the past and integrated approach
Jawaharlal Nehru National Urban Renewal Mission
Two track strategy for the urban sector development
              Track-I                                   Track-II
  Sub Mission for Urban Infrastructure          Urban Infra. Dev. Scheme for
           and Governance                         Small & Medium Towns

    Sub Mission for Basic Services             Integrated Housing & Slum Dev.
         for the Urban Poor                                Program

       Coverage- 65 cities
Cities/UAs with 4 million + population   07   Coverage- all other cities
Cities with 1 million + population       28
State Capitals and other Cities          30
Mission Objective and Coverage

• Planned development
• Integrated development of
  infrastructure
• Linkages between asset
  creation & asset
  management
                                PORBANBAR


• Ensuring adequate
  investment of funds
• Scaling up delivery of                    THIRUPATI




  services and emphasis on
  universal access
• Renewal of inner city areas
Salient Features

•   Cities are required to prepare City Development Plans
    (Vision Documents) as participatory frameworks for
       Infrastructure planning and prioritization, and
       Framing urban reform agendas




•   Funding support for infrastructure is linked to reforms
       Cities and State need to enter into Memorandum of Agreement with
        Government of India to implement urban reforms in order to access
        JNNURM funds


•   Urban Infrastructure Projects are prepared and executed
    by the Cities
       Cities are provided funding assistance for implementing urban projects
        based on Detailed Project Report.
Eligible projects


•Urban Renewal
• Water Supply
• Sewerage & Sanitation
• Solid Waste Management
• Storm Water Drains
• Urban Transport
• Parking spaces (through PPP)
• Development of heritage areas
• Preservation of water bodies
• Prevention & rehabilitation of soil erosion
Funding Pattern



                                                    Grant              ULB/
                                           Centre           State   Parastatals/
Cities with 4 million plus population      35%              15%        50%
Cities with million plus but less than 4
                                           50%              20%        30%
million population
Cities in North Eastern States and J&K     90%              10%          -
Other Cities                               80%              10%        10%
Desalination Plant (for any city)          80%              10%        10%
Urban Sector Reforms

                                         State level
                       Mandatory

    Classification                       ULB level
     of reforms
                                         State/ULB
                        Optional
                                            level




All reforms have to be completed within the Mission period,
as per an agreed timeline – MoA .

                                                        9
Reforms (1)
•   Adoption of modern accrual-based double entry system
    of accounting
•   Introduction of a system of e-governance using IT
    applications
•   Reform of property tax so that it becomes a major source
    of revenue for the city
•   Arrangements for its effective implementation so that
    collection efficiency reaches at least 85 per cent within
    next seven years.
•   Levy of reasonable user charges with the objective that
    the full cost of O&M or recurring cost is collected within
    the next seven years
•   Internal earmarking in the budgets for basic services to
    the urban poor.
Reforms (2)
•   Revision of bye-laws to streamline the approval process
    for buildings, etc.
•   Simplification of legal and procedural frameworks for
    conversion of agricultural land to non-agricultural
    purposes
•   Introduction of Property Title Certification System
•   Earmarking at least 20-25% of developed land in all
    housing projects for EWS and LIG category
•   Introduction of computerized process for registration of
    land and property
•   Revision of byelaws to make rain-water harvesting
    mandatory in all buildings and Byelaws for reuse of
    recycled water
•   Encouraging PPP
Overall Status of Project Implementation

               Particulars                  Total
Cost of Approved Projects (Rs. Billion)         734.58

Central Assistance Committed (Rs.
                                                383.97
Billion)

Central Assistance Released : FY
                                                215.16
2005-2011 (Rs Billion)

Approved Projects (Nos.)                            1,296

Completed Projects (Nos.)                            231
12
Total Utilisation (Rs. Billion)                 303.13
Progress in use of funds (Rs Bn)
90
80
70
60
50
40
30
20
10
0
     2005-06   2006-07   2007-08     2008-09    2009-10   2010-11
                         Allocated   Utilised

                                13
Sector breakup

                           7     2



                  20




                  8                             63




Water supply   Urban Transport       Sewarage   Drainage   Solid waste

                                     14
Progress of Reforms- State Level


Category             Name of States                          Number
                     West Bengal, Maharashtra, Madhya
Achieved all
                     Pradesh, Uttar Pradesh, Delhi, Kerala   6

                     Andhra
                     Pradesh, Assam, Bihar, Chhattisgarh,
Performing well
(above 50%)
                     Gujarat, Haryana, Karnataka, Orissa,    11
                     Rajasthan, Tamil Nadu, Tripura,


                     Arunachal
                     Pradesh, Chandigarh, Goa, Manipur, M
                     izoram, Nagaland, Sikkim, Jammu and
Slow moving (below
50%)
                     Kashmir, Meghalaya, Punjab, Puduche     14
                     rry,       Uttarakhand,     Himachal
                     Pradesh, Jharkhand
Progress of Reforms- ULB Level


Category                  Number
Achieved all              16


Performing well           23



Slow moving               24

                                   16
Key Issues in Implementation

   Lack of capacity of the ULBs :
     Dealing with delivery of specialized services such as fire services
       and planning and Urban forestry - many states have not transferred
       these functions
   Lack of Political support in some areas :
     Implementation of urban planning, rent control and Community
       participation law require considerable political support
     Political consensus is also required for levy of property tax, doing
       away with exemptions, periodic surveys and improving
       administration of ULBs to enhance coverage and collection.
   Resistance from states/ULBs to implement reforms:
     Resistance on account of loss of revenue due to stamp duty
       reduction
     Resistance to levy of user charges for solid waste as in many states
       it is recovered under property tax ;
     People are reluctant to pay additional user charge as it is
       considered as an obligatory responsibility of the ULB hence
Peer Experience and Reflective Learning
 (PEARL)

An initiative for knowledge sharing among cities launched


Objective: To create manageable networks between JNNURM
  cities for cross learning and knowledge sharing

Progress so far: 5 groups have been formed -
  A: Mega Cities with global character in socio-economic
  profile,
  B: Major industrial cities,
  C: Mixed economy cities
  D: Cultural and religious cities,
  E: Hill and environmentally sensitive cities
Major Impact
• Firmly established a focus on the
    development of cities
•   Strong focus on cities taking
    responsibility




                     19
Lessons learnt
• Need to build capacity before
    launching such a huge program
•   Special emphasis to hand hold
    lagging states needed – financial
    incentives not enough
•   Sustained focus on reforms can be
    difficult – needs the right visionaries –
    political pressures on the investments


                      20
Thank You

Jawaharlal Nehru National Urban Renewal Mission

  • 1.
    Jawaharlal Nehru NationalUrban Renewal Mission Transforming Transportation 26th January 2012 O.P. Agarwal
  • 2.
    Urban Challenge ….. INDIA'S URBAN TRANSITION Urban Population (million) Rural Population (million) Total Population (million) 1600 1408.93 1400 1291.30 POPULATION IN MILLION 1230.48 1200 1164.02 1027.02 1000 846.30 811.77 833.88 843.77 833.25 800 741.67 684.30 628.70 548.20 524.80 575.68 600 439.10 447.53 396.60 400 352.25 285.35 217.60 200 109.10 159.50 0 1971 1981 1991 2001 2010 2015 2020 2030 YEAR
  • 3.
    Urban systems andchallenges  2nd largest urban system globally Urban • Towns (nos.) : 5,161  Urban population - 320 million (2011) • Million + cities : 35 system  Urban decadal GR : 25% - 30% • 100,000 + cities: 423  GDP contribution: 50% + Jawaharlal Nehru National Urban Renewal Mission ….. a break from the past and integrated approach
  • 4.
    Jawaharlal Nehru NationalUrban Renewal Mission Two track strategy for the urban sector development Track-I Track-II Sub Mission for Urban Infrastructure Urban Infra. Dev. Scheme for and Governance Small & Medium Towns Sub Mission for Basic Services Integrated Housing & Slum Dev. for the Urban Poor Program Coverage- 65 cities Cities/UAs with 4 million + population 07 Coverage- all other cities Cities with 1 million + population 28 State Capitals and other Cities 30
  • 5.
    Mission Objective andCoverage • Planned development • Integrated development of infrastructure • Linkages between asset creation & asset management PORBANBAR • Ensuring adequate investment of funds • Scaling up delivery of THIRUPATI services and emphasis on universal access • Renewal of inner city areas
  • 6.
    Salient Features • Cities are required to prepare City Development Plans (Vision Documents) as participatory frameworks for  Infrastructure planning and prioritization, and  Framing urban reform agendas • Funding support for infrastructure is linked to reforms  Cities and State need to enter into Memorandum of Agreement with Government of India to implement urban reforms in order to access JNNURM funds • Urban Infrastructure Projects are prepared and executed by the Cities  Cities are provided funding assistance for implementing urban projects based on Detailed Project Report.
  • 7.
    Eligible projects •Urban Renewal •Water Supply • Sewerage & Sanitation • Solid Waste Management • Storm Water Drains • Urban Transport • Parking spaces (through PPP) • Development of heritage areas • Preservation of water bodies • Prevention & rehabilitation of soil erosion
  • 8.
    Funding Pattern Grant ULB/ Centre State Parastatals/ Cities with 4 million plus population 35% 15% 50% Cities with million plus but less than 4 50% 20% 30% million population Cities in North Eastern States and J&K 90% 10% - Other Cities 80% 10% 10% Desalination Plant (for any city) 80% 10% 10%
  • 9.
    Urban Sector Reforms State level Mandatory Classification ULB level of reforms State/ULB Optional level All reforms have to be completed within the Mission period, as per an agreed timeline – MoA . 9
  • 10.
    Reforms (1) • Adoption of modern accrual-based double entry system of accounting • Introduction of a system of e-governance using IT applications • Reform of property tax so that it becomes a major source of revenue for the city • Arrangements for its effective implementation so that collection efficiency reaches at least 85 per cent within next seven years. • Levy of reasonable user charges with the objective that the full cost of O&M or recurring cost is collected within the next seven years • Internal earmarking in the budgets for basic services to the urban poor.
  • 11.
    Reforms (2) • Revision of bye-laws to streamline the approval process for buildings, etc. • Simplification of legal and procedural frameworks for conversion of agricultural land to non-agricultural purposes • Introduction of Property Title Certification System • Earmarking at least 20-25% of developed land in all housing projects for EWS and LIG category • Introduction of computerized process for registration of land and property • Revision of byelaws to make rain-water harvesting mandatory in all buildings and Byelaws for reuse of recycled water • Encouraging PPP
  • 12.
    Overall Status ofProject Implementation Particulars Total Cost of Approved Projects (Rs. Billion) 734.58 Central Assistance Committed (Rs. 383.97 Billion) Central Assistance Released : FY 215.16 2005-2011 (Rs Billion) Approved Projects (Nos.) 1,296 Completed Projects (Nos.) 231 12 Total Utilisation (Rs. Billion) 303.13
  • 13.
    Progress in useof funds (Rs Bn) 90 80 70 60 50 40 30 20 10 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Allocated Utilised 13
  • 14.
    Sector breakup 7 2 20 8 63 Water supply Urban Transport Sewarage Drainage Solid waste 14
  • 15.
    Progress of Reforms-State Level Category Name of States Number West Bengal, Maharashtra, Madhya Achieved all Pradesh, Uttar Pradesh, Delhi, Kerala 6 Andhra Pradesh, Assam, Bihar, Chhattisgarh, Performing well (above 50%) Gujarat, Haryana, Karnataka, Orissa, 11 Rajasthan, Tamil Nadu, Tripura, Arunachal Pradesh, Chandigarh, Goa, Manipur, M izoram, Nagaland, Sikkim, Jammu and Slow moving (below 50%) Kashmir, Meghalaya, Punjab, Puduche 14 rry, Uttarakhand, Himachal Pradesh, Jharkhand
  • 16.
    Progress of Reforms-ULB Level Category Number Achieved all 16 Performing well 23 Slow moving 24 16
  • 17.
    Key Issues inImplementation  Lack of capacity of the ULBs :  Dealing with delivery of specialized services such as fire services and planning and Urban forestry - many states have not transferred these functions  Lack of Political support in some areas :  Implementation of urban planning, rent control and Community participation law require considerable political support  Political consensus is also required for levy of property tax, doing away with exemptions, periodic surveys and improving administration of ULBs to enhance coverage and collection.  Resistance from states/ULBs to implement reforms:  Resistance on account of loss of revenue due to stamp duty reduction  Resistance to levy of user charges for solid waste as in many states it is recovered under property tax ;  People are reluctant to pay additional user charge as it is considered as an obligatory responsibility of the ULB hence
  • 18.
    Peer Experience andReflective Learning (PEARL) An initiative for knowledge sharing among cities launched Objective: To create manageable networks between JNNURM cities for cross learning and knowledge sharing Progress so far: 5 groups have been formed - A: Mega Cities with global character in socio-economic profile, B: Major industrial cities, C: Mixed economy cities D: Cultural and religious cities, E: Hill and environmentally sensitive cities
  • 19.
    Major Impact • Firmlyestablished a focus on the development of cities • Strong focus on cities taking responsibility 19
  • 20.
    Lessons learnt • Needto build capacity before launching such a huge program • Special emphasis to hand hold lagging states needed – financial incentives not enough • Sustained focus on reforms can be difficult – needs the right visionaries – political pressures on the investments 20
  • 21.