FAQ

This is a FAQ about JNNURM.

What is JNNURM ?

JNNURM is a state sector scheme for Urban Renewal initiated by Govt. of
India (GOI) to be implemented over a 7-year period. The scheme
envisages providing financial assistance to urban local bodies (ULBs)
& parastatal agencies of the order of Rs. 50,000 crores, spread
over 7 years

More in the Overview PDF.

What are the objectives of JNNURM?

* Integrated development of infrastructure services;
* Ensuring adequate funds to meet the deficiencies in urban infrastructural services;
* Planned development of identified cities;
* Scale-up delivery of civic amenities and provision of utilities with emphasis on universal access to the urban poor;
* Special focus on urban renewal programme to reduce congestion; and
* Provision of basic services to the urban poor including security of tenure at affordable prices, improved housing, water supply and sanitation, and ensuring delivery of other existing universal services of the government for education, health and social security.

Is the assistance available under JNNURM, a grant or a loan?

The central assistance available under JNNURM is a grant fund. The amount of grant is related to the category of city. However, the grant is available only after entire finances for the project are tied up and the contribution of the state and the implementing agency are made available, out of the total grants (State and Centre) released under the Scheme, 25% is the cost of Infrastructure Development & Governance and 10% incase of BSUP has to be collected from the IAs to create Revolving Fund for O & M of assets created and further funding of the Infrastructure Projects.

How are the Urban poor benefited under this mission?

In order to improve the quality of life of socially and economically deprived sections of the society, JNNURM includes an exclusive sub - mission on Basic Services for Urban Poor. The share of financing as grants is higher for projects under this sub - mission.

What are the pre-requisites for accessing funds under JNNURM?

* Signing of tripartite Memorandum of Agreement between, ULB, respective state government and respective Ministry (Urban Development or Urban Employment and Poverty Alleviation)
* Implementation of Reforms (Mandatory reforms and Optional reforms)
* Preparation of City Development Plan (CDP) and Detailed Project Report (DPR)

What are the sectors admissible under JNNURM?

* Urban Infrastructure - Water supply and sanitation, Sewerage and Solid waste Management, Roads and related infrastructure, tourism
* Basic Services for Urban Poor – improvement of basic services to urban poor, Projects for providing houses at affordable costs for slum dwellers.

What are mandatory reforms?

Mandatory reforms are those reforms, which the Urban Local Body (ULB)/parastatal agency/ state government necessarily has to implement. For a detailed listing of these reforms, please refer to the guidelines.

How are the citizens involved in preparing the CDP?

Citizens are the key stakeholders in the growth and development of the  region. This CDP preparation process aims to elicit views from all sections of the people, and to this end, a series of stakeholder meetings were held.

How is the CDP currently being prepared different from that prepared by KMDA other Development Authority?

While the acronyms used for both documents are same, the CDP under JNNURM refers to a City Development Plan setting out a long term vision and strategy for providing urban services. The document prepared KMDA  refers to Comprehensive Development Plan, which is a statutory requirement and primarily a land use based directional document.

What are optional reforms?

Optional reforms are the reforms, which also necessarily need to be carried out by the ULB/ state; however, the phasing of these reforms would be at the choice of the ULB/ state. Two reforms need to be carried out every year over the mission period. For a detailed listing of these reforms, please refer to the guidelines.

What is CDP?

A City Development Plan (CDP) is a perspective and a vision for the future development of a city. It provides a framework within which projects need to be identified, prioritized and implemented. A typical CDP (as set out in guidelines) would include an assessment of city’s current state of infrastructure, a shared vision of all the stakeholders, normative based estimates of the investments required for achieving the vision and a financing strategy for these investments.

Which other stakeholders are being consulted?

Other stakeholders who are part of the CDP preparation process include the government agencies (All Development Boards like KMDA, ADDA, BDA etc. Municipal Corporations/ ULBS, Urban Development Department, PWD, Transport Dept., SUDA etc), and electd representatives (councilors, MLAs and MPs), NGOs, trade bodies, industry associations etc.

Would the CDP contain a detailed listing of projects of all areas?

CDP is a macro level directional document and would broadly prioritize the sectors. For instance, improving storm water drains may be a prioritized sector, but the specific project at any particular location may not be mentioned. Another example could include plugging leakages in water distribution system. Specific projects would be posed after preparing detailed project reports.

How much grant funds would be received ? Is this based on the CDP?

While the CDP indicates an estimate of investments required for improving urban infrastructure services in the city, the estimates are normative in nature and are not based on any detailed engineering studies. The funding is directly related to the projects (and not to the estimates set out in CDP), which are submitted to GoI for availing JNNURM assistance. However, the in-principle need for such a project/ service delivery mechanism should be outlined in the CDP.

How are the funds released?

The funding is released only on project specific basis, against meeting project milestones and implementation of reforms (mandatory and optional).

What is the procedure for financing of projects?

On approval of the CDP, by the Government of India (GOI) the implementing agencies would need to submit DPRs for the projects set out in the CDP. On approval of the DPR funds would be released by the GOI.

Where can I get more information ?

http://urbanindia.nic.in/moud/programme/ud/jnnurm/FAQ.pdf