Leveraging JnNURM Funds by ULBs
A study on leveraging of funds in JNNURM projects - select mission cities
Ministry of Urban Development
Government of India
1. Evolving Urbanisation Scenario in India
The urban population in India has crossed 320 million and is estimated to grow to 583 million by 2031. The share of urban population stood at 27.8% in 2001 and is estimated to be 38% by 2031. With urban areas contributing over 60% of India’s GDP, rapid urbanisation has increased the demand for urban infrastructure in India.
2. JNNURM – The Catalyst
The urban sector in India has seen a major thrust in recent years. Recognising the need for accelerating urban infrastructure development, the Government of India launched the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in 2005. This is a reform-based investment programme supported partially by grant from Government of India which varies by the type of city (based on population). It has an outlay of Rs. 66,000 crore over a seven-year period.
However, this is still fails to address the 11th Plan estimates of Rs. 1,29,237 crore.
JNNURM Mission Overview
The mission aims at a reform driven, planned and integrated development of urban infrastructure and services in 65 mission cities across various sectors. The scheme envisages providing grant based financial support for urban infrastructure investments. The grant component from the Central Government varies between 35%-90% of project costs depending on the classification of the cities. The State government also contributes a specified share (10%-20%) and the remainder have to be raised by the Urban Local Bodies (ULBs) through own funds, loans from external funding agencies, private sector participation or through institutional finance.
JNNURM and Leveraging
It is expected that the JNNURM assistance would serve to catalyse the