On November 28, 2012, the Comptroller and Auditor General submitted its report on the implementation of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). According to the report most of the projects initiated under JNNURM have not been completed. For instance with respect to urban infrastructure projects, only 231 projects out of the 1298 sanctioned projects have been completed. Similarly, with respect to housing projects, only 22 of the 1517 projects have been completed. Some of the other key recommendations of the report are:
- Some of the reasons for the delay in completing the projects include: (i) delay in acquiring land; (ii) deficiency in preparation of projects; and (iii) non-identification of beneficiaries which increased the risk of ineligible beneficiaries getting the benefits.
- A total allocation of Rs 66,084 crore had been made by the Planning Commission. However, against this total allocation, the central government had made an allocation of only Rs 37,070 out of which until March 30, 2011 only Rs 32,934 had been released.
- There was a delay in releasing these funds to the states. A large portion of the funds was released only in the last quarter and more particularly in March.
- The JNNURM guidelines were deficient as they did not provide adequate guidance to the states on the method of parking the funds and utilization of interest.
The need and objectives of JNNURM
According to the 2011 census India’s urban population has increased from 286 million in 2001 to 377 million in 2011 . With the increase in urban population, there is a requirement to improve the urban infrastructure and improve the service delivery mechanisms. With these specific objectives in mind, the central government launched the Jawaharlal Nehru National Urban Renewal Mission 2005-2006. The aim of the Mission is to encourage reforms and fast track planned development of identified cities (such as cities with a population of more than 1 million as per the 2001 census). JNNURM has two main components namely : (i) Urban Infrastructure and Governance and (ii) Urban Infrastructure Development for Small and Medium Towns.
The duration of JNNURM was from 2005-06 to 2011-12. However, as the projects have not been completed the Government has extended its duration until March 2014.
Funds for JNNURM
The funds for JNNURM are provided through the Additional Central Assistance. This implies that the funds are provided as grants to the states directly from the centre. In the 2012 Union Budget, the central government has allocated Rs 12,522 crore for JNNURM. This represents around 10 % of the total central assistance through the different schemes to states and union territories in 2012-13.
As on June 30 2012, 554 projects at a total cost of Rs 62,253 crore have been sanctioned under the Urban Infrastructure and Governance sub-mission of JNNURM. The table below shows the status of the sanctioned JNNURM projects in the different states.
State wise status of the projects under JNNURM (as on August 6, 2012)
|Name of State||Total Allocation (Rs Lakh)||Number of sanctioned projects||Completed Projects|
|Jammu & Kashmir||48,836||5||NA|
Source: Jawaharlal Nehru National Urban Renewal Mission; PRS.
- Gujarat at 55.55% has the highest number of completed projects, while Uttar Pradesh at 12.24% has the lowest number of completed projects.
- Out of the larger states, Delhi and Maharashtra at 17% and 26% have a comparatively low rate of completed projects.
- Maharashtra has the highest number of sanctioned projects, while the North Eastern states, Chattisgarh and Puducherry have the lowest number of sanctioned projects.