Nuts and bolts

jnnurm has two sub-missions: one for urban infrastructure and governance (uig) administered by the Union ministry of urban development (moud); and one for basic services to the urban poor (bsup) administered by the Union ministry of housing and urban poverty alleviation (mohupa).

The main thrust of the uig sub-mission is on infrastructure projects relating mainly to water supply and sanitation, and sewerage. The bsup sub-mission focuses on integrated development of slums. The Centre has issued a list of admissible and inadmissible projects under jnnurm (see table: Project parameters). Apart from these sub-missions, the Centre has also launched two programmes, the Urban Infrastructure Development

jnnurm has two sub-missions: one for urban infrastructure and governance (uig) administered by the Union ministry of urban development (moud); and one for basic services to the urban poor (bsup) administered by the Union ministry of housing and urban poverty alleviation (mohupa).

The main thrust of the uig sub-mission is on infrastructure projects relating mainly to water supply and sanitation, and sewerage. The bsup sub-mission focuses on integrated development of slums. The Centre has issued a list of admissible and inadmissible projects under jnnurm (see table: Project parameters). Apart from these sub-missions, the Centre has also launched two programmes, the Urban Infrastructure Development Scheme for Small and Medium Towns and Integrated Housing and Slum Development Programme, for cities not covered by jnnurm.

To avail funds under jnnurm, city authorities must prepare development plans and detailed project reports. While the former is a 20-25 year vision document defining the direction in which the city wishes to go and by what route, the reports are for specific projects.

Of the total Rs 50,000 crore available under jnnurm, 5 per cent has been set aside as central grants for preparing plans and reports, training and capacity-building, and community participation. Another 5 per cent has been set aside for administrative expenses.

What need?
"Urbanisation is growing at a rapid pace and all this while we have ignored our urban areas. Our cities are facing extreme decay; hence jnnurm is a welcome programme that will transform the face of urban India. This is the first large-scale programme of the Government of India that studies cities in a comprehensive manner. Things are bound to change for good," says R Rajamani, jnnurm mission director and joint secretary, moud, New Delhi.

Statistics support Rajamani's viewpoint. Urban India is witnessing phenomenal growth. According to the 2001 census, India has a population of 1,027 million with approximately 28 per cent, or 285 million people, living in urban areas (see graph: Growing fast). The share of urban population may increase to about 40 per cent of total population by the year 2021. Union minister of state for urban development Ajay Maken recently quoted figures as high as 75 per cent urban population by 2021.

Paradigm shift
To ensure 'smooth clearance of projects' under jnnurm, a parallel administrative set-up has been put in place. At the top of this set-up is a seven-member national steering group with the minister of urban development as its chairperson and at the bottom is the ulb. The decision-making and release of funds take place through these parastatal bodies beyond the jurisdiction of elected representatives.

Once a city decides to adopt reforms under jnnurm, its ulb and the state government have to sign a tripartite memorandum of agreement (moa) with the Centre indicating specific milestones to be achieved for each item of reform. If necessary, parastatal agencies may also be involved in the signing of moa. Signing the moa is a necessary condition to access jnnurm funds. This moa along with programme plans are submitted to the Centre which releases funds in a phased manner on the basis of these documents. Programme plans can be scrutinised either by the technical wing of respective ministries, or appraisal bodies identified by the Centre.

In the first phase of project clearance, the Centre had hired two New-Delhi-based appraisal bodies -- the National Institute of Urban Affairs (niua) and National Institute of Public Finance and Policy (nipfp). In the second phase, the Hyderabad-based Administrative Staff College of India, New Delhi-based Indian Institute of Public Administration, Ahmedabad-based Indian Institute of Management and Ahmedabad-based Centre for Environmental Planning and Technology were brought on board. Based on their recommendations, the eight-member central sanctioning and monitoring committee, chaired by the urban development secretary, prioritises projects and "projects with private sector participation [are to] be given priority over projects to be executed by ulb /parastatals themselves..." At the national level, a technical advisory group headed by Ramesh Ramanathan of the Bangalore-based Janaagraha has also been set up to "encourage private sector participation, citizens' involvement in urban governance at grass root level and transparency in municipal governance". But Janaagraha's own track record on 'participatory' schemes such as the Greater Bangalore Water Supply and Sewerage Project is dodgy (see 'Virtual realities', Down To Earth, December 31, 2005).

The states eyeing jnnurm funds have to set up a parastatal structure. A state-level steering committee headed by the chief minister has to decide on and prioritise projects under jnnurm. The steering committee is assisted by a state-level nodal agency, which the state has to 'designate' (a new or existing organisation which is not elected).

This nodal agency has to appraise projects submitted by ulbs/parastatal agencies; manage jnnurm grants; release funds to ulbs/parastatal agencies; monitor physical projects and agreed reforms. All the projects have to be cleared by state-level steering committee before being submitted to mission directorate in New Delhi. The jnnurm process is thus concentrated in the hands of chosen non-elected parastatal bodies.

There is no scope for public debate.