In an effort to bring 28 more cities under the scheme, the Urban Development Ministry on last Monday aggressively pitched for an additional outlay of INR 50,000 crore for the Jawaharlal Nehru National Urban Renewal Mission.

Outlining his 100 day action plan, Mr S Jaipal Reddy the Urban Development minister said “Efforts will be made to raise the amount from the original INR 1,00,000 crore to INR 1,50,000 crore.”

Mr Reddy said “We have a problem of plentiful demand and more cities are asking for more money and there is also a demand from smaller towns.”

He said “I have mentioned this to the Finance Minister and we will pursue this agenda,” adding that out of the enhanced outlay of INR 50,000 crore while the Centre would pitch in INR 25,000 crore, the States and urban local bodies would need to raise the balance.

Mr Reddy, however, pointed out that while the Center’s assistance was linked to reforms, some States were not honoring their reform commitments. He appealed to States to stick to their commitments.

He further added that substantial assistance had been made available for the purchase of 15,220 modern buses for city transport for 61 mission cities.

The Government had launched JNNURM in December 2005 to improve urban infrastructure in 65 major cities by mobilizing INR 50,000 crore from the Center’s coffers and a matching INR 50,000 crore from the State governments and urban local bodies. So far, projects worth INR 95,385 crore have already been sanctioned and are under various stages of implementation.

While in the first phase, JNNURM had covered cities with a million-plus population, this time around it is likely to be extended to cities with population of 500,000.

(Sourced from Business Line)