Urban development funds based on states’ performance: Montek (Lead)

December 3rd, 2010 - 10:22 pm ICT by IANS  

New Delhi, Dec 3 (IANS) The government Friday said that funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), to fast track planned development of urban infrastructure and basic services, would be allocated according to performance of the states and suggested that the private sector could be roped in.

“Performance of states on reforms linked to the mission was not encouraging, and future allocation to the states would be strictly linked to performance on the reforms side,” said Deputy Chairman Planning Commission, Montek Singh Ahluwalia, speaking on completion of five years of the programme.

He was of the opinion that central support to programmes like construction of metro, roads and bridges should also be linked to the reforms.

According to Ahluwalia: “The cost of providing expected level of services in the urban areas is going to be so big that government funds would be just insufficient and private sector has to be engaged in this task.”

Minister of Urban Development S. Jaipal Reddy urged the states to speed up reforms proposed under the programme and that significant achievements had been made under the programme and more was to be achieved in coming years.

“Basic amenities created under JNNURM have helped to improve the living standards of common men especially poor sections of society by providing better drinking water facilities, improved sewerage and approach roads,” said Reddy.

According to the minister, Rs.11,859.63 crore for 527 projects under JNNRUM had been allocated by the central government and he would request more funds under the scheme to take up more projects.

The day-long conference convened to review implementation of JNNURM was attended by the urban development ministers’ from states, mayors of JNNURM cities, municipal commissioners, senior officials of the central government and the state governments.

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched on the 3rd December 2005 for reforms driven and fast track planned development of urban infrastructure and basic services in 65 mission cities.

Infrastructure Development for small and medium towns and integrated housing and slum development were also initiated under the JNNURM.

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