The Hindu Business Line : Ministry seeks Rs 50,000 cr extra outlay for JNNURM

New Delhi, June 30 In an effort to bring 28 more cities under the scheme, the Urban Development Ministry on Monday aggressively pitched for an additional outlay of Rs 50,000 crore for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

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

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

Plentiful demand

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

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 five lakh.

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

The Minister, however, pointed out that while the Centre’s assistance was linked to reforms, some States were not honouring their reform commitments.

He appealed to States to stick to their commitments.

The Minister said that substantial assistance had been made available for the purchase of 15,220 modern buses for city transport for 61 mission cities.

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