Developing metro rail networks and construction of houses have been the top priority of the Central Government’s urban development plan. The Ministry of Housing and Urban Affairs’ data reveals that the Centre has allocated ₹53,000 crore to the States in four years to implement metro projects and ₹33,000 crore for the Pradhan Mantri Awas Yojana-Urban.

As many as 17 cities are implementing 27 metro projects, of which 10 are 50:50 joint ventures between the Government of India and the respective States. Of the total allocation of ₹1.32 lakh crore for eight flagship urban development programmes, the Centre has allocated 40 per cent funds for metros and 25 per cent for the housing projects in four years.

The Heritage City Development and Augmentation Yojana (HRIDAY) has not received even 1 per cent of the total allocation. The Ministry approves the overall State plans and releases the Central financial assistance under its missions. The detailed projects are conceived, appraised, approved and implemented by the States. Interestingly, almost 80 per cent of the Central assistance given to the States for Smart Cities Mission (SCM) remains unutilised.

Under the Swachh Bharat Mission–Urban (SBM–U), one of the popular programmes of the Centre, the government has released ₹8,750 crore to the States of which 48 per cent funds have been utilised. Atal Mission for Rejuvenation and Urban Transformation (AMRUT), launched on June 25, 2015, aims to provide water taps to all urban households and augment water supply, sewerage and drainage networks, non-motorised urban transport and development of green and open spaces in 500 mission cities. The Centre has released ₹18,390 crore for AMRUT till date of which States have utilised ₹9,876 crore (or 54 per cent).

Two programmes, namely the North-Eastern Region Urban Development Programme (NERUDP) and the 10% Lumpsum Scheme of the Ministry of Housing and Urban Affairs, have received just 1 per cent of the total allocation.

Overall, the States have utilised 67 per cent of the Central funds provided under the eight urban development projects.

According to the Ministry of Housing and Urban Affairs, in order to monitor progress of schemes and funds allocated to the States, various institutional frameworks such as submission of periodic progress reports, review meetings, video conferences and field visits have been put in place. Instalments of Central assistance are released keeping in view the reports of the Independent Review and Monitoring Agencies (IRMA) / Utilisation Certificates issued by the State Government authorities as required under the respective scheme guidelines.

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