By O.P. Agarwal, Urban Transport Advisor, World Bank. Presented at Transforming Transportation, January 26, 2012, Washington, D.C.

1. Jawaharlal Nehru National Urban
Renewal Mission
Transforming Transportation
26th January 2012
O.P. Agarwal

2. Urban Challenge …..
INDIA'S URBAN TRANSITION
Urban Population (million) Rural Population (million) Total Population (million)
1600
1408.93
1400 1291.30
POPULATION IN MILLION
1230.48
1200 1164.02
1027.02
1000
846.30 811.77 833.88 843.77 833.25
800 741.67
684.30
628.70
548.20 524.80 575.68
600
439.10 447.53
396.60
400 352.25
285.35
217.60
200 109.10 159.50
0
1971 1981 1991 2001 2010 2015 2020 2030
YEAR

3. Urban systems and challenges
 2nd largest urban system globally
Urban • Towns (nos.) : 5,161
 Urban population - 320 million (2011)
• Million + cities : 35
system  Urban decadal GR : 25% - 30%
• 100,000 + cities: 423
 GDP contribution: 50% +
Jawaharlal Nehru National Urban Renewal Mission
….. a break from the past and integrated approach

4. Jawaharlal Nehru National Urban Renewal Mission
Two track strategy for the urban sector development
Track-I Track-II
Sub Mission for Urban Infrastructure Urban Infra. Dev. Scheme for
and Governance Small & Medium Towns
Sub Mission for Basic Services Integrated Housing & Slum Dev.
for the Urban Poor Program
Coverage- 65 cities
Cities/UAs with 4 million + population 07 Coverage- all other cities
Cities with 1 million + population 28
State Capitals and other Cities 30

5. Mission Objective and Coverage
• Planned development
• Integrated development of
infrastructure
• Linkages between asset
creation & asset
management
PORBANBAR
• Ensuring adequate
investment of funds
• Scaling up delivery of THIRUPATI
services and emphasis on
universal access
• Renewal of inner city areas

6. Salient Features
• Cities are required to prepare City Development Plans
(Vision Documents) as participatory frameworks for
 Infrastructure planning and prioritization, and
 Framing urban reform agendas
• Funding support for infrastructure is linked to reforms
 Cities and State need to enter into Memorandum of Agreement with
Government of India to implement urban reforms in order to access
JNNURM funds
• Urban Infrastructure Projects are prepared and executed
by the Cities
 Cities are provided funding assistance for implementing urban projects
based on Detailed Project Report.

7. Eligible projects
•Urban Renewal
• Water Supply
• Sewerage & Sanitation
• Solid Waste Management
• Storm Water Drains
• Urban Transport
• Parking spaces (through PPP)
• Development of heritage areas
• Preservation of water bodies
• Prevention & rehabilitation of soil erosion

8. Funding Pattern
Grant ULB/
Centre State Parastatals/
Cities with 4 million plus population 35% 15% 50%
Cities with million plus but less than 4
50% 20% 30%
million population
Cities in North Eastern States and J&K 90% 10% -
Other Cities 80% 10% 10%
Desalination Plant (for any city) 80% 10% 10%

9. Urban Sector Reforms
State level
Mandatory
Classification ULB level
of reforms
State/ULB
Optional
level
All reforms have to be completed within the Mission period,
as per an agreed timeline – MoA .
9

10. Reforms (1)
• Adoption of modern accrual-based double entry system
of accounting
• Introduction of a system of e-governance using IT
applications
• Reform of property tax so that it becomes a major source
of revenue for the city
• Arrangements for its effective implementation so that
collection efficiency reaches at least 85 per cent within
next seven years.
• Levy of reasonable user charges with the objective that
the full cost of O&M or recurring cost is collected within
the next seven years
• Internal earmarking in the budgets for basic services to
the urban poor.

11. Reforms (2)
• Revision of bye-laws to streamline the approval process
for buildings, etc.
• Simplification of legal and procedural frameworks for
conversion of agricultural land to non-agricultural
purposes
• Introduction of Property Title Certification System
• Earmarking at least 20-25% of developed land in all
housing projects for EWS and LIG category
• Introduction of computerized process for registration of
land and property
• Revision of byelaws to make rain-water harvesting
mandatory in all buildings and Byelaws for reuse of
recycled water
• Encouraging PPP

12. Overall Status of Project Implementation
Particulars Total
Cost of Approved Projects (Rs. Billion) 734.58
Central Assistance Committed (Rs.
383.97
Billion)
Central Assistance Released : FY
215.16
2005-2011 (Rs Billion)
Approved Projects (Nos.) 1,296
Completed Projects (Nos.) 231
12
Total Utilisation (Rs. Billion) 303.13

13. Progress in use of funds (Rs Bn)
90
80
70
60
50
40
30
20
10
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Allocated Utilised
13

14. Sector breakup
7 2
20
8 63
Water supply Urban Transport Sewarage Drainage Solid waste
14

15. Progress of Reforms- State Level
Category Name of States Number
West Bengal, Maharashtra, Madhya
Achieved all
Pradesh, Uttar Pradesh, Delhi, Kerala 6
Andhra
Pradesh, Assam, Bihar, Chhattisgarh,
Performing well
(above 50%)
Gujarat, Haryana, Karnataka, Orissa, 11
Rajasthan, Tamil Nadu, Tripura,
Arunachal
Pradesh, Chandigarh, Goa, Manipur, M
izoram, Nagaland, Sikkim, Jammu and
Slow moving (below
50%)
Kashmir, Meghalaya, Punjab, Puduche 14
rry, Uttarakhand, Himachal
Pradesh, Jharkhand

16. Progress of Reforms- ULB Level
Category Number
Achieved all 16
Performing well 23
Slow moving 24
16

17. Key Issues in Implementation
 Lack of capacity of the ULBs :
 Dealing with delivery of specialized services such as fire services
and planning and Urban forestry - many states have not transferred
these functions
 Lack of Political support in some areas :
 Implementation of urban planning, rent control and Community
participation law require considerable political support
 Political consensus is also required for levy of property tax, doing
away with exemptions, periodic surveys and improving
administration of ULBs to enhance coverage and collection.
 Resistance from states/ULBs to implement reforms:
 Resistance on account of loss of revenue due to stamp duty
reduction
 Resistance to levy of user charges for solid waste as in many states
it is recovered under property tax ;
 People are reluctant to pay additional user charge as it is
considered as an obligatory responsibility of the ULB hence

18. Peer Experience and Reflective Learning
(PEARL)
An initiative for knowledge sharing among cities launched
Objective: To create manageable networks between JNNURM
cities for cross learning and knowledge sharing
Progress so far: 5 groups have been formed -
A: Mega Cities with global character in socio-economic
profile,
B: Major industrial cities,
C: Mixed economy cities
D: Cultural and religious cities,
E: Hill and environmentally sensitive cities

19. Major Impact
• Firmly established a focus on the
development of cities
• Strong focus on cities taking
responsibility
19

20. Lessons learnt
• Need to build capacity before
launching such a huge program
• Special emphasis to hand hold
lagging states needed – financial
incentives not enough
• Sustained focus on reforms can be
difficult – needs the right visionaries –
political pressures on the investments
20

21. Thank You