CHAPTER – 19

JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION

Hon. Prime Minister has declared “Jawaharlal Nehru National Urban Renewal
Mission” on 03.12.2005. This scheme is applicable to 5 cities with their Metropolitan
region of Maharashtra ie. Mumbai (6+2), Pune(2), Nagpur(1), Nashik(1+1) & Nanded
(1). Mega infrastructure projects, construction of houses with basic services are the
components of this scheme. Basic Services to Urban Poor (BSUP) is the
subcomponent of JNNURM. Under BSUP, 50% GOI subsidy is made available for
construction of houses with basic amenities.
Under this scheme 50% is GOI subsidy, 12% is beneficiaries’ contribution (in
case of reserve category contribution is 10%) & 30% is GOM subsidy and 8% is
ULB's contribution (in case of reserve category 10%). Central Govt. has merged
VAMBAY & NSDP in this new scheme. The objective of this scheme to urbanise the
developing colonies which are unplanned and without basic services.
It is mandatory to prepare City Development Plan of the city and get it
approved from GOI. Thereafter, Detailed Project Report is to be submitted to GOI
with approval of State Level Steering Committee.
In this mission GOI has laid down the condition of implementation “Urban
Reforms” at the State level and Urban Local Body level, those are Mandatory
Reforms & Optional Reforms.
Mandatory Reform at the level of ULB/ Municipal Corporation :-
1. Adoption of modern, accrual-based double entry system of accouting in
ULB.
2. Introduction of system of e-governance using IT application like GIS and
MIS for various services provided by ULBs.
3. Reform of Property Tax with GIS, so that is becomes major source of
revenue for ULB and arrangement for its effective implementation, so that the
collection efficiency reaches at least 85% within Mission period.
4. Levy of reasonable user charges by ULB with the objective that full cost
of operation and maintenance is collected within the Mission period.
5. Internal earmarking within the local body budgets for basic services to the
urban poor.
6. Provision of basic services to urban poor including security of tenure at
affordable prices, improved housing, water supply, sanitation and ensuring delivery of
other already existing universal services of the government for education, health and
social security.
 Mandatory Reform at State Level :-
1. Implementation of decentralization measure are envisaged in Seventy
Fourth Constitutional Amendment. State should ensure meaningful association/
engagement of ULBs in planning function of Parastatal as well as delivery of services
to the citizens.
2. Rationalisation of Stamp Duty to bring it down to no more than 5%
within the Mission period.
3. Enactment of community participation law to institutionalize citizen
participation and introducing the concept of the Area Sabha in urban areas.
4. Assigning or associating elected ULBs into “city planning function” over
a period of Five years; transferring all special agencies that the deliver civic services
in urban areas and creating accountability platform for all urban civic service
providers in transition.
Optional Reform:-
1 Repeal of Urban Land Ceiling and Regulation Act.
2 Amendment of Rent Control Laws balancing the interest of landlords and
tenants.
3 Enactment of Public Disclosure Law to ensure preparation of medium
term fiscal plan of ULBs and release of quarterly performance information to all
stakeholder.
4 Revision of bye-laws to streamline the approval process for construction
of building, development of sites etc.
5 Simplification of legal and procedural frameworks for conversion of
agricultural land for non-agricultural purposes.
6 Introduction of Property Title Certificate System in ULBs.
7 Earmarking at least 20-25% of developed land in all housing projects
(both public and private Agencies) for EWS/ LIG category with a system of cross
subsidization.
8 Introduction of computerised process of registration of land and property.
9 Revision of bye-laws to make rain water harvesting mandatory in all
buildings to come up in future and for adoption of water conversation measures.
10 Bye-laws in reuse of recycled water.
11 Administrative reforms, i.e. reduction in establishment by bringing out
voluntary retirement scheme, non-filling up of posts falling vacant due to retirement
etc. and achieving specified milestones in this regard.
12 Structural reforms.
 13 Encouraging public-private partnership.
States/ ULBs will be required to implement all the Mandatory Reforms and
Optional Reforms within the Mission period. The States/ ULBs need to choose at least
Two Optional Reforms each year for implementation. The details of reforms which
have already been implemented and/ or proposed to be taken up should be included in
the detailed project reports.
The sub-mission on Basic Services to Urban Poor will cover the following
Components:-:-
A Admissible Component:-
1 Integrated development of slums i.e. housing and development of
infrastructural projects in the slum in the identified cities.
2 Projects involving development/ improvement/ maintenance of basic
services to the urban poor.
3 Slum improvement and rehabilitation projects.
4 Projects on water supply/ sewerage/ drainage, community toilets/ baths,
etc.
5 Houses at affordable costs for slum dwellers/ urban poor/ EWS/ LIG
categories.
6 Construction and improvement of drains/ storm water drains.
7 Environmental improvement of slums and solid waste management.
8 Street lighting.
9 Civic amenities like community hall, child care centers etc.
10 Operation and maintenance of assets created under the component.
11 Convergence of health, education and social security schemes for the
urban poor.
Inadmissible Components:-
Project pertaining to the following will not be considered:-
1 Power
2 Telecom
3 Wage employment programme and staff component.
4 Creation of fresh employment opportunities.
GOM (Urban Dept) has constituted State Level Steering Committee (SLSC)
vide G.R. dated 23.01.2006 for this Central sponsored scheme- JN-NURM.
MHADA has been appointed as Nodal Agency for BSUP (sub-component
 under JN-NURM ). Govt. has issued the GR on 25/06/2007 for implementation of
programme in the state
This programme is being implemented in 14 cities in the state. These cities
are as under :-
Sr. Metropolitan Corporations/ Councils
No Region
1 Mumbai 1) Mumbai 2) Mira Bhayandar 3) Thane 4) Navi Mumbai 5)
KalyanDombivali 6) Ulhasnagar 7)Ambarnath 8)Kulgaon
Badlapur
2 Pune 9) Pune 10) Pimpri Chinchwad
3 Nashik 11) Nashik 12)Bhagur
4 Nagpur 13) Nagpur
5 Nanded 14) Nanded

Projects under BSUP have been sanctioned by GOI and the details are as under
Rs. in Crore
DUs approved Project GOI GOM ULB Benef.
Cost Share Share Share Share
182841 6817.85 3234.10 1757.04 1155.33 553.28

GOI share amounting to Rs. 1155.98 crore & GOM share amounting to Rs. 553
crore has been released to concerned ULBs. Total Expenditure incurred on the BSUP
schemes is Rs.2084.71 crore.

The status of 182841 Houses sanctioned by GOI is as under :-

Particulars DUs Exp.
Tenders invited and works 136834 DUs Rs. 2084.71
started (39020 DUs completed crore
64787 DUs in Progress &
33027 DUs Being
Started)
Tender to be invited 46007 DUs ---

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