Press Information Bureau
Government of India
Ministry of Housing & Urban Affairs
09-December-2010 17:16 IST
Private Sector Participation in JNNURM
A sum of Rs.31,500 crore has been allocated as Additional Central Assistance (ACA) for sanctioning of projects under Urban Infrastructure & Governance (UIG) of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for the Mission period of seven years, beginning from 2005-06 and Rs.11,400 crore for sanction of project under Urban Infrastructure Development Scheme for Small & Medium Town (UIDSSMT). The committed ACA against the above mentioned provision is Rs. 27748.18 crore for UIG and Rs.10435.93 crore under UIDSSMT. Some of the States like Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Maharashtra, Meghalaya, Orissa, Pudducherry, Rajasthan, Tamil Nadu, Tripura and Uttar Pradesh have either exceeded or almost reached their 7 years allocation under UIG of JNNURM. Only States like Andaman Nicobar, Bihar, Goa, Haryana, Jharkhand, Lakshadweep, Uttar Pradesh and Nagaland are left with some balance in their 7 year allocation under UIDSSMT. The States are in need of more funds for their urban infrastructure projects but due to non-availability of funds in their 7 year’s allocations, it is not possible to commit any further assistance to them. This information was given by the Minister of State in the Ministry of Urban Development, Shri Saugata Roy in written reply to a question in Rajya Sabha today.

The Minister said that Planning Commission has favoured encouraging projects being taken on Public Private Participation (PPP) models. Planning Commission in its ‘Annual Report to the People on Infrastructure’ has mentioned that one of the identified strategies for the mission was to incorporate private sector efficiencies and attract private capital in the development, arrangement and financing of projects, through PPP arrangements.

The JNNURM clearly delineates Public Private Participation (PPP) as an important strategy in development of urban infrastructure. Under JNNURM, PPP projects have been taken up in Solid Waste Management, Public Transport Systems, Water Supply and Waste Water management. Mission is facilitating cities to undertake reforms for improvement of governance and financial sustainability. Encouraging private partnership and PPP models for provision of various services is one of the key reforms under the Mission. The Mission has also prepared a toolkit for guiding cities for preparing projects on PPP basis, the Minister added.