Earlier, the Ministry approved action plans every year under Atal Mission for Rejuvenation and Urban Transformation (AMRUT).
Urban Development Ministry also approved investments of Rs 5,815 crore for 2017-20 in the states of Gujarat, Rajasthan, Punjab, Bihar and Tripura under the scheme.
"An Inter-Ministerial Apex Committee of AMRUT, chaired by Rajiv Gauba, Secretary (Urban Development) today approved investments of Rs 5,815 crore during 2017-20 in the states of Gujarat, Rajasthan, Punjab, Bihar and Tripura," an official release said.
Release of central assistance will be linked to launch of all projects as approved for 2015-17, he added.
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The Committee approved investment of Rs 2,279 crore for Gujarat, Rs 1,232 crore for Rajasthan, Rs 1,200 crore for Punjab, Rs 1,042 crore for Bihar and Rs 62 crore for Tripura for the next three financial years.
Under AMRUT, providing water taps to all urban households is given top priority followed by improving sewerage networks and septage management, storm water drains, public transport while developing at least one park/green open space in each city every year is mandatory.
The committee also approved State Annual Action Plan of Arunachal Pradesh with an outlay of Rs 46.67 crore and of Sikkim with an outlay of Rs 13.33 crore for 2016-17.
With this, annual action plans for the current financial year have been approved for all states and UTs except for Delhi whose proposals in prescribed form are still to be received, the release said.