Fund crunch is affecting implementation of a central scheme for developing infrastructure in urban areas with most of the states already exhausting their allocation, Rajya Sabha was informed today.
"Yes.... The states are in need of more funds for their urban infrastructure projects but due to non- availability of funds in their seven-year allocation, it is not possible to commit any further assistance to them," Minister of State for Urban Development Saugata Roy stated in a written reply to a question in the Upper House.
He was asked whether a fund crunch is affecting the implementation of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
The Minister informed the House that a sum of Rs 31,500 crore has been allocated as Additional Central Assistance (ACA) for sanctioning of projects under Urban Infrastructure and Governance (UIG) of 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 and Medium Town (UIDSSMT).
"The committed ACA against the above mentioned provision is Rs 27,748.18 crore for UIG and Rs 10,435.93 crore under UIDSSMT," he said.
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 and almost reached their 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 seven-year allocation under UIDSSMT," the minister added.
When asked whether the Planning Commission has also expressed its concern in this context and proposed private sector participation, the Minister replied that the Commission has favoured encouraging projects being taken up in public-private-participation (PPP).
"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," he said.
