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Whether it is Shimla's multi-level interstate bus terminus or a pipe-bursting technology for replacing sewers without having to dig up the walled city of Jaipur, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has left an impression across cities.
One of the most visible programmes of the United Progressive Alliance (UPA), the JNNURM came to an end on March 31 after a nine-year run. During that period some 1,345 projects costing Rs 74,778 crore were approved, of which less than half were completed till February this year.
Though the UPA has been planning to extend the programme with more emphasis on public-private partnership and skill building in urban local bodies, the fate of this flagship programme, which got an extra two years after the expiry of its seven-year term in 2012, will now be decided by the next government.
The implementation of existing projects is largely dependent on the state and local administration and, therefore, results vary. A recent assessment by the Independent Evaluation Office in the Planning Commission said Tamil Nadu has the best record in completing projects and Gujarat in reforming urban laws under the JNNURM. Bihar is the worst performer on both counts.
"The projects under JNNURM are implemented by the state governments with the help of urban local bodies according to their existing rules and procedures. However, constraints such as land acquisition, tendering issues, contractual problems and clearances are leading to time over-runs," Deepa Dasmunshi, Union minister of state for urban development, told Parliament in the last session.
The programme launched in December 2005 had taken up three types of cities and urban agglomerations: those with four million-plus population in the 2001 census, those with one million-plus population, and select state capitals and religious centres. The mission itself is divided into two sub-missions - urban infrastructure and governance, and urban infrastructure development scheme for small and medium towns. "Till 2005, no major programme for basic infrastructure in a large number of cities had been undertaken. On the project side, the infrastructure building was possible because of the funding made available by the central government. On the aspect of reforms, there could be a different assessment but at least a beginning was made," said M Ramachandran, former secretary, ministry of urban development.
The mission requires market-friendly reforms be undertaken by states and local bodies. While some are optional, funding for projects is linked to these reforms. Till late last year, 78 per cent of states undertaking projects under JNNURM complied with all reforms. State-level reform initiatives showed an even higher 83 per cent compliance, and 79 per cent met the optional requirements.
While carrying out an assessment of JNNURM in 2011, consultancy firm Grant Thornton suggested taking up second-generation reforms for those states that have achieved the 23 reforms under the programme. The list of the next phase of reforms includes preparation of asset management plans by urban local bodies and service providers, setting up of municipal regulatory authorities, encouraging water and energy audits, and mandatory benchmarking for all urban services.
The Centre, too, felt that not only a number of projects were unfinished and states were slow to respond, but various other parameters like modern and transparent accounting and provision of basic levels of services to all urban dwellers were not implemented. Realising that cities were still far from achieving the goals, the Centre in 2011 revised its strategy to make cities financially sound with enhanced credit rating and the ability to access market capital for undertaking new programmes and expansion of services.
Ramachandran says despite the expiry of the programme on March 31, any new government should extend it and spread it to a larger number of cities. "There is a need for capacity building in cities so there should be a mission agenda for another 10 years with more reforms being undertaken both specific to cities and in general." If capacity building in city administration goes on along with incentivised funding, the new government should be able to build on the foundation laid by the programme.
