GOVERNMENT OF INDIA

Ministry of Urban Development

RAJYASABHA
UNSTARRED QUESTION NO. 3023
TO BE ANSWERED ON APRIL 22, 2010
Funds for JNNURM

No. 3023 SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of Urban Development be pleased to state:

(a) the terms and conditions of JNNURM funding for cities, mandatory or otherwise;

(b) the details of the grants given under the JNNURM scheme during the last three years, year-wise and State-wise;

(c) utilization of these grants during the period, State-wise;

(d) whether effective reforms in urban governance have been realized through these grants; and

( e) the action proposed to be taken against the State Governments that are not utilizing the funds according to Government stipulation?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF URBAN DEVELOPMENT
(SHRI SAUGATA ROY)

(a): The State Government has to submit City Development Plans (CDP) indicating therein among other things the investment requirement and priority projects to be taken up in the admissible sectors under Jawaharlal Nehru National Urban Renewal Mission(JNNURM). The State Governments and the Urban Local Bodies (ULBs) including para-statal agencies, where necessary, execute Memorandum of Agreement (MoA) with Government of India indicating their commitment to implement identified reforms. Signing of MoA is a necessary condition to access Central Assistance. In addition, the States I Cities has to submit Detailed Project Reports (DPRs) emanating from the CDP and in conformity with the guidelines of UIG of JNNURM for consideration by the Central Sanctioning and Monitoring Committee (CSMC) for approval subject to their technical appraisal and availability of funds.

(b) & (c): Details of funds released state-wise during the last three years and utilization is annexed.

(d) & (e): All the mandatory and optional reforms shall be implemented by the State/ULB/Para-Statals within the mission period i.e. 2005-06 to 2011-12. The first installment of 25% will he released on signing of Memorandum of Agreement by the State Government/ULB/Para-Statal for implementation of JNNURM projects. The balance amount of assistance shall be released as far as possible in three installments upon receipt of Utilisation Certificates to the extent of 70% of the grants (Central & State) and subject to achievement of milestones agreed for implementation of mandatory and optional reforms at the State and ULB/Parastatal level as envisaged in the Memorandum of Agreement.