Expert panel for JNNURM relaunch

The expert committee on urban infrastructure has recommended a new improved Jawaharlal Nehru National Urban Renewal Mission.

The expert committee on urban infrastructure has recommended a new improved Jawaharlal Nehru National Urban Renewal Mission JNNURM,abolition of entry tax into states and increased investment in urban infrastructure.

The committee headed by Dr Isher Ahluwalia submitted its report to Minister of Urban Development Kamal Nath and Minister of Housing and Urban Poverty Alleviation Kumari Selja on Monday. The committee has recommended that investment in urban infrastructure be increased from 0.7 per cent of the gross domestic product GDP in 2011-12 to 1.1 per cent by 2031-32.

Noting that the overall economic growth of the country depends on urbanisation and the growth of cities,the panel says the Centre should abolish octroi and entry tax in states.

The committee has said Indias urban population will touch 600 million by 2031 and this increase will not simply be due to migration or a shift of demographics.

It says the number of metropolitan cities with a population of one million and above has already increased from 35 in 2001 to 50 in 2011 and is expected to increase to 87 by 2031. Noting that while the JNNURM brought reforms to a so-far-neglected sector,the report says the progress in implementing these reforms has,however,been slow.

The committee has recommended that the scheme be relaunched as the new and improved JNNURM and that it should cover all cities big and small with an investment of 0.25 per cent of the GDP for 20 years.

Smaller cities and towns should be treated differently from larger cities and metropolises,says the report. For municipal corporations and municipalities,in addition to a regular window,a special window should be created specifically for projects that could be financed and executed through the PPP route. The committee has proposed setting up of urban utility regulators for water and sewerage and other such facilities,a local body ombudsman for dispute resolution and local fund audit commission for independent audits. It has also recommended setting up of five Indian Institutes of Urban Management involving the Centre,state governments and the private sector.

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To develop human resources,the committee has recommended the training of 300 officers from the Indian Administrative Services and other central services as urban specialists.

Investment in urban infrastructure over 20 years is estimated at Rs 392 lakh crore at 2009-10 prices.