Centre clears first batch of flagship urban projects

Centre clears first batch of flagship urban projects

The Urban Development Ministry has cleared the first batch of projects under the flagship Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for 89 cities worth Rs.2,786 crore.

• The States that are getting benefited from this push are Andhra Pradesh, Gujarat and Rajasthan.
• This is for the first time in India’s urban governance that the Urban Development Ministry is sending money to States in massive chunks so that the development projects are run without financial delays.
• This is also the first time that the Urban Development Ministry approved State level plans unlike the past practice of appraising and approving individual projects.
• The focus of these approved urban renewal projects would be on establishing infrastructure that could ensure adequate water supply and robust sewerage networks.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT):
AMRUT is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

• It adopts a project approach to ensure basic infrastructure services relating to water supply, sewerage, storm-water drains, transportation and development of green spaces and parks with special provision for meeting the needs of children.
• Under this mission, 10% of the budget allocation will be given to states and union territories as incentive based on the achievement of reforms during the previous year.
• It is being implemented in 500 locations with a population of one lakh and above.
• It would cover some cities situated on stems of main rivers; a few state capitals and important cities located in hilly areas, islands and tourist areas.
• Under this mission, states get the flexibility of designing schemes based on the needs of identified cities and in their execution and monitoring.
• States will only submit state annual action Plans to the centre for broad concurrence based on which funds will be released.
• Central assistance will be to the extent of 50% of project cost for cities and towns with a population of up to 10 lakhs and one-third of the project cost for those with a population of above 10 lakhs.
• Under the mission, states will transfer funds to urban local bodies within 7 days of transfer by central government and no diversion of funds to be made failing which penal interest would be charged besides taking other adverse action by the centre.