Govt plans to launch new Urban development mission during 12th Plan

New Delhi: The Plan panel today said the government is working on a new Jawaharlal Nehru National Urban Renewal Mission (JNNURM) during the 12th Plan, aiming to fast track infrastructure development in cities.

“In the 11th Five Year Plan we had the JNNURM. We now think that there is need for a new JNNURM. The details have not been finalised yet,” Planning Commission Deputy Chairman Montek Singh Ahluwalia said while addressing the Economic Editors conference here.

“A new JNNURM is required for urban areas,” he said.

The National Development Council (NDC), headed by Prime Minister Manmohan Singh, had earlier set up a committee chaired by Urban Development Minister Kamal Nath, which was asked to give recommendations regarding initiatives to be taken in this regard during the 12th Plan that begins in April next year.

“Plan panel member Arun Maira is working closely with Kamal Nath and we hope that by the time the next Plan is finalised there will be some good suggestions regarding improvement in urbanisation so that we can also mobilise the required resources,” Ahluwalia said.

The Deputy Chairman said the resources for urban development cannot solely come from the central government.

“For meeting the needs of infrastructure, charges in urban areas and user charges could be levied. Or it could be done by means of public-private partnership and on the basis of leveraging land value.

“Details in this regard will be known by the time the 12th Plan is approved,” Ahluwalia said.

An expert committee on urban infrastructure had in March this year recommended a new improved JNNURM, along with abolition of entry tax into states and increased investment in urban infrastructure.

The committee, headed by noted economists Isher Judge Ahluwalia, had submitted its report to Nath and Minister of Housing and Urban Poverty Alleviation Kumari Selja.

It had 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 depended on urbanisation and the growth of cities, the committee had suggested the Centre abolish octroi and entry tax in states.

The committee has said India’s urban population will touch 600 million by 2031 and this increase will not be just due to migration or demographic shift.

JNNURM, launched in December 2005, is a massive city modernisation scheme launched by the central government and envisages a total investment of over USD 20 billion in seven years.

PTI