Three major urban development initiatives launched by the prime minister
GN Bureau | June 25, 2015
Prime minister Narendra Modi today (Thursday) unveiled people-centric urban development and launched three major urban development initiatives: Amrut (Atal Mission for Rejuvenation and Urban Transformation); Smart Cities Mission and Housing for All (Urban), at Vigyan Bhawan in New Delhi. The government is planning spend Rs4 lakh crore in next six years on these projects.
He said all schemes for urban development should move forward based on people's participation. Modi said that for the first time in the country, the people, and the urban leadership would play the pivotal role in deciding the future course of their cities.
Taking his theme of India further the prime minister said urban and rural development in our country should be complimentary. One way of doing this was to ensure waste water management in urban areas, so that the treated water could be returned to rural areas for irrigation. Similarly solid waste management could generate compost which could act as organic fertiliser for the surrounding rural areas.
The Prime Minister said that urbanization should be viewed as an opportunity, and urban centres should be viewed as growth engines. He said schemes which had a clear vision and were people-centric, were the need of the hour.
The prime minister gave a simple vision of a smart city, as one which was a step or two ahead of people's aspirations. Technology, transportation, energy efficiency, walk-to-work, cycling etc were some elements mentioned by the PM.
He said the people assembled in Vigyan Bhawan today, had on them the collective responsibility for better quality of life for 40 percent of India's population that either lived in cities, or were dependent on cities for their livelihood.
Recalling the Emergency, which was imposed 40 years ago on this day, the prime minister said the dreams and aspirations that inspired people to struggle against the emergency, should be a beacon for this gathering.
Modi said today there is a lack of holistic vision about urban planning, and expansion is driven not by the administrators of a city, but by property developers. Through AMRUT, the aim of the Government is to give cities themselves the chance to plan their future growth.
He also appreciated people for their interest in the Swachh Bharat initiative, as well as the positive role played by media in generating awareness.
The major new provisions incorporated in the Guidelines and common to all the three urban missions include:
1.Objective criteria for selection of cities and allocation of funds:
Potential Smart Cities and AMRUT cities are to be based on an objective and equitable criteria giving equal weightage to urban population and number of statutory cities in each State/UT. Housing Mission to be implemented in all the 4,041 statutory cities/towns.
For smart city development, each selected city will be provided central assistance of Rs.100 cr per year. Under AMRUT, allocation of funds will be as per urban population and number of cities/towns in each State/UT. Under Pradhan Mantri Awas Yojana in urban areas, it will be based on the number of urban poor and slum dwellers.
2.States/UTs to appraise and approve individual projects unlike in the past when urban ministries used to do so.
3.To avoid delays and non-completion of projects on account of lack of resources, States/UTs will now be required to firmly indicate resource tie ups under state level action plans.
4. To enhance urban governance, clear Action Plans for timely implementation of identified reforms need to be indicated.
5.Consultations with urban citizens made mandatory to ensure need based and bottom up planning of projects.
6. State level Action Plans to clearly indicate convergence with other central and state government schemes as appropriate for resource maximization.
7.PPP model shall be the main resource of resource mobilization.
8.Involvement of Members of Parliament and State Assemblies in formulation and monitoring of projects provided for.
Mission-wise Guidelines seeking better execution of projects are as below:
1.No projects without availability of land and all necessary clearences shall be included in the Mission by States/UTs.
2.States shall 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.
3.Action Plans should provide for O&M costs for assets created for at least five years based on user charges.
4.Instead of penalizing States/ULBs for non-implementation of reforms by linking fund release with progress on reforms resulting in delays, the Guidelines now provide for incentivizing reforms by earmarking 10% of annual allocation to be allocated to good performers at the end of each year.
5.For water supply, sewerage, septage, storm water drains and urban transport, centre’s share to be in the range of 1/3 of project cost to 50%. States to mobilize the balance with its own share being not less than 20%.
6. A set of 11 Reforms to be implemented in four years including :Promoting e-governance, Improving collection of various taxes, fee and user charges, Augmenting double entry accounting, Constitution and professionalization of municipal cadre, Preparation of GIS based Master Plans, Devolution of funds and functionaries to urban local bodies, Review of Building By-laws, Setting up financial intermediaries for pooling and disbursement of resources, Credit Rating of urban local bodies, Energy and Water Audit and Achieving Swachh Bharat Milestones.
Smart Cities Mission
1.Central assistance to be used only for infrastructure projects which have larger public benfit
2.Minimum area norm for Retrofitting is 500 acres; for Redevelopment-50 acres; for Green Field projects-250 acres. This will be 50% for North-Eastern and Himalayan states.
3.Bench marks to be achieved include : 10% of energy needs to be met from renewable sources, 80% of building construction to be green and 35% of housing in green field projects to be for economically weaker sections.
4.Special Purpose Vehicles to be set up for implementation of smart city plans with 50:50 equity of States and Urban Local Bodies
5.An Inter-departmental Task Force to be set up to coordinate all aspects of smart city development
Pradhan Mantri Awas Yojana(Urban)
1.Ownership of houses to be in the name of woman or jointly with husband
2.Houses of 30 sq.mt carpet area to be built for EWS category. In case of non-availability States can relax with the consent of beneficiaries. States also can enhance the area while meeting the additional expenditure.
3.Central grant of Rs.one lakh on an average per house to be provided by the Central Government can be used by States for any slum redevelopment project in the state to make them viable.
4.Interest support @ 6.50% to be paid soon after sanction of loan to the beneficiary so as to bring down EMI .
5.Beneficiaries can submit Self-certificate/Affidavit as proof of income.
6.Under Affordable Housing in Partnership with Private and Public Sector, 35% of houses shall be for economically weaker sections and the minimum project size shall be above 250 houses.
7.Central Ministries/Agencies also to take up Slum Redevelopment Projects on their lands without charging for land and will be eligible for central grant.
8.Under In-situ Slum Redevelopment, Private developers to be chosen through open tendering and it is developers’ responsibility to provide transit accommodation during construction period. Private developers to be given only that much of land required for commercial viability of project.
All the three Missions would be implemented as Centrally Sponsored Schemes except Affordable Housing with Credit Linked Subsidy component. Share of States/UTs vary from one to the other. Under AMRUT, share of States shall not be less than 20% and under Smart Cities Mission, share of States/ULBs shall match that of central assistance and the rest to be mobilized by the States/UTs and ULBs. Under PMAY, it has been left to the States/UTs who would be required to mobilize the balance after centre’s share.
Centrally sponsored schemes will now onwards run for a fixed period of time, thanks to a sunset date. An outcome review will also be carried out. In public policy, a sunset clause means that it shall cease to have effect after a specific date, unless further legislative/a
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