NEW DELHI: Prime Minister Manmohan Singh launched on Saturday a Rs. 1 lakh crore Jawaharlal Nehru National Urban Renewal Mission for integrated development of infrastructure services. The Mission makes it mandatory for the States and municipal bodies to undertake reforms to avail themselves of Central funds.

The Centre will initially give a grant-in-aid of Rs. 50,000 crores over seven years. The States will have to raise the rest of the funds from market borrowings. Initially, 63 cities, with over one million population, and 23 cities of religious and tourist interest, will be covered. Two sub-missions will focus on infrastructure, governance reform and basic services to the poor.

Dr. Singh said urbanisation was a "relentless process" that had to be factored into all development processes. "We are poised to have nearly 50 per cent of India living in cities by the early part of this century. Rapid urbanisation has brought in its wake proliferating slums, homelessness, urban poverty, crime, pollution and ecological damage which gives an idea of the challenge ahead."

The cities were not able to cope with the pressures of industrial development and growth of the service economy. "Unless remedial steps are taken, it could jeopardise the future."

An important element of urban development should be improvement of slums and provision of houses to the poor. "Options like giving the urban poor land rights at affordable rates may see an increase in private investment. We have to make the poor increasingly bankable. Property rights can also be used as a collateral for financing new investment in support of social development."

No shortage of funds

Hoping that the States would evolve programmes to attract investment, Dr. Singh said there was no shortage of finance in the infrastructure sector, especially if public-private partnerships were sought.

Minister for Urban Development S. Jaipal Reddy suggested the setting up of a task force, including members of civil society, to adopt appropriate strategies.

Home Minister Shivraj Patil, Chief Ministers and State Ministers were present.

Printer friendly page  
Send this article to Friends by E-Mail