Constraints in execution capacity impacts JNNURM projects

New Delhi, June 6 (UNI) The implementing agencies of the ambitious Jawaharlal Nehru Urban Renewal Mission(JNNURM) have reported constraints in the execution capacity for the projects.

This came to light during a meeting of the representatives of mega cities' corporations, banks, apex industries' organisations and state governments, held to take stock of the implementation of the Mission projects in the mega cities of Delhi, Mumbai, Ahmedabad, Bangalore, Chennai, Kolkata, and Hyderabad.

Considering that about Rs 26,500 crore worth of projects were now being taken up in the mega cities, the conference delineated on the magnitude of contracting ability required in the execution of these projects.

The cities representatives underlined the need to attract large engineering firms to ensure timely execution of projects.

The engineering firm representatives felt that tender systems have to be standardised to eliminate uncertainties.

The participants laid emphasis on moving further to the Public Private Parternship model in providing urban infrastructure.

Citing the success of the Water supply project in Latur (Maharashtra) where private participation has been successful, they said cities should list the projects in which, the PPP model was possible as soon as possible.

JNNURM, which is the country's flagship programme for urban local bodies, focuses on urban infrastructure improvement and provision of basic services for the poor with a focus on 63 mission cities (with population of 120.6 million). A related programme is covering the remaining 5098 cities and towns of India.

The conference has prepared a subsidised interest rate regime for financing viable urban infrastructure projects by banks and financial institutions.

The proposed Urban Infrastructure Fund, which the Ministry of Urban Development was proposing, could be an effective vehicle for multinational financial institutions, national financial institutions and banks to earmark more resources for urban infrastructure projects.

The Secretary, Ministry of Urban Development has constituted groups to coordinate with the banks, look at the possibility of standardising tender related issues and improve the pace of implementation.

The projected investment requirement as per City Development Plans drawn by each city sector wise is as follows: Rs. 81,418 crore for 7 mega cities and Rs. 55973 crore for remaining 56 cities for Urban Transport Rs. 40,062 crore for all 63 cities to improve water supply Rs. 33,324 crore for sewage, Rs. 20,100 crore for drainage Rs. 56,649 crore for basic services for the urban poor "If this type of investment requirement is to be met, the Central Government's share in the form of grants to states will have to be something like Rs. 1,35,000 crore. The States and local bodies will have to find the balance amount. Here is a challenge to our Government, local bodies and banks and financial instructions," said M Ramachandran, Secretary, Urban Development Ministry, who chaired the conference.

UNI