Non-compliant states to lose share in JNNURM

The states of Punjab, Bihar, Rajasthan and Delhi are on a sticky wicket as far as the utilisation of funds allocated under JNNURM (Jawaharlal Nehru National Urban Renewal Mission) is concerned.

According to sources in the Ministry of Housing and Urban Poverty Alleviation, these states might lose their share under the scheme if the funds are not drawn within a stipulated time.

The ministry is considering merging the JNNURM with the Rajiv Awas Yojna to streamline the utilisation of funds.

A senior official in the ministry told Business Stanadard that funds once allocated to a state cannot be diverted to any other state under JNNURM. However, there is such a provision under Rajiv Awas Yojna.

According to statistics available with the ministry, Punjab has drawn Rs 62 crore against an allocation of Rs 617 crore, Rajasthan has drawn Rs 500 crore against Rs 808 crore, Bihar has availed Rs 450 crore against 750 crore and Delhi has availed Rs 750 crore against Rs 1,481 crore since the implementation of scheme.

Punjab is at the bottom of the state tally.

On the other hand other states such as Andhra Pradesh, Gujarat and Maharashtra have already exhausted the funds earmarked for them. They have also asked the ministry for another round of fund allocation and each state is ready with project proposals worth over Rs 7,000 cr, he added.

Keeping in mind the enthusiasm and preparedness of the compliant states, the ministry is in a frame of mind to find a solution to clear the backlog of funds.

The ministry is taking a serious note of the reasons quoted for the delay in implementation. According to Union Minister of Housing and Urban Poverty Alleviation Kumari Selja, the availability of land in urban pockets is a challenge for the all stakeholder states. So this should not be raised as an issue by the recalciterant states.

The government of India launched JNNURM on December 3, 2005, for seven years with a total planned investment of Rs 1,00,000 crore, and with a committed central government share of Rs 50,000 crore. The states, along with the urban local bodies, are required to cough up the other half.The states in north India and some special categary states avail 80 per cent funding under this.

Roughly 800,000 houses are to be constructed under this ambitious scheme of the government of India to rehabilitate the urban slum dwellers in the select cities across India. Of this, 280,000 have been constructed and about 500,000 are under various stages of production.