Delays in JNNURM projects have caused cost overruns: Government

Government today admitted to "delay" in completion of some projects under some components of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in few states, which has resulted in cost overruns.

In a written reply in Rajya Sabha, Minister of State for Housing and Urban Poverty Alleviation Babul Supriyo said the delays have been due to reluctance of slum dwellers to shift temporarily and non-availability of encumbrance free land.

"There has been some delay in completing some projects under Basic Services to the Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP)and Rajiv Awas components of JNNURM resulting in cost overruns due to reluctance of slum dwellers to shift temporarily in case on in-situ development of project and non-availability of encumbrance free land," Supriyo said.

He was a replying to a question on the current status of BSUP and IHSDP components of JNNURM and Rajiv Awas Yojana in various states and whether there has been time and cost overruns in many of these projects.

The Minister said that states and Union territories have been asked to complete the projects as early as possible within the extended Mission period of the JNNURM, that is, March 31, 2017, and to bear any cost overrun in these.

He informed that under these schemes, a total of 1,695 projects for construction of 13,92,589 houses at a cost of Rs 40,536.45 crore have been approved. Of these, 9,91,454 houses have been completed.

The JNNURM scheme was launched by UPA government in 2005, envisaging a total investment of over USD 20 billion over seven years and aimed at improving the quality of life and infrastructure in cities. The scheme was replaced by the NDA government with schemes like AMRUT and Smart City Mission.