Jawaharlal Nehru National Urban Renewal Mission

The JNNURM was launched in 2005 as the first flagship scheme of this Ministry. JNNURM implemented by MoHUPA has two components e.g. Basic Services for Urban poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP) which aimed at integrated development of slums through projects for providing shelter, basic services and other related civic amenities with a view to providing utilities to the urban poor.
The Mission was initially for a seven year period i.e. up to March 2012 which was extended upto March 2014 for completion of the already approved projects. During March 2013, the Mission period was extended by one more year i.e. upto March 2015 to complete ongoing works. 65 Mission Cities identified based on urban population (Census 2001), cultural and tourist importance was covered under BSUP and the remaining cities were covered under IHSDP (887).

Under BSUP, project cost is shared in the ratio of 50:50 for cities with population more than 1million (as per Census 2001), 80:20 for other smaller Mission Cities and 90:10 for North Eastern and Special category States. Entire cost of construction of Dwelling Units (DUs) and associated infrastructure was shared as per the above mentioned sharing pattern without any limitation. Under IHSDP, project cost is shared in the ratio of 80:20 for remaining smaller cities and 90:10 for North Eastern and Special Category States. Cost ceiling of Rs. 1 lakh per DU including cost of infrastructure was applicable for projects taken up under IHSDP Scheme.

The two components of JnNURM were mandated to pursue 3 key pro-poor reforms, namely (a) earmarking of 25% of municipal budget for the urban poor for provision of basic services including affordable housing to the urban poor; (b) implementation of 7- Point Charter, namely provision of land tenure, affordable housing, water, sanitation, education, health and social security to the poor in a time-bound manner ensuring convergence with other programmes and (c) reservation of 25% of developed land in all housing projects, public or private, critical for slum improvement.


December, 2005 

Government of India Ministry of Urban Development 
New Delhi 


1. Need for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) 

As per 2001 population census 285.35 million people reside in urban areas. It constitutes 27.8% of the total population of the country. In post- independence era while population of India has grown three times, the urban population has grown five times. The rising urban population has also given rise to increase in the number of urban poor. As per 2001 estimates, the slum population is estimated to be 61.8 million. The ever increasing number of slum dwellers causes tremendous pressure on urban basic services and infrastructure. In order to cope with massive problems that have emerged as a result of rapid urban growth, it has become imperative to draw up a coherent urbanization policy/strategy to implement projects in select cities on mission mode. 

2. Mission Statement 

Reforms driven, fast track, planned development of identified cities with focus on efficiency in urban infrastructure/services delivery mechanism, community participation and accountability of Urban Local Bodies (ULBs)/Parastatals towards citizens. 

3. Mission Strategy 
  • Planned urban perspective frameworks for a period of 20-25 years (with 5 yearly updates) indicating policies, programmes and strategies of meeting fund requirements would be prepared by every identified city. This perspective plan would be followed by preparation of Development Plans integrating land use with services, urban transport and environment management for every five year plan period. 
  • Cities/Urban Agglomerations/Parastatals will be required to prepare Detailed Project Reports for undertaking projects under identified areas. 
  • Private Sector Participation in development, management and financing of Urban Infrastructure would be clearly delineated. 
  • Funds for the identified cities would be released to the designated State Nodal Agency, which in turn would leverage, to the extent feasible, additional resources from the financial institutions/private sector/capital market. 
  • Funds from Central and State Government will flow directly to the nodal agency designated by the State, as grant. The nodal agency will disburse central assistance to ULBs or para-statal agencies as the case may be, as soft loan or grant-cum-loan or grant. 
  • A revolving fund will be created to meet the operation and maintenance costs of the assets created under the Mission. 
4. Mission Objectives 
  • Focussed attention to integrated development of infrastructural services in the cities covered under the Mission. 
  • Secure effective linkages between asset creation and asset management so that the infrastructural services created in the cities are not only maintained efficiently but also become self-sustaining over time. 
  • Ensure adequate investment of funds to fulfill deficiencies in the urban infrastructural services. 
  • Planned development of identified cities including peri-urban areas, out growths, urban corridors, so that urbanization takes place in a dispersed manner. 
  • Scale up delivery of civic amenities and provision of utilities with emphasis on universal access to urban poor. 
  • To take up urban renewal programme, i.e., re-development of inner (old) cities area to reduce congestion. 
5. Duration of the Mission 

The duration of the Mission would be seven years beginning from 2005- 06. During this period, the Mission will seek to ensure sustainable development of select cities. An evaluation of the experience of implementation of the Mission would be undertaken before the commencement of Eleventh Five Year Plan and if necessary, the programme calibrated suitably. 

6. Scope of Mission Programme 

The main thrust of the sub-Mission on Urban Infrastructure and Governance will be on major infrastructure projects relating to water supply including sanitation, sewerage, solid waste management, road network, urban transport and redevelopment of inner (old) city areas with a view to upgrading infrastructure therein, shifting industrial/commercial establishments to conforming areas, etc. 

7. Mission Components 

7.1 Admissible Components - Projects pertaining to the following will be admissible under the Sub-Mission on Urban Infrastructure and Governance. 
  • Urban Renewal i.e redevelopment of inner (old) city areas [this would include items like widening of narrow streets, shifting of industrial/commercial establishments from non-conforming to `conforming’ areas to reduce congestion, replacement of old and worn-out water pipes by new/higher capacity ones, renewal of sewerage/drainage/solid waste disposal systems, etc]. 
  • Water Supply (including desalination plants) and sanitation 
  • Sewerage and Solid Waste Management 
  • Construction and improvement of drains/storm water drains 
  • Urban Transport, including roads, highways/expressways/ MRTS/metro projects. 
  • Parking lots/spaces on Public Private Partnership basis 
  • Development of heritage areas 
  • Prevention & rehabilitation of soil erosion/landslides only in case of Special Category States where such problems are common and 
  • Preservation of water bodies. 
NOTE: Land cost will not be financed except for acquisition of private land for schemes/ projects in the North Eastern States and hilly States viz Himachal Pradesh, Uttaranchal and Jammu & Kashmir. 

7.2 Inadmissible Components - Projects pertaining to the following will not be admissible under the Sub-Mission. 
  • Power 
  • Telecom 
  • Health 
  • Education 
  • Wage employment programme & staff component 
8 Mission Coverage 

Keeping in view the paucity of resources and administrative constraints in taking up all cities and towns under this intensive urban infrastructure improvement programme, it is suggested that under JNNURM only selected cities/ Urban Agglomerations (UAs) as per 2001 Census will be taken up, as per norms/criteria mentioned below: 
A Cities/UAs with 4 million plus population as per 2001 census 07
B Cities/UAs with 1 million plus but less than 4 million population as per 2001 Census 28
C Selected Cities/UAs (State Capitals and other cities/UA of religious/historic and touristic importance) 28
Complete list of cities/Urban Agglomeration/towns covered under the Mission are given at 
Annexure – I.

8.1        The cities should have elected bodies in position.

9. Urban Reforms

9.1      The main thrust of the revised strategy of urban renewal is to ensure improvement in urban governance so that Urban Local Bodies (ULBs) and para- statal agencies become financially sound with enhanced credit rating and ability to access market capital for undertaking new programmes and expansion of services. In this improved environment, public-private participation models for provisioning of various services would also become feasible. To achieve this objective, State Governments, Urban Local Bodies and para-statal agencies will be required to accept implementation of an agenda of reforms. The proposed reforms shall broadly fall into two categories:-
  • i) Mandatory reforms
  • ii) Optional reforms
List of mandatory and optional reforms is at Annexure-II.

9.2    All the mandatory and optional reforms shall be implemented by the State/ULB/Para-Statals within the mission period.

9.3   However, for schemes relating to water supply and sanitation, the following State level mandatory reforms may be treated as optional reforms:-
  • a. Repeal of Urban Land Ceiling and Regulation Act;
  • b. Amendment of Rent Control Act;
10. Memorandum of Agreement (MOA)

The State Governments and the ULBs including para-statal agencies where necessary would execute Memorandum of Agreement (MoA) with Government of India indicating their commitment to implement identified reforms. MoA would spell out specific milestones to be achieved for each item of reform. Signing of MoA will be a necessary condition to access Central assistance. This tripartite MoA would be submitted along with Detailed Project Reports (DPRs). The central assistance will be predicated upon the State Governments and the ULBs/Parastatals agreeing to the reforms platform.

11. National Steering Group

11.1     To steer the Mission objectives, a National Steering Group will be constituted The composition of the National Steering Group will be as follows:
  •  Minister of Urban Development          Chairman 
  •  Minister for UEPA                                Co-Chairperson 
  •  Secretary (UEPA)                                  Member 
  •  Secretary, Planning Commission         Member 
  •  Secretary (Expenditure)                       Member 
  •  National Technical Advisor                  Member 
  •  Secretary (Urban Development)          Member-Convener 
To steer the Mission objectives, a National Steering Group will be constituted The composition of the National Steering Group will be as follows:

11.2       National Steering Group may add additional reforms to the identified reforms.

11.3      National Steering Group may consider addition or deletion of cities/towns under Category-C (other than State capitals) based on the suggestions received from State Governments. The number of cities under the Mission shall, however, remain around 60.

12. Mission Directorate

There shall be a Mission Directorate under the charge of Joint Secretary in Ministry of Urban Development for ensuring effective coordination with State Governments and other agencies for expeditiously processing the project proposals. National Technical Advisor shall be one of the Members of the Directorate. The Mission Directorate will process the project proposals received from State Governments and place them before Central Sanctioning and Monitoring Committee for consideration.

13. Appraisal of Projects

13.1    Detailed Project Reports would be scrutinized by the Technical wings of the Ministry or if necessary by specialized/technical agencies before placing such proposals for sanction by Central Sanctioning and Monitoring Committee.

13.2    Depending upon the cost of the projects under the Sub-Mission on BSUP, Ministry of Urban Employment and Poverty Alleviation will ensure approval of competent authorities as envisaged in Ministry of Finance (Department of Expenditure) O.M.No. 1(26)-E.II(A)/2002 dated 21.12.2002 as amended from time to time.

14. Sanction of projects under the Mission

14.1      There would be a Central Sanctioning & Monitoring Committee in the Ministry of Urban Development for sanctioning the projects submitted by identified states, which would comprise-
  • Secretary (UD)                                                              Chairman 
  • Secretary (UEPA)                                                         Member 
  • Principal Adviser (HUD), Planning Commission     Member 
  • Joint Secretary & FA                                                   Member 
  • Chief Planner, TCPO                                                  Member 
  • Adviser, CPHEEO                                                       Member 
  • CMD, HUDCO                                                            Member 
  • Joint Secretary (UD)                                                   Member-Secretary 
There would be a Central Sanctioning & Monitoring Committee in the Ministry of Urban Development for sanctioning the projects submitted by identified states, which would comprise-

14.2      The Committee would assign higher priority in sanctioning projects of urban renewal, water supply including sanitation, sewerage, solid waste management, drainage, urban transport including roads.

14.3      Projects with private sector participation will be given priority over projects to be executed by ULBs/Parastatals themselves, as this will help leverage private capital and bring in efficiencies.

15 Advisory Group

In addition, at the National level, an Advisory Group would be constituted for the Mission/sub-Mission. The Group would be headed by a Technical Adviser drawn from civil society with proven experience in mobilizing collective action for reforms in urban governance. The group would enable the Mission to create similar voluntary Technical Corps in each city identified for the Mission/sub- Mission.. It would encourage private sector participation, citizen’s involvement in urban governance at grass root level and transparency in municipal governance.

16. State Level Steering Committee

     At the State level, a Steering Committee would be set up by each State for deciding and prioritizing the projects under the Mission. The Steering Committee would comprise:

        1.  Chief Minister of the State/
             Minister of Urban Development/Minister of Housing      -       Chairman 
        2.  Minister, Urban Development                                             -       Vice-Chairman 
        3   Minister, Housing                                                                 -        Member 
        4.  Concerned Mayors/Chairpersons of Urban 
             Local Bodies (ULBs)                                                             -       Member 
        5.  MPs/MLAs (to be decided by the State)                             -       Member 
        6.  Secretary (PHE)                                                                    -       Member 
        7.  Secretary (MA)                                                                      -      Member 
        8.  Secretary (Finance)                                                               -      Member 

At the State level, a Steering Committee would be set up by each State for deciding and prioritizing the projects under the Mission. The Steering Committee would comprise:
         9.   Secretary (Housing)                                                                  -      Member 
         10. Secretary (UD)                                                                          -      Member-Secretary 

17. Nodal Agency

The Steering Committee at the State Level would be assisted by the nodal agency identified by the State Government for implementation of JNNURM. The nodal agency would, inter-alia, perform following functions:-
  • a. Appraisal of projects submitted by ULBs/Para-statal agencies;
  • b. Obtaining sanction of State Level Steering Committee for seeking assistance from Central Government under JNNURM;
  • c. Management of grants received from Central and State Government;
  • d. Release of funds to ULBs/Para-statal agencies either as grant, or soft loan or grant cum loan.
  • e. Management of Revolving Fund
  • f. Monitoring physical and financial progress of sanctioned projects;
  • g. Monitoring implementation of reform as entered into MoA.
18. Financing Pattern

18.1        Financing of projects under the Mission would be as under:
Category of Cities/Towns/UAs
ULB or Para-Statal Share/Loan from Financial Institutions
Centre State
Cities/UAs with 4 million plus population as per 2001 census 35 % 15 % 50 %
Cities/UAs with million plus but less than 4 million population as per 2001 census 50% 20% 30%
Cities/towns/UAs in North Eastern States and Jammu & Kashmir 90% 10% -
Cities/UAs other than those mentioned above 80% 10% 10%
For setting up de-salination plants within 20 Kms. from sea-shore and other urban areas predominantly facing water scarcity due to brackish water and non-availability of surface source. 80% 10% 10%

18.2      Central assistance, as aforesaid, would be the maximum assistance available under JNNURM.

18.3          In case any JNNURM project is also approved as Externally Aided Project (EAP), the EAP funds can be passed through as ACA to the State Government as funds contributed by State/ULBs/FIs and JNNURM funds can be used as GoI contribution.

18.4          If necessary, internal resources of implementing agencies, Member of Parliament Local Area Development and Member of Legislative Assembly Local Area Development funds may be substituted for institutional finance.

18.5         In case of Urban Transport projects, the standard pattern of assistance of 35% will not apply. The CCEA, while considering any such project proposal, may decide the level of equity and/or loan to be provided by the Central Government.

18.6        In order to prepare City Development Plan (CDP), Detailed Project Reports (DPRs), training & capacity building, community participation, information, education and communication (IEC), a provision of 5% of the Central grant or the actual requirement, whichever is less, may be kept for sanction to cities/towns covered under the Mission.

18.7             In addition, not more than 5% of the Central grant or the actual requirement, whichever is less, may be used for Administrative and Other Expenses (A&OE) by the States.

19. Release of Funds

19.1            Funds would be released as Additional Central Assistance (100% Central Grant in respect of central share) to the State Government or its designated State Level Nodal Agency. The nodal agency will disburse central assistance to ULBs or para-statal agencies as the case may be as soft loan or grant-cum-loan or grant. However, grant-cum-loan may be sanctioned in such a manner that 25% of central and state grant put together is recovered and ploughed into Revolving Fund to leverage market funds for financing of further investment in infrastructure projects. At the end of the Mission period, the Revolving Fund may be graduated to a State Urban Infrastructure Fund.

19.2      The first installment of 25% will be released on signing of Memorandum of Agreement by the State Government/ULB/Para-Statal for implementation of JNNURM projects. The balance amount of assistance shall be released as far as possible in three instalments upon receipt of Utilisation Certificates to the extent of 70% of the grants (Central & State) and subject to achievement of milestones agreed for implementation of mandatory and optional reforms at the State and ULB/Parastatal level as envisaged in the Memorandum of Agreement.

20. Outcomes of Jawaharlal Nehru National Urban Renewal Mission

On completion of the Mission period of seven years, it is expected that ULBs/Parastatals will achieve the following outcomes:-
  • (a) Modern and transparent budgeting, accounting, financial management systems designed and adopted for all urban services and governance functions
  • (b) City-wide framework for planning and governance will be established and become operational
  • (c) All urban residents will be able to obtain access to a basic level of urban services
  • (d) Financially self-sustaining agencies for urban governance and service delivery will be established, through reforms to major revenue instruments
  • (e) Local services and governance will be conducted in a manner that is transparent and accountable to citizens
  • (f) e-Governance applications will be introduced in core functions of ULBs/Parastatals resulting in reduced cost and time of service delivery processes.
21. Monitoring progress of projects sanctioned under the Mission
  • Ministry of Urban Development will periodically monitor the scheme through designated Officers of this Ministry for each State/ UT.
  • State level nodal agency would send quarterly progress report to the Ministry of Urban Development.
  • Upon completion of the project, nodal agency through the State Government would submit completion report in this regard.
  • Central Sanctioning & Monitoring Committee may meet as often as required to sanction and review/monitor the progress of projects sanctioned under the Mission.
  • Monitoring of progress of implementation of reforms would be outsourced to specialized/technical agencies
List of identified cities

Name of the State Population(in lakh)
a) Mega Cities/UAs
1. Delhi Delhi 128.77
2. Greater Mumbai Maharashtra 164.34
3. Ahmedabad Gujarat
4. Bangalore Karnataka
5. Chennai Tamil Nadu
6. Kolkata West Bengal 132.06
7. Hyderabad Andhra Pradesh
b) Million-plus Cities/UAs
1. Patna Bihar
2. Faridabad Haryana
3. Bhopal Madhya Pradesh
4. Ludhiana Punjab
5. Jaipur Rajasthan
6. Lucknow Uttar Pradesh
7. Madurai Tamil Nadu
8. Nashik Maharashtra
9. Pune Maharashtra
10. Cochin Kerala
11. Varanasi Uttar Pradesh
12. Agra Uttar Pradesh
13. Amritsar Punjab
14. Visakhapatnam Andhra Pradesh
15. Vadodara Gujarat
16. Surat Gujarat
17. Kanpur Uttar Pradesh
18. Nagpur Maharashtra
19. Coimbatore Tamil Nadu
20. Meerut Uttar Pradesh
21. Jabalpur Madhya Pradesh
22. Jamshedpur Jharkhand
23. Asansol West Bengal
24. Allahabad Uttar Pradesh
25. Vijayawada Andhra Pradesh
26. Rajkot Gujarat
27. Dhanbad Jharkhand
28. Indore Madhya Pradesh
c) Identified cities with less than one million population*
1. Guwahati Assam
2. Itanagar Arunachal Pradesh
3. Jammu Jammu & Kashmir
4. Raipur Chhattisgarh
5. Panaji Goa
6. Shimla Himachal Pradesh
7. Ranchi Jharkhand
8. Thiruvananthapuram Kerala
9. Imphal Manipur
10. Shillong Meghalaya
11. Aizawal Mizoram
12. Kohima Nagaland
13. Bhubaneswar Orissa
14. Gangtok Sikkim
15. Agartala Tripura
16. Dehradun Uttaranchal
17. Bodh Gaya Bihar
18. Ujjain Madhya Pradesh
19. Puri Orissa
20. Ajmer-Pushkar Rajasthan
21. Nainital Uttaranchal
22. Mysore Karnataka
23. Pondicherry Pondicherry
24. Chandigarh Punjab & Haryana
25. Srinagar Jammu & Kashmir
26. Mathura Uttar Pradesh
27. Haridwar Uttaranchal
28. Nanded Maharashtra
Note: National Steering Group may consider addition or deletion of cities/ UAs/towns under Category-C (other than State Capitals based on the suggestions received from State Governments. The number of cities under the Mission shall, however, remain around 60.



There will be two sets of mandatory reforms. Core reforms at ULB/Parastatal level aims at process re-engineering through deployment of technology to enable more efficient, reliable and timely services in a transparent manner. The other set of reforms are framework related at State level.

Urban Local Body / Parastatal level Reforms
  • Adoption of modern, accrual-based double entry system of accounting in Urban Local Bodies/Parastatals
  • Introduction of system of e-governance using IT applications like, GIS and MIS for various services provided by ULBs/Parastatals.
  • Reform of property tax with GIS, so that it becomes major source of revenue for Urban Local Bodies (ULBs) and arrangements for its effective implementation so that collection efficiency reaches at least 85% within next seven years.
  • Levy of reasonable user charges by ULBs/Parastatals with the objective that full cost of operation and maintenance or recurring cost is collected within next seven years. However, cities/towns in North East and other special category States may recover at least 50% of operation & maintenance charges initially. These cities/towns should graduate to full O&M cost recovery in a phased manner.
  • Internal earmarking within local body, budgets for basic services to the urban poor.
  • Provision of basic services to urban poor including security of tenure at affordable prices, improved housing, water supply, sanitation and ensuing delivery of other already existing universal services of the Government for education, health and social security.
1.2 State Level Reforms

Implementation of decentralization measures as envisaged in 74th Constitution Amendment Act. States should ensure meaningful association/engagement of ULBs in planning function of para-statals as well as delivery of services to the citizens.
  • Repeal of Urban Land Ceiling and Regulation Act.
  • Reform of Rent Control Laws balancing the interests of landlords and tenants.
  • Rationalisation of Stamp Duty to bring it down to no more than 5% within next seven years.
  • Enactment of Public Disclosure Law to ensure preparation of medium- term fiscal plan of ULBs/Parastatals and release of quarterly performance information to all stakeholders.
  • Enactment of Community Participation Law to institutionalize citizen participation and introducing the concept of Area Sabha in urban areas.
  • Assigning or associating elected ULBs with “city planning function”. Over a period of seven years, transferring all special agencies that deliver civic services in urban areas to ULBs and creating accountability platforms for all urban civic service providers in transition.
Note: In respect of schemes relating to water supply and sanitation, the under mentioned State level mandatory reforms may be taken as optional reforms:-
  • Repeal of Urban Land Ceiling Act
  • Reform of Rent Control Act
2. OPTIONAL REFORMS (Common to State and ULBs/Para-statals)
  • Revision of bye-laws to streamline the approval process for construction of buildings, development of sites etc.
  • Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes.
  • Introduction of Property Title Certification System in ULBs.
  • Earmarking at least 20-25% of developed land in all housing projects (both Public and Private Agencies) for EWS/LIG category with a system of cross subsidization.
  • Introduction of computerized process of registration of land and property. Revision of bye-laws to make rain water harvesting mandatory in all buildings and adoption of water conservation measures.
  • Bye-laws for reuse of recycled water.
  • Administrative reforms i.e. reduction in establishment by bringing out voluntary retirement schemes, non-filling up of posts falling vacant due to retirement etc., and achieving specified milestones in this regard.
  • Structural reforms
  • Encouraging Public Private Partnership
NOTE: Any two optional reforms to be implemented together by State & ULBs/Parastatals in each year.