PM launches AMRUT, Smart Cities Mission and Housing for All

New Delhi

The Prime Minister, Shri Narendra Modi, today said that for the first time in the country, the people, and the urban leadership would play the pivotal role in deciding the future course of their cities. He was speaking at the launch of three major urban development initiatives: AMRUT (Atal Mission for Rejuvenation and Urban Transformation); Smart Cities Mission; and Housing for All (Urban), at Vigyan Bhawan in New Delhi.

The Prime Minister explained that for the first time in India, a challenge was being floated, in which the citizens of urban India could contribute in the formulation of development visions of their cities. Those cities which were able to competitively meet the required parameters would be developed as smart cities. Hence, the Prime Minister said, this competitive mechanism would end the top-down approach, and lead to people-centric urban development.

The Prime Minister said these urban development schemes were not prepared by the Government alone, but involved perhaps the biggest consultation exercise ever taken by the Union Government, involving all stakeholders and examining global best practices. The Prime Minister gave a simple vision of a smart city, as one which was a step or two ahead of people’s aspirations. Technology, transportation, energy efficiency, walk-to-work, cycling etc were some elements mentioned by the Prime Minister. The Prime Minister said the Government is sensitive to consumer protection, and towards ending undue harassment, especially with regard to housing. He said one Bill towards this end has already been introduced in Parliament.

Stating that public representatives and leaders are remembered by the good work they did in their terms, the Prime Minister urged urban leaders to contribute to doing something for the good of the people. He said the people assembled in Vigyan Bhawan today, had on them the collective responsibility for better quality of life for 40 percent of India’s population that either lived in cities, or were dependent on cities for their livelihood. He said the aspirations of migrants from rural areas, and slum dwellers, have to be balanced with the changing global environment. He said ensuring a good life for them is our responsibility. In this context, this 2-day workshop presented a good opportunity to work out strategies for the future.

Recalling the Emergency, which was imposed 40 years ago on this day, the Prime Minister said the dreams and aspirations that inspired people to struggle against the emergency, should be a beacon for this gathering. He said all schemes for urban development should move forward based on people’s participation.

The Prime Minister said that urbanization should be viewed as an opportunity, and urban centres should be viewed as growth engines. He said if this had been done 25-30 years ago, it would have led to good results today, but better late than never. He said schemes which had a clear vision and were people-centric, were the need of the hour. He called for replication of best practices from across the country. In particular, the Prime Minister mentioned Hyderabad’s tax collection system, Karnataka’s efforts for solid waste management, and Chhattisgarh’s work to eliminate open defecation.

Mentioning the challenge of rising population, he said all possible avenues should be explored to find the resources for urban development.

The Prime Minister said a House was a turning point in the lives of poor, which led towards a better life. He said the Government’s effort was to not just provide a house, but to provide the right environment to live life to the fullest.

Citing the existing housing shortage of 2 crore units, the Prime Minister said that India was completing 75 years of independence in 2022, and by then, it was our responsibility to provide a house for everyone.

The Prime Minister said today there is a lack of holistic vision about urban planning, and expansion is driven not by the administrators of a city, but by property developers. Through AMRUT, the aim of the Government is to give cities themselves the chance to plan their future growth.

The Prime Minister appreciated people for their interest and work in the Swachh Bharat initiative, as well as the positive role played by media in generating awareness.

The Prime Minister said urban and rural development in our country should be complimentary. One way of doing this was to ensure waste water management in urban areas, so that the treated water could be returned to rural areas for irrigation. Similarly solid waste management could generate compost which could act as organic fertiliser for the surrounding rural areas.

The Prime Minister released logos, and taglines for AMRUT and Smart Cities Mission; and guidelines for AMRUT, Smart Cities Mission and Housing for All (Urban). The Prime Minister also visited an exhibition on best practices in urban development.

The Minister for Urban Development Shri Venkaiah Naidu, and the Minister of State for Urban Development Shri Babul Supriyo, the Chief Minister of Maharashtra Shri Devendra Fadnavis, the Chief Minister of Haryana Shri Manohar Lal Khattar, and the Deputy Chief Minister of Jammu and Kashmir, Shri Nirmal Kumar Singh were present on the occasion.


No role for Central Government in sanctioning of projects under new Urban Missions

– Operational Guidelines prescribe objective, equitable criteria for selection of Smart, AMRUT Cities and allocation of of funds to States

– Action Plans for resource mobilization and Urban Reforms, Citizen participation made mandatory

– Delay in fund transfer to Urban Local Bodies, diversion by States to be penalized

– Guidelines ensure timely execution projects to avoid JNNURM pitfalls

Based on the learnings of implementation of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) that ended up in sub-optimal physical and financial performance, the Central Government has radically overhauled the Operational Guidelines for implementation of Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All Mission in Urban Areas. The Guidelines released by Prime Minister Shri Narendra Modi at the launch of the three new urban missions here today allow the States and Union Territories full liberty and flexibility in formulation, approval and execution of projects under the three missions. The two urban ministries have sought to ensure timely sanction and execution and certainty of resources for various projects and participation of citizens in identifying development needs under the new urban schemes. Central Government has virtually withdrawn from the earlier practice of appraising and sanctioning individual projects, there by ending the scope for subjectivity and discretion.

The major new provisions incorporated in the Guidelines and common to all the three urban missions include:

1.Objective criteria for selection of cities and allocation of funds:

Potential Smart Cities and AMRUT cities are to be based on an objective and equitable criteria giving equal weightage to urban population and number of statutory cities in each State/UT. Housing Mission to be implemented in all the 4,041 statutory cities/towns.

For smart city development, each selected city will be provided central assistance of Rs.100 cr per year. Under AMRUT, allocation of funds will be as per urban population and number of cities/towns in each State/UT. Under Pradhan Mantri Awas Yojana in urban areas, it will be based on the number of urban poor and slum dwellers.

2.States/UTs to appraise and approve individual projects unlike in the past when urban ministries used to do so.

3.To avoid delays and non-completion of projects on account of lack of resources, States/UTs will now be required to firmly indicate resource tie ups under state level action plans.

4. To enhance urban governance, clear Action Plans for timely implementation of identified reforms need to be indicated.

5.Consultations with urban citizens made mandatory to ensure need based and bottom up planning of projects.

6. State level Action Plans to clearly indicate convergence with other central and state government schemes as appropriate for resource maximization.

7.PPP model shall be the main resource of resource mobilization.

8.Involvement of Members of Parliament and State Assemblies in formulation and monitoring of projects provided for.

Mission-wise Guidelines seeking better execution of projects are as below:


AMRUT

1.No projects without availability of land and all necessary clearences shall be included in the Mission by States/UTs.

2.States shall transfer funds to urban local bodies within 7 days of transfer by central government and no diversion of funds to be made failing which penal interest would be charged besides taking other adverse action by the centre.

3.Action Plans should provide for O&M costs for assets created for at least five years based on user charges.

4.Instead of penalizing States/ULBs for non-implementation of reforms by linking fund release with progress on reforms resulting in delays, the Guidelines now provide for incentivizing reforms by earmarking 10% of annual allocation to be allocated to good performers at the end of each year.

5.For water supply, sewerage, septage, storm water drains and urban transport, centre’s share to be in the range of 1/3 of project cost to 50%. States to mobilize the balance with its own share being not less than 20%.

6. A set of 11 Reforms to be implemented in four years including :Promoting e-governance, Improving collection of various taxes, fee and user charges, Augmenting double entry accounting, Constitution and professionalization of municipal cadre, Preparation of GIS based Master Plans, Devolution of funds and functionaries to urban local bodies, Review of Building By-laws, Setting up financial intermediaries for pooling and disbursement of resources, Credit Rating of urban local bodies, Energy and Water Audit and Achieving Swachh Bharat Milestones.

Smart Cities Mission

1.Central assistance to be used only for infrastructure projects which have larger public benfit

2.Minimum area norm for Retrofitting is 500 acres; for Redevelopment-50 acres; for Green Field projects-250 acres. This will be 50% for North-Eastern and Himalayan states.

3.Bench marks to be achieved include : 10% of energy needs to be met from renewable sources, 80% of building construction to be green and 35% of housing in green field projects to be for economically weaker sections.

4.Special Purpose Vehicles to be set up for implementation of smart city plans with 50:50 equity of States and Urban Local Bodies

5.An Inter-departmental Task Force to be set up to coordinate all aspects of smart city development

Pradhan Mantri Awas Yojana(Urban)

1.Ownership of houses to be in the name of woman or jointly with husband

2.Houses of 30 sq.mt carpet area to be built for EWS category. In case of non-availability States can relax with the consent of beneficiaries. States also can enhance the area while meeting the additional expenditure.

3.Central grant of Rs.one lakh on an average per house to be provided by the Central Government can be used by States for any slum redevelopment project in the state to make them viable.

4.Interest support @ 6.50% to be paid soon after sanction of loan to the beneficiary so as to bring down EMI .

5.Beneficiaries can submit Self-certificate/Affidavit as proof of income.

6.Under Affordable Housing in Partnership with Private and Public Sector, 35% of houses shall be for economically weaker sections and the minimum project size shall be above 250 houses.

7.Central Ministries/Agencies also to take up Slum Redevelopment Projects on their lands without charging for land and will be eligible for central grant.

8.Under In-situ Slum Redevelopment, Private developers to be chosen through open tendering and it is developers’ responsibility to provide transit accommodation during construction period. Private developers to be given only that much of land required for commercial viability of project.

All the three Missions would be implemented as Centrally Sponsored Schemes except Affordable Housing with Credit Linked Subsidy component. Share of States/UTs vary from one to the other. Under AMRUT, share of States shall not be less than 20% and under Smart Cities Mission, share of States/ULBs shall match that of central assistance and the rest to be mobilized by the States/UTs and ULBs. Under PMAY, it has been left to the States/UTs who would be required to mobilize the balance after centre’s share.