AMRUT. Flagship Program. October 2015

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1 Flagship Program October 2015 AMRUT On 25 th June 2015, Government of India (GoI) had launched two major projects for urban development; Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Smart City Scheme (SCS). AMRUT aims to improve, the existing basic infrastructure services in 500 selected cities/towns. And Smart City Scheme aims to develop 100 smart cities on international standards by year AMRUT ( 1 )

2 On 25 th June 2015, the Government of India (GoI) had launched two major projects for urban development; Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Smart City Scheme (SCS). AMRUT aims to improve the existing basic infrastructure services in 500 selected cities/ towns. And Smart City Scheme aims to develop 100 smart cities on international standards by year India has many big cities and towns; and the four big metro cities are Delhi, Mumbai, Kolkata and Chennai. Apart from these big metro cities, the other major Indian cities are Pune, Chandigarh, Bangalore, Hyderabad, Jaipur, Ahmedabad and Bhopal. Globalization and rapid urbanization had led to steady increase in the population of Indian cities, as the cities offer good opportunities. The constant migration from villages to big and small cities across India has been on steady rise. As per the 2011 census, 32% of population are living in urban areas, whereas it was only 28% in the year This rapid pace of urbanization has put pressure on facilities such as water supply, sewerage, sanitation and transportation in urban areas; therefore, due to the increased burden on existing cities due to rural to urban migration, there is a need for development of urban infrastructure. The cities are facing problems related to housing, waste disposal, shortage in water supply and electricity. The most important problem in all cities has been housing the sudden and large scale of migrants from rural areas to urban areas, especially the metropolises and state capitals. Due to lack of housing, in every city almost 50% of the population lives in slums. Water scarcity is one of the other critical problems in urban cities in India as people are not getting water daily. Tonnes of solid waste is also being generated in urban areas of India because of the increasing population there. Moreover, people are suffering from diseases in urban areas, because there is no hygiene in slums. Some people are staying on footpath, because of housing problems. Another major problem faced by people in urban areas is the lack of adequate public transport. Now cities are growing, so distance is also increasing within the urban areas. People have to travel for work. But transportation is not available to go to work place in urban areas. With more than half the population being poor or belonging to low income groups, public transport is a very important facility to be provided in urban areas. Government has been working on urban development through different schemes, but still population is suffering due to housing problems, water problems, sanitation problem etc. To address the urban needs, the GoI had launched the Jawaharlal Nehru National Urban Renewal Mission (JnNURM) to improve the infrastructure and quality of life in cities in The above-mentioned project was closed down and was renamed with amendments under AMRUT to provide quality of life for urban residents. Lessons learnt from earlier Missions have shown that infrastructure creation should have a direct impact on real needs of people, such as providing taps and toilet connections to all households, to enable conducive atmosphere on creation of infrastructure that has a direct link to provision of better services to people. Atal Mission for Rejuvenation and Urban Transformation (AMRUT): AMRUT has been launched on 25 th June 2015, to support 500 cities and 2/3 town tier cities for development. The Mission s aim is to improve existing basic services like extending clean drinking water supply, improving sewerage networks, developing sewerage management, laying of storm water drains, AMRUT ( 2 )

3 improving public transport services and creating green public spaces like parks etc, with special focus on creating healthy open spaces for children in 500 cities/ towns across India. The Mission also aspires to build and transform 500 model cities across India which are developed using modern techniques and are centres for sustainable living. A total of Rs 50,000/- crore has been allocated by the central government, that would be spent within a span of five years from now. List of Cities/Towns under AMRUT: S. No State Name No. of cities/towns short listed Uttar Pradesh 64 Tamil Nadu 33 Maharashtra 37 Gujarat 31 Karnataka 27 Andhra Pradesh 31 Rajasthan 30 West Bengal 28 Bihar 27 Odisha 19 Haryana 19 Kerala 18 Punjab 17 Telangana 15 Chattisgarh 10 Government of India provides 30% of the overall cost, under AMRUT if the population is more than 10 lakh in cities and 50% of the overall cost if the population is more than 10 lakh in urban areas. The broad mission objectives are as follows: To ensure that every household has access to a tap with assured supply of water and a sewerage connection, To increase the amenity value of cities by developing greenery and well-maintained open spaces (e.g. parks), To reduce pollution by increasing public transport or constructing facilities for non-motorized transport (e.g. walking and cycling). Thrust areas: The Mission s main focus areas are on the following thrust areas: i. Water Supply. ii. Sewerage facilities and septage management. AMRUT ( 3 )

4 iii. Storm water drains to reduce flooding. iv. Pedestrian, non-motorized and public transport facilities, parking spaces. v. Enhancing amenity value of cities by creating and upgrading green spaces, parks and recreation centres, especially for children. Coverage: In the country, around 500 cities are selected under the AMRUT project. The categories of cities are... i. All cities and towns with population of over one lakh with notified municipalities, including cantonment boards. ii. All capital cities of states / UTs are not covered under this project. iii. All cities classified as heritage cities by MoUD. iv. Thirteen cities on the stem of the main rivers with population above 75,000 and less than one lakh. v. Ten cities from hill states, islands and tourist destinations (not more than one from each state). Mission Components: AMRUT mission s components are capacity building, reform implementation, water supply, sewerage and septage management, storm water drainage, urban transport and development of green spaces and parks. Water Supply: i. Water supply systems including augmentation of existing water supply, water treatment plants and universal metering. ii. Rehabilitation of old water supply systems, including treatment plants. iii. Rejuvenation of water bodies, specifically for drinking water supply and recharging of ground water. iv. Special water supply arrangement for difficult areas, hill and coastal cities, including those having water quality problems (e.g. arsenic, fluoride). Sewerage: i. Decentralised, networked underground sewerage systems, including augmentation of existing sewerage systems and sewage treatment plants. ii. Rehabilitation of old sewerage system and treatment plants. iii. Recycling of water for beneficial purposes and reuse of wastewater. Septage: i. Faecal Sludge Management- cleaning, transportation and treatment in a cost-effective manner. ii. Mechanical and biological cleaning of sewers and septic tanks and recovery of operational cost in full. Storm Water Drainage: i. Construction and improvement of drains and storm water drains in order to reduce and eliminate flooding. Urban Transport: AMRUT ( 4 )

5 i. Ferry vessels for inland waterways (excluding port/ bay infrastructure) and buses. ii. Footpaths/ walkways, sidewalks, foot over-bridges and facilities for non-motorised transport (e.g. bicycles). iii. Multi-level parking. iv. Bus Rapid Transit System (BRTS). Green space and parks: i. Development of green space and parks with special provision for child-friendly components. Reforms management & support: i. Support structures, activities and funding support for reform implementation. ii. Independent Reform monitoring agencies. Capacity Building: i. This has two components- individual and institutional capacity building. ii. The capacity building will not be limited to the Mission Cities, but will be extended to other Urban Local Bodies (ULBs) as well. iii. Continuation of the Comprehensive Capacity Building Programme (CCBP) after its realignment towards the new Missions. Indicative (not exhaustive) list of inadmissible components: i. Purchase of land for projects or project related works. ii. Staff salaries of both the State Governments/ ULBs. iii. Power. iv. Telecom. v. Health. vi. Education. vii. Wage employment programme and staff component. 4. Fund Allocation: The total amount allocated for AMRUT project is Rs. 50,000/- crore for five years from to The Mission will be operated as a Centrally Sponsored Scheme, and may be continued thereafter, in light of an evaluation done by the MoUD and incorporating learnings in the Mission. The Mission funds will consist of the following four parts: i. Project fund - 80% of the annual budgetary allocation. ii. Incentive for Reforms - 10% of the annual budgetary allocation. iii. State funds for Administrative & Office Expenses (A&OE)- 8% of the annual budgetary allocation. iv. MoUD funds for Administrative & Office Expenses (A&OE)- 2% of the annual budgetary allocation. AMRUT ( 5 )

6 However, for FY , the project fund would be 90% of the annual budgetary allocation as incentive for reforms will be given only from FY onwards. The Mission funds would be allocated to States/ UTs based on the following principles. Programme management Structure: National Level: An Apex Committee (AC), chaired by secretary (MoUD) comprising of representatives of related organizations will supervise the mission. The AC may co-opt any representative from any government department or organization as member or invite any expert to participate in its deliberation. The Apex Committee s functions are to allocate and release funds to the states/ UTs/ Mission Directorate and overall monitoring and supervision of the mission etc. State Level: A State level High Powered Steering Committee (SHPSC) chaired by the state chief secretary, shall steer the mission programme in its entirety. The SHPSC may co-opt members from other state government departments or government organizations and may also invite experts in the field to participate in its deliberations. The functions of the SHPSC are to identify the gaps in infrastructure, prepare SAAP, approve the projects after they are technically appraised and sanctioned by the State Level Technical Committee (SLTC), plan the fund flow in short, medium and long term. City Level: At the City level, the ULB will be responsible for implementation of the mission. The municipal commissioner will ensure timely Preparation of Service Level Improvement Plans (SLIP). The ULBs will develop Detailed Project Reports (DPRs) and bid documents for projects in the approved State Annual Action Plan (SAAP). The ULBs will ensure city level of approvals of DPRs and bid documents and forward these to the State Level Technical Committee (SLTC) for approvals. Urban local bodies will procure implementation agencies as provided in the financial rules and regulations and after award of work, ensure its timely completion. The ULB will develop road map for reform implementation and capacity building. The ULB will also be responsible for building coordination and collaboration among stakeholders for timely completion of projects without escalation of project cost. Project Monitoring: The mission is monitored at the state and ULB level. Moreover, information and data will be shared with citizens in the public domain and third party monitoring and review will be encouraged. Independent Review and Monitoring Agency (IRMA) will monitor it once a quarter. IRMA submits the quarterly report to the ULB and the SLTC. The State Mission Director will submit the action taken on the IRMA report at the time of funds in the AMRUT. Similarly, the IRMA will do a half-yearly appraisal of reform implementation. Concretely, monitoring will consist of the following elements. 1. Apex Committee will monitor all projects periodically. 2. The MoUD, states and the ULBs will track objectives and other indicators. 3. At the state level, the state High Power Steering Committee (HPSC) would undertake detailed scrutiny of the projects at the proposal stage and monitor it during the execution. 4. The state HPSC shall submit quarterly score card. AMRUT ( 6 )

7 5. The mission will support National Performance Monitoring Cell for monitoring implementation of Service Level Benchmarks (SLBs) in urban basic services. 6. The ULBs would be required to closely monitor the projects through their elected representatives and ULB bodies and through direct citizens feedback using mobiles and e-groups. 7. Third party review by IRMA for projects and for reforms shall be carried out. This agency will be hired from amongst specialised agencies. District Level Monitoring Committee (DLMC): DLMC will be constituted and members of Parliament will be the co-chairpersons with the District Collector. The DLRMC will monitor and review the implementation of AMRUT projects. 2. Smart City Scheme: Smart City Scheme is the second urban development project undertaken by the GOI. This project aims to develop existing cities and a few other, selected smaller cities into places of modern and sustainable living in terms of healthcare facilities, sanitation, infrastructure, ecology, education and opportunities. Around 100 cities have been selected under this scheme and a total of Rs. 48,000/- crore has been allocated for State Name No. of cities shortlisted State Name No. Of cities shortlisted Andaman&Nicobar Island 01 Madhya Pradesh 07 Andhra Pradesh 03 Maharashtra 10 Arunachal Pradesh 01 Manipur 01 Assam 01 Meghalaya 01 Bihar 03 Mizoram 01 Chandigarh 01 Nagaland 01 Chhattisgarh 02 Odisha 02 Daman & Diu 01 Puducherry 01 Dadra&Nagar Haveli 01 Punjab 03 Delhi 01 Rajasthan 04 Goa 01 Sikkim 01 Gujarat 06 Tamil Nadu 12 Haryana 02 Telangana 02 Himachal Pradesh 01 Tripura 01 Jharkhand 01 Uttar Pradesh 13 Karnataka 06 Uttarakhand 01 Kerala 01 West Bengal 04 Lakshyadweep 01 SCS, the cities are to be built on international standards within a span of 20 years. As the SCS is intended to enhance the quality of urban life, by way of providing clean and sustainable environment with 24 hours of water and power supply; apart from the above, sanitation and solid waste management, efficient urban mobility and public transportation, affordable housing for poor, and robust IT connectivity among others are essential features of the project. AMRUT ( 7 )

8 Difference between AMRUT and Smart City Scheme: AMRUT works for 500 big and small cities and has higher coverage into the geographical extents of the country. It is for urban development covering clean drinking water, better healthcare opportunities and sustained urban living. AMRUT is an extension of the previous scheme JnNURM. Whereas, Smart City works for 100 top cities and small towns of India and develop them on international standards, at par with other bigger cities of the world. The key difference between the two projects is that AMRUT has a higher coverage in terms of geographical location along with more number of cities/towns and SCS focuses more on selected cities and bring them on par, in terms of sustainable and realistic urbanization. Issues: Migration from rural areas to urban centres has put pressure on land and existing civic infrastructure in cities and towns. With rising population in cities, there is an immediate need for development of urban infrastructure and the budget allocated under these two schemes may not be sufficient for urban development. Our learnings from previous schemes and programmes clearly state that in the many projects which were implemented, the key stakeholders did not benefit from the schemes and that the involvement of political parties in project implementation is also a major problem and as well a hurdle. Conclusion: India is a large country with rural and urban areas. Around 68% of the population is living in the rural areas and 32% of the population is living in the urban areas. Gradually, the urban population is increasing in India. Because the people are migrating from rural areas to urban areas in search of livelihoods and for other purposes. Most of the people who are poor are migrating to cities and are living in slums in cities. As a matter of fact, around 65 million people are living in slums. But slum population has grown slower than the average urban population over the last decade. Almost 30% of the population is living in slums in cities. In the slums of urban areas, there are no good facilities and population density is also more in slums. People are suffering due to lack of water supply, lack of sanitation facility, lack of safe drinking water, lack of proper sewerage services and etc., in slums. Government has been working on urban development, but they are not able to fulfil the basic urban needs. Recently, the government has launched AMRUT and Smart City schemes for urban development; it is a good news for urban population, especially the slum population. Now, the government has increased the budget to Rs.98,000/- crore for urban development through two major urban development projects. Government will succeed if they implemented it correctly. AMRUT ( 8 )