1. Need for Sub-Mission on Basic Services to the Urban Poor (BSUP) under Jawahar Lal 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 postindependence 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) 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. In this context, a City Development Plan (CDP) would be required before the city can access Mission funds.
·         Cities 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 identified cities would be released to the designated State Nodal Agency, which in turn would leverage additional resources from the State Govt., their own funds, funds of implementing agencies and funds from the financial institutions/private sector/capital market and External Aid. A revolving fund would be created to take care of operation and maintenance of various assets created under the Mission.
4. Mission Objectives
·         Focused attention to integrated development of Basic Services to the Urban Poor in the cities covered under the Mission.
·         Provision of Basic Services to Urban Poor including security of tenure at affordable prices, improved housing, water supply, sanitation and ensuring delivery through convergence of other already existing universal services of the Government for education, health and social security. Care will be taken to see that the urban poor are provided housing near their place of occupation.
·         Secure effective linkages between asset creation and asset management so that the Basic Services to the Urban Poor 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 Basic Services to the Urban Poor.
·         Scale up delivery of civic amenities and provision of utilities with emphasis on universal access to urban poor.
5. Duration of the Mission
The duration of the Mission would be seven years beginning from the year 2005-2006. 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 Basic Services to the Urban Poor will be on integrated development of slums through projects for providing shelter, basic services and other related civic amenities with a view to provide utilities to the urban poor.
7. Mission Components
The sub-Mission on Basic Services to the Urban Poor will cover the following:-
(a) Admissible components:-
i. Integrated development of slums, i.e., housing and development of infrastructure projects in the slums in the identified cities.
ii. Projects involving development/improvement/maintenance of basic services to the urban poor.
iii. Slum improvement and rehabilitation projects.
iv. Projects on water supply/sewerage/drainage, communitytoilets/baths, etc.
v. Houses at affordable costs for slum dwellers/ urban poor/EWS/LIG categories.
vi. Construction and improvements of drains/storm water drains.
vii. Environmental improvement of slums and solid waste management.
viii. Street lighting.
ix. Civic amenities, like, community halls, child care centers, etc.
x. Operation and maintenance of assets created under this component.
xi. Convergence of health, education and social security schemes for the urban poor
NOTE: Land cost will not be financed except for acquisition of private land for schemes/ projects in the North Eastern States & hilly States, viz., Himachal Pradesh, Uttaranchal and Jammu & Kashmir.
(b) Inadmissible Components
Projects pertaining to the following will not be considered :
i) Power
ii) Telecom
iii) Wage employment programme & staff component
iv) Creation of fresh employment opportunities
Note: DPRs will have to be prepared by the implementing agencies for funding under the Mission including specific project components, viz, health, education and social security. However, the schemes of health,education and social security will be funded through convergence of schemes and dovetailing of budgetary provisions available under the programmes of respective sectors (Health, Human Resource Development, Social Justice and Empowerment and Labour, etc.), but will also be monitored by the Ministry of Urban Employment & Poverty Alleviation in so far as urban poor are concerned.
8. Sub-Mission Coverage
·         Keeping in view the paucity of resources and administrative constraints in taking up all cities and towns under this Sub-Mission, only selected cities will be taken up, as per norms/criteria mentioned below .
Category Number-A Cities with 4 million plus population as per 2001 census population
B Cities with 1 million plus but less than 4 million population
C Selected Cities (of religious/historic and tourist importance)
·         List of these cities is at Annexure-A.
·         National Steering Group may consider addition or deletion of cities/towns under Category-C (other than state capitals). Total number of cities under the Mission shall, however, remain about the same i.e. 60.
9. Agenda of Reforms
·         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-B.
·         National Steering Group may add additional reforms to the identified reforms.