Government has approved setting up of the Jawaharlal Nehru National Urban Renewal Mission. The Mission would cover about 60 cities with a million plus population, all State capitals and some other cities considered important from religious, historical and tourist importance. The Mission will be officially launched on 3rd December, 2005. The Mission will give focused attention to the integrated development of urban infrastructure and services, with special emphasis on provision of basic services to the urban poor, including housing, water supply, sanitation, slum improvement, community toilets/bath, etc. Improving the efficiency of city governance through public participation and disclosure is also an important objective of the programme.

With this, the Government has fulfilled a major commitment given in the National Common Minimum Programme for taking up a comprehensive programme of urban renewal and expansion of social housing in cities and towns, paying particular attention to the needs of slum dwellers.

The National Urban Renewal Mission will be the most ambitious programme ever to be taken up for urban development in the country. A combined investment by Central Government, State Governments and the urban local bodies of more than Rs. One Lakh crore is proposed to be spent on this programme over the next 7 years. It is expected that with the completion of the projects under the Mission, there will be qualitative improvement in the lives of the citizens of India living in urban areas.

The Mission will be guided by a National Steering Group chaired by the Urban Development Minister and co-chaired by the Minister of State (I/C) for Urban Employment and Poverty Alleviation. It shall consist of two sub-Missions - one on Urban Infrastructure and Governance and the other on Basic Services to the Urban Poor. The main thrust of sub-Mission on Urban Infrastructure and Governance will be on major infrastructure projects relating to water supply including sanitation, sewerage, solid waste management, urban transport, road network, etc. Programmes like slum improvement and rehabilitation, sites and services, night shelters, community toilets and housing for the poor will be taken up by the sub-Mission on Basic Services to the Urban Poor.

In order that physical infrastructure or other services created in urban areas do not languish or become dysfunctional over time, proper and efficient operation and maintenance is sought to be secured through this Mission by linking Central financial assistance to implementation of reforms by the State Governments and urban local bodies. The underlying objective of these reforms is to improve the financial condition of the urban local bodies, their credit worthiness, ability to access market capital for taking up new projects, secure public participation and confidence and commercial sustainability in the provision of services to ensure sustained service delivery.

State governments/urban local bodies will be required to sign a Memorandum of Agreement with the Central Government, giving an undertaking to implement the reform agenda, as per a mutually agreed road map. Fund releases will be linked to assessment of the implementation of reform agenda.

In addition to the Mission, the government has also approved two other schemes, viz., Urban Infrastructure Development Scheme for Small and Medium Towns and Integrated Housing and Slum Development Programme to be taken up by the Ministries of Urban Development and Urban Employment and Poverty Alleviation respectively for development programmes in cities and towns outside the Mission area. Grants under these schemes will also be linked to the implementation of reforms.