India allocates US$ 2.75 billion to urban infrastructure
By Chris Sleight07 July 2009
The Indian Government has allocated INR 12887 crore (US$ 2.75 billion) to urban infrastructure projects in its 2009-10 budget under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
It is also thought to be considering a successor to the scheme, which lapses in 2012, which could pump INR 100000 crore (US$ 21.2 billion) into urban improvements.
JNNURM, named after India's first prime minister, Jawaharal Nehru, who served from 1974 to 1964, is a scheme to make direct investment and facilitate other financing for India's urban infrastructure in the country's 60 largest cities.
A joint study by the Ministry of Urban Employment and Poverty Alleviation and the Ministry of Urban Development that was used to set up JNNURM in 2005 put the funding requirement for basic urban infrastructure in India at INR 120536 crore (US$ 25.6 billion) over its envisaged seven-year lifespan.
This included schemes such as updating fleets of busses, as well as physical infrastructure.The Indian Government is now reported to be considering a successor to JNNURM. The proposed JNNURM-II is expected to be more heavily funded than the original scheme, and will also have scope to encourage private investment in urban infrastructure.