Government of Indian Important Schemes 2012-13

Government of India
Important Schemes
2012-13
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Table of Contents

Rajiv Gandhi Equity Saving Scheme........................................................................................ 2

Rashtriya Bal Swaasthya Karyakram ...................................................................................... 3

Rashtriya Gram Swaraj Yojana ................................................................................................. 7

Mid Day Meal Scheme ................................................................................................................... 9

Sarva Shiksha Abhiyan (SSA)................................................................................................... 11

Rashtriya Swasthya Bima Yojna (RSBY) ............................................................................. 14

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) ............................ 15

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Rajiv Gandhi Equity Saving Scheme
The Union Budget 2013-14 has proposed to liberalise the Rajiv Gandhi Equity Savings
Scheme (RGESS) to enable first time investors to park funds in Mutual Funds (MFs) and
listed shares and extended tax benefits to three successive years. Also, the limit for investors
wanting to invest in RGESS has been raised to Rs 12 lakh from Rs 10 lakh earlier.

The RGESS, which was originally announced in the Budget for 2012-13, seeks to provide tax
benefits to first time investors in stock markets. The basic idea of the RGESS scheme is to
increase investor participation in equities.

Salient features of the scheme are as follows:

 The maximum investment permissible under RGESS is Rs 50,000 and investors get a
50 per cent deduction of the amount invested from the taxable income for the year.
 Deduction under the scheme has now been expanded to cover investments in listed
units of equity oriented funds.
 The scheme is open to new retail investors identified on the basis of their permanent
account numbers (PAN).
 The tax deduction allowed will be over and above the Rs 1 lakh limit permitted
allowed under Section 80 C of the Income Tax Act.
 In addition to the 50 per cent tax deduction for investments, dividend income is also
tax free.
 Stocks listed under BSE 100 or CNX 100, or stocks of public-sector undertakings
(PSUs) that are Navratnas, Maharatnas, and Miniratnas will be eligible under the
scheme. Follow-on public offers (FPOs) of these companies will also be eligible.
 IPOs of PSUs, which are scheduled to get listed in the relevant financial year and
whose annual turnover is not less than Rs 4,000 crore for each of the immediate past
three years, will also be eligible.
 Exchange-traded funds (ETFs) and MFs that have RGESS-eligible securities as their
underlying and are listed and traded in the stock exchanges and settled through a
depository mechanism have also been brought under the RGESS to provide the
advantage of diversification and consequent risk minimization.
 To benefit the small investors, investments are allowed in instalments in the year in
which tax claims are made.
 The total lock-in period for investments will be three years including an initial
blanket lock-in of one year.
 After the first year, investors will be allowed to trade in the securities. Investors are
free to trade / churn their portfolios for around 90 days in each of the years following
the first year of investment.
 Investors would, however, be required to maintain their level of investment during
these two years at the amount for which they have claimed income tax benefit or at
the value of the portfolio before initiating a sale transaction, whichever is less, for at
least 270 days in a year.
 The general principle under which trading is allowed is that whatever is the value of
stocks / units sold by the investor from the RGESS portfolio, RGESS-compliant
securities of at least the same value are credited back into the account subsequently.
However, the investor is allowed to take benefit of the appreciation of his RGESS
portfolio, provided its value remains above the investment for which he has claimed
income tax benefit.
 In case the investor fails to meet the conditions stipulated, the tax benefit will be
withdrawn. The broad provisions of the Scheme and the income tax benefits under it
have already been incorporated as a new Section-80CCG- of the Income Tax Act.


Rashtriya Bal Swaasthya Karyakram
(A New Preventive Health Care Initiative)

The newly launched Rashtriya Bal Swaasthya Karyakram of the Ministry of Health & Family
Welfare assures a package of health services for children up to 18 years of age.

The initiative, which is part of the National Rural Health Mission, was launched on
February 6, in Palghar, a tribal dominated block of Thane district in Maharashtra, by UPA
Chairperson Sonia Gandhi, in the presence of Union Health & Family Welfare Minister
Ghulam Nabi Azad and Maharashtra Chief Minister Prithviraj Chavan. The programme will
be extended to cover all districts of the country in a phased manner.

Early Detection; Early Intervention

Rashtriya Bal Swaasthya Karyakram, also known as Child Health Screening and Early
Intervention Services aims at early detection and management of ‘4Ds’ prevalent in
children. These are Defects at birth, Diseases in children, Deficiency conditions and
Developmental delays including Disabilities. The health screening of children is a known
intervention under School Health Programme. It is now being expanded to cover all children
from birth to 18 years of age.

The services aim to cover all children of 0-6 years of age group in rural areas and urban
slums, in addition to children enrolled in classes 1st to 12th in Government and Government
aided schools. A set of 30 common ailments / health conditions have been identified for
screening and early intervention.

Defects at Birth

Globally, about 7.9 million children are born annually with a serious birth defect of genetic
or partially genetic origin which account for 6 percent of the total births. In India about 1.7
million babies are born with birth defects annually. For those who do not receive specific
and timely intervention and yet survive, these disorders can cause irreversible life-long
mental, physical, auditory or visual disability.

Deficiencies

Anaemia prevalence has been reported as high as 70% amongst under-five children largely
due to iron deficiency. The situation has remained virtually unchanged over the past decade.
Almost half of children under age five years (48 %) are chronically malnourished. During
pre-school years, children continue to suffer from adverse effects of anaemia, malnutrition
and developmental disabilities, which ultimately also impact their performance in school.

Diseases

The prevalence of dental caries varies between 50-60 percent among Indian school children
as reported in different surveys. Rheumatic heart disease is reported at 1.5 per thousand
among school children in the age group of 5-9 years. The median prevalence of reactive air
way disease including asthma among children is reported to be 4.75 percent.


Developmental Delays

Globally, 200 million children do not reach their developmental potential in the first five
years because of poverty, poor health, nutrition and lack of early stimulation. The prevalence
of early childhood stunting and the number of people living in absolute poverty could be
used as proxy indicators of poor development in under five children. Both of these indicators
are closely associated with poor cognitive and educational performance in children and
failure to reach optimum developmental potential.

Defects at Birth

 Neural tube defect
 Down’s Syndrome
 Cleft Lip & Palate/Cleft palate alone#
 Talipes (club foot)
 Developmental dysplasia of the hip
 Congenital cataract
 Congenital deafness
 Congenital heart diseases
 Retinopathy of Prematurity

Deficiencies

 Anaemia especially Severe anaemia
 Vitamin A deficiency (Bitot spot)
 Vitamin D Deficiency, (Rickets)
 Severe Acute Malnutrition
 Goitre

Child hood Diseases

 Skin conditions (Scabies, fungal infection and Eczema)
 Otitis Media
 Rheumatic heart disease
 Reactive airway disease
 Dental caries
 Convulsive disorders

Developmental delays and Disabilities

 Vision Impairment
 Hearing Impairment
 Neuro-motor Impairment
 Motor delay
 Cognitive delay
 Language delay
 Behaviour disorder (Autism)
 Learning disorder
 Attention deficit hyperactivity disorder
 Congenital Hypothyroidism, Sickle cell anaemia, Beta thalassemia (Optional)


Implementation Mechanism

Facility Based Newborn Screening

This includes screening of birth defects in institutional deliveries at public health facilities,
especially at the designated delivery points by nurses, medical officers/gynaecologists.

Community Based Newborn Screening

Accredited Social Health Activists (ASHAs) during home visits for newborn care will use the
opportunity to screen the babies born at home and the institutions till6 weeks of age. ASHAs
will be trained with simple tools for detecting gross birth defects. For performing this task,
ASHA would be provided with a tool kit consisting of a pictorial reference book with self-
explanatory pictures for identification of birth defects.

Screening at Anganwadi Centres and Schools

The children in the age groups 6weeks to 6 years of age will be examined in the Anganwadi
centres by the dedicated mobile health teams. The children in the age groups 6 to 18 years
will be screened in Government and Government aided schools. The screening of children in
the anganwadi centres would be conducted at least twice a year and at least once a year for
school children to begin with.

Block to be the Hub of Activity

The Block will be the hub of activity for the programme. At least three dedicated mobile
health teams in each Block will be engaged to conduct screening of children. Villages within
the jurisdiction of the Block would be distributed amongst the 3 teams.

The number of teams may vary depending on the number of anganwadi centres, schools,
difficult to reach areas and enrolments of children in the schools. The mobile health team
will consist of four members - two Doctors (AYUSH) one male and one female, one nurse
and one pharmacist.

The Block Programme Manager will chalk out a detailed screening plan for all the three
teams in consultation with schools, anganwadi centres and CHC Medical Officer. A tour
diary will be maintained by block health teams.

Early Intervention Centre at District Level

An Early Intervention Centre will be established at the District Hospital. The purpose of
Early Intervention Centre is to provide referral support to children detected with health
conditions during health screening. A team consisting of paediatrician, medical officer, staff
nurses, paramedics will be engaged to provide services. This centre would have the basic
facilities to conduct tests for hearing, vision, neurological tests and behavioural assessment.


Training and Management

Training of the personnel involved in Child Health Screening and Early Intervention Services
would be through a cascading training approach. Standardized training modules are to be
developed in partnership with technical support agencies and collaborative centres. KEM
Hospital, Mumbai and Pune and Ali Yavar Jung National Institute for Hearing Handicapped,
have been identified as public sector collaborative centres in Maharashtra for imparting
training.

Ministry of Health & Family Welfare has drawn up ‘Operational Guidelines’ for effective
planning and systematic implementation of the programme. These guidelines explain the
process of identification and management of select conditions of huge public health
significance in India.

Impact of the Programme

By providing early intervention service, the new initiative is expected to bring economic
benefits in the long run by directly reducing expenditure in terms of providing critical health
care. “Extending preventive and promotive health care would impact the National Human
Capital, reduce disease burden and also public health expenditure.” says Union Minister for
Health & Family Welfare Ghulam Nabi Azad.

When fully implemented, the Rashtriya Bal Swasthya Karyakram is expected to benefit
approximately 270 million (27 crore) children across the country.


Rashtriya Gram Swaraj Yojana

Sponsored by: Both: Central & State Government

Ministry/Department: Ministry of Panchayati Raj

Introduced on: Implemented since 2006-07

Objectives

 Assisting efforts of the State Government for training and capacity building of
elected representatives of Panchayati Raj Institutions
 It focuses primarily on providing financial assistance to the States/UTs for Training
& Capacity Building of elected representatives (ERs) and functionaries of Panchayati
Raj Institutions (PRIs)
 Funding of the scheme is applicable only for the non-BRGF districts (provide
internal link)
 Upgradation of knowledge, skills and attitudes of Panchayat elected representatives
to better perform their responsibilities towards the Panchayat
 Orientation of the key officials associated with the functions devolved to Panchayats
for effectively facilitating the Panchayats in their performance in respective areas
 Improvement of the vigour of practice of grassroots level democracy through
promoting the effective functioning of the Gram Sabha
 Sensitisation of the media, political parties, representatives in the legislatures, civil
society organisations, trade unions, service federations and citizens to view
Panchayati Raj as an effective level of local government

Salient Features:

 Funding pattern of the scheme is: 75 % Central Government and 25% State
Government
 The scheme has two components of Training & Capacity Building and
Infrastructure Development.
 Under the component of Training & Capacity Building, financial assistance is
provided to the States/UTs for Training of elected representatives (ERs) and
functionaries of Panchayati Raj Institutions (PRIs as well as for setting up of
Satellite/SWAN based training infrastructure for Distance Learning for the ERs and
Functionaries of the PRIs.
 Under the component of Infrastructure Development, assistance is provided for
establishment of Panchayat Resource Centres/ Panchayat Bhawans at Block/Gram
Panchayat levels.
 The scheme is demand driven in nature
 The training content encompasses a range of issues, including improving the process
of planning, budgeting and expenditure management, information systems,
participatory and consultative decision making, improving local taxation and in
particular delivery of public services to the poor.
 The scheme of RGSY supports the National Capability Building Framework of
the Panchayati Raj Ministry for comprehensive Capacity Building & Training of the
Elected Representatives & Functionaries of Panchayati Raj Institutions


Note

A major initiative has been proposed by the Union Budget 2012-13 to strengthen Panchayats
across the country through the Rajiv Gandhi Panchayat Sashaktikaran Abhiyan
(RGPSA). This programme will expand on the existing schemes for Panchayat capacity
building.


Mid Day Meal Scheme
(World’s Largest School Feeding Programme)

National Programme of Mid Day Meal in Schools (MDMS) is a flagship programme of the
Government of India aiming at enhancing enrolment, retention and attendance and
simultaneously improving nutritional levels among children studying in Government, Local
Body and Government-aided primary and upper primary schools and the Centres run
under Education Guarantee Scheme (EGS) and Alternative & Innovative Education
(AIE) and National Children Labour Project (NCLP) schools of all areas across the country.
MDM is also served in drought-affected areas during summer vacation.

The scheme has emerged as the world’s largest school programme for children of primary
and upper primary stage.

Calorific Value

The calorific value of a mid-day meal at upper primary stage has been fixed at a minimum of
700 calories and 20 grams of protein by providing 150 grams of food grains (rice/wheat) per
child/school day.

Budget

The Union Budget 2012-13 has provided an outlay of Rs 11,937.00 crore for this scheme,
which is inclusive of Rs 1193.70 crore for North Eastern Region (NER) and Sikkim.

Objectives

 Enhancing enrolment
 Ensuring retention and attendance of students
 Improving Nutritional levels among children
 8.41 crore primary children and 3.36 cr upper primary children — a total of 11.77
crore children were estimated to be benefited from MDM Scheme during 2009-10.
 11.04 crore children were covered under MDM Scheme during 2009-10.
 During 2010-11, 11.36 crore children — 7.97 Cr. children in primary and 3.39 crore
children in upper primary—are expected to be covered in 12.63 lakhs institutions.
 Today, Mid Day Meal scheme is serving primary and upper primary school children
in entire country.

Achievements

 8.41 crore primary children and 3.36 cr upper primary children — a total of 11.77
crore children were estimated to be benefited from MDM Scheme during 2009-10.
 11.04 crore children were covered under MDM Scheme during 2009-10.
 During 2010-11, 11.36 crore children — 7.97 Cr. children in primary and 3.39 crore
children in upper primary—are expected to be covered in 12.63 lakhs institutions.
 Today, Mid Day Meal scheme is serving primary and upper primary school children
in entire country.


Timeline And Salient Features

 The National Programme of Nutritional Support to Primary Education (NP-
NSPE) was launched as a Centrally Sponsored Scheme on 15th August
1995, initially in 2408 blocks in the country
 By the year 1997-98, the NP-NSPE was introduced in all blocks of the country
 It was further extended in 2002 to cover not only children in classes I -V of
Government, Government aided and local body schools, but also children studying in
EGS and AIE centres
 Central Assistance under the scheme consisted of free supply of food grains @ 100
grams per child per school day, and subsidy for transportation of food grains up to a
maximum of Rs 50 per quintal.
 In September 2004 the scheme was revised to provide cooked mid day meal with
300 calories and 8-12 grams of protein to all children studying in classes I – V in
Government and aided schools and EGS/ AIE centres.
 In October 2007, the scheme has been further revised to cover children in upper
primary (classes VI to VIII) initially in 3479 Educationally Backwards Blocks (EBBs).
 From 1st April, 2008, the programme covers all children studying in Government,
Local Body and Government-aided primary and upper primary schools and the
EGS/AIE centres including Madarsa and Maqtabs supported under SSA of all areas
across the country.


Sarva Shiksha Abhiyan (SSA)

Nodal Ministry: Ministry of Human Resource Development

Year of launch: Operational since 2000-2001

Budget: An outlay of Rs 25,555.00 crore has been provided for SSA including Rs 2519.36
crore

earmarked for North Eastern Region by the Union Budget 2012-13

Sarva Shiksha Abhiyan (SSA) is Government of India’s flagship programme for achievement
of Universalization of Elementary Education (UEE) in a time bound manner, as mandated by
86th amendment to the Constitution of India making free and compulsory Education to the
Children of 6-14 years age group, a Fundamental Right.

SSA is being implemented in partnership with State Governments to cover the entire country
and address the needs of 192 million children in 1.1 million habitations.

The programme seeks to provide access, equity, retention and quality in the area of
elementary education.

Two additional components focusing on Girl Children in educationally backward blocks to
promote gender parity are:

1. National Programme for Education of Girls at Elementary Education level
2. Kasturba Gandhi Balika Vidyalaya

Objectives

 The Sarva Shiksha Abhiyan aims to bridge social, regional and gender gaps, with the
active participation of the community in the management of schools.
 All efforts to support pre-school learning in ICDS centres or special pre-school
centres in non ICDS areas are made to supplement the efforts of the Ministry of
Women and Child Development.
 The SSA programme is an endeavour to provide an opportunity for improving human
capabilities of all children, through the provision of community-owned quality
education in a mission mode.

Goals Of SSA When It Was Launched

 All children in school, Education Guarantee Centre, Alternate School or ‘Back-to-
School’ camp by 2003
 All children complete five years of primary schooling by 2007
 Children complete eight years of elementary schooling by 2010
 Focus on elementary education of satisfactory quality with emphasis on education for
life
 Bridge all gender and social category gaps at the primary stage by 2007 and at the
elementary education level by 2010.


SSA-RTE

With the passage of the RTE Act, changes have been incorporated into the SSA approach,
strategies and norms.

The changes encompass the vision and approach to elementary education, guided by the
following principles:

 Holistic view of education, as interpreted in the National Curriculum Framework
2005, with implications for a systemic revamp of the entire content and process of
education with significant implications for curriculum, teacher education,
educational planning and management.
 Equity, to mean not only equal opportunity, but also creation of conditions in which
the disadvantaged sections of the society — children of SC, ST, Muslim minority,
landless agricultural workers and children with special needs, etc — can avail of the
opportunity.
 Access, not to be confined to ensuring that a school becomes accessible to all children
within specified distance but implies an understanding of the educational needs and
predicament of the traditionally excluded categories — the SC, ST and others sections
of the most disadvantaged groups, the Muslim minority, girls in general, and children
with special needs.
 Gender concern, implying not only an effort to enable girls to keep pace with boys but
to view education in the perspective spelt out in the National Policy on Education
1986 /92; i.e. a decisive intervention to bring about a basic change in the status of
women.
 Centrality of teacher, to motivate them to innovate and create a culture in the
classroom, and beyond the classroom, that might produce an inclusive environment
for children, especially for girls from oppressed and marginalised backgrounds.
 Moral compulsion is imposed through the RTE Act on parents, teachers, educational
administrators and other stakeholders, rather than shifting emphasis on punitive
processes.

Salient Features

 SSA has a special focus on girl’s education and children with special needs.
 The programme seeks to open new schools in those habitations which do not have
schooling facilities
 It seeks to strengthen existing school infrastructure through provision of additional
class rooms, toilets, drinking water, maintenance grant and school improvement
grants.
 The programme provides quality elementary education including life skills
 It also provides computer education to bridge the digital divide
 Existing schools with inadequate teacher strength is being provided with additional
teachers, while the capacity of existing teachers is being strengthened by extensive
training, grants for developing teaching-learning materials and strengthening of the
academic support structure at a cluster, block and district level.

Role Of Private Sector In SSA

Though the Sarva Shiksha Abhiyan is being administered through government and
government aided schools, some private unaided schools are also actively involved in
contributing towards universal elementary education. Recently, the government entered


into an agreement with the World Bank for assistance to the tune of US $ 600 million
to fund the second phase of the Sarva Shiksha Abhiyan.


Rashtriya Swasthya Bima Yojna (RSBY)

Nodal Ministry: Ministry of Labour and Employment

Year of launch: Launched in October 2007, operational since April, 2008

Budget: The Union Budget 2012-13 allocated Rs 1096.7 crore for the scheme

Progress: Under the scheme more than 3.21 crore smart cards have been issued under as
on July 2012

Rashtriya Swasthya Bima Yojna (RSBY) aims to provide health insurance coverage for Below
Poverty Line (BPL) families. The beneficiary is any Below Poverty Line (BPL) family, whose
information is included in the district BPL list prepared by the State government. The
eligible family needs to come to the enrollment station, and the identity of the household
head needs to be confirmed by the authorized official.

The Ministry of Labour & Employment has extended the Rashtriya Swasthya Bima Yojana
(RSBY) to domestic workers as well as MGNREGA beneficiaries. This scheme will also cover
people who work in unorganized sectors in hazardous conditions. It has also been extended
to licensed porters, licensed vendors and licensed hawkers on the Railways in consultation
with Ministry of Labour & Employment.

Objectives

 To provide protection to BPL households from financial liabilities arising out of
health shocks those involve hospitalization.

Salient Features

 Beneficiaries under RSBY are entitled to hospitalization coverage up to Rs. 30,000/-
for most of the diseases that require hospitalization.
 Government has fixed the package rates for the hospitals for a large number of
interventions.
 Pre-existing conditions are covered from day one and there is no age limit.
 Coverage extends to five members of the family which includes the head of
household, spouse and up to three dependents.
 Beneficiaries need to pay only Rs 30/- as registration fee while Central and State
Government pays the premium to the insurer selected by the State Government on
the basis of a competitive bidding.
 The premium for RSBY is different in different set of districts
 Government pays the premium for RSBY.
 Contribution by Government of India: 75% of the estimated annual premium of
Rs.750, subject to a maximum of Rs. 565 per family per annum.
 Central Government to pay 90% in case of Jammu & Kashmir and North east States
 State Government pays the remaining premium


Jawaharlal Nehru National Urban Renewal Mission
(JNNURM)

Year of Launch: December 2005. The mission was launched for a period of seven years.

Nodal Ministry: Ministry of Housing & Urban Poverty Alleviation

Budget: In the first phase, the government had planned to spend about Rs 81,000 crore, of
which Rs 42,000 crore was to come from the Centre.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) comprises four
schemes. It funds specific projects for urban infrastructure and basic urban services in 65
cities of India through two schemes, i.e. the Scheme for Urban Infrastructure and
Governance (UIG) and the Scheme for Basic Services to the Urban Poor (BSUP).

The other two schemes, i.e. the Urban Infrastructure Development Scheme for Small and
Medium Towns (UIDSSMT) and the Integrated Housing and Slum Development Programme
(IHSDP) cover non-Mission cities and towns with the aim of integrated provision of basic
entitlements and services to all including the urban poor.

Urban Infrastructure Development Scheme for Small and Medium Towns
(UIDSSMT)

Urban Renewal is one of the thrust areas in the National Common Minimum Programme of
the Government and accordingly Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) was launched on 3rd December 2005 with an investment of Rs.1,00,000.00
crores in Mission period of seven years beginning 2005-06. Urban Infrastructure
Development Scheme for Small and Medium Towns (UIDSSMT) is one of the components of
JNNURM. The Mission is the single largest initiative of the Government of India for planned
development of cities and towns. (To know more about the Scheme, clickhere)

Integrated Housing and Slum Development Programme (IHSDP)

Integrated Housing & Slum Development Programme aims at combining the existing
schemes of VAMBAY and NSDP under the new IHSDP scheme for having an integrated
approach in ameliorating the conditions of the urban slum dwellers who do not possess
adequate shelter and reside in dilapidated conditions.

The mission has completed its normal tenure of 7 years on March 31, 2012 and the
Government has extended the period for 2 years i.e. upto March 2014 for completion of
ongoing projects and reforms only. (To know more about the Scheme, click here)

Objectives Of The Mission

The objectives of the JNNURM are to ensure that the following are achieved in the urban
sector:

 Focussed attention to integrated development of infrastructure services in cities
covered under the Mission
 Establishment of linkages between asset-creation and asset-management through a
slew of reforms for long-term project sustainability


 Ensuring adequate funds to meet the deficiencies in urban infrastructural services
 Planned development of identified cities including peri-urban areas, outgrowths and
urban corridors leading to dispersed urbanisation
 Scale-up delivery of civic amenities and provision of utilities with emphasis on
universal access to the urban poor
 Special focus on urban renewal programme for the old city areas to reduce congestion
 Provision of basic services to the urban poor including security of tenure at affordable
prices, improved housing, water supply and sanitation, and ensuring delivery of other
existing universal services of the government for education, health and social
security.
 Under the JNNURM, the Government of India enters into partnership with state
governments and Urban Local Bodies (ULBs).
 As a first step, the ULB has to prepare a perspective plan or a City Development Plan
(CDP), which is followed by a Detailed Project Report (DPR) in line with the
priorities laid out in the CDP.
 The state government and the ULB of a Mission city are required to sign a
memorandum of agreement (MoA) with the Government of India, where both the
state government and the ULB commit to a set of reforms and they all agree to share
in the funding of the project.
 The state government and the ULB are expected to make specified parallel financial
contributions along with the Government of India.
 For large cities with population of more than 4 million, a 35 per cent grant is made by
the Government of India, 15 per cent by the state government, and 50 per cent by the
ULB.
 In the case of cities with population between 1 and 4 million, 50 per cent is provided
by the Government of India, 20 per cent by the state government, and 30 per cent by
the ULB.
 For all other cities, the Government of India provides 80 per cent of the grant, while
the state government and the ULB contribute 10 per cent each.
 Cities in north-eastern states and Jammu and Kashmir receive 90 per cent grant
from the Government of India and 10 per cent from the state government.

Salient Features
 Under the JNNURM, the Government of India enters into partnership with state
governments and Urban Local Bodies (ULBs).
 As a first step, the ULB has to prepare a perspective plan or a City Development Plan
(CDP), which is followed by a Detailed Project Report (DPR) in line with the priorities
laid out in the CDP.
 The state government and the ULB of a Mission city are required to sign a
memorandum of agreement (MoA) with the Government of India, where both the
state government and the ULB commit to a set of reforms and they all agree to share
in the funding of the project.
 The state government and the ULB are expected to make specified parallel financial
contributions along with the Government of India.
 For large cities with population of more than 4 million, a 35 per cent grant is made by


the Government of India, 15 per cent by the state government, and 50 per cent by the
ULB.
 In the case of cities with population between 1 and 4 million, 50 per cent is provided
by the Government of India, 20 per cent by the state government, and 30 per cent by
the ULB.
 For all other cities, the Government of India provides 80 per cent of the grant, while
the state government and the ULB contribute 10 per cent each.
 Cities in north-eastern states and Jammu and Kashmir receive 90 per cent grant
from the Government of India and 10 per cent from the state government.

NIJNNURM or JNNURM II

High Powered Expert Committee (HPEC) for estimating the investment requirement for
urban infrastructure has recommended New Improved JNNURM (NIJNNURM) for the 12th
five year plan.

Main features of the NIJNNURM spelt out by the committee are:

 Coverage — Accessible to all cities/towns – big and small
 Scale — 0.25 per cent of GDP annually
 Duration — 20 years
 City Differentials — Smaller cities and towns should be treated differently from
larger cities and metros for funding, capacity building and reform content and timelines
 State Funding: State governments not required to make any financial contribution
towards the NIJNNURM because of the Committee’s recommendation for devolution
Union Ministry of Urban development, and Housing and Urban Poverty Alleviation, in
consultation with other relevant agencies are putting together detailed guidelines for the
NIJNNURM.


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Government of Indian Important Schemes 2012-13

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