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Urban Infrastructure Development Scheme For Small & Medium Towns (UIDSSMT)  

Scheme Overview
Salient Features


             Scheme Overview 


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 a nd towns.


Out of the total population of 1027 million as per Census 2001, about 285 million live in urban areas in India. The process of urbanization has gathered considerable momentum over the last 50 years. The proportion of urban population to total population has increased from 17 percent in 1951 to 28 percent in 2001 and this ratio is expected to cross 40% by 2021.

Cities and towns are emerging as centres of domestic and international investments where most of the commercial activities take place. The present contribution of cities and towns in country’s Gross Domestic Product (GDP) is 55% and it is estimated that cities and towns/urban areas will contribute to about 65% of GDP by 2011.

The higher productivity of any urban area depends on the availability and quality of infrastructure services. Urban economic activities are dependent upon urban infrastructure like roads, water supply, power, telecommunication, mass transportation and other civic infrastructure like sanitation and solid waste management.

Massive urban growth has led to complex problems of inadequacy of basic urban services. About 21% of urban population is living in squatter settlements where access to the basic services is very poor or very substandard. About 80% of population leaving in urban areas though has access to safe drinking water but there are severe deficiencies in regard to equitable distribution of water. As per estimates about 46% of households have water borne toilets while only 36% are connected with public sewerage system. Almost half of the solid waste generated in towns & cities remains uncollected. The town roads are inadequate to meet the growing traffic demand which in turn leads to traffic congestion. Inadequacy of minimum basic services in urban areas has resulted in deterioration of quality of life. The infrastructure development could not keep pace with rate of urbanization. The Urban Local Bodies (ULB) and Municipal Corporation are primarily responsible for providing minimum basic services to the inhabitants. The ULBs/Municipal Corporations are unable to cope up with the increasing demand of providing quality urban services in towns and cities due to lack of resources. From time to time Government of India provided central assistance through number of centrally sponsored schemes like Accelerated Urban Water Supply Programme, Low Cost Sanitation Programme, Mega City Scheme, National Slum Development Prorgramme, Swarna Jayanthi Shahari Rozgar Yojana, Valmiki Ambedkar Awas Yojna and Scheme for Integrated Development of Small and Medium Towns.

In order to bridge the resource gap that cities and towns are facing today, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was lunched. JNNURM is a Mission mode approach that integrates the two pressing needs- massive investments/resource required for infrastructure development and at the same time urban reforms those are required to sustain big investments. JNNURM is a reform oriented Government of India assisted fund which would be provided as a grant to a set of 63 identified large cities in the country and will cover all other census towns under Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) a component of JNNURM. The Mission aims to encourage reforms and fast track infrastructure development. The focus is on efficiency in urban infrastructure and services delivery mechanism, community participation, accountability of ULBs / Parastatal agency towards citizens.    


Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) subsumed the existing schemes of Integrated Development of Small and Medium Towns (IDSMT) and Accelerated Urban Water Supply Programme (AUWSP). The objectives of the Scheme are:


  • Improve infrastructural facilities and help create durable public assets and quality oriented services in cities& towns

  • Enhance public-private-partnership in infrastructural development and

  • Promote planned integrated development of towns and cities.

 All towns/cities as per 2001 census except 63 Mission cities/Urban Agglomeration covered under JNNURM are eligible to be covered under the scheme. The components for assistance under the Scheme include all urban infrastructure development projects such as water supply, roads, parking space, drainage, solid waste management, sewerage, urban renewal, preservation of water bodies and prevention of soil erosion.




As per UIDSSMT Guidelines, Urban Local Bodies are required to prepare the Detailed Project Reports (DPRs) keeping in view the priorities of development and critical problem in the respective town and submit the same to the identified State Level Nodal Agency (SLNA). The SLNA is required to appraise the DPR either in house or through outsourcing or through State Level Technical Agencies. After appraisal, SLNA will submit the Appraised Reports to the State Level Sanctioning Committee (SLSC). The SLNA/SLSC will send copies of the Appraised Reports to all the members of the SLSC including Ministry and TCPO for their views 15 days in advance to the meeting of the SLSC. All the projects are considered by the SLSC and approved. On approval by SLSC, the minutes along with recommendation are sent by the State Govt. to the Ministry of Urban Development. On receipt of Minutes from SLSC the MOUD process the proposal for release of central assistance, sign the Memorandum of Agreement (MOA) for urban reforms with State Govt. and send the release proposal to Ministry of Finance.

 The sharing of funds is in the ratio of 80:10 between Central Government & State Government and the balance 10% could be raised by the nodal / implementing agencies including ULBs from the internal resources or from financial institutions.  However, in case of cities / towns in North Eastern States and Jammu & Kashmir sharing of funds would be in the ratio of 90:10 between Central & State Government.

 Fifty percent of the Central share (Additional Central Assistance) is released on signing of Memorandum of Agreement with the State Government / State Level Nodal Agency, after ascertaining availability of state share. Balance 50% of the central share is released on submission of Utilization Certificates by nodal agency for 70% of funds (Central & State grants) released earlier. After due assessment of status of implementation of activities for which incentives are sought, State Level Sanctioning Committee may sanction additional central grant upto a maximum of 5% as incentive to implementing agencies.

 Ministry of Urban Development monitors the scheme periodically. Monitoring Committee under the chairmanship of Joint Secretary (UD) monitors the progress. State Level Nodal Agency are required to send quarterly progress report to the Ministry of Urban Development through Town and Country Planning Organization which are to be scrutinized by TCPO and prepare status report from time to time. SLSC is to ensure quarterly monitoring of various projects sanctioned under the programme.

 At the end of the year, Town and Country Planning Organisation (TCPO) is to prepare status report on the Scheme in consultation with Ministry of Urban Development every year. The present status report includes cumulative status of last three years as well as separately for the FY 2007-08.



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