Lok Sabha Question No. 371 (UNSTARRED), answered on 2015-07-22
Subject: Assistance for Urban Schemes
Ministry: URBAN DEVELOPMENT
Asked by: SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA MINISTRY OF URBAN DEVELOPMENT

## LOK SABHA

UNSTARRED QUESTION NO. 371

## TO BE ANSWERED ON 22.07.2015

## ASSISTANCE FOR URBAN SCHEMES IN KARNATAKA

No. 371

KUMARI SHOBHA KARANDLAJE:

Will the Minister of URBAN DEVELOPMENT be pleased to state :

- a) Whether the Government of Karnataka had sought continued support to the schemes  that were launched under the erstwhile JnNURM;
- b) If so, the action taken/ being taken by the Ministry;
- c) Whether  those  schemes  sanctioned  during  2005-2012  and
4. reported  progress  of  moiré  than  50%  by  Government  of Karnataka would continue to get central support;
- d) If so, the details thereof;
- e) Whether  the  schemes  sanctioned  during  2012-14  and  were released first instalment would be supported till 2017 and the remaining  need  to  be  submitted  again  under  the  new  Atal Mission  for  Rejuvenation  and  Urban  transformation  (AMRUT) and States are given the liberty of prioritizing and sanctioning them; and
- f) If so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF URBAN DEVELOPMENT

(SHRI BABUL SUPRIYO)

- a) & b): Yes Madam, The Utilization Certificates (UCs) sent by the Government of Karnataka were examined and the funds were  released  for  the  projects  meeting  the  criteria  as  per JnNURM guidelines.

- c) &  d):    As  per  the  decision  of  Government  of  India,  for  the incomplete projects of JnNURM sanctioned up to 31.03.2012 in which 50% or more of the ACA has already been released and  physical  progress  is  at  least  50%  as  on  31.03.2014 according  to  the  reports  given  by  the  State  Governments, the funding would be available up to 31.03.2017. The details of projects sanctioned for Karnataka under JnNURM during 2005-12  and  which  are  eligible  for  funding  till  31.03.2017, are  annexed.  In  so  far  as  funding  for  Buses  is  concerned, 100%  ACA  has  already  been  released  for  bus  funding projects sanctioned for Karnataka during 2005-12.
- d) &  f):  Yes  Madam,  the  projects  sanctioned  during  the Transition  Phase  i.e.  during  2012-14,  and  where  first instalment was  released, are eligible for funding till 31.03.2017. The remaining projects where first instalment could  not  be  released  have  been  considered  to  be  nonsanctioned. JnNURM has already concluded on 31.03.2014. The  State Government  is  free to  submit proposals under other urban development schemes including  AMRUT  as  per  the  relevant  guidelines..  Under the  new  Mission  AMRUT,  GoI  shall  approve  the  State Annual Action Plan (SAAP) and States/UTs shall appraise, sanction  and  execute  projects  at  their  end  making  the States/UTs equal partners in planning and implementation of projects.

******

## Implementation staus of projects which will get continued support from Central Government (UIG)

|   Sl. No. | Name of the State   | Name of the City   | Project Title                                                                                                                                                                                        | Sector                        | Approved Cost   | Date of CSMC / CCEA / CCI Meeting/Proje ct Approval   | Total ACA Commitment (Central Share)   |   1st ACA Released |   2nd ACA Released |   3rd ACA Released | As per MoF Release Order - ACA Released till date   | %of work completed (Physical Progress)   | Financial Progress   |
|-----------|---------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|-----------------|-------------------------------------------------------|----------------------------------------|--------------------|--------------------|--------------------|-----------------------------------------------------|------------------------------------------|----------------------|
|         1 | Karnataka           | Bangalore          | Remodelling of Primary and Secondary storm water drawin in Bangalore city at Vrushabhavathi valley including Kethamaranahalli and arkavathi minor valley I and Kathriguppa minor valley III (3 DPRs) | Drainage / Storm Water Drains | 42,089.00       | 24-Nov-06                                             | 7,989.10                               |            1997.27 |            1997.27 |            1997.27 | 5,991.81                                            | 57%                                      | 75%                  |
|         2 | Karnataka           | Bangalore          | Remodelling of Primary and Secondary storm water drawin in Bangalore city, Koramangala valley                                                                                                        | Drainage / Storm Water Drains | 12,858.00       | 24-Nov-06                                             | 3,902.15                               |             975.53 |             975.53 |             975.53 | 2,926.59                                            | 54%                                      | 75%                  |
|         3 | Karnataka           | Bangalore          | Underground Drainage works in Kengeri                                                                                                                                                                | Sewerage                      | 1,876.36        | 7-Sep-07                                              | 656.73                                 |             164.18 |              98.51 |             164.18 | 426.87                                              | 75%                                      | 75%                  |
|         4 | Karnataka           | Mysore             | Remodelling of water supply Distribution network ,Automation and Integrated Management System for Mysore City                                                                                        | Water supply                  | 17,917.75       | 8-Dec-06                                              | 14,334.20                              |            3890.80 |            3890.08 |            2334.48 | 10,115.36                                           | 75%                                      | 75%                  |

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## Mission Statement & Guidelines

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## Ministry of Urban Development Government of India June 2015

## Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

## Mission Statement & Guidelines

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## Government of India Ministry of Urban Development (June, 2015)

## Contents

| 1.                                                           | Thrust areas                                                 | 6   |
|--------------------------------------------------------------|--------------------------------------------------------------|-----|
| 2.                                                           | Coverage                                                     | 6   |
| 3.                                                           | Mission Components                                           | 6   |
| 4.                                                           | Fund Allocation                                              | 8   |
| 5.                                                           | Components to be Funded                                      | 10  |
| 6.                                                           | Preparation of Service Level Improvement Plans (SLIPs)       | 11  |
| 7.                                                           | State Annual Action Plan (SAAP)                              | 13  |
| 8.                                                           | Execution                                                    | 15  |
| 9.                                                           | Release of funds                                             | 17  |
| 10.                                                          | Programme Management Structure                               | 19  |
| 11.                                                          | Appraisal of DPRs for projects                               | 22  |
| 12.                                                          | Urban Reforms                                                | 24  |
| 13.                                                          | Capacity building                                            | 24  |
| 14.                                                          | Monitoring of projects                                       | 25  |
| 15.                                                          | District Level Review and Monitoring Committee (DLRMC)       | 25  |
| 16.                                                          | Audit and litigation matters                                 | 26  |
| 17.                                                          | Incomplete projects of JnNURM                                | 26  |
| Annexures                                                    | Annexures                                                    |     |
| Annexure 1: Reforms Milestones andTimelines for AMRUT Cities | Annexure 1: Reforms Milestones andTimelines for AMRUT Cities | 29  |
| Annexure 2: Format of State Annual Action Plan               | Annexure 2: Format of State Annual Action Plan               | 31  |
| Annexure 3: List of Smart Solutions Developed by C-DAC       | Annexure 3: List of Smart Solutions Developed by C-DAC       | 59  |
| Annexure 4: Score Card for Cities/States                     | Annexure 4: Score Card for Cities/States                     | 60  |
| Annexure 5: Utilization Certificate Format (City Wise)       | Annexure 5: Utilization Certificate Format (City Wise)       | 61  |
| Annexure 6: Project Funds Request                            | Annexure 6: Project Funds Request                            | 62  |
| Annexure 7: Annual Capacity Building Plan                    | Annexure 7: Annual Capacity Building Plan                    | 65  |
| Annexure 8: Scope of End-to-End Support                      | Annexure 8: Scope of End-to-End Support                      | 74  |

## Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

Providing basic services (e.g. water supply, sewerage, urban transport) to households and build amenities in cities which will improve the quality of life for all, especially the poor and the disadvantaged is a national priority. An estimate of the funds required over a 20 year period, at 2009-10 prices, was made by the High Powered Expert Committee (HPEC) during 2011. The Committee estimated that Rs. 39.2 lakh crore was required for creation of urban infrastructure, including Rs. 17.3 lakh crore for urban roads and Rs. 8 lakh crore for services, such as water supply, sewerage, solid waste management and  storm  water  drains.  Moreover,  the  requirement  for  Operation  and  Maintenance  (O&M)  was separately estimated to be Rs. 19.9 lakh crore.

Learnings from the earlier Mission have shown that infrastructure creation should have a direct impact on the real needs of people, such as providing taps and toilet connections to all households. This means that the focus should be on infrastructure creation that has a direct link to provision of better services to people and this was explicitly stated by the President of India in his speeches to the Joint Sessions of the Parliament on 9 June, 2014 and 23 February, 2015.

Therefore, the purpose of Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is to (i) ensure that every household has access to a tap with assured supply of water and a sewerage connection; (ii) increase the amenity value of cities by developing greenery and well maintained open spaces (e.g. parks); and (iii) reduce pollution by switching to public transport or constructing facilities for  non-motorized  transport  (e.g.  walking  and  cycling).  All  these  outcomes  are  valued  by  citizens, particularly  women,  and  indicators  and  standards  have  been  prescribed  by  the  Ministry  of  Urban Development (MoUD) in the form of Service Level Benchmarks (SLBs).

However, the pursuit of better outcomes will not stop with the provision of taps and sewerage connections to all (universal coverage). Other benchmarks will be targeted following a step-by-step process after achieving the benchmark of universal coverage. Such a gradual process of achieving benchmarks is called ' incrementalism ' . This does not mean that other SLBs are less important, but that in the incremental process SLBs are achieved gradually according to National Priorities. In the case of urban transport the benchmark will be to reduce pollution in cities while construction and maintenance of storm water drains is expected to reduce, and ultimately eliminate, flooding in cities, thereby making cities resilient.

Earlier,  the  MoUD  used  to  give  project-by-project  sanctions.  In  the  AMRUT  this  has  been replaced by approval of the State Annual Action Plan once a year by the MoUD and the States have to give project sanctions and approval at their end. In this way, the AMRUT makes States equal partners in planning and implementation of projects, thus actualizing the spirit of cooperative federalism .

A  sound  institutional  structure  is  the  foundation  to  make  Missions  successful.  Therefore, Capacity  Building  and  a  set  of  Reforms  have  been  included  in  the  Mission.  Reforms  will  lead  to improvement in service delivery, mobilization of resources and making municipal functioning more transparent  and  functionaries  more  accountable,  while  Capacity  Building  will  empower  municipal functionaries and lead to timely completion of projects.

## 1. Thrust areas

- 1.1 The Mission will focus on the following Thrust Areas:
- i. water supply,
- ii. sewerage facilities and septage management,
- iii. storm water drains to reduce flooding,
- iv. pedestrian, non-motorized and public transport facilities, parking spaces, and
- v. enhancing amenity value of cities by creating and upgrading green spaces, parks and recreation centers, especially for children.

## 2. Coverage

- 2.1 Five  hundred  cities  will  be  taken  up  under  AMRUT. The  list  of  cities  will  be  notified  at  an appropriate time. The category of cities that will be covered in the AMRUT is given below:
- i. All  Cities  and Towns  with  a  population  of  over  one  lakh  with  notified  Municipalities, including Cantonment Boards (Civilian areas),
- ii. All Capital Cities/Towns of States/ UTs, not covered in 2.1(i),
- iii. All Cities/ Towns classified as Heritage Cities by MoUD under the HRIDAY Scheme,
- iv. Thirteen Cities and Towns on the stem of the main rivers with a population above 75,000 and less than 1 lakh, and
- v. Ten Cities from hill states, islands and tourist destinations (not more than one from each State).

## 3. Mission Components

- 3.1 The components of the AMRUT consist of capacity building, reform implementation, water supply,  sewerage  and  septage  management,  storm  water  drainage,  urban  transport  and development of green spaces and parks. During the process of planning, the Urban Local Bodies (ULBs) will strive to include some smart features in the physical infrastructure components. The details of the Mission components are given below.

## 3.1.1 Water Supply

- i. Water  supply  systems  including  augmentation  of  existing  water  supply,  water treatment plants and universal metering.
- ii. Rehabilitation of old water supply systems, including treatment plants.
- iii. Rejuvenation of water bodies specifically for drinking water supply and recharging of ground water.

- iv. Special water supply arrangement for difficult areas, hill and coastal cities, including those having water quality problems (e.g. arsenic, fluoride)

## 3.1.2 Sewerage

- i. Decentralised, networked underground sewerage systems, including augmentation of existing sewerage systems and sewage treatment plants.
- ii. Rehabilitation of old sewerage system and treatment plants.
- iii. Recycling of water for beneficial purposes and reuse of wastewater.

## 3.1.3 Septage

- i. Faecal Sludge Management- cleaning, transportation and treatment in a cost-effective manner.
- ii. Mechanical  and  biological  cleaning  of  sewers  and  septic  tanks  and  recovery  of operational cost in full.

## 3.1.4 Storm Water Drainage

- i. Construction and improvement of drains and storm water drains in order to reduce and eliminate flooding.

## 3.1.5 Urban Transport

- i. Ferry vessels for inland waterways (excluding port/bay infrastructure) and buses.
- ii. Footpaths/walkways,  sidewalks,  foot  over-bridges  and  facilities  for  non-motorised transport (e.g. bicycles).
- iii. Multi-level parking.
- iv. Bus Rapid Transit System (BRTS).

## 3.1.6 Green space and parks

- i. Development  of  green  space  and  parks  with  special  provision  for  child-friendly components.

## 3.1.7 Reforms management & support

- i. Support structures, activities and funding support for reform implementation.
- ii. Independent Reform monitoring agencies.

## 3.1.8 Capacity Building

- i. This has two components- individual and institutional capacity building.
- ii. The capacity building will not be limited to the Mission Cities, but will be extended to other ULBs as well.
- iii. Continuation  of  the  Comprehensive  Capacity  Building  Programme  (CCBP)  after  its realignment towards the new Missions.

## 3.1.9 Indicative (not exhaustive)  list of inadmissible components

- i. Purchase of land for projects or project related works,
- ii. Staff salaries of both the State Governments/ULBs,
- iii. Power,
- iv. Telecom,
- v. Health,
- vi. Education, and
- vii. Wage employment programme and staff component.

## 4. Fund Allocation

- 4.1 The total outlay for AMRUT is Rs. 50,000 crore for five years from FY 2015-16 to FY 2019-20 and the Mission will be operated as a Centrally Sponsored Scheme. The AMRUT may be continued thereafter in the light of an evaluation done by the MoUD and incorporating learnings in the Mission. The Mission funds will consist of the following four parts:
- i. Project fund - 80% of the annual budgetary allocation.
- ii. Incentive for Reforms - 10% of the annual budgetary allocation.
- iii. State funds for Administrative & Office Expenses (A&OE) - 8% of the annual budgetary allocation
- iv. MoUD funds for Administrative & Office Expenses (A&OE) - 2% of the annual budgetary allocation

However, for FY 2015-16 the project fund would be 90% of the annual budgetary allocation as incentive for Reforms will be given only from FY 2016-17 onwards. The Mission funds would be allocated to States/UTs based on the following principles.

## 4.2 Project Fund

The project fund will be divided among States/UTs at the beginning of each year.  An equitable formula will be used to distribute the annual budgetary allocation in which equal (50:50) weightage is given to the urban population of each State/UT (Census 2011) and the number of statutory towns in the State/UT.  As the number of statutory towns are notified by States/UTs and will change during the Mission period, the formula will take into account changes in this number every year.  The amount of project fund allocated will be informed to the States/UTs at the appropriate time.  The Central Assistance (CA) for the projects will be in three instalments of 20:40:40 of the approved cost (Refer para 9).

## 4.3 Incentive for Reform

One  purpose  of  the  Mission  is  to  improve  governance  through  a  set  of  Reforms.  During the Mission period, 11 Reforms will be implemented. The list is given in Annexure 1. The following principles will govern the grant of incentives to States.

- i. Past exprience shows that projects get delayed if release of project funds is linked to  non-completion  of  Reforms.  Therefore,  the  AMRUT  shifts  from  penalization  to

incentivization. Ten percent of the annual budget allocation shall be kept apart and given to the States/UTs every year as incentive for achievement of Reforms. The Mission will give incentives for the previous year at the start of the succeeding Financial Year (FY).  The States/UTs shall do the self-assessment in the prescribed procedure given in Table 5.5 of Annexure 2. The National Mission Directorate, on receipt of the selfassessment, will announce the award of incentive to the States.

- ii. The  incentive  fund  is  an  additionality  that  will  be  provided  by  the  MoUD  and  no matching funds will be required to be given by the State/ULB.
- iii. The State High Power Steering Committee (SHPSC) will decide the use of the incentive amount.  The  incentive  award  will  only  be  used  in  Mission  cities  on  admissible components of the AMRUT,  including new projects.  The SHPSC will inform the MoUD of the use of incentive funds on projects.
- iv. The incentive cannot be used as the State share in project in the AMRUT,  but can be used by the ULBs for their project funding.
- v. Unutilised funds for Reform incentives will be transferred to Project Fund every year.

## 4.4 State Fund (Administrative & Office Expenses)

- i. The  funds  will  be  allocated  to  all  States/UTs  on  the  equitable  formula  given  in para 4.2.
- ii. The use of these funds will be recommended by the SHPSC and will form a part of the State Annual Action Plan (SAAP).
- iii. This fund will be utilised for capacity building programmes and will not be used for purchase of vehicles, construction and maintenance of buildings, creation of posts, payment of salary and purchase of furniture and fixtures, etc.
- iv. Hiring of professionals and support teams on contract to support the implementation of Mission at all levels will be permissible as set out in the guidelines and after following fair and transparent procedures.
- v. The funds for capacity building will be released in similar instalments as given for project funds above.
- vi. Taking up activities connected to E-Municipality as a Service (E-MAAS).
- vii. Displaying the logo and tagline of AMRUT prominently on all projects.
- viii. Institutional  arrangements  that  support  Mission  implementation  will  be  eligible to  be  funded from this fund, including ongoing Comprehensive Capacity Building Programme (CCBP) and Independent Review & Monitoring Agencies (IRMA).

## 4.5 MoUD Fund (Administrative & Office Expenses)

- i. The fund will be utilized at the National Mission Directorate level (including the Urban Transport  Division)  for  capacity  building,  Mission  Directorate,  convening  National &  regional  workshops,  giving  awards  and  recognition  of  best  practices,  up-scaling and  replication  of  best  practices  and  smart  solutions,  commissioning  of  research

- and applied studies through, say, Centres of Excellence and other institutions and international cooperation for capacity building and technology development.
- ii. Taking up activities connected to E-MAAS.
- iii. The Apex Committee will decide on the use of these funds for any other purpose.

## 5. Components to be Funded

- 5.1 The funding pattern of projects indicating the share of Central Government/State Government/ ULBs/private sector is given below.

|   S.No. | Components                                                                                                                                                                                                                       | Funding Pattern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      1. | Water Supply: New, augmentation and rehabilitation of • water supply system. Rejuvenation of water bodies for water • supply and recharge of ground water. Special arrangements for difficult areas, • hills and coastal cities. | One-third of the project cost as grant • from GoI for cities with a population of above 10 lakh. One-half of the project cost as grant for • cities/towns with population up to 10 lakh. Balance funding by State Governments / • ULBs or through private investment. The tender will include O & Mfor five years based on user charges. For the purpose of calculationoftheprojectcost,theO&Mcost will be excluded; however, the States/ULBs will fund the O&M through an appropriate cost recovery mechanism in order to make them self-reliant and cost-effective. The SLIPs (refer para 6) will first provide for provision of water and sewerage connections to all households. |
|      2. | Sewerage: New, augmentation and rehabilitation of • sewerage systems and treatment plants. Recycling water for beneficial purposes • and Reuse of waste water. •                                                                 | One-third of the project cost as grant • from GoI for cities with a population of above 10 lakh. One-half of the project cost as grant for • cities/towns with population up to 10 lakh. Balance funding by State Governments / • ULBs or through private investment. The tender will include O & Mfor five years based on user charges. For the purpose of calculationoftheprojectcost,theO&Mcost will be excluded; however, the States/ULBs will fund the O&M through an appropriate cost recovery mechanism in order to make them self-reliant and cost-effective. The SLIPs (refer para 6) will first provide for provision of water and sewerage connections to all households. |
|      3. | Septage: Faecal sludge management - (cleaning, • transporting and treatment), particularly mechanical & biological cleaning of septic tanks and sewers.                                                                          | One-third of the project cost as grant • from GoI for cities with a population of above 10 lakh. One-half of the project cost as grant for • cities/towns with population up to 10 lakh. Balance funding by State Governments / • ULBs or through private investment. The tender will include O & Mfor five years based on user charges. For the purpose of calculationoftheprojectcost,theO&Mcost will be excluded; however, the States/ULBs will fund the O&M through an appropriate cost recovery mechanism in order to make them self-reliant and cost-effective. The SLIPs (refer para 6) will first provide for provision of water and sewerage connections to all households. |
|      4. | Storm water drains: Construction & improvement of drains • and storm water drains                                                                                                                                                | One-third of the project cost as grant • from GoI for cities with a population of above 10 lakh. One-half of the project cost as grant for • cities/towns with population up to 10 lakh. Balance funding by State Governments / • ULBs or through private investment. The tender will include O & Mfor five years based on user charges. For the purpose of calculationoftheprojectcost,theO&Mcost will be excluded; however, the States/ULBs will fund the O&M through an appropriate cost recovery mechanism in order to make them self-reliant and cost-effective. The SLIPs (refer para 6) will first provide for provision of water and sewerage connections to all households. |
|      5. | Urban transport: Sidewalks, foot over bridges, non- • motorized transport, buses, BRTS, multi- level parking, waterways and ferry vessels.                                                                                       | One-third of the project cost as grant • from GoI for cities with a population of above 10 lakh. One-half of the project cost as grant for • cities/towns with population up to 10 lakh. Balance funding by State Governments / • ULBs or through private investment. The tender will include O & Mfor five years based on user charges. For the purpose of calculationoftheprojectcost,theO&Mcost will be excluded; however, the States/ULBs will fund the O&M through an appropriate cost recovery mechanism in order to make them self-reliant and cost-effective. The SLIPs (refer para 6) will first provide for provision of water and sewerage connections to all households. |

|   6. | Development of green spaces and parks • with special provision for child-friendly components. For parks, ULBs will have to establish a system for maintenance with local resident participation.   | One-half of the project cost by GoI and the total expenditure on these projects will not exceed 2.5%oftheState AnnualAction Plan (SAAP).   |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   7. | Capacity Building and Reforms support •                                                                                                                                                            | Full (100%) by GoI, based on existing norms and unit costs set by the Apex Committee.                                                      |
|   8. | A&OE (PMU/PIU/DPR cost, etc.) •                                                                                                                                                                    | Full (100%) by GoI, based on existing norms and unit costs set by the Apex Committee.                                                      |

## 6 Preparation of Service Level Improvement Plans (SLIPs)

- 6.1 The primary purpose is to cover all households with water supply and sewerage (including septage). For this the Service Level Improvement Plan (SLIP), as given in part 2 of Annexure 2, has to be prepared by each ULB and the strategic steps are given below.
- 6.2 Assess the service level gap: The AMRUT builds on the available data, information and plans on water supply and sewerage with the States/ULBs. If we take the zone as the basic unit to assess existing levels of coverage of water supply and sewerage, the number of households in the zone having water tap/sewerage connections and those not having these facilities will be taken from the Census (2011) or the baseline survey done by the MoUD 1  (No new baseline survey  is  envisaged  and  the  State/ULB  should  accept  /endorse  the  earlier  baseline).  The zone-wise gaps will be added to arrive at the service level gap in water supply and sewerage in the ULB.
- 6.3 Bridge the gap: Once the gap between the existing number of households having water and sewerage/septage connections against the total number of households is computed, plans will be prepared to bridge the gap by using one or more of the components set out in para 3 under the heads of water supply and sewerage/septage. All households in a zone will be covered and this exercise should be done separately for water supply and sewerage and will be a part of the SLIP (Table 2.1; Annexure 2).
- 6.4 Examine alternatives: The ULBs will have to examine alternatives available to them. For example, one State/ULB may require addressing gaps in distribution. Another State/ULB may require a common grid connecting many localities to a distant water source.  In sewerage, some States/ULBs may choose a mix of centralised and decentralised systems. A State/ULB with high urban densities may choose centralised network based systems. Moreover, considering the cost of sewerage network systems, some ULBs may opt for efficient septage management systems.  Therefore,  a  one-size-fits-all  approach  will  not  work  and  alternatives  should  be generated in order to do more with less resources and do it in a way that the benefits reach the people in the form of taps and toilets.

1 See Service Levels in Urban Water and Sanitation Sector (2012), Status Report (2010-11), MoUD, Government of India.

- 6.5 Estimate the cost: The cost (both capital and O&M) of each project will be prepared based on line (or abstract) estimates. An important output will be the total requirement of funds for achieving universal coverage for water supply and sewerage (Master Plans) for each ULB (see Table 2.1; Annexure 2) and the full State (see Table 3.1; Annexure 2). All relevant and appropriate technical and financial norms prescribed in the JnNURM will apply to the AMRUT Mission; no contingencies or cost escalation will be permissible and no incomplete or already started projects will be included.
- 6.6 Prioritize: The maximum amount the Central Government will give as project finance is given in  para  5  above.  If  resources  are  available  to  achieve  universal  coverage  in  one  year,  then the ULB will propose the same. However, if sufficient resources are not available to achieve universal coverage in the ULB and the Mission has to be implemented in several years, the ULB will prioritize the zones to be taken up in the first, second, third, fourth and fifth year of the Mission. Universal coverage will start with water supply followed by sewerage in that order. Depending on availability of funds, universal coverage of water supply and sewerage can also be done together.  After universal coverage is achieved, the State/ULBs will decide on the next priority - a ULB may decide to construct storm water drains or fund urban transport depending on whether the local priority is to reduce frequent flooding or reduce vehicleinduced pollution.  All in all, universal coverage of water and sewerage is a National Priority and this is the first objective to be achieved by the States/ULBs.
- 6.7 However, as given in para 5 above, upto 2.5 percent of the annual allocation may be used to develop parks having child friendly features together with preparing guidelines to entrust park maintenance with funds and functionaries to the local interested stakeholders. This is also a Reform in the AMRUT.
- 6.8 Out-of-box thinking: There should be a 'decisive break with the past' during the preparation of the SLIPs by the ULBs.  For example, instead of pumping water from long distances involving huge capital and electricity consumption costs, the States/ULBs should examine alternatives, such as water recycling and reuse . The benchmark is that at least 20 percent of the waste water generated in ULBs should be recycled and the norms for recycled water for non-potable uses have already been prescribed. Another way is to make the water system more efficient by reducing unaccounted water (non-revenue water) to less than 20 percent, which is also a part of the Reforms to be implemented by the States/ULBs and is supported in the AMRUT.
- 6.9 During design and preparation of technical estimate, low cost options will be given preference (frugal engineering) and Smart Solutions applied in order to reduce costs and make services better.  A  list  of  Smart  Solutions  developed  by  the  Centre  for  Development  of  Advanced Computing (C-DAC) is given in Annexure 3.
- 6.10 Conditionalities: Non-availability of land or delayed availability was one of the key factors that had delayed projects in the earlier Mission. Another connected issue is obtaining clearances from other departments. Therefore, in the AMRUT no projects should be included which do not have land available and no project work order should be issued if all clearances

from all the departments have not been received by that time. Moreover, the cost of land purchase will be borne by the States/ULBs. Finally, the AMRUT funds should not be used to complete some components in the JnNURM which were shown in the Detailed Project Report submitted and approved by the MoUD. For example, if the main lines have been laid by using JnNURM grants and provision of taps was also a part of the project, but has not been provided by the ULB, then such left over portions are not eligible for funding in the AMRUT.

- 6.11 Resilience: Incorporation of resilience and securing projects against disasters will be done at the stage of preparation of the SLIP itself, particularly for the vulnerable and the poor, and at the project development stage where disaster-secure engineering and structural norms would be included in the design. This will be again ensured by the States/ULBs while preparing the SAAPs.
- 6.12 Financing: Financing of projects, including the O&M costs,  is a key aspect of the SLIPs.  For each option, the capital cost and O&M cost has to be estimated. Different sources of finance have to be identified. At the ULB level, the contribution from internal sources (e.g. taxes, fees, others), external  sources  (e.g.  transfers  from  States,  project  fund  from  Central/State  Governments, others) and possibilities of debt, bonds and others has to be assessed. The challenge is to motivate citizens to share the additional cost. One way is to take a loan for project funding for a locality and repay the loan through an increase in property taxes for, say, 10 years in that locality only.  This is called Tax Increment Financing (TIF).
- 6.13 Dovetailing of funds through convergence with other Central and State Government Programs/ Schemes with the AMRUT is also another source of funding. At the stage of preparation of SLIP itself, cities must seek convergence with Smart Cities Mission, Swachh Bharat Mission (SBM), National Heritage City Development and Augmentation Yojana (HRIDAY), Digital India, Skill development, Namami Gange, Housing for All, etc.
- 6.14 Reforms: Implementation of Reforms is an important objective of the SLIP. The ULBs have to prepare a roadmap for Reforms which will be consolidated by the State Mission Director and included as part of the SAAP .  Some Reforms require more funds than others.  Assessment and collection of user charges, property tax, fee, and so on are examples of activities requiring hardly any additional funds. If funds are required to implement Reforms they can be accessed from, (i) the allowed components of the AMRUT, (ii) the State A&OE funds, or (iii) the Capacity Building for Urban Development (CBUD) program funded by the World Bank.  All these should form part of the SAAP; however, duplication and redundancy should be avoided at the time of preparing the SLIP and the SAAP (Annexures 2 & 7).

## 7. State Annual Action Plan (SAAP)

- 7.1 The basic building block for the SAAP will be the SLIPs prepared by the ULBs. At the State level, the SLIPs of all Mission cities will be aggregated into the SAAP .  Therefore, the SAAP is basically a State level service improvement plan indicating the year-wise improvements in water-supply and sewerage connections to households.

- 7.2 Principles  of  Prioritization: The  States  will  decide  on  the  inter-ULB  allocation  based  on gap analysis and financial strength of ULBs and choose those ULBs in the first year that have higher gaps in provision of water supply and sewerage. The prioritization of ULBs for funding will be done after consultation with local MPs, Mayors and Commissioners of the concerned ULBs. Financially weaker ULBs can be financed to a greater extent. Urban Local Bodies with a high proportion of urban poor could receive a higher share.  Moreover, the potential Smart cities  will  be  given  first  preference  because  the  Smart  Cities  Mission  and  the  AMRUT  are complementary. Based on prioritization by the States and resources available, the States will send the SAAP upto three times the Central Assistance (CA) allocated to the State during 2015-16 (because a project is likely to take three years for completion and the funding will be given in three instalments) and the outstanding CA of the previous year plus the annual allocation of the year in the subsequent years. As a result, different ULBs within a State may become entitled to different funding patterns, but the share of the Centre will be fixed as given in these Guidelines.
- 7.3 Importance of O&M: Experience with past programmes has shown that once projects are completed the ULBs pay little attention to the operation and maintenance of infrastructure assets  created. Therefore,  projects  being  proposed  to  the  MoUD  in  the  SAAP  will  include O & M for at least five years to be funded by way of levy of user charges or other revenue streams. However, for the purpose of calculation of the project cost, the O&M cost will be excluded and the States/ULBs will fund the O&M through an appropriate cost recovery mechanism in order to make them self-reliant and cost-effective.
- 7.4 Financing of projects: Financing is an important element of the SAAP. The table given in para 5 indicates the maximum share which will be given by the Central Government. The States/ULBs have to plan for the remaining resource generation at the time of preparation of the SAAP.  The financial share of cities will vary across States. In some States, the ULBs may be in a position to contribute significantly to the project cost as compared to a ULB in another State. Accordingly, States have to decide during formulation of the SAAP how the residual financing (over and above Central Government share) is shared between the State, ULBs and any other source identified by the State/ULB (e.g. PPP , market borrowing). However, the State contribution to the SAAP will not be less than 20 percent of the total project cost.
- 7.5 Importantly, at the State level the SAAP should only contain those projects where complete project cost is completely linked with revenue sources. This will include dovetailing with other sectoral and financial programmes of the Centre and State Governments. A useful way is to create a Financial Intermediary, also a Reform in the AMRUT, in order to pool funds from all sources and release funds to ULBs in time. Such intermediaries will also be able to access external sources of finance, such as debt and bonds, which small and financially distressed ULBs are unable to access. The potential opened by the promulgation of Regulations by the SEBI for municipal bonds can be fully realized by such an intermediary. During the process of developing the SAAP, the States/UTs should explore the possibility of using Public Private

Partnerships (PPP), which should be the preferred execution model. The PPP should include appropriate Service Level Agreements (SLAs) with strong citizen feedback built into it. This will lead to the People Public Private Partnership (PPPP) model.

- 7.6 Approval of SAAP: The SAAP will be approved by the MoUD once a year according to the schedule given by the Apex Committee. The Apex Committee may revise the SAAP,  approve with conditions or return it for rectification of gaps. The AMRUT will provide project funds to ULBs through the States . Some of the criteria to evaluate the SAAP by the MoUD are given below.
- i. How well has the State Government diagnosed service level gaps ?
- ii. How well has the State planned and financed capital expenditure ?
- iii. How well has the State moved towards achievement of universal coverage in water supply and sewerage/septage and thereafter other benchmarks in these two sectors and in urban transport and storm water drain construction ?
- iv. What is  the  expected  level  of  the  financial  support  from  the  Central  Government and  how  well  have  State/ULB  and  other  sources  of  finance  been  identified  and accessed ?
- v. How fairly and equitably have the needs of the ULBs been given due consideration ?
- vi. Have adequate consultations with all stakeholders been done, including citizens, local MPs and other public representatives ?

## 8. Execution

- 8.1 Projects  will  be  executed  by  ULBs .  In  case  the  ULBs  do  not  have  adequate  capacity  to handle projects, the State Government may recommend in SAAP, upon a Resolution passed by  the  ULB,  for  the  execution  of  the  projects  by  specialized  parastatal  agencies  of  the State or Central Governments. Such arrangements should necessarily be executed by way of  a  tripartite  Memorandum of Understanding (MoU) amongst the State Government, the specialized Parastatal agencies and the concerned Municipality. In such a case, the capacity of the ULBs will be augmented through the capacity building component of the AMRUT.  The maintenance and upkeep of the created assets will be the responsibility of the ULB and the State Government.
- 8.2 The MoUD will not give project-by-project approvals or technically sanction project DPRs; the  States/UTs  will  be  solely  responsible  for  these  activities.  The  MoUD  has  prepared comprehensive manuals and issued guidelines and advisories on solid waste management, sewerage, water supply, urban transport, etc. The State Level Technical Committee (SLTC) will ensure compliance with these technical documents. The flow chart given below gives the details of the complete process of planning, approval and implementation of the AMRUT.

Apex Committee allocates annual budget to States

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The SHPSC gets city level Service Level Improvement Plans (SLIPs) prepared in order to provide water supply and sewerage connections to all in the city.

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The SLIPs are aggregated to form the State Annual Action Plans (SAAP).

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The Apex Committee appraises and approves the SAAP.

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Execution begins.

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The ULBs get the DPRs for identified projects approved by the SHPSC which are technically appraised by the SLTC.

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Implementation begins after the detailed technical & financial appraisal of the DPRs.

- 8.3 Some of the factors identified for the slow implementation of projects are related to project design, process of tendering, cost escalation due to delays and delay in calling and settling tenders and difference in approved cost and cost shown in Detailed Project Reports (DPRs). In order to overcome these constraints, the States/ULBs should follow an approach in which end-to-end  support  for  project  design,  development,  implementation  and  management is  provided to ULBs/States by external entities. Specifically, the assistance will be given for preparation of the SLIP , SAAP , DPR, etc. The external entities will be called Project Development and Management Consultants (PDMCs). A model Scope of work for providing end-to-end assistance by external entities is given at Annexure 8 and this will enable States/UTs to procure PDMCs. A model Request for Proposals (RfP) is also available in the Mission Toolkit.

## 9. Release of funds

- 9.1 The funds will be released in three instalments of 20:40:40. The funds will be kept in separate bank account by the implementing agency as was done in the earlier Mission. Immediately after announcement of the AMRUT, each Mission City will be given an advance of Rs. 25 lakh for preparation of SLIP/individual capacity building which will come from the ULB's share of the A&OE funds and will be adjusted in its share at the time of release of the first instalment.
- 9.2 The first  instalment  will  be  released  immediately  after  approval  of  the  SAAP  by  the  Apex Committee. The second and third instalment will be released on receipt of (i) Score Card, (ii)  Utilization  Certificates,  and  (iii)  Project  Funds  Request.  The  request  formats  given  in Annexures 6.1 and 7.3 (capacity building progress) will be sent by the ULBs to the State Mission Directors. In turn, the State Mission Directors will consolidate these requests and send their reports in the formats given in Annexures 6.2 and 7.4 (capacity building progress) alongwith the Score Cards and the Utilization Certificates given in Annexures 4 and 5, respectively, to the MoUD.
- 9.3 These  documents  should  show,  (i)  utilisation  of  75%  of  the  amount  already  released  by the Centre and State according to the funding pattern given in para 5, (ii) utilization of the State/ULB/Private Sector shares, and (iii) meeting the service level milestones as assured in the roadmap contained in SAAP and certified in the report of the Independent Review And Monitoring Agency (IRMA). Importantly, release of the second and third  instalments of CA will be subject to, (a) mobilizing the assured resources as given in the SAAP by the States/UTs, and (b) any other conditions imposed by the SHPSC and the Apex Committee. Recognizing the fact that all approved projects may not be progressing at an equal pace, States may, in exceptional circumstances, submit their proposals for release of second and third instalments for a set of ULBs/projects as and when 75 percent utilization and other conditions are fulfilled (see flow chart on page 18).
- 9.4 At the end of third quarter of every year the Apex Committee will review the utilisation of allocations  by  States  and  shall  reallocate  funds  from  non-performing  to  the  performing States/ULBs based on their performance and potential to utilize funds. Any excess or shortfall

- in the first instalment of 20% released on the basis of estimated cost shall be adjusted while releasing the second instalment of CA which will be based on approved cost. The approved cost is the appraised cost or the tendered cost of the project (whichever is less) and has to be taken into account by the SHPSC. Diversion of Central Grants for purposes other than the Mission projects shall entail levy of penal interest on the amount and any other action by the Apex Committee and may include adverse effect on release of grants.
- 9.5 The learnings from earlier programmes have pointed to the fact that timely release of project funds by the State Governments is critical to project completion; therefore, the States should release the CA funds along with State share to the ULBs within seven working days of release of Central share by MoUD otherwise interest at the rate specified by the Ministry of Finance shall  be  levied  on  the  State  for  any  delay  beyond  seven  days and appropriate deductions made from future instalments.
- 9.6 The flow chart below gives the steps in the release of funds.

Upon approval of the SAAP by the Apex Committee the first instalment (20%) of the Central Assistance is released.

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The States submit their claims for release of second or the third instalment of CA for projects during April, August, November and February for all ULBs that have met the AMRUT conditions for instalment release and send documents given in Annexure 4, 5 and 6.

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The second and the third instalments of 40% each of the approved cost are released, quarterly, after submission of UCs, Project Funds Request (only summary report in Annexure 6.2) and the Score Card showing progress on outcome indicators.

,

## 10. Programme Management Structure

## 10.1 National level

An Apex Committee (AC), chaired by the Secretary, MoUD and comprising representatives of related Ministries and organisations willsupervise the Mission. The composition of the Apex Committee will be:

| i.    | Secretary (MoUD)                                           | Chairman         |
|-------|------------------------------------------------------------|------------------|
| ii.   | Secretary(Department of Expenditure)                       | Member           |
| iii.  | Secretary(Department of Economic Affairs)                  | Member           |
| iv.   | Principal Advisor(HUD), NITI Ayog                          | Member           |
| v.    | Secretary (Drinking Water & Sanitation)                    | Member           |
| vi.   | Secretary(Ministry of Housing & Urban Poverty Alleviation) | Member           |
| vii.  | Secretary (Environment & Forest)                           | Member           |
| viii. | Joint Secretary & FA,MoUD                                  | Member           |
| ix.   | OSD(UT),MoUD                                               | Member           |
| x.    | Adviser(CPHEEO)                                            | Member           |
| xi.   | TCPO                                                       | Member           |
| xii.  | Director, NIUA                                             | Member           |
| xiii. | Mission Director (MoUD)                                    | Member Secretary |

The Apex Committee may co-opt any representative from any Government Department or organisation as Member or invite any expert to participate in its deliberations. The functions of the Apex Committee are:

- i. Approve  the  SAAP  submitted  by  the  State  High  Powered  Steering  Committee, including the Annual Comprehensive Action Plan for Capacity Building of States, the Reform roadmap in the SAAP.
- ii. Allocate and release funds to the States/UTs/Mission Directorate.
- iii. Overall monitoring and supervision of the Mission.
- iv. Advise the  State/UT/implementing  agencies  on  innovative  ways  for  resource mobilization, private financing and land leveraging.
- v. Confirm  appointment  of  organisations,  institutions  or  agencies  for  third  party monitoring (IRMA).
- vi. The Apex Committee may delegate, as it considers appropriate, some of the functions within prescribed limits to the Mission Director for ensuring speedy implementation of the Mission.
- vii. Formulate the threshold of physical progress of project at which to release funds to the States.

The Apex Committee will meet according to requirements but at least once in three months. There will be a National Mission Director, who will not be below the rank of Joint Secretary to Government of India who will be the overall in-charge of all activities related to the Mission. The Mission Directorate will take support from subject matter experts and such staff, as considered necessary. The National Mission Director will be the Member Secretary in the Apex Committee.

## 10.2 State level

A State level High Powered Steering Committee (SHPSC) chaired by the State Chief Secretary, shall  steer  the  Mission  Programme in its entirety. An indicative composition of the SHPSC is given below.

| i.    | Chief Secretary                                 | Chairman         |
|-------|-------------------------------------------------|------------------|
| ii.   | Pr.Secretary(PHE)                               | Member           |
| iii.  | Pr.Secretary(Finance)                           | Member           |
| iv.   | Pr.Secretary(Housing)                           | Member           |
| v.    | Pr. Secretary(Environment & Forest)             | Member           |
| vi.   | Representative ofMoUD                           | Member           |
| vii.  | Mission Director (if different from viii below) | Member           |
| viii. | Pr. Secretary(UD)                               | Member Secretary |

The SHPSC may co-opt member(s) from other State Government Departments/Government organisations and may also invite experts in the field to participate in its deliberations. There would be a State Mission Director who will be an officer not below the rank of Secretary to the State Government, nominated  by  the  State  Government,  with  a  Programme  Management  Unit  (PMU)and  a  Project Development and Management Consultant (PDMC).  With the establishment of PDMCs, the AMRUT  will not support the PMUs and Project Implementation Units (PIUs) set up under earlier Mission. Moreover, the States will ensure that there is no overlap in the functions of these Mission support structures. In case a PMU has already been established under the CCBP, another PMU will not be supported from the Mission funds.  The functions of the SHPSC are:

- i. Identify the gaps in infrastructure based on SLBs, need for individual and institutional capacity  building,  ways  and  means  to  achieve  urban  reforms,  finalisation  of  the financial outlays, etc. of the Mission Cities/Towns.
- ii. Prepare the SAAP based on the SLIPs of the ULBs of the State prioritising cities and projects based on available resources each year, as prescribed in the Mission Statement and Guidelines.
- iii. Approve the projects after they are technically appraised and sanctioned by the State Level Technical Committee (SLTC).All project approvals shall be accorded by the State HPSC provided these projects are included in the approved SAAP.  No project shall be  referred  to  the  MoUD  for  sanction.In  the  entire  project  approval,  procurement and execution process, the State HPSC shall ensure that all the provisions of State Financial Rules are followed.

- iv. Plan the fund flow in short, medium as well as long term. Explore innovative ways for resource mobilization, private financing and land leveraging for funding of projects.
- v. Fix the State and ULB share of contribution towards the projects in addition to the Central Government Grant specified in para 5 of these Guidelines.
- vi. Look into complaints of poor quality, lack of supervision and other violations. Monitor the quality of work and reports of appraisal by third party assessors and others and take action at their end.
- vii. Recommend proposals for release of instalment of funds for on-going projects to the National Mission Directorate.
- viii. Follow-up action to establish a Financial Intermediary, allocate and release the Central and State share of funds in time for execution of projects.
- ix. Recommend a roadmap and milestones for implementation of Reforms in the State/ ULBs for approval of the Apex Committee. Review the progress of committed Urban Reforms at the State and ULB level.
- x. Monitor the progress of implementation of the Mission, including project implementation in ULBs.
- xi. Monitor  outcome  and  O&M  arrangements  of  projects  sanctioned  and  completed under the Mission.
- xii. Periodically, review the progress of capacity building and training activities.
- xiii. Organise  timely  audit  of  the  funds  released  and  review  the  Action Taken  Reports on various Audit reports relating to the earlier Mission and the new Mission and on other reports  including that of third party, Project Development and Management Consultants and the elected representatives of the ULBs.
- xiv. Bring  about  inter-organisation  coordination  and  collaboration  for  better  planning and implementation of the Mission Programme.
- xvi. Any other matter relevant for the efficient implementation of the Mission or referred by the National Mission Directorate.
- xvii. Monitor the legal issues/cases in courts, if any.

## 10.3 City Level

At the City level the ULB will be responsible for implementation for the Mission. The Municipal Commissioner will ensure timely preparation of SLIP (para 6 & Annexure 2). The ULBs will develop DPRs and bid documents for projects in the approved SAAP.  The ULBs will ensure city level of approvals of DPRs and bid documents and forward these to the SLTC/SHPSC for approvals. Urban local bodies will procure implementation agencies as provided in the financial rules and regulations and after award of work, ensure its timely completion. For this, the ULBs will take support from PDMCs to perform these activities as given in section 8. The ULB will also develop a road map for Reform implementation and capacity building as given in Annexures 2 (Table 5.1) and 7, respectively.  The ULB will also be responsible for building coordination and collaboration among stakeholders for timely completion of projects without escalation of project cost.

## 11. Appraisal of DPRs for projects

- 11.1 The SHPSC shall constitute a SLTC with representatives from the concerned Departments/ Organisations,  which  will  carry  out  the  technical  and  financial  appraisal  of  the  DPRs.The composition of the SLTC is given below.
- 11.2 The SHPSC may nominate more members on the SLTC from other concerned State Government Departments/Government organisations, if considered necessary. The key functions of the SLTC are:
- i. Approve the technical parameters such as scope, objectives and final deliverables of the Project, Internal Bench Mark (IBM)/deciding basic parameters/approval of bid documents/evaluation  criteria,  and  payment  schedule.  For  this  purpose,  the  SLTC shall take into consideration manuals, guidelines and advisories issued by MoUD in the relevant sector and ensure compliance in the DPR (see para 9 also) 2 .
- ii. Incorporate resilience and  secure projects against disasters and  ensure that disaster-secure engineering and structural norms are included in the design.
- iii. While giving technical sanction, the SLTC will make sure that contingencies or cost escalation  are  not  included  in  the  estimates  and  all  technical  and  financial  norms of the JnNURM are followed in estimate preparation, technical sanction of projects, tender acceptance, extension, etc.
- iv. While  giving  technical  sanctions,  the  SLTC  shall  also  examine  the  Internal  Rate  of Return (IRR) both FIRR and EIRR, and Recurring Cost of Capital Expenditure (RCCE).
- v. Approve the tenders.

| i.    | Pr.Secretary(UD)/Secretary(UD)          | Chairman         |
|-------|-----------------------------------------|------------------|
| ii.   | Water Resources/Ground Water Department | Member           |
| iii.  | Revenue/Land Department                 | Member           |
| iv.   | Town Planning Department                | Member           |
| v.    | Slum Development Board                  | Member           |
| vi.   | Electricity Department                  | Member           |
| vii.  | Representative of CPHEEO,MoUD           | Member           |
| viii. | Finance Department                      | Member           |
| ix.   | Mission Director                        |                  |
|       | (if not Chairman/Member-Secretary)      | Member           |
| x.    | Technical Head (e.g. Engineer-in-Chief) |                  |
|       | Urban Water Supply & Sewerage Board/    | Member-Secretary |
|       | For transport projects - RoadTransport  |                  |
|       | Corporation MD/ED                       |                  |

- vi. Take corrective action on the reports of IRMA and other quality control reports.

- vii. Analyse the Project Funds Request Report given in Annexure 6.1 and take corrective action to ensure timely completion of projects without any escalation in costs.

- viii. Appoint PDMCs.

- 2 1.  Checklist for submission and scrutiny of DPR (Sewerage and Sewage Treatment) Ministry of Urban Development, Government of India March 2012-http://urbanindia.nic.in
2. Checklist for submission and scrutiny of DPR (Water Supply) Ministry of Urban Development, Government of India March 2012-http://urbanindia.nic.in
3. Checklist for submission and scrutiny of DPR (Storm Water Drainage)

## 12. Urban Reforms

- 12.1 A National Conclave was held with Ministers of Housing and Urban Development of States/ UTs in New Delhi on 2 and 3 July, 2014 and a National Declaration on Urban Governance and 'Housing  for  All'  was  adopted  during  the  National  Conclave. The  Reforms  to  improve service delivery, mobilize resources and make municipal functioning more transparent and functionaries more accountable are based on the spirit of the National Declaration.
- 12.2 Specifically, the Mission mandates a set of 11 Reforms which have to be implemented by all the States and 500 Mission cities within a period of 4 years as given in Annexure 2 (Tables 5.1 to 5.4). The State has to submit the roadmap of implementation as part of the SAAP , which will include Reforms to be implemented at both the State and ULB levels.
- 12.3 During the earlier mission, 10% ACA was retained for non-completion of Reforms. However, the AMRUT incentivizes Reforms implementation by setting aside 10% funds as incentives for States/ULBs. The incentive fund will be in addition to the Central Share as allocated annually. The incentive will be based on a self-assessment done by the ULBs and confirmed by the SHPSC on the report of the IRMAs. Self-appraisal will be part of the SAAP and the method is given in Annexure 2 (Table 5.5).

## 13. Capacity building

- 13.1 States  will  take  up  extensive  Capacity  Building  Activities  for  their  ULBs  to  achieve  urban reforms  and  implement  projects  in  Mission  mode.  They  shall  submit  an  annual  plan  for capacity building, as part of the SAAP , to MoUD for approval, as given in Annexure 7.2 (Form 7.2.1-7.2.4).  The  Comprehensive  Capacity  Building  Programme  (CCBP)  will  be  realigned towards the priorities of the new MoUD Missions by the Mission Director. The plan will have two components individual and institutional capacity building.
- 13.2 Individual  capacity  building: The  key  features  are  demand  driven  periodic  training, recognition  of  practices  and  functionaries,  independent  assessment  of  training  outcomes and mentoring and peer networking. Individual capacity building will include the following type of activities.
- i. Strategic training plan based on Training Needs Assessment (TNA).
- ii. Exposure visits.
- iii. Workshops, seminars, research studies and documentation.
- iv. Individual capacity building focusing on coaching and task-related assistance from peers and mentors.
- v. Visibility, including preparation of Information Education and Communication (IEC) materials.

- 13.3 Institutional capacity building: The focus will be on building the institutional capacity of ULBs by using Consulting Firms and other entities.

## 14. Monitoring of Projects

- 14.1 The Mission will be monitored real-time at the State and ULB level. Moreover, information and data will be shared with citizens in the public domain and third party monitoring and review encouraged. There will be a quarterly external monitoring by the Independent Review and Monitoring Agency (IRMA). The IRMA will submit the quarterly report to the ULB/parastatal and the SLTC. The comments of the ULB and the SLTC will be examined by the SHPSC and action taken. The State Mission Director will submit the action taken on the IRMA report at the time of claiming funds in the AMRUT. Similarly, the IRMA will do a half-yearly appraisal of Reform implementation. Concretely, monitoring will consist of the following elements.
- i. All projects will be periodically monitored and reviewed by Apex Committee and will be subjected to various audits by external and empanelled agencies, internal auditors as well as by C&AG and State AGs.
- ii. The MoUD, States and the ULBs will track objectives and other key indicators using Information Technology  based  solutions,  periodically,  and  release  of  funds  will  be linked to achievement of key performance targets given in the SAAP.Online real-time net-based monitoring will be done, with the aid of cyber tour of worksite, preferably using cameras in mobiles and third party review and real-time evaluation will also be done.
- iii. At the State level, the State HPSC would undertake detailed scrutiny of the projects at the proposal stage and monitoring during the execution.
- iv. The State HPSC shall submit a Quarterly Score Card given in Annexure 4.
- v. The  Mission  will  support  a  National  Performance  Monitoring  Cell  for  monitoring implementation of SLBs in urban basic services.
- vi. The ULBs would be required to closely monitor the projects through their elected representatives and ULB bodies and through direct citizens' feedback using mobiles and e-groups. A strong component of public disclosure through websites will also be built in.
- vii. Third  party  review  by  IRMA  for  projects  and  for  Reforms  shall  be  carried  out. This agency will be hired from amongst specialised/technical agencies.

## 15. District Level Review and Monitoring Committee (DLRMC)

- 15.1 A District Level Review and Monitoring Committee (DLRMC) will be constituted and Member(s) of Parliament will be the Co-chairperson with the District Collector. The DLRMC will monitor and review the implementation of the AMRUT projects.

## 16. Audit and litigation matters

- 16.1 The State Mission Directorate shall be responsible for all matters connected with C&AG Audit and  litigation  including  cases  before  Courts/Tribunals  and  Arbitrators.  The  State  Mission Directorate shall be responsible for defending the Central Government interests on behalf of the National Mission Directorate/MoUD.

## 17. Incomplete projects of JnNURM

- 17.1 Detailed instructions regarding coverage of incomplete projects of JnNURM, to be covered under AMRUT, will be issued separately by MoUD.