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Committee suggests increasing urban development funding

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New Delhi: A committee led by economist Isher Ahluwalia suggested that the government needs to increase spending and remodel existing schemes for urban development.

The committee said that in order to meet the challenges of rapid urbanisation in India, the government urban funding should increase by 15 per cent per annum, from the twelfth plan onwards.

The report was submitted to Urban Development Minister Kamal Nath and Housing and Poverty Alleviation Minister Selja Kumari.

The government's flagship urban development scheme, Jawaharlal Nehru National Urban Renewal Mission, JNNURM, started in December, 2005 has slow progress. Thus, the committee also suggested changing the scheme to have a primary focus on capacity creation at the local government level. Also, it suggested to the government to increase spending on Urban Local Bodies (ULBs).

The report drew distinction between seven sectors, namely water supply, sewerage, solid waste management; storm water drains, urban roads, urban transport, street lighting and traffic support infrastructure, and suggested measures to improve the same.