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Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

Published on Oct 24, 2018

Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

The scheme was launched by Prime Minister Narendra Modi in June 2015 with the focus to establish infrastructure that could ensure adequate robust sewage networks and water supply for urban transformation by implementing urban revival projects. Rajasthan was the first state in the country to submit State Annual Action Plan under Atal Mission for Rejuvenation and Urban Transformation (AMRUT). The scheme Housing for All by 2022 and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) were launched on the same day. The scheme is dependent with public private partnership(PPP) model. If required, various other schemes like Swachh Bharat Mission, Housing for All 2022, along with the local state schemes like that related to water supply and sewerage and other infrastructure related schemes can be linked to AMRUT.

The Mission

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.

Thrust Areas

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.


Five hundred cities will be taken up under AMRUT. The list of cities will be notified at the 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 above ,

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).

Mission Components

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.

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)


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.


i. Faecal Sludge Management- cleaning, transportation and treatment in a costeffective manner.

ii. Mechanical and Biological cleaning of sewers and septic tanks and recovery of operational cost in full.

Storm Water Drainage

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

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).

Green space and parks

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

Reforms management & support i. Support structures, activities and funding support for reform implementation.

ii. Independent Reform monitoring agencies.

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.

Indicative (not exhaustive) list of inadmissible components

i. Purchase of land for projects or project related works,

ii. Staff salaries of both the States/ULBs,

iii. Power,

iv. Telecom,

v. Health,

vi. Education, and

vii. Wage employment programme and staff component.

Business Opportunities

Water treatment plants, pipelines, metering and grid management solutions, de-silting, ground-water recharge, etc.

Waste management: decentralized underground sewerage networks, sewage treatment plants, waste collection-transport treatment integration, septage cleaning-transport treatment, storm water drainage and reuse, etc.

Urban transportation: Ferry vessels, pathways, skywalks, non-motorised transport, multi-level smart parking, bus rapid transport system, etc.

Green zone components: Landscaping, creating of green infrastructure (parks, ponds, etc.), vertical greening, etc.

Reform implementation would need services like implementation, consulting, monitoring and evaluation services

Fund Allocation

The total outlay for AMRUT is Rs. 50,000 crore for five years from FY2015-16 to FY2019-20 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.

Release of Funds

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.

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.

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).

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 18 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.

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.

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