North Eastern Region Urban Development Programme (NERUDP) will be implemented by the Ministry of Urban Development (MoUD), by the government of India, in two phases.
Phase – I covers capital cities of 5 North Eastern States viz. Agartala (Tripura), Aizawl (Mizoram), Gangtok (Sikkim), Kohima (Nagaland) and Shillong (Meghalaya). Total Cost of this phase I of the project is $ 285.7 million.
The states of Arunachal Pradesh, Assam and Manipur would be covered in Phase – II. The project (Phase-I) was approved by the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on February 26, 2009.
Following is the expected outcome of the project :
- Improved environment and well being of urban residents in five capital cities.
- Increased access to better urban services to about 1.5 million people living in 5 cities by 2015.
- about 1.2 million people in the 5 cities provided treated water for 12 to 24 hours daily
- about 0.3 million people in the central zone of 4 programme cities provided with sewerage
- reduction in the volume of wastewater and effluent discharged to water bodies
- about 0.9 million people provided with solid waste collection and treatment
- facilities sanitary disposal practised in 5 cities.
- The strengthened financial capacity of Urban Local Bodies.
- Social and environmental safeguards to combat negative environmental or social impacts. Implementation of reforms pertaining to city level water utility arrangements, municipal accounting, property tax, rationalization of user charges, e-governance and capacity building of municipal staff.
- Reduction in wastage of water and reducing the extent of non-revenue water (NRW) to zero level in a phased manner.
- All municipalities empowered as defined in 74th Constitutional Amendment Act.
Cost Estimates The total cost of the NERUDP is estimated at Rs. 1371.4 crores spread over the three Tranches:
- Tranche I 2009-15
- Tranche II 2010-13
- Tranche III 2012-15
- Funding Pattern Rs.205 crores, Rs.543.4crores, Rs.623 Crores
The project is being financed by the Government of India and the Asian Development Bank in the proportion of 30: 70.
ADB’s financing is under its Multi-Tranche Financing Facility. The money shall be passed on to the states as 90% grant and 10% loan.
The level of urbanization in NER (15%) is also lower than the rest of India (27.8%). NER has nonetheless recorded improvement in social indicators in terms of literacy rate over the last decade. Consistent with the policies and programmes of the Government of India (GoI), NER has been prioritized for investments in infrastructure and services. Urbanization in these states is dominated by the capital cities which account for more than 50% of the states’ total urban population. With the opening up of trade with neighbouring countries and emerging transport corridors in the region, the capital cities are expected to play a greater strategic role in NER’s economy as commercial and business hubs besides being administrative centres. Investment in urban infrastructure and services will be the key to unleashing the potentials of these cities to catalyze the growth of NER.