The Rs 50,000 crore committed under JnNURM, which has three components including the UIG scheme, is to be spent over seven years starting 2005-06. The second component of the mission is the Urban Infrastructure Development Scheme for Small and Medium Towns for which the Centre has committed Rs 6,400 crore. Here, the record is not too bad, with the Centre releasing almost Rs 2,540 crore till March 31, 2008. The last component of the mission is a scheme for basic urban services and housing where the Centre will contribute Rs 18,000 crore.

Interestingly, of the 26 states that are participating in the mission, just six — Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu and West Bengal — account for three-fourths of the 324 approved projects, both in terms of number and value. Maharashtra tops the list with 56 projects worth Rs 7,732.45 crore, followed by Andhra Pradesh with 36 projects worth Rs 3,770.12 crore and Gujarat (55 projects, Rs 3,667.18 crore).

Analysing the spread of the JnNURM, officials in the urban development ministry have realised that states were devoting much of their resources towards the 63 short-listed cities. This blocked their fund flows for smaller towns and cities, resulting in political pressure that states were giving smaller cities a short shrift in favour of metros and larger cities. They said, this problem may be addressed in the coming years.