AMRUT 2.0: Enhancing Urban Infrastructure for Tier 2 and Tier 3 Cities

🏙️ Introduction & Need

India's urban landscape is rapidly expanding, with Tier 2 and Tier 3 cities experiencing significant population growth. However, these smaller cities often grapple with inadequate infrastructure, leading to challenges in providing basic services such as water supply, sanitation, and green spaces. To address these gaps, the Government of India launched the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) in 2015, focusing on urban renewal and infrastructure development. Building upon the successes and lessons of the initial phase, AMRUT 2.0 was initiated in 2021 with renewed goals to make cities 'water secure' and promote sustainable urban development.


📜 Background

Launch Year: 2021

Implementing Agency: Ministry of Housing and Urban Affairs (MoHUA)

Total Outlay: ₹2,99,000 crore over five years, including a central share of ₹76,760 crore

Key Objectives:

  • Provide universal coverage of water supply through functional household tap connections in all statutory towns
  • Ensure 100% coverage of sewerage and septage management in 500 AMRUT cities
  • Rejuvenate water bodies to augment sustainable freshwater supply
  • Promote the development of green spaces and parks
  • Implement a Technology Sub-Mission to leverage the latest technologies in water and sewerage management


📈 Progress Metrics

  • Projects Approved: As of November 2024, a total of 8,998 projects worth ₹1,89,458.55 crore (including Operations & Maintenance costs) have been approved under AMRUT 2.0.
  • Contracts Awarded: Contracts have been awarded for 4,916 projects worth ₹85,114.01 crore.
  • Detailed Project Reports (DPRs): 1,198 projects are at the DPR stage, with states instructed to expedite the process.
  • Physical Progress: Works worth ₹23,016.30 crore have been physically completed.

  • Fund Utilization: Out of the admissible central assistance of ₹63,976.77 crore, ₹11,756.13 crore has been released to states/UTs, with reported utilization of ₹6,539.45 crore.

🔄 Current Status

Urban Local Bodies (ULBs) Performance:

The performance of ULBs varies across states. While larger municipal corporations have improved their revenue generation, smaller town councils often lack the financial capacity to fund their share of projects. For instance, in Uttar Pradesh, the state government has decided to bear additional costs to support newly created town councils and ensure the completion of AMRUT 2.0 projects. 

Convergence with Other Missions:

AMRUT 2.0 emphasizes convergence with other central and state schemes to maximize impact. This includes alignment with the Smart Cities Mission, Swachh Bharat Mission, and the National Heritage City Development and Augmentation Yojana (HRIDAY). Such integration aims to ensure comprehensive urban development and efficient utilization of resources. 

Challenges in Implementation:

Despite significant progress, AMRUT 2.0 faces challenges in implementation. Delays in issuing project guidelines have stalled progress in some states. For example, in Tamil Nadu, the absence of guidelines has hindered the execution of approved projects worth ₹14,688 crore across 28 cities. Municipal bodies are unable to proceed without the mandated guidelines to formulate model projects. 


🧭 Conclusion

AMRUT 2.0 represents a significant step towards enhancing urban infrastructure in India's smaller cities. By focusing on water security, sanitation, and green spaces, the mission aims to improve the quality of life for urban residents. While challenges persist, particularly in fund utilization and project implementation, continued efforts and convergence with other missions hold promise for sustainable urban transformation.

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