Urban Amenities - Rural Development - Lecture Slides, Slides of Human Development

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Provision of Urban Amenities in

Rural Areas (PURA)

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(^22)

Vision of PURA President Dr. A.P.J. Kalam's address on eve of Republic Day - 2003

“Knowledge Powered PURA

• Vision of transformation to a ‘developed’ India can only be realized if we launch a mega mission for empowering the rural people
• Creation of physical, electronic and knowledge connectivities leading to economic connectivity in villages. Such a model of establishing a circular connectivity among the rural village complexes will accelerate rural development process by empowerment
• PURA to be a business proposition economically viable and managed by entrepreneurs, local people and small scale industrialists
• Government’s support should be in the form of empowering such management agencies, providing initial economic support and finding the right type of management structure and leaders to manage and maintain ” Docsity.com

4

Experience of Pilot Projects

• No business plan. Conventional mode of scheme delivery. No participation of private partners
• Largely infrastructure centric without factoring lead economic activities
• Criteria for project site selection did not factor growth potential
• No ownership at State level
• Lack of institutional structure with dedicated professional support
• No convergence with other schemes of rural development or other Departments

After appraising the pilot phase, Planning Commission advised in 2007 that PURA may be re-designed as a demand-driven programme through Public Private Partnership (PPP) mode Docsity.com

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NIRD Study on the Pilot Projects

Independent evaluation by National Institute of Rural Development:

• Convergence with on-going schemes was found missing
• Highlighted need for consultation with wide spectrum of stakeholders for community and private sector participation
• Suggested taking up PURA near a growth centre
• Recommended inclusion of livelihoods aspects besides creation of connectivities
• Plan should include efforts to improve linkages for improving all-round productivity across sectors in the rural cluster
• Recommended restructuring of the scheme

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The Restructured PURA Scheme

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Mission

“Holistic and accelerated development of compact areas around a potential growth centre in a Panchayat (or group of Panchayats) through Public Private Partnership (PPP) by providing livelihood opportunities and urban amenities to improve the quality of life in rural areas.”

PURA Mission Statement

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What does PURA aim to achieve

• Combining livelihoods creation with infrastructure development in rural areas
• Simultaneous delivery of key infrastructure required in villages
• Provision of funds for operations and maintenance of assets, along with capital

investment for creation of assets

• Standards of service delivery in rural areas almost at par to those set for urban

areas

• Enforcement of service standards through a legally binding arrangement (^10)

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Urban Amenities to be provided

under PURA

• Under MoRD Schemes (Existing and PURA):
  1. Water and Sewerage
  2. Village streets
  3. Drainage
  4. Solid Waste Mgt
  5. Skill Development
  6. Development of Economic Activity
• Under Non MoRD Schemes:
  7. Village Street Lighting
  8. Telecom
  9. Electricity, etc.
• Add-on Projects i.e. Revenue earning projects (Indicative):
  10. Village linked Tourism
  11. Integrated Rural Hub, Rural Market
  12. Agri – Common Services Centre, etc.
  13. Any other rural economy based project (^11)

Schemes such as NRDWP, TSC, Special SGSY, etc will be converged in CAPEX provision of PURA

Access schemes for dovetailing in PURA

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Business Model

• Leveraging public funds with private capital & management

for creation & maintenance of rural infrastructure

• Schemes included are ones focused on community

development and not targeted towards individuals

• O&M of assets and services for 10 years after a construction

period of 3 years

• Private Developer to have flexibility in choosing PURA

project area & revenue generating projects as add-ons

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Financial Model

• Due to thin revenue base, most capital expenditure from

Government schemes

• Cost of each PURA project limited to Rs. 120 crore
• Capital Grant limited to 35% of project cost for meeting

viability gap – the PURA scheme fund of Rs. 248 crore is

towards this grant

• 12% returns on investment budgeted as part of financial

model (as per norms of Planning Commission) Docsity.com

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Selection Process...

• Through open competitive 2-stage bidding process
• Expression of Interest from private sector entities experienced in community-oriented infrastructure projects and having - Minimum net worth of Rs. 25 crore - Experience of developing infrastructure projects with a cumulative value of at least Rs. 50 crore
• Short listed bidders invited to pre-bid conference and issued the Request

for Proposal (RfP) document

• Each bidder required to submit consent from the Gram Panchayat(s) and State Government(s) concerned
• Short listed bidders invited to submit bids consisting of their experience

and concept plans

• No financial bidding 16 Docsity.com

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Selection Process...

• Evaluation of Concept Plans on parameters of innovativeness, inclusivity,

sustainability, convergence, etc

• Evaluation of organisation’s experience focussed on:
  • Understanding of rural sector and demonstrated experience of working in the same
  • Ability and resources to engage with stakeholders to create a sustainable project
  • Experience in development/construction and management of community-oriented infrastructure projects
  • Ability to raise finances
• Bidders to be ranked on basis of (experience score + concept plan score) –

Bidder has to score at least 50% on the concept plan score

• Detailed Project Report (DPR) as the basis of determining capital grant admissible which shall be evaluated by technical consultants
• Inter-Ministerial Empowered Committee to approve cost and capital grant

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Qualified PURA projects: Across 8 districts in the country

1. Dehradun district, Uttarakhand;
2. Jaipur district, Rajasthan;
3. Rajsamand district, Rajasthan;
4. Warangal district, Andhra

Pradesh;

5. Krishna district, Andhra Pradesh;
6. Karaikal district, Puducherry;
7. Malappuram district, Kerala;
8. Thrissur district, Kerala.

Pradesh^ Andhra

Puducherry

Map for representation only

Rajasthan

Kerala

Uttarakhand

Malappuram Thrissur (^78 )

4 Warangal (^5) Machilipatnam^ Krishna

2 Rajasmand 3

Jaipur

1 Dehradun

Major themes  Rural tourism  Food / Meat processing  Apparel Park

 Agriculture Park / Support  Micro & Small Industries  Rural Business Hub Docsity.com

(^2020)

Future Planning...

Under XI Plan

• XI Plan provision of Rs. 248 crore allows for only 06-08 projects
• With a view to increasing the bouquet of pilot projects and to glean experience from a wider sample of States, MoRD proposes further 10 PURA pilot projects under XI Plan
• Wide interest and commitment evinced by number of stakeholders including elected representatives for more PURA projects
• Proposal to Planning Commission for enhancing budget ceiling by Rs. 560 crore under XI Plan – advanced stage of consideration Docsity.com