PPP Days “Transforming Rural & Urban Spaces The PURA Project – An Overview Dr. Arvind Mayaram Additional Secretary & Financial Advisor Ministry of Rural Development Government of India Growth Perspective All over the world, two sentiments are gripping people: • Demand for inclusive growth, in which everyone would be able to secure decent livelihood and the ever increasing income disparities would disappear, and • A decent life, which includes good governance, adequate infrastructure and services, greater accountability and predictability of government action and appropriate livelihood opportunities Rural poverty and migration • At least 70 per cent of the world’s very poor people live in the rural areas – South Asia and Saharan Africa are worst affected regions • Rural poor is mostly dependent for livelihood on farm labour and an increasingly large number is migrating to the urban areas in search of menial work swelling the urban slum population • Mckinsey Global Institute study (April 2010) points out that such unmanaged migration in India would lead to urban decay, poor quality of life for citizens and a reluctance among investors to commit funds to projects in India’s urban centres The challenge lies in creating an economic regeneration in existing rural clusters - It is now well accepted that access to physical infrastructure enhances household welfare through greater economic growth, thereby mitigating chronic and transient poverty. Infrastructure development & Poverty alleviation Poor infrastructure prevents unlocking of full economic value in rural areas which in turn accelerates distress migration to urban areas. Inadequate economic opportunities perpetuate dependence on agriculture for livelihood and make poverty reduction more difficult. Constraints for the low impact of large spending and for lower levels of citizen satisfaction in rural areas: •Delivery of different schemes is not simultaneous •Inadequate/no resource provisioning for maintenance •Schemes operate autonomously and there is little synergy in implementation •Low service delivery standards for infrastructure in rural areas The Design of PURA - Provision of Urban Amenities in Rural Areas – A Pilot Project to address Rural Infrastructure Development & Economic Re-Generation Provision of Urban Amenities in Rural Areas (PURA) What is PURA? “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.” (*Panchayat is the lowest tier of self governance in India) Objectives Provision of urban amenities and livelihood opportunities in rural areas to bridge the rural urban divide, which may also result in decrease in the rate of distress migration from rural to urban areas. What does PURA aim to achieve? • Simultaneous delivery of key infrastructure in villages leading to optimal use of resources • Provision of funds for O&M of assets for ten years post construction period of up to three years, along with capital investment for creation of assets • Transforming several schemes into a single project to be implemented as per set standards in defined timeframe – while the objectives of each scheme retained • Combining livelihoods creation with infrastructure development • Standards of service delivery in rural areas almost at par to those for urban areas • Enforcement of service standards through a legally binding arrangement • A Gram Panchayat / a cluster of geographically contiguous Gram WhPaantch iasya ats wPiUth Ra Apo pvuillatlioang oef a?bout 25,000 – 40,000 • Water supply • Piped water supply of about 100 lpcd through individual household connections • Sustainability of water supply through water harvesting and water recharge activities • Sewerage • 100% sanitation coverage, with provision of decentralized sewerage connections to individual households • Solid waste management • 100% coverage of SWM services to individual households • Scientific treatment of solid waste • Village streets and drainage • 100% of village streets paved along with storm water drains, to cover entire rural habitations' populace • 100% of village streets to have street lighting • Increase in livelihood opportunities • Increased economic activity leading to enhancement of livelihood opportunities for residents of villages • Improved living standards resulting in reduction in distress migration rate to urban areas Uniqueness of PURA 1. Public Private Partnership (PPP) between Gram Panchayat (GP)- local self-government- and private sector partner 2. Convergence of schemes from Ministry of Rural Development (MoRD) and other government schemes 3. Twinning of rural infrastructure with economic activities & livelihoods generation 4. PURA is treated as a composite “Project” and not a government scheme – Private sector to bring in investment and operational expertise on basis of a detailed business plan 5. Single window mechanism for approvals and release of grants / scheme funds 6. It is not a CSR activity - Private sector partners to select its PURA project for commercial returns on their investments The PURA Project
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