Atal Mission for Rejuvenation and Urban Transformation 2015 (AMRUT): Progress, Impact, and Pathways for Urban Renewal

Policy Update
Anamitra Sinha

Background

The Atal Mission for Rejuvenation and Urban Transformation (AMRUT), launched in 2015 by the Government of India, marked a significant step towards addressing urban infrastructure challenges. Focused on improving the quality of life in cities, AMRUT emphasizes ensuring access to basic amenities such as water supply, sanitation, and open spaces. It covers 500 cities, targeting those with a population of over 1 lakh. With an overarching goal to achieve sustainable urbanization, the mission integrates environmental concerns, equitable access to resources, and citizen-centric governance.

Urbanization in India has expanded rapidly, with over 35% of the population residing in urban areas as of 2021. This growth has placed immense pressure on infrastructure, leading to issues like inadequate water supply, sewage systems, and limited recreational spaces. Recognizing these gaps, AMRUT was designed as a centrally sponsored scheme to bridge the deficit in urban service delivery while fostering sustainability and resilience.

AMRUT builds on lessons learned from earlier schemes, such as the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), incorporating enhanced accountability and decentralized governance. Its mission objectives align with the principles of “Ease of Living” for urban residents, ensuring that cities become growth engines for the economy while remaining inclusive and environmentally responsible.

Functioning

AMRUT operates on a principle of cooperative federalism, encouraging active participation by states and urban local bodies (ULBs). The mission’s funding is shared between the central government, states, and ULBs, with allocations based on city size and socio-economic priorities. The scheme comprises three main components:

  1. Water Supply and Sewerage Projects: Addressing critical gaps in potable water access and waste management is central to AMRUT. Projects include the installation of pipelines, sewage treatment plants, and water recycling facilities. As of 2023, 94% of sanctioned water projects and 80% of sewerage initiatives were either completed or nearing completion.
  2. Stormwater Drainage and Green Space Development:
    Urban flooding and limited access to recreational areas have been pressing concerns. AMRUT’s focus on developing stormwater drainage systems and creating green spaces, including parks and urban forests, has mitigated flooding risks and improved urban aesthetics. Approximately 2,800 acres of green spaces have been developed under the scheme.
  3. Capacity Building and Reforms: AMRUT incorporates governance reforms aimed at enhancing municipal accountability, such as implementing double-entry accounting, GIS-based property tax systems, and increasing the transparency of fund utilization. State-level reforms include improving the creditworthiness of ULBs to attract private investments.

Projects are identified and executed through Service Level Improvement Plans (SLIPs), which are aggregated into State Annual Action Plans (SAAPs). This ensures flexibility while aligning with the mission’s overarching goals.

Impact

The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) has significantly transformed urban infrastructure and governance across India, bringing tangible improvements to the lives of millions. As of 2023, the mission has addressed crucial urban challenges, particularly in water supply and sanitation, benefiting around 60 million urban residents. Over 1,200 water supply projects have been completed, and the establishment of sewage treatment plants has helped treat 4,800 million liters of wastewater daily, contributing to the reduction of urban water pollution.

Flood management has also seen substantial progress, with the development of 3,800 km of stormwater drains in cities like Chennai, Mumbai, and Guwahati, minimizing flood risks and mitigating economic losses. In terms of green spaces, AMRUT has created or upgraded over 2,800 acres of parks, providing over 10 million people with recreational spaces while enhancing air quality and community well-being.

The mission has strengthened urban governance, improving financial health by introducing GIS-based property tax systems and double-entry bookkeeping, leading to a 25% increase in revenue collection for urban local bodies (ULBs). Additionally, the financial health of ULBs has been enhanced through better credit ratings, attracting private investments of over ₹50,000 crores for urban infrastructure.

While AMRUT’s achievements are commendable, challenges remain, including project delays in smaller cities and sustaining reforms. To ensure continued success, there is a need for capacity building for ULBs, expanding the mission’s coverage to smaller towns, and promoting climate-resilient infrastructure. Leveraging technology, engaging citizens in urban governance, and fostering public-private partnerships will be key to sustaining the mission’s impact and ensuring equitable, sustainable urban growth in the years ahead.

Way Forward

To sustain and build upon the successes of AMRUT, a comprehensive approach is essential for ensuring long-term urban transformation. Strengthening project implementation is crucial, as delays in execution, particularly in smaller cities, can undermine progress. By investing in capacity building for urban local bodies (ULBs) through training programs and technical assistance, local governments can better manage urban projects. Additionally, introducing performance-linked incentives can foster accountability and encourage timely delivery.

While AMRUT’s focus on 500 cities has made a substantial impact, expanding its reach to smaller towns and peri-urban areas is vital for bridging the urban-rural divide. Extending similar support will promote equitable development and ensure no region is left behind. Furthermore, with increasing vulnerability to climate change, prioritizing climate-resilient infrastructure is paramount. Future projects should integrate flood-resistant roads, buildings, and disaster management plans to strengthen urban resilience.

Leveraging technology is another key strategy for scaling AMRUT’s impact. Integrating smart city innovations, such as IoT-based water management systems and AI-driven traffic control, can optimize resource utilization and enhance service delivery, ensuring sustainable growth. Citizen engagement is also central to AMRUT’s success; creating platforms for participatory governance can improve transparency and foster public trust, ensuring that urban projects meet the needs of residents.

To address funding gaps, expanding private sector involvement through public-private partnerships (PPPs) is essential. These partnerships can bring innovation and efficiency to infrastructure projects, while clear policy guidelines will encourage private investment. Finally, ensuring the sustainability of reforms through regular audits and establishing urban observatories will ensure long-term viability.

By adopting these strategies—strengthening implementation, expanding coverage, promoting climate resilience, leveraging technology, and deepening citizen engagement—AMRUT can continue to drive sustainable and inclusive urbanization, aligning with India’s vision of building world-class cities with equitable access to resources for all.

References

About the Contributor: Anamitra Sinha, Policy Research Intern at IMPRI Institute and Master’s student in Development, Policy Planning, and Practice at Tata Institute of Social Science, School of Rural Development, Tuljapur (Off-Campus).

Acknowledgment: This article was reviewed by IMPRI experts and other collaborators.

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