Urban Institutional Strengthening and Capacity Enhancement Project



Approval Date
Actual Completion Date
Proposal Focus
Core Focus
Secondary Cities
Country Type


Although urban population accounts for only 28% of India’s population, almost 60% of national GDP is produced in urban areas. Improving cities’ performance is critical to realise the full potential of national economic growth and poverty alleviation. Government of India has indicated its commitment through its flagship Jawaharlal Nehru National Urban Renewal Mission (JNNURM), focused on 65 major cities, and Urban Infrastructure Development Scheme for Small and Medium Town (UIDSSMT) and Integrated Housing and Slum Development Programme (IHSDP), focused on non-Mission cities. This grant is to support the Government of India (GoI) for the formulation of a World Bank technical assistance (Bank TA) which aims to support the governments’ efforts to establish a partnership with states/cities to build capacity of Indian cities.
The objective of the grant was to support GoI in the preparation of a project aiming at providing cities with technical assistance to strengthen policy, support institutional reform and improve procedures and skills in the areas of governance, planning, service delivery and municipal finance management
i. Design of the components of the Technical Assistance programme in focus areas (Governance, Planning, Service Delivery, Financial Management Reform and Financial Sustainability) ii. Development of an institutional mechanism comprising of a PMU at the national level located within and reporting to MoUD, supported by state co-ordination teams located within state level nodal agencies. iii. Financial Management Needs Assessment of selected municipalities
Expected Impacts and Results
As a result of this preparatory activity, a technical assistance project was formulated by the World Bank. This World Bank funded project ‘Capacity Building for Urban Development’ is now jointly implemented by the Ministry of Housing and Urban Poverty Alleviation and the Ministry of Urban Development.