Rapid economic growth will inevitably lead to an increase in urbanization as cities provide large economies of agglomeration for individual activity. Unfortunately, the state of urban infrastructure in the country has deteriorated to an extent that we are not able to fully benefit from these economies. Poor urban infrastructure inflicts a severe hardship on people. Congested roads, poor public transport, inadequate availability of water, improper treatment of sewage, uncollected solid waste, and above all grossly inadequate housing that forces more than 50% of the population in some metropolis to live in slums severely decrease the quality of life and lower the well being of urban population. Unless we deal with this problem now, the situations will deteriorate further as urban population may rise from present 28% to 40-50% by 2025. In order to cope with massive problems that have emerged as a result of rapid urban growth the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched by the government on December 03, 2005 for a seven – year period beginning 2005-06. It envisages urban renewal projects in a mission mode approach. The objectives of the JNNURM are to:

(a)   give focused attention to integrated development of infrastructure services in
        63  selected cities

(b)   establish linkage between asset creation and asset management
        through reforms needed for long term sustainability

(c)   ensure adequate funds to meet the deficiencies in urban infrastructural services

(d)   achieve planned development of cities

(e)    scale up civic amenities and provision of utilities

(f)     put special focus on urban renewal of old city areas and;

(g)    provide basic services to the urban poor including security of tenure 
         at affordable prices,improved housing, water supply, and sanitation, and

(h)    ensuring delivery of other existing universal services of the government
         for education,health and social security.