Implementation of Provision of Urban Amenities in Rural Areas (PURA) scheme on pilot basis

PIB, Jan 21, 20101
The Cabinet Committee on Economic Affairs today approved the implementation of the Scheme “Provision of Urban Amenities in Rural Areas (PURA) on a pilot basis within the plan outlay of Rs.248 crore during 11th five year plan. The fund will be utilized for providing capital grant upto 35% of the pilot project to meet the viability gap for operations and maintenance (including invest by private party) in Public Partnership (PPP) mode after dovetailing funds from other Central Schemes and investment from private developers.


The implementation of the restructured scheme in the manner proposed as an innovative initiative being taken for the first time in rural areas. Through the implementation of proposed pilot projects, the unique features of this scheme could be tested on the ground and would enable its upscaling in future.

The primary objectives of the scheme are provision of livelihood opportunities and urban amenities in rural area to bridge the rural – urban divide thereby reducing the migration from rural to urban areas. A distinguishing feature of the scheme is its implementation under a Public-Private Partnership (PPP) framework.

The core funding will be ensured from the Central Sector Scheme of PURA complemented by additional support through prioritized convergence of Central Government programmes, funding / managerial support from the private sector and participation of the local Panchayats. The scheme would be implemented and managed by the private sector on viability and sustainability considerations which shall be fully aligned with the overall objective of rural development. This framework of bringing together public funds and private capital into creation of infrastructure in rural areas and leveraging upon private sector expertise to manage and maintain the same during the concession period, forms the essence of the re-structured PURA Scheme.

Under the scheme there is a provision for capital grant to a maximum of 35% of the project cost. Seven to eight pilot projects would be taken up during the 11th five year plan. In order to assure constructive commitment of the stakeholders, separate agreements will be entered into between the stakeholders viz., Concession Agreement (between Gram Panchayat and private developer) and a State Support Agreement (among the Central Government, State Government and the private developer).