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Provision of Urban Amenities to Rural Areas (PURA); PPP Model for Development

When I come to Tata-Dhan Academy in first term unfortunately I visited library. Generally I do not go to library because already faculties give enough, sufficient or any superior word to enough or sufficient will be better for the reading materials which students used to get in Tata-Dhan Academy. You know, what happened in library, I took Economic and Political Weekly magazine. I saw an article on PPP model and started to read. I read one page but I could not understand the content even I was not able to get meaning out of the article. Imediately I left library and I have not visited library for one month. Month passed and I graduated to fourth term and I came to know that I need to understand one of the government project or program. I selected PURA which is based on PPP model but you know this time I was able to understand the same EPW article in first reading. I do not know how it happened. Getting exposure to course reading materials grooms students for understand the typical articles, technical articles and reports.

There is one credit course, Project Management  in Tata- Dhan Academy which gives opportunity to understand the various initiative of government and non-government organisations for the development of country. I have written this paper to get the idea of government approach for the development of rural areas. 


Indian is a country of villages and India has its identity as agriculture based country. Out of total population 70% area comes under rural context. In India generally villages do not have facilities for instance road, health and sanitation and in lack of facilities there is no livelihood alternative apart from agriculture. Urban areas are more attractive for the rural people and from last decade there is increase in migration from rural to urban areas. In general in India there is great difference in terms of physical and social infrastructure. Keeping these main causes in mind Dr. Abdul Kalam shared his vision of providing urban amenities to rural areas. On the independence evening Dr. Kalam shared this vision and same day prime minister also give his consensus to implement the provision of urban amenities to rural areas.

Provision of Urban Amenities to Rural Areas (PURA) has been launched in 2004. Planning commission approved in January 2004. A pilot phase was implemented 2004-05 and 2006-07 with planning commission. NIRD did the evaluation study for assessing the output of PURA in pilot phase. Many mistakes have been found in planning and implementation part of this project. There was no business plan and PURA was delivered as a conventional way to the people. State did not have any ownership regarding PURA project. There was no institution or professional support for planning and implementation of project. In pilot phase there was no convergence with other government schemes. After a lot of discussion PURA has been accepted by cabinet as a PPP (Public Private Partnership) model in January 2010. Again PURA has been launched in April 2010 with revised mission and convergence with other government schemes.

My objectives

  1. To understand the PURA project in project management discipline.
  2. Identification of PURA uniqueness from other state government and central government programs.
  3. Assessing the impact of the provision of urban amenities to rural areas (PURA) in pilot phase.

Mission of 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.”  (Guidelines for PURA,MoRD)

Objectives of PURA

The primary objectives of  the PURA project are

  1. The provision of livelihood opportunities in village
  2. Urban amenities in rural areas to bridge the rural urban divide.

Features of PURA village

A Gram Panchayat / a cluster of geographically contiguous Gram Panchayats with a population of about 25,000 – 40,000

  1. Water supply

Piped water supply of 100 lpcd through individual household connections

Sustainability of water supply through water harvesting and water recharge activities

  1. Sewerage

100% sanitation coverage, with provision of sewerage connections to individual households

  1. Solid waste management

100% coverage of SWM services to individual households

Scientific treatment of solid waste

  1. Village streets and drainage

100% of village streets paved along with storm water drains, to cover entire rural populace

100% of village streets to have street lighting

  1. Increase in livelihood opportunities

Skills building program to cover 50% of candidates in BPL households

Assure placement for at least 75% of the trainees

Selected district for PURA

Eight district has been selected for PURA project.Dehradun district, Uttarakhand;Jaipur district, Rajasthan;Rajsamand district, Rajasthan;Warangal district, Andhra Pradesh;Krishna district, Andhra Pradesh;Karaikal district, Puducherry;Malappuram district, Kerala; Thrissur district, Kerala.

Strategy for PURA

PURA is based on Public Private Partnership model so at present PURA is a pilot project after success it will be scaled up to other places. There are three stakeholders Gram Panchayat, Governemnt and private developers. The core funding is from MoRD and additional support through convergence of other Central Government schemes. PURA brings Private sector  in investment and operational expertise  on basis of a detailed business plan.

Planning and Implementation

  • Amenities provided under MoRD Scheme
  1. Water and Sewerage
  2. Construction and maintenance of Village Streets
  3. Drainage
  4. Solid Waste Management
  5. Skill Development
  6. Development of Economic Activities
  • Amenities provided under non MoRD Scheme
  1. Village Street Lighting
  2. Telecom
  3. Electricity, etc.
  • Amenities provided by private partner
  1. Village linked tourism
  2. Integrated Rural Hub, Rural Market.
  3. Agri – Common Services Centre, Warehousing, etc.
  4. Any other rural-economy based projects

PURA want to achieve

With the help of this mega plan PURA want to create livelihood opportunities with infrastructure development. The important thing is provision of funds for operations and maintenance of assets, along with capital investment for creation of assets. Standards of service delivery in rural areas almost at par to those set for urban areas, and enforcement of service standards through a legally binding arrangement

Sources of finance

In starting phase of PURA due to meager revenue base, most capital expenditure is going to come from Government schemes. Cost of each PURA project limited to Rs. 120 crore. Capital Grant limited to 35% of project cost for meeting viability gap. This grant will be given in pilot phase. 12% returns on investment budgeted as part of financial model (as per norms of Planning Commission)

Availability of land

Land is an important part in PURA project. For public amenities land will be provided by Gram Panchayat or state government. If land is provided by Gram Panchayat for adds in Programme; revenue will be shared by Gram Panchayat and private developers. If land is not provided by GP/State government private developer will purchase from open market.

PURA project cycle

These activities have been written by step by step (MoRD)

  1. Issue of Expression of interest (EOI)
  2. Response to EOI
  3. Short listing interested private developers
  4. Issue of draft request for proposal
  5. Pre bidding meeting
  6. Issue of final request for proposal
  7. Submission of proposal including concept plan
  8. Evaluation of proposal by project screening and monitoring committee
  9. Issue of letter of award to qualified bidders
  10. Preparation of DPRs by private developers
  11. Appraisal of DPRs by Project screening and monitoring and approval of capital grant
  12. Execution of concession agreement
  13. Project execution by private developers
  14. O& M of project facilities by private developers
  15. Monitoring and impact assessment
  16. Handover project facilities to Gram Panchayat

Project Management and control

A team of PURA under MoRD supervises and coordinates project screening and monitoring committee. ADB supportsTechnical assistance for policy framework development , institutionalization of PPP unit within MoRD, capacity building of MoRD and identified Gram Panchayats. ADB also works for capacity building of MoRD team and Panchayat people to inspection (Outreach and communication)  of work.

In PURA there is a contract between private developers and Panchayat/MoRD. In the contract itself there is risk and responsibilities of risk is mentioned.

Impact of PURA on development

Since today there is no official information about PURA. There is one minister in Tamil Nadu who has constructed women engineering college from PURA fund. Still no data is available for assessing the fund utilization and impact on villages.


I learn PPP model and its importance. PURA follows an innovative project covering most of the development issue in a village or cluster of village. PPPP (People Public Private Partnership) model can work better than PPP model. There is corruption in most of the PURA projects. Corruption should be minimized for development.

Reference: http://pura.net.in/

Here are PURA documents


Filed under: Academic Writing

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