Atal Mission for Rejuvenation and Urban Transformation (AMRUT / AMRUT 2.0)

What is AMRUT 2.0?

Atal Mission for Rejuvenation and Urban Transformation 2.0 (AMRUT 2.0) is a centrally sponsored mission of the Ministry of Housing and Urban Affairs that funds urban water supply, sewerage, septage management and water body rejuvenation projects. It was launched on 1 October 2021 for five years, from financial year 2021-22 to 2025-26, and builds on the first AMRUT mission, which covered 500 cities.

According to the Ministry of Housing and Urban Affairs, the total indicative outlay of AMRUT 2.0 is Rs 2,99,000 crore including a central outlay of Rs 76,760 crore over five years. That figure includes Rs 22,000 crore (of which Rs 10,000 crore is central assistance) earmarked for ongoing AMRUT projects up to March 2023. The mission's own operational guidelines state an indicative outlay of Rs 2,77,000 crore with the same central share of Rs 76,760 crore, the difference being the treatment of legacy AMRUT commitments.

Key objectives

• Provide universal coverage of water supply through functional taps to all households in all statutory towns.
• Provide sewerage and septage management coverage in the 500 cities covered in the first phase of AMRUT.
• Rejuvenate water bodies and create green spaces and parks in cities.
• Make cities "water secure" and self-reliant through recycling and reuse.

Main features

• Coverage extended from 500 AMRUT cities to around 4,700 cities and towns.
• Targets of 2.68 crore household tap connections and 2.64 crore sewer or septage connections.
• Outcome-based funding - only functional water tap and sewer connections beyond the baseline, implemented on or after 1 November 2021 and not covered by the first AMRUT, count for funding.
• Central assistance released in three instalments, with the third linked to outcomes.
• PPP is mandatory in million-plus cities, and at least 10% of the total city level fund allocation must go to PPP projects.
• The mission is paperless and monitored on an online platform.

Who is eligible for AMRUT 2.0?

AMRUT 2.0 is an infrastructure mission, not a direct benefit transfer. The applicants are governments, not households.

Who can apply:

• All statutory towns in the country are eligible for water supply projects under the mission.
• Urban Local Bodies apply by preparing City Water Balance Plans and City Water Action Plans and submitting them through the online portal.
• States and Union Territories consolidate city plans into a State Water Action Plan, which is cleared by the State High Powered Steering Committee and then by the Apex Committee at MoHUA.
• The 500 cities of the first AMRUT phase are additionally eligible for sewerage and septage management projects.
• Start-ups and entrepreneurs working on low-cost indigenous water equipment and processes can participate through the Technology Sub-Mission, which is allocated 1% of the project central assistance, worth Rs 667 crore.

Who cannot apply:

• Individual citizens and households cannot apply for AMRUT. There is no application form, no beneficiary list and no cash benefit for a person. A household that wants a tap connection applies to its own water utility or Urban Local Body, not to the mission.
• Private housing societies and builders are not eligible to receive mission funds for internal infrastructure.
• Projects that are already covered under the first AMRUT or that were implemented before 1 November 2021 are not eligible for outcome-based funding under AMRUT 2.0.
• Ongoing AMRUT projects not completed by 31 March 2023 are not eligible for further central assistance; completing them became the responsibility of the state or UT from its own resources.

What are the components of AMRUT 2.0?

• Projects - water supply, sewerage and septage management, and rejuvenation of water bodies including urban wetlands, plus green spaces and parks.
• Administrative & Other Expenses (A&OE) - fully funded by the Centre, used for City Water Balance Plans, Programme Management Units, Detailed Project Reports, Project Implementation Units, aquifer management plans, independent review agencies and capacity building.
• Reforms - on non-revenue water, recycling of treated used water, rejuvenation of water bodies, double entry accounting, urban planning and urban finance, with incentives for successful implementation.
• Technology Sub-Mission - identifies proven and potential global water technologies and supports start-up pilot projects.
• Information, Education and Communication (IEC) - behaviour change communication on water conservation and water use efficiency.
• Pey Jal Survekshan - a challenge-mode assessment of service level benchmarks across cities.
• Community participation - women's self help groups are co-opted into water infrastructure management and water quality assessment, facilitated through the urban livelihoods mission management unit.

How much money does AMRUT 2.0 provide and to whom?

The central budgetary allocation under the mission's operational guidelines is distributed as follows.

Within the project allocation of Rs 66,750 crore, the tentative split is Rs 35,250 crore for water supply projects, Rs 27,600 crore for sewerage and septage management projects, and Rs 3,900 crore for rejuvenation of water bodies and development of green spaces and parks.

Central share of project cost by class of ULB:

The balance is shared by the state or UT and the Urban Local Body. For PPP projects, central assistance covers 50% of the viability gap, subject to a maximum, and the total viability gap funding is capped as a proportion of project cost under the guidelines.

How to apply for funding under AMRUT 2.0

1. The Urban Local Body prepares a City Water Balance Plan (CWBP) setting out present water demand, supply, sources, losses and the potential for reuse and recycling.
2. The ULB then prepares a City Water Action Plan (CWAP) listing the projects it proposes in the mission thrust areas, in the priority order of universal water supply first, then sewerage and septage, then water body rejuvenation.
3. Both plans are submitted online on the AMRUT mission portal maintained by MoHUA.
4. The State Mission Directorate consolidates city plans into a State Water Action Plan (SWAP), which is placed before the State High Powered Steering Committee (SHPSC) for approval.
5. The SWAP goes to the Apex Committee at MoHUA for approval, after which the state may take up project sanction, tendering and award.
6. The state claims central assistance in three instalments through the online claims and settlement system, supported by physical and financial progress, documents, photographs and Utilisation Certificates; the third instalment is linked to outcomes.
7. Cities pursue the reform agenda and claim the reform incentive, and participate in Pey Jal Survekshan to benchmark their services.

How does a household get a tap or sewer connection under AMRUT 2.0?

1. Contact your Urban Local Body, municipal corporation or water and sewerage board and apply for a household tap connection or sewer connection under the ongoing AMRUT 2.0 works in your ward.
2. Provide proof of address and property details as required by the local water utility, and pay any connection charge or user charge notified by the ULB.
3. Follow up with the ward office - only functional connections beyond the pre-mission baseline count towards the mission's outcome-based funding, so ULBs have a direct interest in completing them.

What reforms are cities expected to deliver?

AMRUT 2.0 carries a reform agenda focused on the financial sustainability and water security of Urban Local Bodies. The major water-related reforms are meeting 20% of water demand through recycled water, reducing non-revenue water to less than 20%, and rejuvenating water bodies. Other reforms cover property tax, user charges, double entry accounting, urban planning and improving the creditworthiness of ULBs. Successful reform implementation is rewarded from the Rs 5,340 crore reform incentive pool.

Capacity building runs alongside, covering contractors, plumbers, plant operators, students, women and citizens, and includes a concerted effort to train women to test water quality in all mission cities, led by Public Health Engineering Departments or water and sewerage boards.

Where to get help with AMRUT

• State Mission Directorate in your state's urban development department - the first point of contact for project queries.
• Your Urban Local Body or municipal corporation for tap and sewer connection requests and for user charge issues.
• MoHUA AMRUT pages at mohua.gov.in and the mission's online portal for guidelines, reform toolkits and project status.

AMRUT 2.0 does not have a beneficiary registration process, an application fee or an agent network. Anyone offering to get your name added to an "AMRUT list" for a fee is not acting for the mission.