The Government is considering the establishment of a credit risk guarantee fund of 
1,000 crore to encourage banks to lend to the poor. Inaugurating a National conference of Jawahar Lal Nehru National Urban Renewal Mission (JNURM), Prime Minister Dr. Manmohan Singh said it would encourage banks to lend in, significant volumes to the economically weaker sections and low income groups.
Referring to growing urban population, he said it was projected to increase from 377 million today to 600 million by 2031. Urban India generates two thirds of the GDP, the PM said adding that leveraging urban transition presents a significant opportunity for development and growth. He said for harvesting demographic opportunity of young India, it was important to focus on livelihood opportunities in industry and service sectors and improving productivity in agricultural sector.
This, the Prime Minister said, would ease the burden of poverty while facilitating a more open and democratic society. Referring to the Jawahar Lal Nehru Urban Renewal Mission, he said there were many challenges ahead.
Dr. Singh called for reforming of institutions and improvement of governance. He added unless that was done, investments to maintain city infrastructure and delivery of efficient services would be difficult. Dr. Singh said the Government was mulling introduction of a local bodies finance list in the Constitution.
Making it clear, he noted that the Government policies could not have a one-size-fits-all approach towards both big and small cities and said that the challenge in the next stage of JNRUM would be raising internal revenue of local bodies and strengthning the capacity to plan implement and deliver programmes and basic services. He urged to pay greater attention to the participatory approach for delivery of services and strongly advocated encouraging the private public partnership.
AIR correspondent reports that the Prime Minister also referred to several other challenges including sustainability concerns besides use of e-governance to fast track the development of cities across the country.
