Integrated Development of Small & Medium Towns (IDSMT) Scheme

Integrated Development of Small & Medium Towns (IDSMT)
Scheme
Introduction:-
The total population of the country has increased from 361 million in 1951 to 1027 million in 2001, whereas,
urban population has increased from 62 million to 285 million during the same period. The numbers of
metropolitan cities have increased from 23 in 1991 to 35 in 2001. Thus, it is, evident that there was a clear shift
towards large towns, perhaps due to lack of employment opportunities and poor urban infrastructural base of
the small and medium towns.
The Centrally sponsored scheme of Integrated Development of Small & Medium Towns (IDSMT) was initiated
in the year 1979-80 and is continued with timely amendments and modifications upto2004-2005 and in
December 2005 it was subsumed in UIDSSMT Scheme. Investment in the development of small urban centres
would help in reducing migration to large cities and support the growth of surrounding rural areas as well.
Objectives of IDSMT:-
The main objectives of IDSMT scheme are:
a) Improving infrastructural facilities and helping in the creation of durable public assets in small and medium
towns.
b) Decentralising economic growth and employment opportunities and promoting dispersed urbanisation.
c) Increasing the availability of serviced sites for housing, commercial and industrial uses.
d) Integrating spatial and socio-economic planning as envisaged in the Constitution (74th Amendment) Act,
1992.
(e) Promoting resource-generating schemes for the urban local bodies to improve their overall financial
position.
Selection of towns:-
a) IDSMT Scheme will be applicable to towns/cities with population upto 5 lakhs.
b) Towns are to be identified and prioritized by the State Governments and UTs according to their Urban
Strategy within the framework of Guidelines of the Scheme.
c) The IDSMT Scheme will be applicable to only those towns where elections to the local bodies have been
held and elected bodies are in position.
Components for Funding:-

ter Plan roads,
-and-use toilets, etc.
Monitoring:-
Based on the Quarterly Progress Reports (QPRs) received from the State Governments, TCPO prepares
progress reports of the scheme State-wise/town-wise and submits the reports to the Ministry. A Monitoring
Committee under the Chairmanship of Joint Secretary (UD) reviews the progress on quarterly basis. Besides,
Town and Country Planning Organisation (TCPO) also monitors the scheme at the field level by visiting the
towns at random. The representatives of Government of India from the Ministry, TCPO and Planning
Commission also review the progress of the scheme in the meetings of the SLSC.
Evaluation:-
This Ministry got the Scheme evaluated during 2002 by Regional Centres for Urban and Environmental Studies
(RCUES) at Lucknow, Mumbai and Hyderabad in 36 towns of 12 States.
PROBLEMS IN IMPLEMENTATION:-
(i) Availability of land free from encumbrances for the projects under the Scheme and frequent changes of
location of the approved components by implementing agencies..
(ii) Non-availability and non-release of matching state share by the State Governments within the specified
time.
(iii) Local bodies not in a position are inept to avail loan from financial institutions to partly finance the
Scheme.
(iv) Inadequate capacity of the implementing agencies for execution of the scheme.
(v) Non-submission of Utilization Certificates in time by the States.
Major Findings of the Evaluation Study of IDSMTin U.P, M.P, Bihar Orissa , Maharashtra, Gujarat,
Goa, Andhra Pradesh, Tamil Nadu, Karnataka & Kerala by Regional Centres for Urban and
Environmental Studies, Lucknow, Mumbai and Hyderabad and the actions taken thereof.
Findings:-

1. Three-fourths of the beneficiaries feel benefited by the projects carried out under the IDSMT Scheme.
2. In many towns physical achievement in comparison to original target has been less, but the amount spent is
found equal or sometimes more than the estimated outlay.
3. The Census data revealed the continuous and steady concentration of population in Class-I towns and it is
attributed to two factors, i.e. natural growth and in-migration. The migration to big urban centres is not
exclusively from rural areas, but from small urban centres as well.
4. Many State Govts. are not sincere in making state share available on regular basis and this becomes a major
constraint. The help of State Planning Board and State Finance Commission may be sought.
5. The elected representatives, Community Development Groups etc. should be associated at the stage of
formulation of schemes.
6. Implementing agencies have not sought institutional financing. Instead of institutional financing public –
private partnership should be facilitated and community at large be brought into network.
7. Periodical workshops and training programmes should be organized for re- orienting the officials in
implementation of the IDSMT Scheme.
8.Spatial pattern of urbanization in India dominated by big cities has not changed significantly despite the effort
of Government to promote the growth of small and medium towns through IDSMT. The programmes have
certainly helped to provide some revenue to local bodies.
9.To check flow of unemployed from rural to big cities, development of small and medium towns all over the
country and strengthening their linkages with contiguous rural areas deserves special attention.
10. Schemes covered under IDSMT are being monitored and executed properly. State Governments have
constituted SLSCs and local level monitoring committees for proper quicker implementation of projects and
these committees have been doing excellent work.
11. The successful implementation of schemes in the case study towns have helped in improving the status of
these towns as growth centres and generated sizeable employment and has reduced the gap in infrastructure
needs. It has helped in achieving the objectives of the scheme.
Action Taken:-
1. Since, it is an outcome of the implementation of the scheme, no further action is required.
2. Due to delay in implementation, cost over run may have taken place. States to expedite execution, timely, to
avoid cost over runs. The States have been, time and again, directed to completion of the schemes as per
schedule.
3. Migration from rural and small urban centres is a result of several socio-economic factors and IDSMT alone
cannot stop the process. As such, the objective of reduction in migration is deleted in the new scheme,
UIDSSMT.

4. The State Planning Board and State Finance Commissions are again in the State domain. However, Secretary,
Planning of the State Government is made one of the members of the SLSC of UIDSSMT. Further, release of
further instalment of central assistance is considered only after release of matching State share by the concerned
States. This will be followed in the revised guidelines too.
5. The existing guidelines provide for consultation with elected representatives of the ULBs in formulation of
schemes. The Municipal council resolution in selection of the schemes is mandatory.
6. In view of the limited response to the institutional finance component, the share from financial institutions is
limited to 10% only of the project cost in new scheme of UIDSSMT. Besides, projects from public- private
partnership are encouraged in a big way in the new scheme.
7. The existing as well as UIDSSMT guidelines provide for periodical workshops and training programmes.
Training programmes are organised at different locations across the country. Organising such programmes will
continue in future also.
8. This is an outcome of the scheme and no further action is required.
9. The existing guidelines emphasize linkages with the contiguous rural areas and the project reports are sought
to be prepared taking into account the needs of the hinterland of the town/region. No further action may be
required.
10. No further action is required.
11. This is an outcome of the implementation of the schemes.

Integrated Development of Small & Medium Towns (IDSMT) Scheme

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