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Posted by on Feb 10, 2014 in Welfare Schemes |

Highlights of PURA (2012)

The PURA is a central govt sponsored scheme to provide basic urban amenities in rural area by convergence of different rural development schemes. The President Dr A.P.J. Abdul Kalam highlighted a vision of transformation of rural India through launching a mission for PURA in 2003. But in 2012, Rural Development minister said that PURA is a complete failure and launches a restructured version of PURA with strategy of Public Private Partnership (PPP). For expeditious & better implementation of scheme, the strategy of PPP is adopted.

Mission and Strategy

  • The Primary objectives of the scheme are to provide better livelihood opportunities and basic urban amenities in rural area to bridge the rural-urban divide.
  • The objectives of PURA are proposed to be achieved under framework of PPP b/w Gram Panchayat and Private partner. The core funding shall be sourced from Central scheme of PURA and complemented by schemes of different ministries.
  • The scheme shall be implemented and managed by private sector with consideration of economic viability and basic emphasis on rural development.

Planning & Implementation

  • The benefits or amenities under scheme shall be provided by Private Partner. The Private Partner shall identify villages of population about 25000-40000 and a group of that villages for purpose of the scheme.
  • Only community development schemes shall be delivered by Private Partner as it is a cumbersome job to deliver individual beneficiary schemes.

MoRD (Ministry of Rural Development) Schemes

  • The Amenities under MoRD schemes are as follows:-
    • Water and Sewerage – National Rural Drinking Water Programme (NRDWP).
    • Construction & maintenance of Village Streets – Pradhan Mantri Gram Sadak Yojana (PMGSY).
    • Skill Development & economic activities – Swarnjayanti Gram Rojgar Yojana (SGSY).
    • Drainage & Solid Waste Management – Total Sanitation Campaign (TSC).

The Convergence of above schemes shall be done at level of District Rural Development Agency (DRDA) and make available to private partner.

  • The Funding for above schemes & amenities shall be under budgetary expenditure of MoRD.
  • The work permitted under MNREGA, 2005 shall be made available under National Rural Employment Guarantee Scheme to register card holders. The Gram panchayat shall bear that cost under NREGS & shall be excluded from PURA projects.

Non MoRD Schemes

  • The Amenities under different schemes of other ministries are:
    • Village Street lightning;
    • Telecom, Electricity etc;
    • The above facilities shall be delivered by Private Partner and Private Partner shall be funded by different ministries through DRDA.

Add-on Projects

  • Every Private Partner is obligated to start Revenue earning and People centric projects in add-on to above projects such as:-
    • Village Tourism Projects;
    • Agri – common service centers & Warehousing;
    • Integrated Rural Business centers & Rural Market.

At least one shall be executed from above or any other economically viable project.

  • The above projects are partly funded by govt and partly cost to Private Partner such as O&M cost etc. The revenue generated from above projects shall be used by Private partner to bear that cost.


  • The land is most important requirement for all PURA projects and for all govt schemes land shall be provided by Gram panchayat/state govt to private partner free of cost.
  • For add-on facilities, if land is provided by panchayat/state govt then profit will be shared by both private partner & gram panchayat and return to gram panchayat after such fees or concession period as may be determined under agreement b/w panchayat and Partner.

Bidding & Implementation

  • The Private Partner or developer shall be selected trough competitive Bidding process. The bidder shall submit a Concept plan for PURA projects for consent of Gram Panchayat and State govt.
  •  After letter of award, the private developer shall enter into concessional agreement with gram panchayat and state support agreement with state govt.
  • The developer shall put in place a Plan of action for construction of PURA projects for period of max 3 yrs and  for Operation & Maintenance (O&M) up to 10 yrs from COD (Commercial operation date).
  • The monitoring of projects shall be done Project Screening &Monitoring committee. Also an impact assessment of PURA scheme shall be made by committee for effective implementation.
  • The Private Partner shall prepare & submit Detailed Project Report (DPR) on basis of Concept plan submitted at time of bidding within 6 months of award of project to MoRD for review and approval.


  • The non achievement of projects in prescribed time, any deviation from standards or failure of O&M of project etc. shall considered as default and lead to termination of contracts or agreements of Private Partner with Gram panchayat and state govt.
  • Selection of private developer, Monitoring etc. for implementing PURA project are obligations of MoRD.
  • The key obligations of Private partner are as follows:-
    • Develop urban amenities in rural area as per described schemes and projects;
    • Maintain standards of amenities or activities as defined by Central/State govt for purpose of sustainable development of rural area;
    • Provide necessary information to Gram panchayat & engineer for continuous of work;
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