Smita Aggarwal For UPA government's ambitious project to provide urban infrastructure under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme, there is an estimated investment shortfall of Rs 48,715 crore annually. Under the scheme, central government together with state government and Urban Local Bodies (ULB) has envisaged an investment of Rs 14,285 crore per annum for this mission, with central government allocating Rs 50,000 crore over the seven-year period, and an equal contribution being sought from state government and ULBs. However, the total investment requirement for urban infrastructure is pegged at Rs 63,000 crore per annum for the next ten year period, i.e. from 2004-05 to 2013-14. These estimates, part of a recent study on Municipal Finance in India: An Assessment conducted by RBI's Department of Economic Analysis and Policy, reveal that the total annual investment needs form Rs 63,000 crores or 2.2 per cent of GDP. Speaking to The Indian Express, a senior ministry official expressed concerns about ability of a crippled municipal government, the third tier of federal governance, to raise funds for development. "It is mainly because municipalities are neither financially sound nor credit-worthy. They are completed dominated by state government when it comes to fixing tax rate.' While the Prime Minister may talk of making Shanghai out of Mumbai, fact is, that it is unlikely to become one, unless financial, planning and management systems of Shanghai are borrowed. Rs 14,285 cr Total investment envisaged by the government per annum Rs 63,000 cr Total investment per annum pegged by the RBI study Rs 48,715 cr The estimated shortfall for the scheme