AMRUT supports States in creating basic urban infrastructure - Mission is project based.
Formula for Allocation to States is based on total population and number of statutory urban towns in the state (50:50)
Central government assistance
· 1/2 of project cost to cities having population < 10 lacs
· 1/3 of project cost to cities having population > 10 lacs
Remaining percentage by the State and the ULB
· State contribution to the project cost shall not be less than 20%.
Project fund - 80% of the annual budgetary allocation (90% during first year)
Incentive for Reforms - 10%
State funds for A&OE - 8%
MoUD funds for A&OE - 2%