Taking note of the challenges of rapid urbanization, Prime Minister Manmohan Singh on Friday listed urban renewal as one of seven priorities of the government.

The seven priorities of the government have been listed as agriculture, water, education, health care, employment, urban renewal and infrastructure.

"More and more of our people now live in our cities. The Jawaharlal Nehru National Urban Mission (JNNURM) has been funding urban development and modernisation of our cities," Singh said, while addressing the nation from the ramparts of the Red Fort.

JNNURM, a massive city modernisation scheme was launched on December 3, 2005 with the objective of achieving reforms driven, fast track and planned development identified cities.

It is estimated that by the year 2011 urban areas would contribute about 65 percent of GDP. Urban economic activities are dependent on infrastructure such as power, telecom, roads, water supply and mass transportation coupled with infrastructure such as solid waste management.

Since the launch of the JNNURM, 63 cities have submitted their city development plans delineating their long-term vision for development and 305 projects have been sanctioned under the scheme so far.

The JNNURM scheme is being implemented by the Urban Development Ministry.

Skills development

With a view to provide better employment opportunities, the government will set up a special Skill Development Corporation for the youth with active participation of the private sector.

"A Skill Development Corporation will be created by the Government with the active participation of the private sector to give special training to our young men and women, our workers and our technicians," said the PM.

Singh said the government has established a new Skill Development Mission, which will work under the supervision of the Prime Minister.

Continuing to focus on the education sector, the Prime Minister said the government was implementing several new scholarship schemes for the educational development of children.

Schemes for pre-matric and post-matric scholarships for children hailing from SC, ST, OBC and minority families are being implemented, he said adding special scholarships for meritorious students from these communities have also been launched.

"Scholarships for overseas studies are being given to SC and ST students. National merit-cum means scholarships for children hailing from economically weaker sections and children with disabilities have also been approved," he said.

Singh asserted that the government was sincerely implementing most of the recommendations of the Justice Sachar Committee report on social, economic and educational empowerment of the Muslim community.