New Delhi: The second phase of India’s urban renewal programme will further incentivize public-private partnership (PPP) projects, urban development minister Kamal Nath said at a book launch on Tuesday.

States should have a dedicated municipal service before getting projects sanctioned under second phase of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), he said.

Nath added that it is important for large municipal corporations to become bankable.

“We need to create local governments which are financially independent," he said.

The first phase of JNNURM from 2005 to 2012 focused on planned development in cities, sanctioning projects related to urban transport, water supply and sewage, among others.

The second phase will have more PPP projects to choose from, Nath said.