The Jawaharlal Nehru National Urban Renewal Mission adopted a reform-linked funding approach, the culmination of two decades of active debate and experimentation in the urban development sector. Yet, progress of both fund utilisation and reforms under the programme has been tardy. As a second phase of the mission is planned, the three major themes of importance are decentralisation, especially in the fiscal arena, commercial financing of infrastructure projects, and service delivery to the urban poor.