The aim of the study was to undertake an analysis of sustainability of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the largest chunk of public sector funding yet to be channelled into urban India. The focus of this study is on the Urban Infrastructure and Governance (UIG) sub-mission of JNNURM, which primarily focuses on infrastructure. The study sought to ask two key questions of JNNURM: a. To what extent have considerations of environmental sustainability been incorporated within (explicitly or implicitly) in vision and programme design of JNNURM?b. To what extent and how were the sustainability goals, as outlined in the vision and programme design, taken into considerations by the cities? The results of the study based on the review of the programme, the CDPs and fieldwork illustrate how issues of environmental sustainability have been integrated into JNNURM at different levels. Based on these findings, the study has put forward a set of draft recommendations that can ensure that investments in next phase of JNNURM or other similar programmes can be directed towards urban sustainability.