India’s urban infrastructure financing, needs and reality

Context: India’s urban population will increase from 400
million in the last decade to 800 million over the next three decades. While
this offers an opportunity to transform India’s urban landscape, there are
significant financial challenges that must be overcome to get there. A recent
World Bank report estimates that India will require about ₹70 lakh crore by
2036 to meet its urban infrastructure needs. Current government investment
(2018 figures) in urban infrastructure stands at around ₹1.3 lakh crore annually.
This is just a little over one-fourth of the required ₹4.6 lakh crore per year.
Broadly, about 50% is estimated for basic urban services, with the other half
for urban transport.

Urban Planning and Development
in India

·      
About: Proper urban planning and development is key to
achieving India’s dream of being a Vikshit Bharat by 2047 due to the following
reasons-

Ø  Urban centres as propellents of economic growth - Urban cities in India occupy just 3% of the land but
contribute to ~60% of the GDP. Urban centres are economic hubs which contribute
to the rapid economic development of the country. For Ex– Bangalore, Hyderabad,
Gurugram- IT hubs, Mumbai-Financial Hub.

Ø  Rapid growth in Urban population - India is the second-largest urban system in the
world, with almost 11% of the total global urban population living in Indian
cities. India’s urban population is expected to cross 50% of the total
population within the next two decades, necessitating proper planning to ensure
ease of living.

Ø  Planning for the large number of urban poor - According to the Ministry of Finance, one in-three
poor people lives in urban areas. This figure was about one-in-eight in the
early 1950s. Hence, proper urban planning is necessary to stop the growth of
unabated slums and shanties. For ex- Slums of Dharavi near the financial hub of
BKC in Mumbai.

Ø  Improving the quality of urban life - Proper Urban planning ensures access to basic
services such as water, sanitation, and healthcare. It also creates livable and
walkable neighbourhoods that are safer and more pleasant to live in.

Ø  Enhancement of environmental sustainability - Urban planning ensures that cities are designed in a
way to minimize their impact on the environment through measures such as green
spaces, energy-efficient buildings, and sustainable transportation options.

·      
Challenges: Uneven urbanisation - There is uneven
distribution of urban centres and lack of uniformity of pace of urbanisation
across the country. States such as Bihar, Odisha, Assam, and Uttar Pradesh lag
in urbanisation rates while states like Karnataka, Tamil Nadu, Maharashtra are
leading. This makes it difficult to implement a uniform policy for urban
planning and development.

Statutory Towns Growing Without ‘Master Plans’- According to the NITI Aayog Report ~50% of India’s
statutory towns are expanding without any master plan to guide their growth and
infrastructure.

Lack of Capability of Local Governments - The local government lacks funds, functions and
functionality for planned urban infrastructural development and service
delivery. For Ex- reliance on grants from Centre and State for their
functioning.

Sub Optimal Utilisation of Urban Land - Ministry of Housing and Urban Affairs (MoHUA) has
noted the paradox of congested land parcels of high population densities
co-existing with vast parcels of under-utilized lands. Multiple public sector
organizations/agencies (ports, railways, ULBs, etc.) own land under their
jurisdictions. This hinders holistic urban planning and development.

Magnitude of Population Living in Slums - According to Census 2011, 17.3% of the total urban
population is living in slums. Lack of affordable housing is contributing to
creation and expansion of slums.

Increasing Risk of Water Scarcity in Cities - Indian cities dominate current and future lists of
global cities with the highest overall water risk (The Worldwide Fund for
Nature India 2020). For Ex- the looming fear of ‘Day Zero’ in Bangalore.

Lack of Planning for Disaster Mitigation - The Parliamentary Standing Committee on Home Affairs
in its report has observed that the encroachment of lakes and riverbeds had
played a major role in urban flooding in Chennai.

·      
Initiatives
Related to Urban Governance: Ministry
of Housing and Urban Affairs (MoHUA) - Formulates national policies and
oversees central government schemes related to urban development.

State Departments of Urban Development - Implement central government policies and enact
state-specific urban development regulations.

Municipal Corporations/Municipalities - They are responsible for local-level planning,
development control, and service delivery within their jurisdictions.

Urban Development Authorities (UDAs) - Special agencies established for the development of
specific urban areas or projects.

·      
Way
forward: NITI Aayog has provided
recommendations in the ‘Reforms in Urban Planning in India ‘Report to improve
the urban planning and development in India.

Programmatic intervention for planning of healthy
cities - NITI Aayog has recommended a
central sector scheme ‘500 Healthy Cities Programme’, for a period of 5 years
to ensure holistic socio-economic development of Indian cities.

Involvement of Citizens in Planning - NITI Aayog has recommended a ‘Citizen Outreach
Campaign’ for making the process of urban planning more inclusive and
accessible.

Enhanced Role of Private Sector - The role of private sector must be enhanced in urban
planning and development, like the empanelment of private sector consultancies.