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REFERENCE NOTE .
No.3/RN/Ref./2013
For the use of Members of Parliament

Not for Publication

Challenges of Urbanization

--------------------------------------------------------------------------------------------------------------------The reference material is for personal use of the Members in the discharge of their Parliamentary duties,
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Challenges of Urbanization in India

Introduction
Urbanisation in India has become an important and irreversible process, and an
important determinant of national economic growth and poverty reduction. The process
of urbanisation is characterised by a most dramatic increase in the number of large
cities, although India may be said to be in the midst of transition from a predominantly
rural to a quasi urban society1.
In 2001, Indias urban population, living in approximately 5,200 urban
agglomerations, was about 285 million. It has increased to almost 380 million in 2011.
Projections are that by 2030, out of a total population of 1.4 billion, over 600 million
people may be living in urban areas. The process of urbanisation is a natural process
associated with growth. There is no doubt that the condition of the poor in rural India
must continue to get major attention but the urban sector development should not be
viewed as negating such attention or weakening it in any way. On the contrary, we must
acknowledge that there is a synergistic relationship between rural prosperity and the
continuum of urban development from small towns through larger cities to metros. A
holistic approach to spatial development is needed if the country wishes to achieve
more inclusive growth.

Urban Growth
An interesting aspect of the urbanisation trend revealed by the Census is that the
number of towns in India increased from 5,161 in 2001 to as many as 7,935 in 2011. It
points out that almost all of this increase reflects the growth of census towns (which
increased by 2,532) rather than statutory towns (which increased by only 242).
Statutory towns are towns with municipalities or corporations whereas census towns
are agglomerations that grow in rural and peri-urban areas, with densification of
populations, that do not have an urban governance structure or requisite urban
infrastructure of sanitation, roads, etc. As more Indians will inevitably live within
urbanized conglomerations, with densification of villages, sprouting of peri-urban
centres around large towns, and also migration of people into towns, the quality of their
lives and livelihoods will be affected by the infrastructure of Indias urban
conglomerations. The infrastructure of Indias present towns is very poor. Sewage,
water, sanitation, roads and housing are woefully inadequate for their inhabitants. The
worst affected are the poor in the towns. As more urban conglomerations form and grow
without adequate infrastructure, the problems will only become worse. Therefore, Indias
urban agenda must get much more attention2.
1

India, Ministry of Urban Development, Annual Report 2011-12, p.1


th
An Approach Paper to the 12 Plan, Planning Commission, Government of India, October 2011, pp.
108-109
2

-2Level of Urbanisation
Among all the States and Union Territories, the National Capital Territory of Delhi
is most urbanized with 93 per cent urban population followed by Union Territory of
Chandigarh (89.8 per cent) and Pondicherry (66.6 per cent).
Among the major States, Tamil Nadu is the most urbanized state with 43.9 per
cent of the population living in urban areas followed by Maharashtra (42.4 per cent) and
Gujarat (37.4 per cent). The proportion of urban population is the lowest in Himachal
Pradesh with 9.8 per cent followed by Bihar with 10.5 per cent, Assam (12.7 per cent)
and Orissa (14.9 per cent).
In terms of absolute number of persons living in urban areas, Maharashtra leads
with 41 million persons which is 14 per cent of the total population of the country. Uttar
Pradesh accounts for about 35 million followed by Tamil Nadu 27 million 3.

Causes of Urbanisation
Urbanization occurs naturally from individual and corporate efforts to reduce time
and expense in commuting and transportation while improving opportunities for jobs,
education, housing, and transportation. Living in cities permits individuals and families
to take advantage of the opportunities of proximity, diversity, and marketplace
competition. People move into cities to seek economic opportunities. A major
contributing factor is known as rural flight.
In rural areas, often on small family farms, it is difficult to improve ones standard
of living beyond basic sustenance. Farm living is dependent on unpredictable
environmental conditions, and in time of drought, flood or pestilence, survival become
extremely problematic. In modern times, industrialization of agriculture has negatively
affected the economy of small and middle-sized farms and strongly reduced the size of
the rural labour market. Cities, in contrast, are known to be places where money,
services and wealth are centralized. Cities are where fortunes are made and where
social mobility is possible.
Businesses, which generate jobs and capital, are usually located in urban areas.
Whether the source is trade or tourism, it is also through the cities that foreign money
flows into a country. It is easy to see why someone living on a farm might wish to take
their chance moving to the city and trying to make enough money to send back home to
their struggling family. There are better basic services as well as other specialist
services that arent found in rural areas. There are more job opportunities and a greater
variety of jobs. Health is another major factor. People, especially the elderly are often
forced to move to cities where there are doctors and hospitals that can cater for their
health needs4.

3
4

www.urbanindia.nic.in
Urbanization in India, By Prof. Ashok Purohit (2012), pp. 2-3

-3Economic Effects
In recent years, Urbanization of rural areas has increased. As agriculture, more
traditional local services, and small-scale industry give way to modern industry the
urban and related commerce with the city drawing on the resources of an ever-widening
area for its own sustenance and goods to be traded or processed into manufactures.
Research in urban ecology finds that larger cities provide more specialised goods and
services to the local market and surrounding areas, function as a transportation and
wholesale hub for smaller places, and accumulate more capital, as well as often
concentrating administrative functions for the area in which they lie.
This relation among places of different sizes is called the urban hierarchy. As
cities develop, effects can include a dramatic increase in costs, often pricing the local
working class out of the market, including such functionaries as employees of the local
municipalities. For example, Eric Hobsbawms book The age of the revolution: 1789
1848 stated Urban development in our period was a gigantic process of class
segregation, which pushed the new labouring poor into great morasses of misery
outside the centres of the government and business and the newly specialised
residential areas of the bourgeoisie.

Environmental Effects
The urban heat has become a growing concern and is increasing over the years.
The urban heat island is formed when industrial and urban areas are developed and
heat becomes more abundant. In rural areas, a large part of the incoming solar energy
is used to evaporate water from vegetation and soil. In cities, where less vegetation
and exposed soil exists, the majority of the suns energy is absorbed by urban
structures and asphalt. Hence, during warm daylight hours, less evaporative cooling in
cities allows surface temperatures to rise higher than in rural areas. Additional city heat
is given off by vehicles and factors, as well as by industrial and domestic heating and
cooling units5.

Urban Infrastructure
The India Infrastructure Report, 1996 estimates the annual investment need for
urban water supply, sanitation and roads at about 28,035 crores for the next ten years.
The Central Public Health Engineering (CPHEEO) has estimated the requirement of
funds for 100 percent coverage of the urban population under safe water supply and
sanitation services by the year 2021 at Rs.172,905 crores. Estimates by Rail India
Technical and Economic Services (RITES) indicate that the amount required for urban
transport infrastructure investment in cities with population 100,000 or more during the
next 20 years would be of the order of Rs.207,000 crore. Obviously, sums of these
magnitudes can not be located from within the budgetary resources of Central, State
and Local Governments. A compulsion has, therefore, arisen to access financial

Ibid, pp.4- 5

-4resources from the market and induces the private sector to participate in urban
development programmes6.
The Ministry of Urban Development is implementing a number of Central and
Centrally Sponsored Schemes for assisting the States in meeting the challenge of rapid
urbanisation. Brief details of the schemes are given below:

JNNURM
The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was
launched on 3rd December, 2005 with the objective of reforms driven and fast track
development of cities across the country, with focus on bringing about efficiency in
urban infrastructure, service delivery mechanisms, community participation and
accountability of Urban Local Bodies and Parastatal agencies towards citizens.
65 Cities are covered under the Urban Infrastructure & Governance (UIG)
component of the JNNURM. These cities have submitted their City Development Plans
delineating their long-term vision for development. All the 65 Mission Cities have signed
Memorandum of Agreement (MoA) with Government of India committing to a time
bound agenda of reforms aimed at achieving sustainable urban transformation. The
duration of the Mission is seven years beginning from 2005-06 to 2012-2013. During the
period, the Mission seeks to ensure sustainable development of select cities.

(i)

Urban Infrastructure and Governance (UIG): The main thrust of the sub-mission on
Urban Infrastructure and Governance is on major infrastructure projects relating to
water supply including sanitation, sewerage, solid waste management, road network,
urban transport and redevelopment of inner (old) city areas with a view to upgrading
infrastructure therein, shifting industrial/commercial establishments to conforming areas
etc.
The inadmissible components are projects pertaining to the following:a)
b)
c)
d)
e)

Power
Telecom
Health
Education
Wage employment programme & staff component7

Details of the projects approved for the various mission cities under UIG are
given at Annexure-I.
(ii) National Mission Mode Project on e-Governance in Municipalities: A Mission Mode
Project on e-Governance in municipalities has been prepared by Ministry of Urban
Development to make urban governance more efficient and effective. Since local
6
7

www.urbanindia.nic.in
India, Ministry of Urban Development, Annual Report 2011-12, pp. 19-20

-5Government is the first interface between citizens and government this initiative would
solve a number of problems that the people in towns and cities are facing due to rapid
urbanization. It would assist improved service delivery, decentralization, better
information management & transparency, citizens involvement in government,
improved interaction between local governments and its citizens as well as other
interest groups like NGOs, CBOs, RWAs, etc. It has been decided that initially the
scheme would be a part of Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) for 35 cities with population of over 10 lakh8.

(iii) National Urban Sanitation Policy: In order to have uniformity across the country, a
National Urban Sanitation Policy has been issued by the Ministry and the State level
Strategy and City Sanitation Plans are being drawn up9.
The main goals and objective of the policy are as follows:

Awareness Generation and Behaviour Change


a) Generating awareness about sanitation and its linkages with public and
environmental health amongst communities and institutions;
b) Promoting mechanisms to bring about and sustain behavioural changes aimed at
adoption of healthy sanitation practices;

Achieving Open Defecation Free Cities


All urban dwellers will have access to and use safe and hygienic sanitation
facilities and arrangements so that no one defecates in the open. In order to achieve
this goal, the following activities shall be undertaken:
a) Promoting access to households with safe sanitation facilities (including proper
disposal arrangements);
b) Promoting community-planned and managed toilets wherever necessary, for
groups of households who have constraints of space, tenure or economic
constraints in gaining access to individual facilities;
c) Adequate availability and 100% upkeep and management of Public Sanitation
facilities in all Urban Areas, to rid them of open defecation and environmental
hazards;

8
9

Ibid, p. 23
Ibid, p. 27

-6Re-Orienting Institutions and Mainstreaming Sanitation


a) Mainstream thinking, planning and implementing measures related to sanitation
in all sectors;
b) Strengthening national, state, city and local institutions;
c) Extending access to proper sanitation facilities for poor communities and other
unserved settlements;

Sanitary and Safe Disposal


100 % of human excreta and liquid wastes from all sanitation facilities including
toilets must be disposed of safely. In order to achieve this goal, the following activities
shall be undertaken:
a) Promoting proper functioning of network-based sewerage systems and ensuring
connections of households to them wherever possible;
b) Promoting recycle and reuse of treated waste water for non potable applications
wherever possible will be encouraged.
c) Promoting proper disposal and treatment of sludge from on-site installations
d) Ensuring that all the human wastes are collected safely confined and disposed of
after treatment so as not to cause any hazard to public health or the
environment.

Proper Operation & Maintenance of all Sanitary Installations:


a) Promoting proper usage, regular upkeep and maintenance of household,
community and public sanitation facilities;
b) Strengthening ULBs to provide or cause to provide, sustainable sanitation
services delivery10.

(iv) Urban Infrastructure Development Scheme for Small and Medium Towns Scheme
(UIDSSMT): Urban Infrastructure Development Scheme for Small and Medium Towns
Scheme (UIDSSMT), one of the sub-components of JNNURM was launched in
December, 2005 by subsuming the erstwhile Scheme of Integrated Development of
Small and Medium Towns (IDSMT) and Accelerated Urban Water Supply Programme
(AUWSP). The objectives of the Scheme are to:10

www.urbanindia.nic.in

-7(i)

Improve infrastructural facilities and help create durable public assets and quality
oriented services in cities & towns.

(ii) Enhance public-private partnership in infrastructural development and


(iii) Promote planned integrated development of towns / cities.
Details of State-wise release of funds under the UIDSSMT are given at
Annexure-II.
(v) National Urban Information System (NUIS): Ministry of Urban Development has
launched National Urban Information System (NUIS) Scheme during the Tenth Five
Year Plan to develop GIS database for 152 towns/cities in the country in two scales i.e.,
1:10000 and 1:2000. In addition utility mapping on 1:1000 scales is also undertaken for
22 towns.
NUIS scheme broadly comprises two components, namely, Urban Spatial Information
System Components (USIS), and National Urban Data Bank and Indicators (NUDB&I).
The spatial and attribute database thus g generated will be useful for preparation of
Master/Development plans, detailed town planning schemes and serve as decisionsupport for e-Governance.
(vi) Scheme for Urban Infrastructure in Satellite Town around seven mega cities:
Ministry of Urban Development is implementing a pilot Scheme for Urban Infrastructure
Development in Satellite Towns around seven Maga Cities. The objectives of this
scheme are as under:i)

To develop urban infrastructure facilities such as drinking water, sewerage and


solid waste management etc at satellite towns around the seven mega-cities and
to channelize their future growth so as to reduce pressure on the mega cities;

ii)

To implement reforms such as E-Governance, property tax, double entry


accounting, creation of barrier free environment, structural safety norms in
compliance with the National Building Code, water and energy audit of water and
wastewater utilities and implementation of service level benchmarks;

iii)

Strengthening implementation of reforms such as levy of reasonable user


charges, earmarking of budgets for basic services and at least 10-15% of
housing sites for the urban poor, formulation of bye-laws to incorporate
provisions for disaster management, water harvesting and reuse and recycle of
waste water and implementation of Public Private Partnership (PPP) projects.
The following projects have been sanctioned under this scheme11:

11

India, Ministry of Urban Development, Annual Report 2011-12, pp. 33, 36

-8-

S. No. Project Name


1
2
3
4
5
6
7
8
9
10
11

(Rs in lakh)
Approved cost

Integrated Solid Waste Management for Vasai Virar


Municipal Solid Waste Management Scheme for Sonepat Town
Augmentation of Water Supply by Ranney Well,Sonepat
Under Ground Drainage Scheme, Vikarabad
Water Supply Improvement Scheme, Vikarabad
Pilkhuwa Sewerage Scheme
Municipal Solid Waste Management Scheme for Pilkhuwa Town
Re-organization of water supply for Pilkhuwa Town
Sewerage System of Sanand Nagarpalika
Solid Waste Management Scheme for Sanand Nagarpalika
Water Supply System of Sanand Nagarpalika

3172.64
2496.00
6958.00
6474
7009
3687.51
897.7
2167.55
5848.68
213.62
3320.86

(vii) Indo-Japan Working Group on Urban Development: In pursuance of the Joint


Statement Towards JapanIndia Strategic and Global Partnership announced by the
Prime Ministers of Japan and India in December, 2006, inter-alia, referring to the
launching of working groups by the two countries in the field of urban development, a
Memorandum of Understanding (MoU) between India and Japan on cooperation in the
field of Urban Development was signed on 1.5.2007 at New Delhi. MoU was signed by
Minister of Urban Development on behalf of Government of India and Minister of Land,
Infrastructure and Transport, Government of Japan on behalf of Government of Japan.
As per the MoU, the Working Group will meet once a year and the first meeting will be
held in Japan, and the second and subsequent meetings will be held alternately in India
and Japan. The Working Group will be co-chaired by the Secretary, Ministry of Urban
Development, Government of India and Vice-Minister for Engineering Affairs, Ministry of
Land Infrastructure and Transport, Government of Japan.
The project-wise details of ODA and JICA loans are given at Annexure- III.

(viii) Urban Water Supply and Sanitation


Water supply and sanitation are important basic needs affecting the quality of life
and productive efficiency of the people. The State Governments/Union Territories and
urban local bodies are responsible for providing these services through planning,
design, implementation, operation and maintenance. The Ministry of Urban
Development is responsible for formulation of broad policies and programmes and
assists State Governments/UTs in providing technical assistance in water supply and
sanitation sector. The programmes and activities undertaken by the Ministry during
2011-12 are as under:(a)

Sea Water Reverse Osmosis De-salination Plant at Nemmeli, Chennai: The


Government of India has approved a project for setting up of 100 MLD Sea
Water Reverse Osmosis Desalination Plant at Nemmeli near Chennai at an
estimated cost of Rs.871.24 crore in 2008-09. During the Joint Monitoring
Committee (JMC) Meeting held under the Chairmanship of Joint Secretary (UD)
on 20-12-2011, it was informed by CMWSSB that the likely total expenditure

-9would be Rs.674.40 crore based on the tendered cost of various component of


the project.
(b) Brihan Mumbai Strom Water Drainage (BRIMSTOWAD) Project at Mumbai:
The Government had accorded approval for the Brihan Mumbai Storm Water
Drainage (BRIMSTOWAD) project at a cost of Rs. 1200.53 crore in July, 2007.
Ministry of Finance released Rs. 400 crore as first installment on 23rd August,
2007, Rs. 100 crore as second installment on 17th February, 2009, Rs. 500 crore
as third installment on 31.3.2010. Thus, a total of Rs. 1000 crore has been
released for the project. A Joint Monitoring Committee was set up on 20th
August, 2007 to review the works of BRIMSTOWAD under the Chairmanship of
Joint Secretary (UD), Ministry of Urban Development12.

New Phase of JNNURM


The Government will be launching the next phase of JNNURM-II with an outlay of
0.25 percentage of GDP, amounting of nearly Rs. 1.75 lakh crore during the 12 th Plan
period. JNNURM-II will have an enhanced focus on the Class-I towns and medium
towns13.
The central focus of the new version is to ensure timely completion of projects
through more robust planning and capacity building of urban administrations. To
achieve this, JNNURM 2.0 proposes to fund projects through loans, which could be
converted to grants if the agreed reforms are implemented at the state or city level.
Urban municipal corporations that clean up their accounts, spruce up governance and
execute projects on time could raise funds for projects on their own in the future. Over
$15 billion, or about Rs 80,000 crore, have been spent on the JNNURM since 2005.
Urban governance is very weak, with poor coordination amongst the many agencies
that must work together," the plan notes. "Capabilities for planning locally are woefully
inadequate, which is leading to projects not aligned with local priorities. Government of
India believes that the new JNNURM based on the learnings of the original mission will
be a major feature of the Twelfth Five Year Plan. As much as 31% of India's population,
or 380 million people, live in urban areas. By 2031, this would increase to about 600
million14.

Rajiv Awas Yojana


In pursuance of the Governments vision of creating a slum-free India, Rajiv
Awas Yojana (RAY) was launched on 2.6.2011.
Under the scheme, Central Assistance will be extended to States that are willing
to assign property rights to slum dwellers and undertake reservation of land/Floor Area
Ratio (FAR)/dwelling units for Economically Weaker Sections (EWS)/Low Income
12

Ibid, pp.30- 42
Ibid, p. 5
14
The Economic Times, New Delhi, dated 6 November 2012
13

-10Groups (LIG), earmark 25 per cent of municipal budget for basic services to the urban
poor/slum-dwellers and bring in legislative amendments and policy changes to redress
land and affordable housing shortages for the urban poor. The phase I of Rajiv Awas
Yojana, which is for a period of two years from the date of approval of the scheme, is
the preparatory phase, and is currently under implementation. Eight pilot projects with
total project cost of Rs. 446.22 Crore involving Central Assistance of Rs. 197.09 Crore
have been approved under RAY for construction of total 8400 dwelling units (DUs). The
first installment of Rs. 65.69 Crore has been released. The projects have been
sanctioned recently and no State Government has reported starting the construction of
houses.
Central outlay of Rs.5000 Crore is earmarked for the preparatory phase, i.e. June
2011 June 2013 (covering part of 2011-12 from the 11th Five Year Plan and part of
2012-13 from the 12th Five Year Plan). The 12th Plan allocation for the second phase
of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), including Rajiv
AwasYojana (RAY) is Rs.35,810 Crore15.

Master Plan for Delhi-2021


The Master Plan of Delhi (MPD) with the perspective for the year 2021 was
notified by the Ministry of Urban Development on 7.2.2007. As per the MPD, Delhi is
divided into 15 Zones. Two zones out of that, namely, K and P Zones are further divided
into two sub-zones each. The Zonal Plans for all the Zones [except Zone-D (New Delhi)]
have been approved and authenticated by the Ministry and, thereafter, Zonal
Development Plans of those zones have been notified by the Delhi Development
Authority16.
(a)

Model Municipal Law: Although the Constitution (74th Amendment Act), 1992
has already completed a decade and urban local bodies (ULBs) have been
delegated with specific responsibilities and functions, adequate financial
resources are not made available to them. As a result, they are not able to
perform their assigned functions in an efficient and effective manner. Thus, the
State Governments were required to amend their State Municipal Laws to give
functional and financial autonomy to ULBs as envisaged by the 74th Amendment
Act.
Keeping this in view, Ministry of Urban Development also developed and
circulated a Model Municipal Law, which intends to assist urban local bodies in
the areas of accounting reforms, resource mobilization, levy of user charges and
entry of private sector partnership. The Model Municipal Law, inter alia, aims at
simplification of municipal by-laws, provision for enhanced borrowing, allowing
entry of private sector and authorising concessionaire to penalize users for nonpayment of tariffs17.

15

Lok Sabha Starred Question No. 70, dated 27.11.2012


India, Ministry of Urban Development, Annual Report 2011-12, p. 45
17
Ibid, pp. 46-47
16

-11(b) Implementation
of
the
13th
Central
Finance
Commission
th
Recommendations: The 13 Central Finance Commission has made certain
path breaking recommendations in respect of transfers of grant to local bodies for
the period 2010-11 to 2010-15. A sum of Rs. 23,111 crores has been
recommended for ULBs. The grant has two components (i) Basic Component
and (ii) Performance Based Component. Out of the amount of Rs. 23,111.00
crores the performance grants amount to Rs. 8000.00 crores. (approx) While the
general basic grants can be released on certification by States and does not
require any conditions to be met. State Governments have to comply with these
conditions before they can access the performance grant from 2011-2012
onwards18.

Urban Transport
A National Urban Transport Policy (NUTP) approved by the Government in April,
2006 seeks to promote integrated land use and transport planning, greater use of public
transport and non-motorized modes of travel, use of cleaner technologies19.
A new scheme providing for 80% Central Financial Assistance for transport
planning has been launched w.e.f. August, 2008 for taking up traffic & transportation
studies/preparation of DPRs. The Scheme covers the wide gamut of urban transport
matters for promoting comprehensive & integrated urban transport planning, integrated
land use and transport planning, comprehensive mobility plans, preparation of DPR,
Clean Development mechanism (CDM), Intelligent Transport System (ITS), launching of
awareness campaign in line with National Urban Transport Policy, 2006.
(a) Financing of Buses for Urban Transport under JNNURM: Under the second stimulus
package announced by the Government on 2 nd January, 2009, the States; as a onetime
measure have been provided financial assistance for purchase of buses for their urban
transport system under the scheme for providing central financial assistance in the form
of grant for procurement of buses for urban transport under JNNURM. The financing is
meant exclusively for City Bus Service and Bus Rapid Transit System (BRTS) for all 65
mission cities. Ministry of Urban Development have sanctioned 15260 buses under the
scheme with a total cost of Rs. 4723.94 crore out of which Additional Central Assistance
(ACA) admissible is around 2089 crore20.
(b)

Metro Rail Projects: In order to strengthen the urban transport in cities, Metro Rail
Service have been introduced in phases in Delhi - NCR. The details are as under:

(i)

Delhi MRTS Project Phase-I: The Government of India approved the investment
proposal for Phase-I of the Delhi Mass Rapid Transit System (MRTS) Project on 17 th
September, 1996 at an estimated cost of Rs. 4859.74 crore at April, 1996 prices with
equity contribution by Government of India and Government of National Capital Territory
18

Ibid, p. 48
Ibid, p. 53
20
Ibid, p. 55
19

-12of Delhi (GNCTD) in equal proportion, long term debt from Government of Japan and
balance of project cost by way of revenue from property development.
(ii)

Delhi MRTS Project Phase-II: The Government of India had initially approved the
investment proposal for Delhi MRTS Phase-II on 30.8.2005 at an estimated cost of Rs.
8118 crore and further revised alignment from IIT to Qutab Minar on 17.10.2006 at an
estimated cost of Rs. 558 crore, i.e. a total cost of Rs. 8676 crore for a stretch of 54.675
km. The cost was further revised to Rs. 8605.36 crore on 7.03.2008 after sanction of
standard gauge (SG-1435mm) (earlier sanctioned on broad gauge (BG-1676mm)) on
Inderlok Mundka Corridor with a saving in cost of Rs. 70.64 crore21.

(iii) Delhi MRTS Project Phase-III: The Government of India has approved the Delhi MRTS
Phase-III for 103.05 km at a cost of Rs.35,242 crore. The work on four different
Corridors is presently in full-swing. The total growth of route under this phase is
103.050 kms22.
(iv)

Delhi MRTS Project Phase-IV: The network being envisaged for Phase IV covers
more than 115km and will connect far-flung areas of the city to the existing network.
The idea was to connect outer Delhi to the heart of the city in the fourth phase. "While
Phase III will make the Metro network denser and bring NCR closer to Delhi; in the
fourth phase, the Government Plans to connect the corners of the city to the Metro
network," an official said23.

(v) Other Metro and BRT Projects: In addition to the above DMRC projects, Metro and
BRT projects for other cities are also at the advanced stage of their execution. They are
Bangalore Metro Rail Project, East-West Metro Corridor, Kolkata, Chennai Metro Rail
Project, Mumbai Metro Rail Project Line-1, Mumbai Metro Rail Project Line-2,
Hyderabad Metro Rail Project, Jaipur Metro Rail Project, Naya Raipur BRT Project,
Indore BRT Project, Mysore, Pimpri-Chinchwad BRT Project24. (See Annexure-III).

Recommendations of Dr. Ishar Judge Ahluwalia Committee


The above High Powered Expert Committee (HPEC) set up in May 2008 by the
Government of India has assessed the investment requirements for Urban Infrastructure
and Services to be of the order of Rs.39.2 lakh crore at 2009-10 prices over 20 year
period, while the Operation & Maintenance (O&M) requirement has been assessed at
Rs.19.9 lakh crore. The Committee submitted its report in March, 2011.
The key recommendations of the Committee are presented below:

21

Ibid, pp. 59-60


Ibid, p. 67
23
Times of India, New Delhi, 10.1.2012
24
India, Ministry of Urban Development, Annual Report 2011-12, pp. 69-77
22

-13This Report comes to the conclusion that Indias economic growth momentum
cannot be sustained if urbanisation is not actively facilitated. Nor can poverty be
addressed if the needs of the urban poor are isolated from the broader challenges of
managing urbanization. Cities will have to become the engines of national
development. India cannot afford to get its urban strategy wrong, but it cannot get it
right without bringing about a fundamental shift in the mindset which separates rural
from the urban.
The Report argues that the challenges of managing urbanisation will have to be
addressed through a combination of increases investment, strengthening the framework
for governance and financing, and a comprehensive capacity building programme at all
levels of government.
At the centre of this approach is the role of cities and towns in an interdependent
federal system. The Committee is of the view that Indias municipal corporations,
municipalities and nagar panchayats, commonly known as urban local bodies (ULBs)
need to be strengthened as local self-government with clear functions, independent
financial resources, and autonomy to take decisions on investment and service
delivery. They must also be made accountable to citizens. Elements of this shift are
already present in the local government framework as reflected in the 74th Constitutional
Amendment, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), and
the emphasis placed on the urban sector by the Thirteenth Central Finance
Commission.
This Report makes a case for a comprehensive framework of urban policy and
planning. The key elements of this framework are:

Increasing investment in urban infrastructure from 0.7 per cent of GDP in 201112 to 1.1 per cent by 2031-32;

In association, increasing spending on maintaining assets old and new;

Engaging in renewal and redevelopment of urban areas including slums;

Improving regional and metropolitan planning with integration of land use and
transportation;

Ensuring access to services for al including the poor to meet the recommended
norms;

Reforming norms;

Reforming governance of cities and towns by a unified command under a Mayor;

Strengthening and securing the financial base of ULBs;

State governments providing an enabling environment for ULBs to discharge


their enhanced responsibilities;

-14

Government of India launching a New Improved JNNURM (NIJNNURM) that


focuses on capacity building and supports urban reforms within a programme
approach25.

The Roadmap Ahead


As urbanisation proceeds faster, the trend the world over is towards smart cities.
It is assumed that 70 per cent of the worlds population will be living in such cities by the
year 2050. In a smart city there will be integration among all concepts and tools in a
variety of areas such as urban planning, mobility, energy efficiency and population
management, all with a view to ensuring sustainable urban development. Innovation
and technology leads to greater efficiency in the provision of clean energy, smart
buildings, open government systems, better water and waste management, sustainable
resource management, smart vehicles, integrated transportation, and so on.
The successful cities of the future will run on information. Today, in addition to
cities trying their best to govern better so that all residents benefit from the best civic
facilities, there is also intense competition among cities. Connectivity has become a
critical element in how they function. The ability to connect businesses and people
enables new services and capabilities; for businesses, being connected means access
to the global market and a platform to offer their services to a larger outside market.
Digital communication and the internet today have assumed the role of a fourth utility.
Not all the mission cities and towns have been able to achieve even this
minimum target. There is a lot more to be done still to have e-governance spread in all
the 4,000-plus municipal bodies, and to steadily extend it to more functions in cities
which have already taken the first steps. Even though done in silos, some prominent
examples of technology leverage in our cities are: Greater Hyderabad using GPS and
GPRS technologies to cover solid waste management, and maintaining parks and street
lights through cell phone images, subsequently put in the public domain; Surat
introducing an on-line water quality monitoring system; Coimbatore's computerised
building-plan approval scheme; Bangalore opting for geographic information systems
(GIS) to standardise property tax administration; Jamshedpur Utilities Company
providing an IT-enabled 24/7 single-window call centre and customer database; and
Kanpur improving municipal revenues using a GIS-linked property database26.

Conclusion
Urban infrastructure needs to be strengthened across the board. Primarily:

25
26

Provision of basic amenities like safe drinking water, sewerage, waste


management facilities and sanitation facilities in urban conglomerations, while

Lok Sabha Unstarred Question No. 3178, dated 12.12.2012


Business Standard, New Delhi, dated 7.10.2012

-15also ensuring that the urban poor have access to these facilities at affordable
cost.

27

Improved water management, including recycling of waste water in large cities


and new townships.

Transportation in urban centres is a major constraint. Currently, public transport


accounts for less than a quarter of urban transport in India. Therefore, urban
mass transit including metro, rail, electric buses and trams as well as other forms
of public transport must be greatly strengthened especially in under-served urban
centres27.

th

An Approach Paper to the 12 Plan, Planning Commission, Government of India, October 2011, p. 110

-16Annexure I
Details of Projects approved for the various Missions cities
during the last three years under UIG28
Sl.No. Name of State

Number of Sanctioned
projects
2009-10 2010-11

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chattisgarh
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Orissa
Punjab
Puducherry
Rajasthan
Sikkim
Tamil Nadu
Tripura
Uttar Pradesh
Uttarakhand
West Bengal
Total

28

3
0
0
0
1
0
20
0
4
0
1
0
0
2
1
2
2
1
0
0
1
1
1
0
0
1
1
1
4
1
12
60

0
0
0
0
0
0
1
0
1
0
0
0
1
0
0
1
0
0
0
0
0
0
0
0
0
0
1
0
0
3
8
16

Cost of Sanctioned projects

2011-12
2
0
0
0
0
0
0
2
1
0
1
1
0
1
0
0
1
0
0
3
1
0
0
0
0
0
0
0
0
1
13
27

2009-10
37,595.00
-

2010-11

13,421.00
503,763.00 135,771.00
45,483.26
2,631.04
5,474.00
3,336.24
6,215.00
2,210.00
37,388.00
18,000.00
22,169.78
10,250.13
5,042.43
7,182.00
4,578.00
7,261.66
22,675.00
11,610.00
10,221.00
65,132.77
6,283.00
4,377.33
111,113.68 120,718.53
923,458.71 296,444.14

Lok Sabha Starred Question No. 140 dated 21.8.2012

2011-12
10,678.00
7,484.08
11,180.65
1,050.62
2,032.03
330.00
10,941.57
11,090.36
4,026.10
1,182.27
146,952.24
206,947.92

Additional Central Assistance


Commitment (ACA)
2009-10
13,935.00
10,738.80
176,316.60
20,604.09
3,880.00
4,332.00
1,105.00
20,115.70
10,336.86
9,225.12
4,538.19
4,500.00
2,289.00
6,535.49
9,000.00
9,000.00
31,500.00
4,628.00
44,822.75
387,402.60

2010-211
47,520.00
2,104.84
1,668.12
9,000.00
4,063.50
3,501.86
42,251.49
110,109.81

2011-12
6,037.70
5,987.26
8,944.52
840.50
1,828.83
264.00
3,829.55
9,981.32
3,623.49
945.82
53,248.03
95,531.02

-17Annexure - II
Status of State-wise release of funds under UIDSSMT
during last three years and current year (as on 31.07.2012)29
Sl.
No.

Name of States

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chhattisgarh
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland

29

Allocation
of funds
for
Complete
Mission
Period

49031.00
746.00
10129.00
25478.00
13478.00
2211.00
35182.00
19559.00
1744.00
3545.00
11452.00
44314.00
23282.00
43843.00
66476.00
1260.00
719.00
824.00
1028.00

No. of
No. of
Towns Projects
/Cities

69
9
28
11
3
3
52
7
4
13
5
30
22
49
84
5
2
2
2

84
9
30
11
4
3
52
9
8
47
6
38
25
68
95
5
2
2
2

Lok Sabha Starred Question No. 140 dated 21.8.2012

Approved
Cost

245995.50
3935.98
20783.28
26113.91
25143.65
2875.00
43814.36
20135.81
12653.68
42441.50
12864.35
68248.57
42778.55
123099.43
282677.57
6277.00
1433.26
1555.04
2325.82

Eligible
central
share
(80%/ 90%
of
approved
cost) (ACA
committed)

Release
of ACA
during
2009-10

Release
of ACA
during
2010-11

196796.40
3542.38
18704.95
20891.13
13472.92
2211.00
35051.49
16108.65
10122.94
38197.35
10291.48
54598.86
34222.84
98479.54
226142.06
5649.30
1289.93
1399.54
2093.24

476.88

43079.00

22017.66
1771.19
2408.73

2447.46
337.20
4651.09

4289.00
768.30
4919.97
2913.22
2098.37

345.82
4020.85
17662.95

14072.30

190.75

3871.53
22781.21

Release Release
of ACA of ACA
during during
2011-12 2012-13

2069.43

2897.54

337.20
1491.20
2594.08
7119.16
1287.12
3917.28

13330.16 14878.14
35455.01 12415.06

699.77
855.87

Total ACA
released
by M/o
Finance/
MHA
so far
(including
incentives)

198091.21
3542.38
12364.67
10674.38
13472.92
1442.70
32866.52
11119.00
5873.30
25473.20
5290.44
52848.70
17340.72
63472.59
194935.08
2845.44
644.97
1399.54
1046.62

Total
Commitment
made so far.
(Col. 7+11)

199157.32
3542.38
18953.14
21119.94
13472.92
2211.00
35195.58
16260.09
10150.03
38611.03
10436.18
55116.01
34532.14
98705.50
226997.01
5670.09
1289.93
1399.54
2093.24

-1820
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

Orissa
Punjab
Rajasthan
Sikkim
Tamil Nadu
Tripura
Uttar Pradesh
Uttaranchal
West Bengal
Delhi
Pondicherry
Andaman &
Nicobar Islands
Chandigarh
Dadar & Nagar
Haveli
Lakshadweep
Daman & Diu
Total

18179.00
22660.00
40143.00
120.00
70597.00
1376.00
94792.00
4670.00
31525.00
112.00
557.00
448.00

14
14
35
5
115
4
46
1
34
0
1
1

18
17
37
5
122
4
64
1
35
0
1
1

25699.59
39577.45
60988.52
3992.82
88272.98
7816.81
115805.15
6173.25
61333.67
0.00
3918.00
558.13

20559.67
31661.96
48790.82
3593.54
70618.38
7035.13
92644.12
4938.60
49066.94
0.00
3134.40
446.50

0.00
193.00

0
1

0
1

0.00
1864.73

0.00
1491.78

104.00
220.00
639997.00

0
1
672

0
0.00
0.00
1
942.37
753.90
807 1402095.73 1124001.74

90.37
1982.00

10448.66
17936.24
28421.99
3617.25
56689.52
6919.68
84613.59
2469.30
35981.33
0.00
3134.40
223.25

20728.44
31785.23
49063.07
3617.25
70618.38
7100.13
93521.12
4938.60
49414.20
0.00
3134.40
446.50

719.89

0.00
745.89

0.00
1491.78

29881.17

0.00
31.00
905976.48

0.00
753.90
1131526.08

16933.84

1796.77
724.88
2759.76
8789.60

577.54
231.38

2005.51

7346.82

5851.23

1935.35

2135.61

10918.80

1567.20

1278.44

1567.20
223.25

122344.44 115026.07 56654.26

-19Annexure -III
The Overseas Development Assistance (ODA) from Government of Japan i.e.
from Japan International Co-operation Agency (JICA) is being availed for
implementing Metro Rail Projects. The funds are being released by Ministry of
Urban Development as Pass Through Assistance (PTA). The project-wise details
of total JICA loan taken/ proposed are given below:(Rupees in crore)
S. No.

Name of the Project

Amount of PTA

1.

Delhi Mass Rapid Transport System Phase-I

6,356.45

2.

Delhi Mass Rapid Transport System Phase-II

10,231.62

3.

Delhi Mass Rapid Transport System Phase-III

18,567.00

4.

Delhi Metro Extension from Mukundpur-YamunaVihar to Shiv Vihar

181.00

5.

Delhi Metro Extension from Dwarka to Najafgarh

365.00

6.

Delhi Metro Extension from Mundka to Bahadurgarh (Delhi Portion)

355.00

7.

Mumbai Metro Line-3 (Colaba-Bandra-SEEPZ) Corridor

8.

Jaipur Metro Rail Project

969.00

9.

Kochi Metro Rail Project

2,170.00

10.

Chennai Metro Rail Project

8,646.00

11.

Kolkata East West Metro Project

2,253.00

12.

Bangalore Metro Rail Project

Source: Lok Sabha Unstarred Question No. 3778 dated 4.9.2012

12,853.00

64.536 billion
Japanese Yen