Urban Infra - Planning Commision

11
Urban Infrastructure, Housing, Basic Services

and Poverty Alleviation
OVERVIEW urbanized compared to many countries of Asia, viz.,

China (32%), Indonesia (37%), Japan (78%), South
URBAN SCENARIO IN THE GLOBAL CONTEXT Korea (83%), and Pakistan (35%).
11.1 Urbanization is a key indicator of economic • There is a continued concentration of the urban
development and should be seen as a positive factor population in large cities and existing city agglom-
for overall development. Also, as an economy grows, erations (Class I cities with population over one
its towns and cities expand in size and volume and lakh) account for 68.9% of the urban population and
the contribution of the urban sector to the national this proportion has been growing. The growth of
economy increases. For instance, the contribution of rural settlements which are acquiring urban charac-
urban sector to India’s GDP has increased from 29% teristic is very slow and there is reluctance on the part
in 1950–51 to 47% in 1980–81. The urban sector pres- of the States to notify the rural settlements as a town.
ently contributes about 62%–63% of the GDP and this • There are large variations in the spatial patterns of
is expected to increase to 75% by 2021 (see Box 11.1). urbanization across the States and cities.
• The pattern of population concentration in large
cities reflects spatial polarization of the employment
Box 11.1
Vision
opportunities.
Indian cities will be the locus and engine of economic 11.3 This phenomenon has led to tremendous pres-
growth over the next two decades, and the realization of sure on civic infrastructure systems, water supply,
an ambitious goal of 9%–10% growth in GDP depends
fundamentally on making Indian cities much more
sewerage and drainage, uncollected solid waste,
livable, inclusive, bankable, and competitive. parks and open spaces, transport, etc. It has also led to
deterioration in the quality of city environments.
In several cities, the problems of traffic congestion,
11.2 The trends of urbanization in India in the recent pollution, poverty, inadequate housing, crime, and
decades indicate the following key features: social unrest are assuming alarming proportions.
• The degree of urbanization in India is one of the 11.4 The number of urban agglomerations and towns
lowest in the world. With about 27.8% of the total has increased from 3768 in 1991 to 5161 in 2001. Fur-
population living in the urban areas, India is less ther, this urbanization is characterized by incomplete
Urban Infrastructure, Housing, Basic Services, and Poverty Alleviation 395
devolution of functions to the elected bodies, lack of sustainable development are to be achieved by reduc-
adequate financial resources, unwillingness to progress ing spatial disparities.
towards municipal autonomy, adherence to outdated
methods in property taxation, hesitation in levy of user REGIONAL DEVELOPMENT PLANS
charges, unsatisfactory role of parastatals in the provi- 11.8 The regional development plans at the State level
sion of water supply and sanitation services. Also, the need to be formulated as a broad policy and vision
governance requirements under the 74th Constitution document for the development of urban and rural
Amendment Act (CAA) in respect of the District Plan- growth centres in an integrated manner.
ning Committees and Metropolitan Planning Commit-
tees (MPCs) have not been met in a number of States. ROLE OF GOVERNMENT AS A FACILITATOR
11.9 The GoI should play the role of a facilitator as
11.5 The extent and magnitude of the urban popula- is being done through JNNURM and various other
tion calls for extra efforts by city planners and manag- reform initiatives such as property tax reforms, muni-
ers to cope up with the ever-growing strain on the cipal accounting reforms, model municipal law,
urban infrastructure. Special attention is needed for guidelines on private sector participation, etc. It should
management and governance of urban areas which are also come up with a policy framework for regulators
at present fragmented between different State-level in the urban sector. The State Governments should
agencies and urban local bodies (ULBs), with lack of play a similar role to facilitate the ULBs in order
co-ordination. to provide an enabling environment for the ULBs to
function as effective units of self-governance at the
11.6 The policymakers need to focus on new ways local level. Urban poverty alleviation, slum up grada-
to achieve the results and on different benchmarks tion, and basic services to the urban poor will continue
that capture efficiency, effectiveness, quality, and to remain as functions belonging to the public domain.
sustainability in governance, service delivery, inter- These functions are redistributive in nature and are
governmental municipal finances, and social de- best handled through redistributive taxes at the con-
velopment. Some of the strategic interventions are trol of Central and State Governments. Thus, Central–
summarized in Box 11.2. State–ULB partnerships will be necessary as potentially
effective ways to address the emerging issues of urban
NATIONAL URBANIZATION POLICY development.
11.7 The time is ripe to formulate a long-term National
Urbanization Policy indicating the emerging pattern PRIVATE SECTOR PARTICIPATION
of urbanization and measures to channelize future ur- 11.10 Private sector participation in the water supply
ban growth in an equitable and sustainable manner. It and sanitation sector could not make significant
should encompass the changing economic scenario, progress till now. There is substantial need and poten-
reform agenda of Jawaharlal Nehru National Urban tial for the same in the Eleventh Plan. However, with-
Renewal Mission (JNNURM), and the role of ULBs in out aiming at the full cost recovery, private sector
the era of globalization. The objectives of balanced and participation cannot be a successful proposition.
Box 11.2
Strategy of Urban Development
• Strengthening urban local bodies through capacity building and better financial management.
• Increasing the efficiency and productivity of cities by deregulation and development of land.
• Dismantling public sector monopoly over urban infrastructure and creating conducive atmosphere for the private sector
to invest.
• Establishing autonomous regulatory framework to oversee the functioning of the public and private sector.
• Reducing incidence of poverty.
• Using technology and innovation in a big way.
396 Eleventh Five Year Plan
THE CONSTRAINTS been allocated. Subsequently, additional Rs 500 crore

11.11 The transformation of the Indian cities faces was allocated in ‘Plan B’.
several structural constraints. Foremost, the current
urban development model starves cities of financing. 11.14 In its initial period, the Mission has focused on
Also, weak or outdated urban management practices— finding good urban infrastructure investments that can
inappropriate planning systems, unsustainable ser- ultimately be undertaken on a self-sustaining basis.
vice delivery models, and lack of focus on the urban Now that this search process has been put in place, a
poor—negate the benefits of agglomeration economies more systematic perspective needs to be adopted. It
in Indian cities by distorting land and housing mar- has to be realized that the ability to tap India’s increas-
kets, rendering cities non-creditworthy, and leaving ingly sophisticated financial markets will remain
them with expensive yet poorly functioning urban severely circumscribed till the local bodies become
services. credible and accountable.
11.12 The current urban management techniques are URBAN REFORM INCENTIVE FUND (URIF)
also out-moded. The Master Plan concept—as cur- 11.15 The Tenth Plan underlined the need for broad-
rently practised in India—is not widely used elsewhere. based reforms to overcome the impediments of urban
Besides, it is not well suited to rapidly growing cities and growth and stipulated that conformity to the reform
multi-jurisdiction urban agglomerations. The Master agenda through the URIF will be made obligatory for
Plan concept has also not been useful in addressing the Central assistance. URIF called upon the States to
India’s large and widely spread slums. By locking-in the repeal the Urban Land (Ceilings and Regulation) Act
supply of buildable land and space, the Master Plan, 1976, reform Rent Control Acts, strengthen property
inter alia, inhibits the development of housing markets tax system, reduce stamp duty, introduce double
and contributes to the proliferation of slums. Therefore, entry accounting system, and revise user charges to
there is an urgent need to develop new management and cover operations and maintenance costs. An alloca-
service delivery approaches across the board. tion of Rs 300 crore was made under URIF for alloca-
tion to different States for implementing the reform
REVIEW OF SCHEMES OF THE TENTH PLAN agenda. The scheme was later subsumed in JNNURM.
JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MEGA CITY

MISSION (JNNURM) 11.16 A CSS for infrastructure development in the
11.13 Consistent with the policies of the present mega cities was introduced in 1993–94 to cover a wide
government, the Prime Minister of India launched range of projects on water supply and sewerage, roads
JNNURM on 3 December 2005 to give focused atten- and bridges, city transport, solid waste management,
tion to integrated development of urban infrastruc- etc. The Central share released during Tenth Plan
ture and services in select 63 cities with emphasis on amounts to Rs 908.69 crore (anticipated expenditure)
provision of basic services to the urban poor, includ- against an allocation of Rs 1050 crore. The scheme has
ing housing, water supply, sanitation, road network, since been subsumed in JNNURM.
urban transport, development of inner (old) city
areas, etc. A provision of Rs 50000 crore has been made INTEGRATED DEVELOPMENT OF SMALL AND
as reform-linked Central assistance over the Mission MEDIUM TOWNS (IDSMT)
period of seven years beginning from 2005–06. The 11.17 IDSMT was launched in 1979–80 to improve
provision of Central assistance is linked to the imple- the economic and physical infrastructure and to pro-
mentation of certain mandatory as well as optional vide essential facilities and services in small and me-
reforms at the State and ULB/parastatal levels during dium towns. Since inception, upto 31 March 2007, a
the Mission period. Against the allocation of Rs 4900 total of 1854 towns, out of 5092 small and medium
crore for 2006–07, an amount of Rs 3906 crore was towns (2001 Census), were covered under the scheme.
released. In 2007–08, an amount of Rs 5500 crore has Out of an approved outlay of Rs 1304.65 crore for the
Tenth Plan, the anticipated expenditure is Rs 566.43 of the project is Rs 99.34 crore. The projects are under
crore (43.4%). As the performance of the scheme was various stages of execution.
not satisfactory, an evaluation was carried out in 2002
which showed that the scheme suffered from (i) lack NEW INITIATIVES FOR THE ELEVENTH PLAN
of capacity for implementation, (ii) non-availability
of matching States share, and (iii) non-availability of POOLED FINANCE DEVELOPMENT FUND (PFDF)
unencumbered land for the projects. The scheme has 11.20 The government had approved on 29 September
since been subsumed in JNNURM as Urban Infra- 2006 a proposal for setting up of a PFDF to provide
structure Development Scheme for Small and Medium credit enhancement to the ULBs to access market
Towns (UIDSSMT). borrowings based on their credit worthiness through
State-level Pooled Finance mechanism. The broad
ACCELERATED URBAN WATER SUPPLY PROGRAMME objectives of PFDF are:
(AUWSP)
11.18 AUWSP was launched in March 1994 to pro- • Facilitate implementation of bankable urban in-
vide safe and adequate water supply to towns having frastructure projects through appropriate capacity-
population less than 20000 (as per 1991 Census), to building measures and financial structuring of
improve environment and quality of life, and to bring projects.
about better socio-economic conditions to sustain the • Facilitate the ULBs to access capital and financial
economy. Since its inception, 1244 towns have been markets for investment in critical urban infrastruc-
covered and 639 projects have been completed at an ture by providing credit enhancement grants to
estimated cost of Rs 1822.38 crore, including Central State-pooled Finance Entities for accessing capital
funds of Rs 828.06 crore. Against the approved outlay markets through Pooled Financing Bonds on be-
of Rs 900 crore for the Tenth Plan, an expenditure of half of one or more identified ULBs for investment
Rs 406.50 crore was incurred which is about 45.2%. in the urban infrastructure projects.
Concurrent evaluation of the scheme was made in • Reduce the cost of borrowing to local bodies with
November 2003 for 62 towns in 24 States. Major appropriate credit enhancement measures and
recommendations of the study included handing over through restructuring of existing costly debts.
of the scheme to ULBs, timely release of State funds, • Facilitate development of Municipal Bond Market.
periodic review of tariff, and training to field engineers
for effective implementation. The scheme has since 11.21 All State/UT governments have been requested
been subsumed under JNNURM. However, for to take necessary preparatory action for operationaliza-
completion of ongoing projects, Rs 32.50 crore has tion of the scheme to avail benefit from this financial
been provided for 2007–08. year. In this connection, to sensitize the State Govern-
ments and all stakeholders for implementation of
PILOT PROJECT ON SOLID WASTE MANAGEMENT the scheme in a time-bound manner, a National
NEAR AIRPORT IN FEW SELECTED CITIES Workshop was organized in Chennai on 20 Novem-
11.19 A Central sector scheme on solid waste manage- ber 2006 and the scheme was formally launched.
ment in 10 selected air field towns was approved in 2003 During 2006–07, Rs 50.00 crore has been provided
as 100% grant from the GoI towards capital cost and for the scheme. An amount of Rs 100 crore has been
was to be completed in three years. Subsequent to the provided to the Ministry of Urban Development for
completion of the project, the scheme was to be handed 2007–08 for PFDF. For the Eleventh Plan period, a pro-
over to the concerned ULBs for day-to-day O&M. While vision of Rs 2500 crore has been made.
eight projects, viz., Sirsa, Jodhpur, Pune, Gwalior,
Tezpur, Adampur, Dindigul, and Ambala are being ex- NATIONAL URBAN INFRASTRUCTURE FUND (NUIF)
ecuted by National Building Construction Corporation 11.22 The NUIF is proposed to be set up as a trust to
(NBCC), projects for Hindon and Bareilly are being provide source of funding for bankable projects/
executed by Uttar Pradesh Jal Nigam. The approved cost schemes pertaining to the ULBs. The commercial
banks are hesitant to lend to ULBs due to apparent tax, building plan approval, health programme, solid
lack of capacity of the ULBs to meet their debt service waste management, accounting system, etc., will be
obligations on the one hand and lack of expertise covered under the programme.
amongst financial institutions to lend for viable
urban infrastructure projects on the other. NUIF will JNNURM—AN INSTRUMENT OF CHANGE
serve as an SPV that will create necessary comfort level 11.26 Cities and towns have a vital role in India’s socio-
amongst financial institutions with respect to repay- economic transformation. The cities in India are serv-
ments by avoiding direct exposure of commercial ing as a nodal point for innovation and are playing a
banks to the ULBs. The process of consultation for vital role in the Global Market. Most cities and towns
setting up of NUIF is presently in the advanced stage. are severely stressed in terms of infrastructure and ser-
vice availability. In 2001, 50.3% of the urban house-
DEVELOPMENT OF SATELLITE CITIES/COUNTER holds had no piped water within their premises and
MAGNET CITIES 44% of them were devoid of sanitation facilities. About
11.23 Metros and mega cities, which have become the 25.7% of country’s urban population continues to be
centre of trade and commerce, have to cope with their below the poverty line in 2004–05. According to the
own problems along with unabated in-migration from 2001 Census, 14.12% of the urban population lives
small and medium towns and vast rural hinterland. in slums with a significant proportion of it without
These have to be planned beyond the municipal limits access to basic services.
and due importance may be given to integrated trans-
port and communication. The other settlements OVERVIEW OF THE MISSION
located in the vicinity of the mother city are to be 11.27 JNNURM rests on the postulate that cities make
developed as satellite/counter magnets to reduce and a meaningful contribution to India’s economic growth
to redistribute the population and population influx. and poverty reduction. This programme seeks to fulfil
To cope with the above problem, the government has the Millennium Development Goals, and is envisaged
proposed a new scheme for development of satellite to operate in a Mission mode by facilitating invest-
towns/counter magnet cities. This will help in the ments in the urban sector. It seeks to incentivize policy
development of metropolitan regions. Token provision and institutional reforms, leading to sustainable socio-
for the scheme has been made in the Budget of the economic growth, service delivery, and improved
Ministry of Urban Development for 2007–08. governance in the Mission cities. It also aims at devel-
oping appropriate enabling frameworks to enhance the
E-GOVERNANCE IN MUNICIPALITIES creditworthiness of the municipal bodies and integrate
11.24 The key objectives of the Mission are to intro- the poor with the service delivery systems.
duce e-governance in the municipalities to provide
single window services to the citizens, to increase STRATEGY OF THE MISSION
efficiency and productivity of the ULBs, to provide 11.28 The Mission seeks to achieve the objective of
timely and reliable management information, etc. integrated development of cities, for which the cities
are required to formulate a City Development Plan
11.25 The scheme envisages to cover all ULBs in Class (CDP), bringing out long-term vision for the cities
I cities (423 in total having population of one lakh and support their efforts through funding of project
or more) during 2007–08 to 2011–12. A total of 35 proposals. A CDP is anchored on the goal of JNNURM
cities with million plus population are proposed to in creating economically productive, efficient, equi-
be covered as part of JNNURM. However, a new CSS table, and responsive cities. The essential require-
Scheme for other cities and towns other than 35 cities ment of the Mission is implementation of urban
would wait for the present till the implementation is reforms, within the Mission period. On the basis of
watched in 35 cities as a part of JNNURM. Eight ser- the satisfactory completion of the above tasks, funding
vices relating to birth and death certificates, property support is provided in the form of ACA, ranging
from 35% to 90% of the project cost, based on the been small, with overdependence on the government
city category. The Mission also aims to leverage and funding. Poor credibility of implementing agencies is
incorporate private sector efficiencies in develop- also one of the concerned areas.
ment, management, implementation, and financing
of projects, through PPP arrangements, wherever 11.33 Successful implementation of reforms within
appropriate. the committed timeframe is critical to the success of
the Mission. The challenge is to facilitate the cities to
EXPECTED OUTCOMES OF JNNURM internalize the reforms. Simultaneously, the process of
• Financially sustainable cities for improved gover- reporting and monitoring progress of reforms needs
nance and service delivery. to be sustained throughout the Mission period. The
• Universal access to basic services in urban areas. experience of implementation of JNNURM shows that
• Transparency and accountability in governance. the following issues need to be addressed:
• Adoption of modern transparent budgeting,
accounting, and financial management systems. • Need for adequate attention to the priority sectors,
viz., water supply, sewerage, sanitation, storm
11.29 There is an increased application of e-gover- water drainage, etc., in the CDPs prepared under
nance in service delivery and internal operations. JNNURM. Undue focus is presently given to on-
road projects and flyovers.
OPERATIONAL ISSUES LINKED TO • Need for focus on recovery of O&M costs and
JNNURM PROCESS possibility of involving private sector through the
11.30 Sustaining momentum of the Mission by con- PPP mode in the CDPs.
tinuous engagement with all cities and at the same time • Need for synergy between the Ministries of Urban
ensuring wider ownership has been a major challenge Development and HUPA in the implementation of
while operationalizing the Mission. JNNURM. Both the ministries need to work in close
co-ordination and synergy.
11.31 The capacity of city-level agencies to absorb • Need to ensure improvement in urban governance
the investment support and delivery on reforms is a so that the ULBs/parastatal agencies become finan-
critical bottleneck. The Mission needs to calibrate cially sound. The Central and State agencies must
and pace its capacity-building efforts in a manner so ensure timely implementation of the agenda of
as to ensure that all Mission cities are able to reap the reforms.
benefits of the programme and meet its stated goals • Need to strengthen monitoring mechanism and
and objectives. ensuring that milestones for reforms are achieved
during the project period and not extended to the
11.32 Projects hitherto being implemented by city- Mission period.
level agencies have been very small in size compared
to those being taken up under JNNURM. The overall 11.34 As the programme is in the third year of imple-
institutional capacity and more specifically the project mentation, the programme needs to be evaluated by
implementation capacity is clearly inadequate to an independent agency so as to take timely appropri-
deal with such large projects. This calls for immediate ate remedial measures.
lateral expansion of human resources with appropri-
ate skills, backed up by good project management MEASURES TO STRENGTHEN JNNURM
systems. There is also a shortfall in the contracting PROCESSES
capacity in the private sector. Large/organized sector 11.35 Several workshops and seminars have been
players in infrastructure industry have not yet seriously organized at regional and State level, apart from day-
looked at municipal infrastructure because of uncer- to-day interactions to speed up the participation of
tainty in enabling environment. The project sizes have low performing States in the Mission.
11.36 The government is organizing a series of work- Force constituted under the programme has recom-
shops/seminars with the objective of dissemination of mended measures to synergize all financial resources
the Mission objectives among the elected representa- at city level and improve environment to access finance.
tives and municipal functionaries. These fora have been As a part of the recommendation, all the ULBs under
instrumental in enhancing citizen involvement and JNNURM are being rated on the basis of their finan-
improving technical capacities for project preparation cial capacities and credit worthiness.
and implementation by the ULBs/other city-level agen-
cies, in various cities and States. To enhance commu- 11.40 In order to strengthen the UIDSSMT, State
nity participation in the planning process and in Governments have been advised to get the CDP
various aspects of implementing JNNURM, the sub- prepared for the cities covered under UIDSSMT as a
Mission on urban infrastructure and governance has Vision Document. State-level Nodal Agencies (SLNAs)
created a Community Participation Fund. This is to should develop in-house capacity to advise and guide
enable the citizens to develop a sense of ownership the ULBs in preparing viable DPRs. The State Gov-
on community assets and take on responsibilities for ernments should ensure adequate budgetary provi-
community-based projects. To improve community sions in their Budget to meet State/ULBs’ share as
participation in the implementation of the Mission, stipulated in the guidelines. For monitoring and imple-
a Technical Advisory Group has been set up at the mentation of the project and reforms at the local level,
national level, which is to be further supported by simi- a Project Implementation and Monitoring Cell may
lar structures at the State and city levels. be established within the respective ULBs. SLNAs may
prepare a panel of consultants by following a trans-
11.37 The Mission is in the process of preparing a parent procedure for preparation of DPRs.
framework for capacity-building and up-scaling of all
related activities in order to bridge the capacity gap in PREPARATION AND DISSEMINATION OF BEST
implementation of projects and reforms. It is propos- PRACTICE DOCUMENTS
ing to conduct a rapid training programme for mu- 11.41 The best practices under the Mission are being
nicipal functionaries in key areas such as governance disseminated through the websites, workshops, and
and reforms, DPR preparation, and project prepara- seminars. Apart from this, the government has
tion. For fulfilling the long-term requirement of launched an initiative called Peer Experience and
human resource challenges in the ULBs, the govern- Reflective Learning (PEARL) to facilitate networking
ment is in the process of establishing a network of among JNNURM cities to encourage cross learning
regional institutions across the country, which will and knowledge sharing. The cities have organized
address training and capacity-building needs for the themselves in various groups/networks having simi-
States, cities, and other related institutions. lar socio-economic profile. The city networks have
selected a Knowledge Manager for the respective
11.38 Strengthening communication channels to groups to anchor partnerships within and outside
facilitate institutionalization and internalization of the networks for exchange of best practices in urban
reforms is a key to the success of the Mission. The governance and reforms.
government has also appointed independent agencies
for monitoring the implementation of the reforms. A ISSUES FOR FUTURE ACTIONS
quarterly progress reporting system for the cities and • Rapid economic growth will inevitably lead to an
States has been instituted under the Mission. Apart increase in urbanization as the cities provide
from this, an MIS has been developed for monitoring large economies of agglomeration for individual
projects and reforms. activity. The biggest constraint on rapid growth in
the years ahead will be the inadequacy of urban
11.39 To address the issues of credibility and finan- infrastructure and its poor quality compared
cial sustainability of the ULBs, Municipal Finance with global scenario. We have to strive for equity
Improvement Programme has been launched. A Task and inclusiveness in urban infrastructure so as to
ensure that the city-wide infrastructure systems get The projects identified for being financed during the
linked with service networks in slums and low in- Eleventh Plan involve a total cost of Rs 15000 crore.
come settlements. Some of these projects will be taken up in collabora-
• The main challenge would be to bring about tion with other stakeholders. Out of the total projected
planned urbanization for the country and creation cost of projects, it is expected that the loan compo-
of new growth centres around existing small and nent will be above Rs 11000 crore.
medium towns.
• Urban reforms may be made essential for eligibility NATIONAL URBAN INFORMATION SYSTEM (NUIS)
for assistance under all Urban Infrastructure 11.45 The major objective of the NUIS is to establish
Developments Schemes. a comprehensive information system in the ULBs
• Safe drinking water supply and sanitation facilities for planning, management, and decentralized gover-
are basic needs and are crucial for achieving the goal nance in the context of implementation of the
of ‘Health for All’. 74th CAA. The following activities have been under-
• JNNURM has the potential to transform infrastruc- taken:
ture and improve the civic amenities in selected
cities greatly. It, therefore, needs to be implemented • Mapping at 1:10000 scale from satellite images,
with vigour. 1:2000 scale from aerial photos, and 1:1000 scale
utility mapping for 24 towns being taken up by
DETAILS OF SCHEMES/PROGRAMMES FOR Survey of India.
THE ELEVENTH PLAN • Establishment of NUIS cells in State nodal agencies.
• Setting up of National Urban Databank and Indi-
NATIONAL CAPITAL REGION PLANNING BOARD cator in each State nodal agency.
(NCRPB) • Capacity building among town planners for use of
11.42 The key rationale for constituting an NCRPB in modern automated methods.
1985 was to reduce the rate of in-migration into the
National Capital as well as to develop the region at a 11.46 So far, implementation of NUIS scheme has
level comparable to the best in the world. Keeping been slow and, therefore, all stakeholders of the scheme
in view with its objectives, the Board has prepared need to speed up the implementation of the scheme.
regional plans, 2001 and 2021, along with complemen- States and UTs need to release their share for purchase
tary functional plans related to the key elements of of hardware and software for the NUIS cells in State
infrastructure. nodal agencies and ULBs. The capacity building
component under NUIS scheme has trained 160
11.43 In order to implement major thrust areas of personnel. A total of 22 programmes are proposed
the regional plans, the Board is also arranging for and to be conducted to train 440 officers during 2007–08.
overseeing the financing of selected development An outlay of Rs 24 crore and Rs 9 crore has been
projects in NCR through Central grants and contri- allocated in the Annual Plan 2006–07 and 2007–08
bution from the Government of National Capital respectively.
Territory of Delhi, by recycling loan repayments
and internal accruals. To supplement its resources, COMMONWEALTH GAMES
the Board has also raised resources from the capital 11.47 Delhi Development Authority has been assigned
market in the form of bonds in the past. the task of development of Games Village, Competi-
tion Venues for sports events, viz., Table Tennis,
11.44 The Government of Delhi in its Plan document Badminton, Squash, Billiards, Snookers, etc. for the
has desired that NCRPB should contribute significantly forthcoming Commonwealth Games, 2010. To develop
in the development process of Delhi by initiating a requisite facility at sports complexes in Delhi, a provi-
number of inter-state projects in the NCR in the areas sion of Rs 80 crore has been made to the Ministry of
of power generation, water supply, sanitation, etc. Urban Development for 2007–08.
URBAN BASIC SERVICES and sewage treatment and its reuse for non-potable
purposes and industries are also limited and need
STATUS OF URBAN BASIC SERVICES attention. Moreover, cattle menace, open defecation,
11.48 The quality of water and its distribution are dumping of solid wastes along roadsides, open dump-
areas that require special attention in the Eleventh Plan. ing of medical and hazardous wastes, etc., are com-
Table 11.1 gives the status of city/town-wise access to monly sighted (see Box 11.3 below). Concerted efforts
drinking water. Sewerage facilities are almost absent are required to fill these gaps and make cities clean,
in a large number of unauthorized and resettlement healthy, and livable.
colonies and slum and squatter settlements. At certain
places, cost incurred by the poor to fetch water is much URBAN WATER SUPPLY
higher than for valid connection holders. Waste water 11.49 To achieve 100% coverage of population
with urban water supply by the end of the Eleventh
TABLE 11.1 Five Year Plan, the following steps need to be taken:
City/Town-wise Average Access to Drinking Water
City/Towns (Population) Average Access to • To bring out State Ground Water Legislation based
Drinking Water on the Model Ground Water Legislation brought
(%) out by the CGWB.
Class I cities (100000 and above) 73 • Keeping in view the NWP, the States should formu-
Class II cities (50000–99999) 63 late State Water Policy to meet drinking water needs.
Class III cities (20000–49999) 61 • Under JNNURM, special attention should be given
Other cities/towns (<20000) 58 to cities and towns which are affected by water con-
Source: Ministry of Urban Development, GoI. tamination due to presence of chemicals such as iron
Box 11.3
Status of Urban Services
Water Supply
• As per 54th round of NSS, 70% of urban households reported being served by tap and 21% by tubewell or hand
pump.
• 66% of urban households reported having their principal source of water within their premises while 32% had it within
0.2 km.
• 41% had sole access to their principal source of drinking water and 59% were sharing a public source.
Sewerage
• 54th round of NSS reported 26% of households having no latrines, 35% using septic tank, and 22% using sewerage
system.
• In urban areas sewerage connections varied from 48% to 70%.
• According to Central Pollution Control Board, the waste water generated in 300 Class I cities is about 15800 million litres
per day while the treatment facilities exist for hardly 3750 million litres per day.
Solid Waste
• It is estimated that about 115000 metric tonnes of municipal solid waste is generated daily in the country.
• Per capita waste generation in cities varies between 0.2–0.6 kg per day and it is increasing by 1.3% per annum. With the
growth of urban population, the increase in solid waste is estimated at 5%.
• The solid waste generated by the million plus cities varies from 1200 metric tpd in cities like Ahmedabad and Pune to a
maximum of 5000–5500 metric tpd in cities like Delhi and Mumbai.
• The per capita solid waste generation varies from 300 gm in Bangalore to 500–550 gm in Mumbai and Delhi.
• Out of total waste generated in the million plus cities, hardly 30% is treated before disposal.
and fluoride. Water Quality Testing Laboratories waste management the States should encourage the
may be set up in all cities and towns and existing PPP mode projects.
labs be strengthened to check water-borne diseases.
• Suitable strategy should be evolved by the States/ 11.52 With rapid industrialization, growth of services
ULBs for meeting O&M costs. Metering of water sector, and rise in incomes, the rate of waste genera-
may be made mandatory for generating sufficient tion has gone up manifold. The following steps need
revenues. Telescopic water tariff/user charges should to be taken for its management:
be formulated and levied to discourage excessive use
of water. • Cities and towns should be provided with appro-
• Need to check the leakages and unaccounted water, priate solid waste management facilities with
particularly in cities where it is as high as 50%. emphasis on use of low-energy consuming tech-
Such losses should be minimized or eliminated nologies for processing and treatment of munici-
through intensive leak detection and rectification pal solid waste.
programme. • Compulsory production of compost from solid
• The State Governments/ULBs should take up waste and application of this organic manure
reform measures under JNNURM for water and in agriculture and horticulture to improve soil
energy audit, reuse and recycling, levy of realistic fertility.
user charges, efficient water use and its equitable • Implementation of the recommendations of
distribution, rain water harvesting, commercial Report of the Inter-Ministerial Task Force on the
accounting systems, consumer orientation, cost ‘Integrated Plant Nutrient Management Using City
recovery, artificial recharge of groundwater, etc. Compost’ in managing the city garbage in a
• To meet the requirement of funds, efforts should sustainable manner.
be made to step up the quantum of funds through • Segregation and storage of waste, door-to-door
institutional financing, foreign direct investment, collection, and transportation along with appropri-
assistance from bilateral and multi-lateral agencies, ate plant design should be enforced as per Munici-
newly launched Pooled Finance Development pal Solid Waste Management and Handling Rules,
Scheme, tax-free municipal bonds, PPPs, Member 2000. NGOs should be encouraged to provide orga-
of Parliament Local Area Development Programme nizational support and identity to the ragpickers,
(MPLAD) funds, etc. who play an important role in recycling of the waste.
• Adequate land should be earmarked/allotted at
MANAGEMENT OF MUNICIPAL SOLID WASTE the planning stage itself for setting up of sanitary
11.50 On an average, the collection efficiency of solid land fills, compost plants, and other processing units
waste ranges between 70% and 90% in metro cities, including provision for future expansion.
whereas in several smaller cities it is below 50%. The
ULBs spend Rs 500–1500 per tonne on solid waste SEWERAGE, LOW-COST SANITATION,
collection, transportation, treatment, and disposal. STORM WATER DRAINAGE
During the Eleventh Five Year Plan, emphasis would 11.53 About 63% of the urban population has access
be laid on scientific and safe disposal of waste. Waste to sewerage and sanitation facilities as on 31 March
recycle, reuse, resource recovery, adoption of advanced 2004. This includes both underground as well as sani-
technological measures for effective and economical tation through septic tanks. The access to underground
disposal will have to be followed vigorously. sewerage facilities is very low, that is below 30% in
many States, viz., Rajasthan, Orissa, Chhattisgarh,
11.51 Private parties have shown encouraging re- Madhya Pradesh, Andhra Pradesh, and West Bengal.
sponse and they need to be increasingly involved. With According to the MTA of the Tenth Five Year Plan,
the application of modern technology, the waste can nearly 46% of urban households have water toilets,
be converted into profitable products such as organic but only 36% of the urban households are connected
pellets, construction material, etc. To deal with the solid to the public sewerage system.
11.54 Underground network of sewerage has devel- government is assisting the ULBs and the State Gov-
oped to a considerable extent in urbanized States where ernments through various schemes and special Cen-
cities have developed in a planned manner, viz., Delhi, tral assistance (SCA). Under JNNURM, water supply
Chandigarh, Greater Noida, etc. However, within the and sanitation have been accorded highest priority
cities, large number of unauthorized colonies, resettle- among the eligible components and almost 40% of the
ment colonies, slums, and squatter settlements are outlay would be spent on water supply and sanitation
often deprived of underground sewerage facilities. sector leaving a gap of Rs 89237 crore.
11.55 To achieve 100% population coverage for TABLE 11.2
sewerage, sewage treatment, and low-cost sanitation Funds Requirement—Urban Basic Services
(Rs in Crore)
facilities in urban areas during the Eleventh Plan, the
following steps need to be taken: S. Sub-Sector Estimated
No. Amount
• Install more plants to treat, recycle, and reuse sewage. 1. Urban water supply 53666
• Industrial and commercial establishments must 2. Urban sewerage and sewage treatment 53168
reuse and recycle treated sewage to reduce fresh 3. Urban drainage 20173
4. Solid waste management 2212
water demand.
5. MIS 8
• The ULBs should amend their by-laws to make it 6. R&D and PHE training 10
mandatory for all residents to connect their toilets
Total 129237
to the existing sewerage system.
• Fringe areas of cities and colonies of economically Source: Ministry of Urban Development, GoI.
weaker sections and slum dwellers should be cov- For bridging the gap, the following possible sources are
ered with low-cost sanitation facilities, either on identified. Table 11.3 gives the proposed flow of funds.
individual household basis or community basis
with ‘pay and use system’ with adequate mainte- TABLE 11.3
nance arrangements. Necessary penal clause should Proposed Flow of Funds
be enforced effectively to stop open defecation prac- Source of Funding Amount
tice as well as indiscriminate throwing of garbage/ (in Rs Crore)
litter in public places.
Central sector outlay 70000*
• Targeted subsidy may be given to urban poor for State sector outlay 35000
taking water supply/sewerage house service connec- Institutional financing 10000
tions, metering, and construction of toilets. Assistance from external support agencies 10000
• Comprehensive storm water drainage system should FDI and private sector 4237
be developed in all cities and towns in order to avoid Total 129237
water logging during monsoon.
Note: * The actual allocation provided for JNNURM is Rs 50000
crore during 2005–12 out of which the amount available for
INVESTMENT NEEDS FOR URBAN WATER SUPPLY Urban Water Supply, Sewerage, Solid Waste Management is ex-
AND SANITATION, SEWERAGE, DRAINAGE, pected to be in the range of Rs 15000 crore. The shortfall will need
AND SOLID WASTE MANAGEMENT SECTORS to be met by other sources of finance if the objective of covering
DURING THE ELEVENTH FIVE YEAR PLAN 100% population with Water Supply and Sanitation facilities is to
11.56 The total fund requirement for the implemen- be met during the Eleventh Plan.
Source: Ministry of Urban Development, GoI.
tation of the Eleventh Five Year Plan schemes in re-
spect of urban water supply, sewerage and sanitation,
drainage, and solid waste management is estimated as
Central Sector Outlay
11.58 The Central sector outlay may be stepped up
given in Table 11.2.
from the present Rs 50000 crore to around Rs 70000
AVAILABILITY OF FUNDS crore under the ongoing Central programme of
11.57 To improve the infrastructure relating to JNNURM so that great thrust could be given to water
water supply and sanitation in the urban centres, the supply and sanitation sector in the urban areas.
State Sector Outlay 11.61 The incidence of urban poverty as well as num-
• Likewise, the State sector outlay which stood at ber of the urban poor has increased in Orissa and
Rs 18749 crore during the Tenth Plan may be Rajasthan over the 1993–94 to 2004–05 period.
stepped up to around Rs 35000 crore. In contrast, both the incidence of urban poverty
and the number of the urban poor have declined
Institutional Financing
• Funds may be mobilized through national finan- TABLE 11.4
cial institutions such as LIC, HUDCO, IL&FS, etc., Comparison of Poverty Estimates Based on
Uniform Recall Period
to the tune of Rs 10000 crore.
(Percentage of the Total Population)
Additional Assistance from External 1993–94 2004–05
Support Agencies (ESA) Rural 37.3 28.3
• Funds may be mobilized from external funding
Urban 32.4 25.7
agencies viz. World Bank, JBIC, ADB, and other
Total 36.0 27.5
agencies to the tune of about Rs 10000 crore.
Source: Planning Commission.
FDI and Private Sector
TABLE 11.5
• In addition, foreign direct investment and private
Comparison of Poverty Estimates Based on
sector funds up to Rs 4237 crore may be mobilized Mixed Recall Period
to support the sector’s activities. (Percentage of the Total Population)
PROVISION OF BASIC SERVICES TO THE URBAN 1999–2000 2004–05

POOR AT THEIR WORKPLACE Rural 27.1 21.8
11.59 In all stages of planning, formulation, and Urban 23.64 21.7
execution of water and sanitation projects, poor and Total 26.1 21.8
disadvantaged sections of society and SC/ST popula- Source: Planning Commission.
tion should be included and their needs accorded top
priority. The programmes of other Central Ministries TABLE 11.6
such as SC/ST Plans and Tribal Welfare Plan may Number of Persons below Poverty Line in
be suitably dovetailed with JNNURM. CDPs should Urban and Rural Areas
give special attention to the problems and needs of (Lakh)
these vulnerable sections of society. Year Urban Rural Total
Mixed Recall Period
URBAN POVERTY ALLEVIATION AND 1973–74 600.46 2612.90 3213.36
SLUM DEVELOPMENT 1977–78 646.48 2642.47 3288.95
11.60 The percentage of BPL population in the urban 1983 709.40 2519.57 3228.97
areas in India has declined from 32.3% in 1993–94 to 1987–88 751.69 2318.79 3070.49
25.7% in 2004–05 (based on uniform recall period). 1999–2000 670.07 1932.43 2602.50
The NSSO 61st Round shows that urban poverty has 2004–05 682.00 1702.99 2384.99
registered a decline in percentage terms; however, it has
increased in absolute terms by 4.4 million persons. The Uniform Recall Period
fact is that the number of urban poor is rising continu- 1973–74 600.46 2612.90 3213.36
ously since 1973–74 as per the uniform recall period. 1977–78 646.48 2642.47 3288.95
A comparison of poverty estimates based on uniform 1983 709.40 2519.57 3228.97
recall period and mixed recall period is given in Tables 1987–88 751.69 2318.79 3070.49
11.4 and 11.5, respectively. The number of persons 1999–2000 763.37 2440.31 3203.68
below poverty line in the urban and rural areas is given 2004–05 807.96 2209.24 3017.20
in Table 11.6. Source: Planning Commission.
in the States of Gujarat, Kerala, Punjab, Tamil Nadu, workers fall in the category of the urban poor. They
and West Bengal during the same period. In other play a role in wealth creation, development of infra-
States, there has been a decline in the incidence of structure, and providing a quality of life to the urban-
poverty but not in their total number (Boxes 11.4, ites. However, they have themselves been denied shelter,
11.5, 11.6). basic urban amenities, healthy urban environment, and
a dignified life.
11.62 A large number of workers engaged in the
urban economy as self-employed in the informal 11.63 In recent decades, the gap between the urban
sector, regular low wage/salaried workers, and casual rich and poor has widened considerably. The Eleventh
Plan aspires to empower the persons engaged in the
informal sector living in urban areas by providing
Box 11.4
training to them to have better skills, higher produc-
Objectives for Urban Poverty Alleviation
tivity, and higher incomes on the one hand and a
The Eleventh Plan has the following objectives for the greater voice in decision-making by implementing
urban poor: the 74th CAA on the other hand. In this manner,
an effort would be made during the Eleventh Plan to
• To provide them affordable shelter and decent living focus the spotlight on ‘inclusive growth’ in the urban
and working conditions.
areas.
• To make adequate provision of land for the poor in
the Master Plan itself.
• To help in developing self-employment enterprises and SLUMS AND SLUM REHABILITATION
job creation for the wage employment earners. 11.64 As per estimates, the slum population in 2001
• To protect the economic interest and safety of women was 61.82 million out of which the reported slum
and other vulnerable sections of our society. population in the 640 towns and cities having popula-
tion of 50000 and above is 42.58 million. The
total urban population of these 640 towns is 184.35
million. Data pertaining to slum population, as per
Box 11.5
Slums the 2001 Census and the availability of housing
and other basic amenities to them, are given in Tables
Slums are housing clusters having insufficient facilities of 11.12 and 11.13.
hygiene, toilet, drinking water, sanitation, etc.
Housing for Slum Dwellers
11.65 Registrar General of India has for the first time
Box 11.6 collected slum data in the 2001 Census for cities
Integrated Slum Development having urban population of 50000 and more. Box
11.7 provides the gist of slum population data in the
Some of the measures that are required to be pursued and
strengthened further for integrated slum development are:
country.
• Creating and updating database on slums. Box 11.7

• City-wise perspective and integrated slum development Spread of Slums
plans.
• Augmenting and facilitating access to services for slum • 640 towns spread over 26 States/UTs have reported ex-
dwellers. istence of slums.
• Granting tenure security to slum dwellers. • 42.6 million people consisting of 8.2 million house-
• Insitu upgradation and resettlement options for slum holds reside in slums of these towns.
improvement. • It is a coincidence that both Census of India in 2001
• Using land as a resource for housing and shelter devel- and NSSO in 2002 found that every seventh person in
opment for slum dwellers. urban India is a slum dweller.
REVIEW OF SCHEMES Policy needs to be formulated so as to evolve a holistic

11.66 A number of social housing schemes for poor— approach towards slum improvement.
as indicated in the Table 11.7—have been undertaken
by the GoI over the last two decades: 11.69 To promote integrated city development and to
enable the people living in slums to gain access to
TABLE 11.7 basic services, a number of schemes and programmes
Social Housing Schemes have been launched from time to time, for example
S.No. Name of the Scheme Started in Environmental Improvement of Urban Slums, Na-
1. Indira Awas Yojana 1990
tional Slum Development Programme (NSDP),
2. EWS Housing Scheme for beedi workers 1991 Integrated Low Cost Sanitation Scheme (ILCS), etc.
and hamals
3. National Slum Development Programme 1996 PROGRAMMES AND SCHEMES OF URBAN
4. A two million Housing Programme for EWS/LIG 1998
POVERTY ALLEVIATION IN THE ELEVENTH PLAN
5. PM Gramin Awas Yojana 2000
6. Valmiki Ambedkar Awas Yojana (VAMBAY) 2001
7. JNNURM (BSUP and IHSDP) 2005 SWARNA JAYANTI SHAHRI ROZGAR YOJANA (SJSRY)
11.70 This CSS, launched in 1997, was meant to pro-
Source: Ministry of Housing and Urban Poverty Alleviation
vide gainful employment to the urban unemployed/
(MoHUPA), GoI.
under-unemployed (below the urban poverty line)
11.67 These and other policy frameworks and subse- through:
quent development of programmes and schemes have
yielded fairly positive results in the area of housing • encouraging setting up of self-employment ventures;
and human settlements. There has been a quantum • provision of wage employment.
jump in the supply of serviced land, habitable shelter,
and related infrastructure, as detailed in the Box 11.8. 11.71 It relied on creation of suitable community
structures and delivery of inputs through the ULBs.
11.68 Effective measures are needed to stop the mush- In the Tenth Plan, there was a target of assisting four
rooming of new slums. Providing affordable urban lakh urban poor in setting up individual/group micro
services to slum dwellers and granting them tenure enterprises and imparting skill training to five lakh
rights will be the focus of the Eleventh Plan. State gov- urban poor.
ernments have to ensure that the ULBs earmark a part
of their budget for the urban poor. Urban poverty cells 11.72 Under self-employment component of SJSRY,
have already been created at district level. Their func- 891679 beneficiaries have been assisted by now and
tioning has to be made effective. A National Slum 934649 persons were provided various types of skill
Box 11.8
Housing Construction and Ownership
• Under the Valmiki Ambedkar Awas Yojana (VAMBAY) of the GoI, a subsidy of Rs 932.56 crore has been released for
construction of 459728 dwelling units and 65580 toilet seats since the inception of the scheme up to 2005–06.
• Under the NSDP, a total amount of Rs 3089.64 crore has been released to the States/UTs covering 436.28 lakh urban poor
since inception of the scheme up to 2005–06.
• The period 1991 to 2001 witnessed a net addition of 19.52 million dwelling units in the urban housing stock, amounting
to average annual construction of 1.95 million houses.
• The share of ownership housing in urban areas has increased from 63% in 1991 to 67% in 2001 (Census 2001).
• It is important to note that households having one-room accommodation declined significantly in urban areas from
39.55% to 35.1% during the period 1991–2001. This is a result of upward shift of accommodation and accelerated supply
of housing stock.
trainings. So far, 52701 Development of Women and surveys which will assist micro entrepreneurs to
Children in Urban Areas (DWCUA) groups have locate niche segments where there is potential
been formed and 198314 women beneficiaries have demand for their products and services.
been assisted under this scheme for setting up of group • Clusters of micro production units will be devel-
enterprises. A total of 177508 Thrift and Credit Soci- oped in keeping with the factors of localization per-
eties (T&CS) have also been formed under SJSRY. The taining to traditional skills and in terms of towns
number of beneficiaries covered under the Commu- renowned for given products.
nity Structure Component of SJSRY is 337.40 lakh and • Appropriate or intermediate technology inputs will
the number of man-days of work generated under the be used to strengthen the technological base of
wage employment component of SJSRY is 583.06 lakh. selected clusters in terms of common facilities
centres providing critical machinery/equipment
11.73 A comprehensive evaluation of SJSRY scheme required for common use as well as ensuring sup-
on an all-India basis was carried out in 2005–06 by ply of quality raw materials at reasonable prices.
Human Settlement and Management Institute. The These common facilities centres would be run by
main findings of the evaluation are: (i) the pro-gramme associations of micro entrepreneurs themselves
is working well in some of the States; (ii) most of the related to the selected economic activity.
beneficiaries of training are below 30 years; (iii) women • High-quality Small Enterprise Advisory Services
groups market their products by themselves except in will be provided to the micro entrepreneurs.
the eastern and North Eastern States; (iv) the forma- • Resource institutions will be selected all over the
tion of DWCUA groups has had a positive impact on country for providing upgraded technical skills
women; (v) T&CS are very active in promoting small combined with certification.
savings and resolving disputes; (vi) non-achievement • Self-employment efforts will be buttressed by
of physical targets in some States is due to inadequate encouraging T&CS at the community level.
skill training, wrong choice of projects, lack of public- • Micro entrepreneurs will be encouraged to develop
ity, etc. (see Box 11.9). trade-based organizations.
• The mission approach of the ‘Kudumbshree’ model
11.74 SJSRY is being revised in terms of the following of Kerala and other best practices in different parts
features: of the country will be adopted for suitable applica-
tion under SJSRY.
Self-employment Component • Design and development services from IITs and
• The self-employment component of the scheme will other institutions will be sought for development
be made more market driven in terms of market of mobile vending outlets.
• An integrated approach will be adopted with
special attention to backward and forward linkages
Box 11.9
New Focus in SJSRY under the aegis of a designated Institute and a
specific Task Force.
In its present form, the scheme has not succeeded in pro-
viding effective employment opportunities to the urban 11.75 Wage-employment Component
poor. It is now proposed to bring new focus into the
• High-quality training for proficiency in technical
scheme in keeping with the fact that urban areas have
developed new skill requirements. Towards this end, services will be organized with leading institutions
43 new trades have been identified in which it is proposed preparing detailed training modules for specific
to build capacity by: trades.
• Training in a wide variety of trades such as con-
• Skill development—PPP mode. struction, beauty and skincare, hair styling, hospi-
• SHGs. tality, tourist guides, security, transport, and
• Self-employment skills plus facilitation of credit for secretarial trades will be encouraged along with
setting up self-employment.
placement services.
• Special emphasis will be laid on construction of and service sectors in response to changing global,
community assets in low-income neighbourhoods national, and local imperatives and opportunities. This
with strong involvement and participation of local will lead to reduction in unemployment rate among
communities. the urban poor, especially women, and will enhance
their productivity and real wages making the economic
11.76 Structural and Organizational growth inclusive.
Component
• Strengthening the delivery mechanism by improv- 11.79 URBAN STATISTICS FOR HR ASSESSMENT
ing the competency level and outreach of the Pro- SCHEME
gramme Management Units at the State level and Aims at the development and maintenance of a na-
Programme Implementation Agencies (PIAs) at the tional database, MIS, and knowledge repository on
ULB level. urban poverty, slums, housing, construction, and other
• There is need to earmark 25% of the budget for the urbanization-related statistics. Its key objective is to
urban poor in municipal budgets. support the government with an information base and
• There is need for convergence of services to the knowledge inputs for planning, policy-making, project
urban poor with special reference to health, educa- design, formulation, implementation, monitoring,
tion, and social security. assessment, and evaluation, particularly in the context
• The National Building Organization (NBO) needs of programmes relating to urban poverty, slums, and
to be strengthened for providing statistical and housing. The scheme was earlier known as MIS on
monitoring inputs for effective implementation of Housing Data, Research and Survey.
the revised SJSRY.
• Suitable networking with the UNDP-funded 11.80 FUTURE APPROACH/STRATEGIES
National Strategy for the Urban Poor Project as • There is need to address the issue of urban poverty
well as UN and other multilateral/bilateral projects alleviation in a systematic, scientific, and time-
is required for focused thrust on capacity building bound manner by adopting the Mission approach
and innovative and experimental pilot projects. as is being done in Kerala through the ‘Kudumbshree’
model. The approach has to be target-oriented
11.77 Given the fact that 25.7% of the urban popula- with specific focus on primary issues such as skill
tion as per uniform recall period lives below the upgradation, entrepreneurship development, wage
poverty line, a concerted effort need be made during employment, etc.
the Eleventh Plan for creation of at least 30 million • Skill development has to be correlated to the de-
additional jobs in the urban areas. The outlay for alle- mands of industry and service sector in and around
viation of urban poverty during the Eleventh Plan the city. For this purpose, periodic labour market
needs to be suitably enhanced. The revised SJSRY will surveys have to be carried out in collaboration with
be market-led combined with an integrated provision the private sector by professionally competent
of backward and forward linkages. organizations/NGOs so as to devise appropriate
training modules for building skills in the relevant
11.78 The Ministry of HUPA also proposes to launch disciplines, where the demand exists or is projected.
a scheme for the ‘Skill Training for Employment Pro- This exercise is likely to lead to a pool of human
motion amongst the Urban Poor’ during the Eleventh capital which can be appropriately utilized in the
Five Year Plan as a part of the National Skill Develop- contemporary labour market.
ment Mission specially targeting the urban poor in • The 74th CAA envisages that the functions of ur-
the development of their skills to enable them access ban poverty alleviation and improvement of slums
market-based employment opportunities or undertake and their upgradation, including the provisioning
self-employment to improve their living conditions of urban basic amenities to the poor, are among
and overcome poverty. This will make available skilled the key functions of the municipalities. Therefore,
and semi-skilled manpower needed by the industry the ULBs have to compulsorily make appropriate
provisions in their budget. ULBs have to follow a

Box 11.10
convergence approach in formulating service deliv- Housing Stock
ery to the urban poor by optimum utilization of
both financial and manpower resources available • Less than one-third of India’s people live in cities and
in various Central and State sector schemes and towns.
programmes. • These areas generate over two-thirds of the country’s
• Any urban poverty alleviation programme without GDP and account for 90% of government revenues.
adequate manpower equipped with the capability, • As per CSO estimates, housing sector’s contribution
to GDP in the year 2003–04 was 4.5% (3.13% for
capacity, and sensitivity to effectively implement
urban areas) at current price.
such social sector programmes will not succeed.
• Housing stock in 2001 was 50.95 million (for 55.8
Therefore, it is absolutely necessary for Urban Pov- million urban households).
erty Alleviation Cells at the ULB/district/State level
to have trained and dedicated manpower.
• City-specific urban poverty reduction plans need 11.82 The National Urban Housing and Habitat Policy
to be prepared by the ULBs and fund release has to provides the basic framework for achieving the objec-
be demand driven. tive of ‘shelter for all’. The policy was evolved in 1998
• Although the urban poor is the most vulnerable with the long-term goal of eradicating houselessness,
section of society, the delivery of health services is improving the housing conditions of the inadequately
almost negligible to them. Therefore, there is need housed, and providing a minimum level of basic ser-
to work out a comprehensive health and accident vices and amenities to all. It was formulated to address
insurance plan/scheme for the entire urban poor as the issues of sustainable development, infrastructure
a special package to resolve their health-related is- development, and for strong PPPs for shelter delivery
sues. There is also need to develop a social security with the objective of creating surpluses in housing
network for this most vulnerable section, specially stock and facilitating construction of two million
the single women, widows, aged, disabled, weaker, dwelling units each year in pursuance of the National
and minority sections. Agenda for Governance. However, the housing sector
has witnessed several changes since then. The 1998
URBAN HOUSING National Housing Policy has been replaced by a
11.81 Role of Housing: Housing, besides being a very National Habitat and Housing Policy, 2007 with land
basic requirement for the urban settlers, also holds the and the development of civic amenities to make land
key to accelerate the pace of development. Status of habitable as its two critical elements.
housing stock and basic amenities are provided in
Table 11.13. Investments in housing, like any other 11.83 In order to improve the quality of life in urban
industry, have a multiplier effect on income and em- areas, it is of critical significance that the housing stock
ployment. It is estimated that the overall employment is improved through urban renewal, in situ slum im-
generation in the economy due to additional invest- provement, and development of new housing stock in
ment in the housing/construction sector is eight times existing cities as well as new townships.
of the direct employment (IIM-Ahmedabad Study
2005). Construction sector employment is growing at Magnitude of Housing Need
the rate of 7% per annum. Housing provides oppor- 11.84 Considerable efforts were made during the
tunities for home-based economic activities. Housing Tenth Plan to enlarge the resource base and initiate
also has a direct impact on the steel and cement, innovative institutional mechanisms to augment hous-
marble/ceramic tiles, electrical wiring, PVC pipes, ing delivery in urban areas. Focused efforts were also
and various types of fittings industry, which make initiated to cover the poor and vulnerable groups of
a significant contribution to the national economy. society to enable them to access basic shelter related
Contribution of the housing industry to the GDP is services. Fiscal concessions coupled with legislative
summarized in the Box 11.10. measures were also initiated to encourage increased
investments in housing by individuals and corporates. conversion from one use to another is cost effective
However, despite many policy measures and initiatives, and efficient. Computerization of land records and
the coverage of urban poor with these intended data and e-governance should also constitute impor-
benefits has not been achieved to the desired extent. tant elements of the urban land policy.
Pressure on urban land has also been increasing due
to market forces supported by upward trend in eco- National Land Policy
nomic growth (see Box 11.11 below). 11.87 We have to evolve a National Land Policy which
will allow both public and private developers to le-
Box 11.11 gally purchase land for conversion into urban habitats
Housing Shortage and Requirement and townships through transparent rules and regula-
tions. Inadequate availability of serviced land in the
• According to the report of the Technical Group on
estimation of housing shortage constituted in the urban areas is a major constraining factor in taking
context of formulation of the Eleventh Five-Year up housing projects for the poor.
Plan, housing shortage is estimated to be around 24.71
million. About 99% of such households are from 11.88 In the process of spatially delimiting the spe-
EWS and low income groups (LIG). cific areas of urban extensions of existing towns and
• During the Eleventh Plan period, total housing require- the areas for new townships, care needs to be taken
ment, including the backlog, is estimated at 26.53 that as far as possible, prime agricultural land is not
million.
utilized but more emphasis is laid on using degraded
land for urbanization. Even today, the country is
Land Availability, Land Tenure, and importing certain basic food items from time to time.
Land Reforms Further, each State/UT which acquires land must put
11.85 Access to land and legal security of tenure are into place a suitable resettlement and rehabilitation
strategic prerequisites for the provision of adequate policy for the displaced rural families while develop-
shelter for all and for the development of sustainable ing urban extensions or new townships.
human settlements affecting both urban and rural
areas. The present policy of the Central Government 11.89 Care also needs to be taken that rivers and
lays stress on an enabling approach. It is for the State their flood plains, other water bodies, and natural
Governments to bring in the required institutional drainage systems are not disturbed during the
reforms and legislative measures to augment housing process of urbanization. Moreover, it is also essential
both by State agencies and the private sector. to enhance the green lungs of cities as well as develop
green belts around urban settlements with a view
11.86 While recognizing the existence of different to stemming indiscriminate urban sprawl. Cities
national laws and/or systems of land tenure, govern- and towns should invariably be surrounded by a
ments at the appropriate levels, including local authori- rural hinterland so that the ecology of the sub-region
ties, have to strive to remove all possible obstacles that is preserved. Access to micro finance has a direct
may hamper equitable access to land and ensure that correlation with the land title. Therefore, the State
equal rights of women and men related to land and Governments need to facilitate security of land tenure
property are protected under the law. The failure to for the urban poor. The title has to be mortgagable
adopt, at all levels, appropriate rural and urban land to access credit.
policies and land management practices remains a
primary cause of inequity and poverty. Urban plan- Investment Required
ning tools including master planning, zoning, and 11.90 For estimating the investment requirements
regulations are not enough to make land available for the Eleventh Plan, the Working Group on Urban
in pace with the rapid urbanization, resulting in Housing made different assumptions on unit cost of
insufficient land supply and increase in land prices. construction of houses in million plus cities and other
It is important to have flexible land policy wherein urban areas (see Box 11.12 below).
11.91 During the Eleventh Five Year Plan, integrated families and also through co-operatives as well as pri-
efforts have to be made by the Central and State/UT vate developers. In this context, it is pertinent to note
governments to create an integrated and holistic that the RBI requires commercial banks to lend 3% of
approach on human settlements which adequately the incremental deposits of the commercial banks to
address issues of land, finance, legal, and regulatory be deployed to priority sector lending including financ-
framework, technology support, and PPP. However, ing housing by individuals and others including
it has to be understood that there can be no one solu- co-operatives and private sector. Besides, RBI also reck-
tion and various options and initiatives would be ons investments made by banks in the bonds issued
needed based on national and local priorities. by HUDCO under priority sector lending. Box 11.3
provides some details of financing of housing loans.
Housing Market
11.92 The government has to create an enabling 11.94 HUDCO’s housing portfolio covers a wide
framework for a well-functioning housing market. range of target groups spread all over the country both
Flexible instruments for the regulation of housing in urban and rural areas. During the Eleventh Plan
markets, including the rental market, taking into period, HUDCO proposes to extend a large quantum
account the special needs of vulnerable groups need of assistance for supporting the housing and urban
to be developed. development requirements both in urban and rural
areas. The proposals envisage a total sanction of
Housing Finance Rs 74596 crore during the Eleventh Plan period for
11.93 With the introduction of reforms in the bank- both its housing and urban development programmes.
ing sector, considerable improvement has been made Of this, an amount of Rs 14919 crore has been tenta-
in enlarging access to finance for housing by individual tively identified for its housing operations.
FLOW OF FUNDS FOR HOUSING

Box 11.12 11.95 In view of the current economic and monetary
Investment Requirement scenario, it is expected that the housing finance
The total investment requirement for meeting the hous- disbursals by banks, HFCs, and co-operative sector
ing requirement would be of the order of Rs 361318.10 institutions would grow at a rate of about 15% per
crore consisting of Rs 147195 crore required for mitigat- annum during the Eleventh Plan period. Taking
ing housing shortage at the beginning of the Eleventh Plan this into account, it is estimated that the flow of credit
and Rs 214123.10 crore for new additions to be made
disbursal from these institutions would be about
during the Eleventh Plan period (this includes pucca,
upgradation of semi-pucca, and kutcha housing units). Rs 7.75 lakh crore (gross flow of funds) during
2007–12. These projected fund flow figures include
Box 11.13
Financing of Housing Loans
• Most of the clients of Housing Finance Institutions/banks under retail home loans belong to MIG/HIG categories and
housing loan finance still remains unaffordable in a large way to the EWS/LIG sections.
• Only 0.2% of housing loans extended by HFCs are of value less than Rs 50000 and about 7% of housing loans is of value
between Rs 50000–100000.
• More than 73% of housing loans extended by HFCs is of value exceeding Rs 3 lakh and about 93% of value exceeding
Rs 1 lakh.
• The fastest growing housing value bracket is between Rs 10 lakh to Rs 25 lakh.
• This highlights the need to evolve a system or a scheme for financing housing loans on a large scale for the lower income
groups whose affordability for housing loans falls in the range below Rs 3 lakh, as over 90% of the housing shortage is on
account of EWS/LIG.
multiple counting and resale of properties, in the sense ROLE OF CO-OPERATIVES

that cross-funding/bulk borrowing is involved among 11.99 The co-operative housing movement has re-
the various institutions. It is, therefore, assumed that ceived support over consecutive Five Year Plans and a
the net flow of funds to the housing sector from strong institutional framework is getting evolved within
formal sector institutions would be 50% of the gross the co-operative movement. The performance of hous-
flow of funds for construction of new houses. This ing co-operatives is highly influenced by the quantum
comes to approximately Rs 2.90 lakh crore, which is of funds available to them. During the first three years
80% of the total investment requirements for urban of the Tenth Five Year Plan, that is, 2002–03, 2003–04,
housing for the Eleventh Plan. and 2004–05, the Apex Co-operative Housing Federa-
tions could raise an amount of Rs 1774.43 crore from
RESOURCE MOBILIZATION various funding agencies such as LIC, NHB, HUDCO,
11.96 Some corrective measures including legislative Commercial and Co-operative Bank, and other sources.
and regulatory, outreach related, and those related to
expansion of housing finance would be required to 11.100 Community-linked Finance Facility (CLIFF)
promote larger flow of funds to accelerate supply of which is a financial mechanism that facilitates access
housing to a cross-section of households. to capital by organizations of the urban poor is
now in its third year of operation in India. As of
11.97 Liquidity of housing finance with particular December 2004, CLIFF capital funds had supported
reference to EWS, low-income group, and middle- 10 community-led development projects; eight hous-
income group households has to be improved so that ing developments, providing safe, secure, and afford-
financial institutions are in a position to supply the able shelter with secure tenure for 2816 households;
requisite funds. Development of Secondary Mortgage and two sanitation projects designed to benefit over
Market is important in this regard. Recognizing the 200000 families living in slums in Mumbai and Pune,
role of securitization as a source of funding, initiatives both in the State of Maharashtra.
for developing the secondary mortgage market have
already been taken by the NHB. The government needs RENTAL HOUSING
to also provide a conducive and supportive fiscal and 11.101 One of the major constraints in the develop-
regulatory framework for banks and other participants ment of housing is the rent control legislation in many
to actively engage in Residential Mortgage Backed States. Rental housing in the urban areas needs to be
Securitization transactions. promoted through enabling legislative and adminis-
trative measures to serve a wide cross-section of popu-
ROLE OF PRIVATE SECTOR AND FDI lation in need of housing during their stay in cities.
11.98 The Eleventh Plan focuses on clearing the back- Model Rent Control Act needs to be advocated exten-
log in housing and infrastructure assets including sively by the States with suitable variations to suit the
up-gradation activities. Institutions such as National local requirements. The State Governments need to
Real Estate Development Council (NARDCO) and the encourage public housing institutions, corporate
Confederation of Real Estate Developers Association bodies, educational institutions, and private sector
of India are playing an important role in regulating agencies, through fiscal incentives and soft loans, to
the activities of private developers by accrediting them take up rental housing for specific groups under their
and also by rating such institutions based on their coverage and focus.
experience and capacities. The GoI has permitted 100%
FDI for development of townships including construc- HOUSING TECHNOLOGY
tion of development projects, subject to minimum 11.102 The BMTPC was established in 1980 with the
capitalization, minimum land/built up area, etc. How- objective of promoting cost-effective, environment-
ever, to encourage larger inflow of FDI, there is need friendly, energy-efficient, and disaster-resistant tech-
to minimize the procedural delays in sanctions and nologies and building materials for sustainable habitat
approval of projects. development. Around 39 technologies relating to
innovative building materials have been developed for BMTPC for this purpose is estimated at Rs 55.19
and licensed to private entrepreneurs for commercial crore.
production. About 12 technologies are in various stages
of development. A recently developed technology 11.105 The Hindustan Prefab Limited (HPL) was set
pertains to bamboo mat corrugated sheets for roofing up as the Hindustan Housing Factory Limited in 1953
and is a substitute for asbestos or iron corrugated sheets. and was given the status of a PSU in 1955. The com-
Further, the Council has successfully completed 252 pany was re-titled as HPL in 1978. The objective of
demonstration houses under Valmiki Ambedkar Awas HPL is to develop cost-effective prefabricated build-
Yojana (VAMBAY) at Bangalore using cost-effective ing components. HPL is currently in the process of
technologies. The Council has also completed 100 restructuring and modernizing its operations vis-à-vis
demonstration houses at Dehradun (Uttarakhand) prefabricated building components. It is expected that
and 70 demonstration houses at Nagpur (Maharashtra) the company will continue this focus in the Eleventh
under VAMBAY. The construction of 270 demons- Plan, while at the same time, moving into the areas of
tration houses at Bilaspur (Chhattisgarh), Trichy on-site supervision, project management services,
(Tamil Nadu), and Kodulu (Karnataka) are under turnkey construction projects, preparation of DPRs
progress. of housing and infrastructure projects, project
appraisal, and training in construction trades.
11.103 The efforts made by BMTPC through an inte-
grated approach involving simultaneous action for POLICY MEASURES AND STRATEGY FOR
standardization, grading awareness, promotion ADDRESSING THE PROBLEMS OF SLUMS
through governmental recognition in terms of policy 11.106 JNNURM is the single largest initiative ever
support and fiscal incentives have certainly enhanced launched by the GoI to address the problems of urban
acceptability and have demonstrated the efficacy of housing, infrastructure, and basic services to the
an integrated system of technology transfer. Use of poor in 63 cities and towns in a holistic manner.
alternative materials such as fly ash, bricks, blocks, JNNURM comprises two broad segments, namely
and simple prefab systems for slabs/roofing needs to (i) the Sub-Mission on Urban Infrastructure and
be further encouraged. Flexibility should be extended Governance and (ii) the Sub-Mission on Basic
to building and construction material standards. Services to the Urban Poor (BSUP) covering 63 iden-
tified cities. The non-Mission cities and towns are
11.104 A major achievement of BMTPC has been the covered under the UIDSSMT and Integrated Housing
preparation of Vulnerability Atlas of India for formu- and Slum Development Programme (IHSDP). The
lating disaster mitigation plans and establishing MoHUPA is the nodal ministry for BSUP and IHSDP
techno-legal raging in disaster-prone areas. This programmes which cater to housing and basic ameni-
Atlas has been revised in digitized format with latest ties to urban poor, especially slum dwellers. These
data. As an extension of the Vulnerability Atlas, it has schemes/programmes will, in addition to improved
brought out the Landslide Hazard Zonation Atlas of housing, also cater to other basic services such as sani-
India. BMTPC has also formulated guidelines for tation, water supply, sewerage, solid waste disposal, etc.
construction of safer and durable houses to withstand
earthquake/cyclone. During the Eleventh Plan, 11.107 Interest subsidy scheme for housing the urban
BMTPC proposes to focus on up-scaling and mod- poor has been proposed during the Eleventh Plan so
ernization of home-grown production technologies, as to provide an interest subsidy of 5% per annum, for
economy and efficiency in housing/building construc- a period of five years only, to commercial lenders for
tion projects, use of bamboo in housing and building lending to EWS/LIG segments of the urban areas.
construction and vulnerability reduction, risk assess- Interest subsidy is expected to leverage markets funds
ment, and disaster resistance construction. Besides, to flow into housing for poor. The scheme is expected
it will take steps for improving the design and layout to add 15 lakh houses to the housing stock during the
of EWS/LIG houses. The total requirement of funds Eleventh Plan.
Integrated Low-cost Sanitation Scheme Development and Plan Formulation and Implemen-
11.108 The low-cost sanitation scheme operating dur- tation Guidelines brought out by the Ministry of
ing the Tenth Plan, with the objective of liberating Urban Development are relevant which have, in fact,
manual scavengers from the obnoxious and age old duly incorporated the provisions of the 74th CAA.
practice of manual carrying of night soil, is in the pro-
cess of being revised. The current scheme involves sub- THRUST AREAS OF THE ELEVENTH PLAN
sidy of 45% for the EWS beneficiaries and 25% for the 11.112 In order to make the urban planning and
LIG beneficiaries for construction of two-pit pour development process sustainable, it would be appro-
flush units up to the plinth level. The under revised priate to interlink the planning framework compris-
scheme subsidy for the super structure beyond the ing national-level spatial strategies, regional-level
plinth level is also provided. The upper ceiling cost will strategy plans, metropolitan regional strategy plans,
be Rs 10000 to enable construction of a complete unit and city- and ward-level land use and development
of two-pit pour flush latrine with super structure. Suit- plans.
able additionality in cost for constructing a two-pit
pour flush latrine in hilly areas would be provided. In 11.113 For an effective urban planning system, there
this manner, the ILCS will be more comprehensive, and is need to have inter-related plans at three levels,
is expected to complete the process of liberation from namely, perspective/structure plans (20–25 years),
manual scavenging in the country. short-term integrated infrastructure development
Plans (five years) co-terminus with the National
URBAN PLANNING AND MANAGEMENT Five Year Plans, and plans of specific projects and
11.109 The United Nations has projected that between schemes.
2000 and 2030, India’s urban population will increase
from 282 million to 590 million (assuming moderate 11.114 The national spatial strategy should incorpo-
2.5% compound annual growth rate). Looking rate policies for industrial location and development,
forward, one facet of India’s urban planning challenge employment generation, human settlement pattern,
is to accommodate an additional 10 million urban and structure and infrastructure development, both
dwellers per year, provide them with adequate public for rural and urban areas. The State spatial plans
services and infrastructure, create opportunities for should be prepared by taking into account demo-
economic development, and ensure that urbanization graphic and economic potentials, broad land use con-
is environmentally sustainable. figurations, infrastructure requirements, and project
implementation schedules including mechanism for
EMERGING ISSUES IN URBAN PLANNING AND the PPPs.
MANAGEMENT
11.110 The 74th CAA 1992 is a historic piece of legis- 11.115 Each district should prepare a District Devel-
lation that provides for a democratic and participa- opment Plan that integrates the plans for its constitu-
tory planning process so as to incorporate the needs ent urban and rural areas as well as the sectoral
of the people, particularly poor and socially disadvan- allocations for various schemes under the purview of
taged groups, in the planning process. The Act stipu- existing district agencies.
lates the setting up of District Planning Committees
and MPCs for integration of spatial and economic 11.116 The Metropolitan Development Plan should
development as well as rural and urban planning, be prepared on the basis of plans prepared by Munici-
while keeping the needs of environmental conserva- palities and Panchayats under the metropolitan area
tion in view. and in the context of overall objectives and priorities
set by the Central and State Governments.
11.111 State governments need to take concrete
steps to constitute and functionalize the MPCs and 11.117 The legal and institutional framework should
District Planning Committees. In this regard, Urban provide the municipalities with adequate infrastructure
and manpower to undertake the preparation of these provide funding for creation of urban infrastructure
plans. Further, the process of preparation of develop- including water supply, sewerage, drainage, and solid
ment plans should be facilitated by developing urban waste management on the same pattern of funding
and regional information system and providing access as that of JNNURM, that is 90:10 basis. These pro-
to remotely sensed data, aerial photographs, GIS, set- grammes need to be integrated with JNNURM to
ting up MIS cells to build database at national and avoid duplicity in projects by different ministries and
State level, etc. Evolving suitable mechanism for strong adherence to projects based on City Development
database for all cities/towns with regard to coverage Plans.
of urban population with water supply, sewerage,
drainage, and solid waste management facilities is most ROLE OF IT IN EFFICIENT GOVERNANCE AND
essential in the wake of the large number of infrastruc- IN PROVISION AND MANAGEMENT OF
ture projects that are being considered by different URBAN SERVICES
States. 11.121 With the use of modern technology there have
been perceptible changes in urban governance. The
PUBLIC HEALTH ENGINEERING (PHE) advent of digital technology coupled with the avail-
TRAINING PROGRAMME ability of various modes of fast communication such
11.118 The scope of PHE training programme needs as Internet, intranet, cellular phones, and menu-based
to be widened so as to provide requisite training software has revolutionized the concept of governance.
for increasing the skills and expertise of all personnel There has also been a change in the outlook of admin-
involved in the water supply and sanitation sector. The istrators and policy makers in adopting latest technol-
infrastructure being developed by various ULBs/State ogy, and go for paperless work and make governance
departments for drinking water supply, sewerage, sani- more citizen-friendly. E-governance encompasses the
tation, drainage, sewage waste management under strategic and systematic use of modern ICT by the
JNNURM would require more qualified and trained government to improve the efficiency, transparency,
manpower for better planning, designing, implemen- and accountability in its functioning and interface with
tation, and O&M of water supply and sanitation citizens.
schemes.
ROLE AND INVOLVEMENT OF EXTERNAL MUNICIPAL GOVERNANCE AND REFORMS

SUPPORT AGENCIES
THE CONSTITUTION (SEVENTY-FOURTH
11.119 Technical and financial assistance from exter-
AMENDMENT) ACT (CAA)
nal support agencies such as WHO, UNDP, World
11.122 The Act has ensured decentralization and
Bank, ADB, and bilateral agencies needs to be explored
successfully created a set up of democratic institutions
on a case to case basis. It is also essential that the exter-
of self-government. However, despite 15 years of
nal donor agencies cut short their processing/decision-
enactment, most of the States are yet to implement its
making time to less than a year, so that projects planned
several provisions. While the CAA envisions decentrali-
under JNNURM are able to get financial and techni-
zation of functions, finances, and functionaries to
cal support of the external donor agency without ham-
enable the ULBs to function as ‘institutions of self-
pering the progress of project implementation.
government’, in reality, fiscal and administrative
LINKING OF BUDGET PROVISIONS OF MINISTRY decentralization have lagged behind political decen-
OF URBAN DEVELOPMENT AND MINISTRY OF tralization. The amended Municipal Acts do not
DONER MEANT FOR NORTH EASTERN STATES specifically assign functions and financial powers to
AND SIKKIM WITH JNNURM the ULBs, including town planning. To achieve the twin
11.120 The 10% lump sum pool of resources of objectives of ambitious growth paired with inclusive
Ministry of Urban Development and Non-Lapsable growth, the country needs to functionalize the insti-
Central Pool of Resources (NLCPR) under Ministry tutional framework that fosters livable, bankable, and
of DoNER meant for North Eastern States and Sikkim competitive cities.
INVOLVEMENT OF COMMUNITY AND ELECTED of preparing operating manuals relating to various

REPRESENTATIVES IN DECISION-MAKING services being provided by the ULBs. The operating
AND IMPLEMENTATION manuals can definitely improve the quality of assets
11.123 The CAA has empowered elected representa- that are being created by the ULBs. To ensure quality
tives and the community leaders with decision- control and uniformity, the manual may lay down
making powers through institutional frameworks standards for all materials that are used for creation
such as Ward Committees, MPCs, and District Plan- of assets. Operating manuals need not only be for
ning Committees. Now from a ‘top-down’ approach, engineering aspects but can cover the whole gamut of
the emphasis has thus shifted to the ‘bottom-up’ services in which the ULBs are involved.
approach.
MUNICIPAL FINANCE
SKILL UPGRADATION AND CAPACITY BUILDING OF 11.127 Municipalities have neither the responsibility
THE ULBS nor the autonomy of fiscal powers for delivering the
11.124 Lack of skilled manpower to undertake vari- urban services expected from them. There is a mis-
ous additional tasks entrusted to the ULBs is a cause match between ULB revenue capacities and their
of concern. Many of the ULBs have only one or two financial requirement.
engineers for preparing projects and almost no
town planner for preparing City Development Plan 11.128 The Ministries of Urban Development and
and Project Reports. During the Eleventh Plan, Housing and Urban Poverty Alleviation have estimated
emphasis would be laid on the capacity building of a huge resource gap of Rs 76896 crore for all States
the functionaries of the ULBs. There is a need to during the period 2005–10 for O&M of various
set up an apex agency to co-ordinate the activities civic services in urban areas (Twelfth Finance
of all national- and State-level training institutions. Commission, TFC report). To fill this huge gap, our
The Administrative Reforms Commission has pro- strategy revolves around stricter guidelines, policy
posed the creation of three to five year ‘urban gover- prescriptions, and stress on local revenue enhance-
nance capacity building programmes’ to be initiated ment efforts by the ULBs. It will certainly achieve
by the Central and State Governments. Deficiencies financial viability at the ULB level. Further, ULBs need
of the ULBs need to be addressed through various to take steps for broad-basing the revenue from own
capacity building program-mes under JNNURM and sources through improving the collection of existing
other CSS. revenue sources, reforms in property tax, levy of new
taxes and charges, enhanced cost recovery for utility
INDEPENDENT REGULATORY INSTITUTIONS charges and fees, improved information, registration,
11.125 An independent regulatory institution with billing and collection systems of taxes and charges,
professional urban managers is needed at the State reducing administrative expenses, etc. Innovative
level to ensure that the ULBs operate with autonomy methods of service delivery and involvement of
but within the framework decided by the independent private sector will improve the financial position of
regulatory institution. It can decide parameters such municipalities.
as framing minimum and maximum limits for
various types of local taxes, fees, user charges, admin- EVOLVE ALTERNATIVE WAYS TO AUGMENT
istrative expenditure, etc. Setting up the regulatory MUNICIPAL RESOURCES
institution can go a long way in improving the perfor- 11.129 The following steps need to be initiated for
mance of local bodies in delivery of civic services to augmenting revenue generation by the ULBs:
people.
Land as a Resource
PREPARATION OF OPERATING MANUAL FOR ULBS • Land is a good resource to generate revenue for the
11.126 The independent regulatory institution for local bodies and should be explored by the ULBs to
the ULBs can be entrusted with the responsibility the extent possible.
New Levies worthiness would be enhanced on a stand-alone

• New levies/cess should be levied to augment rev- basis so that the supply of bankable projects could
enue resources such as drainage fee, parking fee, be increased.
hoarding fees, vacant land tax, development impact
fee, etc. ROLE OF FINANCIAL INTERMEDIATION FOR LOCAL
GOVERNMENTS
Pooled Financing
• New thrusts for mobilizing urban infrastructure Municipal Development Funds
finance, a State-level Pooled Financing Mechanism 11.130 Around the world, more than 60 countries have
is working successfully in Tamil Nadu, with the established financial intermediaries. For example, in
financial assistance from the United States Agency Brazil, individual States often have established their
for International Development (USAID). The Cen- own municipal development funds. Both the World
tral Government has set up a PFDF with the objec- Bank and the ADB have announced that they intend
tive to facilitate development of bankable urban to rely more heavily on municipal development funds
infrastructure projects through appropriate capac- as a key part of their strategy to help finance local in-
ity building measures and financial structuring. An vestment needs in Asia. The goal is not merely to give
amount of Rs 100 crore has been provided to the municipalities access to credit, but to do so in a man-
Ministry of Urban Development for 2007–08 for ner that increases the efficiency of local investment and
PFDF. reinforce financial sector reforms in the rest of the
economy.
Secondary Markets
• The ULBs will have to be made credible and ac- Municipal Bond Markets
countable institutions so as to tap India’s increas- 11.131 The advantages of using municipal bonds to
ingly sophisticated financial markets including finance urban infrastructure are increasingly evident
secondary markets. in India. The Indian Bond Market is becoming vibrant.
Ahmedabad Municipal Corporation issued a first his-
Accessing Capital Markets torical Municipal Bond in Asia to raise Rs 100 crore
• To ensure sound local government credit markets, from the capital market for part financing a water
the government will have to evolve effective finan- supply project. An illustrative list of ULBs/parastatals,
cial institutions and instruments for financial mar- which have been granted permission to issue Munici-
ket regulations and supervision. The ULBs’ credit pal Bonds, is given Table 11.8.
TABLE 11.8
Urban Local Bodies/Parastatals which have been Granted Permission for Issue of Tax-Free Bonds
S. No. Name Year Amount (Rs in Crore)
01. Ahmedabad Municipal Corporation 2001 100.00
02. Hyderabad Municipal Corporation 2002 82.50
03. Nasik Municipal Corporation 2003 50.00
04. Visakhapatnam Municipal Corporation 2003 50.00
05. Hyderabad Metropolitan Water Supply and Sewerage Board 2003 50.00
07. Chennai Metropolitan Water Supply and Sewerage Board 2004 42.00
08. Karnataka Water and Sanitation Pooled Fund Trust 2004 100.00
09. Chennai Metropolitan Water Supply and Sewerage Board 2005 50.00
10. Chennai Corporation 2005 44.80
BUDGETARY SUPPORT travel. The situation in other parts of the country is

11.132 The TFC has recommended a sum of Rs 5000 similar.
crore for the municipalities to be provided as grants-
in-aid to augment the consolidated fund of the States 11.136 Managing urban expansion is a critical element
for the years 2005–10 to be distributed with inter se towards achieving the goals set by the National Urban
shares. Transport Policy. The National Urban Transport Policy,
2006 focuses on the need to ‘Move people—Not
COST EFFICIENCY AND PRODUCTIVE USE OF vehicles’, by encouraging public transport and use of
RESOURCES non-motorized modes. The policy suggests involve-
11.133 Projects being carried out by contractors have ment of private sector, innovative financing mecha-
to be carefully supervised to ensure quality and timely nisms to enhance efficiency, reduction in travel
completion. Cost over-runs in projects due to delay demand by encouraging a better integration of and
caused by contractors need to be penalized by incor- use and transport planning.
porating the penalty clause in the contract itself.
11.137 As per 2001 Census, there are 35 cities with
THRUST OF THE ELEVENTH FIVE YEAR PLAN million plus population. Except for Mumbai, Kolkata,
TOWARDS MUNICIPAL FINANCES and Delhi, none of the mega cities have a Mass Rapid
11.134 India’s urban areas will need to compete na- Transit System (MRTS). The Delhi Metro Project is
tionally and internationally for investments and hu- progressing as per schedule and Phase-I is fully opera-
man resources. Most of the ULBs are technically and tional. Other metropolitan cities are also in the pro-
financially ill-equipped to meet the ever-growing cess of preparing DPRs for a metro-rail system.
demand for urban services, so the capacity building
exercises have to be accorded priority. The Eleventh SUGGESTIONS FOR URBAN TRANSPORT PLANNING
Plan strategy would be to create a conducive environ- FOR THE ELEVENTH PLAN PERIOD
ment for efficient tax administration, increasing use • All cities need to prepare a comprehensive mobil-
of non-tax sources, efficient pricing of services, PPPs ity plan which includes a Master Plan for non-
in provision and maintenance of urban services, adopt- motorized transport taking into account projected
ing alternative sources of finance including access growth in the next ten years.
to capital markets, involvement of community and • Proposals for preparation of DPR should be pre-
private sector in raising revenue. The States need to ceded by professional evaluation by technology
ensure rating of municipalities for facilitating access neutral agencies.
to capital markets. • A comprehensive program of capacity building
should be implemented.
URBAN TRANSPORT • All cities should formulate a realistic ‘hawker/
vendor policy’.
URBANIZATION TRENDS AND TRAVEL NEEDS • Cities may prepare a plan for traffic calming to
11.135 Urbanization has lead to corresponding in- reduce emissions and road accident rates.
crease in demand for transportation. The growth in • All million plus cities may prepare plans to intro-
transport infrastructure has not kept pace with the duce/upgrade existing bus services as also introduce
increased demand and the share of public transport BRT systems on selected arterials during the Eleventh
vehicles has declined. The problem of congestion Plan period.
and its consequences are posing a severe threat to • All cities may have a parking policy. State govern-
sustainability of the urban areas. Confederation of ments need to amend building by-laws so that ade-
Indian Industry (CII) survey 2003 of the urban popu- quate parking space is made available for all
lation in southern India showed that 58% of those residents/users. FAR norms may be modified. Multi-
interviewed were dissatisfied with public transport level parking complexes may be made mandatory in
services. It also showed that 65% were willing to mega cities. All cities may upgrade taxi and three-
pay higher public transport fares for comfortable wheeler fleets.
SPECIFIC INTERVENTIONS REQUIRED FOR • Develop ring roads and city bypass roads as well as
ENHANCING MOBILITY NEEDS IN TOWNS rail line bypasses.
• Improvement in the quality and maintenance of • Develop freight transport terminals outside city
roads and provision of pedestrian pavements and limits.
cycle tracks. • Shift inter-state bus terminals from the city centre
• De-congestion of crowded areas. to the peripheries.
• Developing transport corridors to enable orderly
flow of public transport. Institutional/Regulatory Interventions
• Creation of parking spaces for para-transit and • Modify the enabling legislations.
other vehicles. • Establish fare policies and a fare regulator.
• Facilities for public bus services, pedestrian subways, • Implement fiscal measures that encourage use of
and larger parking facilities. public transport.
• Mobility needs of 40 lakh plus population cities
would generally need mass transit systems with SCHEME FOR PREPARATION OF DPRS AND
medium to high capacity with a larger network of CONDUCT OF TRAFFIC AND TRANSPORTATION
feeder systems. STUDIES
11.138 Under this scheme, support is provided by the
ACTIONS REQUIRED FOR THE DEVELOPMENT OF government for the preparation of DPRs and in the
INTEGRATED CITY TRANSPORT AS PER NUTP conduct of comprehensive traffic and transportation
studies to the extent of 40% of the cost. Although
Land-use interventions the scheme has resulted in many such studies being
• Encourage ‘Transit Oriented Development’ with carried out, yet these have not subsequently translated
high density areas. into a meaningful set of projects. Table 11.9 below
• Either develop all new/satellite townships/SEZ along shows that the outlays and expenditure under the
the defined major transport corridors or integrate scheme have not been satisfactory during the Ninth
them with mass transit system in the Master Plan and Tenth Plan periods. In line with the National
itself. Urban Transport Policy, the scheme is being revised
• Allow land use changes from time to time, includ- to raise the GoI grant.
ing for public/government use.
• Discourage sprawl through introduction of vacant 11.139 A Task Force has been set up to suggest insti-
land tax and levy of ‘Transport Impact Fee’ on tutional mechanism for better coordination in policy
developments in the periphery. formulation, planning, and regulation of traffic and
transportation project in all million plus cities.
Transportation Interventions
• Promote non-motorized vehicles by creating facili- INTEGRATION OF LAND USE AND
ties for safe use. TRANSPORT PLANNING
• Promote public transit systems that are cost effec- 11.140 Corridor development may be encouraged
tive and able to meet the demand levels optimally. for inter-city movement of goods and services
Encourage investments in premium bus systems. while deliberate attempt may be made to discourage
TABLE 11.9
Outlay and Expenditure
(Rs in Crore)
Item Ninth Plan Tenth Plan
Outlay Expenditure Outlay Expenditure
Urban transport planning 24.76 3.33 91.00 12.59
ribbon development, multi-modal corridors, and nique. Improvement in fuel quality can be achieved
SEZs in close proximity to city areas need to be devel- through removal/reduction of emission related
oped. constituents in the fuels such as sulphur in diesel and
sulphur, lead, benzene, and other aromatics in petrol.
PEDESTRIANIZATION AND NON-MOTORIZED Further reduction of emissions can be obtained
TRANSPORT (NMT) through improved engine technology and exhaust
11.141 Special consideration needs to be given to treatment systems. Vehicles manufactured before First
designing pedestrian and cyclist facilities along the Mass Emission Norms introduced in 1991 would re-
road and at intersections and the needs of the physi- quire to be replaced.
cally challenged persons need to be taken care of. The
entire road network including footpaths, road cross- ROLE OF INTELLIGENT TRANSPORT SYSTEMS
ings, service roads, carriageways, medians, bus stops, 11.144 ITS encompasses a broad range of wireless and
terminals, mass transit stations, parking facilities, wire line communications-based information and
etc. may be considered as per disabled-friendly design electronics technologies. When integrated into the
principles. transportation system’s infrastructure, these technolo-
gies relieve congestion, improve safety, and enhance
INTEGRATION OF TRANSPORT SYSTEM productivity. Applied effectively, ITS and Services
11.142 The benefits of common ticketing to the op- can save lives, time, and money as well as reduce threats
erators are reduced transactions and lower recurring to our environment and create new business oppor-
costs. Despite these advantages, the system of common tunities.
ticketing has not picked up in India. A necessary con-
dition for common ticketing across operators is the 11.145 A large investment of Rs 38000 crore has
creation of a mechanism that allows a fair share of the been identified for the introduction of modern buses
revenues earned from such common tickets. If there is in the country during the Eleventh Plan. The govern-
only a single service provider, sharing of revenue will ment aims to replace all the existing urban buses
not be a problem while with multiple providers this is with ‘truck chassis body’ with low floor/semi low
a complex task. Indore model of public transport could floor ultra modern buses on PPP basis. Table 11.10
be replicated in other cities. provides the financial requirement during the Elev-
enth Plan.
Appropriate/Cleaner Technologies for
Public Transport 11.146 The financial requirement to cater to the grow-
11.143 Vehicular emission is directly related to the fuel ing demand in the Eleventh Plan would be Rs 132590
used, the technology employed, and the driving tech- crore as summarized in Table 11.11.
Box 11.14
Best Practices in Public Transport
1. Indore Model
Indore city in Madhya Pradesh has evolved a PPP model for operation of city bus services. In this model, the investment
on the rolling stock is planned through private participation. The source of revenue for the private operator is from fare
collection and from advertisements.
2. Revival of public transport in Bangalore
Bangalore Metropolitan Transport Corporation (BMTC) was created in 1997 by separating Bangalore depots of the
troubled Karnataka Road Transport Corporation from the mother company. It carried out a thorough internal restruc-
turing, introduced cost and service monitoring, and sub-contracted some services to private operators on a gross-cost
based scheme. In the span of two to three years, BMTC improved its services and fleet/staff productivity, and became
profit making.
TABLE 11.10
Funds Requirement
Cities (Population in Lakh) Total No. % of Towns Proposed Average Rs in Crore
of Towns for Eleventh Plan Requirement
1–5 370 50 40 7400
5–10 39 50 400 7800
10–40 28 100 930 26040
> 40 7 100 3000 21000
MRTS 8 100 32000
Modern buses 38000
Capacity building and transport planning 350
Total 132590
TABLE 11.11 11.147 The total outlay for the Eleventh Plan for
Sources of Funding Ministry of Urban Development is Rs 24600 crore
Source Funding (in Rs crore) at 2006–07 price (Rs 26041 crore at current price)
which includes Rs 11001 crore of GBS at 2006–07 price
*JNNURM (GoI) including UIDSSMT 15500
(Rs 12443 crore at current price). Likewise, the total
*Non-JNNURM (Budgetary Support) 4400
outlay for the Eleventh Plan for Ministry of Housing
VGF 6000
and Urban Poverty Alleviation is Rs 43480 crore at
Resourced from States/ULBs 19500 2006–07 price (Rs 50958 crore at current price) which
Loan from financial institutions 61190 includes Rs 3260 crore of GBS at 2006–07 price
Participation by private promoters 26000 (Rs 3687 crore at current price).
Total 132590 TABLE 11.13
Note: * The actual allocation provided for JNNURM is Rs 50000 Population, Housing and Basic Amenities
crore during 2005–12 out of which the amount available for Total population of India, 2001 1028.6 million
urban transport is expected to be in the range of Rs 10000 crore. Urban population, 2001 286.1 million
As regards non-JNNURM, budgetary support is Rs 3055 crore. % share urban, 2001 27.8%
The shortfall will need to be met by other sources of finance. Total urban housing stock, 2001 52.0 million
Source: Ministry of Urban Development, GoI. Pucca houses 79.16%
Semi-pucca houses 15.58%
TABLE 11.12 Kutcha houses 5.27%
Slum Population—Census 2001 Household with Tenure Status, Urban, 2001
Slum population 1991 46.26 million Owned 66.8%
(TCPO estimates) Rented 28.5%
Slum population 2001 61.82 million Others 4.7%
(TCPO estimates)
Households having Access to, Urban, 2001
No. of towns reporting slums in 640#
Safe drinking water 90.01%
Census 2001
Electricity 87.59%
Reported slum population in 42.58 million Toilet 73.72%
640 towns, 2001 Drainage 77.86%
Population of towns/cities reporting 184.35 million Kitchen within the house 75.96%
slums, 2001 LPG for cooking 47.96%
Share of slum population to population 23.1% Electricity for cooking 0.31%
of towns/cities reporting slums, 2001 Biogas for cooking 0.37%
Note: # Towns with population of 50000 or more. Source: MoHUPA, GoI.

Urban Infra - Planning Commision

Uploaded by

Copyright:

Available Formats

Urban Infra - Planning Commision

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Urban Infra - Planning Commision

Uploaded by

Copyright:

Available Formats

11

Urban Infrastructure, Housing, Basic Services

OVERVIEW urbanized compared to many countries of Asia, viz.,

THE CONSTRAINTS been allocated. Subsequently, additional Rs 500 crore

JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MEGA CITY

PROVISION OF BASIC SERVICES TO THE URBAN 1999–2000 2004–05

• Creating and updating database on slums. Box 11.7

REVIEW OF SCHEMES Policy needs to be formulated so as to evolve a holistic

provisions in their budget. ULBs have to follow a

FLOW OF FUNDS FOR HOUSING

multiple counting and resale of properties, in the sense ROLE OF CO-OPERATIVES

ROLE AND INVOLVEMENT OF EXTERNAL MUNICIPAL GOVERNANCE AND REFORMS

INVOLVEMENT OF COMMUNITY AND ELECTED of preparing operating manuals relating to various

New Levies worthiness would be enhanced on a stand-alone

BUDGETARY SUPPORT travel. The situation in other parts of the country is

You might also like