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REFERENCE NOTE . No.3/RN/Ref./2013

For the use of Members of Parliament Not for Publication

Challenges of

------The reference material is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of the information as it is based on the sources indicated at the end/in the text. This Service does not accept any responsibility for the accuracy or veracity of the information or views contained in the note/collection.

Challenges of Urbanization in

Introduction Urbanisation in India has become an important and irreversible process, and an important determinant of national economic growth and poverty reduction. The process of urbanisation is characterised by a most dramatic increase in the number of large cities, although India may be said to be in the midst of transition from a predominantly rural to a quasi urban society1.

In 2001, India‟s urban population, living in approximately 5,200 urban agglomerations, was about 285 million. It has increased to almost 380 million in 2011. Projections are that by 2030, out of a total population of 1.4 billion, over 600 million people may be living in urban areas. The process of urbanisation is a natural process associated with growth. There is no doubt that the condition of the poor in rural India must continue to get major attention but the urban sector development should not be viewed as negating such attention or weakening it in any way. On the contrary, we must acknowledge that there is a synergistic relationship between rural prosperity and the continuum of urban development from small towns through larger cities to metros. A holistic approach to spatial development is needed if the country wishes to achieve more inclusive growth.

Urban Growth

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

1 India, Ministry of Urban Development, Annual Report 2011-12, p.1 2 An Approach Paper to the 12th Plan, Planning Commission, Government of India, October 2011, pp. 108-109 -2-

Level of Urbanisation

Among all the States and Union Territories, the National Capital Territory of is most urbanized with 93 per cent urban population followed by Union Territory of (89.8 per cent) and Pondicherry (66.6 per cent).

Among the major States, is the most urbanized state with 43.9 per cent of the population living in urban areas followed by (42.4 per cent) and (37.4 per cent). The proportion of urban population is the lowest in Himachal Pradesh with 9.8 per cent followed by with 10.5 per cent, Assam (12.7 per cent) and Orissa (14.9 per cent).

In terms of absolute number of persons living in urban areas, Maharashtra leads with 41 million persons which is 14 per cent of the total population of the country. accounts for about 35 million followed by Tamil Nadu 27 million3.

Causes of Urbanisation

Urbanization occurs naturally from individual and corporate efforts to reduce time and expense in commuting and transportation while improving opportunities for jobs, education, housing, and transportation. Living in cities permits individuals and families to take advantage of the opportunities of proximity, diversity, and marketplace competition. People move into cities to seek economic opportunities. A major contributing factor is known as “rural flight”.

In rural areas, often on small family farms, it is difficult to improve one‟s standard of living beyond basic sustenance. Farm living is dependent on unpredictable environmental conditions, and in time of drought, flood or pestilence, survival become extremely problematic. In modern times, industrialization of agriculture has negatively affected the economy of small and middle-sized farms and strongly reduced the size of the rural labour market. Cities, in contrast, are known to be places where money, services and wealth are centralized. Cities are where fortunes are made and where social mobility is possible.

Businesses, which generate jobs and capital, are usually located in urban areas. Whether the source is trade or tourism, it is also through the cities that foreign money flows into a country. It is easy to see why someone living on a farm might wish to take their chance moving to the city and trying to make enough money to send back home to their struggling family. There are better basic services as well as other specialist services that aren‟t found in rural areas. There are more job opportunities and a greater variety of jobs. Health is another major factor. People, especially the elderly are often forced to move to cities where there are doctors and hospitals that can cater for their health needs4.

3 www.urbanindia.nic.in 4 Urbanization in India, By Prof. Ashok Purohit (2012), pp. 2-3 -3-

Economic Effects

In recent years, Urbanization of rural areas has increased. As agriculture, more traditional local services, and small-scale industry give way to modern industry the urban and related commerce with the city drawing on the resources of an ever-widening area for its own sustenance and goods to be traded or processed into manufactures. Research in urban ecology finds that larger cities provide more specialised goods and services to the local market and surrounding areas, function as a transportation and wholesale hub for smaller places, and accumulate more capital, as well as often concentrating administrative functions for the area in which they lie.

This relation among places of different sizes is called the urban hierarchy. As cities develop, effects can include a dramatic increase in costs, often pricing the local working class out of the market, including such functionaries as employees of the local municipalities. For example, Eric Hobsbawm‟s book The age of the revolution: 1789 – 1848 stated “Urban development in our period was a gigantic process of class segregation, which pushed the new labouring poor into great morasses of misery outside the centres of the government and business and the newly specialised residential areas of the bourgeoisie.

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

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

5 Ibid, pp.4- 5 -4-

resources from the market and induces the private sector to participate in urban development programmes6.

The Ministry of Urban Development is implementing a number of Central and Centrally Sponsored Schemes for assisting the States in meeting the challenge of rapid urbanisation. Brief details of the schemes are given below:

JNNURM The National Urban Renewal Mission (JNNURM) was launched on 3rd December, 2005 with the objective of reforms driven and fast track development of cities across the country, with focus on bringing about efficiency in urban infrastructure, service delivery mechanisms, community participation and accountability of Urban Local Bodies and Parastatal agencies towards citizens.

65 Cities are covered under the Urban Infrastructure & Governance (UIG) component of the JNNURM. These cities have submitted their City Development Plans delineating their long-term vision for development. All the 65 Mission Cities have signed Memorandum of Agreement (MoA) with Government of India committing to a time bound agenda of reforms aimed at achieving sustainable urban transformation. The duration of the Mission is seven years beginning from 2005-06 to 2012-2013. During the period, the Mission seeks to ensure sustainable development of select cities.

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

The inadmissible components are projects pertaining to the following:- a) Power b) Telecom c) Health d) Education e) Wage employment programme & staff component7

Details of the projects approved for the various mission cities under UIG are given at Annexure-I.

(ii) National Mission Mode Project on e-Governance in Municipalities: A Mission Mode Project on e-Governance in municipalities has been prepared by Ministry of Urban Development to make urban governance more efficient and effective. Since local

6 www.urbanindia.nic.in 7 India, Ministry of Urban Development, Annual Report 2011-12, pp. 19-20 -5-

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

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

The main goals and objective of the policy are as follows:

Awareness Generation and Behaviour Change

a) Generating awareness about sanitation and its linkages with public and environmental health amongst communities and institutions;

b) Promoting mechanisms to bring about and sustain behavioural changes aimed at adoption of healthy sanitation practices;

Achieving Open Defecation Free Cities

All urban dwellers will have access to and use safe and hygienic sanitation facilities and arrangements so that no one defecates in the open. In order to achieve this goal, the following activities shall be undertaken:

a) Promoting access to households with safe sanitation facilities (including proper disposal arrangements);

b) Promoting community-planned and managed toilets wherever necessary, for groups of households who have constraints of space, tenure or economic constraints in gaining access to individual facilities;

c) Adequate availability and 100% upkeep and management of Public Sanitation facilities in all Urban Areas, to rid them of open defecation and environmental hazards;

8 Ibid, p. 23 9 Ibid, p. 27 -6-

Re-Orienting Institutions and Mainstreaming Sanitation

a) Mainstream thinking, planning and implementing measures related to sanitation in all sectors;

b) Strengthening national, state, city and local institutions;

c) Extending access to proper sanitation facilities for poor communities and other unserved settlements;

Sanitary and Safe Disposal

100 % of human excreta and liquid wastes from all sanitation facilities including toilets must be disposed of safely. In order to achieve this goal, the following activities shall be undertaken:

a) Promoting proper functioning of network-based sewerage systems and ensuring connections of households to them wherever possible;

b) Promoting recycle and reuse of treated waste water for non potable applications wherever possible will be encouraged.

c) Promoting proper disposal and treatment of sludge from on-site installations

d) Ensuring that all the human wastes are collected safely confined and disposed of after treatment so as not to cause any hazard to public health or the environment.

Proper Operation & Maintenance of all Sanitary Installations:

a) Promoting proper usage, regular upkeep and maintenance of household, community and public sanitation facilities;

b) Strengthening ULBs to provide or cause to provide, sustainable sanitation services delivery10.

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

10 www.urbanindia.nic.in -7-

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

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

(iii) Promote planned integrated development of towns / cities.

Details of State-wise release of funds under the UIDSSMT are given at Annexure-II.

(v) National Urban Information System (NUIS): Ministry of Urban Development has launched National Urban Information System (NUIS) Scheme during the Tenth Five Year Plan to develop GIS database for 152 towns/cities in the country in two scales i.e., 1:10000 and 1:2000. In addition utility mapping on 1:1000 scales is also undertaken for 22 towns.

NUIS scheme broadly comprises two components, namely, Urban Spatial Information System Components (USIS), and National Urban Data Bank and Indicators (NUDB&I). The spatial and attribute database thus g generated will be useful for preparation of Master/Development plans, detailed town planning schemes and serve as decision- support for e-Governance.

(vi) Scheme for Urban Infrastructure in Satellite Town around seven mega cities: Ministry of Urban Development is implementing a pilot Scheme for Urban Infrastructure Development in Satellite Towns around seven Maga Cities. The objectives of this scheme are as under:-

i) To develop urban infrastructure facilities such as drinking water, sewerage and solid waste management etc at satellite towns around the seven mega-cities and to channelize their future growth so as to reduce pressure on the mega cities;

ii) To implement reforms such as E-Governance, property tax, double entry accounting, creation of barrier free environment, structural safety norms in compliance with the National Building Code, water and energy audit of water and wastewater utilities and implementation of service level benchmarks;

iii) Strengthening implementation of reforms such as levy of reasonable user charges, earmarking of budgets for basic services and at least 10-15% of housing sites for the urban poor, formulation of bye-laws to incorporate provisions for disaster management, water harvesting and reuse and recycle of waste water and implementation of Public Private Partnership (PPP) projects.

The following projects have been sanctioned under this scheme11:

11 India, Ministry of Urban Development, Annual Report 2011-12, pp. 33, 36 -8-

(Rs in lakh) S. No. Project Name Approved cost 1 Integrated Solid Waste Management for Vasai Virar 3172.64 2 Municipal Solid Waste Management Scheme for Sonepat Town 2496.00 3 Augmentation of Water Supply by Ranney Well,Sonepat 6958.00 4 Under Ground Drainage Scheme, Vikarabad 6474 5 Water Supply Improvement Scheme, Vikarabad 7009 6 Pilkhuwa Sewerage Scheme 3687.51 7 Municipal Solid Waste Management Scheme for Pilkhuwa Town 897.7 8 Re-organization of water supply for Pilkhuwa Town 2167.55 9 Sewerage System of Sanand Nagarpalika 5848.68 10 Solid Waste Management Scheme for Sanand Nagarpalika 213.62 11 Water Supply System of Sanand Nagarpalika 3320.86

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

The project-wise details of ODA and JICA loans are given at Annexure- III.

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

(a) Sea Water Reverse Osmosis De-salination Plant at Nemmeli, : The Government of India has approved a project for setting up of 100 MLD Sea Water Reverse Osmosis Desalination Plant at Nemmeli near Chennai at an estimated cost of Rs.871.24 crore in 2008-09. During the Joint Monitoring Committee (JMC) Meeting held under the Chairmanship of Joint Secretary (UD) on 20-12-2011, it was informed by CMWSSB that the likely total expenditure -9-

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

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

New Phase of JNNURM The Government will be launching the next phase of JNNURM-II with an outlay of 0.25 percentage of GDP, amounting of nearly Rs. 1.75 lakh crore during the 12th Plan period. JNNURM-II will have an enhanced focus on the Class-I towns and medium towns13.

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

Rajiv Awas Yojana In pursuance of the Government‟s vision of creating a slum-free India, Rajiv Awas Yojana (RAY) was launched on 2.6.2011.

Under the scheme, Central Assistance will be extended to States that are willing to assign property rights to slum dwellers and undertake reservation of land/Floor Area Ratio (FAR)/dwelling units for Economically Weaker Sections (EWS)/Low Income

12 Ibid, pp.30- 42 13 Ibid, p. 5 14 The Economic Times, New Delhi, dated 6 November 2012 -10-

Groups (LIG), earmark 25 per cent of municipal budget for basic services to the urban poor/slum-dwellers and bring in legislative amendments and policy changes to redress land and affordable housing shortages for the urban poor. The phase I of Rajiv Awas Yojana, which is for a period of two years from the date of approval of the scheme, is the preparatory phase, and is currently under implementation. Eight pilot projects with total project cost of Rs. 446.22 Crore involving Central Assistance of Rs. 197.09 Crore have been approved under RAY for construction of total 8400 dwelling units (DUs). The first installment of Rs. 65.69 Crore has been released. The projects have been sanctioned recently and no State Government has reported starting the construction of houses.

Central outlay of Rs.5000 Crore is earmarked for the preparatory phase, i.e. June 2011 – June 2013 (covering part of 2011-12 from the 11th Five Year Plan and part of 2012-13 from the 12th Five Year Plan). The 12th Plan allocation for the second phase of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), including Rajiv AwasYojana (RAY) is Rs.35,810 Crore15.

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

(a) Model Municipal Law: Although the Constitution (74th Amendment Act), 1992 has already completed a decade and urban local bodies (ULBs) have been delegated with specific responsibilities and functions, adequate financial resources are not made available to them. As a result, they are not able to perform their assigned functions in an efficient and effective manner. Thus, the State Governments were required to amend their State Municipal Laws to give functional and financial autonomy to ULBs as envisaged by the 74th Amendment Act.

Keeping this in view, Ministry of Urban Development also developed and circulated a Model Municipal Law, which intends to assist urban local bodies in the areas of accounting reforms, resource mobilization, levy of user charges and entry of private sector partnership. The Model Municipal Law, inter alia, aims at simplification of municipal by-laws, provision for enhanced borrowing, allowing entry of private sector and authorising concessionaire to penalize users for non- payment of tariffs17.

15 Lok Sabha Starred Question No. 70, dated 27.11.2012 16 India, Ministry of Urban Development, Annual Report 2011-12, p. 45 17 Ibid, pp. 46-47 -11-

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

Urban Transport A National Urban Transport Policy (NUTP) approved by the Government in April, 2006 seeks to promote integrated land use and transport planning, greater use of public transport and non-motorized modes of travel, use of cleaner technologies19.

A new scheme providing for 80% Central Financial Assistance for transport planning has been launched w.e.f. August, 2008 for taking up traffic & transportation studies/preparation of DPRs. The Scheme covers the wide gamut of urban transport matters for promoting comprehensive & integrated urban transport planning, integrated land use and transport planning, comprehensive mobility plans, preparation of DPR, Clean Development mechanism (CDM), Intelligent Transport System (ITS), launching of awareness campaign in line with National Urban Transport Policy, 2006.

(a) Financing of Buses for Urban Transport under JNNURM: Under the second stimulus package announced by the Government on 2nd January, 2009, the States; as a onetime measure have been provided financial assistance for purchase of buses for their urban transport system under the scheme for providing central financial assistance in the form of grant for procurement of buses for urban transport under JNNURM. The financing is meant exclusively for City Bus Service and Bus Rapid Transit System (BRTS) for all 65 mission cities. Ministry of Urban Development have sanctioned 15260 buses under the scheme with a total cost of Rs. 4723.94 crore out of which Additional Central Assistance (ACA) admissible is around 2089 crore20.

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

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

18 Ibid, p. 48 19 Ibid, p. 53 20 Ibid, p. 55 -12-

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

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

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

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

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

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

The key recommendations of the Committee are presented below:

21 Ibid, pp. 59-60 22 Ibid, p. 67 23 Times of India, New Delhi, 10.1.2012 24 India, Ministry of Urban Development, Annual Report 2011-12, pp. 69-77 -13-

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

 Increasing investment in urban infrastructure from 0.7 per cent of GDP in 2011- 12 to 1.1 per cent by 2031-32;

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

 Engaging in renewal and redevelopment of urban areas including slums;

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

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

 Reforming norms;

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

 Strengthening and securing the financial base of ULBs;

 State governments providing an enabling environment for ULBs to discharge their enhanced responsibilities;

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 Government of India launching a New Improved JNNURM (NIJNNURM) that focuses on capacity building and supports urban reforms within a programme approach25.

The Roadmap Ahead As urbanisation proceeds faster, the trend the world over is towards smart cities. It is assumed that 70 per cent of the world‟s population will be living in such cities by the year 2050. In a smart city there will be integration among all concepts and tools in a variety of areas such as urban planning, mobility, energy efficiency and population management, all with a view to ensuring sustainable urban development. Innovation and technology leads to greater efficiency in the provision of clean energy, smart buildings, open government systems, better water and waste management, sustainable resource management, smart vehicles, integrated transportation, and so on.

The successful cities of the future will run on information. Today, in addition to cities trying their best to govern better so that all residents benefit from the best civic facilities, there is also intense competition among cities. Connectivity has become a critical element in how they function. The ability to connect businesses and people enables new services and capabilities; for businesses, being connected means access to the global market and a platform to offer their services to a larger outside market. Digital communication and the internet today have assumed the role of a fourth utility.

Not all the mission cities and towns have been able to achieve even this minimum target. There is a lot more to be done still to have e-governance spread in all the 4,000-plus municipal bodies, and to steadily extend it to more functions in cities which have already taken the first steps. Even though done in silos, some prominent examples of technology leverage in our cities are: Greater Hyderabad using GPS and GPRS technologies to cover solid waste management, and maintaining parks and street lights through cell phone images, subsequently put in the public domain; introducing an on-line water quality monitoring system; 's computerised building-plan approval scheme; Bangalore opting for geographic information systems (GIS) to standardise property tax administration; Utilities Company providing an IT-enabled 24/7 single-window call centre and customer database; and improving municipal revenues using a GIS-linked property database26.

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

 Provision of basic amenities like safe drinking water, sewerage, waste management facilities and sanitation facilities in urban conglomerations, while

25 Lok Sabha Unstarred Question No. 3178, dated 12.12.2012 26 , New Delhi, dated 7.10.2012 -15-

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

 Improved water management, including recycling of waste water in large cities and new townships.

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

27 An Approach Paper to the 12th Plan, Planning Commission, Government of India, October 2011, p. 110 -16-

Annexure – I

Details of Projects approved for the various Missions cities during the last three years under UIG28 Sl.No. Name of State Number of Sanctioned Cost of Sanctioned projects Additional Central Assistance projects Commitment (ACA) 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12 2009-10 2010-211 2011-12

1 3 0 2 37,595.00 - 10,678.00 13,935.00 - 6,037.70 2 Arunachal Pradesh 0 0 0 ------3 Assam 0 0 0 - - - - 4 Bihar 0 0 0 ------5 Chandigarh 1 0 0 13,421.00 - - 10,738.80 - - 6 Chattisgarh 0 0 0 ------7 Delhi 20 1 0 503,763.00 135,771.00 - 176,316.60 47,520.00 - 8 Goa 0 0 2 - 7,484.08 - - 5,987.26 9 Gujarat 4 1 1 45,483.26 2,631.04 11,180.65 20,604.09 2,104.84 8,944.52 10 0 0 0 ------11 Himachal Pradesh 1 0 1 5,474.00 - 1,050.62 3,880.00 - 840.50 12 Jammu & Kashmir 0 0 1 - - 2,032.03 - - 1,828.83 13 0 1 0 - 3,336.24 - - 1,668.12 - 14 2 0 1 6,215.00 - 330.00 4,332.00 - 264.00 15 1 0 0 2,210.00 - - 1,105.00 - - 16 2 1 0 37,388.00 18,000.00 - 20,115.70 9,000.00 - 17 Maharashtra 2 0 1 22,169.78 - 10,941.57 10,336.86 - 3,829.55 18 Manipur 1 0 0 10,250.13 - - 9,225.12 - - 19 Meghalaya 0 0 0 ------20 Mizoram 0 0 3 - - 11,090.36 - - 9,981.32 21 Nagaland 1 0 1 5,042.43 - 4,026.10 4,538.19 - 3,623.49 22 Orissa 1 0 0 7,182.00 - - 4,500.00 - - 23 Punjab 1 0 0 4,578.00 - - 2,289.00 - - 24 Puducherry 0 0 0 ------25 0 0 0 ------26 Sikkim 1 0 0 7,261.66 - - 6,535.49 - - 27 Tamil Nadu 1 1 0 22,675.00 11,610.00 - 9,000.00 4,063.50 - 28 Tripura 1 0 0 10,221.00 - - 9,000.00 - - 29 Uttar Pradesh 4 0 0 65,132.77 - - 31,500.00 - - 30 Uttarakhand 1 3 1 6,283.00 4,377.33 1,182.27 4,628.00 3,501.86 945.82 31 12 8 13 111,113.68 120,718.53 146,952.24 44,822.75 42,251.49 53,248.03 Total 60 16 27 923,458.71 296,444.14 206,947.92 387,402.60 110,109.81 95,531.02

28 Lok Sabha Starred Question No. 140 dated 21.8.2012 -17-

Annexure - II Status of State-wise release of funds under UIDSSMT during last three years and current year (as on 31.07.2012)29

Sl. Name of States Allocation No. of No. of Approved Eligible Release Release Release Release Total ACA Total No. of funds Towns Projects Cost central of ACA of ACA of ACA of ACA released Commitment for /Cities share during during during during by M/o made so far. Complete (80%/ 90% 2009-10 2010-11 2011-12 2012-13 Finance/ (Col. 7+11) Mission of MHA Period approved so far cost) (ACA (including committed) incentives)

1 Andhra Pradesh 49031.00 69 84 245995.50 196796.40 476.88 43079.00 22017.66 2897.54 198091.21 199157.32

2 Arunachal Pradesh 746.00 9 9 3935.98 3542.38 1771.19 3542.38 3542.38

3 Assam 10129.00 28 30 20783.28 18704.95 2408.73 12364.67 18953.14

4 Bihar 25478.00 11 11 26113.91 20891.13 10674.38 21119.94

5 13478.00 3 4 25143.65 13472.92 2447.46 4289.00 13472.92 13472.92

6 Goa 2211.00 3 3 2875.00 2211.00 337.20 768.30 337.20 1442.70 2211.00

7 Gujarat 35182.00 52 52 43814.36 35051.49 4651.09 4919.97 32866.52 35195.58

8 Haryana 19559.00 7 9 20135.81 16108.65 2913.22 1491.20 11119.00 16260.09

9 Himachal Pradesh 1744.00 4 8 12653.68 10122.94 345.82 2098.37 2594.08 5873.30 10150.03

10 Jammu & Kashmir 3545.00 13 47 42441.50 38197.35 4020.85 7119.16 25473.20 38611.03

11 Jharkhand 11452.00 5 6 12864.35 10291.48 1287.12 5290.44 10436.18

12 Karnataka 44314.00 30 38 68248.57 54598.86 17662.95 2069.43 3917.28 52848.70 55116.01

13 Kerala 23282.00 22 25 42778.55 34222.84 17340.72 34532.14

14 Madhya Pradesh 43843.00 49 68 123099.43 98479.54 3871.53 13330.16 14878.14 63472.59 98705.50

15 Maharashtra 66476.00 84 95 282677.57 226142.06 14072.30 22781.21 35455.01 12415.06 194935.08 226997.01

16 Manipur 1260.00 5 5 6277.00 5649.30 2845.44 5670.09

17 Meghalaya 719.00 2 2 1433.26 1289.93 644.97 1289.93

18 Mizoram 824.00 2 2 1555.04 1399.54 699.77 1399.54 1399.54

19 Nagaland 1028.00 2 2 2325.82 2093.24 190.75 855.87 1046.62 2093.24

29 Lok Sabha Starred Question No. 140 dated 21.8.2012 -18-

20 Orissa 18179.00 14 18 25699.59 20559.67 90.37 1278.44 10448.66 20728.44

21 Punjab 22660.00 14 17 39577.45 31661.96 1982.00 17936.24 31785.23

22 Rajasthan 40143.00 35 37 60988.52 48790.82 28421.99 49063.07

23 Sikkim 120.00 5 5 3992.82 3593.54 1796.77 3617.25 3617.25

24 Tamil Nadu 70597.00 115 122 88272.98 70618.38 1935.35 2135.61 724.88 56689.52 70618.38

25 Tripura 1376.00 4 4 7816.81 7035.13 2759.76 577.54 6919.68 7100.13

26 Uttar Pradesh 94792.00 46 64 115805.15 92644.12 10918.80 16933.84 8789.60 231.38 84613.59 93521.12

27 Uttaranchal 4670.00 1 1 6173.25 4938.60 2469.30 4938.60

28 West Bengal 31525.00 34 35 61333.67 49066.94 2005.51 7346.82 5851.23 35981.33 49414.20 29 Delhi 112.00 0 0 0.00 0.00 0.00 0.00

30 Pondicherry 557.00 1 1 3918.00 3134.40 1567.20 1567.20 3134.40 3134.40 31 Andaman & 448.00 1 1 558.13 446.50 223.25 223.25 446.50

Nicobar Islands

32 Chandigarh 0.00 0 0 0.00 0.00 0.00 0.00 33 Dadar & Nagar 193.00 1 1 1864.73 1491.78 719.89 745.89 1491.78

Haveli 34 Lakshadweep 104.00 0 0 0.00 0.00 0.00 0.00

35 Daman & Diu 220.00 1 1 942.37 753.90 31.00 753.90 Total 639997.00 672 807 1402095.73 1124001.74 29881.17 122344.44 115026.07 56654.26 905976.48 1131526.08

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Annexure -III

The Overseas Development Assistance (ODA) from Government of Japan i.e. from Japan International Co-operation Agency (JICA) is being availed for implementing Metro Rail Projects. The funds are being released by Ministry of Urban Development as Pass Through Assistance (PTA). The project-wise details of total JICA loan taken/ proposed are given below:-

(Rupees in crore) S. No. Name of the Project Amount of PTA

1. Delhi Mass Rapid Transport System Phase-I 6,356.45 2. Delhi Mass Rapid Transport System Phase-II 10,231.62 3. Delhi Mass Rapid Transport System Phase-III 18,567.00 4. Delhi Metro Extension from Mukundpur-YamunaVihar to Shiv Vihar 181.00 5. Delhi Metro Extension from Dwarka to Najafgarh 365.00 6. Delhi Metro Extension from Mundka to Bahadurgarh (Delhi Portion) 355.00 7. Mumbai Metro Line-3 (Colaba-Bandra-SEEPZ) Corridor 12,853.00 8. Jaipur Metro Rail Project 969.00 9. Metro Rail Project 2,170.00 10. Chennai Metro Rail Project 8,646.00 11. Kolkata East West Metro Project 2,253.00 12. Bangalore Metro Rail Project 64.536 billion Japanese Yen

Source: Lok Sabha Unstarred Question No. 3778 dated 4.9.2012