[Link].

in

URBANIZATION IN INDIA
Urbanization and economic development have a strong positive correlation which is indicated by the fact that
a country with a high per capita income is also likely to have a high degree of urbanization. The economic
advantages provided by urban areas are many. Generally, the industrial, commercial and service sectors tend
to concentrate in and around urban areas. These areas provide a larger concentration of material, labour,
infrastructure and services related inputs on the one hand and also the market in the form of consumers, on
the other. But the situation is different for India.

Urbanization in India: A brief Introduction

According to 2001 census, the urban population of the country was 286.11 million, living in 5161 towns, which
constitutes 27.81% of the total countrys population. However, the same as per 2011 census has risen to 377.16
million viz. 32.16% of the total countrys population and at the same time number of towns has gone up to
7935. The rate of urban growth in the country is very high as compared to developed countries, and the large
cities are becoming larger mostly due to continuous migration of population to these [Link] current
urban population exceeds the whole population of the United States, the worlds third largest country. By 2050,
over half of Indias population is expected to be urban dwellers. This creates enormous pressure on existing
urban infrastructure.
Over the years, there has been continuous concentration of population in class I towns. On the contrary the
concentration of population in medium and small towns either fluctuated or declined. The graduation of
number of urban centers from lower population size categories to class I cities has resulted top heavy structure
of urban population in India indicating the tendency towards concentration in larger agglomerations. Urban
agglomeration is a continuous urban spread constituting a town and its adjoining urban out growths (OGs) or
two or more physical contiguous town together and any adjoining urban out growths of such towns. Examples
of out growths are railway colonies, university campus, port area, military campus, etc. that may come up near
a statutory town or city.
Therefore Indias urbanization is often termed as over-urbanization, pseudo-urbanization. The large population
size is leading to virtual collapse in the urban services and followed by basic problems in the field of housing,
slum, water, infrastructure, quality of life, etc.

Basic Feature and Pattern of Indias Urbanization

Basic feature of urbanization in India can be highlighted as:
Lopsided urbanization induces growth of class I cities
Urbanization occurs without industrialization and strong economic base
Urbanization is mainly a product of demographic explosion and poverty induced rural - urban migration.
Rapid urbanization leads to massive growth of slum followed by misery, poverty, unemployment,
exploitation, inequalities, degradation in the quality of urban life.
Urbanization occurs not due to urban pull but due to rural push.
Poor quality of rural-urban migration leads to poor quality of urbanization.
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Distress migration initiates urban decay

Urbanization in India is a product of demographic explosion and poverty induced rural-urban migration.
Urbanization is occurring not due to urban pull but due to rural push. Globalization, liberalization, privatization
are addressing negative process for urbanization in India. Policy relates to proper urban planning where city
planning will consist of operational, developmental and restorative planning. Redirection of investment is
recommended to develop strong economic base for small and medium city neglected so far so that migration
flows are redirected to small and medium cities.

Census Definition of Urban Area

In Census of India, 2001 two types of town were identified:
a) Statutory towns: All places with a municipality, corporation, Cantonment board or notified town area
committee, etc. so declared by state law.
b) Census towns: Places which satisfy following criteria:-
i) a minimum population of 5000;
ii) atleast 75% of male working population engaged in non agricultural pursuits; and
iii) a density of population of atleast 400 persons per sq km.
Same definition that was used in census 2001 has been used during 2011 census also.
Thus the issues related to urbanization in India are discussed as follows:

1. Rural Urban Migration

Migration and urbanization are direct manifestations of the process of economic development in space,
particularly in the contemporary phase of globalization.
A large part of migration and urbanization in India have been linked to stagnation and volatility of agriculture
and lack of sectoral diversification within agrarian economy. The growth rates in agricultural production and
income has been noted to be low, unstable and disparate across regions over the past several decades, resulting
in lack of livelihood opportunities in rural areas. A low rate of infrastructural investment in public sector in
the period of structural adjustment - necessary for keeping budgetary deficits low - also have affected agriculture
adversely. This has led to out-migration from several backward rural areas, most of the migrants being absorbed
within urban informal economy.
But the capacity of the cities and towns to assimilate the migrants by providing employment, access to land,
basic amenities etc. are limited. The problem have acquired severity as migrants have shown high selectivity
in choosing their destinations (understandably linked with availability of employment and other opportunities),
leading to regionally unbalanced urbanization as also distortions in urban hierarchy.
Rural urban migration has often been considered the major factor for growth of slums in urban areas. United
Nations has warned that rapid urbanization and migration would lead to tripling of slum population by 2050,
hindering the attainment of the MDG targets.

2. Emergence of Slums
The most important problem in all cities has been housing the sudden and large scale influx of migrants from
rural areas to urban areas especially the metropolises and state capitals. Due to lack of housing, in every city
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almost fifty percent population lives in [Link] known as bustees (Basties) in India, favelas in Brazil,
katchi abadis in Pakistan and focos insalubres in Cuba, all have few characteristics in common:
Poor structural quality and durability of housing
Insufficient living areas (more than three people sharing a room)
Lack of secure tenure
Poor access to water

Data Concerning Slums

According to the Census data, 1.37 crore households, or 17.4% of urban Indian households lived in a slum
in 2011. The new data is difficult to compare with previous years, because the 2011 Census covers all 4,041
statutory towns in India, as compared to 2001 when only statutory towns with population over 20,000 were
covered. The 2001 data had set India's slum population at 15% of the total population.
Over 77% are permanent and 70% are owned, and not rented. Close to half are made up of just one room
and most are home to one married couple.
Over 70% of slum households get their water from a tap but just half get water inside their homes. Over 90%
get electricity and most use LPG for cooking; 70% have a TV and 10% even a computer. The census data seems
to indicate that the "more cellphones than toilets" line might be wrong for urban India: two out of three slum
households have a toilet within the premises, while slightly fewer have a mobile phone.
More than one in five urban households in Andhra Pradesh, Chhattisgarh, Madhya Pradesh, Odisha, West
Bengal and Maharashtra lives in a slum. In absolute terms, Maharashtra has the highest number of slum blocks
of any state - over 21,000 out of a total of just over 1 lakh for the whole country.
Over a third of India's slum population lives in its 46 million-plus cities. Of the metros, Mumbai has the
highest proportion of slum-dwelling households (41.3% of its population). Kolkata is next at nearly 30% with
Chennai not far behind. Delhi has 14.6% of its households living in slums while Bangalore is the best off of
the five metros at less than 10%.
Among all million-plus cities, Vishakhapatnam has the highest proportion of slums (44.1% of households).
However, Census authorities were treating with skepticism the unexplained spurt in slum populations across
cities in Andhra Pradesh.
There are various reasons for creation of slums of which the most important are as follows:
Increased urbanization leading to pressure on the available land and infrastructure, especially for the poor.
Natural increase in the population of urban poor and migration from rural areas and small towns to larger
cities.
Inappropriate system of urban planning which does not provide adequate space for the urban poor in the
City Master Plans.
Sky-rocketing land prices due to increasing demand for land and constraints on supply of land.
Absence of programmes of affordable housing for the urban poor in most States.
Lack of availability of credit for low income housing.
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Increasing cost of construction.

Although Land, Colonization and Slums are State subjects, the Central government has brought up with the
following schemes:
a) Jawaharlal Nehru National Urban Renewal Mission (JNNURM)which was launched on 3rd December,
2005 with the objectives of augmenting infrastructure facilities in cities and towns along with provision
of shelter and basic civic services to slum dwellers/urban poor. JNNURM aims at creating economically
productive, efficient, equitable and responsive Cities by a strategy of upgrading the social and economic
infrastructure in cities, provision of Basic Services to Urban Poor (BSUP) and wide-ranging urban sector
reforms to strengthen municipal governance in accordance with the 74th Constitutional Amendment Act,
1992.
b) Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)has been conceived for providing interest
subsidy on housing urban poor to make the housing affordable and within the repaying capacity of
Economically Weaker Section. The scheme encourages poor sections to avail of loan facilities through
Commercial Banks/HUDCO for the purposes of construction of houses and avail 5% subsidy in interest
payment for loans upto Rs. 1 lakh.
c) Rajiv Awas Yojana (RAY)has been launched in 2009, for the slum dwellers and the urban poor. This
scheme would aim to provide support for shelter & basic civic and social services for slum redevelopment
and for creation of new affordable housing stock to States that are willing to assign property rights to slum
dwellers. The Slum Free City/State Plan is envisaged to comprise of two parts Part I- Strategy to
redevelop existing slums and Part II Strategy for prevention of creation of slums, delineating the
development of affordable housing for the urban poor and revision to existing urban policy and programmes
for the prevention of slums. This plan would form the basis for providing assistance to the States, after
the scheme is approved.
d) National Slum Development Programme (NSDP), Night Shelters, Two Million Housing Scheme,
Accelerated Urban Water Supply Programme (AUWSP), and Low-Cost Sanitation provide for a
wide range of services to the urban poor including slum dwellers. They include identification of the urban
poor, formation of community groups, involvement of NGOs, self-help/thrift and credit activities, training
for livelihood, credit and subsidy for economic activities, housing and sanitation, environmental improvement,
community assets, wage employment and convergence of services.
e) Valmiki-Ambedkar Awas Yojana (VAMBAY) has been introduced in 2001-02 to provide a shelter or
upgrading the existing shelter to BPL people in urban slums. Twenty per cent of the total allocation under
VAMBAY is provided for sanitation and community toilets to be built for the urban poor and slum
dwellers.

3. Urban Transport
India is transiting from a developing to developed country with high pace of economic development. Urbanization
is too increasing at high pace as mega cities, cities and towns are providing better economic opportunities. Fast-
growing cities have nurtured business and industry, and have provided jobs and higher incomes to many
migrants from rural areas. Thus, it is important that cities function efficiently that their resources are used
to maximize the cities contribution to national income.
City efficiency largely depends upon the effectiveness of its transport systems, i.e., efficacy with which people
and goods are moved throughout the city. Poor transport systems hampers economic growth and development,
and the net effect may be a loss of competitiveness in both domestic as well as international markets.
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Thus proper development of urban transport to meet the needs of growing population is urgently needed in
country like INDIA. The public transport system helps in improving urban-rural linkage and improves access
of the rural/semi-urban population in the periphery to city centres for the purpose of labour supply without
proliferation of slums within and around cities.
The major objective of urban transport initiative is to provide efficient and affordable public transport. A
National Urban Transport Policy (NUTP) was laid down in 2006, with the objective of ensuring easy, accessible,
safe, affordable, quick, comfortable, reliable, and sustainable mobility for all. In order to provide better transport,
proposals for bus rapid transit system (BRTS) were approved.
The quality and quantity of roads had been improved by providing better signaling system, foot over bridges
for pedestrians, over bridges and flyovers to decrease travelling time, diverging heavy vehicles directly to
highways without accessibility to city roads, etc. The new concept of low floor buses has been introduced in
capital cities to control pollution as well as for improving the conditions of local government buses.
Metro rail projects as already present in Delhi/NCR has been further sanctioned for new cities as Chennai,
Bangalore, Mumbai as (monorail) to decrease the travelling time and environmental effects of vehicular emissions.

Urban Transport Problems:

Traffic injuries and fatalities pose a serious threat to the urban population. The causes can be poor
conditions of roads, burgeoning fleet of motor vehicles, unsafe drinking behavior, overcrowding of buses,
autos, etc.
Environmental pollution as Noise, air both are contributed by vehicles. BHARAT STAGE EMISSION
NORMS have been launched by government to decrease air pollution from vehicles. Switching public
transport to CNG has reduced the pollution content drastically.
Roadway congestion is probably the most visible, most pervasive, and most immediate transport problem
plaguing Indias cities on a daily basis. It affects all modes of transportation and all socio-economic groups.
Vast improvements are needed in Indias public transport systems, but the necessary funding is not
available Most buses and trains in small and medium size Indian cities are old and poorly designed,
inadequately maintained, dangerously overcrowded, undependable and slow.

Steps taken by GOI to improve urban transport are as follows:

I. Launch of Sustainable Urban Transport Project
The objective of the Sustainable Urban Transport Project is to promote environmentally sustainable urban
transport in India and to improve the usage of environment friendly transport modes through demonstration
projects in selected cities.

The project includes the following components:

a) COMPONENT ONE provides technical assistance to the Ministry of Urban Development (MoUD) to
improve the national, state and local capacity to implement the capacity building elements and the public
and non-motorized transport related aspects of national urban transport policy; and
b) COMPONENT TWO supports design and implementation of demonstration projects in six participating
cities (in five states), which will create models of sustainable transport solutions for other Indian cities to
replicate.
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The six cities, selected by Government of India (GOI) through a competitive selection process, include Pune
and Pimpri-Chinchwad (in Maharashtra), Naya Raipur (in Chhattisgarh), Jalandhar (in Punjab), Indore (in
Madhya Pradesh), and Mysore (in Karnataka).
The global environment facility (GEF) grant will finance technical assistance activities under the component
one and component two. The recipient and participating stated cities will finance other project activities
(including civil works) by utilizing Jawharlal Nehru National Urban Renewal Mission (JNNURM) grant and
other sources of funds (including an International Bank for Reconstruction and Development (IBRD) loan
being processed under a parallel loan project for three cities: Pune, Pimpri-Chinwad, and Naya Raipur).
II. National Urban Transport Policy
The National Urban Transport Policy (NUTP) was formulated in 2006, to integrate land use and transport
planning in cities, and to bring about comprehensive improvements in urban infrastructure.
While urban transport is a State responsibility under the Constitution, there is a need to guide State-level action
plans, particularly linked to land use planning, in order for transport plans to best support the key social and
economic activities of its resident.
Key objectives:
Incorporate urban transport as an important parameter in urban planning
Bring about more equitable allocation of road space with people rather than vehicles as the main focus
Encourage greater use of public transport and non-motorized modes of transport
Under the NUTP, each city with a population of over four million will be encouraged by the central government
to start planning for a mass transit system adopting a technology that would 'best suit the city requirements
in the next 30 years'. The policy also highlights the need for linking the transport plans with the geographical
constraints of its location, increased priority to public transport, non-motorised transport, and improving parking
facilities. The policy encourages the set up of Unified Metro Transport Authorities (UMTA)s in cities with a
million-plus population.
The Jawaharlal Nehru National Urban Renewal Mission (JNNURM), which is linked to the rules and regulations
under the NUTP, will invest in infrastructure projects in 63 cities in India.
III. Adoption of PPP policy
The Government of India is actively promoting the expansion of Public Private Partnership (PPP) activities
across all key infrastructure sectors including highways, ports, power and telecoms. Implementation of projects
under Public Private Partnership (PPP) has the following advantages-
a. Better quality since the concessionaire (private sector) is to maintain the road for the period of concession.
b. Early completion of the project, since the concessionaire could save interest and earn early toll (in the case
of BOT project)/additional annuity installments (in the case of Annuity project).
c. No costs overrun (price escalation).
d. The Client (Government/NHAI) does not have the burden of maintaining the highways.
e. Involving the private sector leads to greater efficiency.
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f. The private sector has more flexible procurement and decision-making procedures and therefore, it can
speed up implementation efforts.

IV. High Security rRegistration Plates

On the basis of the recommendations made by the Technical Standing Committee on Central Motor Vehicles
Rules, the Central Government had amended rule 50 of the Central Motor Vehicles Rules, 1989, mandating
introduction of new High Security Registration Plates, both in respect of new and in-use motor vehicles
throughout the country.
A High Security Registration Plate (HSRP) is a highly secure number plate aimed to bring about a uniform
pattern of displaying registration marks across the country.
The regular registration plates can be easily tampered with, making car thefts easy. Fancy number plates also
make it difficult to track down lawbreakers on the run. HSRPs are tamper-proof and non-replaceable, which
could prove to be a deterrent to car thieves. It will also aid in creating a computerised, national data of motor
vehicles - which currently is not the case as the records are created and maintained manually.

V. Rapid Transit System

A rapid transit, underground, subway, elevated railway, metro or metropolitan railway system is an electric
passenger railway in an urban area with a high capacity and frequency, and grade separation from other traffic.
Rapid transit systems are typically located either in underground tunnels or on elevated rails above street level.
Outside urban centers, rapid transit lines may run on grade separated ground level tracks.
Service on rapid transit systems is provided on designated lines between stations using electric multiple units
on rail tracks, although some systems use guided rubber tyres, magnetic levitation, or monorail. They are
typically integrated with other public transport and often operated by the same public transport authorities.
Rapid transit is faster and has a higher capacity than trams or light rail (but does not exclude a fully grade
separated LRT), but is not as fast or as far-reaching as commuter rail.

Major Rapid Systems in India are:

a) Kolkata Metro
The Kolkata Metro or Calcutta Metro is a mass rapid transit system serving the city of Kolkata and the
districts of South 24 Parganas and North 24 Parganas in Indian state of West Bengal. The network consists
of one operational line (Line 1). It was the first such form of transportation in India, opening commercial
services in 1984.

Benefits:
Requires 1/5th energy per passenger km compared to road-based transport system.
Causes less noise, no air pollution and eco friendly transport system.
Occupies no road space if underground and only about 2.60 mtrs width of the road if elevated.
More reliable, comfortable and safer than road based systems.
Reduces journey time.
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b) Mono Rail in Mumbai

Considering the increase in population, increased travel demand and narrow road networks running through
congested structures, there is a need of a system which will occupy less space as well as reduce travel time.
With the objective, to support public rapid transit system such as sub-urban rail system and metro rail system
and where public rapid transit system is not available or impossible to provide such system and where widening
of roads is not possible due to structures on either sides, Mono Rail system is proposed to be implemented
in "City of Dreams" Mumbai. Once completed it will be world's second longest Monorail corridor.
Larsen and Toubro along with Scomi has received the contract to build and operate the monorail.
c) Delhi Metro
The Delhi Metro is a rapid transit system serving Delhi, Gurgaon, Noida and Ghaziabad in the National Capital
Region of India. It has become the "life line" of Delhi as people are dependent on Delhi Metro for commuting
to different places within the city. Delhi Metro Project has been recognized all over the world for its specialty
in terms of a hi-tech rail and better equipped transport system. The project is under the Delhi Metro Rail
Corporation, DMRC.
Planning for the metro started in 1984, when the Delhi Development Authority and the Urban Arts Commission
came up with a proposal for developing a multi-modal transport system for the city. The Government of India
and the Government of Delhi jointly set up the Delhi Metro Rail Corporation (DMRC) in 1995. Construction
started in 1998, and the first section, on the Red Line, opened in 2002, followed by the Yellow Line in 2004,
the Blue Line in 2005, its branch line in 2009, the Green and Violet Lines in 2010 and the Delhi Airport Metro
Express in 2011.
Metro rail in the city has reduced the traffic to some extent and the pollution level has certainly declined.
Because of this only Delhi Metro has been certified by the United Nations as the first metro rail-based system
in the world to get carbon credits for contributing to the fight against climate change by help reducing pollution
levels in the city by 6.3 lakh tons every year. It also has earned carbon credits of worth 47 crores annually for
the next seven years.
A carbon credit is a term for any tradable certificate or permit representing the right to emit one tonne of
carbon dioxide. Carbon credits and carbon markets are a component of national and international attempts to
mitigate the growth in concentration of greenhouse gases.
Thus, the DMRC has helped in reduction in emission of harmful gases into the atmosphere and the United
Nations-body administering the Clean Development Mechanism (CDM) under the Kyoto Protocol has certified
carbon credits to DMRC for reducing emissions.
d) Namma Metro
Namma Metro also known as Bengaluru Metro is a rapid transit rail system for the city of Bengaluru,
Karnataka, India. The agency responsible for its implementation is the Bangalore Metro Rail Corporation Ltd
(BMRCL). The first stretch between Baiyyappanahalli and M.G. Road was inaugurated on October 20, 2011.

Salient Features:
All the Metro trains are Wi-Fi enabled (the first metro in India to have this feature), so passengers can use
laptops, tablets as well as mobile internet. Passengers also have emergency voice communication with train
staff through a speaker system. Passengers are provided with a call button to communicate anything to the
driver or control center during an emergency.
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Metro stations will have Powerheart Automated external defibrillator (AED) to protect its commuters against
death from sudden cardiac arrest. Powerheart AED is used for emergency treatment of victims exhibiting
symptoms of sudden cardiac arrest. The installation of AEDs will be followed by a certified training for a group
of staff members of BMRC. The devices are manufactured by Opto Circuits (India) Ltd.

4. Waste Disposal
Removing garbage, cleaning drains and unclogging sewers are the main jobs of municipalities and municipal
corporations in Indian cities. In most cities, the municipal service for the collection and transportation of urban
solid wastes comprises three separate functions as follows:
sweeping, curbside and domestic waste collection from garbage bins.
Transportation by handcarts to large or road collection points, which may be open dumps.
Transportation by vehicles to the disposal sites.
The weaknesses of the existing system of solid waste management are: (i) the professional and managerial
capacities of the municipal bodies are limited and this is more pronounced in case of smaller cities; (ii) no
charges are levied for garbage collection or disposal, nor are there any incentives for reducing garbage generation
or recycling waste; (iii) no separate costing is done for this function; (iv) indiscriminate use of plastic bags and
goods; (v) recourse to modern technology is rare and; (vi) segregation of garbage at the source is not enforced.
Thus, Indian waste management system is starved of resources to tackle the increasing demands associated
with growing urbanisation. Due to budgetary constraints, inadequate equipment and poor planning, house-to-
house collection is very rare in India, particularly in certain low-income areas where waste is not collected at
all. It is estimated that upto 30-40 per cent of disposed solid wastes are left uncollected. The areas, which are
not serviced, are left with clogged sewers and litter which create serious health problems for the resident
population.
Main objective of disposal options is to ensure maximum safety to the environment which require administrative,
technical, political, social and economic support. But most urban solid waste in Indian cities and towns is landfilled
and dumped but there are various treatment options also such as:

Recycling & Reuse

The processes, by which materials otherwise destined for disposal are collected, reprocessed or remanufactured
and are reused. The separation for recycling takes place at households, community bins, open dumps and even
in final disposal yards. The recycling business is a complicated chain of operations and varies from place to
place. The recycling and reuse (the use of a product more than once in its same form for the same or another
purpose) sector of waste management in cities of Asian developing countries is potentially high. Its economic
assessment is a difficult task since it is practiced in an informal manner.
Biogas
Biogas contains approximately 60:40 mixture of methane (CH4), and carbon dioxide (CO2) produced by the
anaerobic fermentation of cellulose biomass materials - simultaneously generating an enriched sludge fertilizer
- with an energy content of 22.5 MJ/m3, clean gaseous fuel for cooking, for running engines for shaft and
electrical power generation with little or no pollution. Many cellulose biomass materials are available in urban
solid wastes and may be utilized to produce eco-friendly renewable energy, contributing to the clean waste
management. In India, biogas production is currently practiced in many places in rural areas (with cattle dung)
and few places in urban areas (with sewage).
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Sanitary Landfilling
Sanitary landfill is a fully engineered disposal option, which avoids harmful effects of uncontrolled dumping
by spreading, compacting and covering the wasteland that has been carefully engineered before use. Through
proper site selection, preparation and management, operators can minimize the effects of leachates (polluted
water which flows from a landfill) and gas production both in the present and in the future. This option is
suitable when the land is available at an affordable price. Human and technical resources available are to operate
and manage the site.

Composting
Composting is a biological process of decomposition carried out under controlled conditions of ventilation,
temperature, moisture and organisms in the waste themselves that convert waste into humus-like material by
acting on the organic portion of the solid waste. If carried out effectively, the final product is stable, odour-
free, does not attract flies and is a good soil conditioner. Composting is considered when biodegradable waste
is available in considerable fraction in the waste stream and there is use or market for compost. Centralised
composting plant for sector may only be undertaken if adequate skilled manpower and equipment are available,
hence at household level and small level composting practices could be effective which needs the peoples
awareness.

Incineration
Incineration is the controlled burning of waste in a purpose built facility. The process sterilizes and stabilizes
the waste. For most wastes, it will reduce its volume to less than a quarter of the original. Most of the
combustible material is converted into carbon dioxide and ash. An extensive sample programme conducted in
India reveals that most of the waste had a calorific value of just 3350 joules/g compared with 9200 joules/
g in high income countries. Incineration may be used as a disposal option, only when landfilling is not possible
and the waste composition is of high combustible (i.e., self-sustaining combustible matter which saves the
energy needed to maintain the combustion) paper or plastics. It requires an appropriate technology, infrastructure,
and skilled manpower to operate and maintain the plant. In Indian cities, Incineration is generally limited to
hospital and other biological wastes and mostly others are either landfilled or dumped.
Much research needs to be done on the disposal of various types of solid waste without causing any harm to
the environment or the people.

5. Water Supply, Drainage and Sanitation

According to the 2011 Census, amenities available with the households has been listed as follows: 87% of
households are using tap, tube well, hand pump and covered well as the main source of drinking water while
43.5 percent use tap water. Only 47% of households have source of water within the premises while 36% of
households have to fetch water from a source located within 500 m in rural areas/100 m in urban areas and
17% still fetch drinking water from a source located more than 500 m away in rural areas or 100 m in urban
area.
No city has round the clock water supply in India. Intermittent supply results in a vacuum being created in
empty water lines which often suck in pollutants through leaking joints. Many small towns have no main water
supply at all and are dependent on the wells. To overcome this problem Municipal bodies must focus on
increasing operational efficiencies through reduction in pilferage, improving efficiency of staff and use of
technology. Further the municipal bodies should meter all water connenction within a time frame. Installing a
hierarchy of metering system could help in identifying pilferage. Payment of water charges should be made
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hassle free through use of Information Technology. As far as possible all water connections should be metered,
and if necessary targeted subsidy should be provided to the poorest sections.
Drainage situation is equally bad. Around half of the households have drainage connectivity with two-third
have the open drainage and one-third has the closed [Link] of the non-existence of a drainage
system, large pools of stagnant water can be seen in city even in summer months.
Further the sanitation problem is also high due to lack of toilet facilities in slums areas. According to the
census, 47% of the households have latrine facility within premises with 36% households have water closet and
9% households have pit latrine. Thus, practice of open defecation is prevalent. Human waste is also responsible
for spreading of water born diseases like typhoid, cholera, shigellosis, amebic dysenteries, diarrhea, etc.
The practice of open defecation in India comes from a combination of factors the most prominent of them
being the traditional behavioural pattern and lack of awareness of the people about the associated health
hazards.
Thus, government has come out with Swatchch Bharat Mission which would attempt to banish open defecation
within a decade. The components of the programme are:
a) Construction of individual sanitary latrines for households below the poverty line with subsidy (80%)
where demand exists.
b) Conversion of dry latrines into low-cost sanitary latrines.
c) Construction of exclusive village sanitary complexes for women providing facilities for hand pumping,
bathing, sanitation and washing on a selective basis where there is no adequate land or space within houses
and where villagepanchayatsare willing to maintain the facilities.
d) Setting up of sanitary marts.
e) Total sanitation of villages through the construction of drains, soakage pits, solid and liquid waste disposal.
f) Intensive campaign for awareness generation and health education to create a felling of necessity need for
personal, household and environmental sanitation facilities.
Further a new technology Bio-toilets have been introduced which is suitable for any area/ application in
India. Bio-Digester Toilet is a decomposition mechanized toilet system by means of which the sludge (Human
Waste), the fecal matter is decomposed to bits in the digester tank using a specific high graded bacteria further
converting them into methane and water, discharged further to the desired surface. The Bio-digester toilet is
total maintenance-free system & does not require any sewage system. The specific high graded bacteria involved
in these bio-digester toilets carries on to further auto generation on their own because of their supreme quality.
Bio-toilet technology is based on anaerobic biodegradation of organic waste by unique microbial consortium
and works at a wide temperature range. The bacterial consortium degrades night soil at temp as low as -20
degree C and produces colorless, odorless and inflammable gas containing 50 70% methane.
This bacterial consortium has been made through acclimatization, enrichment and bio-augmentation of cold-
active bacteria collected from Antarctica and the other low temperature areas.
Salient features of bio-toilet:
a) Suitable for sub zero temperature of Himalayan Region, Glaciers, Railway coaches, Buses, Highways,
Remote areas, sea ports, Mining area, metro cities, etc.
b) Suitable for Mobile Toilet applications
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c) 0% maintenance free, continuous biological process.

d) Complete elimination of pathogens.
e) Economically viable.
f) No dependence on the limited and costly conventional energy sources.
g) Can be installed and made operational in 12 hours only.
h) Inoculums charging is only once during the entire life of Bio Toilet.
i) No need of connectivity to the sewage line, septic tank. No disposal of sludge is required.
j) Routine cleaning chemicals like phenyl, soap, kerosene, etc. do not harm Bio Toilet or the inoculums.

6. Electronic Waste
Anew type of hazardous waste has come up in recent years, namely electronic waste. E-waste consists of
all waste from electronic and electrical appliances which have reached their end- of- life period or are no
longer fit for their original intended use and are destined for recovery, recycling or disposal. It includes
computer and its accessories monitors, printers, keyboards, central processing units; typewriters, mobile
phones and chargers, remotes, compact discs, headphones, batteries, LCD/Plasma TVs, air conditioners,
refrigerators and other household appliances.
The composition of e-waste is diverse and falls under hazardous and non-hazardous categories. Broadly,
it consists of ferrous and non-ferrous metals, plastics, glass, wood and plywood, printed circuit boards,
concrete, ceramics, rubber and other items. Iron and steel constitute about 50% of the waste, followed by
plastics (21%), non-ferrous metals (13%) and other constituents. Non-ferrous metals consist of metals like
copper, aluminium and precious metals like silver, gold, platinum, palladium and so on. The presence of
elements like lead, mercury, arsenic, cadmium, selenium, hexavalent chromium, and flame retardants beyond
threshold quantities make e-waste hazardous in nature. It contains over 1000 different substances, many of
which are toxic, and creates serious pollution upon disposal. Obsolete computers pose the most significant
environmental and health hazard among the e-wastes.
There are 10 States that contribute to 70 per cent of the total e-waste generated in the country, while 65 cities
generate more than 60 per cent of the total e-waste in India. Among the 10 largest e-waste generating States,
Maharashtra ranks first followed by Tamil Nadu, Andhra Pradesh, Uttar Pradesh, West Bengal, Delhi,
Karnataka, Gujarat, Madhya Pradesh and Punjab. Among the top ten cities generating e-waste, Mumbai
ranks first followed by Delhi, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Surat and Nagpur.
The main sources of electronic waste in India are the government, public and private (industrial) sectors,
which account for almost 70 per cent of total waste generation. The contribution of individual households
is relatively small at about 15 per cent; the rest being contributed by manufacturers. Though individual
households are not large contributors to waste generated by computers, they consume large quantities of
consumer durables and are, therefore, potential creators of waste.

E-waste management system in India

Most of the activities right from the collection, transportation,segregation,dismantling, etc.,are done by
unorganized sectors manually. Being a rich source of reusable and precious material, E-waste is also agood
source of revenue generation for many people in India. The big portion (rag
pickers)oftheIndianpopulationearntheir livelihood by collecting and selling the inorganic waste-
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likeplastics,polythenebags,glassbottles, cardboards,paper, other ferrousmetals,etc. Inabsence ofthe

adequatetechnologies and equipment, most of the techniques used for the recycling/treatments of E-waste are
very raw and dangerous. Improper recycling and disposal operations found in different cities of India often
involve the open burning of plastic waste, exposure to toxic solders, dumping ofacids, and widespread general
dumping. As a result,pollutantsaredumpedintotheland,air, andwater,whicharethecause ofserious
environmental problems in India. Also, the labours andworkersemployedinthedismantlingand recycling units
arepoorlyliterateanduneducated,lackingthebasicknowledgeaboutthe serious occupational and health risks
associated with the operations. Most of the time, dismantling and recycling operations are performed by the
workers without proper Personnel Protection Equipment. Mostly hammers, chisels, hand drills, cutters, electric
torch/burners, and sometime electric drills were used for dismantling. These operations are carried out in very
congested places in the center of cities and slums. Mostly, the dismantling and recycling areas are without any
proper lighting and [Link] infrastructure, the workers and laborers
working in such areas are prone to serious occupational health hazards
Putting the onus ofre-cyclingof electronic wastes (e-waste) on the producers, the Ministry of Environment and
Forest (MoEF) has for the first time notifiede-waste management rules. Under the new rules, producers will
have to make consumers aware about the hazardous components present in the product. Also, instructions for
consumers for handling the equipment after its use along with the dos and donts. They will also have to give
information booklets to prevent e-waste from being dropped in garbage bins.
However, according to the rules, bulk consumers such as enterprises and government will be responsible for
recycling of the e-wastes generated by them. The bulk users have to ensure that the e-waste generated by them
is channelized to authorised collection centres or is taken back by the producers.
They also have to maintain records of e-wastes generated by them and make such records available withState
Pollution Control Boardsor thePollution Control Committees. The State Pollution Control Board will be
required to prepare and submit to the Central Pollution Control Board (CPCB) an annual report (based on the
data received by consumers) with regard to implementation of these rules, by September 30 of every year. On
receiving which, the CPCB will have to prepare a consolidated annual review on management of e-waste and
forward it to the government along with its recommendations by December 30 of every year.

7. Urban Poverty
Urban poverty is a major challenge before the urban managers and administrators of the present time. Though
the anti-poverty strategy comprising of a wide range of poverty alleviation and employment generating
programmes has been implemented but results show that the situation is grim. Importantly, poverty in urban
India gets exacerbated by substantial rate of population growth, high rate of migration from the rural areas and
mushrooming of slum pockets. Migration alone accounts for about 40 per cent of the growth in urban
population, converting the rural poverty into urban one.
Moreover, poverty has become synonymous with slums. The relationship is bilateral i.e. slums also breed
poverty. This vicious circle never ends. Most of the worlds poor reside in India and majority of the poor live
in rural areas and about one-fourth urban population in India lives below poverty line. If we count those who
are deprived of safe drinking water, adequate clothing, or shelter, the number is considerably higher.
Further, the vulnerable groups such as Scheduled Castes, Scheduled Tribes, minorities, pavement dwellers etc.,
are living in acute poverty. Housing conditions in large cities and towns are depicting sub human lives of slum
dwellers. With the reconstruction of poverty alleviation programmes in urban India, it is expected that social
and economic benefits will percolate to the population below the poverty line. However, eradication of poverty
and improving the quality of life of the poor, remains one of the daunting tasks.
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Alleviation of urban poverty necessarily calls for identification of the urban poor to be able to chalk out an
appropriate strategy. Thus with the objective of putting in place a uniform criterion to identify the BPL
households in urban areas so that objectivity and transparency is ensured in delivery of benefits to the target
groups, the Planning Commission constituted an Expert Group under the Chairmanship of Professor S.R.
Hashim.
The Expert Group decided that poverty in Urban areas could be best captured by identifying three categories
of vulnerabilities, i.e., residential vulnerability, occupational vulnerability and social vulnerability that the urban
poor is subjected to. It was agreed to evolve a methodology to identify urban poor based on the various
dimensions of these three areas of vulnerabilities to be qualified by a number of indicators which would also
give an idea of the depth/intensity of the vulnerability.
Based on the above broad approach, the Expert Group recommends a three stage identification process (i)
Automatic Exclusion ; (ii) Automatic Inclusion ; and (iii) Scoring Index.
Stage 1: Automatic Exclusion
If the number of dwelling rooms exclusively in possession of the household is 4 and above, that household
will be excluded. Secondly, the household possessing any one of the assets, i.e., 4 wheeler motorized vehicle,
AC Set and computer or laptop with internet will also be excluded. Besides the households possessing any
three of the following four assets, i.e., refrigerator, telephone (landline), washing machine, two wheeler motorized
vehicle will also be excluded.
Stage 2: Automatic Inclusion
Households facing various kinds of deprivations and vulnerabilities, viz., residential, social and occupational
vulnerabilities would be automatically included in the BPL List.
a) Under residential vulnerability,if the household is houseless or the household has a house with roof and
wall made of plastic/polythene or the household having only one room or less with the material of wall
being grass, thatch, bamboo, mud, un-burnt brick or wood and the material of roof being grass, thatch,
bamboo, wood or mud, then that will be automatically included.
b) Under occupational vulnerability, the household having no income from any source; any household
member (including children) engaged in a vulnerable occupation like beggar/rag picker, domestic worker
(who are actually paid wages) and sweeper/sanitation worker/mali); and all earning adult members in a
household are daily wagers or irregular wagers, then that household should be automatically included.
c) Under social vulnerability, if there is no member of the household aged 18 years and above (Child-headed
household) or there is no able-bodied person aged between 18 and 60 years in the household or all earning
adult members in a household are either disabled, chronically ill or aged more than 65 years, then that
household should be automatically included.

Stage 3: Scoring Index

In the third and final stage, the remaining households will be assigned scores from 0 to 12 based on various
indicators of residential, social and occupational vulnerabilities. Those households with scores from 1 to12 are
to be considered eligible for inclusion in the BPL List in the increasing order of the intensity of their deprivations
meaning thereby that those with higher scores are more deprived.
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GOI Initiatives to Curb Urban Poverty

National Urban Livelihood Mission
National Urban Livelihoods Missionhas been launched by restructuring of the centrally sponsored scheme of
Swarna Jayanti Shahari Rozgar Yojana (SJSRY) in the 12th Plan.
The Mission of NULM is to reduce poverty and vulnerability of the urban poor households by enabling them
to access gainful self-employment and skilled wage employment opportunities, resulting in an appreciable
improvement in their livelihoods on a sustainable basis, through building strong grassroot level institutions of
the poor. The mission would also aim at providing shelter equipped with essential services to the urban
homeless in a phased manner. In addition, the Mission would also address livelihood concerns of the urban
street vendors also by facilitating access to suitable spaces, institutional credit, social security and skills to the
urban street vendors for accessing emerging market opportunities.
NULM rest on the foundation of community mobilization and women empowerment. NULM envisages
universal mobilisation of urban poor households into thrift and credit-based Self-Help Groups (SHGs) and their
federations/collectives. These groups will serve as a support system for the poor, to meet their financial and
social needs.
Under the Mission, City Livelihood Centres (CLCs) are to be established in Mission cities to provide a
platform whereby the urban poor can market their services and access information on self-employment, skill
training and other benefits.
NULM will target the urban poor who are occupationally vulnerable for Employment through Skills Training
& Placement (EST&P). The Mission will focus on providing assistance for development/upgrading of the skills
of the urban poor so as to enhance their capacity for self-employment and salaried employment. It intends to
provide training to the urban poor as per the skill demand from the market, so that they can set up self-
employment ventures or secure salaried employment.
Through the Self-Employment Programme (SEP), NULM will provide financial assistance to individuals and
groups of urban poor to set up gainful self-employment/micro-enterprise ventures.
The support to Urban Street Vendors (USV) component will cover a socio-economic survey of street vendors,
development of pro-vending urban planning and vendors markets, credit enablement of vendors, skill development
and micro-enterprise development and convergence under various schemes of the Government.
NULM would aim at providing shelter for the urban homeless equipped with essential services. The shelters
should be permanent all-weather 247 shelters for the urban homeless. For every one lakh urban population,
provisions will be made for permanent community shelters for a minimum of one hundred persons. Depending
upon local conditions each shelter could cater to between 50 and 100 persons.

Jawaharlal Nehru National Urban Renewal Mission

JNNURM aim is to encourage reforms and fast track planned development of identified cities. Focus is to be
on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability
of ULBs/ Parastatal agencies towards citizens.

Objectives of the Mission

i. The objectives of the JNNURM are to ensure that the following are achieved in the urban sector;
ii. Focussed attention to integrated development of infrastructure services in cities covered under the Mission;
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iii. Establishment of linkages between asset-creation and asset-management through a slew of reforms for
long-term project sustainability;
iv. Ensuring adequate funds to meet the deficiencies in urban infrastructural services;
v. Planned development of identified cities including peri-urban areas, outgrowths and urban corridors leading
to dispersed urbanisation;
vi. Scale-up delivery of civic amenities and provision of utilities with emphasis on universal access to the
urban poor;
vii. Special focus on urban renewal programme for the old city areas to reduce congestion; and
viii. Provision of basic services to the urban poor including security of tenure at affordable prices, improved
housing, water supply and sanitation, and ensuring delivery of other existing universal services of the
government for education, health and social security.

Rajiv Awaas Yojana

With an aim of creating a slum-free India Rajiv Awas Yojana (RAY) was launched to facilitate affordable
housing for slum dwellers. The Centre would provide financial assistance to States willing to assign property
rights to slum dwellers for provision of shelter and basic civic and social services for slum re-development and
for creation of affordable housing stock under the RAY scheme.
The scheme is expected to cover about 250 cities, mostly with population of more than one lakh across the
country by the end of 12th Plan (2017).
The Centre will bear 50 per cent of the cost of slum re-development. To encourage creation of affordable
housing stock, the existing schemes of Affordable Housing in Partnership and Interest Subsidy Scheme for
Housing the Urban Poor have been dovetailed into RAY.
In order to encourage private sector participation in slum re-development, Central assistance can be used by
the States and cities towards viability gap funding.
Credit enablement of the urban poor and the flow of institutional finance for affordable housing is an important
component of the scheme. The government has agreed to establish a mortgage risk guarantee fund to facilitate
lending the urban poor for housing purposes with an initial corpus of Rs. 1000 crore.
The scheme has been designed on the basis of experience of the Jawaharlal National Urban Renewal Mission
(JNNURM) sub-mission of Basic Services to the Urban Poor (BSUP) and the Integrated Housing and Urban
Development Programme (HSDP). Under these schemes, government had sought to take action for inclusive
urban growth by enabling re-development of slums with basic amenities and decent housing with security of
tenure.
The inclusive city growth process will lead to enactment of productivity at the bottom of the pyramid and will
sustain the contribution of cities to the Gross Domestic Product.

8. Haphazard Growth of Real Estate Sector

The real estate sector is a critical sector of India economy. It has a huge multiplier effect on the economy and
therefore, is a big driver of economic growth. It is the second-largest employment-generating sector after
agriculture. Growing at a rate of about 20% per annum and this sector has been contributing about 5-6% to
Indias GDP. Not only does it generate a high level of direct employment, but it also stimulates the demand
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in over 250 ancillary industries such as cement, steel, paint, brick, building materials, consumer durables and
so on.
But the most important obstacle to sustainable growth of cities is the total lack of regulation of this sector,
nowadays it is laced with black money, corruption, red tapism and land mafias and corruption. It is also
recognised that existing laws on land registry, transfer of property, contracts and related matters are themselves
inadequate in this context and are implemented by different authorities and they cast no responsibility (or
liability) on the builder/developer for observing certain core norms in the contracts with home-buyers. In recent
years, considerable progress has been made in setting up empowered regulatory bodies for the financial sector
for investments in corporates, companies and mutual funds.
The Real Estate (Regulation and Development) Bill, 2013 has been introduced to curb the issues related to
unsustainable ubran real estate sector. It aims to provide a uniform regulatory environment in the real estate
sector which is laced with black money, corruption, red tapism, land mafias and corruption. The core objective
of this Bill are twofold, i.e., to ensure sale of immovable properties in an efficient and transparent manner and
to protect the interest of consumers in the real estate sector.

Major Highlights of the Bill

The provisions of this Bill are applicable only to residential projects.
Prior Approval before Launch and Advertisement-This bill contains provisions restricting launch of
projects or advertisements unless all approvals are received and all the agents are not expected to facilitate
the sale of immovable property which are not registered with the Authority and to maintain books of
accounts, records and documents.
Mandatory Deposit of Fund-It makes mandatory upon the promoters to deposit 70 per cent or such
lesser per cent as notified by the government to cover the construction cost of the project of funds in a
separate bank account to ensure timely completion and prevent fund diversion.
Registration of Real Estate Project and Real Estate Agent- The bill also ensures mandatory registration
of real-estate projects and real-estate agents with the Authority, except when the land proposed to be
developed is less than 1000 square meters. This provision is likely to provide another level of protection
to buyers while also preventing concerns regarding money laundering by the non-organised broker community.
Disclosing of Mandatory Information- The real - estate agents/developers are now required to disclose
material information such as details of the promoters, project, layout plan, plan of development works,
land status, carpet area (as opposed to super area) and number of the apartments booked, status of the
statutory approvals and disclosure of proforma agreements, names and addresses of the real estate agents,
contractors, architect, structural engineer etc on the Authoritys website.
Restriction on Taking Advance- Prohibition on taking more than ten percent as advance from the buyers
without a written agreement and also the developers/ agents are required to refund to buyers the full
amount in case of delay of projects.
Liability/Penalty The Bill prescribed for Civil and criminal liability for the contravention of various
provisions of the Bill, such as, imprisonment up to three years or a penalty up to ten per cent of the
estimated cost of the real estate project for projecting out misleading information in advertisements or
prospectus.
Real Estate Regulatory Authority The Bill give the power to establish one or more Real Estate Regulatory
Authority in each State/UT, or one Authority for two or more States/UT, by the Appropriate Government,
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specifying their functions, powers, and responsibilities to exercise oversight of real estate transactions. The
Bill shall also appoint adjudicating officers to settle disputes between parties, and to impose penalty and
interest.

Real Estate Regulatory Authority Powers and Functions

The Authority will act as a nodal agency to co-ordinate efforts regarding development of the real estate
sector and render necessary advice to the appropriate Government to ensure the growth and promotion
of a transparent, efficient and competitive real estate sector.
The authority shall ensure compliance of the obligations cast upon the promoters and the allottees and
to cause an inquiry to be made into compliance of its orders or directions made in exercise of its powers.
To host and maintain a website of records of all real estate projects within its jurisdiction as database, with
all details as provided in the application for registration under the Act, for projects, for which registration
has either been granted or cancelled as the case may be.
To make recommendations on protection of interest of the allottees, measures to improve the processes
and procedures for clearance and sanction of building plans and development projects from the Competent
Authority; and construction and maintenance of structurally safe, environmentally sustainable, and low
cost buildings, apartments and properties and any other form of assistance or advocacy to promote
competition and efficiency in the real estate sector.
Regulatory Authority shall have the power to call for information, conduct investigations, and make
inquiry in the affairs of promoters where it considers expedient so to do it.
Regulatory Authority has the power to Issue directions to promoters and allottees from time to time and
such directions are binding on all concerned.
Powers of the Regulatory Authority consequent upon lapse of or cancellation of registration of the
promoter to recommend to the Competent Authority to have the remaining development works, carried
out from the proceeds of the enforcement of bank guarantee and recover charges incurred on the said
development works due from the promoter.
The Regulatory Authority shall have powers to regulate its own procedure and shall be guided by the
principles of natural justice and shall have all the powers as are vested in a Civil Court under the Code
of Civil Procedure,1908.

Penalties
Any promoter who fails to register in accordance with the provisions of the Real Estate (Regulation and
Development) Bill, 2013 shall be punishable with imprisonment for a term which may extend to three
years, or a penalty which may extend to ten per cent of the estimated cost of the real estate project, or
with both.
If any promoter contravenes any other provisions of this bill, other than that provided above, or the Rules
or Regulations made, he shall be liable to a penalty which may extend to five percent of the estimated
cost of the real estate project.
Any promoter who willfully fails to comply with orders of the Authority shall be liable to a minimum
penalty of one lakh rupees for every day during which such default continues, which may extend to five
percent of the estimated cost of the real estate project.
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Any promoter who willfully fails to comply with the orders of Appellate Tribunal shall be punishable with
imprisonment for a term which may extend to one year or with a penalty which may extend to ten percent
of the estimated cost of the real estate project, or with both.
# The Bill is pending right now.

Way forwardto Tackle Issues Related to Urbanization

India needs to work on several areas to manage its urbanization. The following are perhaps the most important:
Inclusive cities, urban governance, funding, planning, capacity building and low-income housing. India also
needs to start a political process where the urban issues are debated with evolution of meaningful solutions.
The areas are:

Inclusive Cities
The poor and lower income groups must be brought into the mainstream in cities. Regulations intended to
manage densities and discourage migration both limit the supply of landand require many households to
consume more land than they would choose. This drives urban sprawl and pushes up the price of land and
the cost of service delivery for all. High standards for parking, coverage limits, setbacks, elevators, road widths,
reservations for health centers schools, etc.(often not used) prevent the poor from choosing how much to
consume of the costliest resource (urban land) to put a roof over their heads, and comply with legal requirements.
Informality is now the only path to affordable housing for the bulk of the population in Indias cities. But
informality implies illegality and therefore vulnerability. While lower income groups pay dearly for shelter and
servicesthey are bereft of normal property rights protections and their investments are thus far riskier than
those of the well off. They must instead depend on the good will of bureaucrats and politiciansto safeguard
their homes and places of business. These barriers to healthy urbanization come not only at a high human cost,
but take a toll on productivity. Chronic informality discourages the very investments in education, health and
housing improvements; the lower classes need to improve their own lot and contribute more to the national
economy.

Local Governance
Meaningful reforms have to happen that enable true devolution of power and responsibilities from the states
to the local and metropolitan bodies according to the 74th Amendment. This is because by 2030, Indias
largest cities will be bigger than many countries today. Indias urban governance of cities needs an over-haul.
Indias current urban governance is in sharp contrast to large cities elsewhere that have empowered mayors with
long tenures and clear accountability for the citys performance. India also needs to clearly define the relative
roles of its metropolitan and municipal structures for its 20 largest metropolitan areas. With cities growing
beyond municipal boundaries, having fully formed metropolitan authorities with clearly defined roles will be
essential for the successful management of large cities in India.
Local Body Financing
Devolution has to be supported by more reforms in urban financing that will reduce cities dependence on the
Centre and the states and unleash internal revenue sources. Consistent with most international examples, there
are several sources of funding that Indian cities could tap into, to a far greater extent than today: Monetizing
land assets; higher collection of property taxes, user charges that reflect costs; debt and public-private partnerships
(PPPs); and central/state government funding. However, internal funding alone will not be enough, even in
large cities. A portion has to come from the central and state governments. Here one can use central schemes
such as JNNURM and Rajiv Awas Yojana but eventually India needs to move towards a systematic formula
rather than ad-hoc grants. For large cities with deep economies, this might mean allowing them to retain 20
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percent of goods and services tax (GST) revenues. This is consistent with the 13th Central Finance Commissions
assessment that GSTa consumption-based tax that creates local incentives for growth and that is therefore
well suited for direct allocation to the third tier of government. For smaller cities, however, a better option
would be to give guaranteed annual grants.

Urban Planning
India needs to make urban planning a central, respected function, investing in skilled people, rigorous fact base
and innovative urban form. This can be done through a cascaded planning structure in which large cities have
40-year and 20-year plans at the metropolitan level that are binding on municipal development plans. Central
to planning in any city is the optimal allocation of space, especially land use and Floor Area Ratio (FAR)
planning. Both should focus on linking public transportation with zoning for affordable houses for low-income
groups. These plans need to be detailed, comprehensive, and enforceable.

Local Capacity Building

A real step-up in the capabilities and expertise of urban local bodies will be critical to devolution and improvement
of service delivery. Reforms will have to address the development of professional managers for urban
management functions, who are in short supply and will be required in large numbers. New innovative approaches
will have to be explored to tap into the expertise available in the private and social sectors. India needs to build
technical and managerial depth in its city administrations. In the Indian Civil Services, India has a benchmark
for how to build a dedicated cadre for [Link] now needs to create an equivalent cadre for cities, as
well as allow for lateral entry of private-sector executives.
Affordable Housing
Affordable housing is a particularly critical concern for low-income groupsin the absence of a viable model
that caters to their needs, India can meet the challenge through a set of policies and incentives that will bridge
the gap between price and affordability. This will enable a sustainable and economically viable affordable
housing model for both government housing agencies and as well as private developers. India also needs to
encourage rental housing as an option particularly for the poorest of the poor, who may not be able to afford
a home even with these incentives.
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