Transforming Cities

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Broad Policy –

  •  A comprehensive programme of urban renewal
  • A massive expansion of social housing in towns and cities, paying particular attention to the needs of slum-dwellers.
  • Forced eviction and demolition of slums will be stopped and while undertaking urban renewal, care will be taken to see that the urban and semi-urban poor are provided housing near their place of occupation.
  • The 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.
  • Subsidies in the provision of infrastructure will be made explicit and provided through the budget of the central and state governments.
  • Focussed attention to integrated development of infrastructure services in cities
  • Planned development of identified cities including peri-urban areas, outgrowths and urban corridors leading to dispersed urbanisation.
  • Scale-up delivery of civic amenities and provision of utilities with emphasis on universal access to the urban poor
  • Special focus on urban renewal programme for the old city areas to reduce congestion
  • 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

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Reforms  &  Targeted Actions – 

  • Ministry of Urban Development has initiated institutional, fiscal and financial reforms
  • Second generation reform have also been started. In the last decade, enormous progress has been made in removing impediments to efficient investment.
  • Subsidies need to be rationalised and urban development plans and projects need to be placed on a commercial format by designing commercially viable urban infrastructure services
  • The participation of the private sector in financing and the delivery of infrastructure at the municipal level, especially in the water and sanitation sector, requires a regulatory framework to protect consumers, apply environmental standards and support the delivery to the poor.
  • The Central Government is in the process of preparing A ‘Model Municipal Act’which will be recommended to the State Governments, would include modification and simplification of Municipal bylaws
  • Foreign Investment Promotion Board (FIPB) allowed direct investment in providing urban services on a case to case basis.
  • Municipal Bonds were successfully issued by several Municipal Corporations like, Bangalore, Ahmedabad, Ludhiana, Nagpur, Nasik, Madurai for raising resources for urban infrastructure.
  • Government of India is also encouraging citywide reforms and restructuring so as to ensure that cities are managed efficiently


Exhibits – 

  • Under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 559 projects have been approved across different States in the country, out of which 184 have been physically completed.
  • 45 projects have been approved during the year at an estimated cost of Rs1102 crore, and ACA commitment of ` 885.16 crore under the Urban Infrastructure Development Scheme for Small and Medium Towns
  • The Union Urban Development Ministry cleared the decks for the Delhi Government to regularize 917 unauthorized colonies during the year. Around 40 lakh residents in these colonies are likely to benefit from the regularization which would entail government spending on civic infrastructure.
  • Under the Basic Services to Urban Poor(BSUP) and the Integrated Housing & Slum Development Programme (IHSDP) components of the Mission, the focus is on housing and basic amenities to the urban poor, especially slum dwellers.
  • Under these Schemes, more than 22 lakh houses, covering 1606 projects, with an outlay of Rs 42,397 crore have been sanctioned grants by way of ACA to the tune of Rs 22,797 crore have been committed and cumulative release of assistance was Rs 13,547 crore.
  • 65 mission cities have been covered under BSUP and 920 cities or towns have been covered under IHSDP.
  • 15.99 lakh houses for the urban poor had either been completed
  • Detailed Project Reports (DPR) for Metro rail in all 19 cities with a population of over two million are being prepared
  • Metro projects are already under implementation across the country – Delhi, Kolkata, Mumbai, Bangalore, Chennai, Hyderabad, Jaipur , Kochi , Ahmedabad and Bhopal
  • 11 Tier-II Cities – Lucknow, Kanpur, Patna, Jaipur, Ahmedabad, Pune, Surat, Indore, Nagpur, Kochi, Coimbatore, Kozhikode have been considered by Urban Development Ministry for a Metro Rail Transport System. Out of which construction in some cities already started
  • Chandigarh, Navi Mumbai, Gandhinagar , Ludhiana have also sent proposals for Metro.
  • Regional Rapid Transit System – The work for preparation of Feasibility Studies of Regional Rapid Transit System (RRTS) corridors for the three prioritized corridors – Delhi – Sonipat -Panipat , Delhi-Gurgaon -Rewari -Alwar , Delhi-Ghaziabad-Meerut have been awarded to consultants.
  • In pursuance of the Government’s vision of creating a slum-free India, ‘Rajiv Awas Yojana’ has been launched on 2nd June 2011.
  • The Scheme provides financial assistance to States that are willing to assign property rights to slum dwellers for provision of decent shelter and basic civic and social services for slum redevelopment, and for creation of affordable housing stock.
  • The scheme is expected to cover 250 cities by the end of the 12th Plan. Funds have been released to 162 cities for undertaking preparatory activities under Slum Free City Planning Scheme
  • 8 pilot projects with a total project cost of Rs 446.20 crore involving Central Assistance of Rs197 crore has been approved under the scheme for construction of 8,400 dwelling units.
  • The Cabinet has, in March 2012, approved the establishment of a Credit Risk Guarantee Fund Trust with an initial corpus of Rs 1000 crore
  • This fund proposes to guarantee the lending agencies for loans given to EWS/LIG persons up to Rs 5 lakh without any third party guarantee or collateral security.
  • The Credit Risk Guarantee Fund is expected to catalyze flow of credit of about Rs20,000 crore to the low incomehousing sector and create an enabling environment for creation of affordable housing stock.
  • Presently there are 70 PPP projects under the Urban Infrastructure & Governance (UIG) component of JNNURM
  • Majority of the PPP projects where capital is brought-in by the private sector is in Solid Waste Management sector, followed by Sewerage and Water Supply sector. Urban Transport sector has also attracted PPP in a few cases.