2 years after Finance panel suggested, Centre ‘evaluating’ 26 proposals for new cities

Source: The post is based on the article “2 years after Finance panel suggested, Centre ‘evaluating’ 26 proposals for new cities” published in Indian Express on 29th March 2023

What is the News?

The Union Housing and Urban Affairs Ministry is currently evaluating 26 proposals from 21 states for the creation of new cities in India.

Creation of new cities in India:

The 15th Finance Commission has recommended Rs 8,000 crore fund for the incubation of eight new cities  (Rs 1000 crore to each) in the country through a challenge.

— Considering the small urban population in the Northeast and hill States, Rs 1,000 crore for two new cities (Rs 500 crore each) for two different states has been proposed.

Criteria: A state can have only one new city through this fund.

– A maximum of nine new cities in nine states can be selected.

What is the need for the creation of new cities in India?

World Bank data finds that 56% of the world’s population lives in towns and produces 80%of its GDP. 

The 2011 status found the level of urbanization in India to be just under 33%. Assume it is about 35 percent now. With India’s population now at 1.42 billion, the urban population would be almost 500 million. 

In 2051, India’s population would be 1.67 billion (both population figures from UN Population projections). If India’s population becomes 50% urban by then, that would mean the urban population would increase to 835 million. 

There is no way this additional population can be squeezed into India’s existing towns and cities with whatever redevelopment of existing cities is carried out.