Urban Transformation in India

Source-This post on Urban Transformation in India has been created based on the article “An outlining of urban transformation strategies” published in “The Hindu” on 25 July 2024.

UPSC Syllabus-GS Paper-1- Urbanization, their problems and their remedies.

Context- About 50 crore people, or 36% of India’s population, live in cities, with urbanization growing at 2% to 2.5% annually. The Budget stresses continuous investment in urban areas, identifying them as key growth centers. It offers substantial financial allocations and opportunities to foster planned development and city growth.

What initiatives are announced in the budget to ensure sustainable urbanization?

1) The Pradhan Mantri Awas Yojana (Urban) -It proposes to construct another one crore housing units in urban areas with an investment of ₹10 lakh crore. Which include substantial central assistance and interest subsidies for affordable loans.

2) Industrial Workers– It introduces rental housing projects with dormitory-style accommodation for industrial workers. These projects will be developed through public-private partnerships (PPP) with financial backing, including Viability Gap Funding (VGF) from both central and state governments.

3) The Atal Mission for Rejuvenation and Urban Transformation (AMRUT)- It allocates ₹8,000 crore for essential infrastructure such as water supply, sanitation, roads, and sewerage systems. It also promotes PPP models for infrastructure development with VGF support.

4) Capex-It allocates ₹11.11 lakh crore for infrastructure capital expenditure, which includes highways and urban infrastructure. It also offers states an interest-free loan of ₹1.50 lakh crore for infrastructure development.

5) National Urban Digital Mission (NUDM)- It introduces the NUDM with ₹1,150 crore for digitizing property and tax records using GIS mapping. This aims to enhance financial management for urban local bodies and property owners.

6) Weekly Haats- The Budget suggests creating 100 weekly street food hubs in some cities. States are urged to assist all cities in planning and setting up these hubs to meet local demands.

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7) Solid Waste Management-It is a major challenge for cities. The Budget plans to introduce bankable SWM projects with state governments and financial institutions. States and municipalities can use VGF for this. Cities like Indore have made SWM financially viable.

How is city planning being addressed in the Budget?

1) Prioritization and Funding -It prioritizes planned city development, allocating ₹25,653 crore as normal Financial Commission grants to municipalities. It also sets aside ₹500 crore for incubating new cities.

2) Mobility and Economic Planning -It focuses on creating effective mobility plans to connect cities with peri-urban and new areas. This will enhance economic and transit planning through orderly town planning schemes.

3) Promotion of Electric Bus Systems– ₹1,300 crore is allocated to promote electric bus systems in cities, offering cost-effective and eco-friendly operations despite higher initial costs.

Way ahead– Cities, led by municipalities and supported by state governments, must demonstrate vision and determination to utilize resources effectively, including those from the Union Budget and their own revenues.

Question for practice

What measures are introduced in the budget to promote sustainable urban development? How is urban planning addressed in the Budget?