Source:\u00a0<\/b>The post is based on the article \u201cIndia has to invest $55 billion p.a. in urban infra to meet needs of growing population: World Bank report\u201d <\/b>published in\u00a0The Hindu\u00a0<\/b>on 15th November 2022.<\/b><\/p>\nWhat is the News?<\/h5>\n
Recently, the World Bank released a report titled \u201cFinancing India\u2019s Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action.\u201d The report underlines an urgent need to leverage more private and commercial investments to meet emerging financial gaps.<\/p>\n
According to the report, by 2036, 600 million people will be living in urban cities in India, representing 40% of the population. This will put additional pressure such as more demand for clean drinking water, reliable power supply, efficient and safe road transport amongst others.<\/p>\n
Slow implementation of Centre’s schemes by states and ULBs<\/strong>:\u00a0There is a slow implementation performance by States and Urban Local Bodies (ULBs) on several of the Centre\u2019s flagship Urban Missions such as Smart Cities Mission<\/a> <\/strong>and the Pradhan Mantri Awas Yojana (PMAY)<\/a><\/strong>.<\/p>\n For example, ULBs across India have so far executed only about one-fifth of the cumulative cost or outlay of approved projects under SCM and AMRUT over the last six financial years.<\/p>\n Low private participation<\/strong>:\u00a0Currently, the central and State governments finance over 75% of city infrastructure, while ULBs finance 15% through their own surplus revenues.<\/p>\n Only 5%<\/strong> of the infrastructure needs of Indian cities are currently being financed through private sources.<\/p>\n A decline in PPP transactions<\/strong>: Public Private Partnership (PPP) transactions for urban infrastructure have registered a marked decline in the last decade both in monetary value and transaction volume.<\/p>\n Low PPP project awards<\/strong>: PPP project awards have seen a substantial spike between the years 2007 and 2012 when most of these projects were awarded. Only one-third of all PPP investments awarded since 2000 came in the last decade\u2014 including 55 projects worth $17 billion, the report stated.<\/p>\n Low revenue of Indian infra projects<\/strong>: This is due to policy decisions<\/strong> to keep tariffs and service charges below levels required for cost recovery and financial sustainability.<\/p>\n Need additional urban funding<\/strong>: India will need to invest $840 billion over the next 15 years into urban infrastructure to effectively meet the needs of its fast-growing urban population. Cities in India need large amounts of financing to promote green, smart, inclusive, and sustainable urbanization.<\/p>\n Creating a conducive environment for ULBs<\/strong>:\u00a0Currently, the 10 largest ULBs were able to spend only two-thirds of their total capital budget over three recent fiscal years. India needs to create a conducive environment such as creditworthiness for ULBs to enable them to borrow more from private sources.<\/p>\n Medium-term solutions<\/strong>: A series of structural reforms such as changes in taxation policy and fiscal transfer system can allow cities to leverage more private financing.<\/p>\n","protected":false},"excerpt":{"rendered":" Source:\u00a0The post is based on the article \u201cIndia has to invest $55 billion p.a. in urban infra to meet needs of growing population: World Bank report\u201d published in\u00a0The Hindu\u00a0on 15th November 2022. What is the News? Recently, the World Bank released a report titled \u201cFinancing India\u2019s Infrastructure Needs: Constraints to Commercial Financing and Prospects for… Continue reading Financing India\u2019s infrastructure: India has to invest $55 billion p.a. in urban infra to meet needs of growing population: World Bank report<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1305,9],"tags":[10498],"class_list":["post-214424","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-index-reports-bodies","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/214424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=214424"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/214424\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=214424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=214424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=214424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are the key suggestions of the report to improve financing India\u2019s infrastructure?<\/h5>\n