Editorial of the Day (25 July): Urban Transformation Strategies

The recent budget recognized cities as critical hubs for growth and outlined multiple initiatives aimed at their planned development.

Table of Contents

Context: The recent budget recognized cities as critical hubs for growth and outlined multiple initiatives aimed at their planned development.

Facts

Population in Indian Cities: Approximately 50 crore people (36% of the national population).

Urban Population Growth Rate: Annual rate of 2% to 2.5%.

Housing Initiatives

Implementation: Since 2015.
Accomplishments: Delivered 85 lakh housing units for the Economically Weaker Sections (EWS) and Middle-Income Groups (MIG).
Investment: Total of ₹8 lakh crore, with 25% funded by the central government and the remainder by beneficiaries and state governments.
Future Plans: An additional 1 crore housing units are planned with an investment of ₹10 lakh crore, including ₹2.2 lakh crore of central assistance over five years. The budget for the current year allocates ₹30,171 crore to this end.
Support Measures: Interest subsidies to facilitate affordable housing loans.

Structure: Dormitory-type accommodations.
Funding Model: Public-private partnership (PPP) with Viability Gap Funding (VGF) from the central government covering 20% of costs, with potential similar contributions from state governments.

AMRUT (Atal Mission for Rejuvenation and Urban Transformation):
- Funding: ₹8,000 crore, targeted at enhancing water supply, sanitation, roads, and sewerage systems.
- PPP and VGF: Projects to be developed commercially under PPP with VGF support.
General Infrastructure:
- Capital Expenditure: ₹11.11 lakh crore allocated for broader infrastructure needs, which includes urban projects.
- State Infrastructure Development: Interest-free loans worth ₹1.50 lakh crore available to states, which can also be used for urban infrastructure.

Smart Cities Mission:
- Previous Funding: ₹8,000 crore in 2023-24.
- Current Funding: Reduced to ₹2,400 crore in 2024-25 for completing ongoing commitments.
National Urban Digital Mission (NUDM):
- Allocation: ₹1,150 crore.
- Purpose: Enhancing digital management of property and tax records, including GIS mapping, to aid urban local bodies in financial management.

Finance Commission Grant: ₹25,653 crore designated for municipalities.
New City Incubation: ₹500 crore allocated to support the development of new urban centres.
Transit-Oriented Development: Focus on integrating mass rapid transit systems with urban development to avoid traffic congestion.
Electric Buses: ₹1,300 crore provided to encourage the adoption of eco-friendly public transportation options.

Initiative: Promoting bankable projects for SWM in collaboration with state governments and financial institutions.
- Example: Indore, Madhya Pradesh, highlighted as a successful model of financially viable SWM.

Street Vendors Act, 2014: Regulates street vending and aims to protect vendors’ rights.
Development: The budget proposes creating 100 weekly ‘haats‘ or street food hubs in select cities to support street vendors.