Reform, Perform And Transform Cities To Build Viksit Bharat

As India continues to urbanise, cities have a pivotal role in meeting the aspiration of a Viksit Bharat. Urban centres contribute to over 60% of the gross domestic product, but the municipal budget has been stagnant at less than 1% of the GDP for over a decade. This is often inadequate to even maintain the existing infrastructure, prompting high dependence on state and union governments to infuse capital for infrastructure upgradation.Notably, as the Smart Cities Mission comes to an end, the new urban infrastructure investment programme will shape reforms for building high performance cities that can transform the future laying emphasis on growth and sustenance. A World Bank report estimates investments of $840 billion (Rs 73 lakh crore) is required in urban infrastructure and municipal services in India by 2036 to manage the needs of a rapidly growing population. It also emphasises the need for private finance and participation..The Urban Challenge Fund announced in the Union budget gains significance as a policy instrument to make cities more liveable and investable to unlock public good. The overall outlay of the Urban Challenge Fund is a whopping Rs 1 lakh crore, of which only 10% is allocated for FY25–26 to support cities in enhancing economic growth, improve quality of life and upgrade critical infrastructure, such as water and sanitation. The fund will finance 25% of the project cost, provided at least 50% is raised through bonds, banks and private participation, therefore initiating accountability and efficient management of projects. The Jawaharlal Nehru National Urban Renewal Mission was the first reform-led comprehensive urban infrastructure upgradation scheme, with an outlay of Rs 1.2 lakh crore (approximately $20 billion), primarily funded as a grant from the Centre. However, the cities were unable to implement the reforms holistically, derailing the momentum for investments as the return on the capital was inadequate to even maintain the assets created using the grants.Hence, the missions initiated 10 years ago were conceptualised to foster competitive and performance-based approaches among cities for allocation of funds. To entice participation, challenges such as Cycle4change, Streets4people and Transport4all were curated to envision projects for improving health, mobility, air quality and liveability parameters in cities. .In This Economy...: Trump's Tariff Tantrums Loom Over India.The Smart Cities Mission allocated Rs 500 crore for 100 cities over 10 years, of which Rs 45,215.3 crore has been disbursed since its inception. It has accomplished in building 1,700 km of smart roads, deployed over 23,000 shared bicycles and over 1,500 buses, built over 2,000 bus stops, and commissioned an Intelligent transit management system for 35 cities.Similarly, the Atal Mission for Rejuvenation and Transformation (Amrut 1.0 and 2.0) for 500 cities has invested Rs 48,354 in water, sanitation, non-motorised infrastructure and enhancing public realm until 2023–24. These investments were envisaged to generate adequate revenue to sustain the operation, maintenance and upgradation cost of the project. .Why Did Microsoft Admit That AI Is Making Us Dumb?.The Union government has also incrementally enhanced investments in metro rail, electric bus and regional rail connectivity for the National Capital Region, thereby improving mobility and connectivity in urban centres. Although it may seem paltry, compared to the World Bank estimates, the government is making recurring investments in urban infrastructure using different instruments.While over Rs 1 lakh crore has been invested for equity in metro infrastructure, Rs 9,266.7 crore has already been disbursed for Namo Bharat connecting the NCR from 2018–19 to 2023–24. In addition over 50,005 electric buses were augmented under the Faster Adoption and Manufacturing of Electric Vehicle subsidy scheme, and another 38,000 more buses will be deployed under PM-eBus Sewa from FY 2024–25 to FY 2028–29 with an outlay of Rs 3,435.3 crores as a viability gap fund. All the electric buses augmented under FAME-2 scheme, smart cities mission and PM-eBus Sewa scheme are based on a concessionaire agreement.Besides these initiatives, the 15th finance commission has allocated Rs 16,579 crores over five years for 42-million-plus cities to take measures for improving air quality. The mission and challenges are crucial for transforming urban infrastructure as well as enhance investments in developing projects that are financially sustainable.The city infrastructure is experiencing severe stress and needs to build resilience to brace for the impact of climate change. The Economic Survey 2024–25 emphasised the role of active and shared mobility, including carpooling, to decarbonise mobility and shape a sustainable future. Indian cities must use this opportunity to reform their governance and urban planning practices, perform on the quality of life index and ease of doing business, and transform them into a global magnet. .Roshan Toshniwal is the head of the Centre for Future Mobility, OMI Foundation. He is an architect and urban planner by training and has over 15 years of experience in urban planning, mobility and development sector.Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team. .Bearish Stock Market: All You Did Was Hope!

Reform, Perform And Transform Cities To Build Viksit Bharat

The city infrastructure is experiencing severe stress and needs to build resilience to brace for the impact of climate change.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP