Issues Related to Urbanization

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Urbanization and economic developmenthave a strong positive correlation which isindicated by the fact that a country with ahigh per capita income is also likely to have ahigh degree of urbanization. The economicadvantages provided by urban areas are many.Generally, the industrial, commercial andservice sectors tend to concentrate in andaround urban areas. These areas provide alarger concentration of material, labour,infrastructure and services related inputs onthe one hand and also the market in the formof consumers, on the other. But the situation isdifferent for India.

Urbanization in India: Brief Introduction

The population of India grew 2.8 timesbetween 1951 and 2001, from 361 million to1027 million, while the urban populationexpanded 4.6 times, from 62 million to 285million. The pace of urbanization has also beenslower in India as compared to other countriesof the world. As per UN estimates, the degreeof urbanization in the world in 1950 wasaround 30 per cent which increased to 47 percent in 2000. In India, it increased from 17.3per cent in 1951 to 27.8 per cent in 2001. Chinaand Indonesia which had lower levels ofurbanization in 1950, have now overtakenIndia with the percentage of urban populationbeing 32.1 and 40.9 respectively. In the decadeof the 1990s, there were nearly 68 million newurban Indians, an increase larger than the entireThailand. Indias current urban populationexceeds the whole population of the UnitedStates, the worlds third largest country. By2050, over half of Indias population is expectedto be urban dwellers.

Over the years there has been continuousconcentration of population in class I towns.On the contrary the concentration of populationin medium and small towns either fluctuatedor declined. The graduation of number ofurban centres from lower population sizecategories to class I cities has resulted top heavy

structure of urban population in Indiaindicating the tendency towards concentrationin larger agglomerations. Urban agglomerationis a continuous urban spread constituting atown and its adjoining urban outgrowths (OGs)or two or more physical contiguous towntogether and any adjoining urban outgrowthsof such towns. Examples of outgrowths arerailway colonies, university campus, port area,military campus, etc. that may come up near astatutory town or city.

Therefore India's urbanization is oftentermed as overurbanization, pseudourbanization. The large population size isleading to virtual collapse in the urban servicesand followed by basic problems in the field ofhousing, slum, water, infrastructure, quality oflife, etc.

Basic Feature and Pattern of India'sUrbanization

Basic feature of urbanization in India can behighlighted as:

Lopsided urbanization induces growth ofclass I cities.

Urbanization occurs without industrializationand strong economic base.

Urbanization is mainly a product ofdemographic explosion and povertyinduced rural - urban migration.

Rapid urbanization leads to massive growthof slum followed by misery, poverty,unemployment, exploitation, inequalities,degradation in the quality of urban life.

Urbanization occurs not due to urban pullbut due to rural push.

Poor quality of rural-urban migration leadsto poor quality of urbanization.

Distress migration initiates urban decay.Urbanization in India is a product of

demographic explosion and poverty inducedrural-urban migration. Urbanization isoccurring not due to urban pull but due to

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ISSUES RELATED

TO URBANIZATION

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rural push. Globalization, liberalization,privatization are addressing negative processfor urbanization in India. Policy relates toproper urban planning where city planningwill consist of operational, developmental andrestorative planning. Redirection of investmentis recommended to develop strong economicbase for small and medium city neglected sofar so that migration flows are redirected tosmall and medium cities.

Census Definition of Urban Area

In Census of India, 2001 two types of townwere identified:

a) Statutory towns: All places with amunicipality, corporation, cantonment boardor notified town area committee, etc. sodeclared by state law.

b) Census towns: Places which satisfy thefollowing criteria:-

i) a minimum population of 5000;

ii) atleast 75% of male working populationengaged in non agricultural pursuits; and

iii) a density of population of atleast 400persons per sq km.

Thus the issues related to urbanization inIndia are discussed as follows:

A. RURAL URBAN MIGRATION

Migration and urbanization are directmanifestations of the process of economicdevelopment in space, particularly in thecontemporary phase of globalization.

A large part of migration and urbanizationin India have been linked to stagnation andvolatility of agriculture and lack of sectoraldiversification within agrarian economy. Thegrowth rates in agricultural production andincome has been noted to be low, unstable anddisparate across regions over the past severaldecades, resulting in lack of livelihoodopportunities in rural areas. A low rate ofinfrastructural investment in public sector inthe period of structural adjustment - necessaryfor keeping budgetary deficits low also haveaffected agriculture adversely. This has led toout-migration from several backward ruralareas, most of the migrants being absorbedwithin urban informal economy.

But the capacity of the cities and towns toassimilate the migrants by providingemployment, access to land, basic amenities etc.are limited. The problem have acquired severityas migrants have shown high selectivity inchoosing their destinations (understandablylinked with availability of employment andother opportunities), leading to regionallyunbalanced urbanization as also distortions inurban hierarchy.

Rural urban migration has often beenconsidered the major factor for growth of slumsin urban areas. United Nations has warned thatrapid urbanization and migration would leadto tripling of slum population by 2050,hindering the attainment of the MDG targets.

B. SLUM DEVELOPMENT

The most important problem in all cities hasbeen housing the sudden and large scale influxof migrants from rural areas to urban areasespecially the metropolises and state capitals.Due to lack of housing, in every city almostfifty per cent population lives in slums. Slumsknown as bustees in India, favelas in Brazil,katchi abadis in Pakistan and focos insalubresin Cuba, all have few characteristics incommon:

Poor structural quality and durability ofhousing;

Insufficient living areas (more than threepeople sharing a room);

Lack of secure tenure; Poor access to water; Lack of sanitation facilities.

The Pranab Sen Committee has given a newdefinition for slums in India. It has defined aslum as a compact settlement of at least 20households with a collection of poorly builttenements, mostly of temporary nature,crowded together usually with inadequatesanitary and drinking water facilities inunhygienic conditions.

The new definition of slum is different fromthe definition adopted by the 2001 Census ofIndia. Accordingly to 2001 Census, slum areasbroadly constitute of:

1. All specified areas in a town or city notifiedas Slum by State/Local Government andUT Administration under any Act,including a Slum Act.


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2. All areas recognized as Slum by State/Local Government and UT Administrationwhich may have been formally notified asslum under any Act;

3. A compact area of at least 300 people orabout 60-70 households of poorly builtcongested tenements in unhygienicenvironment usually with inadequateinfrastructure and lacking in propersanitary and drinking water facilities.

There are various reasons for creation ofslums of which the most important are asfollows:

Increased urbanization leading to pressureon the available land and infrastructure,especially for the poor.

Natural increase in the population of urbanpoor and migration from rural areas andsmall towns to larger cities.

Inappropriate system of urban planningwhich does not provide adequate space forthe urban poor in `the City Master Plans.

Sky-rocketing land prices due to increasingdemand for land and constraints on supplyof land.

Absence of programmes of affordablehousing for the urban poor in most States.

Lack of availability of credit for low incomehousing.

Increasing cost of construction.

Although Land, Colonization and Slums areState subjects, the Central government hascome up with the following schemes:

a) Jawaharlal Nehru National UrbanRenewal Mission (JNNURM) waslaunched on 3rd December, 2005 with theobjectives of augmenting infrastructurefacilities in cities and towns along withprovision of shelter and basic civic servicesto slum dwellers/urban poor. JNNURMaims at creating economically productive,efficient, equitable and responsive Cities bya strategy of upgrading the social andeconomic infrastructure in cities, provisionof Basic Services to Urban Poor (BSUP) andwide-ranging urban sector reforms tostrengthen municipal governance inaccordance with the 74th ConstitutionalAmendment Act, 1992.

b) Interest Subsidy Scheme for Housing theUrban Poor (ISHUP) has been conceivedfor providing interest subsidy on housingurban poor to make the housing affordableand within the repaying capacity ofEconomically Weaker Section. The schemeencourages poor sections to avail of loanfacilities through Commercial Banks/HUDCO for the purposes of constructionof houses and avail 5% subsidy in interestpayment for loans upto Rs. 1 lakh.

c) Rajiv Awas Yojana (RAY) has beenlaunched in 2009, for the slum dwellers andthe urban poor. This scheme would aim toprovide support for shelter & basic civicand social services for slum redevelopmentand for creation of new affordable housingstock to States that are willing to assignproperty rights to slum dwellers. The SlumFree City/State Plan is envisaged tocomprise of two parts-- Part I- Strategy toredevelop existing slums and Part II Strategy for prevention of creation of slums,delineating the development of affordablehousing for the urban poor and revision toexisting urban policy and programmes forthe prevention of slums. This plan wouldform the basis for providing assistance tothe States, after the scheme is approved.

d) National Slum Development Programme(NSDP), Night Shelters, Two MillionHousing Scheme, Accelerated UrbanWater Supply Programme (AUWSP), andLow-Cost Sanitation provide for a widerange of services to the urban poor,including slumdwellers. They includeidentification of the urban poor, formationof community groups, involvement ofNGOs, self-help/thrift and credit activities,training for livelihood, credit and subsidyfor economic activities, housing andsanitation, environmental improvement,community assets, wage employment andconvergence of services.

e) Valmiki-Ambedkar Awas Yojana(VAMBAY) was introduced in 2001-02 toprovide a shelter or upgrading the existingshelter to BPL people in urban slums.Twenty per cent of the total allocationunder VAMBAY is provided for sanitationand community toilets to be built for theurban poor and slum dwellers.


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C. URBAN TRANSPORT

India is transiting from a developing todeveloped country with high pace of economicdevelopment. Urbanization too is increasing ata high pace as mega cities, cities and towns areproviding better economic opportunities. Fast-growing cities have nurtured business andindustry and have provided jobs and higherincomes to many migrants from rural areas.Thus, it is important that cities functionefficiently that their resources are used tomaximize the cities contribution to nationalincome.

City efficiency largely depends upon theeffectiveness of its transport systems, i.e.,efficacy with which people and goods aremoved throughout the city. Poor transportsystems hampers economic growth anddevelopment, and the net effect may be a lossof competitiveness in both domestic as well asinternational markets.

Thus proper development of urbantransport to meet the needs of growingpopulation is urgently needed in a country likeIndia. The public transport system helps inimproving urban-rural linkage and improvesaccess of the rural/semi-urban population inthe periphery to city centres for the purpose oflabour supply without proliferation of slumswithin and around cities.

The major objective of urban transportinitiative is to provide efficient and affordablepublic transport. A National Urban TransportPolicy (NUTP) was laid down in 2006, withthe objective of ensuring easy, accessible, safe,affordable, quick, comfortable, reliable, andsustainable mobility for all. In order to providebetter transport, proposals for bus rapid transitsystem (BRTS) were approved.

The quality and quantity of roads had beenimproved by providing better signaling system,foot over bridges for pedestrians, over bridgesand flyovers to decrease travelling time,diverging heavy vehicles directly to highwayswithout accessibility to city roads, etc.The newconcept of low floor buses has been introducedin capital cities to control pollution as well asfor improving the conditions of localgovernment buses.

Metro rail projects as already present inDelhi/NCR has been further sanctioned for newcities as Chennai, Bangalore, Mumbai as

(monorail) to decrease the travelling time andenvironmental effects of vehicular emissions.

Urban Transport Problems:

Traffic injuries and fatalities pose aserious threat to the urban population. Thecauses can be poor conditions of roads,burgeoning fleet of motor vehicles, unsafedrinking behaviour, overcrowding of buses,autos, etc.

Environmental pollution as noise, air bothare contributed by vehicles. BHARATSTAGE EMISSION NORMS have beenlaunched by government to decrease airpollution from vehicles. Switching publictransport to CNG has reduced the pollutioncontent drastically.

Roadway congestion is probably the mostvisible, most pervasive, and most immediatetransport problem plaguing Indias cities ona daily basis. It affects all modes oftransportation and all socioeconomicgroups.

Vast improvements are needed in Indiaspublic transport systems, but the necessaryfunding is not available. Most buses andtrains in small and medium size Indian citiesare old and poorly designed, inadequatelymaintained, dangerously overcrowded,undependable, and slow.

Steps taken by GOI to improve urban transportare as follows:

I. Launch of Sustainable Urban TransportProject

The objective of the Sustainable UrbanTransport Project is to promote environmentallysustainable urban transport in India and toimprove the usage of environment friendlytransport modes through demonstrationprojects in selected cities.

The project includes the followingcomponents:

a) COMPONENT ONE provides technicalassistance to the Ministry of UrbanDevelopment (MoUD) to improve thenational, state and local capacity toimplement the capacity building elementsand the public and non-motorized transportrelated aspects of national urban transportpolicy; and


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b) COMPONENT TWO supports design andimplementation of demonstration projectsin six participating cities (in five states),which will create models of sustainabletransport solutions for other Indian citiesto replicate.The six cities, selected by Government of

India (GOI) through a competitive selectionprocess, include Pune and Pimpri-Chinchwad(in Maharashtra), Naya Raipur (inChhattisgarh), Jalandhar (in Punjab), Indore (inMadhya Pradesh), and Mysore (in Karnataka).

The global environment facility (GEF) grantwill finance technical assistance activities underthe component one and component two. Therecipient and participating stated cities willfinance other project activities (including civilworks) by utilizing Jawharlal Nehru NationalUrban Renewal Mission (JNNURM) grant andother sources of funds (including anInternational Bank for Reconstruction andDevelopment (IBRD) loan being processedunder a parallel loan project for three cities:Pune, Pimpri-Chinwad, and Naya Raipur).

II. National Urban Transport Policy

The National Urban Transport Policy(NUTP) was formulated in 2006, to integrateland use and transport planning in cities, andto bring about comprehensive improvements inurban infrastructure.

While urban transport is a State responsibilityunder the Constitution, there is a need to guideState-level action plans, particularly linked toland use planning, in order for transport plansto best support the key social and economicactivities of its residents.

Key Objectives:

Incorporate urban transport as animportant parameter in urban planning.

Bring about more equitable allocation ofroad space with people rather than vehiclesas the main focus.

Encourage greater use of public transportand non-motorized modes of transport.Under the NUTP, each city with a

population of over four million will beencouraged by the central government to startplanning for a mass transit system adopting atechnology that would best suit the cityrequirements in the next 30 years. The policy

also highlights the need for linking the transportplans with the geographical constraints of itslocation, increased priority to public transport,non-motorised transport, and improvingparking facilities. The policy encourages the setup of Unified Metro Transport Authorities(UMTA)s in cities with a million-pluspopulation.

The Jawaharlal Nehru National UrbanRenewal Mission (JNNURM), which is linkedto the rules and regulations under the NUTP,will invest in infrastructure projects in 63 citiesin India.

III. Adoption of PPP Policy

The Government of India is activelypromoting the expansion of Public PrivatePartnership (PPP) activities across all keyinfrastructure sectors including highways,ports, power and telecoms. Implementation ofprojects under Public Private Partnership (PPP)has the following advantages-

a. Better quality since the concessionaire(private sector) is to maintain the road forthe period of concession.

b. Early completion of the project, since theconcessionaire could save interest and earnearly toll (in the case of BOT project) /additional annuity installments (in the caseof Annuity project).

c. No costs overrun (price escalation).d. The Client (Government/NHAI) does not

have the burden of maintaining thehighways.

e. Involving the private sector leads to greaterefficiency.

f. The private sector has more flexibleprocurement and decision-makingprocedures and therefore, it can speed upimplementation efforts.

IV. RFID Technology Based Electronic TollPlaza

Countrys first RFID Technology BasedElectronic Toll collection Plaza was launchedat Chandimandir, Punchkula (Haryana). Thistechnology will help users to make paymentwithout stopping at toll plazas and will reducetraffic congestion and commuting time. TollStatements can be made or made available online to the road users and they need not haveto stop for receipt.


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RFID, besides satisfying functionalrequirements, is the cheapest solution available.It is extremely simple to use and administer,requiring no actions on the part of the user(the sticker itself can be stuck on the vehicle bythe user).

For updating toll data two tier databasestructure will be deployed, one at the Plazalevel and other at the National level (CentralClearing House). The entire transaction detailsof all the Tag accounts will be stored in theCentral Database.

Before issuance of RFID Tags, the road usersneed to register with the agency with the basicdetails like Name, Address, Vehicle type,Vehicle registration no. etc. The information willbe stored in the central database along withthe unique identification code of Tag.

A centralized back office operation orCentral Toll Clearing House is mandatory forthe operation of nation-wide ETC systems. TheCentral Clearing House concept is a transactionmanagement system which will enable multipleToll Collection Agencies to share toll transactiondata and revenue reconciliation.

V. High Security Registration Plates

On the basis of the recommendations madeby the Technical Standing Committee onCentral Motor Vehicles Rules, the CentralGovernment had amended rule 50 of theCentral Motor Vehicles Rules, 1989, mandatingintroduction of new High Security RegistrationPlates, both in respect of new and in-use motorvehicles throughout the country.

A High Security Registration Plate (HSRP)is a highly secure number plate aimed to bringabout a uniform pattern of displayingregistration marks across the country.

The regular registration plates can be easilytampered with, making car thefts easy. Fancynumber plates also make it difficult to trackdown lawbreakers on the run. HSRPs aretamper-proof and non-replaceable, which couldprove to be a deterrent to car thieves. It willalso aid in creating a computerised, nationaldata of motor vehicles which currently is notthe case as the records are created andmaintained manually.

VI. Rapid Transit System

A rapid transit, underground, subway, elevatedrailway, metro or metropolitan railway systemis an electric passenger railway in an urbanarea with a high capacity and frequency,and grade separation from other traffic. Rapidtransit systems are typically located either inunderground tunnels or on elevated rails abovestreet level. Outside urban centres, rapid transitlines may run on grade separated ground leveltracks.

Service on rapid transit systems is providedon designated lines between stations usingelectric multiple units on rail tracks, althoughsome systems use guided rubber tyres, magneticlevitation, or monorail. They are typicallyintegrated with other public transport and oftenoperated by the same public transportauthorities. Rapid transit is faster and has ahigher capacity than trams or light rail (but doesnot exclude a fully grade separated LRT), butis not as fast or as far-reaching as commuterrail.

Major rapid systems in India are:

a) Kolkata Metro

The Kolkata Metro is a mass rapid transitsystem serving the city of Kolkata and thedistricts of South 24 Parganas and North 24Parganas in the Indian state of West Bengal.The network consists of one operational line(Line 1). It was the first such form oftransportation in India, opening commercialservices in 1984.

Benefits:

Requires 1/5th energy per passenger kmcompared to road-based transport system.

Causes less noise, no air pollution and ecofriendly transport system.

Occupies no road space if underground andonly about 2.60 mtrs width of the road ifelevated.

More reliable, comfortable and safer thanroad based systems.

Reduces journey time.

b) MONO RAIL in Mumbai

Considering the increase in population,increased travel demand and narrow roadnetworks running through congested structures,


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there is a need of a system which will occupyless space as well as reduce travel time.

With the objective, to support public rapidtransit system such as suburban rail system andmetro rail system and where public rapidtransit system is not available or impossible toprovide such system and where widening ofroads is not possible due to structures on eithersides, Mono Rail system is proposed to beimplemented in city of dreams MUMBAI.Once completed it will be the worlds secondlongest Monorail corridor.

Larsen and Toubro along with Scomi hasreceived the contract to build and operate themonorail.

c) Delhi Metro

The Delhi Metro is a rapid transit systemserving Delhi, Gurgaon, Noida and Ghaziabad inthe National Capital Region of India. It hasbecome the "life line" of Delhi as people aredependent on Delhi Metro for commuting todifferent places within the city. Delhi MetroProject has been recognized all over the worldfor its speciality in terms of a hi-tech rail andbetter equipped transport system. The projectis under the Delhi Metro Rail Corporation,DMRC.

Planning for the metro started in 1984,when the Delhi Development Authority and theUrban Arts Commission came up with aproposal for developing a multi-modal transportsystem for the city. The Government ofIndia and the Government of Delhi jointly setup the Delhi Metro Rail Corporation (DMRC)in 1995. Construction started in 1998, and thefirst section, on the Red Line, opened in 2002,followed by the Yellow Line in 2004, the BlueLine in 2005, its branch line in 2009,the Green and Violet Lines in 2010 andthe Delhi Airport Metro Express in 2011.

Metro rail in the city has reduced the trafficto some extent and the pollution level hascertainly declined. Because of this only DelhiMetro has been certified by the United Nationsas the first metro rail-based system in theworld to get carbon credits for contributing tothe fight against climate change by helpreducing pollution levels in the city by 6.3 lakhtons every year. It also has earned carboncredits of worth 47 crores annually for thenext seven years.

A carbon credit is a term for any tradablecertificate or permit representing the right toemit one tonne of carbon dioxide. Carboncredits and carbon markets are a componentof national and international attempts tomitigate the growth in concentrationof greenhouse gases.

Thus, the DMRC has helped in reductionin emission of harmful gases into theatmosphere and the United Nations-bodyadministering the Clean DevelopmentMechanism (CDM) under the Kyoto Protocolhas certified carbon credits to DMRC forreducing emissions.

d) Namma Metro

Namma Metro also known as BengaluruMetro is a rapid transit rail system for the cityof Bengaluru, Karnataka, India. The agencyresponsible for its implementation is theBangalore Metro Rail Corporation Ltd(BMRCL). The first stretch betweenB a i y y a p p a n a h a l l i a n d M . G . R o a d w a sinaugurated on October 20, 2011.

Salient Features:

All the Metro trains are Wi-Fi enabled (thefirst metro in India to have this feature), sopassengers can use laptops, tablets as well asmobile internet. Passengers also haveemergency voice communication with train staffthrough a speaker system. Passengers areprovided with a call button to communicateanything to the driver or control centre duringan emergency.

Metro stations will have Powerheart Automated external defibrillator (AED) toprotect its commuters against death fromsudden cardiac arrest. Powerheart AED is usedfor emergency treatment of victims exhibitingsymptoms of sudden cardiac arrest. Theinstallation of AEDs will be followed by acertified training for a group of staff membersof BMRC. The devices are manufactured byOpto Circuits (India) Ltd.

e) Proposed Rapid Transit Systems

Urban Development Minister Mr. KamalNath has approved in-principle the proposalof implementing Regional Rapid Transit System(RRTS) in three important corridors in the NCRviz. Delhi-Gurgaon-Alwar, Delhi-Sonepat-


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Panipat and Delhi-Ghaziabad-Meerut. TheRRTS is a rail based mass transit system thatwould connect distant areas of National CapitalRegion (NCR) to the Capital.

The high speed connectivity between theregional centres of NCR and Delhi will makethe physical distance shorter and allow theseregional towns to capture the economic impulseand density generated by Delhi. This fasterconnectivity will reduce pressure on theNational Capitals infrastructure by opening upthe region, including regional housing market.

The Minister stressed that in order to achievethe objective of creation of NCR in 1985, itwould be necessary to focus on the sub-urbanization process and infrastructuredevelopment outside Delhi to enable other areasof NCR to absorb the load on the capitalsresources.

D. WASTE DISPOSAL

Removing garbage, cleaning drains andunclogging sewers are the main jobs ofmunicipalities and municipal corporations inIndian cities. In most cities, the municipalservice for the collection and transportation ofurban solid wastes comprises three separatefunctions as follows:

Sweeping, curbside and domestic wastecollection from garbage bins.

Transportation by handcarts to large orroad collection points, which may be opendumps.

Transportation by vehicles to the disposalsites.The weaknesses of the existing system of

solid waste management are: (i) the professionaland managerial capacities of the municipalbodies are limited and this is more pronouncedin case of smaller cities; (ii) no charges are leviedfor garbage collection or disposal, nor are thereany incentives for reducing garbage generationor recycling waste;(iii) no separate costing isdone for this function; (iv) indiscriminate useof plastic bags and goods; (v) recourse tomodern technology is rare and; (vi) segregationof garbage at the source is not enforced.

Thus Indian waste management system isstarved of resources to tackle the increasingdemands associated with growing urbanisation.Due to budgetary constraints, inadequate

equipment and poor planning, house-to-housecollection is very rare in India, particularly incertain low-income areas where waste is notcollected at all. It is estimated that upto 30-40per cent of disposed solid wastes are leftuncollected. The areas, which are not serviced,are left with clogged sewers and litter whichcreate serious health problems for the residentpopulation.

Main objective of disposal options is to ensuremaximum safety to the environment whichrequire administrative, technical, political,social and economic support. But Most urbansolid waste in Indian cities and towns islandfilled and dumped but there are varioustreatment options also such as:

Recycling & ReuseThe processes, by which materials otherwise

destined for disposal are collected, reprocessedor remanufactured and are reused. Theseparation for recycling takes place athouseholds, community bins, open dumps andeven in final disposal yards. The recyclingbusiness is a complicated chain of operationsand varies from place to place. The recyclingand reuse (the use of a product more than oncein its same form for the same or anotherpurpose) sector of waste management in citiesof Asian developing countries is potentiallyhigh. Its economic assessment is a difficult tasksince it is practiced in an informal manner.

BiogasBiogas contains approximately 60:40

mixture of methane (CH4), and carbon dioxide(CO2) produced by the anaerobic fermentationof cellulose biomass materials - simultaneouslygenerating an enriched sludge fertilizer - withan energy content of 22.5 MJ/m3, cleangaseous fuel for cooking, for running enginesfor shaft and electrical power generation withlittle or no pollution. Many cellulose biomassmaterials are available in urban solid wastesand may be utilized to produce eco-friendlyrenewable energy, contributing to the cleanwaste management. In India, biogas productionis currently practiced in many places in ruralareas (with cattle dung) and few places inurban areas (with sewage).

Sanitary landfillingSanitary landfill is a fully engineered

disposal option, which avoids harmful effectsof uncontrolled dumping by spreading,


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compacting and covering the wasteland thathas been carefully engineered before use.Through proper site selection, preparation andmanagement, operators can minimize the effectsof leachates (polluted water which flows froma landfill) and gas production both in thepresent and in the future. This option is suitablewhen the land is available at an affordable price.Human and technical resources available areto operate and manage the site.

Composting

Composting is a biological process ofdecomposition carried out under controlledconditions of ventilation, temperature, moistureand organisms in the waste themselves thatconvert waste into humus-like material by actingon the organic portion of the solid waste. Ifcarried out effectively, the final product isstable, odour-free, does not attract flies and isa good soil conditioner. Composting isconsidered when biodegradable waste isavailable in considerable fraction in the wastestream and there is use or market for compost.Centralised composting plant for sector mayonly be undertaken if adequate skilledmanpower and equipment are available, henceat household level and small level compostingpractices could be effective which needs thepeople's awareness.

Incineration

Incineration is the controlled burning ofwaste in a purpose built facility. The processsterilizes and stabilizes the waste. For mostwastes, it will reduce its volume to less than aquarter of the original. Most of the combustiblematerial is converted into carbon dioxide andash. An extensive sample programme conductedin India reveals that most of the waste had acalorific value of just 3350 joules/g comparedwith 9200 joules/g in high income countries.Incineration may be used as a disposal option,only when landfilling is not possible and thewaste composition is of high combustible (i.e.self-sustaining combustible matter which savesthe energy needed to maintain the combustion)paper or plastics. It requires an appropriatetechnology, infrastructure, and skilledmanpower to operate and maintain the plant.In Indian cities, Incineration is generallylimited to hospital and other biological wastesand mostly others are either landfilled ordumped.

Much research needs to be done on thedisposal of various types of solid waste withoutcausing any harm to the environment or thepeople.

E. WATER SUPPLY, DRAINAGE ANDSANITATION

According to the 2001 Census, out of 53.69million urban households only 36.86 million hadtap water sources. A very large percentage ofthe urban poor have no access to safe water.The Government programme of acceleratedurban water supply scheme, as on 31.3.2006,supported 612 schemes for Rs 695 crores. Thisis absolutely inadequate when compared to theassessment made by the Central Public HealthEngineering (CPHEEO) of Rs 1,72,905 croresfor 100 per cent coverage of the urbanpopulation under safe water supply andsanitation services by 2021.

No city has round the clock water supplyin India. Intermittent supply results in avacuum being created in empty water lineswhich often suck in pollutants through leakingjoints. Many small towns have no main watersupply at all and are dependent on the wells.To overcome this problem Municipal bodiesmust focus on increasing operational efficiencies through reduction in pilferage, improvingefficiency of staff and use of technology.Further, the municipal bodies should meter allwater connenction within a time frame.Installing a hierarchy of metering system couldhelp in identifying pilferage. Payment of watercharges should be made hassle free throughuse of Information Technology. As far aspossible all water connections should bemetered, and if necessary targeted subsidyshould be provided to the poorest sections.

Drainage situation is equally bad. Becauseof the non-existence of a drainage system, largepools of stagnant water can be seen in cityeven in summer months.

Further the sanitation problem is also highdue to lack of toilet facilities in slums areas.Thus practice of open defecation is prevalent.Human waste is also responsible for spreadingof water borne diseases like typhoid, cholera,Shigellosis, Amoebic Dysentry, Diarrhoea, etc.

The practice of open defecation in Indiacomes from a combination of factors, the most


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prominent of them being the traditionalbehavioural pattern and lack of awareness ofthe people about the associated health hazards.As per the latest Census data (2001), only 36.4per cent of total population has latrines within/attached to their houses. However, in ruralareas, only 21.9 per cent of population haslatrines within/attached to their houses. Outof this, only 7.1 per cent households havelatrines with water closets, which are the mostsanitized toilets

Thus Minister Jairam Ramesh comes outwith a mission of Niramal Bharat Abhiyan orTotal Sanitation Programme which wouldattempt to banish open defecation within adecade.

Further a new technology Bio-toilets havebeen introduced which is suitable for any area/application in India. Bio-Digester Toilet is adecomposition mechanized toilet system bymeans of which the sludge(Human Waste), thefecal matter is decomposed to bits in thedigester tank using a specific high gradedbacteria further converting them into methaneand water, discharged further to the desiredsurface. The Bio-digester toilet is totalmaintenance-free system & does not require anysewage system. The specific high gradedbacteria involved in these bio-digester toiletscarries on to further auto generation on theirown because of their supreme quality. Bio-toilettechnology is based on anaerobicbiodegradation of organic waste by uniquemicrobial consortium and works at a widetemperature range. The bacterial consortiumdegrades night soil at temp as low as -20 degreeC and produces colourless, odourless andinflammable gas containing 50 70% methane.

This bacterial consortium has been madethrough acclimatization, enrichment and bio-augmentation of cold- active bacteria collectedfrom Antarctica and the other low temperatureareas.

Salient features of bio-toilet:

a) Suitable for sub zero temperature ofHimalayan Region, Glaciers, Railwaycoaches, Buses, Highways, Remote areas,sea ports, Mining area, metro cities, etc.

b) Suitable for Mobile Toilet applications.c) 0% maintenance free, continuous biological

process.

d) Complete elimination of pathogens. e) Economically viable.f) No dependence on the limited and costly

conventional energy sources. g) Can be installed and made operational in

12 hours only. h) Inoculums charging is only once during the

entire life of Bio Toilet.i) No need of connectivity to the sewage line,

septic tank. No disposal of sludge isrequired.

j) Routine cleaning chemicals like phenyl,soap, kerosene etc. do not harm Bio Toiletor the inoculums.

F. ELECTRONIC WASTE

A new type of hazardous waste has comeup in recent years, namely electronic waste. E-waste consists of all waste from electronic andelectrical appliances which have reached theirend- of- life period or are no longer fit for theiroriginal intended use and are destined forrecovery, recycling or disposal. It includescomputer and its accessories monitors, printers,keyboards, central processing units; typewriters,mobile phones and chargers, remotes, compactdiscs, headphones, batteries, LCD/Plasma TVs,air conditioners, refrigerators and otherhousehold appliances.

The composition of e-waste is diverse andfalls under hazardous and non-hazardouscategories. Broadly, it consists of ferrous andnon-ferrous metals, plastics, glass, wood andplywood, printed circuit boards, concrete,ceramics, rubber and other items. Iron and steelconstitute about 50% of the waste, followed byplastics (21%), non-ferrous metals (13%) andother constituents. Non-ferrous metals consistof metals like copper, aluminium and preciousmetals like silver, gold, platinum, palladium andso on. The presence of elements like lead,mercury, arsenic, cadmium, selenium,hexavalent chromium, and flame retardantsbeyond threshold quantities make e-wastehazardous in nature. It contains over 1000different substances, many of which are toxic,and creates serious pollution upon disposal.Obsolete computers pose the most significantenvironmental and health hazard among thee-wastes.

There are 10 States that contribute to 70per cent of the total e-waste generated in the


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country, while 65 cities generate more than 60per cent of the total e-waste in India. Amongthe 10 largest e-waste generating States,Maharashtra ranks first followed by TamilNadu, Andhra Pradesh, Uttar Pradesh, WestBengal, Delhi, Karnataka, Gujarat, MadhyaPradesh and Punjab. Among the top ten citiesgenerating e-waste, Mumbai ranks firstfollowed by Delhi, Bengaluru, Chennai, Kolkata,Ahmedabad, Hyderabad, Pune, Surat andNagpur.

The main sources of electronic waste in Indiaare the government, public and private(industrial) sectors, which account for almost70 per cent of total waste generation. Thecontribution of individual households isrelatively small at about 15 per cent; the restbeing contributed by manufacturers. Thoughindividual households are not large contributorsto waste generated by computers, they consumelarge quantities of consumer durables and are,therefore, potential creators of waste.

E-waste Management System in India

Most of the activities right from thecollection,transportation, segregation, dismantling,etc., are done by unorganized sectors manually.Being a rich source of reusable and preciousmaterial, E-waste is also a good source ofrevenue generation for many people in India.The big portion (rag pickers) of the Indianpopulation earned their livelihood by collectingand selling the inorganic waste-like plastics,polythene bags, glass bottles, cardboards, paper,other ferrous metals, etc. In absence of theadequate technologies and equipment, most ofthe techniques used for the recycling/treatmentsof E-waste are very raw and dangerous.Improper recycling and disposal operationsfound in different cities of India often involvethe open burning of plastic waste, exposure totoxic solders, dumping of acids, andwidespread general dumping. As a result,pollutants are dumped into the land, air, andwater, which are the cause of seriousenvironmental problems in India. Also, thelabourers and workers employed in thedismantling and recycling units are poorlyliterate and uneducated, lacking the basicknowledge about the serious occupational andhealth risks associated with the operations. Mostof the time, dismantling and recyclingoperations are performed by the workers

without proper Personnel ProtectionEquipment. Mostly hammers, chisels, handdrills, cutters, electric torch/burners, andsometimses electric drills are used fordismantling. These operations are carried outin very congested places in the centre of citiesand slums. Mostly, the dismantling andrecycling areas are without any proper lightingand ventilation. In absence of suitabletechniques and infrastructure, the workers andlabourers working in such areas are prone toserious occupational health hazards.

Putting the onus of re-cycling of electronicwastes (e-waste) on the producers, the Ministryof Environment and Forests (MoEF) has for thefirst time notified e-waste management rules.Under the new rules, producers will have tomake consumers aware about the hazardouscomponents present in the product. Also,instructions for consumers for handling theequipment after its use along with the dos anddonts. They will also have to give informationbooklets to prevent e-waste from being droppedin garbage bins.

However, according to the rules, bulkconsumers such as enterprises and governmentwill be responsible for recycling of the e-wastesgenerated by them. The bulk users have toensure that the e-waste generated by them ischannelized to authorised collection centres oris taken back by the producers.

They also have to maintain records of e-wastes generated by them and make suchrecords available with State Pollution ControlBoards or the Pollution Control Committees. TheState Pollution Control Board will be requiredto prepare and submit to the Central PollutionControl Board (CPCB) an annual report (basedon the data received by consumers) with regardto implementation of these rules, by September30 of every year. On receiving which, the CPCBwill have to prepare a consolidated annualreview on management of e-waste and forwardit to the government along with itsrecommendations by December 30 of everyyear.

G. URBAN POVERTY

Urban poverty is a major challenge beforethe urban managers and administrators of thepresent time. Though the anti-poverty strategycomprising of a wide range of poverty


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alleviation and employment generatingprogrammes has been implemented but resultsshow that the situation is grim. Importantly,poverty in urban India gets exacerbated bysubstantial rate of population growth, high rateof migration from the rural areas andmushrooming of slum pockets. Migration aloneaccounts for about 40 per cent of the growthin urban population, converting the ruralpoverty into urban one.

Moreover, poverty has become synonymouswith slums. The relationship is bilateral i.e.slums also breed poverty. This vicious circlenever ends. Most of the worlds poor reside inIndia and majority of the poor live in ruralareas and about one-fourth urban populationin India lives below poverty line. If we countthose who are deprived of safe drinking water,adequate clothing, or shelter, the number willbe considerably higher.

Further, the vulnerable groups such asScheduled Castes, Scheduled Tribes, Minorities,Pavement dwellers, etc., are living in acutepoverty. Housing conditions in large cities andtowns are depicting sub human lives of slumdwellers. With the reconstruction of povertyalleviation programmes in urban India, it isexpected that social and economic benefits willpercolate to the population below the povertyline. However, eradication of poverty andimproving the quality of life of the poor remainone of the daunting tasks.

Alleviation of urban poverty necessarily callsfor identification of the urban poor to be ableto chalk out an appropriate strategy. Thus withthe objective of putting in place a uniformcriterion to identify the BPL households inurban areas so that objectivity and transparencyis ensured in delivery of benefits to the targetgroups, the Planning Commission constitutedan Expert Group under the Chairmanship ofProfessor S.R. Hashim.

The Expert Group decided that poverty inUrban areas could be best captured byidentifying three categories of vulnerabilities,i.e., residential vulnerability, occupationalvulnerability and social vulnerability that theurban poor is subjected to. It was agreed toevolve a methodology to identify urban poorbased on the various dimensions of these threeareas of vulnerabilities to be qualified by anumber of indicators which would also give

an idea of the depth/intensity of thevulnerability.

Based on the above broad approach, theExpert Group recommends a three stageidentification process (i) Automatic Exclusion ;(ii) Automatic Inclusion ; and (iii) Scoring Index.

Stage 1: Automatic Exclusion: If the numberof dwelling rooms exclusively in possession ofthe household is 4 and above, that householdwill be excluded. Secondly, the householdpossessing any one of the assets, i.e., 4 wheelermotorized vehicle, AC Set and computer orlaptop with internet will also be excluded.Besides the households possessing any three ofthe following four assets, i.e., refrigerator,telephone (landline), washing machine, twowheeler motorized vehicle will also be excluded.

Stage 2: Automatic Inclusion: householdsfacing various kinds of deprivations andvulnerabilities viz. residential, social andoccupational vulnerabilities would beautomatically included in the BPL List.

a) Under residential vulnerability, If thehousehold is houseless or the householdhas a house with roof and wall made ofplastic/polythene or the household havingonly one room or less with the material ofwall being grass, thatch, bamboo, mud, un-burnt brick or wood and the material ofroof being grass, thatch, bamboo, wood ormud, then that will be automaticallyincluded.

b) Under occupational vulnerability, thehousehold having no income from anysource; any household member (includingchildren) engaged in a vulnerableoccupation like beggar/rag picker, domesticworker (who are actually paid wages) andsweeper/sanitation worker /mali); and allearning adult members in a household aredaily wagers or irregular wagers, then thathousehold should be automaticallyincluded.

c) Under social vulnerability, if there is nomember of the household aged 18 yearsand above (Child-headed household) orthere is no able-bodied person aged between18 and 60 years in the household or allearning adult members in a household areeither disabled, chronically ill or aged more


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than 65 years, then that household shouldbe automatically included.

Stage 3: Scoring Index: In the third and finalstage, the remaining households will be assignedscores from 1 to 12 based on various indicatorsof residential, social and occupationalvulnerabilities. Those households with scoresfrom 1 to 12 are to be considered eligible forinclusion in the BPL List in the increasing orderof the intensity of their deprivations meaningthereby that those with higher scores are moredeprived.

GOI Initiatives to Curb Urban poverty

a) Swarna Jayanti Shahari Rojgar Yojana

With a view to provide gainful employmentto the urban unemployed poor throughencouraging the setting up of self employmentventures and provision of wage employment Swarn Jayanti Shahari Rojgar Yojana (SJSRY)was launched in 1997 after subsuming theearlier three schemes of UBSP, NRY andPMIUPEP. SJSRY is funded on a basis of 75:25between the Centre and States. The schemerests on a foundation of communityempowerment towards this ends, communityorganizations like Neighbourhood Groups(NHGs), Neighbourhood Committees (NHCs)and Community Development Societies (CDSs)are to be set up in the target areas.

At the National level the Ministry ofHousing & Urban Poverty Alleviation shall bethe nodal Ministry for implementation of SJSRY.At the Central level, a Steering Committeeheaded by Secretary (HUPA) and havingmembers from the States/UTs, Ministry ofFinance, RBI, and other stakeholders willmonitor the Scheme. This Committee will bemeeting at least once in every three months. Atthe State level also, a State Level MonitoringCommittee having members from the Banks,Micro Finance Institutions, Civil Society, andother stakeholders will be set up to effectivelymonitor the Scheme. This Committee will bemeeting at least once in every three months. Atthe Urban Local Body level an Urban PovertyAlleviation & Livelihood Development Cell willcoordinate and implement the scheme with asuitable monitoring system put in place.

b) Jawaharlal Nehru National UrbanRenewal Mission

JNNURM aim is to encourage reforms andfast track planned development of identifiedcities. Focus is to be on efficiency in urbaninfrastructure and service delivery mechanisms,community participation, and accountability ofULBs/ Parastatal agencies towards citizens.

Objectives of the Mission

i. The objectives of the JNNURM are toensure that the following are achieved inthe urban sector;

ii. Focussed attention to integrateddevelopment of infrastructure services incities covered under the Mission;

iii. Establishment of linkages between asset-creation and asset-management througha slew of reforms for long-term projectsustainability;

iv. Ensuring adequate funds to meet thedeficiencies in urban infrastructuralservices;

v. Planned development of identified citiesincluding peri-urban areas, outgrowthsand urban corridors leading to dispersedurbanisation;

vi. Scale-up delivery of civic amenities andprovision of utilities with emphasis onuniversal access to the urban poor;

vii. Special focus on urban renewalprogramme for the old city areas to reducecongestion; and

viii. Provision of basic services to the urbanpoor, including security of tenure ataffordable prices, improved housing, watersupply and sanitation, and ensuringdelivery of other existing universal servicesof the government for education, healthand social security.

c) Rajiv Awaas Yojana

With an aim of creating a slum-free IndiaRajiv Awas Yojana (RAY) was launched tofacilitate affordable housing for slum dwellers.The Centre would provide financial assistanceto States willing to assign property rights toslum dwellers for provision of shelter and basiccivic and social services for slum re-developmentand for creation of affordable housing stockunder the RAY scheme.


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The scheme is expected to cover about 250cities, mostly with population of more than onelakh across the country by the end of 12th Plan(2017).

The Centre will bear 50 per cent of the costof slum re-development. To encourage creationof affordable housing stock, the existing schemesof Affordable Housing in Partnership andInterest Subsidy Scheme for Housing the UrbanPoor have been dovetailed into RAY.

In order to encourage private sectorparticipation in slum re-development, Centralassistance can be used by the States and citiestowards viability gap funding.

Credit enablement of the urban poor andthe flow of institutional finance for affordablehousing is an important component of thescheme. The government has agreed to establisha mortgage risk guarantee fund to facilitatelending the urban poor for housing purposeswith an initial corpus of Rs. 1000 crore.

The scheme has been designed on the basisof experience of the Jawaharlal National UrbanRenewal Mission (JNNURM) sub-mission ofBasic Services to the Urban Poor (BSUP) andthe Integrated Housing and UrbanDevelopment Programme (HSDP). Under theseschemes, government had sought to take actionfor inclusive urban growth by enabling redevelopment of slums with basic amenities anddecent housing with security of tenure.

The inclusive city growth process will leadto enactment of productivity at the bottom ofthe pyramid and will sustain the contributionof cities to the Gross Domestic Product.

H. HAPHAZARD GROWTH OF REALESTATE SECTOR

The real estate sector is a critical sector ofIndia economy. It has a huge multiplier effecton the economy and therefore, is a big driverof economic growth. It is the second-largestemployment-generating sector after agriculture.Growing at a rate of about 20% per annumand this sector has been contributing about 5-6% to Indias GDP. Not only does it generate ahigh level of direct employment, but it alsostimulates the demand in over 250 ancillaryindustries such as cement, steel, paint, brick,building materials, consumer durables andso on.

But the most important obstacle tosustainable growth of cities is the total lack ofregulation of this sector, nowadays it is lacedwith black money, corruption, red tapism, landmafias and corruption. It is also recognisedthat existing laws on land registry, transfer ofproperty, contracts and related matters arethemselves inadequate in this context, areimplemented by different authorities and theycast no responsibility (or liability) on thebuilder/developer for observing certain corenorms in the contracts with home-buyers. Inrecent years, considerable progress has beenmade in setting up empowered regulatorybodies for the financial sector for investmentsin corporates, companies and mutual funds.

Recently GOI has also introduced The RealEstate (Regulation And Development) Bill, 2013- to provide a uniform regulatory environmentin the real estate sector which is laced withblack money, corruption, red tapism, landmafias and corruption. The core objective ofthis Bill are twofold i.e. to ensure sale ofimmovable properties in an efficient andtransparent manner and to protect the interestof consumers in the real estate sector.

Major Highlights of the Bill

The provisions of this Bill are applicableonly to residential projects.

Prior approval before launch andadvertisement- This Bill contains provisionsrestricting launch of projects oradvertisements unless all approvals arereceived and all the agents are not expectedto facilitate the sale of immovable propertywhich are not registered with the Authorityand to maintain books of accounts, recordsand documents.

Mandatory deposit of funds- It makesmandatory upon the promoters to deposit70 per cent or such lesser per cent asnotified by the government to cover theconstruction cost of the project of funds ina separate bank account to ensure timelycompletion and prevent fund diversion.

Registration of real estate project and realestate agent - The Bill also ensuresmandatory registration of real-estateprojects and real-estate agents with theAuthority, except when the land proposedto be developed is less than 1000 square


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metres. This provision is likely to provideanother level of protection to buyers whilealso preventing concerns regarding moneylaundering by the non-organised brokercommunity.

Disclosing of mandatory information - Thereal estate agents/developers are nowrequired to disclose material informationsuch as details of the promoters, project,layout plan, plan of development works,land status, carpet area (as opposed tosuper area) and number of the apartmentsbooked, status of the statutory approvalsand disclosure of proforma agreements,names and addresses of the real estateagents, contractors, architect, structuralengineer, etc. on the Authority's website.

Restriction on taking advance - Prohibitionon taking more than ten percent as advancefrom the buyers without a writtenagreement and also the developers/agentsare required to refund to buyers the fullamount in case of delay of projects.

Liability/ Penalty The Bill prescribes forcivil and criminal liability for thecontravention of various provisions of theBill, such as, imprisonment up to three yearsor a penalty up to ten per cent of theestimated cost of the real estate project forprojecting out misleading information inadvertisement or prospectus.

Real estate regulatory authority The Billgives the power to establish one or moreReal Estate Regulatory Authority in eachState/UT, or one Authority for two or moreStates/UT, by the Appropriate Government,specifying their functions, powers, andresponsibilities to exercise oversight of realestate transactions. The Bill shall alsoappoint adjudicating officers to settledisputes between parties, and to imposepenalty and interest.

Real Estate Regulatory Authority Powersand Functions

The Authority will act as a nodal agencyto co-ordinate efforts regardingdevelopment of the real estate sector andrender necessary advice to the appropriateGovernment to ensure the growth andpromotion of a transparent, efficient andcompetitive real estate sector.

The authority shall ensure compliance ofthe obligations cast upon the promoters and

the allottees and to cause an inquiry to bemade into compliance of its orders ordirections made in exercise of its powers.

To host and maintain a website of recordsof all real estate projects within itsjurisdiction as database, with all details asprovided in the application for registrationunder the Act, for projects, for whichregistration has either been granted orcancelled as the case may be.

To make recommendations on protectionof interest of the allottees, measures toimprove the processes and procedures forclearance and sanction of building plansand development projects from theCompetent Authority; and constructionand maintenance of structurally safe,environmentally sustainable, and low costbuildings, apartments and properties andany other form of assistance or advocacyto promote competition and efficiency inthe real estate sector.

Regulatory Authority shall have the powerto call for information, conductInvestigations, and make inquiry in theaffairs of promoters where it considersexpedient to do so.

Regulatory Authority has the power to Issuedirections to promoters and allottees fromtime to time and such directions are bindingon all concerned.

Powers of the Regulatory Authorityconsequent upon lapse of or cancellationof registration of the promoter torecommend to the Competent Authority tohave the remaining development works,carried out from the proceeds of theenforcement of bank guarantee and recovercharges incurred on the said developmentworks due from the promoter.

The Regulatory Authority shall have powersto regulate its own procedure and shall beguided by the principles of natural justiceand shall have all the powers as are vestedin a Civil Court under the Code of CivilProcedure,1908

Penalties

Any promoter who fails to register inaccordance with the provisions of the RealEstate (Regulation and Development) Bill,2013 shall be punishable with imprisonmentfor a term which may extend to three years,


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or a penalty which may extend to ten percent of the estimated cost of the real estateproject, or with both.

If any promoter contravenes any otherprovisions of this Bill, other than thatprovided above, or the Rules or Regulationsmade , he shall be liable to a penalty whichmay extend to five per cent of the estimatedcost of the real estate project.

Any promoter who wilfully fails to complywith orders of the Authority shall be liableto a minimum penalty of one lakh rupeesfor every day during which such defaultcontinues, which may extend to five percent of the estimated cost of the real estateproject.

Any promoter who unfully fails to complywith the orders of Appellate Tribunal shallbe punishable with imprisonment for a termwhich may extend to one year or with apenalty which may extend to ten per centof the estimated cost of the real estateproject, or with both.

Way Forward to Tackle Issues Related toUrbanization

India needs to work on several areas tomanage its urbanization. The following areperhaps the most important: Inclusive cities,urban governance, funding, planning, capacitybuilding and low-income housing. India alsoneeds to start a political process where theurban issues are debated with evolution ofmeaningful solutions. The areas are:

Inclusive Cities: The poor and lowerincome groups must be brought into themainstream in cities. Regulations intendedto manage densities and discouragemigration both limit the supply ofland andrequire many households toconsume more land than they wouldchoose. This drives urban sprawl andpushes up the price of land and the cost ofservice delivery for all. High standards forparking, coverage limits, setbacks, elevators,road widths, reservations for health centresschools etc. (often not used) prevent thepoor from choosing how much to consumeof the costliest resource (urban land) to puta roof over their heads, and comply withlegal requirements. Informality is now theonly path to affordable housing for the bulkof the population in Indias cities. But

informality implies illegality and thereforevulnerability. While lower income groupspay dearly for shelter and servicestheyare bereft of normal property rightsprotection and their investments are thusfar riskier than those of the well off. Theymust instead depend on the good will ofbureaucrats and politiciansto safeguardtheir homes and places of business. Thesebarriers to healthy urbanization come notonly at a high human cost, but take a tollon productivity. Chronic informalitydiscourages the very investments ineducation, health and housingimprovements the lower classes need toimprove their own lot and contribute moreto the national economy.

Urban Governance: Meaningful reformshave to happen that enable true devolutionof power and responsibilities from the statesto the local and metropolitan bodiesaccording to the 74th Amendment. This isbecause by 2030, Indias largest cities willbe bigger than many countries today. Indias urban governance of cities needs anover-haul. Indias current urbangovernance is in sharp contrast to largecities elsewhere that have empoweredmayors with long tenures and clearaccountability for the citys performance. India also needs to clearly define the relativeroles of its metropolitan and municipalstructures for its 20 largest metropolitanareas. With cities growing beyondmunicipal boundaries, having fully formedmetropolitan authorities with clearlydefined roles will be essential for thesuccessful management of large cities inIndia.

Financing: Devolution has to be supportedby more reforms in urban financing thatwill reduce cities dependence on the Centreand the states and unleash internal revenuesources. Consistent with most internationalexamples, there are several sources offunding that Indian cities could tap into, toa far greater extent than today: Monetizingland assets; higher collection of propertytaxes, user charges that reflect costs; debtand public-private partnerships (PPPs); andcentral/state government funding. However, internal funding alone will notbe enough, even in large cities. A portionhas to come from the central and stategovernments. Here one can use central


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schemes such as JNNURM and Rajiv AwasYojana but eventually India needs to movetowards a systematic formula rather thanad-hoc grants. For large cities with deepeconomies, this might mean allowing themto retain 20 per cent of goods and servicetax (GST) revenues. This is consistent withthe 13th Central Finance Commissionsassessment that GSTa consumption-basedtax that creates local incentives for growthand that is therefore well suited for directallocation to the third tier of government. For smaller cities, however, a better optionwould be to give guaranteed annual grants.

Planning: India needs to make urbanplanning a central, respected function,investing in skilled people, rigorous factbase and innovative urban form. This canbe done through a cascaded planningstructure in which large cities have 40-yearand 20-year plans at the metropolitan levelthat are binding on municipal developmentplans. Central to planning in any city isthe optimal allocation of space, especiallyland use and Floor Area Ratio (FAR)planning. Both should focus on linkingpublic transportation with zoning foraffordable houses for low-income groups. These plans need to be detailed,comprehensive, and enforceable.

Local capacity building: A real step-up inthe capabilities and expertise of urban local

bodies will be critical to devolution andimprovement of service delivery. Reformswill have to address the development ofprofessional managers for urbanmanagement functions, who are in shortsupply and will be required in largenumbers. New innovative approaches willhave to be explored to tap into the expertiseavailable in the private and social sectors. India needs to build technical andmanagerial depth in its city administrations. In the Indian Civil Services, India has abenchmark for how to build a dedicatedcadre for governance. It now needs tocreate an equivalent cadre for cities, as wellas allow for lateral entry of private-sectorexecutives.

Affordable housing: Affordable housing isa particularly critical concern for low-income groupsin the absence of a viablemodel that caters to their needs. India canmeet the challenge through a set of policiesand incentives that will bridge the gapbetween price and affordability. This willenable a sustainable and economicallyviable affordable housing model for bothgovernment housing agencies and as wellas private developers. India also needs toencourage rental housing as an optionparticularly for the poorest of the poor, whomay not be able to afford a home even withthese incentives.

Documents

Issues Related to Urbanization