Urban Development in India

Initiatives and

Opportunities

11th December 2015

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Presentation Outline

• Urbanization Scenario

• Urban Infrastructure -Investment Needs

• New initiatives and Investment opportunities Swachh Bharat Mission

Smart Cities AMRUT Metro Rail Projects

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India: Urban Scenario

Urbanization Scenario in India

India’s urban population has grown from 290 million in 2001 to 377 million in 2011 accounting to over 31.75% of the country’s population

Urban population is increasing at a rapid rate leading to gap between demand and supply of urban services

Urbanization Scenario in India

India is one of the fastest growing economies in the world today

India’s urban population is larger than the total population of United States and is second to China

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Approximately 60% of GDP of the country is derived from the Indian urban economy

Urbanization has thus emerged as a key policy and governance challenge in India in recent years

Larger cities are enhancing their participation in the global economy

Smaller cities are absorbing most of the rural-urban migration and strengthening linkages to the rural economy

Urbanization Scenario in India

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Urban Centers Growth

Type of Urban Units 2011 Census

2001 Census

Addition in 2001-11

1. Towns 7,935 5,161 2,774

(a) Statutory Towns 4,041 3,811 242

(b) Census Towns 3,894 1,350 2,532

2. Urban Agglomerations 475 384 91

3. Out Growths (OGs) 981 962 19

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Infrastructure Investments

Ministry of Urban Development, GoI

Infrastructure Investment

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The High Powered Expert Committee (HPEC)Investment Projections for 20 years (2012-31)Not Including Housing at 2009-10 prices

Investment Requirements: $ 650 Billion Operating & Maint. Cost : $ 330 Billion

Mckinsey Global Institute StudyInvestment Projections for 20 years (2012-31)Including Housing

The investment requirement :$ 1200 Billion Operation & Maint. Cost :$ 1000 Billion

March, 2011

April, 2010

India: FactsheetLand of more than A Billion people with 100 spoken languages

World’s Largest Democracy - Multi-Party Political System

Youngest Nation in the world with the lowest median age of 29 by 2020.

800,000 Engineers, 30,000 Doctors and 10,000 Chartered Accountants are added annually to the Indian Talent Pool

Consumption expenditure of USD 3.6 trillion by 2020

Urban population has increased from 26% in 1991 to 31% in 2010 and expected to be 40% by 2030 and 52% by 2050

42 cities currently have a population in excess of 1million rising to 68 by 2030

A USD 2 Trillion Dollar Economy

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New Initiatives Smart Cities

Swachh Bharat Mission

AMRUT

HRIDAY

Metro Funding

What is a Smart City? Smart City has –• Basic Infrastructure, • Uses ‘Smart’ solutions to make infrastructure & services

better, and • relies on Area Based Development.

Objectives:• Provide basic infrastructure.

• Quality of life.

• Clean and sustainable environment.

• Apply Smart Solutions.

• Set examples to be replicated both within and outside the Smart City and catalyze the creation of similar Smart Cities.

Smart Cities Mission Strategy

Develop Areas step-by-step – 3 models of area-based developments –• Retrofitting,• Redevelopment,• Greenfield

Pan-city initiative in which at least one Smart Solution is applied city-wide.

Area Based Development ModelsRetrofitting: Development of an existing built area greater than 500 acres so as to achieve the objective of smart cities mission to make it more efficient and livable e.g. Local Area Development (Ahmedabad)

Redevelopment: Replace existing built environment in an area of more than 50 acres and enable co-creation of a new layout, especially enhanced infrastructure, mixed land use and increased density e.g. Bhendi Bazar, Mumbai

Greenfield: Develop a previously vacant area of more than 250 acres using innovative planning, plan financing and plan implementation tools with provision for affordable housing, especially for the poor e.g. New Town, Kolkotta, Naya Raipur, GIFT City.

City wide Smart Solutions

Cities may add any

number of smart

solutions to the area

based developments

to make government funds cost effective.

Implementation & Financing

Each city will have a Special Purpose Vehicle (SPV).

The SPV will have complete flexibility to plan, implement, manage & operate and will be headed by a full time CEO.

Centre will invest a total of Rs. 50,000 crore ($8b) in 100 cities across the country for 5 years.

State / ULBs will mobilize additional resources required of Rs. 50,000 crore ($8b) as per 50:50 funding pattern.

These funds will act as a catalyst to attract funding from internal and external sources.

Way Forward

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Milestones Timelines100 Cities to submit their Smart City Plans/ Proposals

By 15 Dec, 2015

Committee of Experts to Evaluate Proposals based on pre-set criteria

By 15th Jan, 2016

Declaration of 20 Leading Smart City Proposals in Year – I

By 25 Jan, 2016

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Partnership opportunity in Smart City Program

Under the Smart City guidelines two types of international support have been envisaged.

• Technical assistance for preparation of Smart City Proposal (SCP) by identifying partner city.

• Infusion of funds in the SPV of a Smart City for implementation of projects.

• Balance funds are expected to be mobilized from various sources including leverage borrowings from financial institutions, including bilateral and multilateral institutions both domestic and external sources.

• SPV created for the purpose will be responsible for arranging such resources.

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Swachh Bharat Mission

Components of Swachh Bharat Mission 5.08 lakh Comm

unity and Public Toilet units

Household Toilets (10 Million house holds)• Centre Contribution – INR

4,000/- per Toilet (assumption Rs. 18,000 / toilet)• State Contribution – at

least INR 1,333/- per Toilet

Community Toilets

• 40% VGF/ Grant by Government of India

• Funding permitted for retrofitting non-operational toiletsPublic Toilets

• No GoI funding

• May combine some Public Toilets with Community Toilets

Solid Waste Management

• 20% VGF/Grant by GoI to each project

• High Focus on Decentralized SWM

• .

Partnership Opportunities

Finance

Construction

Capacity Building

Technology

• Public Private Partnerships

• Special Purpose Vehicles

• Waste to Energy Plants

• Public/ Community Toilets

• Transaction Advisory

• Handholding Cities/ Training

• Sanitation and Waste Management Solutions

• ICT Solutions

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AMRUT Atal Mission

For Urban Rejuvenation

and Transformation

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Service Level Gaps

Service Indicators National Benchmark

India Status

Water SupplyPer Capita supply of water 135 lpcd 69 lpcdExtent of metering of water connections 100% 13%Extent of non revenue water (NRW) 20% 32%Cost recovery in water supply services 100% 39%SewerageCoverage of toilets 100% 70%Collection efficiency of the sewage network

100% 10%SWMHousehold level coverage 100% 35%Extent of scientific disposal of municipal solid waste

100% 10%Storm Water DrainageCoverage of storm water drainage network 100% 46%

Source: Service Levels in Urban Water and Sanitation Sector-Status Report(2010-2011)Ministry of Urban Development

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AMRUT: Atal Mission For Urban Rejuvenation and Transformation

Mission for 500 Cities (With population more than 100,000)

Central Funding of Rs. 50,000 Crore (~$8b) Mission Period Five Years: 2014-2019 Financial Support for :

Drinking Water Sewerage Septage Storm Water drainage Urban Mobility Public Spaces/ Gardens Governance and Reforms

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AMRUT: Atal Mission For Urban Rejuvenation and Transformation

Approach: Central Government to Approve Annual

Plans State Governments to Approve Individual

Projects Urban Local Bodies to Implement

5 Years operation and maintenance is built in the Project and Contract

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URBAN TRANSPORT

INDIA: The current plans, challenges and opportunities within Urban Transport in India

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URBAN BUS TRANSPORT IS IMPORTANT AND HAS TO BE TRANSFORMED TO A LEVEL THAT IT CAN BE SOLD TO PUBLIC AS A

“BRANDED PRODUCT”

AIM TO REPLICATE METRO EXPERIENCE ON THE URBAN BUSES

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METRO RAIL

Urban Transport-Metro Rail Projects

City Kilometers Approx. Cost (US$ Million )Delhi 136.00 8391Mumbai 76.77 7040Bangalore 42.30 2580Kolkata 14.67 1037Chennai 46.05 3106Hyderabad 71.00 2638Jaipur 29.00 1777Cochin 25.30 1111

Finding resources!- Innovative Financing Mechanisms 29

Metro Rail supported on high demand corridors Reforms in urban transport made conditional to

sanction Delhi

190 kms running. Phase III 136 kms sanctioned

Bangalore- 7 kms operational Joint ownership with state

governments in Delhi, Bangalore, Kolkata, Chennai, Kochi and Mumbai

20% Viability Gap Funding for Urban transport projects on PPP

Mumbai Hyderabad

More projects for 15,600 million USD in pipeline

THANK YOU

Please Visit

http://moud.gov.in

http://smartcities.gov.in

http://amrut.gov.in

http://hridayindia.in