Relevance: Prelims/Mains: G.S paper III: Economy
Introduction:
- India is making holistic efforts to promote inclusive development “Sabka Saalh, Sabka Vikas, Sabka Vishwas” for a rapidly increasing urban population. The World Urban Prospects (WUP). 2018 estimates urban population in India at 34% of total population which is likely to be 40% by 2030 and 50% by 2050.
• The new wave of urbanization is expected to bring both opportunities and challenges. The urban share of GDP is projected to be 75% in 2030. an increase from 62-63% in 2009-10 (HPEC, 2011).
Missions for Urban Transformation 2014-19:
- The Government of India has initiated one of the most comprehensive programs of planned and systematic urban development in the entire world.
• More than 4,500 urban local bodies (ULBs) have been covered with flagship schemes like Swachh Bharat Mission Urban (SBM-U), Pradhan Mantri Awas Yojana Urban (PMAY-U) and Deendayal Antyodaya Yojana-National Urban Livelihood Mission (DAY-NULM) to address the issues of sanitation and cleanliness, affordable housing, and urban poverty alleviation.
• In addition, provision for universal water supply and sewerage/septage in 500 cities (with over 1 lakh population) have been taken up under Atal Mission for Rejuvenation and Urban Transformation (AMRUT).
• Heritage City Development and Augmentation Yojana (HRIDAY) was launched in 12 cities with the aim to preserve and rejuvenate the soul of their heritage character. A big push in urban transport, largely in the form of support to Mass Rapid Transit Systems (MRTS) has been initiated.
• The Smart Cities Mission (SCM) was launched in 100 cities aimed at improving core infrastructure and providing a decent quality of life to urban citizens using smart solutions.
Enhanced budgetary support and fund availability:
- Following the trend of the last five years, the recent Union Budget 2020-21 has allocated a total of Rs. 50.0-10 crore to the Ministry of Housing and Urban Affairs (MoHUA), which is substantially higher than the budget allocation (as per the revised figures) of Rs. 42,267 crore in 2019-20.
• Over and above this, there is provision of Rs.10.000 crore as Extra Budgetary Resource (EBR) for housing.
Cities as Engines of Economic Growth in India’s March to US $5 Trillion Economy
- Budget has set a definite goal i.e. aspiration to take the economy to US$ 5 trillion level backed with Aastha (Hope). Vishwas (Trust), and Akanksha (Aspirations) of 130 crore Indians. To boost infrastructure development, the Government has launched the National Infrastructure Pipeline (NIP) on 31 December, 2019 for the period 2020-2025.
- NIP is expected to improve ease of living, and provide equitable access to infrastructure for all. thereby making growth more inclusive. It intends to facilitate supply-side interventions in infrastructure development to boost GDP growth (Economic Survey 2019-20). Out of the projected total infrastructure investment of Rs. 103 lakh crore during the period FY 2020 to 2025, 16% has been earmarked for urban rejuvenation. With this investment, India can mitigate its urban challenges and bring positive impacts on the lives of not only the urban population, but also, at least 20 crore rural population, who live in the proximity of 70 big cities.
Promoting Investment for Urban Rejuvenation
- Since the launch of various urban flagship schemes, around Rs. 1.62,165 crore of central assistance has been released to date during the period 2014-20. It has led to total investment to the tune of Rs. 10.45,076 crore in the Sector, which includes contributions of States/ULBs, Beneficiaries and PPP partners.
• It is. therefore, clear that central assistance is generating around six and half times investments of its contribution for creating urban infrastructure. Further, total investment, estimated for the period 2020-25 is Rs. 17,74,167 crore.
• The development of urban areas will constitute a major part of the investment under NIP.
Urban Infrastructure: Focusing on Connectivity
- In Budget 2020-21, a total of Rs. 20,000 crore has been allocated for total MRTS and Metro Projects (higher allocation than previous year).
• Also, construction of 148 km long Bengaluru Suburban Transport project at a cost of Rs. 18,600 crore has been proposed for the Railways Ministry. Apart from these, budget earmarks provisions for Mumbai Ahmedabad High Speed Rail, Chennai-Bengaluru Expressway, Delhi-Mumbai Expressway and promotion of economic activities along river banks with waterways.
• Focus has been provided on digital connectivity through BharatNet program for all ULBs along with prepaid smart electricity meters with options for individual consumer to choose rates and provider/ sources (thermal or RE) of electricity.
Swachh Bharat Mission (Urban) for Cleaner and Healthier India:
- Water and sanitation have received priority in the budget as there is a direct association between sanitation practices and mortality and health outcomes (Economic Survey,
2018-19). Under the flagship program of Swachh Bharat Mission (Urban), so far, more than 66 lakh toilets have been constructed and more than 99% cities have become ODF.
• 1276 cities have been certified ODF+ and 411 as ODF++. Many others are under examination for such certifications.
• The progress in terms of Solid Waste Management (SWM) has also been commendable. Non-manual cleaning of septic tanks and sewers has been stressed upon in the Budget Speech, for which action is underway.
Har Ghar Jal: AMRUT:
- AMRUT scheme was launched in 500 cities with over 1 lakh population across the country in June 2015, which envisages achieving universal coverage of water supply and increasing sewerage and septage coverage from 31% to 62%.
• Under the scheme, State Annual Action Plans (SAAPs) for all State/UTs for Rs. 77,640 crore have been approved, of which half is dedicated to water supply, and 42% sewerage and septage.
• Projects worth Rs. 73,007 crore are under implementation; out of this projects worth Rs. 8,725 crore have already been completed. So far 71 lakh water tap and 43 lakh sewer connections have been provided under the scheme.
Promoting Water Conservation: Jan Andolan:
- The Ministry has launched Jal Shakti Abhiyan to make water conservation a “Jan Andolan” with four major thrust areas:
• a) Rain Water Harvesting;
• b) Re-use of treated
waste water;
• c) Rejuvenation of water bodies and
• d) Plantation.
• Poverty alleviation, livelihood and Skill Development The poor in cities, specially the fresh migrants face various deprivations related to occupational, residential, and social needs, which is to be addressed simultaneously in a comprehensive and in targeted manner.
• It is in this context that a mission-mode approach to urban livelihoods in the form of the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) was initiated.
• The primary target of DAY-NULM is the urban poor, including the urban homeless. Budget 2020-21 DAYNULM allocation is Rs. 795 crore.
• The Finance Minister has proposed to provide 1year internships to fresh engineers in all ULBs in order to enhance the skill of the youth to fulfill the dream of the Prime Minister. A scheme is being worked out in consultation with the States.
Ease of Living and Ease of Doing Business:
- MoHUA released the first ever ‘Ease of Living Index’ in 2018 covering 111 cities, and assessment for ‘Ease of Living Index 2019’ is currently in progress and will soon be released.
• As per World Bank’s Doing Business Report-2020, India’s rank in Ease of Doing Business is 63, compared to its 2019 ranking of 77.
• Also, India is becoming more time efficient in approval of construction permits. Currently, India ranks 27 in terms of construction permits, compared to rank of 185 in 2017.
• Online Building Permission System (OBPS) has been implemented in 2,506 cities, including 444 AMRUT cities so far. The Municipal Performance Index, launched by MoHUA in 2019 aims to build capacity and assess the performance of India’s municipal bodies on the five pillars of governance, technology, services, planning and finance.
Climate Change and Sustainable Urbanisation:
- A total of Rs. 4400 crore have been allocated for clean air and climate action in the cities. MoHUA has already initiated the Climate Smart Cities Assessment Framework, a pioneering
effort towards building capacity of its 100 smart cities on climate change adaptation and mitigation practices.
• As part of this endeavor, Ministry has started a Climate Smart Cities Alliance amongst cities and like-minded organisations.
Way Forward:
- The Government of India is committed to the vision of developing New India where towns and cities would function as fulcrums of economic growth.
• Promotion of ease of living, responsive governance, clean and sustainable environment, rapid economic growth, and livelihood opportunities for the citizens are pathways identified for a vibrant urban India.
• The Ministry is committed to building cities of the future following a comprehensive, inclusive, participatory, and data driven approach. It aims to scale up urban transformation with our learnings in smart cities and all other Missions in the nation’s journey towards US$5 trillion economy and a New India.
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