You are on page 1of 36

Infrastructure Planning and

Urban & Rural Infrastructure
Population Growth
Electricity Consumption
Water Demand Forecast
Water Scarcity
Water Supply
Expenditure Growth
Urban population Growth
Urban Issues
• By 2030, India’s largest cities will be bigger than
many countries today.
• Urban population and incomes increase, demand
for every key service such as water,
transportation, sewage treatment, low income
housing will increase five- to sevenfold in cities of
every size and type.
• Reports suggest that India spends $17 per capita
per year in urban infrastructure, whereas the
most benchmarks suggest a requirement $100.
• Local Capacity building
• Autonomy to local bodies.
Urban Issues
• long tenures and clear accountability of
• Regulator, implementer and policy makers
exist and they are independent
• Performance incentives and org. restructuring
• Multiple stakeholders
• long tenures and clear accountability of
Rural Issues
• Population Density is Low
– 15.75 times lower than urban areas
• Economies of Scale?
– No. Fixed costs (Installations) - High
– Variable Costs (User costs) – Low
• Capacity Building
• Monitoring system
Current Schemes-Urban
• RAY- Rajiv Awas Yojana
• Smart Cities Mission
• AMRUT – Atal Mission for Rejuvenation and
Urban Transformation
• PMAY – Pradhan Mantri Awas Yojana
• Themes – Infrastructure, Governance and pro-poor
• Scope – 63 Cities
• Scale – Rs. 1,00,000 Crores
• Infrastructure Mandate
– Urban transportation
– Water supply
– Sanitation
– City beautification and so on
• Contingent on reforms
Mandatory Reforms
1. Modern accounting systems
2. E- governance, GIS
3. Reform of property tax so that ULBs get more revenue
4. Levy of user charges
5. ULBs are in charge of local infrastructure delivery
6. Decentralization and implementation of 74th CAA
7. Public disclosure law
8. Community participation law
9. Introduction of regulators
10. Repealing Urban land ceiling acts, rent control etc
Optional Reforms
• Some of these have to be implemented over
a period of time, but not immediately
– Streamlining approvals and permit procedures.
– Rainwater harvesting by laws
– Encouraging PPPs
– Admin and structural reforms
• “Slum Free India”
• Launched in June 2011 in two phases.
– 2011-13- Preparatory Phase
– 2013-2022- Implementation
• Two step implementation strategy, Preparation of
Slum-free City Plan of Action, Slum specific DPR
• Integrated approach is adopted with housing,
basic civic infrastructure and social amenities.
• Continued under PMAY.
Funding Pattern-RAY
PMAY-“Housing for all by 2022”
• Launched on 17th June 2015.
• 4 avenues
– Slum rehabilitation of slum dwellers with participation of
private developers using land as a resource.
– Promotion of affordable housing for weaker sections
through credit linked subsidiary
– Affordable housing in partnership with Public & Private
– Subsidiary for beneficiary –led individual house
construction or enhancement
• As on 25th July 2016, 34 States/UTs signed MoA, 2802 cities
• The government also proposed setting up a technology sub-
mission for supporting HFA mission, the sub- mission will help
in adapting new and sustainable technologies for rapid
• Centrally Funded.
• The central government offers a grant of Rs 1 lakh per house
for the ones developed in the slum rehabilitation programme
• Offers a subsidy on interest up to 6.5% for a loan period of 15
years through credit linked subsidy.
• It offers Rs. 1.5 lakhs if the houses are being developed by the
beneficiary himself or in the case of private partnerships for
affordable housing projects.
• Central Monitoring and Sanctioning Committee (CMSC), State
Level Monitoring committee are formed for the
Mandatory Reforms
• States are required to make changes in the procedure and
rules removing the need for Non-agricultural (NA)
• states and UT’s will amend master plans marking land for
affordable housing.
• Single – window clearance system will be established.
• Increase FSI/FAR/TDR for low income housing.
• Amend existing rental laws on the lines of model tenancy act
being prepared by the government.
• Use deemed building permission approach and layout
approval on the basis of preapproved layouts and plans. They
can choose to exempt approval for buildings below
certain plot area
• Launched on 24 June 2015.
• Areas of focus :
– water supply,
– sewerage facilities and septage management,
– storm water drains to reduce flooding,
– pedestrian, non-motorized and public transport facilities, parking
spaces, and v. enhancing amenity value of cities by creating and
upgrading green spaces, parks and recreation centers, especially for
• Centrally sponsored, Rs. 50,000 Cr allocated for 5 years from
• 10% of the budget is awarded as incentive for states that carry
out reforms.
Smart Cities
• Core Infrastructure elements:
– adequate water supply,
– assured electricity supply,
– sanitation, including solid waste management,
– efficient urban mobility and public transport,
– affordable housing, especially for the poor,
– robust IT connectivity and digitalization,
– good governance, especially e-Governance and citizen
– sustainable environment,
– safety and security of citizens, particularly women, children
and the elderly,
– health and education.
Smart Cities
• Mission will cover 100 cities and its duration is five years FY2015-
16 to 2019-20.
• Strategic components of development
– Retrofitting: It will introduce planning in an existing built-up
area to achieve Smart City objectives.
– Redevelopment: It will effect a replacement of the existing built-
up environment
– Greenfield development: It will introduce most of the Smart
Solutions in a previously vacant area (more than 250 acres)
using innovative planning, plan financing and plan
implementation tools
– Pan-city development : It envisages application of selected
Smart Solutions to the existing city-wide infrastructure.
Smart cities
• Centrally sponsored scheme; 1Lakh crore allocated.
• Selection based on Smart City Proposal (SCP)
contains the vision, plan for mobilisation of resources and intended
outcomes in terms of infrastructure up-gradation and smart applications.
• Cities then set up SPV and implement SCP, The state and ULB
will be promoters with 50:50 equity
• Can be implemented in convergence with other urban
development schemes.
Current Schemes- Rural
• PMAY-Gramin
• Pradhan Mantri Gram Sadak Yojana
• Rajiv Gandhi Grameen Vidyutikaran Yojana
• Deen Dayal Upadhyaya Gram Jyoti Yojana
• Previously implemented as Indira Awaas Yojana.
• Goal- assistance to 1.00 crore houses in rural
areas between 2016-2019.
• Unit assistance of Rs 1,20,000/- in plain regions,
Rs.1,30,000 in hilly states.
• National Technical support agency setup.
• Guidelines set to be released in 2016.
• 2014-2015 – 32.89% of the target achieved.
Pradhan Mantri Gram Sadak Yojana
• Introduced in 2000 as a centrally sponsored
• Identified 1,78,184 unconnected inhabitants,
of which 67% are now connected.
• Government plans to accelerate the project to
completion by 2019.
• From the year 2015-16 the fund sharing
pattern is 60:40 between the central and
Deen Dayal Upadhyaya Gram Jyoti Yojana

• Introduced in 2015, Replaces RGGVY.

• The government plans to invest ₹756 billion for rural
electrification under this scheme
• Objectives:
– To provide electrification to all villages
– Feeder separation to ensure sufficient power to farmers
and regular supply to other consumers
– Improvement of Sub-transmission and distribution
network to improve the quality and reliability of the supply
– Metering to reduce the losses
• As of June 2016 98.5% villages are electrified.
73rd CAA (11th Schedule)
• Constitutional status to the Panchayati Raj Institutions
in India
• Article 40 of the Constitution provided for the
organization of village Panchayats to enable them to
function as the units of self-government.
• The state legislature may devolve powers and
responsibilities upon Panchayats at the appropriate
level with respect to:-
(a) The preparation of plans for economic development
and social justice;
(b) The implementation of schemes for economic
development and social justice as may be entrusted to
them, including those in relation to the 29 matters
listed in the Eleventh Schedule.
73rd CAA (11th Schedule)
• Agriculture, including agricultural extension.
• Land improvement, implementation of land reforms, land consolidation and soil
• Minor irrigation, water management and watershed development.
• Animal husbandry, dairying and poultry.
• Fisheries.
• Social forestry and farm forestry.
• Minor forest produce.
• Small scale industries, including food processing industries.
• Khadi, village and cottage industries.
• Rural housing.
• Drinking water.
• Fuel and fodder.
• Roads, culverts, bridges, ferries, waterways and other means of communication.
• Rural electrification, including distribution of electricity.
• Non-conventional energy sources.
73rd CAA (11th Schedule)
• Poverty alleviation programme.
• Education, including primary and secondary schools.
• Technical training and vocational education.
• Adult and non-formal education.
• Libraries.
• Cultural activities.
• Markets and fairs.
• Health and sanitation, including hospitals, primary health centres and
• Family welfare.
• Women and child development.
• Social welfare, including welfare of the handicapped and mentally retarded.
• Welfare of the weaker sections, and in particular, of the Scheduled Castes and the
Scheduled Tribes.
• Public distribution system.
• Maintenance of community assets.
74th CAA (12th Schedule)
• Constitution of India was amended to
incorporate a separate Chapter on urban local
bodies, which seeks to redefine their role, power,
function and finances.
• The Legislature of a State may by law entrust on
these bodies such power and authority as may be
necessary to enable them to function as
institution of local self government, including
those listed in the Twelfth Schedule
• District Planning Committee, Metropolitan
Planning Committee
• State level Finance commission for review.
Urban Governance – 3 Tier System
74th CAA (12th Schedule)