Urban Infrastructure

SUBMITTED BY:
 Jay Dakshina 31908
 Ghazala Khan 31918
 Hardi Mer 31928
 Jaydev Oza 31930
Submitted to:-  Radhik Parmar 31938

Dhara Ma’am  Nikhil Raval 31948

 Niraj Sundra 31958
 Introduction
Why Urbanization is needed and what includes in urban infrastructure ?
• Urbanization is the migration of population from rural to urban areas as urban areas provide higher
productive job opportunities as compared to agriculture.
• The process facilitates full realization of economic potential of the country.
• To facilitate this, urban areas need to be ready with physical infrastructure, jobs, and livelihoods.
• Eight major urban infrastructure sectors: Water supply, sewerage, solid waste management,
storm water drains, urban roads, urban transport, traffic support infrastructure and
street lighting.
• Apart from creating new physical infrastructure, focus also needs to be on reforming governance for
improvement in delivering services and operations and maintenance of existing infrastructure.
 Why urban infrastructure is needed?
• 31% of India’s current population lives in urban areas contributing to 63% of India’s GDP
(Census 2011)
• Increasing urbanisation, urban areas are expected to house 40% of India’s population and
contribute to 75% of India’s GDP by 2030
• Better living standard
• Country’s development
• Provide basic needs
 Different schemes by government of India
1). JnNURM (Jawahar Lal Nehru National Urban Renewal Mission)
▫ The JnNURM was launched in 2005 as the first flagship scheme of this Ministry.
▫ Aim of the mission was to encourage reforms and fast track planned development of identified
mission cities.
▫ Two schemes for 65 mission cities were:
 The Scheme for Urban Infrastructure and Governance (UIG)
 The Scheme for Basic Services to the Urban Poor (BSUP)
▫ Two schemes for non-mission cities were:
 The Urban Infrastructure Development Scheme for Small and Medium Towns
(UIDSSMT)
 The Integrated Housing and Slum Development Program (IHSDP)

HOUSING UNDER JNNURM

• Success stories…
The Mission had helped some ULBs to take up projects on a scale they had never attempted
earlier, and quite a few successful urban infrastructure projects have resulted from such
support. Some e.g. are below..
 Nagpur had launched a series of initiatives towards an integrated development of its water
sector including a continuous water supply project for 10 per cent of its
population. The plan to scale the project to city level was also approved under the
JNNURM.
 Navi Mumbai’s 100 per cent city-wide sanitation plan is being funded under the
JNNURM.
 The revamp of the solid waste management system in Rajkot was facilitated through
JNNURM funds, and it has transformed Rajkot into one of the cleanest cities in the country.
 India’s first full BRTS at Ahmedabad, which received many accolades both nationally and
internationally, was also funded through the JNNURM.

JNNURM city bus in Vijayawada
A bus by JNNURM scheme used
by West Bengal Transport
Infrastructure Development
Corporation Limited, in the capital
city of Kolkata
• Failure stories…
Ranchi Municipal Corporation (RMC) had a mixed score card. For five years ending at
March 2013, it had a 150% revenue growth, but still poor execution of many multi – crore
JNNURM projects
 The JNNURM’s integrated drainage and sewerage project worth Rs 1,600 crore (USD 0.26
billion), envisaged in 2006, got stuck in a series of hurdles, as there was dispute over
outsourcing the project to a Singapore-based firm. The matter was sub-judice till 2012, many
loopholes were found in the detailed project report prepared by the Singapore firm, and at the
end of it all, the first phase of JNNURM had ended. The net result was the state could not
collect the Centre’s  Rs 1,600 crore for the integrated drainage and sewerage project in a capital
that sorely needs basic sanitation.
 RMC managed to use only 50 per cent of Rs 200 crore meant for the JNNURM’s drinking water
pipelines laying project, being implemented by Hyderabad-based IVRCL Ltd.
 2). AMRUT (Atal Mission for Rejuvenation and Urban Transformation)
(AMRUT) was launched by Prime Minister of India Narendra Modi in June 2015

▫ The purpose of (AMRUT) is to:

 Ensure that every household has access to a tap with assured supply of water and a
sewerage connection
 Increase the amenity value of cities by developing greenery and well maintained
open spaces (e.g. parks)
 Reduce pollution by switching to public transport or constructing facilities for non-
motorized transport (e.g. walking and cycling)
 Water Supply Projects, Sehore,
Plantation Drive, Uttar Pradesh
Madhya Pradesh
 3). SMART CITY MISSION
• Launched in the year 2014 with an aim to have 100 smart cities.
• With bottom-up approach has the key planning principle, the mission aims to
develop basic infrastructure like power and water supply, good sanitation and urban waste
management, efficient public transport, e-governance etc.
• The mission is centrally funded with a budgetary allocation of 48,000 crore for the selected
cities.
• Special Purpose Vehicle (SPV) is created for implementation of the mission; this involves
an active support from State Governments and Urban Local Bodies.
• SPV is headed by a full time CEO and have nominees of Central, State and ULB on its Board.
• Various foreign countries have shown interest in the project like Japan is supporting to
build Chennai, Ahmedabad and Varanasi as smart cities.
 4). PRADHAN MANTRI AWAS YOJANA
• Construct 2 crore houses across the nation under the mission Housing for All by 2022.
• Covers all 4041 statutory towns.
• Beneficiaries include economically weaker section (EWS), low income groups
(LIGs) and Middle-Income Groups (MIGs).
• The beneficiary family should not own a pucca house either in his/her name or in the
name of any member of his/her family in any part of India.
• Central assistance to Urban Local Bodies
• In-situ rehabilitation of slum dwellers using land as a resource through public –
private partnership.
• Credit Linked Subsidy (CLSS)
• Subsidies for beneficiaries for house construction or enhancement.
• Geo-tagging to monitor the progress of house construction.
• Public Financial Management System (PFMS) to ensure electronic fund flow
• Technology Sub-Mission to implement new construction technologies.
 Andhra Pradesh topped the chart with 20 lakh houses sanctioned followed by Uttar Pradesh with 15.54 lakh houses,
Tamil Nadu 7.36 lakh houses, revealed NAREDCO. Source: zee news
 5). SWACH BHARAT MISSION
 Modern and scientific Municipal Solid Waste Management
 To effect behavioural change regarding healthy sanitation practices
 Generate awareness about sanitation and its linkage with public health
 Capacity Augmentation for Urban Local Bodies (ULBs)
 To create an enabling environment for private sector participation in Capex (capital expenditure)
and Opex (operation and maintenance)
With an outlay of USD 9.54 billion, it covers 4,041 statutory towns, close to 8 million
households. A total amount of USD 433 million has been sanctioned for 2016-17 under this
scheme.
 6). Heritage Infrastructure Development and Augmentation Yojana (HRIDAY)
 HRIDAY aims to preserve and revitalize the great cultural heritage of the country.

 A Central Sector Scheme.

 The 12 cities selected for the scheme are Ajmer, Amritsar, Amravati, Badami,
Dwarka, Gaya, Warangal, Puri, Kanchipuram, Mathura, Varanasi and
Velankanni.

 Combining urban planning, economic growth and heritage preservation together for
heritage cities.

 To enhance beautification and connectivity of heritage cities.

Ajmer under HRIDAY
 Infrastructure Financing
• Generally, in most countries around the world, the government issues a list of industries
that are to be given infrastructure status. The financing of projects or companies involved
in these sectors is called infrastructure financing.
• Infrastructure financing has various sub-divisions. The different types of infrastructure
financing based on the type of industry that the funds will actually be utilized in are listed
below:

Types of Infrastructure Financing

Economic social commercial

 Infrastructure Finance: Sources of Funds
• Public Finance
• Supra National Financial Institution
• Private Finance
• Public-Private Partnership (PPP)

Different Types of Contracts for Infrastructure Projects

• PPP CONTRACT
• OPERATION AND MAINTAINANCE CONTRACT
• REHABILITATION CONTRACT
• BUILD OPERATE AND TRANSFER CONTRACT
• DIVESTITURES
Risks Faced By Infrastructure Projects in Emerging Markets
• Currency Fluctuation Risks
• Political Risks
• Capital Controls
• Opaque Policies
• Legal Risks
Major Infrastructure Bottlenecks in India
• Financing
• Land Acquisition
• Clearances from numerous agencies
• Environmental Impact Assessment (EIA)
• Poor pre-construction planning
 Key challenges in urbanization schemes

• India Lags on Implementation

• ‘Smart City’ – only 30 % of the sanctioned projects have been completed.
• Not enough progress in Pradhan Mantri Awas Yojana.
• Annually recurrence of floods in Mumbai, dengue in Delhi and lakes on fire in Bengaluru paint a dismal picture.
• Slow progress of Delhi-Mumbai Industrial Corridor project or bullet train project.
• Lacking Finance – low level of urban infrastructure investment and capacity building.
• Lacking planning and policy
• No clear land policy.
• ULBs don’t have enough powers and finances.
• Lacking micro level planning which includes infrastructures which are resilient to natural disasters
• Lacking citizen participation.
• Issue of urban migration, overpopulation and unemployment.
• Corruption and crony capitalism in real estate sector.
• Lacking commitment to environment sustainability and less focus on Climate resilient Infrastructure.
• Taking urbanization as challenge rather than opportunity.
• Less use of modern technologies.
 Suggestions
 There must be a more conducive environment for potential concessionaire. There is always a
worry of early clearances and investors are stuck in the bureaucratic cycle.

 There is a necessity for improvements in the investment climate.

 Migration of large population to urban centres is causing new cities to emerge and existing
ones to expand. This is causing rapid urbanization. Therefore, India needs to develop satellite
cities for which the need is of mass-transport systems.

 There must be Single window statutory clearance which even includes Environmental
clearance to projects.

 There are good competent people working in different departments of government, however
they are working in silos, we need better and effective coordination for a fast project roll out.
 CONCLUSION
• Urban infrastructure development is the crucial part for any developing country. Better the
infrastructure, the higher the job opportunities. High job opportunities leads to growth in
GDP resulting into development of the country.
• Also, by having a better infrastructure, we can easily invite the foreign investments and
companies to invest their money on our land to make plants. This results in revenue
generation in the country.
• In urban areas, people lack time and have quite busy schedule. Urban infrastructure has
become an important part of our lives as it has made our lives easier with less-struggling.
• Hence, it is important for any country to have a good urban infrastructure to be developed.
THANK YOU