With India's urban population set to jump nearly 71 per cent by 2031, an expert committee on urban infrastructure has estimated that Rs 39.2 lakh crore worth of investments would be required to pump-up urban infrastructure over the next 20 years.
The high-powered expert committee on urban infrastructure — which submitted its report to Minister of Urban Development, Mr Kamal Nath, and the Minister of Housing and Urban Poverty Alleviation, Ms Kumari Selja — has also highlighted that economic growth momentum cannot be sustained if urbanisation is not actively facilitated. Nor can urban poverty be effectively addressed if the needs of the urban poor are isolated from the broader challenges of managing urbanisation, it added.
“The committee has stated that cities will have to become the engines of national development,” an official release said.
Noting that urban population was expected to rise from 350 million to 600 million by 2031, it estimated that urban infrastructure will require investment of Rs 39.2 lakh crore over the next 20 years. This includes Rs 17.3 lakh crore for urban roads, Rs 8 lakh crore for sectors delivering urban services such as water supply, sewerage, solid waste management, and storm water drains, and Rs 4 lakh crore for renewal and redevelopment including slums.
The high powered expert committee was chaired by Dr Isher Ahluwalia.
“Financing the large sums required to meet the investment needs of urban infrastructure is crucially dependent on the reform of institutions…The committee believes that municipal entities need to be strengthened,” it added.
The committee has also recommended a new improved version of Jawaharlal Nehru National Urban Renewal Mission. The new version should have a clear focus on capacity building and a programmatic approach, be open to all cities and towns and cater to the needs of municipal corporations, municipalities and nagar panchayats.
The committee recommended that the scale of the mission be expanded from 0.1 per cent of GDP to 0.25 per cent of GDP every year, and the new mission should be a 20-year scheme beginning 2012-13.