Urbanization in IndiaAchievements

and Opportunities

Neeraj Mandloi, IASJoint Secretary

Ministry of Urban Development

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Presentation Outline

• Urbanization Scenario

• Urban Infrastructure - Demand & Supply

Gap

• Technology Challenges

• Urban Governance - Challenges

• Investment Needs

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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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Strength of Indian Cities

Strong democratic institutions;

Growing middle class and enhanced paying capacity;

High density of mobile phone users leading to a high potential of m-governance;

8-10% overall growth of economy in last decade: Cities leading;

Untapped but huge potential of partnerships with private sector; and

Friendly governmental policies on FDI, JV, PPP, Technology transfer, Twinning of cities.

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Urban Issues/Challenges

Revenue base of Urban Local Bodies;

Infrastructure and Service Delivery Gaps;

Urban and Regional planning: Sanitation, Transport, Heritage;

Use of ICT in governance;

Capacity gaps; and

Sustainable development.

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Urban Infrastructure:Gaps & Issues

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Status of Urban Services

• Drinking Water availability within the premises is 71.2%;

• Only 32.7% of the urban population has access to piped sewer system;

• Average duration of water supply ranges from 1 - 6 hours;

• Only 21% of waste water is treated ;

• Waste collection efficiency ranges between 70% and 90% in major Metro cities;

• Segregation of solid waste is around 30%;

• Organized public transport system operational in more than 65 class-I cities; and

• BRTS and Metro projects are operational in selected Mega and Metropolitan cities.

Source: Census 2011, MoUD*Construction Stage

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Service Levels Gap

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%Sewerage

Coverage of toilets 100% 70%Collection efficiency of the sewage network

100% 10%

SWM

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

100% 10%

Storm Water Drainage

Coverage 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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Slums

Out of 4,041 Statutory Towns in Census 2011 Slums reported from 2,543 Towns (63%)

Total Slum Enumeration Blocks (SEBs) in Census 2011 is about 1.08 lakh in the country

Parameter No. of Households (in Lakhs)

Urban Households

789

Slums 137 (17.4%) Source: Census 2011, MoUD

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Urban Governance

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Ground IssuesThough empowered by the Constitution, Cities are not self reliant Depend on grants from Central/State Governments

Cities lack financial viability and internal accruals are insufficient

ULBs’ revenue sources inadequately capture the economic buoyancy in the local area - leading to overall weak credit

worthiness

Large capital expenditure on non-revenue generating projects - leading to under investment and deteriorating service levels

Inadequate infrastructure in cities; cities unable to meet rising demand for services and unable to raise resources

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Urban Infrastructure Issues- Vicious Cycle

Paucity of Funds

Under -Investments

Inadequate Infrastructur

e

Poor Quality of Services

Lack of Cost Recoveries

Economic Losses

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Infrastructure Investments

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URBAN TRANSPORT

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

Urbanization challenges

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2nd Largest urban system60% GDP generated from urban areas7935 towns and cities as per 2011 Census

9 megacities (4 million + population)53 cities with million plus population

Urban Transport not listed in Constitution of India- Responsibilities distributed mode wise

Motorization rates are high

• Cities are Sprawling

• Environmental Degradation

• Declining PT & NMT

• Low Investments

• Supply Side Focus

• Poor Enforcement

• Multiple Institutions

• Education of People

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Urban Transport Challenges

In 6 Metro Cities, during 1981 to 2001

Population increased by 2 times BUT

Motor vehicles increased by 8 times !!!

Lack of institutional framework

Gaps in capacity

Low penetration of public transport

Urban Transport Challenges

Urban Transport Challenges

No enabling environment for

NMT

Poor road quality

Limited use of technology &

innovation

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Ministry Initiatives

Swachh Bharat Mission

AMRUT

Smart Cities

HRIDAY

Metro Funding

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THANK YOU