ACCCRN – City Vulnerability Assessment Report 5
health is of a great concern throughout the year. Design of infrastructure to improve the services for the poor are often not informed by local context and maintenance issues are often
neglected, resulting in partial or complete failure soon after commissioning.
2.4 Urban Infrastructure upgradation, finance autonomy issues
As per 2001 population census 285.35 million people reside in urban areas. It constitutes 27.8 of the total population of the country. According to the Ministry of Urban
Development, the urban population in India is expected to reach a staggering total of 575 million by 2030 from an estimated 325 million in 2005 UN Population Database, 2010. The
rising urban population has also given rise to increase in the number of urban poor. As per 2001 estimates, the slum population is estimated to be 61.8 million. The ever increasing
number of slum dwellers causes tremendous pressure on urban basic services and infrastructure. Without major urban land reforms, cities in India will not be able to support
the inevitable urbanization in a planned way. Raising finance for urban infrastructure has been a challenge India Infrastructure Report, 2009. L
iberalization policies adopted by the Government of India are expected to increase the share of the urban population and may
increase to about 40 per cent of total population by the year 2021. It is estimated that by the year 2011, urban areas would contribute about 65 per cent of gross domestic product GDP.
However, this higher productivity is contingent upon the availability and quality of infrastructure services. Urban economic activities are dependent on infrastructure, such as
power, telecom, roads, water supply and mass transportation, coupled with civic infrastructure, such as sanitation and solid waste management JNNURM, 2004.
Local government and other government agencies do not always have the necessary resources to
cope up with the housing needs. Urban infrastructure development also needs to address large and continued inflow of population related demands and related issues. Addressing
growth in peripheral areas due to inflow of people from rural areas builds pressure on the local government to provide civic services.
It is estimated that over 7 years starting 2005-06, the Urban Local Bodies ULBs would require a total investments of 1,205.36 billion Rs.
This includes investment in basic infrastructure and services, that is, annual funding requirement of 172.190 billion Rs.
Since cities and towns in India constitute the second largest urban system in the world, and contribute over 50 per cent of the country’s GDP, they are central to economic growth. For
the cities to realize their full potential and become effective engines of growth, it is necessary that focused attention be given to the improvement of infrastructure. In order to fructify these
investments, Jawaharlal Nehru National Urban Renewal Mission JNNURM, a national level initiative was launched which brought together the State Governments and enabled ULB’s
catalyse investment flows to the urban infrastructure sector. Sub-Mission for Urban Infrastructure and Governance is being administered by the Ministry of Urban Development.
The main thrust of the Sub-Mission will be on infrastructure projects relating to water supply and sanitation, sewerage, solid waste management, road network, urban transport and
redevelopment of old city areas with a view to upgrading infrastructure therein, shifting industrial and commercial establishments to conforming areas, etc.
2.5 Actual situation of urban administration and “3 Fs”, post 74th amendment.
