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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.
Most functions related to the urban governance and management has traditionally been vested with the state governments. The ULBs are still constrained by lack of funds, overlapping
and fragmented functions
between ULBs and state government and lack of functionaries
staff often on deputation from state departments. The 74
th
constitutional amendment was
ACCCRN – City Vulnerability Assessment Report 6
enacted to devolve most of the urban administration functions to the urban local bodies, but their actual implementation is highly diverse across the states. .
The evolution and form of urban environmental and social service institutions varies across states as they have emerged in response to differing patterns of urbanization and the
challenges faced in different parts of the country. Box 1 highlights the management innovations undertaken by the Indore Municipal Corporation during the late 1990’s.
Box 1: Management Innovations for Municipal Resource Mobilization in Indore
Management innovations in Municipal Resource Mobilization were undertaken by Indore Municipal Corporation under the Indo-USAID Financial Institutions Reform and Expansion FIRE project. The
project supported IMC municipal officials to increase the city’s revenues in various ways, including making optimal use of existing assets, and build their capacity to better govern the city through providing
training and technical assistance.
The various steps undertaken by IMC to improve resource mobilization are: Improved Tax Administration
Tax grievance redressal camps Municipal Asset Management
Reorganized Revenue Department Enforcement Drive
Computerization and Management Information System Urban E-Governance
Decentralization Source: Vyas Vaidya 2003
The ULBs, till several years ago, had not been able to meet the growing infrastructure and service demands of the urban communities. The first thing that arises is inadequacy of
finances. Finance alone is not the only factor accounting for unsatisfactory performance. It has been seen that even obligatory functions are being inadequately performed. Services and
amenities are chronically short of basic requirements, leaving alone expansion and maintenance of existing facilities. Fiscal autonomy largely depends upon the extent of
innovative mechanisms by which resources are raised by the local bodies. The reluctance of the ULBs to tax people and poor administrative capacity at the local level also account for
poor financial position of the local bodies.
Functional autonomy is reality only when it is accompanied by financial independence through positive measurespolicy reforms by the State Government. This will ensure financial
self-reliance of the ULBs. While most of the functions related to municipal functioning come under the purview of the State, the Government of India still exerts a huge influence over the
planning process through resource transfers via the Centrally Sponsored Schemes. One of the main strategy of urban renewal is to ensure improvement in urban governance so that Urban
Local Bodies ULBs and para-statal agencies become financially sound with enhanced credit rating and ability to access market capital for undertaking new programmes and expansion of
services. In this improved environment, public-private participation models for provisioning of various services would also become feasible. To achieve this objective, State
Governments, Urban Local Bodies and para-statal agencies are required to accept implementation of an agenda of reforms.
The sanctioning of JNNURM related city projects is conditional on implementing certain reforms to be undertaken by states cities. The proposed reforms fall in two categories-
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Mandatory reforms and Optional reforms. City-wise Status of Implementation of JNNURM Reforms as on 30th June, 2008 is highlighted in Annex A.
2.6 Urban Poverty
