(GIST OF YOJANA) Union Budget to Transform Urban Landscape [MARCH-2020]
(GIST OF YOJANA) Union Budget to
Transform Urban Landscape
India is making holistic efforts to promote inclusive development “Sabka
Saalh, SabkaVikas, Sabka Vishwas" for a rapidly increasing urban population.
TheWorld Urban Prospects (WUP). 2018 estimates urban population in India At
34% of total population which is likely to be 40% by 2030 and 50% by2050.
The new wave of urbanization is expected to bring both opportunities and
challenges. The urban share ofGDP is projected to be 75% in 2030. an
increase from 62-63% in 2009-10(HPEC, 2011).
Missions for Urban Transformation 2014-19:
The Government of India Has initiated one of the most comprehensive
programs of planned and systematic urban development in the entire world.
More than 4,500 urban local bodies (ULBs) have been covered with
flagship schemes like SwachhBharat Mission Urban (SBM-U),Pradhan Mantri Awas
Yojana Urban(PMAY-U) and Deendayal AntyodayaYojana-National Urban
LivelihoodMission (DAY-NULM) to address the issues of sanitation and
cleanliness,affordable housing, and urban poverty alleviation.
In addition, provision for universal water supply and sewerage/septage
in 500 cities (with over 1 lakh population) have been taken up underAtal
Mission for Rejuvenation andUrban Transformation (AMRUT).
Heritage City Development andAugmentation Yojana (HRIDAY)was launched in
12 cities with the aim to preserve and rejuvenate the soul of their heritage
character. A big push in urban transport, largely in the form of support to
Mass Rapid TransitSystems (MRTS) has been initiated.
The Smart Cities Mission (SCM) was launched in 100 cities aimed at
improving core infrastructure and providing a decent quality of life to
urban citizens using smart solutions.
Enhanced budgetary support and funds availability:
Following the trend of the last five years, the recent Union Budget
2020-21 has allocated a total of Rs. 50.0-10crore to the Ministry of Housing
andUrban Affairs (MoHUA), which is substantially higher than the budget
allocation (as per the revised figures) of Rs. 42,267 crore in 2019-20.
Over And above this, there is provision ofRs.10.000 crore as Extra
Budgetary Resource (EBR) for housing.
Cities as Engines of Economic Growth in India’s March to US $5Trillion
Budget has set a definite goal. aspiration to take the economy to US$ 5
trillion level backed with Aastha (Hope). Vishwas (Trust),and Akanksha
(Aspirations) of 130crore Indians. To boost infrastructure development, the
Government has launched the National Infrastructure Pipeline (NIP) on 31
December,2019 for the period 2020-2025. NIPis expected to improve ease of
living, and provide equitable access to infrastructure for all. thereby
making growth more inclusive.
It intends to facilitate supply-side interventions in infrastructure
development to boost GDP growth (Economic Survey2019-20). Out of the
projected total infrastructure investment of Rs. 103lakh crore during the
period FY 2020to 2025, 16% has been earmarked for urban rejuvenation.
With this investment, India can mitigate its urban challenges and bring
positive impacts on the lives of not only the urban population, but also, at
least 20crore rural population, who live in the proximity of 70 big cities.
Promoting Investment for Urban Rejuvenation
Since the launch of various urban flagship schemes, around Rs.
1.62,165crore of central assistance has been released to date during the
period 2014-20. It has led to total investment to the tune of Rs. 10.45,076
crore in the Sector, which includes contributions of States/ULBs,
Beneficiaries and PPP partners.
It is. therefore, clear that central assistance is generating around six
and half times investments of its contribution for creating urban
infrastructure. Further, total investment, estimated for the period 2020-25
is Rs. 17,74,167 crore.
The development of urban areas will constitute a major part of the
investment under NIP.
Urban Infrastructure: Focusing on Connectivity
In Budget 2020-21, a total of Rs. 20,000 crore has been allocated for
total MRTS and Metro Projects (higher allocation than previous year).
Also, construction of 148 km long Bengaluru Suburban Transport project
at a cost of Rs. 18,600 crore has been proposed for the Railways Ministry.
Apart from these, budget earmarks provisions for Mumbai Ahmedabad High Speed
Rail,Chennai-Bengaluru Expressway,Delhi-Mumbai Expressway and promotion of
economic activities along river banks with waterways.
Focus has been provided on digital connectivity throughBharatNet program
for all BULBs along with prepaid smart electricity meters with options for
individual consumers to choose rates and provider/ sources (thermal or RE)
Swachh Bharat Mission (Urban) for Cleaner and Healthier India:
Water and sanitation have received priority in the budget as there is a
direct association between sanitation practices and mortality and health
outcomes (Economic Survey, 2018-19). Under the flagship program of Swachh
Bharat Mission (Urban),so far, more than 66 lakh toilets have been
constructed and more than 99%cities have become ODF. 1276 cities have been
certified ODF and 411as ODF. Many others are under examination for such
The progress in terms of Solid Waste Management (SWM) has also been
commendable. Non-manual cleaning of septic tanks and sewers has been
stressed upon in the Budget Speech, for which action is underway.
Har Ghar Jal: AMRUT:
AMRUT scheme was launched in 500 cities with over 1 lakh population
across the country in June2015, which envisages achieving universal coverage
of water supply and increasing sewerage and septage coverage from 31% to
Under The scheme, State Annual Action Plans (SAAPs) for all State/UTs
for Rs. 77,640 crore have been approved,of which half is dedicated to
water supply, and 42% sewerage and septage.
Projects worth Rs. 73,007 crore are under implementation; out of this
projects worth Rs. 8,725 crore have already been completed. So far71 lakh
water tap and 43 lakh sewer connections have been provided under the scheme.
Promoting Water Conservation: Jan Andolan:
The Ministry has launched Jal Shakti Abhiyan to make water
conservation a “Jan Andolan” with four major thrust areas:
Rainwater Water Harvesting;
Reuse of treated waste water;
Rejuvenation of water bodies and
Poverty alleviation, livelihood andSkill DevelopmentThe poor in cities,
specially the fresh migrants face various derivations related to
occupational,residential, and social needs, which is to be addressed
simultaneously in a comprehensive and targeted manner.
It is in this context that a mission-mode approach to urban livelihoods
in the form of the Deendayal AntyodayaYojana-National Urban
LivelihoodsMission (DAY-NULM) was initiated.
The primary target of DAY-NULMis the urban poor, including the urban
homeless. Budget 2020-21 DAY NULM allocation is Rs. 795 crore.
The Finance Minister has proposed to provide 1year internships to fresh
engineers in all ULBs in order to enhance the skill of the youth to fulfill
the dream of the Prime Minister. A scheme is being worked out in
consultation with the States.
Ease of Living and Ease of Doing Business:
MoHUA released the first ever ‘Ease of Living Index’ in 2018covering 111
cities, and assessment for ‘Ease of Living Index 2019’ is currently in
progress and will soon be released.
As per World Bank’s Doing Business Report-2020, India’s ranking Ease of
Doing Business is 63,compared to its 2019 ranking of 77.
Also, India is becoming more time efficient in approval of construction
permits. Currently, India ranks 27in terms of construction permits,compared
to rank of 185 in 2017.
The Online Building Permission System (OBPS) has been implemented in
2,506 cities, including 444 AMRUT cities so far. The MunicipalPerformance
Index, launched byMoHUA in 2019 aims to build capacity and assess the
performance of India’s municipal bodies on the five pillars of governance,
technology,services, planning and finance.
Climate Change and Sustainable Urbanisation:
A total of Rs. 4400 crore have been allocated for clean air and climate
action in the cities. MoHUA has already initiated the Climate Smart
CitiesAssessment Framework, a pioneering effort towards building capacity of
its100 smart cities on climate change adaptation and mitigation practices.
As part of this endeavor, the Ministry has started a Climate Smart
Cities Alliance amongst cities and like-minded organisations
The Government of Indiais committed to the vision of developing New
India where towns and cities would function as fulcrums of economic growth.
Promotion of ease of living,responsive governance, clean and sustainable
environment, rapid economic growth, and livelihood opportunities for the
citizens are pathways identified for a vibrant urban India.
The Ministry is committed to building cities of the future following a
comprehensive,inclusive, participatory, and data driven approach. It aims to
scale up urban transformation with our learnings in smart cities and all
other Missions in the nation's journey towards the US$5 trillion economy and
a New India.