Editorial of the Day (25 July): Urban Transformation Strategies

Context: The recent budget recognized cities as critical hubs for growth and outlined multiple initiatives aimed at their planned development.

Housing Initiatives

Pradhan Mantri Awas Yojana (Urban)

• Implementation: Since 2015.
• Accomplishments: Delivered 85 lakh housing units for the Economically Weaker Sections (EWS) and Middle-Income Groups (MIG).
• Investment: Total of ₹8 lakh crore, with 25% funded by the central government and the remainder by beneficiaries and state governments.
• Future Plans: An additional 1 crore housing units are planned with an investment of ₹10 lakh crore, including ₹2.2 lakh crore of central assistance over five years. The budget for the current year allocates ₹30,171 crore to this end.
• Support Measures: Interest subsidies to facilitate affordable housing loans.

Rental Housing for Migrant Workers

• Structure: Dormitory-type accommodations.
• Funding Model: Public-private partnership (PPP) with Viability Gap Funding (VGF) from the central government covering 20% of costs, with potential similar contributions from state governments.

Core Urban Infrastructure

• AMRUT (Atal Mission for Rejuvenation and Urban Transformation):
  • Funding: ₹8,000 crore, targeted at enhancing water supply, sanitation, roads, and sewerage systems.
  • PPP and VGF: Projects to be developed commercially under PPP with VGF support.
• General Infrastructure:
  • Capital Expenditure: ₹11.11 lakh crore allocated for broader infrastructure needs, which includes urban projects.
  • State Infrastructure Development: Interest-free loans worth ₹1.50 lakh crore available to states, which can also be used for urban infrastructure.

Digital and Smart Cities Initiatives

• Smart Cities Mission:
  • Previous Funding: ₹8,000 crore in 2023-24.
  • Current Funding: Reduced to ₹2,400 crore in 2024-25 for completing ongoing commitments.
• National Urban Digital Mission (NUDM):
  • Allocation: ₹1,150 crore.
  • Purpose: Enhancing digital management of property and tax records, including GIS mapping, to aid urban local bodies in financial management.

City Planning and Development

• Finance Commission Grant: ₹25,653 crore designated for municipalities.
• New City Incubation: ₹500 crore allocated to support the development of new urban centres.
• Transit-Oriented Development: Focus on integrating mass rapid transit systems with urban development to avoid traffic congestion.
• Electric Buses: ₹1,300 crore provided to encourage the adoption of eco-friendly public transportation options.

Solid Waste Management (SWM)

• Initiative: Promoting bankable projects for SWM in collaboration with state governments and financial institutions.
  • Example: Indore, Madhya Pradesh, highlighted as a successful model of financially viable SWM.

Street Vendors

• Street Vendors Act, 2014: Regulates street vending and aims to protect vendors’ rights.
• Development: The budget proposes creating 100 weekly ‘haats‘ or street food hubs in select cities to support street vendors.

Citizen Participation

• Role of Citizens: Emphasised as crucial for the success of urban development initiatives.

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