Urbanization in 12th Plan Documents
The 12th five year plan documents have called cities as engines of economic growth and have also noted that urbanization is yet to accelerate as surging growth and employment in cities will prove to be a powerful magnet to attract people to urban areas. If the urban influx is not well managed, this inevitable increase in India’s urban population will place enormous stress on the system. Thus, the speed of urbanization poses an unprecedented managerial and policy challenge. As the urban population and incomes increase, there will be demand for every key service such as water, transportation, sewage treatment, etc. Some of the notable measures suggested in the 12th plan documents for management of accelerated urbanization include inclusive cities, true devolution to urban governance, funding, reforms in urban planning, capacity building and low-income housing.
Inclusive Cities
The poor and lower income groups must be brought into the mainstream in cities. This would discourage creation of slums in the cities.
True devolution of power to urban governance
To enact the 74th Amendment in spirit, it is necessary for true devolution of power and responsibilities from the states to the local and metropolitan bodies. With cities growing beyond municipal boundaries, having fully formed metropolitan authorities with clearly defined roles will be essential for the successful management of large cities in India.
Urban Financing
Devolution has to be supported by more reforms in urban financing that will reduce cities’ dependence on the Centre and the states and unleash internal revenue sources. Further, we note that India spends only $17 per capita per year in urban infrastructure, whereas the requirement is of $100.
Reforms in Urban Planning
India needs to make urban planning a central, respected function, investing in skilled people, rigorous fact base and innovative urban form. The plans need to be detailed, comprehensive, and enforceable.
Local capacity building
An overhaul in the capabilities and expertise of urban local bodies is needed, which will be critical to devolution and improvement of service delivery. New innovative approaches need to be explored to tap into the expertise available in the private and social sectors. India needs to build technical and managerial depth in its city administrations.
Affordable housing
Affordable housing is a particularly critical concern for low-income groups. India can meet the challenge through a set of policies and incentives that will bridge the gap between price and affordability. This will enable a sustainable and economically viable affordable housing model for both government housing agencies and as well as private developers. India also needs to encourage rental housing as an option particularly for the poorest of the poor, who may not be able to afford a home even with these incentives.
