Urban India now accounts for about one third of our population and two thirds of our GDP. However, the quality of life in the Indian cities is among the lowest in the world. If we try to visualise the roadmap for a better city life in near future, based on the signals coming out of the budget 2008-09, then it is a blinking red light at a busy intersection — confusion, as there are no clear indicators.
Ever since its inception in the aftermath of the devastating Mumbai floods in 2005, the Jawaharlal Nehru National Urban Renewal Mission (JNURM) has emerged as the flagship programme for development of civic infrastructure and improving governance. In the budget, funding for JNURM has been increased substantially, from Rs.5,482 crore last year to Rs.6,866 crore this year.
However, the combined allocation for the two nodal ministries handling urban policies had gone down by about Rs 137 crore. This year the Ministry of Housing and Urban Poverty Alleviation will be getting Rs 856.50 crore, which is 346.75 crore more than that of last year, while the Ministry of Urban Development will be getting Rs 3,006.65 crore, which is about Rs 483 crore less.
Concerns about priorities
Therefore, the combined allocation for the urban sector is about Rs.10,790 crore. From this, deduct budget support of Rs 1,388 crore for the Delhi Metro, Rs. 617 crore for the maintenance of government properties and Rs. 125 crore allocated to Delhi for the Commonwealth Games — the balance works out to just about Rs.280 per head for the thirty crore plus urban Indians. But more than the quantum of funding, there are concerns about priorities and effectiveness.
The JNURM had unleashed a flurry of projects in urban infrastructure, but results may not be proportionate, cautions a detailed study by the Centre for Science & Environment. Projects are under way in Hyderabad, Bangalore and Mumbai to increase water supply, but consequent needs for increasing sewerage capacity are ignored.
This year, the excise duty on small cars and buses was reduced from 16 to 12 per cent. Cheaper buses may benefit public transportation, by reducing the cost of fleet modernisation. But the effect will almost certainly be overwhelmed by the increasing magnitude in number of cars, leading to greater congestion and pollution.
Suburbs of the big cities are the new economic hot spots, but without viable mass transit linkage. Some of the offices located in far-flung locations provide pool transport for the employees — the phenomenon that had led to the emergence of the notorious ‘call centre cabs.’ As an interim measure, the Finance Minister should encourage the companies to provide safe and comfortable transport through tax sops — a step, which could also lead to gradual corporatisation of the cab fleet and hopefully more disciplined roads.
Last year, Mr. Chidambaram announced the setting up of an expert committee to study the impact of climate change on India. This year he proposed a permanent institutional mechanism. An umbrella regulator can have profound implications on our city life through policies on transportation, energy and even building by-laws – but implementation will be difficult, as the urban sector is already saddled with a multiplicity of agencies.
Urban development had traditionally been a low priority area at the political level. But things are changing. The constituency delimitation exercise, undertaken by the Election Commission, will see urban areas gaining more seats and thereby, more political influence. But the process needs to be managed with much greater clarity of vision and efficiency to get green signal towards a sustainable urban future
