Increase in Urban Sector Investments

Syllabus: GS1/Urbanisation

Context

• The Union Minister for Housing and Urban Affairs and Power, highlighted that the urban sector investments have grown 16 times.
• This increase underscores the government’s commitment to achieving the goal of Vikshit Bharat by 2047.

Achievements under Various Schemes

• The Atal Mission for Rejuvenation and Urban Transformation (AMRUT): This mission focuses on ensuring basic services like water supply, sewerage, and urban transport to improve the quality of life in cities, particularly for the urban poor.
• Achievements: 
  • Creation of 4,649 million liters per day (MLD) water treatment capacity.
  • Establishment of 4,429 MLD sewage treatment capacity.
  • Under AMRUT 2.0, stormwater drainage projects are being prioritized to address waterlogging, along with initiatives to improve drinking water and sewerage systems.
• Smart Cities and New Cities Scheme: Launched in 2015, this initiative aims to promote sustainable and inclusive cities by using smart technology for better infrastructure, transportation, and services. 

• Urban Mobility and Sustainability Initiatives:
  • Expansion of Regional Rapid Transit Systems (RRTS).
  • Promotion of e-mobility and walkable streets in cities to reduce pollution and address environmental concerns.
  • Under the scheme the metro network has increased significantly, expanding to the new cities.
• Urban Housing and PMAY 2.0: 
  • Converting existing Government funded vacant houses into ARH through PPP mode or by Public Agencies.
  • Provisional sanctions for around 7% of the planned 1 crore urban houses based on the population of states signing MoUs, ensuring timely allocation and expediting the process.
• Swachh Bharat Mission: Over the past six months two major dumpsites in Ahmedabad and Hyderabad have been completely remediated, successfully addressing approximately 2.5 lakh metric tonnes of legacy waste.
• Under the PM Svanidhi Scheme, loans totaling ₹13,422 crore have been disbursed to street vendors.

Urbanisation in India

• In Western countries, urbanisation followed industrialisation, which created jobs that absorbed rural labour.
  • Their urbanisation was sustained also because of massive economic transfers from colonies. 
• In contrast, India’s urbanisation is largely driven by economic distress, resulting in poverty-driven urbanisation, with both rural-to-urban and urban-to-urban migration.
  • During the COVID-19 pandemic, the strain on urban planning became apparent, as reverse migration trends highlighted gaps in infrastructure.
• According to the 2011 Census, India’s urban population increased from 27.7% in 2001 to 31.1% in 2011, at a rate of 2.76% per year.
• World Bank estimates suggest around 40% of India’s population live in urban areas, in around 9,000 statutory and census towns.
  • How well India manages this urban transformation will play a critical role in realizing its ambition of becoming a developed country by 2047, the 100th year of independence.

Urban Challenges in India: 

• Outdated Plans: Spatial and temporal plans are often outdated and fail to accommodate population growth. 
• Overcrowded Unplanned Areas: Since the 1980s, deindustrialisation has led to job losses in cities like Ahmedabad, Delhi, Surat, and Mumbai.
  • Many workers displaced by this trend moved to peri-urban areas, where they live in overcrowded conditions. 
  • Currently, 40% of India’s urban population resides in slums. 
• Climate Change: Climate change severely impacts Indian cities.
  • Cities face severe pollution and are increasingly subject to urban flooding and heat island effects. 
• Inequality in Development: Inequality is widening, with exclusive developments catering to the wealthy while millions lack basic housing.
• Waste Management: Rapid urbanization has led to increased waste generation, and many cities struggle with effective waste collection and disposal, resulting in environmental degradation.
• Transportation and Traffic Congestion: Inadequate public transport systems, coupled with a rise in private vehicle ownership, contribute to severe traffic congestion and pollution.

Way Ahead

• Infrastructure Development: Prioritizing the development of urban infrastructure like roads, water supply, sanitation, and waste management to accommodate the growing population.
• Affordable Housing: Ensuring the availability of affordable housing to reduce overcrowding in urban areas and address the needs of the lower-income population.
• Sustainable Growth: Emphasizing green and sustainable urban development by focusing on renewable energy, green spaces, and waste recycling.
• Rural-Urban Integration: Fostering balanced growth by improving rural infrastructure and connectivity to reduce pressure on metropolitan areas.

Source: PIB