Government in its budget 2022 announced setting up of a high-level expert panel for making suggestions on policy matters, capacity building and implementation. The focus will be on nurturing the mega cities and their hinterlands to become current centres of economic growth. In addition, the government will facilitate tier 2 and 3 cities to take on the mantle of a metro city of the future. Some of the steps taken will be:-
- Forming high-level committee of reputed urban planners, urban economists and institutions to make recommendations on urban sector policies, implementation and governance
- Enhancing urban capacity building of states by providing Central government support
- Modernisation of building byelaws and Town Planning Schemes (TPS)
- Implementation of Transit Oriented Development (TOD)
- Leveraging Central Government's financial support for mass transit projects and AMRUT scheme for facilitating TOD and TPS by the states
- Designating five existing academic institutions in different regions as centres of excellence to deliver certified training. These centres will be provided endowment funds of Rs 250 crore each.
- AICTE will take the lead to improve syllabi, quality and access of urban planning courses in other institutions.
- Allocation of Rs 48,000 crore for the completion of 80 lakh houses under the Pradhan Mantri Awas Yojana (PMAY), both rural and urban.
- For better land records management states will be encouraged to adopt Unique Land Parcel Identification Number.
The Finance ministers has also committed that the Centre will work with states to reduce the time required for all land and construction-related approvals, for promoting affordable housing for the middle-class and economically weaker sections in urban areas, and with the financial sector regulators to expand access to capital along with a reduction in the cost of intermediation.
AS PER FINANCE MINISTER, THE "BUSINESS AS USUAL" APPROACH TOWARDS URBAN PLANNING WILL NOT WORK AND THE GOVERNMENT IS PLANNING A PARADIGM SHIFT IN VIEW OF RAPID URBANISATION IN THE COUNTRY.
THE REAL ESTATE REACTIONS
The real estate developers are of the view that with proposed initiatives about urban development, where it will nurture the megacities as centres of economic growth and focus on tier II-III cities to develop a sustainable growth environment, there could be an influx of financial Institutions focusing to invest in tier II - III cities
Manoj Gaur, CMD, Gaurs Group and Vice-President, North, CREDAI National commented, “Allocation of 48,000 crore for PMAY will go a long way in helping people satisfy their basic need of owning a home. Another important aspect we really appreciate as a developer who develops not just group housing but also townships, is the push on infrastructure and urban planning. With a committee being formed for urban capacity building and planning, I am sure India’s real estate development will no longer be confined to a few big metros only.”
Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani opined, “Our cities have been built with the age-old laws and there was a dire need to refurbish them as per modern day to day requirements and needs. The focus on modernizing building / infrastructure laws and town planning displays that we are gearing to envision a new India with smart and tech-led planned cities.
Pradeep Aggarwal, Founder Chairman, Signature Global Group and Chairman, Assocham - National Council on Real Estate, Housing and Urban Development added, “The affordable segment will also benefit from the announcement of reduction of time for land and construction related approvals in urban areas which was earlier a matter of concern for the industry. The Government has also talked about tier II and III cities and that it will work with urban planners to ensure that these cities witness economic growth and employment. The Government will also work with Financial Sector regulators to expand access to capital along with reduction in cost of intermediaries; this will help the sector have access to funds to finish projects on time. Through this, a common man can complete his dream to have a home.”
“The measure of setting up a high-level committee for urban planners and economists to be formed for recommendations on urban capacity building, planning implementation, and governance is a giant leap to introduce modern urban planning structures,” concurred Uddhav Poddar, Managing Director, Bhumika Group.
URBAN PLANNING AND POLITICAL IDIOSYNCRASY
The Government has given a lot of importance to urban planning, reflected in its desire to set up a high-level committee of urban planners, institutions and economists and the infra budget allocations show its intent of transforming Tier 2 & Tier 3 cities into centres of economic growth.
No doubt, urban planning needs a political and economic push, in addition inclusion of health and ecological experts as well as artists in the expert committee will make the developments more inclusive and cities more equitable.
According to Hitesh Vaidya, Director, National Institute of Urban Affairs (NIUA) instead of turning smaller towns into replica of large cities, urbanisation has to be mapped spatially so that towns and cities coexist in planned ways with large cities and metros. The pandemic has shown that in a crisis, urbanites will go back to their homes. Smaller towns with all civic facilities will make them aspirational centres of employment and, the problems of congestion too can be eased.
Also, the top down approach from centre to states should at best remain as recommendations, refraining from exercising control on states and in turn the urban local bodies. Reworking financial governance to bring in transparency and accountability will ensure that funds are utilized, for what they are meant.
A study by Prof Debolina Kundu at NIUA showed that small towns do not have systems or capacity to absorb grants. Even senior city managers posted to small towns do not have the understanding or even capacity to manage them. The challenges have changed and need to be addressed differently in 2022.
MOST IMPORTANTLY, TO ENHANCE URBAN CAPACITY BUILDING, THE LOCAL BODIES THAT ACTUALLY IMPLEMENT WASTE COLLECTION, SANITATION AND ROAD REPAIR ETC., NEED TO BE RECOGNIZED AS EQUAL STAKEHOLDERS IN URBAN GOVERNANCE. FURTHERMORE TO BE TRULY PROGRESSIVE, CITIZENS SHOULD BE MADE PARTNERS IN THE PLANNING AND GROWTH PROCESS.
