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India Gazette
9 hours ago
- Business
- India Gazette
"Ward-level accountability is key...": MoHUA Additional Secy D Thara
New Delhi [India], June 20 (ANI): As India braces for an influx of 70 million new urban residents over the next two decades, government officials and industry leaders are calling for a strategic pivot in the country's urban development narrative--from rebuilding to revitalisation. 'Infrastructure must be delivered--if the private sector can do it better, let them,' said D Thara, Additional Secretary, Ministry of Housing and Urban Affairs, said. She was delivering the keynote address at a CII conference on Exploring Urban Dynamics: Outlook 2030' held in the capital on Friday. There is a disconnect between India's economic ambitions and the capacities of its urban local bodies, Thara said, urging the private sector to be proactively engaged in the urban development of the country. This becomes even more important as urban India is set to see an estimated 70 million new urban residents in the next two decades by 2045. This poses challenges and opportunities as the country will see the creation of many more cities, calling for a pragmatic, revitalisation-first approach to urban development. She underlined the need for targeted interventions to upgrade existing cities, backed by significant investment. The proposed Urban Challenge Fund, she explained, is intended to catalyse this transformation with a mix of 25 per cent public sector seed funding, 50 per cent market capital, and 25 per cent state contribution. 'It's not about building afresh,' she said, 'it's about fixing what already exists--legacy infrastructure, greenfield areas, and urban governance systems.' Prasad Gadkari, Executive Director & Chief Strategy Officer at NIIF, echoed the importance of enabling frameworks to unlock capital. 'A robust pipeline of projects, predictable revenue streams, and standardised bidding processes are essential,' he said, noting NIIF's readiness to back urban infrastructure initiatives through scalable public-private partnerships. Abedalrazq Khalil, Practice Manager for Urban and Land at the World Bank, placed India's urbanisation in global perspective. 'By 2050, 800 million people are expected to live in Indian cities. Cities must be enablers of growth--but many are not yet ready.' He emphasised the need for integrated planning and livability as critical to attracting private investment. Transport integration also featured prominently, with the Regional Rapid Transit System (RRTS) cited as a model for enabling distributed urban employment. In-situ slum redevelopment and smaller-scale, private-led urban initiatives were also discussed as vital components of revitalisation. The conversation repeatedly returned to the need for local capacity. 'Ward-level accountability is key,' said Thara, pointing to the need for institutional support to empower smaller municipalities to tap funds such as those managed by NIIF. Regulatory enablers, including those supporting Transit-Oriented Development and flexible work models, were also cited as tools for urban regeneration. Sriram Khattar, Co-Chair, CII National Committee on Real Estate and Housing, noted that urban PPPs, once uncertain, have now gained credibility. Dr Debolina Kundu, Director of NIUA, added that effective urban governance, capacity building, and low-carbon infrastructure would be essential pillars of India's urban strategy to 2050. (ANI)
Hans India
11 hours ago
- Business
- Hans India
India's urban headcount likely to surge by 70 million in next 20 years
New Delhi: India Inc. must take up infrastructure building in cities in partnership with municipal corporations as the country is expected to add 70 million new urban residents in the next two decades by 2045, a senior official said on Friday. Addressing a CII conference here, D Thara, Additional Secretary, Ministry of Housing and Urban Affairs, said that there is a disconnect between India's economic ambitions and the capacities of its urban local bodies, so the private sector needs to be proactively engaged in the urban development of the country. 'India is a rich nation with poor municipalities,' she remarked. She was delivering the keynote address at a CII conference on 'Exploring Urban Dynamics: Outlook 2030'. She said the growing urban population poses challenges and opportunities as the country will see the creation of many more cities, calling for a pragmatic, revitalisation-first approach to urban development. She underlined the need for targeted interventions to upgrade existing cities, backed by significant investment. The proposed Urban Challenge Fund, she explained, is intended to catalyse this transformation with a mix of 25 per cent public sector seed funding, 50 per cent market capital, and 25 per cent state contribution. 'It's not about building afresh,' she said, 'It's about fixing what already exists - legacy infrastructure, greenfield areas, and urban governance systems.' Prasad Gadkari, executive director & chief strategy officer at NIIF, echoed the importance of enabling frameworks to unlock capital. 'A robust pipeline of projects, predictable revenue streams, and standardised bidding processes are essential,' he said, noting NIIF's readiness to back urban infrastructure initiatives through scalable public-private partnerships. Abedalrazq Khalil, Practice Manager for Urban and Land at the World Bank, placed India's urbanisation in a global perspective. 'By 2050, 800 million people are expected to live in Indian cities. Cities must be enablers of growth, but many are not yet ready,' he said. He further emphasised the need for integrated planning and livability as critical to attracting private investment. Transport integration also featured prominently, with the Regional Rapid Transit System (RRTS) cited as a model for enabling distributed urban employment. In-situ slum redevelopment and smaller-scale, private-led urban initiatives were also discussed as vital components of revitalisation.
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Business Standard
06-06-2025
- Business
- Business Standard
Unlocking the potential of Indian cities as engines of growth hubs
Earlier this year, the Union Budget announced an Urban Challenge Fund spotlighting 'Cities as Growth Hubs', the 'Creative Redevelopment of Cities', and 'Water and Sanitation'. This move, along with the launch of NITI Aayog's Economic Master Plan for the Surat Economic Region in September 2024, signals a decisive shift in India's urban discourse – from managing urbanisation to unlocking its economic power. Ambition, however, must be matched by a delivery architecture that is scalable, adaptive and rooted in local realities, or it could run the risk of becoming a missed opportunity in India's urban growth trajectory. Cities are complex, decentralised systems where economic, ecological and social dynamics interface. Urban transformations cannot be achieved by simply scripting outcomes for these interactions. For a city to thrive, it requires enabling frameworks that accommodate local knowledge, adapt to lived realities and iterate through feedback loops. We must recognise and work within the boundaries of human knowledge – in a dynamic environment – taking into account finite resources, distributed knowledge and unintended consequences. Broadly, there are two contrasting approaches. First, economic strategies that bet heavily on a sector, backed by industrial policies and enabling business regulations, with the underlying assumption that multiplier effects will ensue. Second, focusing on the creation of enabling conditions for innovation, competitiveness and liveability, and allowing market forces to take their course. Both these approaches carry cautionary tales from instances where they failed. The development of industrial clusters is often at the cost of investing in foundational systems like mobility, housing and environment. While these clusters attract investments initially, they expose cities to long-term risks arising from demand volatility, technological disruption and path dependency. Conversely, places where the private sector was allowed to flourish, without adequate regulation and public oversight, often witness speculative growth, low levels of investment in public amenities, rising inequality and environmental degradation. These market-driven models, while initially promising, faltered in delivering inclusive, sustainable development. We need a calibrated middle path that leverages sectoral strengths but roots them in strong public infrastructure, local capacity and robust planning and governance institutions. Successful models like Shenzhen and Dubai stand out for investing in infrastructure, governance and liveability — all in addition to sectoral strategies that attract global talent and create a cosmopolitan ethos. Sectoral gains must align with a citywide vision, and for Indian cities this means pursuing four interlinked priorities: 1. Diversifying Competitiveness While sectoral anchors help, over-emphasis impacts resilience. Urban economies thrive when they are flexible and resilient, and not just when they are specialised. Top-down attempts to create "smart specialisations" should avoid crowding out innovation and local entrepreneurship. Instead of picking 'winners', cities should invest in public goods — integrated infrastructure, land use planning and service delivery — that allow multiple sectors to emerge and scale. 2. Investing in Human Capital Cities are labour markets, and for cities to be growth engines, residents must be productive and healthy. This is critical for smaller cities that act as economic spokes to large metros. Locally aligned investments in human capital through skilling centres, affordable healthcare, quality education and developing robust R&D ecosystems can enable upward mobility for millions — especially crucial, given that a large part of our workforce is informal. Vietnam's Da Nang is illustrative — it combines industrial investment with training hubs and higher education to establish itself as an emerging tech and logistics hub. 3. Building Climate Resilience Climate change could slash a quarter of India's potential GDP by 2070 under a high-emissions scenario. Without urgent adaptation, 75 per cent of the labour force, mostly engaged in informal and outdoor work, is at risk. Resilient cities anticipate these risks. They invest in nature-based solutions, efficient public transport, robust waste and water systems, and enforce green building codes. These measures not only cut emissions and reduce health burdens but also create jobs. A climate-resilient city is safer, more liveable and more investible. 4. Enabling Institutional Coordination and Robust Governance India's urban governance is hampered by fragmentation, underfunding and unclear mandates. Economic success requires empowered urban bodies, strong local institutions with clear accountability, functional coordination systems, participatory and evidence-based planning, and financial decentralisation. Even the best plans will falter in the absence of coordination across departments, levels of government and jurisdictions. Consider New York City's OneNYC strategic framework (2015) that integrates housing, transportation, climate resilience, economic development and neighbourhood-level action plans. The framework ensures that targets are set citywide and then devolves implementation across 70+ city agencies, borough-level offices and community boards. While central schemes can provide catalytic funding and policy direction, real work happens at the city level. Local governments need the autonomy, tools and talent to build contextual and people-centric solutions. This is particularly crucial because heat stress, water scarcity, informal housing and mobility challenges vary significantly across Indian cities. In addition, local and regional institutions must get spatial planning right. Plans for city development must account for industrial activity and integrate the same with the surrounding context. Manufacturing sites should not remain isolated clusters but must be organically connected to the rest of the city. A Generational Opportunity India is at an inflection point. With more than 600 million urban residents projected by 2036, and global industrial supply chains shifting, the window of opportunity is narrow. The true potential of Indian cities will only be unlocked by adopting agile frameworks and strengthening the underlying software of urban systems — governance, resilience, human capital and inclusivity. In this context, the Urban Challenge Fund must not serve merely as an investment blueprint but as a robust instrument for long-term institutional reform and ecosystem building.
The Hindu
03-06-2025
- Business
- The Hindu
TUFIDC scouting for agency to help finance ₹1,500 crore civic works in urban bodies
Five consultancy firms have attended the pre-bid meeting of the Telangana Urban Finance Infrastructure Development Corporation (TUFIDC) to select an agency to provide 'transaction advisory services for bankable projects' in urban areas in Telangana. The institute under the Department of Municipal Administration and Urban Development is looking for an agency that can help source funds to the tune of up to ₹1,500 crore at a low rate of interest for funding basic civic infrastructure works in the 130 municipalities outside the Outer Ring Road (ORR). The civic amenities Commissioner and Director of Municipal Administration T.K. Sreedevi informed that the government wants to make use of the funds, mostly likely to be sourced from local development banks or multilateral agencies, for taking up key civic amenities like sewerage network, internal and connecting roads, drinking water supply, waste management system, streetlights and so on. 'We have seen big ticket real estate projects grounded even before the local municipal authorities were ready with the necessary civic infrastructure with basic amenities. Chief Minister A. Revanth Reddy is keen to change this and make the newbie urban and semi-urban local bodies ready for future urban growth,' she explained. Development of bankable projects is crucial to bridge the growing infrastructure financing gap with sustainable growth. But the traditional funding sources like budget allocations are not sufficient. Hence the lookout for alternate funding method, it was pointed out. The department is looking for a specialised agency with five years experience in handling two urban development infrastructure projects like water supply, sewerage, lake or water body redevelopment or conservation, solid waste management and others, worth at least ₹100 crore. Tasks of the selected agency The selected agency will have to look at bankable projects covering financial modelling, evaluate identified projects, help in selection of a developer, provide project management and monitoring support. The term of contract will be for three years with the method of evaluation being a four stage process. Bid to be opened on June 16 Through the agency, the government also intends to tap the funds from the ₹1 lakh crore Urban Challenge Fund (UCF) announced by the Centre in the budget for taking up civic infrastructure works in the municipal areas. The fund has 25% grant, 50% is to be sourced through a public private partnership (PPP) mode/ bank loans and 25 % from the local municipal authority or State government, making it ripe for seeking monies which hitherto was mostly from loans, pointed out Ms. Sreedevi. The final bids for selecting the agency will be opened on June 16.
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Business Standard
01-06-2025
- Business
- Business Standard
ADB announces $10 billion plan to transform India's urban infra, services
Asian Development Bank (ADB) President Masato Kanda has announced a five-year plan to mobilise up to $10 billion, including third-party capital, to enhance the India's urban infrastructure and services. The plan was unveiled after Kanda's meeting with Prime Minister Narendra Modi. The plan will focus on metro expansions, new Regional Rapid Transit System (RRTS) corridors, and investments in sustainable urban development. "Cities are engines of growth," Kanda said after the meeting. 'ADB will mobilise capital, accelerate delivery, and scale solutions that keep India's urban economy moving and people thriving on the road to Viksit Bharat @ 2047.' Backed by Urban Challenge Fund At the heart of the initiative is support for India's flagship Urban Challenge Fund (UCF), which aims to attract private investment in city infrastructure. ADB will channel funds through sovereign loans, private sector financing, and technical assistance, including $3 million earmarked for developing bankable projects and building capacity in state and urban local bodies. Recent analytical work by ADB has already laid the foundation for the UCF in 100 cities, focusing on growth hubs, creative city redevelopment, and water and sanitation improvements. Urban transport, clean energy in focus India's urban population is projected to exceed 40 per cent by 2030. Responding to this rapid growth, ADB will extend its existing urban transport footprint, which includes $4 billion committed over the past decade to metro and RRTS projects in eight cities. These include the Delhi–Meerut RRTS, Mumbai Metro, Chennai Metro, and Bengaluru Metro, designed to reduce congestion and improve access for marginalised communities, including persons with disabilities. Kanda visited the Delhi–Meerut RRTS, India's first of its kind, and met women who benefited from project-linked skills training. He also toured Gurugram-based ReNew Power to discuss strengthening partnerships in renewable energy. Commitment to rural development Earlier this week, Kanda met Union Finance Minister Nirmala Sitharaman and reiterated ADB's readiness to lend between $4 billion and $4.5 billion annually in sovereign loans, along with $1 billion in private sector funding. ADB will also intensify support for rural development, including food system improvements, entrepreneurship, and employment generation. 'Our shared agenda centres on urban transformation, private sector development, and skills programmes that strengthen India's manufacturing base,' Kanda said. ADB's long-term partnership with India Kanda also met Union Housing and Urban Affairs Minister Manohar Lal Khattar to explore expanding metro networks, transit-oriented development (TOD), and scaling rooftop solar projects. ADB is engaging with CEOs from infrastructure, finance, agriculture and social sectors to attract greater private participation in infrastructure growth. Under ADB's country partnership strategy for India, 2023–2027, it stands ready to provide more than $5 billion in financing each year, including about $1 billion in nonsovereign operations to catalyse additional private investment. ADB, which began operations in India in 1986, has committed $59.5 billion in sovereign lending and $9.1 billion in nonsovereign investments as of April 2025. The active sovereign portfolio comprises 81 loans totalling $16.5 billion as of April 2025.
