Urban Development in India Initiatives and Opportunities 30 th March 2016

Presentation Outline Urbanization Scenario Urban Infrastructure -Investment Needs New initiatives and Investment opportunities 2 Smart Cities Swachh Bharat Mission AMRUT Metro Rail Projects

India: Urban Scenario 3

Urbanization Scenario in India 290 million in million in % of the country’s population Urban population is increasing at a rapid rate leading to gap between demand and supply of urban services

Approximately 60% of GDP of the country is derived from the Indian urban economy Urbanization has thus emerged as a key policy and governance challenge in India in recent years Larger cities are enhancing their participation in the global economy Smaller cities are absorbing most of the rural-urban migration and strengthening linkages to the rural economy Urbanization Scenario in India

Urban Centers Growth 6 Type of Urban Units 2011 Census 2001 Census Addition in Towns7,9355,161 2,774 (a) Statutory Towns4,0413, (b) Census Towns3,8941,350 2, Urban Agglomerations Out Growths (OGs)

Infrastructure Investments 7

Ministry of Urban Development, GoI Infrastructure Investment 8 The High Powered Expert Committee (HPEC) Investment Projections for 20 years Upto 2030 (Not Including Housing) at prices Investment Requirements: US$ 650 Billion Operating & Maint. Cost : US $ 330 Billion Mckinsey Global Institute Study Investment Projections for 20 years Upto 2030 (Including Housing) Investment requirements : US$ 1200 Billion Operation & Maint. Cost : US$ 1000 Billion March, 2011 April, 2010

India: Factsheet Land of more than A Billion people with 100 spoken languages World’s Largest Democracy - Multi-Party Political System Youngest Nation in the world with the lowest median age of 29 by ,000 Engineers, 30,000 Doctors and 10,000 Chartered Accountants are added annually to the Indian Talent Pool Consumption expenditure of USD 3.6 trillion by 2020 Urban population has increased from 26% in 1991 to 31% in 2010 and expected to be 40% by 2030 and 52% by cities currently have a population in excess of 1million rising to 68 by 2030 A USD 2 Trillion Dollar Economy

Cities in India : Responsibilities & Revenues ResponsibilitiesSources of Finance Water Sewerage Primary education Health care Environment Protection Urban Planning Slum Upgradation Shops & Commercial Establishments City Roads /Public transport Solid waste management Street lights Public parks and playgrounds a) Internal Property tax Profession tax Entertainment tax Advertisement tax Octroi and entry taxes b) External Market Borrowings Federal and State Grants External assistance c) Innovative Land Monitizing Transfarable Dev. Rights 10

New Initiatives Of Government 11 Smart Cities Swachh Bharat Mission AMRUT HRIDAY Metro Rails

Smart Cities Mission of India: Smart Cities and Urban Solutions

What is a Smart City? Smart City has – Basic Infrastructure, Uses ‘Smart’ solutions Relies on Area Based Development. Objectives: Provide basic infrastructure. Quality of life. Clean and sustainable environment. Apply Smart Solutions. Set examples Catalyze the creation of other Smart Cities.

To drive economic growth and improve the quality of life of people by enabling local development and harnessing technology as a means to create smart outcomes for citizens SALIENT FEATURES Self assessment and city visioning exercise Area based development with essential features to create replicable smart areas Pan city proposals with use of ICT to positively influence maximum no. of people. GAME CHANGERS Special Purpose Vehicle Convergence Integrated Planning Demand Driven Competitive Replicability FINANCIAL OUTLAY Central and State Government 100,000 Cr = USD 14 Billion Smart Cities Mission of India

Smart Cities Mission Strategy Develop Areas step-by-step (area-based developments ) Retrofitting, Redevelopment, Greenfield Pan-city initiative At least one Smart Solution is applied city-wide.

Area Based Development Models Retrofitting: Development of an existing built area greater than 200 Ha so as to achieve the objective of smart cities mission to make it more efficient and livable e.g. Local Area Development (Ahmedabad) Redevelopment: Replace existing built environment in an area of more than 20 Ha and enable co-creation of a new layout, especially enhanced infrastructure, mixed land use and increased density e.g. Bhendi Bazar, Mumbai Greenfield: Develop a previously vacant area of more than 100 Ha using innovative planning, plan financing and plan implementation tools with provision for affordable housing, especially for the poor e.g. New Town, Kolkotta, Naya Raipur, GIFT City.

City wide Smart Solutions Cities may add any number of smart solutions to the area based developments to make government funds cost effective.

FEATURES 100 smart cities 20 lighthouse cities 23 cities in fast track competition Lighthouse and Fast Track Cities

Partnership opportunity in Smart City Program Under the Smart City guidelines two types of international support have been envisaged. A.Technical assistance for preparation of Smart City Proposal (SCP) by identifying partner city. B.Infusion of funds in the SPV of a Smart City for implementation of projects. Balance funds are expected to be mobilized from various sources including leverage borrowings from financial institutions, including bilateral and multilateral institutions both domestic and external sources. SPV created for the purpose will be responsible for arranging such resources. 19

 ACCESS TO INDIAN MARKETS AND INDIAN LABOUR POOL  NETWORKING WITH OTHER SCHEMES THROUGH CONVERGENCE  PPP PROJECTS ˗Smart infrastructure components ˗ Smart technology ˗ Real estate and land development ˗ Sustainable practices ˗ IT/ ICT services  CAPACITY BUILDING ˗ Human resource ˗ Citizen awareness and responsibility ˗ Technical Assistance  FINANCIAL PLAN ˗ Purchase of bonds ˗ Issue of loans Opportunities in Smart Cities

21 Swachh Bharat Mission

Components of Swachh Bharat Mission 5.08 lakh Community and Public Toilet units Household Toilets (10 Million house holds) Centre Contribution – INR 4,000/- per Toilet (assumption Rs. 18,000 / toilet) State Contribution – at least INR 1,333/- per Toilet Community Toilets 40% VGF/ Grant by Govern ment of India Fundin g permitt ed for retrofit ting non- operati onal toilets Public Toilets No GoI funding May combin e some Public Toilets with Commu nity Toilets Solid Waste Management 20% VGF/Grant by GoI to each project High Focus on Decentralized SWM

. Partnership Opportunities Finance Construction Capacity Building Technology Public Private Partnerships Special Purpose Vehicles Waste to Energy Plants Public/ Community Toilets Transaction Advisory Handholding Cities/ Training Sanitation and Waste Management Solutions ICT Solutions

Atal Mission for Rejuvenation and Urban Transformation “AMRUT” A 15 Billion USD Basic Urban Infrastructure Initiative for 5 years Ministry of Urban Development

Service Level Gaps Service Indicators National Benchmark India Status Water Supply Per Capita supply of water 135 lpcd 69 lpcd Extent of metering of water connections 100% 13% Extent of non revenue water (NRW) 20% 32% Cost recovery in water supply services 100% 39% Sewerage Coverage of toilets 100% 70% Collection efficiency of the sewage network 100% 10% SWM Household level coverage 100% 35% Extent of scientific disposal of municipal solid waste 100% 10% Storm Water Drainage Coverage of storm water drainage network100%46% Source: Service Levels in Urban Water and Sanitation Sector-Status Report( ) Ministry of Urban Development 25

Objectives Universal coverage of basic services: Drinking Water, Sanitation & Sewerage Urban transport with focus on NMT Storm Water Drainage Environmental Protection & Climate Change Mitigation Urban (Governance) Reforms Capacity Building

Role of Federal Government Handholding the States and Cities in making their plans Approve the State Annual Action Plan Provide 50% project costs to States as grants To Facilitate and Coordinate for: Market Borrowings External Aids Loans from Bi-Lateral and Multi-Lateral agencies

Roles of States Prepare the Plans Approve their Detailed Project Reports Assist the cities execute their projects Monitor the progress of implementation Undertake State level reforms/policy reforms Capacity Building

Roles of Cities Prepare their Service Level Improvement Plans Implement the projects either through direct bidding or through Para-Statal Agencies of the State Undertake city planning Undertake city level reforms

30 URBAN MOBILITY 30 METRO RAIL BUS & BRTS

METRO RAIL IN INDIA Under Operation Under Construction Planned 311 Kms532 Kms386 Kms 9 Cities13 Cities11 Cities

Urban Transport-Metro Rail Projects City Kilometers Approx. Cost (US$ Million ) Delhi Mumbai Bangalore Kolkata Chennai Hyderabad Jaipur Cochin Finding resources!- Innovative Financing Mechanisms 32  Metro Rail supported on high demand corridors  Reforms in urban transport made conditional to sanction  Joint ownership with state governments  Equity Infusion  20% Viability Gap Funding for projects on PPP  Projects worth 15.6 billion USD in pipeline

METRO RAIL PROJECTS UNDER OPERATION (311 Kms) Delhi & NCR ( km) Bangalore (27 km) Kolkata (27.23 km) Chennai (10.15 km) Jaipur (9.0 km) Mumbai Metro Line 1 (11.4km) –PPP Rapid Metro Gurgaon (5.1km) – Private initiative Mumbai Monorail Phase-1 (9.0 km) –

METRO RAIL PROJECTS (UNDER CONSTRUCTION (532 kms) Delhi (113km), Bangalore (93.9 km), Chennai (34.89 km), Kochi (25.6km), Jaipur (2.5km), Hyderabad (71.2 km), Mumbai Line-3 (32.5 km), Nagpur (38.2 km), Ahmadabad(35.96km), Lucknow(22.9km), Chennai Monorail Phase-1 (43.48 Km), Mumbai Monorail Phase-2, (11.2km) Rapid Metro Gurgaon (7.0km),

METRO RAIL PROJECTS UNDER CONSIDERATION (386 KM) Delhi & NCR (104 km), Delhi Metro Phase-IV( km), Pune (31.5 km), Chennai Extn. (9.05 km) Vijayawada (26.03 km) Vishakhapatnam (42.4km) Patna ( 31.1 km) Chandigarh ( km) Delhi-Sonipat - Panipat (111 km) Delhi-Gurgaon - Alwar (180 km) Delhi-Ghaziabad-Meerut (90 km).

INITIATIVES FOR MAKE IN INDIA Rationalisation of Standards & Specifications for civil, rolling stock, signalling, telecommunication and other systems of metro rail. Standards & Specifications for National Common Mobility Card (NCMC) being developed. Standards & Specifications for Automatic Fare Collection (AFC) Gates & Validators being developed.

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