Urban Poor in India N.C. Saxena Oct 2013

India’s GNP Annual Growth Rate 2

Urban Share in total Population & Decadal Growth in India (1951-2011):

Break up of cities Metro cities (population-1 million +) 53 161 42 Type of cities Number Population (million) Percentage of total urban population Metro cities (population-1 million +) 53 161 42 Cities with population between 0.1 & 1 million 468 107 28 Cities with population less than 0.1 million 4041 115 30

Decline in poverty (as % of total population)

Growth in Slum Population 1981-2011 (In Million)

Infrastructural facilities lagging far behind the pace of urbanisation Slum Population 52,000 slums, but only half are notified Share of Slum Population in Urban Population – 21%. Poor health and sanitary conditions: Exposed to higher morbidity and mortality risks compared to non-slum population. Infrastructural facilities lagging far behind the pace of urbanisation Re-define urban poverty by taking into account both consumption and access to civic services

People take enormous risks in investing in permanent construction as evictions can take place at any time. Most have a temporary roof so it can be carried away at the time of demolition People take enormous risks in investing in permanent construction as evictions can take place at any time. Most have a temporary roof so it can be carried away at the time of eviction

Inequitous distribution of urban space India: Urban Housing Shortage EWS (Poorest) 21.78 Million LIG (Poor) 2.89 Million MIG/HI (Middle & Upper class) 0.04 Million Total 24.70 Million 98 per cent of shortage in Urban Housing under EWS & LIG Categories. However most new houses for the middle & upper class. Inequitous distribution of urban space

as well as in this case and pay Many urban poor families building incrementally They use savings and money from relatives and friends as well as in this case Borrow from a money lender at 10% PER MONTH and pay Rs 1,000 bribe to policeman to “allow” the construction This man wanted to improve his family’s living conditions by adding another floor. He couldn’t get a regular loan and had to borrow from a money lender at 10% per month. He also had to pay Rs1,000 to a policeman to be allowed to carry out the construction. He was doing the construction work himself.

The urban poor in Delhi Delhi has about 0.6 million rickshaw pullers and more than 0.3 million vendors, mostly run by first-generation rural migrants. But the city government has put a limit of 99,000 on licences to pull rickshaws. Thus, about 80% rickshaws operate illegally in Delhi. No limit on the number of cars. A vast majority of street vendors have no license either. They all operate outside the legal economy, harassed by the police and municipal authorities. Government considering a new law to facilitate their livelihoods. 10 million vendors would benefit

Only 10% ICDS centres in urban areas Infrastructure   Rural India Urban India Non-notified Slums Notified Slums No Electricity 57 12.4 16 1 No Latrine 78.1 26.3 51 17 No Drainage 65.8 22.1 44 15 Only 10% ICDS centres in urban areas

Addressing Urban Challenges: Jawaharlal Nehru National Urban Renewal Mission Creating a Conducive Environment & Enabling Framework Bridging the Infrastructure Deficit Addressing Poverty Alleviation & Slum Upgrading Improving O&M of Assets JNNURM Need a Departure from Business as Usual

GOI budget for JnNURM in billion Rs (62 Rs = 1$)

Tax vacant property heavily Housing Reserve at least 30% of all new housing space for the poor, and make it part of mandatory reforms Promote rental schemes Revive the scheme of night shelters All new housing schemes to construct 30% of affordable houses of 25-30 sq m for the poor Pass a law for the contractors to pay for space for the labourers in the night shelter before their tenders are considered Tax vacant property heavily

Water & Sanitation Per capita availability of water varies 10 times between poor and rich locations within a city. This must be reduced. Due to shortage of space, community toilets should be promoted. Increase Municipal staff in poor localities and slums Improve drainage, waste collection and disposal system

Financial constraints JNNURM funds cannot be directly made available to Municipalities, hence delay in release of funds. The resources raised by the municipal authorities remain peripheral to their overall budgets, high dependence on external sources. This reduces the sense of ownership, and increases irresponsible behaviour. State governments and Municipalities divert funds for the poor to other schemes. This is not detected in time, because the central government’s monitoring capability is weak. There is no follow up of expenditures incurred in previous years, and insufficient funds are provided for operation and maintenance. Third party monitoring needed

Suggestions Facilitate PPPPs Give high priority to women’s protection Ensure revenue sharing from states to ULBs Enhance the capacity of ULBs Introduce Citizen Charters Bring human development analysis to urban poverty reduction Strengthen monitoring systems Facilitate PPPPs

Thank you