Capacity Building in urban Sector Rakesh Ranjan Adviser, Housing and Urban Affairs Planning Commission, Government of India October 21, 2013

1 Urbanization is important to India About 400 million Indian live in urban India. It is 31% of population. Compared to 45 per cent in China, 54 per cent in Indonesia, 78 per cent in Mexico, and 87 per cent in Brazil India is less urbanised. Still 53 cities - million plus popn. Projections are that by 2031, India would add another 200 million urban population. Structural transformation of the country is incomplete. Occupational shift has lagged behind changing pattern of origin of GDP. Produces more than 60% of GDP

2 Importance of urbanisation Demographic Dividend: India has a relatively young population and its labour force would grow. YearAgricultureIndustryServices Composition of National GDP

3 Importance of Urbanisation Migration has contributed only about 22% of growth in cities population. People would move in search of better jobs. Agriculture targeted to grow at 4%, Manufacturing about 10%. Services too have potential to higher growth. Transition from agriculture to non-agriculture based employment is important for inclusive growth. Cities are deficient in providing amenities to existing population. It needs to cater for migrants as well. Has a lot of catching up to do.

4 Capacity Building for managing cities Under JNNURM more than 2900 projects By the time Mission ended in 2012, only about 30-40% of the projects completed. JNNURM funds crowded out private investment. Key deficit areas: a) Urban Planning b) Rolling out long term and complex PPP arrangements c) Rolling out large projects in urban transport, water supply, sanitation d) Implementation of poverty alleviation programmes. e) Projects for sustainable development

5 Cities do not have appetite despite high requirements Estimated to need 750 billion USD of Capex and 380 billion USD of Opex over 20 years. Source: Isher Ahluwalia HPEC (2011)

6 Fix urban Planning first: Raise appetite Drawing Spatial Development Plans condition precedent for receiving assistance. Capacity Building for urban Planning a) State TCPDs, Development Authorities, and UTIs must create a cell for delivery of SDP. b) Ministry devising suitable training for employees of Planning departments. c) Allow the ULBs to engage professionals. d) Overall responsibility of drawing Spatial Development Plans (SDP), to rests with the elected ULB.

7 Capacity building: funds and programme A special component under JNNURM for CB. 100% financing from Government of India. States can top up Tool kit for CB issued. Specific provisions in Rajiv Awas Yojana and NULM.

Capacity Building -Specific recommendations Working Group ( Ramachandran Committee) + HPEC + 12 th plan made extensive recommendations. (can be accessed from Basic Approach: Use Task Aligned and Just in Time Approach Build Institutional structure at Center / State and Municipal level:

9 Recommended Strategies Strategy: 1: Train elected representatives MoUD+ MoHUPA+ Planning Commission to draw time bound programme. Partnership with existing institutions preferred route. Strategy 2: Build Municipal cadre Mandatory reform under JNNURM GOI meets full training cost of cadre. Salary of cadre not admissible

10 cont’d Strategy 3: Access market based solutions Central Ministry/State Government may empanel firms/ institutions. Use model bid documents of Ministry of Finance Strategy 4: Capacity Building through partnership Engage NGOs Engage Multilateral/ International Institutions and Funds Encourage partnership with other cities.

11 Cont’d Strategy 5: Use Technology ( E-Governance and other smart technologies) E-Governance architecture developed by NIC. E-learning module developed by WBI. Strategy 6: Engage citizens: Encourage and fund projects like World Bank funded Project Service level Benchmark Connect ( SLB-connect)

12 Cont’d Strategy 7: Build knowledge Centres at Centre/State/city level Knowledge centres on identified themes. Funds for resource personnel admissible under CB component Funds not to be used for administrative purposes Strategy 8: Raise awareness on CB and Urban Planning

13 Improving Institutional structure. Identify and nominate suitable officers for driving CB activities. Engage PMU and PIU after a quick evaluation. Establish Mission units in selected areas like Poverty Alleviation and slum rehabilitation 4) State level to be staffed by the State Govt. Resource personnel at ULB level admissible under CB component for next 3 years. Encourage State level Institutions like TNUDF/KUIDFC etc

Thank You