Urban Transformation Strategies in the Union Budget 2024-25

Syllabus: Geography/ Governance: Urban Governance

Source: PIB

Need for Urban Transformation Strategy

• Increasing Urban Population: Currently, urban areas constitute ~35% of India’s population; Expected to grow to 53% by 2047.

• Economic Contribution: Urban centres contribute ~66% to the national GDP; Expected to reach 80% by 2050.

• Key Issues: Infrastructure deficit. Rapidly deteriorating environment, including air pollution.

• Infrastructure deficit.

• Rapidly deteriorating environment, including air pollution.

• Sub-optimal planning and governance.

Urban Transformation Strategies in Union Budget 2024-25:

Strategies in Union Budget 2024-25 | Details

PM Awas Yojana (PMAY) | Expansion and Investment: Allocation for 3 crore additional houses, including PM Awas Yojana Urban 2.0 for 1 crore urban poor and middle-class families with ₹10 lakh crore investment. Central assistance of ₹2.2 lakh crore over five years and interest subsidies for affordable loans.

Union Budget 2024

Vision and Commitment: Focus on pucca houses with essential amenities (toilets, LPG, electricity, tap connections). Female head of the family mandated as owner/co-owner, promoting women’s empowerment among EWS and LIG.

Rental Housing | Dormitory-type accommodation for industrial workers through PPP mode, supported by Viability Gap Funding (VGF) and anchor industries. Policies for efficient and transparent rental housing markets.

Cities as Growth Hubs | Development of cities as growth hubs through economic and transit planning, orderly peri-urban area development, and creative brownfield redevelopment. Transit Oriented Development plans for 14 large cities with populations above 30 lakh.

Water Supply and Sanitation | Partnership with state governments and multilateral development banks to promote water supply, sewage treatment, and solid waste management projects in 100 large cities. Utilization of treated water for irrigation and tank filling.

Weekly ‘Haats’ | Support for developing 100 weekly ‘haats’ or street food hubs each year for five years, building on the success of the PM SVANidhi Scheme for street vendors.

Stamp Duty | Encouragement for states to moderate high stamp duty rates and lower duties for properties purchased by women, as part of urban development reforms.

Other Initiatives:

Initiative | Description

AMRUT (Atal Mission for Rejuvenation and Urban Transformation) Scheme | Aims to provide basic services like water supply, sewerage, and urban transport to households, ensuring improved urban infrastructure.

Climate Smart Cities Assessment Framework 2.0 | Evaluates and guides cities in integrating climate resilience into their urban planning and development strategies.

TULIP – The Urban Learning Internship Program | Offers internships to young graduates in urban local bodies and smart cities to enhance their understanding of urban governance and planning.

Smart Cities Mission (SCM) | Focuses on promoting sustainable and inclusive cities that provide core infrastructure, a clean and sustainable environment, and quality of life to citizens.

National Mission for Clean Ganga (NMCG) | Aims to rejuvenate the Ganga River by implementing projects for pollution abatement, river surface cleaning, and biodiversity conservation.

River Cities Alliance (RCA) | A collaborative platform for river cities to share knowledge and best practices on river management and sustainable urban development.

National Water Policy, 2012 | Advocates for rainwater harvesting and desalination in urban and industrial areas to increase the availability of utilizable water, promoting sustainable water management.

Mains Link:

With a brief background of quality of urban life in India, introduce the objectives and strategy of the ‘Smart City Programme.’ (UPSC 2016)

Prelims Link:

With reference to Ayushman Bharat Digital Mission, consider the following statements: (UPSC 2022)

• Private and public hospitals must adopt it.

• As it aims to achieve universal, health coverage, every citizen of India should be part of it ultimately.

• It has seamless portability across the country.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(d) 1, 2 and 3

Ans: (d)

Consider the following statements: (UPSC 2011)

In India, a Metropolitan Planning Committee

• is constituted under the provisions of the Constitution of India.

• prepares the draft development plans for metropolitan area.

• has the sole responsibility for implementing Government sponsored schemes in the metropolitan area.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

Ans: (a)