Assocham suggests strategy to mobilise resources worth Rs 70 lakh crore for urban development

NEW DELHI: Industry body Assocham has laid out a strategy to mobilise resources worth Rs 70 lakh crore by 2030 as an aggregate capital investment mainly for urban roads, affordable housing and transportation, in a meeting with Urban Development Minister M Venkaiah Naidu here today.

The 10-point strategy directed towards urban development includes incentivisation of Real Estate Investment Trusts (REITs) and Urban Development Funds (UDFs) to invest in public utility services like slum rehabilitation, water supply, waste management and sanitation.

Besides, it has suggested development of basic infrastructure like public transport, flyovers, drainage, sanitation waste management and deepening of e-governance mechanisms for electronic delivery of public services.

The strategy further proposes to establish regulatory authority to monitor work of Urban Local Bodies (ULBs), build capacity in research, planning, human resource development facilitated by states, strengthening of financial position of ULBs through improved revenue collection, expense management, budgetary allocations and developing Municipal Bond Markets by providing suitable tax incentives to investors.

Anil K Agarwal, Chairman of Assocham Global Council, who was part of the delegation meeting Naidu, said: "Urban cities being growth catalysts are likely to create 70 per cent of the net new jobs and contribute over 70 per cent to India's GDP in the next 16 years".

By 2030, India will have six mega cities with population of around 10 million entailing annual per capita investment on urban services of Rs 8,000 per person as against the current investment of Rs 1,000 per person, according to Assocham.

Moreover, the chamber said, Mumbai and Delhi will be among the five largest cities in the world and the number of cities with over one million population will increase from 53 at present to 68.

Besides, the urban population is expected to touch 590 million accommodating approximately 40 per cent of total population. This will create critical gaps in healthcare, education, clean drinking water, sanitation, affordable housing and public transportation.

The chamber also suggested rehabilitation of slums and creation of affordable housing inventory with rental housing facilities for various income groups at city outskirts and improvement in quality of life in Tier 1 and Tier 2 cities by maintaining and developing recreation facilities and public parks.