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Urban Infrastructure

Planning & Management

Prof. Subhrangsu Goswami


Prof
s.goswami@cept.ac.in

CEPT University

Course Outline

What is Urban ? What is Urban ?

  According to the 2001 census, includes all places with a


municipality, corporation, cantonment board or a notified
town area committee

 Other places with a minimum population of 5,000, at


least 75% of male working population engaged in non-
agricultural activities and density of population of at least
400 persons per square kilometre.
What is Infrastructure? What is Infrastructure?


While Infrastructure is recognised as a crucial input for economic
development, there is no clear definition of infrastructure
according to the current usage of the term in India.

For policy formulation, setting of sectoral targets and monitoring


projects, a clear understanding of what is covered under the rubric
of ‘infrastructure’ is necessary to ensure consistency and
comparability
bilit in
i th data
the d t collected
ll t d and d reported
t d by
b various
i
agencies over time.

Planning Commission, 2008

Who and Why ? What is Infrastructure for Whom?


 Planning Commission
 Central Statistical Organisation (CSO)
 Reserve Bank of India (RBI)
 I
Insurance Regulatory
R l and
d Development
D l Authority
A h i (IRDA)
 Income Tax Department
 World Bank
 Ministry of Finance Economic Survey
What is Infrastructure? So…..Finally…..What is Infrastructure?


 Infrastructure is the basic physical and organizational
structures needed for the operation of a society or
enterprise, or the services and facilities necessary for an
economy to function. The term typically refers to the
t h i l structures
technical t t th t supportt a society,
that i t suchh as roads,
d
water supply, sewers, power grids, telecommunications, and
so forth.

http://en.wikipedia.org/wiki/Infrastructure

What is Urbanization ? Don’t Confuse

 “Urban growth” this is growth in the population of a


particular city
p y or cities

 “Urban sprawl” this is growth in urbanized land area


d e to low
due lo density
densit development
de elopment
The typical S-curve of urbanization
((varies
i from
f place
l to
t place
l regarding
di the
th onsett time
ti and
d
steepness of the slope) The 10 least urbanized countries

 Rwanda
 Burundi
100  Uganda
tion liviing in

 Malawi
80  Ethiopia
p
as
percent off

ban area

60  Burkino Faso
 Eritrea
40
populat
urb

 Bhutan
20
 Nepal
0
1850 1870 1890 1900 1920 1940 1960 1980 2000  Papua New Guinea
year

The 10 most urbanized countries

 Singapore
 Kuwait
 Belgium
 Qatar
 Iceland
 Uruguay
 Luxembourg
 Malta
 Argentina
 Lebanon

Yellow areas on map


World’s most populous metropolitan areas
CITY COUNTRY POPULATION
Tokyo-Yokohama Japan 31.8 million
Seoul S. Korea 20.7
Jakarta Indonesia 19.9
Mexico City Mexico 19.5
New York U.S. 19.5
Sao Paulo Brazil 18.1
Mumbai India 17.4
Osaka-Kobe-Kyoto
y Japan
p 17.4
Delhi-New Delhi India 16.7
Kolkata India 15.1
Manila Philippines 15 0
15.0
Los Angeles U.S. 14.5
Moscow Russia 14.2
B
Buenos Ai
Aires A
Argentina
ti 13 7
13.7
Cairo Egypt 13.7
London U.K. 12.7
Shanghai China 12.5
Rio de Janeiro Brazil 11.3

We’re comparing apples & oranges

 What do you think is different?


 Levels of “development”
 Economic prosperity
 Public health & welfare
 All of which relate to: Fastest Growing Cities ???
 Rates of growth
 The city’s role in the global economy
 Access to human and natural resources
Status of Urbanization in INDIA Status of Urbanization in INDIA

 India’s urban population, as per its 2001 Census, was 285 No. of
%age to %age to
million (27.8%
(27 8% of its total population of 1.03
1 03 billion) City Class total no. of Population total urban
T
Towns
towns population
 The number of towns and cities was 5,161 Class I 1 lakh & above 441 8.6 178,224,290 62.3

Class II 50,000 - 1 lakh 496 9.6 34,451,500 12.0


 In the world context, the country’s current urban population is
almost equal to the combined urban population of United Class III 20,000 - 50000 1,388 26.9 42,119,280 14.7
States, UK and France
Class IV 10,000 - 20000 1,563 30.3 22,614,319 7.9
 Of the 10 largest cities in the world, 3 (Mumbai, Kolkata, and Class V 5,000 - 10000 1,041 20.2 7,889,668 2.8
Delhi)
e )a are
e located
ocated in India
da
Class VI Below 5,000 232 4.5 820,632 0.3

Total 5161 100 28,61,19,689 100.0

Source: Census of India 2001

Status of Urbanization in INDIA Status of Urbanization in INDIA

 The National Capital Territory of Delhi is most urbanized with 93


Percentage share of urban population in Different Size Categories
percent urban population followed by Union territory of Chandigarh (89.8
100% percent)) and Pondicherry
p y (66.6
( percent).
p )

80%  Among the major States, Tamil Nadu is the most urbanized state
with 43.9 percent of the population living in urban areas followed by
ercentagge

60% Maharashtra (42.4


(42 4 percent) and Gujarat (37.4
(37 4 percent).
percent)

40%  The proportion of urban population is the lowest in Himachal


Pradesh with 9.8% followed by y Bihar with 10.5 percent,
p , Assam (12.7
(
Pe

20% percent) and Orissa (14.9 percent).

0%  In terms of absolute number of persons living in urban areas,


Maharashtra leads with 41 million persons which is 14 percent of
1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 the total population of the country. Uttar Pradesh accounts for about
35 million followed by Tamil Nadu 27 million.
Class VI Class V Class IV YearClass III Class II Class I
Contribution of Urban Areas to National Income
What IIR Says ???

 The escalating demand for basic services in urban


centers
t i resulting
is lti i a serious
in i d t i
deterioration
ti off service
i
Share of Share of
Year quality across housing, transport, health care, power,
Population (%) National Income (%)
water supply and sanitation, and education.
1951 17.3 29

1981 23.3 47  Benign neglect of urban sprawls by civic authorities has


lead cities,
cities to be vulnerable to natural disasters and
1991 25.7 55 disease.
2001 27.8 60
(India Infrastructure Report, 2006)

26

Source: Ministry of Urban Affairs, Government of India, reported in Kumar (2003).

Service Coverage of Urban Population in India


Status of Urban Infrastructure in India

Service Urban Population


Coverage
 City roads are inadequate to meet the traffic
Protected water supply 90% requirements (vehicle pop in India increased
Sanitation 49% 80-fold
80 fold in last 40 years but road length
increased by only 5 per cent)
Sewerage system 28%
Low cost sanitation facility 21%

Solid waste collection - metros 90%

Solid waste collection - smaller towns Less than 50%

Source: Economic Survey, 2000-01

27 28
Availability and Gap in Availability and Gap in
Investment Requirements Investment Requirements

Sl. Municipal Average Zakaria Average Expenditure of Average Under Sl. Municipal Average Zakaria Average Expenditure of Average Under
No. Corporation Norm the MC on Core Spending of the MC No. Corporation Norm the MC on Core Spending of the MC
((Rs. Per Capita)
p ) Services ((As Percentage
g of ((Rs. Per Capita)
p ) Services ((As Percentage
g of
(Rs. per capita) Zakaria Norm) (Rs. per capita) Zakaria Norm)
1 Hyderabad 861.71 207.41 -76.01
16 Nashik 883.52 571.11 -35.52
2 Visakhapatnam 786.21 198.76 -74.73
17 Ludhiana 744.84 281.92 -62.77
3 Vijayawada 791.06 147.67 -81.40
18 Jaipur 979 17
979.17 114 32
114.32 -88.48
88 48
4 Patna 856.56 47.56 -94.43
19 Chennai 839.69 250.84 -70.11
5 Delhi 920.78 137.35 -85.38
20 Coimbatore 771.71 146.19 -81.06
6 Surat 986.12 370.61 -62.24
21 Madurai 726.77 187.30 -74.75
7 Vadodara 804.18 384.21 -50.43
22 Lucknow 921 07
921.07 93 38
93.38 -89.88
89 88
8 Bangalore 983.77 249.24 -74.92
23 Kanpur 917.65 82.45 -91.01
9 Kochi 747.95 277.34 -63.65
24 Allahabad 795.23 78.08 -90.17
10 Indore 843.88 210.63 -75.54
25 Agra 837.94 72.70 -91.31
11 Bhopal 823.74 127.53 -84.50
26 Varanasi 783 51
783.51 76 58
76.58 -90.17
90 17
12 Jabalpur 808.08 115.18 -85.79
27 Meerut 840.60 82.84 -90.15
13 Greater Mumbai 873.37 597.17 -31.64
28 Faridabad 896.00 141.14 -84.25
14 Pune 985.55 684.89 -30.78
29 Kolkata 819.73 255.82 -68.75
15 Nagpur 892.33 289.08 -67.50
30 Asansol 788 63
788.63 77 26
77.26 -90.21
90 21

29 30

Source: Mohanty et al, 2007

Story of 10th Plan Story of 11th Plan

Funds Requirement
Sectoral Requirements of Funds (In Billion of Rs.) In the current plan, the projected sectoral
Water Supply 282.40 investment in Water supply and Sanitation is
Sanitation 231.57 anticipated at Rs. 1,437.3 Billion, which is
Solid Waste Management 23.22
equivalent to 6.99
6 99 percent of the total investment
( Rs.20,561.5 Billion) projected for Infrastructure
Total 537.19

Availability of Funds
Likely Availability from Different Sources (In Billion of Rs.)
Rs )
Central Government 25
State Governments 200
HUDCO 68
LIC 25
Other PF/s & External Funding Agencies 40 31 32
Total 358
Estimated fund requirement Low Equilibrium Trap in ULBs

 CPHEEO has estimated the requirement of funds for 100 percent Low Revenue
o g of the urban p
coverage population
p under safe water supply
pp y and Base
sanitation services by the year 2021 at Rs.172,905 crore

q
 RITES indicate that the amount required for urban transport
p
infrastructure investment in cities with population 100,000 or more
during the next 20 years would be of the order of Rs.207,000 crore Inadequate
Unwillingness Capital
t P
to Pay I t
Investment t&
Maintenance
CONCERN:

S
Sums off these
h magnitudes
i d can not be
b located
l d from
f within
i hi the
h
budgetary resources of Central, State and Local Governments.
Low Service
Level

Investment Requirements Driven By Investment Environment Improvement

 Past under-investment  Major thrust on improving credit-worthiness of


 Rapid urbanisation urban local bodies
 Rapid economic growth
 Increasing trade and globalisation of the Indian  Development of capital market for urban
economy infrastructure financing
 Demand from p public and business for better
infrastructure  Improvements in services delivery and
 Infrastructure required for international management through public-private
competitiveness partnerships and introduction of e-governance
e governance
in municipalities

35 36
Key Determinants for a Successful PPP
Investment Environment Improvement
 Improvements in revenue-raising capabilities through
 Adequate Demand for the services/goods
 Political commitment to the project
 Rationalisation of user-charges to recover at least the
cost of operations and management of services  Administrative framework and readiness to meet requirements
 Partnership of Public (Government) with Private Sector rather than
 improvements in tax assessment and administration owner-contractor relationship
particularly in property tax  Provision of information required to take informed decision to
reduce risks and uncertainty
 Changes in municipal accounting and financial  Technical, Environmental, Social, Financial, Legal aspects
reporting systems
 Bankability of project and project documents

37 38

Who Plans ? Who Manages ? So we need to juggle with ???

Activities
Storage
Source Distribution
Options Conveyance and O&M
Development network
Filtration
1
Municipal Government (ULBs)

2 State Government
Municipal Government (ULBs)
D
Department
3
State
Parastatal
Government Municipal
p Government (ULBs)
( )
Agency
Department

4
Metropolitan Agency
5 State Government Department or Agency
A Future so Bright !!! A Future so Bright !!!

Source: McKinsey Global Institute, 2010

Performance Indicators
A Future so Bright !!!
Roads
Infrastructure Spectrum
o Basic services forms the
base of the spectrum
Water, Drainage,
Sanitation, Roads, Power,
Safe Waste Treatment &
Disposal

o Next level provides


State of the art facilities
Broadband, GSM etc.
value added services
like Urban
transportation
Value Added Services
Ports, Airports, SEZs,
Fly overs, Transportation, Parks and Telecommunication, In-
Gardens etc l d Transportation,
land T t ti W t
Water
ways…
Basic Services
Water Supply,
Supply Sanitation
Sanitation, SWM
SWM, Roads
Roads, Power etc o The top p level services
occupied by the state of
Urban Infrastructure Spectrum art facilities like optical
fibre, broadband, GSM,
WI MAX/FI
WI-MAX/FI

Water Drainage
Transportation Infrastructure Sanitation for Urban Poor

Should
Have
been here

Present
Junction
Location

Waste Water Treatment Systems

24th August 2003 in Ahmedabad


Infrastructure Planning Objectives Some Core Issues

o How many hours of Supply? ( 0.5 to 24*7?)
o Accessibility ( How Far?)
o Quantity ( How Much?) o Water Quality ( TDS 500 or TDS 2000?)
W Q li ( TDS 500 TDS 2000?)
o Quality ( TDS? DO?) o Waste Water Treatment or Disposal without treatment?
o Reliability (2 Hrs? 24 Hrs?) o Solid Waste Treatment and Disposal? Sanitary Landfill ( Who 
o Economy ( Cost per capita)
& How to maintain it? )
& How to maintain it? )
o Equity?
o Street Furniture's & Intersections?
o Urban Sanitation ( Public Sanitation & Poverty Pockets?)

Decision Issues? D
Demand
dAAssessmentt

• Which Standard to choose ? ( IS Codes? UDPFI? GWSSB or   Service Demands are assessed for levels, coverage and


y
efficiency
IRC?)
• Low cost innovations or centralized?  Demand Assessment important for:
o making investment & management decisions about
• Achievability ? ( Is it possible to achieve such standards) what services to provide the households.
o the extent to which project beneficiaries demand and
• Integration ( Road
Integration ( Road‐Water‐Waste
Water Waste water)
water)
are willing to pay for project
• Cost Recovery? o to design better projects
o to manage & evaluate the performance of projects
• Equity of Poor? ( about 50% under “extreme poverty” <US$ 
1/day & 72% <US$ 2/day)
Solutions need vision… But may be easier than we think…

57 58

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