Let municipal bodies raise funds from market: panel

New Delhi: A high-powered committee has recommended that investment in urban infrastructure should be raised from current 0.7% of GDP to 1.1% by 2031, along with a slew of measures like allowing municipal bodies to raise funds from market to meet the challenge of rising population in cities. The report of the committee set up by Urban Development Ministry, prepared in March, was opened for discussion as the Urban Development Ministry begins to prepare a framework for the next urban renewal mission. [caption id=“attachment_96157” align=“alignleft” width=“380” caption=“In Greater Mumbai, slum dwellers account for 54% of the total population. Reuters”] [/caption] The report suggested that urban local bodies should be allowed to borrow from the market but within limits and with explicit approval of the state government. The idea was welcomed by Urban Development Minister Kamal Nath who said that large municipal corporations had the ability to raise money through bonds like in several parts of the world. “Large Municipal corporations whether it is Delhi, Bangalore, Chennai or Mumbai, they have the ability and they should be doing it,” Nath said. Experts and officials from states were present as the findings of the report were presented. Isher Judge Ahluwalia, who headed the panel, shared the key findings of the report which said that “projections suggest that India’s urban population as presently defined will be close to 600 million by 2031, more than double that in 2001.” According to the report, “the number of metropolitan cities with population of 1 million and above has increased from 35 in 2001 to 50 in 2011 and is expected to increase further to 87 by 2031.” On average, 25% of the population in many Indian cities lives in slums. In Greater Mumbai, slum dwellers account for 54% of the total population, the report stated. “The investment for urban infrastructure over the 20-year period is estimated at Rs 39.2 lakh crore at 2009-10 prices,” Ahluwalia told the group of experts while presenting the findings of the report. Of this, Rs 17.3 lakh crore or 44% is accounted for by urban roads, as per the report. Sectors delivering urban services such as water supply, sewerage, solid waste management, and storm water drains will need Rs 8 lakh crore (or 20%) as per the report. The committee also suggested that 300 officers from the Indian Administrative Services and other central services be trained annually as urban specialists. PTI