Putting a 25-point charter for urban planning and management to ensure planned urbanisation and decent urban life, Union Minister of Urban Development Venkaiah Naidu said the Urban Ministry has unleashed an investment potential of about Rs 18 lakh crore in next five to six years.
“This includes Rs1 lakh crore for Atal Mission, Rs 2.5 lakh cr under Smart City Mission, Rs 66,009 cr under Swachh Bharat Mission (Urban) and Rs 13.50 lakh cr under housing mission (urban).”
Also, Naidu promised that by 2051, half of India’s population is expected to reside in urban settlements along with 100 plus metropolitan cities.
Naidu said, “One of the mandate that was been given to my Ministry is to implement 74th Constitutional Amendment which empower the municipalities by empowering the elected representatives.”
Even though the 74th CAA was enacted in 1992, there still exists a gap in its full implementation throughout the country.”
Among other things, Naidu focused on giving more power to MCDs. “States are always asking for more powers at the same time they have to devolve more powers to local bodies and this has not been happening. I urge upon the States to devolve more 3Fs- Funds, Functionaries and Functions to Urban local Bodies (UlB) to empower so that they can serve people in a better manner.”
Highlighting that municiplatiies will have to explore new avenues for fund mobilisation and financial self sufficiency, the Minister said there are several market interventions and mechanisms like asset restructuring of municipalities and municipal bonds.
“Asset restructuring of municipalities is one of them. Most of the municipalities have lands available with them, but not used properly. They are either encroached or left vacant. You have to think of monetisation of land. Develop a part of it through PPP and use the resources for the activities of municipality,” Naidu said.
The Minister said municipal bonds are another attractive option. “For this the city has to first achieve good credit ratings. UD Ministry has empanelled six agencies including FITCH, CRISIl and ICRA. State government can engage any of them to do it,” he added.