Managing Urbanization

Editors - SOMIK LALL & TARA VISHWANATH

Presented by –
Shivprasad Bhide (09)
Shrikant Hire (36)


• Enhance the productivity.

• Improve livability and social Inclusion.

• Investment in improving connectivity
between metropolitan and their
peripheries, for growth and inclusion.

• According to the 2011 census, 90 million people
were added India’s urban areas over the ten-year
period
• Urbanization has led India’s impressive economic
growth of the past twenty years. GDP grew by 7.2
percent a year in the first decade of this century.
• How urbanization is managed has implications for
both economic efficiency and equity.
• As people and jobs move to the suburbs, their
transport costs in maintaining the contact with the
core shoot up. Suburbanization also poses
challenges for urban mobility, which is increasingly
constrained by public transport’s limited role.

• Metropolitan dominance in economic
activity

• Metropolitan stagnation

• Metropolitan suburbanization
Radius from the center in kilometers
Less than
50
50-100 100-200 200-300 300-450 More than
450
Total
Land Area 1.1 3.3 11.9 16.7 24.7 42.2 100.0
Total
Population
8.9 4.5 13.7 16.3 20.6 36.0 100.0
Urban
Population
24.9 3.6 12.9 17.2 19.2 22.1 100.0
Rural
Population
2.8 4.9 14.0 15.9 21.1 41.3 100.0
Population
density
(per sq. km)
2,451 427 364 306 262 269 315
Urbanization
rate
77.7 22.4 26.2 29.4 25.9 17.1 27.8
• Industrial agglomeration and dispersion in
metropolitan cities of India.
• The economies from agglomeration are
outweighed diseconomies of agglomeration
(The slowdown normally happens at a late
stage of development. This turning point was
at a per capita GDP of $ 7,000 for France and
about $ 10,000 per capita for Canada and the
Netherlands. By comparison, with income
levels for less than $1,500 per capita for
India.)

• Indian cities have restrictive rules on
converting land for new urban uses, and
the intensity at which land can be used
by industry, commerce, and housing.
• Growth of metropolitan suburbs may well
be a reaction to draconian land policy.

? Urban expansion requires land
? Land acquisition has its own challenges:
• - Fair valuation and compensation,
• - Resettlement of displaced residents
? Land Acquisition and Rehabilitation and Resettlement Bill
• - Attempt to balance efficiency with equity
• - Highlights need for poverty and social impact analysis
• - Suggests use of Sales Comparison approach for valuation
• - Does not address land use conversion and unclear property
rights

• Need to manage livability
• Capacity of existing infrastructure systems
restricting urban densities
• Observed Metropolitan Suburbanization in
the early stages of development
• Existing FSIs - Very less as compared to
other countries

• Weak urban transport system increases problems
• Limited integration with other modes of transport
• Least affordable public transport system, based on Public
Transport Affordability Index, adjusted for per capita income
• (Cost in Mumbai is more than 2 times that in London
and 5 times that in New York)
• Increased congestion due to combination of narrow roads
and increased private car ownership
• Freight rates between metropolitan cores and peripheries ~
Rs. 5.2 per ton-km (twice than national average)
• - Use of smaller, older trucks on Metropolitan routes
• - High percentage of empty backhauls
• - Annual run not able to recover costs

• Access to basic services (Water, Electricity,
Drainage) and Quality of the services determine
living standards and industry performance
• No major cities provide continuous water supply to
more than 50% population
• Spatial variations exist within Metropolitan
peripheries
• (93% households have access to drainage in
Metropolitan cores as compared to 70%
households 5 km from the core.)
• Tariffs do not cover costs

• Need to dismantle Urban Planning ‘license raj’
• Jawaharlal Nehru National Urban Renewal
Mission (JNNURM)launched in 2005
• - Envisaged 23 reforms to be implemented by 67
mission cities
• - Renewed focus on urban sector and made huge
investment in urban infrastructure
• - Dull performance for reforms critical to improving
accountability and urban governance
• - Most cities had not carried out integrated urban
planning, required by JNNURM.

• Land Policies:
• In the long term, creation of:
• - transparent system to convert land use,
• - clear definition of property rights,
• - robust system of land and property valuation,
• - strong judicial system to address public
concerns

• In the short and medium term, usage of Land
Readjustment instead of Land Acquisition

• Urban Densities:
• - Tapping opportunities of generating finance for
infrastructure services using increased land values
• - Increasing granularity of FSIs: Higher FSIs near
infrastructure networks


• Commuting:
• - Tapping of different modes of transport
• - Integration of various modes of transport
using land use planning

• Goods Movement:
• - Adoption of Logistics Management systems
for high yield
• - Formation of trucking associations

• Basic Services:
• - Achieve 100 % metered connections
• - Reduce inefficiencies in the delivery
• - Reduce wastages and thefts of the services
• - Increase tariff to cover O&M costs, asset
depreciation and gain adequate return on
assets

• All these and more measures need to be in
accordance with Integrated Urban Planning
framework and efforts.


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