Urban Infrastructure Development in India: Resource Requirements and Mobilization Methods
The IUP Journal of Infrastructure, Vol. VIII, Nos. 1 & 2, pp. 26-37, March & June 2010
Posted: 25 Mar 2010
Date Written: March 19, 2010
The development pressure on cities is increasing in India, as elsewhere in the world, with the rising urban population and growth of urban areas. The development of cities in itself is dependent upon the public infrastructure services. The creation of urban infrastructure is expensive and time consuming. Therefore it requires the Government to play a major role in making lumpy investments. This paper reviews the current patterns and trends of urbanization in India and the resource requirements of sustaining urban development through infrastructure creation and maintenance. Given the local and national importance of cities, it is argued that the Urban Local Bodies (ULBs) need to play a major role in mobilizing resources for infrastructure development in cities. However, as most of the cities have low revenue base for spending on provision of basic infrastructure services, it is suggested that the cities have to exploit the potential non-conventional means of resource mobilization, apart from reforming and strengthening the conventional means of resource mobilization. The avenues of such hitherto underutilized methods of resource mobilization have been discussed.
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