22.1.12

Urban infrastructure

The government is committed to allot 0.25% of India's gross domestic product, or $4.2 billion (Rs.21,265 crore), in the 12th Five Year Plan to bridge the urban infrastructure gap, Kamal Nath, minister of urban development, told delegates from the Abu Dhabi Investment Authority.
The funds will be allocated under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), for which Rs.50,000 crore was earmarked in the seven year period starting in 2005.
According to Amitabh Kundu, professor of economics at Jawaharlal Nehru University, only the 65 mission cities under JNNURM benefit from the funds, while the 2,800 new towns identified by Census 2011 languish due to a lack of funds.
“For a stabilized urban infrastructure growth there should be a parallel structure to channelize funds to smaller towns. Unless this is done, the inequality between urban and semi urban cities will keep growing,“ he said.
Pointing to rapid urbanization, Nath said 53 Indian cities have a population of over a million each and by 2030 there will be 68 such cities. According to ministry estimates, India requires an investment of $1.2 trillion in the urban sector over the next 20 years.The government also plans to enhance the role of public-private partnerships in the infrastructure development sector to attract private capital, the minister said.

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