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POLICY REVIEW
and Nashik (Rs. 2,092 crore). limited private investment in India was launched in 2015 to
infrastructure is the absence of a a ract investment, driving
Most importantly, in the case of
both bus and rail-based revenue model, for example, economic growth, improving the
through levy and collection of quality of life for people and
infrastructural development, the
budget extends the transport appropriate user charges and thereby se ing a virtuous circle
this, in turn, makes a large part of growth and development.
outlay to peripheral areas of
of the urban infrastructure sector However, even after the
Tier-1 cities primarily through
the greener and cheaper light financially non-viable. Lack of completion of five years, the
rail systems. These initiatives enabling PPP legislation, a physical progress of the SCM
would not only shorten the multiplicity of agencies, lack of has not been as per the expected
travel time to work and thereby ability to select and structure a lines and the BE for SCM
facilitate effective urban labour PPP project, lack of political will remains the same between the
market integration but also towards project implementation, FY 2020-21 and 2021-22 at
entail positive impacts on the and lack of citizen participation Rs.6,450 crore. The RE for FY
urban environment and public further complicates the entire 2020-21 for SCM was Rs. 3,400
health. process of formulation and crore, almost half of the BE,
implementation of PPPs. suggesting a continued trend in
The role of Indian urbanization
would receive a further boost In general, technically simple the implementation lag.
through the National projects, with small gestation Moreover, there has been no
Infrastructure Pipeline (NIP) periods and lesser uncertainty change in the budgetary
that was announced last year. A have become successful in provisions for AMRUT as well,
combination of an investment Indian cities. So, the key to this the BE remains the same
outlay of over Rs.103 lakh crore approach lies in implementation between the FY 2020-21 and
and more than 7000 projects; and execution- crafting a PPP 2021-22 at Rs.7,300 crore (RE for
several industrial corridors like model with a well-defined role FY 2020-21 was Rs.6,450 crore).
Bharatmala, Sagarmala, etc.; a of the private sector as well as Overall, for the urban
thrust on exports from each clear visibility on both costs and rejuvenation missions- SCM and
district and Make in India push risks leading to a higher AMRUT, the BE outlay was
through the Production Linked probability of long-term project Rs.13,750 crore for the FY 2021-
Incentive Scheme (PLI) covering viability. The vulnerability of the 22, which was the same as FY
13 sectors, and; a financial outlay urban poor can be addressed 2020-21 (RE for FY 2020-21 was
of around Rs. 2 lakh crore under through the adoption of an Rs.9,850 crore).
the AatmaNirbhar Bharat, have independent regulatory
mechanism. This would facilitate As opposed to the centralized
the potential to make a positive
impact. accurate assessment as well as “one-size-fits-all” approach of
monitoring of cost of service JNNURM, the urban mission of
However, an overt emphasis on delivery leveraging smart
PPP causes some discomfort as technology and use of a cross- SCM and AMRUT provide some
the outcomes of such projects subsidy model of differential degree of flexibility in the
have had a mixed experience in user charges across different formulation, approval, and
Indian cities. Even under the user groups to ensure cost implementation of projects at the
Smart Cities Mission, the recovery at an overall level. state and local level (Sadoway et
contribution of the private sector al., 2018). The AMRUT statement
through the PPP initiatives has URBAN REJUVENATION delineates specific criteria for the
been approximately 20 percent MISSIONS: SMART CITIES & selection of cities, reform
of the total fund requirement. AMRUT conditionalities and financial
One of the main reasons for Smart Cities Mission (SCM) in
provisions. The Service Level
April 2021 Volume 22 No. 1- SHELTER 45
