In the fiscal year 2023-24, the Finance Ministry has incorporated additional provisions into the "Scheme for Special Assistance to States for Capital Investment." One of the notable provisions is the allocation of a significant incentive amounting to Rs 15,000 crore to the states. The purpose of this incentive is to facilitate and improve urban planning initiatives. By offering this financial boost, the government aims to encourage states to adopt effective and innovative urban development strategies, fostering sustainable growth and development throughout the nation.
In response to the chaotic and unsustainable growth of cities across the country, the Indian government has taken a significant step towards ensuring proper urban planning. The Centre has recently announced financial incentives of Rs 15,000 crore for states and Union Territories (UTs) for the current financial year. The move aims to motivate these regions to implement well-thought-out urban development strategies, hire an adequate number of urban planners, and undertake crucial projects like transit-oriented development (TOD), town planning schemes, and in-situ slum rehabilitation.
The finance ministry has integrated these provisions into the "Scheme for Special Assistance to States for Capital Investment" for the year 2023-24. Under this scheme, the funds will be made available to states as incentives for capital investment based on the recommendations of the Ministry of Housing and Urban Affairs (MoHUA). The lack of proper planning has led to haphazard urban development and the emergence of unsustainable cities.
The new guidelines emphasize specific areas of reform within the urban planning ecosystem, including legal provisions, strengthening the capacity of planning personnel, designating authorities responsible for planning, outlining the processes to be followed, and raising awareness among the public.
A senior official from the Ministry of Urban Affairs highlighted that the primary aspect of the incentive scheme involves approving and hiring the minimum required number of urban planners for each city. Speaking at the National Urban Planning Conclave, housing secretary Manoj Joshi pointed out that nearly half of the states and a majority of cities lack urban planners, with smaller cities having none. The Centre's goal is to ensure that all states and cities have a sufficient number of urban planners, and this requirement is now linked mandatorily to the special capital assistance offered to states during the current financial year.
As per the guidelines, cities with a population exceeding 40 lakh must have at least five urban planners, while those with populations between 10 lakh and 40 lakh require three planners. Similarly, cities with a population ranging from 5 lakh to 10 lakh and less than 5 lakh must have at least two and one town planners, respectively.
States that sanction and recruit urban planners will receive financial incentives. Moreover, for hiring planners on contract, the Centre will provide Rs 1 crore incentive for each planner appointed. The Ministry of Housing and Urban Affairs has categorized states and UTs into three groups based on their 2011 urban population.
In an official communication on Friday, the ministry informed state governments that 20% of the tentative incentive allocation will be released as the first instalment by the Department of Expenditure based on its recommendations. The remaining incentive amount will be disbursed as the second instalment, depending on the actual achievements made by the states on or before January 15, 2024.
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