NEW DELHI: The central government on Monday signed a policy based on USD 400 million a loan with the Manila-based Asian Development Bank (ADB) to support its urban reform agenda to create high-quality urban infrastructure, improve service delivery and promote effective governance systems. The signatories of the loan agreement for sub-programme 2 of the Sustainable Urban Development and Service Delivery Program were Juhi Mukherjee, Joint Secretary, department of economic affairs and Takeo Konishi, Country Director of ADB‘s India Resident Mission.
While the Sub-Program 1 approved in 2021 with funding of $350 million established national-level policies and guidelines to improve urban services, the Sub-Program 2 supports investment planning and reform actions at the state and urban local body (ULB) levels, the finance ministry said in a statement.
After signing the loan agreement, Mukherjee stated that the program supports the government’s urban sector strategy with a focus on reforms aimed at making cities livable and centers of economic growth through the provision of inclusive, resilient and sustainable infrastructure.
Konishi said the sub-programme 2 supports the reforms initiated by states and ULBs in operating the national flagship program of Atal Mission for Rejuvenation and Urban Transformation (Amrut) 2.0 aimed at universal access to water supply and sanitation.
The sub-program also supports other mission objectives to ensure urban water security by reducing water losses, recycling treated sewage for non-domestic use, rejuvenating water bodies and maintaining sustainable groundwater levels, the statement said.
The program also envisages integrated urban planning reforms to control urban sprawl and foster systematic and planned urbanization by improving the entire ecosystem of legal, regulatory and institutional reforms, along with capacity building of ULBs and community awareness, it said.
Specifically, ULBs will promote the modernization of building regulations, land consolidation, urban agglomeration and comprehensive urban mobility planning through transit-oriented development to help cities become well-planned centers of economic growth, the ministry added.
Such integrated planning processes will include climate and disaster resilience, promote nature-based solutions, improve the urban environment and improve financial sustainability of cities through the generation of additional income, it noted.
In addition, cities will be encouraged to become credible through various reforms on strengthening their revenues such as property taxes and user fees, improving their efficiencies and rationalizing their expenses.
This will greatly help cities to mobilize innovative financing, such as commercial loans, issuance of municipal bonds, sub-sovereign debts and public-private partnerships to limit significant deficits in urban infrastructure investments, it added.
While the Sub-Program 1 approved in 2021 with funding of $350 million established national-level policies and guidelines to improve urban services, the Sub-Program 2 supports investment planning and reform actions at the state and urban local body (ULB) levels, the finance ministry said in a statement.
After signing the loan agreement, Mukherjee stated that the program supports the government’s urban sector strategy with a focus on reforms aimed at making cities livable and centers of economic growth through the provision of inclusive, resilient and sustainable infrastructure.
Konishi said the sub-programme 2 supports the reforms initiated by states and ULBs in operating the national flagship program of Atal Mission for Rejuvenation and Urban Transformation (Amrut) 2.0 aimed at universal access to water supply and sanitation.
The sub-program also supports other mission objectives to ensure urban water security by reducing water losses, recycling treated sewage for non-domestic use, rejuvenating water bodies and maintaining sustainable groundwater levels, the statement said.
The program also envisages integrated urban planning reforms to control urban sprawl and foster systematic and planned urbanization by improving the entire ecosystem of legal, regulatory and institutional reforms, along with capacity building of ULBs and community awareness, it said.
Specifically, ULBs will promote the modernization of building regulations, land consolidation, urban agglomeration and comprehensive urban mobility planning through transit-oriented development to help cities become well-planned centers of economic growth, the ministry added.
Such integrated planning processes will include climate and disaster resilience, promote nature-based solutions, improve the urban environment and improve financial sustainability of cities through the generation of additional income, it noted.
In addition, cities will be encouraged to become credible through various reforms on strengthening their revenues such as property taxes and user fees, improving their efficiencies and rationalizing their expenses.
This will greatly help cities to mobilize innovative financing, such as commercial loans, issuance of municipal bonds, sub-sovereign debts and public-private partnerships to limit significant deficits in urban infrastructure investments, it added.