Urban India to contribute 70 percent to GDP by 2011

With major cities yielding various job opportunities, the contribution of urban India to the national GDP is likely to touch 70 percent in the next five years, industry body Assocham has said.

An Assocham paper titled, 'Urban India: Growth Opportunities and Difficulties', revealed that almost 300 million Indians living in major metros and cities would push India's GDP growth to 10 percent by 2011, from the 2001 level of 6 percent.

Urban India would emerge as a major epicentre for both domestic economic activities and overseas businesses that would pave the way for higher urban per capita income at Rs 36,000 per annum by 2011, which is a Rs 10,000 jump from the current estimates of Rs 26,000 per annum.

"Job opportunities for a large number of job seekers and qualified professionals in areas of IT and IT-enabled services, manufacturing and biotechnology will be offered in metros and small cities like Pune, Hyderabad, Kochi, Ahmedabad, Chandigarh, Dehradum and Jaipur", Assocham president Anil K. Agarwal said.

The urban population grew to 27 percent in 2001 from 25 percent in 1991 due to migration of labourers from villages to cities for financial security and better standard of life. Towns in India grew by 16 percent to 4,368 in 2001 from 3,768 towns in 1991 and is expected to touch the 5,000-mark by 2011. As a result, the urban employment rates would exceed the present 38 percent, much higher than the rural employment growth rate of mere 16 percent, Assocham said.

The Centre, through the Jawaharlal Nehru Urban Mission, has already earmarked an outlay of Rs 1 trillion for the next seven years to cover around 60 cities with a million-plus population for improving infrastructure, sanitation and housing facilities.

The annual investment for urban water supply, sanitation and roads are estimated to be about Rs 280 billion for the next decade, but improving urban transport infrastructure with a population exceeding 0.1 million, would need a whopping Rs 2.07 trillion in next 15-20 years, the chamber said. Assocham recommended urban reforms and private sector investment - which cannot be invited unless a proper legal and regulatory framework is put in place - to support this growth.

- The Economic Times

NHDP projects worth Rs 44.39 billion get nod

The Public Private Partnership Appraisal Committee (PPPAC) has approved nine highway projects with an investment of Rs 44.39 billion under the third phase of the National Highway Development Programme (NHDP).

The committee has so far approved 10 highway projects of NHAI involving a total investment of more than Rs 50 billion and also a port sector project.

A senior official associated with the committee on infrastructure headed by the PM, said, "there were delays because we were undergoing structural changes to execute infrastructure projects through PPP route and so resistance from many quarters was bound to come. But this is a passing phase and once everyone, including the Ministry of Shipping, Road Transport and Highways get used to the new system, progress will be seen in leaps and bounds".

The committee cleared the setting up of an iron ore handling facility on build, operate and transfer (BOT) basis at New Mangalore port at a total cost of Rs 1.03 billion.

The committee also cleared six and four laning of the NH-10 section from Delhi-Haryana border to Rohtak, including the construction of Bahadurgarh and Rohtak by-passes on BOT basis, whose project cost is estimated at Rs 4.41 billion.

Four laning from the junction of NH-68 with NH-7 near Salem to the junction of NH-68 with NH-45 near Ulundrupet, at a project cost of Rs 941 crore was also cleared by the committee.

The official added, "the delays were due to unavailability of eligible candidates for infrastructure projects to whom concessions could be awarded; so now we will also be inviting foreign players of repute and make the environment conducive for them to participate in PPP projects in infrastructure".

- Business Standard

New housing policy to promote FDIs in integrated townships

The proposed National Urban Housing and Habitat Policy, 2006, is expected to include a mandatory norm providing 20-25 percent dwelling units to lower income groups (LIGs) in the newly promoted integrated townships utilising foreign direct investment (FDI).

Union minister of state for housing and urban poverty Kumari Selija said, "The policy proposes to promote FDI in integrated townships, real estate, public-private partnerships, development of secondary mortgage markets where 10 to 15 percent of land is earmarked for providing 20-25 percent dwelling units for economically weaker sections/LIG segments in an inclusive manner".

She said the proposed policy is expected to remove problems of housing and improve habitats for the urban poor and slum dwellers. The government is taking concrete steps including a model Act on urban street vending which is being finalised shortly to facilitate and regulate street hawking activities, Selja said. She also wanted municipalities to play a proactive role in formulating and implementing schemes to support the street vendors.

Interestingly, the ministry of urban poverty alleviation is also working on the report of the task force on micro-credit to promote micro-finance initiatives for self-reliance among the urban poor.

- Financial Express

New highways to bring Himalayas within reach

Destinations in the Himalayan region would soon become far more accessible, with the government planning to construct over 700 km of 'Himalayan Highways'. The project cost is estimated at Rs 18.45 billion. The Uttaranchal government has asked the Centre to declare the stretch as national highways.

The proposed bi-laned Himalayan highways will start from Dehradun and continue all the way up to Nepal border. The state government has already appointed a consultant to draw up a detailed project report (DPR) for the same and the consultant is on the job, a senior official of the Uttaranchal government said. The proposed Himalayan Highways will start from Tuni district near Dehradun, and will end at Lohaghat in Pithoragarh district where it will connect the highways with the Indo-Nepal border", he added.

The project would be accomplished only after the Centre declares it as national highways. "As the project cost is enormous, the highways could not be developed without the Centre's help, "an official in the ministry of shipping, road transport and highways said. It's also being planned to connect the highways with the capital.

The proposed highways will be two-laned, but no decision has been taken on the financing of the model. Whether it would be based on build-operate-transfer (BOT) toll or BOT annually model, would be decided by the Centre, a state government official said. "Under the DPR, the project cost has been estimated at Rs 18.45 billion, but could go up further", he said. The initial length had been estimated at 659 kms, but after the consultant suggested additional linkages such as bridges and bypasses, the length has gone up to 706 km".

The preparation of DPR was sanctioned by the centre at a high level meeting under the Central Road Fund, the official said. The Himalayan Highways will cut through the Kumaon and Garhwal region. The project would be implemented by either the National Highways Authority of India (NHAI) or the Border Roads Organisation (BRO). The latter has undertaken construction works in the difficult and hostile terrain in the north and north-eastern parts of the country.

-The Economic Times

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