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Urban Development Inc.
A Central Corporate Body Chanelling
Consumer Social Responsibility
to create World Class Civic Amenities
Major Urban Development Issues
โ€ข 1 in every 4 people in urban India stays in slums 1
โ€ข Average duration of water supply in Indian cities is 3.3 hours
per day 2
โ€ข 1 in every 2 people in Indian cities do not have access to
improved sanitation 3
โ€ข Increase in migration to urban areas
โ€ข Ineffective implementation of policies and funds towards
urban development
Future Cities 1
1. Census of India, 2011
2. SLB Program by MoUD
3. Baseline survey, 2012
Vision
Urban Development Inc. will be a single focused company to provide an effective
platform for Ministry of Urban Development, Ministry of Water and Sanitation,
Central Pollution Control Board and city-level municipalities to function efficiently
towards urban development.
Urban Development Inc.
Mission
Ensuring world class civic amenities in urban India by focusing on drinking water,
sanitation, slums, pollution and planned development.
Leadership
Urban Development Inc. to be headed by Minister of Urban Development with
primary roles being policy making, formulation of rules and regulations, governance
of municipal corporations, allocation of funds
Future Cities 2
Implementation
Urban Development Inc.
Research and Administration
Wing
Implementation WingAccounts Wing
Ministry of Urban Development
Ministry of Water and Sanitation
Central Pollution Control Board
All City MunicipalitiesCompany Bill to direct
CSR Fund to UDI
Effective CSR Funds
Utilization
(2% of Companyโ€™s Profits)
Future Cities 3
Vertical Flow of Money
Why Current CSR investments fail?
Non- Uniform and
Ineffective CSR Models
Not Requirement
Oriented
Misuse of Tax
Benefit
Corporation
Net Value >=
500 crore
Corporationโ€™s Legal
Obligation to Create
a CSR Committee
CSR directs Company
Resources to Social
Welfare
CSR: Corporate Social Responsibility
Future Cities 4
CSR
Funding
3 pronged way of funding
1. CSR from companies
โ€“ Long Term strategic channeling of funds
โ€“ Eliminates the need to assess, monitor and report initiatives and judge efficacy of
current CSR initiatives and investments according to Company Bill
โ€“ Money Pool Creation: INR 120 billion
2. Existing central government funding to MoUD, JnNURM and MWS
3. Municipal taxes collected by State governments
Funding and Scalability
Scalability
โ€ข Subsequent funding sources to include increased penalties collected from
defaulters
โ€ข Policy proposal to reduce CSR investments to encourage companies to
establish factories in rural areas.
โ€ข Awareness Campaigns on Urban Issues initiated by UDI and sponsored by
corporates.
Future Cities 5
Impact Assessment
โ€ข Impact to be assessed on additional investments generated via
channeling of CSR
โ€ข Current CSR investments according to Company Bill norms by
top 1000 corporations in India is INR 120 billion per year
โ€ข According to a study by CII, India needs to invest USD 70 billion
on water supply and sewage between 2011-20
โ€ข CSR investments over the next 10 years (taking into account an
assumed total uniform increase of 200% CSR investment) will be
USD 30 billion which amounts to, for example, 42% of required
investments on water supply and sewage
Future Cities 6
Challenges and Mitigation
Future Cities 7
Challenges
โ€ข There might be conflicts between the Centre and State Governments as well as
between two State Governments regarding the policy
โ€ข There might be a conflict of funds by various organizations. Since, currently
certain functions are conducted by parallel bodies for example, between Central
Pollution Control Board and UDI
โ€ข Attaining uniformity in terms of implementation
โ€ข Resistance from people regarding the penalties imposed on them
Mitigation
โ€ข UDI will have a strong constitution with concrete and detailed policies
โ€ข The policies would be framed with an effort to have minimum interference with
existing organizations and policies
โ€ข Amicable means would be used to settle disputes and spread more awareness
โ€ข A positive campaign of the penalties would be promoted to cause awareness of
the fact that the funds are being used for their own benefit
References
โ€ข India's urban awakening: Building inclusive cities, sustaining
economic growth- Report by Mckinsey Global Institute
โ€ข Corporate Social Responsibility: Towards a Sustainable
Future- A white paper by KPMG in India
โ€ข Corporate Social Responsibility in India - Putting Social-
Economic Development on a Fast Track, by Ramya Sathish
โ€ข Status of Corporate Social Responsibility: In Indian Context,
by Parul Khanna
Future Cities 8

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UDI5

  • 1. Urban Development Inc. A Central Corporate Body Chanelling Consumer Social Responsibility to create World Class Civic Amenities
  • 2. Major Urban Development Issues โ€ข 1 in every 4 people in urban India stays in slums 1 โ€ข Average duration of water supply in Indian cities is 3.3 hours per day 2 โ€ข 1 in every 2 people in Indian cities do not have access to improved sanitation 3 โ€ข Increase in migration to urban areas โ€ข Ineffective implementation of policies and funds towards urban development Future Cities 1 1. Census of India, 2011 2. SLB Program by MoUD 3. Baseline survey, 2012
  • 3. Vision Urban Development Inc. will be a single focused company to provide an effective platform for Ministry of Urban Development, Ministry of Water and Sanitation, Central Pollution Control Board and city-level municipalities to function efficiently towards urban development. Urban Development Inc. Mission Ensuring world class civic amenities in urban India by focusing on drinking water, sanitation, slums, pollution and planned development. Leadership Urban Development Inc. to be headed by Minister of Urban Development with primary roles being policy making, formulation of rules and regulations, governance of municipal corporations, allocation of funds Future Cities 2
  • 4. Implementation Urban Development Inc. Research and Administration Wing Implementation WingAccounts Wing Ministry of Urban Development Ministry of Water and Sanitation Central Pollution Control Board All City MunicipalitiesCompany Bill to direct CSR Fund to UDI Effective CSR Funds Utilization (2% of Companyโ€™s Profits) Future Cities 3 Vertical Flow of Money
  • 5. Why Current CSR investments fail? Non- Uniform and Ineffective CSR Models Not Requirement Oriented Misuse of Tax Benefit Corporation Net Value >= 500 crore Corporationโ€™s Legal Obligation to Create a CSR Committee CSR directs Company Resources to Social Welfare CSR: Corporate Social Responsibility Future Cities 4 CSR
  • 6. Funding 3 pronged way of funding 1. CSR from companies โ€“ Long Term strategic channeling of funds โ€“ Eliminates the need to assess, monitor and report initiatives and judge efficacy of current CSR initiatives and investments according to Company Bill โ€“ Money Pool Creation: INR 120 billion 2. Existing central government funding to MoUD, JnNURM and MWS 3. Municipal taxes collected by State governments Funding and Scalability Scalability โ€ข Subsequent funding sources to include increased penalties collected from defaulters โ€ข Policy proposal to reduce CSR investments to encourage companies to establish factories in rural areas. โ€ข Awareness Campaigns on Urban Issues initiated by UDI and sponsored by corporates. Future Cities 5
  • 7. Impact Assessment โ€ข Impact to be assessed on additional investments generated via channeling of CSR โ€ข Current CSR investments according to Company Bill norms by top 1000 corporations in India is INR 120 billion per year โ€ข According to a study by CII, India needs to invest USD 70 billion on water supply and sewage between 2011-20 โ€ข CSR investments over the next 10 years (taking into account an assumed total uniform increase of 200% CSR investment) will be USD 30 billion which amounts to, for example, 42% of required investments on water supply and sewage Future Cities 6
  • 8. Challenges and Mitigation Future Cities 7 Challenges โ€ข There might be conflicts between the Centre and State Governments as well as between two State Governments regarding the policy โ€ข There might be a conflict of funds by various organizations. Since, currently certain functions are conducted by parallel bodies for example, between Central Pollution Control Board and UDI โ€ข Attaining uniformity in terms of implementation โ€ข Resistance from people regarding the penalties imposed on them Mitigation โ€ข UDI will have a strong constitution with concrete and detailed policies โ€ข The policies would be framed with an effort to have minimum interference with existing organizations and policies โ€ข Amicable means would be used to settle disputes and spread more awareness โ€ข A positive campaign of the penalties would be promoted to cause awareness of the fact that the funds are being used for their own benefit
  • 9. References โ€ข India's urban awakening: Building inclusive cities, sustaining economic growth- Report by Mckinsey Global Institute โ€ข Corporate Social Responsibility: Towards a Sustainable Future- A white paper by KPMG in India โ€ข Corporate Social Responsibility in India - Putting Social- Economic Development on a Fast Track, by Ramya Sathish โ€ข Status of Corporate Social Responsibility: In Indian Context, by Parul Khanna Future Cities 8