This document discusses population growth trends worldwide and in India, with a focus on urbanization. Some key points: 1) The world population reached 7 billion in 2010 and is projected to reach 7.9-10.9 billion by 2050, with China and India each having over 1 billion people. 2) India's population reached 1 billion in 2000, 1.2 billion in 2011, and is projected to reach 1.8 billion by 2050, with 50% living in urban areas. 3) Urbanization is seen as both a driver and consequence of economic development. As urban areas generate wealth and tax revenue, their effective management is critical for India's continued growth. 4) By

1. Jit Kumar Gupta,
Chief Town Planner
Sahara Prime City Ltd,
Area Office , Chandigarh
Using Land as a
Resource for
Municipal Resource
Mobilization

2. Population Scenario-World
 World population recorded:World population recorded:
 1 Billion in 18041 Billion in 1804
 2 Billion in 1927 (123 yrs. Later)2 Billion in 1927 (123 yrs. Later)
 3 Billion in 1960 (33 yrs. Later)3 Billion in 1960 (33 yrs. Later)
 4 Billion in 1974 (14 yrs. Later)4 Billion in 1974 (14 yrs. Later)
 5 Billion in 1987 (13 yrs. Later)5 Billion in 1987 (13 yrs. Later)
 6 Billion in 1999 (12 yrs. Later)6 Billion in 1999 (12 yrs. Later)
 7 Billion in 2010 (11 yrs. Later)7 Billion in 2010 (11 yrs. Later)
 UNO population projection ranges from7.9-10.9UNO population projection ranges from7.9-10.9
billion for 2050.billion for 2050.
 China and Indian have population over 1 billionChina and Indian have population over 1 billion
 India to become most populated country by 2036.India to become most populated country by 2036.
 Tokyo largest Urban Agglomeration with 26.4Tokyo largest Urban Agglomeration with 26.4
million residents (2001).million residents (2001).
 19 Urban Agglomerations with + 10 million19 Urban Agglomerations with + 10 million
population in world out of which 3 are in Indiapopulation in world out of which 3 are in India
(Mumbai, Kolkata & Delhi).(Mumbai, Kolkata & Delhi).

3. Population Scenario- India-2011
 Population of India reached
 250 million in 1919
 500 million in 1966 (47 yrs. Later)
 1000 million in 2000 ( 34 yrs. Later)
 1027 million in 2001 (1yr Later)
 1210 million in 2011 (10 yrs. Later)
 By 2050 India to have population of 1800 million
with 50% living in Urban India.
 Urban India 285.39 million in 2001 (5161 towns)
 377 million in 2011- (7935 towns)
 Metropolitan Centres -5 (1951)- -53 (2011)
 10 m plus- nil (1951)- 3 (2011) -6 (2031)
 Greater Mumbai with 18.37 million is the most
populous city (2011).
 Increased population requires more housing, more
educational institutional/commercial space
 By 2031, India to add 700-900msqm of residential
/commercial space

4. Population Scenario- India-2011
Urban Pop. Distribution(2011)-377 m (31.1 %)- 7935
towns/cities
-Mega Cities with Pop > 10m -4% of total pop
- Cities with Population 5-10m- 3%
- Cities with Population 1-5m- 6%
- Cities with Population 0.1-1m- 9%
- Cities with Population < 0.1 m- 9%
** Rural Pop Distribution(2011) - 833 m ( 68.9%)
-6,40, 867 villages
---- Very large (>10k), large villages(>5k)-17%
-- Medium villages (2-5 k)—24%
--- Small villages (1-2000) — 17%
------Hamlets (5 00-1000) — 8%
---- Small Hamlets(<5 00)— 3%

5. Indian Urbanisation-I• Urban areas important because they are :
 Areas of future concentration of population,
 Providers of large employment/Central to economic growth
 Areas of large investment/generating majority of revenue
 Offering higher quality of life
 Providing major infrastructure & services.
 Hub around which entire economy gravitates.
 Promoters of higher order of productivity
• Makers of large contribution to the national wealth/GDP
 1950-51 - 29% (level of urbanization - 17.29%)
 1970-71- 37% (level of urbanization - 19.91%)
 1990-91- 50% (level of urbanization - 25.72%)
 2001-02- 60% (level of urbanization - 27.78%)
 2011- 12- 65% (level of urbanization - 31.1%)
 10 Largest cities house 8%pop , produce 15%GDP-0.1%land
 53 Metro cities house 13 %pop , produce 33%GDP-0.2%land
 100 Largest cities house 16%pop, produce 43%GDP-0.24%land

6. Indian Urbanisation-II• Urbanization perceived both as determinant and
consequence of economic development.
• There exists positive co-relationship between level of
development and urbanization .
• Urban growth and economic growth go hand in hand
• Economic well being of country hinges on productivity
of urban settlements.
• Building good cities critical to boosting rural economy
by improved urban consumption
• Urban centers need to be planned & developed to
 Attract investment
 Provide Employment.
 Ensure quality of life.
 Make them more Sustainable, Productive, Livable,
Humane and Eco friendly.
 Lack of serious policies to manage Urban India will
lead to jeopardizing growth besides risking
employment generation.

7. URBAN INDIA- 2030-Mckinsey Global Inst-
As per India Urban Awakening :Building Inclusive
Cities-Report- April, 2010 :
 590 m people to live in Urban India-twice the US population
 70% GDP generated by cities
 80% Revenue generated by cities
 4 fold increase in per capita income
 5 times the number by which GDP would multiply
 270 million people net increase in working age group
 70% of new jobs(170 mil) generated in cities
 91 M urban households will be middle class up from 22 M
 68 Cities will be Metrop0lises-Europe has 35 only
 $ 1.2 T capital needed for investment to meet projected demand
 700-900 million sqms of residential/ commercial area needed
annually- a new Chicago to be created
 2.5 billion sqms roads paved-20times created in last decade
 7400km (350-4ookm/year) of metro needed to be constructed-
20times created in last decade
 200 mil Rural Indians to benefit-living close to top 70 cities
 75%urban India to live in bottom segment earning Rs 80 perday

8. Urbanisation-issues
Despite distinct advantages , Urban centers
 Poorly managed and governed.
 Fail to meet the challenges of urban dynamism
 Haphazard /Unplanned pattern of development.
 Enormous growth of slums
 Poor quality of life
 Failure to meet basic needs of
1. Shelter
2. Services
3. Land ,Water/ Sanitation
• Population , Poverty , Pollution and traffic have emerged
as the greatest threat and challenge to Indian Cities.
• Indian Urbanisation is rightly called :
 Urbanisation of Population
 Urbanisation of Poverty
 Urbanisation of Pollution

9. STATE OF INFRASTRUCTURES-INDIA
Water Supply- 105 lpcd (Norm-150lpcd)- Gap(2007-45 lit)-94billion
lpd
Sewerage treatment-30% (Norm- 100%)- Gap(2007-70% )-109 billion
lpd
Solid Waste- 72% ( Norm 100%)- Gap(2007-28%)- 82mt/annum
Public Transport- 30% of total trips- (Norm 50%)-
 Gap(2007-@20% )- Private Transport-4,40,000lakh kms,
Railway based mass transport 6400 kms
Slum Population-24%-( norm 0%)-Housing Shortage -38mdu
Park & open Spaces-2.7 Sqm-( norm 9 sqm)
As per High Powered Committee Report on Urban Infrastructure
and Services- 2011
-Projected Investment for Urban Infrastructure for next 20 Years
(2012-13) to (2031-32)-Rs 39.2 Lakh Crores( excluding cost of land)
-O&M requirement for maintaining old & new assets- Rs 19.9 Lakh
Crores

10. Urban Local Bodies-74th
CAA 1992
Urban Local Bodies has history spanning more than 330 years.
First local body in Madras in 1688 followed by Mayor’s Courts
in Mumbai/Kolkata - 1720
 LSG’s strengthened in 1793 by Vesting of powers to levy
 taxes on lands for sanitation & giving more functions ,
 replacing majority of official with non-official members and
 enlarging functional domain by a diarchal system of governance
 empowering provincial governments to control them through a
minister.
Punjab Municipal Act was enacted in 1911- more than 100
years ago
Basic structure / functional domain remained stagnant-
diluted over the years

11. Urban Local Bodies-74th
CAA 1992
GRANTED CONSTITUTIONAL STATUS TO
ULBs-institutions of SELF-GOVERNANCE
- Changed FEDERAL STRUCTURE TO
THREE DISTINCT GOVTS
-PROVIDED CONTINUITY- Fixed Tenure,
Reservations for WOMEN/SC/ST
- ULBs divided into Three Tier Structure, Constitution of
Ward Committees
Defined Functions, Authority, Power,
 Constitution of DPCs at District level,
 Constitution of MPCs at Metropolitan level,
 Constitution of State ELECTION Commission, ,
 Constitution of State FINANCE Commission,

15. Municipal Functions under 74th
C A Act
CAA, 1992 envisioned 18 functions( Twelfth Schedule)to vested with municipalities
 Urban planning including town planning
 Regulation of land use and construction of buildings.
 Planning for economic and social development.
 Roads and bridges
 Water supply for domestic/ industrial / commercial
 Public health, sanitation conservancy/ SWM ,Fire services
 Urban forestry, protection of the environment and promotion of ecological aspects.
 Safeguarding the interests of weaker sections of society, handicapped and mentally
retarded
 Slum improvement and upgradation
 Urban poverty alleviation
 Provision of urban amenities and facilities such as parks, gardens and playgrounds
 Promotion of cultural, educational and aesthetic aspects.
 Burials and burial grounds, cremations, cremation grounds and electric crematoriums.
 Cattle ponds and preventions of cruelty to animals
 Vital statistics including registration of births and deaths
 Public amenities including street lighting, parking lots, bus-stops and public convenience
 Regulation of slaughterhouses and tanneries.

16. FINANCIAL STATUS OF URBAN LOCAL BODIES
*ULBs in India are weakest in terms of
-Capital to raise resources
-Financial Autonomy
* ULBs Tax Base----Narrow, Inflexible, Lacks Buoyancy
*Not able to levy User Charges for services delivered
*Unable to recover O&M charges and Depreciation of services
*Decline of own revenue from total revenue declined from 63%(2002-3) to 53%(2007-8)
*Few ULBs unable to pay even salaries- paid by state- reducing them to Govt dept
*Lack of willingness to provide buoyant alternative to Octroi-major cause of poverty
*Poor accessibility to external finance
*Low level of creation and poor maintenance of urban services
*Mismatch between responsibilities assigned under 74 th CAA and funds available
*Poor delegation of tax revenue
*Urgent need to strengthen ULBs
with their own resources of revenue
-Formula based transfers from State government
assured transfers from State / Central Governments
providing access to new forms of finances through PPP
-raising funds from markets/ debts

17. LAND BASED FINANCIAL FRESOURCES
• Property Tax-Patna 1992 ABS,Bangalore(440-780 crores-2007-08-09,
• Betterment Charges-Land values improved by public infra-
applicable in southern states, charged with building permits/layout plans
• Town Planning Schemes-Gujrat Maharashtra
• Pricing (Tradable) Floor Area Ratio-
Ahmedabad( upto 0.45 in defined areas with cost Rs 1000-2000psm
depending on location), Mumbai-2008( 1-1.33)with cost Rs 4900psm
in Manori to Rs 23,000 psm in Bandra
• Development Charges- Haryana, Punjab& other states
• Land Use Conversion Charges-Punjab, Haryana,
• Impact Fee-impact of buildings on public infra, calculated on
incremental cost of infra provision/services,Hydrabad multi storeyed
buildings
• Vacant Land Tax-Tamil Nadu 0.7-2% market value, Andhra,
reduced from 2-0.5% yield lot of revenue, PUDA @3%
• Optimum Utilization of Vacant Govt. Lands-
Punjab Govt,

18. LAND BASED FINANCIAL RESOURCES
• Transfer of Development Rights(TDR)-master
plan roads,Mumbai in lieu of land required for public roads
• Accommodation Reservation(AR)- Public
amenities,-Mumbai -dispensaries, police post, community
centres, convenient shopping
• Parking Charges-Chandigarh, Delhi,
• Advertisement Rights - Bus que shelters, garbage dumps,
toilets, advertisement spaces, transport nodes, along transportation
network, Electric poles, local buses, landscaping /beautifying traffic
rotaries, Planting trees,
• Hyderabad M Corp netted 230% during 1998-2000
• Air Space Development Rights-New Mumbai
Railway stations ,Mobile Towers
• Infrastructure TDR- STP,SWM Plants water works-
Mumbai

19. LAND BASED FINANCIAL RESOURCES
• User Charges- Gulbera –Karnatka 24x7 water
supply
• water, sewerage, swm, Recovery 50% of O&M,, 8cities
under Jnnurm- mumbai, pune, nasik, bangalore,chennai
recovered 100%O&M charges for WS,SEW, 6cities made full
cost recovery of SWM
• Licensing Private Colonies-Haryana,UP,Punjab
• -Change of Land use Charges –License fee- Development
charges-Departmental charges- Scrutiny fee, License
Renewal Charges –Building Scrutiny fee, Compounding
Charges
• PROMOTING PLANNED DEVELOPMENT-
BEST OPTION TO RAISE REVENUE FROM
LAND-Aero city Mohali, Chandigarh, Panchkula, KMP bye-
pass,

20. LAND BASED FINANCIAL RESOURCES
• Property Tax-- Most important tax
• Rates Fixed by State Government , levied /collected at local level
• Property tax revenue stands at0.16-0.24% of GDP
• Developing nation-0.6%, Developed nations-3-4% of GDP
• PROBLEMS
• Poor Assessment Rate(56%),Weak Collection
efficiency(37%),Flawed methods of valuation, Loss on account of
exemptions(11.7%), Poor Enforcement
• OPTIONS
• Implement GIS to map all properties,
• Updating Register of assesses,
• Periodic Revaluation of properties,
• Adopting Area Based method of Valuation,
• Adopting simple &transparent method of valuation,
• Provide self assessment,
• Provide on line payment facility,
• Tax to cover all properties,
• ULBs to have freedom to fix tax rates
• closer co-ordination between Revenue and TCP Deptt,
• Setting up Property Tax Board

21. CONCLUSIONS• Inserting Local Bodies Finance List on the lines of
Union and State lists in the Constitution
• Create a list of “Exclusive Taxes’ for ULBs, giving
freedom to determine rates, levy and collect taxes-
Property, Profession Entertainment, Advertisement
taxes
• Constitutionally ensuring a pre-defined percentage of
state revenue from taxes raised from all goods and
services-Revenue Shared Tax
• Revenue sharing on the basis of formula designed by
State Finance Commissions
• Strengthening SFC to improve their capacity &giving
credibility to their recommendation son the pattern of
Central Finance Commission
• Capacity building and improving credibility of ULBs in
urban governance , delivery of services and their credit
worthiness for accessing market funds
• Leveraging Private Sector resources through PPP model
• Raising Funds from the market
• Promoting Planned Development of cities

22. CONCLUSIONS
Urgent need for promoting strong partnership
between City, State and National Governments
to:
 promote rapid economic growth
placing cities at the centre of development
 for building a modern Urban India which is:
- Economically productive
- - Operationally Efficient
- - Socially just
- - Environmentally sustainable and
- -Physically well planned
- Provider of assured quality of life ,even to the
poorest of the poor, to lead a dignified life.

23. THANKS
FOR YOUR
PATIENCE
AND TIME