The Government of India has identified urbanization as a key priority area to meet growth targets for the Twelfth Five Year Plan. It points out that over 300 million will be added to India’s urban population in the next 20-25 years and identifies the need to provide low-income housing as a key ingredient of a five point multi-pronged approach needed to manage this transition. Tamil Nadu is at the forefront of the urbanization trend witnessed, yet a number of challenges relating to urban housing need to be tackled. 48.45 percent of Tamil Nadu’s population lives in urban areas vis-à-vis the national average of 31 percent. The average density of population in 2011 in the State was 554 persons per sq. km and in urban areas; it was 3521 persons per sq. km. Urban population growth in the state (at 27 percent during 2001-11) outpaced rural population growth (6 percent during the same period) and the overall urban population in Tamil Nadu could exceed the rural population in the next few years.
Tamil Nadu ranks first on the share of urban population among large States in the country and third in absolute urban population. As per provisional estimates of the 2011 census, Tamil Nadu, with a provisional urban population of 34.9 million, has 48.45 percent of its population living in urban areas.
Managing urbanization has been recognized as a critical requirement to achieve positive development outcomes at the national level.
The Government of India has identified urbanization as a key priority area to meet growth targets for the Twelfth Five Year Plan. It points out that over 300 million will be added to India’s urban population in the next 20-25 years and emphasizes the need for a multi-pronged approach covering inclusive cities, Urban Governance, funding, planning, capacity building, and low-income Housing to manage this transition.
In the Report of the High Powered Committee on Urban Infrastructure set up by the Ministry of Urban Development, (MoUD), the Government of India observes that cities and towns will be the Engines of National Development over the next couple of decades and that cities will play a key role aiding higher rates of economic growth. Tamil Nadu, which is at the forefront of the urbanization trend, requires closer policy attention to drive positive developmental outcomes.
Tamil Nadu ranks first on the share of urban population among large States in the country and third on the absolute urban population. As per provisional estimates of the 2011 Census, Tamil Nadu has an urban population of 34.9 million, with 48.45 percent of its population living in urban areas vis-à- vis the national average of 31 percent. Tamil Nadu is one of the fastest growing States in recent years. Urban population growth in the State (at 27 percent during 2001-11) outpaced rural population growth (6 percent during the same period) and with this trend, overall urban population in Tamil Nadu could exceed the rural population within the next few years.
To upgrade the quality of life in Indian cities, and promote inclusive growth, a major thrust is necessary to address the need for the sustainable development of physical infrastructure in cities, including the development of technical and management capacity for promoting holistic growth with improved governance. Accordingly, JNNURM, a seven-year programme was launched in December 2005. JNNURM provides for the allocation of substantial central financial assistance to cities for infrastructure, housing development, and capacity development.
Tamil Nadu is considered as a pioneer in four reform areas: (i) statewide accounting reforms, (ii) mobilization of external and commercial finance for infrastructure development through financial intermediary, (iii) devolution of funds based on SFC recommendations, and (iv) professionalization of municipal cadre. There are urban reforms still to be completed or are underperforming in Tamil Nadu, and smaller ULBs have gotten left behind in past reform programs. Key areas requiring improvement include: (i) strengthening of water supply and sewage at the ULB levels where many ULBs rely on parastatal agencies for delivering municipal services, (ii) financial management, (iii) revenue mobilization, and (iv) filling municipal vacancies. To achieve a more balanced development of ULBs across the state, the GOTN proposed a governance improvement incentive system through the program, applicable to all 135 urban local bodies in Tamil Nadu. The proposed Governance Improvement Component (GIC) of the program will support the GOTN in providing performance-based grants to achieve priority governance reforms of the State.
The reforms requirements are categorized as follows: (i) constitutional framework for ULBs, (ii) state actions to strengthen ULBs, (iii) legal and institutional actions at state level, (iv) e-Governance at ULB level, (v) financial management at ULB level and (vi) process simplification, by-laws and other continuous improvements at ULB level.
The state and the ULBs achieved all other reform milestones scheduled for the year in the areas of (i) e-Governance; (ii) professionalization of municipal cadre; (iii) augmenting double entry accounting; (iv) urban planning and city level plans; (v) devolution of funds and functions; (vi) review of building by-laws; (vii) municipal taxes, fees and user charges improvement; and (viii) energy and water audit.
While Tamil Nadu scored high in reform implementation under both JNNURM and AMRUT, there are reforms not completed including (i) urban planning not in the domain of ULBs, (ii) parastatals still manage water supply and sewage in many ULBs, and (iii) low revenue generation including property tax collection.
