Parliamentary Committee Recommends Urban Development Guidelines

A Parliamentary Standing Committee advised the Union Ministry of Housing and Urban Affairs to engage stakeholders and develop guidelines for urban development schemes before their announcement in the Budget. This recommendation aims to prevent the allocation of funds for schemes that may not receive timely approvals, leading to unspent budgets.

Background of Recommendations

The committee’s recommendations stem from the analysis of two major schemes announced in the 2025 Budget – the Urban Challenge Fund and the Scheme for Industrial Housing. The Urban Challenge Fund has an allocation of ₹10,000 crore, while the Scheme for Industrial Housing has been allocated ₹2,500 crore. Both schemes are intended to enhance urban infrastructure and address housing needs for workers.

Issues with Previous Schemes

The committee brought into light issues with earlier schemes, such as the PM-eBus Sewa Scheme and the National Urban Digital Mission (NUDM). Although the funds for the PM-eBus Sewa Scheme were finally utilised in the financial year 2024-25, the NUDM has not yet received Cabinet approval, resulting in unutilised funds. This situation puts stress on the need for better planning and consultation.

Objectives of the Urban Challenge Fund

The Urban Challenge Fund aims to implement initiatives categorised under ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’, and ‘Water and Sanitation’. The fund is designed to transform urban areas into more sustainable and efficient living spaces. The Ministry is currently determining the eligibility criteria for cities wishing to apply for this funding.

Details of the Scheme for Industrial Housing

The Scheme for Industrial Housing is focused on providing rental housing solutions for workers through public-private partnerships. The Ministry has indicated that detailed guidelines and eligibility criteria will be developed in consultation with relevant stakeholders. This approach aims to ensure that the allocated ₹2,500 crore is effectively utilised.

Call for Timely Implementation

The committee urged the Ministry to expedite the design and approval processes for both the Urban Challenge Fund and the Scheme for Industrial Housing. By doing so, the Ministry can ensure that the allocated funds are used within the financial year 2025-26. This proactive approach is crucial for addressing urban development challenges and optimising resource allocation.

Recommendations for Future Schemes

The committee’s report emphasises the importance of stakeholder consultations in the planning stages of urban schemes. By preparing detailed guidelines and eligibility criteria beforehand, the Ministry can facilitate smoother implementation and prevent delays in fund utilisation.

Questions for UPSC:

1. Critically analyse the impact of urban development schemes on the socio-economic landscape of India.
2. What are the challenges faced by public-private partnerships in housing schemes? Explain with suitable examples.
3. What is the significance of stakeholder consultation in policy formulation? Discuss its relevance in urban planning.
4. Explain the role of the Parliamentary Standing Committee in shaping government policies. How does it influence urban development initiatives?

Answer Hints:

1. Critically analyse the impact of urban development schemes on the socio-economic landscape of India.

1. Urban development schemes aim to improve infrastructure, leading to better living standards.
2. They can stimulate economic growth by attracting investments and creating jobs.
3. Improved housing and sanitation enhance public health and social equity.
4. However, poorly planned schemes can lead to displacement and increased inequality.
5. Long-term sustainability of urban areas is crucial for their success and requires continuous evaluation.

2. What are the challenges faced by public-private partnerships in housing schemes? Explain with suitable examples.

1. Challenges include differing priorities between public and private entities, leading to conflicts.
2. Financing and funding issues can create delays in project implementation.
3. Regulatory hurdles often complicate the approval process for housing projects.
4. Examples include the PMAY scheme facing delays due to bureaucratic inefficiencies.
5. Public perception and trust can also affect the success of these partnerships.

3. What is the significance of stakeholder consultation in policy formulation? Discuss its relevance in urban planning.

1. Stakeholder consultation ensures diverse perspectives are considered in policy-making.
2. It encourages transparency and builds public trust in government initiatives.
3. In urban planning, it helps identify community needs and challenges effectively.
4. Consultation can lead to more innovative and practical solutions for urban issues.
5. Engaging stakeholders can also facilitate smoother implementation and compliance with policies.

4. Explain the role of the Parliamentary Standing Committee in shaping government policies. How does it influence urban development initiatives?

1. The Standing Committee reviews government proposals and provides recommendations for improvement.
2. It holds hearings and consultations to gather insights from experts and stakeholders.
3. By denoting issues, it can push the government to prioritize certain initiatives.
4. The committee’s reports often influence budget allocations and policy adjustments.
5. In urban development, it ensures accountability and adherence to planned objectives.