Urbanization has emerged as a key policy and governance challenge in India in recent years. While urban development accelerates the process of economic growth, it can also make growth more inclusive too. Since faster economic growth and inclusive growth are likely to be the objectives of 12th Plan, urban development management can be a key vehicle for achieving this objective. For formulation of the Twelfth Five Year Plan (2012-2017), it was decided to constitute a Steering Committee on Urban Development Management under the Chairmanship of Shri Arun Maira, Member, Planning Commission. The Steering Committee has constituted a Working on Financing Urban Infrastructure, with the following Terms of Reference:
• To recommend the approach and strategy for augmenting non-budgetary resource mobilisation for financing India’s urbanization agenda.
• To suggest measures to attract private capital for financing urbanization
• To recommend necessary changes in policy and regulatory frameworks to strengthen the role of the market in delivery of urban services
• To suggest changes in policy and regulatory framework for monetisation of land to finance urbanization.
• To review regulatory framework and suggest policy measures relating to land use and real estate development in urban centres to ensure flow of private capital for providing urban infrastructure and affordable housing.
• To determine the financing requirement of guided urbanization in the 12th Plan.