Sources of Urban finance

Brief Introduction

§  India’s urban population has grown by 32% from 2001 to 2011 as compared to 18% growth in total population of the country.

§  With increasing urban population, the need for providing better infrastructure and services in cities is increasing. The government has introduced several schemes to address different urban issues.

§  However there is a issue of finance related to it. For example, under the Smart Cities Mission, the total cost of projects proposed by the 60 smart cities (winners from the earlier rounds) is Rs 1.3 lakh crore. About 42% of this amount will come from central and state funding towards the Mission, and the rest will be raised by the cities.