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Urbansectorreforms-India NAERUSpaper RJ2003
Urbansectorreforms-India NAERUSpaper RJ2003
Urbansectorreforms-India NAERUSpaper RJ2003
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1. Background .......................................................................................................... 2
2. Development assistance in India ....................................................................... 2
State wise and sector wise flow of development assistance................................................ 3
3. Urban reform process in India............................................................................ 4
Neo-liberal agenda and the prevailing reformism................................................................. 4
Project financing viz. Policy-oriented lending ....................................................................... 5
The World Bank and Urban Development in India ............................................................... 5
4. Urban sector projects in Tamil Nadu................................................................. 6
Madras Urban Development Projects (1 and 2) ................................................................... 6
Tamil Nadu Urban Development Project 1 ........................................................................... 7
The Tamil Nadu Urban Development Project - 2 (TNUDP 2) .............................................. 7
Components of TNUDP 2 ..................................................................................................... 8
Tamil Nadu Urban Development Fund (TNUDF)- A Balance Sheet .................................... 9
Urban Infrastructure gaps in Tamil Nadu ............................................................................ 10
Urban Poverty in Tamil Nadu .............................................................................................. 10
Building Institutions for the Markets – Central Theme of TNUDP-2................................... 11
Issues of governance and its contradictions with market ................................................... 11
5. Externally aided urban projects – Shift of Approach .................................... 12
From physical intervention to financial intermediation to STRATEGIC (policy oriented)
intermediation ...................................................................................................................... 12
What is ‘Strategic’ about Strategic intermediation?............................................................ 13
6. Re-applicability of TNUDP Model – Policy Influences................................... 14
7. Summation .......................................................................................................... 15
Tables and Annex.................................................................................................................. 16
References............................................................................................................................. 18
Abstract
This papers aims at critically understanding the process of urban reforms in India in the context of
external development assistance and changing paradigm of urban development in the externally
financed projects. With a brief overview on the distribution of development assistance, it is
observed that there exists acute regional disparity and sectoral mismatch in the allocation of
development assistance. Reforms are the central agenda and pre-condition to development
assistance and rhetorics of ‘enabling environment’ is used to push the reforms. The paper however,
focuses only on the urban sector and on the urban development projects of the World Bank Group.
The case of Tamil Nadu Urban Development Project (TNUDP 1 & 2), which have been front-
runner in the urban sector reforms illustrate the changing role of government with the emergence
of market based approaches and performance based lending. Over the years, one observes a clear
shift towards the neo-liberal paradigm of development, which is integrated, with the project design
of the on-going TNUDP. This project has influenced the policies at the national and the state level
to an extent of re-application of the same urban development model of financial intermediary for
infrastructure finance. The evolution of the project design of TNUDP 2 and analysis of the project
confirms the view that the project needs to be looked at critically and has to be contextualised well
to the new settings before it is replicated in the other parts of the country.
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1. BACKGROUND
Rapid urbanization and its impacts are emerging as challenges for the sustenance of quality
of life in the Indian cities. The processes of urbanization are marked by the deterioration in
the physical environment and quality of life in the urban areas, which is caused by widening
gap between demand and supply of essential services and infrastructure. The problems of
urban India are very complex, diverse and huge in their magnitude and impacts. India’s
urban sector is also described as demographically large, economically important and socially
deficient (Mathur, 1999).
On the other hand, International Financial Institutions (IFIs) like the World Bank Group and
the Asian Development Bank with their concerned organizations have ‘global agenda’ for
sustenance of the urban situations of the developing countries like India. Continuing
exposure to diverse urban situations and experiences of working in different contexts along
with the financial support from the industrialized countries enables them to carry out the
‘reforms’, which are according to them, pre-requisites for achieving the goals of sustainable
development. The National and state governments, in turn, recognize and welcome such
efforts and approve various policies by borrowing capital for the development of their cities.
1
The definition of term ‘development assistance’ is borrowed from Leisinger, Klaus M. (2001): Development assistance at
the threshold of 21st Century
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grants coming from external sources amount to approximately 5-10% to the total
development assistance2. Debt servicing and long-term loan repayments have also become
increasingly crucial, as they demand a share from the resources allocated for the
development works.
Development Assistance involves ‘capital’ and thus, brings certain paraphernalia with it.
These paraphernalia are time and again defined as ‘pre-conditions’, ‘agendas’ or simply ‘the
arm-twisting methods’. The trend of development assistance has revealed an important turn
and that is policy-oriented assistance. There exists a view that economically powerful
countries channelise financial resources in the other countries to create a policy
environment, which helps the ‘bilateral/ multilateral relationships’, and thus it helps trade and
these countries emerge as new markets. The industrialized countries are often accused of
providing assistance in order to conquer the natural resources of the developing countries
and to manipulate the trade according to their advantages.
As we discussed earlier, majority of development assistance that India gets is in form of
loans and they have to be returned. Thus, international financial institutions are selective and
cautious about where they operate. They look for an enabling environment of reform-minded
government and a safe ground for investment. This very approach to development
intervention raises larger questions for the effectiveness of development assistance in a
country where there are vast disparities.
State wise and sector wise flow of development assistance
The trends of development assistance in India reveal its imbalanced regional distribution
(see Table-1). Developing and non-industrialized states like Orissa, Bihar and the North-
Eastern States get negligible development assistance. On the other hand, industrialized
states like Maharashtra, Gujarat, Tamil Nadu and Karnataka acquire a major share of
development assistance coming to India. One observes similar trend in the urban sector also
that the interventions in urban development are widely accepted and preferred by rapidly
growing states like Tamil Nadu, Gujarat and Maharashtra (NIUA, 1998). Thus, the acute
regional inequality of India remains very much unanswered.
The imbalanced distribution of development assistance reflects various tangible and
intangible issues both for the national government and for the development agencies. Does
it say that development assistance is strengthening the stronger and depriving the weaker
ones? Industrialized states may have ‘enabling environment’ and reform-minded government
but might not have acute need of development assistance. In such a situation, is it not the
role of the national government to create an appropriate environment for the intervention in
the needy and so far neglected regions too? As it is reflected in the rhetorics of many of the
development agencies, equitable distribution creates equal opportunities and reduces
vulnerability. This trend is a question mark on these rhetorics of equity.
Sector wise disbursement of loans and grants reflects that the total share of energy and
infrastructure sector has remained quite substantial in sectoral development assistance in
the 1990s (see table 2). The thrust on the energy sector is slowly declining since early 90s
and areas like social sector, environment & forestry are getting more attention and funds
over the years. The urban sector emerges as one of the most neglected sectors, where the
assistance has remained a meagre 4-6% to the total (see table 2).
2 Annual report 2000-2001 of Controller of Aid accounts & Audit, Dept. of Economic affairs, Ministry of Finance, Govt. of India.
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External assistance has supported urban programs in various ways. Such assistance has
covered a wide range of areas from sectoral approach to build up institutional capacities,
from direct poverty alleviation initiatives to developing debt-servicing instruments. More than
75% of the external funding in the urban sector has been in the infrastructure, water supply
& sanitation sectors (NIUA, 1998). Thus, urban infrastructure is an urban sub-sector
attracting substantial amount of external funding. Concurrently, one observes nearly two-
third of the development assistance for urban sector projects is flowing to the states in the
south zone (Rs. 6678 crores - 1400 million US$). On the other hand, the states in the east
zone have the lowest share in the total assistance (3.4 %) for urban sector (NIUA, 1998).
External development assistance must be seen in the light of the emerging global socio-
political situation, the changing role of the welfare state, and the erosion of social
accountability and transparency in political institutions and governments. We need a much
more informed debate on sources of funding, institutional procedures, priorities and practices
of donor agencies, strengths and limitations of funding and institutional transparency.
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even be preceded by, capacity building, market regulation and more effective law
enforcement (Williamson, 2001). The very belief that market mechanisms will take care of
issues of human development and poverty reduction is being reflected in the recent
externally financed urban sector projects.
Project financing viz. Policy-oriented lending
One of the major changes in the multilateral financial institutions in the recent past is that of
the change from ‘project financing’ to ‘policy-oriented lending’ in the urban sector. A review
of on-going externally aided urban sector projects show that majority of these are in the form
of policy oriented financing, which not only have structural impacts but are also designed to
bring about changes in urban sector institutions and urban sector policies and programs.
Such projects are designed to provide financial assistance to undertake development
projects for targeted groups in specific cities. Some examples of policy oriented lending by
multilateral and bilateral agencies are the Tamil Nadu Urban Development Project (TNUDP)
funded by the World Bank and Financial Institutional Reforms and Expansion (FIRE-D)
program funded by USAID (NIUA, 1998).
The World Bank and Urban Development in India
In the spectrum of all the multilateral and bilateral agencies, the contribution of the World
Bank group is phenomenally high though it fluctuates from 30% to 76% (see Table 3). The
World Bank emerges as an institution, which is involved in providing substantial amount of
development assistance and leading the reform process in various sectors in India.
However, the lending for urban sector consists only about 7% of the Bank’s total lending to
India (World Bank, 1996).
The World Bank claims that it is an institution whose objective is the promotion of
sustainable economic development worldwide and poverty reduction (Stern, 2002). It
pursues these objectives through lending, through the ‘production’ of research and economic
analysis and through the provision of policy advice and technical assistance. Ever since,
James Wolfensohn has taken over as the president of the World Bank Group in 1996, the
rhetoric and philosophy of the Bank is disseminating the ideas of poverty reduction and that
of belief in ‘institutions’ (Gilbert & Vines, 2000). This is largely reflected in the recent project
design as it is now realized that this is one way to sustain the intervention for a long time.
This also reflects the faith of the Bank in institutions that are committed to the market. The
governing system may or may not be part of it. These institutions become ultimate ‘vehicles’
that can bring about change and more importantly ‘reforms’ in the existing system with or
without the help of the government.
The World Bank began its urban sector operations in India with the launching in 1973 of the
Calcutta Urban Development Project. Since then, the Bank has approved 30 urban sector
projects comprising 12 urban development projects, 14 urban water supply, sewerage and
sanitation projects, 2 urban transport projects, a special project designed to assist the
earthquake–affected areas in Maharastra, and a loan to Housing Development Finance
Corporation (HDFC). The total financial commitment of the World Bank towards these
projects is placed at Rs. 15100 crores (315 million US$) of this amount, the share of urban
development projects is 36 percent, while that of the urban water supply, sewerage and
sanitation projects is 45.9 percent. (Mathur, 1999). However, the nature, content and design
of these projects have been changing with changes within the Bank and its policies.
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Bank’s share was US$ 24 Million 3. The Second project MUDP 2 (1979-86) envisaged an
investment of Rs. 77.99 crores with the assistance amounting to US$ 42 Million.
Tamil Nadu Urban Development Project 1
One of the major problems the state governments have been attempting to address is the
municipalities’ financial and organizational capacity for maintenance and municipal service
obligation. Convinced of the merits of strengthening the municipalities, the government of
Tamil Nadu had set-up a new source of municipal funding called Municipal Urban
Development Fund (MUDF) under the externally aided Tamil Nadu Urban Development
Project to finance equipment and civil works for the maintenance and delivery of services,
and remunerative enterprises such as bus terminals and markets primarily in 80
municipalities in the 10 largest urban agglomerations.
The World Bank argued in the early 1990s that the urban sector needs wide–spectrum
intellectual support on issues such as market–based pricing system for non–tradable
municipal infrastructure, regulatory mechanisms for private sector participation, state–
municipal fiscal relations, and municipal accounting systems (World Bank, 1996). Similarly, it
is also argued by the Bank that building strong managerial capacity in cities appears central
to the success of urban sector projects. However, these constitute a small sample of areas,
where urgent reforms are demanded by the World Bank (Mathur, 1999).
The Tamil Nadu Urban Development Project - 2 (TNUDP 2)
The Tamil Nadu Urban Development Project (TNUDP II), a post runner of an earlier project,
approved in May 1999, signalled an important shift from the government–led integrated
urban development operations to a market–oriented financing intermediary operation. Its key
features are:
§ Involving a credit of Rs. 500 crores, the TNUDP II was aimed at improving urban
infrastructure services in Tamil Nadu in a sustained manner.
§ Strengthening the managerial, financial and technical capacities of urban local bodies
(ULBs) through an institutional development programme, in line with the urban sector
reforms, which the Government of Tamil Nadu was implementing as a follow–up of the
74th Constitutional amendment
§ Facilitating private sector participation in urban infrastructure financing and operation,
through co–financing, joint ventures, and public–private partnerships
§ Operating an instrument of the Grant Fund to assist in the problems of the urban poor.
On the Bank’s side, approval to the second Tamil Nadu Urban Development Project
(TNUDP – II), with a loan of Rs. 500 crores was an important development. However, this
project is designed to aim at securing sustainable funding sources, beyond the Bank’s line of
credit operations. OP Mathur argues 4 that “Although the urban development project (Tamil
Nadu) displays considerable understanding of the contemporary market conditions in India
and underscores the relevance of financial intermediation in municipal infrastructure
financing, it is far from adequate for meeting the complex and diverse needs of the urban
sector…” Thus, there are various points of views that provide important criticism of these
projects and regarding the Bank’s involvement in urban sector.
3
Between 1977-82, the exchange rate was about 18 Rs to 23Rs=1US$
4
Mathur, Om Prakash (1999): India; Evaluating Bank Assistance for Urban Development, A country assistance evaluation,
Operation Evaluation Department, the World Bank Group.
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Components of TNUDP 2
TNUDP 2 has two main components (see Table 4) and a subsidiary component5. The project
comprises of the Institutional Development Component (Technical Assistance and Training)
and the Urban Investment Component (Line of Credit). The Share of the World Bank in the
Project is 51% to the total project cost and the rest of the cost is to be covered by TNUDF 6
by issuing the bonds in the capital market and by involving the financial institutions like ICICI,
IL & FS, HDFC as the stakeholders in the asset management company.
The Program Monitoring Unit (PMU) set up by the GoTN (Government of Tamil Nadu) takes
care of the institution development component where as the urban investment component
involves TNUDF and the asset management company (TNUIFSL), which is managing it.
The project is designed in such a way that both the components compliment each other. The
institutional development component provides technical assistance to the Urban Local
Bodies for resource mobilization from the capital market and technical assistance for project
preparations and implementations. It also involves itself in capacity building and education of
urban local bodies. Along with that it disseminates information about TNUDF and prepare
ULBs to initiate projects. The urban investment component facilitates the ULBs to put into
5 There is a third component called Integrated Sanitation Program (ISP) that is being continued since TNUDP 1. But in
terms of its financial share or programmatic impacts it is not very substantial and hence not discussed here.
6 Tamil Nadu Urban Development Fund (TNUDF) is being managed by a non-governmental asset management company-
TNUIFSL (Tamil Nadu Urban Infrastructure Finance & Services Ltd.)
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practice the ‘innovative practices’ and reforms that are advised to them as part of the training
programs of the institutional development component.
The urban infrastructure component is solely taken care of by the financial intermediary-
TNUDF and its asset management company- TNUIFSL.TNUDF plays a larger role beyond
being a financial institution. According the mid-term project review report of 2001, “TNUDF
has performed the role of both a financial intermediary and a strategic advisor”. It also claims
that TNUDF as an institution has developed a market for municipal infrastructure in the state.
Putting down the functions of the components simply, one component identifies the projects
and creates the ‘ground’ work for implementation, the other component checks the financial
feasibility, provides technical and environmental framework and of course, finances the
project. It is noteworthy that the share of the institutional development component in the
project cost is 10% (World Bank, 1999). By putting in comparatively less amount of finances
in the project, the project component is designed to influence the stakeholders in a desirable
manner with the help of ‘networking’ and institutional collaborations.
7
The exchange rate of 48 Rs=1 US$ is assumed to be standard for all conversions (except the mention of the older projects).
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TNUDF is a front-runner in the emerging market of infrastructure finance and it will have
enough experiences by the time other players will get into it actively. There is also possibility
of starting a pool finance fund within TNUDF with the participation of ULBs and with the
support of GoTN.
Urban Infrastructure gaps in Tamil Nadu
One of the most significant challenges for the otherwise efficient urban administration of
Tamil Nadu was to provide adequate infrastructure to the rapidly urbanizing newer areas
while making the existing areas more efficient in terms of basic infrastructure services. Thus,
the major challenges in the urban sector were to reduce the huge backlog of infrastructure
investment, at the same time, to improve basic urban service delivery in terms of both
quantity and quality. Some of the statistics from TNUDF (Tamil Nadu Urban Development
Fund) are given below that give indications about the infrastructure gaps in Tamil Nadu.
§ Water supplies varied from 34 liter per capita per day (lpcd) in town panchayats to 74
lpcd in corporations, being significantly below the norm of 90 Ipcd in Tamil Nadu
§ Only 57% of the populations in corporations, 32% in municipalities and 16% in town
panchayats had access to safe sanitation
§ Less than 50% of the roads were equipped with storm water drainage
It is estimated in the Tamil Nadu State Finance Commission Report that during the period
1996 – 2001, Rs. 4,810 Crores (US$ 1.1billion) would be further required to undertake the
necessary investment in the core urban infrastructure facilities (water supply, sewerage and
sanitation, solid waste management, roads, storm water drains, street lighting).
Urban Poverty in Tamil Nadu
There are about 2021 slums in all the 102 Municipalities housing a total population of about
20.54 lakhs (see Table-5). This works out about 25 percent of the total population of
Municipalities. Of this around 12 lakhs of population are residing in notified slums. As per the
survey conducted in 1998, a total of 5.52 lakh households in Municipalities were living below
poverty line (see Table-6). This works out to a population of about 29.81 lakhs to be below
poverty line and accounts for about 36 % of total population of Municipalities. The small and
medium towns where per capita income of the municipality is highest in the state, have
about 35% people below poverty line (BPL) and more than 25% people residing in slum
areas (Table 5 & 6).
The problems of urban poverty as existing in the municipalities of Tamil Nadu are huge and
need to be answered by the urban administration. Traditionally, the urban administration of
Tamil Nadu is considered efficient and dynamic. Besides, the state is front-runner in the
implementation of 74th CAA. The World Bank is involved in the urban sector of Tamil Nadu
since 25 years. Tamil Nadu Urban Development Project (1 & 2) has involved the
investments of more than 300 million US$. Despite such large investments, and continuing
rhetoric of poverty reduction from the Bank, none of the components of these projects have
tried to address the issue of urban poverty in Tamil Nadu. MUDP (1 & 2) incorporated some
of the slum improvement and housing rights components, which are non-existing in their
following projects. This fact however, confirms the view that the externally assisted projects
have shifted their positions more and more towards neo-liberal thinking that believes that the
8
The mid-term project review report of 2001 also voices this concern.
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financial and institutional reforms will subsequently create opportunities for addressing the
issues of poverty alleviation.
Despite all these efforts the prevailing poverty in the cities not only shows immense disparity
within the cities of Tamil Nadu but also is ever-existing critique of developmental efforts by
the municipal administration and external agencies. However, one believes that poverty is a
larger issue with bearings on political economy; it is the responsibility of the existing
administrative and political system to reduce disparity amongst the urban dwellers.
Building Institutions for the Markets – Central Theme of TNUDP-2
The World Development Report of 2002 carries the main theme as ‘Building Institution for
Market’ 9. This report describes at length about how the World Bank is instrumental in various
developing countries, in building institutions for the market.
The project design of TNUDP 2 reflects a market-based approach in urban infrastructure
financing. The World Bank has been trying to create an institution, which not only sustains
itself but also acts as a nodal agency in the region with expertise on urban finance
collaborating with other institutions with similar approach to development. These institutions
practice and promote market-based approaches and performance based lending initiating
the ‘right’ kind of policy changes and reform practices.
There however, exist certain contradictions with this concept. Should the institutions be built
‘for’ market? Can the institutions ‘built for market’ answer the issues of human development,
equitable distribution of resources and reduction of vulnerability? Are there any population
groups suffering because of bad performance of the administrators In the regime of
performance-based lending? Will the institutions based on the market be able to serve
people beyond financial returns? Can these institutions replace the efforts of the
government? Can market-based discipline be regarded as the ultimate discipline for any
public administrative system?
Issues of governance and its contradictions with market
One of the most discussed contemporary debates is about how much of government and
how much of market. What is the right mix? The market and the government have
recognised each other and are trying to find a role for each other. They are interdependent
their nature and primary objective differ from each other. Markets are meant for financial
transaction and for financial performance and the dynamics of these factors. The
government has to govern the people and they have to ensure equity for everybody. At
times, they have to ignore market mechanisms in order to distribute the resources correctly.
With the emergence of the concepts of decentralization, the role of local government
became crucial. At the same time, there exists argument to reduce the role of the
government from the all-possible activities favouring the market-based approach. This is a
major contradiction that exists in this line of thinking. However, this is widely reflected in the
projects like TNUDP where the sides of the government and that of markets are taken on the
situational basis.
9 “This World Development Report is about building market institutions that promote growth and reduce poverty,
addressing how institutions support markets, what makes institutions work, and how to build them…. markets are central to
the lives of poor people as markets affect people’s standards of living and help protect their rights…. It is about equal
opportunity and empowerment for people, especially poor.” - James D. Wolfensohn, President, the World Bank Group
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The first generation projects like MUDP, CUDP10 and BUDP were more focused on physical
intervention in the existing system focusing on shelter –sites and services. The second-
generation project like TNUDP 1 initiated the concept of financial intermediary and involved
private sector in the urban processes. TNUDP 2 is the ‘third generation project’ of externally
assisted urban development projects. The third generation projects like TNUDP 2, GURP11
etc. not only promoted private sector participation but also added certain components like
capacity building with the help of institutional strengthening. These institutions acted like
Strategic intermediary facilitating the services beyond financing the projects. Thus, reforms
are driven carefully ensuring the return of the investment along with visible changes within
the institutional and policy framework.
This inter generational analysis of urban development project design reflects a slow
paradigm shift in the urban development projects in India. The projects in early 80s focused
on the improvement of the physical aspects of development with the help of development
assistance. The projects in early 90s marked a major shift due to national level policy
change and focused on the ‘management of the urban’. This also marks a transition from the
development approach of a welfare state to market based neo-liberal interpretations of the
roles of market and government where government merely regulates key services which are
being supplied by market based institutions.
10 Like Madras Urban Development Project in Tamil Nadu, the World Bank also financed similar projects in Calcutta
(CUDP) and Bombay (BUDP) in the 1970s.
11 Gujarat Urban Reform Project (GURP) has been initiated in the state of Gujarat and the World Bank is also negotiating
with the state governments of Andhra Pradesh and Maharashtra (Mathur, 1999).
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It is argued that the Bank is ensuring the returns of the money it has invested. However, it is
not so simple to describe the intentions of the Bank. The World Bank has its own urban
policy framework within which it operates and it allows it allies to operate. The intentions are
also to achieve the ‘effective’ outcomes of the investment beyond the financial returns. Thus,
reforms are driven carefully ensuring the return of the investment along with visible changes
within the institutional and policy framework. The financial success of TNUDP has
encouraged the dialogue on the re-applicability of this model in other states. It is considered
as a ‘best practice’ by the World Bank and the related organisations. Many of the urban
development projects in India and in neighbouring countries are being influenced by it.
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can be shared as 75% by the Central Government and 25% by the State Government. There
is Rs. 400 crores proposed for the fund in the 10th Five Year Plan.
The recent announcement of these funds from the central government marks a shift in the
government’s attitude toward infrastructure finance and towards urban sector reforms. After
the prevalence of externally financed urban infrastructure funds, the government is
encouraged to initiate similar funds in various states and in various cities. This is a major
transition in the history of urban infrastructure finance in India. The success or failures of
these funds are the question, which will be answered by the coming years, but as far as
central government is concerned, it has surely started ‘building institutions for the market’.
7. SUMMATION
The process of fiscal and functional decentralization has been initiated in India and thus the
concept of local self-government with an active participation from various communities in the
decision-making can be made possible. The emergence of market-based approach for urban
services has to be critically checked by the government, however, there are great
possibilities for the financial management, accounting system and taxation reforms to take
place in the various parts of the country. Large numbers of externally assisted projects are
also going to focus on capacity building, training etc along with the building of physical
infrastructure. At this juncture, the role of the government is going to be more crucial in
regulating the service provision and in assuring community participation in urban
development beyond just witnessing the ‘marketisation of urban services.
Development assistance has remained a powerful instrument to push forward the political,
economic or even social agendas of the assistance-providers. Pre-conditionality in
development assistance is very important tool, which is targeted at the policy and
institutional reforms. Thus, policy reforms as pre-conditionality to development assistance
have remained in practice in the name of achieving sustainability of the project objective and
satisfactory outcomes of the project rationales.
The governmental machinery, the external agency and the implemented or on-going projects
have not been able to successfully answer the complex and diverse urban sector issues of
India such as poverty and gaps of basic infrastructure services. The increasing reliance on
the neo-liberal concepts and models has also shown limited success in addressing such as
issues as it is evident from the case of Tamil Nadu.
It is essential here to look back at the processes of urban development, the success and
failures, the efficiency and inefficiency of governmental and non-governmental mechanisms.
With the changing modes of productions and global rhetoric, it is essential to develop
alternative methods that are sensitive to the context in which they are operating. There also
exists a large scope for policy research to guide the urban sector programs and balancing it
between the ruthless disciplines of the market and issues of sustainable and comprehensive
development of human habitat in a fairly just world.
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% of Urban sector to total 4.51 4.03 4.72 4.42 4.67 6.70 5.47 4.35 1.66
6123. 10004. 9841. 10115. 9529. 8709. 10052. 8498. 9924.
TOTAL :
92 67 16 52 74 63 07 39 92
Source: Annual report 2000-01 of Controller of Aid accounts & Audit, Dept. of Economic affairs, Ministry of Finance, Government of India.
TABLE 3 SOURCE WISE EXTERNAL LOANS AND GRANTS (GOVT-NON GOVT) RS. IN CRORES
Development Assistance 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 00-01
Multilateral Total 6565 7976 5809 8554 11199 7588 6685 16628
Bilateral Total 7470 5483 6353 8589 16952 940 2156 1499
Grand Total 14035 13459 12162 17143 28151 8528 8841 18127
% of Bilateral to grand total 53.22 40.74 52.24 50.1 60.22 11.02 24.39 8.27
% of Bank's share to grand total 31.81 46.88 38.86 35.68 28.3 75.87 49.33 62.58
ADB's share to grand total 9.95 11.74 6.85 13.05 8.31 13.11 24.48 29.05
% of ADB+WB to grand total 41.76 58.62 45.71 48.73 36.61 88.98 73.81 91.63
Grants/Loans (%) 9.78 9.6 10.63 13.91 12.11 12.16 9.92 10.78
Avg. Interest rate 4.17 3.26 3.1 3.16 3.1 2.84 2.75 3.1
Japan's share to total bilateral 58.14 74.41 73.6 50.18 24.17 55 0.42 52.43
Japan's share to total (Bi+Multi) 30.94 30.31 38.45 25.14 14.56 6.06 0.1 4.34
Source: Annual report 2000-01 of Controller of Aid accounts & Audit, Dept. of Economic affairs, Ministry of Finance, Government of India.
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N-AERUS Annual Seminar 2003 Rutul Joshi, India
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N-AERUS Annual Seminar 2003 Rutul Joshi, India
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