Urbanisation in India — Context
Key Statistics
| Indicator | Value |
|---|---|
| Urban population (2011 Census) | 37.7 crore (31.1% of total) |
| Projected urban population (2036) | ~60 crore (40%+) |
| Number of Urban Agglomerations (UAs) | 7,935 (Census 2011) |
| Cities with 1 million+ population | 53 (Census 2011) |
| Megacities (10 million+) | Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad |
| Urban contribution to GDP | ~60% of GDP from urban areas |
Urban Transition: India is undergoing rapid urbanisation — rural to urban migration, reclassification of villages as towns. This creates pressure on urban infrastructure — housing, water, sanitation, transport.
Constitutional Framework — 74th Amendment
Part IXA — Municipalities (Articles 243P–243ZG)
Article 243Q — Types of Urban Local Bodies:
| Type | Area |
|---|---|
| Nagar Panchayat | Area in transition from rural to urban (census town, peri-urban) |
| Municipal Council | Smaller urban area (population threshold set by state) |
| Municipal Corporation | Larger urban area (major cities) |
Article 243R — Composition:
- Elected by ward-based direct election
- Seats reserved for SC/ST (proportionate to population)
- Not less than 1/3 seats for women (many states have increased to 50%)
Article 243S — Ward Committees:
- Mandatory for municipalities with population 3 lakh or more
- Ward Committee = smaller unit for area-level administration
Article 243T — Reservation:
- SC/ST — proportionate to population
- Women — 1/3 minimum (most states give 50%)
- OBC reservation — discretion of state legislature
Article 243U — Duration:
- 5-year term; fresh elections before expiry
- If dissolved early → elections within 6 months
Article 243V — Disqualification:
- Same grounds as state legislature disqualification
Article 243W — Powers:
- State legislature may endow ULBs with powers + authority to perform functions listed in 12th Schedule
Article 243X — Finance:
- State legislature may authorise ULBs to levy, collect, and appropriate taxes, duties, tolls
- State government may assign state tax revenues to ULBs
- State Finance Commission (Art 243Y) — every 5 years; review financial position
Article 243Z — Audit:
- Accounts of municipalities must be maintained and audited as prescribed
Article 243ZD — District Planning Committee:
- Prepare draft development plan for district
- Consolidate plans of Panchayats + Municipalities at district level
- Composition: 4/5 elected from PRIs and ULBs; 1/5 nominated by state government
Article 243ZE — Metropolitan Planning Committee:
- For metropolitan areas (population 10 lakh+)
- Plan for entire metro region including multiple ULBs
- At least 2/3 members elected from elected municipal and panchayat members
12th Schedule — 18 Functions of Municipalities
1. Urban planning including town planning 2. Regulation of land use and construction of buildings 3. Planning for economic and social development 4. Roads and bridges 5. Water supply for domestic, industrial, commercial purposes 6. Public health, sanitation, conservancy, solid waste management 7. Fire services 8. Urban forestry, protection of environment 9. Safeguarding of interests of weaker sections 10. Slum improvement and upgradation 11. Urban poverty alleviation 12. Provision of urban amenities and facilities (parks, gardens, playgrounds) 13. Promotion of cultural, educational and aesthetic aspects 14. Burials and burial grounds; cremations 15. Cattle pounds; prevention of cruelty to animals 16. Vital statistics including registration of births and deaths 17. Public amenities (street lighting, parking lots, bus stops, public conveniences) 18. Regulation of slaughterhouses and tanneries
Urban Local Bodies — Structure
Municipal Corporations (Large Cities)
Key Officials:
| Official | Role | Appointment |
|---|---|---|
| Mayor | Political head; presides over Council | Elected (directly or by councillors) |
| Municipal Commissioner | Administrative head; IAS officer | Appointed by state government |
| Councillors | Elected representatives; legislative role | Directly elected from wards |
| Standing Committees | Taxation, Works, Health, Education | From elected councillors |
Greater Chennai Corporation (GCC)
| Parameter | Details |
|---|---|
| Established | 1688 (oldest municipal body in India — Madras Municipal Corporation) |
| Current name | Greater Chennai Corporation |
| Area | 426 sq km |
| Population | ~4.7 million (Corporation area) |
| Wards | 200 wards |
| Mayor | Elected; 5-year term |
| Commissioner | IAS officer; appointed by state |
| Budget | ~₹6,000–7,000 crore annually |
Services: Roads, bridges, drainage, solid waste management, birth/death registration, parks, street lights, schools (Chennai Corporation Schools), health centres (Redhills reservoir, etc.).
Major Urban Development Missions
1. Smart Cities Mission (SCM)
| Parameter | Details |
|---|---|
| Launched | June 25, 2015 |
| Cities | 100 cities selected |
| Duration | 2015–2024 (extended) |
| Funding | ₹100 crore/year/city (Centre) + equal matching from state/ULB |
| Total outlay | ~₹2.05 lakh crore |
| Implementation | SPV (Special Purpose Vehicle) — company for each city |
Two types of interventions:
1. Area-Based Development (ABD):
- Retrofitting: Upgrade infrastructure of existing built-up area
- Redevelopment: Replace existing structures with planned new development
- Greenfield: New development in vacant/greenfield areas
2. Pan-City Solutions:
- IT-based smart solutions for entire city
- Smart traffic management (ATCS — Adaptive Traffic Control System)
- Online civic services; mobile apps
- ICCC (Integrated Command and Control Centre) — nerve centre of smart city
Tamil Nadu Smart Cities (9): Chennai · Coimbatore · Madurai · Salem · Thanjavur · Tiruppur · Trichy · Vellore · Thoothukudi
Mission status: As of 2024, most projects completed; National Smart Cities Award given annually.
2. AMRUT (Atal Mission for Rejuvenation and Urban Transformation)
AMRUT 1.0 (2015–2020):
| Parameter | Details |
|---|---|
| Launched | June 25, 2015 |
| Cities | 500 cities (1 lakh+ population) |
| Outlay | ₹50,000 crore |
| Focus | Water supply, sewerage, drainage, urban transport, parks |
AMRUT 2.0 (2021–2026):
| Parameter | Details |
|---|---|
| Launched | October 2021 |
| Cities | 500 cities + 4,000 towns (ULBs) |
| Outlay | ₹2.99 lakh crore (including state + ULB share) |
| Focus | Universal water supply to all households; sewerage/septage; rejuvenation of water bodies |
| New feature | Technology sub-mission; data-driven governance |
Tamil Nadu AMRUT: 32 cities covered; focus on Chennai water supply (desalination, reservoir augmentation), sewage treatment plants, underground drainage.
3. PM Awas Yojana — Urban (PMAY-U)
| Parameter | Details |
|---|---|
| Launched | June 25, 2015 |
| Objective | Housing for All by 2022 (extended) |
| Target | 1.12 crore affordable houses |
| Achievement | ~80 lakh houses sanctioned; ~60+ lakh completed |
| Components | In-Situ Slum Redevelopment (ISSR); Credit Linked Subsidy Scheme (CLSS); Affordable Housing in Partnership (AHP); Beneficiary Led Construction (BLC) |
| CLSS | Subsidy on home loan interest — up to ₹2.67 lakh for EWS/LIG |
Tamil Nadu PMAY-U: Over 4 lakh houses sanctioned; major beneficiaries in Chennai, Coimbatore, Madurai, Trichy.
4. RERA (Real Estate Regulation and Development Act, 2016)
Implemented from: May 1, 2017
Key provisions:
| Provision | Details |
|---|---|
| Registration | All projects (500+ sq m or 8+ apartments) must register with RERA before marketing |
| Escrow account | 70% of project funds in separate account — only for that project |
| Carpet area | Standardised definition — buyers know exact area |
| Delivery commitment | Developer must deliver as committed; delays = compensation |
| 5-year defect liability | Structural defects within 5 years = developer fixes free |
| Penalty | Up to 3 years imprisonment for developer violations |
Tamil Nadu RERA (TNRERA): Operational; HQ Chennai; significant project registrations; complaint redressal mechanism active.
5. PM SVANidhi (Street Vendor Scheme)
| Parameter | Details |
|---|---|
| Launched | June 2020 (COVID relief for street vendors) |
| Full name | PM Street Vendor's AtmaNirbhar Nidhi |
| Credit | ₹10,000 initial loan → ₹20,000 → ₹50,000 (on repayment) |
| Collateral | None required |
| Digital payments incentive | Cashback on digital transactions |
| Beneficiaries | 50 lakh+ street vendors nationwide |
6. National Urban Livelihoods Mission (NULM) / DAY-NULM
| Parameter | Details |
|---|---|
| Full name | Deendayal Antyodaya Yojana — National Urban Livelihoods Mission |
| Launched | 2013 (UPA); restructured under DAY-NULM |
| Target | Urban poor; street vendors; homeless |
| Components | SHG formation; skill training; self-employment credit; shelter for homeless |
7. Smart Cities & AMRUT vs JNNURM
JNNURM (Jawaharlal Nehru National Urban Renewal Mission): Launched 2005 (UPA); predecessor to Smart Cities + AMRUT; covered 65 mission cities; focus on urban infrastructure reform; expired 2014.
| Feature | JNNURM (2005–14) | Smart Cities (2015+) | AMRUT (2015+) |
|---|---|---|---|
| Cities | 65 | 100 | 500 |
| Focus | Basic infrastructure + reform | Smart solutions + ABD | Water, sewage, greenery |
| Reform link | Mandatory urban reforms | SPV model; less reform-linked | Moderate |
Urban Poverty & Slums
Scale
- Slum population (2011): 6.5 crore (17.4% of urban population)
- Number of slum cities: 2,543 cities/towns have slums
- Largest slum in Asia: Dharavi, Mumbai (~1 million population in 2.4 sq km)
Urban Poverty Measures
- Tendulkar Committee urban poverty line: ₹33.33/day (2011–12)
- Rangarajan Committee: Higher urban poverty line — ₹47/day
- Urban poor face: Inadequate housing, lack of water/sanitation, informal employment, vulnerability to eviction
Tamil Nadu Urban Poverty
- Chennai's slums: Kasi Kuppam (fishing community), Kotturpuram, Besant Nagar — coastal slum clusters
- TNSCB (Tamil Nadu Slum Clearance Board): Relocates slum dwellers to flats; contentious — loss of livelihood for fishing communities
- Tendersure/smart road projects: Road infrastructure upgrades in Chennai, Coimbatore
Urban Transport
Metro Rail in Tamil Nadu
Chennai Metro Rail (CMRL):
- Phase 1: 45 km (operational since 2015–2019) — Washermenpet to Airport + other corridors
- Phase 2: 118.9 km (under construction) — connecting extended Chennai
- Operated by: Chennai Metro Rail Limited (joint venture — Centre 50% + TN 50%)
Coimbatore Metro: Under planning/approval
Bus Rapid Transit System (BRTS)
- Dedicated bus lanes with grade-separated crossings
- Implemented in Coimbatore, Madurai (partial), Chennai (proposed)
e-Bus Push
- Tamil Nadu procured electric buses for city service
- PM e-Bus Sewa scheme — Centre subsidises e-buses for cities
Urban Governance Challenges
| Challenge | Details |
|---|---|
| Fragmentation | Multiple agencies (corporation, development authorities, water boards, traffic police) — lack of coordination |
| Finance gap | ULBs depend heavily on state grants; own tax revenues inadequate |
| Capacity | Shortage of trained staff in smaller municipalities |
| Urban sprawl | Unplanned growth beyond corporation limits; lack of land use planning |
| Water crisis | Chennai water crisis (2019) — reservoirs dried; water tanker dependence |
| Solid waste | Scientific disposal missing in most cities; landfill overuse |
| Urban flooding | Chennai floods (2015, 2021, 2023) — inadequate drainage; encroached waterways |
Board Exam Tips — Urban Governance
- 74th Amendment (1992) = Part IXA; Articles 243P–243ZG; added 12th Schedule (18 functions)
- Three types of ULBs = Nagar Panchayat (transitional) + Municipal Council (smaller urban) + Municipal Corporation (larger urban)
- Art 243ZD = District Planning Committee; Art 243ZE = Metropolitan Planning Committee
- Ward Committees = mandatory for ULBs with 3 lakh+ population
- Smart Cities Mission = launched June 25, 2015; 100 cities; SPV model; ₹100 crore/year/city
- TN Smart Cities = 9 cities (Chennai, Coimbatore, Madurai, Salem, Thanjavur, Tiruppur, Trichy, Vellore, Thoothukudi)
- AMRUT = launched June 25, 2015; 500 cities; water + sewage + drainage; AMRUT 2.0 from 2021
- PMAY-Urban = launched June 25, 2015; housing for all; CLSS for home loan subsidy
- RERA 2016 = 70% escrow; 5-year defect liability; mandatory project registration; TNRERA in TN
- PM SVANidhi = June 2020; street vendors; ₹10,000 → ₹20,000 → ₹50,000 loans
- JNNURM = 2005 (UPA); 65 cities; replaced by Smart Cities + AMRUT in 2015
- Greater Chennai Corporation = oldest municipal body in India (1688); 200 wards; 426 sq km
- Chennai Metro = Phase 1 (45 km); Phase 2 (118.9 km under construction)
- Urban slum population = 6.5 crore (2011); 17.4% of urban India
- Three schemes launched same day (June 25, 2015): Smart Cities + AMRUT + PMAY-Urban