Financial Problems of Developing Urban Infrastructure In India – Review and Suggestions

Growing organization is national issue. It is continuous process which will bring benefits as well as problems. Urban areas are considered as major source of contribution to economic growth. There are various reasons of urbanization but the problems like financial, infrastructural, administrative, social services and shortages in civic services are same. These problems will grow by growing urbanization. The available infrastructure in urban areas is inadequate considering the size of population and pressure of urbanization. Central Government has already started various schemes for development in urban infrastructure. It includes Jawaharlal Nehru National Urban Renewal Mission (JNNURM) City Development Plan (CDP) Municipal Corporation Bonds (MCM) Pool Finance Scheme and encouragement to Public Private Partnership. The infrastructure like roads, flyovers sanitation management system, burials, parking lots, gardens, prayers halls and social overhead infrastructure is essential for civic services. The inadequate infrastructure is creating social and developmental problems. There is ample scope to develop the urban infrastructure. It can build and developed through public private partnership as well as raising the finance through capital market. The sources like issuing Municipal Bonds and schemes like JNNURM are having its own limitations. Various government and non government agencies estimated the huge requirement of finance for urban infrastructure. The funding gap can be filled by using the source of capital market. Since the issue is related to national level it must be dealt at national level. The urban local bodies must financially strong. The building of infrastructure is necessary to avoid health related problems as well as to protect the environment.