India's Aviation Infrastructure PDF

India is expected to overtake China and registering a growth of over 14 percent per the United States as the world's third- annum. largest air passenger market in the next ten To satisfy the current and projected rise in years, by 2030, a...

India is expected to overtake China and registering a growth of over 14 percent per the United States as the world's third- annum. largest air passenger market in the next ten To satisfy the current and projected rise in years, by 2030, according to the demand for commercial air travel, Indian International Air Transport Association airlines have placed large orders for (IATA). aircraft. The nation’s airplane fleet is The domestic traffic in India has more than projected to quadruple in size to doubled from around 61 million in 2013-14 approximately 2500 airplanes by 2038. to around 137 million in 2019-20, The Ministry of Civil Aviation is International Airports Authority of India responsible for formulating national and the National Airports Authority. aviation policies and programmes. Responsible for developing, financing, The Directorate General of Civil Aviation operating and maintaining all (DGCA) and the Bureau of Civil Aviation Government airports. Security (BCAS) are the two major AAI manages 137 airports, which include regulatory bodies. 24 International Airports (including 3 DGCA is responsible for regulating air International Civil Enclaves), 10 Customs transport services, civil air regulations, air Airports (including 4 Customs Civil safety, while BCAS regulates matters Enclaves), 80 Domestic Airports and 23 related to security. Domestic Civil Enclaves at Defence airfields. Airport Authority of India (AAI) AAI also provides Air Traffic The Airports Authority of India (AAI) was Management Services (ATMS) over entire formed on 1st April 1995 by merging the Indian Air Space and adjoining oceanic  areas with ground installations at all retail), aircraft manufacturers, and Airports air navigation service providers employ 404,000 people in India. Directorate General of Civil Aviation (DGCA) The Directorate General of Civil Aviation (DGCA) is the regulatory body in the field of Civil Aviation, primarily dealing with safety issues. It is responsible for regulation of air transport services to/from/within India and for enforcement of civil air regulations, air safety, and airworthiness standards. Challenges The DGCA also co-ordinates all regulatory Lack of Regional Connectivity functions with the International Civil Absence of terminals and related Aviation Organisation (ICAO). infrastructure. The headquarters are located in New Delhi Rising fuel costs with regional offices in the various parts of India. Biggest challenge for airlines is rising ATF or air turbine fuel. Significance of Aviation Sector Year-on-year (from December 2020 There are different ways of measuring air to December 2021) ATF prices are transport’s impact on an economy. up 67 per cent. The ATF accounts for 35–40 per cent cost of airlines and is a determining factor towards carriers’ profitability metrics. Shortage of skilled worker Shortage of trained and skilled manpower in the aviation sector leading to cut-throat competition for employees (hence driving wages to unsustainable levels) As per “The Importance Of Air Transport Operational efficiency To India” report of International Air Transport Association (IATA), here are AAI’s focus, unfortunately, has some key findings: been on improving mostly the airport terminal buildings and not Airlines, airport operators, airport in procurement of equipment on-site enterprises (restaurants and  which will enhance operational The regional connectivity scheme will be efficiency. applicable on route length between 200 to Depreciation of the rupee 800 km with no lower limit set for hilly, remote, island and security sensitive About 30% of the costs, excluding regions. fuel, are dollar denominated RCS operators shall get a three year (aircraft lease rents, maintenance exclusivity on the routes allocated to them costs, ground handling and parking after a transparent competitive bid. charges in abroad) A Regional Connectivity Fund (RCF) will RCS-UDAN be created to fund the scheme via a levy on The Ministry of Civil Aviation has certain flights. States are expected to launched Regional Connectivity Scheme contribute 20 per cent to the fund. (RCS) - UDAN (Ude Deshka Aam Nagrik) Union and state government shall provide on 21-10-2016 to stimulate regional air the RCS subsidy in the 80:20 ratio except for connectivity and making air travel the North East where the ratio shall be affordable to the masses. 90:10. The scheme provides a unique opportunity Airports Authority of India (AAI) shall be to take ying to the masses by way of scal the operating agency for the scheme. incentives, infrastructure support, procedural simplications and monetary Market-based reverse bidding subsidies. mechanism to determine least VGF to select the airline operator with the right to Highlights: match to the initial proposer. Target airports include over 400 unserved The government said VGF will be reduced and under-served airelds/ aerodromes. if passenger load factor remains high and The scheme is market-driven. The union will be discontinued after 3 years when and state governments shall play the role of route becomes self sustainable. a benevolent facilitator. Value Gap Funding is not provided to The decisions regarding airports, route cargo airlines. network, fleet, frequencies and the airfare Airports Authority of India(AAI), the on non-subsidised seats are left to Implementing Agency, has awarded 948 individual operators. routes, from which, 405 routes involving 65 The VGF shall be for 50% of the passenger airports including 8 heliports and 2 water seats in an RCS flight, subject to a limit of aerodromes have been operationalized 40 and 13 seats in fixed-wing and rotary- under UDAN as on 09.03.2022. wing aircraft respectively. Besides Viability Gap Funding (VGF), In case of 9-seater fixed-wing and 5-seater other concessions from Central, State rotary wing aircraft, all seats shall be Governments and airport operators are covered under RCS. extended to Selected Airline Operators  (SAOs) to encourage operations from between Dehradun and Pantnagar unserved/underserved over 86 days. airports/heliports/water aerodromes and That’s barely 12 passengers on each to keep the air fare affordable. flight, with Alliance Air likely While launching the UDAN Scheme in operating either its 48-seater ATR- 2016, the Government had capped the 42 or the 70-seater ATR-72. Airfare at Rs. 2500 for a distance of 500 km Even if it used its smallest plane, to 600 km per seat under Regional Alliance Air would have been Connectivity routes (equivalent to one- flying with three-fourths of its hour flight). plane empty — a loss for any Issues airline. Poor financial health of many smaller, Requirements from states for lower taxes, regional carriers have been a bane for the free land and VGF support might hinder scheme. the broad based acceptance of the scheme Delay in Operations by States. At inauguration, Five airlines — Also, lack of unanimity amongst SpiceJet, Alliance Air, Trujet, contiguous States, especially in regions like Deccan Charters, and Air Odisha — North East, may impact implementation. were awarded 128 routes among Over the period of 6 years, various versions of them. UDAN Scheme were launched, as follows: Only 54 routes operate yet. UDAN 1.0: 5 airlines companies were Deccan Charters and Air Odisha awarded 128 flight routes to 70 airports bagged two-thirds in the first round (including 36 newly made operational of bidding, but they performed so airports) poorly that those routes had to be UDAN 2.0: 73 underserved and unserved cut. airports were announced and for the first Deccan Charters had its contract time, helipads were also connected. cancelled; that hurt the UDAN 3.0: In coordination with the government’s plan to connect Ministry of Tourism, Tourism Routes were capitals of India’s northeastern included. In addition to Seaplanes for states with one another. connecting Water Aerodromes, several Eventually, Alliance Air was given routes in the North-East Region came the task in December 2019. under the ambit of the scheme. Making flying a hard business UDAN 4.0: Gave impetus to North-Eastern Regions, Hilly States, and Islands. The Alliance Air, for the financial year operation of helicopters and seaplanes 2018-19, ferried 2,174 passengers incorporated.  UDAN Version 5 – 5.0, 5.1 and 5.2 increasing the scope of operations for UDAN 5.0 helicopter operators, enhancing VGF and reducing Airfare Caps. The focus is on Category-2 (20-80 seats) and Category-3 (>80 seats) aircraft. The Scheme will now allow operations on routes provided that at least one origin or Similarly, the cap of 600 km has been destination is in a priority area and at least removed and there is no restriction on the one origin or destination is a heliport, distance between the origin and thereby enhancing the potential range of destination of the flight. connectivity. This round prioritizes the routes that will VGF caps have been enhanced to improve connect the airports that are ready for viability for operators and airfare caps have operations or will be ready soon, which been reduced to make flying more will lead to quicker operationalization of affordable for passengers respectively. awarded routes. UDAN 5.2 Consequently, Airlines would now be Bidding for UDAN 5.2 is underway to required to commence operations within 4 further enhance the connectivity to remote months of the award of the route, and they and regional areas of the country, achieve are welcoming this change as this helps last-mile connectivity, and provide them to better plan their operations. impetus to the tourism sector through Additionally, if the average quarterly PLF small aircraft ( 80 Seats)  Now no restriction on Distance the distance Length 500 km 500 km 800 km 1,200 km between the Cap origin and destination of the flight. 70% for Cat-1, Viability 90% for Hilly 60 % for Priority Gap States, J & K, Areas , 20 % for Same Same Same Funding Ladakh, NE Non Cap and Island Priority Areas regions Number of 70 airports 325 airports 688 airports 766 airports 766 airports Airports Exclusivity 3 years 3 years 3 years 1 year 1 year Krishi UDAN Promotion & Facilitation Agency, under the Ministry of Commerce and Industry. Krishi UDAN Scheme was launched in August 2020, on international and national Krishi UDAN 2.0 routes to assist farmers in transporting Krishi Udan Scheme 2.0 was announced on agricultural products so that it improves 27 October 2021 enhancing the existing their value realisation. provisions, mainly focusing on The scheme aims to ensure seamless, cost- transporting perishable food products effective, time-bound air transportation from the hilly areas, North-Eastern States and associated logistics for all Agri- and tribal areas. produce originating especially from Under the scheme, full waiver of Landing, Northeast, hilly and tribal regions of the Parking, TNLC, and RNFC charges for country. Indian freighters and P2C has been Formulated with support from AAI Cargo implemented at 25 airports from NER, Logistics and Allied Services Company Hilly and Tribal region and 28 airports Limited (AAICLAS) - a 100% subsidiary of from remaining parts of the country. the Airports Authority of India and Invest All the airports in NER States including India, India’s national Investment Assam are covered under the Scheme.  Ministry of Civil Aviation, Ministry of Dibrugarh – Delhi & Mandarin & Agriculture & Farmers Welfare, Dept. of Dubai Oranges Fisheries, Dept. of Animal Husbandry and Dairying, Ministry of Food Guwahati - Hong Pulses, fruits & Processing Industries, Ministry of Tribal Kong vegetables Affairs, DONER are coordinating for implementation of the scheme. National Civil Aviation Policy, 2016 This is the first time since independence Routes Products that an integrated Civil Aviation Policy has been brought out by the Ministry. Amritsar – Dubai Babycorn The policy is very comprehensive, covering Darbhanga - Rest of 22 areas of the Civil Aviation sector. Lichis India Its salient features are as follows : Sikkim - Rest of India Organic produce Regional Connectivity Scheme This scheme will come into effect in Chennai, Vizag, Seafood the second quarter of 2016-17. Kolkata - Far East Airfare of about Rs2500 per Agartala - Delhi & passenger for a one-hour flight. Pineapple Dubai Route Dispersal Guidelines (RDG) The 5/20 Rule put together), whichever is higher All airlines can now commence for domestic operations international operations provided Ground Handling Policy that they deploy 20 aircraft or 20% of The airport operator will ensure that total capacity (in term of average there will be three Ground Handling number of seats on all departures Agencies (GHA) including Air  India's subsidiary/JV at all major customs duty has been rationalised airports as defined in AERA Act. and the procedure for clearance of goods simplified. Further incentives At non-major airports, the airport proposed in the policy to give a operator to decide on the number of push to this sector: ground handling agencies, based on the traffic output, airside and MoCA will persuade State terminal building capacity. Governments to make VAT zero- rated on MRO activities All domestic scheduled airline operators including helicopter Provision for adequate land for operators will be free to carry out MRO service providers will be made self-handling at all airports through in all future airport/heliport their regular employees. projects where potential for such Maintenance, Repair and Overhaul MRO services exists The MRO business of Indian carriers Airport royalty and additional is around Rs 5000 crore, 90% of charges will not be levied on MRO which is currently spent outside service providers for a period of five India. In the budget for 2016-17, years from the date of approval of the policy Drone Rules 2021 Drone Rules 2021 notified on 25th August Interactive airspace map with green, 2021. yellow and red zones shall be displayed on the digital sky platform within 30 days of The policy aims to make India a global hub publication of these rules. for the research and development, testing, manufacturing and operation of drones. No permission required for operating drones in green zones. To facilitate further growth, the Government approved the Production Green zone means the airspace Linked Incentive (PLI) scheme on 30 Sep upto a vertical distance of 400 feet 2021 for drones and drone components in or 120 metre that has not been India. designated as a red zone or yellow zone in the airspace map; and the Digital Sky Platform (DSP) has been airspace upto a vertical distance of launched to regulate the entire gamut of activities pertaining to drone operations 200 feet or 60 metre above the area as well as to function as a single window located between a lateral distance online platform to ensure smooth of 8 and 12 kilometre from the functionality of the applications. perimeter of an operational airport. Unmanned Aircraft System (UAS) Traffic Yellow zone reduced from 45 km to 12 km Management (UTM) Policy framework, from the airport perimeter. 2021 has been released on 24 Oct 2021 to No remote pilot licence required for micro enable complex operations of drones and drones (for non-commercial use) and nano increase the overall safety in the UTM drones. airspace. No requirement for security clearance Key features of Drone Rules 2021 before issuance of any registration or Number of forms reduced from 25 to 5. licence. Types of fee reduced from 72 to 4. No requirement of Type Certificate, unique identification number and remote Quantum of fee reduced to nominal levels pilot licence by R&D entities operating and delinked with size of drone. For drones in own or rented premises, located instance, the fee for a remote pilot license in a green zone. fee has been reduced from INR 3000 (for large drone) to INR 100 for all categories of No restriction on foreign ownership in drones; and is valid for 10 years. Indian drone companies. Digital sky platform shall be developed as Import of drones to be regulated by DGFT. a user-friendly single-window Requirement of import clearance from system. There will be minimal human DGCA abolished. interface and most permissions will be self- generated.  Coverage of drones under Drone Rules, Maximum penalty for violations reduced 2021 increased from 300 kg to 500 kg. This to INR 1 lakh. will cover drone taxis also. Safety and security features like ‘No DGCA shall prescribe drone training permission – no takeoff’ (NPNT), real-time requirements, oversee drone schools and tracking beacon, geo-fencing etc. to be provide pilot licences online. notified in future. A six-month lead time will be provided to the industry for Remote pilot licence to be issued by DGCA compliance. within 15 days of pilot receiving the remote pilot certificate from the authorised drone Drone corridors will be developed for school through the digital sky platform. cargo deliveries. Testing of drones for issuance of Type Drone promotion council to be set up by Certificate to be carried out by Quality Government with participation from Council of India or authorised testing academia, startups and other stakeholders entities. to facilitate a growth-oriented regulatory regime. Type Certificate required only when a drone is to be operated in India. Importing AirSewa and manufacturing drones purely for AirSewa enables travelers to submit exports are exempt from type certification grievances and seek information on air and unique identification number. travel in India. It is an initiative by MoCA, Nano and model drones (made for research Govt. of India or recreation purposes) are exempt from AirSewa app and website provides you type certification. information about flights operating from Manufacturers and importers may various airports in India. generate their drones’ unique AirSewa 3.0 made live on 02 Oct 2021 with identification number on the digital sky enhanced feature of grievance redressal. platform through the self-certification route. New features include - Grievance escalation by users or on Service Level Easier process specified for transfer and Agreement (SLA) expiry, Grievance deregistration of drones through the digital transfer among stakeholders, Enhanced sky platform. roles and permissions for nodal officers, Standard operating procedures (SOP) and Enhanced flight information and tracking training procedure manuals (TPM) will be of flights, Public forum for discussions, prescribed by DGCA on the digital sky Mobile app for nodal officers. platform for self-monitoring by users. No The service has been promoted extensively approvals required unless there is a by printing AirSewa QR code on the significant departure from the prescribed boarding cards and tickets, promotion procedures. through Flight Information Display System  (FIDS) etc at strategic locations at over 80 Guwahati, Thiruvananthapuram airports. and Mangaluru for Operations, Management and Development to Pending grievances on AirSewa portal has the highest bidder i.e., M/s Adani been reduced from 1,354 on 20 Jul 2021 to Enterprises Limited (AEL) under 59 on 15 Dec 2021 (96% reduction). Public Private Partnership (PPP) Privatization in the Aviation sector mode for a lease period of 50 years. Disinvestment of Air India As per National Monetization Pipeline The process for disinvestment of Air India (NMP), 25 AAI airports have been and its subsidiaries commenced in June earmarked for asset monetization over the 2017 with the ‘in-principle’ approval of years 2022 to 2025 namely Bhubaneshwar, Cabinet Committee on Economic Affairs Varanasi, Amritsar, Trichy, Indore, Raipur, (CCEA). Calicut, Coimbatore, Nagpur, Patna, Madurai, Surat, Ranchi, Jodhpur, Chennai, CCEA also approved creation of an Air Vijayawada, Vadodara, Bhopal, Tirupati, India Specific Alternative Mechanism Hubli, Imphal, Agartala, Udaipur, (AISAM) for the disinvestment process. Dehradun and Rajahmundry. The AISAM decided the strategic The criteria adopted for disinvestment of 100percent stake of Monetization of airport assets Government of India in Air India along under NMP is as following: with 100percent stake in Air India Express Ltd and 50 percent stake in Air India SATS Airports having annual (joint venture between Air India (AI) and traffic above the threshold Singapore Airport Terminal Services of 0.4 million passengers (in (SATS). 2019 and2020); Subsequently, M/s Talace Pvt Ltd, a Airports with a sizeable wholly owned subsidiary of M/s Tata ongoing/proposed capex Sons Pvt. Ltd which was the highest bidder plan as per the National was awarded 100 percent equity Infrastructure Pipeline shareholding in Air India along with equity (NIP). shareholding of Air India in Air India eGCA Express Ltd. (AIXL) and AISATS. e-Governance in Directorate General of Privatization of Airports: Civil Aviation (eGCA) was launched on 11 In order to improve efficiency and Nov 2021 with an aim of bringing about performance, service quality, ease of doing business, transparency and encourage greater investment and automation of the processes and functions to reduce government influence, of DGCA. Airports Authority of India (AAI) Under this initiative, services provided to has awarded six airports namely, various DGCA stakeholders such as Pilots, Ahmedabad, Jaipur, Lucknow, Aircraft Maintenance Engineers, Air Traffic  Controllers, Air Operators, Airport Huge potential to develop India as an MRO hub Operators, Flying Training Organizations, India’s MRO industry is expected to grow Maintenance and Design organizations etc. from US$ 800 million in 2018 to more than are now available on the eGCA. US$ 2.4 billion by 2028. Around 300 services of the eGCA have Indian airline companies will spend over been implemented. 12-15% of their revenues on maintenance, This Single window platform will which is the second highest cost eliminate operational inefficiencies, component after fuel. minimize personal interaction, improve The Government has envisaged making regulatory reporting, enhance India a global MRO hub, handling nearly transparency and increase productivity. 90% of the MRO needs of Indian operators Mobile app has also been launched for and obtaining around 20% of the MRO Pilots and Aircraft Maintenance Engineers revenue from foreign-registered aircraft. to view their profiles and update their log To achieve this, the Government has books on the go. proposed various key steps including e-SAHAJ setting up of a high-power task force for promotion of MRO, declaration of MRO Through this portal security, clearances are and component warehouses as free trade granted in the civil aviation sector. zones with 0% GST, import restrictions. This portal is a single-window facility that Policy support and demand growth unlocking reduces manual interface. Information large investment potential formats are also standardized by this portal. Success of PPP will raise investment in existing and greenfield airports. Launched by Ministry Of Civil Aviation. Private sector participation in six existing There are a total of 13 types of security airports operated by AAI is likely to clearances that are covered through this increase investment opportunities for portal. airport sector. It will facilitate applicant to submit Government of India has launched NABH- application online and also to view its Nirman Scheme, which is aimed at status from time to time. increasing India’s airports’ capacity. The online portal will make security According to various estimates, India will clearance process standardised, faster, require investments worth Rs. 3 - 4 lakh transparent and easy to monitor. crore (US - 62.06 million) to achieve a Thus it will help to facilitate ease of doing capacity for having a billion trips per year business and promoting investment in the Leverage on nonaeronautical revenues, improved country. technology Way Forward  Airport developers can now draw on wider New player with deep pockets: revenue opportunities such as retail, With the Tatas taking over Air India almost advertising and vehicle parking. after 68 years, the confidence within the Future operators will benefit from greater industry has been boosted. operational efficiency due to satellite-based Tatas will look to consolidate all the navigation systems like ‘Project Gagan’ business in one umbrella, which should which is in development phase. lead to better availability of services for the flier. Housing And Urban Infrastructure As per the 2011 Census, there are approximately 108,000 such slums in the Background country, home to 13 million households of At the current rate of growth, urban which 3.6 million are renters. population in India is estimated to reach a Slum households constitute 17 percent of staggering 575 million by 2030. the total urban population. According to Census 2011, as many as 53 India’s urban housing shortage is more a cities in India had a million plus result of congestion, lack of tenure population. security, and inadequate basic services in Over 37.71 crore Indians, comprising 31.16 existing informal housing, rather than the per cent of the country’s population, lived lack of material housing structures itself. in urban areas as per 2011 Census. Urban population is projected to grow to about 60 crore by 2031. Urban India contributes 65 per cent to India’s GDP. It is estimated to rise to 70 per cent by 2030, an unprecedented expansion that will change the economic, social and political landscape of India. Urban housing shortage across India was at 18.78 million houses for the period 2012- 2017. Challenges in Urban Infrastructure In 2016, the Foundations Strategy Group Many urban governments lack a modern (FSG) estimated that there are between 26- planning framework. 37 million households living in informal Inter Agency coordination housing such as slums and unauthorised Population concentration housing.  Increase in population growth Strengthen Micro Finance resulted in a situation where the The financial help is needed and available resources and facilities promulgated to improve the provided by the government are to institutional environment for the be shared among many. lower-income categories to access Less focus on financially and housing microfinance and other environmentally sustainable services. financial tools. Rising land dispute and litigation Exclusion of potential beneficiaries Delayed commissioning and completion of Slum households mostly lack legal projects. documentation to prove residence, especially migrants and renters. Challenges in Affordable Housing Slum surveys are necessary to Pressure on Existing Infrastructure establish beneficiary lists, but these The lack of housing options for LIG are not carried out properly or section, coupled with limited regularly for all types of slums. income and minimal access to home Digital India Land Records finance for income borrowers lead to a cramped and poor living. Modernisation Programme (DILRMP) Land Availability Digital India Land Records Modernization Programmed (DILRMP), It is important to regularly release the erstwhile National Land Records land parcels from the government Modernization Programmed launched in to promote affordable housing 2008-09 as a centrally sponsored scheme, projects. was converted to a central sector scheme Being Innovative yet Mass Production from 2016 with 100 per cent funding by the Difficult center. To minimize construction costs, Substantial progress has been made under many developers use creative the programmed in the basic component of engineering design and incorporate Computerization of Land Records. innovation into the engineering Record of Rights (RoR) completed in more process. More challenging to than 91 per cent in 26 states/UTs. implement innovation on the scale of hundreds and thousands of It aims at the modernization of the land homes. records in the country. Investment in Ancillary Infrastructure Integrated Land Information Equal need to focus on providing Management System (ILIMAS) the necessary connectivity and It is being implemented under the aegis of social infrastructure. Digital India Land Records Modernization Programmed (DILRMP). It aims to National Generic Document Registration improves Realtime information on land System (NGDRS) optimizes use of land resources The National Generic Document Registration System (NGDRS) is a benefits both land owners & prospectors common, generic and configurable assists in policy and planning application developed for registration reduces land disputes departments across the country. checks fraudulent/benami transactions; The application is specifically designed for and the use of sub registrars, citizens and apex users from registration departments. enable timely credit supports to farmers through integration of banks (already NGDRS facilitates states to create state rolled out in 283 districts). specific instance and configure the software as per requirements. It provides online single-window at-a- glance access to all available, relevant The application has the facility for online information to give a fair comprehensive document entry for citizens, along with position of any plot of land in question to online valuation module with stamp duty the land owners, concerned calculation to the citizens. officers/agencies and interested Linkage Of E-court With Land persons/entrepreneurs, etc. Record/Registration Data Base The components broadly include linking Pilot test for linking of e-Court with land with banks, courts, circle rates, registry, record and registration data base has Aadhaar number (by consent), etc. undertaken successfully in three states Unique Land Parcel Identification namely, Haryana, Maharashtra and Uttar Numbers (ULPIEN) Pradesh in association with Department of Justice. In order to have a comprehensive overview of land across the states, it is necessary that The benefits include: unique identification numbers be assigned The court will have first-hand information to the land plots. on substantive and authentic evidence of The Unique Land Parcel Identification Record of Rights, Cadastral map Number (ULPIN) system is of 14 digits– including Geo referenced and legacy data. Alpha-numeric unique ID for each land The information will be advantageous to a parcel based on geo-coordinates. great extent to the courts in deciding The unified system of identification of land admission as well as disposal of the parcel is a single authoritative source of disputes. truth of information on any land parcel or Courts will be able to easily know whether property to provide integrated land any case relating to a particular property is services to the citizens.  pending in any court (though an affidavit is verticals which comprise of 20 sectors and given by the petitioner to this effect) 100 indicators in all totality. Reduction in quantum of land disputes; The five verticals under MPI are Services, Finance, Policy, Technology and Prospectors will know the disputes status Governance. in respect of a property to enable them to take an informed decision after considering National Urban Digital Mission risk factor in transacting such property Ministry of Housing & Urban Affairs Litigants will have access of status of the (Mohua) along with the Ministry of case online in place of visiting Electronics and Information Technology courts/lawyers; and (MeitY) has launched National Urban The system will lead to ease of doing Digital Mission (NUDM). business and promote ease of living, etc. NUDM aims to build the shared digital infrastructure for urban India. Ease Of Living Index (EOLI) & Municipal Performance Index (MPI) It aims to improve urban connectivity that will connect nearly 2,535 cities. Both of these indices have been released by Ministry of Housing & Urban Affairs. It will institutionalize a citizen-centric and ecosystem-driven approach to urban EoLI is an assessment tool that evaluates governance. the quality of life and the impact of various initiatives for urban development. At same time, initiatives like India Urban Data Exchange (IUDX), Smart Code It provides a comprehensive platform, Smart Cities 2.0 website, and understanding of participating cities across Geospatial Management Information India based on quality of life, economic- System (GMIS) were also launched by ability of a city, sustainability and Citizen MOHUA. perception. India Urban Data Exchange (IUDX) MPI was launched, first time in 2021, as an accompaniment to the EoLI. Developed in partnership between the Smart Cities Mission and the Indian MPI seeks to assess and analyze Institute of Science (IISc), Bengaluru. performance of Indian municipalities based on their defined set of functions. It aims to address the problem of data silos. The Municipal Performance Index It will act as seamless interface for data framework covers 20 varied sectors such as providers and data users like urban local health, education, sanitation, participation, bodies, service providers etc. etc. An open-source software platform will be MPI examined the sectoral performance of used for this initiative. 111 municipalities (with Delhi being Smart Code platform assessed separately for NDMC, and the three Municipal Corporations) across five  It enables all ecosystem stakeholders to Preference is also given to persons with contribute to a repository of open-source disabilities, ST/SC/OBCs/Minorities and code for various solutions and applications. Transgender. It is designed to address the challenges that A PMAY(U) house ensures dignified living ULBs face in the development and along with a sense of security and pride of deployment of digital application. ownership to the beneficiaries. Smart Cities 2.0 website PMAY(U) adopts a cafeteria approach to suit the needs of individuals based on the Website has been redesigned to serve as a geographical conditions, topology, single stop for all Smart Cities initiatives. economic conditions, availability of land, Geospatial Management Information System infrastructure, etc. (GMIS) The scheme has hence been divided into GMIS is a web-based, spatially-enabled four verticals as given below management tool, providing one-stop In-situ Slum Redevelopment (ISSR) access to information. Central Assistance of Rs. 1 lakh per house GMIS integrates information from is admissible for all houses built for eligible multiple sources and features search slum dwellers under the component of options by topic and geographic area. ISSR using land as Resource with Pradhan Mantri Awas Yojana—Housing participation of private developers. For All (Urban) Credit Linked Subsidy Scheme (CLSS) It is a flagship mission of Government of Beneficiaries of Economically Weaker India implemented by the Ministry of Section (EWS)/Low Income Group (LIG), Housing and Urban Affairs, was launched Middle Income Group (MIG)-I and Middle on 25th June 2015. Income Group (MIG)-II seeking housing It focuses to cover the entire urban area loans from Banks, Housing Finance consisting of all statutory towns and Companies and other such institutions for planning areas including Urban acquiring, new construction or Development Authorities (UDAs) notified enhancement houses are eligible. with respect to the statutory towns which It provides an interest subsidy of 6.5%, 4% surround the concerned municipal areas. and 3% on loan amount up to Rs. 6 Lakh, All houses under the scheme have facilities Rs. 9 Lakh and Rs. 12 Lakh respectively to like electricity, water supply, kitchen and above categories of beneficiaries. toilet. Affordable Housing in Partnership (AHP): The mission promotes women Under AHP, Central Assistance of Rs. 1.5 empowerment by providing the ownership Lakh per EWS house is provided by the of houses in name of female member or in Government of India. joint name. An affordable housing project can be a mix of houses for different categories but it will  be eligible for Central Assistance, if at least by the Gram Sabha would be provided 35% of the houses in the project are for the assistance. EWS category. The cost for PMAY-G would be shared Beneficiary-led Individual House Construction/ between the Government of India and state Enhancement (BLC-N/ BLC-E) governments in the ratio of 60:40 in plain Central Assistance up to Rs. 1.5 lakh per areas. EWS house is provided to eligible families In the case of North-Eastern and belonging to EWS categories for Himalayan states (Himachal Pradesh and individual house construction/ Uttarakhand), the sharing pattern is in the enhancement. ratio of 90:10. The Urban Local Bodies validate the The Government of India would provide information and building plan submitted the full cost in respect of union territories; by the beneficiary so that ownership of at the national level, a minimum of 60 per land and other details like economic status cent of the target is to be earmarked for SC and eligibility can be ascertained. and ST. Pradhan Mantri Awaas Yojana- Gramin Further, as far as possible, up to 15 per cent (PMAY-G) of the total fund would be earmarked for minorities at the national level. It Aims To Realize The Vision Of ‘Housing For All By 2022’ By Improving Delivery The states to the extent possible may ensure Mechanism And Scheme Architecture. that 5 per cent of beneficiaries at the state level are from among persons with It Was Launched In 2016 By The Ministry disabilities. Of Rural Development. An android based mobile application- The Salient Features Of PMAY-g Include: ‘Awasa’, launched by the Ministry, is used Providing Assistance For Construction Of for inspection of houses through geo- Houses In Rural Areas; Financial tagged, time-stamped photographs of the Assistance To States, Difficult Areas And house at various stages of construction. Districts With Integrated Action Plan; Identification Of Beneficiaries Through Real-time web link has been developed Gram Sabha Based On The Socio- with NREGA Soft to allow the creation of economic And Caste Census (Sec 2011) an NREGA work against each PMAY-G Data. house sanctioned. Accordingly, households who are The program envisages the completion of houseless or living in houses with kutcha 2.95 crore PMAY-G houses with all basic walls and kutcha roof with two rooms or amenities by the year 2022. less, after excluding households falling In 2021, the Union Cabinet has approved under the automatic exclusion category as the continuation of Pradhan Mantri Awaas per SECC 2011 data, after due verification Yojana Gramin (PMAY-G) for another three years till March 2024 Smart Cities Mission Some of the core infrastructure elements in a Smart City would include adequate water It was launched in 2015. supply; assured electricity supply; The Smart Cities Mission (SCM), sanitation; including solid waste launched in 2015, is a joint effort of the management; efficient urban mobility and Ministry of Housing and Urban Affairs public transport; affordable housing, (Mohua), and all state and union territory especially for the poor; robust IT (UT) governments. connectivity and digitalization; good It initially aimed to be completed by 2019- governance, especially e-Governance and 20, but has since been extended. citizen participation; sustainable environment; safety and security of 100 cities and towns in different states and citizens, particularly women, children and UTs of India have been selected under the the elderly; and health and education. SCM. All 100 cities have incorporated Special Its objective is to promote cities that Purpose Vehicles (SPVs), City Level provide core infrastructure, clean and Advisory Forums (CLAFs) and appointed sustainable environment Project Management Consultants (PMCs). There is no standard definition of a smart 100 cities selected under this mission are: city. Development Strategy is done in 2 ways: either Area-based development or Pan-city development. Area-based development: This involves selecting areas of specified size for redevelopment, retrofitting, and greenfield development. The entire city is not selected. Pan-city development: Here, smart solutions are applied over larger areas of the city to improve livability. These could include setting up an intelligent traffic management system, or wastewater The Smart Cities Mission in India is a recycling or smart metering for better water centrally sponsored scheme. It also requires management, etc. state governments and urban local bodies (ULBs) to contribute an equal amount for The objective of the Mission is to promote implementing projects under the Smart cities that provide core infrastructure and City Proposal (SCP). States are expected to give a decent quality of life to its citizens, a seek funds for projects outlined in the clean and sustainable environment and Smart City Proposal from multiple sources application of ’Smart’ solutions. including the following:  Using State/ULB’s resources (from Inadequate Funding: A McKinsey report collection of user fees, beneficiary stated that making Indian cities livable charges & impact fees, land would require an estimated $1.2 trillion by monetization, debt, loans, etc.) 2030. In comparison, the SCM’s ₹1.67 lakh crore (less than $20 billion) over nine years Deploying additional resources accounts for only 0.027% of the required transferred due to acceptance of capital, rendering the mission insufficient recommendations of the to address the larger urban challenges. Fourteenth Finance Commission (FFC) Governance Issues: The Special Purpose Vehicle (SPV) model, designed for project Utilising innovative finance execution, was misaligned with the 74th mechanisms, such as municipal Constitutional Amendment. Many cities bonds with credit rating of ULBs, objected to this top-down governance Pooled Finance Development Fund approach, as it bypassed local governance Scheme and Tax Increment structures. Financing (TIF) For example, smaller towns with Leveraging borrowing from limited budgets proposed projects financial institutions including far beyond their financial capacity, bilateral and multilateral leading to impractical development institutions (both domestic and plans. external sources) Urban Displacement and Flooding: The Availing the National Investment mission has caused urban displacement, and Infrastructure Fund (NIIF) particularly in slum areas, where street Challenges: vendors and poorer residents were forced Selection and Scope: The selection of 100 out due to smart city projects. cities on a competitive basis was criticized Furthermore, some cities that had for being out of touch with the diverse historically never experienced urban realities of India. The development flooding were made vulnerable due focus on limited urban areas — often less to poorly designed infrastructure than 1% of a city’s geographical space — developments, which disrupted led to uneven benefits. natural water channels and For instance, in Chandigarh, ₹196 contours. crore from the SCM was funneled Progress: into a small section of the city As of April 2024, out of the 8,033 sanctioned (Sector 43) for smart water meters, projects, only 5,533 projects worth ₹65,063 Wi-Fi, and waste management crore have been completed.921 projects systems, while the rest of the city worth ₹21,000 crore are still ongoing. did not benefit. The scheme aimed to involve the private sector in financing urban development, but  less than 5% of the total funding has come AMRUT has made states equal partners in through the PPP route, highlighting limited planning and implementation of projects private sector engagement. by approval of State Annual Action Plan (SAAP) once a year by Mohua and states Atal Mission For Rejuvenation And have to give project sanctions and approval Urban Transformation (AMRUT) at their end, therefore actualization of It was launched in 2015. In all, 500 cities cooperative federalism. have been included in the mission. Supervision: An Apex Committee (AC), All Urban Local Bodies (ULBs) with a chaired by the Secretary, Mohua and population of one lakh or more, all other comprising representatives of related capital cities of states/UTs and all Heritage Ministries and organizations supervises City Development and Augmentation the Mission. Yojana (HRIDAY) cities, identified cities Shyama Prasad Mukherji Rurban Mission on the stem of the main rivers, from hill states, islands and tourist destinations were (SPRAM) included as Mission cities. It was launched by the Ministry of Rural Development (MoRD) in 2016. Approximately 60 per cent of urban population in the country is covered under It aims to bridging the rural-urban divide- AMRUT. viz: economic, technological and those related to facilities and services. It is a centrally sponsored scheme with a total outlay of ₹ 1 lakh crore including a Rurban clusters are identified across the Central Assistance of₹ 50,000 crore spread country’s rural areas showing increasing over 5 years, i.e., from 2015-16 to 2019- signs of urbanization i.e., increase in 2020. population density, high levels of non-farm The balance share of ₹ 50,000 crore has to employment, presence of growing come from states and ULBs. economic activities and other socio- economic parameters The mission focuses on development of basic urban infrastructure in the specified Rurban areas refer to a cluster of 15-20 cities with the following expected villages having about 30 to 40 lakh outcomes: population. The clusters will be geographically universal coverage for access to potable contiguous Gram Panchayats with a water for every household population of about 25000 to 50000 in plain substantial improvement in coverage and and coastal areas and a population of 5000 treatment capacities of sewerage to 15000 in desert, hilly or tribal areas. developing city parks The State Government identifies the reform implementation and capacity clusters in accordance with the Framework building. for Implementation prepared by the MoRD.  There are 2 categories of Rurban clusters: It is a centrally sponsored scheme. Non-Tribal and Tribal. It aims for reducing the poverty and It is a Centrally Sponsored Scheme (CSS). vulnerability of urban poor households. The Mission has 2 fund streams: The mission covers all the statutory towns Convergence through various schemes in the country, which are to be decided by (Central sector, centrally sponsored the state as per local need and capability. schemes, State sector/ sponsored Its major components include schemes/ programmed, CSR funds etc) and Critical Gap Funds (CGF). Social Mobilization and Institutional Development (SM&ID), which envisages National Heritage City Development And mobilization of urban poor women, Augmentation Yojana (HRIDAY) differently abled men, and men in It is a central sector scheme of the vulnerable occupations into thrift and Government of India with 100% funding credit-based Self-Help Groups (SHGs) from center. and their federations/collectives It was launched in 2015 with the aim of Employment through Skill Training and bringing together urban planning, Placement (EST&P) for skill development of urban poor in market-oriented courses economic growth and heritage to enable them to earn sustainable conservation in an inclusive manner. livelihoods; It aims at preserving the heritage character Self-Employment Programmed (SEP) of each Heritage City. provides interest subvention on loans to The states and local urban bodies are individuals/groups of urban poor for requested to supplement their resources for setting up self-employment rapid development of heritage cities. ventures/micro-enterprises. The project will work through a An interest subsidy of 5% - 7% for partnership of Government, Academic setting up individual Institutions and local community microenterprises with a loan of up combining affordable technologies. to 2 lakhs and for group The scheme is being implemented in 12 enterprises with a loan limit of up identified cities, namely, Ajmer, to Rs.10 lakhs. Amaravati, Amritsar, Badami, Dwarka, Support to urban street vendors to support Gaya, Kanchipuram, Mathura, Puri, pro-vendor planning, development of Varanasi, Velankanni and Warangal. vendors’ market, credit enablement, socio- Deendayal Antyodaya Yojana-National economic survey of street vendors, skill Urban Livelihoods Mission (Day-NULM) development and micro-enterprises development and convergence with social Ministry of Housing and Urban Affairs assistance under various schemes of the has been implementing it since 2013. government.  Innovative and Special Projects (I&SP) to and addressing grievances promote pioneering efforts, aimed at specifically related to the real estate catalyzing sustainable approaches to urban sector. livelihoods through Public, Private and IBC Implementation (2016): The Insolvency Community Partnership (PPCP). and Bankruptcy Code (IBC) offered a new Cost of construction of shelters for urban avenue for resolving financial distress in homeless is fully funded under the real estate. By March 2024, over 1,500 real Scheme. estate companies were admitted into Funding is shared between the Centre and insolvency proceedings, representing 21% the States in the ratio of 75:25. For North of all cases. Eastern and Special Category States, this The IBC process allowed ratio is 90:10. homebuyers to be treated as Intended beneficiary: Urban poor (street financial creditors, giving them a vendors, slum dwellers, homeless, rag voice in insolvency proceedings pickers), unemployed, differently-abled. through the Committee of Creditors (CoC). Web portal PAISA (Portal for Affordable Credit and Interest Subvention Access) a Government Initiatives – SWAMIH Fund: centralized electronic platform for Launched in 2019, the Special Window for processing interest subvention on bank Affordable and Mid-Income Housing loans to beneficiaries has been developed (SWAMIH) is an Alternative Investment under the scheme. Fund (AIF) aimed at completing stalled housing projects. Insolvency in Real Estate As of April 2024, the fund has Pre-2016 Situation: Homebuyers of stalled delivered over 32,000 homes and projects could only seek recourse through plans to deliver 20,000 homes Consumer Forums under the Consumer annually for the next three years. Protection Act, 1986. Reforms and Judicial Innovations: However, this route saw limited success, with minimal case Homebuyers as Creditors: Reforms resolutions despite the high volume in 2018 allowed homebuyer of complaints, leaving many investments to be considered projects stalled and funds blocked. financial debt, giving them direct participation in the CoC. Introduction of RERA (2016): The Real Estate (Regulation and Development) Act, Reverse CIRP (Corporate 2016, provided a dedicated mechanism for Insolvency Resolution Process): homebuyers, enhancing transparency and Introduced to allow stalled projects accountability in the real estate sector. to continue while undergoing insolvency proceedings, focusing It aimed to protect buyers by on completing projects rather than ensuring timely delivery of projects liquidating assets.  Project-Specific Resolutions: Non-availability of right quantity of Enabled targeted resolutions for land, at right place, at right time specific projects within the same and at right price remains the company, helping to avoid greatest roadblock in creating large dragging all projects into stock of affordable housing in all insolvency and protecting urban settlements. unaffected projects. Adoption of Innovative and state of art Impact on Financial Sector: The architectural designs combination of IBC resolutions and Optimum Utilisation of Vacant liquidity support from SWAMIH has Government Land improved bank balance sheets, enhancing The public sector needs to improve its their capacity to extend further credit and systems for planning and providing support economic activities. infrastructure, such as roads, sewage Way Forward disposal, solid waste and water. Need robust support from the financial An efficient dispute redressal mechanism institutions – especially NBFC and HFC as is required to release funds locked in these agencies make upto 40% of financing disputes. requirements in affordable housing Real-time public transport information. segment. Identifying innovative financing streams Understanding the Future Urban Context for infrastructure development. Government of India, should Development of focused approach for immediately set up a High climate resilience; and exploring alternate Powered Group of Experts on the mobility solutions. pattern of National Commission of Urbanization , with a mandate to Fulfilling social commitments towards study in detail and make balanced and equitable development recommendations regarding the future pattern of urbanization in India Prioritizing Regional Planning to minimize Rural- Urban Migration Identifying Right Beneficiaries Minimizing Multiple ownership of Housing Making Affordable Housing Integral part of Corporate Social Responsibility Land Bank