Chapter 1: Introduction
BACKGROUND
The population of India is 1027 million with approximately 28% or 285 million living in urban centers and it is expected that the share of urban population will increase to about 40% of total population by the year 2021. This is in sharp contrast to only 60 millions (15 percent) who lived in urban areas in 1947 when the country became independent. During the last fifty years the population of the country has grown two and half times, while the urban India has grown by nearly five times. The positive role of urbanization has often been over-shadowed by the deterioration in the physical environment and quality of life in the urban areas caused by widening gap between demand and supply of essential services and infrastructure. It is further associated with many problems, such as high levels of poverty, environmental stress, risks to productivity, high health costs, and lack of access to basic services, such as water supply, sanitation, and housing. The insufficient employment opportunities and inadequate income has also given rise to urban poverty. Hence, the efficient performance of urban economy depends upon availability of infrastructure and basic services such as transport, roads, water supply, sanitation and solid wastes management etc.
Since the level of investments required for these sectors (transport, roads, water supply, sanitation and solid wastes management etc.) is of a very high order it is felt that the national level initiative is required that would bring the Central, State and Urban governments together to ensure proper flow of necessary funds to bring about improvements in these sectors to an acceptable levels in tune with the international standards. The government also recognizes that urban issues require integrated approaches that specifically target the poor, promote economic development, treat cities as a living ecosystem and foster the involvement of private sector and civil society.
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