Mumbai model to help build self-financing cities in Andhra Pradesh

India is undergoing a rapid urban transformation, with its cities projected to house over 600 million people by 2030. This unprecedented growth presents both immense opportunities and significant challenges, particularly concerning infrastructure, housing, and financial sustainability. It is against this backdrop that the recent initiative by Andhra Pradesh to study Mumbai's urban development model becomes highly relevant.

Andhra Pradesh, having undergone bifurcation in 2014, faces the unique challenge of developing a new capital city and fostering robust urban centers from the ground up. This necessitates innovative approaches to urban planning and financing. The state’s delegation, in its two-day tour of the Mumbai Metropolitan Region (MMR), focused on understanding advanced practices in regional governance, land-based financing, transit-oriented development (TOD), and slum redevelopment. Mumbai, as India's financial capital and one of the most densely populated urban agglomerations globally, offers a wealth of experience in managing complex urban issues and financing large-scale projects.

Key stakeholders in this exchange include the Andhra Pradesh State Government, which is keen on adopting sustainable urban development strategies, and various urban development bodies within Andhra Pradesh, such as the Andhra Pradesh Capital Region Development Authority (APCRDA). On the Mumbai side, the Mumbai Metropolitan Region Development Authority (MMRDA) is a crucial entity. MMRDA is known for its comprehensive regional planning, infrastructure development, and innovative financing mechanisms. The Central Government of India is also an indirect stakeholder, as it promotes balanced urban development through various missions and policies. Ultimately, the citizens and urban dwellers in both regions are the primary beneficiaries or affected parties, as these policies directly impact their quality of life, access to services, and housing.

This initiative holds profound significance for India. Firstly, it highlights the increasing emphasis on financially self-sustaining cities. Traditional reliance on central grants is insufficient for India's burgeoning urban needs. Land-based financing, which includes mechanisms like land pooling, transfer of development rights (TDR), and betterment levies, allows urban local bodies to generate revenue from the appreciation of land values due to public infrastructure investments. This reduces the burden on public exchequers and fosters local financial autonomy. Secondly, the focus on regional governance, exemplified by MMRDA, underscores the need for integrated planning across multiple municipal jurisdictions within a metropolitan area, ensuring coordinated development and efficient resource allocation. Thirdly, Transit-Oriented Development (TOD) is critical for sustainable urban growth. By concentrating development around public transport hubs, TOD reduces reliance on private vehicles, mitigates congestion, lowers pollution, and makes cities more accessible and livable. Lastly, slum redevelopment addresses the persistent challenge of informal settlements, promoting inclusive growth by providing dignified housing and improving living conditions for vulnerable populations, aligning with the goals of the Pradhan Mantri Awas Yojana (Urban).

Historically, urban planning in India has evolved from colonial-era master plans to more participatory and decentralized approaches. A pivotal moment was the enactment of the 74th Constitutional Amendment Act in 1992. This Act constitutionally mandated the establishment of Urban Local Bodies (ULBs) and devolved powers and responsibilities to them, including urban planning (Article 243W and the Twelfth Schedule). While the Act laid the foundation for decentralized urban governance, its full implementation and the financial empowerment of ULBs remain ongoing challenges. Subsequent central schemes like the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Smart Cities Mission, and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have further aimed to strengthen urban infrastructure and governance. The Mumbai model, with its robust regional authority and innovative financing, offers a practical example of how some of these constitutional provisions and policy goals can be effectively realized.

Looking ahead, the successful adaptation of Mumbai's model in Andhra Pradesh could have far-reaching implications. It could serve as a blueprint for other states grappling with similar urban development challenges, fostering inter-state learning and replication of best practices. Andhra Pradesh could potentially develop more livable, economically vibrant, and environmentally sustainable cities, particularly in its new capital region. However, challenges such as political will, effective land acquisition and management under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, ensuring public participation, and overcoming bureaucratic hurdles will be critical for successful implementation. The move towards self-financing cities represents a significant shift in India's urban development paradigm, promising a more resilient and prosperous urban future.

Relevant constitutional articles and policies include Articles 243P to 243ZG of Part IXA of the Constitution, which deal with Municipalities and urban local self-governance. The Twelfth Schedule enumerates the functions of municipalities, including urban planning and slum improvement. Policies like the Smart Cities Mission and AMRUT directly support infrastructure development and innovative financing, while the National Urban Policy Framework provides a broader vision for urban development in India.