Estimating the investment requirements for urban infrastructure services – Report of the High Powered Expert Committee (HPEC)

This report on Indian urban infrastructure and services is an outcome of the High Powered Expert Committee (HPEC) chaired by Isher Judge Ahluwalia set up by the Ministry of Urban Development in May, 2008 for estimating the investment requirement for urban infrastructure services. It is an inevitable outcome of the faster rates of growth to which the economy has now transited. Indeed, urbanisation is itself a process that will support growth. The Committee has made recommendations on how to deal with these challenges of urbanisation.

The Committee has held several meetings with officials from the Government of India, state governments and local governments and also met with academicians and other stakeholders such as Asian Development Bank with interest and expertise in Indian urban issues.

The report argues that the challenge of managing urbanisation will have to be addressed through a combination of increased investment, strengthening the framework for governance and financing, and a comprehensive capacity building programme at all levels of government. The Committee has projected very large investment requirements for providing public services to specified norms and also supporting the growth process. The challenge of financing these investments is inextricably linked with the challenge of governing the cities and towns of India.

As regards water related infrastructure the report states that "inadequate coverage, intermittent supplies, low pressure, and poor quality are some of the most prominent features of water supply in the cities of India". With rapid increase in urban population and continuing expansion of city limits, the challenge of delivering water in Indian cities is growing rapidly. The state of water service delivery in urban areas of India compared with the available evidence in other countries is summarised in a box in the report. 

The Committee has proposed a framework for governance and financing which will enable the municipal corporations, municipalities and nagar panchayats to discharge their responsibilities of delivering public services of specified standards to all including the poor. In doing so, they will have to be accountable to the people. Both the Government of India and state governments will have to play a major role in making this happen.