Parliament Question: Bottlenecks in Urban Development Sector

O.I.H. GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 778 TO BE ANSWERED ON JULY 23, 2026 BOTTLENECKS IN URBAN DEVELOPMENT SECTOR NO. 778 SHRI SANJAY HARIBHAU JADHAV: Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state: (a) the details of the main bottlenecks in the urban development sector such as delays in completion of housing projects, poor urban infrastructure, rising cost of urban living and issues relating to waste management and water supply in the cities of Maharashtra; and (b) the details of the steps taken under various central schemes such as Pradhan Mantri Awas Yojana-Urban (PMAY-U), Smart Cities Mission (SCM), Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 and Swachh Bharat Mission-Urban (SBM-U) along with the initiatives taken to promote sustainable urban mobility, affordable housing and ease of living through digital governance? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU) (a) and (b): As per the provisions of Article 243W of the Constitution, in conjunction with the Seventh and Twelfth Schedules, matters relating to urban development fall within the purview of States/Urban Local Bodies (ULBs). However, Ministry of Housing and Urban Affairs (MoHUA) provides programmatic support to the States/Union Territories (UTs) in their urban development agenda through its various flagship Missions/Programmes viz. Atal Mission for Rejuvenation & Urban Transformation (AMRUT) 2.0, Swachh Bharat Mission - Urban (SBM–U) 2.0, Pradhan Mantri Awas Yojana - Urban (PMAY-U), PM e-Bus Sewa, etc. …2/--2- Through these Missions/Schemes, the Central Government approves the State Plans and provides the Central Assistance (CA) to the States. The projects are selected, designed, approved and executed by the States/UTs and the cities. The States/UTs release funds to the cities/districts. Major challenges faced by the implementing agencies include non- availability of encumbrance free land, delay in getting statutory clearances/No Objection Certificates (NOCs), inadequate provision of other related infrastructure by State/UT/ULB, shortage of experienced and technically skilled manpower, etc. In order to expedite the implementation of the projects under various flagship Missions/Programmes of the Ministry, various institutional frameworks like provisions of progress reports, review by undertaking field visits have been put in place. Moreover, periodic review meetings in States/UTs and through video conferences are also held for the purpose. Besides, the State Governments also monitor the progress of the Missions with a view to expedite their implementation. AMRUT 2.0: Under the Mission, the States/UTs are supported for augmentation/ improvement of basic infrastructure in the sectors of water supply, sewerage and septage management, water body rejuvenation and parks and green spaces. The water supply and sewerage/ septage projects taken-up under AMRUT 2.0 are large infrastructure projects with long gestation periods. As reported by the States/ UTs from time to time, some of the major issues faced in implementation of the projects include land issues, statutory clearances, skilled manpower, etc. Under AMRUT 2.0, 8,777 projects worth ₹1,97,191.86 crore submitted by States/UTs have been approved which includes 3,572 water supply projects worth ₹1,18,968.38 crore, 605 Sewerage & Septage Management projects worth ₹71,133.01 crore, 2,951 water body rejuvenation projects worth ₹6,003.34 crore and 1,649 parks projects worth ₹1,087.12 crore. …3/--3- For digital monitoring, energy efficiency, and emergency preparedness, the Mission promotes the adoption of smart elements/ Supervisory Control and Data Acquisition (SCADA) based operations in water supply and sewerage/ septage projects. SCADA-based systems are promoted for real-time monitoring and control. Digital monitoring improves fault detection, pressure management, and emergency response. Energy-efficient pumping and automation enhance system reliability. SBM-U: To meet the sanitation related demand of the urban population, Government of India launched SBM-U on October 2, 2014 with the objective of Open Defecation Free (ODF) and for scientific processing of Municipal Solid Waste (MSW) generated in the urban areas, including Maharashtra, of the country. To continue the support to cities, SBM-U 2.0 has been launched on October 1, 2021 for a period of five years with a vision of achieving safe sanitation and scientific management of all fractions of waste including safe disposal in scientific landfills, legacy dumpsite remediation generated in the urban areas, including Maharashtra, of the country. In addition, MoHUA provides handholding support to the States/UTs from time to time to resolve issues and eliminate bottlenecks for timely completion of projects. The SBM-U leverages technology to enhance sanitation and waste management across urban India. Digital tools and solutions remain core enablers to monitor the progress and realize the value outcome of programmatic components. The selection of treatment technologies is open to ULBs/State Governments, allowing them to choose any proven technology. ULBs may adopt suitable technologies including following technologies for management of municipal solid waste: • bio-methanation, microbial composting, vermi-composting, anaerobic digestion or any other appropriate processing for bio- stabilisation of biodegradable wastes; • waste to energy processes including Refuse Derived Fuel (RDF) for combustible fraction of waste or supply as feedstock to solid waste based power plants or cement kilns …4/--4- MoHUA is promoting digitalisation of desludging services across all urban areas. Under MoHUA’s National Urban Digital Mission, the ‘Urban Platform for deliverY of Online Governance (UPYOG)’ platform offers ‘Desludging Service/Faecal Sludge Management’ digital module. States/UTs can digitalize the entire desludging process through this module. PMAY-U: ‘Land' and 'Colonization' are State subjects. Therefore, schemes related to housing for their citizens are implemented by States/UTs. However, MoHUA supplements the efforts of States/UTs, by providing Central Assistance for pucca houses to eligible urban beneficiaries across the country under PMAY-U since 25.06.2015. Based on the learnings from the experiences of implementation of PMAY-U, MoHUA has revamped the scheme and launched PMAY-U 2.0 'Housing for All' Mission with effect from 01.09.2024 for implementation in urban areas across the country to construct, purchase and rent a house by eligible beneficiaries at affordable cost, for one crore additional eligible beneficiaries through four verticals i.e., Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Interest Subsidy Scheme (ISS). PMAY-U & PMAY-U 2.0 are demand driven schemes. Selection of beneficiaries, under various verticals preferred by the beneficiaries, formulation of projects and execution including allotment of completed houses to the eligible beneficiaries are done by States/ UTs. The Ministry conducts regular reviews with the States/UTs to monitor progress of implementation of the scheme and expedite completion of sanctioned houses within the stipulated timeline. In order to enhance the affordability of the houses, States/UTs share is mandatory under PMAY-U 2.0. Apart from their minimum share, the States/UTs may also provide additional top-up share to increase affordability. PMAY-U 2.0 supports States/UTs for formulation and implementation of ‘Affordable Housing Policies’ to incentivize private sector participation through appropriate regulatory, fiscal and institutional measures to make the housing stock affordable in urban areas. The Scheme Guidelines can be accessed at https://pmay-urban.gov.in. …5/--5- Further, Government of India has restructured Credit Risk Guarantee Fund Trust for Low-Income Housing (CRGFTLIH) for Economically Weaker Section (EWS) /Low Income Group (LIG). The scheme aims to enhance the credit accessibility and worthiness of eligible households by extending the guarantee on the housing loan taken from Scheduled Commercial Banks, Housing Finance Companies (HFCs) etc. It also aims to help eligible beneficiaries of PMAY-U 2.0 belonging to EWS/LIG through affordable home loans from financial institutions to complete their homes on time, thereby directly contributing to the program’s objectives. PM e-Bus Sewa: To promote sustainable urban mobility, Government of India has launched the PM e-Bus Sewa Scheme, on 16th August 2023. As on 10.07.2026, all the 10,000 air-conditioned e-buses have been sanctioned for 116 cities across 26 States/UTs. Under the Scheme, one-time central assistance for development of associated infrastructure (Behind-the Meter Power & Civil) is being provided to the cities along with CA for bus operations to augment, formalize and strengthen the public transport system. *****