To Promote Planned Development, States Asked to Convert Urban Areas into Statutory ULBs

To promote planned urban development in the country, Ministry of Urban Development has asked 28 States to take immediate and necessary action to convert 3,784 Census Towns into statutory Urban Local Bodies.

Through urban local bodies, central government aimed planned and coordinated infrastructure development in these towns to enhance revenues and efficient delivery of services to citizens leading to the overall growth of economic activities.

Mr. Rajiv Gauba, Secretary of Urban Development said, “The opportunity of planned urban development might get lost if unplanned construction and ad hoc provisioning of infrastructure is allowed to take place over a long time”.

The latest United Nations report says, India is projected to add 300 million new urban populations by 2050, which indicate country need planned and organised urban development to adjust rising urban population.

Government explains, a census town is an area with urban characteristics like a minimum population of 5,000, at least 75% of the male main working force engaged in non-agricultural activities and population density of at least 400 persons per sq.km. As per 2011 Census, there are 3,784 Census Towns as against 1,362 in 2001.

As per the guidelines of the 14th Finance Commission, converting Census towns into statutory ULBs entitle to get central assistance.

State-wise distribution of Census Towns are: West Bengal-780, Kerala-461, Tamil Nadu-376, Maharashtra-279, Uttar Pradesh-267, Andhra Pradesh and Telangana-228, Jharkhand-188, Gujarat-153, Karnataka-127, Assam-126, Odisha-116, Madhya Pradesh-112, Rajasthan-112, Punjab-74, Haryana-14, Bihar-60, Goa-56, Uttarakhand-42, Jammu & Kashmir-36, Tripura-26, Manipur-23, Chattisgarh-14, Meghlaya-12, Nagaland-7, Himachal Pradesh-3, Arunachal Pradesh-1 and Mizoram-0.

This organised development would change the entire infrastructure of these 3,784 towns and will provide the necessary basic amenities to the people. Along with planned housing construction, it will also lead to the organised retail market and shopping malls in these cities in the future.

As per the report of UN on increasing urban population of India, these towns will also turn the big market place for big real estate companies who generally invest in tier-I and tier-II cities.

When there is infrastructure development, there is scope for various sectors which directly or indirectly dependent on development, one of the sectors is construction equipment, which plays a pivotal role in infra development.

As development kick-off in these towns, it is expected that huge number of construction machineries will be required and sell of the construction equipment will rise, which indicate positive sign for the construction equipment manufacturers.

Source: Information has been obtained from government press note

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