2.5: Infrastructure, Urban Development & Connectivity

Ministry: Ministry of Housing & Urban Affairs (MoHUA).

Launch Year: June 2015.

Objective: To provide "Housing for All" in urban areas by 2024 (initially 2022, extended). Aims to provide pucca houses to all eligible urban households.

Target Beneficiaries: Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG - MIG-I & MIG-II, though CLSS for MIG was for a limited period and concluded in March 2021/22 for MIG-I/II respectively, EWS/LIG component continues).

Four Verticals/Components:

• In-situ Slum Redevelopment (ISSR): Using land as a resource with private participation to redevelop existing slums and provide houses to slum dwellers.
• Credit Linked Subsidy Scheme (PMAY-CLSS): Provides interest subsidy on home loans for EWS/LIG beneficiaries for acquiring/constructing new houses or enhancing existing ones. (CLSS for MIG has concluded).
• Affordable Housing in Partnership (AHP): Financial assistance to public/private sector for creating affordable housing projects (at least 35% of houses for EWS category).
• Beneficiary Led Construction/Enhancement (BLC/BLE): Financial assistance to EWS families for construction of new houses or enhancement of existing houses on their own land.

Features: Central assistance provided. Emphasis on women empowerment (house ownership in name of female head or jointly). Use of new/green technologies.

Challenges:

• Land Availability: Scarcity and high cost of land in urban areas.
• Quality Control: Ensuring quality of construction, especially in BLC and AHP.
• Urban Migration: Continuous influx of migrants puts pressure on housing.
• Beneficiary identification and eligibility verification.
• Slow pace of ISSR projects due to complexities.
• Last-mile infrastructure (water, sanitation, roads) for new housing projects.

Recent Developments: Scheme extended till December 2024 to complete already sanctioned houses. Focus on timely completion and quality.

Ministry: Ministry of Housing & Urban Affairs (MoHUA).

Launch Year: June 2015.

Objective: To promote cities that provide core infrastructure, a decent quality of life to its citizens, a clean and sustainable environment, and apply ‘Smart’ Solutions. Aims to drive economic growth and improve quality of life through comprehensive work on social, economic, physical and institutional pillars of the city.

Coverage: 100 cities selected through a competitive process.

Strategy:

• Area-Based Development (ABD): Focus on a specific area within the city for intensive development.
  • Retrofitting: Develop an existing area of more than 500 acres.
  • Redevelopment: Replace existing built-up environment in an area of more than 50 acres.
  • Greenfield Development: Develop a vacant area of more than 250 acres.
• Pan-City Solutions: Application of selected Smart Solutions to the existing city-wide infrastructure (e.g., smart waste management, intelligent traffic management, smart grids, integrated multi-modal transport).

Key Features:

• Use of technology (ICT) for smart solutions.
• Integrated Command and Control Centres (ICCCs): Act as the "nerve centre" for city operations, monitoring, and emergency response. Became crucial during COVID-19 management.
• Citizen participation in planning and implementation.
• Special Purpose Vehicles (SPVs) set up in each city for implementation.
• Focus on sustainable and inclusive development.

Challenges:

• Implementation Speed: Delays in project completion in many cities.
• Citizen Participation: Ensuring meaningful and continuous citizen engagement.
• Funding: Mobilizing resources beyond government grants (PPP, municipal bonds). Financial sustainability of SPVs.
• Capacity of ULBs and SPVs.
• Ensuring projects are genuinely "smart" and address core urban issues, not just technology showcases.
• Inter-agency coordination.

Recent Developments: Mission period extended till June 2024 to complete ongoing projects. ICCCs being leveraged for various city management functions.

(Cross-listed from 2.1.4 as it involves aspects of both rural and urban development, MoRD is nodal but MoHUA has linkages for urban amenities component)

Ministry: Ministry of Rural Development (MoRD).

Launch Year: 2016.

Objective: To develop a cluster of villages that preserve and nurture the essence of rural community life with focus on equity and inclusiveness, without compromising with the facilities perceived to be essentially urban in nature, thus creating a "Rurban" cluster. Aims to bridge the rural-urban divide.

Strategy: Identify and develop 300 Rurban clusters. Provide urban amenities (skill development, agro-processing, digital literacy, sanitation, piped water supply, solid/liquid waste management, roads, transport) while retaining rural ethos. Funding through convergence + Critical Gap Funding (CGF).

Ministry: Ministry of Housing & Urban Affairs (MoHUA).

Launch Year: January 2015. (Scheme completed in March 2019, but its impact and approach are relevant).

Objective: To preserve and revitalize the soul and unique character of the heritage cities in India. Aims to bring together urban planning, economic growth and heritage conservation in an inclusive manner.

Coverage: 12 cities initially selected (e.g., Varanasi, Amritsar, Ajmer, Mathura, Gaya, Warangal).

Focus: Development of core heritage infrastructure projects, linking heritage with urban planning, improving civic infrastructure around heritage sites.

Significance: Recognized the importance of heritage in urban development and tourism.

Lessons: Emphasized participatory planning and convergence with other schemes.

Launch Year: October 2021.

Objective: To provide a comprehensive digital platform for integrated planning and coordinated implementation of infrastructure connectivity projects across various ministries/departments (16 central ministries initially). Aims to break inter-ministerial silos.

Key Goals:

• Reduce logistics costs (from current ~13-14% of GDP to global benchmarks of ~8%).
• Improve infrastructure project execution by minimizing delays and cost overruns.
• Enhance India's global competitiveness.
• Attract investments and create employment.

Components/Pillars:

• Comprehensiveness: All existing & planned initiatives of various Ministries on one centralized portal.
• Prioritization: Prioritize projects through cross–sectoral interactions.
• Optimization: Identify critical gaps and optimize routes by leveraging technology.
• Synchronization: Ensure coordination of activities between different layers of governance.
• Analytical: GIS-based spatial planning and analytical tools for data-driven decision making.
• Dynamic: All Ministries will be able to visualize, review and monitor the progress of cross-sectoral projects through the GIS platform.

Institutional Framework: Empowered Group of Secretaries (EGoS) headed by Cabinet Secretary, Network Planning Group (NPG), Technical Support Unit (TSU).

Significance: A transformative approach to infrastructure planning and development, promoting a "whole of government" approach. Expected to lead to faster project clearances, better resource allocation, and creation of seamless multi-modal connectivity.

Dispute Resolution Mechanisms: Emphasis on faster resolution of inter-ministerial issues.

Launch Year: Announced 2019, report released 2020.

Objective: To provide a roadmap for infrastructure development in India for a five-year period (FY 2019-20 to FY 2024-25) with a projected investment of ₹111 lakh crore.

Sectors Covered: Energy, Roads, Urban Infrastructure, Railways, Irrigation, Rural Infrastructure, Social Infrastructure, etc.

Funding Model: Envisages funding from Central Government (39%), State Governments (40%), and Private Sector (21%).

Significance: Provides a long-term vision, helps attract investment, and improves project preparedness. PM Gati Shakti is expected to guide the implementation of NIP projects.

Monitoring: Through an online dashboard.

Ministry: Ministry of Road Transport & Highways (MoRTH).

Launch Year: 2017 (Phase-I approved).

Objective: An umbrella program for the highways sector that focuses on optimizing efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps.

Key Components (Phase-I):

• Development of Economic Corridors (~9,000 km).
• Inter-Corridor and Feeder Routes (~6,000 km).
• National Corridor Efficiency Improvement (~5,000 km).
• Border and International Connectivity Roads (~2,000 km).
• Coastal and Port Connectivity Roads (~2,000 km).
• Greenfield Expressways (~800 km).

Implementation: Through NHAI, NHIDCL, State PWDs.

Challenges: Land acquisition, environmental clearances, project financing, timely completion.

Implemented by: Dedicated Freight Corridor Corporation of India Limited (DFCCIL), under Ministry of Railways.

Objective: To create high-capacity, high-speed freight corridors exclusively for movement of goods, thereby decongesting existing railway network and improving freight transit times.

Key Corridors (under construction/operational):

• Eastern DFC (EDFC): Ludhiana (Punjab) to Sonnagar/Dankuni (West Bengal).
• Western DFC (WDFC): Dadri (Uttar Pradesh) to Jawaharlal Nehru Port Trust (JNPT) in Mumbai.

Significance: Crucial for improving logistics efficiency, reducing freight costs, and enabling faster movement of goods. Expected to boost manufacturing and exports.

Ministry: Ministry of Ports, Shipping and Waterways.

Launch Year: 2015.

Objective: To promote port-led development in the country by harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes.

Four Pillars:

1. Port Modernization & New Port Development: Enhancing capacity and efficiency of existing ports, developing new greenfield ports.
2. Port Connectivity Enhancement: Improving connectivity of ports to hinterland (road, rail, inland waterways).
3. Port-linked Industrialization: Developing coastal economic zones (CEZs), coastal employment units (CEUs).
4. Coastal Community Development: Skill development, fisheries development, coastal tourism.

Focus also on: Coastal shipping, inland waterways transport.

Significance: Aims to reduce logistics cost for EXIM and domestic trade, develop coastal regions, and create employment.

Ministry: Ministry of Civil Aviation.

Launch Year: 2017.

Objective: To make air travel affordable and accessible to the common man, especially in unserved and underserved regional airports. Aims to enhance regional air connectivity.

Mechanism:

• A market-based mechanism where airlines bid for routes.
• Viability Gap Funding (VGF): Provided to selected airlines to make operations on regional routes financially viable. VGF is shared between Centre and States.
• Concessions from Central/State governments and airport operators (e.g., reduced taxes on ATF, airport charges).
• Capping of airfares on RCS routes.

Significance: Improved air connectivity to Tier-II and Tier-III cities, promoting tourism and economic development in regions.

Challenges: Sustainability of operations on RCS routes once VGF period is over, airport infrastructure limitations in some regional airports, airline viability.

UDAN 5.0 (launched April 2023): Focus on shorter routes, smaller aircraft, helicopter routes.

Focus: Development of new greenfield airports (e.g., Navi Mumbai, Mopa-Goa, Jewar-Noida) and expansion/modernization of existing airports by Airports Authority of India (AAI) and through PPP mode.

Objective: To meet the growing demand for air travel, enhance airport capacity and passenger experience.

Krishi UDAN: Scheme to assist farmers in transporting agricultural products (especially perishables) on international and national routes to improve their value realization.

Ministry: Ministry of Communications (Implemented by Bharat Broadband Network Limited - BBNL, which is now merged with BSNL).

Objective: To provide broadband connectivity (initially 100 Mbps, scalable) to all 2.5 lakh Gram Panchayats (GPs) in the country. Aims to create a high-speed digital highway.

Phases:

• Phase-I (completed Dec 2017): Connected over 1 lakh GPs using underground optical fibre cable (OFC).
• Phase-II (ongoing): Aims to connect remaining GPs using an optimal mix of media (underground OFC, aerial OFC, radio, satellite). Includes last-mile connectivity to villages through Wi-Fi or other technologies from GPs.
• Phase-III (Future): Focus on state-of-the-art, future-proof network, including fibre between districts and blocks, and ring topology.

Funding: Universal Service Obligation Fund (USOF).

Challenges:

• Slow implementation pace, right-of-way issues.
• Ensuring quality and reliability of connectivity.
• Last-mile connectivity from GP to households/users.
• Maintenance of the network.
• Viability of service provision by TSPs/ISPs in rural areas.

Recent Developments: PPP model explored for operation and maintenance and last-mile utilization. Merger of BBNL with BSNL (2022) to leverage BSNL's expertise and infrastructure.

Ministry: Ministry of Communications.

Launch Year: December 2019.

Objective: To enable fast track growth of digital communications infrastructure, bridge the digital divide, facilitate digital empowerment and inclusion, and provide affordable and universal access to broadband for all.

Key Goals (by 2022, progress ongoing):

• Broadband access to all villages.
• High-speed internet access at affordable prices.
• Increase fibre optic cable footprint.
• Increase tower density.
• Develop a Broadband Readiness Index (BRI) for states/UTs.

Strategy: Focus on three principles: universality, affordability, and quality. Involves collaboration between government and private sector.

Significance: Provides a comprehensive vision for broadband penetration, complementing BharatNet.

Ministry: Ministry of Communications (Policy by DoT, framework by TRAI).

Launch Year: Framework approved December 2020.

Objective: To proliferate broadband through public Wi-Fi networks across the country. Aims to create a robust digital communications infrastructure and accelerate internet access.

Architecture: Involves four elements:

1. Public Data Office (PDO): Establishes, maintains, and operates WANI compliant Wi-Fi Access Points and deliver broadband services to subscribers.
2. Public Data Office Aggregator (PDOA): Aggregates PDOs and performs functions relating to authorization and accounting.
3. App Provider: Develops an App to register users and discover WANI compliant Wi-Fi hotspots and display them for accessing internet service.
4. Central Registry: Maintained by C-DoT. Records details of App Providers, PDOAs, and PDOs.

Features: De-licensed, unbundling of services. Aims to create a "PM-WANI ecosystem."

Significance: Expected to boost broadband penetration, especially in rural areas, create employment, and enhance ease of doing business. Low-cost alternative to mobile data.

Challenges: Ensuring quality of service, security, commercial viability for PDOs.

(Cross-listed from 1.3.4, deeper dive here on its pillars and scope)

Nodal Ministry: Ministry of Electronics and Information Technology (MeitY) (though it's a multi-ministerial programme).

Launch Year: July 2015.

Vision: To transform India into a digitally empowered society and knowledge economy.

Three Vision Areas:

1. Digital Infrastructure as a Core Utility to Every Citizen.
2. Governance & Services on Demand.
3. Digital Empowerment of Citizens.

Nine Pillars of Digital India:

1. Broadband Highways (e.g., BharatNet, NBM).
2. Universal Access to Mobile Connectivity.
3. Public Internet Access Programme (e.g., CSCs, PM-WANI).
4. e-Governance – Reforming Government through Technology (e.g., MyGov, UMANG, DigiLocker, eSign, National Scholarships Portal).
5. e-Kranti – Electronic Delivery of Services (covering health, education, agriculture, justice etc.).
6. Information for All (Open Data initiatives).
7. Electronics Manufacturing – Target NET ZERO Imports.
8. IT for Jobs (skilling in IT sector).
9. Early Harvest Programmes (e.g., Biometric Attendance, Wi-Fi in universities).

Impact: Significant improvements in e-governance service delivery, financial inclusion (DBT), citizen engagement. Boost to digital payments.

Challenges: Digital literacy, last-mile connectivity, cybersecurity, data privacy, ensuring inclusivity.

Digital India 2.0 / Next Phase: Focus on emerging technologies like AI, IoT, Big Data, cybersecurity.

Ministry: Ministry of Power.

Launch Year: November 2015.

Objective: Financial turnaround and operational improvement of power Distribution Companies (DISCOMs) in India.

Mechanism:

• States take over 75% of DISCOM debt (outstanding as of Sep 2015) and issue bonds in lieu. Balance 25% debt re-priced or issued as state-guaranteed DISCOM bonds.
• DISCOMs to undertake operational improvements like compulsory smart metering, feeder segregation, reduction in Aggregate Technical & Commercial (AT&C) losses, tariff rationalization.

Impact: Provided initial relief to DISCOMs, but long-term financial health remains a concern. AT&C losses reduced but still high in many states.

Challenges: Reluctance of states to raise tariffs, delays in operational improvements, continued political interference.

Successor/Reforms: Revamped Distribution Sector Scheme (RDSS) launched in July 2021 with an outlay of over ₹3 lakh crore over 5 years. Aims to improve operational efficiencies and financial sustainability of DISCOMs by providing conditional financial assistance for strengthening supply infrastructure, focusing on smart metering and AT&C loss reduction.

Ministry: Ministry of Power.

Launch Year: September 2017.

Objective: To achieve universal household electrification in the country by providing electricity connections to all un-electrified households in rural areas and all poor households in urban areas.

Features: Free electricity connections to poor households (identified using SECC 2011 data). For other households, connection provided on payment of ₹500 (recoverable in installments).

Implementation: Through DISCOMs. Solar Photo Voltaic (SPV) based standalone systems for un-electrified households in remote/inaccessible areas.

Impact: Significant progress towards 100% household electrification reported (though quality and reliability of supply remain issues in some areas).

Complementary Scheme: Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) focused on rural electricity distribution infrastructure (feeder separation, strengthening sub-transmission and distribution).

Ministry: Ministry of Power.

Launch Year: 2015.

Objective: To plan and monitor implementation of policies and programmes related to Smart Grid activities in India. Aims to bring efficiency in T&D sector, enable better load management, reduce losses, and integrate renewable energy sources.

Key Components: Smart metering, grid modernization, demand response programs.

Significance: Crucial for modernizing India's power grid and making it more resilient, efficient, and capable of handling increasing share of renewable energy.

Ministry: Ministry of Petroleum & Natural Gas (MoPNG).

Launch Year: May 2016.

Objective: To provide clean cooking fuel (LPG) to women from poor households, protecting their health from hazardous effects of traditional cooking fuels (firewood, coal, cow-dung cakes) and reducing indoor air pollution.

Target Beneficiaries: Initially adult women from BPL households; later expanded to include more categories (SC/ST households, PMAY-G beneficiaries, AAY, forest dwellers etc.).

Features: Deposit-free LPG connection provided to eligible households. Financial assistance of ₹1600 per connection (now ₹2200 for PMUY 2.0). Option for free first refill and stove under PMUY 2.0 (Ujjwala 2.0 launched Aug 2021).

PMUY 2.0: Aims to provide an additional 1 crore LPG connections. Focus on migrant families. Simplified enrollment process.

Impact: Significant increase in LPG coverage. Improved health of women and children. Environmental benefits.

Challenges: Sustained use of LPG (affordability of refills), last-mile availability of cylinders, behavior change. Government provides targeted subsidy on LPG cylinders for PMUY beneficiaries (e.g., ₹200 per cylinder for up to 12 refills/year announced, then increased to ₹300 per cylinder in Oct 2023).

Ministry: Ministry of Petroleum & Natural Gas (MoPNG).

Implemented by: GAIL (India) Ltd.

Objective: To provide clean energy (Piped Natural Gas - PNG for households, CNG for transport, gas to industries/fertilizer plants) to eastern states of India (Uttar Pradesh, Bihar, Jharkhand, Odisha, West Bengal). Aims to connect eastern India to the national gas grid.

Features: Development of a major gas pipeline network and ancillary infrastructure (City Gas Distribution networks).

Significance: Promotes cleaner fuel, boosts industrial development, creates employment in eastern India. Part of broader effort to increase share of natural gas in India's energy mix (from ~6% to 15% by 2030).