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URDPFI GUIDELINES

VOLUME I & II

MANIKA GAUTAM (20BAR007)


PRERNA SINGH (20BAR008)
SAKSHI GUPTA (20BAR013)
DIVYANSHU (20BAR025)
KARTIKEY (20BAR035)
DEEKSHA NEGI (20BAR056))
TABLE OF CONTENTS

01 INTRODUCTION
Need for Revision of UDPFI Guidelines1996, Recommended
planning system for India, overall guiding Sustainable Urban
and Regional planning aspects of the guidelines

02 PLAN FORMULATION
Planning Process, Contents of various level of plans

03 PROJECTION OF SECTION OF SOLIDS -3


Land assembly, fiscal resource mobilisation, good
governance, institutional set‐up and key institutional
reforms

04 State Level Legal Framework – Comparative Analysis Overview _


Karnataka
1.1. URBANISATION TRENDS
Globally, the wealthier and more prosperous nations are those that are more urbanized.
The same pattern is also present in Indian States. At the same time, urbanization is thought to
be linked to poorer quality of life, pollution, and traffic. This would necessitate creating an
urban development paradigm that would result in more prosperity without the associated
drawbacks. Such a framework has been developed in part by the URDPFI.
Censuses provide helpful indicators for the patterns in India's urbanization. Greater Mumbai,
Delhi, and Kolkata are the three metropolitan agglomerations whose populations have
surpassed the ten million mark, though at a significantly slower rate of increase. The number of
cities with a million or more residents has increased from 35 to 53, and five of those cities—
Chennai, Bengaluru, Hyderabad, Ahmedabad, and Pune—have reached a population of more
than 50 lakh. 70% of all urban residents live in Class I cities with a population of one lakh or
more, while 42.6% of all urban residents live in cities with a population of one million or more.
Even more intriguing is the fact that the cities with lower orders of population have exhibited
higher rates og growth of population.
Non-statutory towns: The urbanization trend is strikingly mirrored in the growth of towns that house the expanding urban population. There are 7933 towns, comprising 4041 Statutory towns and
3892 Census towns, according to the 2011 Census. However, it is noteworthy that while the number of non-statutory towns has expanded by 186%, the number of statutory towns has only increased
little, by 6.4%. New towns are undoubtedly growing quickly, but because they have not yet received town status, they are excluded from planned spatial development and are more likely to
experience haphazard growth. This would necessitate a serious effort to apply the URDPFI Guidelines' principles to even non-statutory municipalities, particularly in a regional setting where the
spatial planning

1.2. FRAMEWORK FOR A RENEWED PLANNING SYSTEM


The framework for effective Spatial Planning needs to incorporate certain major issues, which, subject to local variations, can be listed and categorised as follows:
Current principles, practises and issues in preparation and implementation of plans at National, Regional and Local levels so as to harmonise the same drawing on the best practices.
Analysis of the latest trend in the Urban Development scenario.
Address relevant issues related to peri‐urban areas and urban planning regions.
Compilation and analysis of the relevant data available from Census and other sources.
Urban development issues, especially in newly formed states and backward areas.
Need for uniformity in planning system in the country.
Streamlining of planning practices.
Requirement of coordinated efforts between Departments/
Authorities.
1.3. CLASSIFICATION OF URBAN SETTLEMENTS
Legal, funding and decision making aspects in implementation of The Census of India 2011 uses the following classification for urban areas:
plans and projects. 1. All locations that have a municipality, corporation, cantonment board, or other recognized
Promoting rapid urbanisation and responding to the impact of local committee.
climate change. 2. Any other locations that meet the following requirements:
Economic aspects of plan implementation while preparing land use At least 5,000 people must live there, at least 75% of men in the main working population must
development plans. be involved in non-agricultural work, and at least 400 people must live there every square
Promotion of sustainable development with focus on planning for kilometer.
People, Environment and Financial viability principles. Statutory Towns are the first class of urban areas. The concerned State/UT Government notifies
Inclusive planning, people’s participation and specific issues these towns in accordance with the legislation, and they have local organizations like the
relating to the Municipal Committees, Municipal Corporations, Municipalities, etc., regardless of their
elderly, women, the differently abled and the weaker sections of demographic makeup as of December 31, 2009. Census Towns make up the second group of
the society. towns. Table 1.1 shows the population trends for statutory towns and census towns.
Attention to Transit Oriented Development (TOD).
Planning for and integration of Peri‐urban areas in the planning The classification of urban settlements adopted for URDPFI is indicated in Table1.2
process.
Influence of industrial areas, such as SEZs, on spatial and urban
development.
CRZ policy and Coastal management in case of coastal cities.
Special issues of urban development in hill areas.
Provisions for Affordable housing.
Safe disposal, mainly by way of recycling and reuse, of solid and
other wastes.
Adoption of geo‐spatial data and technology in the planning
process.
Defining measureable benchmarks and milestones for the plan. Transitional towns, as mentioned in the 74th CAA, are small towns transitioning from rural to
Arrangements for periodic monitoring and evaluation of the urban areas. Agglomeration of urban nodes is observed in Metropolitan cities II and Megapolis.
implementation of the Plan. Conurbation of settlements is larger, with populations over 5 Crore. URDPFI Guidelines apply to
Integration of sector specific plans among each other and in overall all human settlements, including municipalities, cantonments, Special Economic Zones, and
spatial planning. villages.
The literature review on planning
systems in India and abroad reveals
that each country has its own
1.4. RECOMMENDED PLANNING SYSTEM
system, tailored to specific needs,
traditions, and legal arrangements.
The recommended urban
development planning systems
consider both statutory and non-
statutory plans, such as urban
revitalization, city development,
comprehensive mobility, city
sanitation, and coastal zone
management plans, based on
planning needs and funding
schemes. Additionally, regional
plans covering larger land areas are
included across the planning scale.
The Table1.3
below, which has been designed
based on stakeholder
consultations,
suggests the planning system
framework on the basis of ‐
􀂃 Hierarchy
􀂃 Spatial extent
􀂃 Scale of planning
􀂃 Details provided in the plan
􀂃 Function and their specialty
1.5. SCOPE AND PURPOSE OF VARIOUS PLANS
The need and roles for the specific plan category, namely, Perspective Plan, Regional Plan, Development Plan, Master Plan, Local Area Plan, Special Purpose Plan and Annual Plan, thereby resolving
gaps in the planning system is detailed in the following section.

PERSPECTIVE PLAN REGIONAL PLAN DEVELOPMENT PLAN MASTER PLAN TO BE LOCAL AREA PLAN
A vision for a region is crucial for policy Regional planning is crucial for A development plan is a statutory plan
REFERRED AS Micro-planning should shift to local area
framework, guiding growth direction, sustainable development of human that provides detailed strategies and DEVELOPMENT PLAN plans, promoting decentralization and
resource potential, and innovation settlements. It can be classified into physical proposals for policies based on The term "Development Plan" is used improving development plans
adoption. It integrates a broad-level three heads: Administrative Regions, economic and social needs, resources, differently in states, with some referring implementation. These plans should
plan with a regional plan, guiding policy Investment Regions, and Special and priorities. It should be definite, to integrated multi-sector plans like guide land development, conservation,
formulation and preparation of a Regions. The principles for spatial supported by an implementation District Development Plans and others and infrastructure improvements, while
perspective plan. This plan, based on planning should be extended to all strategy, and allow local authorities to to statutory land use plans approved by enhancing residents' health and safety,
resource mapping and analysis, areas, whether administered by the implement development. Plans should local authorities. Many states prefer to economic development, and quality of
addresses long-term infrastructure State Government or special laws. be in phases for periodic reviews and replace "Master Plan" with living. They should comply with
development and resource mobilization, Regional planning authorities should be revisions. "Development Plan." Structure Plans can government policies and facilitate
covering social, economic, notified for regions with seamless be used for urban infrastructure project formulation. The plans should
environmental, and spatial connectivity of people and economic planning. also outline land reservation,
development goals. activities. The regional plan should be construction, and reclamation, and
comprehensive, integrating urban provide a framework for recovery of
nodes with investment regions and associated costs through betterment
special regions. States undertake urban charges, development rights charges,
and regional planning under various and user charges.
statutes, focusing on balanced
development, hierarchy of settlements,
connectivity networks, land utilization,
resource mobilization, environmental
protection, and disaster risk
management.
SPECIAL PURPOSE PLAN ANNUAL PLAN PROJECT / RESEARCH INTER‐RELATIONSHIP AMONG VARIOUS PLANS
Special Purpose Plans are prepared for An Annual Plan is a financial document Projects are derived targets from plans Figure1.1 illustrates the interrelationship of different plans related to land
specific development sectors based on prepared by a local authority to identify focusing on execution, investments, costing, development at various levels, from national to transitional urban areas. A
their economic and environmental new and ongoing projects for and returns. They are working layouts with Perspective Plan is a formulation of development strategy at the State or
importance. These plans are within the implementation each financial year. It supporting infrastructure and documents, regional level, detailing regional planning authorities, urban/local area
Regional, Development, or Local Area considers the previous year's including cost, source of fund, and recovery. planning authorities, and regulatory authorities. Regional Plans are prepared
Plans of the local authority and can be performance, priorities, policies, and Projects can be for any area, activity, land at district and metropolitan region levels, aggregating plan proposals for
developed under various Central and proposals. The plan provides resource use, or infrastructure development. They can consolidation and integration of physical and fiscal planning efforts. The
State Government grants to encourage requirements, funding sources, and be prepared by agencies like government, Development Plan and Mobility Plan should be integrated for transportation-
reforms, scale up civic amenities, focus links with the budgetary process. It semi-government, private, or individual. oriented spatial planning. Urban plans should not be considered in isolation,
on urban renewal, supplement budget serves as a mechanism for monitoring Research, such as traffic surveys, is crucial as each urban center is part of a regional system. Funding schemes like
documents, and promote sustainability progress of development plans and for making decisions in plan formulation. JnNURM and RAY play a significant role in the new planning system. Project
and heritage protection. projects. reports and Annual plans are necessary requirements of the planning
system, which are directly interrelated with the entire planning system.
1.6. Sustainable Urban and Regional Development
The urban and regional plans, in all its forms and dimensions, should focus on sustainability, from financial, social, governance/ managerial and
environmental. Financial sustainability is to be achieved by working out the details of the capital and operational costs and the options to recover
the same adequately.

Social sustainability relates to inclusion, i.e., the project should provide benefit to all residents in the influence zone equitably. It should also be
based on identification of the gainers and losers from the project and to ensure that the gainers are subject to development and other charges
that could be passed on in an appropriate form to the losers.

Governance/ managerial sustainability would require the project to meet all the statutory and regulatory requirements and also to have adequate
capacities developed with the local authorities concerned for maintaining the project effectively and efficiently throughout the project lifecycle at
reasonable costs.
Environmental sustainability would require, for instance, zero land‐fill for solid waste management projects. In fact, each project should aim at
improvement in the environment, rather than on ‘minimising the damage’. The sustainability issues have been highlighted in numerous policy
documents including the Twelfth Five Year Plan, which recommends for strengthening urban governance structure/ Local Bodies, augmenting the
soft infrastructure including system capacities, inclusive governance, environmental sustainability and enhanced attention to urban renewal as
well as to regional approach to planning. These frameworks have been further detailed in the National Mission for Sustainable Habitat.
1.7. STATE LAND UTILISATION POLICY 1.7.2. TRANSIT ORIENTED DEVELOPMENT (TOD)
Land transport integration would involve two mutually supportive processes:
The (draft) National Land Utilisation Policy, 2013 takes into consideration the predominant ƒ Organizing the physical form and land use pattern of a city such that the travel demands, trip
(existing or scientifically established) functions of land serving the needs of people, lengths and travel times are minimized, while accessibility, comfort and efficiency are
environment as well as different sectors of economy and development. maximized. ƒ Organizing all systems of transportation from pedestrian pathways to mass
transit systems such that they integrate well with each other and enable the harmonious
The following six types of LUZs are indicated: establishment of land use around them, in the process generating a city form that is
1. Predominantly Rural and Agricultural Areas sustainable.
2. Areas Under Transformation
3. Predominantly Urban Areas Network & Connectivity
4. Predominantly Industrial Areas Last mile connectivity
5. Predominantly Ecological Areas, Landscape Conservation & Tourism Areas, Heritage Areas Pedestrian access
6. Major Hazard Vulnerable Areas High Density, Mixed­Income Development
Streetscape Design
1.7.1. LANDUSE TRANSPORT INTEGRATION Promote Place Making to Create a Sense of Place
Direct Business to TOD Locations
Land transport integration would involve two mutually supportive processes:
Public facilities at nodes of public transport
ƒ Organizing the physical form and land use pattern of a city such that the travel demands, trip
Function/Activities at nodes of public transport
lengths and travel times are minimized, while accessibility, comfort and efficiency are
maximized. ƒ Organizing all systems of transportation from pedestrian pathways to mass
transit systems such that they integrate well with each other and enable the harmonious
1.7.3. FLEXIBILITY IN PLANS
establishment of land use around them, in the process generating a city form that is Statutory landuse plans have implications on the land use and development control
sustainable2. mechanism. Despite statutory backing, due to the controlled conventional (rigid) approach,
Development plans are not implemented fully and meaningfully. Plan proposal estimates have
not kept pace with the growing requirement of cities or the aspirations of the city dwellers.
1.7.4. LAND TO GENERATE FUND FOR INFRASTRUCTURE DEVELOPMENT
The URDPFI Guidelines suggest the ways to augment financial resources for implementation of
the development/ spatial plan through various innovative sources of revenue generation.
Formulation of spatial plan should be such that the plan is able to create economic growth and
which could fund the implementation of the plan. Among the land development mechanism,
town planning schemes followed in the states of Maharashtra and Gujarat is a successful case to
demonstrate financial sustainability (cost recovery) of the plan.

1.7.5. SUSTAINABLE WASTE MANAGEMENT


International agencies working on zero waste have claimed that recycling rates of 75% and plus
have been achieved by municipalities large and small throughout the world. The ‘Zero
waste’/‘Zero Land‐fill’ concept is gaining ground as being practicably achievable in Indian cities
too. Indian cities have the advantage of significant recycling and reuse in the solid waste
management system. Those can be improved and coordinated with the view to moving towards
‘Zero waste scenarios’

1.7.6. INCLUSIVE PLANNING


Development plan / Local area plans in India have not effectively earmarked adequate land and
spaces for the urban poor / informal sector for residents or other activities at affordable rate. In
new townships and new developments of IT / BPO Townships, Satellite Townships, SEZ, etc.,
where the space standards are normally affluent, informal sector is significantly gaining
recognition. Planning norms for urban street vendors, the marginalised and the informal sector
to be adopted and developed from this guideline.
1.7.7. DISASTER RISK MANAGEMENT 2.2. CONTENTS OF PLANS
The URDPFI Guidelines suggest the ways to augment financial resources for
implementation of the development/ spatial plan through various innovative sources 2.2.1. PERSPECTIVE PLAN
of revenue generation. Formulation of spatial plan should be such that the plan is
the contents of a perspective plan shall broadly encompass the following:
able to create economic growth and which could fund the implementation of the plan.
Existing Scenario in overall terms. ƒ
Among the land development mechanism, town planning schemes followed in the
Projected requirements for the horizon year based on the total quantum of land available
states of Maharashtra and Gujarat is a successful case to demonstrate financial
and that can actually be used for development. ƒ
sustainability (cost recovery) of the plan.
Specific planning studies related to setting, linkages both socio‐economic and physical,
and likely challenges. In addition climatological studies, identification of areas prone to
hazards, environmentally sensitive zones. ƒ
Population projection for the horizon year based on past trends and other statistical
methods to arrive at assigned population for the horizon year. ƒ
Economy and employment levels, both existing and projected. ƒ
Shelter‐including shortfalls in various categories of housing stock and the total
requirement ƒ Transportation‐analysis of the existing network, projected requirement
based on detailed OD surveys. ƒ

1.7.8. SPEEDING THE PROCESS OF Institutional uses both existing and required for the horizon year in terms of education,
health, socio‐cultural, religious, and distributive services like police, fire, telecom etc. ƒ

PLANNING & IMPLEMENTATION Infrastructure in terms of water, underground sewerage, drainage, and solid waste
management. Vision should include an overview of new technologies and the way to
i. Simplification of preparation of plan develop and implement. ƒ
ii. Simplification in the implementation of plan Use of alternative sources of energy through new technology. ƒ
iii. Simplification in data gathering Resource base‐ monetary resources required to implement plan proposals vis­avis
iv. Simplification of approval/schemes financial health of the local body/implementing agencies. ƒ
v. Better public participation Manpower resources both existing and proposed as per requirement.
2.2. CONTENTS OF PLANS 2.2. CONTENTS OF PLANS
2.2.2. CONTENTS OF REGIONAL PLAN 2.2.3. CONTENTS OF DEVELOPMENT PLAN
Regional Plan is to be prepared for the area identified as formal or functional region, The Development plan should contain the following major heads:
which could be state/ inter‐state/ district/ inter‐district, investment region or special 1. Existing Conditions and Development Issues
area. If region so identified is inter‐state, all such states will need to prepare 2. Assessment of Deficiencies and Projected Requirements
subregional plans for their respective areas. 3. Vision and Mission
For a regional plan for a normal region, the following key contents to be included: 4. Development Proposals
1. Introduction of the Region 5. Implementation Plan
2. Analysis of regional resources
3. Projected requirements
4. Major proposals and projects
5. Implementation Plan
2.2.3.1. ANALYSIS OF EXISTING SCENARIO AND
ANALYSIS OF REGIONAL RESOURCES & PROJECT DEVELOPMENT ISSUES
1. Background
REQUIREMENTS 2. Demographic Profile
1. Physical setting 3. Land Profile
2. Geography of the Region 4. Economic Profile
3. Demography 5. Infrastructure Profile
4. Settlement pattern 6. Environmental Profile
5. Transportation 7. Shelter (both formal and informal)
6. Physical and Socio Economic linkages 8. Administrative profile
7. Environment 9. Maps & Plans
10. Gap analysis
2.2.3.2. PROJECTED REQUIREMENTS 2.2.3.5. IMPLEMENTATION PLAN
1. Population Implementation framework may include the following: ƒ
2. Economic base and employment Priorities of projects and research ƒ
3. Shelter Phasing of developmental activities ƒ
4. Transportation Proposal for land resource mobilisation ƒ
5. Social Infrastructure Investment Strategy and Promotion ƒ Institutional set‐up
6. Physical Infrastructure
7. Land use requirement for spaces
8. Assessment of Disaster management infrastructure 2.2.4. CONTENTS OF LOCAL AREA PLAN
2.2.3.3. DEVELOPMENT OF VISION 2.2.4.1. Contents of Zonal Development Plan
2.2.4.2. Specific Contents of Urban Redevelopment/Renewal Plan
formulate Vision based on existing conditions and development issues and
stakeholder consultation 2.2.5. CONTENTS OF SPECIFIC PURPOSE PLAN
2.2.3.4. DEVELOPMENT PROPOSALS (E.G. CITY DEVELOPMENT PLANS FORMULATED
The proposal sub heads are enlisted as:
1. Land use Plan FOR ACCESSING FUNDS UNDER JNNURM)
2. Comprehensive Mobility Plan
3. Infrastructure Plan/ Utility Plan 2.2.5.1. Contents of City Development Plan (may be renamed as City Investment Plan)
4. Special Area Planning 2.2.5.2. Contents of comprehensive Ananlysis
5. Development Promotion Rules / regulations 2.2.5.3. Contents of City Sanitation Plan
6. Annexures 2.2.5.4 Contents of slum Redevelopment plan
2.2.5.5. Disaster Management Plan (DMP)
3 RESOURCE MOBILIZATION FOR PLAN IMPLEMENTATION
Land, finance and manpower are the three main resources for planning and development of urban and
regional centres. As a basic principle, allocation of these resources among various competing land
uses must be such that it helps in achieving an optimal level of economic efficiency with inclusion and
equity.

3.2. LAND
3.2.1. LAND AS A RESOURCE
3.2.2. LAND ECONOMICS
3.2.3. LAND ASSEMBLY
3.2.3.1. LAND ACQUISITION
3.2.3.2. LAND POOLING
3.2.3.3. LAND RESERVATIONS
3.2.3.4. TRANSFERABLE DEVELOPMENT RIGHTS (TDR)
3.2.3.5. GUIDED LAND DEVELOPMENT
3.2.4. INCLUSIVE LAND DEVELOPMENT
3.2.4.1. INCLUSION OF POOR INTO THE FORMAL LAND / HOUSING MARKET

3.3. FISCAL RESOURCE MOBILISATION


Planning Process
Spatial Development planning is a continuous, time oriented, cyclic process and
should be seen and practised as a process where planning, implementation,
monitoring, review and plan updating go on as a dynamic process. In this process the
design to prepare a plan is outside the cycle of the planning process.

Stages of Planning
Aims & Objectives
1.Identification of values cherished by and needs of various stakeholders including citizens,
administrators, professionals, politicians, and other group of people.
2. Identification of aims incorporating the values.
3.Identification of criteria that further defines each aim to form basis for formulation of objectives.
4. Formulation of objectives, which could be further defined as design objectives and implementation
objectives.

Identification of Site Needs


For comprehensive spatial planning and integration of the sectoral development, site specific
needs are to be identified in the beginning of the planning process

Site Specific Needs of


Few City Types:
Resource Mobilization for Plan Implementation
Introduction
Land, finance and manpower are the three main resources for planning and development of urban and
regional centres.
As a basic principle, allocation of these resources among various competing land uses must be such that it
helps in achieving an optimal level of economic efficiency with inclusion and equity
As a general policy on resource mobilization, it would be desirable to have a proper mix of public and private
sectors participation, both playing a symbiotic role in such a way that the public infrastructure programmes
are implemented with the strength of public authority and efficiency of the private entrepreneur.

Land
Land is the medium on which the entire superstructure of human settlement is created and under which a lot of
infrastructure find their place. Planning for the use of land leads to socio‐economic and physical development of
urban and rural areas. However, it is a scarce commodity as its supply is limited and it cannot be mass created.
Land as a Resource
The (Draft) National Land Utilization Policy, 2013 states that land is required for development of essential
infrastructure and for urbanization, while at the same time there is also a need to protect land under
environmentally sensitive zones and land which provides ecosystem services. Farmers’ livelihood options and
food security issues make it imperative to protect land for agriculture. Further, the need to preserve natural,
cultural and historical areas requires land protection. It is, therefore, most essential to ensure that utilization of
the available land is judicious and in the best interest of the community through the instrument of
Development Plans.

Land Economics
Land value depends on demand and supply of land. The value increases as the demand exceeds the supply,
which is the general case, owing to limited supply of land against it growing demand in the wake of urban growth
and development. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013(RFCTLARR Act, 2013), defines “land” so as to include the benefits that arise out of land,
and things attached to the earth or permanently fastened to anything attached to the earth.
The Land Acquisition Act of 1894 was made mainly to facilitate the government to procure privately held land
for the purpose of developing public infrastructure and also for companies.
Land Assembly
Land assembly and development mechanism are undertaken for achieving optimum social use of urban
land and to ensure adequate availability of land to public authority and individuals. Public Private
Participation is achieved in land development through various techniques
The various mechanisms to assemble and/or develop land are enlisted below:
Land Acquisition: bulk land acquisition by State and by private initiatives.
Land Pooling: land pooling approach and redistribution scheme, popularly known as Town Planning
schemes.
Land Reservations: the concept of Accommodation Reservation which allows the land owner to
develop the sites reserved for an amenity.
Transferable Development Rights: a technique of land development which separates the
development potential of a land parcel for use elsewhere.
Guided Land Development: this model uses the provision of infrastructure as an instrument to guide
urban development in partnership with land‐owners without pooling any land
Inclusive Land Development
Most cities in developing countries suffer from land market distortions caused by poor land development and
management policies including poor planning, slow provision of infrastructure and services, poor land information
systems, cumbersome and slow land transaction procedures, as well as under regulation of private land development,
leading to unplanned or ribbon/corridor development of land in the urban periphery.
Distortions in the land markets allow land speculation, which often prices the poor out of the formal land markets and
into the informal land markets, which are exemplified by slums, squatter settlements and illegal sub‐divisions, mainly in
the periphery of cities.
This leads to longer commuting time and costs, poor living conditions, in adequate infrastructure and services,
adversely affecting the health and financial condition especially of the poor, thereby entrenching the cycle of poverty.
1.Slums are legal but substandard settlements, with a lack of adequate services and overcrowding.
2.Squatter are settlements where land has been occupied illegally. They are often found on marginal or environmentally
hazardous lands, such as close to railway tracks, along rivers and canals etc. They are also found on government land or
land whose ownership is unclear.
3.While squatter settlements are spontaneous and unorganized, illegal settlements are planned and organized. These
usually occur in cities where the government owns large tracts of vacant land, with low opportunity cost.

Fiscal Resource Mobilisation


Local bodies play an important role in providing social, civic, physical and economic infrastructure services to the public.
Municipal finances are critical in initiating many urban and local governance projects, as financial resources’ strategic
management plays a vital role in ensuring long‐term sustainability of local services and infrastructure.
Project Life Cycle:

Funding Sources:
Traditional and Innovative approaches for Fiscal Resource Mobilisation
Taxes: State Govt authorizes local government by law, to collect taxes. Taxes are a major source of revenue for Urban
Local Bodies. Property tax, profession tax and advertisement tax are major sources of revenue in local governments.
Charges and Fees: Local bodies levy charges and fees for the services provided to citizens. These charges for water
supply solid waste management parking and other such services to cover the cost of undertaking the provision of
services
Grants and Subsidies: Grants and subsidies are generally given by Central Government to State/ Local Government or
State to Local Government for development
Public Private Partnership: PPP is an agreement between public and private entity for providing services or
infrastructure to citizens.
Loans and financial institutions: Public and private organizations come together to pool funds from public and
investing it in financial assets
Funding by Bilateral Multilateral Agencies: These are developmental agencies which provide soft loans for
infrastructural projects
Foreign Direct Investment: FDI is direct investment from company or entity into a foreign country
Pooled Finance Development Fund Scheme of Government of India: PFDF is meant to provide credit enhancement
grants to enable ULBs to access market borrowings to facilitate development
Municipal Bonds and Debentures: Municipal bonds and debentures are usually by ULBs and Infrastructural Funds, to
generate public of specific institutional investors
5 State Level Legal Framework
Karnataka
The Act mandates constitution of State Planning Board, which consult and
direct the Local Planning Authorities after notifying the Planning Area.
Emphasis has been given on preparation of Master Plan,
After notifying the Planning Area by State in consultation with Board, the
Planning Authority is to prepare Outline Development Plan, prior to the
preparation of Master Plan.
As soon as the Master Plan is approved by the State, the Planning Authority
prepares the TPS( Town Planning Scheme ) for the implementation of Plan. The
Planning Authority may prepare one or more TPS for the area within its
jurisdiction. A TPS may be made in accordance with the provisions of Karnataka
Town & Country Planning act in respect of any land which is in course of
development, or likely to be used for building purposes, or already built upon.
There is a provision for revision of Master Plan at least once in every ten years
from the date on which the Master Plan came into force. The KTCP act has laid
down the procedure to acquire land for Master Plan and Schemes for public
purposes. The Planning Authority may acquire any land designated in a Master
Plan for a specified purpose or for public purpose by agreement or under the
Land Acquisition Act, 1894.
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