1

Role of Regional Development Institutions

in creating an enabling environment

towards shared prosperity :

the case of Mumbai Metropolitan Region

Uma AdusumilliChief, Planning Division

Mumbai Metropolitan Regional Planning AuthorityWebsite : mmrda@maharashtra.gov.in

January 20, 2016

A presentation at the

International Conference on

Sustainable Development through

“Quality Infrastructure Investment”

Tokyo, Japan

Mumbai

Metropolitan

Region

:

The

LocationMMRMaharashtra

India

Mumbai District

MMR

2

• 4312 sq.km. (Mumbai X 10)

• 22.8 M people in 2011

• 17 Municipalities (30% area, 91% population)

• 1029 Villages (70% area, 9% population)

• 38 Planning Authorities

• 14 Infrastructure Agencies

Mumbai :

• Commercial and financial capital of India

• Generates 6% of India’s GDP

• Accounts for 33% of Income Tax, 60% of

customs duty, 20% of central excise tax and

40% of India;s foreign trade

• Handles 70% of total Indian transactions

• Contributes > US$ 650m annually as Corp.

taxes

MMR : Basic facts

The issues

• MMR losing its competitive advantage

• Declining secondary sector economy

• Slow growth, informalisation and concentration of employment

• Urban-rural imbalance

• Lack of affordable housing

• Inadequate public transportation and other infrastructure

• Peri-urban developments without governance

• Sporadic developments spread across the region –inadequate

infrastructure

• Data paucity for planning

Issues in the Development of MMR

3

What is desirable ?

• Realistic population and employment

projections and distribution

• Land use planning for economy and

balanced growth of region

• Dispersal of employment to the rest

of the region

• Promotion of Industry and

Warehousing

• Compact urbanisation with

increased governance

• Regional infrastructure projects

• Data availability for informed choices

Objectives for MMR

What is being proposed/done ?

• Population 2031 rationalised to 29M, area for

urbanisation not under pressure

• Review of city plans, local economic

development centrers for rural areas

• Development of new growth centres as

integrated complexes

• Zoning and regulations for facilitating growth

in secondary sector

• Expansion of city limits, creation of new

municipal areas

• Regional transportation, water resource

development and solid waste management

• Regional Information System

Background Studies – 1998 to 2013

• Water Resource Development Study

• River Studies for Flood Control and Environmental Management

• Comprehensive Transportation Study

• Business Plan

• Economic Development of MMR study

• Concept Plan

• Environmental Status Report

Statutory Regional Plan for MMR : 2014-2034

Recent Studies on MMR

4

Infrastructure Investment Needs 2008-2021

Sr.

No. Sectors

Investment Needs

US$ B

1 Port Development 3.79

2 Airport Development 2.88

3 Water Resource Development 2.82

4 Transit Development 22.66

5 Metropolitan Road Development & Terminals 10.21

6 Drainage 0.40

7 Power 10.90

8 Local Municipal Infrastructure 5.51

9 Public Housing 2.44

Total 61.61

Total Excluding Ports, Airport and Electricity 44.04

Expectation on PPP Mode 28%

Item

Investment

Needs

US$ B

Inter

Govt.

transfers

Own

Resources

Borro-

wings

Private /

PPP

Total 44.04 22% 29% 21% 28%

Administrative Boundaries

Big Cities

Small Towns

Cities

Urbanising rural areas

5

MMRDA established in 1975 for development of MMR

In 4 decades, it specialised in :

• Spatial planning at Regional and Micro levels,

• Land development and development control,

• Regional Institution building,

• Regional co-ordination,

• Infrastructure financing,

• Design & execution of Regional projects (regional in nature or spread )

• Structuring & execution of PPP projects

• Handling rehabilitation issues

Powers :

• to direct other institutions towards actions,

• to levy betterment charges,

• to acquire lands for public purpose

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• Focus till 2003 on policy

planning for the region

• Moved to implementation of

regional projects of :

- transportation

- water resource development

- solid waste management

- Housing

• Undertaking mission mode

projects to clear regional

backlog (slum sanitation &

skywalks)

Strategies Used by MMRDA

Transport

Infrastructure

• MUTP

• Metro

• Mono Rail

Pedestrian

Safety:

• FOBs

• Skywalks

Housing

• For infrastruc-

ture dishoused

• Rental Housing

Regional

Projects

• Regional water

resource dev.

• Regional Landfill

Social Initiatives

• Slum toilets

• Livelihood Cell

for rehabilitated

New

Ventures

• Multimodal corridor

• Growth Centers

MMRDA’s

Initiatives

Road

Infrastructure

• ROBs

• Elevated Roads

• Flyovers

Projects by MMRDA

7

Enabling environment for

shared prosperity

in MMR

Mechanisms considered important in MMR :

1. Creation of regional policy, finance and relevant institutions

towards improving quality of infrastructure

2. Public-Public Partnerships towards execution of projects

3. Regional governance and conflict resolution

4. Balancing rural and urban development

5. Regional Information Systems

Role of Regional Development Institutions

8

Regional Spatial Development Policy in MMR includes :

• Direction and extent of urbanisation

• Program of transformation or rural areas into urban

• Environmental safeguards and management

• Efforts for improving regional economy and employment

• Allocation of regional water resources

• Regional flood management

Regional Policy

Projects funded (60% for urban projects)

No. Level of ProjectsSanctioned Disbursed

Amount US$ M Share Amount US$ M Share

1 Regional 373 39% 298 39%

2 Urban 565 59% 450 59%

3 Rural 19 2% 15 2%

Total 957 100% 763 100%

Regional Financing

• Own funds + National and State level funds parked in MMRDA

• A combination of grants and loans provided

• 30 agencies, 190 projects, nearly US$ 1B funds

• Allows tech appraisal of project, appraisal of finances of borrower

• Opportunity for reform, improvement of quality thro monitoring

• No defaults in 25 years

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Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

No. of

Proj.ects2 2 3 13 17 2 22 3 4 7 1 8 7 17 17 1 2 2 6 1 1 3 24 5 6 4 5 2 2 2 189

Sanct.

Amount0 60 130 193 139 43 517 0 157 460 133 408 1583541 667 20 5 6 14 0 3 153 614 84 2 0 5 79 175 11 6,223

Dsbrsd

Amount0 46 42 173 138 43 365 0 92 270 100 408 1221527 601 20 3 4 11 0 3 126 502 79 1 0 3 79 69 12 4,959

Level of

ProjectU U U UR UR R U U U U R UR UR U U U UR UR U U U R U U U UR UR UR RL RL

District R T M T TR M T R T T T M MTR M T T T T R R M TR T T R T T T T R

Disbursement of funds(US$ IB approved, 80% disbursed)

• MMR-Heritage Conservation Society and MMR-Environment Improvement

Society

• Maharashtra Urban Infrastructure Fund (MUIF) to address the infrastructure

needs of Municipalities in the state

• Mithi River Development and Protection Authority (MRDPA)

• Unified Mumbai Metropolitan Transport Authority (UMMTA) to focus on

design, financing, integration, safety,

co-ordination, R&D aspects of mass transportation

• NAMMTRI to address the mass rapid transport training needs

• Mumbai Metro Rail Corp. (MMRC) to execute metro rail projects

Multiple agencies engaged in planning, financing, dev. and governance

make it more necessary to co-ordinate and manage rather than just plan.

Regional Institution Building

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• Mumbai and 4 M+ cities exist, 4 more M+ cities emerging

• Govt. committed to dev. of MMR as a spatial unit

• Regional dev. demands pooled capacities

• Results in both conflicts and strategic alliances

Regional Conflicts and Alliances

Conflicts :

• City vs City

• Big cities vs Small towns

• Urban vs Rural

• Special Plng. interventions vs City govts.

• Infra agencies vs City govts.

• Slum dwellers vs Rest of cities

• Enviro NGOs vs Social NGOs

• NGOs vs City govts.

• Geography demands multi city connections

• Fiercely independent old towns

• Mumbai in proximity raises expectations

• History of Public-Public Partnerships

• MMRDA with Cities

• Infra Agencies with Cities

• Cities with other Cities

• Special Planning Agencies with Cities

• Special Planning Agencies with villages

• History of Public Private Partnerships

• PPPs working in transportation and housing projects

• Emerging in water and sanitation sectors

Partnerships in MMR

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Increasing Municipal areas

Issues :

Jurisdictions, parameters covered, periodicity, timing, ease of access, authenticity.

Information requirements

• Demographic, employment and economic growth characteristics

• spatial development trends,

• Infrastructure levels and investments,

• housing supply and demand, and real estate trends,

• environmental parameters, and

• institutional arrangements

Immediate steps :

• needs assessment and readiness assessment – both going on

• identify roles for various institutions

• establish protocols for information gathering, storage and dissemination

The RIS can serve the needs of all government agencies operating in the

region and provide authentic data for facilitating market research as well.

Regional Information System

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• 435 km of metro rail

• 248 km of new sub-urban rail

• 540 km of highways

• 6 new intercity train terminals

• 10 truck terminals, 13 intercity and 4 interstate bus terminals

• Sewer & Storm Water networks, Sewage Treatments Plants, Sanitary Landfills

• 4.5 b new homes – mostly in private domain

• Development of 3 green field growth centres (300 ha. each)

• Development of Local Development Centres for rural clusters

• Establishment of Regional Lab for Information System, research and training

• All before 2031

Investments required for quality infrastructure

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• 29% area for development,

• 39% area for low development,

• 32% area for conservation

No. Use Zone Code

Development Zones

1 Urbanisable Zone 1

2 Urbanisable Zone 2

3 Industrial Zone

4 Recreation Zone

Low Development Zones

5 Green Zone 1

6 Green Zone 2 (sensitive)

Conservation Zones

7 Forest Zone

8 Wetlands

Regional Plan 1996-2011