Finance Minister Nirmala Sitharaman highlighted urban development as one of government’s nine key priorities. With a strong focus on affordable housing, the government aims to rejuvenate a sector facing numerous challenges. Key reforms include introducing a unique identification number for rural land, known as ‘Bhu-Aadhaar,’ and digitizing all urban land records.
Key Initiatives for Urban Development
1. Transit-Oriented Development (TOD)
The government plans to implement TOD in 14 large cities, each with populations exceeding 3 million. This strategy focuses on developing urban areas around public transit hubs, enhancing accessibility, reducing travel times, and promoting sustainable urban growth.
2. Water Management and Sanitation
A significant portion of the budget is allocated to improving water supply, sewage treatment, and solid waste management in 100 major cities. These projects aim to provide sustainable solutions, ensuring clean water, efficient sewage systems, and effective waste management for all residents.
3. Weekly Street Markets
To boost local economies, the government will develop 100 weekly street markets or ‘haats’ in selected cities. These markets will offer convenient locations for vendors and consumers, fostering community interaction and supporting small businesses.
4. PM Awas Yojana Urban 2.0
This flagship housing scheme targets the housing needs of 10 million urban poor and middle-class families. With an investment of ₹10 lakh crore, the initiative aims to provide affordable housing, ensuring safe and adequate living conditions for every citizen.
5. Policy and Regulatory Support
New policies and regulations will support efficient and transparent rental housing markets. These measures aim to make rental housing more accessible, helping individuals and families find suitable accommodations more easily.
6. Stamp Duty Reductions
To promote gender equity in property ownership, the budget encourages states to lower stamp duties for properties purchased by women. This initiative provides financial relief and supports the economic empowerment of women buyers.
7. Free Electricity for Urban Households
The government plans to provide up to 300 units of free electricity each month to 10 million urban households, easing their financial burden.
Changes to the Insolvency and Bankruptcy Code (IBC)
Finance Minister Sitharaman also announced upcoming changes to the IBC to strengthen tribunals and improve outcomes. An integrated technology platform will be introduced, and additional debt recovery tribunals will be established. The IBC has already resolved over 1,000 cases, resulting in the recovery of ₹3.3 lakh crore for creditors.
