Budget 2024-25: Govt announces transit-oriented development plan for large cities

The government on Tuesday proposed a transit-oriented development plan for 14 large cities with a population of over 30 lakh in its budget for 2024-25 and said it will formulate a framework for the creative redevelopment of cities. Presenting the Budget in the Lok Sabha, Finance Minister Nirmala Sitharaman underscored that the Union government will work with states to facilitate the development of cities as "growth hubs".

"This will be achieved through economic and transit planning, and orderly development of peri-urban areas utilising town planning schemes", the minister said.

"Transit-oriented development plans for 14 large cities with a population above 30 lakh will be formulated, along with an implementation and financing strategy," Sitharaman said in her budget speech.

The minister also announced Central assistance of Rs 2.2 lakh crore for urban housing over the next five years as well as an interest subsidy scheme to facilitate loans at affordable rates for urban housing works.

She said the Central government will put in place measures for an efficient and transparent rental housing market with enhanced availability.

The minister proposed a scheme to support the development of 100 weekly haats or street food hubs in select cities.

Sitharaman added that rental housing with dormitory type accommodation for industrial workers will be facilitated in PPP (public-private partnership) mode with VGF (viability gap funding) support and commitment from anchor industries."

Enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place, she said.

About water supply and sanitation, the minister announced that the Centre in partnership with state governments and multilateral development banks will promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects.

According to her, these projects will also envisage use of treated water for irrigation and filling up of tanks in nearby areas.

The minister stressed that the Central government will encourage states, which continue to charge high stamp duty, to moderate the rates for all, and also consider further lowering duties for properties purchased by women.

This reform will be made an essential component of urban development schemes, she added.