4th Five Year Plan
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Chapter 19:


Regional and urban development was accorded particular recognition in the Third Plan, and development plans for 72 urban centres were undertaken. Regional studies in respect of metropolitan regions around Delhi, Greater Bombay and Calcutta were initiated. By 1968, almost all the States Lad introduced Town Planning Legislation with varying scope.

19.2. During the period 1963—69, interim development plans for 40 citifs were completed. They provided necessary guidelines to Government departments and public authorities in the use of land. Against an allocation of Rs. 5.5 crorEs during the period. 1963—69 for the preparation of these plans, the expenditure is estimated at Rs. 4.23 crores. For lack of adequate resources— financial and organisational—much headway could not be made with implementation except in a few metropolitan towns and new towns. There is an urgent need in the context of the interim plans to prevent unregulated growth of the towns.

19.3. Priorities and Programmes.—According to present projections, the urban population is expected to increase from 79 million in 1961 to nearly 152 million in 1981. The number of towns with a population of 50,000 and above is likely to increase from 250 in 1961 to 536 in 1981. Regional studies and planning have to be related to this prospect. The situation in regard to growth of population ir metropolitan centres, particularly of Calcutta and Bombay, is already so difficult as to make it almost a law and order problem. To a lesser extent, this is also true of several other large cities. In cities like Calcutta and Bombay it may be necessary to think not only of preventing further growth of population but also of decongeition or dispersal of population. In the case of the other cities, future planning must be oriented towards, stabilisation of population at a desirable optimum figure and towards planning suitable new centres in the region for the likely spill-over. In this context, the potentialities of developing existing small-towns in the area need to be fully explored. Unless-such positive approach in relation to growth of population in our bigger cities and smaller towns is adopted now, it will be difficult to control the situation later.

19.4. The social and economic costs of servicing large concentrations of population ars prohibitive. Beyond a ceitain limit unit costs of providing utilities and services increase rapidly with increase in the size of the cities. In the ultimate analysis, the problem is that of planning ths spatial location of economic activity throughout the country. A beginning must be made by tackling the problem of larger cities and taking positive steps for dispersal through suitable creation of smaller centres in the rest of the area.

19.5. .reference may be made here to some important problems relating to future development of Indian cities. In most of the rapidly growing cities, the limits of corporations or municipalities do not coincide with the appropriate planning areas. It is necessary to create la-ger planning regions and to provide by law that thfc plans formulated by the regional authority are implemented by the local authority or authorities. Planning to be effective requires the full legal structure tor formulation and implementation. The administrative structure of the local bodies needs to be reviewed and rationalised towards better implementation of development plans. Expenditure on specific schemes, such as on roads, sewerage or water supply, is likely to be highly wasteful in the absence of a long-term plan. In the long run, the plans of development of cities and towns must be self-financing. This is intimately connected in turn with the vexed question of land acquisition and land prices. One of the largest sources of unearned income at present is the rapid increased in values of urban la ad. On the other hand, high prices of land are one of the main obstacles in the way of properly housing the poorer classes. The evolution of a radical policy in this regard is an immediate requirement for futurs development.

19.6. There is a provision of Rs. 188 crores in the States sector for urban development, housing and metropolitan schemes. To supplement these resources a provision of Rs. 10 corres has been made in the Central Plan as share capital for the establishment of a Housing and Urban Development Finance Corporation. The Corooration is expected to build up a revolving fund of i:he order of Rs. 200 crores through Governmental allocations, mobilisation of private savings and supported by assistance from appropriate international agencies. Loans will be advanced from this fund to the State Governments or to executing agencies undsr them, to finance projects of housing and urban devs-lopment promising quick turnover; the projects wouid have to I e adequately ;:emunerative. To ensure quicker turnover in the initial stages, the major portion of the allocations from the revolving fund may have to be utilised in the larger cities for composite projects covering the requirements of commercial or industrial ventures and middle and lower income group housing. Emphasis will have to be laid on the rapid development of land, its utilisation for sale or house-building, tlie disposal of built houses to the maximum extent possible on cash and an acceleration of building techniques.

19.7. A provision of Rs. 42 crores has been made in the Wsst Bengal Plan for integrated urban development of the Calcutta Metropolitan Region. This amount excludes the provision for a second bridge on the Hoo^hly and the Dum Dum—Princep Ghat suburban railway expansion. The provision of Rs. 42 crores is proposed to be utilised for schemes relating to water supply, sewerage and drainage roads and traffic, slum clearance, housing and urban development.19.8. The scope and effectiveness of these provisions could be enhanced by integrating their use with that of other provisions tor land development in sectors such as industry, urban water supply, roads and social and educational institutions. Such programmes could in turn be related to complementary effort in the cooperative and private sectors. It is only comprehensive planning of this kind, supported by legislation, which can bring about efficient and economical layout of land and services within the framework of social objectives. State Governments will also need to review the working of other statutes which may (as required by proposals and programmes of development plans) be indiiectly but unduly hindering the re-development of private land and property for more intensive and economic use.

19.9. These provisions should be supplemented by resources at the local level, which will need to be augmented by the State Governments and local authorities through various measures, such as improvement of assessment and collection of taxes, new or enhanced taxes and borrov/ing programmes of local authorities. The recommendations in this connection of the Rural-Urban Relationship Committee need to be followed up by the State Governments. Action is also required on the reports of the two Committees appointed by the Local Self-Government Ministers' Council on Augmentation of financial resources of urban local bodies (1965) and on Urban Land Policy which have made useful recommendations for mopping up unearned increment in land values. Some of the important measures suggested are levy of a lax on urban properties including vacant lands on the basis of their assessed capital value, enhanced stamp duty or surcharge on the sale of urban properties and lands, conversion tax on change of existing land use to a more profitable use, betterment levy for improvement and increase in value of land due to execution of schemes by local or public authorities on nearby lands, and payment for the services by the beneficiaries. This is particularly applicable to metropolitan cities and other large centres, where the per capita income is much higher than in other areas. The implementation of schemes for the benefit of these cities carries with it a corresponding obligation on the part of the beneficiaries to share the burden. It is hoped that State Government will take all the measures necessary to augument resources at the local level.


19.10. In the field of housing. Government has been giving assistance for the benefit of selected sections of the community and providing accommodation to its employees. Life Insurance Corporation loans, which heretofore supplemented the Plan provisions will now be included therein. Expenditure on housing schemes is indicated in Annexure I. Schemes in the housing sector cover only a small portion of the total effort. Substantial expenditure on housing is made by public sector undertakings, railways, the post and telegraphs and defence. During the Third Plan, it was estimated at Rs. 300 crores. The major share of the investment on housing comes from the private sector. It is estimated at Rs. 1,400 crores in the Third Plan and expected to rise to Rs. 2,140 crores in the Fourth Plan.

19.11. Urban housing programme consists of housing schemes and loan schemes. The following table indicates the number of tenements estimated to have been built by 1968-69 :

Table 1 Number of Tenements Built by 1968-69

sl. no. scheme year of introduction tenements built by 1968-69
(0) (1) (2) (3)
1 subsidised housing schemes   233179
2 subsidised housing schemes for industrial workers and economically weaker sections. 1952 165623
3 slum clearance and improvement 1956 69556
4 loan schemes   172271
5 low income group 1954 135196
6 middle income group 1959 19040
7 rental housing schemes for state employees 1959 18035
8 total schemes   407450

19.12. The migration of people from villages to towns in search of employment has accelerated the growth of urban population. Adequate facilities and services for the increased urban population are not available. There has been some decline in standards, particularly of housing. The provision of housing through private or co-operative effort is usually directed to the affluent or middle classes and the incoming poor in metropolitan areas give rise to slums.

19.13. The experience of public housing so far is that its unit costs are high and that with the constraint of resources it is not possible for public operations to touch even the fringe of the problem. Slum clearance schemes often lead to creation of new slums or deterioration of conditions in some of the older slums. In growing cities of a reasonable size, it should be part of Government policy to encourage, through proper planning and land policy, adequate supply of housing. In cities where the slum population is large, this approach would not be effective and it would be necessary to try to ameliorate the living conditions of dwellers of slums as an immediate measure. Emphasis should be on limiting the rise in the prices of land, providing financial assistance to co-operative and private effor and assuming legal powers for reconditioning of slums

19.14. At the end of 1966-67, there were 16 State level co-operative societies and 12,723 primary societies, with a total working capital of Rs. 154 crores. During 1966-67, these societies built 16,000 independent houses and 15,571 tenements. The co-operative form of organisation could be enlarged, especially for low and middle income groups. Where appropriate, an apex cooperative could be set up with the necessary minimum of assistance from Government. State Housing Boards should be encouraged to float bonds and debentures.

19.15. Cheaper houses should be provided by organising the supply of material and by pursuing research into practicable schemss of cheaper ways of building. States, local authorities and statutory bodies have to play a more active role in organising i.his effort. The proposed Central Housing Finance Corporation would also promote the organisation of mass production of cheaper building materials. The private sector should standardise building components and manufacture them on a large scale. At tlie Centre, the National Buildings Organisation is engaged in the introduction of new techniques and materials in construction to effect reduction in costs and ia inducing construction agencies to take up experimental construction for demonstration purposes. Provision has been made for the establishment of a Cellular Concrete Plant at Ennore in Tamil Nadu,

19.16. The relevant provisions are :

Table 2 Provisions in the Fourth Plan for Housing and Urban Development

sl. no item outlay (Rs. crorss)
(0) (1) (2)
1 states and union territories 188.43
2 central sector schemes 48.60
3 office and residential accommodation for central government employees 30,00
4 central housing finance corporation 10.00
5 plantation labour housing1 2. 00
6 cellular concrete facto ry in Tamil Nadu 2.60
7 dock labour housing 2.50
8 eKperimentai housing and research 0.35
9 housing statistics 0.35
10 town planning 0.50
11 local self-government (training and research) 0.30
12 total 237.03

1 This was previously in the State Plans Sector. The quantum of Central assistance for this scheme has been enhanced from 50% loan and 25% subsidy to 50% loan and 37^% subsidy.


19.17. Laws on consolidation of holdings provide for earmarking of land for expansion of abadi sites and for other purposes. Lands which vest in the State as a result of the abolition of intermediary tenures or enforcement of ceiling laws or consequent on the consolidation of holdings, could also be utilised to provi and e house sites.

19.18. The essential tasks in the sphere of village housing will be to get appropriate lay-outs made for the grov/ing villages, to provide basic amenities such as water and sanitation facilities, and to stimulate private building and renewal activity. Encouragement will have to be given to co-operative effort. Special housing schemes in favour of scheduled castes or other dis-advantageously placed classes should be integrated into the village lav-out alone with the general housing piu-rammcs.

19.19. Introduced in 1957, the village housing projects scheme provides for assistance to villagers for construction or improvement of houses, for house sites to landless agricultural workers and for streets and diiiins in. selected villages. The scheme has not made much progress. A study of its working supported by some quick field surveys has brought to light the low priority that is being accorded to it in the States. The machinery for proper administration of the scheme does not exist and there is little co-ordination with the complementary programmes for improvement of rural areas. Many houses remained incomplete. In the next tvvo years, effort should be concentrated on completing the houses under construction. New villages may be taken up thereafter as part of a general programme of development for the villages selected.

19.20. It is necessary to protect the homesteads of families of landless t.gricultural labour, large numbers of whom belong to scheduled castes and backward classes ;md who live on land belonging to others. Laws conferring proprietory rights in such cases will have tc' be passed and enforced where this has not already been done. Measures to help these weaker sections in putting up a decent super-structure on these sites hu.ve to be adopted by supplying materials and guidance.


19.21. In the Third Plan, 529 new urban water supply and sanitation schemes were taken up at a cost of Rs. 13; crores in addition to 53 schemes continuing from tiie Second Plan period. Mo?t of them were comple-ed. During :he three Annual Plans, 150 new schemes were taken up at a cost of about Rs. 39 crores. They are in various stages of execution.

19.22. Ruial water supply schemes were taken up under the programmes for community development, local development works and welfare of backward classes. These were supplemented by the National W.iter Supply and Sanitation Programmes of the Ministry of Health. The latter v/as confined to those groups of village', where the tapping of water resources required a mea: are of technical skill. In executing this pro-gramm', emphasis was laid on providing water to areas v.hich suffered from water scarcity and salinity and where water-borne diseases were endemic. At an estimat :.d cost of Rs. 27 crores, 1,764 schemes were compki ed during the Third Plan. During the three Annual Plan? that followed, 478 schemes at an estimated cost of Rs. 21 crores were undertaken and are in various stages of execution. The work done in 1961—69 added 6,000 villages to those having piped water supply.

19.23. Programmes under community development local develoment works and welfare of backward classes included the construction and renovation of wells ar.d installation of hand-pumps. The number of such wells the end of 1968-69 is estimated at Rs. 1.2 million.

19.24. The Fourth Plan outlay is Rs. 407.29 crores. In met-'opolitan areas water supply schemes would, as far as possible, bs accompanied by sewerage and drainage schemes. Local bodies will contribute to the programme. In the lemaining urban areas, priority will be given to the completion of spill-over schemes. A number of new schemes will be taken up in areas enddernic to water-borne diseases. The bulk of the provision for rural water supply, which is of the order of Rs. 125 crores and has been earmarked, will be utilised in areas of acute scarcity. Other areas will meet their need from programmes for community development, welfare of backward classes or through local effort.

19.25. It will be Song before urban areas can afford fullfledgcd sewerage and sanitation systems. The problem of sanitation in towns other than those with sewerage schemes has so far been dealt with from the point of view of improving the conditions of those in unclean occupations; no reference was made to the problem of sanitation in the villages. The overall problems of sanitation require to be dealt with on a long term basis. The efforts made so far to improve the conditions of scavengers under existing arrangements have not had much success. It is necessary to think in terms of doing away with present arrangements by either adopting a proper system of underground sewerage of converting all dry latrines into some type of improved hitrines. A number of improved types which are not costly are available. A phased programme has, tlierefore, to be undertaken by which the transformation can be effectively brought about. As an immediate step, this can, in urban areas, take the form of providing improved sanitary conveniences in all public institutions as also in public places. In villages a similar start can be made with public institutions, particdarly schools. Once these reforms are introduced, it may be hoped that they will be gradually adopted by private institutions and the people generally The initial programme will have to be undertaken by local authorities. It is necessary for public health departments and research organisations to take special interest in the problem.

19.26. Under a Centrally sponsored programme, assistance is being given to State Governments for special investigation divisions attached to their Public Health Engineering Departments. They will prepare technical designs and estimates of rural water supply schemes, particularly in difficult areas, making w: of the d;ita available from the Exploratory Tubewells Organisation and the Geological Survey of India. In designing these schemes, water available from major or medium irrigation projects would also be integrated hi supplying drinking water. A provision of Rs. 2 crores has been made for this purpose.

19.27. A provision of Rs. 3.5 crores has been made in the Central sector to accommodate assistance from UNICEF in the shape of high speed diilling rigs for exploration and exploitation of ground water resources in hard and rocky areas. This equipment will be available to States as and when they need it.

19.28. Central assistance is being given to institutions for training in public health engineering. Courses for water works supervisors and other categories of workeis are being conducted by the Union Government. The training programme is proposed to be continued with a provision of Rs. 25 lakhs.

19.29. With increase in industrialisation and urbanisation, indiscriminate discharge of wastes from industrial plants and sewerage effluents from towns and cities is posing problems in some areas. Central legislation for prevention of pollution of water sources is under consideration. It is hoped that all the State Governments will adopt this legislation for enforcement. An allocation of Rs. 7.60 lakhs has been made for the establishment of a central board envisaged under the new legislation.

19.30. The total provision of Rs. 407.29 crores will meet only part of the needs of water supply and sanitation. In the uiban areas, the water supply schemes should be looked upon as a service which has to be paid for the direct beneficiaries through capital contributions and water charges. There is scope for improvement in the realisation of water charges. Sewerage schemes are costly by and by themselves cannot always be self-financing. It should be possible to treat them as a combined utility with water supply.

19.31. The rural water supply schemes, in particular the piped water supply schemes, should be maintained properly. Otherwise, they become derelict in course of time, resulting in large waste of public funds. In rural areas also, water supply schemes should be looked upon as a service which has to be paid for. Wherever possible, capital contributions and levies should be collected from the beneficiaries.

ANNEXURE I Housing Programmes—Expenditure in the Third Five Year Plan and during 1966—69
(Rs. crores)

sl. no item third plan expenditure 1966- 69 expenditure
    plan funds L.I.C. funds total plan fund

L.I.C funds.

(0) (1) (2) (3) (4) (5) (6) (7)
1 subsidised Industrical housing 22.40 22.40 9.29    
2 low incoms group housing 21.95 13.66 35.61 8.44    
3 plantation labour housing 0.15 .0.11 0.26 0.17    
4 village housing projects scheme 4.22 0.73 4.95 2.56    
5 slum clearance 26.90 26.90 11.53    
6 land acquisition and development 9.12 15.34 24.46 - 36.00' 85.99'
7 middle income group housing 2.56 19.92 22.48 1.54    
8 rental housing scheme for state gvernment employees 10.24 10.24    
9 dock labour housing ....... 0.14 0.14 0.32    
10 experimental housing and statistics 1.00 1.00 0.39    
11 office and residential accommodation 28.50 28.50 15.75    
12 total 116.94 60.00 176.94 49.99 36.001 85.991

' Schemewise details not available.

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