Given the crucial importance of urbanization in the transition of an economy from an agrarian rural structure to a modern industrial one, this chapter discusses the policies conducive to healthy growth of urban centers. It identifies four intimately linked components of urban development: availability of land; provision of water supply, sanitation, and solid waste management; transportation; and rehabilitation and redevelopment of slums. The chapter discusses reforms in each of these areas. To alleviate land shortages, it recommends the repeal of the Urban Land Ceilings Act; raising the floor space index; provision of legal titles to property; rental laws that balance the rights of the tenants and landlords; reform of laws governing the conversion of land and property from one use to another; and reform of coastal zone laws. In transportation, the chapter emphasizes the need for a rapid transit system and discusses two successful such experiments: rail based Delhi Metro and the Bus Rapid Transit System in Ahmedabad. The chapter also makes several suggestions on slum rehabilitation and redevelopment could be accomplished. Finally, the chapter points to the need for governance reforms including delegation of authority to local levels to tackle the complex issues relating to water supply, sanitation, and disposal of solid waste.
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