slum & urban infrastructure
TRANSCRIPT
Slum & Slum & Urban Urban
InfrastructurInfrastructuree
Definition of a Slum
A Slum, for the purpose of Census, has been
defined as residential areas where dwellings are
unfit for human habitation by reasons of
dilapidation, overcrowding, faulty arrangements
and design of such buildings, narrowness or faulty
arrangement of street, lack of ventilation, light, or
sanitation facilities or any combination of these
factors which are detrimental to the safety and
health.
Identification of Slums in Census
• For the purpose of Census, slums have been
categorized and defined as of the following three
types:
• Notified Slums
• Recognized Slums
• Identified Slums
All notified areas in a town or city
notified as ‘Slum’ by State, UT
Administration or Local Government
under any Act including a ‘Slum Act’
• Notified Slums
• Recognized Slums
• Identified Slums
Identification of Slums
All areas recognised as ‘Slum’ by State, UT
Administration or Local Government, Housing
and Slum Boards, which may have not been
formally notified as slum under any act
• Notified Slums
• Recognized Slums
• Identified Slums
Identification of Slums
A compact area of at least 300 population or
about 60-70 households of poorly built
congested tenements, in unhygienic
environment usually with inadequate
infrastructure and lacking in proper sanitary and
drinking water facilities (Identified).
• Notified Slums
• Recognized Slums
• Identified Slums
Identification of Slums
Data on Slum from Census
• It is for the first time in Census that datasets on Housing
stock, Amenities and Assets based on the Houselisting
and Housing Census are being released
• In Census 2001, information on Slums were released
only on demographic characteristics based on the
Population Enumeration. For this purpose, Slum Blocks
were identified in Statutory Towns having a population of
20,000 by the local authorities at the time of Population
Enumeration phase
• In Census 2011, Slum Blocks have been delineated in
all statutory towns irrespective of population size.
Census 2011 Results
• Out of 4,041 Statutory Towns
in Census 2011 Slums
reported from 2,543 Towns
(63%)
• Total Slum Enumeration
Blocks (SEBs) in Census
2011 is about 1.08 lakh in the
country
• Largest number of Slum EBs
reported from Maharashtra
(21,359)
Towns Reporting SlumsIndia : Census 2011
• Notified Slums 37,072
• Recognised Slums 30,846
• Identified Slums40,309
Total: 1,08,227 Blocks
Number of Slum Blocks by Type of Slums – India :
Census 2011
• Notified Slums 49.65 lakh HHs
• Recognised Slums 37.96 lakh
HHs
• Identified Slums49.88 lakh HHs
Total: 137.49 lakh
HHs
Households by Type of Slums – India : Census
2011
Slum & Non-Slum Households
– India 2011 Indicator
Number of households
(in lakh)
Total (Urban) 789
Slum 137
Non-Slum 652
Number of households (in %)
Slum 17.4
Non-Slum 82.6
Number of Slum Households in Million Plus Cities
Indicator Number
Number of Slum Households (in lakh)
Total (Slum) 137
Slum in Million Plus Cities 52
Slum in other Cities 85
Number of Slum Households (in %)
Slum in Million Plus Cities 38.1
Slum in other Cities 61.9
38 % of the slum households are in 46 Million Plus Cities
Top/Bottom 5 States Reporting Slum
Households
StateProportion of Slum HHs to Urban HHs
(%)
Andhra Pradesh 35.7
Chhattisgarh 31.9
Madhya Pradesh 28.3
Odisha 23.1
West Bengal 21.9
Top 5 States
Bottom 5 States
StateProportion of Slum HHs to
Urban HHs (%)
Chandigarh# 9.7
Gujarat 6.7
Jharkhand 5.3
Assam 4.8
Kerala 1.5
Percentage of
Slum HHs to Total Urban HHs
Proportion of Slum Households in Metros - 2011
Million Plus CitiesProportion of Slum HHs to Total Urban
HHs (%)
Greater Mumbai (M Corp.) 41.3
Kolkata (M Corp.) 29.6
Chennai (M Corp.) 28.5
Delhi Municipal Corp (U) 14.6
BBMP (M Corp.) 8.5
Million Plus Cities with High Proportion of Slum HHs (Top
10 only) - 2011
Million Plus CitiesProportion of Slum HHs to
Total Urban HHs (%)
1. Greater Visakhapatnam M Corp. 44.1
2. Jabalpur Cantt (CB) 43.3
3. Greater Mumbai (M Corp.) 41.3
4. Vijayawada (M Corp.) 40.6
5. Meerut (M Corp.) 40.0
6. Raipur (M Corp.) 39.0
7. Nagpur (M Corp.) 34.3
8. Greater Hyderabad M Corp. (GHMC) 31.9
9. Kota (M Corp.) 31.8
10. Agra (M Corp.) 29.8
INDIA (Absolute numbers in lakh)
Use of Census House Urban Slum
Total Occupies Census Houses 990 160
Residence 761 133
Residence-cum-other use 24 3.9
Shop/Office 107 10.8
School/College, etc 4 0.5
Hotel/Lodge/Guest House 4 0.4
Hospital/ Dispensary, etc 3 0.3
Factory/ Workshop, etc 15 2
Place of worship 6 0.9
Other non-residential use 59 8
Locked Census Houses 7 1
Use of Occupied Census HousesIndia : 2011
INDIA (in %)
Use of Census House Urban Slum
Total Occupies Census Houses 100.0 100.0
Residence 76.9 82.5
Residence-cum-other use 2.4 2.4
Shop/Office 10.8 6.7
School/College, etc 0.4 0.3
Hotel/Lodge/Guest House 0.4 0.2
Hospital/ Dispensary, etc 0.3 0.2
Factory/ Workshop, etc 1.5 1.2
Place of worship 0.6 0.6
Other non-residential use 6.0 5.1
Locked Census House 0.7 0.6
Use of Occupied Census HousesIndia : 2011
Households by Type of Census Houses – India
Type Urban Slum
Permanent 84.3 77.7
Semi-permanent 11.6 16.0
Temporary 3.2 5.3
Any other 0.9 1.0
HHs (in %)
Slum Household
s by Structure of Census Houses
(Permanent)
Households by Number of Room – India
Number of Room Urban Slum
No exclusive room 3.1 4.4
One room 32.1 44.8
Two room 30.6 29.5
Three room 18.4 12.3
Four room 9.3 5.4
Five rooms and above 6.5 3.5
HHs (in %)
Households by Household Size– India
Household Size Urban Slum
1 member 3.6 3.7
2 members 9.5 9.5
3 members 15.9 14.9
4 members 26.4 25.1
5 members 18.5 19.4
6 to 8 members 20.6 22.2
9 and above members 5.4 5.2
HHs (in %)
Households by Number of Married Couples – India
Number of married couples Urban Slum
None 12.7 13.6
1 71.1 72.1
2 12.6 11.3
3 2.8 2.4
4 0.6 0.5
5 and above 0.2 0.1
HHs (in %)
Households by Ownership Status – India
Ownership Status of Census House Urban Slum
Owned 69.2 70.2
Rented 27.5 26.3
Others 3.3 3.5
HHs (in %)
Source of Drinking Water – India
Source of drinking water Urban Slum
1. Tap 70.6 74.0
From treated source 62.0 65.3
From untreated source 8.6 8.7
2. Well 6.2 3.0
3. Hand pump 11.9 12.7
4. Tube well / Borehole 8.9 7.6
5. Other sources 2.5 2.8
HHs (in %)
Location of Drinking Water Source– India
Location Urban Slum
1. Within premises 71.2 56.7
2. Outside premises 28.8 43.3
HHs (in %)
Slum HHs by Location
Drinking Water Source (Within
premises)
Source of Lighting– India
Source of lighting Urban Slum
1. Electricity 92.7 90.5
2. Kerosene 6.5 8.2
3. Solar 0.2 0.3
4. Other oil 0.1 0.2
5. Any other 0.2 0.2
6. No lighting 0.3 0.5
HHs (in %)
Slum HHs by Fuel Used for Cooking
(LPG/PNG)
Availability of Bathing Facility within Premises - India
Bathing Facility Urban Slum
1. Have facility 87.0 81.0
(a) Bathroom 77.5 66.6
(b) Enclosure without roof 9.5 14.5
2. Does not have facility 13.0 19.0
HHs (in %)
Drainage Connectivity for Waste Water Outlet– India
Drainage connectivity Urban Slum
1. Closed drainage 44.5 36.9
2. Open drainage 37.3 44.3
3. No drainage 18.2 18.8
HHs (in %)
Type of Latrine Facility– India
Type of latrine Urban Slum
1. Latrine within the premises 81.4 66.0
(a) Water closet 72.6 57.7
(b) Pit latrine 7.1 6.2
© Other latrine 1.7 2.2
2. No latrine within premises 18.6 34.0
(a) Public latrine 6.0 15.1
(b) Open 12.6 18.9
HHs (in %)
Availability of Kitchen– India
Availability of kitchen Urban Slum
Total 100.0 100.0
1. Cooking inside house: 95.8 94.1
(a) Has kitchen 77.8 65.3
(b) Does not have kitchen 18.0 28.8
2. Cooking outside house 3.7 5.4
(a) Has kitchen 1.6 2.0
(b) Does not have kitchen 2.0 3.4
3. No cooking 0.5 0.5
HHs (in %)
Fuel used for Cooking– India
Fuel used for cooking Urban Slum
1. Fire-wood 20.1 25.8
2. Crop residue 1.4 1.6
3. Cow dung cake 1.7 2.1
4. Coal, Lignite, Charcoal 2.9 3.9
5. Kerosene 7.5 14.0
6. LPG/ PNG 65.0 51.3
7. Electricity 0.1 0.1
8. Biogas 0.4 0.5
9. Any other 0.2 0.3
10. No cooking 0.5 0.5
HHs (in %)
Households Availing Banking Services– India
Availing Banking Services Urban Slum
1. Availing 67.8 53.2
2. Not availing 32.2 46.8
HHs (in %)
Household Possessing Various Assets – India
Asset Urban Slum
1. Radio/Transistor 25.3 18.7
2. Television 76.7 69.6
3. Computer 18.7 10.4
With Internet 8.3 3.3
Without Internet 10.4 7.1
HHs (in %)
Household Possessing Various Assets– India
Asset Urban Slum
5. Telephone 82.0 72.7
Landline only 5.9 4.4
Mobile only 64.3 63.5
Both 11.7 4.8
6. Bicycle 41.9 40.2
7. Scooter/Motor Cycle/Moped 35.2 22.0
8. Car/Jeep/Van 9.7 3.6
9. None of the specified assets 7.0 10.7
HHs (in %)
63.5% HHs in Slums in India
has Mobile
Slum HHs Having
None of the Specified
Assets
Life in aSlum
Infrastructure: The Crucial Growth Factor
Indian economy is on the path to strong recoveryIt is expected that during 2011-12, India would revert
back to 9% GDP growthFast economic growth and growing population
have led to huge demand-supply infrastructure deficit
Lack of adequate and quality infrastructure is proving to be binding constraint in sustaining, deepening and expanding India’s economic growth and global competitiveness
Infrastructure deficit estimated to cost 1 to 2% growth in GDP every year.
Infrastructure Deficit
Roads & Highways- National highway network is 66,590 Kms which constitutes only 2% of total road network but carries about 40% of total traffic.
Power generation capacity- During the 11th Plan period, against revised target of 62,000MW capacity, capacity of 32,507 MW (52%) has been added. Peak power deficit range around 12-13%.
Ports- India has 12 major ports and 200 non-major ports which handle 95% of India’s trade in terms of volume and 70% in terms of value. However, the average turnaround time in India’s port was 4.54 days in 2009 compared to 10 hours in Hong kong.
Civil aviation- Only two airports viz., Delhi and Mumbai account for 43% of passenger traffic and 55% of cargo traffic in the country.
Urban Infrastructure- India has the second largest urban system in the world and 285 million people or 29% of the population live in urban areas. This is expected to reach 40% by 2021.
Telecom - In the area of telecom, India has done well. Teledensity (telephones per 100 persons) has grown from 1.9% in 1998 to 60% in August 2010.
Infrastructure Investment
Requirements In the 11th Plan period (2007-12), total infrastructure investment requirement has
been estimated at USD 514 billion. As per the Mid term appraisal of the 11th Plan, during the first 3 years of the
plan periodOf the projected investment of USD 245 billion, the actual investment
was USD 266 billion.This has been mainly due to over achievement in sectors like telecom,
electricity and airports.However, sectors like roads, ports and railways have shown underachievement.
During the 12th five year plan (2012-17), the total investment requirements in infrastructure sector would be USD 1 trillion.
The large investment requirements cannot be met entirely by the public sector. The role of PPP in the coming years will therefore gain more importance It is expected that at least 50% of the investment would have to come from the
private sector and by 2015-16, share of private investment will surpass public investment
Infrastructure FinancingCurrently, over 80% of infrastructure projects in
the country are financed by public sector banks.
Bank’s lending to the infrastructure sector has grown significantly over the years recording a compound annual growth rate of 49%
during the last 10 years.
Issues in Infra FinancingBank lending going forward is likely to be constrained:
1.RBI Prudential Exposure Norms• As per RBI prescribed prudential norms, in case of infrastructure
projects, banks can take exposure up to• For single party- 20% of their capital funds + 5% after approval of their Board• For group 50% of their capital funds + 5% after approval of their Board
1. Most of the banks are operating at ceiling levels having little headroom to lend further
2. The low resource base will not allow smaller banks to take large exposures as required in the case of infrastructure projects.
Asset-Liability Mismatch• 79% of the bank deposits have tenure of less than 3 years, while in the
case of infrastructure projects, the loans are generally for 10-15 years.
1.Thus, to mobilize the required resources, especially by way of private investment, it is imperative that we find alternative mechanisms for financing.
Financing by IIFCLIndia Infrastructure Finance Co Ltd (IIFCL)
established in January 2006, became operational in April 2006 to provide long term financial assistance to commercially viable infrastructure projects with overriding priority to PPP projects.
IIFCL providesLong term debt by way of direct financing
20% of the project cost is financed Loans to have average maturity of more than 10
years Subordinate debt finance Refinance to banks and other eligible institutions for
their loans to infrastructure projects in roads, ports, competitively bid power and railway projects
UK subsidiary provides foreign currency loans to Indian infrastructure projects.
IIFCL’s Portfolio
49
SECTOR
CUMULATIVE GROSS SANCTIONS
CUMULATIVE DISBURSEMENTS
No. of Projects
Amt Sanctioned
No. of Projects
Amt Disbursed
Road 92 12662 63 4014
Power 26 11951 23 4691
Airport 2 2150 2 706
Port 7 860 5 293
Urban Infra 3 704 1 11
PMDO 30 113 19 43
Refinance - - - 1500
TOTAL 160 28440 113 11258
Rs crore
•Projects sanctioned by IIFCL are spread over in 24 states of the country.
• Of the 160 proposals sanctioned, 137 (88%) cases have achieved financial closure which indicates that participation of IIFCL has helped in speeding up financial closure.
•Commercial Operation Date (CoD) has been achieved in 18 road projects and 2 port projects.
(As on 31st October 2010)
Need for alternative financing options
TAKEOUT FINANCINGIIFCL, a policy-based institution can partly
address the constraints faced by banks
Takeout finance can free up capital for banks and facilitate incremental lending to infrastructure
Takeout financing is a viable option before banks to address asset liability mismatch issue and group exposure constraint
Takeout financing scheme introduced by IIFCL in April 2010First set of takeout finance deals signed recentlyMore proposals in the pipeline
Need for alternative financing options
NEED TO DEVELOP CORPORATE BOND MARKET
The corporate debt market is at a nascent stage and is predominated by government securities.
Reasons for slow development of the bond markethigh compliance costslimited appetite for corporate bondspreference for bank loans compared to bondshigh stamp duty.
Bond markets need to be well developed to encourage greater participation by insurance and pension funds, and thereby reduce dependence on banks
Need for Long term Investors
• Insurance companies and pension funds are potentially a high source of long-term debt.
• Internationally, insurance companies invest on an average 25% of their funds in less than AA rated paper.
• However, in case of India, participation of insurance companies in infrastructure has been limited due to regulatory requirements.• Insurance companies are currently allowed to invest in debt securities rated AA and above.
Need for Credit Enhancement• Demand for debt instruments in India is largely limited
only to highest safety papers (AAA and AA rated papers)
• Around 72% of infrastructure SPVs in India are rated in the BBB and A categories, while an estimated 18% - 20% of infrastructure SPVs are rated in the sub – investment grade.
• A credit enhancement instrument that leads to an improvement in ratings of infrastructure SPV bonds raised by developers (SPV) would lead to major players with long term funds like insurance and PF getting enthused to subscribe to such bonds.
•IIFCL has taken up the task of evolving a credit enhancement product
Private Equity investments
• Domestic resources may not be sufficient to bridge the investment gap, thus, there is need to attract foreign capital.
• PE investors have shown keen interest in India’s infra sector:As per available data, during 2009-10, total PE investments
in power sector alone was USD 820 million in 14 deals• Recently, a PE deal for about Rs 400 cr was done in Road
sector• In 2010, till June, deal sizes in the range of USD 100-400
million have been done in infrastructure.
• The flow of PE investments in infrastructure sector should be increased through enabling policy environment.
Need for infrastructure equity funds
• Indian developers do not have enough long term equity resources
• Dedicated infrastructure funds provide long term high risk equity capital
• The longer term horizon of such funds help supplement strategic long term foreign capital
• Early stage incubation of infrastructure assets by infrastructure funds can, after they attain maturity, become suitable for annuity seekers like pension funds and insurance companies
Conclusion India continues to remain infra-deficit economy which is acting
as a binding constraint on achieving higher economic growth.
Development of corporate bond market, introduction of innovations like credit enhancement, securitisation etc is important
Long term investors like pension funds and insurance companies should be encouraged to invest in infrastructure sector through appropriate changes in policy and regulatory requirements.
Attracting foreign investments through PE investments and launching of dedicated infrastructure funds need to be taken up.