Housing and Urban Affairs Ministry calls for India Inc. to partner with municipalities for urban infrastructure development

D Thara, Additional Secretary, Ministry of Housing and Urban Affairs, delivering the keynote address at a CII conference on "Exploring Urban Dynamics: Outlook 2030” in Delhi today, urged India Inc. to take up infrastructure building in cities in partnership with municipal corporations to create the new urban India story. "India is a rich nation with poor municipalities,” she remarked. “Infrastructure must be delivered—if the private sector can do it better, let them.”

There is a disconnect between India’s economic ambitions and the capacities of its urban local bodies, she said, urging the private sector to proactively engage in the urban development of the country. This becomes even more important as urban India is set to see an estimated 70 million new urban residents in the next two decades by 2045, she said, adding that it poses challenges as well as opportunities, as the country will see the creation of many more cities calling for a pragmatic, revitalization-first approach to urban development.

She underlined the need for targeted interventions to upgrade existing cities, backed by significant investment. The proposed Urban Challenge Fund, she explained, is intended to catalyze this transformation with a mix of 25% public sector seed funding, 50% market capital, and 25% state contribution. “It’s not about building afresh,” she said, “it’s about fixing what already exists—legacy infrastructure, greenfield areas, and urban governance systems.”

Prasad Gadkari, Executive Director & Chief Strategy Officer at NIIF, echoed the importance of enabling frameworks to unlock capital. “A robust pipeline of projects, predictable revenue streams, and standardized bidding processes are essential,” he said, noting NIIF’s readiness to back urban infrastructure initiatives through scalable public-private partnerships.

Abedalrazq Khalil, Practice Manager for Urban and Land at the World Bank, placed India’s urbanization in global perspective. “By 2050, 800 million people are expected to live in Indian cities. Cities must be enablers of growth—but many are not yet ready.” He emphasized the need for integrated planning and livability as critical to attracting private investment.

Transport integration also featured prominently, with the Regional Rapid Transit System (RRTS) cited as a model for enabling distributed urban employment. In-situ slum redevelopment and smaller-scale, private-led urban initiatives were also discussed as vital components of revitalization.

The conversation repeatedly returned to the need for local capacity. “Ward-level accountability is key,” said Thara, pointing to the need for institutional support to empower smaller municipalities to tap funds such as those managed by NIIF. Regulatory enablers, including those supporting Transit-Oriented Development and flexible work models, were also cited as tools for urban regeneration.

Sriram Khattar, Co-Chair, CII National Committee on Real Estate and Housing, noted that urban PPPs, once uncertain, have now gained credibility. Dr. Debolina Kundu, Director of NIUA, added that effective urban governance, capacity building, and low-carbon infrastructure would be essential pillars of India's urban strategy to 2050.