India plans to replace subsidies with bankable projects in urban sector

India intends to shift from subsidies to supporting bankable urban development projects.

Report informs that Sanjay Kulshrestha, Chairman and Managing Director of the Housing and Urban Development Corporation (HUDCO), said this during the panel discussion "Financeable Municipalities, Liveable Cities: How can cities attract long-term financing at the required scale?" held as part of the 13th session of the World Urban Forum (WUF13) in Baku.

"The Indian government is preparing to change the principles of financial support for urban local governments. Instead of allocating general subsidies, a system will be introduced to support the implementation of specific bankable projects. Federal budget funds will now be provided only if there is a detailed project in place. Reforms included in the 16th Finance Commission program, which apply to all urban local self-government bodies, will serve as an additional incentive," Kulshrestha said.