ULBs can’t deliver alone; private sector must look beyond housing to provide quality urban services: MoHUA Secy

“Imagine a future where you are aligning to the possibility of utility, transportation, and last mile companies being run by you, and large areas of services that are currently being provided only by ULBs being provided by you,” he said.

“Because that is the direction in which government policy is moving. It is no longer enough for ULBs to deliver services on their own. They must come together with the private sector and deliver high quality urban services,” Katikithala added.

These remarks come amid widespread social media outrage in recent weeks over deteriorating urban infrastructure — from waterlogged roads and mounting garbage to inadequate public transport and poor-quality construction.

Katikithala said the government is spending lakhs of crores on roads, railways, water supply, and sewage systems. “But what is happening is that there is a dissonance between where we are developing residential or commercial spaces and where the infrastructure is being laid,” he added.

“No doubt, this is a function of planning and coordination, and we all need to align ourselves. But I urge you to identify and pursue opportunities where infrastructure has already been built, because in the long run, what you are building is going to be supported and augmented by this infrastructure,” Katikithala told the industry.

According to him, since 2014, Rs 30 lakh crore has been invested in developing urban infrastructure, compared to just under Rs 2 lakh crore between 2004 and 2014. “I must bring to your notice — and this should cause great alarm — that of this Rs 30 lakh crore, I would be surprised if this room has participated in more than Rs 25,000 crore. That is the missed opportunity I want to draw your attention to. When we look at the urban sector, please look beyond housing; do not look at housing alone,” Katikithala said.

Urban infrastructure is also increasingly strained by climate change. A recent World Bank report estimates that Indian cities will need $2.4 trillion by 2050 to build resilience against shocks such as flooding and extreme heat. Without adaptation, annual pluvial flood-related losses could reach $5 billion by 2030 and $30 billion by 2070. Alongside greater private sector participation, experts stress that empowering ULBs with more autonomy is essential for mobilising resources and upgrading infrastructure.