Policy Update
Varalika Raizada
Introduction
According to the census 2011, nearly 78 million individuals migrated from rural to urban areas. This increase was due to the availability of better opportunities, higher wages, better education and healthcare in the urban areas. This migration along with the naturally increasing population growth and expansion of borders accelerated urbanization.
By 2011, the urban population had increased to 377 million, constituting 31.16% of the total population. However, this booming urbanisation and excess population demands infrastructure, facilities and amenities that have led to increased traffic congestion, housing shortfalls, challenges in water supply, sewerage, drainage and solid waste disposal and environmental degradation in the megacities. These megacities became the hub of core economic activity and popular spots for urban migration, putting enormous pressure on the quality of public service delivery.
To manage this unplanned expansion of borders there was a need for the development of satellite towns and cities to decongest the overstrained core cities, and promote balance and sustainable living.
The scheme for satellite towns around seven megacities referred to as the Urban Infrastructure Development Scheme for Satellite Towns (UIDSST) was launched in 2009 by the Ministry of Housing and Urban Affairs (MoHUA), as a sub-component of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). This scheme aims to strengthen infrastructure in satellite towns around the seven megacities, and decongest growing urban centres and initiate planned development in the vicinity of megacities. This scheme however lapsed in 2018 due to suboptimal performance with only 41.17% of the 17 sanctioned projects completed.
Background
Satellite towns are smaller municipalities in the vicinity of the metropolitan areas. They are designed cities to house the overspillage of population from the major cities, operating as discrete and self-contained entities. Satellite towns are however dependent on the parent city for major specialised services. Conceptually these counter-magnet cities and towns are self-sufficient communities functioning as part of a metropolis through cross-commuting.
The fundamental benefits associated with satellite cities are decongestion of the main city, development of economic sub-centres, best utilization of land, strengthening overall growth and resource optimization. This concept gave good results in countries like the USA, UK and France during the sixties and seventies. Planned interventions can successfully modify urban development patterns, as shown by examples of Copenhagen and London. Such developments offer significant financial, ecological, and social benefits for megacities. The project was officially initiated in 2010-11, after nomination by the states for satellite cities, co-terminus with the 11th five-year plan.
Objectives of the scheme were as follows-
- Developing urban infrastructural facilities like transport, drinking water, sewerage, drainage and solid waste management in satellite cities and urban agglomerations covered under the JNNURM
- Enhance environmental sustainability of urban infrastructure by implementing energy audit , water audit, cost effective technologies, capacity enhancement etc.
- Adopting public-private partnership (PPP) models for facilitation in the development of satellite cities
- Reservation of 10-15% of housing sites for the urban poor for economically weaker section/low-income groups through legal stipulations and spatial incentives.
- Initiating reform in the urban local bodies (ULBs)-
- Adopting a modern double accounting system
- Introduction of e-governance using IT applications, Geographical Information Systems (GIS) and Management Information Systems (MIS) for various urban services
- Reform of property tax to raise collection efficiency to 85%.
- Levying of reasonable user charges to collect the full cost of operation and maintenance within seven years
- Internally earmarking budgets for the provision of basic services and housing sites for urban poor
- Formulating bye-laws including provisions for disaster management, rainwater harvesting, recycling of wastewater and structural safety, all in compliance with the national building code
- Implementation of public discourse law and community participation law.
Coverage of the scheme
The pilot phase of the scheme included 8 satellite towns of seven megacities. The scheme was a pilot project meant for seven megacities and satellite towns – Vikarabad (near Hyderabad), Sanand (near Ahmedabad), Hoskote (near Bengaluru), Vasai-Virar (near Mumbai), Pilkhuwa and Sonepat (Delhi), Rajarhat (Kolkata) and Sriperumbudur (near Chennai), as nominated by the states. The towns were to be planned for accommodating 3-5 lakhs population in case of 1 million + cities and 5-10 lakhs population for megacities.
Scheme Funding
This is a centrally sponsored scheme with the centre contributing 80% of the funding needs, 10% to be contributed by the state government and the rest 10% by the urban local bodies. City development plans and detailed project reports are the prerequisites for the receipt of central funding. Funding was contingent on infrastructure readiness and demonstrated need. Along with this the state governments and urban local bodies were encouraged to explore innovative financing options such as PPP and any other external assistance. Financial appraisal was required for the development plans for each case. The funds were released to the respective state nodal agency in four installments of 25%, depending on the satisfactory receipt of utilization reports.
Implementation
Preparation of City Development Plan (CDP)
To match the availability of funds with the costs of development, the CDP’s were broken down into short-term action plans to be carried out in a phased manner. The CDP are strategic planning documents prepared by the urban local bodies for the articulation of their long-term development visions, identification of investment requirements, assessment of infrastructure gaps in water supply, sewerage, transport, solid waste management and outlining of timelines, costs and implementation models.
This also includes the preparation of the city region plan accounting for land use, environmentally sensitive ones and heritage precincts. In addition, the project was intended to help establish linkages between parent cities and satellite towns through a metropolitan planning committee overseeing the city master plan and regional plans.
The city development plan consisted of –
- Assessment of the physical and natural resources and spatial analysis of the land use pattern, road and other infrastructure network
- Development of sectoral infrastructure plan and provision of efficient linkages with the urban centres
- Assessing the activity nodes comprising industrial, commercial and trade locations which can serve as the nucleus for development
- Investment plan for phased development
- Resource mobilization plan, investment proposals and priorities for private sector participation
- Institutional and legal framework for designating responsibilities and coordination between government agencies, private sector, and Non-Governmental Organizations
Based on the prioritization of development envisaged in the City Development Plan, Detailed Project Report was to be prepared by the concerned Urban Local Body of the city and sent through State Government to the Ministry of Urban Development, Government of India for consideration.
Training Programmes
Strengthening the satellite towns’ current internal capacity for CDP preparation was the main goal of the project’s capacity-building component. A mix of several consultation delivery methods are proposed under the strategy and these are as follows: hands-on City Workshops Cluster Based, theme specific Rapid Training Programmes, Knowledge Support, Call Help Desk, National Exposure Visits and International Exposure Visits.
Monitoring and Evaluation
The monitoring is carried out periodically by the Ministry of Urban Development through designated officers for each state and union territory. Quarterly progress reports and completion reports upon project completion are to be sent by the urban local bodies through the state government to the ministry. Town and country planning (TCPO) will act as the nodal agency under the ministry for periodic review of the scheme along with representatives from Central Public Health & Environmental Engineering Organisation (CPHEEO).
Achievements and Impact
1. Infrastructure Upgrades in Target Towns
The expansion of basic urban infrastructure in the satellite cities was one of UIDSST’s fundamental achievements. Despite being smaller in scale, the projects initiated under the scheme ensured the availability and provision of basic facilities like water supply, waste disposal, roads and drainage systems:
- Ghaziabad and Faridabad the satellite towns of Delhi experience improvements in water supply networks and road infrastructure, alleviating the infrastructural strain on Delhi
- The 24.96 crore solid waste management project initiated in Sonipat, Haryana saw more than 40% progress despite blockages in land acquisition. Eventually, a Waste to Energy (W2E) plant was installed in the city for handling urban waste with support from the private sector.
- The satellite cities of Chandigarh, Mohali and Panchkula were able to gain progress in solid waste management reaching 60-70% collection efficiency in the residential areas, despite financial restrictions.
2. Capacity Building for Urban Local Bodies (ULBs)
The UIDSST took an innovative step to bolster the urban local bodies, especially in communities that were historically behind in technical and planning capabilities, by providing training and capacity-building programmes. The members of the ULBs gained skills from the training programme, which were also utilised in later missions like AMRUT and Smart Cities Missions.
3. Strategic Focus on Metropolitan Decentralization
UIDSST was one of the first national schemes to explicitly recognize the value of peri-urban and spillover cities as a means of mitigating the strains imposed by the ever growing megacities. The scheme was successful in promoting the idea of metropolitan areas rather than just the core city, limiting unplanned urban growth and enabling balanced regional growth. This calculated action made it easier to advance the more comprehensive idea of polycentric urbanization.
- A new planned city with residential, recreational, IT and commercial spaces was created in Rajarhat New Town, relieving Kolkata’s traffic.
- With a comprehensive golf course, expansive Central Park, and planned corporate zones for employment self-sufficiency, Navi Mumbai has grown to become one of the megacity’s biggest commercial hubs and revenue generators.
4. Greater success Rates in Select States
Certain states, like Gujarat and Maharashtra, have greater success rates than the national average of 41%. These states were able to effectively execute the majority of their UIDSST projects due to the more efficient institutional procedures, aggressive local leadership and prudent budgetary planning. For example-
- Sanand’s sewer infrastructure saw immense improvement. The 35.09 crore sewerage system project undertaken in Sanand, Gujarat was completed 60%, indicating betterment in sanitation facilities and public health.
- Despite not directly benefiting from all the centre’s funds under UIDSST, Gurugram served as an example of how judicious land use and infrastructural upgrades can transform a satellite town into a major global business hub.
Challenges
1. Weak Monitoring and Institutional Oversight
The report shared by the comptroller and auditor general finds weak monitoring and evaluation systems in place. An accountability gap has resulted from the Ministry of Housing and Urban Affairs (MoHUA) failure to carry out periodic evaluations and to submit quarterly progress reports.
For instance, in Sonipat, despite claims of 100% financial backing and 40% physical progress, the Town and Country Planning Organization’s (TCPO) inspection team’s most recent progress report could not be tracked down on file. This is indicative of serious oversight and documentation flaws. The scheme’s use of funds was problematic. The fact that use certificates worth ₹63.32 crore of the ₹459.7 crore that the Center had released were still pending showed that the states had not submitted their financial reports on time.
2. Delays in Project Implementation
A delay in implementation was evident in many UIDSST projects. Only about 41% of authorised projects had been finished by 2024, indicating subpar execution timelines. For example in Sonipat, a solid waste management project that was approved in 2011 and delayed by three years due to problems in land acquisition, was completed only 40% in ten years.
Similar to this, Sanand, Gujarat had 100% financial investment for a sewage project but only 60% physical progress, indicating inefficiencies in implementation. The Navi Mumbai Metro project initiated in 2011 was delayed due to changes in plans, problems with contractors, opposition and issues in land acquisition These delays increased costs for the commencement of the project. The project was recently completed in 2023.
3. Infrastructure Deficits
This scheme was initially intended as a haven for crowded metropolises. However many satellite towns were discovered to have inadequate basic service delivery. The shortages in water supply in Navi Mumbai and Gurugram frequently impacts the people’s quality of life. In cities like Mohali and Panchkula, solid waste management remained inefficient with collection effectiveness only reaching 10-20% in informal settlements. In Gurugram, slums lacking basic healthcare and sanitation are contrasted with affluent housing estates.
4. Uncontrolled Urbanization
The goal of UIDSST was to support planned regional development in the vicinity of megacities. However uncontrolled growth, particularly in places like gurugram has led to replication of conditions of the parent cities. For example Gurugram unchecked growth has led to problems of water supply, pollution, traffic congestions and subpar housing, all of which were supposed to be resolved by the city’s designation as a satellite town. Gurugram is a powerful representation of India’s quick, chaotic urban expansion.
Conclusion
The Urban Infrastructure Development scheme for Satellite Towns was a progressive method to deal with India’s rapid urbanisation. This scheme addressed the most pressing needs of India’s urban areas to relieve the strain on the crowded megacities. Although the scheme had considerable triumphs, its overall enactment exposed a few operational and structural flaws due to which the scheme eventually lapsed in 2018. The scheme’s impact was limited by pivotal problems such as inadequate monitoring, delayed implementation, financial mismanagement and improper governance.
Looking back, the UIDSST experience provided vital lessons. Comprehensive planning, sustainable resource management and efficient stakeholder cooperation must be given adequate attention in the newer urban policy programs. For the success of satellite towns adequate financing is crucial. However, finding workable finance options, including public-private partnerships or foreign investment, is often a difficult task. The discontinuation of the UIDSST reflects the evolving priorities and lessons in India’s urban governance landscape. Its core ideas have persisted in the later programs and policies like AMRUT, the Smart Cities Missions and PMAY- Urban which have embraced more integrated, holistic, data-driven and scalable strategies. Given India’s ongoing fast urbanisation, the emphasis must remain on well-planned and inclusive urban development strategies.
References
- Bandyopadhyay, S., Centre for Environmental Planning and Technology (CEPT), (2010). Cities Alliance. Submission of proposals: application form. https://www.citiesalliance.org/sites/default/files/CA_Images/India%20Planning%20Support%20to%208%20Satellite%20Towns%20of%20Megacities%20final%20proposal%2015Oct2010.pdf
- Chitlangia, R., & Chitlangia, R. (2025, March 2). Only 41% projects under housing ministry’s now-lapsed satellite town scheme complete, CAG tells Centre. ThePrint. https://theprint.in/india/governance/only-41-projects-under-housing-ministrys-now-lapsed-satellite-town-scheme-complete-cag-tells-centre/2165260/
- Deepthi, S., & Shobha, M. (2019). Satellite Towns: An Emerging Need for Metropolitan Cities. Journal of the Institute of Town Planners India, 16(2), 32-41.
- G, Pavithran, & Dr. N Jyothilakshmi, Saveetha college of architecture and design. (2023). Realizing the Potential of Satellite Cities through Integrated Planning. International Journal of Novel Research and Development (Vol. 8, Issue 11). https://www.ijnrd.org/papers/IJNRD2311010.pdf
- Mookerji, N. (2013, January 19). Satellite town plan to go beyond 2012 deadline. https://www.business-standard.com/article/economy-policy/satellite-town-plan-to-go-beyond-2012-deadline-111042100014_1.html
- Nirmal, V. (2014, September). Satellite Cities: the only Hope of Megacities: A case of Indian scenario. In 3rd World Conference on Applied Sciences, Engineering & Technology (pp. 1-6).
- Rana, R., Ganguly, R., & Gupta, A. K. (2017). Evaluation of Solid Waste Management in Satellite Towns of Mohali and Panchkula–India. The Journal of Solid Waste Technology and Management, 43(4), 280–294. https://doi.org/10.5276/jswtm.2017.280
- Tnn. (2009, January 25). Satellite towns to come up in city’s outskirts. The Times of India. https://timesofindia.indiatimes.com/city/ahmedabad/satellite-towns-to-come-up-in-citys-outskirts/articleshow/4031131.cms
- Verma, P. S. S. Satellite Towns Around Delhi. Lok Sabha. Government of India, Ministry of Housing and Urban Affairs. https://sansad.in/getFile/loksabhaquestions/annex/179/AU3200.pdf?source=pqals
- Swarajya Staff. (2023, October 24). Navi Mumbai Metro’s decade-long wait to end soon: Line- 1 likely to be launched by Prime Minister Modi on 30 October. Swarajya. https://swarajyamag.com/infrastructure/navi-mumbai-metros-decade-long-wait-to-end-soon-line-1-likely-to-be-launched-by-prime-minister-modi-on-30-october.
- Munshi, S.K. (2023, September 4). CIDCO plan to develop Kharghar int commercial hub begins. Hindustan Times. https://www.hindustantimes.com/cities/mumbai-news/cidco-kick-starts-ambitious-plan-for-international-corporate-park-in-kharghar-with-rs-11-3-crore-compound-wall-101693827032399.html
About the contributor– Varalika Raizada is a research intern at IMPRI.
Acknowledgement- The author extends her sincere gratitude to Aasthaba Jadeja and fellow interns, who provided guidance throughout the process.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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