MEDC Economic Digest Vol XLII No. 2 pp 16-19
Fault-lines in Master plans and plan making for City development:
Reform agenda
Ramakrishna Nallathiga
Associate Professor
National Institute of Construction
Management and Research,
25/1, Balewadi
Pune – 411 045
e-mail: [email protected]
1. Introduction
Planning has occupied much of the importance in India‟s past. Economic Planning had
been central to its economy in the post-independence era until the 1990s. While
economic planning has been changing the course towards changing over the last two
decades with liberalization of economic activities, such changes in town planning have
not been coming forth. Town planning, or urban planning, is an important instrument to
plan and achieve urban development. Master Plans prepared under such system primarily
confine to the aspects of land use, physical infrastructure and development control.
However, they have received an increasing amount of criticism on several grounds in the
past. We will discuss the underlying shortcomings of the current approach taken towards
town planning practice (both plan making and implementation). Here, though we make
reference to the town planning in India, in general, our primary intention is with reference
to the process – formulation, implementation and evaluation of planning. We will first
take an overview of Master planning system developed over time before critically
examining the approach and process. Subsequently, the need for reforms in and alternate
approaches to town planning is discussed.
2. Master Planning System in India
Master plans have emerged as the standard instruments of planning to be developed by
urban local governments in India. This was primarily achieved through the Town and
Country Planning Acts of various States. These Acts have mandated the development of
Master Plans for the development of cities conceivable in the next 20 or 25 years. The
Master plans, or development plans, featured the land use plan – present and proposed –
and development control restrictions. In many Indian States, this involves an estimation
of future population, socio-economic conditions and their infrastructural needs and the
preparation of land use and infrastructure plans for ensuring that the necessary facilities
are in place when the development takes place.

Formerly Knowledge Manager at the Centre for Good Governance (CGG), Dr MCR HRD Institute
Campus, Road No. 25, Jubilee Hills, Hyderabad – 500 033 (AP) INDIA
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Master planning aims at improving the urban environment as the efficiency of urban
settlements largely depends upon how well they are planned, how economically they are
developed and how efficiently they are managed. Planning inputs largely govern the
efficiency level of human settlements. In one sense, master planning is basically an
exercise of resource planning, generation, development and management (Tiwari 2002).
The master plan, which was perceived to be a process rather than a conclusive statement,
provides guidelines for the physical development of the city and guides people in locating
their investments in the city. In short, Master Plan is a design for the physical, social, and
economic development of the city, and also to improve the quality of life as well.
Master plans are forward planning tools that anticipate urban development and make
provisions for the same on city space in terms of (Nallathiga 2007): (a) the allocation of
land for various uses, (b) the regulation of its development and (c) the provision of civic
infrastructure. These plans were also supposed to make proposals/schemes for the
provision of various facilities and ensure that the basic amenities/services are in place; in
that process, they were also to guide the urban development. This approach certainly
assumes the State, or government, as the major producer of all goods and services –
public and private, which was the thinking prevailing for a quite long time in the history.
2. Master Planning Experience in India - Critical Assessment
The concepts and methods of the traditional Master Planning in India owe their origin to
the British town planning laws. The Master Plans have primarily confined to the aspects
of land use, physical infrastructure and development control. However, they have
received an increasing amount of criticism on several grounds, which we will examine.
2.1 Improper Systematization of Planning
First of all, the plan-making process in several Indian States itself is not well laid down.
The legal framework provided by the Town and Country Planning Acts draw the bounds,
procedures and constituent elements. They do not provide any specific time frame and
organization in order to complete the planning process in a meaningful manner. As a
result, each of the State follows/ adopts its own approach and model that give a good
amount of variation and the resulting uncertainty to the outcome. Moreover, different
towns/cities in a State prepare plans at different time points and the State planning agency
is pre-occupied with preparing the plans over a period of time. This gives the nonharmonious outcome of different Master plans in different state within a State.
2.2 Inadequate Processes
Town planning is an instrument for orderly urban development; however not many towns
in every State have development plans for their towns. The process followed is not in-line
with the desired process, such as that suggested under Urban Development Plan
Formulation Implementation (UDPFI) guidelines of the Government of India, and several
States are at different stages of plan development across the cities and towns in them.
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Most of the plans are not co-terminus with urban local government, which leads to
interventions in master plan at later stage or in its implementation stage by obtaining
deviations from plan proposals. Much of the development plan/ building permission is
made at the hands of the officers of urban local government (bureaucrats) and the
members of urban local council (politicians) that leads to elite capture and lack of
accountability to the decisions taken. The lack of appropriate master plan in itself leads
to mis-appropriation of powers in the vested interest groups that manipulate urban local
government (bureaucrats-politicians) to allow development that they want on city-space.
2.3 Improper Plan Design
It is also held that the design and approach of master plan is becoming far too simplistic,
especially in anticipating development needs/ citizens‟ aspirations; their very long tenure
has been a major hindrance to anticipate socio-economic and technological changes over
time horizon. This is due to the technical nature of planning that fails to capture socioeconomic changes as well as technological changes in a meaningful manner. Much of the
estimation and planning of infrastructure services assumes outdated norms, standards and
technology of the past, which have a legacy effect on planning. This also results in the
lack of proper link between infrastructure planning and implementation. The format of
planning emphasizes too much on land use and does not provide adequate room/
opportunity to come out with proper „urban design‟, which takes into account of the
vertical space. This becomes important in the context of continuous expansion of city
limit/ boundary becoming environmentally unsustainable and compact city development
as guiding choice of a city (Nallathiga 2008). The integration of land use and transport
planning is vital given the fact that transport is a key determinant of land use and “leads”
development, which is at times ignored. In fact, urban land use planning and
transportation planning have to go hand in hand rather than one preceding/succeeding to
another.
2.4 Inadequate Procedures
It is also held that the master plan formats fail to meet the aspirations/ expectations of the
citizens due to not only elite capture taking place at top level but also lip-service given to
public participation in planning process. The consultation procedures (in the form of
objections and suggestions) that are followed in plan making are inadequate to ensure
proper public participation in plan making. Plan making procedures also do not provide
adequate attention to stakeholder consultation in order understand the issues and
priorities, and, as a result, they are not aligning themselves well with urban development
priorities. The decision makers are now on look out for other means/ strategic instruments
for achieving the development objectives. Planning system in Indian States needs to be
overhauled and streamlined so that some of the above challenges can be met. Procedural
guidelines have to be evolved for the public participation in planning.
2.5 Poor implementation linkage
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Finally, the approach taken towards plan implementation is fraught with financial
challenges and also the risks of legal challenges in the cases of land acquisition. Planning
system in Indian States needs to be overhauled and streamlined so that physical plans
have some link to the socio-economic system and public finance (inter-governmental tier
of financing). Planning time horizons have to be well integrated with the financial
planning cycle as well as annual budget cycle of local government so that the proposal
will find some reflection in the fiscal plan of urban local government. It also needs to be
well linked to the development of land, financing and land administration in order to
become more realistic. Plans have to move beyond the traditional straight jacket approach
and adopt strategic and project dimensions. Plan implementation needs to be given more
serious attention especially through pro-active proposals, incentive-based policy,
adoption of complimentary instruments and utilizing land based instruments. It is hoped
that only with reforms and renewal of planning system, plan making and modified
approach, the plans would become successful in meeting their objective and enable the
citizens in meeting with their aspirations.
2.6 Improper Outcomes
Yet, there is a widely held view that the Master planning methods adopted over the last
few decades in India have not produced a satisfactory physical environment (Tiwari
2002) and have not been effective in the outputs as well as outcomes (Meshram 2006).
The planning process in the past has been unduly long and largely confined to the
detailing of land use aspects. Functionally, master plans paid inadequate attention to the
provision of trunk infrastructure, environmental conservation and financing issues, the
last one rendering them to be unrealistic proposals without budgets (Meshram 2006).
Moreover, master planning approach lacked a holistic view of urban development and did
not deal with interconnecting issues. For example, in most cities, master plans have not
been translated into socio-economic development plans and investment programmes and,
often, the physical planning exercises were restricted to core urban areas without much
integration with the peripheral areas and rural hinterlands (Tiwari 2002). Attempts to
adopt an integrated development plan approach, based on national, state and regional
strategies and recognition of the spatial and functional linkages between settlements of
different orders have not been made much (Meshram 2006).
3. Reform Agenda and Alternate Approaches
3.1 Reform Agenda
(a) Streamlining development plan making process
The plan making by the States and urban local bodies has to follow the standard format of
plan making prescribed under the UDPFI Guidelines, which call for
 Preparing long term perspective plan (in lieu of general development/master plan)
of socio-economic development at 20 year time horizon
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
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Preparing medium term development plan at every 5 years (co-terminus with
period of local government) in line with perspective plan
Preparing annual plans giving details of physical and financial improvements
Developing projects/schemes of execution with proposals for adequate
investments/ finances
(b) Improving the governance of plan making
When it comes to providing public service, governance matters. The governance of
planning process has to improve significantly by adopting several changes in the current
system of plan making. This calls for the following not-all-inclusive steps:
 Consulting all major stakeholders while preparing perspective plans, deliberating
on the view points in order to set priorities and addressing their concerns
 Allowing public-participation in land use/ development plans through the
strengthened process of inviting objections/ suggestions, addressing them in the
plan and then communicating it with public
 Improving the transparency of plan making through
 (a) public display of maps in key public locations, offices of local
government, designated offices/stores and on internet,
 (b) providing information/ data upon request, especially when it comes
through the provisions under RTI Act 2005
 Making planning officers accountable for the decisions taken, especially in the
cases of making/doing favours in terms of allowing deviations, change of use and
development permission as well as allocations
 Making the planning departments and local government to become compliant
with Right to Information Act provisions in a time bound manner
(c) Streamlining of the planning/development permission process
Currently, there is a weak linkage between plan formulation and plan implementation,
which is done through planning/ development permission and limited amount of land
acquisition, which is leading sub-optimal outcomes. There is a need to enhance the flow
of land for the allocated used by streamlining land use conversion (from agriculture/rural
to non-agriculture/urban) by a variety of internal process improvements such as:
 Reducing the time taken to change land use by setting a time limit of not more
than 30 days
 For large cities, making it mandatory to have either regional plan or fringe area
plans providing for development in areas adjoining them
 Making conversion process more rational by making it subject to scrutiny by
regional plan/ fringe plan
 Bringing change process under automatic permission system in urban areas within
their jurisdiction
 Revenue authority to have minimum role in the conversion permission process
 Standardising application processing by various departments with service
standards and improving the process transparency of building permission through
better monitoring systems
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
Introducing IT and its applications into the processing of applications and award
of permit
Instituting strong inspection and monitoring systems
(d) Improving the implementability of plan
The plans have to make a clear assessment of ground level conditions and simulate them
to future scenarios. They have to develop a direct linkage between plan objectives/
provisions and practical development projects. Land related information and issues need
to be dealt with in a strategic manner and in association with private parties wherever
they are a party that gets directly affected by the decision.
 Assess the land use changes and future development requirements and provide for
them explicitly in the physical plan
 Estimate the financial requirements of the above and either budget it or make use
of other means of development e.g. PPP
 Assess the infrastructure development requirements and prepare investment/
financing plans for meeting the same
 Develop/float separate schemes for achieving the goals/ objectives of
development plan
 Review and revise the development plan at a pre-set periodicity in order to be in
line with ground situation
(e) Complimentary instruments/ schemes
There are several other instruments and approaches that can be used for making the
master plan/ development plan operational, especially with reference to the development
of amenities/ facilities that it proposes. Some of them may be purely financial
instruments (such as various choices of market finance) but some of them may be purely
alternative approaches that can be categorized into:
 Operational instruments/schemes that make operational plan for financing the
development of land as per development plan involving tools like
 Reservations of land for amenities
 Transferable Development Rights
 Town Planning Schemes
 Special Townships
 Financing instruments that make use of market investments/finance for
developing infrastructure and providing amenities using
 Funding channels of Government
 Market Finance (Debt, Bonds etc)
 Public-Private Partnerships
4.2 Alternate Approaches
There are few alternate approaches that have been emerging in the country that
follow a different suite/format of planning by encompassing some of the above shortfalls
into the design process (whereas this trend is well followed by the Latin American cities).
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Mumbai city has come out with such a unique and bold approach that is drastically
different from the approach and aspects of the City development plan prepared by urban
local government. It set an alternate perspective through a “Vision Plan” that presented a
development vision of city and a set of actions that need to be undertaken in order to
realize the aspirations of vision. The strategic actions lay down directions for city
development to primarily deal with economic development, physical infrastructure, social
infrastructure, development financing, governance improvement, quick wins or
immediate interventions and implementation mechanism. Besides this structure, a
blueprint outlining the interventions, institutions, financing and implementation structure
for achieving Mumbai development vision has also been prepared which can be found in
Bombay First-McKinsey (2003). In fact, it gave tremendous push to city development
and got approval by the State government in the form of a report of the Government
Taskforce as GoM (2005) spelling out proposals based on the Vision Plan.
The Cities Alliance, an arm of the World Bank, has now come out with a practice
hand book that suggests the methodology for undertaking the preparation of Strategic
Development Plans for the City development (Cities Alliance 2006). In fact, it suggested
that India needs many such bold plans such as that of Mumbai in order to set a different
tone to the development of cities.
5. Summary and Implications
Master plans or Development plans have been the origins of change in the urban
environment – both physical and socio-economic – in India for the past several decades.
The result of this traditional planning approach in the form of master plans is turning out
to be frustrating because of the unrealistic plans; long time taken for their preparation and
approval, ill adequately or inadequately thought or planned proposals etc. These features
of plans and plan making together with implementation hurdles are forcing the
exploration of alternative methods. Moreover, urban planning in the past was primarily
influenced by central planning principles of the post-independence era and assumed the
characteristics of monopolist. In the liberalized era and globalised world, the planning
processes have to serve the economic and social objectives of the society through
creation of a growth enabling physical environment. This changing context itself calls
for identifying alternative approaches and strengthening existing planning mechanisms
and institutions. The latter has been discussed to some extent in the decentralization of
development planning to local level under the constitutional (74th Amendment) Act,
together with the responsibility of resource and financial management, but the former
requires new approaches that complement the traditional planning, one of them is the
vision planning or perspective development planning, which is discussed in the paper.
However, they failed to meet the expectations of the citizens as well as the decision
makers for several reasons: their design and approach were far too simplistic in
anticipating the citizens‟ needs and aspirations; their very long tenure has been a major
hindrance to anticipate socio-economic changes over time horizon; further, the restrictive
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approach taken to their implementation without adequate flexibility to meet the changing
needs of hour has been acting against the spirit of urban planning. Essentially, it is
because of these inadequacies in the plan design, plan making and plan implementation
that there is a need felt now on steering an alternative course for achieving the city
development goals. Vision plans, in this context, have emerged as alternative
instruments useful for achieving the city development goals over a medium to long term;
and they are increasingly becoming popular in the cities across the USA as well as
elsewhere. It serves as an example worth emulation to other Indian cities that are aiming
to improve their urban environment. Mumbai‟s experiment is considered as bold and
highly ambitious (Cities Alliance 2006), while other cities can evolve different models to
provide a perspective of the city‟s development in the next ten year time horizon.
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