COMMERCE PROJECT - 2

Introduction to Infrastructure
Infrastructure refers to the fundamental facilities and systems
that support the sustainable functionality of a society or
economy. This includes services like transportation,
communication, water supply, waste management, power
grids, and more. Effective infrastructure plays a vital role in
economic growth by improving efficiency, enhancing
connectivity, and providing essential services to the public. It
enables smoother movement of goods and people, increases
productivity, and creates an environment conducive to
economic activities.

Infrastructure is broadly divided into two types:

● Physical Infrastructure: Roads, bridges, railways, ports,

airports, etc.
● Social Infrastructure: Schools, hospitals, housing, and
recreational facilities.

Governments worldwide invest in infrastructure development

to drive economic growth and improve living standards. India,
being a developing nation, has initiated several schemes to
promote and develop urban and rural infrastructure. One of
the key initiatives is the ATAL MISSION FOR REJUVENATION
AND URBAN TRANSFORMATION (AMRUT)
Objectives of AMRUT

1. Universal Water Supply

● Goal: To ensure every household in selected urban areas

has access to a reliable tap water connection.
● Specific Targets: The mission aims for 135 liters per
capita per day of safe, treated water for all urban
residents. This includes both direct home connections
and public water distribution points in underserved
areas.
● Broader Impact: Reliable access to clean water improves
health and hygiene and reduces the time and resources
spent on collecting water, especially benefitting
low-income households and women.
2. Sewerage and Septage Management

● Goal: To develop comprehensive sewage systems to

manage wastewater effectively and to provide every
household with a connected sewage line.
● Specific Targets: AMRUT seeks to upgrade sewage
treatment facilities, expand sewage networks, and
introduce environmentally friendly wastewater treatment
technologies.
● Broader Impact: Proper sewage management is critical
to prevent waterborne diseases, reduce water pollution,
and promote public health. Effective sewage treatment
also protects local rivers and water bodies from
contamination, benefiting the ecosystem.
3. Stormwater Drainage to Reduce Flooding
 ● Goal: To build and maintain adequate stormwater drainage
systems that can manage excessive rainfall and minimize
urban flooding.
● Specific Targets: The mission includes the installation of
stormwater drains in flood-prone areas and developing
infrastructure to manage rainwater effectively.
● Broader Impact: Flooding disrupts life, damages
property, and impacts vulnerable communities the most.
Effective drainage protects urban areas from seasonal
floods, mitigates damage, and contributes to a safer living
environment.
4. Urban Transport Improvement

● Goal: To develop safe, affordable, and eco-friendly urban

transport solutions that ease congestion and reduce
pollution in cities.
● Specific Targets: Introducing dedicated bus lanes,
expanding pedestrian pathways, improving last-mile
connectivity, and promoting non-motorized transport
options, such as cycling lanes and walkways, are key
aspects.
● Broader Impact: Urban transport improvements reduce
commute times, decrease carbon emissions, and make
cities more accessible. Affordable transport options also
support economic activity by enabling people to travel to
work or educational institutions more easily.
5. Creation of Green Spaces and Parks
 ● Goal: To establish accessible green spaces, such as parks,
playgrounds, and open recreational areas, in urban
settings.
● Specific Targets: AMRUT aims to develop parks within
walking distance in urban neighborhoods, particularly in
underserved areas. This includes constructing new parks,
as well as renovating and maintaining existing ones.
● Broader Impact: Green spaces improve air quality,
provide urban residents with places for relaxation and
exercise, and enhance overall mental and physical health.
Parks also serve as social hubs, fostering community
interaction and building a sense of shared urban identity.
6. Promotion of Resource Efficiency and Sustainability

● Goal: To integrate sustainable practices into urban

infrastructure, including energy-efficient buildings,
renewable energy usage, and sustainable waste
management.
● Specific Targets: The mission encourages
resource-efficient building codes, renewable energy
sources, and eco-friendly urban planning, including
waste recycling initiatives.
● Broader Impact: Sustainability in urban planning not
only reduces environmental impact but also helps cities
become more resilient to future challenges, such as
climate change. Sustainable infrastructure lowers
operational costs and ensures resource availability for
future generations.
7. Social Inclusivity and Equitable Urban Development

● Goal: To ensure that all urban residents, regardless of

income or social status, benefit from improved urban
infrastructure.
● Specific Targets: Emphasis on accessible water and
sanitation facilities for economically weaker sections and
the development of infrastructure in areas that previously
lacked adequate services.
● Broader Impact: By prioritizing inclusivity, AMRUT
addresses disparities within urban areas, providing better
opportunities and living conditions to all city residents.
This also promotes social cohesion and reduces
inequality.

Profitability of the AMRUT Mission

1. Economic Growth and Job Creation

● Urban Growth Engine: By improving infrastructure in cities,

AMRUT attracts investments in both real estate and
business sectors. With better water supply, sewage, and
transport infrastructure, cities become more appealing
for business expansion and industry establishment.
● Job Creation in Infrastructure Development: The
construction and maintenance of urban infrastructure
projects create jobs in multiple sectors, including
construction, engineering, water management, and
public health. These jobs not only provide immediate
employment but also build long-term skills and
opportunities within local communities.
 ● Multiplier Effect: As cities develop improved
infrastructure, ancillary services and sectors—such as
retail, hospitality, and transportation—experience
growth. This ripple effect expands the local economy,
resulting in increased consumption and production,
which ultimately contributes to a higher Gross Domestic
Product (GDP).
2. Real Estate Value Appreciation

● Enhanced Property Values: Access to reliable water supply,

proper sewage systems, and green spaces improves urban
living standards and boosts property values.
Infrastructure developments under AMRUT, like better
roads and public parks, increase the demand for real
estate in and around the serviced areas, leading to higher
property values.
● Real Estate Investments: Higher property values and
improved urban infrastructure attract investors, both
domestic and international. Investors are more likely to
invest in cities with reliable infrastructure, which can
yield substantial returns through property value
appreciation and rental income. This, in turn, increases
local government revenue through property taxes, which
helps fund further infrastructure improvements.
3. Reduction in Public Health Expenditure

● Improved Sanitation and Health: Better sewage and drainage

systems reduce the incidence of waterborne diseases, like
cholera and diarrhea, which are common in areas with
 poor sanitation. As cities improve their sanitation,
residents experience fewer health issues, which reduces
public health expenditure and hospital congestion.
● Cost Savings for Households: With more reliable water
supply and sewage systems, households experience cost
savings. They no longer need to spend on alternative
water sources or on medical expenses related to
waterborne illnesses, allowing them to use their income
for other needs, which can boost spending and stimulate
local economies.
4. Increased Tourism and Economic Activity

● Attracting Tourists and Visitors: Cities with well-maintained

infrastructure, such as reliable transport, green spaces,
and clean urban environments, are more likely to attract
tourists. Improved urban aesthetics through parks, public
areas, and enhanced transportation systems make cities
attractive tourist destinations, which stimulates local
businesses, including hotels, restaurants, and shopping
centers.
● Recreational Value: AMRUT’s emphasis on green spaces
and recreational facilities creates additional revenue
streams for cities. For example, parks with entrance fees,
special events, and recreational activities generate
revenue. This also provides employment opportunities
for people engaged in managing and maintaining these
spaces.
5. Boost in Small and Medium Enterprise (SME) Sector
 ● Growth of Local Businesses: Improved infrastructure creates a
favorable environment for small and medium-sized
businesses to thrive. With efficient transport, water, and
sanitation facilities, SMEs in food services, retail, and
production sectors can operate more efficiently and
reach customers with ease.
● Business Opportunities in Infrastructure Maintenance:
AMRUT creates business opportunities for contractors
and suppliers involved in the construction, operation,
and maintenance of urban infrastructure. For example,
local companies involved in sewage management, waste
recycling, and public transport services may see a steady
demand as urban infrastructure continues to expand.
6. Long-term Savings and Sustainability

● Cost-Efficient Infrastructure: By investing in sustainable, durable

urban infrastructure, AMRUT reduces the need for
frequent repairs and replacements, saving long-term
public funds. Advanced technology, such as
energy-efficient sewage treatment or rainwater
harvesting, lowers operational costs and reduces
dependency on non-renewable resources.
● Increased Resilience: With flood management through
stormwater drains, AMRUT enhances city resilience
against natural disasters, preventing costly damages and
economic disruption. This leads to long-term financial
savings and reduces the risk of economic loss during
extreme weather events.
7. Social Profitability and Quality of Life Improvements

● Higher Quality of Life: By providing access to clean water,

effective sewage systems, and recreational spaces,
AMRUT raises the standard of living in cities. This has
social profitability, as healthier and more satisfied
residents are likely to be more productive, contributing
positively to the economy.
● Urban Inclusivity and Social Equity: AMRUT’s focus on
inclusivity, by providing essential services to all sections
of society, ensures that low-income residents can access
basic urban amenities. This reduces inequality, promotes
social cohesion, and creates a stable and supportive
environment for sustained economic activity.
8. Enhanced Government Revenue and Self-Sufficiency

● Increase in Tax Revenues: Improved infrastructure and higher

property values lead to increased tax revenues for local
governments. These funds can then be reinvested into
more infrastructure projects, creating a cycle of
development and growth.
● Increased Foreign Direct Investment (FDI): Cities with
robust infrastructure are more likely to attract FDI, as
investors are assured of the city’s ability to support
business operations. FDI flows bring capital, create jobs,
and enhance the global competitiveness of the city.

Conclusion of Profitability Analysis

Although AMRUT is not directly profit-oriented, its substantial
indirect profitability makes it economically beneficial in
multiple ways. By supporting economic growth, attracting
investments, creating jobs, increasing property values, and
improving public health, AMRUT fosters an environment
conducive to sustained urban development. Its long-term cost
savings, social benefits, and impact on urban productivity
demonstrate that infrastructure investments have a
broad-reaching impact that drives both social and economic
profitability for cities and the country at large.

Phases of the AMRUT Time Schedule

1. Initial Planning and Project Identification (2015-2016)

● Objective: The initial phase focused on identifying priority

cities and assessing infrastructure needs, laying the
groundwork for the mission’s implementation. This
planning phase included discussions with city officials,
public consultations, and assessments of local challenges.
● Activities:
○ Selecting 500 cities across India, based on
population, urbanization, and specific infrastructure
requirements.
○ Conducting baseline surveys to understand the
current state of services such as water supply,
sewage, stormwater drainage, and green spaces.
○ Formulating city-specific Service Level
Improvement Plans (SLIPs), detailing the projects
 needed to meet the mission’s objectives in each
selected city.
● Outcome: Each city created a detailed SLIP outlining
projects, estimated costs, and expected completion dates.
2. Project Development and Funding Allocation (2016-2017)

● Objective: In this phase, the mission allocated funds and

developed project proposals to align with the goals laid
out in the planning phase.
● Activities:
○ Allocating funds based on city requirements and
project proposals. The central government allocated
50% of project costs, with the remainder covered by
state governments and local municipal bodies.
○ Creating Detailed Project Reports (DPRs) for each
identified project, specifying technical
requirements, cost estimates, timelines, and key
performance indicators (KPIs).
○ Approval of projects by the Ministry of Housing and
Urban Affairs (MoHUA), ensuring alignment with the
mission’s guidelines.
● Outcome: Approved DPRs and funded projects allowed
cities to begin implementing their specific plans.
3. Project Implementation and Rollout (2017-2020)

● Objective: This phase was the main implementation stage,

where projects began full-scale construction and
development.
● Activities:
 ○ Water Supply: Installation of pipelines, household
tap connections, and improvements in water
treatment plants.
○ Sewerage and Drainage: Expansion of sewage
networks, construction of sewage treatment plants
(STPs), and improvements in stormwater drainage
systems to manage flood risks.
○ Green Spaces and Parks: Development of urban
parks and recreational areas, especially in densely
populated neighborhoods lacking open spaces.
○ Transportation Enhancements: Building urban
transport facilities, such as bus lanes, footpaths, and
cycling lanes, with a focus on reducing urban
congestion and promoting eco-friendly transport.
● Challenges and Delays: Due to the large scale and
technical requirements, some cities experienced delays
related to land acquisition, contractor management, and
resource allocation.
● Outcome: Many cities saw significant progress in
infrastructure development, but some projects extended
beyond the initial schedule due to challenges.
4. Monitoring and Evaluation (Ongoing)

● Objective: To assess progress, ensure quality control, and

monitor that projects align with the mission’s objectives.
● Activities:
 ○ Real-Time Tracking: Using digital tools to monitor
project status and performance, with data shared
regularly with MoHUA for review.
○ Third-Party Audits: Independent evaluations to
ensure adherence to quality standards and assess
infrastructure durability.
○ Feedback and Adjustments: Based on monitoring
reports, cities could make adjustments to project
plans to address any emerging issues or bottlenecks.
● Outcome: Continuous monitoring allowed for
data-driven decisions and timely course corrections,
ensuring projects stayed on track.
5. Revised Timeline and Extension (2020-Present)

● Objective: Given the ongoing infrastructure needs and the

long-term nature of urban development, the AMRUT
mission received an extension beyond 2020 to allow
completion of ongoing projects and set new goals.
● Activities:
○ Identifying unfinished projects and extending their
timelines for completion, with additional funding
allocated where necessary.
○ Launching the AMRUT 2.0 phase to focus on
universal water supply and expanding green spaces
further. This phase emphasizes sustainability, with a
stronger focus on resource efficiency and green
infrastructure.
 ○ Enhancing focus on smart solutions, such as digital
monitoring of water supply, advanced sewage
treatment methods, and sustainable urban drainage.
● Outcome: The extension allows cities to complete
pending work and build upon AMRUT’s initial successes,
continuing to improve urban infrastructure in alignment
with the mission’s goals.

Overall Conclusion on Time Schedule

The AMRUT mission’s phased timeline and structured

implementation framework have enabled it to address
complex urban infrastructure issues in a systematic manner.
While delays have occurred, the mission’s phased extensions
and regular evaluations have allowed it to adapt to challenges
and respond to the evolving needs of urban areas. This flexible,
stage-based approach is essential for achieving sustainable
and impactful infrastructure development across diverse
Indian cities.

The concept of Social Utility within the ATAL MISSION FOR

REJUVENATION AND URBAN TRANSFORMATION (AMRUT)
refers to the mission’s contribution to improving the overall
well-being, inclusivity, and quality of life for urban residents.
AMRUT focuses on creating infrastructure that not only
enhances physical spaces but also fosters healthier, more
livable communities, prioritizing public welfare. Here’s a
detailed breakdown of AMRUT's social utility and the ways it
contributes to a sustainable and inclusive urban environment:

1. Improved Public Health and Hygiene

● Access to Clean Water: One of AMRUT’s primary

objectives is to provide universal access to safe and
sufficient drinking water in urban areas, ensuring every
household has a direct water connection. Access to clean
water is foundational for health and prevents waterborne
diseases like cholera, dysentery, and typhoid, which can
spread rapidly in densely populated areas.
● Effective Sewage and Waste Management: AMRUT’s
efforts to build and expand sewage treatment plants
(STPs) and improve waste management systems are
crucial in maintaining public hygiene. Proper waste
disposal reduces environmental contamination, keeps
water sources safe, and minimizes exposure to toxic
waste.
● Enhanced Stormwater Drainage: Urban flooding, often
caused by insufficient drainage systems, brings risks of
contamination and disease outbreaks. AMRUT’s focus on
improved drainage systems in flood-prone areas protects
communities from these health risks and helps maintain
a cleaner, safer urban environment.

2. Inclusivity and Equity in Urban Services

 ● Access for All Socioeconomic Groups: AMRUT’s mission
emphasizes inclusivity, ensuring that underserved and
low-income communities have access to essential
services like water, sanitation, and transportation.
Infrastructure projects are aimed at bridging gaps
between different social groups, providing basic urban
amenities to everyone regardless of socioeconomic
status.
● Community Participation: By involving local
communities in the planning process, AMRUT ensures
that infrastructure projects reflect the needs of all
residents. This participatory approach allows for better
responsiveness to the unique needs of marginalized
communities, fostering a sense of ownership and
inclusion.
● Reducing Urban Inequality: Access to quality public
spaces, like parks and recreational areas, is often limited
to affluent neighborhoods. AMRUT addresses this by
prioritizing the development of green spaces in
underserved areas, making cities more equitable and
enhancing the quality of life for all residents.

3. Increased Livability and Quality of Life

● Green Spaces and Recreational Areas: One of the

mission’s priorities is creating green spaces in urban
areas. Parks, playgrounds, and open spaces provide areas
for relaxation, recreation, and physical activity, which is
essential for mental and physical well-being. These
 spaces also serve as social hubs, allowing residents to
interact and strengthen community bonds.
● Safe and Accessible Urban Transport: AMRUT’s urban
transport improvements, including dedicated pedestrian
pathways, cycling lanes, and public transport facilities,
promote safer and more convenient mobility for all,
including children, elderly people, and those with
disabilities. By facilitating safe movement, AMRUT
encourages healthier lifestyles and reduces the stress
associated with congested urban traffic.
● Resilience Against Climate Impacts: Infrastructure
improvements, like stormwater drainage, make cities
more resilient to climate-related risks. By mitigating
issues such as urban flooding, AMRUT helps safeguard
communities from extreme weather events, contributing
to a stable and secure living environment.

4. Environmental Sustainability and Resource Conservation

● Reduced Pollution: Proper sewage management and

effective waste treatment reduce pollution in water
bodies and prevent harmful contaminants from entering
the ecosystem. This benefits both the human population
and urban wildlife, creating a cleaner, healthier
environment for all.
● Efficient Water Usage and Conservation: By providing
access to reliable water sources and reducing leakages,
AMRUT promotes responsible water consumption in
 cities. This helps conserve natural water resources and
reduces wastage, which is essential in water-scarce areas.
● Promoting Green Infrastructure: AMRUT’s focus on
creating sustainable, eco-friendly infrastructure
contributes to reducing the city’s overall carbon
footprint. Initiatives like non-motorized transport lanes
(cycling paths and pedestrian walkways) help reduce
vehicular emissions, contributing to better air quality.

5. Economic Opportunities and Urban Development

● Job Creation in Urban Infrastructure: The mission’s

focus on constructing and upgrading infrastructure
generates employment opportunities in fields like
construction, engineering, and urban planning. Local
communities benefit directly from jobs during project
construction and indirectly through opportunities for
maintenance and operational roles once the projects are
completed.
● Boosting Local Economy: AMRUT’s investment in urban
infrastructure attracts businesses, spurs real estate
development, and drives demand for local goods and
services, ultimately stimulating economic growth.
Improved transport systems allow for more efficient
movement of goods and labor, benefiting small and
medium enterprises (SMEs) and encouraging
entrepreneurship.
● Tourism and Recreational Economy: The creation of
aesthetically pleasing, well-maintained urban spaces,
 parks, and public areas attracts both residents and
tourists, creating new economic opportunities for local
businesses. The beautification of cities through
infrastructure development contributes to making them
attractive destinations for tourism, which can boost local
income and create job opportunities.

6. Enhancing Community Engagement and Civic Pride

● Community-Centered Planning: By involving

communities in decision-making, AMRUT fosters a sense
of civic pride and responsibility. Residents are more likely
to support and maintain infrastructure projects when
they feel involved in the planning process, leading to
better upkeep and preservation of public spaces.
● Strengthening Social Ties: Public parks, recreational
spaces, and safe transport options encourage residents to
spend time outside, interact, and engage in community
activities. These shared spaces build a sense of belonging
and strengthen social bonds, creating more cohesive
communities.
● Promoting Awareness and Behavioral Change: AMRUT
encourages sustainable practices, like water conservation
and responsible waste disposal, through educational
initiatives. These campaigns foster a culture of
environmental responsibility among residents, helping to
promote long-term positive behavioral changes.

7. Safety and Urban Resilience

 ● Disaster Preparedness: AMRUT's infrastructure
improvements, especially in stormwater drainage and
flood control, make cities better equipped to handle
natural disasters, which is critical in a time of increasing
climate challenges. This infrastructure supports
resilience, helping cities recover quickly from adverse
events, thereby protecting lives, property, and economic
stability.
● Safer Public Spaces: Properly maintained public spaces,
parks, and streetscapes promote safer environments.
Well-lit, clean, and accessible urban spaces are essential
for public safety, reducing crime rates, and enhancing
residents’ sense of security.
● Reducing Traffic Accidents: By improving roads, creating
dedicated lanes for cyclists and pedestrians, and
enhancing public transport systems, AMRUT helps
reduce traffic accidents and ensures safer travel. This
focus on safety benefits all, especially children, elderly
people, and those with disabilities, making cities more
inclusive.

Conclusion of Social Utility

AMRUT’s social utility lies in its multifaceted contributions to

making cities more livable, inclusive, safe, and sustainable.
Through better health, equity, environmental stewardship,
economic growth, and community engagement, AMRUT
fosters a holistic improvement in urban life. Its projects create
a positive impact on residents’ well-being, the environment,
and the economy, making it a transformative mission for
India’s urban future. These enhancements lay the foundation
for long-term societal benefits, supporting a balanced urban
environment where all citizens can thrive.

CONCLUSION
In conclusion, the ATAL MISSION FOR REJUVENATION AND
URBAN TRANSFORMATION (AMRUT) plays a transformative
role in enhancing India’s urban infrastructure, targeting the
critical needs of cities to become more livable, inclusive, and
resilient. By addressing essential areas such as water supply,
sewage management, green spaces, and urban transport,
AMRUT fosters a balanced approach to urban development
that goes beyond physical improvements to uplift the quality
of life for all residents.

AMRUT's focus on social utility underscores its commitment to

equity, ensuring access to basic services for all socioeconomic
groups. Its initiatives have spurred economic opportunities,
reduced public health risks, and fostered community
engagement. The mission’s long-term profitability, through
increased property values, local economic growth, and
improved public health, illustrates how urban infrastructure
investments can contribute both socially and economically.

Despite challenges in implementation timelines, AMRUT’s

phased approach and structured monitoring have enabled it to
adapt effectively, ensuring progress aligns with evolving urban
needs. With the continued support from AMRUT 2.0, the
mission aims to further enhance sustainability and resource
efficiency, cementing its role as a cornerstone of India’s urban
transformation. In essence, AMRUT exemplifies a holistic
approach to urban planning, setting a foundation for cities that
are not only well-structured but also sustainable, inclusive,
and equipped for future growth.