9.36      ndian     onom
           scale infrastructure. The failures of the              society which checks negative externalities
           city are also well known:                              of the urban expansion. The township
                It suffered from lack of cohesive                 was rated the second best in the country
                 urban plan and its explosive growth              by ORG Marg Nielsen (the worldwide
                 has outpaced the planning efforts                market research firm) on its “quality-of-
                 (like in any other Indian cities).               life index” in 2008, and in 2010 the city
                Multiple layers of local and higher               was ranked 7th of 441 cities and towns in
                 authorities, having greater power                India on “sanitation” and “cleanliness” by
                 to extract rents, have increased the             the Ministry of Urban Development.
                 transaction costs for the private                India needs to take few important
                 builders. Different private builders             lessons from the experience the above-
                 have to seek different political                 cited examples—so that the privately
                 patronage as otherwise none would                developed townships are ideal ones:
                 manage to function.                               (i) Private sector can develop quite a
                Competition among private suppliers                    competitive urban centres.
                 has produced two failures:                       (ii) Private sector will have to bear the
            (i) Prices of water, electricity, sewage,                  burden of higher transaction costs,
                and so forth are close to marginal                     if the city is managed by multiple
                cost but average cost is far too high                  authorities. Such costs would also be
                (because of the failure to exploit                     higher if initial cohesive development
                economies of scale).                                   plan for the city is not put in
                                                                       place. Post-growth infrastructure
           (ii) Competitive suppliers have produced
                                                                       development costs are much higher
                negative externalities such as excess
                                                                       and at times prohibitive.
                pollution with diesel fumes, over
                used common resources by dumping                 (iii) The active role of civil society can
                sewage waste and, groundwater                          prevent excessive exploitation of
                dissipation leading to unsustainable                   resources and reduce the impact of
                level of water table. A vibrant civil                  negative externalities associated with
                                                                       rapid urbanisation. We see this being
                society could have been able to put
                                                                       present in the latter but absent in the
                checks on such issues (but city being
                quite young this is almost absent by
                                                           PPP models
        2. Jamshedpur: This is a private township
           and one of the best-governed cities in       Managing adequate amount of fund for
           India. Jamshedpur Utilities and Services     infrastructure development has been always a
           Company Ltd. (JUSCO), a wholly-owned         challenge for India. In reform era, the government
           subsidiary of Tata Steel, is responsible for evolved the idea of public private partnership (PPP)
           provisioning of the basic services here.     for the sector aimed at attracting investments from
           The township is widely regarded as having    the private sector (domestic as well as foreign). We
           some of the best urban infrastructure in     see an encouraging contributions coming from the
           the country and JUSCO is considered          private sector in this regard also. But by 2013-14,
           a model provider. It has a grown up civil    the PPPs started getting unattractive for the