The main objective of the urban policy is to develop an urban rural continuum replacing the existing urban-rural dichotomy. The national policy gives first priority to urban housing in which both public and private sectors have been invited to con­tribute. Here public sector’s responsibilities have been limited with the improvement of slums, and providing cheap housing facilities to weaker section of the urban society.

In a major change in national policy has been noticed towards the slums. The national policy puts greater emphasis on the improvement of slums rather than on their demolition or removal. For this purpose slum beautification / improvement projects have been launched in several cities of the country to provide such civic amentias like roads, drinking water, good drainage, electricity etc in urban slums.

Under Sites and Services Plan economically weaker section of the urban society have been pro­vided low interest loan facilities to purchase house plots and construct houses. Agencies like HUDCO and LIC etc are advancing such loans to urban poor.

Under the Urban Land Ceiling Act 1976 the State Governments have been authorised to fix maxi­mum ceiling for urban land. State governments and local bodies have also been granted rights to acquire any private property for public use after paying adequate compensation to its owner.

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The urbanization policy puts greater empha­sis on the development of infrastructural facilities in small, medium and intermediate towns so that these could attain the status of growth centers in rural hinterland.

Under the urban policy incentives have been given to industrial houses and entrepreneurs to es­tablish new industries in small, medium and inter­mediate towns so as to bring down congestion and pollution in big cities of the country. Such facilities include tax concession, factory site at cheaper rate, infrastmctural facilities free of cost or at concessional rate.

Urban policy makes obligatory even to small, medium and intermediate towns to prepare their master plans and control the haphazard growth of the urban settlements.

Under the national policy the management of all the towns and cities has been entrusted to local bodies which would be working under the guidance of the respective State government.

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In national urbanization policy there is a plan to divide country into urban regions so as to provide greater opportunity for the solution of local and regional urban problems. Its prime objective is to develop a framework of strong urban system in the country which is complementary to the rural devel­opment.

In national urbanization policy enough provi­sion has been made for research and policy formula­tion on urbanisation and urban development.