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In a major boost to India’s urban governance and infrastructure development, the World Bank has approved $830 million in financial assistance for the Prime Minister’s Sustainable and Efficient Transport Programme (PM-SETU). The initiative aims to transform urban mobility systems by promoting sustainable, inclusive, and efficient transport solutions.
For UPSC and KAS aspirants, this development is important from the perspectives of Governance, Urban Development, Infrastructure Financing, and International Institutions.
Under the mentorship of Dr. Ramanna Gowda, we have broken down the core differences that every aspirant must know for the upcoming KPSC and UPSC mains.
PM-SETU (Prime Minister’s Sustainable and Efficient Transport Programme) is a flagship initiative aimed at:
Improving urban transport infrastructure
Promoting public and non-motorised transport
Reducing traffic congestion and pollution
Strengthening institutional and governance capacity in cities
The programme focuses on integrated urban mobility planning rather than isolated infrastructure projects.
Financial assistance of $830 million
Focus on sustainable urban transport
Support for policy reforms and institutional strengthening
Emphasis on climate-resilient infrastructure
Capacity building for state and city-level authorities
This funding reflects the World Bank’s confidence in India’s urban governance reforms.
Encourages evidence-based planning
Improves coordination between urban local bodies (ULBs), states, and the Centre
Enhances technical and administrative capacity
Encourages low-carbon transport solutions
Reduces dependence on private vehicles
Supports India’s climate commitments
Better public transport systems
Increased accessibility for urban poor
Improved quality of life in cities
PM-SETU is not just about funding infrastructure; it emphasizes systemic reforms, including:
Urban transport planning frameworks
Performance-linked funding
Monitoring and evaluation mechanisms
Data-driven decision-making
Such reforms align with India’s broader push for outcome-oriented governance.
The World Bank’s involvement highlights:
Importance of multilateral cooperation
Use of global best practices
Knowledge sharing in urban governance
Long-term development financing
For aspirants, this reflects how international institutions support domestic reforms without infringing on sovereignty.
Capacity gaps in urban local bodies
Coordination issues across multiple agencies
Land acquisition and urban planning constraints
Ensuring inclusivity and affordability
Addressing these challenges is crucial for achieving programme objectives.
World Bank functions
Urban governance initiatives
Sustainable transport concepts
GS Paper II: Governance, urban local bodies, international institutions
GS Paper III: Infrastructure, sustainable development
Case studies on urban transport reforms
Role of multilateral funding in development
Balancing growth and sustainability in cities
Strengthen urban local body capacity
Ensure citizen participation
Integrate land-use and transport planning
Continuous monitoring and transparency
The World Bank’s $830 million support for PM-SETU represents a significant step towards modernising India’s urban transport governance. By combining financial assistance with institutional reforms, PM-SETU aims to create cities that are efficient, inclusive, and environmentally sustainable.
For civil services aspirants, this initiative serves as a strong example of how global cooperation and domestic governance reforms can work together to address complex urban challenges.
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