Greening India’s Cities: The Role of NMSH 2.0 in Sustainable Urban Transformation

Policy Update
Kumar Ankit

Background

As India strides towards becoming a $5 trillion economy, its cities—drivers of economic growth—are confronting serious socio-economic and geo-climatic challenges. Rapid urbanisation, climate change vulnerabilities, the urban heat island effect, urban flooding, solid waste accumulation, high carbon emissions, energy inefficiencies, and resource overconsumption are some of the factors contributing to the widening of socioeconomic disparities in India.

Ageing and overloaded infrastructure, traffic congestion, and rising pollution levels have also hampered the country’s efforts to achieve sustainable and equitable economic growth. Understanding this, the Indian government launched the National Mission on Sustainable Habitat (NMSH) in 2010 among the nine projects aimed at mitigating climate change under the 2008 National Action Plan on Climate Change. The first version of NMSH, released in 2010 for the duration of 2010-2020, attempted to promote energy efficiency in buildings, management of solid waste, and modal shift to public transport, including transport options based on biodiesel and hydrogen.

To better align with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement, the Sustainable Development Goals (SDGs), and the New Urban Agenda (NUA), the 2010-launched National Mission on Sustainable Habitat (NMSH) has been updated and reorganised as NMSH 2.0 for the 2020-2030 timeline. The National Mission on Sustainable Habitat (NMSH) 2.0 takes a comprehensive, climate risk-informed approach to urban planning that incorporates mitigation and adaptation strategies in line with India’s NDCs, SDGs, and net-zero commitments. In contrast, the original NMSH was primarily infrastructure-focused, with sectoral interventions for energy efficiency and basic urban services. The National Mission on Sustainable Habitat is a flagship programme of the Ministry of Housing and Urban Affairs, Government of India (MoHUA). 

The mission seeks to:

(i) encourage low-carbon urban growth to reduce the intensity of GHG emissions and meet India’s NDC; and 

(ii) increase cities’ resilience to the effects of climate change and their ability to “bounce back better” from disaster risks and climate-related extreme events.

The NMSH 2.0 defines “sustainable habitat” as “an approach towards a balanced and sustainable development of the ecosystem of habitat which offers adequate shelter with basic services, infrastructure, and livelihood opportunities along with environmental and socio-economic safety including equality, inclusiveness and disaster-resilience”. To attain what is implied by the term “sustainable habitat”, the NMSH 2.0 has identified five thematic areas to build a sustainable and climate-resilient urban India. These five key priority areas are linked with their SDGs in the table below:

Financing

NMSH supports blended financing. Besides, no additional funding is required because the objective is accomplished through a variety of MoHUA missions and programmes. States and UTs should, however, mobilise resources from other sources, including revenue streams, municipal bond markets, private sector investments, pool finance, PPP, corporate social responsibility (CSR) funds, bilateral and multilateral agencies, concessional loans, carbon markets, and green bonds. To encourage Urban Local Bodies (ULBs) to implement climate-friendly practices, an incentive system ought to be developed. However, due to ULBs’ low creditworthiness and institutional capacity deficiencies, access to climate finance through municipal bonds and PPP is still restricted in Indian cities.

Implementation Framework and Outcomes

Though the Ministry of Housing & Urban Affairs is the nodal ministry responsible for mission coordination, the implementation process is decentralised. The centre will establish a National Mission Management Unit (NMMU) to carry out routine tasks and assist states and cities in carrying out the mission. NMMU must also start capacity-building activities for Urban Local Bodies (ULBs) and state officials on climate change-related topics through MoHUA’s National Urban Learning Platform. The District Magistrate/Municipal Commissioner will serve as the chair of the ULB, which will be responsible for implementing the mission at the city level.

NMSH 2.0 is not a stand-alone program. NMSH 2.0 incorporates sustainability and climate resilience objectives into the Ministry of Housing and Urban Affairs’ current flagship urban programmes, such as Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Pradhan Mantri Awas Yojana – Urban (PMAY-U), Deendayal Upadhyaya Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM), Swachh Bharat Mission – Urban (SBM-U), the Smart Cities Mission (SCM) and Urban Transport Missions. The table below showcases a list of proposed urban cities under NMSH with coverage under Smart Cities Mission and AMRUT for integrated implementation.

Source: MoHUA’s document on National Mission on Sustainable Habitat 2021-2030

The NMSH has made significant progress in promoting energy efficiency and green buildings through programmes like UJALA, SLNP, and AMRUT, as well as updated regulations like the Energy Conservation Building Code (ECBC), the Model Building Bye-Laws (MBBL) 2016, and the National Building Code (NBC) 2016. More than 6 million LED streetlights have been installed, and projects like Solar Cities and Green Building Star Rating have integrated renewable energy sources into urban infrastructure. Plans for the future include creating Green Building Action Cells, mandating Eco-Niwas Samhita and ECBC in new construction, and creating green technologies for urban housing.

The mission’s second pillar, climate-informed urban planning, includes eco-sensitive zones, biodiversity, and green cover. It integrates GIS-based master plans for 500 cities, urban water bodies, and over 1,700 parks to enhance climate resilience. The mission also promotes heat island mapping, wetland preservation, and green infrastructure. It also calls for disaster risk reduction strategies, updates to urban planning codes, and the Urban and Regional Development Plans Formulation and Implementation (URDPFI) guidelines for inclusive, sustainable, and climate-adaptive urban growth. It also calls for a plan of action in alignment with the NDMA guidelines (2010, 2014, and 2019) and MoHUA’s SOP on Urban Flooding (2017).

Guided by policies like the National Urban Transport Policy (2006), Metro Rail Policy (2017), and Transit-Oriented Development (TOD, 2016), India has shifted gears to improve mobility and air quality. Cities are promoting electric and CNG vehicles, enhancing public transportation, and strengthening non-motorised transportation infrastructure. Policies like parking restrictions, congestion pricing, and shared mobility solutions are being put into place to reduce emissions and traffic. National missions are funding zero-carbon urban mobility projects, EV infrastructure, Bus Rapid Transit System (BRTS) corridors, and metro expansion.

The mission has been working diligently to improve urban water management through the use of AMRUT, the Jal Jeevan Mission (Urban), and technical manuals. The primary objectives of these programmes are to reduce Non-Revenue Water (NRW), recycle treated wastewater, revitalise water bodies, and provide piped water to all. More than 500 water supply projects have already been completed, and hundreds more are still in progress. Future plans include decentralised wastewater treatment, mandatory rainwater collection, 100% water metering, a 24-hour water supply, and at least 20% reuse of treated water.

The NMSH 2.0 has made significant progress in solid waste management through initiatives like Swachh Bharat Mission-Urban, attaining 98% door-to-door waste collection and 68% waste processing. The focus is on the source segregation, treatment, and reuse of municipal solid waste and construction and demolition waste, and compost and waste-to-energy facilities have been established. Besides, cities must manage their landfills as per the Solid Waste Management Rules, 2016.

Regular Swachh Survekshan surveys are conducted to monitor the efficacy of urban local bodies and encourage cleanliness. Plans for the future include strengthening the 4Rs, encouraging fuel derived from waste, constructing material recovery facilities, and ensuring scientific landfill management to reduce greenhouse gas emissions. Key planned activities include recycling construction and demolition waste, integrating technology, and composting on-site.

Emerging Issues

Emerging challenges in the fight against climate change include excessive building energy use, declining green spaces, inadequate urban planning, limited solutions for air pollution, waste management, a lack of planning data, minimal use of technology, a lack of funding for climate work, and a lack of expertise among planners and city officials. Due to outdated designs and inadequate retrofitting, buildings are consuming excessive amounts of energy. Unplanned growth is causing green spaces to disappear, and policies are insufficient to either preserve existing ones or establish new ones.

Urban planning is ill-coordinated, and regulations protecting wetlands and prohibiting construction in flood zones are either nonexistent or ineffective. There are few ways to reduce air pollution; electric cars and public transport are developing slowly, and current policies are not being fully implemented. Water is wasted or contaminated; many cities lose a large portion of their drinking water due to leaks and excessive groundwater use. There is insufficient waste management; construction waste recycling rates are low, and old landfill sites continue to pollute. In conclusion, the city needs to deal with these issues to ensure a sustainable future.

Conclusion 

Although NMSH 2.0 provides a robust framework, more attention needs to be paid to implementing nature-based solutions (NbS), such as urban forests, green corridors, and wetland restoration, to enhance ecosystem services and urban resilience. To improve climate resilience, reduce environmental degradation, and guarantee sustainable, liveable, and economically viable urban futures, Indian cities must immediately incorporate blue-green infrastructure into their urban planning. Examples of projects that should be mainstreamed to improve stormwater management and mitigate the impacts of urban heat islands include vertical gardens, permeable pavements, and green roofs.

India’s vulnerable coastal cities need to adapt and test projects based on international best practices, such as The Emerald Tutu, which uses floating vegetative mats to protect coastlines and absorb carbon. Local projects like Pune’s urban forests, Ahmedabad’s Heat Action Plan, or Kochi’s water resilience plan have shown some success, and projects can be drawn on similar lines. However, their local implementation requires specific funding and policy support. Cities should implement the circular economy’s tenets in the areas of waste management, water, and construction. Collaborations with academic institutions, community-led climate action, and raising public awareness can all inspire innovation. Finally, creating real-time climate data portals for cities will help with transparent monitoring and evidence-based urban sustainability planning. 

The availability of national and local climate innovation funds is also necessary for the growth of public-private partnerships and the expansion of such NbS projects. Planners and Urban Local Bodies (ULBs) must be better equipped to plan, implement, and maintain NbS interventions, ensuring their sustainability and integration into city development plans. Citizens must be educated about the severe consequences of climate change and urged to embrace sustainable practices, such as waste separation, energy use, and water use, to reduce vulnerabilities collectively. If there is a lack of widespread public awareness and behavioural change, even the best policies and initiatives might not be enough to build truly climate-resilient cities.

References

1. Ministry of Housing and Urban Affairs. (n.d.). National Mission on Sustainable Habitat 2021-2030. Government of India. Retrieved June 07, 2025, from https://mohua.gov.in/upload/uploadfiles/files/NMSH-2021.pdf
2. Shukla, R. (2023, February 13). Rising demand for robust, sustainable infrastructure. Observer Research Foundation. Retrieved June 09, 2025, from https://www.orfonline.org/english/expert-speak/rising-demand-for-robust-sustainable-infrastructure
3. Rathi, S., & Shukla, R. (2022, February 24). Blue-Green Infrastructure: An Opportunity for Indian Cities. Observer Research Foundation. Retrieved June 10, 2025, from https://www.orfonline.org/research/blue-green-infrastructure-an-opportunity-for-indian-cities

About the Author: Kumar Ankit is a Research Intern at IMPRI, New Delhi. He is currently pursuing a Master’s in Political Science from Jamia Millia Islamia University and has qualified for UGC-NET in Politics, including International Relations/International Studies.

Acknowledgement: The author extends his sincere gratitude to the IMPRI team and Ms Aasthaba Jadeja for their invaluable guidance throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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