Unauthorised and illegal constructions- Most reliable way out

Urban congestion is a pressing issue in many cities worldwide, including India. One effective strategy to alleviate this problem is to subsidise non-essential companies to relocate outside the city. This approach not only reduces the need for costly infrastructure projects within the city but also creates opportunities in suburban areas. Additionally, such administrative intervention can disrupt the economics of illegal constructions and ease population density.

Subsidising non-essential companies to move outside the city can significantly reduce the strain on urban infrastructure. For instance, the introduction of congestion charges in London reduced traffic entering the zone by 18% and congestion by 30%1. By relocating businesses, cities can achieve similar reductions in traffic, thereby decreasing the need for expensive road expansions and public transport upgrades.

In India, cities like Bangalore face severe congestion, costing the city approximately 5% of its economic output2. By decentralising businesses, similar economic savings can be achieved, which can be redirected to other essential services.

Encouraging businesses to move to suburban areas can stimulate local economies and create job opportunities. Suburbs often have lower living costs and more available space, making them attractive for both businesses and employees. This can lead to a more balanced regional development, reducing the economic disparity between urban and suburban areas.

For example, the IT sector in India has seen success with transport demand management (TDM) strategies, such as providing commuter subsidies and company buses2. These initiatives have shifted 30-50% of targeted employees from cars to public transport, reducing travel times and costs.

Illegal constructions are a common issue in densely populated cities. These structures often arise due to the high demand for space and the lack of affordable housing. By reducing the population density through the relocation of businesses, the pressure on urban land decreases. This can lead to a reduction in illegal constructions as the demand for space diminishes.

Reducing congestion has significant environmental and health benefits. Traffic congestion contributes to air pollution, which has been linked to various health issues, including respiratory problems and cardiovascular diseases. For example, the Ultra Low Emission Zone (ULEZ) in London, which builds on the congestion charge, has seen harmful nitrogen dioxide levels drop by 46% in central areas. By decentralising businesses, cities can reduce traffic-related pollution, leading to cleaner air and healthier residents.

In Indian cities, where pollution levels are among the highest globally, reducing congestion can have a profound impact on public health.

Subsidising non-essential companies to relocate outside the city is a multifaceted solution to urban congestion. It reduces the need for costly infrastructure projects, creates opportunities in suburban areas, disrupts the economics of illegal constructions, and offers environmental and health benefits. This strategy not only addresses the immediate issue of congestion but also promotes sustainable urban development in the long term.