Urban development sector is riding the crest of India’s economy growth. As economic growth trajectory rises and further integrates itself with the global economy, planned and organized housing and urban development across segments will get further boost. Urban development is fueled by rapidly expanding industrial and residential housing sector. For instance, by 2010 the IT sector alone is expected to require 150 million sq.ft. of space across major cities. It is estimated that in the residential sector there is a housing shortage of 19.4 million units out of which 6.7 million are in urban India. .Similarly, India’s future urban development investment demands include US$ 29.5 billon for urban transport and US$ 37 billion water and sanitation. To meet this present and expected demand for investment, government has been tapping various sources to channel investment in to these services. Also, the Government is talking to the World Bank to set up an urban infrastructure fund for making available easy loans for city development programmes, to the tune of US$ 500 million.