The Prime Minister is keen that states and Union Territories are proactive partners in this challenging task, he said.
"In view of the huge resource requirement, government is exploring all models of financing," he said after inaugurating a two-day meet of Urban Development and Housing ministers and secretaries of states and Union Territories here.
The meeting of acknowledged the enormous challenges and opportunities provided by the Modi government's initiative to provide housing for all by 2022.
Referring to the issues of urban governance, Naidu noted that recent incidents of building collapse in Delhi, Chennai and Mumbai are a serious matter of concern.
Reflecting on inadequacies in urban planning and management, the Minister emphasised on the need for GIS-based regional planning, development of adequate infrastructure including efficient public transport system, provision of drinking water, solid waste management and sanitation besides conservation of energy and nature.
Naidu particularly explained the need for transparency and accountability in urban planning and management.
He also called for people's participation in urban planning and management.
He said people are willing to pay for better and assured services and this should be factored in urban planning in place of populist subsidy approach.
Urban Development and Housing Secretary Anita Agnihotri referred to the "failure" on the part of all concerned in implementation of various urban renewal initiatives like JNNURM and affordable housing for poor.
She urged the states and Union Territories to learn from these experiences and suggest ways and means for better planning and management.
Former Urban Development Secretary Sudhir Krishna said urban development and renewal have been neglected for too long and time has come to focus on urban development as an engine of economic growth. He said there is a direct relationship between urbanisation and growth and development and per capita income.