A state and size class wise analysis of the level of urban basic amenities reveals that disparities are extremely high in the nineties. The government and para-statal institutions have not exhibited sensitivity in favour of backward states, small and medium towns and the poor. Presently, privatisation, partnership arrangements and promotion of community-based projects have emerged as the only options for undertaking investments in basic amenities due to resource crunch in the government. This changed perspective and a consequent decline in public investment, however, are likely to accentuate the disparity in the levels of amenities across the size class of urban settlements.