"A cabinet committee can be set up to handle the issues such as solid waste and water management by state chief ministers," he said delivering a lecture on 'Sustainable Cities' held at Bharati Vidyapeeth here.
"A significant improvement was needed in the solid waste management and its conversion into energy through regulation and innovative decisions," he said, adding that the state governments should accord priority to the problem.
Describing water crisis a "more serious" problem than energy, Montek said the use of water in cities should be "efficient" and water charges higher.
"A collection of policy instruments was needed to manage sustainability of cities involving state governments and Centre," he said, adding that the social mindset should also change to ensure sustainability.
"There is a need for a shift from private to public transport which should become attractive and financially sustainable," he added.
Chavan said there was a "huge mismatch" between the demand and supply of urban housing and requested the Centre to allow the state government to pilot a "housing regulator" bill.
