STRENGTHENING URBAN LOCAL SELF-GOVERNANCE

THE CONTEXT: India’s rapid urbanization presents opportunities and challenges, with the urban population expected to reach 800 million by 2050. Effective urban governance is crucial to address issues like inadequate infrastructure, socioeconomic disparities, and environmental sustainability.

THE CHALLENGES:

• State-level implementation issues: States often struggle to implement urban governance reforms. There is a weak institutional capacity for urban planning and management. Lack of political will, Bureaucratic red tape, Poor interdepartmental coordination, and financial constraints exacerbate this issue.
• Limited powers of mayors and councilors: Mayors and councilors in India have restricted authority over funds and functionaries, reducing Urban Local Bodies (ULBs) to mere civic service agencies rather than empowering local self-government.

• Financial Constraints: India’s municipal revenues have been declining. India lacks predictability in transfers from state governments to ULBs, further exacerbating financial constraints. Municipal revenues as a percentage of GDP were significantly higher in other countries.

• Implementation of 74th Constitutional Amendment Act: The 74th CAA mandated the transfer of 18 functions to ULBs. However, progress has been slow and uneven across states. By 2013, only 11 out of 31 states and union territories had transferred all 18 functions to ULBs. Even prosperous municipalities like the Brihanmumbai Municipal Corporation lack independent bodies to lease land and generate revenue from land-use regulations.
• Citizen Participation: As of 2023, only 3 out of 35 states and union territories have mandated public consultation on city budgets. Only 5 out of 35 states and union territories have enacted community participation laws for citizen engagement through ward committees and area sabhas.

MODEL LAWS FOR URBAN GOVERNANCE:

Model Community Participation Law (CPL): The Model Community Participation Law, introduced under JNNURM in 2005, aims to institutionalize citizen engagement in urban governance.

• Formation of Area Sabhas: The smallest unit of citizen participation, representing 2,000-3,000 people.
• Establishment of Ward Committees: Comprising 10-20 members, including elected representatives and nominated members from civil society. Ward Committees include the ward councillor as chairperson, with representation from resident welfare associations, community groups, and professional organizations.
• Mandatory consultation: ULBs must consult Area Sabhas and Ward Committees on urban issues, including budget preparation, planning, and project implementation.
• Capacity building: Provisions for training and empowering citizens to participate effectively in urban governance. In 2019, a study by Praja Foundation found that only 13 out of 29 states had formed Ward Committees, indicating slow progress in implementation.

Model Public Discourse Law (PDL): The Model Public Discourse Law focuses on enhancing transparency and accountability in urban governance.

• Proactive disclosure: ULBs must publish key information, including budgets, project details, and performance reports, on their websites and through other accessible means.
• Right to Information: The law strengthens citizens’ right to access information from ULBs, complementing the Right to Information Act of 2005.
• Performance monitoring: Regular performance audits and citizen satisfaction surveys are mandatory to assess ULB functioning.
• Mandatory public hearings: ULBs must conduct public hearings before finalizing major projects or policy decisions.
• Social Audit Committees: Formation of independent committees to conduct social audits of ULB functioning and project implementation.
• Grievance redressal: Establishment of robust mechanisms to address citizen complaints and feedback.

CONTEMPORARY URBAN GOVERNANCE REFORMS AND SCHEMES:

• Smart Cities Mission (SCM): Launched in 2015, the SCM aims to develop 100 smart cities across India. As of 2023, 7,905 projects worth ₹1,93,143 crore have been tendered, with 5,287 projects worth ₹98,796 crore completed.
• Atal Mission for Rejuvenation and Urban Transformation (AMRUT): AMRUT focuses on providing essential services and improving urban infrastructure. By 2023, 89% of the 5,818 projects worth ₹77,640 crore have been completed.
• Pradhan Mantri Awas Yojana – Urban (PMAY-U): This scheme aims to provide housing for all urban poor by 2022. As of 2023, 122.69 lakh houses have been sanctioned, with 64.37 lakh houses completed.
• National Urban Digital Mission (NUDM): Launched in 2021, NUDM aims to create a shared digital infrastructure for urban governance, including platforms for municipal services, urban planning, and citizen engagement.

NEED FOR STRENGTHENED CENTRE-STATE PARTNERSHIPS:

• Financial devolution: The 15th Finance Commission recommended ₹1.21 lakh crore for urban local bodies from 2021-26, emphasizing the need for better Centre-State coordination in fund allocation and utilization.
• Capacity building: The National Urban Learning Platform (NULP), launched in 2020, aims to train 4 lakh urban functionaries by 2024. Strengthened partnerships can enhance the reach and effectiveness of such initiatives.
• Policy alignment: The NITI Aayog’s 2021 report on “Reforms in Urban Planning Capacity in India” recommends creating a high-powered urban planning committee involving central and state representatives.

IMPORTANCE OF COLLABORATION AMONG STAKEHOLDERS:

• Public-Private Partnerships (PPPs): Indore’s waste management system’s success, which helped it secure the title of India’s cleanest city for six consecutive years, demonstrates the potential of PPPs in urban governance.
• Civil society engagement: Mumbai’s Advanced Locality Management (ALM) initiative, involving over 1,000 citizen groups, showcases the impact of community participation in urban governance.
• Academia-government collaboration: The Indian Institute for Human Settlements (IIHS) partners with various ULBs to provide research and capacity-building support, highlighting the importance of knowledge partnerships.

THE WAY FORWARD:

• Direct election of mayors: Implementing direct mayoral elections can enhance accountability and leadership in urban governance. In 2018, Madhya Pradesh introduced direct mayoral elections, improving responsiveness to citizens’ needs.
• Municipal bonds: Encouraging ULBs to issue municipal bonds can provide access to capital markets for infrastructure development. Pune Municipal Corporation raised ₹200 crore through municipal bonds in 2017 for water supply projects.
• Mandatory devolution of functions: The central government can incentivize states to transfer all 18 tasks to ULBs as mandated by the 74th CAA. NITI Aayog’s 2021 report recommends linking central funding to implementing 74th CAA provisions.
• Municipal cadre development: Creating dedicated municipal cadres can enhance the professionalism and expertise of ULB staff. Partnering with universities and research centers can provide ULBs with technical knowledge and innovation.
• Metropolitan planning committees: Strengthening MPCs can improve coordination between multiple ULBs in large urban agglomerations. Creating overarching urban development authorities can ensure better alignment of policies and resources.

THE CONCLUSION:

Strengthening urban governance requires a multi-pronged approach involving empowered ULBs, robust Centre-State partnerships, and active citizen participation. By implementing comprehensive reforms and fostering stakeholder collaboration, India can create sustainable, inclusive cities that drive economic growth and improve quality of life.

UPSC PAST YEAR QUESTION:

Q. The states in India seem reluctant to empower urban local bodies both functionally and financially. Comment. 2023

MAINS PRACTICE QUESTION:

Q. “Despite constitutional provisions and various government initiatives, urban local bodies in India continue to face significant challenges in governance and service delivery.” Discuss

SOURCE:

https://www.orfonline.org/expert-speak/the-role-of-the-central-government-in-strengthening-urban-local-self-governance