THE NEED FOR A LOCALISED URBAN AGENDA

THE CONTEXT: India’s urban population is projected to become the world’s largest in the coming decades, driven by post-1990s liberalization policies and centrally funded missions like JNNURM, PMAY, and Smart Cities Mission, which allocated 30% of Union budgets to metro rail projects. However, critics highlight inflexible top-down approaches causing regional mismatches, with demands for 70% devolution of funds to states and cities to address diverse urbanization patterns while pursuing climate resilience and the $5 trillion economy target by 2025.

HISTORICAL EVOLUTION OF URBAN POLICY

1. 1. Post-Liberalization Era (1990s Onwards):

• • • • Economic liberalization catalyzed urbanization, with the Centre steering urban missions like the JNNURM (2005) to improve infrastructure and governance.
      • Subsequent flagship schemes (e.g., PMAY, AMRUT, Swachh Bharat Mission) focused on housing, sanitation, and utilities, reflecting the Centre’s pivotal role.

1. 1. Centralized Financial Control:

• • • • Despite urban development being a State subject (Entry 5, List II, Seventh Schedule), the Centre has shaped urbanization through conditional grants and sector-specific missions.
      • Example: Metro rail projects received 30% of the Union urban budget under NDA, prioritizing high-cost infrastructure over local needs.

CRITIQUE OF THE TOP-DOWN APPROACH

1. 1. One-Size-Fits-All Model:

• • • • Central missions (e.g., Smart Cities) often impose uniform solutions, sidelining regional disparities.
      • Underutilized funds and “lousy infrastructure” in some Smart Cities due to prescriptive guidelines.

1. 1. Fiscal Centralization:

• • • • Union Finance Commissions (e.g., 15th FC) tie grants to conditions like enhancing property taxes and limiting fiscal autonomy.
      • States mirror Central budget priorities, stifling innovation in local governance.

1. 1. Mismatch with Local Realities:

• • • • Kerala’s Rural-Urban Continuum: Termed a “single city,” Kerala’s blurred urban-rural boundaries defy conventional planning.
      • Gujarat’s Core-Periphery Divide: Wealth disparities and pollution drive suburbanization, akin to U.S. cities in the 1970s.

 

REGIONAL VARIATIONS DEMANDING DECENTRALIZATION

1. 1. Housing and Utilities:

• • • • PMAY struggles in cities with adequate social housing (e.g., Chandigarh) but is vital in high-migration hubs (e.g., Bengaluru).
      • Water and Sanitation: Cities like Chennai need decentralized solutions, while others require centralized systems.

1. 1. Migration Patterns:

• • • • Southern states (e.g., Karnataka, Tamil Nadu) face demographic shifts due to inter-state migration, necessitating tailored welfare policies.

THE WAY FORWARD:

1. 1. Radical Fiscal Devolution with Outcome-Linked Accountability

• • • • 70:30 Model with Outcome-Based Grants:Devolve 70% of Central funds as untied grants via State Finance Commissions (SFCs), mandating outcome audits (e.g., SDG-linked metrics). Reserve 30% for climate resilience, guided by the National Climate Resilience Fund (proposed).

• • • • Constitutional Backing: Align with Article 243X (power of SFCs) and 15th Finance Commission’s recommendation to link grants to property tax reforms.
      • Kerala’s People’s Plan Campaign (1996) devolved 35% of state funds to local bodies, resulting in a 22% rise in rural-urban infrastructure quality (UNDP 2020).

1. 2. Constitutional Empowerment of Urban Local Bodies (ULBs)

• • • • Amend Article 243Wto include “urban planning” explicitly in the 12th Schedule, granting ULBs statutory authority over land use and zoning.

• • • • Implement the Second Administrative Reforms Commission (ARC) Report (2007) recommending ULB fiscal autonomy.
      • Rajasthan’s Municipal Laws (Amendment) Act, 2021 allows ULBs to issue municipal bonds, raising ₹500 crore for Jaipur’s metro.

1. 3. Hyper-Local Data Ecosystems for Contextual Planning

• • • • National Urban Data Grid:Create a GIS-based platform integrating granular data (e.g., slum maps, water tables) under the National Urban Innovation Stack (NUIS).

• • • • Odisha’s JAGA Mission used drone surveys to formalize 3,000 slums, granting 1.5 million land titles.
      • NITI Aayog’s ‘Data-Driven Urban Planning’ Report (2021) advocates for ward-level data councils.
      • Global Inspiration: Singapore’s Urban Redevelopment Authority uses real-time data for adaptive zoning.

1. 4. Mission Reforms: From Prescriptive to Enabling Frameworks

• • • • Flexi-Fund Architecture:Convert centrally sponsored schemes (CSS) into umbrella frameworks (e.g., Urban Transformation Mission) with 50% flexible funding.

• • • • Kerala’s LIFE Mission bypassed PMAY’s constraints, building 3.2 lakh homes via community-managed construction.
      • Global Model: Japan’s Local Allocation Tax system lets cities prioritize projects without central interference.

1. 5. Cooperative Federalism 2.0: Multi-Level Governance Platforms

• • • • National Urban Council: Institutionalize a permanent body under NITI Aayog with ULB, State, and Central representatives to negotiate fiscal and policy disputes.
      • Constitutional Basis: Article 263 empowers inter-state councils; expand mandate to urban governance.
      • South Africa’s Intergovernmental Relations Framework Act (2005) mandates quarterly dialogues.

1. 6. Climate-Centric Urbanization with Local Resilience Funds

• • • • Urban Resilience Grants:Allocate 15% of the 30% national fund to city-specific projects (e.g., heat action plans, sponge cities).

• • • • Legal Mandate: Enforce Environment (Protection) Act, 1986 amendments requiring ULBs to adopt climate-resilient bylaws.
      • Surat’s Climate Resilience Strategy reduced flood damages by ₹1,200 crore annually (TERI 2021).
      • Global Alignment: Align with IPCC’s AR6 Report (2023) urging “sub-national climate finance.”

THE CONCLUSION: India’s unique demographic and spatial diversity calls for reimagined urban governance—one that values local contexts over a uniform blueprint. The Centre can focus on overarching national priorities—e.g., climate resilience, high-level regulation, global commitments—while States and cities determine the finer, local details of urban development.

UPSC PAST YEAR QUESTION: How is the growth of Tier 2 cities related to the rise of a new middle class with an emphasis on the culture of consumption ? 2022

MAINS PRACTICE QUESTION: India’s urban development strategies often fail to address regional disparities due to centralized governance. Examine the need for decentralizing urban governance in India. Suggest reforms to empower Urban Local Bodies (ULBs) as effective agents of sustainable urbanization.

SOURCE: https://www.thehindu.com/news/national/the-need-for-a-localised-urban-agenda-explained/article69368475.ece

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