India is one of the fastest growing economies in the world. Global experience indicates that economic, political and social progress has significant impact on the pace and nature of urbanization. Rising aspirations, job creation, permanent migrant movement and expanding middle class on one hand and inadequate preparation for the inevitable rise in urbanization on the other is contributing to a scenario that is socially, fiscally and environmentally unsustainable. Urban population in 2011 was more than 30% while it is expected to touch 41% by 2030. However, India has not engaged in a national dialogue about how to address this rising rate of urbanization that presents an unprecedented managerial and policy challenge. Reforming the way our cities are governed is crucial for a successful and sustainable urban transformation.
Urban governance is the system, process and practice through which cities are managed and developed. It is a sum of public and private institutions and decision making frameworks pertaining to urban planning, service delivery and administration of urban areas. Appropriate governance is critical for ensuring the maintenance of road, transport, housing, sanitation, water, health, electricity, education, environment etc. while also managing infrastructure development. Quality of urban governance is essential for eradicating poverty, fostering sustainability, encouraging participatory government, enhancing urban resilience and promoting prosperous cities. Efficient urban management prioritizes outcomes and upholds fundamental human rights by ensuring that every urban dweller benefits from urbanization.
New Part IX-A was included in the Constitution through 74th Constitutional Amendment Act 1922 that provides for the establishment of ULBs including municipal corporations as institutions of local self-government. The chief objective of 74th CAA was to strengthen democratic principles at grassroots level through ULBs and to increase the participation level of urban citizens in the governance of city. Articles 243P to 243ZG and a new twelfth schedule were inserted in the Constitution. It empowers states to devolve the responsibility of 18 functions to urban local bodies including slum upgradation, urban planning, regulation of land use etc. The Urban Local Government entails eight kinds of urban local bodies (ULB). Smart Cities Mission, a centrally sponsored scheme was launched in 2015 to convert 100 cities and provide it with adequate infrastructure, sustainable environment and improve the quality of life for citizens through inclusive development and smart solutions. Swachh Bharat Mission-Urban was a national campaign setup in 2014 to promote sanitation, cleanliness and proper waste management in urban areas. Pradhan Mantri Awas Yojna makes home loans reasonable for urban underprivileged by subsidising interest rate of home loan during repayment through EMIs. Urban Platform for Delivery of Online Governance (UPYOG) is the national reference platform designed for online municipal service delivery. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Mission was established in 2014 with the aim of securing every household a tap with assured water supply and a sewer connection.
Urban governance in India has its own set of challenges that obstructs the efficient functioning of ULBs as an institution of self-governance. Under the Constitution urban governance is enlisted under State List thus, the administrative framework and regulations of ULBs varies across states. ULBs lack substantial power and autonomy in city management and parastatals manages various city level functions leading to overlapping responsibilities. With no finance list, and limited and inflexible tax base the income generated by ULBs is inadequate relative to their responsibilities. Special purpose agencies formed under direct State observation with no accountability to urban local government confounds governance and delivery system. Municipal bodies fund these agencies such as Water Supply Department and State Transport Corporation with no control over them. Similarly parallel agencies and schemes such as MP/MLA Local Area Development Funds distort the intended federal structure, undermine financial autonomy and complicate urban governance. ULBs lack administrative and institutional capacity and skilled employees to plan social and economic development, mobilise resources and implement infrastructure projects. Unplanned urbanisation result in scanty housing development, slum mushrooming, unauthorised colonies and deficient facilities such as electricity, water, sanitation and traffic congestion. Municipal services struggle to fulfil the mounting need of population both in quantity and quality. Poor waste management system, congestion and rising pollution negatively impacts environment, public health, productively and overall quality of life. Poor link with urban citizens leads to lower public participation in decision making process thus decaying participatory democracy.
Cities are gravely neglected, despite the crucial role they have played and will continue to play in the economic development of the nation. Weak institutions and poor governance framework increases low performance, ineffective sectoral interventions, resource wastages, little functional autonomy, human rights violations and overall lack of growth. It is essential to assist local governments to efficiently capture domestic revenue, improve fiscal decentralization, manage urban displacement and utilize technologies. Adopting a common categorisation of ULBs across the county will bring clarity in their definition and assist a systematic planning process, functioning and devolution of funds. Lenders will be more prepared to finance long-term infrastructure development if ULBs can create secure revenue streams by reforming property tax regime and improving service delivery. Underutilised properties held by local bodies can be monetised by public-private partnership for developing commercial markets, spaces or parking. ULBs must engage in value added instruction for developing their institutional and human capacity and focus on executing bankable projects taking into account the views of concerned stakeholders. Each city must prepare comprehensive mobility plan and link it with the master city plan to decongest roads and reduce pollution. Direct engagement of people in policy decisions by having representatives can help achieve people friendly governance. The pace of urbanization cannot be advanced to support the twofold objective of enhancing the standard of life of country’s rapidly expanding urban population and transforming Indian cities to serve as sustainable growth engines in present phase of development unless institutional reforms are set in place to effectively cope these concerns.
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