Promoting Inter-Governmental Relations and Sharing of Good Practice Policies on Local Government

1. Promoting Inter-Governmental Relations and Sharing of Good Practice Policies on Local Government Dr.AshokSinghvi Joint Secretary Ministry of Urban Development Government of India

2. Structure of Presentation • Key Features of India’s Urbanization Process, 2011 • Governance Structure and Functions • Enabling Legislation • Principles of subsidiarity &Fiscal Federalism • Enabler’s for Urban Local Governance • JnNURM– a National Initiative for sound planning and service delivery • Challenges facing local governments

3. Key Features of India’s Urbanization Process, 2011 • Increase of 91.1 million persons to urban population during 2001-2011 • The annual exponential growth rate of 2.76% registered during 2001-2011 • Rural to Urban conversion and Rural-Urban migration • Number of metropolitan cities (+1 million) 35 to 53 during 2001-2011.

4. Number of UAs/Towns and OGs in India

5. Governance Structure – 3 Tier Ministry Central Finance Commission State Governments State Finance Commission State Election Commission Municipal Corporations Municipality Municipal Council

6. Enabling Legislation: 74th Constitutional Amendment Act(CAA) - 1992 • Enables constitution, election and functioning with powers as per Article 253W • Seventh Schedule – Article 246 – List –II State List provides for the powers of the States • Delegation of powers and functions to ULBs • MoUD mandate: Oversee provisions under the Constitution are adopted in the State Specific Laws

7. Functions - ULBs:12th Schedule –Article 243W • Urban planning including town planning. • Regulation of land-use and construction of buildings. • Planning for economic and social development • Roads and bridges. • Water supply for domestic, industrial and commercial purposes. • Public health, sanitation conservancy and solid waste management. • Fire services. • Urban forestry, protection of the environment and promotion of ecological aspects • Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.

8. (Contd.) • Slum improvement and up-gradation. • Urban poverty alleviation. • Provision of urban amenities and facilities such as parks, gardens, playgrounds. • Promotion of cultural, aesthetic aspects. • Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. • Cattle pounds; prevention of cruelty to animals. • Vital statistics including registration of births and deaths. • Public amenities including street lighting, parking lots, bus stops and public conveniences. • Regulation of slaughter houses and tanneries

9. Finances of Local Bodies: Constitutional Provisions Article 243I: Central Finance Commission Article 266: Net of the share of taxes of the States Central Finance Commission: Consolidated Funds State Finance Commission • SFC recommends funds to be allocated • Voted by the State Legislature and passed on to Local Bodies Urban Local Bodies Article 282: aids Finance Commission to recommend direct devolution of funds to institutions of local self government for any “Public Purpose”

10. State Finance Commission • Constitution requires SFCs to review the financial position of ULBs and recommend to the Governor on : • Distribution of net proceeds of taxes, duties, tolls and fees levied by the States to ULBs( Art.243Y) • Determination of taxes, fees, tolls and duties that may be assigned to or appropriated by ULBs • Grants to ULBs from the Consolidated funds of States • 28 States - SFCs from 2004

11. Local Governance: State Election Commission • Art. 243K: empowers setting up of a State Election Commission • Art.24ZA, vests the power with the SEC to conduct elections to ULBs • Seventh Schedule – Article 246 – List –II State List provides for the powers of the States • CAA provides for delegation of powers and functions to Urban Local Bodies • Elections to ULBs in all the States were held on a non-partisan basis by SECs • Art.243G restrains interference of courts in electoral matters except by an election petition

12. Key responsibilities of the Ministry • Oversee the provisions of the 74th CAA, 1992 and its implementation • Frames Guiding policy level initiatives to facilitate the functioning of Local Self Governments • Planning and Coordination of Urban Transportation systems • Town and Country Planning, Planning and Development of Metropolitan Areas • Water Supply, Drainage and Sewerage in urban areas (with an overall perspective on National Planning)

13. Enabler’s for Local Governance • 30% of Urban Population contributes to ~70% of GDP of the country, To improve Urban governance, schemes to address urban infrastructure • Jawaharlal Nehru Urban Renewal Mission • Sub- Mission I: Urban Infrastructure & Governance (UIG) • Sub-Mission II: Basic Services for the Urban Poor (BSUP) • Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) • Integrated Housing and Slum Development Programme (IHSDP) • National Capital Region Plan ( covering States of Uttar Pradesh, Haryana, Rajasthan and NCT of Delhi) • Development of Satellite Cities/Counter Magnet Cities • Pooled Finance Development Fund & Tax Free Municipal Bonds • National E-Governance Project in Municipalities (NeGP)

14. Jawaharlal Nehru National Urban Renewal Mission:Two track strategy for the urban sector development Track-I Track-II Sub Mission for Urban Infrastructure and Governance Urban Infra. Dev. Scheme for Small & Medium Towns Integrated Housing & Slum Dev. Program Sub Mission for Basic Services for the Urban Poor Coverage- 65 cities Coverage- all other cities Cities/UAs with 4 million + population 07 Cities with 1 million + population 28 State Capitals and other Cities 30 • 7 years time frame, starting from 2005-06 and up to 2011-12 • Overall allocation (original) – Rs. 50,000 Crore • Increase in allocation in Feb ’09 – UIG: Rs. 6,000 Cr, UIDSSMT: Rs. 5,000 Cr, BSUP: Rs. 2682.13 cr., IHSDP: Rs. 2361.19 Cr. • MoUD is responsible for 2 schemes: Sub Mission for Urban Infrastructure and Governance, Urban Infrastructure Development Scheme for Small and Medium Towns * Starting Year 2005-06, running upto 2011-12 ** Rs. 16,084.66 Cr additional allocation in 2009-10

15. Mission Objective and Coverage • Planned development • Integrated development of infrastructure • Linkages between asset creation & asset management • Ensuring adequate investment of funds • Scaling up delivery of services and emphasis on universal access • Renewal of inner city areas PORBANBAR THIRUPATI

16. JNNURM - Overall Process Key deliverables • Monitoring implementation of projects and reforms is also a key constituent of the overall process of JNNURM.

17. JNNURM Implementation Structure

18. Funding Pattern • 4 installments; 25 % finance with CDP+MOA+ DPR approval; balance based on project & MoA milestones. 18

19. Progress of projects implementation

20. Reforms under the Mission Objectives Reform Framework

21. Key achievements under JnNURM • Legislation has been enacted for establishment of urban local bodies in few of North Eastern States • Municipal elections have been held after a gap of 22 years in one state Jharkhand . Community Participation Law and Public Disclosure Law have been enacted for the first time • Rain Water Harvesting structures have been constructed in by individuals and in govt. buildings • Earmarking of funds for provision of basic services to urban poor • Land Titling in urban areas initiated in Rajasthan • Creation of a separate municipal cadre and municipal accounts service in Andhra Pradesh • Creation of a separate Urban Transport Fund in Cities of Surat and Ahmedabad • Setting up of Urban Metropolitan Transport Authority in Hyderabad, Jaipur, Chennai, Bangalore and Mumbai

22. Challenges faced by Urban Local Governments • Pressure on service delivery • Resource constraints to meet the Infrastructure investments to augment facilities for scaling up municipal services • Dependence on fiscal transfers from the federal government • Capacity constraints in manpower, adoption of new technologies and urban management practices • Urgent need for Creation of a dedicated, separate Municipal Cadre in States to meet the shortage of qualified manpower • Capacity Building and Training of elected representatives and Municipal staff • All functions devolved on local bodies are obligatory, local governments face revenue crunch in meeting the aspirations of the population in urban areas.

23. MoUD’s sustained efforts…

24. Thank YouWebsite : urbanindia.nic.in