New Delhi, April 26: The NITI Aayog released a report on Saturday addressing the infrastructural challenges in urban areas. These challenges include fragmented institutional arrangements, limited power transfer, weak financial autonomy, and lack of accountability. The report proposes a focused framework to tackle these issues.
Strengthening urban governance is crucial for cities to function effectively. The report emphasizes enhancing institutional foundations and implementing reforms across various sectors. It prioritizes cities with populations exceeding one million, recognizing them as key economic hubs contributing significantly to national progress.
Union Minister Manohar Lal Khattar unveiled the report at an event attended by urban development ministers from over ten states. This participation highlights a strong commitment to advancing reforms in urban governance.
Urbanization is vital for achieving the dream of a ‘Developed India’ by 2047 and transitioning to a $30 trillion economy. Cities play a pivotal role in promoting economic growth, fostering innovation, and generating employment.
Titled “Towards Effective Urban Governance: A Framework for Cities with Over One Million Population,” the report identifies persistent governance issues. These include weak and fragmented leadership structures, limited financial capacity, and deficiencies in capability. Such shortcomings hinder service delivery and overall city functionality.
The report advocates for redistributing authority, responsibility, and resources at the city level to empower urban governance. This change is essential for cities to serve as effective engines of development and meet the needs of their residents.
Key recommendations include strengthening urban leadership by introducing directly elected mayors with fixed terms. It also suggests establishing a ‘Mayor-in-Council’ system to ensure continuity, clarity, and accountability in decision-making. Additionally, the report recommends consolidating urban services, such as water supply, sanitation, and public transport, under urban governments for better coordination and accountability.
The report aims to enhance the financial health of urban bodies. It suggests strengthening revenue generation from local sources, ensuring timely financial transfers through robust State Finance Commissions, and facilitating access to market-based financial instruments like municipal bonds.
Furthermore, the report proposes institutional restructuring. It advocates bringing various semi-government agencies involved in service delivery under urban government oversight, clearly defining their roles and enhancing coordination.
To implement these reforms effectively, the report advises states to amend their municipal laws to incorporate governance improvements. It also calls on the Ministry of Housing and Urban Affairs to update the ‘Model Municipal Law’ and provide guidance and incentives for adopting these reforms. NITI Aayog member Rajiv Gauba highlighted that the report is the result of extensive discussions with experts, evidence-based analysis, and a study of global best practices.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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