“We Can’t Run Cities From State Capitals”: Shri Rajiv Gauba, Member, NITI Aayog At 2nd National Urban Conclave, Calls For Empowered City Governments To Unlock India’s Growth Potential

Key Highlights:

• Shri Rajiv Gauba, Member, NITI Aayog, called for comprehensive urban governance reforms at the 2nd National Urban Conclave.
• Emphasized empowering city governments with directly elected mayors and devolution of all 18 functions as per the 74th Constitutional Amendment Act.
• India's urban population is projected to increase from 50 crore to 85 crore by 2050, requiring fundamental changes in urban planning and financing.
• Post-2014, the urban sector saw a 10-fold increase in budgetary outlay and significant investments in missions like Smart Cities Mission and AMRUT.
• The Urban Challenge Fund of ₹1 lakh crore was announced, alongside increased Central Finance Commission grants to Urban Local Bodies (ULBs).

Detailed Insights:

• Cities are crucial for economic growth, and their neglect post-independence is being addressed through concerted efforts.
• Empowered city governments are essential for improved service delivery and effective citizen participation.
• Reforms include introducing a Mayor-in-Council system and ensuring timely municipal elections.
• States must devolve functions like master planning, water supply, and fire services to ULBs.
• Municipal revenues need improvement through better property tax and user-charge recovery.
• Regular constitution of State Finance Commissions and adequate fiscal transfers to ULBs are critical.
• Urban planning requires overhauling restrictive FARs and building norms, adopting mixed-use zoning, and land pooling.
• Adoption of the Model Tenancy Act is urged to increase affordable rental housing for migrant workers and students.
• These reforms, implemented through new Municipal Acts, are vital to unlock India’s urban growth potential and achieve Viksit Bharat @ 2047.

Key Concepts Involved:

• 74th Constitutional Amendment Act: Mandates the establishment and powers of Urban Local Bodies (ULBs) in India.
• NITI Aayog: A policy think tank of the Government of India, providing strategic and technical advice.
• Urban Local Bodies (ULBs): Local self-governing bodies responsible for the administration of urban areas.
• Viksit Bharat @ 2047: The vision for India to become a developed nation by its 100th year of independence.