Re-Visioning Indian Cities: The Urban Renewal Mission

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K. C. Sivaramakrishnan

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    List of Tables

    List of Abbreviations

    AAYAtal Awas Yojana
    ACAAdditional Central Assistance
    ADBAsian Development Bank
    AMBAYAmbedkar Malin Basti Awas Yojana
    ASCIAdministrative Staff College of India
    BIMARUBihar, Madhya Pradesh, Rajasthan, Uttar Pradesh
    BJPBharatiya Janata Party
    BMCBombay Municipal Corporation
    BMRDABangalore Metropolitan Region Development Authority
    BOTBuild-Operate-Transfer
    BRTSBus Rapid Transit System
    BSUPBasic Services for Urban Poor
    CAAConstitutional Amendment Act
    CARECredit Analysis and Research Ltd
    CBOCommunity Based Organizations
    CCFCity Challenge Fund
    CCICabinet Committee on Infrastructure
    CDPCity Development Planning
    CEOChief Executive Officer
    CEPTCentre for Environmental Planning and Technology
    CMChief Minister
    CMDACalcutta Metropolitan Development Authority
    CNGCompressed Natural gas
    COECertificate of Entitlement
    CPFCommunity Participation Fund
    CPHEEOCentral Public Health and Environmental Engineering Organisation
    CPRCentre for Policy Research
    CPWDCentral Public Works Department
    CRISILCredit Rating and Information Services of India Ltd
    CSECentre for Science and Environment
    CSMCCentral Sanctioning and Monitoring Committee
    CTAGCity Technical Advisory Group
    CVTCCity Volunteer Technical Committee
    DCRDevelopment Control Regulation
    DFIDDepartment for International Development
    DMRCDelhi Metro Rail Corporation
    DPCDistrict Planning Committee
    DPDCDistrict Planning and Development Council
    DPRDetailed Project Report
    DTCDelhi Transport Corporation
    EIUSEnvironmental Improvement of Urban Slums
    EPCAEnvironment Pollution Control Authority
    EWSEconomically Weaker Section
    FARFloor Area Ratio
    FSIFloor Space Index
    GDPGross Domestic Product
    GEMGenerator of Economic Momentum
    GISGeographic Information System
    GPSGlobal Positioning System
    GTCGlobal Training Centre
    HHHousehold
    HMDAHyderabad Metropolitan Development Authority
    HUDAHyderabad Urban Development Authority
    HUDCOHousing and Urban Development Corporation Limited
    HUPAHousing and Urban Poverty Alleviation
    ICRAInvestment Information and Credit Rating Agency of India
    IDSMTIntegrated Development of Small and Medium Towns
    IHSDPIntegrated Housing and Slum Development Programme
    IRMAIndependent Review and Monitoring Agency
    IITIndian Institute of Technology
    ISROIndian Space Research Organisation
    ITInformation Technology
    JNNURMJawaharlal Nehru National Urban Renewal Mission
    JUSCOJamshedpur Utilities and Services Company Ltd
    KMDAKolkata Metropolitan Development Authority
    KMPCKolkata Metropolitan Planning Committee
    LADLocal Area Development
    LIGLower Income group
    LSGLocal Self government
    MHADAMaharashtra Housing and Area Development Authority
    MHUPAMinistry of Housing and Urban Poverty Alleviation
    MISManagement Information System
    MLAMember of Legislative Assembly
    MLCMember of Legislative Council
    MMRDAMumbai Metropolitan Region Development Authority
    MNPMinimum Needs Programme
    MOUDMinistry of Urban Development
    MPMember of Parliament
    MPCMetropolitan Planning Committee
    MPLADsMember of Parliament Local Area Development Scheme
    MRTPMonopoly and Restrictive Trade Practices
    MRTSMass Rapid Transit System
    NBCCNational Buildings Construction Corporation
    NBONational Building Organization
    NCRNational Capital Region
    NCUNational Commission on Urbanization
    NDCNational Development Council
    NGONon-governmental Organization
    NHPNational Housing Policy
    NIPFPNational Institute of Public Finance and Policy
    NIUANational Institute of Urban Affairs
    NO2Nitrogen Oxide
    NREGANational Rural Employment guarantee Act
    NRYNehru Rozgar Yojana
    NSDPNational Slum Development Programme
    NRSCNational Remote Sensing Centre
    NURMNational Urban Renewal Mission
    PEARLPeer Experience and Reflective Learning Programme
    PHEPublic Health Engineering
    PMPrime Minister
    PMCPune Municipal Corporation
    PMIUPEPPrime Minister's Integrated Urban Poverty Eradication Programme
    PMGPPrime Minister's grant Project
    PPPPublic–private Partnership
    PWDPublic Works Department
    QPRQuarterly Progress Report
    RAYRajiv Awas Yojana
    RSPMRespirable Suspended Particulate Matter
    RTIRight to Information
    SEZSpecial Economic Zone
    SJSRYSwarna Jayanti Shahari Rozgar Yojana
    SHGSelf Help group
    SLPSpecial Leave Petition
    SUVSport Utility Vehicle
    TAGTechnical Advisory group
    TISCOTata Iron and Steel Company Limited
    TDRTransferable Development Right
    UAEUnited Arab Emirates
    UBSUrban Basic Services
    UBSPUrban Basic Services for the Poor
    UIDSSMTUrban Infrastructure Development Scheme for Small and Medium Towns
    UIGUrban Infrastructure and governance
    UKDFIDUnited Kingdom Department for International Development
    ULBUrban Local Body
    ULCRAUrban Land Ceiling and Regulation Act
    UPAUnited Progressive Alliance
    URIFUrban Reforms Incentive Fund
    USAIDUnited States Agency for International Development
    VAMBAYValmiki Ambedkar Awas Yojana
    VGHViability gap Funding
    VQSVehicle Quota System
    WHOWorld Health Organization

    Preface

    This book started as a paper presented at a conference provocatively titled ‘Undisciplined City’, organized in 2009 by my colleague Partha Mukhopadhyay. The paper was a descriptive account on the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme, the nature of the projects taken up, funds allocated and the cities covered. Some questions were raised but few were answered, in the hope time would give a better shape to the programme. Mukhopadhyay and my other colleague Pratap Bhanu Mehta felt that the National Urban Renewal Mission (NURM) story merited telling in further detail.

    In most spheres of government's endeavour, it is not easy to distinguish between policy and posture. This is particularly true in urban matters since it has taken the country several decades to take note of its urban realities. given my long association with the government, my colleagues felt I was in a better position to overcome the amnesia which was a common failure of many governments and narrate the tortuous processes through which urban policies and programmes evolved leading to the eventual advent of the JNNURM.

    My membership in the Technical Advisory group (TAg) of the JNNURM, whatever its usefulness to the group, did yield a tangible benefit to me. Thanks to this, I could have access to the various City Development Plans, the project reports and other material. Within a few months, I was able to fill a bookshelf with a neat array of 65 red folder boxes, one for each city covered by the Mission, containing the plans, projects and other information. Arundhati Maiti and Kanhu Pradhan, my research associates, were both impressed and amused by my collection. The temptation to yield to their attraction for the Internet had to be overcome. At least in this respect, my age enabled me to carry the burden of memory going beyond what has been captured electronically. However, my research colleagues kept a careful tab of the Ministry's websites to ensure that the contents of my red boxes were frequently updated. Other data inputs of much value came from Shiny Saha, Rishabh Khosla and other researchers from time to time.

    During the complex stages of the manuscript revision and compiling the notes of reference, Sama Khan has been most useful. Comparatively, a latecomer to the Centre for Policy Research's (CPR) urban research team, Sama could quickly grasp the essentials and general tone of the book. She was most helpful in assembling the tables, figures, annexures and references.

    Michael Cohen, Director, graduate Programme of the New School University, New York; Tim Campbell, President of the Urban Age Institute in Washington, DC; Vijay Kelkar, former Chairman of the 13th Finance Commission; and Partha Mukhopadhyay and Pratap Bhanu Mehta went through the manuscript at various stages and made several useful suggestions. I have tried to incorporate several of them but if the results still fall short of their expectations, that only explains my own inadequacies.

    As this volume goes to press, it may be useful to take note of a few developments which have occurred in recent weeks. One is the Census 2011. Provisional figures indicate there are close to 8,000 urban agglomerations, towns or urban centres as compared to a little over 5,000 in 2001, 10 years ago. More and more settlements are acquiring urban characteristics in terms of density and categories of employment. The number of large cities has increased. There are more conurbations or agglomerations than ever before. None of these are a surprise. The question is what should be the response of the government to a country becoming increasingly urban? Whatever that response, it has to be selective to be effective. Assuming that the government's purse will continue to be deep as before, should we look at urban management only in terms of more and more money? Will increasing urbanization strain and eventually tear apart the ecological envelope which we all share? Will a different way of organizing urban governance help?

    The Isher Ahluwalia Committee on Urban Infrastructure has raised a bill of demand amounting to 40 lakhs crores. Another Committee on Urban Transport and Connectivity is expected to give its report. The National Development Council, the highest formal political body comprising the Prime Minister and all the Chief Ministers of the country, briefly elevated urban as one of the items worthy of its consideration and constituted a Committee of the Council to look into the issues. That Committee in turn has formed a subcommittee and an expert group. The government commissioned evaluation on the JNNURM is expected to be available soon. In the meantime, the exercise to formulate the 12th Plan has commenced. The outcome and future of the JNNURM has to be seen in this context.

    As with my previous endeavours in writing, Sarala gopinathan has worked very hard in getting this manuscript ready. Her patience and performance have been exemplary in keeping track of the various changes and ensuring that the manuscript did reach its final shape.

    I am grateful to Dr Sugata ghosh of SAGE Publications for taking up this manuscript for publication. Elina Majumdar and Shreya Chakraborti of the SAGE editorial team were both patient and persistent. Mutual prodding from time to time is an inevitable part of the relationship between the editors and the author. I am happy that the outcome of this interaction has been the expeditious publication of this book.

    Re-visioning Indian cities is an enormous challenge. A major purpose of this book is to provoke some thinking in this regard among scholars, professionals, civil society groups and those in the government and the political spectrum who hover at the edges of formulating policies and programmes. I can only hope the expectation will not be belied.

    May 2011

    K.C.Sivaramakrishnan Delhi

    Introduction

    A benign comment uttered in passing about the JNNURM, launched on 3 December 2005, is that it has done no harm. On the positive side, it has definitely helped to raise awareness and concern about problems of urban growth and management. Urban matters are talked about more widely and more frequently these days than ever before. getting on to the JNNURM bandwagon, limited as it is to 65 cities in the country, has become both important and useful for the state and city officials as well as political leaders. Nirman Bhawan was not a preferred stop when these officials visited Delhi before; it has now become so. And they keep meeting and talking to each other elsewhere about which way the band is going and how they are faring on the ride.

    The programme has completed five years and, at the time of writing, another two years are left. It is generally believed that the programme has contributed to significant investments and improvements to the physical infrastructure of cities. The Planning Commission, as part of the 11th Plan mid-term appraisal, has presented before the National Development Council, at its meeting in July 2010, a candid assessment of the potential of the National Urban Renewal Mission (NURM) and its many shortcomings. The Council has decided to set up a subcommittee of chief ministers to consider several urban issues pertaining to urbanization, reforms in urban governance, challenges in municipal finance and related matters, and recommend policies and programmes for the future. There is also an expectation that as a part of the 12th Plan, the next phase of the JNNURM will be undertaken with a greater emphasis on the Reforms Agenda. It is, therefore, appropriate to take stock of what has happened so far.

    The media has also been taking notice, not just of one project or another, but also of the significant changes in the country in the wake of growing urbanization. Swanky metro lines and glistening airports or, for that matter, the disarray in Delhi witnessed ahead of the Commonwealth games are not the only topics which received edit page attention. The shape and character of India's cities in the future, and the lessons to be learnt from far-off Brazil or the next door neighbour China are also discussed. This is as it should be because the debate on India's urban present and future merit a wider audience.

    Since the scale of the NURM is very large when compared to any previous centrally sponsored programme and as the expectations have been wide-ranging, I have endeavoured to make the review as comprehensive as possible.

    Chapter 1 provides the policy background, describes past efforts to comprehend and deal with growing urbanization, the policy pronouncements and programmes at frequent intervals and how the NURM itself took shape. It also raises a basic question of whether the NURM is a project or a policy response. The coverage and components as well as the project preparation and sanction process are considered in Chapter 2. The state, city and sector-wise allocation and the criteria for allocation of funds among them are also discussed. Chapter 3 looks at the Basic Services for Urban Poor (BSUP) component in the context of the long history of national housing policies pursued by different governments and the strategies to provide shelter for the poor. The additions to the Reforms Agenda arising from the BSUP component are also discussed.

    The NURM and urban mobility are the substance of Chapter 4. While roads and flyovers have been a long-standing staple of urban public works across the country, the shift in attention to mobility of people rather than merely vehicles is recent. Dedicated corridors for buses and increasing the supply of buses were added as components to the NURM as an economic stimulus to the automobile industry. The impact and implications of the initiative are considered in this chapter.

    Chapter 5 catalogues and analyzes the various disconnects and deficiencies which have plagued the NURM since its inception. It also considers the processes and instrumentalities for measuring the progress of the various projects devised as part of the NURM design. The Reforms Agenda, on which the NURM is declared to be contingent, is considered in detail in Chapter 6. Two major items in this agenda, one dealing with district planning and setting up of the District Planning Committees as required in the Constitution as well as the metro dimension and the constitutional prescription for Metropolitan Planning Committees are discussed in Chapters 7 and 8. Some additions to the Reforms Agenda and the recent initiatives taken by the government towards the stated purpose of building up the capacity of urban local bodies are considered in Chapter 9. It appears, as in many other centrally sponsored schemes, the NURM bears the heavy stamp of design by one group of officials in Delhi, partial consultations with another group in the state capitals and a nodding discourse with a few cities.

    The background and mandate of a National Technical Advisory group composed of a few individual experts mark a significant departure from usual government approaches. Whether the group is adding value to the Mission through objective evaluation or whether it is a mere adjunct of the Mission set up is a question as yet unanswered and forms the substance of Chapter 10.

    The Mission mode to describe a government project or programme is a recent coinage. Previously, centrally sponsored schemes were identified only as schemes and, if the government so desired, the name of some leaders or occasions would be added to the descriptions like the Indira gandhi Awas Yojana or the Swarna Jayanti Shahari Rozgar Yojana (SJSRY). Whatever be the label, no mission or scheme can be insulated from the socio-economic and political realities in the country. Chapter 11 amplifies this point, describing the demographic, economic and spatial realities and the issues which still await resolution and significantly determine the substance and course of the NURM. The concluding chapter gathers together the principal thoughts and concerns in this volume and indicates a possible way forward for the Mission.

    Given the nature of the programme, its coverage, the type of projects and the large sums of money involved, it is necessary to anchor this comprehensive review on as much data as available. The tables, therefore, are numerous, which contain essential information to understand better the nature of the Mission. Since it has also been proclaimed that the 74th Constitutional Amendment is the underlying philosophy for the Mission, a copy of that Amendment as well as the Report of the Parliament's Joint Select Committee on the Amendment Bill are contained in Annexures I and II. The other annexures deal with the Prime Minister's speech while launching the NURM and to some important policy notes such as the Rajiv Awas Yojana (RAY).

  • Annexure I: 74th Constitutional Amendment Act, 1992

    Statement of Objects and Reasons appended to the Constitution (Seventy-third Amendment) Bill, 1991 which was enacted as the Constitution (Seventy-fourth Amendment) Act, 1992.

    Statement of Objects and Reasons

    In many States, local bodies have become weak and ineffective on account of a variety of reasons including the failure to hold regular elections, prolonged supersessions and inadequate devolution of powers and functions. As a result, Urban Local Bodies are not able to perform effectively as vibrant democratic units of self-government.

    • Having regard to these inadequacies, it is considered necessary that provisions relating to Urban Local Bodies are incorporated in the Constitution particularly for-
      • putting on a firmer footing the relationship between the State Government and the Urban Local Bodies with respect to-
        • the functions and taxation powers; and
        • arrangements for revenue sharing;
      • Ensuring regular conduct of elections;
      • ensuring timely elections in the case of supersession; and 198
      • providing adequate representation for the weaker sections like Scheduled Castes, Scheduled Tribes and women.
    • Accordingly, it is proposed to add a new part relating to the Urban Local Bodies in the Constitution to provide for-
      • constitution of three types of Municipalities:
        • Nagar Panchayats for areas in transition from a rural area to urban area;
        • Municipal Councils for smaller urban areas;
        • Municipal Corporations for larger urban areas.

          The broad criteria for specifying the said areas is being provided in the proposed Article 243–0;

      • composition of Municipalities, which will be decided by the Legislature of a State, having the following features:
        • persons to be chosen by direct election;
        • representation of Chairpersons of Committees, if any, at ward or other levels in the Municipalities;
        • representation of persons having special knowledge or experience of Municipal Administration in Municipalities (without voting rights);
      • election of Chairpersons of a Municipality in the manner specified in the State law;
      • constitution of Committees at ward level or other level or levels within the territorial area of a Municipality as may be provided in the State law;
      • reservation of seats in every Municipality-
        • for Scheduled Castes and Scheduled Tribes in proportion to their population of which not less than one-third shall be for women;
        • for women which shall not less than one-third of the total number of seats;
        • in favour of backward class of citizens if so provided by the Legislature of the State;
        • for Scheduled Castes, Scheduled Tribes and women in the office of Chairpersons as may be specified in the State law;
      • fixed tenure of 5 years for the Municipality and re-election within six months of end of tenure. If a Municipality is dissolved before expiration of its duration, elections to be held within a period of six months of its dissolution;
      • devolution by the State Legislature of powers and responsibilities upon the Municipalities with respect to preparation of plans for economic development and social justice, and for the implementation of development schemes as may be required to enable them to function as institutions of self-government;
      • levy of taxes and duties by Municipalities, assigning of such taxes and duties to Municipalities by State Governments and for making grants-in-aid by the State to the Municipalities as may be provided in the State law;
      • a Finance Commission to review the finances of the Municipalities and to recommend principles for-
        • determining the taxes which may be assigned to the Municipalities;
        • Sharing of taxes between the State and Municipalities;
        • grants-in-aid to the Municipalities from the Consolidated Fund of the State;
      • audit of accounts of the Municipal Corporations by the Comptroller and Auditor-General of India and laying of reports before the Legislature of the State and the Municipal Corporation concerned;
      • making of law by a State Legislature with respect to elections to the Municipalities to be conducted under the superintendence, direction and control of the chief electoral officer of the State;
      • application of the provisions of the Bill to any Union territory or part thereof with such modifications as may be specified by the President;
      • exempting Scheduled areas referred to in clause (1), and tribal areas referred to in clause (2), of Article 244, from the application of the provisions of the Bill. Extension of provisions of the Bill to such areas may be done by Parliament by law;
      • disqualifications for membership of a Municipality;
      • bar of jurisdiction of Courts in matters relating to elections to the Municipalities.
    • The Bill seeks to achieve the aforesaid objectives.

    NEW DELHI; SHEILA KAUL 11 September 1991

    THE CONSTITUTION (SEVENTY-FOURTH AMENDMENT) ACT, 1992

    [20 April 1993.]

    An Act further to amend the Constitution of India.

    BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:

    • Short title and commencement.-(1) This Act may be called the Constitution (Seventy-fourth Amendment) Act, 1992. (2) It shall come into force on such date_681 as the central government may, by notification in the Official Gazette, appoint.
    • Insertion of new Part IXA.-After Part IX of the Constitution, the following Part shall be inserted, namely:

      PART IXA

      THE MUNICIPALITIES

      243P. Definitions.-In this Part, unless the context otherwise requires,-

      • ‘Committee’ means a Committee constituted under Article 243S;
      • ‘district’ means a district in a State;
      • ‘Metropolitan area’ means an area having a population of ten lakhs or more, comprised in one or more districts and consisting of two or more Municipalities or Panchayats or other contiguous areas, specified by the Governor by public notification to be a Metropolitan area for the purposes of this Part;
      • ‘Municipal area’ means the territorial area of a Municipality as is notified by the Governor;
      • ‘Municipality’ means an institution of self-government constituted under Article 243Q;
      • ‘Panchayat’ means a Panchayat constituted under Article 243B;
      • ‘population’ means the population as ascertained at the last preceding census of which the relevant figures have been published. 243Q. Constitution of Municipalities.-
        • There shall be constituted in every State,-
          • a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area;
          • a Municipal Council for a smaller urban area; and
          • a Municipal Corporation for a larger urban area, in accordance with the provisions of this Part: Provided that a Municipality under this clause may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit, by public notification, specify to be an industrial township.
        • In this article, ‘a transitional area’, ‘a smaller urban area’ or ‘a larger urban area’ means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part. 243R. Composition of Municipalities- (1) Save as provided in clause (2), all the seats in a Municipality shall be filled by persons chosen by direct election from the territorial constituencies in the Municipal area and for this purpose each Municipal area shall be divided into territorial constituencies to be known as wards. (2) The Legislature of a State may, by law, provide-
          • for the representation in a Municipality of-(i) persons having special knowledge or experience in Municipal administration;
            • the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies which comprise wholly or partly the Municipal area;
            • the members of the Council of States and the members of the Legislative Council of the State registered as electors within the Municipal area;
            • the Chairpersons of the Committees constituted under clause (5) of Article 243S: Provided that the persons referred to in paragraph (i) shall not have the right to vote in the meetings of the Municipality;
          • the manner of election of the Chairperson of a Municipality. 243S. Constitution and composition of Wards Committees, etc.
        • There shall be constituted Wards Committees, consisting of one or more wards, within the territorial area of a Municipality having a population of three lakhs or more.
        • The Legislature of a State may, by law, make provision with respect to-
          • the composition and the territorial area of a Wards Committee;
          • the manner in which the seats in a Wards Committee shall be filled.
        • A member of a Municipality representing a ward within the territorial area of the Wards Committee shall be a member of that Committee.
        • Where a Wards Committee consists of-
          • one ward, the member representing that ward in the Municipality; or (b) two or more wards, one of the members representing such wards in the Municipality elected by the members of the Wards Committee, shall be the Chairperson of that Committee.
        • Nothing in this article shall be deemed to prevent the Legislature of a State from making any provision for the constitution of Committees in addition to the Wards Committees.

          243T. Reservation of seats.-

        • Seats shall be reserved for the Scheduled Castes and the Scheduled Tribes in every Municipality and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Municipality as the population of the Scheduled Castes in the Municipal area or of the Scheduled Tribes in the Municipal area bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Municipality.
        • Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes.
        • Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Municipality shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Municipality.
        • The officers of Chairpersons in the Municipalities shall be reserved for the Scheduled Castes, the Scheduled Tribes and women in such manner as the Legislature of a State may, by law, provide.
        • The reservation of seats under clauses (1) and (2) and the reservation of offices of Chairpersons (other than the reservation for women) under clause (4) shall cease to have effect on the expiration of the period specified in Article 334.
        • Nothing in this Part shall prevent the Legislature of a State from making any provision for reservation of seats in any Municipality or offices of Chairpersons in the Municipalities in favour of backward class of citizens.

          243U. Duration of Municipalities, etc.-

        • Every Municipality, unless sooner dissolved under any law for the time being in force, shall continue for five years from the date appointed for its first meeting and no longer: Provided that a Municipality shall be given a reasonable opportunity of being heard before its dissolution.
        • No amendment of any law for the time being in force shall have the effect of causing dissolution of a Municipality at any level, which is functioning immediately before such amendment, till the expiration of its duration specified in clause (1).
        • An election to constitute a Municipality shall be completed,-
          • before the expiry of its duration specified in clause (1);
          • before the expiration of a period of six months from the date of its dissolution: Provided that where the remainder of the period for which the dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any election under this clause for constituting the Municipality for such period.
        • A Municipality constituted upon the dissolution of a Municipality before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Municipality would have continued under clause (1) had it not been so dissolved.

          43V. Disqualifications for membership.-

        • A person shall be disqualified for being chosen as, and for being, a member of a Municipality-
          • if he is so disqualified by or under any law for the time being in force for the purposes of elections to the Legislature of the State concerned: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty-one years;
          • if he is so disqualified by or under any law made by the Legislature of the State.
        • If any question arises as to whether a member of a Municipality has become subject to any of the disqualifications mentioned in clause (1), the question shall be referred for the decision of such authority and in such manner as the Legislature of a State may, by law, provide.

          243W. Powers, authority and responsibilities of Municipalities, etc.-Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow-

          • the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to-
            • the preparation of plans for economic development and social justice;
            • the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule;
          • the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. 243X. Power to impose taxes by, and Funds of, the Municipalities.– The Legislature of a State may, by law,-
          • authorise a Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;
          • assign to a Municipality such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits;
          • provide for making such grants-in-aid to the Municipalities from the Consolidated Fund of the State; and
          • provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Municipalities and also for the withdrawal of such moneys therefrom as may be specified in the law. 243Y. Finance Commission.-
        • The Finance Commission constituted under Article 243-I shall also review the financial position of the Municipalities and make recommendations to the Governor as to-
          • the principles which should govern-
            • the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Municipalities at all levels of their respective shares of such proceeds;
            • the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Municipalities;
            • the grants-in-aid to the Municipalities from the Consolidated Fund of the State;
          • the measures needed to improve the financial position of the Municipalities;
          • any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Municipalities.
        • The Governor shall cause every recommendation made by the Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State.

          243Z. Audit of accounts of Municipalities.-The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Municipalities and the auditing of such accounts.

          243ZA. Elections to the Municipalities.-

        • The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to the Municipalities shall be vested in the State Election Commission referred to in Article 243K.
        • Subject to the provisions of this Constitution, the Legislature of a State may, by law, make provision with respect to all matters relating to, or in connection with, elections to the Municipalities.

          243ZB. Application to Union territories.-The provisions of this Part shall apply to the Union territories and shall, in their application to a Union territory, have effect as if the references to the Governor of a State were references to the Administrator of the Union territory appointed under Article 239 and references to the Legislature or the Legislative Assembly of a State were references in relation to a Union territory having a Legislative Assembly, to that Legislative Assembly:

          Provided that the President may, by public notification, direct that the provisions of this Part shall apply to any Union territory or part thereof subject to such exceptions and modifications as he may specify in the notification.

          243ZC. Part not to apply to certain areas.-

        • Nothing in this Part shall apply to the Scheduled Areas referred to in clause (1), and the tribal areas referred to in clause (2), of Article 244.
        • Nothing in this Part shall be construed to affect the functions and powers of the Darjeeling Gorkha Hill Council constituted under any law for the time being in force for the hill areas of the district of Darjeeling in the State of West Bengal.
        • Notwithstanding anything in this Constitution, Parliament may, by law, extend the provisions of this Part to the Scheduled Areas and the tribal areas referred to in clause (1) subject to such exceptions and modifications as may be specified in such law, and no such law shall be deemed to be an amendment of this Constitution for the purposes of Article 368.
        • 243ZD. Committee for district planning.-
        • There shall be constituted in every State at the district level a District Planning Committee to consolidate the plans prepared by the Panchayats and the Municipalities in the district and to prepare a draft development plan for the district as a whole.
        • The Legislature of a State may, by law, make provision with respect to-
          • the composition of the District Planning Committees;
          • the manner in which the seats in such Committees shall be filled:
          • Provided that not less than four-fifths of the total number of members of such Committee shall be elected by, and from amongst, the elected members of the Panchayat at the district level and of the Municipalities in the district in proportion to the ratio between the population of the rural areas and of the urban areas in the district;
          • the functions relating to district planning which may be assigned to such Committees;
          • the manner in which the Chairpersons of such Committees shall be chosen.
        • Every District Planning Committee shall, in preparing the draft development plan,-
          • have regard to-
            • matters of common interest between the Panchayats and the Municipalities including spatial planning, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation;
            • the extent and type of available resources whether financial or otherwise;
          • consult such institutions and organizations as the Governor may, by order, specify.
        • The Chairperson of every District Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State.
        • 243ZE. Committee for Metropolitan planning.-
        • There shall be constituted in every Metropolitan area a Metropolitan Planning Committee to prepare a draft development plan for the Metropolitan area as a whole. (2) The Legislature of a State may, by law, make provision with respect to-
          • the composition of the Metropolitan Planning Committees;
          • the manner in which the seats in such Committees shall be filled:
          • Provided that not less than two-thirds of the members of such Committee shall be elected by, and from amongst, the elected members of the Municipalities and Chairpersons of the Panchayats in the Metropolitan area in proportion to the ratio between the population of the Municipalities and of the Panchayats in that area;
          • the representation in such Committees of the Government of India and the Government of the State and of such organisations and institutions as may be deemed necessary for carrying out the functions assigned to such Committees;
          • the functions relating to planning and coordination for the Metropolitan area which may be assigned to such Committees;
          • the manner in which the Chairpersons of such Committees shall be chosen.
        • Every Metropolitan Planning Committee shall, in preparing the draft development plan,-
          • have regard to-
            • the plans prepared by the Municipalities and the Panchayats in the Metropolitan area;
            • matters of common interest between the Municipalities and the Panchayats, including co-ordinated spatial planning of the area, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation;
            • the overall objectives and priorities set by the Government of India and the Government of the State;
            • the extent and nature of investments likely to be made in the Metropolitan area by agencies of the Government of India and of the Government of the State and other available resources whether financial or otherwise;
          • consult such institutions and organisations as the Governor may, by order, specify.
        • The Chairperson of every Metropolitan Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State.

          243ZF. Continuance of existing laws and Municipalities.– Notwithstanding anything in this Part, any provision of any law relating to Municipalities in force in a State immediately before the commencement of THE CONSTITUTION (Seventy-fourth Amendment) Act, 1992, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is earlier:

          Provided that all the Municipalities existing immediately before such commencement shall continue till the expiration of their duration, unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of that State or, in the case of a State having a Legislative Council, by each House of the Legislature of that State.

          243ZG. Bar to interference by courts in electoral matters.– Notwithstanding anything in this Constitution,-

        • the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies, made or purporting to be made under Article 243ZA shall not be called in question in any court;
        • no election to any Municipality shall be called in question except by an election petition presented to such authority and in such manner as is provided for by or under any law made by the Legislature of a State.
      • Amendment of Article 280. In clause (3) of Article 280 of the Constitution, sub-clause (c) shall be relettered as sub-clause (d) and before sub-clause (d) as so relettered, the following sub-clause shall be inserted, namely:-
        • ‘the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State;’.
      • Addition of Twelfth Schedule.-After the Eleventh Schedule to the Constitution, the following Schedule shall be added, namely:-

    TWELFTH 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.
    • Slum improvement and upgradation.
    • Urban poverty alleviation.
    • Provision of urban amenities and facilities such as parks, gardens, playgrounds.
    • Promotion of cultural, educational and 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.
    Source: Government of India. 2010. ‘India Code’. Legislative Department, Ministry of Law and Justice, New Delhi. (http://indiacode.nic.in/coiweb/fullact1.asp?tfnm=74), last accessed in September 2010.

    Annexure II: Report of the Joint Committee on the Constitution (Seventy-Third Amendment) Bill, 1991

    1.1 I, the Chairman of the Joint Committee to which the Bill further to amend the Constitution of India viz., the Constitution (Seventy-third Amendment) Bill, 1991 (Insertion of new Part IX-A and addition of XII Schedule) was referred, having been authorized to submit the Report on their behalf, present this Report.

    1.2 The Bill was introduced in the Lok Sabha on 16 September 1991. The motion for reference of the Bill to a Joint Committee of both Houses of Parliament was moved in the Lok Sabha by Smt. Sheila Kaul, Cabinet Minister in the Ministry of Urban Development on 20 December 1991 and was adopted (see Appendix I).

    1.3 The Rajya Sabha concurred in the said motion on 21 December 1991 (see Appendix II)

    1.4 The message from Rajya Sabha was published in Lok Sabha Bulletin Part II on 24 December 1991.

    1.5 The Committee held 13 sittings in all. The first sitting was held on 27 January 1991. At this sitting, the Committee considered their future programme of work and decided to invite memoranda containing comments/suggestions on the provisions of the Constitution (Seventy-third Amendment) Bill, 1991 by 24 February 1992, from the State Governments/Union Territory Administrations, Bar Councils/Bar Associations, Chambers of Commerce and other Organizations, individuals, etc., interested in the subject matter of the Bill for their consideration.

    The Committee further decided that a detailed questionnaire on the subject might be prepared by the Ministry of Urban Development which could be forwarded to these organizations, bodies, individuals, etc., to enable them to submit their Memoranda to the Committee.

    The Committee further decided to hear oral evidence on the provision of the Bill from interested parties and authorized the Chairman to select parties/individuals, etc., for the purpose after receipt of memoranda/questionnaires.

    Accordingly, a Press Communique inviting memoranda and requests for oral evidence was issued on 28 January 1992. The Director-General, All India Radio and the Director-General, Doordarshan, New Delhi were also requested to broadcast the contents of the Press Communique from all stations of All India radio/telecast it from all Doordarshan Kendras on three successive days in English and Hindi and in regional languages.

    1.6 As per decision taken by the Committee, a circular letter inviting memoranda containing comments/suggestions on the provisions of the Bill and requests for oral evidence was also issued to the Chief Secretaries of all the State Governments/Union Territory Administrations, Bar Councils/Associations/Municipal Corporations/Municipal Committees and individuals, etc.

    1.7 At their sitting held on 13 February 1992, the Committee felt that as the Press Communique did not receive wide publicity as anticipated, in the national and regional languages dailies besides Hindi and English might be issued. Accordingly, an advertisement inviting memoranda was given in National dailies by the Ministry of Urban Development.

    The Committee also considered requests received from various Associations/Organizations, individuals, etc., for extension of time for submission of memoranda on the provisions of the Bill. The Committee, accordingly extended the time for submission of memoranda upto 31 March 1992.

    1.8 Forty Memoranda and 36 replies to questionnaire containing comments/suggestions on provisions of the Bill were received by the Committee from various Associations/Organizations, Chambers of Commerce and individuals, etc. (vide list at Appendix III & IV).

    1.9 At their sittings held on 31 March, 8 and 22 April and 6 May 1992, at Delhi, the Committee took oral evidence of 10 local organizations and individuals. A list of persons who gave evidence before the Committee is at Appendix V.

    1.10 The following three Sub-Committees formed by the Committee at their sitting held on 22.4.1992, visited different places in the country from 25 May to 2 June 1992 and held discussions with the officials of the State Govt., representatives of various organizations and individuals:

    Sub-Committee I:Calcutta, Guwahati, Shillong, Patna, Lucknow and Shimla.
    Sub-Committee II:Bhubaneswar, Hyderabad, Madras, Pondicherry, Trivandrum, Cochin and Goa.
    Sub-Committee III:Jaipur, Ahmedabad, Bhopal, Indore, Bombay and Bangalore.

    The Committee also held their sittings on 14 June 1992 at Port Blair and held discussion with the representatives of the government of Andaman and Nicobar.

    1.11 At their sitting held on 19 June 1992, the Committee decided to constitute a Sub-Committee of six members to consider the Chapter in the Report of the Committee on Municipal Finance. The Sub-Committee held their sitting on 25 June 1992 and approved the draft Chapter with slight modifications.

    1.12 The Report of the Committee was to be presented to the House by the last day of the first week of the Budget Session, 1992, 28 February 1992. The Committee were granted one extension for presentation of the Report on 28 February 1992 up to the last day of the first week of the Monsoon Session, 1992, i.e., 10 July 1992.

    1.13 The Committee considered the Bill Clause-by-Clause at their sittings held on 17, 18 and 19 June 1992.

    1.14 The Committee decided at their sitting held on 3rd July 1992 that evidence tendered before them might be printed and laid on the Tables of both the Houses of Parliament.

    The Committee further decided that two sets of memoranda containing comments/suggestions on the provisions of the Bill, received by the Committee might be placed in the Parliament Library, after the report had been presented, for reference by the Members of Parliament.

    1.15 The Committee considered and adopted the Report at their sitting held on 3.7.92.

    1.16 The observations of the Committee with regard to the principal changes proposed in the Bill are detailed in the succeeding paragraphs.

    Article 243P—Definitions

    1.17 The Committee have included in the Bill new Articles 243ZD and 243ZE relating the District Planning Committee and Metropolitan Planning Committee respectively in which terms ‘Metropolitan area’ and ‘Panchayat’ have been used. The definitions of ‘Metropolitan area’ and ‘Panchayat’ have, therefore, been included in this article as clauses (b) and (e) respectively. Further, the definition of ‘Municipal area’ as given in clause (c) has been slightly modified to link it with Article 243Q whereunder the Municipal area for a Nagar Panchayat, a Municipal Council or a Municipal Corporation will be notified by the government of a State. Other clauses in this article have been re-lettered accordingly.

    Article 243R—Composition of Municipalities

    1.18 The Committee feel that the languages of this article should be brought in line with the language of Article 243S and the representation of various persons in a Municipality should be included in one clause. This article has been amended accordingly. The existing clause (1) has been omitted and existing clause (2) has been renumbered as clause (1). Existing clauses (3) to (5) have been clubbed in the new clause (2).

    1.19 The Committee are of the opinion that there should be representation of Members of Parliament and of the State Legislature in municipalities. Sub-clauses (ii) and (iii) have, therefore, been added to new clause (2) to provide for representation of Members of Parliament and of the State Legislature.

    Article 243S—Constitution and Composition of Committees at Ward Level or other Levels

    1.20 There is growing feeling that in the larger municipal bodies the citizens do not have easy access to the elected representatives since the ward-sizes become very large. The Committee therefore is of the view that within the territorial area of Municipalities having a population of three lakhs or more Wards Committees should be constituted. The details relating to the composition and the territorial area of the Wards Committee and the manner of filling seats in such Committees can be left to the State Legislatures. Further, the Committee feel that a member representing a ward in a Municipality, should be a member of the Wards Committee. The Committee are also of the opinion that where a Wards Committee consists of one ward, the member representing that ward in the Municipality should be the Chairperson of the Wards Committee. However, where a Wards Committee consists of two or more wards, one of the members representing such wards in the Municipality should be elected by the members of the Wards Committee to be its Chairperson. The Article 243S has been amended accordingly.

    1.21 The Committee also feel that nothing contained in the provisions of this article should prevent the Legislature of a State from making any provision for the constitution of committees in addition to the Wards Committees. A provision has been made in Article 243S accordingly.

    Article 243T—Application of Certain Articles of Part IX to Municipalities

    1.22 The Committee feel that all the provisions of Part IX relating to Panchayats, which have been made applicable to Part IX-A proposed to be inserted by this Bill should be reproduced in full with suitable modifications. According, Article 243D {except the provisos to clause (4)} of Part IX has been incorporated here as Article 243T.

    1.23 The Committee are of the view that the rotation of reserved seats not be made mandatory and it should be left to the State Governments to rotate such seats. Clauses (1) and (3) of this article have been amended accordingly.

    Article 243U—Duration of Municipalities, etc.

    1.24 The Committee feel that an election to constitute a Municipality should be completed before the expiry of its duration of five years and if dissolved earlier within six months of its dissolution. However, if the Legislature of a State passes a resolution that due to drought, flood, earthquake or any other natural calamity or emergency, the election cannot be held within the said period of six months, the election can be postponed but must be held within a period of one year from the date of dissolution of the Municipality. The Committee also feels that an enabling provision may be made for the State Legislatures to provide by law for suspension or dissolution of a Municipality and where a Municipality is suspended or dissolved, it shall be given a reasonable opportunity of being heard by an authority to be constituted by such law. In case a Municipality is suspended, such suspension should not affect the continuation of the Wards and other Committees constituted under Article 243S. Article 243E of Part IX has accordingly been incorporated as Article 243U with suitable amendments to cover the above aspects.

    Article 243V—Disqualifications for Membership

    1.25 The Committee feel that existing sub-clauses (a) to (d) of clause (1) are covered by the provisions of sub-clause (e) which relates to disqualifications for election to the Legislature of the State. Further, the Committee feel that with the advent of education, the level of awareness amongst people in small towns and cities has gone up and a person of the age of twenty-one years is responsible enough to hold a public office. The Committee are, therefore, of the opinion that all persons who have attained the age of twenty-one years should be eligible for election to the Municipalities. The Committee are also of the view that the disputes relating to disqualification should be referred for the decision of such authority and in such manner as a Legislature of a State may, by law, provide. Article 243F of Part IX has accordingly been incorporated as Article 243V after omitting sub-clauses (a) to (d) of clause (1) and relettering the existing sub-clauses (e) and (f) as sub-clauses (a) and (b). Other modifications have also been made to cover the above mentioned aspects.

    Article 243W—Powers, Authority and Responsibilities of Municipalities, etc.

    1.26 The existing Article 243V has been renumbered as Article 243W without any other changes.

    Article 243X—Power to Impose Taxes by, and Funds of, the Municipalities

    1.27 Article 243H of Part IX has been incorporated as Article 243X with slight Modifications so as to substitute the expression ‘Panchayat’ by the expression ‘Municipality’.

    Article 243Y—Constitution of Finance Commission to Review Financial Position

    1.28 Article 243I of Part IX has been incorporated as Article 243Y. The changes made in this article have been dealt with in details in Chapter II of this report.

    Article 243Z—Form of Accounts of Municipal Corporations and Audit of Such Corporation

    1.29 Existing Article 243U has been renumbered as Article 243Z without any other change.

    Article 243ZA—Powers of Legislature of a State to Make Provisions with Respect to Election to Municipalities

    1.30 The Bill provides that elections to Municipalities are to be conducted under the supervision, direction and control of the Chief Electoral Officer of the State, who is accountable to and a functionary of, the Chief Election Commissioner so far as conduct of elections to Parliament and State Legislatures is concerned. The Committee feel that it should be left to the Legislature of a State to make provisions with respect to all matters relating to the elections to the Municipalities. Article 243K of Part IX has accordingly been modified and incorporated as Article 243ZA.

    Article 243ZB—Application to Union Territories

    1.31 The Committee feel that the provisions of Part IX-A proposed to be inserted by this Bill, should apply to all Union

    Territories and that the enabling power of the President, not to apply the said provisions to any Union Territory, should be omitted. The President should only have the power to apply the said provisions to any Union Territory or Part thereof subject to such exceptions and modifications as he may specify by public notification. Article 243L of Part IX has accordingly been modified and incorporation as Article 243ZB.

    Article 243ZC—Part Not to Apply to Certain Areas

    1.32 The existing Article 243W has been renumbered as Article 243ZC. The Committee feel that the power of Parliament to extend the provisions of Part IX-A proposed to be inserted by this Bill to the Scheduled Areas and the tribal areas should be exercised only if the Legislature of the concerned State passed a resolution to that effect. Clause (2) of this article has been amended accordingly.

    Article 243ZD—Committee for District Planning

    1.33 The planning and allocation of resources at the district level for the Panchayati Raj institutions are normally to be decided at the Zilla Parishad. In regard to urban areas, the municipal bodies discharge certain defined functions within their respective areas. However, some important questions may arise which concern the urban rural interface. There is need to take an overall view in regard to development of the district as a whole and decide on allocation of investment between rural and urban institutions. The Committee therefore feel that there should be a provision for constitution of a District Planning Committee in every State at the district level with a view to consolidating the plans prepared by the Panchayats and the Municipalities in the district as a whole. In order to impart a democratic character to such Committees, not less than four-fifths of the total number of members of these Committees should be elected members of the Panchayat at the District level and of the Municipalities in the district in proportion to the ratio between the population of the rural areas and of the urban areas in the district. The other details relating to composition of the said Committees, the manner of filling the seats therein, the functions relating to district planning to be assigned to such Committees and the manner in which the Chairpersons of such Committees shall be chosen may be left to the State Legislatures keeping in view the local conditions. The District Planning Committee, in preparing the draft development plan, should have regard to matters of common interest between the Panchayats and the Municipalities including spatial planning, sharing of water and physical and natural resources, the integrated development of infrastructure and environmental conservation; the extent and type of available resources whether financial or otherwise. While preparing such draft development plan, the said Committee should also consult such institutions and organization as the State Governments may specify. The Draft Development Plan so prepared shall be forwarded to the State Government concerned by the Chairperson of the Committee. Article 243ZD has been inserted accordingly.

    Article 243ZE—Committee for Metropolitan Planning

    1.34 There are 23 metropolitan cities in the country where the metropolitan area would encompass not only the main city corporation but also a number of other local bodies, both urban and rural surrounding the main city corporation. By the end of the century, this number may be about 45. These metropolitan areas influence the life and economy of the surrounding areas in several ways. To ensure that there is an orderly development of the fringe area, proper plans for these areas need to be drawn up in association with the plan of the main city. Considerable investments in these cities are also undertaken by Central and State Government agencies. It is necessary to coordinate these investment plans with the developmental plans and requirements of the metropolitan city.

    1.35 There is, therefore, need for a suitable planning mechanism which would take care of the interaction between the various local bodies, both rural and urban in such metropolitan areas. At present, the system that is adopted in many metropolises is the creation of a metropolitan development authority. The functions assigned to the metropolitan development authority differ from case to case. In some cases, they are only planning bodies while in some cases they take on executive functions particularly of major schemes. Further, at present, these bodies are not democratic institutions. They are nominated by the Government. While care is taken that there are some representatives on the body from different urban local bodies in the area, the forum is still not a democratic one wherein the opinions of the local bodies in the region can be articulated.

    1.36 The Committee therefore feel that there should be a provision for constitution of a Metropolitan Planning Committee to prepare a draft development plan for the Metropolitan area as a whole. In order to impart democratic character to the said Committees not less than two-thirds of the members of such Committees should be elected by and from amongst, the elected members of the municipalities and Chairpersons of the Panchayats in the metropolitan area in proportion to the ratio between the population of the municipalities and of the Panchayats in that area. The other details relating to composition of the said Committees, the manner of filling the seats therein, the representation in such Committees of Government of India and the Government of the State and other organizations and institutions, the functions relating to planning and coordination for the Metropolitan area to be assigned to such Committees and the manner in which the Chairpersons of such Committees shall be chosen may be left to the State Legislatures. The Metropolitan Planning Committee should, in preparing the draft development plan, have regard to the plans prepared by the Municipalities and the Panchayats in the Metropolitan area, matters of common interest between the Municipalities and the Panchayats including coordinated spatial planning of the area, sharing of water and other physical and natural resources the integrated development of infrastructure and environmental conservation, overall objectives and objectives and priorities set by the Government of India and the Government of the State; the extent and nature of investment likely to be made in the Metropolitan area by agencies of the Government and other available resources whether financial or otherwise. The said Committee should also consult such institutions and organizations as the State Government may specify. The draft development plan so prepared shall be forwarded to the State Government concerned by the Chairperson of the said Committee. Article 243ZE has been inserted accordingly.

    Article 243ZF—Continuance of Existing Laws and Municipalities

    1.37 Article 243N of Part IX has been incorporated here as article 243ZF with slight Modifications so as to change the reference to the ‘Constitution (Seventy-second Amendment) Act, 1992’ to ‘Constitution (Seventy-third Amendment) Act, 1992.’

    Article 243ZG—Bar to Interference by Courts in Electoral Matters

    1.38 Article 243-O of Part IX has been incorporated here as Article 243ZG with slight modification to change the reference to Article ‘243K’ to Article ‘243ZA’.

    Clause 3

    1.39 The Committee feel that amendment should be made in Article 280 relating to Constitution of Central Finance Commission so that the said Commission should make recommendations to the President as to the measures needed to augment the consolidated fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the State Finance Commission of the State. Clauses 3 has accordingly been inserted in the Bill. The need for this amendment has been explained further in detail in Chapter II of this Report.

    Clause 4

    1.40 The existing Clause 3 has been renumbered as Clause 4. The Committee feel that the Twelfth Schedule proposed to be inserted by Clause 4 should also cover subjects relating to protection of the environment; public amenities including street lighting, parking lots, bus stops and public conveniences, regulation of slaughter houses and tanneries. Item 8 of the Twelfth Schedule has been amended accordingly and new items 17 & 18 have been inserted in the said Schedule.

    Clause 1 and Enacting Formula

    1.41 The amendments made are of formal character.

    ∗ Published in the Gazette of India, Extraordinary, Part II, Section 2, dated the 16 September 1991.

    Annexure III: Prime Minister's Speech on JNNURM, 3 December 2005, New Delhi

    I welcome you all to the launch of the Jawaharlal Nehru National Urban Renewal Mission. There is no doubt that India by and large still lives in our villages. But the development process of the past five decades has made a significant difference. An increasing share of our population now lives in urban India. Urbanisation is a relentless process, which has come to stay and has to be factored into all our developmental thinking and development processes. We have already added 65 million persons to our urban population in the decade of the ′90s alone. We are poised to have nearly fifty per cent of India living in our cities by the earlier part of the present century and that should give you an idea of the magnitude of the development and renewal task that awaits all of us.

    With urbanization comes the need to invest in infrastructure and improve the quality of life in our cities. Rapid urbanization has not only outpaced infrastructure development, but has also brought in its train a terrible downside—the downside of proliferating slums, the downside of increasing homelessness, the downside of growing urban poverty and crime, of relentless march of pollution and ecological damage. This gives you an idea of the massive challenge that lies ahead.

    Recognising this challenge of an acute urban crisis, the National Common Minimum Programme had stressed that the government initiate a process of urban renewal. I am happy that today we are commencing this new effort through the launch of the Jawaharlal Nehru National Urban Renewal Mission.

    I compliment the Ministries of Urban Development, Urban Employment and Poverty Alleviation, Planning Commission, state governments, urban local bodies and other experts who have participated in the preparation of this Mission. This Mission is the single largest initiative of the Government of India for a planned development of our cities. It responds to the long-standing demand for tapping the vast potential and vitality of our cities.

    Our urban economy has become an important driver of economic growth. It is also the bridge between the domestic economy and the global economy. It is a bridge we must strengthen. The latent creativity and vitality of our cities and the people who live in them must be tapped to facilitate higher economic growth.

    It is therefore, a matter of great satisfaction for all of us that this new Mission is being named after Jawaharlal Nehru. Panditji used to refer to factories as the temples of modern India. He saw in industrialization a renewed hope for urban India. The infrastructure created by Panditji has helped the process of industrialization enormously. However, our cities have not been able to cope with the pressures of industrial development and the growth of the services economy. In many cities like Bangalore, the phenomenal growth of the services sector in the last decade has exerted unexpected pressure on urban infrastructure and services. If we do not take remedial steps, the future could be in jeopardy.

    As we build infrastructure we must also improve the quality of living for all those who live in our cities. Our vision of urban development has so far been unidimensional. This must change. We have thus far focused more on space and less on people. We need to have an integrated framework, in which spatial development of cities goes hand-in-hand with improvement in the quality of living of ordinary people living there. An important element of our strategy has to be slum improvement and providing housing for the poor.

    To improve urban infrastructure and provide urban services for the poor, we need urgently urban governance reform. I am happy that this Mission has been structured with a clear focus on these two important components—urban infrastructure and basic services to the urban poor, with governance reform as an overarching third component.

    Governance reform should be seen as a massive catalyst for change. Shri Rajiv Gandhi had conceived, with great foresight, the 74th Constitution Amendment for decentralization of power to the urban local bodies. While considerable ground has been covered under the 73rd Amendment relating to Panchayats, an honest assessment would show that the 74th Amendment has not yet been effectively translated into improved urban governance.

    Cities unfortunately with some exceptions, have not been enabled to look inward and build on their inherent capacities, both financial and technical, and instead are still being seen in many states as ‘wards’ of the State governments. This should and this must change.

    The Jawaharlal Nehru National Urban Renewal Mission is a city-based programme. It will seek to build the capacity of our cities for management. Cities have the financial muscle and the technical resources to rebuild themselves. We see the governance reform-related proposal in the Mission for a participation law and a disclosure law, as enabling the cities to locate the needed human and financial resources for improving its services. This is a major reform for the governance of our cities.

    To tap technical resources, the Mission envisages the creation of a Voluntary Technical Corps in each city. I place great hope on this effort, as I am personally aware that a large number of urban professionals today want to contribute their skills for the improvement of their cities. Many cities like Bangalore, Mumbai, Thiruvananthapuram have come up with citizen initiatives for urban renewal. This process would be strengthened through the creation of Voluntary Technical Corps for each of our city.

    A major failure of city governance has been our inability to address the needs of the poor—basic services like drinking water supply, sanitation, housing and social services are not available to an increasing share of urban population. Countries in Latin America that have large cities in which more than 50 per cent of the population lives, have addressed this problem through an effective system of property rights. Options like giving the urban poor land rights at affordable rates may see an increase in private investment. This in itself will improve the quality of living in our cities. We have to make the poor increasingly bankable. Property rights can be used as a collateral for financing new investment in support of social development. Cities need people to provide services and our people need a decent place to live.

    Cities need to develop a long-term planning framework. The Planning Commission and the Ministries, in consultation with States, have developed an agenda of reform to persuade urban local bodies to look ahead. All previous efforts in city planning have been limited by ‘a narrow-focused project approach’. The problems of inadequate service and infrastructure levels, of inadequate investment in them, and the non-availability of adequate land and housing are much deeper. Our legal systems, our systems of work and procedures, and the inability of local bodies to effectively use their powers and responsibilities, make it difficult to deal with the many problems facing our cities.

    The Jawaharlal Nehru National Urban Renewal Mission addresses the problems of law, systems and procedures reform and aims to align them to the contemporary needs of our cities and towns. The Mission seeks to do away with those statutes that inhibit the functioning of land and housing markets; it seeks to bring in those improvements that will enable the city-level institutions to become financially strong and viable and our development programmes relating to the removal of poverty becoming increasingly bankable.

    As you are well aware, municipal finance is in an extremely unsatisfactory state. This is on account of an inability to properly tap and utilize proceeds from property tax, due to the inadequacies of the property valuation system and inefficiencies in tax collection systems. Municipal governments are not able to recover the cost they incur in providing different services. They use accounting systems, which do not correctly reflect their financial position and therefore their projects do not become bankable and viable.

    This Urban Renewal Mission is designed to assist city governments in improving property tax collection and bring user charge to the levels that cover at least operating and maintenance costs and change their accounting methods. The Mission is meant to bring in transparency in local budget making, as also a higher degree of community participation in decision-making processes.

    The success of the Mission will depend on its ability to enlist the support of a large number of partners and stakeholders. There is no shortage of finance in the infrastructure sector, especially if we seek public–private partnerships. I hope our State and local Government authorities will be able to draw up programmes that can attract financial support from outside Government as well.

    Services like education, health care and social security, like the public distribution system and old-age pension are inadequately provided to the urban poor. While designated agencies exist in rural India to address these issues, urban local bodies have not oriented themselves to ensuring that these universal services reach the urban poor.

    I urge the Ministry of Urban Employment and Poverty Alleviation to work to ensure that basic services are indeed provided to the urban poor. The issues to focus while appraising project reports are: (i) security of tenure, (ii) improved housing, (iii) drinking water supply, (iv) sanitation, (v) education, (vi) health care and (vii) social security. City governments should build in a strong component of support for urban basic services in their plans for infrastructure upgradation.

    The Mission has to walk on two legs of improved urban infrastructure and improved urban basic services. The role of governance reform in the Mission should be to catalyze a process that enables both these to move forward.

    I am happy that among the list of cities being covered initially, there are some that are important from the point of view of our national heritage, tourism potential and religious pilgrimage. I have in mind cities like Varanasi, Amritsar, Haridwar, Ujjain and many others. It would be a challenge before this Mission to see that these cities are restored to their historical glory. Let us not forget that in the history of the world, Indians stood out as city builders as evident from the traditions we carry from the ancient civilisations of Harappa and Mohenjodaro. Those cities were symbols of human engineering excellence in their own times. We should work to make them come alive again through this Mission.

    I have great pleasure in launching this Mission. Like many Indians living in our cities, I look forward to it with great hope.

    Source: Prime Minister's speech at the launch of JNNURM. December 3 2005. New Delhi (http://pmindia.nic.in/speech/content.asp?id=235), last accessed in September 2010.

    Annexure IV: President's Speech to the Parliament, 4 June 2009, New Delhi

    From Paragraphs

    Honourable Members,

    1. I am extremely happy to address the first session of both Houses of Parliament after the elections to the 15th Lok Sabha. My greetings to all members, especially the newly elected members of the Lok Sabha. They are here having spent the last few months in the scorching heat trying to persuade their voters on how they could best represent the aspirations of their electorate. They now have the mandate and the opportunity to translate the hopes and aspirations of the people of India into change in the everyday lives of the people. It is indeed a unique privilege given to a chosen few to represent the hopes of over a billion people, a sixth of humanity.

    6. In 2004 my Government had set before the country a vision of an inclusive society and an inclusive economy. It worked diligently towards translating this vision into policies and programmes. My Government sees the overwhelming mandate it has received as a vindication of the policy architecture of inclusion that it put in place. It is a mandate for inclusive growth, equitable development and a secular and plural India. My Government is determined to work harder and better to realize these goals.

    8. My Government is acutely conscious of the challenge of rising expectations. There would be ten broad areas of priority for my Government for the next five years.

    • Internal security and preservation of communal harmony;
    • Stepping up of economic growth in agriculture, manufacturing and services;
    • Consolidation of the existing flagship programmes for employment, education, health, rural infrastructure, urban renewal and introduction of new flagship programmes for food security and skill development;
    • Concerted action for the welfare of women, youth, children, other backward classes, scheduled castes, scheduled tribes, minorities, the differently-abled and the elderly along with strengthened social protection;
    • Governance reform;
    • Creation and modernization of infrastructure and capacity addition in key sectors;
    • Prudent fiscal management;
    • Energy security and environment protection;
    • Constructive and creative engagement with the world and
    • Promotion of a culture of enterprise and innovation.

    22. My Government launched Bharat Nirman five years ago as a time-bound business plan for rural infrastructure. It has succeeded in reaching basic infrastructure of roads, electricity and telephone to a large number of villages. It has also achieved most of the targets of rural water supply, rural housing and has increased irrigation potential. The remaining tasks will be completed in the second phase of Bharat Nirman. It is also proposed to set enhanced targets for Bharat Nirman in the second phase.

    • The Indira Awas Yojana, which exceeded the original target of sixty lakh houses for the period 2004–2009, will now take up double the target of rural housing to one crore twenty lakh houses to be completed in the next five years.
    • Rural Water supply programme will be completed by 2011 and handed over to be managed by panchayats in the next Plan.
    • The rural telecommunication target will be set at reaching 40 per cent rural teledensity in the next five years and expanding broadband coverage to connect every panchayat to a broadband network in three years. The scheme for Common Service Centres or e-kiosks will be suitably repositioned to be a network of panchayat-level Bharat Nirman Common Service Centres to provide government services to citizens in rural areas.
    • New targets would be set for rural electrification, irrigation and road connectivity.

    23. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) with approval of projects of nearly Rs. 50,000 crore in the last four years is reshaping our cities and has been widely welcomed. It will continue to focus on infrastructure, basic services and governance reform and increase support to cities to upgrade public transport. Over 15 lakh houses are under construction for the urban poor. There is a need to focus urban housing programmes on the poor living in slums. My Government proposes to introduce a Rajiv Awas Yojana for the slum dwellers and the urban poor on the lines of the Indira Awas Yojana for the rural poor. The schemes for affordable housing through partnership and the scheme for interest subsidy for urban housing would be dovetailed into the Rajiv Awas Yojana which would extend support under JNNURM to States that are willing to assign property rights to people living in slum areas. My Government's effort would be to create a slum-free India in five years through the Rajiv Awas Yojana.(Emphasis Added).

    32. My Government will initiate steps within the next hundred days on the following measures:

    • Constitutional amendment to provide 50 per cent reservation for women in panchayats and urban local bodies. Women suffer multiple deprivations of class, caste and gender and enhancing reservation in panchayats and urban local bodies will lead to more women entering the public sphere.
    • Strengthening public accountability of flagship programmes by the creation of an Independent Evaluation Office at an arm's distance from the government catalyzed by the Planning Commission. It would work on a network model by collaborating with leading social science research organizations and concurrently evaluate the impact of flagship programmes and place it in the public domain.
    • Facilitating a Voluntary Technical Corps of professionals in all urban areas through JNNURM to support city development activities.

    33. Infrastructure is a fundamental enabler for a modern economy and infrastructure development will be a key focus area for the next five years. Public investment in infrastructure is of paramount importance. Bottlenecks and delays in implementation of infrastructure projects because of policies and procedures, especially in railways, power, highways, ports, airports and rural telecom will be systematically removed. Public–private partnership (PPP) projects are a key element of the strategy. A large number of PPP projects in different areas currently awaiting government approval would be cleared expeditiously. The regulatory and legal framework for PPPs would be made more investment friendly. My Government will continue its special emphasis on infrastructure development in the North-East and Jammu and Kashmir and enhance connectivity to these regions.

    Source: Address by the Hon'ble President of India, Shrimati Pratibha Devisingh Patil, to Parliament, New Delhi, 4 June 2009 (http://presidentofindia.nic.in/sp040609.html), last accessed in September 2010.

    Annexure V: Draft of Tripartite Memorandum of Agreement

    IV. Draft Memorandum of Agreement (MoA)

    Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

    Draft Memorandum of Agreement (MoA)

    Between

    The Ministry of Urban Development

    or

    The Ministry of Urban Employment and Poverty

    Alleviation

    (Government of India)

    and

    The Government of _

    and

    The Municipal Corporation of _

    Parastatal Agency

    Dated _

    THIS AGREEMENT is made on this _ day of _, 200_ between the Government of India, through the Ministry of Urban Development or the Ministry of Urban Employment and Poverty Alleviation, of the Part I

    AND

    The State Government of [mention the name of the State], through its Governor, of the Part II

    AND

    The Municipal Corporation of [mention the name of municipal corporation or the parastatal agency] through its authorized person, of the Part III.

    WHEREAS the Part III seeks financial assistance from the Part I under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM);

    WHEREAS the Part III, in pursuance of the requirements for assistance has developed a City Development Plan (CDP), fully detailed in Annexure 1;

    AND WHEREAS the Part III has formulated a detailed project report in respect of _, with details on its feasibility, fully detailed in Annexure II;

    AND WHEREAS the Part II and Part III have undertaken to implement the reform agenda, as per the timeline indicated therein, fully detailed in Annexure III and IV;

    AND WHEREAS the Part I has considered the documents mentioned in Annexure I, II, III, and IV and found them consistent with the goals and objectives of JNNURM;

    AND WHEREAS the Part I agrees to release a grant of Rs. _ /- over a period of _ years, in accordance with the terms and conditions specified in this agreement.

    NOW THE PARTIES WITNESSED as follows:

    • That the Part I shall release the first instalment of Rs. ………… /- upon signing of the Memorandum of Agreement (MOA) and submission of the above mentioned documents i.e., Annexure I, II, III and IV.
    • That the Part I may release the second instalment of Rs. ………… /- upon submission of a satisfactory Progress Report indicating -
      • _
      • _
      • _
    • That the Part I may release the third instalment of Rs. ………… /- upon submission of a satisfactory Progress Report indicating -
      • _
      • _
      • _
    • That the Part I may release the final instalment of Rs. _ /- upon submission of a satisfactory Progress Report indicating -
      • _
      • _
      • _
    • That the Part I or an Institution nominated by it, may undertake a site visit to ascertain the progress of the ongoing projects and also the reforms agenda through designated representatives periodically.
    • That apart from the Progress Report, the Part III shall submit a Quarterly Report of the spendings of the grant to the Part I. In case Part III fails to submit such a report further instalment of grant may be withheld until such submission.
    • Similarly, the Part II shall submit a Half-yearly Report of the progress in respect of the implementation of the reform agenda as detailed out in Annexure III.
    • That Part II and Part III shall submit a complete report regarding the outcome of the JNNURM on the completion of the project.
    • That the Parties to the agreement further covenant that in case of a dispute between the parties the matter will be resolved to arbitration within the provisions of the Arbitration and Conciliation Act, 1996 and the rules framed thereunder and amended from time to time. The matter in dispute shall be referred to _ [Insert a name of an arbitrator] as arbitrator, however, in case such person refuses to act as arbitrator, or is rendered, unable because of sickness or otherwise, or dies, _ [name of the second person for arbitrator] shall act as arbitrator between the parties and the dispute shall be referred to such person and still in case this second person is not available for any reason to act as arbitrator between the parties, both parties shall name one person of their choice as arbitrator and decision of such arbitration shall be final and binding on the parties.
    • That in case there is any delay in the implementation of the reforms agenda or submission of any periodic reports, etc. at the State level by the Part II or Urban Local Body or Parastatal level by the Part III, due to the circumstances beyond the control of Part II or Part III i.e., Force Majeure or any other reason, the decision on the matter of extension of time for the implementation of the goals and objectives of the JNNURM shall be at the discretion of Part I.
    • That in case of any breach regarding the terms and conditions of the JNNURM, the Part I shall be entitled to withhold subsequent instalments of the grant on giving 30 days notice to the Part II or the Part III. However, in this regard decision taken by the Part I shall be final and binding on the Part II or the Part III, though, before making such orders, opportunity of hearing shall be given to the Part II or the Part III.

    IN WITNESS HEREOF all the parties have put their hands on these presents of Memorandum of Agreement in the presence of witnesses.

    WITNESSES:

    1. _ Ministry of Urban Development

    2. _ Or

    Ministry of Urban Employment and Poverty

    Alleviation

    (Government of India) (Part I)

    The Government of _ (Part II)

    Municipal Corporation of _

    Or

    Parastatal Agency _ (Part III)

    Annexure VI: Rajiv Awas Yojana—Guidelines for Slum-Free City Planning, Ministry of Housing and Urban Poverty Alleviation, Government of India

    1. Rajiv Awas Yojana: Objectives

    Rajiv Awas Yojana (RAY) for the slum dwellers and the urban poor envisages a ‘Slum-free India’ through encouraging States/Union Territories to tackle the problem of slums in a definitive manner. It calls for a multi-pronged approach focusing on:

    • Bringing existing slums within the formal system and enabling them to avail of the same level of basic amenities as the rest of the town.
    • Redressing the failures of the formal system that lie behind the creation of slums; and tackling the shortages of urban land and housing that keep shelter out of reach of the urban poor and force them to resort to extra-legal solutions in a bid to retain their sources of livelihood and employment.

    An outline of the broad policy issues that need to be addressed by States/UTs under RAY is provided in Annexure I.

    2. Central Support: Pre-Conditions
    • As in JNNURM, the goals of RAY will be driven and incentivised by the provision of central support for slum redevelopment and construction of affordable housing conditional to a set of reforms necessary for urban development to become inclusive. Annexure II describes the admissible and inadmissible components currently envisaged under RAY.
    • As regards reforms under RAY, security of tenure through entitlement will be critical for the overarching aim of promoting inclusive cities. Accordingly, Central Assistance under RAY will be predicated on the condition that States/UTs assign legal title to slum-dwellers over their dwelling space. The other reforms include the continuation of the three pro-poor reforms of JNNURM till they are legislated and internalized as part of the system; legislation for property rights to all slum dwellers; reform to the rental and rent control laws regarding urban housing; and review and amendment to the legislations, rules and regulations governing urban planning and development structures and systems towards an adequate response to the demands, process and pace of urbanization. The three pro-poor reforms under JNNURM are reiterated as follows:
      • Internal earmarking within local body budgets for basic services to the urban poor;
      • Provision of basic services to urban poor including security of tenure at affordable prices, improved housing, water supply, sanitation and ensuring delivery of other already existing universal services of the government for education, health and social security; and
      • Earmarking at least 20–25 per cent of developed land in all housing projects (both public and private agencies) for EWS/LIG category with a system of cross-subsidization.
    3. State Slum-Free Plan of Action (POA)
    • Rajiv Awas Yojana envisages that each State would prepare a State Slum-free Plan of Action (POA). The preparation of legislation for assignment of property rights to slum dwellers would be the first step for State POA. The POA would need to be in two parts, Part 1 regarding the upgradation of existing slums and Part 2 regarding the action to prevent new slums. In Part 1 the State would need to survey and map all exiting slums in selected cities proposed by the State for coverage under RAY. In Part 2 the Plan would need to assess the rate of growth of the city with a 20 year perspective, and based on the numbers specify the actions proposed to be taken to obtain commensurate lands or virtual lands and promote the construction of affordable EWS houses so as to stay abreast of the demand. This part would need also to make necessary legislative and administrative changes to enable urban land expansion, and in town planning regulations to legislate reservations for EWS/LIG housing in all new developments. Annexure III indicates the broad outline of a State Slum-free Plan of Action (POA).
    • The State POA would include the cities identified by the State and intended to be covered under RAY in five years, and their phasing. It will commit to a ‘whole city’ approach, so that an integrated and holistic plan is prepared for the upgradation of all existing slums, notified or non-notified, in each identified city. Within a city, in each slum taken up for redevelopment, a holistic coverage would be required, with provision of all basic civic infrastructure and services as well as decent housing, with emphasis on planned layouts (after reconfiguration of plots based on existing/modified building by-laws wherever necessary) and on total sanitation (by provision of individual toilets and water supply to each household). With regard to housing, the State may adopt a flexible approach as to the manner of construction and arrangement of funds for construction, to follow a beneficiary-built housing model with design and technical support from the Municipality/State, or to construct housing through state parastatal or private partners or by delineating a mix of methods. The POA would be expected to give primacy to a Public Private-Partnership–model that would enable it to cross-subsidize through FSI and land use concessions as much of the slum redevelopment as possible. The POA would be required to describe the model proposed to be followed in each slum, the efforts for obtaining the community's participation and the financial strategy for holistic development along with timelines.
    • The State POA will include Slum-free City Plans of Action for the cities identified for inclusion under RAY. While the City POA has to be developed for each city included under RAY as a whole, the pace of slum upgradation within the city can be phased out. For the purpose of phasing, each city may be divided into zones and each zone be taken up as a whole to ensure the universal provision of basic infrastructure and services and decent housing in all slums in the zone, and to attain slum-freeness. A city-wide/zone-based approach would enable shifting untenable slums to the nearest possible available vacant land or notified slum which has the space to receive them.
    • States would be required to forward the Slum-free City Plans of Action (POA) to the Centre for clearance along with the bill for assignment of property rights cleared by the State Cabinet and the commitment of the Government as to the session of the State Assembly before which it will be placed. In considering the POA, the Centre would particularly assess that the cities have been chosen to maximize cross-subsidization, that the extent of commitment for cross-subsidization through PPP has been fully explored; and that the mechanisms for community participation have been clearly delineated and activated.
    4. Slum-Free City Planning: Methodology
    4.1 Conceptual Framework

    Slum-free City Cell in Urban Local Body headed by the Municipal Commissioner/Executive Officer will be primarily responsible for the preparation of Slum-free City Plans based on guidelines provided by the concerned State Government and support extended by the Nodal Agency for Rajiv Awas Yojana at the State level. The diagram in the next page provides a conceptual framework for the preparation of Slum-free City Plan.

    4.2 Planning Methodology

    The preparation of Slum-free City Plan will broadly involve Slum Redevelopment/Rehabilitation Plans based on (a) survey of all slums—notified and non-notified; (b) mapping of slums using the state-of-art technology; (c) integration of geo-spatial and socio-economic data; and (d) identification of development model proposed for each slum. Base maps to an appropriate scale would be a pre-requisite for the preparation of Slum Redevelopment Plan/Slum-free City Plan. States/UTs may need to proceed in the following steps for the preparation of Slum-free City Plans.

    • Securing CARTOSAT II/latest satellite images from NRSC/ISRO and preparation of base maps for the whole city and its fringes using the images;
    • Identification and inventory of all slum clusters of all descriptions in the urban agglomeration with the help of satellite image and other available data;
    • Inventory of all possible vacant lands in each zone of the urban agglomeration that could be used for slum redevelopment/rehabilitation development purposes;
    • Development of Slum Map of every slum within the city and its fringes;
    • Identification and engagement of Lead NGO/CBO to guide and anchor community mobilization for the purpose of slum survey, (may be more than one NGO/CBO in different slum zones) of the city. These Lead NGOs/CBOs should also be associated in slum survey operations and dialogues for preparation of slum level redevelopment plans;
    • Conduct of Slum Survey based on the detailed formats (with or without changes) prepared by the Ministry of Housing & Urban Poverty Alleviation with the help of National Buildings Organization (NBO)—after due training of trainers, training of survey personnel/canvassers and canvassing. It would be helpful for community mobilization to pick as canvassers from the sourced slum or nearby slum pockets;
    • Collection of bio-metric identification data of slum dwellers based on the above survey (subject to guidelines issued by Unique Identity Authority of India (UIDAI);
    • Entry of data from Slum Surveys in the web-enabled MIS application (to be provided by Ministry of HUPA), compilation and collation of data, preparation of Slum-wise, City and State Slum Survey Database and Baseline Reports. The MIS will assist in developing a robust Slum and Slum Households Information System. (Guidelines and software for development of the MIS will be issued by the Ministry of HUPA);
    • Integration of Slum MIS with GIS Maps to enable the preparation of GIS-enabled Slum Information System that is to be used for the preparation of meaningful Slum Development Plans and Slum-free City Plan using a city-wide/zone-based approach. (Guidelines and software for development of GIS platform and its integration with the MIS will be issued by the Ministry of HUPA);
    • For each slum identified, Slum Redevelopment Plan to be decided based on models like PPP development, infrastructure provision only, community-based development through Rajiv Awas Housing Societies, etc. This decision-making should necessarily be done with the involvement of the community after community mobilization and dialogue for deciding the model to be adopted. Each slum redevelopment plan should have the timeline against each of the activities; and
    • Preparation of Slum-free City Plan should be based on the development plans for all slums and strategies for the prevention of future slums, including reservation of land and housing for the urban poor. The Plan should contain timeline of activities for achieving slum-free city, phasing information and financial estimates against each of the activities.

    Diagram Methodology for Preparation of Slum-free City Plan: Conceptual Framework

    4.3 Slum-free City Planning Team (State Government/ULB)

    It is suggested that the State needs to first establish a Slum-free City/Technical Cell at the State Nodal Agency level and in each city identified for the preparation of Slum-free City Plan. At the State level, the Secretary dealing with JNNURM/RAY will head the Slum-free City/Technical Cell, coordinated by the State Nodal Officer for RAY. The composition of the Cell will be decided by the State Government. At the city level, the Municipal Commissioner or Executive Officer of the Urban Local Body, assisted by the Additional/Deputy Commissioner/Officer in charge of Slums/Urban Community Development/Planning, will head the Slum-free City Cell, which will include the chiefs of all municipal departments. Each city included under RAY must be enabled to have a competent Slum-free City Planning/Technical Team which can undertake procurement and coordinate with various agencies such as: National Remote Sensing Centre (NRSC)/Indian Space Research Organization (ISRO) and other Technical Agencies

    5. Government of India's Support

    The activities for which the Centre intends to lend support towards the preparation of Slum-free City Plans to States/UTs would include:

    5.1 Financial Support
    • Conducting Slum Surveys in cities based on the detailed formats worked out by the Ministry of Housing & Urban Poverty Alleviation with the help of National Buildings Organization (NBO), including training of trainers, undertaking training, canvassing and surveying for city-state MIS;
    • Entry of data from Slum Surveys into MIS database, compilation and collation of data in MIS to aid preparation of City Slum-free Plans of Action;
    • Development of City and Slum Base Maps using GIS;
    • Engagement of consultants/technical agencies/institutions for the preparation of detailed Slum-free City Plans;
    • Engagement of Lead NGOs/CBOs to guide and anchor community mobilization for Slum-free City;
    • Carrying out biometric identification survey of slum-dwellers and hardware for the storage of bio-metric information (excluding issue of biometric identity cards to the slum dwellers)—duly taking into account the imperatives of the Unique Identity Card initiative; and
    • Training programmes in Slum MIS/GIS, Slum Mapping, Slum Development/Slum-free City and Slum-free State Planning, Project Management, Pro-poor Reforms etc., with the involvement of National Technical Institutions and National Network of Resource Centres.
    6. Other Modalities of Scheme
    • The Slum-free City Planning scheme will be implemented under the guidance of a National Steering Committee under the chairpersonship of Secretary (HUPA)—composition at Annexure V. This Committee will steer and monitor the entire process of preparation of Slum-free City Plans by States/UTs in a time-bound manner. A Technical Committee (composition at Annexure VI) will guide the States/UTs through the formulation of operational guidelines in technical, costing, procurement of hardware/software, planning and other aspects and will assist the National Steering Committee.
    • States/UTs will be required to send Detailed Proposals seeking support under the Slum-free City Planning—Rajiv Awas Yojana scheme which will be considered by the Central Sanctioning & Monitoring Committee for JNNURM/RAY. Following the sanctions, funds will be released by the Ministry of Finance/Housing & Urban Poverty Alleviation.
    • The National Steering Committee for Slum-free City Planning–Rajiv Awas Yojana will monitor the financial and physical progress under the scheme.
    Annexure I

    Slum-free India Vision: Some Key Policy Issues to be Addressed on Priority

    WUrban Planning:

    City master plans follow an exclusionary model that reserves land for housing for high and middle income groups, commercial, institutional, recreational and other uses, with no earmarking for Economically Weaker Sections and Low Income Groups.

    These plans are not in consonance with the income distribution structure of cities and towns. The norms of planning including density and development controls favour the comparatively better off sections. These factors, coupled with sky-rocketing urban land prices, have squeezed the urban poor out of formal urban land markets. Slums are an inevitable outcome of this deficiency in urban policy and planning. It is necessary that the master plans make provision for EWS/LIG categories by treating them as distinct segments for the purpose of land use and urban planning. There is also a need for ‘small lot zoning’ in layouts for housing approved by city authorities, creating EWS and LIG plots along with MIG and HIG. The population density norms also require a re-look, not only to rationalize them across cities, but, in understanding of the basic tenet that the poor are deprived of housing where land values are high, to enable better utilisation of valuable land by building vertically on it. It is necessary to catalyze and assist the review of these issues with capacity building and expertise.

    Land:

    Cost of land is a very significant component of the cost of housing. Not only the master plans but also state, development authority and urban local body policies in the past have made no provision for ensuring adequate supply of serviced land towards housing the EWS and LIG segments. In fact, some states and urban development authorities have resorted to auction of the limited land available with them in cities, setting exorbitant benchmarks for the market price of land. There is need for a well-defined policy for allocation of land to EWS and LIG segments to compensate for the ‘historic lack of earmarked space’ for them in the formal master plans. There is also need to continue, till completion and internalization into practice, the reform of JNNURM for reservation of 20–25 per cent of developed land in all new housing colonies for EWS/LIG housing. In respect of slum areas, and in line with the practice followed globally in upgrading slums, the occupied land or a part thereof should be allocated to the slum dwellers to enable them to have access to housing and basic amenities. Both reforms need to be pursued.

    Housing and Infrastructure:

    Affordable housing and provision of basic infrastructure in urban areas, especially slums, would generally require the intermediation of civil society, government and private entities that can engage the community, undertake planning, reconfigure slums to enable cost-effective provision of infrastructure facilities and construct group housing colonies.

    Given the massive needs for affordable housing and the capacity constraints faced by public agencies like housing boards, urban development authorities and municipalities to take up group housing on a large scale, it is necessary to involve private sector entities in the creation of affordable housing stock on ownership, rental or rental-cum-ownership basis and in scaling up the programme to the desired scale. There is also a need for resource mobilization and earmarking of resources by public agencies to meet the cost of affordable housing, civic infrastructure and services for the urban poor where the private sector participation is not possible.

    Financing:

    Banks and other financial institutions are reluctant to lend to the EWS/LIG segments for affordable housing in view of perceived credit risks, these categories having no credit history and due to difficulties of foreclosure of loans. There is need for credit enhancement through appropriate fiscal, legal and institutional mechanisms, including intermediation of public and private housing agencies to ensure the flow of capital for this priority programme.

    Annexure III
    Rajiv Awas Yojana: State Plan of Action
    • The State Slum-Free Plan of Action would need the State to prepare legislation for the assignment of property rights to slum dwellers/urban poor as the first step. The State Nodal Agency for RAY will coordinate all legislative and policy formulation/implementation aspects of RAY. The legislative framework would cover all legislative issues necessary for redevelopment/rehabilitation of slums, including spatial planning norms covering density, development controls and other parameters.
    • The State plan of Action would require to identify the cities intended to be covered in five years, and their phasing, and commit to a ‘whole city’ approach, so that an integrated and holistic plan is prepared for upgradation of all existing slums, notified or non-notified, in each identified city. Within each city, in each slum taken up for redevelopment, a holistic coverage would be required, with provision of all basic civic infrastructure and services as well as decent housing, with emphasis on planned layouts (after reconfiguration of plots as per existing/modified building byelaws wherever necessary) and on total sanitation (by provision of individual toilets and water supply to each household). With regard to housing, flexibility of approach would be available with the state as to the manner of construction and arrangement of funds for construction, viz., to follow a beneficiary-built housing model with design and technical support from the Municipality/State, or to construct housing through state parastatal or private partners or by delineating a mix of methods. The POA would be required to describe the model proposed to be followed in each slum, the efforts for obtaining the community's participation and the financial strategy for holistic development. Annexure VII provides a list of possible models that States may consider.
    • The State POA would need to be in two parts, Part 1 regarding the upgradation of existing slums and Part 2 regarding the action to prevent new slums with a 20 year perspective. In Part 2 the Plan would need to assess the rate of growth of the city, and based on the numbers specify the action proposed to be taken to obtain commensurate lands or virtual lands and promote the construction of affordable EWS houses as to stay abreast of the demand. This part would need also to make necessary legislative and administrative changes to enable urban land expansion, and in town planning regulations to legislate reservations for EWS/LIG housing in all new developments.
    • The Slum-free State Plan would include the following suggestive steps/actions:
      • Preparation of State-wide Legislation
        • For Assignment of Property Rights to slum households: The legislation should provide that the legal title is conferred either on the woman or jointly with the main male householder. Provision may be made for the legal entitlement to property to be on the house or on the land, as suits the city-scape. The title must be mortgageable and heritable, so as to enable access to formal credit mechanisms. It must be alienable, after a certain number of years as decided by the State, during which period of time transfer back to the State should be permissible.
      • Other Legislations necessary would be for
        • Legislative changes for commitment to reservation of 10–15 per cent of land in every new public-private housing projects or 20–25 per cent FAR, whichever is greater, earmarking of 25 per cent of municipal budget for the urban poor and provision of 7-Point basic services and entitlements to the poor as enlisted under the 7-Point Charter of JNNURM in order to make serviced land available for the poor for the future, and to prevent slums. Several states have issued executive orders as part of JNNURM reforms for this purpose—action would be required to give them the force of law;
        • Amendment to enactments governing town planning, urban development and municipalities to enable revision of population density norms, FAR, land use, etc., and permit local zoning and other relaxations required, for accommodation of in situ regularization to incentivise private sector participation wherever reasonably feasible and, for future requirements;
        • Amendment to legislations under which land is obtained for expansion of urban areas, to enable expansion of urban land at the expected rate of growth of the city. One of the main reasons for the haphazard growth of towns is the housing shortages and the slow pace of planned expansion, resulting in the mushrooming of unauthorized colonies that live outside the ambit of municipal services or taxation; and
        • Amendment to Rent Control Legislation, at least to the extent that will enable new rental housing stock to be created, and on terms governed by the market.
      • Identification and phasing of towns and cities to be covered: The States may decide if they want to cover all the towns and urban areas, or decide to choose on the basis of size or other criterion, taking PPP potential as one clear reason for the particular decision. This would require that Slum-free City Plans are prepared for the Mission cities and cities with the higher population and growth rates in the first instance. In the phasing within a city, priority in redevelopment would be required to be given to slums where the conditions are the most inadequate. The eligibility for central assistance of unauthorized colonies or regularized unauthorized colonies that are unserved by municipal services will, however, be predicated on the implementation of Part 2 of the State POA
      • For each city identified, a whole city approach would be taken, to map all the slums, notified as well as non-notified, and all unauthorised colonies and regularised unauthorised colonies unserved by municipal services. In each city, a total slum survey would be carried out, with biometric identification, to identify each slum dweller (resident, rather than owner of the shanty) for purposes of conferment of rights. Identification would be made of slums that can be upgraded holistically on site, with or without enabling changes in land use and FAR; and those which are untenable and have to be relocated. With a whole city approach, vacant land inventory would be made. A citywide plan would be made to shift untenable slums to the nearest possible available vacant land or notified slum which has the space to receive them. Such slum mapping would also include mapping of the ownership categories of the encroached land viz., municipal, state, central government, public sector undertaking and private in order to find or work out solutions for regularization and reconstruction suitable to each ownership category, ensuring land use modification, additional FAR wherever infrastructure permits etc., to create virtual space and provide incentives. The whole city approach would ensure that no slum is left out of the process of reconstruction and rehabilitation, either in situ or by relocation to another appropriate site.
      • In each slum, taking a whole slum approach, primacy would be given to the provision of infrastructure within a declared time frame. Every effort would be made to provide infrastructure, civic services on par with the rest of the town, and to create sufficient green spaces and civic amenities of community centre, livelihood centre, school, medical centre, etc., wherever these are lacking; reconfiguring the arrangement of houses and plots to enable this. Special emphasis must be placed on the provision of total sanitation with individual water sealed toilets and water connections to each household. External connectivity for sewerage and water mains, wherever available in the vicinity, would be provided for, either under the JNNURM Sub-mission of UIG or UIDSSMT or directly.
      • In addition to existing slum upgradation, the commitment to a Slum-free Status would need to be spelt out by delineating the steps proposed to be taken, the projects to promote construction of affordable houses and the time lines. Such steps would include
        • assessment of the rate of growth of urban population in different cities and agglomerations;
        • assessment of the requirement of land and housing over the next two decades to meet this requirement taking into consideration the current population densities and available infrastructure;
        • review of the current urban land expansion approaches, models and mechanisms, and the delineation of the proposal for revision to enable expansion at the envisaged rate;
        • proposal to tackle the existing housing shortages and to meet the future requirements, especially for the EWS/LIG who are otherwise forced into extralegal spaces, and preferably through private sector and state parastatal involvement;
        • review of and proposal for revision of the town planning model (largely of differentiated land use and sprawl with thought to the location of EWS living spaces along transport nodes and corridors) and the population density norms; and
        • a timetable to introduce legislation to enable orderly town planning and growth.
      • Capacity building for town planning, and for review and revision of the urban land planning and development approaches must necessarily be a part of the Action Plan.

    Annexure VII: Models of Slum Redevelopment/Rehabilitation Including Affordable Housing in Partnership the Models below are Illustrative and not Exhaustive

    Rajiv Awas Yojana: Template for Financial Requirements/Assistance for Activities at City Level under Slum-Free City Planning

    Additional Secretary & Mission Director (JNNURM)

    Ministry of Housing & Urban Poverty Alleviation

    116-G Wing, NBO Building, Nirman Bhawan,

    New Delhi -110 108

    Tel: +91-11-23061419, Fax: +91-11-23061420

    E-mail: js-jnnurm@nic.in

    Director (NBO) & OSD (JNNURM)

    Ministry of Housing & Urban Poverty Alleviation

    210-G Wing, NBO Building, Nirman Bhawan,

    New Delhi -110 108

    Tel: +91-11-23061692, Fax: +91-11-23061542

    E-mail: dnbo-mhupa@nic.in

    Annexure VII: Government Notifcation for Technical Advisory Group (TAG)

    • Technical Advisory Group for Sub-Mission on Urban Infrastructure and Governance of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is hereby constituted as under:

      (i) Shri Ramesh RamanathanNational Technical Advisor and Chairperson
      (ii) Prof. Om Prakash MathurMember
      (iii) Smt. Sheela PatelMember
      (iv) Shri K.C. SivaramakrishnanMember
      (v) Shri M.P. VasimalaiMember
      (vi) Prof. R.V. RamaraoMember

    • Terms of reference of the Technical Advisory Group shall be:
      • To advise National Steering Group, Missions Directorate and Central Sanctioning and Monitoring Committee, State Level Steering Committees and Urban Local Bodies on enlisting community participation, securing transparency and accountability, ways and means of involving citizens in service delivery and governance.
      • To help create voluntary technical corps in each Mission city.
      • To help mobilize support of civil society and elected representatives for reforms in urban governance.
      • To help enlist involvement of citizens at grass root level through Ward Committees Areas Sabhas and Voluntary Technical Corps, etc.
    • Technical Advisory Group will meet at least once in a month.
    • Ministry of Urban Development will provide suitable space and other logistical support for smooth conduct of meetings of the Group.
    • Non-official members of the Group will be entitled to TA/DA at the rates prescribed for Class-I officers of the Government of India.
    • National Technical Advisor will be a special invitee to Central Sanctioning and Monitoring Committees of both the Sub-Missions under Ministry of Urban Development and Ministry of Urban Employment and Poverty Alleviation.
    • States will be requested to include the National Technical Advisor as member or special invitee to the State Level Steering Committee.
    • This issues with the approval of Minister for Urban Development.

    (S. Kanakambaran)

    Under Secretary to the Government of India

    Source: Ministry of Urban Development. 2006. Vide Notification No. K-14012/101/2006-NURM dated 27 February 2006, Government of India. New Delhi.

    About the Author

    K. C. Sivaramakrishnan is Research Professor and Chairman of the Centre for Policy Research, New Delhi, India.

    Sivaramakrishnan is one of the leading authorities in the field of Urban Planning and Development. He entered the Indian Administrative Service in 1958 and served in the West Bengal cadre. He was the Chief Executive of the Durgapur Development Authority in 1967–71; the Chief Executive of the Calcutta Metropolitan Development Authority (CMDA) in 1971–75; Project Director, Central Ganga Authority in 1985–88 and Secretary, Urban Development, Government of India in 1988–91. He was also Urban Management Advisor in the World Bank during 1979–82 and Senior Advisor in 1992–95. He was Parvin Fellow at the Princeton University in 1965–66 and Homi Bhaba Fellow at the Indian Institute of Management, Calcutta during 1976–77.

    Sivaramakrishnan's various publications include Metropolitan Management: The Asian Experience (1986), Power to the People: The Politics and Progress of Decentralisation (2000), Handbook of Urbanization in India: Analysis of Trends and Processes of the 2001 Census (2005), and Courts, Panchayats and Nagarpalikas: Background and Review of the Case Law (2009).


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