UNIT 13 URBAN DEVELOPMENT POLICIES

AND PROGRAMMES

13.0 Inuoduction

13.2 Urban Development Policies and Programmes: An Overview

13.2.1 Urban Coinmunity Development Programme. 1958
13.2.2 Constitution (Seventy-Fourth) Amendment Act, 1992
13.2.3 Swarna Jayanti Shahari Rozgar Yojana (SJSRY), 1997
13.2.4 National Policy for Urban Street Vendors, 2004
13.2.5 Sawaharlal Nehru National Urban Renewal Mission (JNNURM), 2005
13.2.6 Urban Infrastructure Development Scheme for Small and Medium Towns
( UlDSSMT), 2005
13.2.7 Integrated Housing and Slum Development Programme (LHSDP). 2005
I.3.2.X National Urban Transport Policy, 2006
13.2.9 Capacity-Building for Urban Development Project for India, 2006
13.2.10National Urban Sanitation Policy, 2008

13.3 Urban Administration: Urban Local Bodies

13.3.1 Nagar Nigams (Corporations): S~~ucture, Powers and Functions
1 73.2 Nagar Palikas (Municipalities): Structure, Powers sand Functions
13.3.3 Nagar Panchayats: Structure, Powers and Functions

13.4 Urban Reforms

13.4.1 Cb.anges in Functions and Resources of Urban Local Bodies

1.3.5 Disaster Management in Urban Areas

13.5.1 Types of Disasters
13.5.2 Issues and Measures of Disaster Management

13.6 Let Us Sum Up

13.7 Answers to 'Check Your Progress9Questions
12; .8 References

K3.0 INTRODUCTION
We have discussed the issues and challenges related to urban development in the
pr~xcdingUnit. But, the urban development issues and challenges can be effectively
addressed only through propzr policies and programmes of urban development. In
Intlia, the Ministry of Urban Development is responsible for formulating policies,
suppofiing and monitoring programmes and coordinating the activities of various Central
Ministries, State Governments and other nodal authorities in so far as they relate to
i~rhandevelopment in the country. Hence, in the present Unit we attempt to present to
!O J a broad picture of the policies and programmes of urban development and their
r.cl~:vanceto addressing of the issues and challengesof urban development in India.
Urban Development
13.1 OBJECTIVES
After going through this Unit, we expect you to be able to:
Explain the sigmficanceand scope of urban development policies and programmes:
Describe different policies and programmes of urban development; and
Analyse or critically examine these policies and programmes in the context of'
different challenges of urban development.

13.2 URBAN DEVELOPMENT POLICIES AND

PROGRAMMES: AN OVERVIEW
Urban development policies and programmes have been vogue in independent in India
as can be seen through the Five Year Plans. In this section we will discuss these policies
and programmes in holistic manner and, thus, attempt to present you an overview of the
same.
Since the First Five Year Plan the Government of India has been laying focus, among
other things, on the issues of urban development including poverty alleviation. The first
three five-year plans focused on housing up-gradation and slum clearance programmes.
During fourth to seventhFive Year Plans the focus was on urban communitydevelopment
and environmental improvement of slums. From eighth plan onwords urban poverty
began to get attention and a series of programmes relating to basic services and livelihoods
and employment-generationwere launched (http://urbanindia.nic.inlmoud.htm).
A three pronged strategy of 'inclusive growth7is being followed at present to address
the various problems of urban poverty and slums. It includes provision of housing and
services through Jawaharlal Nehru National Urban Renewal Mission (JNNURM),
institutional reforms as given in 74th Constitutional Amendment Act and through
programmes like National Urban Sanitation Policy, National Urban Transport Policy,
Policy for Urban StreetVendors and Swarna Jayanti Shahari Rozgar Yojana (SJSRY),
Urban InfrastructureDevelopment Schemefor Small and Medium Towns (UDSSMT)
and Integrated Housing and Slum Development Programme (IHSDP), among others.
The important policies and programmes of urban development implemented in India
include the following.
Urban Community Development Programme, 1958.
Constitution (Seventy-Fourth)Amendment Act, 1992.
Swarna Jayanti Shahari Rozgar Yojana (SJSRY), 1997.
~ a t i o n aPolicy
l for Urban Street Vendors, 2004.
Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 2005.
Urban Infrastructure Development Scheme for Small and Medium Towns
(UIDSSMT), 2005. ,
Integrated Housing and Slum Development Programme (IHSDP), 2005.
National Urban Transport Policy, 2006.
Capacity-Building for Urban Development Project for India, 2006.
National Urban Sanitation Policy, 2008.

3. 8
These policies and programmes are discussed, in brief, below.
 13.2.1 Urban Community Development Programme, 1958 urban Devtdopent
Policies and Pqy-amrnes
In India, the first Urban Community Development Project was initiated in 1958in Delhi
with the help of grant from Ford Foundation. It was subsequently followed by
Ahmedabad (l962), Baroda (1965) and Calcutta (1966) Projects. The Rural-Urban
Relationship Committee Report (1966) did some detailed thinking on urban community
development programme and made recommendations about the lines on which urban
community development programme could be undertaken on nation-wide scale.
During the last year of third Five Year Plan, the Union Ministry of Health initiated 20
pilot projects in selected cities with a population of 1,00,000or more. Each project
was designed to cover a population of 50,000 split into approximately t? mohalla-level
committeeswith a population of 6,000 each, to be further sub-divided into 12primary
units each consisting of a small population of 500. The scheme provided a specific
staffing pattern of a Project Officer and 8 Community Organisers supported by some
v~luntaryworkers for which a sum of Rs.50,000 per annum was allotted. Aseparate
grant of Rs. 1 5,000 was provided for local developmental activities undertaken by the
neighbourhood community on the basis of matching contribution. It was, however,
decided that the expenditure would be shared on the basis of 50% to be paid by the
Central Government and the remaining 50% to be met by the State Government and
the local body concerned. The expenditure on training, evaluation and research was to
be borne by the Central Government (Subhash Chandra, See http://
cdj.oxfordjournals.org/content/9/3/19 1.extract).

13.2.2 Constitution (Seventy Fourth) Amendment Act, 1992

The Constitution of India has detailed provisions for ensuring protection of democracy
in Parliament and in State Legislatures. Hence, democracy in these institutions has
survived and flourished.However, the Constitutiondid not make Local Self-Government
in urban areas a clear-cut Constitutional obligation.As a consequence of inadequate
Constitutional provision for Local Self-Government, democmy in municipal governance
was not stable. Though the respective municipal acts of the States provided for regular
elections to municipal bodies, they were frequently suspended for indefinite periods,
thus, eroding the very basis of local self-government and had a negative effect on
democracy at the grassroots level. The Constitution (Seventy Forth Amendment)Act,
1992 was hence introduced with a new Amendment, Part IXAin the Constitution,
' which deals with the issues relating to municipalities (http://www.urbanindia.nic.in/
1 programmeAsg/74thnCAA.pdf).
The main provisions introduced by the above Act are given below.
Constitution of Municipalities: For constitution of 3 types of municipalities
depending upon the size and area, namely: i) Nagar Panchayat for an area in
transition from rural to urban area; ii) Municipal Council for smaller urban area;
and iii) Municipal Corporationfor larger urban area.
Composition of Municipalities: The seats shall be filled by direct elections.
Besides, some seats may be filled by nomination of persons having specialknowledge
and experience in municipal administration.
Constihtion of Wards Committees: This provides for constitution of Wards
Committees in all municipalities with a population of 3 lakhs or more.
-
0 Reservation of seats: In order to provide for adequate representation of SC/ST
and of women in the municipal bodies, provisions have been made for reservation
\

of seats for them. 39

Urban Devekqment L)uration of Municipalities: The municipality has a fixed term of 5 years from
thc dare appointed for its first meeting.
Pow*c)r.sarld Functions of the Municipalities: All municipalities would be
empowcrc*iI\\,ith such powers and responsibilities as may be necessary to enable
them to f i nc.tioii
~ a\ effective institutions of self-government.

Finances ~JiWurricipcrlities:It has been left to the Legislature of a State to

specify by law nlirttt's4 1~1ating
to imposition of taxes.
Committeefor District Plannirzg: Planning and allocation of resources at the
district level for the Panchayati Raj institutions are normally to be done by the Zilla
Parishad.

13.2.3 Swarna Jayanti Shahari Rozgar Yojana (SJSRY),

1997
The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) has been in operation since
01. 12.1997. The Revised Guidelines have come into effect from I .4.2009. The three
key objectives of the revised Swarna Jayanti Shahari Rozgar Yojana (SJSRY) are a$
follows:
Addressing urban poverty alleviation through gainful employment to the urban
unemployed or under-employed poor;
Supporting skill development and training to enable the urban poor have access to
employmentopportirnitiesprovided by the market or undertake self-employment:
and
Empowering the community to tackle the issues of urban poverty through suitable
self- managed community structures and capacity-building programmes.
The delivery of inputs under the Scheme shall be through the medium of Urban Local
Bodies (ULBs) and community structures. Thus, SJSRYcalls for trengthening of these
local bodies and community organizations to enable them to address the issues of
employment and income-generation faced by the urban poor.
The revamped SJSRY hasfive major components, namely:
i) Urban Self-Employment Programme (USEP).
ii) Urban Women Self-help Programme (UWSP).
iii) Skill Training for Employment Promotion amongst Urban Poor (STEP-UP).
iv) Urban Wage Employment Programme ( W P ) .
V) Urban Community Development Network (UCDN).
The aboveprogrammes have to be implementedin convergencewith other pmgmrnmes
I
relating to slumdevelopmentlurbanpoverty alleviationsuch as Jawharlal Nehru National
Urban Renewal Mission (JNNURM), Prime Minister's Employment Generation
Programme (PMEGP),A m Aadmi Bima Yojana (AABY), Rashtriya Swasthya Bima
Yojana (RSBY), National Rural Health Mission (NRHM), Sarva Shiksha Abhiyan
(SSA), Mid-day Meals Scheme (MMS), Integrated Child Development Scheme
(ICDS), Janani Suraksha Yojana (JSS),National Social Assistance Programme (NSAP),
Skill Development Initiative Scheme (SDIS) Modular Employable Skills (MES). etc.
40
 Delivery Mechanism a n d A d m i n i s ~ v Srlpport:
e The SJSRY Guidelines envisage Urban Development
I he setting up of a dedicated cadre / service of officers specializing in urban poverty and Programmes
:IIleviationI community mobilizatio~iand development for supportingthe implementation
ol'urban poverty alleviation and related programmes in StatesIUTs. These officers are
10 he appointed at ULB /District / State levels, with suitable promotion avenues for
I lnplementation of various urban poverty alleviation schemes including SJSRY with a
PI-ofcssionalapproach. The instant guidelinesaim at guiding the creation of an appropriate
programme administration structure, supported by experts engaged on outsourcing /
contract / deputation basis to effectively implement SJSRY and other urban poverty
alleviation programmes in cities and towns (http://mhupa.gov.in/w-new/SJSRYA

13.2.4 National Policy for Urban Street Vendors, 2004

The National Policy for Urban Strec~Vendors, introduced by the Government in 2004
and revised afterwards first in 2006 and then in 2009, claims to give legitimacy to the
vast population of crores of street vendors. The National Policy recognises the 'positive
role' of the street vendors, their Constitutional right to livelihood as well as the right to
be able to practice trade or business as a fundamental right. 'This policy rccopise5 that
street vendors constitute an integral and legitimate part of the urban retail trade and
distribution system for daily necessities of the general public." And "the strecr \ cndors
assist the Government in combating unemployment and poverty, it is the duty of the
State to protect the right of these micro-entrepreneurs to earn an honest living.
Accordingly, the Policy aims to ensure that this i Inportant occupational group of the
urban population finds due recognition at national, stiitc and local levels for its contribution
to the society." But, "At the same time, it will be imp~lcticablethat every hawker be
provided a permanent site because most cities / towns suffer from severe constraints of
land for commercial vending." Therefore, there is need to 'regulate' vendors by
earmarking restriction-free,restricted and no-vending zones in cities (reasons given are
flow of traffic, pedestrians, cleanliness and hygiene, etc) (http://www.cpimI.org1liberation1

Street vendors fornm a very important component of the urban informal sector in India.
In most Indian cities, the urban poor su-vive by working in the informal sector primarily
due to poverty, lack of gainful employment in the rural areas, shrinkage of employment
in the formal sector, and low levels of ski11 and education required for the better paid
jobs in the formal sector. Street vendors are mainly those who are unsuccessful or
unable to get regular jobs. They try to solve their problems through their own meager
resources. Street vendors are regarded as public nuisance and it is said that they
encroach public spaces. The objective to be achieved through the Nation'll l'olicy for
Urban Strcet Vendors, 2004 is to provide and promote a wpportivc environment for
earning livelihoods to the vast mass of urban Strect Vendors. Street Vendors provide
vi~luablcscrvicek TO the urban population while trying to earn a livelihood and it is the
duty ot'the State ro prorcct the right of this segment of popularion to earn their livelihood.
This Policy also a i i m to ensure that this important section of the urban population finds
m recognition far iwcontribution to society, and is conceived of as a major initiative for
urbanpncny alleviation.
For the purposes of this Policy, a Street vendor is broadly defined as 'a person who
offers goods or services for sale to the public without having a permanent built-up
\tructure in a street'. This Policy recognises three basic categories of Street Vendors.
First, those Street Vendors who carry out vending on a regular basis with a specific
location; Second, those Street Vendors who carry out vending not on a regular basis
Urban Development and without a specific location, for example, Vendors who sell goods in weekly bazaars
during holidays and festivals and so on; Third, the Mobile Street Vendors. Thus, the
overarching objective to be achieved through this Policy is to 'Provide andpromote a
supportive environment for earning livelihoods to the vast mass of urban Street
Vendors while ensuring that such activity does not lead to overcrowding and
unsanitary conditions in public spaces and streets'.

13.2.5 Jawaharlal Nehru National Urban Renewal Mission

(JNNURM), 2005
JawaharlalNehru National Urban Renewal Mission (JNNURM) was launched in 2005-
11I
06. Some of its details are as follows (http://jnnurm.nic.in/wp-content/uploads/20
0 1lUIGOverview.pdf).

1) The Mission Statement: The aim of JNNURM is to encourage reforms and

fast-trackplanned development of identified cities. Focus is to be on efficiency in
urban infrastructure and service delivery mechanisms, community participation,
and accountability of CEBs / Parastatal agencies towards citizens.

2) Objectives of the Mission: The objectives of the JNNCTRM are to ensure that
the following are achieved in the urban sector.

a) Focussed attention to integrated development of infrastructure services in

cities covered under the Mission;

b) Establishment of linkages between asset-creation and asset-management

through a slew of reforms for long-term project sustainability;

II
c) Ensuring adequate funds to meet the deficiencies in urban infrastructural
services;.

d) Planned development of identified cities includingperi-urban areas,outpwths

and urban corridors leading to dispersed urbanisation;.

e) Scale-up delivery of civic amenities and provision of utilities with emphasis

on universal access to the urban poor;.

f) Special focus on urban renewal programme for the old-city areas to reduce
congestion; and

g) Provision of basic services to the urban poor including security of tenure at

affordableprices, improvedhousing, water supply and sanitation, and ensuring
delivery of other existing universal services of the government for education,
health and social security.

3) Scope of the Mission: The Mission shall comprise the two following Sub-
Missions.

i) Sub-Mission for Urban Infrastructure and Governance: This will be

administeredby the Ministry of Urban Development through the Sub-Mission
Directorate for Urban Infrastructure and Governance. The main thrust of the
Sub-Mission will be on infrastructureprojects relating to water supply and
sanitation,sewerage,solid-wastemanagement, road network, urban transport
 UrbanDeilelopment
ii) Sub-Missionfor Basic Services to the UrbanPoor: This will be administered
by the Ministry of Urban Employment and Poverty Alleviation through the
Sub-Mission Directorate for Basic Services to the Urban Poor. The main
thrust of the Sub-Missionwill be on integrated developmentof slums through
projects for providing shelter, basic services and other related civic amenities
with a view to providing utilities to the urban poor.
Strategy of the Mission: The objectives of the Mission shall be met through the
adoption of the following strategy:

i) Preparing City Development Pian: Every city will be expected to formulate

a City Developnlent Plan (CDP) indicating policies, programmes and
strategies, and financing plans.

ii) Preparing Projects: The CDP would facilitate identification of projects. The
Urban Local Bodies (ULBs) I parastatal agencies will be required to prepare
Detailed Project Reports (DPRs) for undertaking projects in the identified
spheres. It is essential that projects are planned in a manner that optimises
the life-cycle cost of projects. The life-cycle cost of a project would cover
the capital outlays and the attendant 0 & M costs to ensure that assets are in
good working condition. Arevolving fund would be created to meet the 0 &
M requirements of assets created over the planning horizon. In order to seek
JNNURM assistance, projects would need to be developed in a manner
that would,ensureand demonstrate optirnisation of the life-cycle costs over
the planning horizon of the project.
iii) Release and Leveraging of Funds: It is expected that the JNNURM
assistance would serve to catalyse the flow of investment into the urban
infrastructure sector across the country. Funds from the Central and State
Government will flow directly to the nodal agency designated by the State,
as grants-in-aid. The funds for identified projects across cities would be
disbursed to the ULB I Parastatal agency through the designated State Level
Nodal Agency (SLNA) as soft-loan or grant-cum-loan or grant. The SLNA
IULBs in turn would leverage additional resources from other sources.
iv) Incorporating Private Sector Eficiencies: In order to optimise the life-
cycle costs over the planning horizon, private sectorefficienciescan be inducted
in development, management, implementation and financing of projects,
through Public-Private Partnership (PPP) arrangements.

5) Duration of the Mission: The duration of the Mission would be seven years
beginning from the year 2005-06.Evaluation of the experience of implementation
of the Mission would be undertaken before the commencement of Eleventh Five
Year Plan and if necessary, the programme calibrated suitably.

6) Expected Outcomes of the JNNURM: On completion of the Mission period, it

is expected that ULBs and parastatal agencies will have achieved the following:

i) Modem and transparent budgeting,accounting,financialmanagement systems,

designed and adopted for all urban service and governance functions.

ii) City-wide framework for planning and governance will be established and
become operational.
iii) All urban residents will be able to obtain access to a basic level of urban
services. 43
UrbanDevelopment iv) Financially self-sustainingagencies for urban governance and servicedeliver,
will be established, through reforms to major revenue instruments.

v) Local services and governance will be co~~ducted

in a manner that ih
transparent and accountable to citizens.
vi) C-governanceapplications will be introduced in core functionsof ULBs I
Parastatal resulting in reduced cost and time of service delivery processes.
Thus, with a view to bridge the resource-gap that cities and towns were facing, the
Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was lunched.
JNNURM is a Mission mode approach that integrates the two vital needs - massive
investments I resource required for infrastructure development, and urban reforms
required to sustain big investmenty.The Mission has helped focus attention on all three
tiers of the government about the challenges faced by the cities and towns of India. The
crilrz i.5 to encourage reforms and fast-track planned developrneizt of identified
c.itie.c. Focirs is to be on ejj7ciency in urban infrastructure and sewice deliver?;
nzechai~ism.r;communizy participation, and accountability of ULBs / Parastatal
crgencies towards citizens.

13.2.6 Urban Infrastructure Development Scheme for Small

and Medium Towns (UIDSSMT), 2005
Urban InfrastructureDevelopment Scheme for Small & MediulnTowns was launched
on 3.12.2005 for improvement in urban infrastructure in towns and cities in a planned
manner. It is one of the components of JNNURM. The Mission is the single largest
initiative of the Government of India for planned development of cities and towns (http:/
/urbanindia.nic.in/pmgramme/ud/uidssmt~overview.pdf).
The higher productivity of any urban area depends on the availability and quality of
infrastructure services.Urban economic activities are dependent upon urban infrastructure
like roads, water supply, power, telecommunication,mass transportation and other
civic infrastructure like sanitation and solid-waste management. JNNURM would
provide grant to 63 identified large cities in the country and Urban Infrastructure
Development Scheme for Small and Medium Towns (UIDSSMT) will cover all other
census towns. The Mission aims to encourage reforms and fast-track infrastructure
development.Urban Infrastructure Development Scheme for Small & Medium Towns
(UIDSSMT) scheme subsumed the existing schemes of Integrated Development of

I
Small and Medium Towns ( IDSMT)and Accelerated Urban Water Supply Programme
(AUWSP). The objejecti~.e\ol'~Iit:scheme are to:
Improve it11 ~;~\~ritctur;~l
facilities and help create durable public-assctc
and quality -oricntcd \c.t.vices in cities and towns;
Enhance pu blic-private-partnershipin infrastructural development;and
Promote planned integrated development of towns and cities.

13.2.7 Integrated Housing and Slum Development

Programme (IHSDP), 2005
ln tegrated Housing and Slum Development Programme aims at inkgated apprvach i I I
improvingthe conditions of the urban slum-dwellersthat do not possess adequate sheltet
and reside in dilapidated conditions. The scheme is applicable to all cities and towns a\
pet- 200 1 Census,except citiedtowns covered under Jawaharlal Nehru National Urbal
44 Renewal Mission (JNNURM). The scheme seeks to enhance public and privatc.
 investmentsin housing and infrastructural development in ~rrbanareas. The basic objective Urban Develol?menr
of the Scheme is to strive for holistic slum dekelopment with a healthy and enabling and PrOgrammrs
ur13anenvironment by providing adequate shelter and basic infrastructure facilities to
thr: slum-dwellersof the identified urban areas. The programme runs on a project mode.
Tl~efinancing pattern is in the ratio of 80:20 by Central and State Governments.
Beneficiary share (12% for General and 10% for SC/ST) is stipulated for beneficiaries
of housing projects. Out of 20% State share the balance fund after deducting beneficiary
\bare will be borne equally by the ULB and State (Maximum state share is 10% of the
total Project Cost) (http://www.kudumbashree.org/?q=ihsdp).

13.2.8 Kational Urban Transport Policy, 2006

hbed for a nationalpolicy: Although the responsibility for management of urban
areas (and thus urban transport) rests with the State governments, a Central policy is
considered necessary as (1~trp://www.urbanindia.nic.in/policie~ransportP01icy.pdf):
Several key agencies that would play an important role in urban-transport planning
I
work under the Central government,with no accountability to the State government
i
rl SeveralActs and Rules, which have important implications in dealing with urban-
transport issues, are administered by the Central Government.

I a A need exists to guide State level action-plans within an overall-framework.

o The launching of the NURM has provided a timely platform for providing significant
financial support from the Central Government for investments in urban-transport
infrastructure.As such,this offers an opportunity for a meaningful national policy
,I
that would guide Central fmancial assistance towards improving urban mobility.
I
D A need exists to build capacity for urban-transportplanning as also develop it as a
professional practice.
A need exists to take up coordinated capacity-building, research and information
dissemination to raise the overall level of awareness and skills.
I Urban Development Parking.

Freight traffic.
Legal and Administrative Issues.
Capacity building.
Use of cleaner technologies.
Innovative financingmechanisms using land as a resource.
Association of the private sector.

13.2.9 Capacity Building for Urban Development Project for

India, 2006
The development objective of the Capacity-Building for Urban Development Project
for India is that: selected Urban Local Bodies (IJLBs) will have improved their systems
and skills for urban management and urban poverty reduction. The project has three
components as given below (www-wds.worldbank.org/servlet/WDSServlet?
pcont=details).

1) The first component of the project is capacity-building for strengthened urban

management. This component will help s&s and ULBs to improve systems for: i)
financial management (FM); ii) urban planning; iii) service delivery; and iv)
governancein ULB s.

2) The second componentof the project is capacity-building for eflective urban po.73rty
monitoring and alleviation.This component will help states and LJLBs: i) to i q w e
skills of practitioners; ii) to recognize and incorporate innovat ve programmea md
best practices; and iii) to diagnose urban poverty and prepare llleviation strate ties
in ULBs. This component will also strengthen Ministry of Housing and Urban
Poverty Alleviation's (MOHUPA's) capacity for urban poverty monitoring and
evaluation.

3) The third component of the project is implementation support. This component

will support implementation via outreach-activities with ULBs as well as project
procurement, FM and administration.

13.2.10 National Urban Sanitation Policy, 2008

Government has identified 100% sanitation as a goal during the 11' Five Year Plan.
The ultimate objective is that all urban dwellers will have access to and be able to use
safe and hygienic sanitation facilities and arrangements so that no one defecates in the
open. The vision for Urban Sanitation in India is to make all Indian cities and towns
totally sanitized, healthy and livable and ensure and sustain good public health and
environmental outcomes for all their citizens with a special focus on hygienic and
affordable sanitation facilitiesfor the urban poor and women fittp://pib.nic.in/newsite/
erelease.aspx?relid=43437).
In order to achieve the above Vision, following key policy issues must be addressed:
Poor Awareness: Sanitation has been accorded low priority and there is poor-
awareness about its inherent linkages with public health.
Social and Occupatiorzal aspects o f Sarzitation: Despite the appropriate legal
framework, progress towards the elimination of manual scavenging has CL~.,, *r n
,,llv
 limited success, Little or no attention has been paid towards the occupatiahd tihim ~eveiqnnefit
hazard faced by sanitationworkers daily. Pdlicies and I1ro&rammes

Reaching the Un-served and Poor: Urban poor communities as well other
residents of informal settlements have been constrained by lack of tenure, space
or economic constraints, in obtaining affordable access to safe sanitation.
In relation to "Payand Use" toilets, the issue of subsidies inadvertently reaching
the non-poor should be addressed by identifying different categories of urban

Lack of Demand Responsiveness: Sanitation has been provided by public

agencies in a supply-driven manner, with little regard for demands and preferences
of households as customers of sanitation services.
The overall goal of this policy is to ttaasform Urban India into cornmunitpdriven,tot&
sanitized,healthy and livable cities and towrls. Its objectives are:
Awareness Generation and Behavior Change,
Open Defecation Free Cities.
Integrated City-Wide Sanitation.
Reaching the Un-servql and Poor Households.
Knowledge Development.
Capacity-Building.
Check Your Progress
Notes: a) Space given below the question is for writing your answer,

b) Check your answer with the one given at the end of this unit under
"Answers to 'CheckYour Progress' Questions."
1) List out important policies and programmes of urban development in India.
......................................................................................................................
......................................................................................................................
......................................................................................................................
......................................................................................................................
2) State the objectives of JNNURM.
......................................................................................................................
......................................................................................................................
......................................................................................................................
......................................................................................................................

13.3 URBAN ADMINISTRATION: URBAN LOCAL

BODIES
The above policies ajid plogrammes are implemented through Urban Local Bodies.
47
Urban Development So, in this section, we will f o c ~on
~ sUrban Local Bodies touching upon their structure,
powers, functions, resources and responsibilities.
UrbanLocal Bodies (ULBs) of India are the constitutionally-provided adnlinistrative
units that provide basic infrastructure and services in cities and towns. These bodies
include the following.
Nagar Nigams or Municipal Corporations or Mahanagar Palikas.
Nagar Palikas or Municipalities.
Nagar Panchayats or City Councils.
These are part of the over all administrative structure of India as shown in the Figure
below.
.4dwi*-;::~~tdrrS ~ I L I C ~ &dI In
' Cd & -

- .
I
. -. - ... . - -
....

----A .- --

Figure 13.I: Administrative Structure d India

The Compositionof the Municipal Corporation and Municipd! I.'cnncil is as given below,
Municipal Council
Chairperson I President;
Councillors I Elected 1 Viee-President,
Ward Representatives Courlcillors I Elected
Ward Representatives

subordinate
- - staff

Source: State Municipal Acts.

Now, we present to you, in brief, about the structure, powers and functions of different
Urban Local Bodies.

18
 13.3.1 Nagar Nigams (Corporations): Structure, Powers and ~rbatlDevebme~t
Policies and Programmes
Functions
Large urban areas are governed by nagar nigams, often simply called corporations.
The area under a corporation is divided into wards. Individual wards or collections of
wards within a corporation sometimes have their own administrative body known as
ward committees.
The Mayor heads the Nagar Nigam, the President heads both Nagar Palika Parishads
and Nagar Panchayats. The elected representatives,namely, Mayors/Presidentsexercise
their powers and discharge the duties through committee of elected members, i.e.
corporators, councillors and members of Boards. Nagar Ayukts in case of Nagar
I Nigams, and Executive OfJicers in case of Nagar Palika Parishads and Nagar
Panchayats ate administrativeheads.
The ULBs execute their functions through various committees viz. Planning and
Development Committee, Educat)on Committee, Water Management Committee,
Works Committee, Health and Welfare Committee,Administrative Committee, etc,
They alsoidenhfy the beneficiaries under various schemes,e.g. housing, self-employment,
etc., based on the income criteria and social backwardness.
Councillorsact by committee, the most powerful being the Standing Committee with
its role of the steeringcommittee exercisingexecutive,supervisory,financial and personnel
powers. It is composed of elected members varying in number between seven and
sixteen through a system of proportional representation of councilors.
The Municipal Commissioner is the Chief Executive Officer and head of the executive
arm of the Municipal Corporation. The Commissioneris appointed for a fixed term as
defined by state statute.The Commissioner's term in office can be extended or reduced.
The powers of the Commissioner are those provided by statute and those delegated by
the Corporation or the Standing Committee. All executive powers are vested in the
Municipal Commissioner.Although the Municipal Corporation is the legislative body
that lays down policies for the governance of the city, it is-the Commissioner who is
responsible for the execution of the policies.

13.3.2 Nagar Palikas (Municipalities): Structure, Powers and

Functions
Smaller urban areas ate governed by nagarpalikas, often simply called municipalities.
Municipalities are also divided into wards, which may be grouped together into ward
councils. One or more representatives are elected to represent each ward.
The Nagar Palika is responsible for water supply, hospitals, roads, street-lighting,
drainage, fire-brigade,market places, solid-wastemanagement and records of births
and deaths.
Municipal Councils are units designated for smaller areas than the Municipal
Corporations. State statutes govern Municipal Councils. The Municipal Council, the
President elected by the counciUors from among themselves, the Committees and the
ExecutiveXhief Officer constitute the structure of this type of municipal government.
The size of each Municipal Council varies from state to state, with the municipal acts
prescribing both the maximum and the minimum number of councillors with terms of
office varying from three to five years. In some states, the council Presidents areelected
directly by the citizens. In a number of states, the term of the President varies from one

1
to three years and is not co-terminus with that of the council.
Urban Development The President has a substantiveposition in the municipal administration and enjoys
significant authority and power both in the deliberative and executive arms of the
municipality. The powers andfinctions of the Municipal Council Committees arc.
the same as those of the Municipal Corporation. In most states, the state government
appoints the Executive Officer. In some states, the council makes the appointment, but
his or her independence has been confiied by making removal from office difficult.
generally by a three-quarter majority vote.

13.3.3 Nagar Panchayats: Structure, Powers and Functions

Besides the traditional core functionsof municipalities, Nagar Panchayats also include
developmentfunctions like planning for economicdevelopment and socialjustice, urban
poverty alleviation programmes and promotion of cultural, educational and aesthetic
aspects. However, conformity legislation enacted by the state governments indicate
wide variations in this regard. Whereas Bihar, Gujarat, Himachal Pradesh, Haryana,
Manipur, Punjab and Rajasthan have included all the functions as enlisted in the Twelfth
Schedule in their amended state municipal laws, Andhra Pradesh has not made qqy
changes in the existing list of municipal hnctions. Karnataka, I(erda, Madhya M e s h ,
Maharashtra, Orissa, Tamil Nadu, Uttar Pradesh and West Bengal states have amended
their municipal laws to add additional functions in the list of municipal functions as
suggested in the Twelfth Schedule.
There is a lot of difference in the assignmentof obligatory and discretionaryfunctionsto
the municipal bodies among the states.Functionslike planning for the social and economic
development, urban-forestry,protection of the environment and promotion of ecologicd
aspects are obligatory functions for the municipalities of Maharashtra, whereas i~
Karnataka these are discretionary functions.
Provision of water supply and seweragein several states has either been taken over by
the state governments or transferred to state agencies. For example, in Tamil Nadu,
Madhya Pradesh and Gujarat water supply and sewerage works are being carried out
by the state level Public Health EngineeringDepartment or Water Supply and Sewerage
Boards, while liability for repayment of loans and maintenance are with the municipalities.
Besides these state level agencies, City ImprovementTrusts and Urban Development
Authorities like Delhi Development Authority (DDA) have been set up in a number of
cities. These agencies usually undertake land acquisition and development works, and
take up remunerative projects such as markets, commercial complexes, etc.
The crucial problem of the urban local bodies has been disproportionate funds in
comparison to their responsibilities which led to complete lack of financial viability and
accountability of Urban Local Bodies (ULBs) and consequently their inadequateservice
delivery. It calls for urban reforms.

URBAN REFORMS
- -

The 74th ConstitutionalAmendmentAct, 1992was the first step towards Urban Reforms
which mandated setting up of elected municipalities as 'institutions of self-government'
and specSied the function of Urban Local Bodies (ULBs).

13.4.1 Changes in Functions and Resources of Urban Local

Bodies
12thSchedule(Article 243W) of the 74th ConstitutionalAmendmentAct, 1992specifies
the following functions for the ULBs.
 I

I) Regulation of land use and constructionof building. Urban 1)eveJqwznt

Policies and Prograwmes
2) Planning for economic and social development.
3) Roads and bridges.

4) Water supply for domestic, industrial and commercial purposes.

5) Public health, sanitation conservancy and solid-waste management.

6) Fire services.

7) Urban forestry,protection of the environment and promotion of ecological aspects.

8) Safeguardingthe interests of weaker sections of society including the physically-

handicapped (differently-able) and mentally-retarded,
9) Slum improvementand up-gradation.
10) Urban poverty deviation.

11) Provision of urban amenities and facilitiessuch as parks, gardens and play grounds.
12) Promotion of cultural, educational and aesthetic aspects.
13) burials and burial-grounds, cremations, and cremation grounds, and electric
crematoriums.
14) Cattle pounds, prevention of cruelty to animals.
15) Vitalstatistics including registration of births and deaths.
16) Public amenities including street lighting, parking lots, bus-stops and public
conveniences.
17) Regulation of slaughter houses and tanneries.
These functions require finances. However, without assigning a list of local taxes to the
municipal authorities,the Constitution (74"Amendment) Act, 1 B 2 left the matter to
the State Governments. It insertedArticle 243X, which provides that a State Legislature
may, by law (Mohanty, 2005 www.cgg.gov.in/ASCII_Collectors.doc):

a) authorise a Municipality to levy, collect and appropriate such taxes, duties, tolls
and fees in accordance with such procedure and subject to such limit;

b) 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 huts;

c) provide for making such grants-in-aid to the Municipalitiesfrom the Consolidated

Fund of the State; and

d) provide for the 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 prescribed by law.
Article 243Y inserted into the Constitution through the 74&AmendmntAct makes it is
mandatory on the part of the Governor of a State for constitution of State Finance
Commission to review:

51
Urban Development a) The principles which should govern:

i) the distribution between the State and the Municipalities of the net-proceeds
of the taxes, duties, tolls and fees leviable by the State, wwch may be divided
between them and the allocation between the Municipgifiesat"al1levels of:
their respective shares of such proceeds;

jl) the determination of the taxes, duties, tolls and fees which may be assign4
to or appropriated by the Municipalities;
iii) the grants-in-aid to the Municipalities from the Consolidated Fund of the
State;

b) The measures needed to improve the financial position of Qe Municipahties;asd

c) Any other matter referred to the Finance Commission the Governor ip the
interest of sound finance of the Municipalities.
While the 74th AmendmentAct aims at ushering in a stsong local democracy through
the establishment of key institutions, it leayes ihe issues of their ernppwement qnd
operationalisation to the wisdom of the State Governments. In fact, even in mandatory
matters such as the establishment of District and Metropolitan Planning Committees,
the 74th Amendment does not prescribe any time limit. This is presumably due to the
fact that under the country's Constitution, India is a Union of States and it is under state
laws that Municipalities are constituted. However, the spirit of the Constitution (74@
Amendment)Act calls for a critical role on the part of State Governments to create a
conducive environment to steerthe decentralizationprocess, facilitatemunicipal reforms
and enable the elected municipal councils to function effectively,undertaking planning
for economic and social development and being the custodians and champions of local
socio-economic development plans. This requires, among other things, reforms in the
municipalfinance system in the country, starting first within the civic systems. (Mohanty,
2005, See www.cgg.gov.in/ASCIT_Collectors.doc).
But, this did not necessarily meant transfer of funds and financial power.leading to
dependence on central finance for implementation of their projects, thus, undermining
the idea of decentralization which is integral to 74'hCAA. Local bodies under the
JNNURM have to implement the following reforms:
Double-entry accrual-based accounting system;
E-governance;
Property tax reforms;
Implementation of GIs;
Levying user charges;
Providing basic services for the urban poor at affordable prices; and
Other administrative and structural reforms.
Local bodies have limited resources and power to generate revenue and taxes. Thue,
under the currentreform the urban local bodies can genemw taxes ttpu&hthe followin&,
some of which has to be shared with the state:
Property tax;
Vacant-land tax;
 Motor Vehicle tax; UtbanDt:v&pent
Pblieiks knd Prokrammes

Professional tax.
Local governments should, therefore, focus on generation of revenue, enhaning their
service delivery through public-private partnership and upgrading their accounting
systems. It is, thus, important for the urban local bodies to streamlineits projects, instill
accountability and match its revenue-generated with expenditures for successful
maintenance of municipal finance.
The 74th Constitutional Amendment Act, 1992was followed by several reforms at the
state level. Launching of JNNURM -- a programme for promoting reforms and
investment in select cities by the Government of India in 2005, has brought a paradigm
shift in urban development strategy. One of the objectives of JNNURM is to ensure
improvement in urban governanceand servicedelivery to facilitateUrban Local Bodies
to become financially sound and sustainable.
Similarly, the Government of India launched two other programmes - Urban
Mastructure Development Scheme for Small and Medium Towns (UIDSSMT) and
Integrated Housing md Slum Development Program (MSDP) -for non-mission cities.
These programmes have mandatory reform component to improve city. Thirteenth
Finance Commission also recommended severalreforms -some mandatory and others
discretionary - to improve municipal finances and to strengthen urban governance,
R e f m s like 74th ConstitutioaalAmendmentAct, reduction of stamp duty, rent control
laws, enactment of community and public disclosure laws, etc., have been implemented
in most states. But, there has been slow progress in the case of transfer of functionaries
and finances, integration of service delivery functions with the ULBs. disclosure of
information,ek. Efforts are being made by state and local governments and administrative
reforms committees in the reform of buildrng regulations, promotion of Public-Private
Partnership (PPP) projects, etc. It is through PPPs the urban growth and quality sf
urban life can be improved very much.
Check Your Progress
Notes: a) Space given below the-question is for writing your answer.
b) Check your answer with the one given at the end of this unit under
"Answers to 'Check Your Progress' Questions."
3) Name different Urban Local Bodies in India.
......................................................................................................................
......................................................................................................................
......................................................................................................................
......................................................................................................................
4) What are the functionsof Urban Local Bodies specified by the 7 4 Constitution
~
Amendment Act, 1992?
......................................................................................................................
......................................................................................................................
......................................................................................................................
......................................................................................................................
53
U * % v ~ t
13.5 DISASTER MANAGEMENT IN URBAN AREAS
Disaster can occur anywhere and it is unpredictable.Urban areas are seeing huge influx
of population in recent years. This has led to concentration of population, buildings,
infrastructure and economic activities into small areas, and the greater interplay that
exists between the different urban elements creates higher vulnerability. A multiplying
effect occurs in urban areas, creating severe loss and damage to life and property.
Thus, it is very important to focus on the issues of disaster management and urban
planning.

13.5.1 Types of Disasters

Though, all kinds of disasters require more or less similar skill-setsand rescue-efforts
at least a few days after the event, it is importantto understand various kinds of disasters.
Depending upon the actual nature of disaster, the immediatereaction needs to be different.
Also, the firstfew moments of disasters are distinctly different for each kind of disaster.
Thus, understanding of each kind of disastermight also help in idenming the onset of a
disastrous event, so that a trained person can undertake some key actions during the
initial few moments. This could have a major impact on the final outcome in terms of
amount of final loss. The disasters are either natural or man-made; they generally include
the following @np://www.disastemgmt.org/~types.htm1).

i) Natural disasters: These are primarily natural events. It is possible that certain
human activities could aid in some of these events, but, by and large, these are
mostly natural events such as the following.
Earthquakes.
Volcanoes.
Hoods.
Tornadoes, Typhoons, Cyclones.

ii) Man-made disasters: These are mostly caused due to certain human activities.
The disasters themselves could be unintentional, but are caused due to some
intentional activity. Most of these (barring coordinated terrorist activities) are due
to certain accidents - which could be prevented - if sufficient precautionary
measures are put in place against:
Nuclear Leaks.
cfiemical Leaks 1Spill-over.
a TerroristActivities.
StructuralCollapses.
The major effects or consequences of the disasters include the following.
a The vulnerable groups which could get most affected include women and
children.
Loss of livelihood.
a Loss of property and house.
In view of the above, among other things, it is essential that appropriate disaster-
54 mitigation measures are put in place to face any of such eventualities.
 Urban Development
13.5.2 Issues and Measures of Disaster Management Policies and Progr:ammes
lJrban development plans must incorporate in them the effective measures that contain
effects or consequences of disasters in the urban areas. Urban areas could be able to
rninirnize disasters' effects by putting in place proper plans encompassing adequate
land-use regulations, building regulations and engineering works, among others.
lrloreover, sustainable communities can only be achieved by incorporating disaster
management into their economic, environmental and social programmes such as the
I
~'ollowing.
I
ID Mitigation: make policies on zoning, early-warning systems, structural-codes,
insurance, etc.
Follow systematic approach which should have long-termplanning towards disaster
identificationand mitigation.
i @ Leadership, training, readiness, exercise to provide support for vulneraifie
, comhhities.
I
The outcome of Asia's high-rate of urbanization has been the expansion of urban
populations into geographic areas which are frequently affected by disaster events. The
d result is an increased vulnerability of populations and infrastructure.
isa aster-mitiiation measures such as the following are very essential.
l:M Earthquake- and cyclone-resistant buildings and infrastructure,
I d Flood and landslide-control measures,
, Incorporation of disaster vulnerability into land-useplanning, and
Introduction of regulatory measures in industrialized zones.
But, these have rarely been attempted in most Asian countries. Cross-cutting issues
which are directly influencing the vulnerability of urban population such as rapid
urbanization, environmentaldegradation, clirnate-variations, etc., also have contributed
negatively to national economies and infrastructure (http://www.adpc.net/udrml

Check Your Progress

Notes: a) Space given below the question is for writing your answer.
b) Check your answer with the one given at the end of this unit under
"Answers to 'CheckYour Progress' Questions."
5 ) Mention the natural and man-made disasters.
......................................................................................................................
......................................................................................................................
......................................................................................................................
......................................................................................................................
6) Specify some disaster-mitigationmeasures
......................................................................................................................
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Urban Devdopment
13.6 LET US SUM UP
This Unit has presented you an overview of urban developmentpolicies and programmes.
Here, we have discussed the types, structure, functions and resources of urban local
bodies. An attempt has also been made to emphasise the importance and strategies of
disaster management in urban areas. Further, we have highlighted various on-going
efforts in respect of urban reforms in India.

13.7 ANSWERS TO 'CHECK YOUR PROGRESS' 1

QUESTIONS
1) The important policies and programmes of urban development implemented in .
1ndiainclude the following.
Urban Community Development Programme, 1958.
Constitution (Seventy Fourth) Amendment Act, 1992. rn
Swarna Jayanti Shahari Rozgar Yojana (SJSRY), 1997.
1
National Policy for Urban Street Vendors, 2004.
I
Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 2005.
Urban InfrastructureDevelopment Scheme for Small and Medium Towns
1
(UIDSSMT), 2005.
Integrated Housing and Slum Development Program (LHSDP),2005
a National Urban Transport Policy, 2006.
Capacity-Buildingfor Urban Development Project fc - India, 2006.
a' National Urban Sanitation Policy, 2008.
The objectives of the JNNURM are to ensure that the following are achieved in
the urban sector.

a) Focused attentionto integrateddevelopmentof infrastructure servicesin cities

covered under the Mission;

b) Establishment of linkages between asset-creation and asset-management

through a slew of reforms for long-term project sustainability;

C) Ensuring adequate funds to meet the dbficiencies in urban infrastructural

services;

d) Planned developmentof identifiedcitiesincludingperi-urbanareas, outgrowths

and urban corridors leading to dispersed urbanisation;

I
e) Scale-up delivery of civic amenities and provision of utilities with emphasis
on universal access to the urban poor;

Q Special focus on urban renewal programme for the old-city areas to reduce
congestion; and

g) Provision of basic services to the urban poor including security of tenure at

affordableprices, improved housing, water supply and sanitation, and ensuring
delivery of other existing universal services of the government for educztion,
56 health and social security.
3) Urban Local Bodies (ULBs) of lndia are the constitut;lonally provided Urban Development
administrative units that provide basic infrastructure and services idcities and towns. and
These h d e s include the following.
Nagar Nigams or Municipal Corporations or Mahanagar Palikas.
Nagar Palikas or Municipalities.
Nagar Panchayats or City Councils.

4) 12th Schedule (Article 243W) of the 74th ConstitutionalAmendment Act, 1992

specifies the following functions for the ULBs.

i) Regulation of land-use and constructionof building.

ii) Planning for economic and social development.

iii) Roads and bridges.

iv) Water supply for domestic, industrial and commercial purposes.

v) Public health, sanitation conservancy and solid-wastemanagement.

vi) Fire services.
vii) Urban forestry, protection of the environment and promotion of ecological
aspects.
viii) Safeguarding the interests of weaker sections of society, including
the phy sically-handicappedand mentally-retarded
ix) Slum improvement and up-gradation.
x) Urban poverty alleviation.

xi) Provision of urban amenities and facilities such as parks, gardens and play-
grounds;
xii) Promotion of cultural, educational and aesthetic aspects.
xi() Burials and burial-grounds, cremations, and cremation-groundsand electric
crematoriums.
xiv) Cattle pounds, prevention of cruelty to animals; .
xv) =tal statisticsincluding registration of births and deaths;
xvii) Public amenities including street-lighting,parking lots, bus-stops and public
conveniences.
xvi) Regulation of slaughterhouses and tanneries.

2) Natural disasters: These are primarily natural events. It is possible that certain
human activities could aid in some of these events, but, by and large, these are
mostly natural events such as the following.
Earthquakes.

Floods.
Tornadoes, Typhoons, Cyclones.
Urban Development Man-made disasters: These are mostly caused due to certain human activities. T11c
disasters themselves could be unintentional, but are caused due to some intentional
activity.Most of these (barring coordinated terrorist activities) are due to certain accident.
- which could be prevented - if sufficient precautionary measures are put in placc

against the following.

Nuclear Leaks.
Chemical Leaks / Spill over.
Terrorist Activities.
Structural Collapse.
6) Important disaster mitigation measures include the following.
Earthquake and cyclone-resistantbuildings and mfrastructure,
Flood and landslide control measures,
Incorporation of disaster-vulnerability into land-useplanning, and
Introduction of regulatory measures in industrialized zones.

13.8 REFERENCES

-
http://urbanindia.nic.in/moud.htm.
http://urbanindia.nic.in/programme/~d~uids~mt~pd~~vervie~.pdf.
http://www.adpc.net/udrmludrm.html.
html.
http://www.cpiml.or~berationlyeart2009/nov~09/policy~watch.
http://www.disas~rmgmt.or~type/tYpes.html.
http://www.kudumbashree.org/?q=ihsdp.

Mohanty, P. K. 2005. Urban Sector Reform Agenda: Financing Civic Services

and Development See www.cgg.gov.idASCII~Collectors.doc.
Subhash Chandra. "An Evaluation of Urban Community Development in India",
Commlinity Development Journal, See http://cdj.oxfordjournals.org/contentl9/3/
191.extract - Retrieved on 15th December 20 11.
www-wds.worldbank.org/servlet/WDSServlet?pcont=details.
Suggested Readings
Baud. I, Wit. J. 2002. New Forms of Urban Governance in India. New Delhi: Sage
Publications Pvt.I,td.
Shaw, A. 2004. The Making of Navi Mumbai. New Delhi: Orien Blackswan.