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CCS Serieson

NURM ReformsNo. 1

IMPLEMENTATION OF THE 74TH

AMENDMENT:PENDING REFORMS

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ruar

y 20

07

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Implementation of the 74th Amendment

Pending Reforms

Makarand Bakore1

JNNURM Reform: Implementation of decentralization measures asenvisaged in 74th Constitution Amendment Act. States should ensuremeaningful association/engagement of ULBs in planning function of

parastatals as well as delivery of services to the citizens.

INTRODUCTION

Our cities are run by bureaucrats and not by elected representatives. At leastnot at the local level. Do we know the Mayor of our city? Does the Mayorfigure in the news when cities get flooded with rain or reel under bomb-blasts? Never. In many cities in the world, the Mayor is the head of the citygovernment. People directly elect the Mayor or local elected representativesvote for a Mayor. The Mayor is the chief executive officer responsible for allaspects of the city’s governance. We have heard of Rudy Giuliani, the formerMayor of New York for his spectacular management of the crisis of theSeptember 11 terrorist attacks. He coordinated the responses of the citydepartments, galvanised support of the state and federal authorities for city-wide anti-terrorist measures and for restoration of the destroyed structure. Hemade frequent appearances on radio and television to communicate criticalinformation to the public authoritatively. Did we see our Mayor do this in theDelhi bomb blasts of October 2005 or the Mumbai blasts of July 2006? It wasthe state government who played the major role and not the city government.The Mayor was insignificant.

RESURRECTING LOCAL GOVERNANCE

Since independence, state governments have been wary of strong localgovernments. Long periods of supersession of the municipalities crippled localgovernance across the country. Elections of local governments were withheldunder one pretext or the other. With the efforts of the then Prime MinisterRajiv Gandhi, the 64th and the 65th Amendment Bills, to strengthen rural andurban local bodies, were tabled in the Parliament. The Bills failed in the Rajya

1 Research Associate, Centre for Civil Society. My sincere thanks to Prof. Amit Prakash of theCentre for the Study of Law and Governance, JNU for providing his valuable feedback. Mythanks to my colleague, Mr. Ali Mehdi, for reviewing this document

CCS Series on NURM Reforms No.1

Sabha in 1989. Due to political instability, it was not before 1992 that the Billswere tabled again in the Parliament, as the 73rd and 74th Amendment Bills.With the passing of these Bills, the 73rd and 74th Amendments to the Constitutionmade it mandatory for the state governments to create Panchayati RajInstitutions in rural areas and Municipalities in urban areas.

POLITICAL COMPROMISE AND PENDING REFORMS

Since the 73rd and 74th Amendments faced vociferous opposition from stategovernments, the then Narasimhao Rao government agreed to make theAmendments indicative and left the actual design of the local governments tothe state governments. Unfortunately, most state governments saw theAmendments as relinquishing of their power to local governments rather thanas a way to increase people’s participation in government. The various statelaws reflect this misunderstanding. This resulted in the creation of a weakMayor, incomplete devolution of functions to municipalities and provision ofunrepresentative committees at the local level. All in all, the spirit of thedecentralisation was lost in between political priorities. Only two states, Keralaand West Bengal came close to a genuine effort.

JNNURM AND THE 74TH AMENDMENT

One of the mandatory reforms under JNNURM is the strengthening of the74th Amendment. The Ministry of Urban Development had prepared ‘ModelMunicipal Laws’ in 2002 that could be followed by the states as a template tostrengthen their current municipal laws. ‘Policy Option Papers’ were alsoprovided to help in framing the municipal laws. In 2002 the NationalCommission to Review the Working of the Constitution submitted a reportwith detail recommendations after studying the situation of urbanmunicipalities. There was still no motivation for the state governments to usethe above resources to their advantage. JNNURM has sought to create anincentive through funds for bringing about reform in municipal governance.

STRENGTHENING THE 74TH AMENDMENT

“To enable them [Municipalities] to function as institutions of self-government”

- From the text of the 74th Amendment to the Constitution

The 74th Amendment envisaged that functions, funds and functionaries should

2


be transferred to municipalities so as to make them units of self-government.That is the essence of the Amendment. State governments need to amendtheir municipal laws to make that happen. Moreover an attitudinal change iscalled for in the state governments to look at an urban local body as means tostrengthen governance in their state and not as their adversary.

The report of the National Committee to Review the Working of theConstitution suggested the following reforms in the Municipal laws:

1. The term of the Mayors/Chairpersons should be co-terminus withthe term of the municipality. Provision for this should be made in theConstitution itself.

2. The procedure for removal of Mayor/Chairperson through motion ofno confidence should be uniform. Here again, a provision should be madein the Constitution requiring majority of the House and two-thirds major-ity of those present and voting.

3. Articles 243D and 243T contain identical provisions so far as reservationof seats in panchayats and municipalities for SC/STs and women areconcerned. However there are some ambiguities about the rotation ofsuch reserved seats. The Constitutional provisions do not specify thefrequency of rotation. To remove ambiguities, articles 243D and 243Tshould be suitably amended to provide for rotation and allow changesonly at the time of delimitation and not in between.

4. Wards Committees should be mandatory for each of the ward in allMunicipal Corporations with a population of three lakhs or more, tocomprise of persons chosen by direct election from the territorial area ofthe Ward. The Chairman of the Committee should be the Councillor electedfrom the Ward.

5. The State laws may determine the number of persons to be so elected butthere should be parity within the city in the ratio between that numberand population of a ward.

6. State laws may also enable Wards Committees to co-opt such residentsof a ward who are knowledgeable and can assist the work of theCommittee.

7. In all Corporations with a population of six lakhs and more Zonal

3


Committees at a level between the Wards Committees and theCorporation Council should be formed. State laws may determine thenumber and area of such Zonal Committees. The Councillors of all themunicipal wards represented in that area shall be members.

8. State laws may determine the manner in which elections to the Wardand Zonal Committees are to be held, their functions and responsibilitiesand the allocation of funds to carry out the same.

9. The 12th Schedule should not be illustrative only, but should bemandatory. It should be on par with the lists in the Seventh Schedule instatus and in the exercise of Legislative and Executive powers, whichshould be co-extensive with the subject, listed in the Schedule.

10. The laws should also provide for the transfer to the Municipalities oforganisations, funds and staff who were previously responsible fordischarging the functions being assigned. The local bodies should havefull control over its staff including those transferred to them. Functions,functionaries and funds should go together.

11. The concept of a distinct and separate tax domain for municipalitiesshould be recognised. This concept should be reflected in a list of taxesand should form part of the common schedule of functions andresponsibilities for local bodies or in the event it is decided to continuewith the 11th and 12th Schedules as separate, the tax domain should figurein the relevant schedule.

12. State laws should specifically empower municipalities to borrow.

MAYOR-IN-COUNCIL SYSTEM

The Mayor-in-Council at the municipal level replicates the PrimeMinister-cabinet model at the central level and the Chief Minister-cabinetmodel at the state level. The executive powers of the Municipality are vestedin the Mayor-in-Council and not in the Municipal Commissioner as it is today.Limited experiments of this system have been carried out in India. In Kolkatathe Mayor-in-Council system was introduced in 1984. The Mayor is the ChiefExecutive Officer and the Municipal Commissioner is the Principle ExecutiveOfficer, subject to the control and supervision of the Mayor2 .

2 http://www.citymayors.com/government/india_government.html (Accessed on 30/11/2006 at 15:30)

4


After the amendments in the Madhya Pradesh Municipal Corporation Act in1997-98, the Bhopal Municipal Corporation has had a Mayor-in-Councilsystem with a directly elected Mayor. This is an important innovation in thecontext of local governance in India. That notwithstanding the condition thatthe Mayor needs the sanction of the state government for projects exceedingRupees one crore needs to be repealed. The restriction on the Mayor to appointnot more than ten councillors in the council has to be done with also3 .

The Municipal Corporation of Greater Mumbai implemented the Mayor-in-Council system briefly in 1998 and it was not without a catch. The MunicipalCommissioner was to send a monthly confidential report to the stategovernment on the performance of the Mayor-in-Council system. The term ofthe Mayor was two years only. Thus the Mayor was not empowered in thetrue spirit.

The All India Mayors’ Council has been demanding empowerment of theMayors and increase in their tenure since a long time. Except for Uttar Pradesh,Rajasthan and Uttaranchal, where the Mayor’s tenure is five years4 , mostMayors in the country have a short tenure of a year or two-and-a-half years. Itis imperative that state governments take a serious view of introducing theMayor-in-Council system as this is a vital reform urgently required in ourcities. Apprehensions of creating additional centres of powers should be putto rest as both the Mayor and the Chief Minister have separate andcomplementary domains and roles.

DELHI MUNICIPAL CORPORATION ACT 1957

How well does Delhi Municipal Corporation Act measure upto the spirit ofthe 74th Amendment? Please see Annexure I for a comparison of the provisionsof the 74th Amendment and those in the Delhi Municipal Corporation Act of1957.

CONCLUSION

As India gears up to be a super-power in the 21st century, infrastructure andpublic services are required to support economic growth. No amount ofinvestment can improve the quality of life in our cities unless fundamentalchanges in its urban governance structure are brought about. To say that

3 Sharma S.K. Institutions and Laws for Good Governance. December 2002.4 ‘Extend terms of Gujrat, Maharastra mayors, says Council’, Indian Express, 14

th October 2006

5


implementing the 74th Amendment is important is an understatement. May itbe about making Mumbai into Shanghai or management of disasters in urbanareas, strengthening municipalities is the only way to create cities ready toembrace the future.

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OV

ISIO

NS

IN T

HE 7

4TH

AM

EN

DM

EN

T

5.O

n th

e re

com

men

datio

ns o

f the

Sta

ndin

g C

omm

ittee

, in

resp

ect

of th

e bu

dget

est

imat

e, th

e C

orpo

ratio

n m

ay fr

om ti

me

to ti

me,

duri

ng th

e ye

ara.

Incr

ease

the

amou

nt o

f bu

dget

gra

nt u

nder

any

hea

db.

Mak

e an

add

itio

nal

budg

et g

rant

for

the

pur

pose

of

mee

ting

any

spec

ial o

r unf

ores

een

requ

irem

ent a

risi

ngdu

ring

the

said

yea

rc.

Red

uce

the

amou

nt o

f the

bud

get g

rant

und

er a

ny h

ead

6.B

orro

w m

oney

with

the

sanc

tion

of th

e C

entr

al G

over

men

t

App

rova

l of

the

Del

hi G

over

nmen

t req

uire

d fo

r1.

Mun

icip

al E

ngin

eer

2.M

unic

ipal

Hea

lth O

ffic

er3.

Edu

catio

n O

ffic

er4.

Mun

icip

al C

hief

Aud

itor

5.D

eput

y C

omm

issi

oner

s

Not

men

tione

d in

the

Act

DE

LH

I MU

NIC

IPA

L C

OR

PO

RA

TIO

N A

CT,

1957

As

per

Stat

e le

gisl

atio

n

Dis

tric

t Pla

nnin

g C

omm

ittee

●W

ill

con

soli

dat

e th

e p

lan

s p

rep

ared

b

y

the

Mun

icip

aliti

es a

nd th

e Pa

ncha

yats

in

the

dist

rict

and

to p

repa

re a

dra

ft d

evel

opm

ent p

lan

for t

he d

istr

ict a

sa

who

le.

●T

he C

hair

pers

on o

f eve

ry D

istr

ict P

lann

ing

Com

mitt

eesh

all

forw

ard

th

e d

evel

op

men

t p

lan

to

th

eG

over

nmen

t of

the

Stat

e.●

Com

posi

tion

oN

ot le

ss th

an 4

/5th f

rom

ele

cted

rep

rese

ntat

ives

of

Mun

icip

aliti

es a

nd P

anch

ayat

s

7* 8*


PR

OV

ISIO

NS

IN T

HE 7

4TH

AM

EN

DM

EN

TD

EL

HI M

UN

ICIP

AL C

OR

PO

RA

TIO

N A

CT,

1957

9* M

etro

polit

an P

lann

ing

Com

mitt

ee

●C

omm

ittee

to

pre

pare

a d

raft

dev

elop

men

t pla

n fo

r th

e M

etro

polit

an a

rea

as a

who

le

oM

PC

wil

l ha

ve r

egar

d to

the

pla

ns p

repa

red

by t

heM

unic

ipal

ities

and

the

Panc

haya

ts in

the

met

ropo

litan

area

oM

atte

rs

of

com

mo

n

inte

rest

b

etw

een

th

eM

unic

ipal

itie

s a

nd

the

Pan

chay

ats,

in

clud

ing

co-o

rdin

ated

s

patia

l pla

nnin

g o

f th

e a

rea,

sha

ring

of

wat

er a

nd o

ther

phy

sica

l an

d n

atur

al

reso

urce

s,

the

inte

grat

ed

deve

lopm

ent

of

in

fras

truc

ture

a

nd

envi

ronm

enta

l con

serv

atio

n

oT

he o

vera

ll o

bjec

tive

s an

d pr

iori

ties

set

by

the

Gov

ernm

ent o

f In

dia

and

the

Gov

ernm

ent o

f th

e St

ate;

oT

he e

xten

t and

nat

ure

of in

vest

men

ts li

kely

to b

e m

ade

in th

e M

etro

polit

an a

rea

by

agen

cies

of t

he G

over

nmen

tof

Ind

ia a

nd o

f t

he G

over

nmen

t of

th

e S

tate

an

d

othe

r a

vail

able

re

sour

ces

whe

ther

fin

anci

al o

rot

herw

ise

oP

anch

ayat

so

Cha

irpe

rson

cho

sen

as p

rovi

ded

in th

e St

ate

legi

slat

ion

Not

men

tione

d in

the

Act

13


14

PR

OV

ISIO

NS

IN T

HE 7

4TH

AM

EN

DM

EN

TD

EL

HI M

UN

ICIP

AL C

OR

PO

RA

TIO

N A

CT,

1957

oT

he C

hair

pers

on o

f ev

ery

Met

ropo

litan

Pla

nnin

g C

omm

ittee

sha

ll fo

rwar

d th

e de

velo

pmen

t pla

n to

the

Gov

ernm

ent o

f th

e St

ate.

●C

ompo

sitio

n

oN

ot le

ss th

an 2

/3rd

fro

m e

lect

ed r

epre

sent

ativ

es o

fM

unic

ipal

ities

and

Pan

chay

ats

oR

epre

sent

atio

n of

Sta

te a

nd C

entr

alG

over

nmen

ts a

s ne

cess

ary

oC

hair

pers

on c

hose

n as

pro

vide

d in

the

Stat

ele

gisl

atio

n

Ele

ctio

n

●B

efor

e ex

piry

of

the

dura

tion

●B

efor

e si

x m

onth

s af

ter

diss

olut

ion

●U

nder

the

cont

rol o

f th

e St

ate

Ele

ctio

n C

omm

issi

on

Pow

ers

●So

as

to e

nabl

e th

em to

fun

ctio

n as

inst

itutio

ns o

fse

lf-g

over

nmen

to

Plan

s fo

r ec

onom

ic a

nd s

ocia

l jus

tice

o

Mat

ters

in th

e T

wel

fth

Sche

dule

Tw

elft

h Sc

hedu

le (

Rec

omm

ende

d fu

nctio

ns o

f M

unic

ipal

ities

by

the

74th

A

men

dmen

t)

As

requ

ired

by

the

74th A

men

dmen

t

oE

lect

ion

Com

mis

sion

of

the

Nat

iona

l Cap

ital T

erri

tory

of

Del

hi

Not

em

pow

ered

to b

e in

stitu

tions

of

self

-gov

ernm

ent

10 11*

12Fu

nctio

n of

the

corp

orat

ion

unde

r se

ctio

ns 4

2 an

d 43

.


PR

OV

ISIO

NS

IN T

HE 7

4TH

AM

EN

DM

EN

T

1*.

Urb

an p

lann

ing

incl

udin

g to

wn

plan

ning

.N

o

2.R

egul

atio

n of

land

-use

and

con

stru

ctio

n of

Yes

(‘Se

curi

ng o

r rem

oval

of d

ange

rous

bui

ldin

gs a

nd p

lace

s’)

buil

ding

s.

3.Pl

anni

ng f

or e

cono

mic

and

soc

ial d

evel

opm

ent.

Yes

4.R

oads

and

bri

dges

.Y

es

5.W

ater

sup

ply

for

dom

estic

, ind

ustr

ial a

nd c

omm

erci

alY

es –

dis

cret

iona

ry f

unct

ion

(‘P

rovi

de u

nfilt

ered

wat

er s

uppl

y’)

purp

oses

.

6*.

Publ

ic h

ealth

, san

itatio

n co

nser

vanc

y an

d so

lid w

aste

-Pu

blic

hea

lth –

Yes

man

agem

ent.-

-D

rain

age

and

sew

age

disp

osal

– N

o (I

t is

with

the

Del

hi J

al B

oard

)

7*.

Fire

Ser

vice

s-

No

(The

y ar

e un

der

the

Del

hi S

tate

Gov

ernm

ent)

8.U

rban

for

estr

y, p

rote

ctio

n of

the

envi

ronm

ent a

nd-

Yes

(‘S

cave

ngin

g, r

emov

al a

nddi

spos

al o

f fi

lth, r

ubbi

sh a

ndpr

omot

ion

of e

colo

gica

l asp

ects

.ot

her o

bnox

ious

or p

ollu

ted

mat

ters

, mai

nten

ance

of m

onum

ents

& m

emor

ials

’)

9.Sa

fegu

ardi

ng th

e in

tere

sts

of w

eake

r se

ctio

ns o

f so

ciet

y,-

Yes

– d

iscr

etio

nary

fun

ctio

n (‘

Res

t-ho

uses

, poo

r-ho

uses

,in

clud

ing

the

hand

icap

ped

and

men

tally

ret

arde

d.in

firm

arie

s, c

hild

ren’

s ho

mes

, hou

ses

for

the

deaf

and

dum

b an

dfo

r di

sabl

ed a

nd h

andi

capp

ed c

hild

ren,

she

lters

for

des

titut

e an

ddi

sabl

ed p

erso

ns, a

sylu

ms

for

pers

ons

of u

nsou

nd m

ind,

prov

isio

n fo

r re

lief

to d

estit

ute

and

disa

bled

per

sons

.’)

10*.

Slum

impr

ovem

ent a

nd u

pgra

datio

n.N

o

11*.

Urb

an p

over

ty a

llevi

atio

n.N

o

12.

Prov

isio

n of

urb

an a

men

ities

and

fac

ilitie

s su

ch a

sY

espa

rks,

gar

dens

, pla

ygro

unds

.

13.

Prom

otio

n of

cul

tura

l, ed

ucat

iona

l and

aes

thet

ic a

spec

ts.

Yes

(E

duca

tion

thro

ugh

prim

ary

scho

ols)

DE

LH

I MU

NIC

IPA

L C

OR

PO

RA

TIO

N A

CT,

1957

15


16

PR

OV

ISIO

NS

IN T

HE 7

4TH

AM

EN

DM

EN

TD

EL

HI M

UN

ICIP

AL C

OR

PO

RA

TIO

N A

CT,

1957

14.

Bur

ials

and

bur

ial g

roun

ds; c

rem

atio

ns, c

rem

atio

nY

esgr

ound

s an

d el

ectr

ic c

rem

ator

ium

s.

15.

Cat

tle p

ound

s; p

reve

ntio

n of

cru

elty

to a

nim

als.

Yes

– d

iscr

etio

nary

fun

ctio

n

16.

Vita

l sta

tistic

s inc

ludi

ng re

gist

ratio

n of

birt

hs a

nd d

eath

s.Y

es

17.

Publ

ic a

men

ities

incl

udin

g st

reet

ligh

ting,

par

king

lots

,Y

esbu

s st

ops

and

publ

ic c

onve

nien

ces.

18.

Reg

ulat

ion

of s

laug

hter

hou

ses

and

tann

erie

s.Y

es

13Fi

nanc

ial P

ower

s

●

Col

lect

taxe

s, d

utie

s, to

lls a

nd f

ees

1.Pr

oper

ty T

ax2.

Tax

on v

ehic

les

and

anim

als

3.T

heat

re-t

ax4.

Tax

on a

dver

tisem

ents

oth

er th

an th

ose

publ

ishe

d in

new

spap

ers

5.D

uty

on th

e tr

ansf

er o

f pr

oper

ty6.

Tax

on b

uild

ing

paya

ble

alon

g w

ith th

e ap

plic

atio

n fo

rsa

nctio

n of

the

build

ing

plan

7.E

duca

tion

Ces

s8.

Loc

al r

ate

on la

nd r

even

ues

9.Ta

x on

pro

fess

ions

, tra

de c

allin

gs a

nd e

mpl

oym

ents

10.

Tax

on th

e co

nsum

ptio

n, s

ale

or s

uppl

y of

ele

ctri

city

11.

Bet

term

ent t

ax o

n th

e in

crea

se in

urb

an la

nd v

alue

s12

.Ta

x on

boa

ts13

.To

lls

14●

Fina

ncia

l Pow

ers

The

Lt.

Gov

erno

r sh

all c

onst

itute

a F

inan

ce C

omm

issi

on e

very

a.G

rant

s-in

-aid

to th

e M

unic

ipal

ities

fro

m th

e C

onso

lidat

edfi

fth

year

to r

evie

w th

e fi

nanc

ial p

ositi

on o

f th

e C

orpo

ratio

nFu

nd o

f In

dia


PR

OV

ISIO

NS

IN T

HE 7

4TH

AM

EN

DM

EN

TD

EL

HI M

UN

ICIP

AL C

OR

PO

RA

TIO

N A

CT,

1957

1.D

istr

ibut

ion

betw

een

the

NC

T o

f D

elhi

and

the

Cor

pora

tion

the

net p

roce

eds

of th

e ta

xes,

dut

ies,

tolls

and

fee

s le

viab

le b

yth

e N

CT

of

Del

hi w

hich

may

be

divi

ded

betw

een

them

.2.

Gra

nts-

in-a

id to

the

Cor

pora

tion

from

the

cons

olid

ated

fun

d of

the

NC

T o

f D

elhi

.3.

The

Leg

isla

ture

of

the

NC

T o

f D

elhi

may

by

law

pro

vide

for

the

com

posi

tion

of th

e C

omm

issi

on, t

he q

ualif

icat

ion

whi

chsh

all b

e re

quir

ed f

or th

e ap

poin

tmen

t of

mem

bers

ther

of, a

ndth

e m

anne

r in

whi

ch th

ey s

hall

be s

elec

ted.

4.T

he C

omm

issi

on s

hall

dete

rmin

e th

eir

proc

edur

e an

d sh

all

have

suc

h po

wer

s in

the

perf

orm

ance

of

thei

r fu

nctio

ns a

s th

eL

egis

latu

re o

f th

e N

CT

of

Del

hi m

ay, b

y la

w, c

onfe

r on

them

.5.

The

Adm

inis

trat

or s

hall

caus

e ev

ery

reco

mm

enda

tion

mad

e by

the

Com

mis

sion

und

er th

is s

ectio

n to

geth

er w

ith a

nex

plan

ator

y m

emor

andu

m a

s to

the

actio

n ta

ken

ther

eon

to b

ela

id b

efor

e th

e L

egis

lativ

e A

ssem

bly

of th

e N

CT

of

Del

hi

● Fi

nanc

e C

omm

issi

ona.

Dis

trib

utio

n of

Pro

ceed

s f

rom

taxe

bet

wee

n th

est

ate

and

Mun

icip

ality

.b.

Det

erm

inat

ion

of ta

xes

assi

gned

to M

unic

ipal

ities

.

17

18

Handbook on New Public GovernanceParth J Shah and Makarand Bakore

The handbook offers a spectrum of choicest ofarticles that capture the essence of good governance.The rich menu has insightful contributions on NewPublic Management, decentralisation, participation,accountability and e-governance. Illustrative casestudies on public-private partnerships exemplifysustainable service delivery models worldwide. Thisdigest is a swift route to grasping the fundamentalsof governance for politicians, administrators, civilsociety members and students.

CCS PUBLICATIONS

Ward Power: Decentralized UrbanGovernanceParth J Shah & Makarand Bakore

The book focuses on the functioning of urbanmunicipalities. It attempts to provide answersto very pertinent questions-’How can anordinary citizen demand accountability fromthe mighty Municipality in whose hands arevital services like water, electricity supply,garbage removal, roads and primaryeducation? Where does the person go to havea say in the decisions that affect theneighbourhood?’ The book, which is targetedat policy makers, urban planners and citizensassociations, suggests creating a local self-governance unit at a level of a Ward fordecentralized management.

To buy our publications please call 011-26537456 / 26521882More publications at http://www.ccs.in/publications.asp

19

CCS PUBLICATIONS

The Voluntary City

David T Bieto, Peter Gordon andAlexander Tabarrok

The book assembles a rich history andanalysis of large-scale, private and voluntary,community-based provision of socialservices, urban infrastructure, andcommunity governance to restore the vitalityof city life. Such systems provide education,transportation, housing, crime control, parksand recreation, health care, employment, andmore, by being more effective, innovative,and responsive than those provided throughspecial-interest politics-as-usual andbureaucracy . T he Voluntary City reveals howthe process of providing local public goodsthrough the dynamism of freely competitive,market-based entrepreneurship is unmatchedin renewing communities and strengtheningthe bonds of civil society.

State of Governance : Delhi Citizen Handbook2006

The handbook is a compilation of more than 30government departments, agencies, boards andissues that ignite public debate in Delhi today. Ithopes to further citizens’ understanding of theworkings of the government. The Handbookmakes constructive and bold recommendationsfor improving the quality and effectiveness ofgovernance.

To buy our publications please call 011-26537456 / 26521882More publications at http://www.ccs.in/publications.asp

CENTRE FOR CIVIL SOCIETY

The Power of Ideas

The Centre for Civil Society is an independent, non-profit, researchand educational organisation devoted to improving the quality of life

for all citizens of India by reviving and reinvigorating civil society.

India got her political independence in 1947 from the British state, but westill do not have complete social, cultural and economic independence fromthe Indian state. We aim to limit the domain of the state and make more spacefor civil society.

We champion limited government, rule of law, free trade, and individual rights.We are an ideas organisation, a think tank that develops ideas to better theworld. We want to usher in an intellectual revolution that encourages peopleto look beyond the obvious, think beyond good intentions, and act beyondactivism.

We are driven by the dream of a free society, where political, social, andeconomic freedom reigns. We are soldiers for a Second Freedom Movement.

The Centre’s Livelihood Freedom Test calls to test all existing and new rulesand regulations for their impact on the freedom to earn an honest living. Doesany law of the city restrict opportunities of any person to earn an honestliving, particularly the one that requires little capital or skills? If so, thenReview, Revise, or Remove.

The School Choice Campaign is aimed at policy change in order to giveeducation subsidies directly to the students, who would be able to choose theschool they would like to attend. This will increase competition among schoolsand lead to better educational services. Fund Students, Not Schools. Join theEducation Choice Campaign at http://schoolchoice.in!

CCS is creating awareness about Ward Level Management, where many ofthe current services, provided by the state and the Municipal Corporation,can be more effectively delivered by Ward Committees to their respectiveWard. Decentralisation of services would bring transparency andaccountability into the system.

Optional Reforms (Common to state and local bodies)

1. Revision of bye-laws to streamline the approval process forconstruction of buildings, development of sites, etc

2. Simplification of legal and procedural frameworks for conversion ofagricultural land for non-agricultural purposes

3. Introduction of Property Title Certification System in ULBs

4. Earmarking at least 20-25% of developed land in all housing projects(both Public and Private Agencies) for EWS/LIG category with a systemof cross subsidization

5. Introduction of computerized process of registration of land and property

6. Revision of bye-laws to make rain water harvesting mandatory in allbuildings to come up in future and for adoption of water conservationmeasures

7. Bye-laws on reuse of recycled water

8. Administrative reforms, i.e., reduction in establishment by bringing outvoluntary retirement schemes, non-filling up of posts falling vacant dueto retirement etc., and achieving specified milestones in this regard *

9. Structural reforms

10. Encouraging public-private partnership*

(continued from back cover)

Centre for Civil SocietyK-36, Hauz Khas Enclave, New Delhi 110016.Tel: 011-26537456 / 26521882 Fax: 011-26512347Website: www.ccs.in E-mail: [email protected]

The National Urban Renewal Mission (NURM) is a project of the centralgovernment. Through this project, the central government will fund 63 citiesfor developing urban infrastructure and services. The cities will have to carryout mandated reforms in return. The mission will last for a period of sevenyears starting December 2005. The total central government funding will beRs. 50,000 crores. Adding the contribution of states and municipalities, theamount will go upto to Rs. 1,25,000 crores over the seven year period.

REFORMS UNDER NURMCCS research papers are available for the starred reforms.

State Level Mandatory Reforms1. Effective implementation of decentralization initiatives as envisaged in

the Constitution (Seventy-fourth) Amendment Act, 1992 *

2. Repeal of Urban Land (Ceiling and Regulation) Act, 1976 *

3. Reform of Rent Control laws, by balancing the interests of landlords andtenants *

4. Rationalisation of stamp duty to bring it down to no more than 5 per centwithin seven years

5. Enactment of public disclosure law *

6. Enactment of a community participation law, so as to institutionalisecitizens’ participation in local decision making *

7. Association of elected municipalities with the city planning function

Municipal Level Mandatory Reforms1. Adoption of a modern, accrual-based, double entry system of

accounting*

2. Introduction of a system of e-governance using IT applications, GIS andMIS for various urban services

3. Reform of property with GIS, and arrangements for its effectiveimplementation so as raise collection efficiency to 85 per cent

4. Levy of reasonable user charges, with the objective that full cost ofoperation and maintenance is collected within seven years *

5. Internal earmarking of budgets for basic services to the urban poor6. Provision of basic services to the urban poor, including security of tenure

at affordable prices(continued on back page)

Documents

CCS Series NURM Reforms on February 2007 No. 1ccs.in/sites/default/files/files/CCS_1_Implementation of the 74th... · No.6: Public Disclosure Law: Model Municipality Disclosure Bill