Urban India - 74th Constitutional Amendment


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A presentation on past and current status of 74th constitutional amendment in India concerning urban self governance

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  • The urban growth would account for over two-thirds (67%) of total population increase by 2026.
  • Urban India - 74th Constitutional Amendment

    1. 1. URBAN INDIA74th Constitutional AmendmentUrban Local Self Governments and new age reformsBrief Background Citizen Journalism Workshop April 15, 2011 Sundarayya Vignana Kendram
    2. 2. Urban India In 1901, only 25 million people (10.8%) lived in urban India. In 2001 it became 285 million people (28%) Total population would increase from 1028 to 1400 million in 2001-26 (an increase of 36% at the rate of 1.3% annually), the urban population would increase from 285 to 535 million (an increase of 88% at the rate of 2.6% annually). Approximately 50,000 slums, but only half are notified 2
    3. 3. Hi m ac hal Pra de sh Bi har 9.79 Sik kim 10.47 As sam 11.1 Ori ssa 12.72 Tri pur 14.97 Na gala a 17.02 Meg nd 17.74Aruna Chhahal aya tis garh 19.63 ch 20.08 Ut tar al Prades h Prades 20.41 h 20.78Da dra Jhar khand 22.25 & Nag Ra ja st ar Ha v 22.89 han el i * 23.38Ja mm Mani pur 23.88 u & Ka Ut tara .. . 24.88 nchal 25.59 Madya Ke ral a 25.97 Andra Prades h Prades 26.67 h 27.08 We st B India engal 27.78 28.03Anda m Ha ryana 29 an & N Punjab i cobar I sla nd 32.67 Ka 33.95 s* Da man rnatak a & Diu 33.98 Gu * 36.26 Mahara j arat 37.35 s Tam il Nhtra 42.4 Laks h adwee adu 43.86 p* 44.47 Miz ora m 49.5 % of Urban Population to Total Pondic Goa 49.77 chandhe rry * i garh * 66.57 De lhi * 89.78 93.01
    4. 4. Trends in Metropolitanisation Population of Metropolitan Cities in India 1901-2001Census Year Number Population (Million) % of Urban Population 1901 1 1.51 5.84 1911 2 2.76 10.65 1921 2 3.13 11.14 1931 2 3.41 10.18 1941 2 5.31 12.23 1951 5 11.75 18.81 1961 7 18.10 22.93 1971 9 27.83 25.51 1981 12 42.12 26.41 1991 23 70.66 32.54 2001 35 107.88 38.60
    5. 5. India: Trends in UrbanisationCensus Number of Total Urban Urban Population Year UAs/Towns Population Population as % of Total (Million) (Million) Population1901 1,830 238.4 25.9 10.81911 1,815 252.1 25.9 10.31921 1,944 251.3 28.1 11.21931 2,066 279.0 33.5 12.01941 2,253 318.7 44.1 13.91951 2,822 361.1 62.4 17.31961 2,334 439.2 78.9 18.01971 2,567 548.2 109.1 19.91981 3,347 683.3 159.5 23.31991 3,769 846.4 217.5 25.72001 4,378 1,028.6 286.1 27.8
    6. 6. number of poor people in millions350 53 69 85 72 67 Urban Rural 247 242 232 237 201 0 1971 1981 1991 2001 2006 6
    7. 7. Urban Slum Population (In Million)8070 61.86050 46.24030 2620100 1981 1991 2001 7
    8. 8. Share of Slum Population in City Population Mumbai 54% Faridabad 46% Aligarh 45% Meerut 44% Warangal 43% Amaravati 43% Raipur 37% Nagpur 36% Hyderabad 35% Guntur 33% Kolkata 32% 8
    9. 9. Urban India: Access to Amenities 2001 % of HouseholdsCity ScenarioNo Water Source within Premises 34.6%With No Taps 31.3%No Electricity for Lighting 12.4%No Bath Room within House 29.6%No Latrine within House 26.3%No Kitchen within House 24.0% 9
    10. 10. Drinking Water Facilities (%)
    11. 11. 74th Constitutional AmendmentBrief History Popularly known as the Nagarpalika Bill, the 74th Amendment to the Constitution was passed by Parliament on 22nd December 1993, and was legislated under Article 3681 of the Indian Constitution. To pass the Constitutional Amendments 73 and 74, the Central Government took more than 5 years under the leadership of three Prime Ministers, with repeated changes in the period. The process was started by Rajiv Gandhi (then Prime Minister) in 1989. It was through his initiative that the 64th (now 73rd) and 65th (now 74th) Amendment Bills were placed in Parliament. The Panchayati Raj section of the Bill was well received and won its two-thirds majority in the Lok Sabha, but lost in the Rajya Sabha by two votes. It was this defeat that eventually gave birth, five years later, to the 73rd and 74th Constitutional Amendments. The 65th (now 74th) Amendment Bill recommended major structural changes in local governance, to ensure functioning of Municipalities as democratic units and greater participation of people at the grass roots in decision-making. 64th and 65th Amendment bills were brought in 1989 which were then passed as 73rd and 74th Amendments in 1992.
    12. 12. History Continued There were two main arguments against the passage of the Bill: firstly, Parliament had no locus standi since local self-government and Panchayats are in the State list; secondly, it was altering the basic features of the Constitution; These arguments not only delayed the process of amending the Constitution but also thwarted the implementation of the 64th (now 73rd) and 65th (now 74th) Amendments. Subsequently, it was asserted that the spirit of the 74th Constitutional Amendment was to bring about a change in urban local self-governance. In the inaugural session of the World Mayors’ Conference, the then Union Minister of Urban Development, Gulam Nabi Azad, said: “Through the 74th Amendment in 1992, the Centre added a three-tier system to the country’s federal polity. It was aimed at strengthening the municipal administration to have the institutional capability to deal with problems of urbanisation and urban population”. A Parliamentary Review Committee of the 13th Lok Sabha chaired by Chandrakant Khare in 1999, comprising of 30 members from the Lok Sabha and 13 members from the Rajya Sabha, reviewed 10 years of implementation of the Amendments and expressed the view that this period had witnessed a wilful violation of the Constitution.
    13. 13. Content of 74th CA Article 243 of the Indian Constitution was amended by the Constitution (7th Amendment) Act 1956, which brought in the definitions of Panchayats and Municipalities within the ambit of the Constitution. Article 243 P, 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. Article 243 Q - Municipal Area means the territorial area of a Municipality as is notified by the Governor or State Government - Municipality Article 243 S - Municipality will be divided into territorial constituencies known as Wards. Article 243 T – SC and ST reservation according to the population - and women will be given one-third reserved seats Article 243 U - 5-year term to the Municipalities, with the opportunity to be heard if they are to be dissolved or superseded Article 243 W lays down some of the powers and functions of the Municipalities as listed out under the Twelfth Schedule.
    14. 14. Powers & functions in Twelfth Schedule  1. Urban planning including town planning.  2. Regulation of land-use and construction of buildings.  3. Planning for economic and social development.  4. Roads and bridges.  5. Water supply for domestic, industrial and commercial purposes.  6. Public health, sanitation, conservancy and solid waste management.  7. Fire services.  8. Urban forestry, protection of the environment and promotion of ecological aspects.  9. Safe guarding the interests of weaker sections of society, including the handicapped and mentally retarded.
    15. 15. Powers & functions in Twelfth Schedule (cont.) 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, and playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds, cremations, cremation grounds and electric crematoria. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughterhouses and tanneries.
    16. 16. Missing Elements in APState Finance Commission recommends 38% devolution of funds to local bodies from state pool. (Article 243Y)Actual disbursal never crossed 18-19%.Power to levy taxes.Metropolitan Planning Committee on the lines of District Planning Committee (Article 243ZE)
    18. 18. Urban ReformsThe urban governance scenario has been subject to increasing reforms in the past 20-25 years and increasingly so in the last decade.The pressures have been both internal and external ranging from State and Central Finance commission dictats to International lending agencies like World Bank, IMF, ADB and JBIC.The focus of the reforms have been to improve service delivery, financial viability, simplified administrative procedures, accountability and responsiveness.The various measures adopted can be broadly categorized into fiscal, administrative and procedural ones.
    19. 19. Processes AdoptedImproved accounting proceduresPerformance (revenue) based incentives in budgetary allocationReduction in free water for EWSStaff reductionPrivate sector participation in certain processes like billing, customer care, maintenance etcEvolving Citizens ChartersE-governanceGIS mappingCarving out Water Supply as a separate entity (against the spirit of 74th Constitutional Amendment)
    20. 20. Parastatal AgenciesThese are organisations carved out of existing municipal bodies or created entirely new.Examples: Delhi Jal Board, HMWS&SB, BWSSB HMDA, TUDA, etc.The reasons for creation are essentially of two types: a) Restructuring as a result of IFC loans b) State Govt. bypassing local municipality to have more control, particularly in case of Capital cities.Most of these agencies do not have enough people’s representatives in governing body leading to alienation from people.
    21. 21. JNNURMJawaharlal Nehru National Urban RenewalMission
    22. 22. Brief BackgroundLaunched in December 2005 by the Prime Minister and billed as the largest ever initiative in Urban India. To be implemented in 63 cities.Mission Statement: The aim is to encourage reforms and fast track planned development of identified cities. Focus is to be on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability of ULBs/ Parastatal agencies towards citizens.In A.P. Hyderabad, Visakhapatnam and Vijayawada are the cities under the mission.
    23. 23. JNNURM: Key Objectives Integrated development of infrastructural services in cities. Linking asset creation and asset management in cities through reforms. Ensuring adequate funds to meet the deficiencies in urban infrastructural services. Planned development & dispersal of growth in cities, peri- urban areas, outgrowths & urban corridors. Provision of utilities with universal access to the urban poor. Special focus on urban renewal, i.e. redevelopment of inner (old) cities area to reduce congestion, and Basic services & improved housing to urban poor including security of tenure at affordable prices.
    24. 24. Critical FactorsNoreal assessment of urban poorHomeless are completely out of purviewDenial of Existence and removal of poorServices as per affordabilityLevy of service chargesLevy of new taxesNo assessment of Impact of Infrastructure Development on Poor
    25. 25. Basic Services to the Urban PoorAdmissible ComponentsIntegrated development of slums, i.e. housing and infrastructure projects in slumsProjects involving development/improvement/ maintenance of basic services to the urban poorSlum improvement and rehabilitation projectsProjects on water supply/sewerage/drainage/community toilets/baths etc.Construction and improvement of drains/storm water drains
    26. 26. JNNURM: Reform Agenda Mandatory Reforms Optional Reforms1. Reforms at ULB level & 1. Common at State, ULB Parastatal Agencies level & Parastatal Agencies2. Reforms at State level All the Mandatory/Optional Reforms shall be completed within the Mission Period.
    27. 27. Mandatory Reforms (ULB Level) Adoption of modern, accrual-based double entry system of accounting in ULBs & parastatals. Introduction of e-Governance with GIS and MIS Applications for services provided by ULBs & parastatals. Property Tax Reform with GIS-based Tax Mapping aimed at improving collection efficiency to at least 85% within next 7 years. Levy of reasonable user charges by ULBs with the objective that full cost of O&M is collected within next 7 years. 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.
    28. 28. Mandatory Reforms (State Level) Implementation of decentralisation measures as envisaged in Constitution 74th Amendment Act. Repeal of Urban Land Ceiling and Regulation Act. Reform of Rent Control Laws balancing the interests of landlords and tenants. Rationalisation of Stamp duty to bring it down to no more than 5% within next 7 years. Enactment of Public Disclosure Law - medium- term fiscal plan & quarterly performance report to public. Enactment of Community Participation Law to institutionalise citizen participation & Area Sabha. Assigning or associating elected ULBs with “city planning function” – Accountability platforms for parastatals .
    29. 29. Optional Reforms(State, ULB Level & Parastatal Agencies) Cities under the JNNURM will have the freedom to opt for any two reforms from the category in each year of implementation. Revision of bye-laws to streamline the approval process for construction of buildings, development of sites etc. Simplification of legal and procedural frameworks for conversion of agricultural land for non- agricultural purposes. Introduction of Property Title Certification System in ULBs. Earmarking at least 20-25% of developed land in all housing projects for EWS and LIG category with a system of cross- subsidisation.
    30. 30. Optional Reforms(State, ULB Level & Parastatal Agencies)(Contd.) Introduction of computerised process of registration of land and property, Revision of byelaws to make rain-water harvesting mandatory in all buildings and adoption of water conservation measures, Byelaws for reuse of recycled water, Administrative reforms i.e. reduction in establishment costs by adopting the Voluntary Retirement Scheme (VRS), not filling posts falling vacant due to retirement etc., and achieving specified milestones. Structural reforms. Encouraging Public-Private-Partnerships.
    31. 31. Legal ReformsCommunity Participation Law: The stated purpose is to increase the level of decentralization in urban IndiaPublic Disclosure Law: Deals with financial data disclosure in terms of financial statements, frequency of audits, service level information etc.
    32. 32. Community Participation LawTillnow it was 2 tier structure of Municipal Council and Ward Committee in both of which elected representatives play a key role in governance.The proposed model is a 3 tier structure with Area Sabha based on a polling booth below Ward committee.There is a provision in the law which states that Area Sabha members can be nominated by the state government if elections are not held for six months.Each area sabha representative is a member of ward committee. Such Area Sabha representatives will constitute 2/3rds of the Ward Committee.
    33. 33. The elected councilor is the chairperson of the Ward Committee.In addition, 10 persons representing “civil society” from the ward will be nominated on the ward committees.CPL defines civil society as “any non-government organization or association or persons established, constituted or registered under any law for the time being in force and working for social welfare, and includes any community-based organization, professional institution and civic, health, educational, social or cultural body or any trade or industrial organization and such other association or body as the Municipality may decide”. The informal sector and associations have been left out of this definition of Civil Society.
    34. 34. Slum dwellers access to water supply and sanitation are dependent on the project sanctioning by Ward Committees.If and when elite capture the ward committees by way of nomination the access of funds and projects to urban poor is in danger of disappearing.There is practically no accountability of area sabhas and ward committees to the municipality in the new proposed law.
    35. 35. Municipal Services Regulatory AuthorityThe latest and next idea is independent regulators.The proposal is to create independent municipal services regulatory authorities on the lines of Electricity Regulatory Commissions and MWRRA.The proposed authorities would look into projects for improving service standards, source augmentation etc.The scope this mechanism offers for a poor man to intervene is at best negligible.It would mean more responsibility on NGOs and CSOs to intervene.Regulation has been seen as enabling for private sector.
    36. 36. The agenda seems to be bringing in reforms at various levels to facilitate: - to bypass the institutions of elected local self governments. - to convert citizens to consumers in the name of need for improved efficiencies and accountability. - the entry of private sector into various facets of urban services.
    37. 37. The Elements JNNURM 74th AmendmentLand Ceiling Act Governance Participation law 5% Stamp Duty Double Disclosure lawTitle registration AccountingChange in landuse E Governance BS UP Service regulator
    38. 38. Democratizing devt. or the Urban ReformsModel?74th CAA Urban Reforms ModelLocal self government Conditional reforms dictated by central govt.Spirit of CAA recommends %age Central funds channeled via SPVsdevolution to ULSGs thru CFCs outside devolution frameworkand SFCs; and ability to generate (consolidated fund); fundsresources thru taxation conditional on adopting reformsULSGs to provide range of basic Project oriented approach focusedservices determined by local on large infrastructure forneeds-based planning process business and upper income usersState is responsible for protecting State retreat of responsibility forright to services service protection; only protection is ability to pay
    39. 39. Municipal restructuring: What does it mean, whodoes it affect, and how Impact on basic services Targeting large infrastructure projects at the cost of basic services Acquisition of land for large infrastructure projects displaces poor and middle class groups Achieving commercial viability of paramount importance Redefining accountability in urban governance Controlled public participation and its effects Erosion of local democratic powers and processes
    40. 40. Way forward to reclaim space for peopleNeed for a clear perspective on good governanceIdentifyingpre-requisites for democratizationIdentify shifts necessaryIdentify building blocksDevelop an enabling framework
    41. 41. PERSPECTIVES ON GOOD GOVERNANCEGovernance – Making decisions vs. exercising discretion.Understand that the process of making choices is a political act.Choice making – competing demands & scarce resources – in real world is affected by values, visions and perspectives of people who have the power to decide.Choice is not of bureaucrat alone, but involves many other players.Good Governance – not a managerial quick fix solution. It cannot be an administrative reform alone.
    42. 42. Pre-requisites for Democratization!Within Theme WithOrganisation CommunityFree Flow INFORMATION TransparencyDeliberated CHOICE DemocraticInvolved DECISION MAKING- Participatory … Consensual … Equity BasedShared ACCOUNTABILITY CollectiveResponsibility RESPONSIBILITY Ownership OWNERSHIP
    43. 43. The Building BlocksThere are three dimensions to good governance:Attitudinal ChangeIn government and in civil societyPerspective ShiftsSkill Building and Capacity EnhancementAmongst government servants and citizens groups, to play new roles.System level ChangesRe-engineering systems within government,between government and people.
    44. 44. Framework of Change1st Phase: Formulate Equity Charter – Creating a DraftFramework: Creation, Collaboration and Consolidation2nd Phase: Framework for Piloting Democratic Governance:Creating pro-poor, gender and caste sensitive GovernanceIndicators.3rd Phase: Democratic Governance: Roles and competenciesin administration4th Phase: Ensuring continuity: Creating a Learning division– Embedding institutional mechanism for ensuring DemocraticGovernance5th Phase: From Equity Charter to Vision for city: EnablingDevelopment with Democracy and Dignity
    45. 45. We must be the change we wish tosee in the world –Mahatma Gandhi
    46. 46. THANK YOU Umesh Varma PakalapatiChetana Society, Hyderabadumesh_varma@yahoo.com Ph: 98494-93009