Good Urban Governance in Light of

74th Amendment and JNNURM

5/29/2014

Taranjot Kaur Gadhok Chief Projects

HSMI, HUDCO

Urban Development Status

Approx.286.12 million or 28% of India’s population living in urban areas in 2001. In 2007, 29% or nearly 310 million population living in urban areas.

In 2001, there were 5,161 urban centres in India, of which 35 were metropolitan cities

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Engines of Growth – over 60% contribution to the economy Hubs for enterprise, innovation, people and

politics Increasing dependence of national/state eco growth

on the productivity of cities

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Cities and Economy

Urban Services and Infrastructure

Water Supply

Corporate Sector

Real Estate

Oil & Gas Commercialization

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Urban India – 2001 Where do we stand?

Lack of services is more a phenomenon of small and medium towns than of metropolitan cities.

26% of urban population lives in small towns population 50,000 and below another 24% live in medium sized towns with population between 50,000 and 200,000

While 50% population lives in small and medium towns access to services in these towns is much less than All India average

Other Vital issue is growth of Slum population from 75(2001) to 93 Million (2011)

For example% households served by covered drains is only 14% (1998)in Small & Medium towns as against national average of 31% of the national average and access to tapped water is only 58% against all india average of 85% 5/29/2014

Growth of slums

Decadal Growth of total population- 25% Growth of Urban Population- 40% Metro-Population Growth- 79% Slum Population Growth- 70%

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Global Slum Population growth1990-2020 Urban India Growth of slums

Failing Services

Poor are the most affected 5/29/2014

Answer is ……….

Good Governance & Management

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Governance Vs Management

Governance The governing functions are those that

provide the essential direction, resources and structure needed to meet specific needs in the community. These include:

Strategic Direction _ setting a direction for the organization that reflects community needs.

Resource Development _ developing financial resources that support program activities.

Financial Accountability _ managing financial resources that ensure honesty and cost-effectiveness.

Leadership Development _ developing the human resources that lead the organization today and in the future.

Management

The management functions are those that provide the program activities and support to accomplish the goals of the organization. These usually include:

Program Planning and Implementation _ taking the strategic direction to the next level of detail and putting it into action.

Administration _ ensuring the effective management of the details behind programs.

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Governance: Interplay of 3 Key Dimensions of Governance

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Social Dimension

Technical Dimension Political Dimension

The Economic aspect Legitimacy of Government

Promotion of democratic Instituitions

Concepts of Good Governance

“Good governance” is a normative conception of the values according to which the act of Governance is realized, and the method by which groups of social actors interact in a certain social context. The most often quoted principles underlying good governance include:

participation, rule of law, transparency of decision making or openness, accountability, predictability or coherence, and effectiveness

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Reforms for Good Governance

1st Stage (Early 1990) – Getting the Institutions and the Systems work: Economic Reforms of 1991;

2nd stage Decentralization( 74th CAA); Electoral Reforms; Financial reforms Functional reforms\

3rd Stage – Focus on Implementation; Making Services Work; Enhancing Responsiveness; Accountability and Transparency in Administration( JNNURM)

4th stage -Towards inclusive cities -RAY

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First round of reforms

Urban sector reforms to support economic reforms in 1991 Industrial development and promotion to invite foreign investment Land acquisition and land supply policies (land acquisition act of

1894;urban land ceiling act 1976, LAA updated in 1984) Stamp duty rationalization Strategies for private sector involvement in financing and

development of infrastructure as a huge investment partner after the Rakesh Mohan’s committee recommendation s on the future requirement of funds for infrastructure

Infrastructure Bonds for raising investment ; setting up of shelter and urban development fund

National Urban Policy for Creating an enabling environment Mapping of assets and creation of land bank for the urban poor

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Provisions of 74th Amendment

First, it provided for the regular and fair conduct of elections to municipalities by statutorily constituted State Election Commission.

Second, a framework is provided for the assignment of appropriate civic functions to urban local bodies through the Twelfth schedule of the Constitution.

Third, the states are required to constitute Finance Commission, once in every five years, to recommend their Legislatures, measures to improve the financial health of municipal bodies.

Fourth, it provided for constitution of ward committees in municipalities with a population of three lakhs or above (with the scope for such committees in smaller cities also), in order to ensure peoples’ participation in civic affairs at the grassroots level.

Lastly, it required states to constitute Metropolitan Planning Committees (MPC) and District Planning Committees (DPC), for the preparation and consolidation of district and regional level development plans.

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S.

No. State/UT Constitution

of ULBs Reservation

of Seats Regular Conduct

of Elections

Constitution of WCs

Constitution of DPCs

Constitution of MPCs

Constitution of SFCs

1 Andhra

Pradesh

2 Arunachal Pradesh#

3 Assam 4 Bihar 5 Chhatisgarh 6 Delhi 7 Goa 8 Gujarat 9 Haryana

10 Himachal Pradesh

11 Jharkhand 12 Karnataka 13 Kerala 14 Madhya

Pradesh

15 Maharashtra 16 Manipur 17 Meghalaya @ 18 Mizoram @ 19 Nagaland @ 20 Orissa 21 Punjab 22 Rajasthan 23 Sikkim 24 Tamil Nadu 25 Tripura 26 Uttaranchal 27 Uttar Pradesh 28 West Bengal

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State-wise Compliance of the 74th Amendment Act Provisions

V. The Twelfth Schedule((Article

243W)

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. Safeguarding the interests of weaker sections of

society, including 10. the handicapped and mentally retarded.

11. Urban poverty alleviation. 12. Provision of urban amenities and facilities

such as parks, Gardens, playgrounds. 13. Promotion of cultural, educational and

aesthetic aspects. 14. Burials and burial grounds; cremations,

cremation grounds and electric crematoriums.

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, busstops and public conveniences.

18.Regulation of slaughter houses and tanneries. 5/29/2014

Devolution of functions

III. Implementation of CAA …….

Performance of ULB’s inspite of CAA: The performance of ULBs far from satisfactory:

Declining fiscal base; Mis-match between assigned functions and allocated funds Poor collection efficiency; Adhoc, unspecified and uncertain state-local fiscal relations; Defective accounting and financial reporting system; Poor information and record management system; Questionable capacity of municipal staff; and Limited access to capital market have been observed some of the basic issues which required to be addressed for enhancing the fiscal capabilities of ULBs ( credit rating)

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Our Housing and Slum Policies and

Programs for the urban poor

Who have they served ? The task force on Urban development

acknowledged that “even the cheapest house built by public agencies has been beyond the means of urban poor, in spite of objectives of in favor of planned documents there is insufficient evidence of benefits reaching the urban poor.”….

Lessons learnt

Many schemes have gone through numerous permutations, been renamed under different headings, restructured or combined and managed by a range of different agencies.

It is now recognized that governance is not to be equated, as

earlier assumed, with the delivery of certain social goods such as water supply, conservancy, and sanitation services, street lighting, basic health, etc.

It is a broader concept which involves the entire process of

governing the urban areas. It refers to the relationship of government with the society and other stakeholders

Lessons Learnt

•Programs never reached intended class •Land bank created for the shelter less was rather used for speculation at later stage •Poor always remained out of the purview of formal financing mechanisms as they had nothing to leverage •Community participation has been totally missing, sense of ownership has been missing •Land tenure rights and developed land cost has always been inaccessible to the poor •Professionals have failed in their duty to carve out plans for the poor

Recent Initiatives

JNURRM (BSUP) & (IHSDP) 2005 Interest Subsidy Scheme of Housing For the

Urban Poor (ISHUP)2008 Street Vendors Policy and Model Bill2004

revised 2009 Rajiv Awas Yojna (RAY) 2010

JNNURM aimed to encourage reforms as well as

fast track development of key urban centers of the country.

The mission focused on the efficiency in urban infrastructure and delivery of services, community participation and accountability of ULBs towards citizens to improve their living conditions.

It is expected that JNNURM will bring the necessary change in the governance and financial management system of the ULBs/ service delivery.

Launch of JNNURM

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Jawaharlal Nehru National Urban

Renewal Mission (JNNURM)

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Launch of JNNURM – December 2005

JNNURM

Reforms

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Mandatory Reforms

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1 E-Governance set up

Achieved 2 Shift to Accrual based Double

Entry Accounting 3. Property Tax (85% coverage)

4 100% Cost Recovery (Water

Supply) 5. 100% Cost recovery (Solid

Waste) 6. Internal Earmarking of Funds

for Services to Urban Poor 7. Provision of Basic Services to

urban Poor

Mandatory Reforms

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74th CAA (Transfer of 12 sch. Functions)

9 74th CAA (Constitution of DPC)

10 74th CAA (Constitution of MPC

11. Transfer-City Planning Function

12 Transfer-Water Supply & Sanitation

13 Transfer-Public Transport

14 Reform in Rent Control

15 Stamp Duty rationalization to 5%

16 Repeal of ULCRA

17 Enactment of Community Participation

Law 18 Enactment of Public Disclosure Law

Optional Reforms

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19 Introduction of Property Title

Certification System in ULBs

20 Revision of Building Bye laws –

streamlining the Approval Process

21 Revision of Building Bye laws – To make

rain water harvesting mandatory

22 Earmarking 25% developed land in all

housing projects for EWS/LIG

23 Simplification of Legal and Procedural

framework for conversion of agricultural

land for non-agricultural Purposes

24 Introduction of computerized process of

Registration of land and Property

25 Byelaws on Reuse of Recycled Water

26 Administrative Reforms

27 Structural Reforms

28. Encouraging Public Private Participation

7 - Point Charter

The seven point Charter

Security of tenure at

affordable prices

Improved housing

Water supply

Sanitation

Education,

Health

Social security

Reform Linked agenda Modern and transparent budgeting,

accounting for urban services City-wide framework for governance

operational Access to basic urban services for all Financially self sustaining urban

governance and service delivery established through reforms

Transparent & accountable urban governance for local services

E-governance in the core functions of ULBs

Compliance with JNURRM’s aim of ensuring sustainability by Implementing the 7 point charter and reform agenda

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Rajiv Awas Yojna(RAY)-

A way forward towards Slum Free City Planning

The Objectives of RAY are Bringing existing slums within the formal system and enabling them to

avail of the same level of basic amenities as the rest of the town Redressing the failures of the formal system that lie behind the

creation of slums And Tackling the shortages of urban land and housing that keep

shelter out of reach ofthe urban poor and force them to resort to extra-legal solutions in a bid to retain their sources of livelihood and employment

http://indiaenvironmentportal.org.in/files/RAYGuidelines-English.pdf

“RAY”- A hope to achieve

Slum Free City

Central Assistance under RAY will be predicated on the condition that States/UTs assign legal title to slum-dwellers over their dwelling space

1.Internal earmarking within local body budgets for basic services to the urban

poor;

2.Provision of basic services to urban poor including security of tenure at affordable prices

3.Earmarking at least 20-25% of developed land in all housing projects for

EWS/LIG category

http://indiaenvironmentportal.org.in/files/RAYGuidelines-English.pdf

Slum Free City Plan of Action

Part-1 regarding the upgrading of existing slums Part-2 regarding the action to prevent new slums

Methodology a) survey of all slums – notified and non-notified; (b) mapping of slums using the state-of-art technology; (c) integration of geo-spatial and socio-economic data; and (d) identification of development model proposed for each slum. Base

maps to be prepared at an appropriate scale

Methodology

Conducting Socio economic Slum Surveys in cities (Notified and Non-Notified)

Inventory of existing spatial data available with different agencies. Obtaining Satellite Image of the City and its fringes Geo-Referencing of Satellite images and preparing Base Map for

entire urban area Identification & Demarcation of slum areas & Vacant Lands on Base

Map Entry of data from Slum Surveys into MIS database, compilation and

collation of data in MIS to aid preparation of City Slum-free Plans of Action

Delineation of slum areas and Mapping slum Infrastructure Integration of Slum MIS with GIS Maps (to enable preparation of

GIS-enabled Slum Information System

Key to implementation

1. Engagement of Lead NGOs/CBOs to guide and anchor community mobilization for in the selected Cities/Urban Agglomerations

Carrying out biometric identification survey of slum-dwellers and hardware for the storage of bio-metric information (Unique Identity Card initiative) and

2.Training programs in 1. Slum MIS/GIS, Slum Mapping, 2.Slum Development/Slum free City and Slum-free State

Planning, 3. Project Management, Pro-poor Reforms etc.

5/29/2014

Taranjot Kaur Gadhok Chief Projects

HSMI, HUDCO