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CCS Serieson
NURM ReformsNo. 1
IMPLEMENTATION OF THE 74TH
AMENDMENT:PENDING REFORMS
Centre for CivilSociety
www.ccs.in
Feb
ruar
y 20
07
Centre for Civil Society : Publications on Governance
� CCS Series on Reforms under National Urban Renewal Mission
No.1: Implementation of the 74th Amendment: Pending Reforms
No.2: Community Participation Law: Nagara Raj Bill
No.3: Rent Control Laws: Balancing the Interests of Landlords and Tenants
No.4: User Charges Reforms: A Case Study of Water Pricing
No.5: Urban Land Ceiling Act: Appeal to Repeal
No.6: Public Disclosure Law: Model Municipality Disclosure Bill
No.7: Administrative Reforms: Rightsizing the Government
No.8: Public Private Partnership: That government is Best which GovernsLeast
No.9: Municipal Accounting System: Getting the Numbers Right
� Handbook on New Public Governance - Edited by Parth J Shah andMakarand Bakore
� Law, Liberty and Livelihood: Making A Living on the Street
� State of Governance: Jharkhand Citizen Handbook 2005
� State of Governance: Jharkhand Citizen Handbook 2006
� State of Governance: Delhi Citizen Handbook 2006
� Voluntary City – Edited by David T Bieto, Peter Gordon and AlexanderTabarrok
� Ward Power: Decentralised Urban Governance – Edited by Parth J Shah andMakarand Bakore
Published by Parth J Shah on behalf of Centre for Civil Society
K-36, Hauz Khas Enclave, New Delhi 110 016
Phone: 011-26537456 / 26521882 Fax: 26512347
Email: nurm@ccs.in Web: www.ccs.in
February 2007Right to reprint and use is granted with acknowledgement of the Centre forCivil Society.
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
Implementation of the 74th Amendment
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
CCS Series on NURM Reforms No.1
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
Implementation of the 74th Amendment
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
CCS Series on NURM Reforms No.1
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.
6
Implementation of the 74th Amendment
7
Ann
exur
e I:
How
doe
s Del
hi M
unic
ipal
Cor
pora
tion
Act
, 195
7 m
easu
re u
p?
In th
e fo
llow
ing
tabl
e D
MC
Act
pro
visi
on in
the
star
red
row
s are
in n
eed
for r
efor
ms.
Men
Wom
enTo
tal
Gen
eral
7237
109
Res
erve
d16
925
Tota
l13
4
- 19%
rese
rved
for S
C/S
Ts
�
Res
erva
tion
& r
otat
in d
eter
min
ed b
y C
entr
al G
over
nmen
t
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ntat
ion
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he M
unic
ipal
ityo
Spec
ial k
now
ledg
e
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o
Hou
se o
f pe
ople
1.2*
o
Cou
ncil
of S
tate
s
2M
anne
r of
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ctio
n of
Cha
irpe
rson
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icip
ality
3�
Res
erva
tions
oR
eser
vatio
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ts f
or S
C/S
T in
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port
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eir
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latio
no
With
in S
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eser
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rved
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eno
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atio
n to
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fere
nt W
ards
oR
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vatio
n fo
r SC
/ST
and
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en in
the
offi
ce o
f th
e ch
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erso
n
No.
PR
OV
ISIO
NS I
N T
HE 7
4TH A
ME
ND
ME
NT
DE
LH
I MU
NIC
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L C
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RA
TIO
N A
CT, 1
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ally
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y Sp
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ctor
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ea c
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ayor
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uty
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or e
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lly.
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oman
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or�
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rd y
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ounc
illor
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ongi
ngC
aste
CCS Series on NURM Reforms No.1
4.1*
War
ds C
omm
ittee
for
Mun
icip
ality
of
mor
e th
an 3
lakh
popu
lati
on
● O
f on
e or
mor
e W
ards
● St
ate
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slat
ion
o
Terr
itori
al a
rea
of W
C
PR
OV
ISIO
NS
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HE 7
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EN
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EN
T
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ards
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e
DE
LH
I MU
NIC
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L C
OR
PO
RA
TIO
N A
CT,
1957
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us-
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st p
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ated
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d: #
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agh
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t pop
ulat
ed W
ard:
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ttam
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ar –
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est Z
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ge p
opul
atio
n pe
r w
ard:
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rage
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ulat
ion
per
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ds C
omm
ittee
: 11.
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khs
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rved
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omen
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UL
AT
ION
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agh
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est
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8
Implementation of the 74th Amendment
9
4.2
●
Stat
e le
gisl
atio
no
Com
posi
tion
of W
C
PR
OV
ISIO
NS
IN T
HE 7
4TH
AM
EN
DM
EN
T
2.Po
wer
s an
d fu
nctio
ns o
f W
ard
Com
mitt
ees
(as
per
Fift
eent
h Sc
hedu
led
that
can
be
amen
ded
by th
e C
entr
alG
over
nmen
t)a.
Sanc
tion
estim
ates
and
pla
ns f
or m
unic
ipal
wor
ks to
be
carr
ied
out w
ithin
the
Zon
e co
stin
g up
to r
upee
s on
ecr
ore,
oth
er th
an w
orks
take
n up
and
exe
cute
d fo
r D
elhi
as a
who
le o
r th
ose
cove
ring
mor
e th
an o
ne Z
one,
prov
ided
that
spe
cifi
c pr
ovis
ion
exis
ts th
eref
ore
in th
ebu
dget
san
ctio
ned
by th
e C
orpo
ratio
n.b.
Cal
l for
any
pro
ject
, ret
urn,
pla
n es
timat
e, s
tate
men
tac
coun
t or
stat
istic
s fr
om th
e C
omm
issi
oner
con
nect
edw
ith m
atte
r pe
rtai
ning
to th
e m
unic
ipal
Adm
inis
trat
ion
in th
e Z
one.
c.Sc
rutin
ize
mon
thly
sta
tem
ent o
f re
ceip
ts a
nddi
sbur
sem
ents
and
of
the
prog
ress
rep
orts
in th
eco
llect
ion
of r
even
ue in
the
Zon
e.d.
Con
side
r an
d m
ake
reco
mm
enda
tions
on
the
prop
osal
sre
gard
ing
estim
ates
of
reve
nue
and
expe
nditu
repe
rtai
ning
to th
e Z
one
unde
r di
ffer
ent h
eads
of
acco
unt
of th
e bu
dget
bef
ore
bein
g fo
rwar
ded
to th
eC
omm
issi
oner
.e.
Rep
ort o
r ad
vice
upo
n an
y m
atte
r w
hich
the
Cor
pora
tion
may
ref
er to
it u
nder
the
Act
.f.
Dea
l with
suc
h ot
her
mat
ters
as
may
be
dele
gate
d by
the
Cor
pora
tion
to th
e W
ards
Com
mitt
ee.
DE
LH
I MU
NIC
IPA
L C
OR
PO
RA
TIO
N A
CT,
1957
4.3*
Pow
er a
nd f
unct
ions
of
War
ds C
omm
ittee
As
per
Stat
e le
gisl
atio
n
-N
omin
ated
mem
bers
to th
e M
CD
can
be
a pa
rt o
f th
e W
ards
Com
mitt
ee in
thei
r zo
ne.
CCS Series on NURM Reforms No.1
5*M
unic
ipal
Com
mis
sion
er
As
per
Stat
e le
gisl
atio
n
PR
OV
ISIO
NS
IN T
HE 7
4TH
AM
EN
DM
EN
T
Com
mis
sion
era.
App
oint
men
ti.
App
oint
ed b
y th
e C
entr
al G
over
nmen
tii.
App
oint
ed f
or f
ive
year
s (r
enew
able
one
year
at a
tim
e)b.
Rem
oval
iii.
Cen
tral
Gov
ernm
ent c
an r
emov
e if
3/5
th
of th
e to
tal m
embe
rs o
f th
e C
orpo
ratio
n (i
.e.
81 c
ounc
illo
rs)
pass
a r
esol
utio
niv
.C
entr
al G
over
nmen
t can
rem
ove
the
Com
mis
sion
er if
he
is f
ound
inca
pabl
e or
guilt
y of
neg
lect
or
mis
cond
uct.
c.L
eave
v.G
rant
ed b
y St
andi
ng C
omm
ittee
d.F
unct
ions
vi.
Ent
ire
exec
utiv
e po
wer
res
ts w
ith th
eC
omm
issi
oner
vii.
Con
trol
ove
r m
unic
ipal
em
ploy
ees
viii.
Com
plet
e po
wer
ove
r ap
poin
tmen
t of
Mun
icip
al e
mpl
oyee
s
DE
LH
I MU
NIC
IPA
L C
OR
PO
RA
TIO
N A
CT,
1957
g.In
gen
eral
exe
rcis
e al
l suc
h m
unic
ipal
pow
ers a
nd fu
nctio
nsof
the
Cor
pora
tion
as a
re to
be
perf
orm
ed e
xclu
sive
ly in
the
Zon
e co
ncer
ned
othe
r th
an th
ose
rela
ting
to D
elhi
as
a w
hole
or i
nvol
ving
two
or m
ore
Zon
es.
10
Implementation of the 74th Amendment
6Po
wer
s of
the
Cor
pora
tion
As
per
Stat
e le
gisl
atio
n
PR
OV
ISIO
NS
IN T
HE 7
4TH
AM
EN
DM
EN
T
Pow
ers
of th
e C
orpo
ratio
n1.
Cal
l for
any
pro
ceed
ings
of
the
Stan
ding
Com
mitt
ee,
the
War
ds C
omm
ittee
, the
Del
hi R
ural
Are
asC
omm
ittee
, the
Edu
catio
n C
omm
ittee
or
any
othe
rco
mm
ittee
2.R
equi
re th
e C
omm
issi
oner
to p
rodu
ce a
ny r
ecor
d,co
rres
pond
ence
, pla
n or
oth
er d
ocum
ent w
hich
is in
his
poss
essi
on o
r un
der
his
cont
rol
3.R
equi
re th
e C
omm
issi
oner
to f
urni
sh a
ny r
etur
n, p
lan,
estim
ate,
sta
tem
ent,
acco
unt o
r st
atis
tics
conc
erni
ng o
rco
nnec
ted
with
any
mat
ter
pert
aini
ng to
the
adm
inis
trat
ion
of th
is A
ct4.
Mak
e re
gula
tions
on
the
follo
win
g:a.
Tenu
re o
f of
fice
, sal
arie
s an
d al
low
ance
s et
c of
offi
cers
and
oth
er e
mpl
oyee
sb.
Pow
ers,
dut
ies
and
func
tions
of
the
Mun
icip
alSe
cret
ary
c.Q
ualif
icat
ions
of
the
cand
idat
es f
or a
ppoi
ntm
ent
to p
osts
d.Pr
oced
ure
to b
e fo
llow
ed in
impo
sing
pen
altie
s et
c
Prov
ided
that
the
Com
mis
sion
er s
hall
not b
e bo
und
toco
mpl
y w
ith a
ny s
uch
requ
isiti
on if
with
the
prev
ious
appr
oval
of
the
May
or h
e m
akes
a s
tate
men
t tha
t suc
hco
mpl
ianc
e w
ould
be
prej
udic
ial t
o pu
blic
inte
rest
or
toth
e in
tere
sts
of th
e C
orpo
ratio
n.
DE
LH
I MU
NIC
IPA
L C
OR
PO
RA
TIO
N A
CT,
1957
11
CCS Series on NURM Reforms No.1
12
PR
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*
Implementation of the 74th Amendment
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
CCS Series on NURM Reforms No.1
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
.
Implementation of the 74th Amendment
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
CCS Series on NURM Reforms No.1
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
Implementation of the 74th Amendment
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: nurm@ccs.in
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)
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