Separate service delivery from regulatory work of local bodies

The other key issue raised in the report pertained to capacity building

The National Development Council (NDC) sub-committee on urbanisation on Monday adopted a report recommending that the service delivery and regulatory functions of local bodies be separated to ensure better accountability in local bodies.

The report said that service provider functions should be assigned to a corporate entity owned by and accountable to the local body. Ministry of Housing and Urban Poverty Alleviation has,however,stated that corporatisation of local bodies is a feasible option for larger municipalities but not for the smaller ones.

The other key issue raised in the report pertained to capacity building. The report proposes establishment of municipal cadres in each state. Also,capacity building should focus on the elected representatives.

Story continues below this ad

The report will be sent to the NDC for approval.

Urban Development Minister Kamal Nath said that the report on urbanisation seeks to strengthen the process of democratic decentralisation by making urban local bodies more responsive and closer to the people. He said,This is essential for the creation of economically vibrant,inclusive,efficient and sustainable urban habitats.

Nath said the report acknowledges the poor financial state of municipalities and proposes that the financial jurisdiction of the urban local bodies (ULB) should be clearly defined in the constitution itself.

The local bodies should have a fiscal responsibility framework for ensuring proper fiscal discipline, he said.

Story continues below this ad

The state governments have to empower the ULBs. We will set conditions that each state would have to set up a municipal service. Various municipal services in states dont have the capacity to match the challenges they face,so each state should,from its existing pool of officers,form a municipal service, Nath added.

The states which are part of the NDC sub-committee are Assam,Andhra Pradesh,Haryana,Gujarat,Maharashtra,Orissa,West Bengal,Chhattisgarh and Karnataka.

JNNURM 2nd phase to have bigger budget

The second phase of the JNNURM could see a three-fold hike in budget,said Union Urban Development Minister Kamal Nath. It will be almost two and a half times or rather three times the size of the first JNNURM, he said.

Nath added,In the second phase,Gwalior and Indore would be added to the list of the cities under JNNURM.