Urbanisation alongwith industrialisation may be termed as the major trend of development process in post-independent India. The pace of urbanisation in India is very rapid. As per the 1901 figures only 11 per cent people of India were living in urban areas. However, as per the census of 2001, the percentage of urban population has jumped to 27,8, making the administration and management of urban areas a challenging task. The absolute number of urban population as per the census of 2001, is 286 million. The reasons for rapid growth of urbanisation in India are natural increase in urban population, industrialisation and migration from the rural areas. Inspite of the best efforts of the government for development of rural areas, the migration from rural areas to urban centres is on the rise.

 

The rapid urbanisation in India is not merely a problem of number of people living in urban areas but the complexity of the task of administration of urban areas, In the words of Ramesh K. Arora, “The urban scene in India presents a series of paradoxes-growth and decay, poverty and affluence, slums and mansions, illiteracy and educational excellence, parochial groups and universalistic associations, hope and dispair. The urban centres are characterised by an interplay of multi-level, social, economic and political forces, which cumulatively, have added complexity of city life.” This complexity of urban life poses a serious problem for the management of developmental as well as maintenance activities of urban society. In view of this, if we go by the past record of the urban local bodies in India, it can safely be concluded that the major part of their resources and time is used in merely the maintenance of urban social affairs and very little resources and time are lift for the development of the urban areas.

 

What is an Urban Area?

The census of 1991 has laid down the following criteria to designate a place as urban area-

(a) All towns which have a Municipal Corporation, Municipality, Notified Area Committee, Town Area Committee or Cantonment Board.

(b) All other places which: (1) have a minimum population of 5,000; (2) 75 per cent of the male working population is engaged in non-agricultural activities; and (3) have a density of population not less than 400 persons per sq km.

 

The distinction between a city and town is also maintained. A city is an urban area which has the a population of more than one lakh; on the other hand a town is an urban area which has a population between 5000 and less than one lakh. The 74th Constitution Amendment has also included a separate category of urban areas called transitional areas, which are going through a transitional phase from rural to urban areas. The Constitution provides for a separate urban local body called Nagar Panchayat for such areas. It should be noted that like Panchayats, the subject of urban local government is also included in the state list of the 7th schedule of the Constitution. Hence, it is the responsibility of the state government to designate and demarcate different urban areas.

Historical Development of Urban Local Government in India

Though the growth of urban local bodies in modern sense in India can be traced to the British period, pre-British India was not unknown, to the urban management and administration. India, being a vast country with rich cultural heritage has seen the growth and fall of many urban centres of political, cultural or commercial importance in ancient and medieval period.

 

The Chinese traveller Megasthenese described in his book, Indica about the administration of towns during Mauryan period in 4th century B.c. According to his description, a town was administered by six committees each consisting of five officials. Each committee was responsible to look after separate activity like industrial arts, entertainment of foreigners, deaths and births, trade and commerce, supervision of manufactured goods and collection of commercial tax. During the Mughal period, the town was headed by an administrative officer called Kotwal, who besides his municipal functions, also exercised supreme authority in magisterial, and fiscal matters of town. Abul Fazl mentions the duties and functions of Kotwal in his Aini-Akbari. Accordingly, through the watchfulness and night-patrolling, the citizens should enjoy the repose of security. Kotwal should keep a register of houses and roads frequented, and engage the citizens in a pledge of reciprocal assistance.

 

Yet the urban local bodies, as we know them today, originated during British period and experiencing continuous growth and development even till today. The main milestones in the evolution of urban local government in India during British period are given below:

 

• 1687-The first municipal corporation in India was set-up at Madras. The purpose was to transfer financial responsibility of city administration to the newly created corporation.

• 1720-The Royal Charter of 1720 provided for the establishment of a mayor’s court in each presidency town-Madras, Bombay and Calcutta.

• 1850- The Act of 1850 provided for the establishment of local committees in all cities of British India to take care of public health.

• 1870-Lord Mayo’s Resolution of 1870 made provisions for strengthening the urban local bodies and increasing the association of Indians in local bodies.

• 1882-Lord Rippon’s Resolution of 1882 provided for the expansion of local urban bodies, more devolution of financial resources, reducing the official element in urban local bodies to one-third and adopting election process for the Constitution of these bodies. Due to far reaching approach of Lord Rippon, he is called the father of local self-government in India and his Resolution of 1882 is called the Magnacarta of local self-government in India. Due to the hostile attitude of his successors, his reforms were not implemented faithfully.

• 1907- The Royal Commission on De centralisation, 1907 was appointed to study the failure of local bodies. The Royal Commission found that the strict official control, narrow voting rights, less resources, lack of awareness and committed persons were the main reasons for the failure of local bodies in India. The commission recommended the reform of local bodies on the above lines but no serious effort was made by the government to implement its recommendations.

• 1919-The Government of India Act, 1919 is yet another milestone in the evolution of urban local bodies. It introduced the system of Dyarchy in the provinces and the Urban local government was put under the charge of a popular minister as a transferred subject. The main provisions of the Act included increasing the taxation power of urban local bodies, expansion of franchise and reducing the official/ nominated members. The communal representation was also extended to the election of municipalities. The Cantonment Act was passed in 1924.

• 1935-The Act of 1935 was based on the concept of provincial autonomy thus giving major control of popular ministers over state affairs including local self government. However, the Act of 1935, otherwise a progressive measure did not assign any tax to local bodies. Due to the outbreak of war, no substantial progress was made towards further strengthening of local bodies.

 

Urban Local Bodies After Independence

The new Constitution of India was enforced on January 26, 1950. Though the Constitution made specific provision for the establishment of Panchayati Raj institutions in Article 40 under the Directive Principles of State Policy, it did not make specific provision for the establishment of urban local bodies. The urban local government found mention only under Entry 5 of state list of 7th Schedule. This entry includes Local Government, that is to say, the Constitution and Powers of Municipal Corporations, Improvement Trusts, District Boards, Mining Settlement Authorities and other local authorities for the purpose of local self-government or village administration.

 

According by the constitution and powers of all local bodies are within the jurisdiction of state government. However, it should be noted that urban planning is indirectly included in ‘Economic and Social Planning’ which is mentioned under Entry 20 of the concurrent list. Its implication is that while powers and constitution of urban local bodies is the sole jurisdiction of state government, the urban planning falls within the jurisdiction of both the state and the union government.

 

Types of Urban Local Bodies The following types of urban local bodies are found in India:

 

1. Municipal Corporation- Municipal Corporation is established by the Act of state government for the big cities of states and by the Act of Parliament for the big cities of Union Territories. A corporation has three authorities. First is the corporation council headed by the Mayor, who is assisted by the Deputy Mayor. The councillors and Mayor are directly elected by the people. Council is a deliberative and legislative organ of the corporation. Second organ of the corporation are the standing committees to deal with various activities like health, education, public works and are empowered to take decisions in their respective fields. The third authority of the Corporation is the Municipal Commissioner, who is a government officer and is responsible for the implementation of the decisions taken by the council and standing committees.

 

2. Municipalities- They are setup by the Acts of state legislature for the administration of small cities or towns. It also has three authorities. First the municipal council is the legislative branch of the municipality, and is headed by the Chairman, who in turn is assisted by a Deputy Chairman. The standing committees facilitate the work of municipality in various fields such as health, taxation finance etc.

 

The third authority of the municipality is the Chief Municipal Officer, who is appointed by the state government and is responsible for the general administration of the municipality. The municipality may be known by other names also such as Municipal Board, Municipal Council or Municipal Committee etc.

 

3. Notified Area Committee- This may be created either in a town which is fast developing or which may not fulfil the conditions for the creation of a municipality. It is known as Notified Area Committee because it is created through a notification of the state government published in the official gazette. It is not a statutory body and all its members and chairman are nominated by the government. It performs similar functions as performed by a municipality.

 

4. Town Area Committee-It is created by a separate Act of state government for the administration of small towns. It performs a limited number of functions like street lighting, drainage etc. As provided in the Act, it may be wholly elected or totally nominated or partly elected or partly nominated body.

 

5. Cantonment Boards- They are established to perform municipal functions for civilian population living in cantonment or military areas. Its noticeable feature is that it is created and works under the central Act of 1924 under the administrative control of Ministry of Defence. There are three types of Cantonment Boards depending upon the number of civilian population in the Cantonment Area. It consists of partly elected and partly nominated members. The members are elected for a three year term. The military officer commanding the cantonment station is the exofficio chairman of the Cantonment Board.

 

6. Townships- Townships are established by a public sector undertaking as its housing colony to provide civil amenities to its employees living in township. It has no elected members and its affairs are managed by a Town Administrator appointed by the public sector undertaking.

 

7. Port Trusts- Such urban bodies are established by an Act of the Parliament to manage and protect ports and to provide civic amenities to the port area. It is headed by an official appointed by the central government. It has both elected and nominated members.

 

8. Special Purpose Agencies- The state governments establish some special purpose agencies to perform some specific functions of municipalities. They function as separate bodies not under the control of municipalities. They may be created either by an act of State Legislature or by an order of the executive. Some of these agencies are Housing Board, Water Supply Undertaking, Electricity Supply Undertakings, Urban Development Authorities etc.

 

Finances of Urban Local Bodies

It should be noted that urban local bodies prepare their Budgets on annual basis in the forms prescribed by the state government. Before execution, the Budget is to be submitted to the state government in February for its approval. Only after the approval of the state government the Budget 0 f a local body is implemented. The Budget is prepared on the basis of priority areas and availability of finances.

 

Generally the sources of finances of a urban body are 0f four types:

1. Collection of Local Tax Revenue- Urban local bodies levy some taxes in their area; such as octroi, property tax, profession tax, entertainment tax, advertisement tax, animal tax, market tax, water tax, pilgrim tax, toll on new bridges etc. The revenue from taxes constitutes the two-third of the total revenue of urban local bodies. Octroi has been abolished in Uttar Pradesh, which was a major source of income.

 

2. Non-Tax Revenue- It consists of fees, receipts, fines or income from remunerative activities of the urban local bodies. The fees is collected through various forms and processing fees. These bodies also collect some non-tax revenue through parks and exhibition grounds.

 

3. Grants-in-Aid- The state government gives grants-in-aid to the urban local body for special purpose. Under the 74th Amendment, a State Finance Commission is established to recommend the principles governing the grants-in-aids to the urban local bodies by the state governments.

 

4. Loans- Under the respective Municipal Acts, the urban local bodies are entitled to raise loans from the state governments. The loans are to be paid back within prescribed time limit along with the interest. The proposals of loans are to be cleared by the Reserve Bank of India.