(a) whether a report by the National Council of Applied Economic Research, New Delhi has
revealed that 40 per cent of Indian population, is likely to reside in the urban cities and
towns by the end of 2050;
(b) if so, the highlights of the report;
(c) whether the urban sector reforms, with special emphasis to improve the essential
services and infrastructure have been initiated; and
(d) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF URBAN EVELOPMENT(SHRI SAUGATA ROY)
(a) to (d): A Statement is laid on the Table of the House.
STATEMENT
STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.383 FOR 20.08.2010 REGARDING
URBAN SECTOR REFORMS
(a): Yes, Madam. The Study jointly conducted by the National Council of Applied Economic
Research and Future Capital Research has stated that 45 percent of India`s population is likely
to be urban by 2050.
(b): The report is a study of income and expenditure patterns of households in twenty towns
ie, Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur,
Jaipur, Lucknow, Nagpur, Bhopal, Coimbatore, Faridabad, Amritsar, Ludhiana, Chandigarh and
Jalandhar. It highlights that these twenty cities will become increasingly important for
financial services as surplus income rates here are nearly double of that for other cities.
The report further says that preparing for changes in urban demand is key to providing the
right mix of goods and services to cities The report also indicates that India needs to
recognize cities as engines of economic growth and urban development needs to be accorded due
priority alongwith rural development since the two are interdependent.
(c): Yes, Madam.
(d): The Ministry of Urban Development is implementing Jawaharlal Nehru National Urban Renewal
Mission (JNNURM) which provides for reforms linked financial assistance to States and Union
Territories over the period of 2005-2012. The reforms under JNNURM include reforms related to
governance, financial sustainability, land and property, responsiveness to citizens,
transparency and inclusive development. A list of reforms under JNNURM is enclosed at Annexure.
Implementation of urban reforms is also being supported through North Eastern Region Urban
Development Programme, Scheme for Infrastructure Development in Satellite Towns around Seven
Mega Cities, National Urban Sanitation Policy, National Urban Transport Policy and Service
Level Benchmarking. Further the 13th Finance Commission has made provision for general
performance grants for Urban Local Bodies subject to carrying out reforms, including setting
up an audit system for all local bodies, appointing independent local body ombudsmen,
electronic transfer of local body grants within five days of receipt from the Central
Government, prescription of the qualifications for appointment as members of the State
Finance Commission (SFC), enabling Urban Local Bodies (ULBs) to levy property tax,
establishment of property tax board and disclosure of service level benchmarks proposed to be
achieved by each ULB.
ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PART (d) OF LOK SABHA STARRED QUESTION NO. 383 FOR 20.08.2010
Reforms under JNNURM
1. MANDATORY REFORMS
There are two sets of mandatory reforms. Core reforms at ULB/Parastatal level,aim at process
re-engineering through deployment of technology to enable more efficient, reliable, timely
services in a transparent manner. The other set of reforms are framework related at State
level.
1.1 Urban Local Body / Parastatal level Reforms
i. Adoption of modern, accrual-based double entry system of accounting in Urban Local
Bodies/Parastatals
ii. Introduction of system of e-governance using IT applications like, GIS and MIS for
various services provided by ULBs/Parastatals.
iii. Reform of property tax with GIS, so that it becomes major source of revenue for Urban
Local Bodies (ULBs) and arrangements for its effective implementation so that collection
efficiency reaches at least 85% within next seven years.
iv. Levy of reasonable user charges by ULBs/Parastatals with the objective that full cost
of operation and maintenance or recurring cost is collected within next
seven years. However, cities/towns in North East and other special category States may recover
at least 50% of operation & maintenance charges initially. These cities/towns should graduate
to full O&M cost recovery in a phased manner.
v. Internal earmarking within local body, budgets for basic services to the urban poor.
vi. Provision of basic services to urban poor including security of tenure at affordable
prices, improved housing, water supply, sanitation and ensuing delivery of other already
existing universal services of the Government for education, health and social security.
1.2 State Level Reforms
i. Implementation of decentralization measures as envisaged in 74th Constitution Amendment
Act. States should ensure meaningful association/engagement of ULBs in planning function of
para-statals as well as delivery of services to the citizens.
ii. Repeal of Urban Land Ceiling and Regulation Act.
iii. Reform of Rent Control Laws balancing the interests of landlords and tenants.
iv. Rationalisation of Stamp Duty to bring it down to no more than 5% within next seven
years.
v. Enactment of Public Disclosure Law to ensure preparation of medium-term fiscal plan of
ULBs/Parastatals and release of quarterly performance information to all stakeholders.
vi. Enactment of Community Participation Law to institutionalize citizen participation and
introducing the concept of Area Sabha in urban areas.
vii. Assigning or associating elected ULBs with “city planning functionâ€.
Over a period of seven years, transferring all special agencies that deliver civic services in
urban areas to ULBs and creating accountability platforms for all urban civic service providers
in transition.
Note: In respect of schemes relating to water supply and sanitation, the under mentioned
State level mandatory reforms may be taken as optional reforms:-
i. Repeal of Urban Land Ceiling Act
ii. Reform of Rent Control Act
2. OPTIONAL REFORMS (Common to State and ULBs/Para-statals)
i. Revision of bye-laws to streamline the approval process for construction of buildings,
development of sites etc.
ii. Simplification of legal and procedural frameworks for conversion of agricultural land
for non-agricultural purposes.
iii. Introduction of Property Title Certification System in ULBs.
iv. Earmarking at least 20-25% of developed land in all housing projects (both Public and
Private Agencies) for EWS/LIG category with a system of cross subsidization.
v. Introduction of computerized process of registration of land and property.
vi. Revision of bye-laws to make rain water harvesting mandatory in all buildings and
adoption of water conservation measures.
vii. Bye-laws for reuse of recycled water.
viii. Administrative reforms i.e. reduction in establishment by bringing out
retirement schemes, non-filling up of posts falling vacant due to retirement etc., and
achieving specified milestones in this regard.
ix. Structural reforms
x. Encouraging Public Private Partnership
NOTE:
1. Any two optional reforms to be implemented together by State & ULBs/Parastatals in each
year.
2. All the reforms (mandatory as well as optional) shall be implemented by
State/ULB/Parastatal within the Mission period.