The 74th Constitutional Amendment Act, 1992 granted constitutional status to Urban Local Bodies and recognized them as the third tier of government in India’s federal structure. It institutionalised urban decentralisation and provided a uniform framework for municipal governance across states.
Structure of Urban Local Governance
Urban Local Bodies are classified based on population size:
1. Municipal Corporations
- Govern large metropolitan cities
- Headed by a Mayor
- Assisted by a Municipal Commissioner (administrative head)
2. Municipal Councils
- Govern smaller urban areas
- Headed by a Chairperson or President
3. Nagar Panchayats
- Govern transitional areas (rural to urban)
- Headed by a Chairperson
Special Purpose Urban Bodies
Certain urban areas are governed by specialised authorities such as:
- Port Trusts
- Industrial Development Authorities
- Cantonment Boards
- Township Administrations
These bodies often function alongside municipalities.
Constitutional and Legal Provisions
Constitutional Framework
The 74th Amendment introduced Part IXA (Articles 243P–243ZG) and the Twelfth Schedule.
Important Articles include:
- Article 243P – Definitions
- Article 243Q – Constitution of municipalities
- Article 243R – Composition
- Article 243T – Reservation of seats
- Article 243U – Duration (5 years)
- Article 243Y – State Finance Commission
The Twelfth Schedule assigns 18 subjects to municipalities, including:
- Urban planning
- Regulation of land use
- Water supply
- Public health and sanitation
- Solid waste management
- Urban poverty alleviation
- Slum improvement
State Municipal Acts
Each state enacts its own Municipal Act detailing powers, structure, finance, and functioning of ULBs.
Major Challenges Faced by ULBs
1. Financial Constraints
- Limited revenue-raising powers
- Weak property tax base
- Dependence on state grants
2. Lack of Autonomy
- Significant state government control
- Limited decision-making powers
3. Parallel Agencies
Urban development authorities and parastatal bodies often overlap with municipal functions, reducing accountability.
4. Administrative Capacity Issues
- Shortage of skilled personnel
- Weak planning and project execution capacity
5. Infrastructure Deficits
- Inadequate water supply
- Poor sanitation and waste management
- Congested transport systems
6. Political Interference
- Instability in municipal leadership
- Frequent supersession of elected bodies
7. Limited Citizen Participation
- Weak ward committees
- Poor grievance redress mechanisms
Measures to Strengthen Urban Local Bodies
1. Greater Devolution
Transfer of Functions, Finances, and Functionaries (3Fs) to ULBs.
2. Financial Empowerment
- Strengthening property tax systems
- Promoting municipal bonds
- Timely State Finance Commission recommendations
3. Capacity Building
- Professional municipal cadres
- Training in urban planning and financial management
4. Transparency and Accountability
- E-governance initiatives
- Public disclosure systems
- Citizen charters
5. Enhanced Public Participation
- Strengthening ward committees
- Participatory budgeting
6. Infrastructure Investments
- Improved urban transport
- Water and sewage networks
- Smart city initiatives
Examples of Effective Urban Local Bodies
Ahmedabad Municipal Corporation
Implemented Bus Rapid Transit System (BRTS) and innovative public-private partnerships.
Pune Municipal Corporation
Recognised for advanced solid waste management practices.
Surat Municipal Corporation
Known for technology-driven governance and disaster management systems.
Conclusion
Urban Local Bodies are central to India’s urban governance architecture. The 74th Constitutional Amendment marked a transformative step in strengthening local democracy. However, the effectiveness of ULBs depends on meaningful devolution of powers, improved fiscal autonomy, enhanced administrative capacity, and active citizen engagement.
As India’s urban population continues to grow, empowered and accountable Urban Local Bodies will be crucial for sustainable and inclusive urban development.
