New Delhi, April 25 (IANS) NITI Aayog on Saturday launched a report that presents a focused roadmap to address structural urban challenges such as fragmented institutional arrangements, limited devolution of powers, weak financial autonomy, and diffused accountability.

Strengthening urban governance is, therefore, critical to enabling cities to perform effectively, said the report which emphasises the importance of strengthening institutional foundations alongside sectoral improvements and prioritises India’s million-plus cities as key economic centres contributing significantly to national growth.

Union Minister Manohar Lal Khattar released the report at an event attended by Urban Development Ministers from more than 10 states, reflecting broad-based participation and commitment to advancing urban governance reforms.

India’s urbanisation is central to achieving the vision of Viksit Bharat by 2047 and progressing towards a $30 trillion economy.

Cities are central to driving economic growth, fostering innovation, and generating employment.

The report, titled “Moving Towards Effective City Government – A Framework for Million-plus Cities” identifies persistent governance issues, including weak and fragmented leadership structures, constrained fiscal capacity, and capacity gaps that limit service delivery and urban performance.

It calls for a shift towards empowered city governments through a clear realignment of authority, responsibility, and resources at the city level. Such a transformation is essential for cities to function as effective engines of growth and responsive service providers.

Key recommendations of the report include strengthening city leadership through the introduction of a directly elected Mayor with a fixed tenure, supported by an empowered Mayor-in-Council system to ensure continuity, clarity, and accountability in decision-making and integrating urban service delivery by bringing key functions such as water supply, sanitation, and public transport under the purview of city governments to improve coordination and accountability.

The report also aims to enhance municipal finances by strengthening own-source revenues, ensuring more predictable and timely fiscal transfers through robust State Finance Commissions, and enabling access to market-based financing mechanisms such as municipal bonds.

It suggests to Undertake institutional restructuring by bringing multiple parastatal agencies involved in service delivery under city government oversight, with clearly defined roles and stronger coordination frameworks.

For effective implementation, the report recommends that states amend their Municipal Acts to reflect these governance reforms. It also calls on the Ministry of Housing and Urban Affairs to update the Model Municipal Law and provide guidance and incentives to support reform adoption.

Rajiv Gauba, Member, NITI Aayog, highlighted the salient features of the report, saying that the report was the outcome of extensive deliberations, evidence-based analysis, and a study of global best practices undertaken with a group of experts.

—IANS

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