ABOUT THE BOOK

In the face of rapid urbanization and globalization, urban areas in India are into a metamorphosis experiencing complex changes that demand effective response from the institutions governing it. The only bright spot appears to be the reforms agenda initiated by the Constitution 74th Amendment Act, 1992 which provided opportunity for empowering and strengthening exercise. The inexplicable neglect by the state governments however is the key background contributory factor. The strategic linking of the financial support with the urban reforms has been thus initiated through various centrally sponsored schemes. The volume highlights the urban reform scenario in a realistic way. It covers the undergoing reforms in critical areas such as urban planning, governance, property tax, institutionalized participative decentralized planning and governance, housing for the urban poor, urban land, transport etc. The discussion has been supplemented by thematic case studies from many states.

ABOUT THE AUTHOR

Prof. V. Gnaneshwar, M.A., Ph.D., has accumulated more than thirty years of experience as researcher, consultant and trainer in the field of urban development and governance. His long association with urban development sector as a professional has earned him several academic accolades. He Gnaneshwar has to his credit about fifty research papers published in various reputed national and international journals and books. He has guided about half a dozen of Ph.D. scholars.

Dr. U.B. Singh, M.P.A., Ph. D. , D.Litt. has served the discipline public administration, especially the urban sector for about three decades with the University of Lucknow and Mizoram Central University. He is a prolific writer and has authored about a dozen books on different themes. He has to his credit more than two dozen research studies; about fifty papers published in reputed journals; states unified municipal laws, policies, rules, etc.

CONTENTS

List of Tables................................................................................................ 9
        List of Figures............................................................................................ 11
        List of Charts.............................................................................................. 13
        Preface....................................................................................................... 15
        Abbreviations............................................................................................. 23

1.    Urban Policies and Development Strategies in India.................... 29
Introduction • The Metropolitan Challenge • Urbanisation Policies in India • Urban Development Strategies • Urban Development Strategies of the Five Year Plans • Sector Specific Policies • Housing and Shelter Policies • Urban Land Policies • Urban Sanitation Policy • Solid Waste Management Policies • Policies Relating to Urban Poverty • National Slum Policy • National Policy on Street Vendors • National Urban Transport Policy • Urban Policies – Perspectives and Paradoxes • References.

2.    Urban Reforms in India - Emerging Scenario................................ 69
Introduction • Urban Reforms in the Pre-economic Reform Period • Urban Reforms in the Economic Reform Period • Aid-driven Urban Reforms  • UNICEF • World Bank • Asian Development Bank (ADB) • United States Aid for International Development (USAID) • Department for International Development (DFID) • Emergence of the National Urban Reforms Agenda • 74th CAA-The Landmark in Urban Reforms • Central Guidance for Urban Reforms • Accessing the Capital Market • Pooled Financing for Municipal Infrastructure • Foreign Direct Investment (FDI) • Increasing the Pace of Reforms - Urban Reforms Incentive Fund (URIF) • Guiding the Public Private Partnerships - PPP Guidelines • Linking Infrastructure Development With Reforms • The Central Finance Commissions’ Approach • Service Level Benchmarking for Improving Service Delivery • Performance Parameters for Basic Urban Services • Citizen Charter for Ensuring Quality Urban Services • Citizen Grievance Redressal Mechanism • Service Centre/Facilitation  Centre • Emergence of Urban Financial Institutions in India • Looking Ahead • References.

3.    Reforming Urban Governance........................................................ 107
Introduction • Historical Background • Types of Municipal Governments in India • Cantonment Boards • Notified Area Committees • Town Area Committees • Form of Municipal Government • Corporation Form • Municipality Form • Cabinet Form • Committee Form • Decline of Municipal Government • Constitution 74th Amendment Act- The Harbinger of Urban Governance Reforms • Functional Domain of the Urban Local Governments • Urban  Governance • Action Areas • E-governance Reforms in Municipalities • Mission Mode Project on E-governance in Municipalities • The E-governance Initiatives in Municipalities • Towards Strengthening of Urban Governance  • References.

4.    Decentralised Participatory Urban Governance........................ 133
Introduction • Institution of the Ward Committees • Revamping the Ward Committee System • Andhra Pradesh • West Bengal • Bihar • Jharkhand • Uttar Pradesh • Madhya Pradesh • Area Sabhas • Andhra Pradesh • Bihar • Jharkhand • Madhya Pradesh • Chhattisgarh • The Greater Hyderabad Municipal Corporation (Ghmc)-A Case Study • Improving the Ward Committee System • References.

6.    Property Tax Reforms...................................................................... 163
Introduction • Reforming Property Tax Administration • Standardisation of Assessment • Factors of Standardisation • Plinth Area Based Property Tax — Andhra Pradesh Model • Features of the Reformed Model • Assessment  Methodology • Impact and Sustainability of the Reform • Plinth Area Based Property Tax—Tamil Nadu Model • Capital Value Based Property Tax—Karnataka Model • Assessment Methodology • Area-based Model—Bihar  • Area-based System—Uttar Pradesh • Plinth Area-based Model—Jharkhand • Built-up Area Basis— Madhya Pradesh • Self Assessment System • Self-assessment Scheme in Karnataka • Limitations of Self Assessment System • Reforming Property Taxation in Kanpur Municipal Corporation • Goal of the Reform Initiative • Implementation Strategies • Outcome of the Reform • Achievements of Reform • Greater Hyderabad Municipal Corporation (GHMC)–A Case • Brihat Bengaluru Mahanagara Palike (BBMP) System • Integrated Property Tax Information System—Karnataka Initiative • Impact of the GIS Mapping • Improving Collection Efficiency • Effective Collection Management • Measures to Improve Collection Efficiency • Amending the Rent Control Acts – The Case of Karnataka • Looking Forward • References.

6.    Municipal Accounting Reforms....................................................... 205
Introduction • The Accounting System—Conceptual Overview • Funds as Accounting Entities • Account Book-keeping—Single Entry and Double  Entry • Basis of Accounting—Cash Basis and Accrual Basis • Accrual  System of Accounting • Benefits of Accrual System of Accounting • Municipal Accounting System in India—Need for Reform • Municipal Accounting Reforms in India • Integrated Accrual Based Double-entry Accounting  and Financial Management System in Greater Hyderabad Municipal  Corporation • E-governance Solution for Integrated Accrual Based Double Entry Accounting • Limitations • Accrual Based Accounting System in Vijayawada Municipal Corporation • Accounting Reforms in Chennai  Municipal Corporation • Treatment of Income • Treatment of Expenditure  • Fixed Assets • Others • Fund-based Accounting in Brihat Bangalore Maha-nagara Palike • State Level Initiatives • Tamil Nadu Accounting Reforman: An Experience • Fund-based Accounting System—Karnataka Initiative  • Rationale and Features of Fund Based Accounting • Implementation of Fund-based Accounting in Municipalities • Municipal Accounting Reforms in Bihar • Accounting Reforms—Towards Integrated Solutions • References.

7.    Recognising Urban Land as a Resource........................................ 235
Introduction • Urbanisation and the Critical Issue of Land • Urban Land Policies in India • Legal and Administrative Aspects of Urban Land • Potential of Urban Land as Resource • Regularisation of Unauthorised Developments • Land Monetisation Method • Use of Far as A Resource • Impact Fees • Auctioning of Urban Land • Land Management Approaches to Meet Land Requirements for Urban Housing • Sustainable Framework for Land as  Resource • References.

8.    Reforming Urban Planning ............................................................. 255
Introduction • Land Use and Development Control • Limitations of Master Plan Approach • Conversion of Land Use from Agriculture to Non-agricultural Uses • Development Controls • Building Regulations • Building Code and Model Building Bye Laws • Building Regulation Reforms in Andhra Pradesh • Impact of FAR or FSI • Sustainable Urban Planning • The Problem of Unregulated Urban Growth • Need for Sustainable Urban Growth • Urban Planning and Sustainable Development • Energy Conservation Building Code • Griha Rating for Integrated Habitat Assessment (GRIHA) • Institutional Aspects • Reforms to Strengthen Municipal Role in Urban Planning • Peri-urban Growth and Role of Urban Development Authorities • Inter-organisational Coordination • Reforms in Building Permission Process • Single Window Approval System (SWAS) • Bengaluru—Automatic Plan Sanction  • Indore—Automatic Building Plan Approval System • Pune—Automated Building Plan Approval • Tracking of Unauthorised Constructions • Urban Planning and Urban Development--the Missing Link • District/Metropolitan  Planning Committees : Yet to Take Off • Towards Strengthening of Urban Planning • References.

9.    Housing the Poor-Shelter Reforms in India................................. 285
Introduction • Housing Shortage in India • Urban Housing Policies in  Indian-An Overview • Housing Policies in the Post-independence Period (1950-1970) • Housing Policies in the Urbanisation Period (1970–1990)  • Housing Reforms in the Economic Reform Period (1990-2005) • Housing Reforms in the JnNURM Era (2005-2015) • Urban Statistics for HR Assessment (USHA) • Affordable Housing in Partnership • Rajiv Awas Yojana to Achieve Slum Free India • Housing Reforms in Post-JnNURM Period (2015 Onwards) • Atal Mission for Rejuvenation and Urban Transformation (AMRUT) • Smart Cities Mission • Housing for All (HFA) – Prime Minister’s Awas Yojna (PMAY) • Slum Development—the Priority Sector • Issues and Predicaments • Housing Finance and Access of Credit for Low Income Housing • Tax Incentives • Interest Subsidies to Expand Credit • Other Financial Instruments • Land—the Critical Element in Low Income Housing • ULCRA - A Failed Experiment • Land Acquisition—A Cumbersome and Socially Sensitive Process • The Strategy of Reservation of Land for the Poor • Resolving  Land Related Problems • The Concept of Affordability • Legal Constraints  • Perspectives and Prospects • References.

10.  Reflections and Way Forward......................................................... 325
Introduction • Reflections on Urban Policy Development • Emerging Policy Perspectives • Environmental Concerns and Sustainable Habitat • Inclusive Cities • Framework of Inclusive Cities • Role of International Agencies  • National Urban Reform Agenda • Revisiting JnNURM • Learnings from JnNURM • Urban Reforms—Fast Track but Slow Motion • Reshaping  Strategy • Atal Mission for Rejuvenation and Urban Transformation (AMRUT) • Smart Cities Mission • Future Urban Vision and Way Forward • References.

Index     353

Table 1.1   :   Urbanisation Trends in India................................................ 30
Table 1.2   :   Growth of Million Plus Cities in India................................ 31
Table 1.3   :   Thrust Areas and Initiatives in Five-Year Plans................ 41
Table 2.1   :   Reform Agenda under AMRUT............................................ 88
Table 5.1   :   Multiplying Factors for non-Residential Buildings........ 177
Table 5.2   :   Rate of Property Tax............................................................ 177
Table 7.1   :   Rates of City Wide Impact Fee in Andhra Pradesh......... 247
Table 7.2   :   Details of Lands Sold by HMDA by Open Auction........ 248
Table 9.1   :   Housing Shortage according to Income Groups.............. 286
Table 9.2   :   Housing Shortage (in millions).......................................... 287
Table 9.3   :   Housing Strategies and Initiatives in India....................... 301
Table 9.4   :   Affordable Housing Parameters......................................... 315

Figure 2.1 :   Performance Improvement Framework under
SLB Scheme............................................................................. 95
Figure 5.1 :   Components of Property Tax Reforms ............................. 166
Figure 5.2 :   Method of Standardisation of Assessment ....................... 168
Figure 5.3 :   Methodology of Improving Collection Efficiency                         196

Chart 3.1   :   Process of Urban Governance............................................. 121
Chart 3.2   :   Tenets of Good Urban Governance.................................... 122
Chart 6.1   :   Institutional Arrangements for Accounting
Reforms in Karnataka                                                                          231