NITI Aayog’s Rajiv Gauba advocates for granting greater financial and administrative powers to city governments, including directly elected mayors, to manage India’s projected urban population growth and strengthen urban economic hubs.
Empowering India’s Urban Governance
NITI Aayog Member Rajiv Gauba has called for greater powers and financial independence for city governments, stressing that India’s growing urban population will require major reforms in governance, planning and financing to support economic growth. Addressing the valedictory session of the 2nd National Urban Conclave, Gauba said, “We can’t run cities from state capitals.”
According to a NITI Aayog release, Gauba called for directly elected mayors with five-year terms, a Mayor-in-Council system and timely municipal elections to strengthen urban governance. He also urged states to transfer all 18 functions under the 74th Constitutional Amendment to urban local bodies, including urban planning, water supply, fire services and traffic management.
Addressing Urban Expansion
The push for reforms comes as India’s urban population is projected to rise from around 50 crore currently to 85 crore by 2050, with nearly half the country’s population expected to live in cities. Gauba said meeting the infrastructure, housing and basic service requirements of this growing population would require fundamental changes in how cities are managed.
Referring to the NITI Aayog and Ministry of Housing and Urban Affairs’ joint report, Moving Towards Effective City Governance, he stressed the importance of empowering city governments to improve service delivery and citizen participation.
Urban Financing and Regulatory Reforms
On urban financing, Gauba highlighted low municipal revenues and called for better property tax collection, improved user-charge recovery and greater transfer of funds from states to urban local bodies. He also called for reforms in building regulations and land-use policies to increase housing supply and reduce costs. These include easing restrictive floor area ratios (FAR), promoting mixed-use development and encouraging construction around transit hubs.
Gauba further urged states to adopt the Model Tenancy Act to expand affordable rental housing for migrant workers, industrial labourers, students and young professionals. He suggested that states introduce new municipal laws and that the Centre link support under urban development missions to the implementation of these reforms. The proposed changes aim to strengthen cities as economic growth hubs and support India’s Viksit Bharat 2047 vision. (ANI)
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