The Planning Commission?s finding that municipal corporations and other city level agencies lack the institutional capacity, especially in terms of adequately skilled managerial staff, to implement large projects is a warning that should be urgently attended to, if India?s urban centres are to be salvaged. Oases of gleaming skyscrapers amidst large swathes of shanties do not do the country proud, even if a significant slice of India has become wealthy enough not to bother beyond a point. The depressing fact still is that there is not even one Indian city among the world?s top fifty rated on quality of life, and there is little hope of breaking into the list in the foreseeable future. Though around 1,100 projects worth Rs 43,000 crore have been sanctioned under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) over the last two years, much more funds would have to be pumped in, given that India would have close to one-third of the world?s 30 fastest growing cities, and that the country?s urban population will exceed half a billion in another 25 years. The current systems of tax collection, service delivery, planning and management are far too outdated to be able to cope. If the organisational challenge is not confronted now, we could end up with smouldering heaps of urban detritus.
One reason for the institutional slack is that urban governance has long been the preserve of state governments. Local bodies were empowered by the 74th Constitutional Amendment Act, but the legislation has not resulted in adequate devolution of authority. Agencies like urban development authorities, electricity and water boards, which deliver basic services, continue to function under state governments? directives. For the JNNURM to make a difference, urban local bodies must be equipped with appropriate skills. They need to raise resources on their own through instruments like municipal bonds, and so they need financial expertise and modern book-keeping methods. Their reduced dependence on government funds would also ensure a greater role for private infrastructure players in urban renewal. Overall, the better-run agencies would get more funding and show better results, and this would incentivise the rest of adopt sound practices. Though some steps have been taken, the pace of change is just too slow.
