74 TH AMENDMENT ACT

INDIA 1992.

AND ITS EFECT ON URBAN

INSTITITIONS.

ADITYA A. PUNGAVKAR (09AR 6017)

INDIAN INSTITUTE OF TECHNOLOGY (kharagpur)
 74 TH AMENDMENT ACT

INDEX

CONTENTS PAGE NO
_______________________________________________________

1 URBAN LOCAL GOVERNANCE- CONCERN

2 DECENTRALISATION-A HISTORICAL OVERVIEW

3 74TH CON. AMENDMENT, 1992- POLITICAL, FUNCTIONAL &

FISCAL EMPOWERMENT

4 74TH AMENDMENT PROVISIONS.

5 PLANNING AT DECENTRALISED LEVEL

6 CASE STUDY-WEST BENGAL

7 ANALYSIS

8 CONCLUSION/ SUGGESTIONS

9 BIBLIOGRAPHY

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74 TH CONSTITUTIONAL AMENDMENT ACT:

amendment :it is the statement that is added to revise or improves a proposal or document .

WHY THERE IS A NEED FOR AMENDMENT?

The fact the constitution of india, though the longest written constitution in the world had not
elucidated the role of local self-governing bodies.

1 URBAN LOCAL GOVERNANCE- CONCERN

• Urbanization is progressing at a rapid pace due to various socio-economic factors.

• At present urban population is above 30% of total population in india.

• Deterioration of infrastructure and basic services in urban areas is taken place due to
migration from adjoining region.

• Per capita productivity is 7:2 in terms of urban to rural population.

1.1 NATIONAL DEVELOPMENT

• Ulbs hold the key to achieve national objective of social and economic development.

• The Ulbs have the responsibility to create environment for productivity.

• The govt's aim should be such that small and medium towns are developed to offload
burden on bigger cities as also to create intervening opportunity.

India decentralized power to strengthen local govt. through 74™ constitutional

amendment act' 1992.

2 HISTORUCAL BACKGROUND

The process to amend the constitution was initiated by the then prime minister rajiv
gandhi during 1989.Finally passed during December' 1992 and effective with effect from
April '1993. Since the urban development is the state subject, all the state was to enforce
the provision of above amendment through amendment of respective bye-laws of states
within a year.

74th constitutional amendment act' 1992 is aimed to strengthen ulbs through

devolution of power towards decentralization.
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2. 74TH CON. AMENDMENT, 1992- POLITICAL, FUNCTIONAL & FISCAL

EMPOWERMENT

2.1 POLITICAL EMPOWERMENT

74th con. Amendment provides political empowerment through wider representation from public,
planning adopting bottom-up approach, attention to local priorities and formation of ward
committee.

2.2 FUNCTIONAL EMPOWERMENT

Under functional empowerment provision is made to assign responsibility of 18 functions related

to town planning, poverty alleviation, slum development in addition to normal and routine
function, in terms of 12th schedule.

2.3 FISCAL EMPOWERMENT

74th con. Amendment directs creation of state finance commission (SFC) once in 5 year to
examine financial position of ULBs and to submit reports. SFC would suggest improvement in
municipal financial management, sharing of revenues and further generation.

2.4 AIM

The aim and objectives of 74th con. Amendment is to:

• Set up institutional mechanism to facilitate decentralization
• Demarcate role of ULBs &specify their function
• Specify areas deemed as urban to include new urbanizing areas.
• Ensure representation of pubic specially deprived class/woman
• Ensure that ULBs are not superseded.

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3.0 APPLICATION AND EXPERIENCE OF EACH OF THE ARTICLES

74,HCONSTITUTIONAL AMENDMENT ARE APPENDED BELOW:

3.1 CONSTITUTION OF MUNICIPALITIES

It is a mandated criterion which provides direction for creation of three tier body based on
number of population, population density, revenue generation and economic activity. Following
is the population criteria which were adopted in 65th constitutional amendment.
______________________________________________________________________________
__
Type Population Description

Nagar panchayet 10,000-20,000 Fringe areas having

semi urban Characteristics

Municipal Council 20,000-3,00,000 Medium size towns

Municipal Corporation Above 3,00,000 Large towns/ cities

____________________________________________________________________

Majority of state govt, constituted and classified towns without considering the above population
criteria and overlooked the other factors. As example Rajasthan considered population of 5 lacs
for creation of City Corporation and Maharastra considered 25,000 for municipal council.

3. 2. COMPOSITION OF URBAN LOCAL BODIES

As per 74thconstitutional amendment all seats are to be filled by people's representatives through
direct election to bring true democracy. There is provision for inclusion of MLA and MP in the
body. Number of representatives is to be based on population size. There is also provision to
include persons having special knowledge and experience in municipal administration.
A very few states have included persons of knowledge on administration.

3. 3. WARD COMMITTE - DECENTRALISATION

The amendment envisages creation of Ward Committee through division of Municipality having
population more than 3 lacs into territorial constituencies known as Ward for better linkages with
citizen. The ward committee may consist of one or more wards. Function, structure and
formulation have been left to laws of State. While Kerala has created Ward Committee for every
ward, Maharastra has grouped the wards. West Bengal has constituted ward committee
irrespective of population size of municipalities.

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3. 4. RESERVATION OF SEATS-SC/ST/WOMEN
The 74th amendment provides for equal representation in decision making in proportion to total
population. While one third of the total seats would be reserved for woman elected
representatives there will be adequate representation from SC and ST category of people.All the
states have followed this provision.
3.5 DURATION OF ULBs & ELECTION
Each elected board of municipalities would be in operation for 5 YEARS. However in case of
dissolution election would be held within 6 months. This has prevented prolonged suppression of
ULBs. The election would be conducted in every 5 years under direction and control of State
Election Commission. Selection of mayors and Chairman would be made by State from
councilors.
There is no mention of standard or qualification of candidates.

3.6 URBAN FINANACE- DEVOLUTION OF SOURCE OF REVENUE

THROUGH SFCs
The 74th amendment directs state governments to constitute state finance commission in line with
central finance commission once in 5 years. SFCs responsibity is to decide on sharing of state's
tax, duties, tolls between state and municipalities and also distribution between municipalities of
the state. It would suggest for improvement in financial position.
Though all the states have established SFCs delay in implementation of SFCs suggestion are
observed by most of the states. There is also necessity for capacity building to comply SFCs
guidelines. It is also important to maintain balance between the Function and Finance. Many of
the States are yet to adopt new approaches to levy tax etc. to improve financial base.

3. 5. FUNCTIONAL DOMAIN-12™ SCHEDULE

The state legislations to assign 18 functions to ULBs as per 12th schedule related to planning,
infrastructure, public health, solid waste, fire service, environment, proverty alleviation,
amenities, culture, education, aesthetic etc. The details are narrated below:
1) Urban Planning including town planning.
2) Regulation of land use and construction of building.
3) Planning for economic and social development.
4) Roads and bridges.
5) Water supply for domestic, industrial and commercial purposes.
6) Public health, sanitation conservancy and solid waste management.
7) Fire services.
8) Urban forestry, protection of the environment and promotion of ecological aspects.9)
Safeguarding the interests of weaker sections of society, including the handicapped and mentally
retarded.
10) Slum improvement and up gradation.
11) Urban poverty alleviation.
12) Promotion of cultural, educational and aesthetic aspects.
In many states functional domain of municipalities appears to be confused. It is not clearly
mentioned whether all the functions to be assigned to municipalities irrespective of category.
Details regarding distribution of function between municipalities and other state agencies are
also not spelt out. There is need to match between the Function and Finance.

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5. PLANNING AT DECENTRALISED LEVEL

In order to decentralize planning activity the 74th amendment directs for formation of District
planning committee and Metropolitan planning committee

5. 1. DISTRICT PLANNING COMMITTEE

District planning committee is to be set up to integrate planning for urban and rural areas. 4/5th of
the representation shall be from elected members with representation from rural and urban areas
on proportionate basis. Public representatives are expected to provide real needs, fix priorities,
formulate policies of people. The responsibility of DPC is here in under:
• To consolidate plan prepared by Panchayets and municipalities
• To prepare draft development plan considering economic development and social justice.
• To look after common interest between Panchayets and municipalities including spatial
planning.
• To look after sharing of water and physical resources
• To integrate development of infrastructure.
• To available of resources and finances.
• To promote integrated and participatory planning
• To recommend socio-economic district development plan to state

Only 10 states and 2 UTs have constituted the DPC. West Bengal, Tamilnadu, Kerala,
Karnataka, Sikkim are example. In Madhya Pradesh power of administration and financial
sanction is vested with DPC.
The proportionate proportion of Public representatives as prescribed in the act may create
disparity in urban and rural areas as urban areas require greater attention. It is necessary to have
relationship between DPC and State planning board to make long term perspective plan of the
state. With the constitution of DPC, restructuring of state department and agencies is needed for
better planning and development under DPC. However it is necessary to ensure that DPCs are
properly equipped with professionals from various disciplines and other resources. There must
be a proper relationship and coordination between DPCs and ULBs with respect to resource
mobilisation and implementation.

5.2 METROPOLITAN PLANNING COMMITTEE

Metropolitan planning committee is to be set up with the similar objectives DPCs at metropolitan
cities ( 35 Nos) having population more than 10 lacs. 2/3th of the representation shall be from
elected members with representation from rural and urban areas on proportionate basis. MPCs
shall act with overall objectives and priorities of Gol/ State and investment need.
While only West Bengal has constituted the MPCs namely Kolkata metropolitan Committee,
Maharastra is in the process of setting up the committee.
With the constitution of MPC, there is a need to define role of development authorities, state
depts like roads, PHE, water supply, Housing Board. There may be also conflict between DPC
and MPC in respect of jurisdiction. Since the MPC is a new body it is required to be equipped
with professionals like town planners for preparation of spatial planning. Most of the state is
required to amend their town and country planning act.

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As per the UDPFI guidelines formulated Govt, of India following responsibities are made in
addition to above:
•Formulate development goals , objective sand policies
•Perspective plan within 5 years
•Development plan within 2 years
•Metropolitan area annual plan
•Consult professional organizations like CII.FCCI for monitoring and resolve conflict.

DECENTRALISATION UPTO THE LEVEL OF WARD

COMMITTEE

STATE AUTHORITY

METROPOLITAN PLANNING COMMITTEE OR

DISTRICT PLANNING COMMITTEE

MUNICIPAL CORPORATION/ MUNICIPALITY

WARD COMMITTEE

COMMUNITY DEVELOPMENT SOCIETY

BOTTOM- UP APPROACH

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IMPACT OF THE 74 TH CONSTITUTIONAL AMENDMENT ACT 1992

Number of Urban Local Bodies in each State Table given below provides state-wise information
on the number of urban local bodies (ULBs) according to their civic status as on October 2004.

The data show that there are a total of 2850 ULBs in the 27 states and one UT of India. Uttar
Pradesh has the highest number of ULBs, i.e., 628, which is followed by Maharashtra (247),
Karnataka (222), etc. The total number of Municipal Corporations, Municipal Councils and
Nagar Panchayats is 117, 1513 and 1220 respectively. Maharashtra has the highest number of
corporations, i.e., 22, which is followed by Madhya Pradesh and Uttar Pradesh. Data on
municipal councils show that their numbers are high in Maharashtra, Uttar Pradesh, 4

Tamil Nadu, Gujarat, Karnataka, West Bengal and Andhra Pradesh. The number of nagar
panchayats is high in Uttar Pradesh and Rajasthan.

The 74th Amendment Act provisions have not been applied to certain Scheduled Areas and the
Tribal Areas of India.

Number of Councillors, Number of Women Councillors, Number of Councillors belonging to

SC/ST/BC Category

It is obvious that the number of councillors, women councillors, and councillors belonging to
SC, ST, and BC category in the three types of ULBs is high in the larger states of the country.
The data confirm the fact that the weaker sections of the society have been associated with the
ULBs.

Number of SC/ST Chairpersons State-wise data/information on number of SC/ST

chairpersons are given in Table.

It may be mentioned that such data are available for only 9 states of the country. The data show
that their numbers are high in the southern states of Tamil Nadu and Karnataka. It is also noted
that in all states, the number of SC chairpersons is high as compared to the ST chairpersons.

Elections to Municipalities

State-wise data on elections to municipalities are given in Table . It is noted that except the states
of Chhatisgarh and Jharkhand, elections to municipalities in the other states are being held
regularly. In the case of some large states (such as Gujarat, Karnataka, Madhya Pradesh,
Maharashtra, Rajasthan, etc.), it is observed that the elections are held in stages due to a large
number of ULBs.

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Functioning of District Planning Committees and Metropolitan Planning Committees

State-wise information on the number and composition of district planning committees

(DPCs) is given in Table . The data show that DPCs have been constituted in a total of 10
states of India. These include Bihar, Chhatisgarh, Haryana, Karnataka, Kerala, Madhya
Pradesh, Orissa, Rajasthan, Tamil Nadu and West Bengal. The metropolitan planning
committee only formed in W.B.

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6 CASE STUDY : WEST BENGAL

ELABORATE ON FOLLOWING PROVISIONS UNDER AMENDMENT ACT.

• WARD COMITEE.

• RESERVATIONS FOR WOMENS.

• PLANNING COMMITTEES.

• A)METROPOLITIAN PLANNING COMMITTEE

• B)DISTRICT PLANNING COMMITTEEE.

ADMINITRATIVE STRUCTURE

• MUNICIPAL CORPORATIONS 6

• MUNICIPALITIES 112

• NOTIFIED AREA AUTHORITIES 4

• TOTAL NO OF ULBS 127

6.1 WARD COMMITTEES

Various modes of community participation one of them is ward committee.

TRADITIONS:

• Residents’ committees in newly developed towns at the spontaneous initiative of the

citizens — Salt Lake.

• Chandananagar Municipal Corporation: Citizens’ Committee with its branches at the

ward level formed in 1950 — still very active—they work together.

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CAMPOSITION

• Members nominated: by the municipality and the councillors

• Preference being given to the teachers, engineers, sportspersons, doctors and actors

• The elected councillor is the chairperson.

FUNCTIONS.

• The wcs to prepare plans and priorities schemes annual and half yearly plans to be
integrated into the district plan document.

• Wide range of supervisory and monitoring functions within the ward, such as, detection
of violation of the various provisions of the act, unlawful construction, public nuisance.

• Collection of property tax.

• Maintenance of roads, parks .

• Some services such as the birth and death certificates delivered.

• House-to-house distribution of water tax bill.

• Wcs with the co-operation of the citizens being involved in solid waste management.

FINDINGS.

• Some of the councillors hold meetings in their own houses.

• The use of the office: the office timings in the mornings and in the evenings senior
citizens do it.

• In some ulbs the wcs get some money from the fund placed at the disposal of the
concerned councilors.

The meetings of the wcs held regularly. meetings are usually attended by the three-fourths
of the issues discussed relate primarily to the services and developmental activities in the
wards.

PROBLEMS

• Many of them are yet to realise the constitutional – legal status of the body.
• Lack of training of a large majority of the members.

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• Deficient participation of women even in women-headed wcs.

• Lack of effective linkage between the wcs and the municipality.
• The absence of wcs office.
Non-availability of members to the local citizens in specific public place.

6.2 RESERVATION FOR WOMEN

The 74th constitution amendment act, 1992, has given constitutional status to urban local
bodies (ulbs) in india. the act provides for

Reservation of one-third elected seats for women in ulbs and envisages an active role for
women in local governance.

Women with no experience of participating in political life before is now playing a major
role.

The ministry of urban development, government of india, provides funds to selected

training institutions across the country for training of wers.

FINDINGS

• The field study conducted indicates that nearly 87 percent of women Representatives
got elected to ulbs for the first time

• About 12 percent got elected for the second time.

• About two-thirds of the wers were housewives before they entered the political arena.

EDUCATION

• Almost 30 percent of them were noteven educated upto 10th class

• 7 percent were completely uneducated.

• Over 37 percent of wers were educated up to 10-12-class level.

• Nearly one-fifth of them had done their graduation.

• 6 percent had post-graduate qualifications.

AGE GROUP.

• More than 50 percent the wers were in the age group of 36-50 years

• One-fifth were older and one-fifth were younger.

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• Almost 95 percent of the wers were married and so had family responsibilities.

• Most of the newly elected women councillors need training to orient them to their roles
and responsibilities.

• A little over one-third WERS had undergone training only once.

• They are often influenced by the opinion of the male members.

• The main reason behind is majority of women are not economically independent.

6.3 METROPOLITIAN PLANNING COMMITTEE.

• This state has made the greatest strides in establishing an MPC.

• West Bengal enacted the West Bengal Metropolitan Planning Committee Act, 1994.

CAMPOSITION

• Two-thirds from the elected members of the 41 Municipalities

• 100 Chairpersons of the village councils in the Kolkata Metropolitan Area (KMA).

• One-third of committee is made up of nominated representatives of the Government of

India and the state government and of organizations and institutions relating to urban
development and infrastructure.

FORMATION

• Around 2001-2, Kolkata Metropolitan Planning Committee was formed and started
deliberating. In this exercise KMDA has been made the technical secretariat.

FUNCTION

• Draft development plan for the metropolitan area as a whole by consolidating the
development plans for its constituent municipalities and gram panchayats (village
councils).

REGIONS FOR DEVOLOPEMENT PLAN

1. Kolkata metropolitan region

2. Intermediate metropolitan region

3. inner metropolitan region

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4. Kolkata metropolitan area

5. Metro core

6. CBD

ECONOMIC ASPECTS OF DEVOLOPEMENT

Primary Sector

• limited production possibilities.

• There is a good demand in KMA for fruits grown like guava, mango, litchi, melon.

• Floriculture.

Secondary Sector .

IT & ITES ,foodprocessing ,jute ,garment apparel, Metal based and Engineering , Leather
Processing and Leather Products , Chemicals, Plastic and Toy Manufacturing .etc

Tertiary Sector

Unlike secondary sector, the tertiary sector activities keep on growing where there is a planned
development.

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kolkata metropolitan development authority (kmda)

under provisions of the west bengal town and country (planning & development) act, 1979.

it is the agency of

• city planning,

• new areas and townships,

• develops physical infrastructure

• provide basic services like water, drainage, and waste management.

• besides these, kmda is also the technical secretariat to kolkata metropolitan planning
committee

Under the jawaharlal nehru national urban renewal mission the kmda has become the nodal
agency for,

• urban infrastructure and governance.

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• basic services to the urban poor.

MPC assisted by adequate administrative supportsectoral committees .

five sectoral committees in the fields of

• Drainage, sewerage and sanitation.

• Traffic, transportation, railways, waterways.

• Education, health, employment & industry.

• Environment, wetlands, urban amenities & heritage.

• Water supply .

Were formed to facilitate the working of kmpc.

critics:

states hesitancy to allow the constituent local bodies to elect at the chairperson of the mpc

in west-bengal, the state chief minister is the ex-officio chairperson of the kolkata mpc

6.4 District planning committee.

in the light of the provisions of articles 243zd of the constitution of india, there shall be
constituted in every district a district planning committee

IN WEST –BENGAL, THERE ARE 18 DPCS.

COMPOSITION

• elected members of local bodies

• appointed members of state government.

• sabhapati of z.p.

• district magistrate.

FUNCTIONS OF THE DPC

To take up integrated planning for urban and rural areas in the district preparing plans with
regard to

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• common interests between and muncipaltie panchayats as.

• spatial planning

• sharing of water and other physical natural resources.

• the integrated development of infrastructure and environmental conservation .

• extent and type of available resources ,finance.

THE PLAN PROJECTS THE FOLLOWING SECTORS AS PRIORITY SECTORS:

1. AGRICULTURE & ALLIED SECTORS

2. RURAL DEVOLOPEMENT
3. HEALTH & EDUCATION
4. WATER & SANITATION
5. ROAD DEVELOPMENT
6. IRRIGATION
7. ENERGY
8. FORESTRY
9. SOCIAL-, AND SC/ST WELFARE
10. RURAL DEVELOPMENT AND NREGS
11. URBAN DEVELOPMENT

The annual plan projects the following sectors as priority sectors:

AGRICULTURE & ALLIED SECTORS

horticulture, soil & water conservation, animal husbandry, .fishery, agricultural research, storage,
rural development , agriculture marketing, subsidy etc. (jute ,paddy)

RURAL DEVOLOPEMENT :

employments ,land reforms, and others like energy ,roads, social services.

SPECIAL AREAS PROGRAMMES

(a) hill areas development programame (b) other special areas like

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i) border area development programme ii) backward region grant fund.

IRRIGATION & FLOOD CONTROL :

major and medium irrigation 2. minor irrigation 3. command area

development.(ground and surface water)

INDUSTRY AND MINERALS ;

1.village and small enterprises i) small scale industries ii)handlooms/power looms iii)handicrafts
iv)sericulture/coir/wool v)food processing industries.

TRANSPORT .

1Minor ports 2. civil aviation 3. roads and bridges a) rural roads ( pmgsy ) 4. Road transport. 5
inland water transport
SCIENCE,TECHNOLOGY & ENVIRONMENT .

1 Scientific research 2. it& e-governance(swan, national e-governance plan, computerization of

municipalities, land records, agriculture, education

GENERAL ECONOMIC SERVICES .

Secretariat economic services 2. tourism 3. census, surveys & statistics 4. civil supplies

SOCIAL SERVICES.

1.General education a) elementary education b) literacy / adult education c) secondary

education

6.5 CENSUS COMPARISONS.

1991 64%

2001 59%

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URBAN POPULATION IN

census towns increased from 137 in 1991 to 253 in 2001.

percentage of urban population in class1 town decreased from

81.7% ON 1991 TO 75% ON 2001.

7 .0 ANALYSIS.

Provision for every area to have a local body.

Conducting regular elections and formations of finance commissions to review financial status
of these local bodies.

The act is significant for the planning of new towns and the cities.

Urban planning including town planning appears to be the top of the list.

The functions in the 12 th schedule include

• regulation of land use

• construction of buildings

Hence planned development of city and town becomes major function of local bodies which
earlier were involved in maintenance of services and facilities.

Urban planning as field was not listed in any list of constitution it has now found a place under
the provision of this amendment and should be regarded as achievement for field.

Local bodies are the peoples bodies and hence planning and development will be according to
wishes of the people.

Provisions for planned development are not restricted to cities and towns only .the DPC are set
to for planning at district level.

By creating DPC the hierarchy has been created in the process of making development plans.

The 74th amendment of the constitution of india introduces many enabling features to bring about
effective local governance. but as things have turned out, several important parts of the
constitutional amendment are not being implemented in spirit. e.g. formation of MPC

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LACK OF POLITICAL WILL AND AWARENESS

e.g. in case of MPC insecurity from the state, that the MPC may acquire its own political identity
and become a counterpoint to the state government.

The urban population is unaware of the importance of their vote and has weak participation in
the political process.

8.0 CONCLUSION.

THIS IS NOT TO SAY THAT IT IS ENTIRELY A GOOD PICTURE,CURRENTLY IT IS JUST

THE PRESENCE OF THE RIGHT CHEMICALS.FOR ANY CHEMICAL REACTION TO BE
RIGHTLY SUCCESSFULCONTROLLED CONDITIONS ARE EQUALLY IMPORTANT.

10. BIBLIOGRAPHY/ REFERENCE:

10.1JOURNALS

1 MESRAM, LEGAL PROVISION TO 74 ™ CAA ITPI JOURNAL. SEPTEMBER

2 SENGUPTA, 74™ CA BILL, ITPI JOURNAL, SEPTEMBER 1993 PN 5 9

3 KULSHRESTHA IMPACT OF 74TH CAA,ITPI JOURNAL,SEPTEMBER 1993.

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4. SEMINAR PAPERS ON 73TH & 74TH CAA, ITPI-BIHAR JUNE 1999

5. VIDYARTHI, 74™ CAA & PRESENT GROWTH, ITPI JOURNAL SEPTEMBER

2004, PN -65-69

6. MESRAM, 74™ CAA -CHANGES NEEDED, ITPI JOURNAL, MARCH 1994 PN -

1-7

7. IMPACT ASSESSMENT OF 74™ CAA, SHELTER MAGAZINE (HUDCO), APRIL

2005, PN -85-132

8. PLANNING PROVISION UNDER 74™ CAA, UDPFI GUIDELINES, MOUA&E,

AUGUST 1995, PN-2-4

10.2. INTERNET SITE

1. MINISTRY OF URBAN EMP AND PA, GOI

2. KOLKATA METROPOLITAN DEV. AUTHORITY
3 GOVT. OF WEST BENGAL
4. CREDAI
5. HUDCO
6. Census of India

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