21th November, 2003
Ministry of Urban Development & Poverty Alleviation  


STATES URGED TO SPEED UP AMENDMENT OF THEIR MUNICIPAL LAWS

CENTRE MAY LINK DISBURSAL OF FUNDS OF VARIOUS SCHEMES WITH IMPLEMENTATION OF URBAN REFORMS BY STATES


A National Workshop on Model Municipal Law began here today to review the progress made by various state governments in the implementation of various recommendations of this model law. In his keynote address Secretary, Department of Urban Development Shri N.N. Khanna urged the state governments to have a close look at the working of the Urban Local Bodies and bring in the needed amendment in their Municipal Laws to give more autonomy to these bodies as envisaged in the 74th Constitution Amendment Act. He said that though this Constitution Act has completed a decade and urban local bodies have been delegated more responsibilities and functions, they have not been supplemented with adequate financial resources. "As a result, Urban Local Bodies are not able to perform their assigned functions in an efficient and effective manner and depend heavily on grants from higher levels of government," he added.

Shri Khanna said that the Model Municipal Law developed by the Ministry of Urban Development and Poverty Alleviation would assist local bodies in areas of accounting reforms, resource mobilization, levy of user charges and entry of private sector in service delivery. He expressed hope that the Model Municipal Law would help in enhancing the capacity of Urban Local Bodies to leverage public funds for development of urban sector and also in creating environment in which Urban Local Bodies can play their role more effectively and ensure better service delivery.

Shri Khanna said that the existing scheme of things cannot continue any longer and if we aggressively do not turn around the situation, quality of life in urban areas will deteriorate. He hinted that the government is contemplating to link disbursal of funds of central schemes like Accelerated Urban Water Supply Scheme, Integrated Development of Medium and Small Towns, etc., with the state governments initiatives in implementing urban reform agenda.

This one day workshop is being jointly organized by M/o Urban Development and Poverty Alleviation, National Institutes of Urban Affairs, Financial Institutions Reform and Expansion Project and USAID. Among others who spoke on the occasion were the Joint Secretary, Shri Rajamani , Mission Director of USAID, Mr. Walter North.