New Delhi: Dr. M. Ramachandran, Secretary, Ministry of Urban Development has urged Urban Local Bodies (ULB) today to move away from dependence on budgetary sources on higher level of governments and access funds from the capital market to fund projects relating to urban development and infrastructure.

He further stated that ULBs have to become viable entities and provide good quality services to citizens. Dr Ramachandran stated this while delivering the valedictory address at the 'Closure Workshop' on “Capacity Building for Decentralized Urban Governance”, jointly organized by Ministry of Urban Development and United Nations Development Programme, here today. The Ministry of Urban Development has partnered with the UNDP in this project to implement selected reforms in sixteen selected cities of four states namely Kerala, Orissa, Rajasthan and Uttar Pradesh. The project aims at making urban local bodies in the country self sufficient entities that respond to citizen's needs. It will also help the cities in implementing two important reforms i.e. the accounting reforms and the property tax reforms, apart from getting City Development Plans (CDPs) prepared, getting ULBs credit rated and creating citizen facilitation centres.

Expressing pleasure at the achievement of targets under this project the Secretary mentioned that City Development Plans have been prepared for the identified cities. Opening balance sheet under the accounting reforms has been prepared. Two rounds of training programmes have been completed providing training to around 500 officials and elected representatives of urban local bodies. Credit Rating has also been completed for 7 ULBs. He said that Property Tax Reforms which is one of the important reforms has been implemented in 10 ULBs. In respect of Rajasthan, this reform has been implemented by the State Govt. from their own fund. 24 Citizen Facilitation Centres have been set up in the concerned ULBs and are being operationalised, he added.

The Secretary further mentioned that In order to cope with massive problems emerged as a result of rapid urban growth, it became imperative for the Government to draw up coherent urbanization programme to implement urban development project in cities on mission mode. To this end, the Government launched the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). He said that the programme has provided a platform to urban local bodies to change. Along with providing huge financial support for infrastructure, it has ushered in an era of reforms which is likely to make urban local bodies more accountable, transparent, efficient and effective. Upon implementing the reforms, the urban local bodies are expected to become vibrant and self-sustaining entities capable of providing good quality of life to all its citizens, including the disadvantaged.

The Secretary informed that State of Uttar Pradesh have taken a decision to implement the Double Entry Accounting System not only in four municipalities identified under the UNDP Project but in all the cities of the State. The State has also approved the State Municipal Accounts Manual to help municipalities to switch over to Double Entry Accounting System. He also mentioned that State of Orissa has also committed to take up these reforms at a wider canvas in other municipalities to make them sustainable in long run. He expressed hope that other States will also follow the same foot print to enable urban local bodies to become self-sustainable and assured that the Ministry will continue its efforts in developing the capacity of Urban Local Bodies. He informed that Ministry has budgeted about Rs. 50.00 crores this year for capacity development and encourages all non-JNNURM cities to come forward to access these funds. The guidelines for accessing these finds is being finalized.

Shri Ramachandran added that in order to enable municipal bodies to transform, the Ministry of Urban Development has developed and circulated the Model Municipal Law, National Municipal Accounts Manual and Model Training Module for Accounting Reforms. The Ministry has recently launched Mission Mode Project on e-Governance in Municipalities. Initially this project will be implemented in 35 cities with million plus population and the funding will be provided under the JNNURM component of capacity building. He further added that depending upon the success of implementation in 35 cities, e-governance initiatives will be implemented in other cities. The Ministry is also providing financial assistance for training women elected representatives. The Ministry has revised and circulated the Guidelines for Tax Free Municipal Bonds in consultation with the Ministry of Finance.

Highlighting the 6th Report of Administrative Reforms Commission on Local Governance which has recommended several measures for the strengthening of local governance, the Secretary stated that ARC has accorded high priority for capacity building measures for ULBs. Some of the recommendations made by the ARC relate to special capacity building measures for women, inclusion of schemes in the State Plan for documentation of case studies, best practices, evaluation with reference to performance of prescribed duties and responsibilities, training of elected representatives etc. The Report has also recommended for adoption of Double Entry Accounting System, property tax reforms and effective service delivery system. (EOM)