Stop Running Cities From State Capitals: NITI Aayog's Rajiv Gauba

NITI Aayog's Rajiv Gauba argues that Indian cities cannot be run from state capitals and calls for elected mayors and financial independence.

Prime News25 October 20262 min read1 viewAnalysis & Opinion
Stop Running Cities From State Capitals: NITI Aayog's Rajiv Gauba

India's urban landscape is on the verge of a massive transformation, but the current system of governance is failing to keep pace. Rajiv Gauba, a Member of NITI Aayog, has issued a stark wake-up call, asserting that empowered local governments are no longer a luxury but a necessity. Speaking at the 2nd National Urban Conclave, Gauba pointed out a critical flaw in the current administration: the attempt to govern complex cities from distant state capitals.

The Urban Explosion: 85 Crore by 2050

The urgency for reform is driven by staggering numbers. India's urban population, currently around 50 crore, is projected to skyrocket to 85 crore by 2050. With nearly half of the country's population expected to reside in cities, the pressure on infrastructure, housing, and basic services will be unprecedented. Gauba emphasized that meeting these needs requires a fundamental shift in how cities are managed to ensure they remain engines of economic growth.

A Blueprint for Governance Reform

To bridge the gap between planning and execution, Gauba proposed a series of structural changes aimed at strengthening urban governance:

  • Directly Elected Mayors: A call for mayors to be elected directly by the people for five-year terms.
  • Mayor-in-Council System: Implementing a system that provides a structured executive body to lead city administration.
  • Timely Elections: Ensuring that municipal elections are held on schedule to maintain democratic accountability.
  • Full Devolution of Power: Gauba urged states to transfer all 18 functions mandated under the 74th Constitutional Amendment to urban local bodies. This includes critical services such as urban planning, traffic management, fire services, and water supply.

Solving the Financial Crunch

Governance without funding is ineffective. Referring to the joint report Moving Towards Effective City Governance by NITI Aayog and the Ministry of Housing and Urban Affairs, Gauba highlighted the chronic issue of low municipal revenues. To achieve financial independence, he suggested:

  • Improving the collection of property taxes.
  • Enhancing the recovery of user charges for services.
  • Increasing the direct transfer of funds from state governments to urban local bodies.

Housing and Infrastructure Overhaul

Beyond administration and money, the physical growth of cities needs a policy reset. Gauba advocated for reforms in land-use policies and building regulations to lower housing costs and increase supply. His recommendations include:

Easing restrictive Floor Area Ratios (FAR), promoting mixed-use developments, and prioritizing construction around transit hubs.

Furthermore, he urged states to adopt the Model Tenancy Act. This move is seen as essential to expand affordable rental housing for a mobile workforce, including students, young professionals, industrial laborers, and migrant workers.

The Path to Viksit Bharat 2047

To ensure these reforms are not just suggestions, Gauba proposed that the Central Government link support under urban development missions to the actual implementation of these changes by the states. By introducing new municipal laws and empowering local leaders, India can transform its cities into robust economic hubs, supporting the broader vision of a Viksit Bharat 2047.

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