Why this chapter matters for UPSC: Urban local bodies (ULBs) — the 74th Amendment, 12th Schedule, Smart Cities Mission, AMRUT, and urban governance challenges — are heavily tested in GS2. India's rapid urbanisation makes urban administration increasingly important.

PART 1 — Quick Reference Tables

Urban Local Bodies — Types

Type Population Examples
Municipal Corporation Large cities (> 10 lakh typically) Delhi MCD, Mumbai BMC, BBMP (Bengaluru), Chennai Corporation
Municipal Council / Municipality Medium towns District headquarters towns
Nagar Panchayat / Town Panchayat Transitional areas (rural to urban) Smaller towns
Cantonment Board Military areas Under Defence Ministry; civilian + military
Township Areas around large industrial units Steel townships, mining townships
Special Purpose Agencies Metropolitan Development Authorities DDA (Delhi), BMRDA (Bengaluru), MMRDA (Mumbai)

74th Amendment — Key Provisions (1992)

Provision Detail
Constitutional status Added Part IXA (Art. 243P to 243ZG) and 12th Schedule
12th Schedule Lists 18 subjects that may be assigned to ULBs
Elections Regular elections every 5 years; State Election Commission conducts
Ward Committees For cities with population > 3 lakh; grassroots participation
Reservation SC/ST proportional to population; women: minimum 1/3rd
District Planning Committee Art. 243ZD; prepares draft development plan for district
Metropolitan Planning Committee Art. 243ZE; for metro areas with population > 10 lakh
State Finance Commission Same as for Panchayats; reviews finances of ULBs

12th Schedule — 18 Subjects (Municipalities)

Urban planning and land use, regulation of land use and building construction, economic and social development planning, roads and bridges, water supply, public health and sanitation, fire services, urban forestry, protection of environment, safeguarding of weaker sections, slum improvement, urban poverty alleviation, public amenities (parks, gardens, playgrounds), promotion of cultural/educational/aesthetic aspects, burials/burnings, cattle pounds, vital statistics, regulation of slaughterhouses and tanneries.

PART 2 — Detailed Notes

How a Municipal Corporation Works

Explainer

Structure of a Municipal Corporation:

  • General Body (Full Council): All elected councillors; highest decision-making body; meets periodically
  • Mayor: Elected head; largely ceremonial in most cities (real power with Commissioner); in some states (Mumbai, Chennai) Mayor has more powers
  • Standing Committees: Finance, public works, health, education — detailed committees for each function
  • Municipal Commissioner (IAS officer): Chief Executive Officer; real administrative power in most corporations; appointed by state government
  • Wards: City divided into wards; each elects one councillor; Ward Committee for cities > 3 lakh

Revenue sources of ULBs:

  • Property tax: Main own revenue source
  • Water and sewage charges
  • Advertisement tax
  • Professional tax (in some states)
  • Grants from state and central government — most ULBs are heavily dependent on grants (their own revenues are very low)

ULB functions (from 12th Schedule): The 18 subjects include urban planning, land use regulation, roads and bridges, water supply, public health and sanitation, fire services, urban forestry, slum improvement, urban poverty alleviation, maintenance of public spaces, vital statistics.

Urban India — Context for UPSC

UPSC Connect

UPSC GS2 — Urbanisation and urban governance:

India's urbanisation:

  • Urban population: ~36% (Census 2011); estimated ~40% by 2025-26
  • India will be 50% urban by ~2050 (UN projection)
  • India has ~4,800 towns and cities; 53 cities with population > 10 lakh (Million-plus Cities)

Urban governance challenges:

  • Multiplicity of agencies: In a city like Bengaluru, BBMP (civic body), BWSSB (water), BESCOM (electricity), BMTC (buses), BMRCL (metro), BDA (development authority), KIADB (industrial areas) all operate independently — no unified urban authority
  • Finance gap: ULBs are financially weak — heavily dependent on state grants; property taxes poorly collected; 15th FC gave ULBs direct grant of ₹4.36 lakh crore (2021-26) to address this
  • Informal settlements (slums): ~65 million urban poor live in slums; Rajiv Awas Yojana → now PMAY-Urban (PM Awas Yojana Urban) targets housing for all
  • Infrastructure deficit: Urban India needs ₹70 lakh crore in infrastructure investment over next 20 years (McKinsey estimate)

Major Urban Schemes:

  • AMRUT (Atal Mission for Rejuvenation and Urban Transformation): Water supply, sewerage, storm drainage, parks in 500 cities; AMRUT 2.0 (2021-26) — 500+ cities; water supply for all households
  • Smart Cities Mission (2015): 100 smart cities selected through competition; ₹2.05 lakh crore investment; technology-driven urban management (ICCC — Integrated Command and Control Centres)
  • PM Awas Yojana (Urban): Housing for All; PMAY-U 2.0 (2024-29): Target 1 crore urban poor houses
  • SWACHH BHARAT MISSION (Urban): ODF+ and ODF++ certification for cities; solid waste processing; faecal sludge management
  • HRIDAY (Heritage City Development and Augmentation Yojana): Urban heritage conservation in 12 heritage cities

Ward Committees and Urban Democracy

Explainer

Ward Committees (Art. 243S): Mandatory for cities with population > 3 lakh; should function like a Gram Sabha for urban areas — but largely dysfunctional in most states.

Area Sabhas / Mohalla Committees: Some states have created sub-ward level bodies for citizen participation. Delhi's Aam Aadmi Party government created Mohalla Clinics and Mohalla Committees as citizen-level health and governance units.

Resident Welfare Associations (RWAs): Informal citizen groups in urban areas; not a statutory body but powerful voice in local governance; often engage with Municipal Corporations on local issues.

The fundamental challenge: Urban democracy is far weaker than rural democracy (where Gram Sabhas are legally empowered) — Ward Committees are not empowered in practice, mayors have little real power, and professional IAS-appointed commissioners dominate.

Exam Strategy

Prelims traps:

  • 12th Schedule = 18 subjects (Urban); 11th Schedule = 29 subjects (Rural) — frequently confused
  • 74th Amendment → Part IXA (Urban); 73rd Amendment → Part IX (Rural)
  • Mayor = elected head but largely ceremonial; Municipal Commissioner (IAS) = real executive power in most cities
  • Ward Committees are mandatory only for cities with population > 3 lakh — NOT all cities
  • AMRUT = 500 cities; Smart Cities Mission = 100 cities — different scales and approaches
  • Cantonment Boards are under the Ministry of Defence — NOT state government; hybrid civilian + military governance

Previous Year Questions

Prelims:

  1. The 12th Schedule of the Indian Constitution, added by the 74th Amendment, deals with:
    (a) Panchayati Raj institutions
    (b) Municipalities and urban local bodies
    (c) Scheduled Tribe areas
    (d) Co-operative societies

  2. How many subjects are listed in the 12th Schedule for devolution to Urban Local Bodies?
    (a) 29
    (b) 24
    (c) 18
    (d) 15

  3. The Smart Cities Mission involves how many cities?
    (a) 500
    (b) 100
    (c) 50
    (d) 200

Mains:

  1. India's urban local bodies suffer from a "triple deficit" — of functions, functionaries, and funds. Critically examine with reference to the 74th Constitutional Amendment and suggest reforms. (GS2, 15 marks)