Tata Steel’s Jamshedpur Model: A Blueprint for Urban Governance

Context: This article is based on the news “Tata Steel’s Jamshedpur Model: A Blueprint for Indian City Governance” which was published in the Live Mint. The Jharkhand government decided to involve Tata Steel in the administration of Jamshedpur city.

About Tata Steel’s Jamshedpur Model For Urban Governance

• Inclusion of Tata Steel for City Administration: Jamshedpur will be transformed into an industrial township under special constitutional provisions. 
  • It will create a municipal council including Tata Steel representatives, government nominees, and local residents.
• Difference with State run Industrial Townships:  This will differ from the industrial townships of the past, which were state-run but had limited local representation, with company officials predominantly occupying administrative roles. 
  • While the model successfully led to the development of cities like Rourkela and Salem, it is evidently no longer effective.
• Accountability and Modern Accounting Issues: Jamshedpur Model holds the promise of a significant improvement over the current scenario, where only three cities employ an accrual-based accounting system. 
• • This limitation has hindered rating agencies from issuing municipal bonds. 
  • Without an accrual-based system, assessing a municipal system’s revenue stream for securitization becomes challenging. 
  • The government’s Smart Cities initiative also faces accountability and modern accounting issues. 
• Significance of  Jamshedpur Model: If successful, and with other state governments willing, more companies may also follow the model leading to corporate efficiency and democratic accountability.

What is Urban Governance?

• Urban Governance is the process by which governments and stakeholders collectively decide how to plan, finance and manage urban areas.  
• Urban governance refers to how individuals and institutions, both public and private, plan and manage the common affairs of the city in a continuing process.

Need for Urban Governance

• Burgeoning Urban Population: According to the UN’s projections, Indian cities will house 870 million people by 2050 from a population of 377 million in 2011.
  • Delhi will likely become the world’s most populous urban agglomeration by 2030, surpassing Tokyo. 
• Addressing Urban Challenges:  Rising urban population has led to inadequate affordable housing such that almost one-sixth of the urban population lives in slums. 
  • Other issues include unreliable water supply, inadequate solid waste management, poor drainage, congested roads and deteriorating air quality.
  • 70 to 80 percent of the infrastructure needed by 2050 has not been built yet, and the estimated investment gap amounts to approximately 827 billion US dollars.
• Driving Economic Growth: As India undergoes urbanization, it is crucial to ensure that its cities provide a satisfactory quality of life and promote job creation.

Status of Urban Governance in India

• As per Census 2011, the urban system of India consists of 7933 settlements, classified broadly as statutory (4041) and census (3892) towns.
• Statutory Towns: These are settlements that are notified under law by the concerned State/UT government and with local bodies such as municipal corporations, municipalities, municipal committees, etc., irrespective of their demographic characteristics.
• Census Towns:  These are governed as villages and do not necessarily have urban local bodies. These are settlements that are classified as urban in the census after they have met the following criteria: 
  • A minimum population of 5,000
  • At least 75% of the male ‘main workers’ engaged in non-agricultural pursuits
  • A density of population of at least 400 persons per sq. km. 
• Outgrowths: These are viable units, such as a village, clearly identifiable in terms of their boundaries and locations. 
  • Outgrowths possess urban features in terms of infrastructure and amenities, such as pucca roads, electricity, etc., and are physically contiguous with the core town of the urban agglomeration.

What Are the Challenges Associated with India’s Urban Governance System?

• Unacknowledged and Unaddressed Urbanization: Almost half of the 7933 ‘urban’ settlements are census towns.  Thus, they are governed as ‘rural’ entities. 
  • Small and medium are vulnerable due to rapid growth and inadequate planning. 
  • Moreover, several studies have indicated that the current definitions of ‘urban’ are not reflective of the extent of urbanization that the country has already witnessed. 
• Lack of Power Devolution to urban local Governments: The urban planning function has not been transferred from States/UTs to elected urban local bodies (ULB) as was envisaged through the Constitutional (Seventy-Fourth amendment) Act 1992. 
  • Resistance among state-level politicians to effectively delegate resources and power to local government has made them weak.
  • The resources allocated to municipal corporations, in terms of both finances and personnel, are  limited. Thus, no city government can fully take charge of all functions listed in the XIIth Schedule.

• Concerns with Municipal Regime: Also known as the “Commissioner System, it confers executive powers to an Indian Administrative Services (IAS) official nominated by the state government sidelining the mayor, who is usually indirectly elected and holds a ceremonial role. 
  • The mayor has limited executive responsibilities, except for Madhya Pradesh and West Bengal. 
• Parastatal Agencies/bodies: The Weakness of ULBs due to  inadequate staffing, limited finances, and technical constraints led to the establishment of numerous parastatal bodies for planning, infrastructure development, and service delivery.
• • Ex- development authorities, water supply and sewerage boards, slum housing and development boards, PWD, etc
  • These state-owned parastatal bodies created as nodal agencies have undertaken various functions that should have been assigned to ULBs by the provisions under the Constitution (Seventy-Fourth) Amendment Act 1992.
• Lack of Master Plans: Master plans are statutory instruments to guide and regulate the development of cities and are critical for managing urbanization and ‘spatial sustainability’. 
• • As per the data compiled by the Town and Country Planning Organisation (TCPO), about two-thirds of the census towns do not have master plans to guide their spatial growth.
  • The census towns continue to be governed as villages and  do not have master plans to guide their spatial growth.
  • This results in fragmented interventions, unplanned constructions, urban sprawl, and environmental pollution, further exacerbating traffic congestion and flooding.
• Lack of Upgradation of the Town and Country Planning Act: These acts have been enacted by the states, enabling them to prepare and notify master plans for implementation and providing a fundamental basis to transform cities, regions, and their character. 
  • However, these have not been reviewed and upgraded to the latest technological advancements, urban and regional planning approaches and policies. 
• Lack of Urban Planners: A study conducted by TCPO for NITI Aayog indicates that over 12,000 posts for town planners are required in the State town and country planning departments. 
• • There are less than 4000 sanctioned positions for ‘town planners’ in these departments, half of which are vacant. 
  • In several states, a qualification in town planning is not even an essential criterion for such jobs.

Way Forward

• Implementing Mayor-in-Council System:  This regime vests executive authority in the hands of the Mayor. 
  • Under this, the Municipal Commissioner, nominated by the state, is responsible to the Mayor-in-Council, not the state government.
• Direct Election of Mayor: The Mayor should be elected directly by voters, for a five year tenure. Direct election as well as a concurrent tenure with the municipal corporation/council will ensure the visibility of the Mayor for voters, and reinforce his/her status as a representative of local self-government. 
  • Ex- As done in Tamil Nadu.
• Training of Councillors: Councillors should be provided with well-designed, efficient training, just after the election. 
  • This is essential considering the fact that many of them are newcomers, and effective training would empower councilors to make the best of their prerogatives.
• Re-engineering of Urban Governance: A high powered committee needs to be constituted to re-engineer the present urban-planning governance structure.  It should address issues like;
  • Clear division of roles and responsibilities among various authorities
  • Appropriate revision of rules and regulations, etc.
  • Creation of a more dynamic organizational structure
  • Standardisation of the job descriptions of town planners and other experts.
• Optimum Utilization of Urban Land: All the cities/towns should strengthen development control regulations based on scientific evidence to maximize the efficiency of urban land (or planning area). 
• Ramping up of Human Resources: The public sector must have an adequate workforce in terms of quantity and quality to tackle the challenges of urbanization. 
  • The States/UTs should expedite the filling up of vacant positions of town planners, and sanction 8268 town planners’ posts as lateral entry positions for a minimum period of 3 years and a maximum of 5 years to close the gaps. 
• Ensuring Qualified Professionals for Undertaking Urban Planning: The States need to make amendments in their recruitment rules to ensure the entry of qualified candidates into town planning positions. 
  • The urban planning discipline has a dedicated course curriculum with graduates acquiring a multi-sectoral overview and skillset to address such challenges. 
• Upgrading Planning Legislations: An apex committee needs to be formed at the State level to undertake a regular review of planning acts.
• Strengthening Human Resource and Match Demand–Supply:  A ‘National Council of Town and Country Planners’  needs to be constituted as a statutory body of the Government of India. 
  • A National Digital Platform of Town and Country Planners needs to be created to enable the self-registration of all planners and evolve as for potential employers and urban planners.
• Intervention for Planning of Healthy Cities: Efforts must be made towards a ‘healthy city for all’ by 2030. 
  • This would need convergence of multi-sectoral efforts at the intersections of spatial planning, public health, and socio-economic development. 
  • The focus of planning urban development should encompass the million-plus cities as well as small- and medium-sized towns.