Answer

Introduction

As India advances towards Viksit Bharat, cities face escalating climate risks like air pollution, water scarcity and heat waves. With the Brihanmumbai Municipal Corporation alone planning $8 billion annual expenditure, empowered Urban Local Bodies (ULBs) are pivotal for climate-resilient and equitable urban transformation.

Role of Urban Local Bodies (ULBs) in Climate-Resilient and Equitable Development

• Climate-Resilient Urban Planning: ULBs regulate land use, water systems and infrastructure to mitigate floods and heat stress.
  Eg: Economic Survey highlights liveable cities as central to resilience.
• Public Health and Pollution Control: Addressing air pollution through local monitoring and mitigation strategies.
  Eg: In Delhi, one in seven deaths is linked to air pollution.
• Water Security and Resource Management: Urban water supply, recharge and wastewater management fall within ULB domain.
  Eg: 40% of Indian cities are projected to face water scarcity by 2030.
• Service Delivery for Equity: Waste management, transport and housing services ensure inclusive growth.
• Localised Climate Adaptation: Heat action plans and disaster response require city-level implementation.

Governance Reforms Required

• Clear Devolution of Powers: Strengthen functional autonomy under the 74th Constitutional Amendment.
• Holistic Accountability Framework: Move beyond output metrics to long-term resilience indicators.
  Eg: Learning from China’s Targeted Responsibility System (TRS) while avoiding perverse incentives.
• Mandating Social Audits: Institutionalise community-led audits for transparency and inclusiveness.
• Filling Administrative Vacancies: CAG (2021) reported 20% vacancy rates in ULBs, including elected posts.
• Strengthening SPV Accountability: Ensure Special Purpose Vehicles remain democratically answerable post-Smart Cities Mission phase.

Fiscal Reforms Required

• Enhanced Revenue Autonomy: States must devolve taxation powers to ULBs.
• Strengthening Municipal Bond Market: Only 21 of ~6,000 ULBs issued bonds worth $42 million as of Nov 2025.
• Incentive-Based Financing: Union Budget’s ₹100 crore incentive for cities raising ₹1,000 crore bonds.
• Multi-Year Budgeting Mandate: Statutory requirement for development-linked fiscal planning.
• Ensuring Debt Sustainability: Avoid over-leveraging seen in China’s LGFVs ($9 trillion debt accumulation).

Conclusion

Urban climate resilience demands empowered, accountable and fiscally capable ULBs. Balancing financial autonomy with transparent governance, participatory audits and sustainable debt frameworks can transform cities into engines of equitable growth, ensuring India’s urban transition remains resilient in an era of accelerating climate uncertainty.

DOWNLOAD PDF