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Polity & Governance April 25, 2026 4 min read Daily brief · #3 of 27

NITI Aayog releases report on “Moving Towards Effective City Government – A Framework for Million-Plus Cities”

NITI Aayog released the report "Moving Towards Effective City Government – A Framework for Million-plus Cities" on 25 April 2026 at India Habitat Centre, New...

GS Paper 2 (Polity — Local Self-Government; GS Paper 1 — Urbanisation)

What Happened

  • NITI Aayog released the report "Moving Towards Effective City Government – A Framework for Million-plus Cities" on 25 April 2026 at India Habitat Centre, New Delhi.
  • The report, developed through extensive deliberations and a study of global best practices, identifies persistent governance failures in India's million-plus cities including weak mayoral authority, fragmented service delivery, constrained fiscal capacity, and institutional capacity gaps.
  • The framework recommends directly elected mayors with fixed tenures leading empowered councils for stable and accountable governance.
  • It proposes consolidating urban services — water supply, solid waste management, and public transit — under a single civic authority to eliminate the current fragmentation across multiple agencies.
  • The report calls for annual data reports for all 47 million-plus cities to bridge the urban statistics gap and enable evidence-based governance.

Static Topic Bridges

The 74th Constitutional Amendment Act, 1992 and Urban Local Bodies

The Constitution (74th Amendment) Act, 1992 inserted Part IXA (Articles 243P to 243ZG) and the 12th Schedule into the Constitution, providing constitutional status to urban local bodies (ULBs). It came into force on 1 June 1993. The 12th Schedule lists 18 functions that may be transferred to municipalities, including urban planning, regulation of land use, water supply, public health, sanitation, and urban poverty alleviation. However, the 74th Amendment leaves the actual devolution of functions, funds, and functionaries (the three Fs) to state legislatures — making the extent of ULB empowerment highly variable across states.

  • Part IXA covers Articles 243P to 243ZG dealing with municipalities.
  • The 12th Schedule lists 18 functions that may be assigned to municipalities.
  • Three types of ULBs are recognised: Nagar Panchayat (transitional areas), Municipal Council (smaller urban areas), and Municipal Corporation (larger urban areas).
  • The amendment mandates State Finance Commissions and State Election Commissions to strengthen local governance.
  • Devolution of functions, funds, and functionaries remains at state discretion — a key reason why ULB empowerment is uneven.

Connection to this news: NITI Aayog's framework directly addresses the implementation gap of the 74th Amendment — most million-plus cities still do not have mayors with executive authority or consolidated service mandates, undermining the constitutional intent of decentralisation.

Million-Plus Cities: India's Urban Growth Challenge

India currently has 47 cities with populations exceeding one million (as per Census 2011 and projections). These cities are key economic engines, contributing disproportionately to national GDP. However, they suffer from structural governance problems: mayors often lack executive powers (unlike counterparts in global cities), service delivery is fragmented across parastatals and state-level agencies, and own-source revenue is inadequate compared to expenditure mandates.

  • India has 47 million-plus cities as of current projections.
  • Indian cities are estimated to contribute about 60-70% of national GDP but receive a small share of public expenditure relative to their population and economic weight.
  • The Smart Cities Mission (2015) and AMRUT (Atal Mission for Rejuvenation and Urban Transformation) have channelled central funds to cities, but governance reforms have lagged.
  • The Ministry of Housing and Urban Affairs (MoHUA) is the nodal ministry for urban development policy.

Connection to this news: The NITI Aayog report frames its recommendations specifically around the governance deficits of million-plus cities, arguing that structural reforms — not just project-level interventions — are needed for effective city government.

Mayoral Powers and Urban Governance Reform

A recurring theme in urban governance literature is the distinction between ceremonial and executive mayors. In most Indian cities, the mayor is a ceremonial head while the Municipal Commissioner (an IAS officer appointed by the state) holds real administrative authority. This separation weakens democratic accountability and slows decision-making. Several Second Administrative Reforms Commission recommendations and expert groups have called for empowering directly elected mayors with executive functions.

  • The Second Administrative Reforms Commission (2007-09) recommended directly elected mayors with executive powers for cities above a certain population threshold.
  • States like Delhi, Kolkata, and Mumbai have large Municipal Corporations but their mayors do not hold executive authority comparable to global city mayors.
  • Directly elected mayors with fixed tenures provide accountability to citizens, unlike appointed commissioners who are accountable upward to the state.
  • The 74th Amendment does not mandate directly elected mayors — it is a state prerogative, which is why the NITI Aayog's recommendation requires legislative action at the state level.

Connection to this news: NITI Aayog's recommendation for directly elected mayors with fixed tenures is a structural reform that goes beyond scheme-level interventions, calling for legislative changes at the state level to genuinely empower urban democracy.

Key Facts & Data

  • Number of million-plus cities in India: 47
  • Constitutional basis for ULBs: Part IXA, Articles 243P–243ZG (74th Amendment, 1992)
  • 12th Schedule lists 18 functions that may be devolved to municipalities
  • 74th Amendment came into force: 1 June 1993
  • Key recommendations: directly elected mayors with fixed tenures; consolidation of water, waste, and transit services; annual city-level data reports
  • Nodal ministry: Ministry of Housing and Urban Affairs (MoHUA)
  • The report was released at India Habitat Centre, New Delhi, on 25 April 2026
  • Report was developed through evidence-based analysis and study of global urban governance best practices
On this page
  1. What Happened
  2. Static Topic Bridges
  3. The 74th Constitutional Amendment Act, 1992 and Urban Local Bodies
  4. Million-Plus Cities: India's Urban Growth Challenge
  5. Mayoral Powers and Urban Governance Reform
  6. Key Facts & Data
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