National Urbanisation Policy and Government Urban Development Policy
Geography › Urbanization, Settlements and Migration · Topic 10.13
Urban development policy in India rests on the 74th Constitutional Amendment of 1992, which gave urban local bodies constitutional status and listed 18 functions in the Twelfth Schedule. The National Commission on Urbanisation (1988) set the first broad vision, and the Jawaharlal Nehru National Urban Renewal Mission (2005 to 2014) was the first large national mission. Since 2014, policy has used the Smart Cities Mission, AMRUT, Swachh Bharat Mission-Urban, the Pradhan Mantri Awas Yojana and DAY-NULM, along with a National Urban Policy Framework drafted in 2018.
5 min read · UPSC Prelims · Geography · Urbanization, Settlements and Migration
At a Glance
- 74th Amendment 1992; in force from 1 June 1993
- Twelfth Schedule 18 functions of municipalities
- First commission National Commission on Urbanisation, 1988
- First national mission JNNURM, 2005
- Policy draft National Urban Policy Framework, 2018
- Exam link UPSC Prelims, Geography: Urbanization, Settlements and Migration
Where Does It Fit?
This topic follows the topics on urban problems and missions and gives the policy and legal framework in which they work. It leads to the topics on the principles of urban planning and changes in land use. Previous topic: Boundaries and Frontiers: Classification. Next topic: Principles of Urban Planning.
What Did the National Commission on Urbanisation Recommend?
In short: the 1988 commission, chaired by the architect Charles Correa, gave India its first overall urban vision.
- Cities as engines: it viewed urbanisation as a positive force for growth, with cities contributing to national income and jobs.
- Spatial priority urbanisation regions (SPURs): it named 329 regions for investment in infrastructure and growth centres, to spread growth to smaller towns.
- Shelter and basic services: priority for housing, water, sanitation and transport for the poor, and dealing with the problem of land.
- Planning: metropolitan regions should have joint planning, and urban local bodies need more powers and funds.
The commission’s work led to the national shelter and urban policies and to the changes in local government that followed. It also asked for a national urbanisation policy that would guide the location of industry and infrastructure and the growth of small and medium towns, and for central support for planning. The Planning Commission and later the NITI Aayog took up these ideas in the Five Year Plans and strategy papers, which treated urban areas as the centres of non-farm jobs.
What Does the 74th Constitutional Amendment Provide?
| Provision | Content |
|---|---|
| Part IXA (Articles 243P to 243ZG) | Added to the Constitution a section on municipalities; came into force on 1 June 1993 |
| Three types of municipalities | Nagar panchayat for a transitional area, municipal council for a smaller urban area, municipal corporation for a larger urban area |
| Regular elections | Fixed five-year term and elections by a State Election Commission; reservation of seats for Scheduled Castes, Scheduled Tribes and not less than one-third for women |
| Ward committees | In municipalities with a population of three lakh or more |
| Twelfth Schedule | Lists 18 functions, including urban planning, regulation of land use, roads and bridges, water supply, public health and sanitation, slum improvement, urban forestry and fire services |
| State Finance Commission | Reviews the finances of municipalities every five years |
| District Planning Committee and Metropolitan Planning Committee | For integrated planning (Articles 243ZD and 243ZE) |
The 74th Amendment was the urban counterpart of the 73rd Amendment on panchayats. In practice, many states have not given their municipalities the full set of functions, finances and staff, so they remain dependent on state governments, and metropolitan planning committees are rare.
How Has Central Urban Policy Developed?
| Period | Initiative |
|---|---|
| 2005 to 2014 | Jawaharlal Nehru National Urban Renewal Mission (JNNURM): funds for infrastructure and basic services in selected cities, with reforms for urban governance |
| 2006 to 2008 | National Urban Transport Policy (2006), National Urban Housing and Habitat Policy (2007), National Urban Sanitation Policy (2008) |
| 2014 to 2015 | Swachh Bharat Mission-Urban, Smart Cities Mission, AMRUT, HRIDAY, PMAY-Urban |
| 2017 | Metro Rail Policy |
| 2018 | Draft National Urban Policy Framework by the Ministry of Housing and Urban Affairs |
| 2021 | AMRUT 2.0 and SBM-Urban 2.0; Model Tenancy Act for rental housing |
| 2023 to 2025 | Urban Infrastructure Development Fund; the Urban Challenge Fund announced in the budget of 2025-26 for redevelopment projects with market finance |
Reform needs identified by experts include stronger city governments with their own taxes and borrowing, municipal bonds, trained planners, spatial plans for whole urban regions, and transparent land policy. The missions are described in Inclusive and Smart Cities: Development and Government Initiatives, and the planning principles that should guide them in Principles of Urban Planning. As an analytical point, India has many missions but a thin legal framework for urban policy as a whole, and because urban affairs is a State subject, success depends on states and local bodies.
Why Is This Topic Important?
- Law 74th Amendment provisions
- Missions JNNURM to Smart Cities
- Governance Weak local bodies
What Came Next?
The next topic describes the principles of urban planning. Next topic: Principles of Urban Planning.
Key People and Terms
- ULB Urban local body
- Twelfth Schedule List of 18 municipal functions
- SPUR Spatial priority urbanisation region
- MPC Metropolitan Planning Committee
- State Finance Commission Body reviewing local finances
- JNNURM 2005 urban renewal mission
Exam Corner
Points to Remember
- 74th Amendment: 1992; in force 1993.
- Twelfth Schedule has 18 functions.
- NCU (1988) was chaired by Charles Correa.
- JNNURM: 2005.
- One-third of municipal seats are reserved for women.
Do Not Confuse With
- 73rd and 74th Amendments Panchayats versus municipalities
- Eleventh and Twelfth Schedules Panchayat functions versus municipal functions
- JNNURM and Smart Cities Earlier city renewal versus 2015 area-based mission
Memory Hook
Seventy-four gives the city its charter; eighteen functions, on paper, still wait for finance.
Mains Angle
Questions ask for an evaluation of urban governance reforms. These points add depth.
- Law Constitutional status
- Gap Functions and funds
- Policy Missions and frameworks
A Question You May Face
An original practice question, not a past paper question.
“Examine the role of the 74th Constitutional Amendment in urban governance in India and the reasons why its objectives remain only partly achieved.”
How to Answer
- Background NCU and 1992 Act.
- Provisions Part IXA, Twelfth Schedule.
- Gaps Devolution and finance.
- Reform Local taxes, planners.
GS Relevance
Frequently Asked Questions
What is the 74th Constitutional Amendment?
The 74th Constitutional Amendment Act, 1992, in force from 1 June 1993, added Part IXA to the Constitution and gave constitutional status to urban local bodies. It provides for three types of municipalities, regular elections, reservation of seats for Scheduled Castes, Scheduled Tribes and women, and the Twelfth Schedule listing 18 functions.
How many functions are in the Twelfth Schedule?
The Twelfth Schedule of the Constitution lists 18 functions that may be given to municipalities. They include urban planning, regulation of land use and buildings, roads and bridges, water supply, public health, sanitation and solid waste management, slum improvement, urban forestry, fire services and burial grounds.
What was the National Commission on Urbanisation?
The National Commission on Urbanisation, set up in 1988 under the chairmanship of the architect Charles Correa, gave the first comprehensive view of urban development in India. It treated cities as engines of growth, identified 329 spatial priority urbanisation regions, and stressed basic services, housing and stronger local bodies.
What was JNNURM?
The Jawaharlal Nehru National Urban Renewal Mission, launched in 2005, was the first big national programme to fund urban infrastructure and basic services for the poor in selected cities, linked to governance reforms. It ran until 2014 and was followed by AMRUT and the Smart Cities Mission.
Why are urban local bodies weak in India?
Urban local bodies are weak because many states have not transferred the functions, funds and staff listed in the Twelfth Schedule, they depend on state grants and have few sources of their own revenue, and planning and service delivery are often handled by parastatal agencies. Metropolitan planning committees are not widely functioning.
PYQ Practice — Statement Analysis
1 The 74th Amendment relates to urban local bodies.
The 73rd relates to panchayats.
2 The Twelfth Schedule has 29 functions.
It lists 18; 29 is for panchayats.
3 The National Commission on Urbanisation was chaired by Charles Correa.
It reported in 1988.
4 JNNURM was launched in 2005.
It was an urban renewal mission.
Past Mains Questions on This Topic
This topic comes under Urbanization, Settlements and Migration. UPSC Mains questions asked on the matching syllabus topic, year-wise with marks:
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