Urban Local Bodies (ULBs) in India gained constitutional recognition with the enactment of the 74th Constitutional Amendment Act, which came into effect on June 1, 1993. This reform was the urban counterpart to the 73rd Amendment Act that institutionalized Panchayati Raj in rural India. While April 24 is nationally celebrated as Panchayati Raj Day, marking the rural decentralization milestone, June 1 does not garner comparable attention—there is no ULB Day, public discourse, or celebration. This contrast raises a question: why are ULBs, though constitutionally empowered, less prominent in India’s urban governance landscape?
The invisibility of ULBs can be attributed to history, politics, and institutional design. Post-independence India rightly prioritized rural development due to its significant rural demographic and socio-economic challenges. This focus resulted in sustained policy attention, institutional investments, and capacity-building for rural institutions. In comparison, municipalities did not receive similar political or bureaucratic commitment. Urban governance was often perceived as detached from broader national concerns, leading to structurally weak and politically peripheral urban institutions even as cities grew in economic importance.
Several systemic issues contribute to the marginalization of ULBs:
Fragmented Authority and Overlapping Jurisdictions: Unlike rural areas where Panchayats have clear domain control, cities are governed by multiple authorities—development authorities, parastatals, special purpose vehicles (SPVs), and state departments. This fragmented governance weakens the role of elected municipal bodies and affects accountability.
Absence of a Dedicated Ministry: Rural local bodies have the support of the Ministry of Panchayati Raj (MoPR), whereas there is no equivalent Ministry of Urban Local Bodies. Urban governance remains under broader ministries like Housing and Urban Affairs, limiting focused policy attention for municipalities.
No Institutionalized People’s Participation: The Gram Sabha, a key element of participatory democracy in rural areas, has no true parallel in urban governance. Without formal mechanisms to engage citizens, ULBs remain administratively driven and disconnected from residents’ concerns.
Exclusion from Urban Planning Processes: Urban planning is often managed by state-level or parastatal institutions, sidelining elected ULBs from decisions on land use, infrastructure, and service delivery. This exclusion reduces local accountability and hampers responsive urban development.
Blurring Rural-Urban Boundaries: The growing rural-urban continuum, marked by expanding peri-urban zones and migration, requires an integrated approach to governance. Panchayats and Municipalities should be seen as complementary institutions rather than separate entities. Current frameworks, however, keep them administratively isolated.
To address this invisibility, it is necessary to recognize ULBs as essential democratic institutions. Strengthening their autonomy, ensuring functional devolution, institutionalizing citizen engagement through urban ward sabhas, and creating a dedicated national ministry are important steps. Celebrating June 1 as ULB Day could be a symbolic beginning to correct historical neglect.
However, reform should go beyond empowering ULBs as they are. As India’s urbanization blurs rural-urban boundaries, reconsidering separate governance for rural and urban areas is essential. The traditional split between Panchayats and Municipalities may not reflect reality. A unified Local Self-Government system, or “Panchipality” (a fusion of Panchayat and Municipality), could offer:
- Seamless planning and service delivery across all areas.
- Standardized capacity building, financial devolution, and citizen participation.
- Improved coordination of government schemes and local programs.
- Governance that acknowledges the interconnectedness of rural and urban life.
This system would modernize local governance, adapt to India’s spatial changes, bridge the rural-urban gap, and make self-government more relevant.