STANDING COMMITTEE ON 14 URBAN DEVELOPMENT (2016-2017) SIXTEENTH LOK SABHA MINISTRY OF URBAN DEVELOPMENT DEMANDS FOR GRANTS (2016-2017) {Action Taken by the Government on the Observations/ Recommendations contained in the Eleventh Report (Sixteenth Lok Sabha) of the Standing Committee on Urban Development on Demands for Grants (2016-2017) of the Ministry of Urban Development} FOURTEENTH REPORT LOK SABHA SECRETARIAT NEW DELHI 23 December, 2016, 02 Pausa1938 (Saka) FOURTEENTH REPORT STANDING COMMITTEE ON URBAN DEVELOPMENT (2016-2017) (SIXTEENTH LOK SABHA) MINISTRY OF URBAN DEVELOPMENT DEMANDS FOR GRANTS {Action Taken by the Government on the Observations/ Recommendations contained in the Eleventh Report (Sixteenth Lok Sabha) of the Standing Committee on Urban Development on Demands for Grants (2016-2017) of the Ministry of Urban Development} Presented to Lok Sabha on ………. Laid in Rajya Sabha on …………... LOK SABHA SECRETARIAT NEW DELHI 23 December, 2016, 02 Pausa1938 (Saka) 2 C.U.D No. 100 Price: Rs. …. (C) 2012 BY LOK SABHA SECRETARIAT Published under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Thirteenth Edition) and printed by the Indian Press, Delhi-110033. 3 CONTENTS PAGE COMPOSITION OF THE COMMITTEE .....................……….…………………..........................….. (iii) INTRODUCTION ......................................................................………………………………………. (v) CHAPTER I 1 Report.................................................................................................................... CHAPTER II 13 Observations/Recommendations which have been accepted by the Government CHAPTER III Observations /Recommendations which the Committee do not 44 desire to pursue in view of the Government’s replies CHAPTER IV 46 Observations/Recommendations in respect of which replies of the Government have not been accepted by the Committee and require reiteration CHAPTER V Observations /Recommendations in respect of which final replies of 51 the Government are still awaited ANNEXURES I. Minutes of the 5th Sitting of the Standing Committee on Urban Development(2016-17) held on 23.12.2016. II. Analysis of the Action Taken by the Government on the recommendations is contained in the Eleventh Report(16th Lok Sabha). 4 COMPOSITION OF THE STANDING COMMITTEE ON URBAN DEVELOPMENT (2016-2017) Shri Pinaki Misra - Chairperson MEMBERS LOK SABHA 2. Shri Ramesh Bidhuri 3. Shri Ram Charan Bohra 4. Shri Dushyant Chautala 5. Shri Ashok Shankarrao Chavan 6. Dr. Dharam Vira Gandhi 7. Shri Dilip Mansukhlal Gandhi 8. Shri Maheish Girri 9. Shri R.Gopalakrishnan 10. Shri Choudhury Mohan Jatua 11. Shri Srinivas Kesineni Nani 12. Smt. Meenakshi Lekhi 13. Shri P.C. Mohan 14. Shri K. Parasuraman 15. Shri Kapil Moreshwar Patil 16. Shri Alok Sanjar 17. Shri Rahul Ramesh Shewale 18. Shri Brijbhushan Sharan Singh 19. Prof. K. V. Thomas 20. Shri Parvesh Sahib Singh Verma 21. Shri Pradhan Baruah RAJYA SABHA 22. Shri R.S. Bharathi 23. Dr. Subhash Chandra 24. Shri Husain Dalwai 25. Shri Anil Desai 26. Shri Parvez Hashmi 27. Shri K. G. Kenye 28. Shri Mahesh Poddar 29. Shri K.C. Ramamurthy 30. Shri Ajay Sancheti 31. Shri Dharamapuri Srinivas SECRETARIAT 1. Smt. Abha Singh Yaduvanshi - Joint Secretary 2. Shri D.S Malha - Director 3. Ms. Amita Walia - Additional Director 4. Dr.(Maj.) Jagmohan Khatry - Committee Officer (iv) 5 INTRODUCTION I, the Chairman of the Standing Committee on Urban Development (2016-2017) having been authorized by the Committee to submit the Report on their behalf, present the 14th Report (16th Lok Sabha) on the action taken by the Government on the Observations/Recommendations contained in the Eleventh Report (16th Lok Sabha) of the Standing Committee on Urban Development on “Demands for Grants (2016-2017) " of the Ministry of Urban Development. 2. The Eleventh Report was presented to Lok Sabha on 02 May, 2016 and laid on the table of Rajya Sabha on 2 May, 2016. Replies of the Government to all the recommendations contained in the Report were received in August 2016 3. The Standing Committee on Urban Development considered and adopted this Report at their sitting held on 23 December, 2016. 4. An analysis of the action taken by the Government on the recommendations contained in the Eleventh Report (Sixteenth Lok Sabha) of the Committee is given at Annexure-II. 5. For the facility of reference and convenience, the Observations/Recommendations of the Committee have been printed in bold letters in the body of the Report. NEW DELHI; PINAKI MISRA 23 December, 2016 Chairperson, 02 Pausa,1938 (Saka) Standing Committee on Urban Development (v) 6 CHAPTER I REPORT This Report of the Standing Committee on Urban Development (2016-2017) deals with the action taken by the Government on the Observations/Recommendations contained in their Eleventh Report (Sixteenth Lok Sabha) on Demands for Grants (2016-2017) of the Ministry of Urban Development which was presented to Parliament on 02.05.2016. 1.2 Action Taken Replies have been received from the Government in respect of all the 22 recommendations contained in the Report. These have been categorized as follows: (i) Recommendations/Observations, which have been accepted by the Government. (Chapter-II): Recommendation Nos. 1, 3,4,5, 7,8,9,11, 14,15,16,17, 19, 21 and 22 (Total -15) (Chapter-II) (ii) Recommendations /Observations, which the Committee do not desire to pursue in view of Government's replies. (Chapter-III): Recommendation No. 18 (Total -01) (Chapter-III) (iii) Recommendations /Observations, in respect of which replies of Government have not been accepted by the Committee (Chapter-IV): Recommendation Nos. 6,12 and 13 (Total - 03) (Chapter-IV) (iv) Recommendations /Observations, in respect of which final replies of the Government are, still awaited (Chapter-V): Recommendation No. 2, 10 and 20 (Total –03) (Chapter-V) 7 1.3 The Committee desire that specific replies to the comments contained in Chapter-I and Chapter-V of this Report may be furnished to them at the earliest and in any case, not later than three months of the presentation of this Report. 1.4 The Committee will now like to comment on the action taken by the Government on some of their recommendations in the succeeding paragraphs. Recommendation (Serial No.6) CAPACITY BUILDING OF URBAN LOCAL BODIES (ULBs) UNDER -AMRUT MISSION 1.5 The Committee had recommended as under: "The Committee note that the Ministry of Urban Development has selected 493 cities under AMRUT mission and its implementation lies with State Governments and further down with Urban Local Bodies (ULBs). They find that there is a lack of implementation of the programes and policies of the central Ministry by the respective State Governments and Urban Local bodies and the main hurdle is lack of capacity building of these authorities. They further note that recently the Ministry have taken up the latest initiatives like ‗Ease of Doing Business and the development of model building byelaws‘ which are extremely desirable by the urban local bodies. The Committee are apprised that a complete eco-system of capacity building was thought of while designing the AMRUT Mission. There is lot of buoyancy with a lot of stress on the individual capacity building of workers on the job and capacity building of the engineers in the class rooms under this mission. There is also a provision of 3 to 5 Project Design and Management Consultants (PDMCs) to help the cities and the States in project monitoring and also other activities that the cities would like to do as a part of capacity building and helping in project monitoring. The Committee are of the opinion that Ministry will have to take proactive role in implementing and taking lead in strengthening the local body mechanism to ensure that the aims and objectives of the AMRUT are achieved in a time bound manner. They feel that ULBs are not performing at the optimal level, may be because of lack of funds, lack of capacity building, lack of technical expertise etc. The Committee strongly feel that central Ministry should act as a facilitator & guide to strengthen the ULBs. Main issues are that there is a limited understanding of reforms in cities/states. There are no regulations requiring provision of certain minimum level of services to be provided by ULBs. Therefore, all out efforts should be made to strengthen the ULBs. The Committee further feel that Management of water supply and sewerage system under AMRUT should be the primary function of ULBs. They should be given responsibility for water supply and distribution in their territorial jurisdictions whether based on their own source or on collaborative arrangements with para- statal and other service providers. Municipal Corporations may be given responsibility for the entire water supply programme from development to distribution. For smaller and medium sized ULBs, a phased transfer of 8 responsibilities for management of the distribution networks should be developed. Further, Para-statal agencies should be accountable to ULBs. The Committee desire that for strengthening ULBs, the Government should consider the adoption of a common categorization of urban bodies across the country with a provision of adequate staffing to improve clarity in their definition so as to assist a systematic planning process." 1.6 In their action taken reply, the Ministry have stated as follows: "Under the Mission 497 cities/ towns have been selected until now under AMRUT. The Capacity Building of Urban Local Bodies is supported under the AMRUT so as to achieve urban reforms and implementation of projects in Mission mode. The States have to prepare annual plan for capacity building for Individual as well as Institutional capacity building. Capacity Building is also supported through Capacity Building for Urban Development (CBUD) programme. Constitution of professionalization of municipal cadre is one of the reforms under AMRUT which have components like i. Establishment of municipal cadre, ii. Cadre linked training etc. and to be achieved by the States within 36 months. The Mission has provision to support reforms." 1.7 The Committee have been apprised that the States have to prepare annual plan for capacity building for individual and as well as institutional capacity building.