Late last week, the Odisha government announced the upgrade of 35 semi-urban entities—most of them rural bodies—into notified area councils (NACs). It also accorded municipality status to five existing NACs. In municipal administration hierarchy, where corporations sit at the top, NACs are at the entry level. The move is being seen as an attempt to push the state’s urban growth. The 35 new NACs will take the total number of urban local bodies (ULBs) in the state to 150. A number of areas which served as block headquarters will get an upgrade to ULB once the government notifies its order. The decision, however, has run into controversy with the opposition calling it unconstitutional, seeking ratification of the state cabinet and amendments in the assembly. Since the decision has come right before the elections, it is being dubbed as a poll gimmick. Creation of the NACs will demarcate the territories as urban areas separate from panchayati raj institutions.
While the BJD government is expected to bring more clarity to the move in the coming days, on the face of it the decision is welcome. Odisha’s urbanisation has been rather slow over decades. From around 11 per cent in 2001, state’s urbanisation stood at barely 17 per cent in 2011. This move would allow the state to improve its urban share at a time NITI Aayog is projecting that half of India’s population will be in cities by 2047. More ULBs is expected to bring urban planning into play along with deployment of better amenities for larger populations. Cities are also known to attract more investment and livelihood opportunities. Expanding urban spaces will also address the needs of the aspiring young generation and help combat the high urban migration that is a cause of concern.
The Naveen Patnaik government will have its task cut out. The new ULBs, as and when they come into being, will have to create a tax base, get down to revenue generation for urban services and be responsible for planned development, which would take time. A recent auditor general report checked 20 ULBs for five years and found their own revenue as a ratio of capital expenditure was 23 percent. Care must be taken that these bodies do not end up being a burden on state finance.