1. Objectives

  • To study the existing institutional setup and financial status of the city administration and the participation of various organizations / agencies involved in plan formulation.

2. Governance

Governance is the exercise of economic, political and administrative authority to manage a countries affairs at all levels. It comprises the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mitigate their differences.

Governance may also be defined as the institutional structures, policy and decision making processes and rules (formal and informal) related to issues of public concern which determine:

· How power is exercised

· How decisions are taken

· How citizens have their say

3. Legislative Setup

3.1 Structure of governance in India

India has a 3 tier government structure. The lowest tier i.e. the local bodies has been introduced recently as compared to the other two.

The 3rd tier is provided for in the 73rd and 74th CAA 1992.


3.1.1 73rd Constitutional Amendment Act, 1992


The Act provides for decentralization of planning and governance in rural areas. It also provides for constitution of democratically elected Panchayats at 3 levels, preparation of plans for Economic development and Social justice, implementation of schemes for the same. Constitution of state finance commission – Setup to review the financial position of the Panchayats and make recommendations regarding the split of revenue between the state and the local bodies and other recommendations.

3.1.2 74th Constitutional Amendment Act, 1992

It provides for decentralization of planning and governance in urban areas and the constitution of ward committees in municipalities to carry on the developmental works.


3.2.1 ‘Master plan’ means the master plan prepared and approved for any urban area in accordance with the stated provisions.


3.2.2 Power of the state government to order preparation of master plan: “the state government, by order, can direct that in respect of and for any urban area in the state specified in the order, a civil survey shall be carried out and a master plan shall be prepared, by such officer or authority as the state government may appoint for the purpose.”


3.2.3 Content of the master plan: the master plan shall define the various zones into which the urban area for which the plan has been prepared may be divided for the purposes of its improvement and indicate the manner in which the land in each zone is proposed to be used. Serve as basic pattern of frame work within which the improvement schemes of the various zones may be prepared.


3.2.4 Procedure of plan preparation:

Before preparing any master plan officially, the officer or authority appointed shall publish a draft of the master plan, and make a copy available for inspection and inviting objections & suggestions from every person before such date as may be specified. Such authority shall also give reasonable opportunity to every local authority to make any representations with respect to the master plan. After considering all objections & suggestions that may have been received, the authority shall finally prepare the master plan.

3.2.5 Approval of master plan:

Every master plan shall, as soon as maybe after its preparation, be submitted to the state government for approval in the prescribed manner. The state government may either approve the master plan without modifications or with such modifications as it may consider necessary or reject it with directions for the preparation of a fresh master plan.


3.2.6 Constitution of trusts: the state government may, by notification in the official gazette, establish a board of trustees to be called the ‘improvement trust’ of the place.


3.2.7 Constitution of trusts: the trust shall consist of, Chairman, such number of other persons, as may be determined by the state government for each trust.



3.3.4 Procedure of plan preparation & approval:

Before preparing any master plan officially, the municipality shall publish a draft of the master plan, and make a copy available for inspection and inviting objections & suggestions from every person before such date as may be specified. The municipality may, if it considers appropriate, constitute an advisory committee to consider the draft plan before it is given final shape. After considering all objections & suggestions that may have been received, the municipality shall finally prepare the master plan and send it to the state government for approval and after receipt of approval of the state government finally sanction the plan.


3.3.5 Implementation of the plan: after coming into operation, the municipality may initiate such action for implementation of the plan as may be deemed necessary, subject to the provisions of the act. Any master plan prepared under the provisions of any other law for the time being in force prior to the commencement of this act, shall be deemed to have been prepared under the provisions of this act.


3.3.6 Review of plan: it the state government or municipality at any time within ten years from the date on which a plan comes into operation is of the opinion that the revision of such plan is necessary, the state government may direct the municipality to revise or the municipality may of its own motion undertake revision of such plan.


3.3.7 Declaration of development areas: as soon as may be after a plan comes into operation, the municipality may, with the approval of state government and by notification, declare any area in the city to be a development area for the purposes of this act.

4. Line Departments

Electricity, irrigation, PHED, PWD, etc. are termed as line departments. They comprise of nominated/ appointed members. Their major role as of now is in the form of providing physical and social infrastructure. However, there is no inter-department co-ordination as of now.

5. Observations

The process of master plan preparation as of now, primarily involves the town planning department. The involvement of other organisations and agencies is limited to objections & suggestion. The District Planning Committee is presently concerned only with the preparation of district development plans. They do not have any major role to play in town level development plans. Under the municipalities act, 2009 the responsibility for the preparation and implementation of the master development plan rests with the municipal board. Further the municipal board is expected to distribute the responsibilities for implementation to the various line departments at the city level. It will also act as the coordinating body between them.

6. Finance

The income of municipality is generally from government grant in aid, chungi, house tax and other small cesses. Lalsot has also received financial aid under schemes like Nehru Rozgar Yojna and Swarnajayanti Shahri Rozgar Yojna. Revenue: the main sources of revenue include, land revenue, motor vehicles passenger and goods tax, exise, stamp duty registrations and stamps, sales tax, entertainment tax, registration of vehicles fee.

7.1 Grants and Aids:

  • National finance commission

  • State finance commission

  • Swarnajayanti shahri rozgar yojna

  • Mla fund

  • Government special aid

  • Other aid

  • Octroi compensation


The current process of planning is very isolated and limited in terms of inter department co-ordination. It would be a good idea to redistribute the powers and responsibilities such that the process can be made hierarchy friendly and more efficient.


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