Two Municipal Corporations in the State will soon be chosen as test beds for radical urban governance reforms.
These would include some devolution of powers and considerable autonomy for the city government to determine its future, a government official said. The cities may also be allowed to raise funds to finance infrastructure projects by issuing bonds and other instruments, along the lines of global cities such as London or Chicago.
Since some of the proposed measures are new and innovative, a city “with a manageable population size” is likely to be picked, the official said.
With the Union government announcing last week that cities will have to compete and earn the smart city tag, Tamil Nadu’s plans seem to be dovetailing with the Centre's requirements, say government sources.
Citing the reform of existing urban governance mechanisms as a key requirement, Urban Development Minister Venkaiah Naidu said at an event in the city last week: “Everyone wants a smart city. But are you ready for reform?”
At a conclave held in Delhi last week, which saw the participation of urban development officials from all the States, credit rating of municipalities and decentralised decision-making were seriously considered as requisite criteria for participation in the smart city project, a well-placed government source said.
“The final draft policy should be out in a month or so,” he said. “There could be a competition to qualify to be among the first set of cities to get the smart city tag. As a State, we want to be at the forefront of the proposed reforms,” he emphasised.
