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The Second National Urban Conclave 2026 ended in Bhubaneswar on 25 October 2026 after seven technical sessions on urban governance, planning, finance and service delivery for Viksit Bharat 2047. The Housing and Urban Affairs Ministry said service quality should measure success. NITI Aayog urged empowered city governments and reform-linked funding. These are recommendations from the conclave, not notified rules or laws, and states would have to act on them through their own municipal legislation.
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What did the Second National Urban Conclave conclude?
The Second National Urban Conclave 2026 concluded in Bhubaneswar on 25 October 2026 with practical suggestions on urban governance, planning and service delivery for Viksit Bharat 2047. Seven technical sessions framed reforms, and the Ministry of Housing and Urban Affairs said success should be judged by service quality, not by project completion.
NITI Aayog member Rajiv Gauba told the closing session that cities cannot be run from state capitals. He urged stronger urban local bodies, better municipal finances and reform-linked funding under national urban missions. These are recommendations of the conclave. They are not yet notified rules or laws.
What is the constitutional and policy base?
The 74th Constitutional Amendment gives urban local bodies a constitutional status and a list of 18 functions, including master planning, water supply, fire services and traffic. Mr Gauba said states should hand over all 18 functions in line with the Amendment.
Central missions have supported cities for years. The Housing and Urban Affairs Minister, Manohar Lal, named AMRUT, Swachh Bharat Mission-Urban and PM SVANidhi as missions that expanded water and sanitation services, improved waste management, strengthened urban mobility and promoted financial inclusion.
- Conclave sessions
- Reform suggestions
- States adopt new municipal laws
- Funding linked to reforms
- Better city services
Which figures were cited?
| Indicator | Figure | Note |
|---|---|---|
| India's population | About 165 crore | Expected to stabilise around 2060 |
| Urban population | About 50 crore to 85 crore | Projected for 2050 |
| Urban Challenge Fund | Rs 1 lakh crore | Announced in Budget 2025-26 |
| City Economic Regions | 7 regions, Rs 5,000 crore each | Over five years, this year's Budget |
| Metro and bus investment | About Rs 3.7 lakh crore | Since 2014 |
| Finance Commission grants share | 36% to 45% | Share of urban local body grants |
Why do these reforms matter?
- Cities are described as hubs where talent, capital and ideas meet, so city capacity shapes growth.
- Empowered city governments can answer local needs faster than state capitals can.
- Mixed-use zoning and transit-oriented development raise land supply and lower housing costs.
- Outcome-based services shift the focus from building assets to the quality citizens receive.
What are the main challenges?
- Municipal revenue remains low, and property tax and user charge recovery need improvement.
- Transfers from states to cities remain low even as Finance Commission grants rose.
- Restrictive FAR and building rules limit land availability and raise costs.
- Institutional responsibilities for pedestrians and services are unclear, and coordination among agencies is weak.
- Many functions are not devolved to urban local bodies.
What is the way forward?
| Theme | Suggestion |
|---|---|
| Model Municipal Law | Five-year mayoral term with defined executive powers |
| Model Building Bye-laws | Digital approvals, risk-based checks, self-certification |
| Service delivery | Performance-based contracts and a municipal cadre |
| Finance | Own-source revenue, creditworthiness, land-based financing |
| Right to Walk | Include walking rights in statutory plans |
- The report Moving Towards Effective City Governance proposes directly elected mayors for five years, a mayor-in-council system and timely municipal elections.
- States should constitute State Finance Commissions regularly and adopt the Model Tenancy Act for rental housing.
What is the Uttar Pradesh angle?
Uttar Pradesh has municipal corporations and other urban local bodies working under the 74th Amendment and state municipal laws. The conclave urged states to devolve all 18 functions, hold timely elections and form State Finance Commissions regularly, so these suggestions apply directly to the urban network of Uttar Pradesh. The sources given here carry no Uttar Pradesh figures, so none are stated.
What can be used in a Mains answer?
Introduction hook: cities cannot be run from state capitals, so empowered urban governments are central to Viksit Bharat 2047.
- Constitutional base: the 74th Amendment and its 18 functions for urban local bodies.
- Report: Moving Towards Effective City Governance by NITI Aayog and the Housing and Urban Affairs Ministry.
- Funding lever: Urban Challenge Fund and City Economic Regions tied to structural reforms by states.
Conclusion: linking mission funding to governance, planning and finance reforms can turn urban growth into inclusive and sustainable development.
Key Terms
- 74th Amendment
- Constitutional amendment giving urban local bodies status and 18 functions.
- FAR
- Floor area ratio, the limit on built-up area relative to plot size.
- Transit-oriented development
- Dense, mixed-use growth around public transport hubs.
- Mayor-in-council
- System where an elected mayor governs with a council of members.
- Urban Challenge Fund
- Rs 1 lakh crore fund to develop cities as growth hubs.
UPPSC syllabus: GS-I, GS-II, GS-V
Sources: Rashtriya Shahri Sammelan 2026 concludes (PIB, Housing and Urban Affairs); Rajiv Gauba at the Second National Urban Conclave (PIB, NITI Aayog)
Last verified: 2026-10-26