**Summary:**
In response to Lok Sabha Unstarred Question No. 1884, concerning the development of frameworks and guidelines for City Economic Development Plans, the Ministry of Housing and Urban Affairs affirms the need for such a framework. Article 243W of the Constitution empowers state legislatures to enable municipalities to function as institutions of self-government, including the preparation of plans for economic development and social justice, as well as the implementation of related schemes as outlined in the Twelfth Schedule. The Ministry has urged State/UT Governments to formulate City Level Economic Visions for 100 tier 2 and tier 3 cities, following an action point that emerged from the 4th National Conference of Chief Secretaries in December 2024. The government believes incentivizing State Governments is important for developing and adopting such frameworks.
Key Entities Referenced
Ministry of Housing and Urban Affairs: The Indian governmental ministry responsible for housing and urban development.
SHRI VE VAITHILINGAM: Member of Parliament who raised the question in the Lok Sabha.
SHRI TOKHAN SAHU: The Minister of State in the Ministry of Housing and Urban Affairs who provided the answer.
Article 243W of the Constitution: Article of the Indian Constitution that empowers state legislatures to give municipalities the authority to function as self-governing institutions.
City Economic Development Plans: Plans for economic development at the city level, the preparation of which is the subject of the question.
Twelfth Schedule: A schedule of the Indian Constitution which lists the matters that may be entrusted to Municipalities.
State/UT Governments: Refers to the governments of the States and Union Territories of India.
4th National Conference of Chief Secretaries: A conference held in December, 2024 where the action point to formulate City Level Economic Vision emerged.
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1884
TO BE ANSWERED ON JULY 31, 2025
FRAMEWORKS/GUIDELINES FOR CITY ECONOMIC DEVELOPMENT
NO. 1884. SHRI VE VAITHILINGAM:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to
state:
(a) whether the Government concurs with the view that
frameworks/guidelines need to be developed to facilitate the
preparation of City Economic Development Plans;
(b) if so, the details of the initiatives that are proposed to be taken
by the Government keeping in mind that State Governments
should be incentivised for developing and adopting such a
framework; and
(c) if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE IN THE
MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) to (c) Article 243W of the Constitution empowers state
legislatures to endow the municipalities with such powers and
authority as may be necessary to enable them to function as
institution of self-government. This law may contain provision for
the devolution of powers and responsibilities upon Municipalities,
subject to such conditions as may be prescribed therein, which,
inter alia, includes (i) preparation of plans for economic
development and social justice, and (ii) the performance of
functions and the implementation of schemes as may be entrusted
to them including those in relation to the matters listed in the
Twelfth Schedule. The Government is of the view that the
preparation of City Economic Development Plan framework is
needed. The Ministry has urged the State/UT Governments to
formulate the ‘City Level Economic Vision for 100 tier 2 and tier 3
cities’ in pursuance to the action point emerged from 4th National
Conference of Chief Secretaries held during December, 2024.
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