Parastatal agencies
Also called: Special purpose agencies · Topic: Urban Local Government: Municipalities and Cities · NCERT: Beyond NCERT
Meaning
Parastatal agencies are state government bodies that do key city work alongside municipalities. Examples are development authorities, water boards and housing boards. They do core Twelfth Schedule work such as planning, water supply and housing. But they answer to the state government, not to the elected city council. This splits accountability, which means citizens cannot tell who to hold responsible, and it weakens elected municipal councils.
Example
The Delhi Development Authority (DDA, 1957) and the Mumbai Metropolitan Region Development Authority (MMRDA, 1975) plan their cities instead of the municipal corporations. Smart City SPVs, which are companies set up to run Smart City projects, are another example.
Don't confuse with
- Urban local bodies (municipalities): they are elected under Part IXA of the Constitution and answer to voters. Parastatal agencies are set up by the state and answer to the state.