The report provides broad guidelines on establishing a proposed Centre of Excellence for local governance aimed at strengthening the institutional support framework for local governance.

Background to the study The Ministry of Panchayati Raj (MoPR) has been actively involved in promoting the agenda for reforms to strengthen local governments and local governance in India.In order to further strengthen the institutional support framework for local governance, MoPR is considering establishing a Centre of Excellence for Local Governance (CoE) and has mandated PricewaterhouseCoopers Pvt. Ltd. (PwC) to prepare a detailed project report for the proposed entity.

The study bases its findings on a mix of primary and secondary research, field visits and discussions with UNDP coordinators.Interviews/discussions were carried out with a wide range of stakeholders including Central Ministries, State governments, NGOs, national level institutions like NIRD, SIRDs, institutions working on Panchayati Raj, experts on Panchayati Raj (PR) in the country etc.

Challenges

Panchayati Raj Institutions (PRIs) and local self government bodies in general, face several challenges, many of which are well documented. Some of the important ones include the following:

1) Inadequate devolution of 3Fs- Funds, Functions and Functionaries

2) Limited capacity building for executing local governance

3)Constitutional scheme relating to local governance- including delays in constituting local government, holding elections, reluctance to effectively empower local self government bodies, reluctance/delays in constituting District Planning Committees

4) Weaknesses in decentralized/integrated planning limiting the scope for determining and addressing local priorities

5) Limited role/involvement of PRIs in implementation of projects under Centrally Sponsored Schemes