"There will be gradation of municipal bodies and funding will be based on local bodies' performance," Naidu said at the consultative meeting on urban governance with ULBs of eastern states.

He also called for reforms, which, he said, is need of the hour adding that "Reforms are required in urban governance, and are which are missing and are not in a good shape."
Naidu emphasised on the need for white paper on financial position of ULBs and said they should gradually move toward self-sufficiency.
He asked the ULBs to take bold steps and come out of populist measures to strengthen their financial condition. The Centre, he said, will support in projects for digitisation of land records.
West Bengal Urban Development Minister Firhad Hakim said that the state has taken several measures, including township policy to accommodate urbanisation pressure on existing cities.

Minister of State for Urban Development Babul Supriyo urged Hakim to carve out Asansol into a separate district. The Centre, he said, was gradually reducing the share of central funds of many projects and about Rs 1500 crore is due for few projects. The money had been cleared but not disbursed.

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