Urban ScenarioWith the foundation of the Republic of India in 1950, and consequent to reorganization of states, Madhya Pradesh assumed its status in 1956. It was geographically the largest state until 2000. In 2000, the Chhattisgarh region was carved out to create a new state; even then it is the second largest state after Rajasthan. It covers 9.5% of the area (308,000 Sq.) and houses 6 per cent of the country’s population (72.5 million). On the basis of the size of urban population in the country, it ranks 8th and accounts for 5.58 per cent of the total urban population. 476 cities and towns of Madhya Pradesh accommodate 20.1 million populations and following the national trajectory of urbanization closely. The growth of towns during 1901-2011 in the state reveals that it is more rapid than that of the national average. The number of towns has increased from 253 in 1981 to 350 in 1991 and 368 in 2001 and 476 in 2011. This increase is owing to the emergence of new towns within the proximity of large cities, new centers of industrial and commercial activities, thermal power stations and partly due to the creation of urban local bodies by the state government which were formerly rural areas.Urban Governance in MPThe urban Madhya Pradesh has 378 ULBs comprising 16 Municipal Corporations, 98 Municipal Councils and 264 Nagar Parishads. The urban sector faces a number of challenges coupled to a high level of planned investment in urban infrastructure and reforms under various government and donor funded initiatives. These challenges place considerable pressure on municipal corporations which lack sufficient capacity to implement many of the investment programmes according to plan.