This research study is based on the proposition that proximity to the governed, and their participation, is a defining feature of effective governance. With almost one-third of India's population residing in urban areas, it is imperative to explore legal, regulatory and institutional options to enable greater citizen participation in the planning and implementation of urban governance. While the 74th Amendment to the Constitution of India (in 1993) provides a common framework for the content and structure of urban local self-governance across the nation, this study is seeking to establish the pillars of accountability and autonomy on this constitutional foundation of participatory form of local governance. Accountability is in terms of the devolved powers being exercised by the urban local bodies to achieve the planned outcomes in the core functional domain. Autonomy is essential for the municipal bodies to collaborate with the private sector expertise and leverage the enormous economic synergy that is now associated with establishment and provision of urban infrastructure and public services. Specific deliverables are based on the objectives of the study, which are to: review the relevant aspects of the constitutional framework, propose the legislative support required to enable autonomous contracting by the municipal government, and suggest an agenda to enable an empowered form of participatory urban governance.