New Delhi, Jan. 6 -- With India's urban hubs struggling with creaking infrastructure and weak service delivery for bulging populations, the central government is drawing up a blueprint to give municipal administrators greater autonomy over finances and service delivery, while reducing reliance on state and central grants.

The blueprint-expected to be unveiled at the upcoming Union budget-will focus on strengthening urban local bodies' (ULBs') own-revenue sources such as property tax and user charges, two government officials directly involved in the process said, requesting anonymity.

It will also encourage ULBs-including municipal corporations, municipalities and nagar panchayats-to tap market-based instruments including municipal and ...