AMRITSAR CITY DEVELOPMENT PLAN. Appraisal Report (Summary)
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1 AMRITSAR CITY DEVELOPMENT PLAN Appraisal Report (Summary) General: The City Development Plan for Amritsar has been prepared very well. The revised report is comprehensive and has incorporated relevant aspects concerning religious, social, cultural and environmental heritage of the city. The report, developed through consultations, addresses adequately the needs of the town and presents a set of well articulated strategies to meet with its vision to make Vision and Strategies: Amritsar to be an international cultural, historical, pilgrim centre with agro-based food processing destination, having improved world class urban infrastructure & transport system. Further, it shall cater to the needs of the surrounding settlements as a central place for their social needs like health & education. The development shall be environmentally, economically and socially cohesive for tapping the hidden potentials of the city, both as a tourists & centre as trade & commerce hub. The goals to achieve the vision, as identified by the city are: Sustainable economic development of the city based on its inherent strengths: Through conservation, preservation and development of heritage, culture (Urban Renewal) Promotion of tourism Promotion of trade, education and industrial sectors Planned city growth Integrated infrastructure development with a focus on strengthening existing systems, augmentation, equitable coverage and sustainability Improved access to housing and urban basic services to the urban poor Efficient and Responsive Municipal Corporation/Urban Governance Summary by sectors is as follows: City Economy and Growth: The city of Amritsar is a trading city of the state of Punjab. The city has traditionally been a trade link to central Asia, Europe and China for the Indian subcontinent. It has the potentiality to become major trade and export centre of the country. The city is known for its religious significance, cultural vibrancy that is rooted in its folk traditions and social harmony. Given its location in the border and due to disturbances in the 80s and the 90s the population growth has been generally slow. However, during the past decade the city experienced a rapid growth. With trade between Pakistan and India improving, the prospectus of Amritsar as a trade centre has improved. The economy has shown vibrancy which is visible in the new developments dawn in the city-scape. The number of people visiting Amritsar has increased many folds. According to an estimate about 50,000 people visit Golden temple everyday. All these have impact over the socio-economic context of the city. Unregulated growth, urban sprawl, increasing landuse conversions with in the old city placing pressure on the overburdened infrastructure are major areas of concern. While the inflow of visitors has risen, the facilities available within the city are limited. Declining industrial activities is also a major concern. The economic potential of the city as a trade and logistic hub, as an international tourist centre need to be exploited. Given the trends the city is likely to grow from the present 1 million people is likely to grow to 1.5 million by A detailed Master Plan through integrated approach needs to be formulated which will carry forward the proposals under the CDP.
2 The population growth rate adopted by the city for forecasting future appears to be on the lower and may need examination while finalizing the DPRs. Overall: Infrastructure Needs and Projects: The infrastructure gaps are large. The needs of the poor, who constitute about a third of the population, are even greater. Overall investment requirement for the period as identified is about Rs.3150 Crores. Further these have been prioritized and phased out over a period of time. For the JNNURM plan period, the proposal is to reach a target investment of Rs Crores of which Rs. 923 Crores will be on the municipal balance sheet and the other sources include funding from GoI and GoP under JNNURM and the rest of Rs through public-private partnership mode. The present status and proposed sectoral allocation of Rs. 923 Crores (of Municipal Projects) proposed under JNNURM framework is summarized below: Urban Renewal: An amount of Rs. 36 Crores (4%) have been identified for projecting related to Urban Renewal. A detailed comprehensive pan is proposed and an initial identification of needs are for walled city upgradation of physical environment, conservation of heritage building (in partnership with people) IEC activities, developing and organizing city walk tours etc. Improvement, renovation and replacement of infrastructure facilities (Water and sanitation and roads) have been included as part of respective sectoral proposals. Water-Sanitation: The Municipal Corporation of Amritsar (MCA) is responsible for urban services in the city, including water supply, sewerage and solid waste services over an area of 11,495 ha. In year 2004, a development Plan was prepared to cover the city with 100% water supply and sewerage facilities along with construction of treatment plants. The city presently depends exclusively on ground water. The distribution is on intermittent basis and the only form of treatment is disinfection by the addition of bleaching powder at a limited number of the wells. The system is old and poorly maintained, with the result that estimated water losses are very high (63%). No water production meters have been installed. It is estimated that 80% of the total population of Amritsar has access to potable drinking water supply and that 51 of the 60 city wards are served. The remaining 9 wards are reported as having "partial water supply" meaning that the area of coverage is limited. There are about 1.26 lakh connections. Water charge is based on volume (in case of metered connections which are very few-40 numbers) and for others its based on the floor area of the house. The rates increase with increase in the size. Sewerage: The MCA operates and maintains the public underground piped sewerage system. The system consists of some 59 kms of large diameter (above 400mm) sewers and around 499km of small diameter lateral sewers (below 400mm). Assuming 6.2 people per household (as used in water supply calculations) and the stated figure of 94,928 domestic connections, it can be estimated that 588,554 people are served. This represents 56% of the estimated 2005 population (1,043,926). There is currently no sewage treatment operating on the domestic sewerage system. They generally pump sewage directly into an adjacent watercourse, mostly the towns storm water drains or nallahs. All the nallahs are heavily polluted throughout the city, not just with grey, water but also with foul sewage and domestic refuse. All run in close proximity to housing, and some of the poorest communities have actually colonised the banks of the nallahs. The nallahs cause a significant eyesore and pose a substantial health risk to the adjacent communities. Solid Waste: There are 235 Mohalla Sudhar Committees (MSCs) within the city, representing specific localities, which undertake the responsibility of house-to-house collection of solid waste by engaging and supervising a limited number of safai sevaks (sanitary workers). Proposal: The water-sanitation sector which includes water supply, drainage and sewerage, and solid-waste management accounts for 34% (Rs. 321 Crores) of the overall investment proposed as ULB project during the period This integrated project also includes the
3 needs of the poor and aims at achieving internationally acceptable standards with regard to delivery of service, efficiency in operations and cost recovery. A detailed project report has been already prepared. Urban Transport: The road network of Amritsar is primarily radial with all the regional roads leading to core city. The G.T. Road forms the Central spine of the city. Most of the development in the city has taken place along these radial routes. The city does not have any distinct ring road, although a Circular Road does exist in the new parts of the city. The Amritsar-Delhi railway line that also is an international link with Pakistan is a major physical barrier for traffic movement within the city. Congestion, parking, pollution are some of the identified issues. Proposal: Major investments are proposed for Urban Transport sector (54%). The projects include making walled city accessible with pedestrian and NMV (Non motorized Vehicles) initiatives, road network improvements with major component on extension of elevated road system, other grade separated facilities. Urban Poor Housing and Services: There are about 30% of he population living in slum areas. Many of these pucca houses but are quasi-legal and/or lack major services. Proposal: An amount of Rs. 70 Crores (98%) have been earmarked for Urban Poor Housing and services. Institutional Development: Current Framework: MCA provides most of the services. Institutional capacity building is a priority. Solid Waste is managed on PPP mode. S.No. Service/Function Planning & Design Implementation Operation & Maintenance 1. Development Plan Town Planning MCA - Preparation (Landuse Department, GoP Zoning & Regulation) 2. Water Supply Punjab Water MCA MCA Supply & Sewerage Board (PWSSB) 3. Sewerage & Sanitation PWSSB MCA MCA 4. Storm Water Drainage PWSSB MCA MCA 5. Solid Waste MCA MCA MCA Management 6. Roads & drains MCA MCA MCA 7. Street Lighting MCA MCA MCA 8. Urban Transportation MCA Private operators Private operators 9. Traffic Management Traffic Police/MCA Traffic Police Traffic Police/MCA 10. Transport Registration _ District _ & Regulation Transport Officer 11. Parks & Play fields MCA MCA MCA 12. Health & Education GoP & MCA GoP & MCA GoP & MCA 13. Fire Services MCA MCA MCA 14. Slum Development MCA MCA MCA 15. Poverty Alleviation GoI/GoP/MCA GoP/MCA/NGO GoP/MCA/NGO programs
4 Proposal: MCA has severe limitations in terms of institutional capacity and systems. Capacity building activities such as training, expanding e-governance activities etc., are planned (Rs. 11 Crores). Urban Finance: The analysis of the Municipal Fund presents that own revenue sources contribute about 95% of the municipal revenues Of this, 52% comes from Octroi and about 6% from Excise duty on liquor. Octroi has been abolished in the state of Punjab w.e.f September 2006, and the Municipal Corporation will receive Octroi compensation grant in lieu of this action. As a result this would constitute assigned revenue and would be formulabased and not directly relevant to municipal functions. Considering that Excise Duty and Octroi compensation would be state transfers, the reliance of the ULB on state transfers would go up substantially from the current nominal 5% to about 60%. These transfers are generally not predictable and would not accrue to the municipal fund on a timely basis, thereby constraining the municipal working capital. MCA would need to enhance their own revenue sources, especially: 1. House tax which is very low (average annual demand of Rs. 400 per assessment) and has been poorly administered as is evident from the poor collection efficiencies (40%) 2. Setting tariffs for water and sewerage services and ensuring collection efficiencies at least to the extent that the realizations meet O&M costs in the medium term and the life-cycle cost in the long term MCA has a large land holding (valued at about Rs. 7,000 crore), they should evaluate and implement appropriate interventions to put this resource to effective use in a manner that facilitates landuse / activity / sprawl control and revenue enhancement for the Municipal Corporation, rather than through mere sale of land. On the expenditure side, the O&M expenses have grown at a CAGR of about 24%, which is very high compared to normal inflation rates. This could be attributed to inefficient management of the utility systems. The CDP identifies energy audits, which is highly recommended. But MCA may also want to consider a carrying out business process reengineering exercise to identify and address other functional and systemic inefficiencies, including HR elements such as right-sizing The FOP is elaborate at the macro-level, but needs to be fleshed out further to ascertain the impacts of the actual investments based on relevant information and detailed cash-flows emerging from the DPRs for each project. The investment sustenance figure of Rs. 1,086 crore would depend on the actual impact of the proposed projects (in terms of the coverage of the proposed infrastructure systems and actual O&M costs that depend on technology choice). However, at the aggregate level analysis, the investment sustenance of Rs. 1,086 appears justified. Reform time line has been given. The city has been advised to host the CDP on the website for public review. A copy of the municipal councils approval will also need to be sent. Conclusion: In general the plan is in accordance with the JNNURM Tool Kit and is sound enough to serve as the basis for project identification, financial and reform planning and monitoring \. CDP is recommended for approval.
5 However, as Amritsar s prospects largely revolve around the religious heritage of the city it is felt that an elaborate plan with more broad based consultations (including the people living in other parts of the world) to position the city as an international cultural, historical, pilgrim centre.. is required. The plan need to carryout a more detailed analysis of city economy, its potentials and constraints, the analysis of finance, financing strategies etc., To realise the projects proposed under municipal and PPP mode organizational restructuring and project management framework need to be evolved. The guidelines developed for Heritage Cities under JNNURM would be of use. The same may be submitted within a period of one year..
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