city development plan 2031 kolhapur

City Development Plan 2031

Kolhapur

Urban Infrastructure Development Scheme For Small And Medium Towns

Industrial Hub, Tourist Attraction, Robust Infrastructure, Knowledge industry

The Destination: KOLHAPUR

I am heartened to know that Kolhapur has developed a firm vision for its future in the form of the City Development Plan.

Kolhapur occupies a cherished position in the state of Maharashtra, be it in the field of agriculture, arts or industry. From ancient times it has made valuable contributions to Marathi culture and indeed to the Indian society, especially in the areas of Marathi film industry, food, religion and literature.

It is a continuous endeavor of the State Government of Maharashtra to ensure that all its citizens have access to basic infrastructure, a better standard of life and proper opportunities to earn their livelihood. The schemes of Central Government like JNNURM and UIDSSMT provide the tools to support this vision for Maharashtra.

Kolhapur has utilized the opportunity provided by UIDSSMT by defining a systematic vision and action plan to upgrade Kolhapur’s urban infrastructure and administrative machinery. The process of preparing the City Development Plan ensured that all the stakeholders of the city had a say in defining the vision. The City Development Plan envisages the future status of Kolhapur as a hub for industries – engineering, IT and agro based, famous as a tourist location with efficient urban services.

I commend and congratulate the Kolhapur Municipal Corporation and the citizens of Kolhapur for contributing to this significant step towards development of Kolhapur. I appeal to other cities and towns in Maharashtra to follow the example set by Kolhapur and plan for their own development. I wish all the best to Kolhapur for implementing and getting the fruits of this City Development Plan.

Vilasrao Deshmukh

Chief Minister Maharashtra

Located at the gateway of Konkan, Kolhapur enjoys the status of a traditional, beautiful and economically developed city. It has always been treated as an important city in Maharashtra, indeed in India, especially in the areas of agriculture, industries and culture.

Today when India is at the doorstep of attaining the status of an economic superpower, Kolhapur does not want to be left behind and actually intends to contribute to India’s economic development.

To do this, the city’s basic foundation consisting of physical infrastructure, administrative framework and economic functions need to be strong. Kolhapur has developed a City Development Plan with this vision of strengthening its basic foundations. The plan has been derived from a comprehensive process involving inputs form technical experts, public representatives, citizens of Kolhapur and municipal administration. The Plan enables Kolhapur to access funds from Government of India and Government of Maharashtra under UIDSSMT.

The result of the process if now brought together in the form of this plan, documenting the vision for the city and roadmap for achieving the vision. I congratulate the citizens of Kolhapur for contributing to the welfare of the coming generations. I appreciate the efforts of Kolhapur Municipal Corporation for facilitating the same.

Jai Maharashtra

Rajesh Tope Minister of State for Urban Development

Maharashtra

The city of Kolhapur, famously known as the Dakshin Kashi, has always been an important industrial as well as cultural hub. Situated on the banks of the river Panchganga, the city is archaeologically an important place in India, famous for the ancient and aesthetically beautiful temple of goddess Mahalaxmi. Being the headquarters of the Kolhapur district, it is recognised as an important religious and commercial centre of the region and is well-connected by road, rail and air The Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) provides an impetus to the development of Kolhapur’s burgeoning economy.

As a requirement of the Scheme, the City Development Plan (CDP) has been prepared by the Kolhapur Municipal Corporation in consultation with it’s citizens. The CDP outlines the vision for the growth of Kolhapur into “An hub for industries – engineering, IT and agro-based, famous as a tourist location with efficient urban services”. Besides, the Plan also identifies specific strategies and actions to realise this vision.

I would like to commend the Kolhapur Municipal Corporation and the citizens of Kolhapur for jointly evolving this comprehensive and inspiring Plan for the city. I wish the Corporation all success in implementing this Plan and hope that the citizens of Kolhapur will wholeheartedly support the Corporation’s efforts in realising this great vision.

Jai Maharashtra

Harshavardhan Patil Guardian Minister

Kolhapur

I am very happy to inform the citizens of Kolhapur that the City Development Plan for Kolhapur city, with the horizon year of 2031 has been prepared under the able supervision of Municipal Commissioner of Kolhapur Shri Kunal Kumar.

Kolhapur has always been in the forefront of development, be it economic, social or cultural. From centuries immemorial, Kolhapur has been known for its prosperity, tradition, arts and culture. It is now our duty to maintain the honourable position of our city for the future.

As part of this intention of preparing the city to face the challenges of the future and to promise a better quality of life for our citizens, this City Development Plan has been prepared. It is the people’s vision for the city communicated in terms of planned investments in the city’s infrastructure and strengthening the capacity of the Corporation. The document has been prepared in close consultation with the citizens of the city. I am sure that the involvement of the citizens will bring to fore the real challenges of the city.

I would like to congratulate Shri Kunal Kumar and his team and acknowledge their efforts in bringing out this comprehensive document. I am sure that in the coming years this document will guide the efforts of the corporation in the right direction.

Jai Maharashtra

Sou. Saee Ajit Kharade Mayor

Kolhapur Municipal Corporation

Famous as Dakshin Kashi, since ancient times, Kolhapur is a holy place in the state of Maharashtra. Located on the banks of the river Panchganga, with a population of about 4.85 lakhs, covering an area of 66.82 sq.kms, the city is an important religious and commercial centre of the region. Predominantly famous for the ancient and aesthetically beautiful Mahalaxmi temple, the manufacture of leather chappals and the sport of wrestling; the city has a strong engineering and agricultural industry, good connectivity and a conducive climate. The city has all the ingredients for emerging as an industrial hub as well as a tourism location.

The Kolhapur Municipal Corporation, established in 1972 under the Bombay Provincial Municipal Corporation (BPMC) Act, 1949 is the local body responsible for providing basic civic amenities to the citizens and in improving the economic and social infrastructure of the city. The Corporation, with good support from its officials, elected representatives and citizens, has always been in the forefront of accepting and implementing various contemporary ideas and developmental works.

The Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), launched by the Government of India in FY 2005-2006, provides an opportunity to the city of Kolhapur to close the widening gap between existing and desired levels of service delivery. The scheme will ensure improvement and augmentation of service delivery, economic infrastructure, social infrastructure, governance and financial sustainability.

The City Development Plan (CDP) has been prepared by the Kolhapur Municipal Corporation as a step to access the funds under UIDSSMT. It is the Corporation’s strategy that presents the vision for the city, the actions to achieve the same, the financial sustainability of the Corporation and the investments needed for achieving the vision. The CDP prepared by the Corporation with the continuous involvement of the citizens paves the way for achieving the vision of making Kolhapur the “Hub for industries and Tourism Destination with efficient urban services”. The CDP has been developed in close consultation with KMC officials, business groups, industry associations, educational institutions, entrepreneurs, NGOs, CII, companies from IT sector milk association, temple committee and citizens at large.

The city has potential to become a hub for the knowledge industry. The Hon’ble Chief Minister of the State has already declared Kolhapur as the next IT destination of the state. The city offers a supportive investment climate for the IT industries. Besides, IT, agro processing industries, textile, gems and jewellery could be major drivers for the economy of the City in the coming future. The City is beckoning the future with great hopes and aspirations.

It is indeed gratifying that the citizens have provided their continuous support and valuable time in the formulation of the CDP. I would sincerely like to acknowledge the efforts of all the citizens and the concerned staff of the Kolhapur Municipal Corporation. I am pleased to place the City Development Plan before the citizens of Kolhapur.

Kunal Kumar, IAS

Commissioner, Kolhapur Muncipal Corpoartion

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K o l h a p u r C i t y D e v e l o p m e n t P la n

TABLE OF CONTENTS

EXECUTIVE SUMMARY

1 BACKGROUND 1 1.1 City Development Plan 1 1.2 Objectives of CDP 2 1.3 Kolhapur CDP Process 3

2 ABOUT KOLHAPUR CITY 4 2.1 Culture and Heritage 4 2.2 Location and Area 4 2.3 Climate and Rainfall 5 2.4 Linkages and Connectivity 5 2.5 Demographic Profile 5

3 ECONOMIC BASE OF KOLHAPUR 7 3.1 Agriculture and Agro-based Industries 7 3.2 Industrial activities 9 3.3 Information Technology Industry 10 3.4 The Art and Crafts industry 14 3.5 Tourism Potential 16 3.6 Other Areas 17 3.7 Directions for Growth 17

4 KOLHAPUR -- CITY ASSESSMENT 18 4.1 Urban Planning and Development 18 4.2 Urban Basic Services 18

5 URBAN POOR AND SOCIAL ASSESSMENT 29 5.1 Poverty in Kolhapur 29 5.2 Social Infrastructure 30

6 URBAN/MUNICIPAL FINANCE 35 6.1 Framework for Analysis 35 6.2 Financial Status at a Glance 36

7 CITY GOVERNANCE FRAMEWORK AND REFORMS 46 7.1 Deliberate wing 46 7.2 Administrative wing 46 7.3 Reforms being undertaken by KMC 47

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8 FORMULATION OF VISION AND MISSION 49 8.1 Approach 49 8.2 Stakeholder Consultations – The Process and Outcome 49 8.3 Consultation with KMC 50 8.4 Important aspects that define Kolhapur’s Vision 52

9 INVESTMENT CAPACITY AND SUSTENANCE OF KMC 54 9.1 Classification of Annual Accounts 54 9.2 Financing Strategies for CIP 54 9.3 KMC Finance Operating Plan 54 9.4 Municipal Account – Growth Projections and Assumptions 55 9.5 Investment Capacity/ Sustenance 56 9.6 Action Plan for KMC 57

10 CAPITAL INVESTMENT PLAN, STRATEGIES AND IMPLEMENTATION PLAN 58 10.1 Capital investment plan 58 10.2 Capital Facilities, Investment Phasing and Implementation 58 10.3 Prioritisation of the projects 60

11 REFORM ACTION PLAN FOR KMC 85 11.1 Property Tax 85 11.2 Municipal Accounting 85 11.3 Cost Efficiency 85 11.4 E-Governance 85 11.5 Other Reforms 86

12 PERFORMANCE MONITORING SYSTEM FOR KMC 87 12.1 Components of Performance Monitoring System 87

LIST OF ANNEXURES

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TABLE OF TABLES

Table 1: Population Growth of Kolhapur .......................................................................................................5 Table 2: Demographic indicators ..................................................................................................................6 Table 3: Total arrivals of commodities at the APMC.....................................................................................8 Table 4: Milk production units in Kolhapur ....................................................................................................8 Table 5: Details of industrial area - Kolhapur................................................................................................9 Table 6: Engineering Institutes and no. of graduates .................................................................................11 Table 7: Projected number of professionals to be absorbed in IT-ITES industry .......................................14 Table 8: Assumptions for projecting size of IT industry .............................................................................14 Table 9: Water supply connection details ..................................................................................................19 Table 10: Water quality parameters............................................................................................................20 Table 11: Details of drains in KMC area .....................................................................................................22 Table 12: Fleet of Conservancy vehicles ....................................................................................................22 Table 13: Schedule under the Municipal Solid Waste Rules 2000.............................................................24 Table 14: Characteristics of lake water.......................................................................................................25 Table 15: River Water Samples of Panchganga at the confluence of Nalla discharges ............................25 Table 16: Roads within the City Limits........................................................................................................26 Table 17: Major approached and traffic links in the city..............................................................................27 Table 18: Problematic Traffic Junctions in the city .....................................................................................27 Table 19: Vehicles Registered in Kolhapur City..........................................................................................28 Table 20: Number of educational Institutes ................................................................................................30 Table 21: Basic health indicators ................................................................................................................32 Table 22: Health Infrastructure ...................................................................................................................33 Table 23: Incidence of Diseases.................................................................................................................34 Table 24: Financial Status at a Glance .......................................................................................................36 Table 25: Source-wise revenue income (Incl. Water Account)...................................................................37 Table 26: Property Tax Details and DCB Statement ..................................................................................38 Table 27: Application of funds by heads of Accounts .................................................................................39 Table 28: Section-wise Establishment Expenditure....................................................................................40 Table 29: Section-wise Operation and Maintenance Expenditure..............................................................40 Table 30: Outstanding Debt Liability ...........................................................................................................41 Table 31: Capital Income (incl. Water Account)..........................................................................................41 Table 32: Capital Expenditure (incl. Water Account) ..................................................................................42 Table 33: Water Charges – DCB Statement...............................................................................................42 Table 34: Key Financial Indicators..............................................................................................................44 Table 35: Details of staffing pattern ............................................................................................................47

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Table 36: Important assumptions made in the projections .........................................................................55 Table 37: CIP Funding Pattern ...................................................................................................................57 Table 38: Sector-wise break-up of proposed funding under UIDSSMT in Rs. lakhs..................................59 Table 39: Performance Monitoring System for KMC ..................................................................................88

ACRONYMS AND ABBREVIATIONS

ARV Annual Rateable Value NGO Non-Governmental Organization BT Black Topped O&M Operation & Maintenance CAGR Compound Annual Growth Rate PPP Public Private Partnership CC Cement Concrete PT Property Tax CDP City Development Plan RTO Regional Transport Office CIP Capital Investment Plan Sqkm. Square Kilometre DCB Demand Collection Balance STP Sewerage Treatment Plant DPR Detail Project Report SWM Solid Waste Management ESR Elevated Storage Reservoir UGD Underground Drainage EWS Economically Weaker Section UIDSSSMT Urban Infrastructure Development

for Small and Medium Towns FSI Floor Space Index (same as FAR) WBM Water Bound Macadam GLSR Ground Level Storage Reservoir PPP Public Private Partnership GoI Government of India PT Property Tax GoM Government of Maharashtra RTO Regional Transport Office gpcd Grams per Capita per Day Sqkm. Square Kilometre HHs Households STP Sewerage Treatment Plant IPT Intermediate Public Transport SWM Solid Waste Management KMC Kolhapur Municipal Corporation UGD Underground Drainage KMT Kolhapur Municipal Transport UIDSSSMT Urban Infrastructure Development

for Small and Medium Towns LCS Low Cost Sanitation WBM Water Bound Macadam lpcd Litres per Capita per Day MIDC Maharashtra Industrial Development

Corporation

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Executive Summary

The city of Kolhapur famous as 'Dakshin Kashi' since ancient times is a holy place and was historically known for being the capital of the 'Kolhapur Sansthan'. Located in the south-west part of Maharashtra, it is one of the growing cities in Maharashtra, with an area of 66.82 sq km. and a population of nearly 4,85,183 residents (census 2001). The Urban Infrastructure Scheme for Small and Medium Towns (UIDSSMT) launched by the Government of India (GoI), brings an opportunity to this growing city to improve its urban, economic and social infrastructure.

OPPORTUNITY FOR THE CITY

The Urban Infrastructure Scheme for Small and Medium Towns (UIDSSMT) aims at creating economically productive, efficient, equitable and responsive cities. This scheme will be in place till 2011-2012. The objective is to improve infrastructure as well as to ensure long-term sustenance of the ULBs. The funding pattern would be in the ratio of 80:10 between the central and state governments. The balance 10% could be raised by the urban local body (ULB) from financial institutions or by using its own resources.The GoI has framed the UIDSSMT guidelines in such a way that applicant ULBs will be eligible for the grant assistance, provided the cities undertake certain reforms. Thus, to be eligible for the grant assistance under UIDSSMT, the GoI requires cities to prepare project proposals in accordance with the CDP, and draw up a timeline for implementing the urban sector reforms. The Kolhapur Municipal Corporation (KMC) plans to

avail of the funds under this scheme for the improvement of its urban infrastructure. These funds would need to be directed towards priority actions and projects.

KOLHAPUR – AN IDEAL DESTINATION

Kolhapur has a distinct culture developed as a result of rich history and its quality of people who have been front-runners in various fields. Agriculture is the main contributor for the economy of Kolhapur. Its sugarcane industry contributes to over 5% of the sugarcane produced in the country and accounts to a significant share of sugar, jaggery and baggase produced. It is fast becoming an industrialized district as well and already a front-runner in agro-based industries. It is one of the shining examples in the co-operative movement of India, with around 11,338 societies in the district. The industries in Kolhapur mainly comprise sugar industries, textile mills, engineering units and foundry units. There are nine industrial estates in Kolhapur, with 1,207 functioning units. Kolhapur has an innate potential to become a center for Information Technology and provides a relatively inexpensive alternative to Pune and Bangalore.

One of its sovereign gifts to the world is the Kolhapuri Chappals (slippers). Other than that, the city is also famous for its art and handicrafts and silver jewellery. Its rich legacy, tradition and culture, the presence of the Mahalaxmi temple, palaces, the various arts, delicious cuisine and rich culture make the city an ideal tourist destination. The city attracts around 30 lakhs of religious tourists every year with an average

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daily floating population is over 2 lakhs. This also drives the demand for hospitality services, tour and travel operators.

The current demographic and economic profile of the city indicates that the future growth of the city depends on the creation of new economic drivers, specifically in the areas of tourism and IT. Building and consolidating on its present strengths in the engineering industry, handicrafts, agriculture and agro-based industries, will have to be carried out simultaneously.

Given the immense potential of the town, a City Development Plan has been prepared to provide an integrated solution for problems facing the city.

CDP - AN INTEGRATED SOLUTION

The City Development Plan (CDP) is the Corporation’s corporate strategy that presents both a vision of a desired future for the city. It identifies an economic growth strategy as well as actions that would be required by various agencies to ensure the city’s sustainable development.

CDP, thus prepared with the involvement of the stakeholders, is a forward-looking consensus program for the city. It outlines the way to -- improve service levels, improve financial sustainability, and create a citizen-friendly, accountable and transparent administration by implementing reforms.

Finally, the CDP will reveal the Corporation’s strategy to manage its resources, i.e., how it intends to increase revenues and expand its tax base to allow for self-sustaining urban service delivery; improve its creditworthiness; and recruit and retain a skilled workforce.

ASSESSMENT OF PHYSICAL AND SOCIAL INFRASTRUCTURE

To formulate the City Development Plan, an assessment of the existing situation in Kolhapur town has been carried out with respect to its basic infrastructure, its physical and environmental aspects, and the financial status of the Kolhapur Municipal Corporation.

Land use: According to the current development plan in force, the proposed land use mix in Kolhapur by 2011 indicates allocation of 67% for development -- 35% being allotted for residential use and 29% for recreation and entertainment. Of the remaining 39% land, 29% is allotted for agricultural use, 3% for commercial and the rest for utilities and water bodies.

Water Supply: The city of Kolhapur gets a raw water supply of 128 MLD, of which the Corporation supplies 120 MLD; 8 MLD is obtained through ground water sources. The city has four treatment plants with a design capacity of 162 MLD; of this, 119 MLD of water is utilized. The city has 66,625 connections, all of which are metered. Besides this, KMC has set up 2,051 Public Stand Posts in the city. The Corporation charges the users depending upon their consumption, and the tariffs are revised every year. The key issues in water supply service are the current distribution and transmission losses amounting to 20%, capacity of the water supply system limited to projected population upto 2011, and leakages in the system. The poor state of the plant and machinery is also a cause for concern.

Sewage and sanitation; At present, Kolhapur is generating 75-80 MLD of sewage. The city has a single centralised treatment facility of capacity 45 MLD. The current sewerage system covers only 30% of the total area. The current STP undertakes merely primary treatment of the sewage. With increasing FSIs and increasing population, the pressure on the city’s infrastructure has increased drastically. There are frequent pipe bursts leading to sewage overflow. Also, the sewerage network is poor in the suburban areas. The polluting of the downstream water in the Panchganga River is also a cause for concern.

Drainage; The drainage system of Kolhapur consists of rivers, natural channels and roadside drains. Tertiary drains are roadside drains constructed by the KMC for collecting and

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conveying storm water to the secondary and primary drainage network.

Solid waste management; The primary sources of solid waste in Kolhapur are local households, markets, commercial establishments, hotels, restaurants, and hospitals. The total quantity of waste generated is in the order of 170 tonnes per day (TPD) at a per capita generation of 342 grams per day. The percentage of waste collected and disposed is 86% of the generation. The landfill site identified by KMC is being disputed by residents of the adjacent areas. A substantial number of posts in the Conservancy Department of the corporation are lying vacant. Also, the door-to-door collection of waste is inadequate.

Road and transportation; The city of Kolhapur is well connected through rail and road transport facilities and also has a few flights connecting it to Belgaum and Mumbai. It acts as a point for interstate transport routes between Maharashtra, Goa, Karnataka and the southern states, and serves as a key transport location. The dominant public mode of transport in Kolhapur is road transport. Kolhapur Municipal Transport (KMT), a KMC undertaking, provides public transport in Kolhapur. Vehicular traffic in Kolhapur has increased during the period 1997-2006 at a CAGR of 34%. This has put tremendous pressure on the city’s existing infrastructure. Therefore, the general condition of roads is bad and worsens during the monsoons. Parking is inadequate in proportion to the number of vehicles.

Urban poverty: There are 54 slums in Kolhapur, of which 44 are declared and 10 undeclared. The total slum population was approx. 56,235 as on 01-01-1995, which is 11.60% of the city’s total population. Urban basic services are adequately provided to the slums in Kolhapur. All the slums have access to water supply, either through pipes or stand posts provided by KMC. Only 15% of the slums do not have access to sewerage or drainage facilities. Solid waste management facilities are provided to almost 75% of the area. KMC has undertaken several initiatives to improve the standard of living of the slum-dwellers and provide them with the basic level of services, including programmes under the Valmiki Ambedkar Awas Yojna, SJSRY and Neigbourhood programmes. The key issue related to slum-dwellers is that they do not possess tenure of the land on which they stay. Also, the resettlement and

rehabilitation of the slums is difficult due to the shortage of land with KMC.

Social Infrastructure: Kolhapur has a large number of educational institutes at all levels, including government and private institutions. All areas under the jurisdiction of the Kolhapur Municipal Corporation have been covered by compulsory primary education, and large-scale public awareness programs are being conducted. There are 166 primary schools in the city in both the government and private categories. Kolhapur also takes pride in a Shivaji University and a NAAC five-star rated institution. It is most famous for its literature, arts, commerce, bio-technology, environment and science departments.

Health infrastructure in Kolhapur includes poor state of equipment and property in municipal hospitals and dispensaries, inadequate and poorly trained staff and inequitable distribution of medical services. Moreover, there have been frequent outbreaks of epidemic diseases, especially during the monsoon months.

Social evils and poverty reduction; Kolhapur is witnessing a rise in prostitution, with increasing trade and commerce. The city ranks third in Maharashtra in terms of prostitution and first in terms of ‘female foeticide’. Today, the city faces several problems in the social arena such as increased crime rate, increased female foeticide, and growing number of cases of atrocities on women. The city today has the lowest female to male ratio, i.e., 816/1000. Under SJSRY, mahila bachat gats have been created. These gats (groups) come together and produce products. However, there is no market for these products. There is a need to market these products and create awareness about the same.

ASSESSMENT OF MUNICIPAL FINANCES

KMC’s current accounting system is cash-based; income and expenditure heads are maintained on a cash basis. All the expenses towards regular maintenance are treated as revenue expenses, while expenses on new projects are treated as capital expenses. KMC’s current accounting system is cash-based; income and expenditure heads are maintained on a cash basis. It has been observed that KMC’s budget is inflated due to the practice of recording the receipts of grants first as revenue income and then subsequently apportioning in

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capital income. For the analysis, KMC’s annual accounts for the last five years have been recasted.

Revenue income of KMC has grown to a level of Rs. 9,959 lakhs in FY2005-06 from Rs. 8,581 lakhs during FY2001-02, registering a compounded annual growth rate (CAGR) of 4%; revenue expenditure increased at a CAGR of 8%. This indicates a decline in the financial condition of KMC. KMC maintained an average revenue surplus of over 10% of its revenue income.

Octroi is the single largest source of income accounting for about 51 percent of municipal revenue income. During the last five, it has registered an average annual growth of six percent. Octroi is followed by property tax, which is charged as a percentage of the Annual Rateable Value (ARV). The average collection performance stands at about 76 percent of the total demand, indicating scope for further improvement of collection efficiency. The non-tax income accounts for about 33.2 percent of KMC’s revenue income and has registered a CAGR of one percent. Water charges and other water income account for the majority of the non-tax revenues and contribute more than 18 percent of the revenues.

Revenue expenditure of KMC has registered an average annual growth of 8% against growth in revenue income by 4%. The establishment expenditure, including pension contribution and pay commission revision, alone account for over 65 percent of revenue expenditure. O&M expenditure accounts for about 29 percent of the total expenses and expenditure towards debt servicing accounts for just about two percent of revenue expenses, indicating scope for the further leveraging of KMC’s resources to implement large-scale projects.

Capital income of KMC comprises loans, grants and contributions; transfers from revenue surplus; and utilization of funds from sinking funds. As mentioned earlier, in recent years, KMC has neither availed of any loans nor

received any capital grants. Capital expenditure is mostly met from revenue surpluses. On an average, over the past five years, the majority of capital expenditure has been directed towards water supply and sewerage systems, and roads and traffic.

Review of the outstanding loan statement of KMC, as on 31st March 2006, reveals that the net outstanding debt liabilities of KMC stand at Rs. 3,617 lakhs, which is high in comparison to its revenue base (36% of its property tax demand). Cost recovery from water supply operations is around 100%, if the taxes pertaining to water supply are also taken into account. However, analysis indicates that there is a large number of illegal connections in Kolhapur. The collection against demand is only 76% in Kolhapur. The cost recovery by way of direct user charges alone (excluding taxes and other water income) is about 91% against a desirable 100%. No user charges are collected for sewerage services; the only recovery is in the form of the special sewerage tax and sewerage benefit tax. Cost recovery by way of indirect charges is 20% against a desirable 100%.

CITY GOVERNANCE AND REFORMS FRAMEWORK

Established in 1972, KMC is governed by the Bombay Provincial Municipal Corporation (BPMC) Act, 1949. The deliberative wing of KMC is its general body, consisting of 77 elected members and five nominated members. The general body of KMC is headed by the mayor. The Standing Committee, as specified in the BPMC Act, is the most important committee of the Corporation. Most of the financial powers are vested with the Standing Committee.

The municipal commissioner is the key figure in local self-government and is the administrative head of KMC; the commissioner is assisted by senior officials in discharging his functions. The commissioner manages the day-to-day affairs of the Corporation, subject to approvals and sanctions from the Standing Committee and the Corporation. KMC is divided into five wards, each headed by a ward officer. The total strength of officers and employees at KMC is about 3,777, as against the approved employment level of about 4,779.

KMC has undertaken quite a few reforms in the administrative framework, including initiating

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implementation of GIS, computerisation of the property tax database and computerisation of the building plan approval system. Tenders have been made available on the Corporation’s website.

FORMULATION OF VISION STATEMENT

The CDP is the Municipal Corporation’s strategy that outlines the vision for the growth of the city and details how the Corporation, together with stakeholders, intends to achieve its long-term vision. In this context, stakeholder consultations were conducted to arrive at the vision for the development of Kolhapur and to understand the issues of the city. Various rounds of consultations in the form of workshops and focus group discussions were held during the period 22nd August to 11th October ’06.

The first consultation was held with the KMC officials and people’s representatives to make them aware of UIDSSMT and the CDP process. The objective of the workshop was to get the implementing agency’s views on issues such as the importance of Kolhapur, the strengths of the city and the desired focus areas for the development of the city and the region. The second consultation was held to bring together municipal decision-makers and stakeholders, to define the vision for the city and the various sectors of Kolhapur. The stakeholders hailed from diversified backgrounds, including representatives of non-governmental organisations (NGO), industrial and trade associations, health and education, town planning, and senior citizen groups. The third consultation was in the form of focus group discussions to understand the specific needs to be addressed by the CDP and to ensure that the diverse inputs are integrated in the plan. The Confederation of Indian Industries (CII) also held a series of workshops with renowned citizens, inviting them to discuss their vision for the city, its strengths and weaknesses, its economy and basic infrastructure issues.

Based on the inputs of the stakeholders a SWOT analysis was carried out for Kolhapur

city. Finally, based on the consultations, a review of the current status of Kolhapur and the SWOT analysis, the vision for Kolhapur was defined thus -- ‘Kolhapur as a hub for industries – engineering, IT and agro-based, famous as a tourist location with efficient urban services’.

INVESTMENT CAPACITY AND SUSTENANCE

The investment capacity of KMC is assessed through a Financial Projection – Financial Operating Plan (FOP), which gives a multi-year forecast of finances of the local body for a medium term. In line with the phasing of identified investment from 2006/07 to 2011/12, the sustainability of KMC has been worked out. In determining the long-term financial strategy, KMC plans to raise resources and fund the Capital Investment Plan (CIP) by accessing funds available under UIDSSMT and using internal sources of revenue. KMC plans to improve the internal sources of revenue through revision of ARV at certain levels, revision of water and sewerage tariffs at specific intervals, transfer of water and sewerage tax to the relevant account heads, maintenance of the collection performance of taxes and charges and increase of its borrowings.

Given the existing financial position of KMC, the revenue and capital accounts of KMC are projected against the growth scenario and assumptions presented above. The FOP is generated from the sustainable investment point of view in line with current growth trends against the recommended investment of Rs. 771 crores at constant prices till 2011-12.

It is observed that following the current growth trends, KMC can sustain an investment of Rs. 556 crores (constant prices), which is 72% of the identified investment till 2011-12. This indicates the present soundness of KMC’s finances and its capacity to take up large-scale infrastructure projects on its own. Various revenue improvement measures in property tax like the

Capital Grants to be made available under UIDSSMT Framework

80% Grants from GoI

10% Grants from GoM

own resources through reforms in functional areas

Property Tax reforms/ unassessed propertiesRegular revision of user charges, improving collectionsIntroduction of Sewerage Charges

10% Funding from Own Sources/ Debt

in the form of GoM share Rs. 11.5 crores

Funding proposed over the next 6 Years2006-07 to 2011-12Approx. Rs. 92 Crores (escalated) proposed UIDSSMT Grant from GoI

Rs. 115 Cr proposed under UIDSSMT Funding

Revolving Fund to be created equivalent to 25% of UIDSSMT Funding

Capital Grants to be made available under UIDSSMT Framework

80% Grants from GoI

10% Grants from GoM

own resources through reforms in functional areas

Property Tax reforms/ unassessed propertiesRegular revision of user charges, improving collectionsIntroduction of Sewerage Charges

10% Funding from Own Sources/ Debt

in the form of GoM share Rs. 11.5 crores

Funding proposed over the next 6 Years2006-07 to 2011-12Approx. Rs. 92 Crores (escalated) proposed UIDSSMT Grant from GoI

Rs. 115 Cr proposed under UIDSSMT Funding

Revolving Fund to be created equivalent to 25% of UIDSSMT Funding

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identification of unassessed properties, regular revision of tax rates, and improvement of collection efficiency are expected to increase KMC’s investment capacity by an additional Rs. 116 crores, which amounts to an additional 15% of its base investment capacity.

Further, revenue improvement measures in the water supply and sewerage sectors like the regularisation of unauthorised connections, regular revision of user charges and new connection deposits, and improvement of collection efficiency are also expected to augment KMC’s investment capacity.

Mode and sources of Funding

Amount (Rs. Crs)– Current Prices

% of Total Investment

Identified Sustainable Investment till 2011-12

709.71 100

Grants (UIDSSMT) 610.23 86 GoI grants 542.43 76 GoM grants 67.80 10 Loan (Open Market/ FIs) 16.74 2 Own sources (KMC) 82.74 12

PROPOSED PROJECTS

The total estimated capital investment required for providing efficient services to the present population and future population of KMC by the year 2031 is Rs. 1107.71 crores at constant prices. Of this, a sum of Rs. 771.88 crores is proposed for investment by 2011-12.

The planning horizon for the projects identified in the sectors of urban poor/slums, land use/development planning and other projects is 2011-12. Accordingly, the entire identified investment is proposed for funding by 2011-12 itself. The planning horizon for the core service sectors of water supply, sewerage, drainage and solid waste management is 2031. Hence, only a part of the identified investment is proposed for funding by 2011-12. The table below presents the summary of KMC’s sector-wise total investment needs and investments up to 2011-12.

Investment till 2011-12 (Rs. lakhs) Sector Total Investment

Need (Rs. lakhs) Base Cost Escalated Cost*

% Sector wise of Total

% Investment till 2011-12 against Total

Identified by KMC

Water Supply 6,477 6,477 7,999 8.1% 100% 7285 Sewerage & Sanitation 14,202 14,202 17,745 18.0% 100% 17322 Roads &Urban Transport+ 60,434 34,188 44,140 44.8% 84% 34025 Drains 14,412 11,420 14,611 14.8% 79% -- Street Lights 580 345 429 0.4% 59% -- Conservancy (SWM) 2,107 1,147 1,413 1.4% 54% -- Urban Poor/ Slums 4,883 4,883 6,531 6.6% 100% -- Land use/ Dev. Planning 5,285 2,135 2,766 2.8% 40% -- Others ++ 2,391 2,391 2,937 3.0% 100% 104 Total 110,771 77,188 98,571 100.0% 85% 58,736

Of the total investment need of Rs. 771 crores, KMC has prioritized projects worth Rs. 587 crores. The prioritization of projects has been based on discussions with key stakeholders and officials of KMC. In addition to these specific projects, strategies have been identified for tourism, culture and heritage preservation, information technology and communication industry, environment management and social infrastructure.

REFORM ACTION PLAN

The above analysis and actions indicate that KMC is in a good position to tap UIDSSMT funding. The analysis is based on the

implementation of measures as well as the institutionalization of reforms. This would still leave some areas that would need to be addressed by KMC in terms of implementation of a project like water supply. Some of the projects would be exploring possible options of involving the private sector in areas of development, cost recovery, maintenance, billing and collection, pumping, treatment and distribution.

Though one of the main aims of UIDSSMT is to finance the infrastructure investments identified as part of the CDP, the larger objective of the mission is to initiate the much-needed reforms in ULBs. The mission has identified certain mandatory and optional reforms to be

-xi- Kolhapur Municipal Corporation


undertaken at the state government and ULB levels during the mission period, for the ULB to be eligible for funding.

Municipal Accounting: A chartered accountant has been appointed for converting the current single-entry cash based system into a double-entry accounting system. Its targeted to finish the accounting reforms by FY 2009-2010. This firm will maintain the accounts of KMC and simultaneously train its officials for a period of three years.

E-governance: KMC already has an online facility. Tenders are floated on the website of KMC. It also has a registration facility provided through a through Citizen Facilitation Centre (CFC). Currently only one CFC is existing and another 5 are proposed. The payroll, pension and provident fund system is already computerised. Currently, building plans are scrutinized and permission is granted through all ward offices (4 nos). A computerised system has been introduced recently. KMC has committed to comply with the E-Governance reform agenda by FY 2009-2010.

Property tax: The Kolhapur Municipal Corporation currently maintains a property tax collection efficiency of 77%. A survey to identify the unassessed properties has already commenced. A provision of Rs. 50 lakhs has been made in the budget for the implementation of GIS. KMC has proposed to revise the rate of property tax by 10% next year. Also, KMC plans to fine citizens with property tax arrears.

Urban Poor: Currently, only 10% slums households do not have access to water supply. KMC spends around 1.6% of its total budget on providing basic facilities in slums. Unlike other ULBs in Maharashtra, KMC provides additional assistance based on the need of the groups of BPL. The amounts of assistance have been decided with a cap of Rs. 2.50 lakhs. Special training has been given by KMC under SJSRY and they have been able to procure assistance from the local banks for developing entrepreneurship. KMC has targeted to accomplish the reform agenda under UIDSSMT by FY 2009-2010.

User Charges: With respect to recovery of O&M through levy of reasonable user charges, KMC has been successful in revising water tariff every year. It has been able to recover 100% water expenses. Sewerage tax is charged as part of

property tax @ 4% of ARV. Solid waste charged as part of property tax @ 6.5% to 15% of ARV. Commitment to this reform is given as a part of main agreement.

Some other reforms have been initiated by KMC for segregation of solid waste at source, revision of water charges, revision of octroi rate, and adoption of a state IT policy.

In order to undertake effective implementation of the identified projects in a professional manner, KMC needs to adhere to the timeline of the action agenda. The Performance Monitoring System (PMS), would be developed to adhere to the time lines of reforms. This would also ensure timely implementation of the action plan. The PMS would measure KMC’s performance with respect to its service delivery against the committed/set targets under each reform.

EXPECTED OUTCOMES

KMC’s current levels of service delivery has a substantial scope for further improvement. Moreover there is a need to rejuvenate the economic activity in the city by facilitating the development of new business and commercial avenues like tourism and IT. Through this City Development Plan, KMC intends to achieve two objectives; provide the necessary civic amenities to the citizens and stimulate the economic activities. The resource requirement can be realistically met with funds under UIDSSMT (both Central and State funds), KMC’s internal revenues and expected additional revenues from implementation of reform measures.

At the end of the CDP period, KMC would have achieved full and higher quality service coverage and would also be able to maintain a sustainable financial position. KMC would also have built on its strong governance framework and ensured modern financial management, effective e-governance and transparency in its functions.

Current situationExpected sustainable outcomesWill supplement internal

resources

• Stagnating growth• Satisfactory urban

services• Reasonably strong

financials• Integrated organisational

set up• Sound reform platform

• Stimulate economic

growth

• Universal service delivery

• Improved governance,

planning and

accountability

• Financial sustainability

Reform commitmentsWill improve governanceWill supplement grants

Will sustain improvements

Current situationExpected sustainable outcomes

UIDSSMT grantsWill supplement internal

resources






growth



planning and

accountability


Reform commitmentsWill improve governance


Current situationExpected sustainable outcomesWill supplement internal

resources






growth



planning and

accountability


Reform commitmentsWill improve governanceWill supplement grants


Current situationExpected sustainable outcomes

UIDSSMT grantsWill supplement internal

resources






growth



planning and

accountability


Reform commitmentsWill improve governance


-1- Kolhapur Municipal Corporation


1 BACKGROUND

As per the 2001 census, the urban population of India stood at 28.54 crores, which is about 27.8 percent of the country’s total population. By 2021, the urban population is estimated to account for above 40 percent of India’s population. Thus, cities and towns will play a vital role in India’s socio-economic transformation and change. Apart from their contribution to the country’s gross domestic product (GDP), which is currently placed at about 50-55 percent, and their growing role in the global markets, cities in India will be the engines of economic growth, the centre-points of innovation and the hub of many socio-economic activities.

But the current state of affairs in most of our urban areas is far from satisfactory on all parameters of urban governance like planned growth, share of slum population, reliability of civic infrastructure and financial resources. All these factors will have a significant negative economic consequence if not addressed in a planned manner.

1.1 CITY DEVELOPMENT PLAN

Municipal governments and other institutions responsible for service provision are facing an acute shortage of capacity and resources, notwithstanding the 74th Constitutional Amendment Act, 1992, on municipalities. Most municipalities are starved of resources on account of their inability to effectively use their revenue-raising powers, in particular, those relating to property tax and user charges.

Given the current state of affairs of our cities, which is incompatible with the country’s socio-economic objectives and India’s growing role in the world economy, the Government of India (GoI) has launched the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) in 2005-06. The scheme will be in place for the next seven years. The funding pattern would be in the ratio of 80:10 between the central and state governments. The balance 10% could be raised by the urban local body (ULB) from financial institutions or by using its own resources. The UIDSSMT focuses on:

Improving and augmenting the economic and social infrastructure of cities

Ensuring basic services to the urban poor including security of tenure

Initiating wide-ranging urban sector reforms whose primary aim is to eliminate the legal, institutional and financial constraints that

have impeded investment in urban infrastructure and services

Upon completion of the scheme, it is expected that the respective ULB will have achieved the following outcomes:

Modern and transparent budgeting, accounting, and financial management systems will be designed and adopted for all urban services and governance functions.

A citywide framework for planning and governance will be established and become operational.

All urban residents will be able to access a basic level of urban services.

Financially self-sustaining agencies for urban governance and service delivery will be established through reforms.

Local services and governance will be conducted in a transparent and accountable manner.

E-Governance applications will be introduced in core functions of ULBs/ parastatals resulting in reduced cost and time of service delivery processes.

In order to be eligible for grant assistance under UIDSSMT, GoI requires eligible cities to prepare project proposals (detailed project reports) and submit them to state level nodal agencies for appraisal. Also, cities have to draw up a timeline for implementing the urban sector reforms.



The grant from GoI and the state government will flow to the nodal agency designated by the state government. The nodal agency will disburse the central assistance to the ULBs as soft loan or grant-cum-loan or grant. However, the funds may be sanctioned in such a manner that 25% of the central and state grant, put together, is recovered and ploughed back into the Revolving Fund to leverage market funds for financing further investment in infrastructure projects. At the end of the scheme period, the Revolving Fund may be graduated to a State Urban Infrastructure Fund.

The GoI has framed the UIDSSMT guidelines in such a way that applicant ULBs will be eligible for the grant assistance, provided the cities undertake certain reforms. The objective is to improve infrastructure as well as ensure long-term sustenance of the ULBs. Thus, to be eligible for the grant assistance under UIDSSMT, the GoI requires cities to prepare project proposals in accordance with the CDP, and draw up a timeline for implementing the urban sector reforms.

Subject to the fulfillment of the above-stated requirements and their satisfactory appraisal, the GoI, the Ministry of Urban Development/Ministry of Urban Employment and Poverty Alleviation will sign a Memorandum of Agreement (MoA) with the state government and the city will sign an MoA with State Level Nodal Agency (SLNA), and release funds in accordance with the payment schedule that will form a part of the Memorandum of Agreement (MoA).

The Kolhapur Municipal Corporation (KMC) plans to avail of the funds under this scheme for the improvement of its urban infrastructure. These funds would need to be directed towards

priority actions and projects. In this context, KMC appointed CRISIL Infrastructure Advisory to help in the preparation of the City Development Plan (CDP) for Kolhapur city.

1.2 OBJECTIVES OF CDP

The City Development Plan (CDP) is aimed at identifying an integrated solution for problems facing the city. It identifies an economic growth strategy as well as actions that would be required by various agencies to ensure sustainable development of the city.

The CDP is the corporation’s corporate strategy that presents both a vision of a desired future for the city and the municipality’s organization, as well as mission statements on how the municipality, together with other stakeholders, intends to work towards achieving this long-term vision in the next five years.

The CDP should lead to the translation of missions into actions and actions into outcomes. The objective of involving stakeholders through a consultation process and securing endorsements of the proposed actions by the local body and other implementing agencies is to hold these bodies accountable for their mission statements, actions and expected outcomes.

The CDP clearly defines how a corporation will serve its customers (businesses and citizens). For example, the CDP will talk about how the corporation intends to guarantee a basic level of urban services to all citizens; make urban planning responsive to emerging needs; and become responsive to the needs of, and improve its services, to local businesses. The CDP will also outline how the corporation plans to run its business. The CDP will elaborate how the corporation intends to manage public finance in a modern and transparent way; execute urban planning and governance in line with an established framework; and become more responsive -- cost and time efficient – by availing of technology in its governance and service delivery processes. Finally, the CDP will reveal the corporation’s strategy to manage its resources, i.e., how it intends to increase revenues and expand its tax base to allow for self-sustaining urban service delivery; improve its creditworthiness; and recruit and retain a skilled workforce.

City Development Plan

Detailed Project ReportsTimeline for Implementationof Reforms

Application for UIDSSMT fundsApplication for UIDSSMT funds



1.3 KOLHAPUR CDP PROCESS

The formulation of the CDP for Kolhapur has been divided into three phases and involved the following tasks and activities. The approach to the assignment has been primarily analytical (assessment of the existing situation) and consultative (discussions with key stakeholders). The analytical assessment focused on the existing state of affairs in terms of a) services levels, b) municipal finances, and c) institutional arrangements in provision of services.

The City Development Plan, thus prepared with the involvement of the stakeholders is a forward-looking consensus program for the city. It outlines the way to:

Improve service levels, Improve financial sustainability, and Create a citizen-friendly, accountable and

transparent administration by implementing reforms as per the UIDSSMT guidelines.



2 ABOUT KOLHAPUR CITY

Famous as Dakshin Kashi since ancient times, Kolhapur is a holy place. It was historically known as the capital of the Kolhapur Sansthan (Trust). Human habitation in Kolhapur started nearly 2,200 years ago on the banks of the river Panchaganga. The name of this city, Kolhapur or Karvir, has multiple meanings. According to some experts, the name Kolhapur has originated from the Kannada word kolla, meaning a deep river bank, which clearly indicates that the city is situated on the deep bank of the river Panchaganga. According to some other experts, the name Karvir comes from the goddess Mahalaxmi, who is holding the kur in her hands.

2.1 CULTURE AND HERITAGE

Kolhapur is archaeologically an important place in India, famous for the ancient and aesthetically beautiful temple of goddess Mahalaxmi. The temple is the best model of ancient Hindu archaeology in India. It is entirely built of black stone and has a plinth in the shape of a star.

The premise of the temple is huge; a number of small temples of other deities are located within its premises. It was constructed in 634 AD and is one of the most respected and visited temples in Maharashtra. Many people from Maharashtra as well as from all over the country come to Kolhapur for darshan of the goddess. The number increases during the Navaratri festival. Goddess Mahalaxmi is supposed to be the wife of Lord Venkateshwara (Balaji) Tirupathi. Hence, after taking darshan of Tirupathi Balaji, people make it a point to come to Kolhapur for Mahalaxmi’s darshan. The festival of Navratri is celebrated on a huge scale in the month of Ashwini. Thousands of devotees come here for darshan. A special type of festival is also celebrated which is known as Kirnotsava, i.e.,

the festival of rays. On certain days, the rays of the sun fall directly on the idol of goddess Mahalaxmi. These days stretch from 9th November to 11th November and 31st January to 2nd February.

2.2 LOCATION AND AREA

Kolhapur city is located in the south-west part of Maharashtra. The geographical coordinates are 16o-42’ north latitude and 74o-14’ east longitude and 550 m above mean sea level. On the western part of the city lies the range of Sahyadri Hills; the Warana river flows along the northern boundary. Kolhapur is abutted by Belgaum district on the southern side. The approximate area of the city is 66.82 sq. kms.

Plate 2: Location Map of Kolhapur

Plate 1: Mahalaxmi Temple



2.3 CLIMATE AND RAINFALL

Kolhapur's climate is a blend of the coastal and inland climate of Maharashtra. The temperature has a relatively narrow range, 12°C to 35°C. Summer in Kolhapur is comparatively cool, but more humid, compared to its neighbouring inland cities. Maximum temperatures rarely exceed 38°C and typically range between 33°C to 35°C. Lows during this season hover around 24°C to 26°C. Though temperatures are rarely as high as in inland Maharashtra, high humidity often makes the weather extremely unpleasant and muggy.

The city receives abundant rainfall from June to September due to its proximity to the Western Ghats. The heavy rains often lead to severe flooding in these months due to overflowing dams like Radhanagari. Temperatures are relatively low in this season and range between 23°C (minimum) to 30°C (maximum). Kolhapur experiences winter from November to February. The winter temperatures are significantly higher compared than that prevailing in other cities in Maharashtra such as Pune and Nasik. Lows range from 14°C to 16°C while highs are in the range of 29°C to 32°C. Humidity is low in this season, rendering the weather pleasant.

2.4 LINKAGES AND CONNECTIVITY

Kolhapur is recognised as an important religious and commercial centre of the region and is well-connected by road, rail and air. It is located at a distance of 395 km. from Mumbai, the capital of Maharashtra and 235 km. from Pune. The city is well-connected by a road network with the NH-4 passing through it. Kolhapur terminus station is also the centre of southern railways. It has an airport at Ujalaiwadi, located near NH-14. The city is popularly known as the “Door of Konkan” with the western coastal line only 75km. away. It is an important linkage between Konkan and the rest of the state.

2.5 DEMOGRAPHIC PROFILE

The knowledge of basic demographic trends is essential to sort out the problems and exact needs of the area. It provides ideas regarding the habitation of people and their basic requirements, which the authorities should consider while planning the city.

Kolhapur city is one of the growing cities in Maharashtra, with an area of 66.82 sq km. and a population of nearly 4,85,183 residents (Census 2001). The population of the city increased rapidly from 1941 to 1981; this growth can be attributed to the flourishing agricultural sector. Though the population showed an increase in 1981-1991, the growth rate fell from 31.26% to 19.51%. The decadal growth rate has not increased drastically since. Industrial developments on the outskirts of the city have not contributed to the city’s increase in population. This may be because the majority of industrial workers hail from adjoining areas. The population growth of Kolhapur since 1901 is given in Table 1.

Table 1: Population Growth of Kolhapur

Year Population Increase/ Decrease

Decadal Growth Rate

1951 136835 43803 47.08 1961 187442 50607 36.98 1971 259050 71608 38.20 1981 340036 80986 31.26 1991 406370 66334 19.51 2001 485183 78813 19.39 Source: Census of India

The population density stands very high at 7261 persons/sq.kms., which is 25 times the state density and 17 times the district density. This is mainly because the boundaries of KMC have not been expanded since 1977. The city has a good literacy rate of 90.2 %, which is significantly higher than the state average. Scheduled tribes form only 0.3% of the city’s total population. The city also has a fair sex ratio, which is just above the state average.

Population Growth Rate

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

1971-81 1981-91 1991-01



Table 2: Demographic indicators Demographic Indicators State District Kolhapur City

Population 2001 9,68,78,627 35,23,162 4,85,183 Area (sq. km.) 308000 7685 66.82 Density (persons / sq. Km.) 315 458 7261 No. of households 1,95,76,736 7,12,349 1,02,300 Average Household Size 4.9 4.9 4.7 Sex Ratio - Females per 1000 Males 922 949 926 SC Population as Proportion to Total Population (%) 10.2 12.76 12.5 ST Population as Proportion to Total Population (%) 8.9 0.6 0.3 Literacy Rate (%) 76.9 76.93 90.2



3 ECONOMIC BASE OF KOLHAPUR

Kolhapur district is the southernmost district of Maharashtra and Kolhapur city is its headquarters. The city is situated on the banks of the river Panchganga and is known as Dakshin Kashi. Being the headquarters of the district, the city’s economy is directly related to the economy of the district.

The growth of the district in modern times has been fascinating. Chhatrapati Shahu Maharaja was the architect and founder of modern Kolhapur. The district is abundant in natural resources -- water, soil, natural vegetation, animal wealth and minerals. As a result, Kolhapur is one of the most agriculturally advanced districts of not only Maharashtra but also India. It is fast becoming an industrialized district as well and has already emerged as a front-runner in agro-based industries. It is one of the shining examples of the co-operative movement of India. The district has the highest per capita income in the state of Maharashtra. Kolhapur has a distinct culture, developed as a result of its rich history and its quality of people who have been front-runners in various fields. Kolhapur is famous in the country for its production of jaggery, Kolhapur chappals, silver jewelery, and Indian wrestling.

3.1 AGRICULTURE AND AGRO-BASED INDUSTRIES

The economy of Kolhapur is highly dependent on agriculture. Location on the Deccan Plateau, the rich black soil and the availability of water make Kolhapur highly suitable for agricultural activities. Agriculture is the main contributor to the economy of Kolhapur. Its sugarcane industry contributes to over 5% of the sugarcane produced in the country and accounts for a significant share of sugar, jaggery and baggase produced. The city is also an important trading centre for agro-products like jaggery, sugar, pulses, chillies, turmeric, and food grains.

3.1.1 SUGARCANE INDUSTRY

The economy of Kolhapur is highly dependent on the sugarcane industry. Kolhapur produces 6,02,70,00 metric tonnes1 of sugarcane. The well-known factories are Bhogavati sugar factory, Kumbh kasari sugar factory, and Chattrapati Rajaran sugar factory.

1 District Social and Economic Abstract 2003-04 (Published by State Govt. of Maharashtra)

3.1.2 TRADE IN AGRICULTURE COMMODITIES

The setting up of the Kolhapur Agriculture Produce Market Committee (APMC) in 1945 and the Gadhinglaj APMC in 1948 was a major landmark in the marketing history of the Kolhapur District. There are 12 talukas in the Kolhapur District, of which the APMC jurisdiction covers Karveer. Shahupuri Peth and Pirajirao Peth are the two main marketing centres of western Maharashtra. The major commodities traded at the APMC are jaggery, onion, potato, groundnut pods, tomato, cabbage and garlic. The bulk of the trade involves Gujarat and Mumbai. Also, commodities are exported to New York. APMC’s market is currently located at Laxmipuri; being in the centre of the city, it is congested. Thus, a new market of 20 acres size has been proposed at Tamblaywadi. 0 gives the details of the turnover of APMC during the period October2004 to September 2005.

Plate 3: Sugarcane field in Kolhapur



Table 3: Total arrivals of commodities at the APMC

Year Arrivals (Qtl. In lakhs) Value (Rs. In crores)

2001-2002 37.69 279.74 2002-2003 14.52 158.43 2003-2004 31.66 344.97

Source: APMC

In order to support agriculture, necessary warehousing facilities have been provided in Kolhapur. There are 249 godowns in Kolhapur of which private parties own 68%. The total capacity of the godowns is 87,069. The trading in agricultural commodities provides employment to a large number of people.

3.1.3 MILK INDUSTRY

The milk industry is well established in Kolhapur. Five big units collect, cool, process and then market milk. The total collection of milk amounts to 3,105 lakh litres. The main cooperative dairies are Warna, Gokul, Samruddhi, Mahalaxmi and Morna; Bharat Dairy is one of the important private dairies. The biggest dudh sangh is the Kolhapur District Dudh Sangh, which collects 1,832 lakh litres of milk every day. The table below gives the details of the various dudh sanghs and their collections.

Table 4: Milk production units in Kolhapur

Name of Unit No of members

Collection (1000’ litres)

Kolhapur Dist Govt Milk Prod. Union 2519 183230 Warna Dist Govt Milk Prod. Union 15508 89208 Mayur Dist Govt Milk Prod. Union 700 35149 Shirol Dist Govt Milk Prod. Union 54 949 Dutar Unit 705 2007 Grand Total 19486 310543

Source: District Statistical Abstract

3.1.4 KOLHAPUR’S COOPERATIVE MOVEMENT

Kolhapur is one of the districts leading the co-operative movement in Maharashtra. This movement has brought about revolutionary developments in various fields of the district. There are about 11338 co-operative societies in the district with 35.13 lakh members. The total share capital of these societies is Rs. 504.26 crores 2.

Among various co-operative societies, the co-operative sugar factories, co-operative milk societies, co-operative banks, co-operative marketing societies, and the co-operative spinning mills are playing a major role in the prosperity of the co-operative movement in the Kolhapur district. There are 17 co-operative

sugar factories in the Kolhapur district with 2.84 lakh members. These sugar factories have a total crushing capacity of 62.15 lakh metric tonnes and produce 7.56 lakh metric tonnes of sugar.

The Kolhapur district is a leading district in dairy farming; it boasts of milk production with huge exports of milk and milk products. The setting up of the dairies, Gokul, Warana and Mayur, is a landmark in the economic development of the district; the Gokul Milk Co-operative is one of the biggest dairies in India. Warana is a classic example and excellent manifestation of rural creativity.

2 Source: Economic and Social Abstract 2003-04 (Published by State Government of Maharashtra)

Plate 4: Milk Collection through a cooperative



3.2 INDUSTRIAL ACTIVITIES

The Kolhapur industry mainly comprises sugar industries, textile mills, engineering units and foundry units. The industry lacks entrepreneurial capacity. This reflects a need for private initiation and a new entrepreneurial vision.

3.2.1 LARGE AND MEDIUM-SCALE INDUSTRIES

As in March 2001, the Central Government has granted permission for 277 medium and major industries in Kolhapur. Of these, 110 units have started production. The major units are 21 spinning mills (private and co-operative), 15 sugar industries and 21 textile mills. The remaining 53 units are based on engineering goods, poultry, foundry, chemicals, animal foods, etc. The 110 units represent an investment of Rs. 563 crores and generate employment for 55,000 people.

3.2.2 SMALL-SCALE INDUSTRIES

As in March, 2001 Kolhapur district had 18,698 industries, generating an employment of around one lakh. The major small-scale units manufacture auto spare parts, casting, engineering job work, diesel engines and engine parts, textile and silver ornament and chappals. During the period, 1950s to 1980s, the foundry in Kolhapur developed due to incoming business from automobile industries in Pune. However, now industries in Pune are opting for backward integration. As a result, this business has diminished, limiting the growth of the foundry industry.

3.2.3 INDUSTRIAL AREAS

There are nine industrial estates in Kolhapur -- two Maharashtra Industrial Development Cooperation (MIDC) areas and seven cooperative industrial estates. Altogether, 1,207 units function in the two existing MIDC areas. The details of the same are given in the table below.

Table 5: Details of industrial area - Kolhapur

MIDC Area Total Area (Ha)

Total Plots

Distributed Plots

Functional Industry

SMAK Shiroli Mfg. Assoc. 269.00 714 700 640

Gokul Shirgaon Mfg. Assoc. 233.93 775 751 567

Total 472.93 1489 1451 1207

Source: MIDC, District Administration website (www.kolhapur.nic.in)

The Kagal 5 star industrial estate comprising 3000 plots, spread over 1100 hectares has been established near Kolhapur. Industries located in around 300 to 400 plots are functioning currently. Besides, a textile zone in an area of 450 acres has also been proposed. Companies like Raymond, Indocomm, Oswal Wardhman and Kirloskar have shown a keen interest in this zone; some of them have already initiated the process of setting up their plants. Also, a silver zone in an area of 80 hectares has been proposed. In the Phase 1 and Phase 2 of the development of the Kagal industrial estate, engineering and foundry industries such as Anshul steel and Menon Casting are proposed. As far as basic infrastructure of the estate is concerned, water supply is sufficient. MIDC and MSEB are in the process of ensuring power distribution of 100 MW to this estate. The development of roads and storm water drainage is underway. Also, a Common Effluent Treatment Plant (CETP) of 10 MLD will be started in the next six months to treat the industrial effluent. For the infrastructure development of Kagal, MIDC has already spent Rs. 34 crores and plans to spend Rs. 20 crores in the next two years.

The Shiroli Industrial estate covers 260 hectares. Of the total 730 plots in this estate, around 650 plots have been sold. 635 industries are currently functioning in this area. MIDC has spent about Rs. 6 crores on providing basic infrastructure in this area. The major industries in this estate are Menon Casting, Manograph Industries, Lokmat, Kolhapur Steel, Saroj Iron Industry, Sriram Foundry, Mahalaxmi Masala Products, Bharat Udyog Ltd. and H.J.Iron.

The Gokul Shirgaon industrial estate is spread over 220 hectares. It has 850 plots of which 800 are sold. 750 industries function in this estate, most of them relating to engineering and foundry. The major industries are Gokul, Eurotex, Menon Bearings and Indocount.



As far as cooperative industrial estates are concerned, the Government has approved seven estates. 2140 plots have been issued, of which 1,272 are functional; 44,850 workers are engaged in these estates.

The Kolhapur industry is a source for OEMs (Original Equipment Manufacturers) outside India. It has the potential to emerge as an engineering component exporter.

3.2.4 PROPOSED PLANS

MIDC has proposed four estates, located at Kagal, Gadhinglaj, Ajara and Chandgad. Also, the State Government is planning to set up an exclusive silver zone at Hupri near Kolhapur. Hupri town is already famous for its silver jewellery, fine craftsmanship and superior designs being the hallmarks of Hupri jewellery. The town already boasts of some 2,500 silversmiths and another 20,000 craftsmen who are dependent on this trade. The size of the industry is put at Rs. 125 crore and the finished goods are in demand across the country. Currently, the business is scattered across Hupri as there are concerns about pollution due to overcrowding. The silver zone will offer larger space for the production of ornaments, where traders from all over the country can come and do business in an organised manner.

The following projects have been planned by MIDC:

Roads and water supply- Rs. 10 crores Concretisation of roads – Rs. 40 crores Common effluent treatment plant – Rs. 17

crores Effluent collection pipelines- Rs. 2 crores Citizen facilitation centres, street lighting,

etc. -- Rs. 5 crores

3.3 INFORMATION TECHNOLOGY INDUSTRY

3.3.1 POTENTIAL OF KOLHAPUR IN IT

The Indian Information technology Industry is on a phenomenal growth path. The revenue has increased during the last three financial years with a Compounded Annual Growth Rate (CAGR) of 30%, growing from $21.6 Billion to $36.3 Billion during the period. The total direct employment in the Indian IT-ITES sector is estimated to have grown by over a million, from

284,000 in FY 1999-2000 to a projected 1,287,000 in the FY 2005-06. is this the growth in Kolhapur.

One of the significant patterns of this growth is that it is not limited to specific products or services and to specific areas or regions. Observers say that the IT-ITES industry in India is experiencing its third wave of growth. In the first phase, the industry was dominated by captive centres of large multinationals such as GE, American Express and Swiss Air, who set up operations in India. In the second phase, the growth attracted numerous entrepreneurs (in many cases, employees of multinationals who quit their jobs to set up their own IT-ITES ventures). The third phase is geographically dispersed with new locations emerging on the horizon.

This movement has been because of the following:

The need for Business Continuity planning, to pre-empt the exposure to a particular city, which has forced most companies to diversify to alternate locations.

Improvement in key infrastructure areas like power, telecom bandwidth and real estate in newer locations

The desire by state governments to attract investments, which has resulted in attractive policy environments and incentives being offered

The need for ITES companies to lower operating costs especially employee costs and attrition.

3.3.2 KOLHAPUR, AN IT DESTINATION

Based on the above discussion, we can infer that IT companies are ready to move/ expand into newer locations provided they can generate a substantial cost benefit out of the new location. These cost savings and benefits could be because of:

1. Manpower Availability/ Less Cost 2. Ease of starting operations/ plug and play

environment 3. Favored Government Policies 4. Cheap Real Estate Cost/ Availability

We need to assess the status of Kolhapur in each of the above parameters:-



Manpower Availability

There is adequate availability of skilled manpower in Kolhapur. There are four Engineering Colleges in Kolhapur and adjacent. For the manpower needs of the IT industry, we should consider the students in the Bachelor of Engineering course with specialisations in Computer, Information Technology and Electronics. Accordingly the offering of seats by these institutes is listed in Table 6.

Table 6: Engineering Institutes and no. of graduates Name of Institutes Seats D Y Patil College of Engineering and Technology 120 Kolhapur Institute of Technology 180 D.K.T.E Society’s textile and engineering Institute, Ichalkaranji (Dist. Kolhapur) 240

Tatyasaheb Kore Institute of Engineering and Technology, Warnanagar (Dist. Kolhapur) 150

Total 690

In addition to the above degree courses there are 6 other technical institutes, together accounting for 300 Masters of Computer Applications students and 200 Bachelor of Computer Application students. There are also an estimated 300 Diploma engineers being churned out of these institutes. Additionally the adjacent districts of Kolhapur, namely Sangli, Ratnagiri and Sindhudurg, can provide a substantial number of skilled manpower (especially Sangli).

Ease of Starting Operations/ Plug and Play Environment

1. Developed Real Estate

MIDC IT Park: MIDC has created IT Park in Kolhapur. Total Area of IT Park is 10 acres. Built-up space 27,662 sq.ft. and open plots are available as per the requirement for IT units. The various facilities offered to the customers are: - Plug and Play environment for start

up units Server Co-location Consulting for setting up 100%

export oriented unit High speed data link

IT Park- Privately Developed: The Promoters and Builders Association of Kolhapur (PABK) consisting of more than 25 promoters and builders are in the process of developing the first phase of an IT park in Kolhapur. The area designated in the first phase is 22 Acres. An International property consultant Knight Frank has been appointed for the marketing of the IT Park. The project expected to be completed within the next two years.

2. Power availability: The power situation in Kolhapur region is reasonably good, in terms of the negligible demand supply gap at present. The distribution losses are also in the region of 11%, which is very good as compared to the averages for the state and India. Is there any proposal for IPP in the privately developed parks

3. Bandwidth availability

Internet Service Providers: There are three Internet Service Providers in Kolhapur namely; Software Technology Parks of India (BSNL), Bharat Sanchar Nigam Limited (VSNL), Videsh Sanchar Nigam Limited.

Optical Backbone: BSNL has started implementing a project for point to point fibre connectivity between all major commercial areas of Kolhapur. The project is expected to be completed within the next six months.

WiMax: BSNL has started implementing a project for developing WiMax infrastructure in the city. WiMax is the technology which makes the

Plate 5: Kolhapur IT Park



intermediate stage of data transfer that is till the point from where individual connections are given, completely wire free. It is also the first step in making the major areas of the city Wi-Fi. WiMax extends beyond the visual horizon and therefore is more extensive in terms of reach than radio based platforms.

4. Locational advantage: Kolhapur is recognised as an important religious and commercial centre of the region and is well connected by road, rail and air. It is located at a distance of 395 km. from Mumbai, the capital of Maharashtra and 235 km. from Pune. Kolhapur is 549 Kms from Bangalore and 412 km from Hyderabad. It is thus more or less equidistant from the major IT hubs in the country. The city is well connected by a road network with the NH-4 passing through it. Kolhapur terminus station is also the centre of southern railways. It has an airport at Ujalaiwadi, located near NH-14. The city is popularly known as the “Door of Konkan” with the western coastal line only 75 km. away. It is an important linkage between Konkan and the rest of the state.

a. Government Policies Central Government Policies: The Ministry of Information Technology, Government of India has declared several policies for the promotion of IT industry. These policies take the form of simplified procedures for establishing a new unit, specific foreign investment policies and guidelines for the IT sector, fiscal incentives etc. There are special policies, schemes and incentives announced for the units in the Special Economic Zones, Export Processing Zones and Software Technology Parks. State Government Policies: The Maharashtra State Government has promulgated the Maharashtra IT-ITES Policy 2003. The salient features of the policy are as follows: Development of Infrastructure

i. Promotion of IT parks, both public and private

ii. Cost effective and fully reliable telecom connectivity to the IT & ITES units all over the State.

iii. Ensuring reliable and quality power supply round the clock in IT Parks by permitting unlimited back up power, Captive Power Generation and status as Independent Power Producers.

iv. Levying of power charges on IT and ITES units at industrial rates and notifying IT and ITES units as a separate category of consumers through MERC.

v. Exemption of IT & ITES units from statutory power cuts in power supply.

Development of skilled manpower

pool

vi. Ensuring ready availability of skilled manpower certified by Maharashtra Knowledge Corporation and other training institutions/companies.

vii. Making available infrastructural facilities of schools of Municipal Councils, Municipal Corporations and Zilla Parishads to IT and ITES Companies for conducting training programmes in ITES related subjects and English language skills.

Industry friendly and supportive

environment

viii. Relaxations of the provisions of various industrial and labour legislations

ix. Declaring IT and ITES units as public utility services and essential services.

x. Constitution of a Committee under the Chairmanship of President, NASSCOM for drafting a Data Protection and Consumer Privacy Act.

xi. Notifying IT & ITES units as continuous process units.

Fiscal Incentives

xii. 100% exemption on stamp duty for units in public IT parks (in



case of private IT Parks, the exemption is 75%.

xiii. Charging of Sales Tax at minimum floor rate of 4% on all IT products and non-IT products essential for IT and ITES Units as approved by the Empowered Committee.

Support to IT-ITES units by the

Urban Local Bodies

xiv. Issuing Government directions to all Municipal Corporations for exempting imported capital goods and raw materials of IT and ITES units from levy of Octroi or Tax on entry of goods.

xv. Issuing Government directions to all Municipal Corporations and Municipal Councils for levying property tax on all establishments/properties/buildings/premises of IT and ITES units on par with residential premises.

xvi. Grant of 100% additional Floor Space Index to all IT and ITES units in public IT Parks.

xvii. Grant of 100% additional Floor Space Index to all IT and ITES units in private IT Parks of specified sizes by paying certain premium.

xviii. Issuing of permission to erect towers and antennae as part of building plan approval

5. Local Policies: The Kolhapur Municipal Corporation has, along the lines of the state government’s IT policy 2003, decided to give concessions to promote the establishment of IT industries in the city. The concessions offered include charging property tax at residential rates, total exemption of Octroi tax on capital goods and 100% FSI for the construction of buildings.

3.3.3 ESTIMATION OF THE POTENTIAL SIZE OF THE IT INDUSTRY IN KOLHAPUR

There are a lot of inputs that determine the potential size of the IT industry in Kolhapur, these inputs are:-

a. Nature of companies established (IT or BPO-ITES)

b. Volume of manpower c. Size of companies being established d. Area available for such industries e. Infrastructure support- power, residential,

transport

Maharashtra contributes around 30% to the total size of the Indian IT-ITES industry, thus generating around Rs. 380 Billion in revenues (Estimated for the current Financial Year). The IT sector as a whole is observing a revenue growth of 33% CAGR. The number of IT-ITES companies in Maharashtra is around 1200. When we factor in the CAGR of the industry, we can infer that around 100-200 IT-ITES units are being set up every year in Maharashtra, of all sizes. This growth is presently concentrated around Mumbai and Pune. Out of this growth, Kolhapur if positioned and marketed as an attractive IT destination can attract a gradually growing share

Companies which would be interested in establishing units in Kolhapur can be: -

1. Small and Medium Start ups 2. Small and Medium sized units of existing

companies

There is an existing IT park developed by MIDC covering an area of 10 acres with a built up area of 27,662 sq.ft. There is a proposed IT park being developed by the Promoters and Builder’s Association of Kolhapur (PBAK) covering, in the first phase, an area of 22 Acres. Moreover the

Project size of IT industry in Kolhapur (based on assumption)

150

280

420

180

370

640

0

100

200

300

400

500

600

700

2010 2015 2020

R s. cro res Investment Revenue



members of PBAK collectively have a land bank totalling 700 acres, which they intend to pool into the IT park in subsequent phases depending upon the feedback from the first phase. These two facts lead us to infer that at present, land is not a constraint to the growth of IT sector in Kolhapur.

The constraint can be the available manpower. There are around 1500 IT, Computer and Electronics Engineers, Diploma holders and MCAs churned out of the colleges in and around Kolhapur annually. As per NASSCOM in India, around 56% of engineering professionals are absorbed by the IT-ITES industry, as shown below

Table 7: Projected number of professionals to be absorbed in IT-ITES industry 2003-04 2004-05 2005-06

(Projected) 2006-07 (Projected)

2007-08 (Projected)

No of engineering graduates 316,000 365,000 441,000 501,000 536,000 Degree (four years) 139,000 170,000 222,000 270,000 290,000 Diploma & MCA (three years) 177,000 195,000 219,000 231,000 246,000 *No of IT professionals 179,000 201,000 246,000 280,000 303,000 Percentage 57% 55% 56% 56% 57%

Source: NASSCOM statistics

The proposed real estate available for IT-ITES industry will be around 32 acres, assuming a density of 150-persons/ acre; the estimated employment of about 4500 can be generated in the currently available real estate. Based on the manpower available and the fact that the build up of the IT sector in Kolhapur will be initially slower than the growth rate of the industry, because of the initial inertia of the industry to locate in new area, we can potentially target employment of 2000 people in the next three years.

Moreover as mentioned earlier, the entrants would be mainly small to medium sized start ups or small to medium units of the existing companies. The small to medium sized units would have capacities ranging from 200 to 500 seats. Thus based on the projected employment of 2000, there might be 5 new units with average capacity of 400 each. Thus the potential of Kolhapur in the next three years (2007-2010) can be computed as follows (based on the given assumptions)

Table 8: Assumptions for projecting size of IT industry Particulars Total projected employment 2000 Average capacity (for a small/ medium unit) 400 No. of units (BPO- 4, IT-1) 5 Average Investment Required for small/ medium units BPO- $ 2 Million IT/ ITES- $ 12 Million Based on Nasscom figures for the IT and ITES, 2005-06

Particulars Total investment projected Rs. 90 Crs Average Revenue Generation/ Per Person/ Per Annum BPO- Rs. 6.35 Lakh IT- Rs 14.44 Lakh Based on Nasscom figures for the IT-ITES industry for the IT and ITES, 2005-06

Total Revenue Generation Rs. 160 Crs

Based on the assumptions given below, we can project the size of IT industry in Kolhapur as shown below: -

Kolhapur will attract small and medium players, initially, with average capacity of 400 persons.

1. The current revenue growth in IT-ITES industry is nearly 28%, with exports registering 33% growth (Nasscom figure). However when we are talking about a 10-20 years planning horizon, a year on year growth of 20% is a more realistic assumption. Therefore the same has been used for the projections

2. The per capita/ per annum revenue generation figures have been calculated on the basis on last three years employment and revenue figures (Nasscom).

3.4 THE ART AND CRAFTS INDUSTRY

Kolhapur is known for its art and handicrafts. One of its sovereign gifts to the world is the Kolhapuri chappals (slippers), which are manufactured by skilled people dedicated to the art. There are about 15 co-operative societies of



Kolhapuri chappals manufacturers in the district. 5,633 units engaged in the manufacture of Kolhapuri chappals, employing 22,500 artisans, of which 10% are women artisans. Nearly 80% of the units manufacture items for dealers who supply raw materials to these artisans.

The Kolhapur chappals are divided into two major categories: (i) Export variety, and (ii) Fancy variety. The export quality chappals are mainly produced in Miraj, Jat and Kawathe-mahankal of the Sangli district, while the fancy variety is mainly made in the Kolhapur district. The total production of the export variety of Kolhapuri chappals is estimated atRs.2 crores and that of the fancy variety at Rs 10 crores

annually.

Many devotees visit Kolhapur for Goddess Mahalaxmi’s darshan and on their way back, purchase Kolhapuri chappals at Kolhapur. In Kolhapur city, the centrally located Shivaji Market has a concentration of 150 shops of which about 50% exclusively deal with Kolhapur Chappals. 40% of the production of the fancy variety is sold locally and the rest in Mumbai, New Delhi, Ahmedabad, Bangalore and other commercial centres in the country through dealers and state emporiums. The chappals are mainly exported to France, China, Japan and Australia.

This art and crafts industry has been a very fast growing business. Procuring the needed raw material is not a problem as India is an agro-

based country. Also, there are several leather tanneries; so processing is not a problem. However, this is largely a family business and the recent generations are not interested in it. This poses a threat to the continuity of the business. The Kolhapur chappal industry has always been a cottage industry wherein the family works together. Men work on getting the chappals ready and the women do the finer designing. This occupation has been passed down from generation to generation. However, today, the young generation is not inclined to follow this profession, resulting in a shortage of artisans.

The Leather Industries Development Corporation of Maharashtra (LIDCOM) gives cash subsidies to the artisans. However, this practice has had negative effects as once the artisans get the cash, they become relaxed and this affects their work, besides leading to social evils like drinking and beating.

Kolhapur is also famous for its silver ornament industry. It started at Hupari in 1904 and soon, the Kolhapur district became well known for silver ornaments in India. The principal items of production are payal (anklets), necklaces, bracelets, eartops, earrings, rings, pendants, kamarpatta, key-chains, bangles, etc. The main problem of the industry is the availability of its basic raw material, silver.

Plate 6: Kolhapuri Chappal

Plate 7: Silver Jewellery



Silver artware is one of the traditional crafts of Maharashtra, flourishing even today. The major

craft pockets are Kolhapur, Nasik and Pune. In all, around 500 artisans employed in about 200 units in these districts, produce artware valued at Rs. 80 lakhs. The major problems are the ever-increasing price of silver and the wages of the skilled artisans who are attracted towards other trades, otherwise.

Creative toys for children like numerical toys, alphabets, geometrical and arithmetical figures are produced at Kolhapur. These toys are produced using lightwood coated with lacquer. The total production of these toys at Kolhapur is estimated at 1.5 lakhs.

3.5 TOURISM POTENTIAL

The city of Kolhapur with its rich legacy, tradition and culture has the potential for being an ideal tourism destination. The presence of the Mahalaxmi temple, palaces, the various arts, delicious cuisine and rich culture make the city a prosperous tourist destination.

The present tourist spots in and around Kolhapur are as follows:

Religious; The Mahalaxmi Temple, Jotiba Temple, Narsobavadi, Khidrapur Temple, – attracts a large number of pilgrimage. Heritage; besides the above sites, Bhavani mandap, Bhavani temple in the Old Palace, New Palace, Shalini Palace (only Palace hotel of Maharashtra), Town hall museum, University Campus are some of the frequently visited attractions. Natural Scenic Spots; lake Rankala, Panchaganga Ghats and riverfront, Fort Panhala, fort Vishalgad (out of the 6 forts), Amba, Gagan Bavda, Barkhi, Radhanagari, Dajipur, etc.

Known for its Mahalaxmi temple, the city attracts around 30 lakhs of religious tourists every year.

The average daily floating population is over two lakhs, which drives the demand for hospitality services, tour and travel operators. The city has radiant folklore such as Gondhal, Vasudev, Powada, Lavni and Ovya. The city is also known for celebrating colourful festivals on a grand scale such as the Ganeshotsav, Dussera, Jotiba festival, Tripuri Purnima and Trimboli Yatra.

Besides the places of religious interest, there are several palaces and hill stations in and around Kolhapur which need to be marketed to attract tourists. These places are detailed in annexure 13. Presence of a well developed infrastructure for tourism is one of the essentials

Amenities: Restrooms in major tourist spots, but inadequate, Tourist shopping centers,

Cultural show (Lavanya sandhya) along with tour of the city organized for the Deccan Odyssey tourist. Advent of Deccan Odyssey has motivated the tourism sector of Kolhapur.

Multiplex, theatres, shopping malls, recreational zones such as parks, go-carting, golf course, adventure treks and trails, cultural shows – Lavanya sandhya , folklore-Lavani, Powada, Vasudev, Ovya, Gondhal, festivals –like Ganeshutsav, Dassera, Tripurari Pornima, etc.

Connectivity: Road, Rail and Air- are developed to meet today’s standards and is constantly being upgraded, under the National policy for tourism.

Capacity: The present capacity of the hotels in Kolhapur is around 50 rooms of 3-star category, 250 rooms of 2 star category and 250 rooms of budget category.

Current level of tourism infrastructure in Kolhapur

Plate 9: Famous for Wrestling

Plate 8: Shri Mahalaxmi Temple



for exploiting the latent tourism potential of a city.

3.6 OTHER AREAS

Kolhapur can be regarded as one of the main and pioneering centres of the film industry in Maharashtra since the 1930s. Social, historical and mythological films, mainly in Marathi, are produced here. The city has two well-known film studios -- Jayaprabha studio and Shantikiran studio.

Ancient forms of sports have been cherished and pursued in Kolhapur. Wrestlers of Kolhapur are famous around the world. Here, young rural boys enroll in the wrestling arena. They are trained by masters who are called Vastads. More than 40 wrestling arenas known as Talims are functioning in the city. A government-aided wrestling training camp is also situated at Kolhapur. Various competitions are conducted every year in which the wrestlers participate and win huge sums of money. Other famous sports in Kolhapur include mallakambh, buffalo fights, Kombada zunj, sathmari, Mardanj khel and buffalo race.

3.7 DIRECTIONS FOR GROWTH

The above analysis indicates that the future growth of the city depends on its adoption of the following strategies:

Creating new economic drivers by exploring the tourism potential of the city and providing a strong IT base in the city.

Building on its present strengths in the areas of engineering industry, agriculture and agro-based industries and the arts and handicrafts industry.

Consolidating and retaining its position in the fields of engineering, agriculture, trade and agro-processing industries.



4 KOLHAPUR -- CITY ASSESSMENT

To formulate the City Development Plan, an assessment of the existing situation in Kolhapur town has been carried out with respect to basic infrastructure (physical and social), physical and environment aspects like land usage and pollution levels, and the financial status of the municipal council. The demographic and economic aspects of Kolhapur have already been discussed in the previous chapter. The objective of the analysis provided in this chapter is to make a realistic assessment of where the town is, the direction in which it has been moving, and its strengths and weaknesses.

4.1 URBAN PLANNING AND DEVELOPMENT

The first development plan for the city was sanctioned in the year 1977 and was prepared for a period of 10 years till 1987. This plan was modified in the year 1987-89 and was considered for development for the years 1991-2011. As per the 1997 plan, the city had recorded 35.08% developed areas, which had increased to 41.36 % in 1989, i.e., an increase of 30.67%. The figure gives a representation of the land use pattern proposed by the current development plan.

It is proposed to develop 67% of the total area. Of this, a major part will be residential (35%) followed by recreation and entertainment (29%).

4.2 URBAN BASIC SERVICES

The principal function of KMC is the provision of basic services to its citizens. Municipal services have a direct and immediate effect on the quality of lives of people in the city. Poor municipal service can also make it difficult to attract business or industry to an area and thus it can limit job opportunities for residents. Capability building, corporatisation, and partnerships in municipal services are some of the key reforms required to improve municipal service delivery. Therefore, the biggest challenge for the municipal council is to provide its citizens with reliable services that are financially and environmentally sustainable. This section details the quality of urban services offered by KMC to its citizens. The areas covered in the section include water supply, sewerage and sanitation, storm water drainage, solid waste management, street lighting, and roads and public transport.

4.2.1 WATER SUPPLY SYSTEM

The city of Kolhapur gets a raw water supply of 128 MLD, of which the Corporation supplies 120 MLD and 8 MLD is obtained through ground water sources. The city has three sources of water – the Bhogavati river (8 km.); the Panchganga river via Bawada (6 km.) and via Shingnapur (11km.); and the Kalamba tank (3km.). There are 809 borewells in the city, withdrawing 8 MLD of water. In summers, water is supplied by tankers to scarcity areas and also to those areas where there is no pipeline network. KMC is unable to run Bawada water works to its full capacity of 36 MLD resulting in shortage of water to “E” ward. This is primarily due to major polluted nallahs like Jayanthi and Dhudhali carrying waste water and sewage from the unsewered parts of the city and dumping it

Proposed Land use - 2011

35%

2%3%

1%15%3%

8%

29%

2%2%

ResidentialCommercialIndustrialPublic utilitiesPublic & Semi- publicRecreation/ Open spacesTransportation/ CirculationAgricultureWater bodiesSpecial Area/ Defence



into the Panchganga River. This has been causing pollution of the river downstream. The Bawada water works is located on the downstream side of the confluence of the polluted nallahs with the river. “E” ward of the city, which covers almost 40% to 50% of the population of the city, gets water from Bawada water works. Hence this ward gets polluted water.

Distribution and Coverage

The existing water supply scheme is designed for an expected population of 6.20 lakhs for the year 2011. For the proper management of water supply, the city is divided into five wards, i.e., A, B, C, D and E. Water is supplied to citizens through a network consisting of a distribution system and various reservoirs located in different parts of the city. The distribution network (400 kms. long) covers 80% of the city. Besides this, the main transmission main runs for 57 kms. Distribution and transmission losses currently amount to 20% of supply. With respect to storage, the city has five ground level storage reservoirs with a capacity of 15.1 ML and 16 elevated storage reservoirs with a storage capacity of 22.05 ML.

The city has 66,625 connections, all of which are metered. Besides this, KMC has set up 2,051 Public Stand Posts (PSPs) in the city. Further,

695 borewells with handpumps/ submersible pumps have been installed on these wells. The Corporation charges the users depending upon their consumption. The volumetric rate per thousand litres is Rs. 7 for domestic connections, Rs.20 for commercial connections and Rs. 43 for industrial connections. This rate was last revised on 1st April 2006. It is revised every year depending on the increase in power charges by the Maharashtra State Electricity Board (MSEB). The details of water connections are given in the table below.

Table 9: Water supply connection details Connections 2001 2002 2003 2004 2005 Domestic 58276 54827 57169 60969 63952 Non- Domestic 1601 1740 1766 1798 1848 Industrial 630 727 836 811 825 PSP 1677 1698 1722 1905 2051

Source: KMC, 2006

Treatment

The city has four treatment plants with a design capacity of 162 MLD, of which 119 MLD of water is utilized.

Water Quality

The water quality in the Panchganga River is a major issue. MPCB had tested the water quality in January2006, the results of which are given in 0. This data was analyzed as per the CPHEEO norms, and it was found out that the downstream water is highly polluted and can be used for irrigation and industrial purposes only. The pH norms are within the limit of 8.5. However, as far as the Dissolved Oxygen (D.O.) figures are concerned, they are extremely low as compared to acceptable norms. At the upstream, the D.O. figures fall in the “A” class indicating that the water is potable, but, at the downstream, the D.O. is merely 1.2, i.e., “E” class, showing that the water can be used only for irrigation purposes. Similarly, the BOD figures at the upstream are within acceptable limits in the “A” class whereas at the downstream they are very high and fall in the D/E class. Thus, we can observe that the water gets highly polluted when it reached downstream.

Plate 11: Puikhadi WTP 60 mld

Plate 10: Water works in Kolhapur



Table 10: Water quality parameters Parameters Upstream of

Kolhapur Downstream of Kolhapur

Temperature 20 20 pH 8.4 8.42 D.O. 6.9 1.2 B.O.D. 1.8 3.8 Conductivity 228.0 349.0 Coliform fecal 17.0 6.0 Total coliform 130.0 80.0 Nitrate 1.1 1.5 Nitrite 0.12 4.15

Source: MPCB Report on Pollution of Panchganga River, 2006

Key Issues

The current distribution system has coverage of only 20% of the city and is outdated. Bawada intake water works is facing a problem of contamination due to intermittent discharges from the Jayanti and Dudhali nallahs which meet upstream of intake water works on Panchganga River. This works supplies water to the “E” ward, where around 50% of the population of Kolhapur resides. Also, the pressure of supply is extremely low, resulting in unequal and irregular distribution of water. Another issue is that the current water supply is designed for the expected population up to the year 2011. There is a need to augment and improve the present water supply scheme.

Several water lifting schemes are being carried out on the banks of the river Panchganga. Consequently, as soon as water is released, the water is lifted resulting in fewer water supplies for Kolhapur city. Currently, although the metering system exists, the meters are often found to be tampered. Thus it becomes difficult to charge correctly as per consumption.

The pumping stations are in a poor condition currently, resulting in several leakages. There is also a shortage of staff at these stations. The working environment at these stations needs to be improved.

4.2.2 SEWERAGE AND SANITATION

At present, Kolhapur city is generating about 75 to 80 MLD of sewage. The city has a centralized sewage treatment plant (STP) at Kasaba Bawada of 45 MLD capacity. The sewage from Dudhali nallah is pumped to the Jayanti nallah and subsequently to the STP at Kasaba Bawada. The case for upgrading the existing

STP at Kasaba Bawada has already been taken up by KMC.

The city has been divided into four zones -- Dudhalli nallah zone, Jayanthi nallah zone, Bapat camp zone and Line bazaar zone. The current sewerage has 30% coverage, which mainly comprise the Gaonthan area. The city also has 22,000 septic tanks.

KMC is also spending a considerable amount on pumping the sewage generated at three different nallahs to the STP. KMC is therefore contemplating decentralizing the STP facility and providing to all the three nallahs. This will help in reducing the energy cost required for pumping the sewage from these three nallahs to the existing STP.

At present, sewage generated at the Dudhali nallah basin is being pumped into the sump of the Jayanti nallah pumping station. The Jayanti nallah pumping station then pumps the combined flow of the Dudhali nallah and the Jayanti nallah to the existing sewage treatment plant at Kasaba Bawada, 5 km. away. There are two pumps of 20 HP capacities each in operation at the Dudhali nallah to pump the sewage; KMC is spending about Rs. 30,000 per month as electricity charges for the same.

KMC has already carried out a sampling exercise to find out the characteristics of the incoming sewage. The result of the same was provided by KMC for the designing of the proposed treatment process. The values, particularly of COD and BOD, are less than the normal values observed for domestic sewage in Indian cities. The diluted sewage may be due to the nallah water, which flows into the sewage since no proper sewerage system exists.

Plate 12: Nalla’s flowing in the city



However, KMC plans to implement a proper sewerage system. Once the sewerage system is in place, the sewage may become concentrated.

Almost, all the wastewater generated in the city is of the domestic type. Most of the small-scale industries in the city are foundry and turning-based. About 5,000 litres of tannery wastewater is generated in the Jayanthi nallah drainage zone.

Sanitation

The city has 416 public toilet blocks with 3,078 toilet seats. For administration purpose, the city has been divided into 11 sanitary wards. Each ward functions independently.

The major pollution load in surface waters in Kolhapur is due to municipal discharges (sewage). The construction of a conventional sewage treatment plant requires huge capital costs (land requirement) and O&M cost; therefore KMC cannot afford to dispose huge quantities of sewage. In view of the Supreme Court's directives regarding treatment and safe disposal of urban solid and liquid wastes and the directions of the Maharashtra Pollution Control Board, KMC is planning to set up 25 MLD sewage and a 25 TPD segregated organic waste treatment plant at Dudhali Nalla. The proposed Biomethanation plant will generate about 3,500 to 3,700 m3 of biogas, which is equivalent to about 250 KW power for 24 hours. The site currently identified for the biomethanation plant is at R.S.No.1267/4, 1262 and 1266. Approximately, 17,000 sq.m. (4 acres) of land will be made available for the biomethanation plant and STP at the proposed location. This is sufficient for the entire plant plus compost store.

Key issues

The current sewerage system covers only 30% of the total area. Most of the buildings in the city have septic tanks, where from the sewage is disposed off into the three major nallahs, i.e., the Jayanthi nallah, the Dudhalli nallah, and the Line Bazaar nallah which further release the same into the Panchganga river resulting in the pollution of the river.

The current STP undertakes merely primary treatment of the sewage. Thus, the treated sewage can be used for land irrigation only. In

1994, the city faced a jaundice epidemic due to the poor quality of water, which was lifted from the Bawada water works in E ward.

With increasing FSIs and increasing population, the pressure on the city’s infrastructure has increased drastically. There are frequent pipe bursts leading to sewage overflow. Also, the sewerage network is poor in the suburban areas.

The disposal of sewage into the Panchganaga and the absence of secondary treatment at the current STP results in river pollution. As a result, the downstream villages such as Ichalkaranji, Upri, Rendal, Patankodi and Rui get polluted water.

Decentralization of the sewerage system is difficult as the flood line of the river Panchganga is close to the residential area. Thus, there is lack of land for the construction of STPs and for sewerage disposal plant. Also, there is a shortage of land for the disposal of treated sewage. Currently, only 1,200 acres is available for land irrigation, whereas 5000 acres are needed. The Development Plan also does not reserve any land for STPs.

Since most of the nallah are open and easily accessible, especially in the slum area, there is large-scale indiscriminate dumping of organic wastes in the nallah. This leads to choking and problems of suspended solid waste stagnation at various points, the nuisance of flies and mosquitoes, and prevalent foul odour. KMC is endeavouring to set up modern systems for efficient waste management and disposal, which can greatly reduce the pollution load on the river. Setting up a combined treatment plant for sewage as well as solid waste is one such attempt.

4.2.3 STORM WATER DRAINS

The drainage system of Kolhapur constitutes of rivers, natural channels and roadside drains. The major rivers that flow near the city are the Panchganga and the Bhogavati. Tertiary drains are roadside drains constructed by the KMC for collecting and conveying storm water to the secondary and primary drainage network. 0 presents a summary of tertiary drains in within KMC’s limits.



Table 11: Details of drains in KMC area Drain Type Length (km) Breakup (%) Open Drains- Pucca 136.49 48% Open Drains- Kutcha 131.05 46% Closed Drains 16.61 6% Total 284.15 100%

Source: KMC, 2006

4.2.4 SOLID WASTE MANAGEMENT

Solid waste comprises unwanted and discarded materials from houses, street sweeping, and commercial and industrial operations. Rapid urbanisation, increasing commercial and industrial activities and changing life styles in Kolhapur are observed to be leading to a steady increase in the generation of solid waste.

Quantum of Solid Waste Generation and Composition of Waste

The primary sources of solid waste in Kolhapur are local households, markets, commercial establishments, hotels, restaurants, and hospitals. The total quantity of waste generated is in the order of 170 tonnes per day (TPD) at a per capita generation of 342 grams per day.

Collection of solid waste

The estimated quantity of waste collected and disposed is about 160 tonnes per day, which translates into a collection performance of about 86%. 1,050 conservancy workers are engaged by KMC and the waste is collected on a day-to-day basis through sweeping and door-to-door collection. 12,130 community bins have been placed in the city for primary collection of waste at a spacing of 300 meters. The handcarts and wheelbarrows have two containers, each of which has a carrying capacity of 25 kg.

Daily sweeping is carried out only at a few locations, while in most places; it is done on alternate days. A total number of 90,000 houses are covered under the collection. The system of door –to-door collection is prevalent in approximately 30% of the city. Currently, there is no segregation of waste and the mixed form of waste is directly picked up from the collection points. The collection of waste from dustbins is done manually and with the help of ladders. For this purpose, refuse collectors and dumper placers with containers are used. City solid

waste includes refuse from domestic colonies, commercial establishments, bio-medical or hospital waste and rubble construction activities. Bio-medical waste is separately disposed off.

Transportation of waste

Currently, three types of curbside bins are being used in Kolhapur from where the waste is collected. These are -- R.C.C. square type, R.C.C. open bottom and steel containers. The collection of the garbage is normally carried out manually. This is done either with the help of collection trucks, which collect the waste from the various bins and take it to the disposal site. Two refuse collectors and 20 trucks have been allocated for the transportation of waste to the final disposal site. 160 tonnes of waste is collected and transported in this manner. Of this, 120 MT of waste is collected daily and 40 MT is collected twice a week; a daily backlog of almost 60 MT of waste is generated everyday. The details regarding the different types of vehicles used for transportation are given below.

Table 12: Fleet of Conservancy vehicles Type of Vehicle

Nos Capacity (in MT)

No. of trips/day

Distances (Km/day

Waste carried (in MT)

Truck 11 4.5 22 361 77 Truck tipper

6 3 18 214 45

Refuse compactor

2 5 4 54 16

Dumper placer

2 2.5 20 140 20

Source: KMC, 2006

Of the total waste generated, 121 MT of waste is handled manually creating hazardous conditions. The routine arrangement of vehicles is done in a vehicle workshop that is operated by the Municipal Corporation. The workshop is provided with facilities for carrying out welding works, automobile maintenance and other related works. Almost 40-45 trips are undertaken by the vehicles to transport the garbage from the city to the disposal point.

Disposal of solid waste

Currently, M/s Zoom Engineers have put up a composting plant of 100 MT capacity, based on Municipal Solid Waste (MSW) on BOO. KMC has signed the MOU with M/s Zoom Engineers with respect to the project. The Kasaba Bawada



dumping site is located about five km. from the city with an area of one hectare. The dumpsites are not landfill facilities since they do not confirm to any of the norms of a sanitary landfill such as Weigh Bridge, fencing, lighting, etc. There is no provision for gas venting or leachate collection.

Medical facilities and biomedical waste

There are about 750 medical institutions in the city including private hospitals, nursing/homes blood banks, circles, etc. In order to manage the bio-medical waste, the Kolhapur Medical Association (KMA) has formed a separate firm with the help of a private operator. KMC has made available a 10,000 sq. ft. area to a private operator for setting up a bio-medical waste disposal and processing facility at Kasaba Sawada. This firm collects transports and disposes the bio-medical waste generated by the participating hospitals through a treatment facility. Specially designed autos collect the waste from the hospitals and transport it to the treatment facility. The disinfected material is sold to vendors and the incinerator ash is dumped in the plant backyard.

Privatization of solid waste collection and transportation system

KMC has engaged a Nashik-based firm called “Adarsh Ghantagaadi” to privatise the collection for the entire city of Kolhapur. The scheme covers door-to-door waste collection. The entire waste is being collected as dry and wet waste. KMC has been paying Rs. 425/MT of waste thus collected.

Issues related to deficiencies in the existing system

1. Due to littering of waste and absence of segregation, the drains get choked up frequently.

2. A landfill site of 25 acres located in Halswade, which is 7 kms from the city boundary, has been identified by KMC. The site has been sanctioned by GoM, but has not been handed over to KMC due to the filing of complaints by residents near that site.

3. The solid waste management (SWM) department has 1,100 occupied posts. Around 200 posts are still vacant; thus there is scope to build the capacity of the

department. Also, the employees need to be trained in composting, usage of modern equipment, segregation of waste, etc.

4. The existing deficiencies in the SWM system are leading to the choking up of Nallahs, which meet the river. An introduction to new and modern concerns in terms of collection and transport can reduce the pollution load occurring due to indiscriminate dumping and transportation.

5. There are few garbage bins in the suburbs. Also, the waste of the slaughterhouse is directly disposed off without incineration.

6. Door-to-door collection of waste is low. There needs to be 100% door-to-door collection. At the same time, awareness needs to be created among citizens about segregation and proper disposal of waste.

Implications of the Burman Committee Report and Municipal Solid Waste (Management & Handling) Rules, 2000

Due to the growing concern over the lack of management of solid waste in ULBs across the country a PIL was filed in the Supreme Court. Supreme Court directed all the states in India to submit reports on solid waste management. The Supreme Court appointed the Burman Committee to review the solid waste management system and then give recommendations. Consequently acting on the recommendations Government of India formulated the Municipal Solid Waste (Management and Handling) Rules, 2000.

Under these rules ULBs are responsible for the waste segregation, collection, transportation, process & management of solid waste. The responsibility for implementation of these rules is entrusted to Secretary, UDD for Municipal Corporations & District Collectors for the Municipal Councils. The rules impose a time bound schedule on ULBs for the implementation, as indicated below



Table 13: Schedule under the Municipal Solid Waste Rules 2000 Compliance Criteria Schedule

Setting up of waste processing and disposal facilities

By 31st March 2003

Monitoring the performance of waste processing and disposal facilities

Once in six months

Improvement of existing landfill sites in terms of these rules

By 31st March 2001

Identification of land fill sites for future use and preparing them for operations

By 31st March 2002

In Kolhapur there is one existing dumping site till date, which needs further development to bring it to the status of a landfill facility as defined under the rules. The second proposed landfill facility has been sanctioned by GoM, but has not been handed over to KMC due to the filing of complaints by residents near that site till date. The estimated quantity of waste collection is 170 MT per day, collection is limited to 120 MT (on daily basis) and 40 MT (on twice a week basis). Thus the collection efficiency is around 86%. The processing of waste is limited to 100 MT per day The rules specifically state that the manual handling of solid waste has to be avoided at any cost, however in Kolhapur around 120 MT solid waste is being handled manually.

The above issues represent the gap that needs to be filled before Kolhapur can meet the standards as recommended by the Burman Committee and the consequent rules

4.2.5 ENVIRONMENT STATUS

Kolhapur city is located in the south-western part of Maharashtra and is endowed with extremely fertile soil and plenty of water. In the recent past the city has rapidly progressed from being a predominantly agricultural town to an industrial city. Due to the increase in the internal population and the rapid influx of people from surrounding areas the population of Kolhapur has risen to 4,85,183 according to the 2001 census, with a decadal growth rate of 19.39%.

Natural Environmental Resources

Kolhapur is founded in locations where nature has offered various attractions such as rivers and lakes that could be used for water supply and waste disposal, and in fertile river valleys with extensive food and animal resources.

1. Water Bodies

Rivers: Kolhapur is surrounded by Bhogavati and Panchganga rivers which carry water for most of the year. This water is used for industries, irrigation and community supply.

Bhogavati River: This is the tributary of Panchganga River and confluences at about 8 km on the east of the city to the Panchganga. This is the raw water source for the Balinga water works.

Panchganga River: This is a tributary of River Krishna and is a source of raw water of the new Shinganapur water works and Bawada water works. A ghat is developed on the banks of the river near Shivaji Bridge.

The exploitation of water from the river has sharply altered the river dynamics, destroying fish populations and depriving downstream users of adequate and unpolluted supplies. The city had constructed sewerage systems for domestic wastes to replace cesspools and privy vaults and to improve local health conditions. It discharges the treated/ partially treated sewage into the river, polluting the water supply of downstream towns and villages.

Lakes: There are six lakes in Kolhapur, namely Rankala Lake, Kotitirth Lake, Hanuman Lake, Lakshatirtha Lake, Raman Mala Lake, New Palace Lake. Description of the major lakes is as follows: -

Rankala Lake: This lake was developed in 1887-1893. It provides for irrigation of about 80 hectares of lands in and around the city. The northern and the western banks of the lake have been developed. The lake supports a wide variety of flora and fauna. It also has significant socio-cultural, aesthetic and recreational value. Two major streams feed the lake from the southern side. Kolhapur Municipal Corporation has provided for tapping these two streams and also to divert the sewage flowing into the lake from the urban settlements.



Kotitirth Lake: This is a small bound lake having a great historical value. Due to the pressures of mass bathing, cloth washing, cattle washing and sewage disposal, the lake is highly polluted. The lake is also used for disposal of religious waste and immersion of idols during festivals. Rainwater and a few natural infiltrations are the source of water for this lake.

Hanuman Lake: This is situated in Kasaba Bawada area of Kolhapur. It is a very small lake developed in 2002-2003

Table 14: Characteristics of lake water Parameter Rankala Lake (mg/l) Lake

water Feeding stream

Kotitirth Lake (mg/l)

Hanuman Lake (mg/l)

pH 7.20 7.74 6.90 7.12 Total Solids

62.0 190.0 76.0 38.0

TDS 30.0 86.0 46.0 26.0 TSS 32.0 104.0 30.0 12.0 BOD 15.0 78.0 32.0 6.0 COD 24 124 52.0 8.0 DO 4.6 0.0 0.0 5.2

Source: Environmental Status Report of KMC (2003-2004)

2. Tree Plantations and Gardens: Good

coverage of vegetation including agriculture and grassland is observed on the banks of the river, in the city. Out of total area of 66.82 square kilometres about 24.78 square kilometres area is under agricultural sector as per the current development plan

3. Hills : Tembalai hill is on the eastern side of

the city. A famous temple of goddess ‘ Tryamboli’ is situated on the hill. Other three hills are on the outskirts of the city; Chambukhadi and Batukeshwar on the north- western side and Pulekhadi on the south-western side.

Environmental Pollution Water Pollution: Kolhapur Municipal Corporation does not have detailed data regarding hydrology and pollution, quantity of sewerage generation and contributing to each Nalla basin and treatment plant. Topographically, the city can be divided into four natural drainage basins. These are: a. Jayanti Nalla Basin b. Dudhali Nalla Basin c. Line Bazaar Nalla Basin d. Bapat camp Nalla Basin

It is necessary to provide treatment followed by disinfection before discharging those Nalla water to the river or used for irrigation. Decentralised treatment for these nallas will prevent mixing of sewage in river without treatment.

River Pollution- Panchganga River: Major factors causing large scale pollution of the river are

▪ Upstream industrial activity, mainly sugar industries and distilleries

▪ Nallahs carrying sewage and effluent from Sewage Treatment Plant of Kolhapur city

▪ Settlements on the banks of the river on the 35 km stretch between Kolhapur and its confluence with Krishna River.

▪ Groundwater seepages and overflows Table 15: River Water Samples of Panchganga at the confluence of Nalla discharges

Parameter Dudhali Nalla Jayanti Nalla Bapat Camp Nalla pH 7.35 7.13 7.26 BOD 11.87 14.33 19.13 TS 119.00 150.33 161 TSS 45.33 60.33 64 Chlorides 12.67 14.87 16.67

Source: Environmental Status Report of KMC (2003-2004)

Air Pollution: Kolhapur has changed its earlier nature of an agricultural township very rapidly and has emerged as an industrial and commercial city. With economic development came rapid urbanisation, increased pressures on the city’s infrastructure and natural resources. Moreover because of increasing population, the traffic density through out the city has also substantially increased.

According to the Environmental Status report for 2003-04, Kolhapur Municipal Corporation has identified certain areas where the concentration of particulate matter is higher than the ambient air quality standards of the country.

Noise Pollution: Environmental noise has become one of the greatest sources of nuisance in the city. Although apparently simple, the subject of noise pollution is extensive and complicated. According to the Environment Status Report for 2003-04, the following are the



areas with ambient noise more than the applicable standards: - a. Rajarampuri (East side part)- Residential b. Shahupuri- Residential c. Nagala Park- Residential d. Tararani Chowk- Commercial e. Dabholkar Corner- Commercial f. Venus Corner- Commercial g. Malkar Corner- Commercial h. Gangavesh- Commercial i. Rankala Bus Stand- Commercial j. Udyamnagar- Industrial

Bio Waste and Hazardous Waste Management

There are around 698 medical institutions including Hospitals with more than 500 beds (1 No.s), Hospitals with 50-200 beds (9 No.s) and other smaller units. All of these units generate biomedical waste. Maharashtra Pollution Control Board has issued directives for registration of all such unit under the Bio Medical Waste (Management and Handling) Rules 1988.

There are 4 common Bio Medical waste processing centres in Kolhapur and surrounding sub regions of MPCB-

1. Sangli Miraj -Kupwad Municipal Corporation (common Bio-Medical Waste Treatment & Disposal Plant) Bedag Road, Miraj, Dist.- Sangli.

2. M/s. Surya Central Treatment Facility Center , D-60, MIDC Miraj, Dist.- Sangli.

3. M/s. DASS Enterprises, R.C. No. 206, C.S.No. 29/92 A, Kasaba Bawada, Dist.- Kolhapur.

4. M/s. S.S. Services, R.S. No. 638, C.S.No. 17695, Ichalkaranji, Dist.- Kolhapur.

There are 193 units in Kolhapur region which come under of the Hazardous Waste (M & H) Rules, 1989 as amended in 2003. Inventorisation work is completed and report has already been submitted to H.Q. The total 193 units generate about 94.3 MT/M incinerable waste, 2726 MT/M landfillable waste and 217.7 MT/M of recyclable waste.

Disaster Management

All disaster management activities are under the head of fire fighting department of Kolhapur Municipal Corporation. This department provides

service during fire, floods, failure of buildings and such natural disasters.

The department has 204 employees and basic equipments like fire fighting trucks, ambulance etc. for use in case of disasters.

4.2.6 URBAN ROADS AND TRANSPORT

The city of Kolhapur is well-connected through rail and road transport facilities and also has a few flights connecting it to Belgaum and Mum bai. It acts as a point for interstate transport routes between Maharashtra, Goa, Karnataka and the southern states, and serves as a key transport location. It is regionally well-connected to Pune, Sangli, Miraj, Ratnagiri and Nagpur. Its location on the National Highway (NH-4), which has been recently converted into four lanes and may be converted to six lanes, provides ample opportunity for tour and travel services. It is a well-developed city and is steadily developing into an investment zone in the last few years. A five star MIDC, textile industries, an IT park, a silver park are now being planned in nearby areas within the district.

The dominant public mode of transport is road transport with shorter routes connected through the public transport and longer routes being applied by the intermediate public transport.

The routes most used and which generate the maximum income are: Kolhapur – Mumbai, Kolhapur – Pune, Kolhapur – Solapur, Kolhapur – Bangalore, Kolhapur – Nagpur, Kolhapur – Hyderabad, Kolhapur – Panaji (Goa), Kolhapur – Ahmedabad and Kolhapur – Indore.

Table 16: Roads within the City Limits Surface Type KMC PWD

(SH/NH/MDR) Road length

Share (%)

Cement Concrete

17.97 - 17.97 3%

BT (Blacktop) 414.66 - 414.66 73% WBM 74.99 38.73 113.72 20% Gravel/Earthen 24.65 - 24.65 4% Total 532.27 38.73 571 100%

Source: Kolhapur Municipal Corporation



Discussions with the stakeholders including private citizens, industrialists and Traffic experts yielded the indicative lists of the major roads, major problematic areas and bottlenecks. These include, but are not limited to the following: -

Table 17: Major approached and traffic links in the city Major approach roads to the city

Main traffic links in the city

1. Shiroli Naka to CPR Hospital (Station Road)

2. Rajaram Road (Railway gate no. 2 to Bindu Chowk)

3. Shahu Naka-university-Baicha Putala-Shahu Stadium- Dewal Club- Mirajkar Tikti

4. K Bawada- Town hall- Shivaji Putala

5. Shivaji Pool to CPR hospital

6. Shivaji Putala to Gangawesh

7. Phulewadi to Gangawesh

8. Sane Guruji Vasahat to Rankala Wesh

9. Kalamba to Filter House 10. RK nagar- Subhash

Nagar- Renuka Mandir

1. Dabholkar Corner to Tarabai Park

2. Jawahar Nagar- Udyam Nagar- Parvati Talkies- Gavat Mandai- Shahupuri- Gokul Hotel

3. Gangawesh- Papachi tikati- Corporation to Mutton Market

4. Timber Market- Khari Corner- Gandhi maidan- Varun Tirth- Rankala Wesh- Gangawesh

5. Blood Bank- Collector’s office- Dhairyaprasad

6. Station Road- Basant Bahar- Collector Office- Mahavir College

7. Hockey stadium- Jayaprabha Studio- Gokhale college- Uma Talkies- Ford corner- Dasara Chowk

8. SSC Board- SIBER college- Takala

The city has 15 major roads. The roads, which register the maximum traffic and major congestion, are the Station Road, the Rajaram road, the roads connecting K.Bawada to Shivaji Putala and the roads from Tawde hotel chowk and Shivaji pool to Venus Chowk. The table below outlines the road network in the city.

Table 18: Problematic Traffic Junctions in the city Station Road

Rajaram Road

Other Junctions

Bottlenecks in the city

▪ CBS Mahadeo Mandir

▪ Dabholkar corner

▪ Gokul Hotel

▪ Venus Corner

▪ Railway gate no. 2

▪ Bagal Chowk

▪ Parvati Talkies

▪ Azad Chowk

▪ Commerce College

▪ Bindu Chowk

▪ Varun Tirth

▪ Shahu Madap

▪ Mairajkar Tikati

▪ Deol Club Chowk

▪ Baicha Putala

▪ Aditya Corner

▪ Gokul Hotel to Venus Corner

▪ Bagal Chowk to BT college

▪ Bagal Chowk to Parvati Talkies

▪ Gavat Mandal ▪ Commerce College

to Bindu Chowk ▪ Commerce College

to Dewal Club ▪ Malkar Tikati to

Maratha Bank ▪ Malkar Tikati to

general mutton market

▪ Malkar Tikati to Shivaji Putala

▪ Malkar Tikati to Papachi Tikati

▪ Mirajkar Tikati to Shahu Maidan

▪ Gangawesh to Rankalawesh and further

▪ Railway gate to Khade Building to Janata Bazaar

As the data, the vehicular traffic in Kolhapur has increased during the period 1997- 2006 with a Compounded Annual Growth Rate of 34%. This has put tremendous pressure on the existing infrastructure. The number of traffic accidents has also been observed to increase as shown below: -

Plate 13: Road network map

Accidents details in Kolhapur

14801569

1485 1532 1520 1581 1575 14891599

219 247 299 286 256 282 293 276

1755 17801592

1765 16851783 1745

19251820

273

0

500

1000

1500

2000

2500

1995 1996 1997 1998 1999 2000 2001 2002 2003

N umbers

No. of Accidents Persons DiedPersons Injured



Table 19: Vehicles Registered in Kolhapur City Type of vehicles

No of Vehicles as on 31.03.97

No. of Vehicles as on 31.03.2000

No of vehicles as on 31.03.03

No of vehicles as on 31.01.06

M/ cycles 18010 37110 66364 226855 Scooters 19112 23319 25111 63754 Mopeds 22616 26716 29334 58633 Total 2- wheelers

59738 87145 120809 349242

Motors cars 5317 6538 9050 26036 Jeeps 1301 2177 2817 15160 Stations wagons

159 175 176 707

Taxi cabs 167 196 206 ---- Auto rickshaws

4917 6272 6998 12734

Stage Carriages

919 929 929 951

Contract carriages

196 231 293 416

School buses 4 5 6 15 Private services

1 1 1 31

Ambulance 12 19 34 166 Trucks & lorries

1913 2688 3133 8187

Tankers ------ 480 520 798 Delivery van 778 1308 1683 5221 Delivery van three wheeler

378 732 1242 4004

Tractors 409 635 1224 12585 Trailors 412 503 1310 15610 Others 24 32 37 226 Total 76645 110266 150468 452197

Source: RTO office, Kolhapur

Public transport (city level and nearby areas)

Kolhapur Municipal Transport (KMT), a KMC undertaking, provides public transport in Kolhapur. Currently, there are 149 buses with KMT of which 117 are on an ownership basis and an additional 32 on a contract basis. Of these, 140 buses, ply in Kolhapur every day. The contractors are paid Rs.16.34 per km. There are 27 identified bus routes in the city. These buses are also allowed to ply up to 15 kms. Outside the municipal boundary. The frequent routes are Kagal to Bondrinagar, Sugarmills to Aptenagar and Gandhinagar to Kolhapur. The buses operate for 34,000 kms. every day and cater to the needs of around 1,25,000 passengers. There are 285 bus stops in the city. Of these, 125 are owned by KMT, 125 are rented out on a boot-operate-transfer (BOT) basis and 30, which were built by private parties, have been later transferred to KMT. The minimum fare is Rs. 4. The fare was revised last in 2005. KMT faces major financial constraints

as it is unable to increase the fare and the O&M costs have shot up due to the high diesel prices. The current O&M cost per km. is Rs. 26.36. Increase in fare needs permission from the GoM. Besides this, 12,344 rickshaws ply in Kolhapur. KMT faces severe competition from the three-seater and six-seater rickshaws. These rickshaws have stage carriage, i.e., they pick up passengers from the KMT bus stops.

Street Lighting: The Corporation has achieved almost 95% street light work providing thereby an extensive network of road illuminations.

Parking: The city has currently four parking spaces, which are located at Shahapuri, Kapilteerth market, Shivaji market and near Mahalaxmi temple. These lots are insufficient given the inflow of traffic in the city and the increasing floating population.

Key issues:

The various issues related to roads and public transport are listed below:

Average condition of the roads is bad and worsens during the monsoons.

Absence of flyovers at railway crossings causes congestion.

Development Plan roads are not implemented on a timely basis.

Street lighting is very poor in the newly developed areas.

Encroachments in the Gaonthan area are very high and thus result in reduction in the usable area of the road.

Lack of route diversification; bus schedules are not properly planned.

Average condition of the roads is bad. Road patchwork is done and the potholes are filled up. Resurfacing of roads does not happen.

Parking is insufficient, especially in congested areas like the Bhausinghji road, the Tarabai road and the Station road.

Luxury private buses, cater to inter-state and regional transport have not been allocated any parking area. As a result, they park on the main roads causing major congestion.

No pay and park facilities, same need to be introduced as they will provide an additional income to the Corporation and also discourage parking. Also, parking can be done on a PPP basis.



5 URBAN POOR AND SOCIAL ASSESSMENT

This section deals with slums and urban poor and access to urban basic service in Kolhapur. The analysis is based on secondary information and interactions with stakeholders. It also reviews past and present programs for service delivery to the urban poor in the city. The aim is to identify key issues in service delivery to the poor in Kolhapur and arrive at strategies that would enable the KMC to address these issues and fulfil its mandate of providing basic services to the poor in the city.

5.1 POVERTY IN KOLHAPUR

Discussions with stakeholders reveal that there are levels of poverty in Kolhapur. Poverty and slums are coexistent in the city. Absolute poverty as per the general definition, i.e., not enough to eat, is not really prevalent in the city, except amongst a small section of people living in slums who lack even housing and other amenities and can be categorized as the urban poor. For the majority of the poor in the city, the only concern is security of land tenure, quality of housing and access to basic infrastructure.

But if other parameters of urban poverty like housing, access to better sanitation facilities and capability to function in society are considered, then almost all slum-dwellers can be categorized as the urban poor.

The urban poor population (slum population) of Kolhapur is estimated to be about 11.60 per cent of the total population of the city; the rapid growth of slums has been largely the function of the economic growth of the city; the non-availability of EWS/LIG housing; and inadequate service levels in some pockets of slums leading to deteriorating environmental problems.

5.1.1 SLUMS IN KOLHAPUR

Slums are semi-permanent shelters, constructed with common locally available materials. These

are the housing solutions adopted by the houseless population that do not have access to formal housing. Financial inability to enter the formal housing market leads them to construct and reside in unauthorized structures. This leads to the formation of slums in the city. There are in all 54 slums in Kolhapur, of which 44 are declared and 10 undeclared. Of the 44 declared slums, 10 are located on municipal land, 22 on government land and the rest 12 on private land. Mostly the slums are located on government land, private lands and municipal lands. The

total slum population was approx. 56,235 as on 01-01-1995, which is 11.60 % of the city’s total population. There are 10,447 hutments in the city.

Urban basic services are adequately provided to the slums in Kolhapur. All the slums have access to water supply either through pipes or stand posts provided by KMC. Only 15% of the slums do not have access to sewerage or drainage

facility. Solid waste management facilities are provided to almost 75% of the area.

In a Below Poverty Line (BPL) survey conducted by KMC in 1991, around 12,500 families have been identified with an average household size of seven. The criterion used for identifying them was earnings below Rs.591.75 per month. A majority of the BPL families were employed in the service sector such as construction, carpentry, masonry, painting, welding, mobile repairs, and grocery. Most of them hailed from

Defining and Measuring Poverty The simplest definition of poverty is the lack of specific consumptions (i.e., not enough to eat). A broader definition is the lack of command over commodities exercised by a population. Another, more sophisticated definition is based on the capability of the poor to function in society. Access to basic services -- especially adequate and safe water, health and sanitation, and education -- is now increasingly being recognized as an important indicator of poverty.

Standard and widely accepted representations of poverty are: the Head Count Index (HCI) signifies the percentage of people below poverty line; the Poverty Gap (PG) measures the depth of poverty (In statistical terms, this stands for the mean distance below the poverty line as percent of the poverty line).



the neighbouring areas of Beed, Latur, Osmanabad, Bijapur and Athni.

5.1.2 SLUM IMPROVEMENT AND POVERTY ALLEVIATION PROGRAMS

KMC has undertaken several initiatives to improve the standard of living of the slum dwellers and to provide them with the basic level of services. The KMC under the Valmiki Ambedkar Awas Yojna, has rehabilitated a few slums. KMC also receives grants from the State Govt. though MHADA for slum improvement. Shifting of the slums has been difficult for KMC due to the shortage of land. KMC has undertaken several programmes under SJSRY. It has formed neighbourhood groups of 10 to 40 families in each area. These groups are members of the Urban Poverty Eradication Cell. These groups address the day-to-day needs of the slum dwellers. Around 10,031 families are a part of this Neighbourhood Group (NHG) programme. Besides, KMC also encourages the formation of self-help groups. The members of these groups have to deposit a certain amount on a recurring basis. They earn a rate of 2% on their deposit. The total amount gathered is then lent to some of the group members at 0% interest depending upon their need. Another scheme carried out by KMC is “Development of Women and Children in Urban Areas”. Under this scheme, groups of 10-20 women are formed. These women come together to start a business. They are provided a funding of up to Rs.2,50,000 depending upon their need. Of the total amount, 50% is grant, 45% bank loan and 5% self-invested. Most of such groups are engaged in the fields of dairy projects, grocery, etc. KMC also provides training to BPL families for 300 hours in a year over a period of two to six months. A stipend of Rs. 100 is paid to every participant. Training is provided in stitching, screen painting, mobile repairing, etc. Also, exhibitions are organised by KMC to display and market the products produced by the self-help groups and training centres. The Corporation also encourages self-employment amongst BPL families. It provides a loan of up to Rs. 50,000 over a period of three to five years. Of the total amount, 80% is bank loan, 15% grant and 5% self-invested.

Key issues Provision of basic infrastructure and service

levels in slums, especially those of sewerage and drainage is inadequate.

Few voluntary community-based organizations are working in the slum areas.

Most of the slums are situated on encroached government land. Land tenure is a major problem, because of which slum dwellers do not invest adequately in housing, fearing eviction.

Shifting of slums becomes difficult due to shortage of land.

5.2 SOCIAL INFRASTRUCTURE

5.2.1 OVERVIEW OF EDUCATION INFRASTRUCTURE

Kolhapur boasts of a large number of educational institutes at all levels, including government and private institutions. The infrastructure in Kolhapur for higher education is comparatively extensive with a number of engineering, technical and medical colleges. Under the innovative and socially reformist leadership of Chhattrapati Shahu Maharaj, the princely ruler of Kolhapur, the city had become at the beginning of this century, a focal point of educational opportunities for all classes and communities of South-Western Maharashtra, and northern parts of neighbouring Karnataka. This is also land of Karma veer Bhaurao Patil, who struggled for taking education to the masses by his innovative 'Earn and Learn' scheme. The education centres in Kolhapur are summarised as follows:

Table 20: Number of educational Institutes

Education Centres Nos. No. of Students

Primary Schools 166 15015 Secondary Schools 81 32800 Colleges 15 4925

5.2.2 SCHOOL EDUCATION

All areas in the Kolhapur Municipal Corporation is brought under compulsory primary education and large scale public awareness programs are being conducted. The age limit for primary education is 6 to 11 years and compulsory primary education is only from first to forth



standard. There are 166 primary schools in the city, belonging to both government category and private category.

In year 1940, after demise of Chhattrapati Rajaram, Kolhapur constituency was managed by council. Queen Tararani was regent of this council at that time. To continue the legacy of educational development work started by Chhattrapati Shahu Maharaj, the management and responsibility was handed over to Kolhapur Municipal Corporation on 24th September, 1942. According to the regulations devised in 1942, education committee came into existence on 21st December 1942 with subsequent elections. When organization merged into Mumbai region, education committee got transformed into Municipal school board on 9th June 1948 conforming to the Mumbai primary education act, 1947.

There are certain schemes which are taken up from time to time for the encouragement of different sections of society to undertake primary education for their children. For example in the Savitri Bai Phule adopted children scheme Minimum of 1000 girls have been admitted through Late Savitribai Phule adopted children scheme. Efforts are being taken to increase this number and all the teachers are constantly engaged in these efforts.

In addition to the primary schools there are around 81 secondary schools in Kolhapur. The names of the some of the well known schools in Kolhapur are listed as follows: -

1. Vidyapeeth Highschool 2. Nutan Marathi Highschool 3. New HighSchool, Kolhapur 4. Maharashtra Highschool 5. V S Khandekar Highschool 6. S M Lohiya Highschool 7. Sri Ram Vidyalaya, Highschool 8. Holy Cross Convent Highschool, Kolhapur 9. St. Xavier's School, Kolhapur 10. Tararani Vidyapith 11. Murgud HighSchool Murgud,(MVM)* 12. New Model English School 13. Tavanappa Patne high school 14. Fort International School. 15. Sou. Nalini Shantaram Pant Walawalkar

Prashala[MaiSaheb Bawdekar School] 16. Panhala Vidyamandir, Panhala 17. Chhatrapati Shahu Vidyalaya, New Palace,

Kolhapur

18. Shri Shantaram Krushnaji Pant Walawalkar High School,kolhapur

19. Princess Padmaraje High School 20. Dr. Dadasaheb A. Magdum Highschool,

Kolhapur

One of the premier schools operated by the Municipal corporations is the Rajmata Jijabai Girls High School. It is the only corporation managed girls high school in the city. This high school was established in 1954 by Kolhapur Municipal Council. Initially it was started in a small place, but now the school has large two storied building with all amenities. The specialty of this school is that all the girls of this school are given uniforms every year by the corporation. No fee is collected for any reason. Text books & note books are supplied from book bank. There is modern laboratory. The high school has 100% grants in aid from corporation. From 1954 there were 9 headmasters/ head mistresses. At present there are 21 teachers & 8 non teaching staff members in the high school.

5.2.3 HIGHER EDUCATION

Kolhapur also takes pride in a Shivaji University, a NAAC five star rated institution. It is most famous for its literature, arts, commerce and science departments. It is also well known for biotechnology and environmental studies in Maharashtra. It was inaugurated on 18th November, 1962 by Dr. Radhakrishnan, the then President of India.

One of the major objectives behind foundation of this University was to cater to the regional needs of South Maharashtra. The jurisdiction of the University is spread over four districts viz. Kolhapur, Sangli, Satara and Solapur with strength of about 2,00,000 students studying in 275 affiliated colleges and recognised institutes.

Plate 14: Shivaji University



The University imparts education in 10 major faculties of Arts, Social Science, Science, Commerce, Education, Fine Arts, Law, Medicine, Ayurvedic Medicine, Engineering and Technology. The University has started Post-graduate teaching centre at Solapur in 3 Post-graduate Departments. The faculties of Arts and Social Sciences are also gearing up to meet the demands of changing time. Establishment of Centre for Women's Studies and extension activities through Adult and Continuing Education and Shramik Vidyapeeth are indicators of this change. Department of Economics has been selected by UGC for its Special Assistance Programme. Departments of Sociology, Education, Geography, Physics and Economics are offering special courses in emerging areas like Environmental Science is also functioning actively. The University is encouraging merit by introducing a unique scheme called 'Shivaji University Merit Scholarship' offering 500 scholarships to meritorious students in affiliated colleges. It has also instituted research fellowships for Ph. D. students in the Post-Graduate Departments of the University. The University has made a budget provision of about Rs. 45 Lakh for these scholarships out of its own funds.

Shivaji University has proposed the setting up of a National Institute of Agri-bio Technology and an International School of Engineering and Technology. These institutions are expected to be operational by 2007-08. The University also proposes to set up a National Law School and an entrepreneurial development institution. Currently, the University has introduced a practice of sending 30 artisans per month to the Central Leather Research Institute in Chennai to train them in quality production and update them with the latest customer trends. The University has also introduced a PG Diploma in leather technology. It is focussing on modernisation of the existing courses and the newly applied science courses. There are also two other major universities in Kolhapur -- Bhartiya Vidyapeeth, known for management, pharmacy and law, and D.Y. Patil University famous for its medical courses. Symbiosis is also planning to set up a governance program and executive training program at Kagal.

The major engineering colleges in Kolhapur and nearby towns are as follows:

1. Kolhapur Institute of Technology [KIT], Kolhapur

2. Government College of Engineering, Karad 3. SPSMBH's College Of Architecture,

Kolhapur 4. D.Y. Patil College of Engineering &

Technology, Kolhapur 5. Tatyasaheb Kore Institute of Engineering

and Technology Warnanagar 6. D.K.T.E. Society's Textile and Engineering

Institute, Ichalkaranji 7. Bharati Vidyapeeth's College of

Engineering, Kolhapur 8. Dr. J.J. Magdum College of Engineering

[Jaysingpur]

The major medical colleges in Kolhapur and nearby towns are as follows:

1. R.C.S.M Govt. Medical College, Kolhapur 2. D.Y.Patil Medical College, Kolhapur 3. Krishna Institute of Medical Sciences, Karad 4. Mahatma Gandhi Medical Trust's Tatysaheb

Kore Dental College, Warananagar 5. Yashwant Ayurvedic Medical College,Kodoli

5.2.4 OVERVIEW OF HEALTH INFRASTRUCTURE

Kolhapur city is one of the growing cities in Maharashtra, with an area of 66.82 sq km. and a population of nearly 4,85,183 residents (Census 2001). The population density stands very high at 7261 persons/sq.kms., which is 25 times the state density and 17 times the district density. The basic health indicators for the city of Kolhapur are given below: -

Table 21: Basic health indicators Indicator Value Population 5,16,000 (According to 2005 mid-year

estimate by the Health Department, KMC) Household Size 4.82 persons/ Household Sex Ratio 930 Females/ 1000 Males Birth Rate 35.4 Births/ 1000 Population Death Rate 12.1 Deaths/ 1000 Population Infant Mortality Rate

31.77/ 1000 Births



Table 22: Health Infrastructure Facility Numbers Facilities of Kolhapur Municipal Corporation Hospitals run by KMC: -

a. Savitri Bai Phule Hospital b. Panchganga Hospital c. Isolation Hospital d. Dwarkanath Kotnis Hospital

Total No. of Beds- 190 Facilities- General Facilities, Special Maternity Facilities, Special Epidemic Treatment Facilities etc.

Clinics 13 Physiotherapy Centre 1 Family Welfare Centers 6 Blood Bank 1 Reproduction and Child Health Centre

4

Dispensaries 12 Allopathic 3 Homeopathic 1 Dental 1 Mobile

Private Facilities Major Hospitals-

a. Chhattrapati Pramila Rao Hospital

b. Dr. D. Y. Patil Hospital

500 Beds Each (Medical colleges Attached)

Other Hospitals/ Nursing Homes 230 OPDs 420 Pathology Laboratories 40

5.2.5 HEALTH DEPARTMENT OF KMC

The health department of Kolhapur Municipal Corporation is headed by the Chief Health Officer, who reports to the Commissioner. Under the Chief Health Officer, there are the following departments: -

1. Health Administration Department 2. Birth Death Registration Department 3. Food Inspector 4. Animal Butchering Centre 5. Insecticide Team 6. Conservancy 7. Savitri Bai Phule Hospital 8. Panchganga Hospital 9. Isolation Hospital 10. National Programmes

There are 41 doctors on the rolls of the department, and 5 doctors working on contractual basis. Additionally there are 44 doctors, representing various specialisation of medical treatment who are working on a visiting basis in the various facilities of the Municipal Corporation.

5.2.6 KEY ISSUES IN HEALTH INFRASTRUCTURE

Inequitable distribution of services

Shri Panchganga Hospital is one of the maternity hospitals established by KMC. This hospital does not have all facilities under one roof; as a result, patients have to rush to other hospitals for various tests. For example, admitted patients need to be sent to the Savitribai Phule diagnostic centre during lab hours. In spite of being a maternity hospital, it does not have provision for neonatal care. Hence, a newborn baby has to be shifted to the Savitribai Phule maternity hospital. This poses risk to the child. Also, during Ganesh immersion, all the processions cross this hospital and the roadblocks make it difficult for people to reach the hospital in case of emergencies. The hospital has very poor infrastructure and a noisy environment, and lacks parking facilities. On the other hand, the Savitribai Phule Maternity Hospital with its location in the centre of the city is generally overcrowded. As a result, the hospital generally faces an inadequacy in resources right from linen to medical officers. Savitribai Phule Hospital has departments for Urology, Neurology, Plastic Surgery. Paediatric Surgery, Onco Surgery etc. but the number of beds and staff is grossly inadequate for maintaining these services.

Poor Status of Infrastructure

The buildings in which the hospitals and dispensaries are located are very old and poorly maintained. Very little care is taken to maintain the buildings and their surroundings in a clean and hygienic manner. The equipment once installed has not been updated in majority of the cases.

Inadequate and poorly trained staff

Due to overcrowding, KMC hospitals, especially Savitribai Phule Hospital face the problem of inadequate manpower. The existing staff is inadequately trained, in hospitals as well as the dispensaries. Although training programmes are held for the staff, the attendance for such programmes is poor.



Status of the dispensaries

As far as the 16 dispensaries are concerned, they seem to be more of a liability. Heavy expenditure is incurred by KMC on dispensaries, ranging from Rs.1.2 Crores to Rs.1.7 Crores per dispensary per year. These dispensaries register poor end-user attendance. The best dispensary has an attendance of 30 to 40 patients per day. The supply of medicines at the dispensaries is meagre and insufficient. Also, the area of the dispensaries is huge and difficult to maintain. KMC has established 10 Family Welfare Centres. These centres have a poor infrastructure. Also, the personnel working at these centres need to be trained.

Inadequate and Poorly planned supply of medicines

The supply of medicines is very haphazard. The medicine and consumable supplies do not match the needs

Public Health Parameters

Decreasing the Infant Mortality Rate by 2/3rds from its 1990 level within the next 25 years: The IMR for India in 1990 was 80 per 1000 births; the goal was to reduce it by 2/3rds, which means to a level of 27 per 1000 births. Based on the Millennium Development Goals, the Union Ministry of Health and Family Welfare has defined a goal of attaining fewer than 30 deaths per 1000 births within the year 2010. The current level in the Kolhapur Municipal Corporation is 32, while for India as a whole it about 40(for urban areas).

Incidence of Epidemic Diseases: There have been frequent incidences of epidemic diseases, specially water borne diseases in Kolhapur. Every year during monsoons there is flooding in the city, the flooding combined with the poor drainage generates an unhygienic environment thereby providing a breeding ground for such diseases. The incidence of such diseases has been listed in the following table: -

Table 23: Incidence of Diseases

Disease Affected during the last 5 years (as on June 2005)

Cholera 192 Gastroenteritis 3931 Dysentery 23322 Diahorea 32237 Influenza 77392 Typhoid 471 Others 4922

5.2.7 SOCIAL EVILS AND POVERTY REDUCTION

Kolhapur is witnessing a rise in prostitution, with increasing trade and commerce. There is a need to control the same. The city ranks third in Maharashtra in terms of prostitution and first in terms of ‘female foeticide’. Today, the city faces several problems in the social arena such as increased crime rate, increased female foeticide, and growing number of cases of atrocities on women. The city today has the lowest female to male ratio, i.e., 816/1000. Efforts need to be taken to increase this to at least 950/1000. Also, education needs to be provided to women. As per the 2001 Census, the literacy rate among women is 74.94 and that among men is 83.8. Also, there is a need to bring to women into the mainstream economy. This will help in reducing poverty and result in the disappearance of BPL families. Also, necessary door-to-door support services need to be provided for employed women, such as baby care, food, old age care, pet care, payment of bills, etc. Under SJSRY, mahila bachat gats have been created. These gats(groups) come together and produce products. However, there is no market for these products. There is a need to market these products and create awareness about the same. Alternatively, these products should be designed such that they cater to the market needs and training should be provided to the mahila gats accordingly.



6 URBAN/MUNICIPAL FINANCE

Finance management and accounts are the principal functions of the Accounts Department headed by the chief accountant. The Accounts Section also monitors the grants and state government transfers and devolution, and manages debt servicing, provident fund accounts, pensions, salaries and advances.

6.1 FRAMEWORK FOR ANALYSIS

For the purpose of financial assessment, financial data pertaining to the last five years (2001-02 to 2005-06) have been analysed. The first step in analysing the financial position of KMC is to differentiate and categorise the account heads into General Account, Water Account and Capital Account through a budget recasting exercise.

KMC’s current accounting system is cash-based; income and expenditure heads are maintained on a cash basis. All the expenses towards regular maintenance are treated as revenue expenses, while expenses on new projects are treated as capital expenses. The standing committee exercises strict control over the projects that requires capitalization. Direct expenses are appropriated directly to the user department. KMC is in the process of migrating to the accrual-based double entry accounting system and plans to generate the balance sheet by March 31, 2007.

The Corporation accounts can be classified under two major heads - general fund and water fund. The revenue sources of the Corporation may be broadly classified as internal or operating income and external receipts. Internal income includes receipts from the operations of the Corporation in the form of taxes, octroi, water and sewer charges and fees and charges on other services such as advertisement fee and food and license fee.

External fund sources include revenue grants from the State and Central Governments, loans for and contributions for projects. Expenditure incurred towards establishment cost, operation and maintenance expenditure for provision of services, and repayment of loans are treated as revenue expenditure and expenditure on asset creation, purchase of equipment and investments in new projects, etc. are treated as capital expenditure. Advances and deposits and any items of income or expenditure of a temporary nature are treated and accounted for under an extraordinary account. These heads of account are not analysed as they are temporary

Municipal Finances Data as obtained from KMC

• Budget Books • DCB Statements • Taxation Information

Debt/ Non-debt Liabilities’ Data as obtained from

• KMC • Other nodal

agencies/ Lending agencies etc.

Recast Data:

• Extra-ordinary account heads

Recast Data:

• Revenue Account • Capital Account

Liabilities:

• Debt Liabilities • Non-debt Liabilities

KMC

Financial Assessment/ Credit Standing

Stage I - Sourcing Stage II - Assessment Stage III - Analysis

*Extra-ordinary account heads comprising Cesses, Advances, Deposits etc is not considered for financial assessment and further Projections, as these items would not affect the financial health of the ULB.



in nature and have no impact on the overall financial position of KMC.

6.2 FINANCIAL STATUS AT A GLANCE

The municipal finances of the Corporation (KMC) have been reviewed for the last five years, commencing from the financial year 2001-02 to 2005-06. The items of both receipts and expenditure are classified under revenue and capital accounts as per their sources and uses.

Revenue income (a combination of General and Water Account) of KMC has grown to a level of Rs. 9,959 lakhs in FY 2005-06 from Rs. 8,581 lakhs during FY 2001-02, registering a compounded annual growth rate (CAGR) of 4%, while revenue expenditure increased at a CAGR of 8%. This indicates a decline in the financial condition of KMC. KMC maintained an average revenue surplus of over 10% of its revenue income.

Capital income of KMC comprises loans and internal transfers from revenue to capital account or utilisation of funds for asset creation; during the past few years, KMC has not availed of any loans for its capital expenditure. It is observed that capital income from external sources is nil and that the capital account is continuously in deficit, indicating that most of the capital expenditure is met from internal surplus alone.

Table 24: Financial Status at a Glance Items 2001-02 2002-03 2003-04 2004-05 2005-06 CAGR

Actual in Rs. Lakhs % Revenue Account Income 8581 9036 8992 8969 9959 4 Expenses 6793 7341 7496 7972 9317 8 Surplus/ Deficit

1788 1695 1495 996 641

Capital Account Receipts 490 990 760 703 1194 25 Payments 1935 1927 1973 1610 1384 (8) Surplus/ Deficit

(1445) (937) (1212) (907) (190)

Status incl. O.B.

623 1212 1040 526 1033

Source: Analysis of actual annual accounts of KMC

Year-on-year expenditure by KMC on capital items is dependent on the availability of revenue surplus and year-to-year priorities, and lacks planned capital investment. Capital expenditure by KMC during 2005-06 is Rs. 1,318 lakhs. Though this is observed to be increasing the pressure on the revenue surpluses, the presence of a large quantum of revenue from octroi reflects positively on the revenue as well as the overall municipal surpluses. The overall municipal account has been in a surplus position KMC needs to be cautious of not overshooting its revenue expenditure, as this may lead to a deficit situation. It needs to identify expenditure control measures; planned capital investments on the part of KMC are warranted.

The following section provides a detailed review of the revenue account, in order to assess KMC’s fiscal status and determine both the potential of each of its sources and its ability to sustain the investments identified under the City Development Plan.

6.2.1 REVENUE ACCOUNT

The revenue account comprises two components -- revenue income and revenue expenditure. Revenue income comprises internal resources in the form of octroi, tax and non-tax items. External resources are in the form of shared taxes/transfers and revenue grants from the State and Central Government. Revenue expenditure consists of expenditure incurred on salaries, operation & maintenance cost, contributions and donations and debt servicing.

KMC - Revenue Account

0 2000 4000 6000 8000 10000 12000

2001-02

2002-03

2003-04

2004-05

2005-06

R s. lakhs.Revenue Income Revenue Expenditure



Table 25: Source-wise revenue income (Incl. Water Account) Items 2001-02 2002-03 2003-04 2004-05 2005-06 Share CAGR

Actuals in Rs. Lakhs % % Own sources 8429 8785 8656 8830 9495 97 3 Octroi 4132 4360 4581 4893 5210 51 6 Tax on prop. 1314 1076 884 946 1244 12 (1) Other Tax Revenue 257 218 193 215 253 3 (0) Non-tax Revenue 2725 3131 2997 2776 2788 32 1 Assigned Revenue 153 251 336 139 464 3 32 Total 8581 9036 8992 8969 9959 100 4

Source: KMC Annual Accounts

Revenue Income

The revenue sources of KMC can be broadly categorized as own sources, assigned revenues, grants and contributions. The source-wise income generated during the review period is presented in

Table 25 and the detailed income and expenditure statement, the sectoral contribution and growth rates of each of the items are presented in Annexure 15

Own Sources: Own source income includes income from octroi, property tax (comprising general tax, water, sewerage and sanitation taxes), other taxes and non-tax income in the form of development charges, income from

municipal properties, fees & fines and other miscellaneous income. Income from own sources on an average, accounts for 97% of the revenue income, indicating low dependence of KMC on external sources for its operations. The own sources registered an average annual growth rate of three percent, but the annual growth rate was inconsistent over the review period. The above figure shows the average contribution of all the own source income items.

Octroi is a local tax charged on all goods entering the city; it is levied based on the category of goods (weight, numbers, etc.). It is the single largest source of income accounting for about 51 percent of municipal revenue income. During the review period, it has registered an average annual growth of six percent.

Property Tax consists of general tax on properties, fire tax, tree tax, water tax, water benefit tax, conservancy tax, special conservancy tax, sewerage benefit tax and street tax. It is charged as a percentage of Annual Rateable Value (ARV). In addition to general tax, KMC levies other special taxes.

In KMC, the general tax and other taxes including water and sewerage taxes are levied as part of the property tax. The average collection performance stands at about 76 percent of the total demand, indicating scope for further improvement of collection efficiency.

KMC - Sources of Revenue 3%

3%

32%

50%

12%

OctroiTax on propertiesOther Tax RevenueNon Tax RevenueAssigned Rev, Grants/ Contrib



Table 26: Property Tax Details and DCB Statement 2001-02 2002-03 2003-04 2004-05 2005-06 Items

Rs. Lakhs No. of Assessments (No.) 84,137 88,482 96,918 100,423 103,322 Arrears demand 594 353 351 623 506 Current demand 1180 1199 1506 1545 1564 Total demand 1774 1552 1857 2168 2070 Current collection 375 240 205 503 401 Arrears collection 1046 961 1069 1159 1154 Total collection 1421 1201 1274 1662 1555 Collection Efficiency 80% 77% 69% 77% 75% No. of PT Assessments 84137 88482 96918 100423 103322 Growth of PT Assessments - 5% 10% 4% 3% Tax/ Assessment (Rs.) 1402 1355 1554 1538 1514 Persons/ Assessment (Nos.) 6 6 5 5 5

On a comparative note, between various cities of similar characteristics in the country3, the tax per assessment is relatively moderate in KMC. The person per assessment does not indicate scope for identifying un-assessed properties (most of the properties are covered in the tax register). But assessment figures from FY2003-04 onwards indicate that there has been a consistent effort on the part of KMC to bring a larger number of properties under the tax net. Accordingly, there has been a decrease in the number of persons per assessment from around six in 2002-03 to less than five persons per assessment in 2003-04. However, the average household size in KMC being 5.1 indicates there is little scope for un-assessed properties (about 20,000). The current property tax assessments include commercial establishments too. Thus, on a conservative estimate, the number of properties to be assessed in Kolhapur is likely to be over 1.15 lakhs.

Non-Tax Revenue: Non-tax sources include all non-tax revenues such as fees and charges

3 Comparative statement of ARV and persons per assessment – around FY 2002-03

City Tax per Assessment –Rs.

Persons per Asesmsent-Nos.

Pune 5,062 9.14 Hyderabad 1,495 8.14 Chennai 3,405 10.14 Coimbatore 1,819 5.68 Ahmedabad 1,605 3.75

levied as per the Municipal Act and services provided by the KMC. These sources include income from building license fee, development charges, trade licence fee, births and death certificates, income from municipal properties and other fees and fines. The non-tax income of KMC accounts for about 332 percent of the revenue income and has registered a CAGR of

one percent. However, the annual growth rates are inconsistent. Water charges and other water income account for the majority of the non-tax revenues and contribute more than 18 percent of the revenues. This is followed by development charges, which generate about two percent.

KMC - Items of Expenditure

30%

65%2%

3%

Salaries, Allow ances &PensionOperation &MaintenanceTransfers/ Contributions

Debt Servicing



External Sources: External sources mainly include grants from local funds, grants from the State and Central Governments, and compensation towards motor vehicles tax (until FY 2000-01). All external sources put together account for only about three percent of revenue income. Though these sources indicated a CAGR of 32 percent for the past five years, the growth is inconsistent owing to the unrealistic nature of these sources.

6.2.2 REVENUE EXPENDITURE

Revenue expenditure of KMC has been analysed based on expenditure heads, which are broadly classified into general administration & tax collection, water & sewerage, conservancy public works (roads, drains & buildings), street

lighting, public health (general & medical), education, town planning, slum clearance and miscellaneous. Revenue expenditure is further classified into establishment and contingencies (O&M). Besides the above items of expenditure, pension contribution and debt servicing constitute a substantial proportion of revenue expenditure. The application of funds by heads of accounts is presented in 0. It indicates that the overall revenue expenditure registered an average annual growth of 8% against growth in revenue income by 4%. If KMC continues this trend, the surplus would reduce in the years to come. Though KMC has sufficient operating surplus, it should fairly place its financial with respect to measures towards reducing expenditure or enhancing its resources to avoid any deficit situation in the future.

Table 27: Application of funds by heads of Accounts Items 2001-02 2002-03 2003-04 2004-05 2005-06 Share CAGR Actuals in Rs. Lakhs % % Salaries, Allowances & Pension 4138 4615 4981 5445 6234 65 11 Pension & Gratuity 537 680 726 801 1,051 Salaries and Establishment 3,601 3,934 4,256 4,645 5,183

Operation & Maintenance 1961 2316 2189 2225 2788 29 9 Transfers/ Contributions 443 239 191 199 205 3 (18) Debt Servicing 252 172 135 103 90 2 (23) Total 6793 7341 7496 7972 9317 100 8


The establishment expenditure, including pension contribution and pay commission revision, alone account for over 65 percent of revenue expenditure. In terms of revenue income spent on pension and gratuity, it is just under 10 percent. O&M expenditure accounts for about 29 percent of the total expenses and expenditure towards debt servicing accounts for just about two percent of revenue expenses, indicating scope for the further leveraging of KMC’s resources to implement large-scale projects.

Establishment Expenditure: Establishment expenditure accounts for about 65 percent of revenue expenditure and registered over 11 percent CAGR in the last five years. The conservancy and public health departments account for the maximum share of establishment cost at 17 and 13 percent, respectively. The water supply and sewerage and public works account for 10 percent each (refer to 0).



Table 28: Section-wise Establishment Expenditure 2001-02 2002-03 2003-04 2004-05 2005-06 Items

Actuals in Rs. Lakhs Pension & Gratuity 537 680 726 801 1051 General Administration & Tax Collection 425 460 500 533 567 Water supply 261 276 317 321 362 Sewerage 171 182 194 216 232 Conservancy/ SWM 684 782 848 910 1047 Public Health, Safety, Hospitals and medical services 567 624 680 738 801 Public works – Roads 416 468 508 541 623 Others works 1077 1142 1209 1386 1552 Total 4138 4615 4981 5445 6234 Share in Rev Exp (%) 61 63 66 68 67 Annual Growth Rate (%) 12 8 9 14


Operation and Maintenance: Similar to establishment expenditure, and the analysis of O&M by each functional department reveals that the majority of O&M expenditure is incurred on the provision of urban basic services. Water supply accounts for 51 percent of the total O&M expenses. This is followed by O&M of street lighting at 10 percent and that of other works at 11 percent. General administration and tax collection functions account for about eight percent. It needs to be mentioned that conservancy/ solid waste management account for less than two percent of the expenditure due to the classification of vehicles-related O&M expenses under the Workshop Department. Hence, the same could not be bifurcated and analysed under the Conservancy Department.

O&M expenditure accounts for 29% of revenue expenditure and has registered a CAGR of 9% during the review period.

Table 29: Section-wise Operation and Maintenance Expenditure 2001-02 2002-03 2003-04 2004-05 2005-06 Items

Actuals in Rs. Lakhs General Administration & Tax Collection 192 175 177 177 198 Water supply 942 994 1104 1093 1765 Sewerage 157 147 130 118 91 Conservancy/ SWM 38 34 33 121 21 Public Health, Safety, Hospitals & medical services 152 154 150 136 132 Public works – Roads 131 334 131 65 74 Street lighting 243 213 208 214 223 All others 105 265 257 301 285 Total 1961 2316 2189 2225 2788

Source: KMC Annual Accounts.

KMC - O&M Expenditure

11%

10%

6%

6%

51%2%6%

8%

General Administration & Tax CollectionWater supplySewerageConservancy/ SWMPublic Health, Safety, Hospitals and medical servicesPublic works - RoadsStreet lightingAll o thers



Debt Servicing and Outstanding Loans: The review of annual accounts reveals that debt servicing expenses account for only about two percent of revenue expenditure; in terms of revenue income also, less than two percent is spent on debt servicng against a comfortable or

allowable limit of about 25-30 percent. Thus KMC has an enormous potential to leverage its resources to mobilise debt funds for the implementation of large-scale projects.

Table 30: Outstanding Debt Liability Agency Purpose Year Terms of

repayment Loan Amount-

Rs. lakhs Outstanding as on

March 31, 2005 (Rs. lakhs)

Open Market & Commercial Banks

Capital Works 1989-1992

15 Years @ 11.5%-15.2%

1865 1415

LIC Capital Works 1987-2002

20 Years @ 9.8%-13.0%

2743 2202

Total 4608 3617

Source: KMC

Review of the outstanding loan statement of KMC, as on 31st March 2006, reveals that the net outstanding debt liabilities of KMC stand at Rs. 3,617 lakhs, which is high in comparison to its revenue base (36% of its property tax demand). The outstanding loan figures, as presented in 0, indicate that in the recent past, KMC has not availed of any loans. However, the old loans taken prior to 2002 entail very high interest rates as compared to the current market rates. Hence, KMC needs to swap these loans with lower cost funds. Prudent financial management practices demand swapping of funds with lower interest rates loans.

6.2.3 CAPITAL ACCOUNT

In general, the capital income of KMC comprises loans, grants and contributions; transfers from revenue surplus; and utilization of funds from sinking funds. As mentioned earlier, in recent years, KMC has neither availed of any loans nor received any capital grants. The capital income came only from the sale proceeds of lands, which are classified under capital income due to their nature, though in the municipal accounts, these are treated as revenue income.

Table 31: Capital Income (incl. Water Account) 2000-01 2001-02 2002-03 2003-04 2004-05 Share Items

Actuals in Rs. lakhs %

Own Sources 70 51 50 93 21 8 Loans 0 0 0 0 0 0 Grants 420 940 710 610 1173 92 Total 490 990 760 703 1194 100

Source: KMC

The figures presented in 0 clearly indicate that most of the capital expenditure is met from revenue surpluses. On an average, over the past five years, the majority of capital expenditure has been directed towards water supply and sewerage systems, and roads and traffic.

Water and sewerage system improvements, extensions, etc. accounted for 29 percent of total capital investment. Construction of new roads, traffic management measures, etc. also accounted for only four percent of the investments. Buildings and slum improvement programmes accounted for other major capital investments at seven percent and three percent of total capital expenditure, respectively.



Table 32: Capital Expenditure (incl. Water Account) 2001-02 2002-03 2003-04 2004-05 2005-06 Share Items

Actuals in Rs. Lakhs % General Admn. & Tax Collection 46 50 15 24 12 2 Water supply 660 545 485 275 252 24 Sewerage 111 53 170 26 59 5 Conservancy/ SWM 64 46 6 7 2 1 Public works - Roads 103 59 137 26 23 4 Public works - Lands & Buildings 81 82 52 143 188 7 Street lighting 46 69 5 10 14 2 Urban poor and Slum development 60 89 43 28 39 3 Others and all grant related works 763 933 1060 1071 795 53 PH works 0 0 0 0 0 0 Total 1935 1927 1973 1610 1384 100

Source: KMC

6.2.4 COST RECOVERY ON SERVICES

Water Supply: Cost recovery from water supply operations is over 100 percent, if the taxes pertaining to water supply are also taken into account. However, this also implies that a majority of capital expenditures would be financed by the internal surplus of the General Account and not be charged to the Water Account.

As can be observed from the demand collection balance (DCB) statement for water charges, the growth in the number of house service connections is just about 4.07 percent against

high population growth, and 5.96 percent in assessed properties indicating large numbers of illegal and irregular connections. Compounding this issue is the moderate collection performance at about 76% of the demand and the high percentage of arrears in the total demand (collection is Rs. 17.22 against a demand is Rs. 22.57 crores).

The anomaly in current demand and collection needs to be recorded separately and corrected against the more than adequate level of water supply to the citizens of Kolhapur.

Table 33: Water Charges – DCB Statement 2001-02 2002-03 2003-04 2004-05 2005-06 Items

Rs. Lakhs Arrears Demand 370 405 498 580 564 Current Demand 1410 1629 1717 1687 1693 Total Demand 1780 2034 2215 2267 2257 Collection 1375 1536 1635 1703 1722 Balance 405 498 580 564 535 Collection Efficiency 77% 76% 74% 75% 76% No. of HSCs 55507 57294 59771 63578 66625 Growth of HSCs - 3% 4% 6% 5% Cost Recovery on Service (Charges & Connection Fee alone) 124%



Low collection performance and large numbers of illegal connections reflect on cost recovery, when only the direct charges are accounted for and the taxes are excluded. The cost recovery by way of direct user charges alone (excluding taxes and other water income) is about 91 percent against a desirable 100 percent. Ideally, 100 percent of O&M expenses should be recovered through direct charges and taxes utilised for the refurbishment and improvement of the water supply system and other capital expenditure.

Underground Drainage

As in the case of water supply and sewerage, KMC maintains a separate account. However, no user charges are levied; the recovery is only in the form of a special sewerage tax and sewerage benefit tax. The cost recovery by way of indirect charges (excluding taxes and other water income) is about 20 percent against a desirable 100 percent. Ideally, 100 percent of O&M expenses should be recovered through direct charges and taxes utilised for the refurbishment and improvement of the sewerage systems and other capital expenditure.

Key issues

The following issues emerge from the above analysis of the municipal finances of KMC.

▪ Accounting system needs to be converted into double entry-based accrual account

system. This would provide a clear picture of KMC financials.

▪ Octroi and property tax account for 51% and 12% of municipal income, respectively, indicating large dependence on a single source of revenue stream.

▪ The current collection efficiency of property tax stands at about 74%. There is scope for improving collection efficiency and also for bringing a large number of properties under the tax net.

▪ Bulk of the revenue expenditure at more than 65% is in the form of establishment expenditure alone. In terms of revenue income, salaries and wages account for 29% of the revenue indicating the need for better human resources management and reforms in the sector.

▪ The bulk of capital expenditure is financed through internal sources rather than any external funding; this causes pressure on available surpluses.

▪ In terms of user charges alone, KMC recovers only 83 percent of the operation and maintenance expenses incurred on water supply operations and the collection performance is about 76 percent. Also, at present, KMC does not charge the users for sewerage service separately.

Capacity building across all levels is urgently needed to ensure better management of urban affairs.



Table 34: Key Financial Indicators Value S. No INDICATOR Unit

Minimum Maximum Average OR as on 31/03/2006

A Resource Mobilisation 1 Per Capita Income Rupees 1890 2 Source of Funds i Share of Octroi % 48 55 51 ii Share of Taxes on properties % 10 15 12 iii Share of Other taxes % 2 3 3 iv Share of Non Taxes % 28 35 32 v Share of Assigned Revenues, Grants &

Contributions % 2 5 3

3 Growth in Income Sources i Growth in Octroi income % p.a. 5 7 6 ii Growth in Taxes on properties % p.a. -18 31 1 iii Growth in Other taxes % p.a. -15 18 1 iv Growth in Non taxes % p.a. -7 15 1 v Growth in Assigned Revenues, Grants &

Contributions % p.a. -59 233 68

vi Growth in Own Sources' Receipts % p.a. -1 8 3 vii Growth in Total Receipts % p.a. 0 11 4 B Expenditure Management 1 Per Capita Expenditure Rupees 1768 2 Functional Allocation i Share of Salaries & Wages % 61 68 65 ii Share of O & M Expenditure % 28 32 29 iii Share of Transfers & contributions % 2 7 3 iv Share of Debt Servicing Expenditure % 1 4 2 v Share of Salaries' Expenditure to Revenue Income % 48 63 56 3 Growth in Items of Expenses i Growth in Salaries' Expenditure % p.a. 8 14 11 ii Growth in O & M Expenditure % p.a. -5 25 10 iii Growth in Total Expenditure % p.a. 2 17 8 C Performance 1 Operating Ratio Ratio 0.79 0.94 0.94 2 Capital Utilisation Ratio Ratio 1.16 3.95 1.16 3 Per-capita performance Assessment i Per Capita Own Income Rs. p.a. 1698 1802 1733 ii Per Capita Assigned Revenues, Grants &

Contributions Rs. p.a. 27 88 52

iii Growth in Per Capita Revenue Income % p.a. 2 iv Per Capita Salaries Expenditure Rs. p.a. 839 1183 994 v Per Capita O&M Expenditure Rs. p.a. 397 529 449 vi Growth in Per Capita Revenue Expenditure % p.a. 6.45 D Taxation 1 No. of PT Assessments 103322 2 Current Tax Rate (Weighted Average) % of ARV 0.00 3 Tax Per Assessment Rs. p.a. 1355 1554 1514



Value S. No INDICATOR Unit Minimum Maximum Average OR as on

31/03/2006 4 Population per PT Assessment (Bldgs) Persons 5.10 E Efficiency 1 Property Tax i Growth in Assessments % p.a. 5.96 ii Collection Performance-Property Tax % 69 80 76 iii PT Arrears as % of Total Demand % 19 33 26 iv PT Demand per Assessment Rs. p.a. 1355 1554 1473 v Cost of Collecting Rs. 1000 of Taxes Rs. 58 63 60 2 Water Supply i Growth in Water Connections % p.a. 3.22 4.67 4.07 ii Cost Recovery on Water Supply (%) (Charges

alone) % 86% 143% 124%

iii Cost per KL of water supplied Rs./KL 2.57 4.55 3.18 iv Collection Performance-Water Charges % 74 77 76 v Water Charge Arrears as % of Total Demand % 20 26 23 3 Sewerage i Cost Recovery on Sewerage (%) (Charges alone) % 13% 20% 16% ii Cost per ML of water generated Rs./ML 922 953 935 4 Conservancy/ SWM i Cost Recovery on SWM % 21% 39% 28% ii Cost per MT of waste collection Rs./MT 1192 1625 1426 F Debt and Liability Management Population (2006) 526,874 1 Per Capita Liability (2005-06) i Outstanding Debt per Capita Rupees 686.60 iii Total Outstanding Liability per Capita Rupees 686.60 2 Liability against Revenues i Outstanding Debt against Own revenue sources % 0.38 iii Total Outstanding Liability against own revenue

sources % 0.38

iv Outstanding Debt against revenue income % 0.36 3 Debt Servicing Ratio Ratio 0.01 0.03 0.02



7 CITY GOVERNANCE FRAMEWORK AND REFORMS

Established in 1972, KMC is governed by the Bombay Provincial Municipal Corporation (BPMC) Act, 1949. According to this Act, KMC is obligated to provide basic infrastructure like water supply, drainage, sewerage, and roads and services such as conservancy, fire fighting, streetlights, education and primary health. Like most Corporations, KMC has two wings – the deliberative wing and the administrative wing.

7.1 DELIBERATE WING

The deliberative wing of KMC is its general body, consisting of 77 elected members and five nominated members. Assisting the general body in its functioning are various committees, the chief being the standing committee. The general body of KMC is headed by the mayor. In addition to the standing committee, the various committees of KMC are:

▪ Transport committee ▪ Women and child welfare committee ▪ School board committee ▪ Ward committee (proposed)

The standing committee, as specified in the BPMC Act, is the most important committee of the Corporation. Most of the financial powers are vested with the standing committee. The standing committee consists of corporators and is elected by the corporators from among themselves at their first meeting after the general elections. The standing committee/general board essentially governs the functioning of the Corporation and makes all decisions with respect to the establishment and finances of the Corporation. The standing

committee has unlimited financial powers and is subject to supervision by the state government.

7.2 ADMINISTRATIVE WING

The municipal commissioner is the key figure in local self-government and is the administrative head of KMC; the commissioner is assisted by senior officials in discharging his functions. The commissioner manages the day-to-day affairs of the Corporation subject to approvals and sanctions from the standing committee and the Corporation. Whenever required, the entire executive powers to carry out the provisions of the BPMC are vested in the commissioner.

The administrative wing of KMC is divided into five wards, each headed by a ward officer. The total strength of officers and employees at KMC is about 3,777, as against the approved employment level of about 4,779.

Kolhapur Municipal Corporation has through the Administrative and Financial Powers and Responsibility Guidelines 2006, has decentralised the powers previously vested with the Commissioner’s Office. This exercise was undertaken with a view to place the decision making powers closer to the citizens and to make the departments more accountable and responsible.

Presently the organisation structure of the administrative wing is structured around a three tier framework. The framework is explained as follows: -

First Tier: Control Officer: To manage the routine and operational activities of the Corporation, Deputy Commissioners and Assistant Commissioners have been declared as Control Officers. They have been made responsible for specific areas of the corporation’s activities. They are the link

Plate 15: Municipal Corporation



between the commissioner and the operational cadres of the corporation. They have been made accountable for efficient and effective performance of the activities under them. The persons who have been designated as Control officers are taken from the ranks of Gazetted Officers of the government.

Second Tier: Department Head: To supervise the activities of the operational and administrative departments, certain officers have been designated as Department heads. The department heads have been made responsible for the performance of the various offices coming in the purview of the department. These officers have been delegated certain powers by the commissioner’s office.

Third Tier: Office Head: For performance of the activities of various offices, certain officers have been designated as office heads. These officers are answerable to the Department Heads for their activities. This level interacts with the citizens during the performance of the activities.

Table 35: Details of staffing pattern

Class of workers Sanctioned posts

Occupied Posts

Vacant posts

Class 1 12 8 4 Class 2 179 133 46 Class 3 814 586 228 Class 4 3770 3055 715 Class 5 4775 3782 993

7.3 REFORMS BEING UNDERTAKEN BY KMC

In the past, KMC has been active in taking steps towards implementing reform. Here are some of the reforms, it has implemented in the recent past:

▪ Registration of birth and death certification is made available through the Citizen Facilitation Centre (CFC). Currently, only one CFC is operational; KMC has plans to extend this facility to all ward offices across five locations.

▪ KMC has brought about computerization of property tax database and issuance of demand note through this database. Day-to-day recovery is being updated on the systems. The payment of property tax is also possible through all the branches of the United Western Bank across the state.

▪ Tenders are made available on the web site of KMC.

▪ It has also computerized the payroll, pension and provident fund system.

▪ Building plans are scrutinized and permissions are granted through all ward offices. The system has been computerized recently.

▪ KMC has also initiated the GIS system. It has prepared a proposal to create a base map using satellite imagery.

It has also planned to introduce a double entry accrual-based accounting system. Expression of Interest (EOI) is invited for reputed consultants to implement this system within the next one year.



Organisation Structure

Dy. commissioner

General Admin.•Planning and Policy•Public Relation•Information

Internal audit

Urban Poverty (SJSRY)

Accounts

Asst. Commissioner

1

House Tax•Tax assessment and recovery

Records•Bureau office•Record office•Typewriting•Computer•Library

Licenses•General Licenses•Food Licenses

Stores

Asst. Commissioner

2

Establishment•Establishment•Workers office•General Body hall

Octroi

Estate•Keshavrao Bhosale Hall•Swimming Tank•Market Recovery•Encroachment

Women and Child Welfare

ChiefAuditor

Chief Auditor

Middle and Higher Education

•Rajamata Jijabai Girls High School•Karmvie Bhaurao PatilNight School•Yashwantrao ChavanCollege

Law College

Accounts•Provident Fund•Pensions

Town Planner

Town Planning

CityEngineer

Public Works Department•Public Works Accounts•Slums•Electricity•Gardens•Workshop•Projects•Traffic

Health Officer

Clinics•Birth-Death Registration•Health Stores•Public Dispensaries

Hygiene•Health Administration•Health hygiene

Engineer (WS)

Water Supply, Sewerage Treatment and Drainage

•Water supply•Sewerage Treatment and drainage

AdministrativeOfficer

Primary Education•Public Primary Schools

Chief FireFightingOfficer

Fire Fighting

Mun

icip

al

Com

mis

sion

er



8 FORMULATION OF VISION AND MISSION

The CDP is the Municipal Corporation’s strategy that outlines the vision for the growth of the city and details how the Corporation, together with stakeholders, intends to achieve its long-term vision. In this context, stakeholder consultations were conducted to arrive at the vision for the development of Kolhapur and to understand the issues of the city.

8.1 APPROACH

Several stakeholder consultations were organised to finalize the CDP. The stakeholder consultations were held at the organization level, in core groups pertaining to particular sectors, and finally in the form of workshops to bring together the stakeholders on one platform. This enabled them to voice their opinions and come to a consensus on strategies and actions for each identified priority sector.

The stakeholders included educationists, environmentalists, councillors, and representatives of the informal sector, NGOs, and industry associations.. The stakeholder

consultations also involved representatives from the Departments of Transport and Town Planning, non-governmental officers, and KMC officials.

Various rounds of consultations in the form of workshops and focus group discussions were held during the period 22nd August to 11th October September ’06 as illustrated in the chart above. The outcome of each discussion and workshop are summarized in the following section and has been incorporated to formulate strategies and the action plan for Kolhapur.

8.2 STAKEHOLDER CONSULTATIONS – THE PROCESS AND OUTCOME

Here are the various levels of consultations/ discussions organised for formulating the CDP. Most of them follow a structured format, with a pre-defined agenda and objectives. The process details and the summary of the outcome of each

consultation are discussed in the respective section.

Nature of Consultation Participants First Discussion KMC officials Second Discussion KMC officials, councillors Third Discussion -- Mission stakeholders/ Focus Group Discussions

KMC officials, stakeholders, other institutions and organisations in the form of small groups for identified priority sectors

11

22 55

Elected Representativesand Stakeholders

Workshop (10-11th Oct 2006)

City Assessment

Data Collection, Situation Analysis,

Individual Consultations

Service AnalysisFinances’ Assessment

Final CDP

33

KMC Officials Meeting

22nd August 2006

Project Identification & Prioritisation

Draft CDP 17th November

4411

CDP Overview1st September 2006

22Assistance for

approval at SLNA28th October



The consultations conducted on 10th and 11th of October 2006 with municipal representative, officials and the stakeholders group respectively saw huge turnouts of individuals, eager to express their views and concerns about the city’s development. The main objective of the consultations was to involve people in the preparation of the CDP.

8.3 CONSULTATION WITH KMC

The consultation was basically a kick-off meeting with the KMC officials and people’s representatives to make them aware of UIDSSMT and the CDP process. The objective of the workshop was to get the implementing agency’s views on issues such as the importance of Kolhapur, the strengths of the city and the desired focus areas for the development of the city and the region. About 50 officials, including the commissioner, heads of departments, elected representatives, and the press attended the workshop.

The meeting started with a brief introduction of the UIDSSMT and an elucidation of its features, objectives, required reforms, as well as the importance of the CDP. The audiences were also informed about the work plan for preparing the CDP. After these initial discussions, a presentation was made to all officials on facts and figures in the sectors of demography, economics, KMC’s financial profile, civic infrastructure and related issues, institutional aspects and the status of the city with respect to reforms under UIDSSMT. Also, a SWOT analysis of the Kolhapur city as a whole was presented. Through the presentation, feedback was taken on the relevance and accuracy of the assessment.

The outputs from this workshop were used as inputs for further discussions with city stakeholders. This workshop not only enabled a better understanding of the city, but also induced a sense of involvement among the audiences.

The details of each consultation are presented in Annexure 19.

8.3.1 CONSULTATION WITH CITY STAKEHOLDERS

This workshop was held to bring together municipal decision-makers and stakeholders to define the vision for the city and the various sectors of Kolhapur. The stakeholders hailed from diversified backgrounds including representatives of non-governmental organisations (NGO), industrial and trade associations, health and education, town planning, and senior citizen groups. About 50 stakeholders, excluding KMC officials, participated at the workshop.

The workshop fostered an understanding amongst the stakeholders regarding UIDSSMT, the importance of CDP, the key facts that need to be kept in mind during envisioning and the present status of Kolhapur. The stakeholders were divided into focused groups according to their areas of interests. These were:

Economic development and municipal finance

Information technology, communication and network development

Growth management and land management

Infrastructure improvement Traffic and transport Water, sewerage and storm water

management Solid waste management Environment management Health and education improvement Social infrastructure improvement and

rehabilitation Poverty reduction Industrial development Tourism, Culture and Heritage Preservation

Each of the groups was allotted a representative from KMC to provide technical inputs. The groups were asked to orient their discussions

Plate 16: Discussion with stakeholders



around four areas: issues concerning their sector, sector specific visions, an overall vision for the city of Kolhapur, and strategies and actions to realise the vision.

Each group was also asked to make a presentation on the same. The workshop concluded with a summary by the municipal commissioner.

The details of each consultation are presented in Annexure 17

8.3.2 FOCUS GROUP DISCUSSIONS WITH KEY STAKEHOLDERS

In order to understand the demands, expectations from service delivery, willingness to contribute and pay etc., focused discussions were conducted with individual key stakeholders during the last week of September’06. These consultations were held at individual stakeholders’ offices in the presence of KMC officials. The aim of these consultations was to ensure that the priority needs are addressed through various actions proposed for the mission statement. The consultations also helped in obtaining qualitative information on the proposed actions and ensuring that diverse perspectives on the city’s development were incorporated in the CDP process.

During the discussions with the KMC officials, they revealed that Kolhapur has an agro-based economy, pivoting around sugarcane, jaggery, rice and wheat. The city also has a few foundries and an engineering workshop. There are currently two MIDC industrial estates and a new five-star estate is proposed at Kagal for promoting textile industries. They mentioned that the city was a favourite destination of religious tourism as it homed the Mahalaxmi temple and the Rankala temple. Also, there were several tourist locations nearby such as Panhala, Amboli and Amba Ghat. However, there was a need to explore the tourism potential of the city. The officials mentioned that Kolhapur has one of the highest per capita incomes in Maharashtra. However, basic infrastructure was still lacking as were good recreation and entertainment outlets. Although the level of income was high, expenditure outlets such as shopping malls, multiplexes, and water parks were almost absent. The officials also pointed out that the municipal jurisdictional area of KMC had not been increased for a long time. At the same

time, the neighbouring villages had developed urban characteristics. This created a strain on the current infrastructure of the city.

A meeting was held with the town planning office to understand the land use implications as well as the economic growth of the city. The town-planning officer identified the strengths of the city as its location; the presence of the Mahalaxmi and Jotiba temples; the growing industry for Kolhapuri chappals; the presence of adequate education and the presence of the cooperative movement. He said that being located near the Sahyadri range, the soil is rich and the land well irrigated. He also pointed out

that Kolhapur acted as the doorway to the Konkan. Its proximity to Warana, Nipani and Ichalkaranji gives it greater economic importance. The office also mentioned several problems that the city was facing. One of the most important ones was the pollution of the river Panchganga. He pointed out that although the city is located on the national highway and is

well connected; there are very few industries in the city. A focused approach towards industry development was required.

Plate 17: Focused Group Discussion

Photo 18: Citizens sharing their views



The Confederation of Indian Industries (CII) has also held a series of workshops with renowned citizens inviting them to discuss their vision for the city, its strengths and weaknesses, its economy and basic infrastructure issues. A discussion was held with the CII officials to gain a perspective about the economy of the city and its strengths and weaknesses. The officials pointed out that the economy of Kolhapur was growing at a fast rate. They identified the two main growth areas as the agriculture industry -- especially sugar -- and the auto component cluster, comprising mainly foundries and ancillaries. They expect that Kolhapur will soon emerge as an engineering component exporter like Coimbatore. The market size of the foundry market today is 2.50 lakhs tonnes per annum; the major demand emanates from the Europe and the USA. The CII officials also pointed out that Kolhapur has strong locational advantages and consequently, high tourism potential. There are several tourist locations near Kolhapur such as Panhala, Jotiba, Narsobawadi and the Khidrapur caves; the tourism potential of the city could be explored and a tourism circuit could be developed. As far as education was concerned, CII officials voiced there was scope for improvisation. They revealed that the city of Kolhapur was self-made and it needed a leader to take it and its citizens towards a glorious future. The other strong industries identified

included the silver ornament industry, the Kolhapuri chappal industry, and the milk industry.

Also, the CII officials pointed out that the IT infrastructure in the city was weak and needed a boost. Besides, the city had few places of recreation and entertainment value. As a result, although the per capita income was high and the citizens were flushed with money, they had no outlets to spend the same.

The details of the mission stakeholder consultations are presented in Annexure 18

8.4 IMPORTANT ASPECTS THAT DEFINE KOLHAPUR’S VISION

For effective urban reconstruction and development, a common vision of the future development of a city/region is essential. The vision for the city of Kolhapur has been formulated by continued consultations with stakeholders in an integrated and cohesive manner. The consultations centred on the city’s strengths, current issues, concerns, problems and future focus areas. Based on stakeholder consultations, the strengths and weaknesses of the city have been drawn and are elucidated below.

Strong agricultural industry and agro-based industries

Good connectivity –NH4, railway, air Presence of cooperative movement Development as a trading centre for neighbouring

areas Proximity to the Manchester of India – Ichalkaranji Presence of heritage structures Adequate educational facilities

Pollution of the Panchganga river Non-availability of power Absence of adequate IT infrastructure Quality of education Lack of leadership Development of slum pockets

its:

Increasing development of sectors – engineering, horticulture, floriculture, handicrafts and automotives

High tourism potential IT potential

High wages and raw material availability Out migration of educated youths Unwillingness of the youth to continue the

profession of making Kolhapuri chappals

Strength Weaknesses

Opportunities Threats



VISION STATEMENT

Vision for Kolhapur was formulated on the basis of discussions and emerging strengths, current issues, concerns, problems and desirable future focus areas. Based on the city’s strengths, futuristic desires and perspectives, the vision that emanates is to develop –

Kolhapur as a hub for industries – engineering, IT and agro based, famous as a tourist location with efficient urban services



9 INVESTMENT CAPACITY AND SUSTENANCE OF KMC

The investment capacity of KMC is assessed through a Financial Projection – Financial Operating Plan (FOP), which gives a multi-year forecast of finances of the local body for a medium term. In line with the phasing of identified investment from 2006/07 to 2011/12, the sustainability of KMC has been worked out. A salient feature of the FOP is that all outstanding dues, including debt and non-debt liabilities, have been taken into account.

The accounts data between the years 2001-02 and 2005-06 are used as the basis for determining past trends in revenue and expenditure and arriving at appropriate growth assumptions for each of the income and expense items. After forecasting the revenue account, the capital investments proposed under the CIP are added to the forecast. The FOP is generated to assess the investment-sustaining capacity of the Corporation, if KMC adopts a project funding structure comprising grants under the UIDSSMT framework (accounting for 90 percent of the funding) and internal resources and loans (accounting for the rest). The level of investment that KMC can sustain is then determined by studying the overall surpluses/ year-to-year opening balance and debt service coverage ratio (DSCR).

If the debt service coverage ratio (amount of surplus available to pay interest and to repay principal that is due) falls below 1.25 (i.e., less than 25 % cushion), then the investments are reduced gradually till the DSCR exceeds 1.25 in all the years in the forecast period.

9.1 CLASSIFICATION OF ANNUAL ACCOUNTS

The main items of income and expenditure, classified into the revenue account and the capital account, are projected in the FOP under the following categories --

Revenue Account Receipts: Octroi, Taxes, Non Tax Sources, and Grants, Contribution and Subsidies

Revenue Account Expenditure: Establishment, Operation and Maintenance, Debt Servicing- Existing and New Loans, Phasing of non-debt liabilities, and Additional O&M

Capital Income, and Capital Expenditure

9.2 FINANCING STRATEGIES FOR CIP

In determining a long-term financial strategy, KMC plans to raise resources and fund the CIP by:

Accessing grants available under the UIDSSMT framework (as percentage of investment proposed for funding by 2011-12 in urban governance and infrastructure

sectors); financing pattern -- 80% Central Govt. grants and 10% State Govt. grants)

Using available internal resources and improving upon the same through:

Revision of the Annual Rateable Value at certain levels

Revision of water and sewerage charges at specific intervals

Transfer of water and sewerage tax to the respective account heads

Maintenance of the collection performance of taxes and charges at certain minimum levels for current uses and for arrears

Borrowings

9.3 KMC FINANCE OPERATING PLAN

Current ULB finances are projected under built-in growth assumptions for income and expenditure items, to assess the impact of each such revenue enhancement measure being suggested. The projections also aim at estimating the surplus that will be available for servicing new debt. Part of the surplus, after meeting the additional O&M expenses on newly created assets and infrastructure, is translated into debt size and project size (grant component plus debt component) based on certain



assumptions regarding interest rate, repayment method and loan-grant mix.

A spreadsheet FOP model has been customised to depict the financial position of KMC and work out the investment sustaining capacity of KMC, based on the FOP assumptions. The model can be used to calculate future surpluses under various scenarios involving combinations of internal revenue improvement, state support, financing terms, etc.

9.4 MUNICIPAL ACCOUNT – GROWTH PROJECTIONS AND ASSUMPTIONS

The standard assumptions under which the projections are carried out and certain expenditure control and revenue augmentation measures proposed in line with the mandatory and optional reforms under the UIDSSMT framework are presented below.

Table 36: Important assumptions made in the projections Head Assumptions Property Tax Growth in PT Assessments Follows the current growth rate with a ceiling of a minimum of 2% and a maximum of 5% per

year Collection efficiency for both current and arrears demand

Maintain current levels if more than 90% or incrementally increase to 90% by 2011-12

Growth in tax rate Revise every five years starting 2007-08 by 40% Widening the Tax net Identification and assessment of all properties in the ULB by 2007-08 through a GIS-based

survey Water Charges Growth in HSCs and demand Follows the current growth rate with a ceiling of a minimum of 1.5% and a maximum of 5% per

year Collection efficiency Maintain current levels if more than 85% or incrementally increase to 85% percent by 2011-12 Water rate & new connection deposit Revise every five years starting 2007-08 by 25% Increasing coverage Identification and regularisation of all unauthorised connections in the ULB over three years

starting 2007-08 Sewerage Charges Growth in HSCs and demand Continues at present coverage (% of water HSCs) if above 90% or incrementally increases to

90% percent by 2011-12 Collection efficiency Maintain current levels if more than 85% or incrementally increase to 85% percent by 2011-12 Sewerage charge & new connection deposit Monthly charges to be levied @ 80% of water charges and revision every fourth year. New

connection deposit to be charged @ Rs. 2000 per connection starting 2008-09. Other Income items and capital grants Growth rate Current CAGR with a ceiling of minimum 8.35% and maximum of 10% Expenditure Items Growth rate Current CAGR with a ceiling of minimum 8% and maximum 8.5% and where expenditure

control measures are proposed (part privatisation, energy efficient systems etc.) Current CAGR with a ceiling of minimum 6% and maximum of 10%

Salaries/ wages and Pay Commission revisions

6th Pay Commission revision during 2007-08 (Maximum of additional 10% growth)

The incremental O & M for new assets is calculated based on the following norms (O & M cost as a percentage of capital costs). Water supply Sewerage Solid waste management Roads & drains Street lighting Urban poor/ slums

: 2% : 5% : 12% : 2% : 8% : 2%

O & M expenditure arising from new assets (from 2007-08)

For the second year and beyond, a growth rate of 6% is assumed on the base O & M cost. Outstanding non-debt liabilities Repayment over equal installments over a five-year period from 2006-07 Outstanding debt liabilities Repayment over equal installments over a one to 10-year period starting 2006-07 Project Financing Terms UIDSSMT Framework (All urban infrastructure/ governance/ urban poor related projects except land acquisition costs)

UIDSSMT Framework 80% GoI Grant, 10% GoM Grant

Revolving Fund Urban Infrastructure/ Governance Projects - Contribution of 25% of the total grants



Head Assumptions received under UIDSSMT framework to the State Infrastructure Fund by 2011-12. The sector-wise contribution to the revolving fund shall be:

o SWM projects – 10% o Roads, drainage, water supply and sewerage – 25% o Parking, truck terminal and other projects – 100%

Loan terms for commercial borrowings of KMC

Loan period Moratorium period Repayment method Interest rate

: 20 years (5+15) : 5 years on principal repayment : Equal annual installments : 8%

Debt Service Coverage Ratio DSCR of at least 1.25

9.5 INVESTMENT CAPACITY/ SUSTENANCE

Given the existing financial position of KMC, the revenue and capital accounts of KMC are projected against the growth scenario and assumptions presented above. The FOP is generated from the sustainable investment point of view in line with current growth trends against the recommended investment of Rs. 771 crores at constant prices till 2011-12. The results of the FOP are presented in Annexure 20 and the same is summarized below.

The receipts are expected to be 2.22 times their current levels by 2011-12 under the projection scenario. The revenue improvement and expenditure control measures coupled with the availability of grants under the UIDSSMT framework, would give KMC an investment capacity of Rs. 556 crores (constant prices) over the next six years against an investment need of Rs. 771 crores by 2011-12, i.e., investment sustenance of 72% against the need.

9.5.1 IMPACT OF UIDSSMT REFORMS ON INVESTMENT CAPACITY

It is observed that following the current growth trends, KMC can sustain an investment of Rs. 556 crores (constant prices), which is 72% of the identified investment till 2011-12. This indicates the present soundness of KMC’s finances and its capacity to take up large-scale infrastructure projects on its own. The impact of various revenue improvement and expenditure control measures is assessed in terms of their contribution to the investment capacity.

Various revenue improvement measures in property tax like the identification of unassessed properties, regular revision of tax rates, and

improvement of collection efficiency is bound to increase the investment capacity by an additional Rs. 116 crores, which amounts to an additional 15% of base investment capacity. Further, revenue improvement measures in the water supply and sewerage sectors like the regularisation of unauthorised connections, regular revision of user charges and new connection deposits, and improvement of collection efficiency are bound to augment the investment capacity by an additional Rs. 556 crores on the base investment capacity.

9.5.2 MAJOR SOURCES OF REVENUE

It may be observed from the figure above, that the combination of grants availability under UIDSSMT and implementation of the associated reforms would further prop up the investment capacity of KMC and help KMC to maintain its present sound financial condition as well as fund its identified investments. This indicates the need and applicability of the UIDSSMT framework. At present, octroi is the single largest source of revenue. Augmented revenue from other sources like property taxes and user charges would diversify the revenue base as well as create enough surpluses, which together with the capital grants under UIDSSMT will give KMC enough leverage to take up major capital works.



9.5.3 FUND REQUIREMENT

For the identified investment of KMC of Rs. 709 crores at constant prices and Rs. 556 crores at current prices, the funding pattern as worked out in the FOP model would be:

Table 37: CIP Funding Pattern Mode and sources of Funding

Amount (Rs. Crs)– Current Prices

% of Total Investment

Identified Sustainable Investment till 2011-12

709.71 100

Grants (UIDSSMT) 610.23 86 GoI grants 542.43 76 GoM grants 67.80 10 Loan (Open Market/ FIs) 16.74 2 Own sources (KMC) 82.74 12

* Of the total investment of Rs. 771.88 crores (current prices), only Rs. 587 crores is being proposed for UIDSSMT funding and the figure of Rs.556 crores reflects 72% of total identified investment.

9.6 ACTION PLAN FOR KMC

The above analysis and actions indicate that KMC is in a good position to tap UIDSSMT funding. This is based on the implementation of measures as well as the institutionalization of reforms. This would still leave some areas that would need to be addressed by KMC in terms of implementation of a project like water supply.

Some of the projects would be exploring possible options of involving the private sector in areas of development, cost recovery, maintenance, billing and collection, pumping, treatment and distribution. KMC is planning to frame the above in the following manner:

Roads project: KMC is exploring the involvement of the private sector in the form of a build-operate-transfer (BOT) project. An analysis

has been carried out to identify the gap to be bridged through UIDSSMT funding.

Water supply project: KMC should opt for 100% O&M recovery by building O&M recovery as part of the construction contract. It could also separate the pumping, transmission and distribution by adopting separate contracts. The details are provided in annexure 21

Parking facilities: KMC should have a differential pricing mechanism. The city should be divided into four zones such as – emergency service area, parking area with high rates, parking area with minimum possible rates, and residential area.

The parking charges can be applied in a manner such that citizens are discouraged to park their vehicles in emergency areas. The system would enable higher parking charges to be levied in particularly problematic areas and reduce congestion. A new system of auctioning parking sites would have to be evolved, which would enable KMC to charge higher fees wherever feasible. In order to ensure that the parking contractor does not overcharge the vehicle owners, a range of fees can be fixed.

KMC should also encourage the participation of its citizens in implementation of the traffic and parking regulations. The creation of parking infrastructure requires not only funds and technology, but also the cooperation of users, i.e., the vehicle owners. Although difficult, this can be achieved by involving market associations, residents associations and interest groups who are keen to make Kolhapur a good place to live in. Awareness campaigns about the problems of parking and area-based solutions are the key elements of this exercise.



10 CAPITAL INVESTMENT PLAN, STRATEGIES AND IMPLEMENTATION PLAN

The City Investment Plans (CIP) in line with the identified vision for Kolhapur have been prepared through a comprehensive process of assessment of the physical and social infrastructure sectors and stakeholder consultations. The CIP for the city flows from the action plan recommended in the previous chapter. These capital investment requirements are dovetailed in the financial projections that factor the growth in income and expenditures for KMC. A review of the Detailed Project Reports for various projects already in place has also led to the identification of sector specific strategies, implementation actions and associated reforms. This chapter would discuss various projects that would be taken up by KMC as well as the financial projections of the budgets of KMC.

The strategies adopted primarily have three dimensions -- improving the service delivery by efficiency measures, improving service delivery by creating infrastructure assets and improving the governance aspects of KMC. This section summarises the capital investments required for creating infrastructure assets and various strategic interventions required in the implementation of such projects.

10.1 CAPITAL INVESTMENT PLAN

The City Investment Plan (CIP) is the multi-year scheduling of identified and prioritised investments. The scheduling or phasing of the plan is based on studies of fiscal resources availability (for new investments and O&M), technical capacity for construction and O&M, and the choice of specific improvements to be constructed for a period of five years.

The CIP is necessary to record:

Assessment of city growth and infrastructure needs (to be carried out once every five years);

Detailed feasibility/ engineering studies carried out for new projects;

Scheduling of investments of ongoing projects due to cost and/or time overruns; and

Assigning of priorities within the constraints of available financial resources.

The City Investment Plan is an important element of the CIP and significant in terms of the city’s management process and

sustainability with regard to the delivery of basic services. As a part of CIP prepared for the CDP, KMC has:

Analysed and discussed with the stakeholders, the existing applicable norms and standards for infrastructure services;

Agreed and recommended a reasonable and realistic option;

Justified and provided rationales if the chosen option is not within the existing service level standards; and

Identified the roles and responsibilities of various stakeholders in the implementation of identified projects.

10.2 CAPITAL FACILITIES, INVESTMENT PHASING AND IMPLEMENTATION

The City Investment Plan involved the identification of public capital facilities to cater to the demand of the city populace by the year 2011, 2021 and 2031 according to their short, medium and long-term infrastructure needs.

The project identification has been done through a demand-gap analysis of the services and

The phasing of the identified projects and investments is based on the following principles:

Priority needs will be attended to, with developed areas receiving priority over future development areas

Inter and intra-service linkages, viz. water supply investments shall be complemented by corresponding sewerage/ sanitation improvements

Size and duration of the requirements, including preparation and implementation period

Project-linked revenue implications will be considered, such as installing house connections where supply and distribution capacities have been increased



reconciliation of the already identified projects as part of various detailed engineering studies.

Further project prioritisation and strategising of the investments/ phasing of investment is based on the strategies listed out under each service sector as identified by KMC through stakeholder consultations. The projects derived are aimed at ensuring the optimal and efficient utilisation of the existing infrastructure systems and enhancing the capacity of the systems/ services to cater to the demands of future population additions. Certain other projects listed as part of the CIP include developmental projects other than those addressing the core service sectors. Such projects are also based on lists and/ or reports prepared by and for KMC.

The City Investment Plan and the forecasted future needs for provision of capital facilities under each identified sector are presented below. These assets will help KMC universalise the services for the current population as well as accommodate the expected increase in population. In sectors where long-term planning is required (for example, source development for water supply), a 25-year planning horizon (till the year 2031) is considered. Assets created in such sectors consider the projected population in this horizon. KMC expects that these infrastructure assets would not only guarantee services to its citizens, but also give out a signal of proactive

commitment to potential investors considering the Kolhapur region.

10.2.1 PROPOSED PROJECTS UNDER UIDSSMT

The total estimated capital investment required for providing efficient services to the present population and future population of KMC by the year 2031 is Rs. 1107.71 crores at constant prices. Of this, a sum of Rs. 771.88 crores is proposed for investment by 2011-12.

The planning horizon for the projects identified in the sectors of urban poor/ slums, land use/ development planning and other projects is 2011-12. Accordingly, the entire identified investment is proposed for funding by 2011-12 itself. The planning horizon for the core service sectors of water supply, sewerage, drainage and solid waste management is 2031. Hence, only a part of the identified investment is proposed for funding by 2011-12. KMC will need to plan for the remaining identified investment to be funded beyond 2011-12, but before 2021. In case of roads, traffic and transport sectors, 84 percent of the identified investment is proposed for funding by 2011-12, considering the immediate need for improving the road network and transport systems in the city. The table below presents the summary of sector-wise total investment needs and investments up to 2011-12.

Table 38: Sector-wise break-up of proposed funding under UIDSSMT in Rs. lakhs Investment till 2011-12 (Rs. lakhs) Sector Total Investment

Need (Rs. lakhs) Base Cost

Escalated Cost*

% Sector wise of Total

% Investment till 2011-12 against Total

Identified by KMC

Water Supply 6,477 6,477 7,999 8.1% 100% 7285 Sewerage & Sanitation 14,202 14,202 17,745 18.0% 100% 17322 Roads &Urban Transport+ 60,434 34,188 44,140 44.8% 84% 34025 Drains 14,412 11,420 14,611 14.8% 79% -- Street Lights 580 345 429 0.4% 59% -- Conservancy (SWM) 2,107 1,147 1,413 1.4% 54% -- Urban Poor/ Slums 4,883 4,883 6,531 6.6% 100% -- Land use/ Dev. Planning 5,285 2,135 2,766 2.8% 40% -- Others ++ 2,391 2,391 2,937 3.0% 100% 104 Total 110,771 77,188 98,571 100.0% 85% 58,736 Source: KMC data and CRISIL analysis * Escalated cost includes physical contingencies and technical assistance at 10% of total cost and 6% cost escalation due to inflation. + Includes bus terminus – Rs. 1,578 lakhs, truck terminus – Rs. 845 lakhs, outer ring road – Rs. 10,200 lakhs and parking – Rs. 502 lakhs, ++ Includes River Conservation project and Mahalaxmi Temple project



44.8% of the total identified investment is proposed in the roads, traffic and transport sector towards up-gradation, new construction, widening and strengthening of works, setting up of bus and truck terminus, parking facilities and new public transport systems, and bridges and junction improvements. The majority of these projects are prioritised for funding by 2011-12. Sewerage system improvements and augmentation account for 18%, followed by storm water drains at 14.8%. 8% of the investment scheduled till 2001-12 is proposed for the water supply project. This is followed by investment in non-core sectors for programs like heritage, river conservation, tree plantation, system modernization and year-to-year minor capital works.

Sector-wise details of the City Investment Plan, capital facilities identified to be created and supportive actions and implementation aspects/ strategies are discussed in the following sections in detail.

10.3 PRIORITISATION OF THE PROJECTS

Of the total investment need of Rs. 771 crores, KMC has prioritized projects worth Rs. 587 crores. The prioritization of projects has been

based on discussions with key stakeholders and officials of KMC. There is an urgent need to take up these projects, as these serve as triggers for the development of Kolhapur city and the region as a whole. In order to project the city as an agricultural hub and as a tourist, educational and industrial destination, KMC would need to provide these basic facilities. The justification for each of the projects is given below.

Investment Need (Rs. Crores)

65

142

144

49

24

53

6

21

604

49

24

21

11

3

114

342

142

65

0 100 200 300 400 500 600

Water supply

Sew erage

Roads & Urban Transport

Drains

Street Lights

Conservancy (SWM) & Sanitation

Urban Poor/ Slums

Land use/ Dev. Planning

Others

Rs. CroresInvestment by ULB till 2011-12Investment Need of City



Water Supply Sector -- Sector Strategies & Investment Need

Priority needs (2011-12)

Currently, the Corporation supplies adequate water to Kolhapur city. The problem is with respect to equitable distribution of water supply specifically in the ‘E’ ward, which gets polluted water from the downstream of the river Panchganga. The quality of the water is beyond the control of the existing treatment plant, which cannot remove bad smell and odour. The filters start choking, thereby reducing capacity and ultimately forcing shortages in water supply.

Also, the existing water supply scheme was designed for an expected population of 6,20,520

for the year 2011. It has been observed that since the last 10-12 years, due to increasing agricultural activities on both the banks of the rivers Panchganga as well as Bhogawati, there is a considerable shortage in water supply. At times, this results in total stoppage of lifting drinking water due to the river becoming dry.

Thus, in order to address the above problems, KMC has proposed the augmentation of the water supply system as well as improvement of the distribution network. The total cost of this proposed project is Rs. 64.77 crores.

Action Plan for Implementation (2006-07 to 2011-12)

Water Supply 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent

upto

2011

-12

Rs. 64.77 Cores 1.63 20.53 21.20 21.41

Pumping stations and rising mains Gravity main Distribution network augmentation Elevated service reservoirs Repair of water treatment plant Distribution system Ca

pita

l Fac

ilities

Metering system (Complete metered connections)

Rs. 64.77 crores

Assured ability to meet the year 2031’s demand Equitable distribution of water supply Water supply to be 24 X 7

Augment system for increased drawl from source in line with long-term planning and equitable distribution of potable water to all through piped supply.

Develop supply system to the peripheral areas such as Kagal MIDC, Radhanagar and Bawda. Revamp the outdated distribution system and metering system throughout the city. The billing system needs to be established in a different way. Billing should be done on the basis of number of family

members. Consumption must be calculated depending upon the number of family members and accordingly the bill should be raised. Also, a slab system can be introduced, wherein the rate of water tariff depends on the range in which the consumption lies. Thus, more the consumption, higher will be the tariff rate. Telescopic billing must be implemented. People using excess water lavishly must be heavily charged.

Adopt system to calculate and record water distributed in each ward/zone. Rain water harvesting should be made compulsory. Facilitate regular checking of internal plumbing and storage systems at the consumers’ end by licensing service providers.

Strategy

Expected Outcomes

Investment needed



Water Supply 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Regularise unauthorised connections, Check distribution leaks and reduce UFW

Improve collections to reach 90% collection efficiency by 2007-08 85% 90% 90% 90% 90% 90%

Supp

ort &

Sy

stem

Su

sten

ance

Me

asur

es

Revise tariff every five years starting 2007-08 40%

Othe

r act

ions

/ Mea

sure

s Prepare an asset inventory and map the water supply systems for effective monitoring Develop a comprehensive watershed management plan for the City including details of groundwater availability, use, and

potential and develop a policy and legal framework to use and replenish groundwater Make land reservations for zones that are good for water recharge and water conservation Implement findings of ongoing water audit and leak detection study w.r.t identified leaks, UFW and worn-out networks Facilitate regular checking of internal plumbing and storage systems at the consumers’ end by licensing service providers Ensure that high-volume non-domestic users compulsorily fit ISP metres Promote individual group water connections in slum locations and discourage PSPs as a policy measure and to increase

accountability Identify potential and existing polluting sources

Sect

or

Note

s KMC shall be responsible for the implementation of all the suggested actions Capital investments on system refurbishment and replacements shall happen only after concluding the Water Audit and

identification of UFW sources. Improvement of collection efficiency is applicable to both arrears and current demand.

Perfo

rman

ce

Moni

torin

g In

dica

tors

Daily per-capita water supply (min of 243 lpcd) Elevated storage capacity w.r.t Supply (33%) Distribution network reach as % of road length (min 85%) System Coverage – water HSCs as % of PT assessments (min 85%) Cost recovery through user charges (100% O&M expenses)

P o llu te d W a te r

8 00 m m d ia D .I .

P rop os ed B .P .T .

C a p . 1 .8 0 la k h s.

7 00 m m d ia D .I .K -9 / M .S . G /M a in L - 8 .5 0 K m .

P h u le w a d i R in g R o a d

P rop o s e d E S R a tP u ik h ad i

E S Ra t R a ja ra m C o lleg e .

P ro p o s e d S u m p & P u m p H o us e .

P ro p o se d E S R a t S h a hu G a rde n G an a g a v e s h .

P ro p o s e d E S R a tM a rke t Y a rd .

P ro p o se d E S R a t B a v a da .

P ro p o s e d 4 0 0 m m d ia

G /M a in L - 1 43 8 M tD .I .K -7

B a lin ga w a te r w o rk s.

B a w a d a W a te r W orks .

K a la m b a W a te r W orks .

S h in ga n a p u r W a te r W ork s .

P ro p o s e d W o rk s .

P ro p o s ed S u m p & P u m p H o u s e P ro po s e d 20 0 m m

R /M a in L - 3 00 M t.

K -9 R /M a in L -2 00 0 M .

P ro p o s e d

P ro p o s e d E S R a t

Ø D .I . K -9

R . L . O u t L e tF . S . L .

R . L . S R . N O . W o rk s a nd c o v e re d

N am e o f W a te r

E . S . R . (E x it + P ro po s e d )

C a p ac ity L e v e lsG rou n d E .S .R .

fe ed in gZ on e

P o pu la t io n S e rve d o n E S R / G S R Y ea r 2 0 25

T o ta l Q ty .o f W a te r to b e s u p p lie d in Y e a r 2 0 25

in L it rs to E S R / G S R

R e p a ir W o rka t B a va da W .T .P .

a t C h a m bu k h a d i.

6 0 3 .0 0

6 0 3 .5 0

6 4 6 .0 01 ) P u ik h ad i E S R . 5 .0 0 L a k h

3 ) P h u le w ad i R ing -roa d

6 4 3 .006 3 0 .0 0

5 9 7 .005 8 5 .0 0

4 ) J a ra g N a g a r 5 9 8 .005 8 6 .0 0

5 7 3 .005 78 .0 05 5 5 .6 52 0 .0 0 L ak h

2 0 .0 0 L ak h 5 5 4 .0 0 5 74 .0 0 5 6 6 .50

2 ) M a rk e t Y a rd

1 ) K a s a b a B aw ad a

1 ) G a n g a w es h

2 ) M ira jk a r T ik a t i R a ja ra m

5 9 4 .655 71 .0 05 5 4 .0 01 5 .0 0 L ak h

1 5 .0 0 L ak h 5 7 5 .0 0 5 99 .0 0 5 9 2 .42

2 0 .0 0 L ak hC o lle g e .

3 6 ,8 70

2 4 ,5 81

6 .0 0

4 .0 0

4 9 ,1 64

2 4 ,3 12

8 .0 0

4 .0 0

4 9 ,1 64 7 .5 0

4 9 ,1 64 8 .0 0

1 2 ,1 42 0 .2 0



Sewerage system -- Sector Strategies & Investment Need


The quality of water on the downstream of the Panchganga river has got highly affected because of the industries located on the upstream of the Kolhapur city. The nallahs carrying domestic waste water and sewage from the Kolhapur city dumps untreated waste water into the river and villages and towns on the banks of the river

In order to address this issue, KMC has proposed a underground sewerage system project under the UIDSSMT scheme. The total project cost is Rs. 142.02 crores. The project includes the setting up of three pumping stations, I&D works, a sewage treatment plant (STP) and external sewer lines. At the STP, the

raw sewage will be treated up to a desired level before its utilization for irrigation purposes or disposal into the Panchganga River. The following benefits will be achieved as a result of the proposed scheme:

The river will have perennial flow of treated wastewater.

The river water of Panchganga on the downstream side of Kolhapur is used for drinking purpose. Therefore a substantial population outside the Kolhapur city will be directly benefited.

General hygiene and sanitation condition of the city of Kolhapur will be improved.

River bio-diversity will improve in general, due to the flow of treated water in the river.

Action Plan for Implementation Sewerage System/ UGD 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent u

pto

2011

-12

Rs. 142.02 crores 23.23 71.01 47.79

Pumping stations and rising mains I&D works New sewerage treatment plant

Capi

tal

Facil

ities

Internal sewer lines

Rs. 142.02 crores

Synchronization with water supply capacity, ability to meet

service level targets and disposal norms

Capacity expansion, collection and conveyance system to match additional water supply and provide for environmentally safe disposal

Eradicate conditions for malaria, dengue and other water-borne diseases Use new technology in network (trench-less technology) and in STPs UASB, etc.) Ensure location of STPs under the river conservation plan so that benefits are maximized AND ensure full capacity

utilization of existing treatment plants Improve and ensure access to sanitary facilities for the urban poor and slum dwellers Encourage pay & use category of public conveniences with community involvement in the maintenance of the same

Strategy

Expected Outcomes

Investment needed



Sewerage System/ UGD 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Ensure every PT assessment & water connection is also connected to the UGD

Byelaws to be framed for sewerage charges

Supp

ort &

Sy

stem

Su

sten

anc

e Mea

sure

s

Levy of charge for sewerage connections to recover O&M

Othe

r act

ions

/ Me

asur

es Isolate sewerage system from drinking water and storm water lines

Eradicate conditions for malaria, dengue and other water-borne diseases Decentralize the system of operations for effective service delivery Ensure full capacity utilization of existing treatment plants Improve and ensure access to sanitary facilities for the urban poor and slum dwellers Encourage pay & use category of public conveniences with community involvement in the maintenance of the same

Sect

or

Note

s Cost recovery on service is possible only through the introduction of sewerage charges directly or in the form of tax, which however is in want of political will.

Perfo

rman

ce

Moni

torin

g In

dica

tors

Collection network reach as % of road length (min 85%) Population coverage with sewerage network (min 70%) System coverage – UGD HSCs as % of PT assessments (min 85%) UGD Network & Rising mains/ Road Length Covered (80%) Sewerage treatment (Against generation) (100%) % of Treatment capacity w.r.t water supplied (85%) Cost recovery through user charges (100% O&M expenses)

R . L . O u t L e tF . S . L .

R . L . S R . N O .

W o rk s a n d c o v e re d N a m e o f W a te r

E . S . R . (E x it + P ro po se d )

C a p a c ity L e v e lsG ro u n d E .S .R .

fe e d in gZ o n e

P o p u la tio n S e rve d o n E S R /G S R Y e a r 2 02 5

T o ta l Q ty .o f W ate r to b e s u p p lie d in Y e a r 2 0 2 5in L itrsto E S R / G S R1 3 .0 0 L a kh

4 ) J a w a h a r N a g a r 6 0 1 .696 0 5 .0 05 8 8 .8 21 5 .0 0 L a k h5 8 1 .005 8 5 .6 85 6 6 .3 0

1 3 .5 0 L a k h 5 8 0 .5 0 6 0 0 .0 0 5 8 4 .007) R ' p u r i - 1 4 th L a n e

1 0 .0 0 L a k h 6 6 0 .0 0 6 6 5 .0 0 6 6 2 .00

2 2 .5 0 L a k h 5 9 5 .8 9 0 6 1 4 .0 0 6 0 7 .23

5) V a ib h a v T e k a d i

1) S a lo kh e N a g a rE X IS T IN G E S RP u ik h a d i W . T . P . C a p . : 5 0 .0 0 M L D .

6) R ' p u r i - 9 th L a n e 5 7 8 .005 5 4 .0 05 6 5 .3 02 2 .5 0 L a k h

8 ) K a v a la N a k a 5 8 9 .005 9 8 .0 05 6 6 .7 52 2 .5 0 L a kh

5 9 2 .425 9 9 .9 55 7 5 .0 01 5 .0 0 L a k h2 M a n g a lw a r E . S . R . 5 .0 0 L a kh3) P a d m a w a t i E S R

5 5 ,3 0 7

3 6 ,8 7 21 2 ,2 9 2

8 .0 0

5 .5 0

1 .5 0

3 6 ,8 7 33 6 ,8 7 2

5 5 ,3 0 9

5 .0 0

2 .3 0

7 .5 0

5 4 ,0 8 0

5 5 ,3 0 0

8 .5 0

8 .5 0

P uikh a d i W . T . P .

P u ik h a d i W . T . P .

B a tu k e shw a r

B H O G A V A T I R IV E R .

P u m p H o u sea t A p a te n a g a r.

M B R a t P u ik h a d i.

W TP a t P u ikh a d iC a p . 5 0 .0 0 M L D .

K A L A M B A L A K E

M a n g a lw a r p e thP a d a m a v a ti.

E S R a t

S u m p & P u m p H o u s ea t M o re w a d i. C a p . 2 .0 0 L a kh l i trs .

G S R a t V a ib h a v T eka d i.

R a ja ra m p u r i 1 4 th lan e

G S R a t P u m p H o u s e

E S R a t R a ja ra m p u r i S c h o o l N o .9

E S R a t K a w a la n a ka .

P A N C H A G A N G A

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10.3.1 TRANSPORT PLANNING AND TRAFFIC MANAGEMENT -- REMEDIES SUGGESTED BY THE CITIZENS GROUP

Short term

1. Shifting of Transport offices and Grain Trading offices to market yard or truck terminus

2. Management of the traffic consisting of heavy vehicles by notifying entry and exit periods during the day

3. All approved parking lots in commercial buildings should be made accessible (on payment) to general public

4. Freeze on rickshaw permits in the city 5. Creation of hawker zones to remove the

encroaching hawkers from footpaths 6. Redesign of the major junctions for better

management of traffic 7. Beautification of roads Long term

1. Development of inner and outer ring roads 2. Relocation of Railway station and ST stand

from the center of the city 3. Creation of pedestrian subways and Bus

lanes for all major roads of the city

Sector Strategies & Investment Need

IRDP -- Priority needs (2011-12)

Kolhapur is one of the major developing cities of Western Maharashtra. It contributes to the agricultural production and the industrial growth of the region. The overall growth of the region is dependent on the growth of Kolhapur city. With the increasing urbanization and emerging trend, wherein a number of multinational industries, IT parks, call centers are setting up their offices in Kolhapur. At the same time Kolhapur is the central trading market for all the agro products

produced in Kolhapur districts. Moreover, it is a major connecting point to most of regional cities within Maharashtra, given the fact that one National highway and four State highways pass through the city. The five highways that pass through the city are: 1) Kolhapur – Ratnagiri road NH – 208, 2) Kolhapur – Gagan Bawda road SH – 115, 3) Kolhapur – Radhanagari Road SH-130, 4) Kolhapur – Gargoti Road SH – 132, 5) Sahunaka – Temblai railway gate SH – 128. All these factors are calls for reorganization of some of the transport corridors

Rs. 604.34 Crores

Hassle-free travel on the roads and effective transportation system easily accessible to everyone

Increase carrying capacity through widening and improve riding quality through strengthening of existing roads. Create new roads to cater to missing links and develop areas and present the urban face of the city. Institute an efficient, safe and accessible transportation system for the entire region.

Street lighting must be provided in the newly developed areas such as the new extension area, the Bharati Vidyapeeth area and the area near D.Y. Patil Medical College.

Parking spaces should be developed on pay and park basis, involving private developers (PPP basis). Modify the D.C rules to suit parking requirements.

The dense areas need to be marked as core areas. No heavy buses and or vehicles must be allowed in this area for a radius of 9 kms. For transportation purposes, a mini-bus shuttle service can be provided by KMT in this area.

Relocate the city bus terminus on the periphery of the city; only KMT buses should be allowed within the city limits. The outer ring road should also be developed.

Shift utility services from Laxmipuri to Fort Corner road and restrict parking of vehicles and setting up of kiosks. Six-seater rickshaws should not be permitted within the boundaries of the city. Relocate railway station and shift the goods yard to the periphery of the city. Flyover from Kawala naka to CPR needs to be proposed. Allocate area for hoarding through a proper location study. It should also be made a potential source of revenue. Re-plan the old bazaars in order to bring about efficient utilization of space.

Strategy

Expected Outcomes

Investment needed



and development of some new roads in way that would ensure smooth flow of traffic in the city.

All the above factors would lead to a considerable increase in city traffic. On account of the slow development of transportation facilities such as ring roads and internal roads, compared to the development of the city as a whole, Kolhapur is facing tremendous setbacks. In view of the ever-increasing traffic in the high-density corridors, steps are being taken to improve traffic conditions and to provide better connectivity. In order to tackle the traffic and connectivity problems, KMC has proposed an IRDP under the UIDSSMT scheme. This project will include widening of existing roads, laying down of storm water drains, provision of footpaths and dividers, improvisation of junctions, street lighting and beautification of roads.

For the design purpose it is important to determine the capacity of which the road is build and for the same traffic studies be carried out which would include classified traffic volume

count survey, origin destination survey (ODS). The survey would help in ascertaining average daily traffic of certain roads, peak hour traffic. The next step would be to undertake a topographical and engineering survey which includes, map study, road inventory survey, material survey, ground survey, pavement surveys, test pit investigation. This would be followed by identification of roads of different carriage capacities, identification of roads & pavements that requires redevelopment, road network design with varying capacities and pavement design, underpasses design. The last step would be to carry the feasibility and based on that narrow down at the cost required to undertake the development and finalise the toll to be collected to cover the capital and operational costs.

The total cost of this proposed project is Rs. 311.00 crores. However, KMC proposes to take up the project on a BOT basis. It is seeking a viability gap funding under UIDSSMT to the tune of Rs. 114 crores.

TRUCK TERMINUS

NEHRUNAGAR

SUBHASHNAGAR

JARAGNAGAR

CENTRALJAIL

PACH

GAON

GAR

GOT

I

TAPOVAN

I.T.ISTATE BANK

CHH. SAMBHAJINAGAR

NEW

KOTITIRTHTALAV

SHIVAJIUDYAMNAGAR

BINDUCHOWK

SHAHUPURI

SHAHU

SIDHARTH

RATNAGIRI

GANGAVES

BHAVANI

MAHALAXMITEMPLE

DHUDHALI

SHALINIPALACE

RANKALA

PADMALE

JAYPRABHACINETON

PUNA

BHOSALEWADI

KADAMWADI

R.T.O.

GANDHINAGAR

SANT GORAKUMBHAR VASAHAT

MARKETYARD

JADHAVWADI

RUIKARCOLONY

CHH. TARARANICHOWK

RUKMININAGAR

CENTRALS. T.

RAILWAY

TARABAIGARDEN

TALAVSHIVAJI

PRATIBHANAGAR

SHASTRI

SHAHU NAGAR

BAGAL

TARARANIVIDYAPITH

RAIPHAL HUPRI RENDAL

AGRICULTURE

P

PANJAR VIKRAM

MUDSHINGI

TALAV

RAJARAM

COLLEGE

GAGANBAVDA

RADH

ANAG

ARI

PACH

GAON

BANGLORE

COLONYUNIVERSITY

SHALINICINETON

PHULEWADI

NAGAR

MANDAP

CHOWK POL

STANDSTATION

STATUE

NAGAR

PALACE

K BAVDA

DRAINAGE PLANT

OFFICE

RAJARAMPURI

TANK

SHIVAJISTATUE

JAWAHARNAGAR

KOLHAPUR AIR PORT

NORTH

NAGAR

RAJARAM

CHIMASAHEBCHOWK

SHAHU SMARAKBHAVAN

TANK

RAJENDRANAGAR

SUGAR MILL

A

N

C

H

G

A

NG

A

R

I

V

E

R

ER1

ER2

ER3

ER5

ER6

OR

OR1

IR1

IR2

ER4

OR-OUTER RING ROAD

ER-ENTRY ROADS

IR-INTERNAL ROADS

LR-LINK ROADS

ROB

UNDERPASS

KMC BOUNDARY

KOLHAPUR IRDP

LEGEND

LR1

LR2

LR3

LR4

LR5

LR6

LR7

LR8

LR9

LR10

LEGEND

ROAD LEGTH (Km) COST (Cr.)

ER 35.97 91.79( Sub Total)IR 7.60 19.43 (Sub Total)LR 23.75 52.269 Sub Total

ROB 25.00UNDERPASS 06.00TOLL NAKA 02.00UTILITY SHIFTING 100.00

Total 67.32 296.489



Outer Ring Road -- Priority needs (2011-12)

This outer ring road project aims to establish a developed network of main roads in the city joining the National Highways. The total cost of this proposed project is Rs. 102 crores. The outer ring road would be build from Rajendra nagar jakat naka to R.K. Nagar Jakat Naka to Baba Jargarnagar Naka to Kalamba Jakat Naka to Apte NAgar Jakat Naka to Phulewadi Jakat Naka. Apart from this six entrance road to the city would be build, two internal roads, 10 link roads be constructed and 2 underpasses to the railway lines would be constructed.

Bus Terminus -- Priority needs (2011-12)

All private buses start around the central bus stand (CBS) due to which the whole area experiences traffic congestion. Due to the increasing problems of traffic congestion, the Government of Maharashtra has enacted that private buses shall not start from within the 200 m circumference from the central bus stand. All private buses now start from major approach roads to the central bus station; thus, traffic congestion takes place beyond this area and major accidents occur in this zone. As a result, travel operators and passengers face several constraints such as the lack of dedicated berths for parking space, limited parking time, absence of passenger seating capacity at the terminal, issues of unofficial/ illegal parking charges, and lack of security in business.

In order to address these issues, KMC has proposed to build a modern bus terminus with supporting infrastructure facilities for the passengers travelling in and out of Kolhapur through private sector participation. KMC has proposed this project under the UIDSSMT scheme. The idea is to develop a modern transport facility of required standards as per transportation guidelines.

The function of a bus terminus is to provide with the necessary facilities that would ensure smooth flow of the vehicles and passengers. The design will take into consideration traffic demand, traffic characteristics, function of terminal, and assessment of capacity, facilities and costs involved. It will also consider locational analyses, key risk factors, weighing of various costs v/s benefits to the various stakeholders and various options for development.

The approach road to bus terminus is 30 mts wide. And width of the entry to the terminus will be 15 mts. The site has easy access to National Highway and it is at a distance of 500 mts from CBS. Some major commercial and industrial developments are up coming in the catchments of the proposed bus terminal and thus it is opportunity to encash upon the demand generated from these new developments in the catchment area.

It will include a Grade I hotel with modern amenities like a gym and health club, a fast food centre with pool side activities, booking offices, a conference hall, luxurious accommodation for tourists, shops, waiting areas, showrooms, space for IT, space for local commodities etc. It will also include night shelters for the economically weaker class with facilities like a 24 hour restaurant, dormitories and good quality lodging for families. All these wide range of activities in the building expresses a unified & integrated approach to meet the major challenges faced by the city planning management. The total cost of this project has been estimated to be Rs. 15.78 crores.

TRUCK TERMINUS

NEHRUNAGAR

SUBHASHNAGAR

JARAGNAGAR

CENTRALJAIL

PAC

HG

AON

GAR

GO

TI

TAPOVAN

I.T.ISTATE BANK

CHH. SAMBHAJINAGAR

NEW

KOTITIRTHTALAV

SHIVAJIUDYAMNAGAR

BINDUCHOWK

SHAHUPURI

SHAHU

SIDHARTH

RATNAGIRI

GANGAVES

BHAVANI

MAHALAXMITEMPLE

DHUDHALI

SHALINIPALACE

RANKALA

PADMALE

JAYPRABHACINETON

PUN

A

BHOSALEWADI

KADAMWADI

R.T.O.

GANDHINAGAR

SANT GORAKUMBHAR VASAHAT

MARKETYARD

JADHAVWADI

RUIKARCOLONY

CHH. TARARANICHOWK

RUKMININAGAR

CENTRALS. T.

RAILWAY

TARABAIGARDEN

TALAVSHIVAJI

PRATIBHANAGAR

SHASTRI

SHAHU NAGAR

BAGAL

TARARANIVIDYAPITH

RAIPHAL HUPRI RENDAL

AGRICULTURE

P

PANJAR VIKRAM

MUDSHINGI

TALAV

RAJARAM

COLLEGE

GAGANBAVDA

RA

DH

AN

AG

AR

I

PACH

GAO

N BANGLO

RE

COLONYUNIVERSITY

SHALINICINETON

PHULEWADI

NAGAR

MANDAP

CHOWK POL

STANDSTATION

STATUE

NAGAR

PALACE

K BAVDA

DRAINAGE PLANT

OFFICE

RAJARAMPURI

TANK

SHIVAJISTATUE

JAWAHARNAGAR

KOLHAPUR AIR PORT

NORTH

NAGAR

RAJARAM

CHIMASAHEBCHOWK

SHAHU SMARAKBHAVAN

TANK

RAJENDRANAGAR

SUGAR MILL

A

N

C

H

G

A

NG

A

R

I

V

E

R

OR-OUTER RING ROAD

ER-ENTRY ROADS

IR-INTERNAL ROADS

LR-LINK ROADS

ROB

UNDERPASS

KMC BOUNDARY

KOLHAPUR IRDP

LEGEND

OR

OR1

OR

OR1

NH4

OR-Outer ring road outside KMC limit @20 km in length

OR1-Outer ring road in KMC limit @10.30 km in length



Truck Terminus -- Priority needs (2011-12)

Goods transport accounts for about 70-75% of transportation in and around the suburbs of the city. Agricultural and commercial commodities are the primary goods being transported. The city is the transit point for interstate transport routes between Maharashtra, Goa, Karnataka and the southern states, and also serves as a key transport location.

Emerging trends in transportation have caused problems of severe traffic congestion. The major business takes place in the heart of the city, i.e., Shivaji road, Bhausingaji road, Mahalaxmi temple, Mahadwar road, Tarabai road, Rajarampuri main road, Shahupuri, Vyapar Peth, Laxmipuri, the grain market and market yard, etc. All these roads are situated in the congested Gaonthan area. The peak period for business transaction is 10.00 a.m. to 8.00 p.m. During this period, heavy traffic causes major traffic congestion.

Vehicles entering the city daily, i.e., floating vehicle trucks number 1,500 to 1,600, tempos 2000 to 2100, and all others vehicle approx.

20,000 to 25,000. The major roads in Kolhapur city are of 6m-12m width; the five approach roads intercrossing the city are of 15m-18m width. In order to meet the pressures posed by the increasing commercialization of the city and forthcoming projects like multinational industrial offices, corporate offices, IT offices, call centers, and garment parks, traffic congestion needs to be reduced at the earliest.

To tackle this problem, KMC has proposed the development of a truck terminus at the junction of NH-4 and the road approaching Kolhapur city. The truck terminus will also include additional infrastructure such as security and administrative offices, octroi offices, transport offices, banking offices, residential premises, a toilet block for drivers, and lodging, i.e, accommodation for traders. The terminus will also have a first aid center, fire station, transformers and general lighting for the campus, warehouses, automobile shops, workshops, service stations, vulcanizing centres, dhaba- restaurants, petrol and diesel filling stations, a motel for traders and drivers, etc. The total cost of this project has been estimated to be Rs. 8.45 crores.

Proposed site admeasuring 81018.71 sq.mTotal construction area 9181.81 sq.mTotal project cost Rs. 8.45 crores



Parking facilities -- Priority needs (2011-12)

Major arterial roads of the city have the width of 6 – 12 mts. The other National and State highways that cross the city have the width of 15 – 18 mts wide and these constitute only 10% of the total road length in the city. The city is witnessing rapid urbanization and a number of commercial developments, IT developments, call centers, garment parks are upcoming generating additional demand for the parking space. With the prices of lands in the main city area shooting up it is no more feasible to provide parking space in the conventional fashion.

To meet demand for parking space in the city KMC has short listed areas to be developed for parking space on priority basis. The areas are

1. S.T. Stand: This area witnesses the maximum traffic through out the day. The site is at the junction of major roads approaching S.T. stand area. The surrounding area to the site is entirely commercial and generates huge demand for parking space.

2. Station Road: The site is located at the junction of three major commercial area. Given the demand for parking space, this area requires mechanized multilayer parking.

3. Shivaji Chowk: One of the most active commercial area, situated at the junction of major roads, Bhausinghji road and Shivaji road. The sub-roads meeting this place are gaothan type i.e. 4.5m wide with no scope for widening or changing the existing road patterns. This calls for the provision of multilayered parking space.

4. Mahalaxmi Temple: Located in the heart of the city and being a famous pilgrim place in Maharashtra, it attracts a number of visitors every day. The area surrounding the temple is highly commercial. Mahalaxmi temple has the character of urban villages with narrow roads. Visitors to the temple and to the commercial area require an organized parking space.

5. Kapilteertha Market: It is located in the vicinity of Mahalaxmi temple. Moreover, the area is characterized by commercial activities. The parking space provided is insufficient to meet the increasing demand for parking space.

Proposal for parking space for the above sites is as follows:

1. S.T. Stand: Proposed site located in the heart of the city admeasures 3450 sqm. The existing parking space can accommodate only up to 11 four wheelers. A multilayer parking facility is proposed that can accommodate up to 26 four wheelers.

2. Station Road: The site proposed to develop as parking space admeasures 382.82 sqm. KMC intends to develop a multi layer parking to utilize the vertical space as the horizontal parking provision is not feasible. It would be a mechanized multilayer parking enabling parking of 34 cars on the same land parcel.

3. Shivaji Chowk: Again a multilayer car parking facility is proposed on 764.78 sqm area that can facilitates parking space for 44 cars at a time.

4. Mahalaxmi Temple: The proposed site is admeasuring 383.83 sqm. This proposed parking space is expected to provide parking space to the vehicles coming specifically for the temple. On an aveage a total of 300 to 400 car come in the area for the purpose of visiting temple alone.

5. Kapilteertha Market: The proposed site is admeasuring 525.35 sqm.

The parking provision at various places should be a part of the overall transportation plan for the city, ensuring smooth flow of traffic. The parking design study must include following among others the inventory of total parking space within a particular area and analyses of specific problem such as poor location or deficiency of visitors or reserved parking areas and employee parking. Additionally determination of parking duration and turnover rates is required.

Moreover, parking standalone cannot be viable. Therefore, a feasibility study must broadly address the demand for the parking space, internal rate of return from the project, parking fees that needs to be charged to recover the capital and O&M costs and finally what structure should be followed to manage the parking space.



Action Plan for Implementation Roads, Street lighting, Transportation and Traffic Management 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent

upto

2011

-12

Rs. 341.88 Crores 2.143 71.38 83.76 75.26 87.12 22.21

External Roads Internal Roads Connecting links Underpasses Utility Shifting

Capi

tal

Facil

ities

Toll Nakas

Identification of prime traffic corridors and missing links

Supp

ort &

Sy

stem

Su

sten

anc

e Mea

sure

s

Development of Regional Connectivity and Eastern bypass (ORR)

Coor

dina

tion

mea

sure

s

Public transport improvements like provisions for bus bays, bus stops with signages, furniture, etc, shall be planned and implemented.

A regional traffic and transportation study shall be conducted for integrated planning and development of ring roads, bypass roads, and other regional connecting roads. The study shall form the basis for the fixing of alignment, land acquisition if any, and other such regional projects to be implemented.

PPP options O&M may be explored.

Othe

r act

ions

/ Me

asur

es A bus workshop with technological back-up must be established. State-of-the-art technology must be used.

Assess the capacity of KMT and identify the training needs. Hawker zones must be created as part of the land use policy, and continuous efforts made to avoid encroachments Create parking spaces and increase parking charges in prime areas and congested zones. Provide for bicycle networks, and pedestrian facilities like pedestrian plazas and footpaths. It must be ensured that at least 60 percent of the roads have footpaths (i.e., roads of 20 feet and above)

Sect

or N

otes

Design of new roads shall necessarily have provision for shoulders, foot paths, utility ducts and storm water drains under the foot paths, as well as landscaped median and concealed cabling for lighting system

Public transport improvements shall include identifying and locating bus bays, developing dedicated bus lanes on major roads, etc. Location of city bus stops shall be always such that no city bus stop is within 100 mt distance of a junction/ intersection. City bus bays shall have separate provision for an extension from the carriageway.

Coordinated efforts between KMC and the respective traffic police departments need to be made for effective traffic management and to ensure disciplined travel and behaviour.

Street lighting systems shall constitute of automated switching, dimming mechanism, etc.

Perfo

rman

ce

Moni

torin

g In

dica

tors

Road network – Degree of connectivity in terms of area under roads (in conformity with DP proposal) Road condition – percentage of municipal roads surfaced (100% - CC/ BT surfacing) Road condition - roughness (Max. permissible 2000mm/km); rutting (20 mm) max. permissible (1 %) Public transport – CIRT norm of 37 buses/ lakh population; > 90% fleet utilisation; average load factor > 75%

Storm Water Management -- Sector Strategies & Investment Need

Rs. 144.12 Crores Universal coverage and disposal capability

Network expansion, conversion to closed and pucca drains Increase parking charges especially in prime areas and congestion

zones.

Strategy

Expected Outcomes

Investment needed




An investment of Rs. 114.20 crores (84% of total investment need in the sector) is proposed by 2011-12. Priority capital investments are expected to cater to the current service gap and medium-term needs in line with the proposed road network to be completed by 2021. About 398 km. of open drains are proposed for up-

gradation and about 405 km. of new closed drains are proposed for funding by 2011-12. The majority of the investment is directed towards the formation of new networks in un-serviced areas and newly added areas in KMC’s jurisdiction. Further, KMC will need to plan beyond 2011-12 for the augmentation of the network by another 168 km. in line with new roads to be developed beyond 2011-12 to cater to the long-term needs of 2031.

Action Plan for Implementation Storm Water Drainage 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent

upto

2011

-12

Rs. 114.20 Crores 12.96 19.38 27.36 20.87 16.81 16.81

Up-gradation of about 338 km. of open drains to closed drains

Capi

tal

Facil

ities

New formation of about 405 km. of pucca open and closed drains

Supp

ort &

Sy

stem

Su

sten

ance

Me

asur

es

Every divided road to have closed drains on either side and undivided roads to have drains on at least one side

Othe

r ac

tions

/ Me

asur

es

Isolate sewerage system from drinking water and storm water lines Identify, delineate, sanitize and protect the natural drainage system of the city Develop common washing areas in identified hawking areas with connection to treated water and drainage

Sect

or

Note

s All new roads to be designed shall have adequate provision for storm water drains. Constructing new drains shall be integrated with the development of new roads.

Perfo

rman

ce

Moni

torin

g In

dica

tors

Drainage network reach as percentage of road length (min 150%) All divided roads to have drains on either side and undivided roads on at least one side.



Solid Waste Management -- Sector Strategies & Investment Need


An investment of Rs. 11.47 lakhs (54% of total investment need in the sector) is proposed by 2011-12. Priority capital investments are meant to cater to the current service gap and the medium term needs of 2021. The requirements at the disposal site are planned for the horizon year 2031 and accordingly, infrastructure for landfill and composting is proposed. Infrastructure development for landfill would entail a year-to-year capital expense. In line with these developments, augmentation of vehicle capacity by 150 tonnes would be required by

2011-12 to meet the current gap and immediate needs. Also, 338 handcarts are planned to be acquired by 2011-12 to cater to the house-to-house collection activity by KMC.

These investments will help KMC to comply with the SWM Rules 2000 by minimizing the manual handling of garbage and developing landfill sites that are in conformity with legal requirements. KMC will need to plan beyond 2011-12 for further augmentation of vehicle capacity and construction of more intermediate transfer stations in line with the changing land use pattern and waste generation trends, to cater to the long-term needs of 2031.

Action Plan for Implementation Solid Waste Management 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent u

pto

2011

-12

(Rs.c

rore

s)

Rs. 11.47 Crores 0.32 6.80 1.10 1.14 1.38 0.73

Increase fleet size/ capacity by 150 tonnes. Acquire 378 handcarts

Acquire new disposal site

Capi

tal

Facil

ities

Develop land fill infrastructure and composting facility at disposal site

Implementation of complete house-to-house collection

Part-privatisation of house-to-house collection

Supp

ort &

Sy

stem

Su

sten

ance

Me

asur

es

Awareness campaign on source segregation

Rs. 21.07 crores

Reduced waste generation, hygienic conditions and a clean city

Source segregation and door-to-door collection, effective transportation and environmentally safe disposal. Implement 100 % door-to-door collection of solid waste. Women, especially household wives, should be given training in solid waste management. Segregate waste at three levels -- solid recyclable waste, biodegradable waste and toxic waste and train KMC workers in

segregation of waste. Create awareness on the impact of improper solid waste management, the importance of segregation of waste and the

means to do it. Start the practice among societies of giving prizes to individuals for segregating waste regularly.Increase parking charges

especially in prime areas and congestion zones.

Strategy

Expected Outcomes

Investment needed



Solid Waste Management 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Ot

her a

ctio

ns/ M

easu

res Create a separate multi-disciplinary SWM cell with expertise in Engineering Human Resources/Personnel Management,

Awareness Generation/ Social Behaviour, Health. Increase the ambit of Solid Waste Management to include “recycling” and to facilitate and regulate the sector accordingly. Ensure optimum utilization of existing fleet. Initiate I-E-C campaigns to create awareness among the urban poor and slum dwellers of better SWM practices, through

identified 25 NGOs Initiate steps to share the responsibility of primary collection of segregated garbage with citizens. Also, institutionalise rag-

pickers associations and integrate them with the system to carry out primary collection activities. Develop transfer stations in a scientific and eco-friendly manner to act as decentralised waste processing sites for

different types of material.

Sect

or

Note

s The option of establishment of additional Intermediate Transfer Stations to reduce cost of transportation needs to be explored.

Identify localised/ decentralised locations for processing/ disposal/ reuse of bio-degradable and plastic waste.

Perfo

rman

ce

Moni

torin

g In

dica

tors

Source segregation – reduction of waste to be collected (min 70 % of waste generated) Door-to-door collection as percentage of households covered (100%) Optimum fleet utilisation (No. of trips/ vehicle/ day - average minimum of 2.5) Vehicle capacity as percentage of rated capacity to waste generated (minimum 100%)

10.3.2 POVERTY REDUCTION AND BASIC SERVICES FOR URBAN POOR

The requirements in the sector are of immediate priority and hence, the planning horizon for the sector is 2011. Accordingly, projects and investments are identified to be funded by 2011-12. A sum of Rs. 48.83 crores is the investment identified for various slum rehabilitation and improvement projects and for providing basic services to the urban poor. As part of the GoM/ KMC’s strategy to improve the economic conditions in the slums and thereby erase the word ‘slum’ from the face of the city of Kolhapur, various developments works and improvement programs are being proposed.

KMC intends to rehabilitate 2,367 units who currently reside in such land pockets. This is to be taken up as the Integrated Housing and Slum Development Programme (IHSDP). A sum of Rs. 21.41 crores is proposed for rehabilitation/construction of these dwelling units. Of this, KMC proposes to mobilise eight percent of the cost, i.e., Rs. 1.51 crores and 12 percent would come from the beneficiaries (Rs. 2.27 crores). An amount of Rs. 2.47 crores is the estimated requirement for providing infrastructure facilities at these rehabilitated locations as well as other slum locations in the city.


Rs. 48.83 crores

Improvement in quality of services for the urban poor, preservation of sensitive geographies, reduced vulnerability of urban poor

Rehabilitation of slum dwellers currently staying in vulnerable areas and in proposed project locations, in-site improvements

and access to basic services and amenities

Strategy

Expected Outcomes

Investment needed



Action Plan for Implementation Slums and Urban Poor 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent u

p to

20

11-1

2 (Rs

. lak

hs)

Rs. 21.43 lakhs 2.17 4.79 4.19 4.86 5.41

Housing and infrastructure development for slum rehabilitation (2,367 units)

Capi

tal

Facil

ities

In-site infrastructure development and provision of basic services to urban poor

Inventory and geographical mapping of all slums and infrastructure in the slums of KMC area

Socio-Economic Survey of all slums in KMC area

Supp

ort &

Sy

stem

Su

sten

ance

Me

asur

es

Training for slum women and the urban poor in self-employment and other income-generating activities. KMC shall assume a secondary/ supportive role

Othe

r act

ions

/ Mea

sure

s

Take up slum networking, involving mapping and integrating slum locations and the natural drainage paths of the town with parks, playgrounds etc. to form a continuous network of a green corridor. The approach is to help build infrastructure in an economical way and also target the environmental improvement of the surroundings.

Provide for reservation of lands for EWS in or near each type of commercial/ industrial/ residential land use in the Development Plan.

Facilitate access to credit for urban poor. KMC can explore the option of acting as a guarantor. Create a registration system for all the workers in the informal sector and also a specific cell with facilities and options for

insurance, training, etc. for the workers. Hold frequent meetings with slum dwellers to encourage their participation in slum development programmes, create

awareness amongst them on beneficiary contribution to project development, and also goad them to assume responsibility for implementing the projects.

Facilitate and encourage the neighbourhood concept in slums to carry out recreational activities such as reading, sports and drama.

Sect

or

Note

s Infrastructure and basic services’ provision in slums shall not in isolation but in conjunction and in line with the overall infrastructure development in the respective city.

Awareness on health and hygiene shall be created among slum dwellers in line with the long-term goal of moving towards individual toilets and doing away with public convenience systems.

Perfo

rman

ce

Moni

torin

g In

dica

tors

Road network – Degree of connectivity in terms of per-capita road length (min 0.75 mt) Road condition – percentage of municipal roads surfaced (100% - CC/ BT surfacing) Road condition - roughness (max. permissible 2000mm/km); rutting (20 mm) max. permissible (1 %) Public transport – CIRT norm of 37 buses/ lakh population; > 90% fleet utilisation; Average load factor > 75%

10.3.3 URBAN GOVERNANCE/ SYSTEM MODERNISATION

A sum of Rs.1.50 crores has been proposed to be spent over the next five years towards system modernisation, e-Governance and GIS projects. These projects would involve administrative reforms implementation,

computerisation efforts, improvement and additions to the on-going e-Governance project, GIS-based systems development, etc. These capital investments are expected to bring in more accountability and transparency in the administration of KMC.



Action Plan for Implementation

Urban Governance/ System Modernisation 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent

up to

2011

-12

Rs. 1.50 crores 0.30 0.30 0.30 0.30 0.30

Capi

tal

Facil

ities

Urban governance, GIS systems, system modernization

Implementation of double entry accrual system of accounting

Implementing GIS-based property tax system and support engineering services

Rationalisation of tax administration process Supp

ort &

Sy

stem

Su

sten

ance

Me

asur

es

Restructuring of administrative systems

Othe

r act

ions

/ Coo

rdin

atio

n m

easu

res

Urban Governance & Finance Bring professionalism in the functioning of KMC. The number of meetings, which are held can be reduced. IT can be

utilised for more efficient techniques, for example, video conferencing. Identify training needs of the staff of all departments (HR, administration, financial management, urban governance,

service delivery, citizens communication, IT) Involve city-based institutions in imparting training Publish property tax records at the ward level and bring in transparency in the system Carry out a cost audit of all expenditures incurred service-wise and identify and assess sector-wise expenditures to

categories specific expenditure control measures Communicate with the public and within the organisation to build popular support for the reform initiatives Outsource high energy consuming maintenance works of municipal services to target energy efficiency with revenue-

sharing model Outsource non-administrative and non-technical operations of most of the municipal functions like property tax database

management, demand notices generation, arrears collection, etc. Non-core functions in the vehicle/ workshop department Establish a pension fund for existing retired employees and employees who are on the payroll prior to 2005. New

enrolment will however be in a contributory mode. Create such funds like the depreciation fund, infrastructure fund and disaster management fund to meet unplanned and

emergency expenses to ensure prudent financial management. Further decentralization must be incorporated in the system. For example, licensing and taxing rights need to be given to

ward officers. The function of the central body must be limited to monitoring, planning and executing. Establish a discriminatory pricing policy. Take up benchmarking of services and adopt a performance monitoring system.

Going ahead from the development of systems in the next five years, as required by UIDSSMT commitments, the next level could be implementing Enterprise Resource Planning system in the corporation. Enterprise Resource Planning (ERP) is defined as an information system that integrates all related applications for an entire enterprise. A concept note on implementing E Governance and ERP in a Municipal Corporation environment is included as Annexure 23.

10.3.4 GROWTH MANAGEMENT AND LAND USE

Though the sector has a planning horizon of 20 years, its requirements are immediate in nature and accordingly investments identified are to be funded by 2011-12. A sum of Rs. 21.35 crores is the identified investment for the acquisition of various reserved lands in the existing Development Plan. Considering the immediate need for KMC to implement all pending DP proposals, these reserved lands proposed are to be acquired by 2010-11.



In line with the proposals to be identified in the revised DP, KMC will need to plan beyond 2011-12 for any reserved lands to be acquired to facilitate the planned development of the city and cater to its long-term needs. The use of

GIS-based land use survey should be used for the entire KMC area as well as the surrounding areas to help prepare a comprehensive and up-to-date development plan.


Action Plan for Implementation Land Use/ Developmental Planning 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent

up to

2011

-12

Rs. 21.35 crores - 4.55 4.20 4.20 8.40 -

Acquisition of reserved lands in present DP (approx. 210 hectares)

Capi

tal

Facil

ities

GIS-based existing land use survey (66.82 sq.km. area)

Inventory and geographical mapping of all slums and infrastructure in slums

Socio-Economic Survey of all slums

Supp

ort &

Sy

stem

Su

sten

ance

Me

asur

es

Inner/ core areas revitalisation

Rs. 21.35 crores

Planned, orderly development of the peripheral areas contributing to overall city development

Facilitate planned development of city through a comprehensive DP supplemented by modified DCR and applicable norms

Strategy

Expected Outcomes

Investment needed



Land Use/ Developmental Planning 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Ot

her a

ctio

ns/ M

easu

res

Core areas revitalisation

Decongest core areas through selective relocation of commercial, wholesale and trading activities Identify land in the peripheral areas and provide connectivity and other infrastructure Frame building regulations to encourage decongestion of the core areas through:

Revision of FSI norms and incentives Parking norms Specific regulations -- Accommodation and Reservation

Discourage development in critical, ecologically sensitive areas

Environmentally critical locations need to be identified and demarcated. Special DCR needs to be made applicable to these areas to restrict encroachments and unauthorised developments.

Develop CBDs in other parts of city

Move away from the current concentration of CBDs (railway stations,inter-city bus terminus) in periphery locations to decongest the core city areas

Compatibility of land uses (compatibility with transportation)

Assess the carrying capacity of the city at the ward level as part of revision to DP and identify actions accordingly. Encourage new schools to be developed in the peripheral areas to reduce traffic in the core city; the DP, due in 2007,

needs to address this through reservations.

Housing for transit shelters for the EWS/ LIG migrant/tourist population

Encourage builders to develop hostels and working women’s hostels through incentives.

Focus on peri-urban development and integration with transportation networks

Potential areas in the peripheral areas need to be linked through an efficient arterial structure within/outside the city to bypass the core city.

Provision of adequate land for transportation corridors, transportation hubs and network need to be provided for safe, efficient and affordable mobility.

Give a boost to IT sector through land use planning

Reserve more lands for the IT sector in DP and facilitate development of focused institutional/educational zones, supporting the IT sector with all basic services.

Research institutes must be relocated in organised institutional areas.

Sect

or

Note

s KMC/MIDC needs to have a coordination cell to plan functions (land use and major infrastructure) in line with the 74th CAA and modify the DCR accordingly

Area for open spaces in the DP needs to be increased through identification of such potential areas.

10.3.5 ECONOMIC DEVELOPMENT AND CITY BEAUTIFICATION

While KMC does not have a direct role to play in the economic development of the city or the region, it proposes to play a proactive role in facilitating and supporting the same through identified projects from time to time. While the infrastructure development initiatives are of this bent, other initiatives like decongesting the core area through relocation of specific economic

infrastructure (wholesale markets and trade centres to appropriate locations on the periphery) and construction of night shelters are proposed. A sum of Rs. 1.5 crores is the proposed investment for such initiatives.

Several parks/ gardens are proposed for development by KMC at various places in the city to continue the current efforts and to gift a pleasant climate and environment to its citizens. A sum of Rs. 0.45 crores has been proposed for this purpose by 2011-12.




Action Plan for Implementation

Economy, City beautification 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inve

stm

ent

upto

2011

-12

Rs. 2.10 crores 0.53 0.53 0.09 0.09

Development of parks/ gardens and tree plantations

Construction of night shelters/ bungalows for travellers

Capi

tal

Facil

ities

Relocation of markets/ economic infrastructure/ development of truck terminals

Othe

r act

ions

/ Coo

rdin

atio

n m

easu

res

Towards Facilitating Economic Development

Facilitate development of good quality hotels (star hotels) to support industrial and economic development. Provide for safe and secure low cost housing, night shelters, working women’s hostels and the like. Facilitate collaboration and association between institutions and industries in the KMC area to clench the dynamic role of the

region as an IT sector. Facilitate concentration of research institutes in organised institutional areas. Provide for safe and secure low cost housing, night shelters, working women’s hostels and the like.

Parks/ Gardens Development and City Beautification

Ensure beautification of water bodies by creating parks and recreational activities. Encourage citizens’ contribution towards maintenance of neighbourhood parks. Decongest the core areas through relocation of inter-city bus terminus and railway station and wholesale trading activities. Identify land in the peripheral areas and provide connectivity and other infrastructure. Frame building regulation policies to encourage decongestion of the core areas through revision of FSI norms and

incentives Set up parking norms and specific regulations for accommodation and reservation

Sect

or

Note

s KMC also needs to play a proactive role in ensuring that the region is provided with adequate power supply to be able to play its role as an investment destination for the IT/BPO industry

Rs. 2.10 lakhs

Boost in economy of the region, access to best educational/ sports/ arts related facilities and an enriched environment

Siting of economic infrastructure, facilitate development of sports facilities and strive for city beautification

Strategy

Expected Outcomes

Investment needed



10.3.6 TOURISM, CULTURE AND HERITAGE PRESERVATION

In spite of holding tremendous tourism potential, the city of Kolhapur has never been projected as a tourism centre. The vision for the tourism sector for the city should be “Converting Kolhapur city from transit tourism` to a Destination Tourism Hub and magnifying `Resident Tourist` in-flow”. The branding of Kolhapur can be done as “Charismatic Kolhapur- Royal and religious”.

Ms. Amarja Nimbalkar, who is a tourism expert from Kolhapur has suggested some new tourism spots that can be developed commercially

1. Eco tourism; Radhanagari Valley, Barki falls (seasonal), Panchaganga riverfront (house boat), Kambal vadi, Jainal, the 5 Forts (excluding Panhala fort), Ramling, Amba, Gaganbavda, Kode, Pawan khind, Masai pathar, etc.

2. Heritage walks; Juna rajwada - Ambabai temple precinct, Panchaganga Ghats & riverfront, Brahmapuri, Panhala, Pusati buruz, Masai pathar, New Palace area

3. Handicraft bazaar; Paga building (juna rajwada) presently used as N.C.C. office, Rankala mahotsav garden, Panchaganga ghats, Shahu mill

According to Ms. Amarja Nimbalkar there are certain interventions from the Kolhapur Municipal Corporation that are necessary for exploiting the latent tourism potential of Kolhapur in a profitable manner, these are listed below:

Physical Infrastructure

1. Transportation; Major linkage roads of the city comprising of the Landmark Heritage Buildings need to get special attention. Bus terminus needs to shift to a spacious area for easing the traffic congestion.

2. Civic amenities; potable water supply at the tourist locations, pay and use toilets, proper provision of street lights and street furniture, special garbage disposal rules for such locations

3. Hotel capacity; encouraging capacity addition by providing incentives

Policy and planning interventions

1. Provision of no advertisement zones, no development zones, green belts and plantations in the development master plan

2. Tourism website to be developed using experts

3. Publication of brochures and guides

With the introduction of the Deccan Odyssey the city has got noticed on the world map. In order to build upon its tourism potential, a tourist circuit should be developed covering places like the Mahalaxmi temple, Jyotiba temple, Narsobavadi, Panhala, Masaipathar, Khidrapur caves, New Palace museum, Town Hall museum and Rankala. The package can also include the performances of traditional arts such as Lathi, Daanpatta, Talwar and Bhala.

Radiant folklore as Gondhal, Vasudev, Powada, Lavni and Ovya very unique in nature and are the key attractions of the Kolhapur region. There is a need to market such folklore. A cultural centre should be created wherein the specialties of the city can be displayed. The dances, the folklore and the various sports of Kolhapur can be demonstrated to the tourists. The centre can also have various courses that provide training on the same.

The Bhavani Mandap area is a heritage area comprising the Mandap Ambabai temple, Faras Khana, Hujur Paga and the Old Palace. This place needs to be preserved and beautified. Also, its history and importance must be conveyed to tourists. A light and sound show should be introduced at the Mandap wherein the rich history of Kolhapur and its significance is emphasized.

The city should formulate a Heritage Management Plan by integration the land use and state-of-art infrastructure and facilities at the heritage sites/parks. Heritage parks should be developed, wherein various cultural programs and shows should be organized. A concept of Heritage Walk as a guided tour should be initiated covering Bhawani Mandap, Mahalaxmi



temple, Rankala lake, New Palace Museum, Shivaji University and Temblay temple.

Excursion tours should be organized whereby the tourists can visit these forts, get to know about their archaeological significance and also engage in sporting activities such as trekking. However, there is a need to preserve these forts. The city should also be promoted as a place of eco-tourism. The city’s quiet and calm natural beauty, mystical backdrop and spiritual draw make the place an ideal eco-tourism destination. Tourists not only get to enjoy the scenic beauty of the nearby hill stations and visit the historic forts and palaces, but also satisfy their spiritual needs by visiting various religious centres. Such eco-tourism will help to create wealth, generate employment opportunities, and alleviate poverty.

Tourist information centres should be set up at the CBS, airport, railway stations and hotel desks. These information centres should inform tourists about the tourist circuit, the rich culture of Kolhapur and the tourist locations, and also provide them assistance in planning tours in and around Kolhapur. The city has also been known for its ancient sports, which should be promoted and marketed through various measures like organising competitions during festivals.

A Tourist Guide Training program should be incepted to create awareness among auto-rickshaw drivers and hotel front-desk personnel. There should be a website depicting Kolhapur tourism and emporium/souvenir shops should be provided at historical spots. On KMC’s part, it should develop an Artisan Village on the outskirts of the city. It should also retain the identity of the old city by enforcing urban design guidelines and controls.

10.3.7 INFORMATION TECHNOLOGY AND COMMUNICATION

For sustainable economic development, the development of the IT sector is vital. The industry is poised to maintain the current 40-50 percent growth levels in the coming years. Kolhapur will be assessed by IT investors on factors such as manpower availability, real estate, telecom infrastructure, policy initiatives, power infrastructure, city perception, and entrepreneurial history. All these factors need to be developed, if Kolhapur has to be made an IT destination. The industrialists, promoters and

academia of Kolhapur have to pool in their resources to produce thousands of ITES-BPO oriented students for meeting future requirements.

Kolhapur needs to promote extensive percolation of IT literacy and education in the District. A Students’ Training Program will have to be set up at the university/college level in collaboration with various educational institutes. ‘Training of Trainers’ in these skills should be undertaken by recruiting the services of professional institutions. An orientation in customer relationship skills with special focus on education in English, will have to be given at the high school level.

Low-priced real estate is a major contributory factor for the gravitation of ITES companies towards Kolhapur. The same needs to be promoted by KMC through policy initiatives -- land to be offered with suitable fiscal incentives and subsidy, tax exemptions, etc. KMC will also have another role to play --- providing proper quality road network to the IT zone and within the city, developing an efficient local transport system, etc.

The city administration should also support the industry by offering fast track services based on ‘Single Window Clearance’. It should focus on the integration of various government departments on a single IT platform. Uninterrupted power supply should be developed in co-ordination with local power suppliers. At the same time, the existing telecom infrastructure of Kolhapur should be improved and upgraded to support ITES operations. As perception plays an important role in deciding the location of new units, Kolhapur should market itself well, both in India and overseas, to attract MNCs. This will help in providing employment opportunities and stop migration of the citizens.

10.3.8 ENVIRONMENT MANAGEMENT

KMC should evolve an Action Plan to identify sources of emission, quantify the concentration of the pollutants and devise a mechanism to mitigate the levels of concentration.

The citizens of Kolhapur need to put pressure on the city administration to plant appropriate tree species, and/or to ensure that biodiversity conservation is an important consideration in



urban development plans. A regular tree census should be undertaken, which would capture facts of tree diversity, number of trees, and changes in these parameters over a period of time. Public participation and awareness are extremely important for the city’s environmental security. KMC shall involve NGOs, community-based organisations (CBO), and resident welfare associations (RWA) for this activity.

In addition, KMC shall:

Identify sites and develop procedures and methods for the disposal of hazardous wastes

Stop pollution of water through reduction in discharges of waste into water bodies

Minimise the adverse effects of pollution by selecting suitable locations for the establishment of new industrial projects

Ensure location of STPs under the river conservation plan in such a way that the benefits are maximised

Identify and facilitate conservation of structures of heritage and public importance along river banks

Ensure beautification of water bodies by creating parks and recreational activities

Encourage citizens’ contribution towards the maintenance of neighborhood parks

Implement the concept of urban wilderness Identify sensitive, crucial, and threatened

areas of 'ecological significance' and prioritize these areas for protection, preservation and conservation. The near natural areas to be covered in Kolhapur include its Wetlands (tanks Rankala, Kalamba, Rajaram, Kotitirth, Shiroli, Kanheri, Kandalgaon); rivers (tributaries of Panchganga , Panchganga and streams such as Dudhali, Jayanti, and Gomati);wood lands (University Campus, TA Battalion, New Palace, Town Hall); and grasslands and hills (Tremboli, Film City, Cambukhadi, Vaibhav Hill, Sadle Madle, Jyotiba, Panhala, etc.)

Consider new areas for greening of the city such as old industrial areas, open places, traffic islands, playgrounds, the banks of the river Jayanthi and the Dudhaali nallah, and new townships in fringe areas

Convert some suitable green lands into thick woodlands by replacing lawns and ornamental plants

Create green patches all over the city for ecological reasons

Save hills around Kolhapur from encroachments and illegal quarrying.

Use borders of play grounds, and banks of rivers and streams for planting identified species of trees

Co-ordinate with allied institutions to create environmental awareness

10.3.9 HERITAGE DEVELOPMENT

Since ancient times, Kolhapur city has been famous as a religious centre. The city is known for its local deity Goddess Mahalaxmi and Goddess Ambabai. In addition to the famous Mahalaxmi temple, there are several other temples in Kolhapur such as the Binkhambi Ganesh Mandir, the temple of Goddess Tryamboli, Shri. Datta Maharaj Math, Bhikshaling Sthan, Swayambhu Ganpati Temple near canal, Goddess Renuka temple, Vitthal Temple and the Jain Temple.

Mahalaxmi temple was constructed in 634 AD and is one of the most respected and visited temples in Maharashtra. Many people from Maharashtra as well as from all over the country come to Kolhapur to pay homage to their deity. The number increases during the Navaratri festival, a festival celebrated during the month of “Ashwini”, when thousand of devotees flock to Kolhapur to pay their homage to goddess. Another festival called Kirnotsava is celebrated, when the sun rays directly fall on the idol of goddess Mahalaxmi. This festival is celebrated from 9th November to 11th November and again from 31st January to 1st February. This also attracts number of pilgrims to Kolhapur. These religious places generally lack basic infrastructure in terms of water supply, sewage disposal, and disposal of municipal solid waste. Such places are also susceptible to various disasters like fire. Thus apart from being susceptible to disasters they put additional pressure on the city infrastructure. The onus of providing the necessary infrastructure falls on city administration. Thus city administration plans to facilitate it in such a way that it becomes pleasurable experience to the visitors and the same time it is able to generate revenue from such activity.

Within heritage development of Mahalaxmi temple KMC would enhance the beauty of



temple by artificial lighting and light effects. KMC would facilitate tourists by providing toilets and rest rooms for men and women, concrete benches and temporary rest house along with parking facilities. KMC intends to undertake granite paving in the temple premises. The carrying capacity and the conditions of approach roads would be improved. Other facilities like cloak rooms needs to be provided.

To generate revenue from the tourist arrivals KMC should plan an integrated Heritage management plan. Under the management plan it must identify the various place of tourist importance and facilitate the transportation to those places and charge the tourists for the services provided. The total project cost estimated is Rs. 1.04 crores.

10.3.10 STRATEGIES FOR SOCIAL INFRASTRUCTURE (HEALTH AND EDUCATION)

Education has been a key strength of Kolhapur. Over the years, the quality of education has been declining. It has been felt that based on local area-wise population, pre-primary and primary schooling should be made available to all children in every ward. A minimum health meal (based on the requisite nutritional value specifications) must be provided to every child in the school. In case of remote areas, a proper transport arrangement should be provided to the nearest school to ferry the children.

A beautiful school building, good playgrounds, natural green landscaping and a clean and hygienic atmosphere should be compulsory features of all schools. Large indoor and outdoor playing areas, a library, a fully- equipped large science laboratory, and a good and clean canteen hall must also be provided.

Strategies for the development of Education Sector in Kolhapur

Linkages with the industry: The output of a higher education system in any society should be to inculcate such forms of education to the students that make them attractive as human resources for economic activities, or in other words education should develop such skills in the students that are relevant for industry and research. In Kolhapur there are a number of engineering and medical colleges. In the engineering colleges itself, Kolhapur and the nearby towns generate around 1500 engineering

graduates annually. Most of these graduates go out of the area for employment. For retaining them in Kolhapur, the city should present attractive employment or entrepreneurship opportunities within the city. An imperative factor in doing that would be to create stronger linkages with the industry. There can be several interventions for doing that-

a. Creating economic partnerships between university and industry, There are various models for creating partnerships, but the starting point could be to develop a consultancy wing within the university for advising industries and businesses which are thinking about setting shop in Kolhapur. These will ensure that the university is dynamic in understanding the needs of the industries. Indirectly this will give a push to the growth of industries in Kolhapur, thus generating attractive employment opportunities. This strategy has already been initiated by the University.

b. Joint Research, There are a substantial number of knowledge and research based industries in Maharashtra including IT. ITES, Biotechnology, Life sciences, and Pharmaceutical industries. The growth of these industries is dependent on dynamic market directed research. The institutions in Kolhapur can offer to partner these industries for research by establishing joint research laboratories. The research centres will have ample availability of highly skilled human resources in terms of graduates from the colleges.

c. Business Incubation, Business Incubation is a concept that nurtures an idea and helps to transform it into a viable and profitable business by providing professional and technical advice, access to venture capital and hand holding of the promoters till they are capable of managing the business. A business incubation centre can be started for the graduates of the engineering colleges, especially in the sphere of IT/ ITES. That would lead to the development of small and medium businesses in Kolhapur. That in term would jumpstart the economic activities in the region.

Education linked to tourism potential of Kolhapur: Kolhapur administration has serious intentions of developing the tourism sector in the city. With the development of tourism industry, there are a number of industries that come up



like hospitality, entertainment, transport etc. So as the tourism industries grow in Kolhapur, the businesses will need people trained in food sciences, catering, hospitality skills, travel administration- travel booking etc. The university and other institutions can think about initiating courses in Hotel Management, Travel Administration in Kolhapur.

Vocational Training to native industries: There are a number of native industries in Kolhapur- like leather work and silverware. The municipal corporation can partner with training institutions to initiate training modules that would update the skills of the workers, provide them with basic business skills and upgrade the technology used by them. This would be imperative to combat increasing threats of competition from other regions of the state.

Equitable distribution of educational facilities: The Municipal corporation through the mechanism of registration and approvals ensure that the geographical (in terms of coverage of all areas in the city, including the new areas) as well as functional coverage (in terms of coverage of all levels of education) is maintained.

Provision of basic infrastructure facilities: The municipal corporation should ensure that the schools in Kolhapur have the minimum physical infrastructure in terms of teaching facilities, play grounds, laboratories, libraries etc., both in municipal schools and private schools.

Strategies for health and social infrastructure

Products produced by the mahila bachat gats need to be brought in line with market trends. Currently, these products do not have a market. Also, these products need to be advertised and marketed. Shops in the KMC shopping complexes can be reserved for selling mahila bachat products. Social issues such as girl child dowry, superstitions, female foeticide and broken homes will have to be highlighted and women educated about the same. Other actions to be taken include legal literacy programs, pre-marital and post-marital counselling and improvised work environment with facilities like crèche and retiring rooms.

Also, the current 16 KMC dispensaries are more of a liability and do not provide efficient services to the public. These dispensaries should be closed down. These properties can be rented out for coaching classes, showrooms, etc. at the prevailing rent rates. Also, the staff working in the dispensaries can be merged with the staff working in the family centres. As a result, new staff will not have to be recruited for family centres.

In order to upgrade the status of the family welfare centres and to avoid mismanagement of funds, outsourced auditors and task forces can be employed. These auditors should be given the right to penalize for misconduct. Also, participation from other doctors must be invited. Expert doctors from the private sector can be invited to the family welfare centres on an honorarium basis for conducting family welfare programmes. All the operating theatres will have to be revamped depending upon the primary health centre operating protocol. Moreover, the connectivity of family health centres at the central hospital needs to be improved.

There are 317 private clinics and hospitals within the area of KMC. These establishments pay various fees such as hospital and registration fees, plan sanction fees, land taxes, and licenses. Amount collected from such fees should be strictly used for the upgradation and maintenance of health infrastructure. Also, income generated from KMC’s health infrastructure (buildings) such as rent, can be used for contingency funds for unprecedented expenses

The specific action points can be listed as follows: -

1. The current 16 KMC dispensaries are more of a liability and do not provide efficient services to the public. These dispensaries should be closed down. These properties can be rented out for coaching classes, showrooms, etc. at the prevailing rent rates. Also, the staff working in the dispensaries can be merged with the staff working in the family centres. As a result, new staff will not have to be recruited for family centres.

2. In order to upgrade the status of the family welfare centres and to avoid mismanagement of funds, outsourced auditors and task forces can be employed. These auditors should be given the right to



penalize for misconduct. Also, participation from other doctors must be invited. Expert doctors from the private sector can be invited to the family welfare centres on an honorarium basis for conducting family welfare programmes. All the operating theatres will have to be revamped depending upon the primary health centre operating protocol. Moreover, the connectivity of family health centres at the central hospital needs to be improved.

3. There are 317 private clinics and hospitals within the area of KMC. These establishments pay various fees such as hospital and registration fees; plan sanction fees, land taxes, and licenses. Amount

collected from such fees should be strictly used for the upgradation and maintenance of health infrastructure. Also, income generated from KMC’s health infrastructure (buildings) such as rent, can be used for contingency funds for unprecedented expenses.

4. According to the citizen’s group closing down of isolation hospital and distributing the infrastructure and staff to other hospitals is a feasible option as the concept of isolation hospital is obsolete.

5. There is a need for compulsory formal training programmes to raise the staff to minimum acceptable level.



11 REFORM ACTION PLAN FOR KMC

UIDSSMT aims to create ‘economically productive, efficient, equitable and responsive cities’ by focusing on a) improving and augmenting the civic, social and economic infrastructure; b) ensuring basic services for the poor including security of tenure at affordable price; c) initiating wide-ranging urban sector reforms to eliminate legal, institutional and financial constraints that are impending investments in urban infrastructure and services; and d) strengthening municipal governments and their functioning in accordance with the provisions of the 74th Constitutional Amendment Act, 1992.

Though one of the main aims of UIDSSMT is to finance the infrastructure investments identified as part of CDP, the larger objective of the mission is to initiate the much-needed reforms in ULBs. The mission has identified certain mandatory and optional reforms to be undertaken at the state government and ULB levels during the mission period, for the ULB to be eligible for funding. This section deals with the ULB level reforms; specific items are identified under each reform. The timelines for implementation are indicated as also the detailed action plan and the status of these reforms if already underway.

11.1 PROPERTY TAX

Kolhapur Municipal Corporation currently maintains property tax collection efficiency of 77%. A survey to identify the unassessed properties has already commenced. A provision of Rs. 50 lakhs has been made in the budget for the implementation of GIS. A constraint faced by KMC is the size of the property tax net. Since KMC’s area has not been extended since 1972, its property tax potential also tends to remain limited. KMC has proposed to revise the rate of property tax by 10% next year. Also, KMC plans to fine citizens with property tax arrears. The rates at which the annual rateable value is calculated are going to be revised.

11.2 MUNICIPAL ACCOUNTING

A Tally software is already being used in KMC. A chartered accountant has been appointed for converting the current single-entry cash based system into a double entry accounting system. The opening balance sheet is expected to be ready by Apr’07. This firm will maintain the accounts of KMC and simultaneously train its officials for a period of three years. Also, a tender has been floated for the appointment of a data entry operator. A major hurdle to the implementation of accounting reforms will be ensuring that the assets and liabilities of the Corporation are valued properly.

11.3 COST EFFICIENCY

The projects will be implemented on a BOT basis. This will result in cost efficiency. Also, there is a need for a commercial department which shall handle all the transactions of the Corporation. The department will have employees from different fields. The employees will have to be trained to make the system efficient.

11.4 E-GOVERNANCE

Currently, only a few departments of KMC are computerised. These include the departments dealing with property tax, water supply, octroi, birth and death, and building licenses. There is a need to connect all the departments. A Detailed Project Report has been prepared by KMC for the computerisation of all the departments. LAN/MAN (Metropolitan Area Network) will be implemented in the entire Corporation by 2008. The process has already started in April’06. The departments will also be connected to the Citizen Facilitation Centres. Currently, there is one manual CFC; computerised CFCs will be launched by KMC by Mar’07.

KMC’s current website will be updated and made interactive. An agency has already been appointed for the same and work is in progress. The new website will have a gateway for the payment of property tax, a complaint filing service, a discussion forum and an opinion poll.



11.5 OTHER REFORMS A tender has been floated by KMC for

segregation of waste and door-to-door collection of waste and segregation.

Revision of water charges has been proposed.

Revision of the octroi rate has been sanctioned on five items, i.e., electronic goods, masala products, gold, silver and structural goods. This is expected to

generate an additional revenue of Rs. 6.5 crores in FY2007-08.

The IT policy of the Government of Maharashtra (GoM) has been adopted by KMC in 2006. As a result, the IT sector is not charged any octroi and gets property tax concessions and building permission concessions in terms of extra FSI.

In order to promote economic development, two shopping malls have been proposed in the city at Vasant Baug and Kawala Naka.



12 PERFORMANCE MONITORING SYSTEM FOR KMC

In order to undertake effective implementation of the identified projects in a professional manner, KMC needs to adhere to the timeline of the action agenda. KMC should form a project management cell (PMC) or create a Special Purpose Vehicle (SPV) for executing projects under UIDSSMT. The SPV shall undertake the following steps:

Employ project management consultants for planning, designing, drawing out specifications, estimating and implementing projects

Rely lesser on small contractors and as far as possible award large contracts to attract large and reputed contractors

Ensure quality assurance from contractors; implement stringent defects liability and guarantee mechanisms

Employ third party quality control mechanism to ensure that quality control on the works is implemented

Implement specifications and standards specified by various nodal and central technical agencies

12.1 COMPONENTS OF PERFORMANCE MONITORING SYSTEM

The Performance Monitoring System (PMS), an initiative of the KMC, requires collecting data, and measuring and reporting KMC’s performance in its core municipal service areas for the last five years, viz. water, sewage, conservancy, public works, transportation, fire, governance, planning, and social services. The PMS will initially consist of broad-level efficiency and effectiveness performance measures.

PMS would be developed to adhere to the time lines of reforms. This would also ensure timely

implementation of the action plan. The PMS would measure KMC’s performance with respect to its service delivery against the committed/set targets under each reform. PMS would be accompanied with performance benchmarking in order to judge how well or how poorly KMC is performing, and what types of corrective actions are required. Performance benchmarks would provide a point of reference for drawing conclusions from a PMS.

For the purpose of evaluation of PMS, only those aspects have been considered, which are related to reforms under the UIDSSMT funding.



Table 39: Performance Monitoring System for KMC TASK INDICATORS Menu of actions Responsible

department 2006-007 2007-08 2008-09 Collection of arrears 60% 100% Target high value defaulters,

collect from govt. properties, publish list of defaulters, evict shops, disconnect water connections of defaulters

Revenue Department

Increased collection efficiency from current level of 77%

Achieve [85 %] or a minimum increase of 10 %


Set targets for staff, provide incentives and penalties, attach defaulting properties

Revenue Department

Migration to Self-Assessment System of Ptax

Initiate discussion on the SAS system

Commence implementation

Initiate this at the General Body, formulate committee at KMC level

Administrative Department

Improve collection ratio from current level of 77%

90% 100% Set targets for staff Administrative Department

Use of GIS-based property tax system

75% 100% Select appropriate consultant, prepare digital property maps, verify digital maps and prepare complete data-base of properties

Administrative Department

Extension of property tax regime to all properties

100% Carry a city-wide survey Administrative Department

Increased coverage of properties

Maximum ratio of 1:5 Property: Population ratio

Cover new layouts, conduct surveys, detect unassessed properties

Revenue Department

Rise in average assessment per property

Increase of 40% Revise once in every four years, form review committee

Revenue Department

Revision in guidance value

40% Adopt revised rates in resolution Revenue Department

Progress in implementing accounting reforms

Introduce parallel run of accounting system

Withdraw current accounting system and fully convert to new accounting system

Acounts Department

Limit pending audits Maximum of three years pending

Maximum of one year pending

Publish revenue coverage and collection report

Publish

Publish multi year financial projections

Publish

Publish subsidy reports Publish Introduce participatory budgeting

Publish wardwise expenditure data

Initiate a public consultation exercise for the 2006-07 budget

Formalise mid-year, revised budgeting process

Achieve zero revenue deficit

Maintain revenue surplus

Appoint consultant

Reduce percentage of Hhs living in squatter

Nil Adopt resolution



TASK INDICATORS Menu of actions Responsible department

2006-007 2007-08 2008-09 settlements/ temporary structures from current level of 16% Hhs living in squatter settlements/ temporary structures with basic services

100% Adopt administrative measure

Abolish number of PSPs

50% 50% Adopt resolution, convert to paid community tap

Water Supply Department

Detect unauthorised connections

No. of persons per connection of not more than X

Conduct survey, launch amnesty scheme, introduce heavy fine

Revise water rates Increase to Rs. X per month

Adopt and implement new rates

Increase collection efficiency

80% collection efficiency

85% collection efficiency

Set targets for staff, provide incentives and penalties, disconnect connections of defaulters

Metering of water conenctions

Water supply to be charges on metered connections

Adopt resolution, convert to paid community tap

Levy of new connection charge

Rs. 2000 for domestic connection for a property of 500sq.ft and Rs. 2000 plus Rs.5 per sq.ft. for areas greater than 500 sq.ft.

Adopt resolution, convert to paid community tap

Levy of sewerage connection charge

Rs. 2000 for domestic connection for a property of 500sq.ft and Rs. 2000 plus Rs.5 per sq.ft. for areas greater than 500 sq.ft.

Adopt resolution

Property tax efficiency to 85% with GIS

Building plan approval

Water tax recovery

Payment of Property Tax, Utility Bills and Management of Utilities that come under the ULBs.

Public Grievance Redressal

Issue of licences and single window clearance system



TASK INDICATORS Menu of actions Responsible department

2006-007 2007-08 2008-09 Birth and Death

certificate issue

Personnel Management, i.e. personal information system

Works Management System

E—procurement Personnel

Management, i.e. personal information system

Revise lease New leases through auction, Achieve [100 %]

Evict defaulter after four months of default

Revenue Department

Increase coverage Cover 100% of shops

Obtain data from other sources, link to property tax database, cover all types of trade establishments, close unlicensed shops

Increase collection efficiency


Bring under purview of revenue dept.



13 ANNEXURE A: -- ANNUAL ACCOUNTS RECASTING

Analysing the financial strength and making long-term financial projections for ULBs is complicated by the following:

• Budgets are not prepared in a standard format. Variations are observed between ULBs and from year to year within the same ULB. Thus, the financial reports/budgets need to be standardised before analysis.

• The budgets are the only financial document/report prepared by ULBs. The budget is more a

statement of receipts and payments than a statement of income and expenses. • Separate capital and revenue accounts are not maintained. • The different funds of a ULB are not clearly demarcated. Some receipts and payments of a municipal

body do not represent or do not affect its financial health. Hence, these need to be ignored for the purposes for making long-term projections.

Owing to the variations in the preparation of budgets, we have recast them in a standard format as explained below:

RECEIPTS/INCOME/REVENUE

The objective of recasting the income side is to estimate the receipts that are under the control of the ULB and/or which are utilised for meeting the core expenditure of the ULB. The ULB receives funds from various sources such as:

(a) Own tax and non-tax revenues

Items under these heads, among others, include property tax and water charges, which the ULB levies and appropriates. It has more or less complete freedom on exploiting these sources, subject only to certain restrictions by the state in the form of maximum tax rates, etc.

(b) Grants and transfers from the state

Grants that are utilised towards meeting the core expenditure of the ULB are included under this head. Examples are TFC, EFC, SFC grants, city development grants, transfer of stamp duty, etc.

(c) Tied/specific grants

These include items like funds under MP/MLA grant, IDSMT, SJSRY, Housing scheme, etc. These funds are received from external entities and are used for non-core activities like constructing shops, houses. In the absence of these grants, the ULB is unlikely to incur any expenditure on these activities. Hence, they are not included in the core receipts and payments. A qualification is that some of these tied grants (Low Cost Sanitation Scheme) are for core functions. In such cases, a case-by-case approach is employed.

(d) Loans, deposits, advances, extraordinary items, accounting items

Deposits and advances are amounts that have to be repaid and hence cannot be considered as ULB receipts. Notional receipts include receipts from the SFC deducted towards dues owed to EB, MJP and so on. The subcomponents of property tax like Library Cess, Health Cess etc. that are transferred to the



state are shown under the head of Extraordinary Items. Similarly, Loans are not considered as income for the ULB and hence their receipt should be distinguished from other receipts.

Only items 1 and 2 are considered while making projections.

PAYMENTS/EXPENDITURE

The objective of recasting the expenditure figures is to estimate the expenditure that is under the control of the ULB, or is incurred in meeting the cost of core functions of the ULB.

The ULB incurs expenditure on the following broad categories of expenditure

(a) General municipal expenditure, salaries and capital expenditure

Administrative expenses (revenue collection, etc.) and cost in providing services (water supply, street lighting) are included under this head.

(b) Expenditure on government schemes

Non-core expenditure items like IDSMT, SJSRY, Housing scheme, etc are included under this head.

(c) Extraordinary expenditure

Items like repayment of loans, deposits, advances, transfer of cesses collected as sub-component of property tax and so on are included under this head. Repayment of debt is an exception in this category, as it has to be factored into long-term projections.

Only item 1, as given above, is considered while projecting a ULB’s expenses.

PAYMENTS/EXPENDITURE

The objective of recasting the expenditure figures is to estimate the expenditure that is under the control of the ULB, or is incurred in meeting the cost of core functions of the ULB. The ULB’s expenditure can be divided into the following broad categories

(a) General municipal expenditure, salaries and capital expenditure

Administrative expenses (revenue collection, etc.) and cost of providing services (water supply, street lighting) are included under this head.

(b) Expenditure on government schemes

Non-core expenditure items like IDSMT, SJSRY, Housing scheme etc. are included under this head.

(c) Extraordinary expenditure

Items like repayment of loans, deposits, advances and transfer of cesses, which are collected as sub-component of property tax are included under this head. Repayment of debt is an exception in this category, as it has to be factored into long-term projections.



14 ANNEXURE B: TEMPLES AND PALACES IN AND AROUND KOLHAPUR

The city has rich religious precincts such as the famous Mahalaxmi temple, Jotiba temple, Kopeshwar temple, Narsinhawadi, Temblabai temple, Bhawani temple, Jain Math, Vitthal temple, Gagangiri Math and Ramling temple. Such religioud places with a strong culture make Kolhapur a city for religious tourism. Not only this, but the city also has magnanimous landmark heritage buildings such as the Bhavani Mandap, Shalini Palace, New Palace, Town Hall, Laxmi Vilas Palace, Rajaram high school, Bindu Chowk, Shivaji University,Rankala lake, Khasbag Maidan and Palace theatre.

1. Karvir Nivasini Shri Mahalaxmi (Ambabai) Temple

The Ambabai temple, which is located in the heart of the city, attracts several tourists not only from Maharashtra but also from all over the country. According to research it is 5-6 thousand years old. Large number of tourists visits this temple during festivals like tryarnbuli fair, rathosava, ashtami jagar, eclipse, gokul ashtami, kiranotsava, etc.

2. Jotiba

This temple is one of the 12 Jyotirlingas. This is also called Kedarnath and Wadi Ratnagiri. It is situated to the north of Kolhapur in the deep, surrounded by green mountains and black precipices. The original temple was build in 1730 by Navajisaya. The interior is ancient and the idol is four-handed. The temple is visited by a large number of tourists on Chaitra Poornima.

3. Narasimhawadi

Narasinha Saraswati Swami was one of the 16 descents of Lord Datta. Kurundwad was his spot of penance. It is 40 kms. from Kolhapur. Here, huge fairs are held on Purnima which attract around 10 lakhs of tourists.

4. Shankaracharya Cloister

Shringeri is one of the 4 'Mathas' founded by Jagatguru Shankaracharya the. Shri Vidya Shankar Bharati, the ruling Shankarcharya there founded this 'Math' at Kolhapur in 13 A. D.

5. New Palace

This is an ancient building on the Bhavani mandap-kasaba bavda road. It was constructed during 1877-1884. It is an excellent specimen of architecture build in black, polished stone and attracts a large number of tourists. It has an extensive premise with a beautiful garden, fountain and wresting ground. The whole building is eight-angled and has a tower in the middle. There is zoo and a ground lake. Even today, it is the residence of Shreemant Shahu Maharaj.

6. Shalini Palace

The Shalini Palace was built in 193l -34 and was named after Princes Shrimant Shalini Raje of Kolhapur. The palace stands on the west bank of the picturesque Rankala Lake) & is surrounded by towering palm trees, lush greenery & lovely gardens. The palace is built of intricately carved black stone and Italian marble rich decorative wooden doorways fitted with etched Belgium glass bearing the crest of the maharaja of Kolhapur.

7. Bhavani Mandap

It is the glory of the city. Being the biggest & oldest building, it has historical importance. When Kolhapur became self-governed, this place was built. It has a fine and sound construction with 14 squares.



Other Tourist attractions

The city has also several hills stations and forts around such as Bhudar gad, Panhala gad, Vishal gad, Gagan gad, Paar gad, Saman gad and Rangna gad. These forts are located near Kolhapur. There is a need to develop a Kolhapur tourist circuit so that whwn a tourist visits the city he spends more time and visits the places around. This will also help in boosting the economy.

1. Panhala hill station

Panhala is a hill station situated 20 km from the industrial city of Kolhapur. With its hoary heritage, Panhala provides the right locale.

Panhala's historic fort throws up memories of Chhatrapati Shivaji, It was from here that Shivaji beleaguered for over four months, escaped one rainy night to Vishalgad, while his faithful general Baji Prabhu Deshpande laid down his life holding down the forces of Siddi Johar at a narrow pass, since christened Pavankhind.

2. Vishalgad Fort

About 60km northwest of Panhala and 18km south from Kolhapur -Ratnagiri road Vishalgad is situated on a mountain. The fort is separated by a deep narrow raven from the road terminus. Its vastness is big as per its name Vishal. Steep cliffs separate it from adjoining land, making difficult to enter except existing entrance.

3. Dajipur Bison Sanctuary

The Dajipur Bison Sanctuary is situated on the border of Kolhapur and Sindhudurg district in taluka Radhanagari. It is a charming tourist center with a verity of animals, birds and beauty of nature. The forest is famous for "Gava" buffalo. There are ample antelopes, deer, bears & serpents. The Jungle Resort is a scenic spot near the backwater of the Radhanagari dam. Hilly areas and thick forests abundant in wildlife surround it.

4. Rankala Lake

On western side of Mahalakshmi temple, the Rankala Lake, is a popular evening spot and recreation centre. This lake was constructed by late Maharajah, Shri Shahu Chhatrapati.



15 ANNEXURE C: MUNICIPAL FINANCE – ASSESSMENT OF PAST 5 YEARS

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Income Statement

S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06

General Account - KMCOpening Balance 334 436 438 365 478

Part I - REVENUEI Revenue Income

A Own SourcesTax Revenue1 Octroi 4,132 4,360 4,581 4,893 5,210 2 General Tax on Properties 823 673 544 564 767 3 Special Water Tax & Water Benefit Tax 149 120 104 115 120 4 Sewerage Tax, Sewerage Benefit Tax 59 49 40 46 63 4 Conservancy Tax 283 234 197 221 294 5 Other Taxes 257 218 193 215 253

Sub-Total (Tax Revenue) 5,703 5,654 5,658 6,054 6,707

Non Tax Revenue1 Income from municipal assets/ institutions 125 135 145 120 139 2 Development charges 210 226 260 209 202 3 Building License fee 13 13 14 12 13 4 Fire/ Guntewadi fee 162 179 94 75 42 5 Other fees and fines 77 86 83 85 76 6 Water Charges 1,372 1,698 1,788 1,705 1,718 7 Sewerage/ Drainage Charges 1 0 0 0 1 8 Misc Water income 87 94 95 91 88 9 Misc Sewerage income 48 56 65 53 55 10 Interest on investments 132 176 116 37 73 10 Other Miscellaneous Income 498 468 336 387 382

Sub-Total (Non Tax Revenue) 2,725 3,131 2,997 2,776 2,788 Total Own Sources 8,429 8,785 8,656 8,830 9,495

B Assigned Rev, Grants & Contributions1 General Grants 126 103 179 109 310 2 Project specific grants 18 148 150 30 101 3 Other Revenue grants & contributions 8 1 6 0 52 Total Grants & Contributions 153 251 336 139 464

Total Revenue Income 8,581 9,036 8,992 8,969 9,959

Income and Expenditure Statement

Rupees Lakh


General Account - KMCPart II - CAPITALI Capital Income

A Own Sources1 Interest on deposits 56 41 45 62 17 2 Sale/ Lease/ Compensation of lands and Municipal proper 14 9 5 31 4 2 Others (BOT fee, etc) - - - - - Total Own Sources 70 51 50 93 21

B Loans - - - - -

C Grants & Contributions1 General grants and contributions 0 - 60 - 2 2 Project specific grants 419 940 650 610 1,171 Total Grants & Contributions 420 940 710 610 1,173

Total Capital Income 490 990 760 703 1,194


Rupees Lakh



Expenditure Statement


General Account - KMC

II Revenue ExpenditureA Establishment, Salaries & Wages1 Pension & Gratuity 537 680 726 801 1,051 2 General Administration & Tax Collection 425 460 500 533 567 3 Water supply 261 276 317 321 362 4 Sewerage 171 182 194 216 232 5 Conservancy/ SWM 684 782 848 910 1,047 6 Public Health, Safety, Hospitals and medical services 567 624 680 738 801 7 Public works - Roads 416 468 508 541 623 8 Public works - Lands & Buildings 51 60 64 73 82 9 Street lighting 53 61 63 69 75 10 Parks, play grounds, sports, public utilities 152 167 179 191 208 11 Education 711 743 789 921 1,039 12 Others (vehicle, workshop, markets, slaughter house etc) 110 111 114 131 148 Total Salary Expenses 4,138 4,615 4,981 5,445 6,234

B Operation & Maintenance1 General Administration & Tax Collection 192 175 177 177 198 2 Water supply 942 994 1,104 1,093 1,765 3 Sewerage 157 147 130 118 91 4 Conservancy/ SWM 38 34 33 121 21 5 Public Health, Safety, Hospitals and medical services 152 154 150 136 132 6 Public works - Roads 131 334 131 65 74 7 Public works - Lands & Buildings 28 29 28 47 43 8 Street lighting 243 213 208 214 223 9 Parks, play grounds, sports, public utilities 40 37 50 37 39 10 Education 17 38 32 57 74 11 Others (vehicle, workshop, markets, slaughter house etc) 20 161 147 161 128 Total O&M Expenses 1,961 2,316 2,189 2,225 2,788

C Transfers/ Contributions1 General remittances, contributions 207 89 141 154 85 2 Tranfer to KMT 236 150 50 45 120 Total Transfers/ Contribution Expenses 443 239 191 199 205

D Debt Servicing1 General Account 252 172 135 103 90 2 Water Account - - - - - 3 Sewerage Account - - - - - Total Debt Servicing Expenses 252 172 135 103 90

Total Revenue Expenditure 6,793 7,341 7,496 7,972 9,317 Operating Status - Revenue Account 1,788 1,695 1,495 996 641


Rupees Lakh



II Capital Expenditure1 General Administration & Tax Collection 46 50 15 24 12 2 Water supply 660 545 485 275 252 3 Sewerage 111 53 170 26 59 4 Conservancy/ SWM 64 46 6 7 2 5 Public Health, Safety, Hospitals and medical services 17 15 29 17 44 6 Public works - Roads 103 59 137 26 23 7 Public works - Lands & Buildings 81 82 52 143 188 8 Street lighting 46 69 5 10 14 9 Parks, play grounds, sports, public utilities 16 30 21 10 21 10 Social welfare 2 14 51 52 40 11 Urban poor and Slum development 60 89 43 28 39 12 Others and all grant related works 728 875 960 992 690

Total Capital Expenditure 1,935 1,927 1,973 1,610 1,384 Utilisation Status - Capital Account (1,445) (937) (1,212) (907) (190)


Rupees Lakh



Income – Sectoral Contribution

S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06 Avg (2001-02 to 2005-

06)


Part II - CAPITALI Capital Income

A Own Sources1 Interest on deposits 12 4 6 9 1 6 2 Sale/ Lease/ Compensation of lands and Municipal proper 3 1 1 4 0 2 2 Others (BOT fee, etc) - - - - - - Total Own Sources 14 5 7 13 2 8

B Loans - - - - - -

C Grants & Contributions1 General grants and contributions 0 - 8 - 0 2 2 Project specific grants 86 95 86 87 98 90 Total Grants & Contributions 86 95 93 87 98 92

Total Capital Income 100 100 100 100 100 100

Sectoral Contribution/ Share

Percentage


06)

General Account - KMCOpening Balance

Part I - REVENUEI Revenue Income

A Own SourcesTax Revenue1 Octroi 48 48 51 55 52 51 2 General Tax on Properties 10 7 6 6 8 7 3 Special Water Tax & Water Benefit Tax 2 1 1 1 1 1 4 Sewerage Tax, Sewerage Benefit Tax 1 1 0 1 1 1 4 Conservancy Tax 3 3 2 2 3 3 5 Other Taxes 3 2 2 2 3 3

Sub-Total (Tax Revenue) 66 63 63 68 67 65

Non Tax Revenue1 Income from municipal assets/ institutions 1 1 2 1 1 1 2 Development charges 2 2 3 2 2 2 3 Building License fee 0 0 0 0 0 0 4 Fire/ Guntewadi fee 2 2 1 1 0 1 5 Other fees and fines 1 1 1 1 1 1 6 Water Charges 16 19 20 19 17 18 7 Sewerage/ Drainage Charges 0 0 0 0 0 0 8 Misc Water income 1 1 1 1 1 1 9 Misc Sewerage income 1 1 1 1 1 1 10 Interest on investments 2 2 1 0 1 1 10 Other Miscellaneous Income 6 5 4 4 4 5

Sub-Total (Non Tax Revenue) 32 35 33 31 28 32 Total Own Sources 98 97 96 98 95 97

B Assigned Rev, Grants & Contributions1 General Grants 1 1 2 1 3 2 2 Project specific grants 0 2 2 0 1 1 3 Other Revenue grants & contributions 0 0 0 0 1 0 Total Grants & Contributions 2 3 4 2 5 3

Total Revenue Income 100 100 100 100 100 100


Percentage



Expenditure– Sectoral Contribution


06)


II Revenue ExpenditureA Establishment, Salaries & Wages1 Pension & Gratuity 8 9 10 10 11 10 2 General Administration & Tax Collection 6 6 7 7 6 6 3 Water supply 4 4 4 4 4 4 4 Sewerage 3 2 3 3 2 3 5 Conservancy/ SWM 10 11 11 11 11 11 6 Public Health, Safety, Hospitals and medical services 8 8 9 9 9 9 7 Public works - Roads 6 6 7 7 7 7 8 Public works - Lands & Buildings 1 1 1 1 1 1 9 Street lighting 1 1 1 1 1 1 10 Parks, play grounds, sports, public utilities 2 2 2 2 2 2 11 Education 10 10 11 12 11 11 12 Others (vehicle, workshop, markets, slaughter house etc) 2 2 2 2 2 2 Total Salary Expenses 61 63 66 68 67 65

B Operation & Maintenance1 General Administration & Tax Collection 3 2 2 2 2 2 2 Water supply 14 14 15 14 19 15 3 Sewerage 2 2 2 1 1 2 4 Conservancy/ SWM 1 0 0 2 0 1 5 Public Health, Safety, Hospitals and medical services 2 2 2 2 1 2 6 Public works - Roads 2 5 2 1 1 2 7 Public works - Lands & Buildings 0 0 0 1 0 0 8 Street lighting 4 3 3 3 2 3 9 Parks, play grounds, sports, public utilities 1 1 1 0 0 1 10 Education 0 1 0 1 1 1 11 Others (vehicle, workshop, markets, slaughter house etc) 0 2 2 2 1 2 Total O&M Expenses 29 32 29 28 30 29

C Transfers/ Contributions1 General remittances, contributions 3 1 2 2 1 2 2 Tranfer to KMT 3 2 1 1 1 2 Total Transfers/ Contribution Expenses 7 3 3 2 2 3

D Debt Servicing1 General Account 4 2 2 1 1 2 2 Water Account - - - - - - 3 Sewerage Account - - - - - - Total Debt Servicing Expenses 4 2 2 1 1 2

Total Revenue Expenditure 100 100 100 100 100 100


Percentage


06)


II Capital Expenditure1 General Administration & Tax Collection 2 3 1 2 1 2 2 Water supply 34 28 25 17 18 24 3 Sewerage 6 3 9 2 4 5 4 Conservancy/ SWM 3 2 0 0 0 1 5 Public Health, Safety, Hospitals and medical services 1 1 1 1 3 1 6 Public works - Roads 5 3 7 2 2 4 7 Public works - Lands & Buildings 4 4 3 9 14 7 8 Street lighting 2 4 0 1 1 2 9 Parks, play grounds, sports, public utilities 1 2 1 1 2 1 10 Social welfare 0 1 3 3 3 2 11 Urban poor and Slum development 3 5 2 2 3 3 12 Others and all grant related works 38 45 49 62 50 49

Total Capital Expenditure 100 100 100 100 100 100


Percentage



16 ANNEXURE D: CAPITAL INVESTMENT PLAN

Capital Investment Plan (CIP) till 2011-12 : Summary

Investment till 2011-12 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12Sector/ Component (Rs. Lakhs)Water supply 6,477 163 2,053 2,120 2,141 - - 1 Source/ system capacity augmentation 353 - 123 123 106 - - 2 Treatment capacity augmentation 402 - 141 141 121 - - 3 Transmission mains and pumping machinery 3,080 - 1,078 924 1,078 - - 4 Ground level storage capacity augmentation 55 - 28 28 - - - 5 Elevated Storage capacity augmentation 455 - 159 137 159 - - 6 Distribution network augmentation 1,625 163 325 569 569 - - 7 Refurbishment of old Distribution Network 81 - 41 41 - - - 8 Metering System 326 - 109 109 109 - - 9 Land acquisition 100 - 50 50 - - -

Sewerage 14,202 - 2,323 7,101 4,779 - - 1 UGD - Network 4,467 - 670 2,234 1,563 - - 2 UGD - STPs 5,891 - 884 2,946 2,062 - - 3 UGD - Pumping Machinery 3,844 - 769 1,922 1,153 - -

Roads & Urban Transport 34,188 214 7,138 8,377 7,527 8,712 2,221 1 Roads Upgrdation 3,309 214 543 940 806 806 - 2 Roads New Formation 3,306 - - 21 21 1,149 2,116

3Imp. Rds (Widening, beaurtification, ROBs, bridges, utility shhifting etc) 3,575 - - 623 1,401 1,551 -

4 Improvements to roads (IRDP project) 11,400 - 5,700 5,700 - - - 5 Development of Outer Ring Road (ORR project) 10,202 - - - 5,101 5,101 - 6 Land Acquisition for Road Improvements 396 - - 198 198 - - 7 Public Transport/ Improvements 1,580 - 790 790 - - - 8 Traffic Management/ Jn. Improvements 420 - 105 105 - 105 105

Drains 11,420 1,296 1,938 2,736 2,087 1,681 1,681 1 Drains Upgradation 3,519 708 1,056 1,350 406 - - 2 Drains New Formation 7,901 588 883 1,387 1,681 1,681 1,681 3 Desilting & Strengthening of Primary Drains - - - - - - -

Street Lights 345 77 77 41 77 45 27 1 Replacement - Tube Lights 166 41 41 41 41 - - 2 New Installation - Tube Lights - - - - - - - 3 New Installation - High power Lamps 179 36 36 - 36 45 27 4 New Installation - High Mast Lamps 0 - 0 - 0 0 -

Conservancy (SWM) & Sanitation 1,147 32 680 110 114 138 73 1 New Vehicles (Primary Collection) 10 - 3 - 3 3 3 2 New Vehicles (Secondary and Disposal) 215 32 64 - 54 64 - 3 Acquiring New Disposal Site 433 - 433 - - - - 4 Infrastructure at Disposal Site 439 - 167 97 58 58 58 5 DLDPs & Container Bins 50 - 13 13 - 13 13 6 Public Convenience Systems - - - - - - -

Urban Poor/ Slums 4,883 - 495 1,092 954 1,108 1,233 1 Slum Improvement - Rehabilitation/ Housing 3,083 - - 462 617 771 1,233 2 Slum Improvement - Infrastructure 1,350 - 338 338 338 338 - 3 Slum Improvement - Land acquisition 450 - 158 293 - - -

Land use/ Dev. Planning 2,135 - 455 420 420 840 - 1 Acquisition of Reserved lands 2,100 - 420 420 420 840 - 2 Existing Land use Survey (GIS based) 35 - 35 - - - - 3 Others - - - - - - -

Others 2,391 75 1,029 847 169 150 121 1 Panchganga River conservation 200 20 60 60 60 - - 2 Heritage & Conservation 104 - 68 36 - - - 3 Tree Plantation & Gardens 45 5 11 11 9 9 - 4 Parking spaces 502 - 326 176 - - - 5 Truck terminal 845 - 423 423 - - - 6 Eco. Infra Relocations/ Slaughter house etc 165 - 41 41 - 41 41 7 Urban Governance/ E-Governance/ GIS 150 - 30 30 30 30 30 8 Others (System Stduies etc) 80 - 20 20 20 20 - 9 Regular Capital Works 300 50 50 50 50 50 50

Total 77,188 1,856 16,188 22,845 18,268 12,674 5,356

(Rs. Lakhs)



17 ANNEXURE E: MINUTES OF STAKEHOLDER WORKSHOP – 10TH OCTOBER’2006

Members: Municipal Commissioner of Kolhapur Municipal Corporation, Elected Representatives of Kolhapur, Officials of KMC, The Press, CRISIL team.

Minutes of the workshop:

The main objective of the workshop was to outline the UIDSSMT scheme, its features, the mandatory and optional reforms, importance of CDP, the process of CDP to be followed in Kolhapur and the expectations from the stakeholders. The workshop aimed at explaining to the elected representatives the benefits of the scheme and how as citizen representatives they could contribute to it.

It started with a presentation by Dr. Ravikant Joshi, team leader of the CRISIL team outlining the background of UIDSSMT, the context of the CDP, the benefits which the CDP has brought to other Indian cities, the CDP process to be followed in Kolhapur and the assessment of Kolhapur city. Giving the analogy of the city as a child and the Corporators as its parents, Dr. Joshi explained the important role of elected representatives as stakeholders. He emphasised that UIDSSMT was a demand-based approach, wherein the city had to chalk out its long-term plan, identify its needs and then apply for funding under the scheme. He mentioned that projects would have to be proposed depending upon the investment capacity of the Corporation.

Talking about the context of the CDP, he pointed out how it was different from a Development Plan (DP.) The Development Plan was more related to land use reservations for various purposes and geographical in nature. The CDP on the other hand, was a holistic plan of the city outlining a vision, projects to achieve it and reforms agenda to improve the functioning of the municipal body. He gave examples of the CDPs prepared by other cities such as Nagpur, Pune and Vadodara explaining how the CDP had benefited these cities, the analysis done by them, the vision identified and the prioritisation of projects. A concern which was raised was the low decadal growth rate of the city. There were 2 reasons identified for this – either the city did not have sufficient employment opportunities to attract people and retain people or since the city area had not expanded. Dr. Joshi also highlighted a few more concerns such as need to explore tourism potential, need to market the educational facilities and potential for medical tourism.

The presentation was followed by a brief talk by the Municipal Commissioner of Kolhapur Municipal Corporation, Mr. Kunal Kumar. He talked about the UIDSSMT scheme, how it was different from the earlier schemes of GoI and how Kolhapur could derive benefits from the scheme. He also clarified the dual role of the Corporators in the CDP process - contributing to the preparation of the CDP as stakeholders and providing support for implementation of reforms. He also asked the stakeholders to identify projects in the fields of tourism, arts and crafts and jewellery.

This was followed by an open house discussion. Several questions were asked regarding the investment capacity of KMC, the guarantee of getting funding from GoI and the CDP process. The Corporators also identified certain issues in the city the CDP needed to address such as absence of pavements, bad condition of approach roads, insufficient parking space, improper drainage system and inefficient sewage treatment. They also pointed out that the DP roads were implemented to an extent of less than 10% and needed to be implemented. A Corporator also mentioned that the CDP should identify drivers of the economy not only in predominant sectors like agriculture and industry but also in smaller sectors like retail trade and commerce. He mentioned that around 2.5 lakhs of the population was dependent on its earnings on the Kolhapuri chappal industry, scrap industry and other small retail outlets. He enumerated that there were 12,000 fruit selling shops, 350 biryani centres and several mechanic shops in Kolhapur. Such small establishments were an integral part of the Kolhapur economy and the CDP had to incorporate the same.

This workshop not only enable the CDP team to get a better understanding of the city and created a base for further discussions but also brought a sense of involvement among the KMC officials and elected representatives.



18 ANNEXURE F: STAKEHOLDER CONSULTATION – CII KOLHAPUR

CRISIL Representative

JNNURM and UIDSSMT intend to develop city infrastructure thereby facilitating economic development and contributing to nation’s GDP. The UIDSSMT looks ahead in a comprehensive manner that is overall development of city. CDP is also a means of accessing funds for non-permissible items under UIDSSMT. Funding for this can be accessed from National Health Mission, National Education Mission etc. The CDP is citizen oriented were citizens are directly involved in the planning process. A new urban culture is emerging were administrative, political and social leadership are existing at one platform.

The stakeholder consultations are intended to arrive at a consolidate vision for the city. Reforms can be taken beyond what is mentioned in UIDSSMT scheme. Reforms such as PT revision shall be in coordination with administration, political and citizen body.

Difference between in CDP and DP was highlighted. Some illustrated examples of CDPs of other cities prepared by CRISIL were also presented. Issues with respect to Kolhapur were highlighted. The stakeholders should draw issues and suggestions keeping in view the region, the city & its periphery and the ward.

Commissioner - KMC

Commissioner KMC elaborated on the comprehensive nature of UIDSSMT scheme. He said that UIDSSMT provides opportunity for taking up infrastructure projects at city level rather then limited to a toilet block or a piece of road. He narrated an instance with respect to slum development, where some slums are benefited from NSDP and some from SJSRY and VAMBAY. CDP in this context shall propose an overall development. He also illustrated that earlier grants or loans were for specific projects, but in totality did not meet the overall need of the city. UIDSSMT is therefore an opportunity to meet the overall demand and needs of the city. He also clarified the role of citizens in prioritization of projects. He also informed citizens with the process of accessing funding from UIDSSMT. Tress cess to be utilized exclusively for greening the city environs.

Economic Development

Promoting Tourism:

• Tourism potential of Kolhapur is diversified – o Religious – MAHALAXMI TEMPLE, Binkhambi Ganesh Mandir, Temple of Goddess Tryamboli,

Shri. Datta Maharaj Math, Bhikshaling Sthan, Swayambhu Ganpati (Siddhivinayak Temple) near canal, Goddess Renuka temple, Vitthal Temple, Jain Temple etc Ecotourism – Western Ghats Historical - Cultural – Festivals and Kolhapur Cuisine

• Need for exploiting the tourist circuit. • Marketing

Promoting IT & ITES Industry:

• Road show at ASSCHOM conference in Pune regarding potential of establishing IT and ITES industry in Kolhapur.

• Need for developing social infrastructure. • STPI park already in Kolhapur, but very few industries – Chicken-egg syndrome.



Urban Infrastructure

Water Supply: One of the stakeholders suggested for shifting the current source of water supply at Panchganga River due to pollution from sugarcane industries. The new source near the dam shall also be able to serve nearby villages. The commissioner recommended that shifting of source is a costly affair; instead KMC shall ask MPCB for establishing effluent treatment plant which will also eradicate the pollution level. He said that water supply from Kaware Dam was proposed in the year 1989 and the cost at that time period was Rs 76 crore but the work for the same was not implemented. Today the cost of the same project is Rs 310 crore. Budget allocation for water supply at state level is to the tune of Rs 17 crore. In view of this it would not be feasible to implement such project.

He further explained that KMC has already explored options for improving the water infrastructure and has decided to draw water from Shringpur water source at the rate of 140 MLD. This scheme shall meet the meet demand uptill 2038.

He said that presently out of 86,000 households 29,000 do not have piped water supply. Couple to this there is issue of inequitable distribution to ESR. KMC has therefore proposed to implement 24x7 water supply in one of the region. Once successful this shall be implemented across the city.

Sewerage and Sanitation:

• Commissioner said that sewerage treatment in large-scale housing complex will be made compulsory and shall be a part of the building by-laws.

• Stakeholders requested for construction of pay and use toilets across various locations of city and most importantly in slum areas.

• Pilot project with respect to SWM should be taken up by KMC

Roads and Traffic:

• Improvement of approach road and immediate junction. • Facilitating pedestrian traffic. • Issue of road and electric poles – coordination of agency • Coordination between KMC and traffic cell. • Comprehensive traffic planning

Social Infrastructure

• Growing prostitution with increasing trade and commerce in the city. • Kolhapur is 3rd in Maharashtra in terms of Prostitution and 1st in the terms of ‘female foeticide’. • Issue of child labour – KMC should eradicate this by questioning the same while issuing or reviewing license to

commercial establishments. • Career orientation for women. • Reservation for shops in KMC commercial establishments for women from BPL family. • Energy conservation measures. – Awareness. • KMC can facilitate co-ordination between NGO’s engaged in various social activities. Environment

• Retaining identity of Kolhapur – Clean and green city. • Western ghats of ecological importance.

The city has 35 gardens – need for preservation and making them healthier.

• Greening of city just with meagre investment. • Integration of environmental planning in DP • EMP of Kolhapur has shortlisted 25 sites that need to be preserved. • Sites with importance of bird-watching • Jayanti nalla was once a source of water supply, today it is completely polluted. • Health should not only depend on medicine but also on greenery and wilderness of city.

There needs to be a balance between economic development and environment.



19 ANNEXURE G: MINUTES OF MISSION CONSULTATIONS

Name of the Stake Holder: Mr. Milind Awde –Town planning Office

Date of Discussion 23/08/2006

Being from the town planning office, Mr.Awde spoke in context of the entire Kolhapur district. The discussion was more on the economy of the district.

Economy: He highlighted that the district was famous for the cooperative movement with Warana merely 15kms from the main Kolhapur city. The city also has tremendous tourism potential with the presence of the Mahalaxmi temple, the Shalini Palace and the New Palace. The city has MIDC industrial estates located at Shiroli and Gokul Shirgaon and an APMC market yard. The main commodity traded here is jaggery.

Strengths of the city: The city has a locational advantage with proximity to tourist places like Panhala, Amboli and Amba Ghat. The city has a tremendous tourism potential. One of its major strengths is the presence of the Mahalaxmi temple and Jotiba temple. The city is well known for jaggery and the Kolhapuri chappals. It also has a strong educational base with the presence of the Shivaji University and several management institutes and medical college.

Problems faced: Pollution of the Panchganga river is a major problem. The city has not attracted several industries in the recent times. Although, the city is located on the NH-4 and has an airport, rail connectivity, its connectivity needs a lot of improvement. The city roads are very poor. Also, the area of KMC has not been expanded, this creates a lot of load on the infrastructure.

Name of the Stake Holder: Mr. Vijay Mohite- KMT


Transport in Kolhapur: The discussion with Mr. Mohite mainly revolved around the public transport system in Kolhapur. He pointed out that currently KMT plies 140 buses on 27 bus routes. KMT owns 117 buses. 32 buses are plied by private contractors appointed by KMT. These contractors are paid Rs.16.34 per km. The buses ply within a limit of 15kms of the KMC jurisdiction boundary. The total kms travelled every day are 34,000. Approximately, 135,000 passengers every day use this transport. The minimum fare is Rs. 4.The fare was revised last in 2005. KMT faces major financial constraints as it is unable to increase the fare and the O& M costs have shot up due to the high diesel process. The current O&M cost per km is Rs. 26.36. Increase in fare needs permission from the GoM. KMT has signed an agreement with its staff Union that the number of employees will not increase. KMT faces sever competition form the 3-seater and 6-seater rickshaws. These rickshaws have stage carriage i.e. they pick up passengers from the KMT bus-stops.



Name of the Stake Holders: Mr. Sangram Patil and Mr. Yogesh Kulkarni - CII


Economy: The economy of Kolhapur is in a fast track mode. The district has a strong sugar industry, agriculture industry and auto component cluster. It is also a source for OEMs (Original Equipment Manufacturers) outside India. It has the potential to emerge an as engineering component exporter.

The city although never projected a tourism centre, it holds tremendous tourism potential. With the introduction of the Deccan Odyssey the city has got noticed on the world map. In order to build upon the tourism potential, a tourist circuit can be developed including Panhala, Jotiba, Narsobawadi and Khidrapur caves.

Upuri near Kolhapur is famous for the silver ornaments. They are exported to various countries. The city also has a well established Kolhapuri chappal industry.The recent development is that Reliance industries are planning to come up with a mall, an IT project and an enthanol project in Kolhapur.

Strengths: The city has a strong educational base. The Shivaji University caters to Kolhapur, Sangli and Satara.

Weaknesses: The city lacks a strong political power. It is a self made city. It needs a leader to take the city forward.

There is lack of technical power especially in IT services. The city does have an IT park. However, the park has a poor state of basic infrastructure. Also, IT needs a particular kind of culture and social infrastructure which is absent in the city. The city has no shopping malls and just 1 multiplex.

Vision: The city should be promoted as a tourism centre. The basic infrastructure services must be good.

Name of the Stake Holders: Prof. A.A. Dange , Director, Shivaji University


Vision: The basic social and economic infrastructure of the city must be good.

Basic Infrastructure: Mr. Dange identified 3 basic infrastructure services that need to be improved in Kolhapur – water supply, roads and public transport. With respect to water supply, he said that the supply to the peripheral development of the system to areas such as Kagal MIDC, Radhanagar and Bawda was essential for sustainable development. He also mentioned that the current distribution system was outdated and needed to be upgraded. There were several water lifting schemes on the banks of the river Panchganga and as a result as soon as water was released the water would be lifted resulting in fewer water supplies for the Kolhapur city.

With respect to public transport, he pointed out that the performance of KMT was not improving. There was absence of route diversification and also the bus schedules were not properly planned.



He also pointed out that the roads condition was bad. He said that only road patchwork was done and the potholes filled up. Resurfacing of roads did not happen. There was a need to relay the roads. On discussing BOT for road projects, he mentioned that this was feasible only for the bigger roads which connected periphery areas.

Economy: He mentioned that the economy of the city has to compete with Pune due to the location of the city. He found the future of the city mainly in agro-based development. The cooperative movement although successful in the past could not compete with MNCs. He felt that there was a need for a large private project to come up in Kolhapur.

Education: Shivaji University has proposed the setting up of a National Institute of Agri-bio technology and an International School of Engineering and Technology. These 2 institutions are expected to be complete by 2007-08. It also proposes to set up a National Law School and an Entrepreneurial Development Institution. Currently, the University has introduced a course wherein it sends 30 artisans per month to the Central Leather Research Institute in Chennai for training on producing quality training and for informing them on the latest customer trends. The University has also introduced a PG Diploma in Leather Technology. It is focussing on modernisation of the existing courses and new applied science courses. There also exist 2 other major universities in Kolhapur- Bhartiya Vidyapeeth known for management, pharmacy and law and D.Y. Patil University famous for medical courses. Symbiosis is also planning to set up a governance program and executive training programs at Kagal.

Industry: In order to have the industry booming there was a need for entrepreneurial development in Kolhapur. During the period, 1950’s to 1980’s, the foundry in Kolhapur developed due to the incoming business from automobile industries in Pune. However, now industries in Pune were going for backward integration and as a result this job work from Pune reduced. Thus, the growth of foundry industry has reduced. He identified that the need for self-sustaining growth of the economy. There was a need for private initiation and a new entrepreneurial vision.

Information Technology: The facility of the IT park in Kolhapur was very poor as compared to other cities. Also, the culture of the city was very different as compared to the one preferred by IT professionals. Thus the city was unable to attract the IT companies.

Agriculture: Crop diversification was not taking place and this stopped agro-processing units from setting up in Kolhapur. Also, sugarcane being a cash crop, all the farmers were dependent on it and did not go for crop rotation. There was a lot of forward trading that happened in sugar, groundnuts and soyabeans. There was a need for the farmers to go for diversification of pulses. Innovation in the field of agriculture was absent.

Art and Craft: For the development of the art and crafts industry, there was a need to link the same with export houses. Also, the export of silver can be tapped to the Chinese economy. He mentioned that the leather business in Kolhapur was a family business. There were artisan families which produced the leatherwear and the marketing houses which exported and traded the leatherwear. Currently, the leather industry in Kolhapur was facing strong competition from Athni in Karnataka.

Tourism: A tourist circuit can be developed and an entire package can be offered to the tourists. This will help in enhancing the tourism potential of the city. The circuit can cover places like the Mahalaxmi temple, Jyotiba temple, Narsobavadi, Panhala, Masaipathar, New palace museum, Town hall museum and Rankala. The packagae can also include the performing of the traditional arts such as Lathi, Daanpatta, Talwar and Bhala.



Name of the Stake Holders: Mr. R.N. Jadhav, APMC


The discussion mainly revolved around the trading of agricultural commodities in Kolhapur. He mentioned that sugarcane was the major commodity that was traded. Another major commodity was jaggery. On an average 6,70,000 quintals were traded per annum. This year, APMC expects a trading of 7,50,000 quintals of jaggery. The major trade was to Gujarat and Mumbai and exports to New York. He pointed out that the city had good connectivity in terms of roads but there was a need for better rail connectivity. The current market of APMC is at Laxmipuri but being in the centre of the city it is very congested. Thus, a new market of area 20 acres has been proposed at Tamblaywadi.

The APMC secretary felt that there was no need for a truck terminus. He felt that there was sufficient space in the market yard complex. He felt that there was a need to plan the goods traffic. KMC could keep a specific timing for the trucks to enter the city.

Name of the Stake Holders: Mr. Mukund Joshi , Gokul Dudh Sangh


The Gokul Dudh Sangh collects milk from 4000 primary societies in the Kolhapur district. Milk is collected from all the 12 talukas in the district. The major milk suppliers are Karvir taluka, Gadhinglas taluka, Chandgarh taluka and Kargal taluka. The society had an annual turnover of Rs. 500 crore and earned a profit of Rs.4.1 crores in the year 2005-06. The procurement of milk ranges from 5.3 lakh litres per day to 6.82 litres per day. The total procurement was around 19 crores for the year 2005-06.The capacity of the plant is 7 lakh litres per day. The society employs 2000 permanent workers. The Sangh sells around 3,50,000 litres to Mumbai everyday. In addition to this, 60,000 litres is sold to the Mahanand dairy in Mumbai. Around 30,000- 40,000 litres is sold in Pune and around 80,000 litres is consumed in Kolhapur, Ichalkaranji, Konkan and Belgaum. The Sangh products comprises of liquid milk (85%) and by-products (15%). Of the liquid milk, 75% is buffalo milk.

The total procurement of milk in the Kolhapur district is approximately 19 lakh litres. The main dairies are Warna, Gokul, Samruddhi, Mahalaxmi and Morna among cooperative dairies and Bharat Dairy among the private ones.



Name of the Stake Holders: Mr. K.R. Nagpure, MIDC


Industrial estates in Kolhapur: There are mainly 3 industrial estates located at Shiroli, Gokul Shirgaon and Kagal.

The Kagal Industrial estate is of 1100 hectares. A 5 star industrial estate comprising of 3000 plots has been established here. Of the total 3000 plots, on around 300 to 400 plots, companies are functioning currently. Besides this, a textile zone on area of 450 acres has been proposed. The main companies are Raymond, Indocomm, Oswal Wardhman and Kirloskar. Also, a silver zone on an area of 80 hectares has been proposed. In the Phase 1 and Phase 2 of the Kagal industrial estate, there are mainly engineering and foundry industries such as Anshul steel and Menon Casting. As far as basic infrastructure in the estate is concerned, the water supply is sufficient. MIDC and MSEB are in the process of making power distribution of 100 MW to this estate. The development of roads and storm water drainage is in process. Also, a CETP of 10 MLD will be started in the next 6 months to treat the industrial effluent. For the infrastructure development of Kagal, MIDC has already spent Rs. 34 crores and plans to spend Rs. 20 crores in the next 2 years.

The Shiroli Industrial estate comprises of 260 hectares. Of the total 730 plots, around 650 plots have been sold. Around 635 industries are currently functioning in this area. MIDC has spent around Rs. 6 crores on providing basic infrastructure in this area. The major industries in this estate are Menon Casting, Manograph industries, Lokmat, Kolhapur Steel, Saroj Iron industry, Sriram foundry, Mahalaxmi masala product, Bharat Udyog Ltd. and H.J.Iron.

The Gokul Shirgaon industrial estate comprises of 220 hectares. It has a total of 850 plots of which 800 are sold. There are 750 industries functioning in this estate. Most of the industries are engineering and foundry. The major industries are Gokul, Eurotex, Menon Bearings and Indocount.

Infrastructure Needed: There is a need to have a bus service to the Kagal Industrial estate. Good connectivity will lead to further development of the estate.

A truck terminus is not feasible in the city as very few trucks come to the industrial estate. However, the same can be implemented in phases on a trial basis. Also, since most of the industries are engineering and textiles, there is no need for a warehouse. Also, the market yard has sufficient space and does not face a shortage of storage capacity.

Proposals of MIDC: The following are the proposed projects planned by MIDC:

Roads and water supply- Rs. 10 crores Concretisation of roads – Rs. 40 crores Common Effluent Treatment Plant – Rs. 17 crores Effluent Collection Pipelines- Rs. 2 crores Citizen Facilitation Centres, Street Lighting, etc. Rs. 5 crores.



Name of the Stake Holders: Mr. Vijay Kadam, Kolhapuri Chappal Businessman


The discussion mainly revolved around the Kolhapur Chappal industry and the problems that it faces today. The industry produces around 500 chappals every day. The major countries to which it is exported is France, China, Japan and Australia. Mr. Kadam mentioned that this was a very fast business and there was no death to this business. Getting the needed raw material i.e. hide in India is not a problem as India is a agro-based country. Also, there exist several leather tanneries so processing it is also not a problem. However, being a family business and the recent generations not interested in it, there is a threat to the continuity of this business. The Kolhapur chappal industry has always been a cottage industry wherein the family works together. Men work on getting the chapel ready and the women do the finer design. This occupation is passed down form generation to generation. However, today, the young generation does not want get into this profession; this has created a shortage of artisans.

A problem faced by the Kolhapuri chappal businessmen is the payment of almost double octroi thus resulting in increase in costs. When the raw material comes to Kolhapur, the businessman has to pay an octroi duty. Then this raw material is sent to the village artisans. Again, when the artisans produce the finished goods and send it back to Kolhapur, the businessman again has to pay octroi.

The Leather Industries Development Corporation of Maharashtra (LIDCOM) gives cash subsidies to the artisans. However, this has become a failure as once the artisans get the cash they become very relaxed and this affects their work. This also leads to social evils such as drinks, beating, etc.

Name of the Stake Holders: Mr. Milind Pathak, Resident Deputy Collector


Basic Infrastructure: Parking is a major problem faced in Kolhapur. Also, traffic management is poor. There is a need to have a proper traffic control. More traffic signals need to be set up.

Also, the city faces floods every year. There needs to be a disaster management system in place. Also, the exiting nallahs- Jayanthi and Dudhalli need to be cleaned as they overflow especially during the rainy season.

Economy: For sustainable economic development, the development of the IT sector is necessary. This will help in providing employment opportunities and stop migration of the citizens. In order to promote the IT sector, KMC will have to take certain policy initiatives. The cooperative sugar factories in Kolhapur are becoming sick mainly due to mismanagement. There needs to be a fair and transparent process of bidding. Also, every year a large amoint of the sugarcane cop gets spoilt because of the floods and the land remaining under water. There needs to be research done as to how the sugarcane life can increase even when in water.

Also, citizens’ participation in Kolhapur is very low, this needs to be increased. There is a need to privatisation of services. This will improve the quality of the service. There is a need to bring professionalism in the functioning of KMC. The number of meetings which are held can be reduced. IT can be utilised for more efficient techniques, for example, video conferenceing.



20 ANNEXURE H: PROJECTS PROPOSED UNDER UIDSSMT SCHEME

Component Total Cost (Rs. Crores)

Source Augmentation Treatment Capacity Augmentation Transmission mains / Pumping machinery Ground level storage capacity augmentation Elevated level storage capacity augmentation

Wat

er S

uppl

y

Distribution network augmentation

72.85

Sewage Treatment Plant Pumping stations, Rising Mains Internal Sewer Lines Se

wer

age

Cleaning equipment and other works

173.22

Construction and upgradation of roads Construction of toll nakas Construction of Underpass Construction of ROB Utility Shifting

114.00

Roa

ds (I

RD

P)

Development of outer ring road 102.00Development of truck terminus

Truc

k Te

rmin

us

Additional infrastructure such as workshops, lighting, offices, etc. 8.45

Bus

Te

rmin

us

Additional facilities such as hotel, offices, gym, conference hall,etc. 15.78

Her

itage

D

evel

opm

ent

Preservation, development and beautification of Mahalaxmi temple 1.04

Park

ing

Development of 4 parking areas 5.01

Total 492.35



21 ANNEXURE I: BUS TERMINUS DETAILS

A) S T Stand Area: It is located at the junction of major roads approaching the S.T. stand area. The area experiences heavy traffic, contributed to by buses, cars, and two-wheelers. Many lodges and hotels surround this site. But visitors and tourists have no place to park their cars. The site is surrounded by a vast commercial area, which attracts people on business and commercial grounds. There are many shops and big commercial complexes, and walls surrounding this area. With the increasing number of visitors and corresponding increase in parking requirements, the available parking space is turning out to be insufficient. There is an acute need for multi-layered parking facilities.

B) Station Road Area: This parking area is located at the core of the commercial zone, near the railway station. It is an area that witnesses heavy traffic congestion. People arriving here for commercial purposes have difficulty in parking their vehicles as the parking place is insufficient. Today, the parking space can house 15 cars only. Hence, there is a strong need for mechanized multi-layer parking. The proposal made for mechanized multi-player parking enables the facility of parking 34 cars in the same available space.

C) Shivaji Chowk Area : It is situated at the junction of the two major roads, the Bhausinghji road and the Shivaji road. Shivaji Market is a place of commercial importance and so are the areas surrounding this building. The traffic flow is growing heavier day by day. The sub-roads meeting this place are of the gaothan type, (existing 4.5 m) with no scope for widening or changing the existing road patterns. Hence, to meet the parking requirements of visitors on this route and to create a convenient parking place, it is necessary to provide a multi-layered parking facility. The proposal facilitates the accommodation of 44 cars at this site.

D) Mahalaxmi Temple Area: It is located at the very core of the Gaothan zone of the city, near the famous pilgrim centre of Maharashtra, i.e., Mahalaxmi temple. The major traffic entering this area terminates near the temple. Approx. 300 four-wheelers approach this area to access the temple. This is a prime area and hence there is a need to smoothen the traffic flow in this area. The available car parking facility is proving to be insufficient, compared to the increasing visitors in this area.

E) Kapilteertha Market Area: The proposed parking site is located adjacent to the Kapilteertha Market. The site is currently used to park four- wheelers only. There is no proper parking space for the people who approach the Kapilteertha Market and the Mahalaxmi Temple. Visitors to this area find it difficult to locate their vehicles for parking as the roads around are clogged with street vendors. The major shopping lanes are located around this place. The available parking space can accommodate 25 cars presently.



22 ANNEXURE J: POSSIBLE OPTIONS FOR PPP

Building O&M as a part of the construction contract: This would be a typical Design Built and Operate (DBO) contractual arrangement, and would involve;

Developing the contractual structure & contract documents for the project Designing developer selection process and evaluation criteria

The DBO method of project delivery offers a practical solution, when, a) public funding is possible, b) project risks make it unsuitable for implementation under a traditional private investment framework (BOT or a Concession type) and c) all possible efficiencies of PPP can be brought in the form of EPC and O&M contracts. KMC needs to look at the warranty period, in which the operator would train and handhold the staff.

The main issues for concern that will need to be addressed by KMC in DBO projects, is the high cost of bidding and the extent of design work required, as these may prove to be deterrents to wider participation and, thus, may serve to offset the benefits of the DBO approach.

Providing incentives for billing efficiency etc. on a sharing basis: KMC should implement automated meter reading systems (handheld devices) with computerisation for all water billing. The installation of flow meter for each ESR to match the quantity of water supplied and billed would prove them with the amount of losses during this activity.

For 100% cost recovery, KMC should convert all the non-metered connections/PSPs to metered connections. It should also create kiosks for collection (for all payments to the corporation including water charges).

KMC needs to implement a mechanism for having staggered water charges. This would essentially mean paying minimum tariff up to a certain quantity. The tariff would be increased exponentially for the quantity used beyond this. This would ensure and justify the price that one pays. This will also serve as a key for controlling the usage of water.

Outsourcing pumping, transmission and distribution activities: KMC plans to undertake projects of around Rs. 72 crores, which mainly includes augmentation and improving the water supply network The bigger challenge for KMC is to maintain these assets once created. KMC therefore needs to explore the outsourcing some of these activities, such as, pumping, transmission, distribution etc, either to one operator or multiple operators.

Towards achieving 24x7 water supply: KMC needs to carry out and implement a water and energy audit including a leak detection study. It will ensure reduction in raw water transportation losses and better water management. KMC also needs to take a step towards augmentation of water source and encouraging water reuse.



23 ANNEXURE K: E GOVERNANCE AND ERP

Introduction

Last decade has witnessed special focus on good governance. This is particularly evident among cities and towns, which are experiencing a rapid pace of urbanization along with increasing mismatch between demand and supply of municipal services. The increasing complexity of facing local government has prompted many Urban Local Bodies in India to discover creative and innovative solutions with varying degrees of success. The most important development in this area has been the increasing use of information technology for municipal governance. Traditionally municipal governance has been based on manual platform, being paper and labour intensive. However, with the increasing demand on the municipal administration, the current way of functioning is turning out to be grossly inadequate. Information technology increases the efficiency and the spread of the existing processes, thereby enhancing the capacity of the administration manifold.

Current system

The traditional system has the following features

1. Information in manual records

a. Retrieval and analysis is very difficult

b. Systematic data base not available

c. Generation of useful management reports are time consuming and difficult

d. Controlling the leakage of information is difficult

2. Longer service fulfilment duration and delays in approvals

a. Complicated steps

b. Large number of levels

c. Frequent loss of files

3. Cumbersome process in tax calculations and reconciliation

a. Manual calculation and reconciliation

b. Validation and review is very difficult

4. Inefficient mechanism to track citizen grievances

a. No higher level tracking of grievances

b. Redressal at the discretion of operating level officials

5. Lack of transparency in service fulfillment

a. Real time information not available

b. Fixing accountability is not possible



Objectives of E-Governance System

Based on the limitations of the traditional and existing processes, the users of the system will desire the following incremental benefits from the e-governance system.

1. Improving the quality of service to the citizens

a. Facilitation of citizens with easy and quick access to department information and services

b. Infusion of transparency in providing the services to citizens

2. Efficiency in administration

a. Facilitation of quicker processing of the citizen service requests

b. Facilitation of easy maintenance of citizen’s records

c. Making citizen tax and other critical records tamper proof

d. Efficient approval and processing of files

e. Simplified processes of assessment

3. Information management

a. Real time capture of information

b. Facilitation of analysis and review

c. Real time exception reporting

d. Preventing loss and leakage of information

4. Management Information System

a. Generation of customised reports

b. Clear accountability

Scope of an E-Governance System

An organisation wide municipal e-governance system has the following components

A. Administrative system

This part of system facilitates the normal administrative processes of the municipal corporation. The objective of this component is to reduce the time required and steps involved for the normal operating decisions of departments of the corporation, while capturing the data related to tax collection, service delivery and citizen records in real time.

B. Management Information System

This part of the system facilitates the decisions taken at higher levels of the departments by supplying the decision maker with relevant information at the relevant time. This component allows the user to define the information required to facilitate the decision.

C. Citizen Interface

This part of the system creates linkages between the corporation and the citizens to provide them with the information that affects them.



The components are schematically shown below:

Implementing E-Governance System

The E Governance system implementation process, involves the following entities: -

1. Municipal Administration

The system is defined based on the mapping of the municipal administration processes and decision flows. The commitment of the municipal administration is the most important pre- requisite for the e governance system.

2. System consultants

Since the municipal body would not have the knowledge base to map the processes against the system requirements, therefore a consultant is appointed for process mapping and subsequent system design.

3. Employees

The process mapping is done based on the inputs given by the employees to the system consultant. Moreover the system has to be designed as per the capacity and the need of the actual users of the system, the employees.

4. Citizens

The purpose of the e-governance system is to improve the activities of the municipal corporation with a view of increasing the quality of the service delivered to the citizens of the corporation.

Municipal E-governance system

Administrative System Management Information System

Property tax Approvals and licenses Municipal Services

Assessment

Collection

Records

Issuance

Records

Water Supply

Sewage

SWM

Citizen Interface

Complaints

Notices

Disclosures

Decision support

Exception reporting

Controlling



The implementation of the e governance system follows the basic structure as indicated below:

Process Map

People involvedRoles, responsibilities, hierarchy, powers

PurposeFunctions, activities

Process flowInput, output Information flow Process

Reengineering

DirectionUpwards/ downwards/

one to many/ many to one

ProfileContents, format

SimplifyRemove redundancy,redefine process flow

EfficiencySpeed, cost reduction

System Requirement

DatabaseDatabase design, structure,

fields, codes

infrastructureNetwork, hardware, website

Feedback

Pilot runIntegrity check, redundancy check

User reviewUser satisfaction, comments

Roll out

TrainingUsers, managers

AwarenessCitizen awareness campaign

Post roll out reviewCourse corrections,

maintenance



24 ANNEXURE L: ENTERPRISE RESOURCE PLANNING (ERP)

It is defined as an information system that integrates all related applications for an entire enterprise. It attempts to integrate all departments and functions across an organisation onto a single computer system that can serve all those different departments' particular needs. Each of these departments and functions usually has its own system optimized for the unique ways that the department works. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other.

A Municipal corporation has several functional and administrative departments. The common thread between all of the functions is the citizen, whom the corporation is mandated to serve. Most of the functional departments like water supply, sanitation, town planning, birth and death registration, licenses and permits etc have a interface with the citizens and they capture the citizen data relevant to their functioning.

Typically the data captured by the departments are not cohesive and integrated with each other leading to data redundancy. In such a scenario ERP system can be a useful efficiency enhancement tool.

E governance as it is understood presently focuses on two aspects-

• Information dissemination to citizens

• Information for supporting the decisions of administrators

Moreover E-Governance has a micro level systems approach, for example a property tax system whereby the GIS inputs are used to assess the property tax and receipts are accounted in real time. However the present E governance approach will not link the property tax information to water consumption data to number of members in the household to occupation of the members (for example to find out whether the family is using unreasonably high amount of household water, which linked to the fact that most of the members of the family are employed in the family restaurant, may mean that they are using the household water supply for commercial use)

ERP will go beyond the mandate of an e governance system and link all the functions of the corporation, whether functional or administrative, whether citizen interfaced or not.

TYPICAL ERP MODULES

1. Financial Accounting: It is the computerized 'book of records'. It is designed for managing general ledgers, accounts payable, fixed assets and external reporting. It is the integration point that most system components relate in one way or another.

2. Controlling: It manages the flow of costs and revenues. It facilitates an organization's internal planning, management and decision making process. It is tightly integrated with other system components. It collects transactions from the other modules, using related data for internal accounting, reporting and management of funds.

3. Asset Management

It tracks, values, depreciates and also records purchases and sales of a company's assets.

4. Project Systems

It is used for grants, contracts and plant fund functioning. Project Systems module helps with the planning, managing, controlling and figuring the costs of research and development.

5. Plant Maintenance: It maintains the company's equipment, labour, material and work time.

6. Human Resources: This is an integrated system that supports planning and administration of personnel activities; everything from hiring to separation or retirement. Employee records, payroll, benefits and time recording are all handled in Human Resources module.



7. Materials Management: It supports the procurement function occurring in day-to-day business operations. It underpins the supply chain, processing purchase orders and goods receipts.

8. Quality Management: It aims to improve the quality of the company's goods. Planning, execution, inspections and certificates are examples of activities processed in QM.

9. Production Planning: It manages your company's production process, including capacity planning, master production planning, material requirements planning and the study of shop floor.

10. Sales Distribution: It deals with the whole process from production to delivery, including sale orders, pricing, picking and other warehouse processes such as packing and shipping.

11. Cross Applications: It lies on top of the individual modules and manages the workflow, business information warehouse, office and workplace, industry solutions and new dimension products.

Based on the above, the possible modules in ERP system for a municipal corporation can be

1. Financial accounting

2. Controlling and budgeting

3. Property tax: Assessment, demand, collections follow up and accounting for these processes

4. Water supply and sanitation: For water supply source management, transmission and distribution management systems, for sanitation collection, transmission, treatment and disposal

5. Establishment and Human Resources: General administration and human resource functions

6. Health and social activities: Managing dispensaries, programmes and schemes

7. Town planning: Development activities, permits, infrastructure development

8. Licences and Permits: Managing the issue, enforcement and termination of various licenses and permits

9. Property (asset management): Managing the maintenance and receipts from the municipal property

10. Project Management: Managing the projects of the municipal corporation

IMPLEMENTATION OF ERP IN AN ORGANISATION

Because of their wide scope of application within a business, ERP software systems are typically complex and usually impose significant changes on staff work practices. Implementing ERP software is typically not an "in-house" skill, so even smaller projects are more cost effective if specialist ERP implementation consultants are employed. The length of time to implement an ERP system depends on the size of the business, the scope of the change and willingness of the customer to take ownership for the project. A small project (e.g., a company of less than 100 staff) may be planned and delivered within 3 months; however, a large, multi-site or multi-country implementation may take years.

The most important aspect of the implementation of ERP in an organisation is that all the levels of the organisation take ownership of the project.

To implement ERP, organisation often hires the services of an ERP vendor or of third party consultants. These entities typically provide services for consulting, customisation and support

1. Consulting: Consulting for a large ERP project involves three levels: systems architecture, business process consulting (primarily re-engineering) and technical consulting (primarily programming and tool configuration activity). A systems architect designs the overall dataflow for the enterprise including the future dataflow plan. A business consultant studies an organization's current business processes and matches them to the corresponding processes in the ERP system, thus 'configuring' the ERP system to the organization's needs. Technical consulting often involves programming. Most ERP vendors allow modification of their software to suit the business needs of their customer.

For most mid-sized organisations, the cost of the implementation will range from around the list price of the ERP user licenses to up to twice this amount (depending on the level of customization required). Large organisations, and especially those with multiple sites or countries, will often spend considerably more on the implementation than the cost of the user licenses -- three to five times more is not uncommon for a multi-site implementation.



2. Customisation: Customization is the process of extending or changing how the system works by writing new user interfaces and underlying application code. Such customisations typically reflect local work practices that are not currently in the core routines of the ERP system software.

Customizing an ERP package can be very expensive and complicated, because many ERP packages are not designed to support customization, so most businesses implement the best practices embedded in the acquired ERP system. Some ERP packages are very generic in their reports and inquiries, such that customization is expected in every implementation. It is important to recognize that for these packages it often makes sense to buy third party plug-ins that interface well with your ERP software rather than reinventing the wheel.

3. Support: Once the system has been implemented, the consulting company will typically enter into a Support Agreement to assist the staff to keep the ERP software running in an optimal way.

IMPLEMENTATION OF ERP IN KOLHAPUR MUNICIPAL CORPORATION

Challenges

1. The popular ERP packages are designed for commercial organisations

2. The ERP packages that are available in the market have limited customisation options

3. The ERP packages that are available in the market are very expensive

4. Re-engineering of business processes as required by the implementation of the ERP package might not be possible

5. The ERP system is susceptible to the weakest link; the system is dependent on the individual department’s efficiency in using the system.

6. Resistance in sharing sensitive information between departments can be a problem in system operation

7. The system will be dependent on the quality of data that is being inputted in the system

Imperatives :

A. For Kolhapur Municipal Corporation to implement a ERP system it should have certain minimum level of preparedness already in place. These might include: -

1. Official documentation of standard accepted practices and procedures for every department in the corporation.

2. Documentation of all information flows that take place in all the departments of the corporation.

3. Key performance measures for every strategic unit within the corporation.

4. A project team including representatives from all the departments

B. Comprehensive cost benefit analysis of replacing the existing system with an integrated database and linked MIS or with a full fledged ERP system

C. The corporation would need to carry out a technical and financial feasibility of alternative modes of getting ERP implemented

1. Buying a standard ERP package and customize it to the requirements of the corporation

2. Partnering with a software developer company and evolve a ERP of its own

3. Buying standard software components from vendors and integrating them in house

D. The corporation would essentially need to have transition plans for the following

1. Employees- training, grievance redressal, change management

2. Citizen interface

3. Parallel runs of the legacy system and the new system



CRISIL Infrastructure Advisory has taken due care and caution in compilation of data for this Report. The analysis of various factors presented in this Report is based, either on publicly available information/information available from the Kolhapur Municipal Corporation (KMC) or CRISIL Infrastructure Advisory’s discussions with the different institutions/stakeholders and KMC’s consultants in this regard. For completion of the report, CRISIL Infrastructure Advisory has also obtained information from sources, which it considers reliable.

CRISIL does not guarantee the accuracy, adequacy or completeness of any information contained in this Report and is not responsible for any errors or omissions, or for the results obtained from the use of such information. This Report should be used in its entirety only and shall not be reproduced in any form without prior permission from KMC or CRISIL Infrastructure Advisory.

Neither CRISIL Infrastructure Advisory nor any director, representative or employee of CRISIL accepts any liability for any direct, consequential or perceived loss arising from the use of this Report or its contents. CRISIL specifically states that it has no financial liability whatsoever to KMC or any other user/s of this Report and further states that CRISIL shall not be liable to legal consequences arising contingent to the use of this report or part thereof.

Technical assistance by:

CRISIL Infrastructure Advisory CRISIL Risk and Infrastructure Solutions Limited 961-962, Solitaire Corporate Park Andheri-Ghatkopar Link Road Andheri (East) Mumbai 400 092

+91 22 6644 1801 – 09 Fax: +91 22 6644 1810

For further information please contact:

Kunal Kunar, IAS Commissioner Kolhapur Municipal Corporation Main Building , Shivaji Chowk, C-Ward, Kolhapur - 416 002 Post Box No. 33 Phone (EPABX) - 2540291 to 99, Fax - 0231-2541830

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