Indore WSS Critique

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    Sustainability and Financial Viability of Urban Water Supply and Sanitation in Dryland

    Areas in India - Case Study of Indore CityRahul Banerjee, Dhas Gramin Vikas Kendra, aarohini@yahoo.com, +919425943023

    Contents

    1. Introduction .......................................................................................................................... 11. 1 Background .............................................................................................................................................. 11.2 Rationale of Study .............................................................. ................................................................. ...... 2

    1.3 Research Questions ................................................................................................................. .................. 3

    1.4 The Objectives of the Study ..................................................................................................................... 3

    1.5 Methodology ........................................................................................................ ...................................... 3

    2. Current Status of Research ................................................................................................. 42.1 Reconciling the Brown and Green Agenda ................................................................ ............................. 4

    2.2 Sustainable Cities Programme ............................................................... .................................................. 5

    2.3 Shoring up Urban Local Body Finances ................................................................................................. 6

    2.4 Private Sector Participation ................................................................................................... .................. 9

    2.5 Relevance of Present Study .................................................................................................................... 10

    3. Introduction to Indore ....................................................................................................... 11

    3.1 Demography ............................................................................................................................................ 113.2 History .......................................................... ................................................................... ......................... 12

    3.3 Physical Geography ................................................................................................................................ 13

    3.4 Geohydrology .......................................................................................................................................... 14

    4. Urban Governance in Indore ............................................................................................ 154.1 Indore Municipal Corporation .............................................................................................................. 16

    4.2 Indore Development Authority .............................................................. ................................................ 17

    4.3 Poverty Pocket Governance ................................................................... ................................................ 18

    5. Development Programmes and their Impact .................................................................. 185.1 Poverty Pockets ....................................................................................................................................... 18

    5.2 Water Supply and Sanitation Situation ................................................................................................ 20

    5.3 The Asian Development Bank WSS Plan .......................................................... .................................... 21

    5.4 Assessment of Water Supply services in Indore .......................................................... ......................... 216. Analysis of Finances of Indore Municipal Corporation ................................................. 246.1 Analysis of Total Actual Receipts and Expenditures ........................................................................... 25

    6.2 Analysis of Actual Revenue Income and Expenditure ......................................................................... 26

    6.3 Analysis of Actual Capital Income and Expenditure ........................................................................... 27

    6.4 Shortfall from Budget Estimates of Revenue and Capital Income and Expenditure ..................... 28

    6.5 Categorywise Revenue Receipts ............................................................. ................................................ 29

    6.6 Property Tax analysis ............................................................................................................................. 30

    6.7 Categorywise Revenue Expenditures ................................................................ .................................... 31

    6.8 Water Supply Finances ................................................................ ........................................................... 32

    6.9 Waste Management................................................................................................................................. 33

    6.10 Interest Payments ............................................................. ................................................................. .... 33

    6.11 Categorywise Capital Receipts ............................................................. ................................................ 34

    6.12 Categorywise Capital Expenditures .................................................... ................................................ 356.13 Conclusions of Budget Analysis ........................................................................................................... 36

    7. Review of Water Supply and Sanitation in Indore ......................................................... 377.1 Unit cost of Water Supply ...................................................................................................................... 37

    7.2 Affordability of WSS Services ................................................................ ................................................ 39

    7.3 Critique of Water Supply System .......................................................... ................................................ 40

    7.4 Critique of ADB Plan ................................................................... ........................................................... 42

    7.5 Critique of Sewerage, Stormwater and Solid Waste Management ..................................................... 428. Discussion of Possible Remedial Measures ...................................................................... 43

    9. Conclusions and Recommendations ................................................................................. 47

    References ............................................................................................................................... 50

    Annexure: Indore Municipal Corporation Budget Estimate Data ...................................... i

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    LIST OF ABBREVIATIONS

    1. ADBAsian Development Bank2. AMEAcademy of Mountain Environics3. BSUPBasic Services for the Urban Poor

    4. CAGComptroller and Auditor General of India5. CAGRCompound Annual Growth Rate6. CDMClean Development Mechanism7. CGWACentral Ground Water Authority8. CGWBCentral Ground Water Board9. CPCBCentral Pollution Control Board10.DFIDDepartment for International Development, United Kingdom11.DTCPGoMPDepartment of Town and Country Planning, Government of Madhya Pradesh12.EIRREconomic Internal Rate of Return13.Environment Protection Agency, Government of United States of America14.FIRE-DFinancial Institutions Reform and Expansion (15.FIRRFinancial Internal Rate of Return

    16.GISGeographical Information System17.GoIGovernment of India18.IDAIndore Development Authority19.IFCInternational Finance Corporation20.IHIPIndore Habitat Improvement Project21.IHSDPIntegrated Housing and Slum Development Programme22.ILIInfrastructure Leakage Index23.IMCIndore Municipal Corporation24.JNNURMJawaharlal Nehru National Urban Renewal Mission25.KwHKilowatt Hour26.lpcdlitres per capita per day27.lpmlitres per minute

    28.MCMMillion Cubic Metres29.MGIMckinsey Global Initiative30.MICMayor in Council31.MLDMillion Litres per Day32.MWMega Watt33.NGONon Governmental Organisation34.NIPFPNational Institute of Public Finance and Policy35.NIUANational Institute of Urban Affairs36.NSSONational Sample Survey Organisation37.OBCOther Backward Classes38.O&MOperation and Maintenance39.PPPPublic Private Partnership40.RAYRajiv Awaas Yojana41.SCPSustainable Cities Programme42.SESISlum Environment and Sanitation Initiative43.TERIThe Energy Research Institute44.UNEPUnited Nations Environment Programme45.UNHABITAT United Nations Human Settlements Programme46.USAIDUnited States Agency for International Development47.VAMBAYValmiki Ambedkar Awaas Yojana48.WDRWorld Development Report49.WSSWater Supply and Sanitation50.WSUDWater Sensitive Urban Design

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    1

    Sustainability and Financial Viability of Urban Water Supply and Sanitation

    in Dryland Areas in the Context of the Current Political Economy and

    Equity Questions - Case Study of Indore City1. Introduction

    1. 1 Background

    The turn o