DEOGHAR MUNICIPAL CORPORATION UNDER …...Deoghar Municipal Corporation Page 7 Key Indicators –...

Deoghar Municipal Corporation

DEOGHAR MUNICIPAL

CORPORATION

UNDER

ATAL MISSION FOR

REJUVENATION AND URBAN

TRANSFORMATION (AMRUT)


Contents

1. Disclaimer……………………………………………………………………….…….4

2. AMRUT…………………………………………………………………………….……5

3. Deoghar Municipal Corporation…….………………………………...……….…..6

4. Deoghar City Profile……..………………………………………………….………..6

5. Key Indicators…………....................………………………..………………………7

6. Deoghar District Profile …………………………………………………..…………8

7. Executive Summary………………………………………………………………..…9

8. Organization Structure and Legal Framework

a. Administrative Setup ……………………………………………..……….12

b. Functional Domain ………………………………………….…..……...….13

c. Taxing Power ……………………………………………………….…..…...13

d. Borrowing Powers………………………………………………………..…14

9. Demography and Economic Base

a. Demography………………………………………………………..….........15

b. Economic Base……………………………………………………….…….15

10. Delivery of Civic Services

a. Water Supply……………………………………………………..……..…..16

b. Sewerage …………………………………………………………….....…..18

c. Storm Water Drainage ………………………………..………….……….21

d. Space Availability .……………………………………………….……….22

e. Urban Transport ………………………………………….……..…..…....22

f. Street Light …………………………………………………………...…...23

g. Solid Waste Management ………………………………….………..…..24


11. Financial Analysis

a. Revenues Receipts ………………………………..………….………...…25

b. Revenue Expenditure ………………………………………………….….26

c. Revenue Surplus/Deficit ……………………………………………….....27

12. Annexure I - Financials ……………………………………….…………..…..……29

13. Annexure II - Projections ………………………………………………...………..30

14. Annexure III – Key Ratios ………………………………….………………….……31

15. Annexure IV- State Finances – Jharkhand……………………………………….32

16. Annexure V - Service Level Benchmarks…………………………………………36

17. Annexure VI – AMRUT – Reforms & Its Status……………………………………37


Disclaimer

This report is intended for the use of Deoghar Municipal Corporation and Government of Jharkhand and is subject to the scope of work and purpose defined therein. We, by means of this report are not rendering any professional advice or services to any third party.

For purposes of the exercise, we have used information obtained from primary interactions and secondary information sources, which we believe to be reliable and our assessment is dependent on such information being complete and accurate in all material respects. We do not accept any responsibility or liability for any losses occasioned to any party as a result of our reliance on such information. BWR has relied on the audited financials up to FY16, SLIP data provided by municipality and other information/clarifications provided by the Urban local Body

Our procedures did not constitute an audit. We make no representation or warranty as to the accuracy or completeness of the information used within this assessment, including any estimates, and shall have no liability for any representations (expressed or implied) contained in, or for any omission from, this assessment.


Atal Mission of Rejuvenation & Urban Transformation (AMRUT)

Atal Mission of Rejuvenation & Urban Transformation (AMRUT) was launched by the Ministry of Urban Development, Govt. Of India on 25th June 2015 for the next 5 years, i.e. up to March 2020. Five hundred cities with a population greater than one lakh have been taken up under the Mission. Under the mission MoUD, GOI will provide 50% of the project funds while State & ULB will share the remaining 50%. Earlier, MoUD used to give project- by- project sanctions under JNNURM/UIDSSMT and other schemes which have been replaced by approval of the State Annual Action Plan once a year by the MoUD and the State has to decide on the project sanctions and approvals at their end.

Thrust areas under the mission: Water Supply Sewerage facilities and Septage management Strom water drains to reduce flooding Urban Transport –pedestrian, non-motorized and public transport facilities, parking

space Creation and upgradation of green spaces, parks and recreation centers, especially

for children. In the Service Level Improvement Plan (SLIP) for Deoghar, sector-wise projects identified and the estimated costs are: water supply- 43.nos./Rs. 382.00 Cr.; sewerage/septage- 4 nos./ Rs. 146.59 Cr.; storm water drainage- 7 nos/ Rs. 421.75 Cr.; urban transport – 8 nos. / Rs. 43.00 Cr.; and parks – 29 nos./ Rs. 6.81 Cr. In total 91 nos of projects have been identified with a total estimated cost of Rs. 1000.15 Crore.


MUNICIPAL CORPORATION/ MUNICIPALITY

Deoghar Municipal Corporation (DMC) was established on 26 June 2010 by merging Jasidih notified area committee and Deoghar municipality. Deoghar is the Third Municipal Corporation of Jharkhand and DMC is best known for its services to the citizens of Deoghar. The jurisdiction of Deoghar Municipal Corporation has a total area of 119.70 Sq. km and the numbers of wards are 36. The Municipal had a population of 2,03,123 persons as per 2011 census.

Deoghar is one of the oldest cities in Jharkhand, which is situated on the banks of the River Ajay is the home of Baba Baidyanath temple. Deoghar is the district headquarter and centre for district level administrative activities. Regional and historical significance of Deoghar has been constantly & continuously influencing the economic profile of the city. Since ancient times, Deoghar being the capital city has been flourishing rich in trade and commerce activities and has donned the image of a regional centre of commerce. Deoghar is a major junction along the Chennai-Kanniyakumari railway route. National Highways NH-7, NH-45B, NH-208 and NH-49 pass through the city.The nearest railway station is Baidyanath Dham (Deoghar) which is a terminal station of a 8 km branch line originating at Jasidih Jn. on the Howrah-Delhi main line. Deoghar is approachable from Kolkata 373 km, Giridih 60 km, Patna 281 km, Dumka 67 km, Madhupur 30km, Ranchi 250 km Simultala 53 km and other places. Regular buses are available from surrounding towns.

0

200000

400000

2001 2011

112525

203123

DMC Population Trend

DMC Population Trend


Key Indicators – DMC

Area under municipal Corporation. 119.70

Wards 36

Population as per census 2011. 203123

Literacy Rate 66.31%

Sex Ratio 921

Number of Households 36768

Road length ( km) 180

Street lights 3302

Household level coverage of direct water supply connection 28.41%

Per capita quantum of water supply. 69.33 LPCD

Solid waste collected NIL

Solid waste generated 29.82 MLD

Solid waste collection efficiency (%). NIL

Coverage of storm water drainage network. NIL

Open areas - Park, Hall, Playground, Gardens. 697458 sq. m

Total number of Markets 5 Source: SLIP, SAAP & CDP of DMC

District Profile - Deoghar

The district contains several clusters of rocky hills covered with forest, but series of long ridges with intervening depressions. Most of the rolling uplands are cultivated by highland crops. The average elevation of the district is 247 m above mean sea level, However hill ranges like Phuljari (750 m), Teror (670 m) and Degaria (575 m) break the monotony of the landscape. The general slope of the district is from northwest to southeast. Geologically the district is mainly covered by chhotanagpur granite gneiss of Archean age with patches of alluvium, sandstone and shale of Gondawana formations. Important rivers flowing in the district are the Ajay, the Paltro etc. These rivers gather a large number of tributaries which form the land scape full of Tanrs and Dons. The Deoghar district ranks 8th with reference to the share in State GSDP having 4% contribution to the total State GSDP. Deoghar’s economy is predominantly informal trade based. The town is engulfed by huge chunk of informal activity due to the presence of temple. The major economic activities of the region are trade & commerce, tourism related activities, to some extent industrial activities and informal activities like labor. The city is a tourist destination in the country. The total floating population of Deoghar is estimated at 20,000 visitors per day and during Savan festival it increases about 1.5 lakhs. The inflow of foreign tourists is more during the period from November to March, while the influx of domestic visitors stretches from April to June.The Deoghar district has some iron and building construction based industries.


EXECUTIVE SUMMARY

Rating

Rating Rating Type Outlook

BWR BB- Issuer Stable

Key Rating Drivers

Infrastructure and Connectivity - Deoghar is well connected by railways and roadways to all major cities of the state and the country.

Economy: The Deoghar district ranks 8th with reference to the share in State GSDP having 4% contribution to the total State GSDP. The town is engulfed by huge chunk of informal activity due to the presence of temple. The city has good road and rail accessibility in the Eastern region and hence gained prominence over the years. Presently, the economy is solely dependent on tourism business.

Water supply: Deoghar Corporation meets its water demand through surface and ground water sources. The main water sources for Deoghar are Ajay river and Dadba River. The present house service connection coverage w.r.t the households covered is 31%.

Sewerage - Presently there is no underground sewer system in Deoghar city.

Solid Waste management - The Deoghar Corporation generates a maximum of 85 MT of waste per day.

E – Governance – The municipality has enabled viewing information as well as payment of taxes and charges online in most of the areas as stipulated in the 13 FC.

Revenue - Revenue receipts (RR) of DMC is mainly contributed by Grants, Contribution and Subsidies, accounting more than 53.74%.

Expenditure - Revenue Expenditure remained fluctuating during FY14 to FY16. However in FY16 Revenue Expenditure increased from Rs11.11Crs in FY14 to Rs 22.49 Crs in FY16. The major expenditure components under Revenue expenditure are Establishment Expenditure and Expenditure due to Grants, Contribution and Subsidiaries

Surplus/Deficit- Deoghar Municipal Corporation revenue deficit fluctuated during FY14-FY16. Municipality reported increased revenue deficit of Rs.2.87 crs during FY16 against revenue deficit of Rs 0.74 Crs in FY14.


ORGANIZATION STRUCTURE & LEGAL FRAMEWORK

Administrative Setup Elected Body The Municipality is supervised by an elected body, the Council, consisting of ward councilors who are elected for a term of five years. The town is divided into wards according to its population, and representatives are elected from each ward. There are 35 wards in Deoghar Municipal Corporation.

Administrative body The provisions of the Jharkand Municipal Corporation Act 2011 define the functions of DMC from 2011. Deoghar Municipal Corporation (DMC) was established on 26 June 2010 by merging Jasidih notified area committee and deoghar municipality. It is the Third Municipal Corporation of Jharkhand. It is run by the following: 1. The Corporation 2. Mayor 3. The Municipal Commissioner Deoghar Municipal Corporation came into force on 26th June 2010 with an elected Mayor, Municipal Commissioner and 36 Corporators following enactment of Jharkhand Municipal Act, 2011. There are nine Standing Committees to advice the Mayor on various matters. Representatives of all 36 wards of the city are elected to the general body, which is the apex body of DMC. The general body elects the Mayor and his Deputy. In order to act upon the decisions of the general body, various administrative wings function under a Municipal Commissioner. The total number of employees of corporation at present is approximately 2,700. The administration is carried out by a team of officers appointed by the State Government. The Chief Executive Officer of the corporation is assisted by three additional executive Officers, one health Officer, one project officer and one municipal engineer, each of them having a chain of support staff as per requirements. Day to day municipal governance is

Name Designation Education Since Place

Rita Raj Khaware Mayor - - Deoghar

Nitu Devi Deputy Mayor - - Deoghar


being carried out in close co-operation and consultation with the Mayor, Deputy Mayor and ward councilors of the elected council.

Functional Domains Managed by the Municipal Corporation The main objective of the Deoghar Municipal Corporation is to achieve organic and sustainable development through improved governance, adequate service provisions through quality delivery mechanisms and efficient urban management. The following are the routine functions of the Corporation.

Conservancy Services and Solid Waste Management.

Slaughter Houses.

Birth & Death Registration.

Prevention of Food Adulteration.

Preventive Health Care.

Construction and Maintenance of Roads & Drains.

Storm & Waste Water Drainage.

Parks.

Plantations.

Slum Improvement & Community Management.

Street Lighting & Removal of Encroachments.

Development & Maintenance of Burial Grounds and Crematoriums.

The Engineering, Health and Slum Development Wings of the Corporation discharge the above functions.

Municipal Revenues The municipal corporation earns its revenues from the following services: - Taxes levied by the municipality - User charges levied for provision of water and sewerage services - Grants - Fees and fines levied for performance of regulatory and other statutory functions.

As per sec 152(1) of Jharkhand Municipal Act 2011 the Municipalities/NACs are empowered to impose following taxes and fees within the municipality areas.


Holding Tax or property tax on lands and buildings.

Tax on vacant land.

Surcharge on transfer of lands and buildings.

Tax on deficit in parking spaces in any non-residential building.

Water Tax

Fire Tax.

Latrine Tax

Tax on advertisement, other than advertisements published in the newspapers.

Surcharge on entertainment tax

Surcharge on electricity consumption within the municipal area

Tax on congregations

Tax on pilgrims and tourists

Toll on roads, bridges, ferries, navigable channels and heavy trucks and buses

Tax on trade and profession.

Any other tax which the municipality is empowered to impose under any law for the time being in force.

Borrowing Powers As per sec 133, Municipality can raise loans by passing a resolution at a meeting of the Municipality, a loan within the limits set by the comprehensive debt limitation policy framed under section 132 by the issue of debentures or otherwise, on the security of the property tax or of all or any of the other taxes, surcharges, cesses and fees and dues under this Act or of both the property tax or all or any of the other taxes, surcharges, cesses and fees and dues under this Act, or on the guarantee by the State Government, of any sum of money which may be required for the purpose. Utilization of borrowings As per section 150 of Jharkhand Municipal Act 2011, funds generated from bonds/loans can be used for the development of urban infrastructure such as water supply, sewerage, drainage, solid waste management, markets, roads, bridges and urban transport, for reforming and improving the efficiency of existing systems and for the repayment of loans raised through an earlier issue of Municipal bonds or otherwise. Repayment Any loan raised by the Municipality under Section 133 will be repaid within the tenure approved under that section and such repayments should be made either from a sinking fund established under section 136 in respect of such loan or partly from such sinking fund and to the extent which such Sinking fund falls short of the sum required for the repayment of such loan, partly from the loan raised for the purpose under section 133, as may be approved by the State Government.


DEMOGRAPHY & ECONOMY

Demography Population As per the 2011 census, the population of Deoghar Municipal Corporation is 2,03,123 . The decadal growth rate of the city is @ 80.51%. The average floating population increases by 1.5 lakhs during festival time and is around 20,000 otherwise. The present SC and ST population contributes to 13.6% of the total population in the city. Sex Ratio As per 2011, census of the average sex ratio (female population per 1,000 male) of the city has been steady increase from last decade with 917 in 2001 to 921 in 2011. However, it is higher than the district average sex ratio of 911. Literacy rate The literacy rate in Deoghar has increased from an average literacy rate of 66.31% in 2001 to 74.33% in 2011. The literacy rate is higher than the average district literacy rate of 64.9% Economy – Deoghar The major economic activities of the region are trade & commerce, tourism related activities and to some extent industrial activities. The city has good road and rail accessibility in the Eastern region and hence gained prominence over the years. There is no strong industrial establishment in the city. Tourism and its related service sectors form an important economic activity in the city. Being one of the important tourist destinations of the country, related service sectors such as hotels, travel etc. also forms part of the employment opportunities available in Deoghar city.


DELIVERY OF CIVIC SERVICES

The Municipality/Municipal Corporation is responsible for providing civic services and basic amenities to the citizens. The current arrangement and metrics for the following service lines along with the proposed improvements are discussed below:

Water Supply

Sewerage

Storm Water Drainage

Parks

Roads

Street Lighting

Solid Waste Management WATER SUPPLY As per census of India 2011, the population of Deoghar Municipal Corporation (DMC) is 2,03,123 and total number of households are 36,768. Out of the 36,768 households, 28.41% have access to direct piped supply of water. Deoghar Corporation meets its water demand through surface and ground water sources. The main water sources for Deoghar are Ajay River and Dadba River. Ajay river has around 40 boring wells (working condition) and Dadba river has 10 intake well (5 old+5 new) and 10 HYDT. The water from Ajay River directly goes to supply line without treatment, and water from Dadba River transported to Nandan Pahar for treatment and the water is then supplied through the distribution system. Considering the increasing population and additional demand of water during the shravan season, additional water supply schemes have been implemented under Deoghar Urban Water Supply Schemes with head works at Darwa, Nawadih, Basudih, rampur and Mina Bazar to cater to the residents and tourist inflow. About 9.75 MLD of water is being drawn from W.T.P with staff quarters and 7.5 MLD intake wells cum pump house. There are two ESR pumps located at Mina Bazar with 2 MLD and 0.9 MLD respectively. ESR at Rampur has capacity of 2.7 MLD. 4 GSR water pumps (at 4 locations) at Nandan Pahar and Basuadih of 2 MLD and 1.2 MLD respectively.


Indicators Baseline(2015)

Present Status

MoUD benchmark

Coverage of water supply connections

26.00% 28.41% 100%

Per capita supply of water - 69.33 lpcd 69.33 lpcd 135 lpcd

Extent of metering of water connections

- 3% 100%

Extent of Non-revenue water - 54.47% 20%

Quality of water supplied 100% 100% 100%

Cost recovery in water supply services

- 40% 100%

Efficiency in collection of water supply charges

- 51.35% 90%

Source: SAAP of Jharkhand

Source: SLIP of DMC

The Existing Source of Surface Water at Darhwa River being treated 7 MLD daily. However the Capacity of 18.5 MLD at Darhwa is treated with Chlorine.

Out of the road length of 180 kms, the water supply pipelines are present for 155 kms. Household coverage is deficit by 71.59% as compared to the MoUD benchmark. Although DMC has achieved 69.33 lpcd water supplies to existing consumers,low coverage and the absence of metering cause the NRW to be high at 54.47%.

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Coverage ofwater supplyconnections

Extent ofmetering of

waterconnections

Extent ofNon-revenue

water

Quality ofwater

supplied

Costrecovery in

water supplyservices

Efficiency incollection ofwater supply

charges

28.41%

0%

54.47%

100%

40% 51.35% 53%

25%

70%

100%

40%

50%

100% 100%

20%

100% 100% 90%

Co

verg

ae %

Water Supply Indicators

Deoghar Ranchi MoUD


Organization involved in water supply system in Deoghar Drinking water and Sanitation Department (previously known as Public health engineering department (PHED)) is responsible for providing safe and pure drinking water in the city.

Planning and Design and O&M Drinking water and Sanitation Department

Construction/Implementation JUIDCO

Operations and Maintenance Drinking water and Sanitation Department Source: CDP of DMC.

SEWERAGE As per census of 2011, population of Deoghar Municipal Corporation is 2,03,123 and total number of households are 36,768.There is no underground sewerage network & hence no collection & no treatment. Hence the gap in this service level with regard to benchmarks prescribed by MoUD is 100%. Coverage of latrines is 71% as against the MoUD benchmark of 100%.

Name of ULB Total number of households

Households with sewerage network

Households with septic Tank

Households without septic Tank

Deoghar Municipal

Corporation 36,768 Nil 25,943 10825

Source: Chas Municipal Corporation

At present, there is no systematic and organized method to collect and treat waste from septic tanks. As there is no organized method of collection in many of the cases, the septic tanks overflow either into nearby drains/open fields or disposed in soak pit due to lack of sewerage lines. The septic tank clearance service is provided by DMC on application or public has to clean their septic tank on their own. They dispose the sludge in ditches and after that the ditches are filled up.

Name of the

ULB

Service level Benchmark

SAAP Baseline

FY16 FY17 MoUD Benchmark


Coverage of latrines (Individual or community)

75% 80% 100%

Source: SLIP & SAAP of CMC.


Toilet coverage

Total no of households

Total number of HH without individual or community toilets

within walking distance

Coverage of latrines

36,768 10663 71%

Collection and coverage of sewerage

Total no of households

Total number of HH with Sewerage Network

36,768 Nil

Proposed improvements Under AMRUT, Deoghar Municipal Corporation has proposed projects amounting to Rs.267.85 crs towards construction of Sewerage system in the city. One STP and 5 ISPS has been proposed with a sewerage network of 124.91km. The project will be implemented in 2016-2017 and get completed by the year 2021 under the name of Integrated Sewerage and Drainage Line.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Deoghar Ranchi MoUDBenchmark

75.00% 77.00%

100.00%

Coverage of Latrines (Individual or Community)

Coverage of Latrines (Individualor Community)


Project Name Year of

Implementation Year in which proposed to

be completed Estimated cost

Construction of Sewerage system

2016-17 2020-21 267.85 Cr

Grand Total 267.85 Cr Source: SAAP Jharkhand. Jharkhand Urban Infrastructure Development Company Limited (JUIDCO) will prepare the DPR for the project. Since there is no on-going scheme/ project of sewerage system, city proposes to adopt different options of PPP such as Design-build-Operate-Transfer (DBOT), Design Build Finance Operate and Transfer (DBFOT) for the development of sewer network, treatment and house connection to meet the objective of universal coverage of sewerage system. STORM WATER DRAINAGE

DMC has 119.70 sq. km of the area and storm water drains cover 18% per cent of the Deoghar town.

Name of the

ULB

Service level Benchmark

SAAP Baseline

2014-15 2015-16 MoUD Benchmark


Coverage of storm water drainage network

13% 18% 100%

Source: SLIP of DMC

Source: SLIP of DMC

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Deoghar Ranchi MoUDBenchmark

18.00%

52.00%

100.00%

80.00% 80.00%

0.00%

Coverage of Storm WaterDrainage

Incidence of Sewerage Mixing inDrains


The Deoghar Corporation maintains the roadside storm water drains inside the corporation limits. City’s storm water drain is as per the natural drainage pattern of closest river. The roadside drains are provided either on one or both the sides of the road. The average width of these drains is approximately 0.60 m. The roadside drains collects storm water from various locations as well as sullage water from various areas which is devoid of treatment system. They are further connected to the primary drains leading to Natural water bodies. The city of Deoghar has number of natural water lakes scattered around its jurisdiction. These lakes are an integral part of the existing natural drainage pattern of the city. Proposed improvements Under AMRUT, DMC proposes to invest Rs.44.10 Crs towards augmentation of the storm water drain network and integrated sewerage network which includes construction of storm water drains across the existing roads; construction of pumping stations and sluice gates at regular intervals.

PARKS AND OPEN SPACES Under jurisdiction of the Deoghar Municipal Corporation available open space is 3.43 Sqm per capita against a MoUD benchmark of 10-12 Sqm per capita. There are three parks under the Deoghar Municipal Corporation. Under AMRUT, the municipality proposes to invest an amount of Rs.3.18 Crs to improve the availability of open spaces in the municipal area.

Name of the project Scheme name Cost Year of completion

Park AMRUT 3.18 Cr 2016-17 Source: SLIP of DMC

URBAN TRANSPORT

The present road network within the city comprises of State Highways, Major District roads and the ULB roads. The State Highways and Major District Roads (MDR) are maintained by the State Government under Public Works Department (PWD). Deoghar Municipal Corporation (DMC) maintains the ULB roads within the Corporation limits. The road network in Deoghar is a combination of pucca roads and kuccha roads. The average road width in the city is between 4 to 7 m.


Proposed improvements Under AMRUT, Rs. 3.95 crs fund has been allocated for parking spaces, pedestrian and footpath development.

STREET LIGHTS The Deoghar Corporation is responsible for the provision, operation and maintenance of street lights within the city. All the lighting poles have been designed specifically to match the temple theme of the town. Street light at spacing of 15 meter is installed from Jasidih to Baijnathpur.. The city has a total of 9742 numbers of street lights under various types. Out of the total 17% are CFL/ power saving lights, 4% are Solar lights, 39% are sodium vapor lights, 30% are mercury/Energy lights and high mast lights and 8% LED lights. The lights are being replaced with CFL/power saving lights or LED lights. Around 7% bulbs are already changed and others are in the process of change. Details Street lights

S. No Type of Street lights Numbers

Percentage % 1 Sodium 3800 39.01

2 Energy Lights 3000 30.79 3 CFL 1740 17.86 4 Solar Lights 400 4.11 5 LED 802 8.23

Total 9742 100 Source: CDP of DMC

SOLID WASTE MANAGEMENT (SWM) The Deoghar Corporation generates a maximum of 85 MT of waste per day. The primary source of waste generation in city are the local households, markets and commercial establishments such as hotels, restaurants, shops etc, slaughter houses and waste from Temple. Apart from this there is considerable amount of waste collected through street sweeping and drain cleaning activities. The waste generated at the construction site is also included in the total waste generated in the city per day. The per capita waste generation in the city is 418 gms per day which is quite higher than the norms of 250 gms. This is may be due to the high percentage of floating population in the city which contributes to the total waste generated in the city.


The total quantity of waste collection is 36 MT per day; it means present collection efficiency is 42%. DMC has deployed 329 municipal sanitary workers for collection of waste. The Corporation has a total fleet of 23 vehicles which includes 4 tippers (but only one is in working condition), 16 tractor/ trailers, 1 JCB, and 2 Tricycles. On an average 5-6 trips are made by various SW vehicles carrying 36 MT of waste per day. The collection efficiency is 42% of the waste generated. The Deoghar Corporation has established vehicle depot cum workshop facilities for repair, maintenance and parking of SWM vehicles. One dumping site has been identified in Pachiyari Kothia, Thana no. 242, which has about 10 acres of land area.


FINANCIAL ANALYSIS

Revenue Receipt (RR) Revenue receipts (RR) of Deoghar Municipal Corporation is mainly contributed by Grants, Contribution and Subsidies, accounting for approximately 53.74% of the total receipts in FY16. Revenue from tax contributes to 37.86% of the total RR as compared to 8.40% from other income and Non-tax revenues. Overall for past three financial years, RR has grown with a CAGR of 14.70 % from Rs. 10.37 crs in FY14 to Rs. 13.32 crs in FY15 to Rs.19.61 crs in FY16.

Source: Audited Financial Statement of DMC

Tax Revenues Tax Revenues contribute 37.86% of the Revenue Receipts; Holding Tax is the major tax components for the Deoghar Municipal Corporation.

Holding

Tax (Rs

in Crs)

Demand Collection Collection Efficiency (%)

Arrears Current Total Arrears Current Total Arrears Current Total

2015-16 2.13 0.87 3.00 0.63 0.45 1.08 29.57% 51.72% 36%

Source:DMC

The overall collection efficiency is at 36% and the collection efficiency for the current demand is 51.72%. The demonetization announced by the Central government in October, 2016 has resulted in increase in collection of taxes by the municipal bodies. Details for Chas are given below:

0

10

20

Audited FY14 Audited FY15 Audited FY16

10.37 13.32

19.62

DMC Revenue Receipts in Rs. Cr.

Revenue Receipts


City In November Month Alone Cumulative

2015 (Full Month) 2016, Till

Date Upto 30 Nov

2015 2016, Till date


Rs. 9.37 Lakhs Rs.35.60

Lakhs Rs.

67.33Lakhs Rs. 121.60

Lakhs

Source: Deoghar Municipal Corporation. Non-Tax Revenues Non Tax Revenue contributes 8.40% of total Revenue Receipts. Revenue Expenditure (RE) Revenue Expenditure has increased substantially from Rs 15.97 Crs in 2014-15 to Rs 22.50 Crs in 2015-16. The major expenditure components under Revenue expenditure are Establishment Expenditure, O&M Expenditure, revenue grants, contributions & Subsidies, Depreciation etc. Establishment expenditure is one of the significant components of the revenue expenditure, which accounted for 34.66 % of the total revenue expenditure during 2015-16.


Expenditure incurred under O&M is largely towards repairs and maintenance (R&M) of infrastructure assets and civic amenities like roads, buildings, drainage, parks and gardens, community halls, burial grounds, expenditure incurred towards cleaning and watering of roads, maintenance of electrical installation, vehicle maintenance and purchase of fuel. The municipality is responsible for R&M of water pumps; tube wells etc. for restoration of civic services like water supply and choked drains in cases of damage caused during floods and water logging.

0

10

20

30


11.12

15.97

22.5

Deoghar Municipal Corporation (Rs. Crs)

Deoghar MunicipalCorporation


Administrative expenses comprise primarily of payments of rates and taxes and expenses towards telephone, office, stationery, computers, & other equipment including advertisement. Revenue Surplus/Deficit Deoghar Municipal revenue fluctuated during FY2014-FY2016. Municipality reported revenue deficit of Rs 2.88 Crs during FY2015-16 against revenue surplus of Rs 2.64 Crs in FY 2014-15.


The deficit is mainly due to high depreciation charges. The increase in expenses is mainly due to increase in fixed assets of the Municipal. Conclusion Deoghar Municipal Corporation has huge potential for growth and the city has good linkages with major urban centers by road and rail due to tourist importance. The city is well connected to economic centers like Bokaro steel city, Ranchi and Kolkata. Further the city is an important tourist destination. Every year lakhs of tourists visit the Baba Baidyanath Dham temple. However, the service levels for basic amenities like sewerage and solid waste management needs substantial improvement and investment. Further, the municipal Corporation is almost completely relying on grants and devolutions from the State and Centre for its revenue and capital expenditure. Therefore, efforts need to be made to increase the tax rates and user charges along with measures for improvement of collection efficiencies to decrease this reliance.

0.75

2.64 2.88

0

1

2

3

4


DMC- Revenue Deficit (Rs. Crs)



Annexure I – Deoghar Municipal Corporation - Financials

Particulars FY14 FY15 FY16

Amount (Rs. Crs) Audited Audited Audited

Liabilities

Municipal Fund (General Fund) 30.96 27.85 20.88

Earmarked Funds 0.00 0.00 0.00

Reserves 14.30 33.98 50.71

Total Reserves & Surplus 45.26 61.84 71.59

Grants,Contributions for specific purposes 45.45 58.21 63.45

Total Grants,Contributions for specific purposes 45.45 58.21 63.45

Secured Loans 0.00 3.61 4.16

Unsecured Loans 2.32 0.00 0.00

Total Loans 2.32 3.61 4.16

Current Liabilities and Provisions

Deposit Received 0.41 0.90 1.39

Deposit Works 0.00 0.00 0.00

Other Liabilities 1.02 2.84 2.85

Provisions 0.00 0.00 4.09

Total Current Liabilities and Provisions 1.43 3.74 8.33

Total Liabilities 94.47 127.40 147.53

Assets

Total Fixed Assets 41.97 60.90 70.90

Investments - General Fund 0.00 0.00 0.00

Investments - Other Funds 0.00 0.00 0.00

Total Investments 0.00 0.00 0.00

Stock in Hand 0.00 0.11 0.08

Sundry Debtors (Receivables) 3.25 4.52 7.24

Cash and Bank balance 49.23 61.07 64.70

Loans, Advances and Deposits 0.03 0.80 4.60

Total Current Assets,Loans and Advances 52.50 66.51 76.63

Total Assets 94.47 127.40 147.53

Source: Audited Financial Statements of DMC


Annexure II - Revenue and Expenditure - Deoghar Nagar Nigam

Revenue and Expenditure FY14 FY15 FY16

Particulars Audited Audited Audited

Revenue

Tax Revenue 4.00 5.03 7.43

Assigned Revenues & Compensation 0.00 0.00 0.00

Rental Income from Municipal Properties 0.47 0.08 0.44

Fees & User Charges 0.17 0.09 0.71

sales & hire charges 0.02 1.07 0.26

Revenue Grants, Contribution & Subsidies 5.55 6.91 10.54

Income from Investments 0.00 0.00 0.00

Interest earned 0.12 0.09 0.08

other income 0.04 0.04 0.16

Total Revenue 10.37 13.32 19.62

Expenditure

Establishment Expenses 3.61 5.35 7.18

Administrative expenses 0.87 0.84 1.81

Operation and Maintenance 0.40 0.90 1.13

Interest and finance charges 0.0001 0.00 0.00

Programme expenses 0.01 0.08 0.10

Revenue grants, contributions & subsidies 2.99 3.86 5.90

Provisions & write off 0.00 0.00 0.00

Miscellaneous expenses 0.00 0.00 0.00

Depreciation on fixed assets 3.23 4.93 6.39

Total Expenditure 11.12 15.97 22.50

Surplus/Deficit -0.75 -2.64 -2.88

Cash Accruals 2.49 2.28 3.51 Source: Audited Financial Statements of DMC


Annexure III - Key Ratios - Deoghar Nagar Nigam

Particulars FY14 FY15 FY16

Audited Audited Audited

Income Ratios

Tax Revenue to Total Revenue Income Ratio 38.53 37.79 37.86

Non Tax revenue to Total Revenue Income Ratio 7.94 10.33 8.40

Assigned Revenues & Grants to Total Revenue Income Ratio 58.06 51.88 53.74

Own Income to Total Revenue Income 46.46 48.12 46.26

Expense Ratios

Establishment Expenses to Total Revenue Income Ratio 34.78 40.18 36.58

Operations & Maintenance to Total Revenue Income Ratio 3.86 6.78 5.74

Establishment Expenditure to Total Revenue Expenditure

Ratio 32.45 33.52 31.90

Capital Expenditure to Total Expenditure Ratio 0.00 0.00 0.00

Operating Ratio

Revenue Expenditure to Revenue Income 107.19 119.84 114.68

Debt Servicing Ratio

Debt Payment to Cash Accruals Ratio 0.00 0.00 0.00

Dependency Ratio

Total grant income (both capital and revenue grants) to total

income 58.06 51.88 53.74

Net Income Profitability Ratios

Cash Surplus / Deficit to Total Income Ratio 24.00 17.14 17.88

Other Key Ratio's

Interest / Revenue Income 0.00 0.00 0.00

Fixed Charge = (Establishment + Admin + Int.) / Revenue

Income 43.22 46.49 45.82

Source: Ratios has been calculated as per BWR calculation


Annexure – IV – State Finances (JHARKHAND)

The 28th state of the Indian Union was brought into existence by the Bihar reorganization Act on November 15, 2000 - the birth anniversary of the legendary Bhagwan Birsa Munda.. The capital city of the state is Ranchi while other major cities and industrial centers are Jamshedpur, Dhanbad, Chas/Bokaro, Deoghar, Hazaribagh, etc. Administratively, the State is divided into 24 districts with 38 sub-divisions, 260 blocks and 32620 villages. There are138 towns in the State. Forests form more than 29% of the state landscape which is amongst the highest in India.

The State has a population of 3.29 crs (Census 2011). The urban population is at about 24% of the State population which is lower than India’s urban proportion of 31%. Furthermore, 59% of the total workforce is dependent on agriculture. Since the tribal population constitutes a significant portion of State’s demography, agriculture and forestry are the only source of livelihood for over 70 % of the State’s population. Jharkhand is rich in mineral resources like Uranium, Mica, Bauxite, Granite, Gold, Silver, Graphite, Magnetite, Dolomite, Fireclay, Quartz, Fieldspar, Coal (32% of India), Iron, Copper (25%of India) etc. The State accounts for about 37% of the country’s mineral deposits and is the sole producer of coking coal, uranium and pyrite. Administratively, the State is divided into 24 districts with 35 sub-divisions, 260 blocks and 32615 villages.


Fact Sheet of Jharkhand

Date of formation November 15, 2000

Capital Ranchi

Governor Mr. Draupadi Murmu

Chief Minister Mr. Raghubar Das

Assembly Seats 81

Parliamentary constituency 14

GSDP, 2016 (` lakh crs) 2.26

Major Airport Ranchi

Population, 2011 census (Cr) 3.29

Literacy rate (In %) 67.63%

English speaking population ~27 Lakhs

Length of Roads (KM) NH: 1006, SH: 4662

Area (sq. km.) 79716

Forest Cover 29%

Districts 24

Sub-Divisions 38

Blocks 260

Villages 32620

Towns 138

Local Language Hindi, Santhali, Mundari Source: Different sources and State website. Macro - Economic profile of Jharkhand:

The socio-economic indicators for Jharkhand as per the Census of India, 2011 are given

below. Source: Census, 2011

Jharkhand has a working population of 68, 18,595, out of which 76% are main workers and rest are marginal workers.

Socio Economic Indicators Jharkhand India

Urbanization 24% 31.20%

Per capita income Rs. 46131 Rs. 93231

Population density 414 382

HDI 0.574 0.764

Literacy 66.41% 74.04%

IMR 39 44

MMR 312

Sex ratio 948 943

Unemployment 27.4% 34%


The state’s mines enjoy a unique locational advantage as it is close to both central and eastern India which has large industrial bases. It is also close to the ports of Kolkata, Haldia and Paradip which helps in transportation of minerals for export markets.

JHARKHAND STATE BUDGET: GSDP:Jharkhand's gross state domestic product (GSDP) has grown by 13.00 % from Rs.1,97,514 crs in 2014-15 to Rs.2,26,184 crs in 2015-16.. The state's economy witnessed high growth rates between 2004-05 and 2015-16, with gross state domestic product (GSDP) expanding at a compound annual growth rate (CAGR) of 12.87 per cent.

GSDP & Sector share, 2016

Sector % of GSDP

Agriculture 16.61%

Industry 38.78%

Service 48.62% Source: Economic Survey, 2015-16

Receipts: As per the actuals for FY 2014-15, the state had reported total receipts of Rs.40,041 crs as against Rs.30,429 crs for FY2013-14, witnessing a growth of 24.06%. Total receipts of Rs.38,288 crs includes revenue receipts of Rs.32,565 crs and capital receipts of Rs.6,723 crs. The increase in total receipts was mainly due to increase by 10% increase in own tax revenues, 16% increase in the non-tax revenue and 82% increase in grants from Centre. Own tax revenues amounts to 33% of revenue receipts and 27% of total receipts. Share in Central taxes and Grants from Centre amount to 19% of the total receipts. The state has reported Revised Estimates of Rs 62,253 crs of Total Receipts in 2015-16 and Budgeted Estimates of Rs.63,503 crs of Total Receipts in 2016-17. The estimated increase

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Agriculture Industry Service

16.61%

38.78%

48.62%

Jharkhand - GSDP & Sector share, 2016

% of GSDP


in total receipts is mainly on account of increased share in central taxes due to change in basis of devolution as per 14 Finance Commission’s recommendations , increased grants from Centre and estimated increase in tax revenues..

Expenditure:

The states total expenditure increased by 31.59% from Rs 30,429 crs in FY2013-14 to Rs 40,040 crs in FY2014-15 as per the actuals reported in the Budget document for 2016-17. Total Expenditure of Rs.40,040 crs in FY2014-15 includes Revenue Expenditure of Rs 31,794 crs and Capital Expenditure of Rs 8,246 crs. This increase in total expenditure was due to higher expenditure on Education, Medical, Agriculture, Transport sectors and also due to higher repayment of loans. The state has estimated expenditures of Rs 84,693 crs for FY2015-16 (R.E.) and Rs 94,053 crs for FY2016-17 (B.E.). These increased expenditures have taken into account the impact of 7th Pay commission, increased interest costs, higher pension obligations and expenditure on social/economic sectors such as expenditure on Education, Medical, Agriculture and transport sectors. On an average the state spends 66% of its total expenditure on social services and Economic services. 27% is spent on General services. The rest is spent on debt repayment. The state has a high committed expenses to Own revenues (Own tax +non tax revenue’s) ratio of 105.8%. Committed expenses include salaries, pension, interest payment and administrative expenses.

Deficit/Surplus:

Jharkhand has shown a revenue deficit in FY14-15. However, as per revised estimates for FY15-16 and budget estimates for FY16-17 the State expects revenue surpluses of Rs.5357.01 crs and Rs.6994.50 crs respectively. This is primarily due to substantial increase in State share of central taxes from Rs.9487.01 crs as per actuals for FY14-15 to Rs.16498.80 crs as per revised estimates for FY15-16 and increase in GOI grants in aid from Rs.7392.68 crs in FY14-15 actuals to Rs.11000 crs in FY15-16 revised estimates. As most of the states, Jharkhand also reports fiscal deficit due to mismatch between capital receipts and capital expenditure which is made up by external borrowings. For 2014-15 the state’s Capital receipts were Rs 6723 crs against Capital expenditure of Rs 8246 crs resulting in Fiscal deficit of Rs 6720 crs (3.4% of GSDP). The fiscal deficit has exceeded the prescribed limit of 3% of GSDP as per the FRBM act. Market borrowings remain the major source of financing for the GFD of most states. However as per the latest RBI data, among the non-special category states, Jharkhand has one of the lowest Debt-GSDP percentages at 16.5%.


Annexure V - SERVICE LEVEL BENCHMARK- DMC (As per SAAP)

Service Line Present Status

Adityapur

Chas Deoghar Ranchi Dhanba

d Giridih

Hazaribagh

MOUD Benchmar

k

Water Supply

Coverage of water supply connections

20.00% 12.77% 28.41% 53.00% 21.57% 34.26% 28.13% 100.00%

Per capita supply of water 64 LPCD 44.61 LPCD

69.33 LPCD

98 LPCD

98 LPCD

70 LPCD

77.34 LPCD

135 LPCD

Extent of metering of water connections

0.00% 0.00% 3.00% 25.00% 11.07% 0.00% 0.00% 100.00%

Extent of non-revenue water

53.00% 70.00% 54.47% 70.00% 45.00% 50.77% 61.00% 20.00%

Quality of water supplied 100.00% 100.00% 100.00% 100.00

% 100.00

% 100.00

% 100.00% 100.00%

Cost recovery in water supply services

65.00% 20.00% 40.00% 40.00% 85.00% 27.82% 13.76% 100.00%

Efficiency in collection of water supply related charges

46.28% 80.00% 51.35% 50.00% 85.00% 22.27% 15.26% 90.00%

Sewerages

Coverage of latrines (individual or community)

86.00% 85.00% 78.00% 77.00% 86.00% 90.00% 74.00% 100.00%

Coverage of sewerage network services

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

Efficiency of collection of sewerage

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

Efficiency in Treatment: Adequacy of sewerage treatment capacity

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

Storm water Drainage

Coverage of Strom water drainage network

30.00% 30.00% 18.00% 52.00% 60.00% 47.00% 35.00% 100.00%

Incidence of sewerage mixing in the drains

35.00% 30.00% 80.00% 80.00% 40.00% 52.26% 40.00% 0.00%

Incidence of water logging 25.00% 25.00% 80.00% 4-6

times 25.00% 10.00% 35.00% 0.00%

Park (Space Availability)

Per person open space in plain area as pre URDPFI guidelines

4 Sq. m. 5.20 Sq.

m. 3.43 Sq.

m. 2.34

Sq. m. 4.2 Sq.

m. 0.68

Sq. m. 4.00 Sq.

m. 10-12 Sq.

m.

Source: SLIP of CMC.


Annexure VI – REFORMS AND ITS STATUS - DMC (As per SAAP 2016-17)

Sl. No.

Reform Type Milestone Target

for FY16

Remarks

1.

E-Governance

Creation of ULB website 6

Months Yes, DMC ULB website has been created.

Publication of e-newsletter, (Digital India Initiatives)

6 Months

Yes, DMC is publishing e-newsletter on their website.

Support Digital India 6

Months

1) An initiate has been taken for common conduct policy with the support of TRAI. 2) High Speed internet connectivity facility through broadband connectivity. 3) Digitalization of legacy data of the ULBs.

2. Constitution and Professionalization of municipal cadre

Policy for engagement of interns in ULBs and implementation

12 Months

Yes, Target achieved. Internship policy for engaging interns in DMC has been notified.

3. Augmenting double entry accounting

Complete migration to double entry accounting system and obtaining an audit certificate to the effect from FY 2012-13.

12 Months

Yes, DMC has been migrated to double entry system and obtained audit certificate to the effect from FY 2012-13.

Publication of annual financial statement on website

Every Year

Yes, DMC has annual financial statement on website

4.

Urban Planning and City Development Plans

Preparation of service level improvement Plans (SLIP), State Annual Action Plans (SAAP)

6 Months

Yes, DMC has submitted SLIP & SAAP of FY2015-16 to MoUD.

Make action plan to progressively increase Green cover in cities to 15% in 5 years.

6 Months

Partially complete preparation of action plan is under process.

Develop at least one Every Yes, Target achieved for last FY.


Children Park every year in the AMRUT cities.

Year Work awarded to development of one children park every year in DMC.

Establish a system for maintaining of parks, playground and recreational areas relying on People Public Private Partnership (PPPP) model.

12 Months

Target not achieved completely.

5. Devolution of funds and functions

Ensure transfer of 14th FC devolution to ULBs.

6 Months

Yes, Target achieved and 1st and 2nd instalment has been transferred to DMC.

Appointment of State Finance Commission (SFC) and making decisions.

12 Months

Yes, Target achieved and 3rd State Finance Commission (SFC) appointment.

Transfer of all 18 function to ULBs.

12 Months

Yes, Target achieved. Already, Transferred and provisioned in Jharkhand Municipal Act, 2011.

6. Review of Building by-laws

Revision of building bye laws periodically.

12 Months

Yes completed, Building Bye Laws

Create single window clearance for all approvals to give building permissions

12 Months

Yes, Single window exists.

7(A) Municipal Tax and fees improvement

Atleast 90% coverage. 12 Months

Target of 90% and above coverage in property tax has completed.

Atleast 90% collection. 12 Months

Target partially achieved.

Make a policy to periodically revise property tax, levy charges and other fees.

12 Months

Yes, Target achieved. Jharkhand property tax rules has been revised and notified.

Post demand collection book (DCB) of tax details on the website.

12 Months

DCB has been prepared and uploaded on website.


Achieve full potential of advertisement revenue by making a policy for designation specific potential having dynamic pricing module.

12 Months

Yes, Advertisement policy 2016 has been notified.

7(B)

Improvement in levy and collection of user charges

Adopt a policy on user charges for individual and institutional assessments in which a differential rate is charged for water use and adequate safeguards are included to take care of the interests of the vulnerable

12 Months

Yes achieved, Policy on water user charges 2016 has been notified.

Make action plan to reduce water losses to less than 20% and publish on the website.

12 Months


Separate accounts for user charges.

12 Months

Yes, Completed. AMRUT cities has been opened separate Bank accounts for 5 services Water user charges, Property tax, BPA fees, swim fees and Municipal license fees.

At least 90% billing. 12 Months

Yes achieved, more than 90% of the billing report has been received.

At least 90% collection 12 Months


Energy and Water Audit

Energy (Street lights) and Water Audit (including non-revenue water or losses audit).

12 Months


Making STPs and WTPs energy efficient.

12 Months


Optimize energy consumption in street

12 Months

Yes target achieved, Sodium light is being converted to LED


lights by using energy efficient lights and increasing reliance on renewable energy.

lights in AMRUT cities.

Source: SAAP Jharkhand, 2016.

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