CEPT University

JAMSHEDPUR CITY DEVELOPMENT PLAN

Appraisal Report

Overall Observations

1. The CDP (4th version1) for JUA2 broadly incorporates the requirements specified under
JNNURM tool kit. A systematic presentation of the existing situation, identification of problems
and linked investment plans has been made.

2. The Vision: Based on the discussions with various stakeholders, public representatives
and officers the document adopts the city vision as summarized below in terms of following
attributes:

- Jamshedpur should develop as an environment friendly city with excellent

infrastructure and sustainable development.
- Jamshedpur City to develop as slum free and pollution free city.
- Jamshedpur City to have equitable distribution of urban infrastructure and amenities.
- Jamshedpur to have multi sector economic approach.
- Jamshedpur to make sustainable use of resources for better future.
- Jamshedpur to be promoted as a tourist hub.
- To have planned residential layouts with provision of social and physical
infrastructure.
- To have efficient public transport and better connectivity.
- To have good and modern urban Governance.

3. The city development plan states a sectoral vision and corresponding investment plan to
achieve its motto to provide good connectivity and equitable distribution of physical and social
infrastructure.

The City, its needs and its plans:

4. Consultations: Revised report provides details of consultative process. The stakeholders

include representatives of local authorities, citizens, government departments, NGOs,
business/industry Associations, welfare committees/associations, JUSCO, gram vikas trust and
professional bodies. Summary of stakeholder interactions (Annexure B) provides separate section
on JUSCOs suggestions. However, the consultations with public in general appears very limited.

5. Urban Governance: Jamshedpur urban agglomeration consists of multiple authorities-

one municipality, 3 notified area committees and 8 village panchayats, industrial development
1
First meeting held at CEPT, Ahmedabad with consultants in September 2006, Second meeting held with
consultants and representatives from Jharkhand Urban Development Department and local authorities
JNAC and MNAC at CEPT in November 2006. Third meeting held at Ranchi and Jamshedpur with the
representatives of Jharkhand Urban Development Department, District Collector Jamshedpur, and Special
officers of JNAC, MNAC, ANAC and Jugsalai Municipality and the consultants in December 2006.
2
The study area considered is JUA comprising of Jamshedpur Notified Area, Mango Notified Area,
Adityapur Notified Area, Jugsalai Municipality and adjacent census blocks (which are part of Jamshedpur
Revenue Block) of Ghorbandha, Chotagovindpur, Gadhra, Sarjamdah, Haldubani, Kitadih, Bagbera and
Parsudih.
authority and private development orgnisation (JUSCO). In order to achieve uniform socio-
economic growth, the city will have to from a unified administrative body, which will undertake
urban renewal schemes, prepare master plans and identify developmental projects. Investments of
Rs. 102.27 crores have been proposed under JNNURM for the same. As informed by UD
department, Government of Jharkhand during the meetings a separate report is under
preparation for formation of unified agency.

6. Urban Economy: The city has a sound industrial base and considerable percentage of
the population is engaged in industrial activities. Its industrial base includes largest steel works in
the private sector in the country (TISCO) and the other major industries; TELCO, TINPLATE,
Telcon works,INCAB, UCIL, HCL, Tata Agrico etc. besides the manufacturers of automobiles,
agricultural equipment, locomotive parts etc. The city continues to attract many more large and
medium scale industries in these sectors. The city has already initiated the process of developing
a special economic zone for automobile and auto companies with related housing and commercial
facilities at Adityanagar. The SEZ is expected to be developed (in an area of about 90 acres & 90
years lease) on BOT by JUSCO along with M/s Gammon India Ltd. The housing facility and
commercial complex spread over 200 and 20 acres respectively will be taken up by AIADA and
IL&FS. These projects have not been included in JNNURM funding (Ref. Chapter 9- projects
external to JNNURM).

7. Demography: The population of the city has grown from 6.89 to 9.4 lakh during 1991-
2001 period recording 36% decadal growth rate. The growth rate is available only for last two
decades for the three notified areas and the growth rate of last decade is applied to all the local
authorities in the JUA. With growth rate of 36.4%, the city estimates the population to be 14.7
and 20.21 lakh in 2011 and 2021 respectively. The estimate for 2006 is 12.7 Lakh people and 2.8
lakh households (2.6 lakh properties).

8. Land Use: The presentation of existing situation is cursory. As mentioned in the report,
due to non-availability of detailed landuse plan for the areas covered under JUA, the broad
landuse classification has been presented in tabular format according to UDPFI guidelines
supported by primary site visits. The total area of the proposed JUA is 149.23 Sq.Km of which
about 35% is under industrial use and 20% under residential use with present average density of
90 persons per hectare. In absence of any development plan or master plan, a detailed
reconnaissance and evaluation of satellite photographs indicates that there are some constraints
for the expansion of the city in North and South leading to expansion of predominantly industrial
development in westward direction and predominantly residential development in eastward
direction increasing the gap between residential and work places.

9. Given the rapid pace of development there is a need for initiating formulation of unified
administration agency, improve employment opportunities, equitable distribution of infrastructure
and preparation of master plan.

Infrastructure

10. In terms of infrastructure, there is wide difference in the level of infrastructure provision
within different areas of the city. The infrastructure within the JUSCO3 controlled area the city is
properly laid out and adequate in terms of requirements of Tata steel company township.
However, other areas of JUA do not have adequate civic infrastructure and even the records for

3
Jamshedpur Utility and Service Company
the same are not available. Existing situation, needs and investment plans have been summarized
below.

11. The investment needs have estimated for JNNURM period and been spread over a period
of seven years i.e upto 2013 and the systems proposed can be augmented as required to meet the
future requirements of projected population of 2031 in JUA. As the estimates do not provide the
reference to the source of unit rates, the estimates could be verified to match the existing market
rates or schedule of rates at the time of detailed project report preparation or detailed examination
may be made during DPR appraisal.

12. Water Supply: The current water supply is managed by JUSCO within their areas mainly
in JNAC and by PHED in areas outside JNAC. In PHED controlled areas the supply is far below
requirements and use of hand pumps, bore wells, tankers etc. to meet the demand are very
common and dependence on groundwater is growing at alarming rate. The coverage area of water
supply in JUA is below 50% (25% by piped water supply) with average availability of 60 lpcd.
Duration of water availability ranges from 1 to 8 hours in different areas. The main sources of
surface water supply are Subarnarekha river, Kharkai river, Sitarampur dam and Dimna lake.
- 60.8 MLD water is made available by these sources. Unmet demand is 48.6
MLD.
- Treatment facilities are partly available. PHED carries out chlorination and
sedimentation before supply.
- Data on the length of existing distribution network, number of connections, water
charges is not presented.

13. The sector development proposals include refurbishment of existing system and system
augmentation by provision of water treatment facilities of about 166 MLD, water supply network
for entire area and water metering for all consumers.

14. The water sector investment requirements are mainly to cater to the future needs. The
plan proposes Rs. 622.03 Crores to be spent over 7 years. The components include existing
system refurbishment (26.5 Crores.), WTP (Rs. 49.83 Crores), Water mains and distribution
system (Rs. 207.2 Crores), industrial water distribution (Rs. 208.6 Crores), Storage-overhead
tanks (Rs. 50 Crores) and consumer metering system (Rs. 79.73 Crores). The length of water
distribution system and consumer metering system needs to be reconfirmed at the DPR stage. The
estimates for amount to be spent beyond JNNURM plan period have not been worked out.

15. Wastewater Management: This is one of the least developed infrastructure in JUA.
Organised sewage system is available only in areas under JUSCO. Most of the sewage is disposed
into soak pits, septic tanks or disposed off in Subarnarekha and Kharkai rivers via the drains.
Almost 60% of the sewage remains untreated. JUA has only two sewage treatment plants and
these are under jurisdiction of JUSCO and have combined capacity of 60 MLD covering about
15% of total JUA area.

16. Numbers of sewerage connections and length of sewers need to be confirmed at the DPR
stage.

17. The proposal to meet the demand till 2014 is Rs. 307.27 Crores. The components include
network building (Rs.222.07 Crores), STP 169 MLD total capacity (Rs. 50.7 Crores),
Intermediate pumping stations (rs. 1 Crore) and public toilets and road overlays (Rs. 33.5 Crores).
18. Storm Water: Subarnarekha and Kharkai are the major rivers flowing through JUA,
besides this there are about 11 major nallas which facilitate drainage of storm-water from the
area. However, due to significant silting and obstructions in these nallas and other secondary
drains the natural flow is hampered leading to backflow of water from the river system and
flooding during monsoon season. About 40 km of the roads have provision of storm water drains
out of which about 75% are in kutcha form. The SWD plan is proposed at a cost of Rs.161.24
crores. The proposal includes existing system refurbishment to reduce silting, system
augmentation through laying of new network, manholes and traps and preparation of drainage
master plan and rain water harvesting systems.

19. Solid Waste Management: The city has a organized waste collection and transportation
only in the area controlled by JUSCO through its own team of conservancy workers. For other
areas there is no infrastructure for collection, storage, transportation and treatment. The waste in
dumped at two sites (total area of 4.1 Ha). About 349 MT is generated every day and this will rise
to 749 MT per day in 2031. Biomedical waste generation and its management could be addressed
at DPR stage for integrated waste management. Also, the issue of industrial slag which is right
now being unscientifically dumped resulting into mounds of slag has been broughtout by
stakeholders during consultations (Annexure B , pg. xiv) and the same needs to be addressed in a
long run.

20. The proposals have been made for developing landfill site which would last till 2013.
However as per the requirements of MSW (management and handling) Rules, 2000 it is required
to identify landfill site to last for 15-20 years and it is recommended that a detailed study for site
area requirement and location, treatment facility based on waste quantity and quality and detailed
plan for collection and transportation be carried out at DPR stage. A sum of Rs. 100 crores have
been proposed for:

o Cost towards equipments (not clear whether it includes cost towards improved
collection and transportation system) – Rs.35 Crores
o Landfill management and development – Rs. 45 Crores
o Treatment Plant and Machinery – Rs. 20 Crores

21. Urban transport: The length of roads maintained by notified area committees is about 255
km and has an average width of 6 m (except JUSCO area). On a general note pavement condition
of radial arterial roads is good, however other roads in the JUA are in poor condition due to lack
of maintenance of proper drainage network along the roads. RTO and JUSCO have installed
traffic signals at main junctions in the city which is not adequate. Organized street parking, street
lighting are provided only in select locations in JUA, mainly in the areas serviced by JUSCO.
Public transport system is very poor leading to excessive use of six seaters, auto rickshaws, two
wheelers.

- The proposals are for an investment of Rs. 878.25 Crores towards road widening, new
roads(including ring road), transport hub, river bridges, traffic improvements and bus
transit system.

- It is pertinent to note that water supply distribution network, sewerage network and road
network in new developments are to be synchronized as they are dependent on
development of road network.
Urban Poor (Housing and Services)

22. The population living in the slums is 12% in JUA. However, the largest slum population
exists in Adityapur and is around 33.5 %. Large number of slums are located along riverbed and
other environmentally sensitive areas, land reserved for crucial purposes. A majority of working
population in slums is factory workers, construction labourers or home based small business.

23. The City Development Plan proposes providing basic infrastructure services and
rehabilitation (not clear whether land acquisition is included in investment plan- ref page 89,90).
Proposed investment of 141.5 crores includes provision of water taps, water connection, public
toilets, rehabilitation and community facilities. The proposal needs substantial detailing at DPR
stage.

Urban Environment, Tourism and Heritage: (Chapter 7)

24. The city has number of natural water bodies, as well as large green open spaces which are
in the state of negligence and getting polluted by effluents, and garbage. The plan proposes to
develop inventory of level of air and water pollution in the city and revitalization of water bodies
and green open spaces. Investment plan of Rs 30 Crores is proposed which includes river front
protection, sluice gates on nallas, provision of ghats and water sports centre, rope way for
promotion of tourism in Dimna lake area. The detailed plan could include setting up of pollution
monitoring stations to meet the said objective of preparing inventory of pollution. The chapter
does not put forward any important heritage element or historical significance of the city.

Urban Amenities

25. Most of the recreational, higher education, health, sports facilities is concentrated at one
part of JUA and mainly in the areas maintained by JUSCO leading to disproportionate
accessibility. The plan proposes to provide amenities to all and enhance clusters in different parts
of JUA at a cost of 106.75 crores

26. Other Proposals (External to JNNURM): Indicative of expected share of Jamshedpur

in the regional development.
- An amount of Rs. 0.5 Crores has been allocated for formation of regional planning board.
- Rs 750 Crores for freeways and high speed corridors
- Rs. 250 Crores for regional airport warehousing and container facility.

27. Urban Finance: the financial profile of urban local bodies is not structured and mostly
all the ULBs have been operating at recurring loss over the years. The municipal tax inflow is
almost negligible which has resulted in limited financial resource options. The inflow of funds is
mainly through Government grants. Various heads under different streams of revenue and
expenses are very broadly dealt with.

28. Overall revenue income in year 2005-06 was Rs.111.65 lakhs for Jugsalai municipality
and three notified area committees against the expenditure of 87.07 lakhs. During the past five
years there has been no steady trend in revenue income and has been fluctuating with sudden rise
to 275.5 lakhs in 2003-04 the reasons for which are not discussed.

29. Capital income of the existing ULBs comprise of loans, grants and subsidies from central
and stat governments. During the review period the income was inconsistent due to irregular flow
of specific grants. Establishment and works (not detailed) are the major avenues for capital
expenditure.

30. Mandatory as well as optional reforms (Rs. 230 crores) have been proposed to be
implemented by 2009 to improve urban finance. These include accounting reforms, enactment of
rent control, public disclosure laws, property title certification, computerization of property tax,
development control regulations, e-governance, GIS etc.

31. Service Delivery:

From the limited information on institutional set-up available in the CDP, the institutional
framework for provision of all basic services is as follows.

Service Planning & Execution O&M

Design
Water Supply 1. JUSCO for some portions4 of JNAC for Water treatment
Plant and piped water supply
2. PHED for other areas of JNAC, MNAC, ANAC, Jugsalai
Municipality
3. Other areas Census Blocks no piped water supply
4. Water Treatment Plants- AIADA in ANAC; Jugsalai
Municipality, Remaining areas of JNAC implementation
by PHED and funding by ULBs.
Sewerage 1. JUSCO for some portions3 of JNAC for sewage network
and sewage treatment plants
2. Other areas of JNAC, MNAC, ANAC, Jugsalai
Municipality and other census blocks sewage disposed
into soak pits and septic tanks or open drains.

Storm Water Drainage
1. JUSCO for some portions3 of JNAC – about 40 Km roads
have drains of which above 75% are kutcha form.
2. Other areas of JNAC, MNAC, ANAC, Jugsalai
Municipality and other census blocks storm water
disposed through natural open drains.

Solid Waste Management 1. JUSCO for some portions3 of JNAC for organized
collection and transportation and insanitary dumping.
2. Other areas of JNAC, MNAC, ANAC, Jugsalai
Municipality and other census blocks sewage disposed
into soak pits and septic tanks or open drains
Roads, Bridges 1. JUSCO for some portions3 of JNAC.
2. Other areas of JNAC, MNAC, ANAC, Jugsalai
Municipality and other census blocks – ULBs,
NHAI,PWD, State highways5.
Street lights 1. JUSCO for some portions3 of JNAC.
2. Other areas of JNAC, MNAC, ANAC, Jugsalai
Municipality and other census blocks – Electricity

4
Includes townships of Tata companies and parts of JNAC area- Not quantified the coverage by JUSCO in
JNAC
5
As mentioned in section 5.6.2, pg. 71. Not elaborated further in the report about specific roles.
 department and local body responsible for
installation,replacement,repairs, O&M.

Investment Sustainability

32. Based on a detailed need identification exercise the CDP proposes investments worth Rs
2679.31 Crores. This excludes the requirements of Tata nagar. Additional investment external to
JNNURM of Rs. 1000.5 Crores has been proposed for which the implementation structure has not
been recommended and shall have to be developed at detailed project appraisal level.

Proposal under JNNURM to meet the needs up to year 2014

Components Rs. In Crores
Socio-economic growth 102.27
Urban infrastructure
Water Supply 622.03
Waste Water 307.27
Solid waste management 100.00
Storm Water Drainage 161.24
Traffic and Transportation 878.25
Housing for Urban Poor 141.5
Environment Protection and heritage 30.00
Amenities and Recreational Facilities 106.75
Urban Renewal 230.00
Total- JNNURM 2679.31
Projects external to JNNURM 1000.50
Grand TOTAL 3679.81

33. In the existing setup there is involvement of multiple agencies not generating revenues as
per normal standards of other local authorities. The major issues due to which past data could not
be used as indicator of future collection and expenses
• Absence of proper data on land registration, property ownership
• Property tax not levied in many areas
• No precedence of assigned revenues(from state government)
• Accounting systems not tuned to routine requirements
• Establishments will be new hence new expenditure head
34. In light of this, entire FOP has been based on comparative cities in India and correlation
of factors with population and geography and certain assumptions on tax collection rate and
efficiency.

35. As discussed during the meeting with representatives of UD department and local
authorities at Jamshedpur, it is assumed that the basis for property tax and other tax collections
has been prepared in consultation with and consensus of local authorities based on their practical
knowledge of the city profile and administration. The FOP is very indicative and may have to be
revised at later date at the time of formation of unified agency, in light of the structure of
proposed Unified agency (separate report under preparation by GoJ) and their expected revenue
streams.

36. In order to have the above level of investments (30% by ULB), the ULB will have to
raise total of over 800 crores. Out of this, own revenue sources as per FOP account for Rs.143
crores only for a period of seven years. Hence, the balance will have to be raised through other
means. The plan proposes private sector participation, Government grants and subsidies!

37. Based on the FOP it is evident that proposed Investment Plan is not financially
sustainable.

Recommendation

38. The next report (the plan) to be finalised within a period of two years) should include an
analysis of the population growth in the agglomeration inclusive of the principle city of TATA
Nagar.

39. Finances of TATA Nagar which is the main city in the agglomeration needs review and
the investment package should be justified financially, inclusive of TATA Nagar than just the
municipal bodies, whose capacities is limited.

40. The Institutional arrangement, while is a commitment from the Government needs
clarification in terms of details.

41. Aspects related to environment and those addressing the needs of the poor need to be
dealt with in a more focused and significant manner.

42. The plan broadly responds to the guidelines of JNNURM and is useful developing the
next step in terms of detailed project development and definition of reform implementation
actions. The plan is recommended for approval.