Prof. Jacob Thudipara
Ms. Shyamly Sharma
Mr. Deepesh Choukse
Mr.Sanddep Ganvir (City Collaborator: Ujjain)
Mr.Anand Lakhan (City Collaborator: Indore)


Town Level Background Paper (Indore City)
Table of contents

1. Indore City Profile
2. Indore City Development Plan: An Appraisal


3. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in Indore City 36-43
4. Current Status of the ULB in Indore


5. Basic Service for the Urban Poor (BSUP) in Indore


6. Double Entry Accounting System in Indore Municipal Corporation






The urban India with over 285 million people residing in 5161 cities and towns constitute the
world’s second largest urban system. Around 1/3 rd of the country’s population already lives
in urban areas. It is estimated that nearly half of the population of the country would shift to
urban areas in the next few decades. However, most cities and towns are severely stressed
in terms of infrastructure and service availability. The escalating demand for basic services
in urban centers is resulting in serious deterioration of service quality across housing, water
supply, sanitation, roads, healthcare, transport etc. According to 2001 census, 42.6 million
people are living in slums of cities having population of 50,000 or more and a significant
proportion of it is without access to even the most basic civic services. The inner areas of
cities face widespread dereliction, decadence and neglect with significant negative economic
Our cities have not been able to cope with the pressure of industrial development and the
growth of the services economy. Despite increasing role of the cities in the economy of the
nation, the growth of urban infrastructure and services has been far from adequate. Public
infrastructure services in the cities highlight the deficiencies in our urban management and
the imperative need to expeditiously upgrade and expand urban infrastructure and to gear
up the city administration to efficiently manage such situation.

The Government of India, in order to create incentive and support for urban reforms both at
the state and city levels, develop appropriate enabling frameworks, enhance the credit
worthiness of municipal government and integrate the poor with service delivery systems,
launched a comprehensive programme known as Jawaharlal Nehru National Urban Renewal
Mission (JNNURM) on December 3, 2005.It is a reform linked urban development project
which is the biggest ever initiative in the urban sector in the independent India with a
budgetary provision of Rs.50000 crore for a period of seven years beginning from 2005-06 to
2011-12. The mission is a city based programme and has been structured with a clear focus
on two important components-urban infrastructure and basic services to the urban poor with
governance reforms as an overarching third component.

The Tata Institute of Social Sciences has set up a facility,viz., Urban India Reforms Facility
(UIRF) within its School of Habitat Studies for the preparation of several knowledge
products concerning JNNURM which will provide knowledge base for public spirited activities
by individual citizens or civil society organizations aimed at influencing the design, and
implementation of projects and reforms at the state and town levels. The task of preparing
the knowledge products for the state and towns are to be carried out by selected State

I also thank the experts form TISS particularly Prof.Deepesh Choukse as part time Research Assistant. analysis and presentation of the report. processing. Ratoola Kundu from the School of Habitat Studies. At Indore school of social work a research team was set up under the guidance of Prof. Ratoola Kundu. Prof.Academic Partners (SAP) with considerable insight into socio-economic and political issues prevailing in the state. Ujjain and Indore. I take this opportunity to thank them all for the hard work they have put in for the collection. the Indore School of Social work was expected to prepare the following knowledge products. Anand Lakhan and Mr. Shyamly Sharma as Research Officer and Mr. TISS Mumbai and research experts from PRAYAS. City Collaborators. for Indore and Sandeep Ganvir City Collaborator for Ujjain for their help in the compiling of the report of the respective towns. Pune and resource persons form the JNNURM cells of Bhopal. Jacob Thudipara Research Director 5 . Pune for the guidance that were given at different stages of the preparation of the report. (1)State level background Paper on MP (2)Status Report of Urban Governance Reforms in MP (3)Town Level Background Paper (Indore City) (4)Town Level Background Paper (Ujjain City) Before the launch of this project a state level inception work shop was organized at Indore on the 27thof November 2010 which was guided by Prof. As per the agreement. Jacob Thudipara with Ms. We hope that the report will serve the intended purpose for which it is prepared. and experts from PRAYAS. It was in this context that the Indore School of Social Work was selected as State Academic Partner (SAP) for the preparation of the knowledge products for the state of Madhya Pradesh. We also thank Mr.Avinash Bhatheja.

which occupied the bank of river Saraswati. the most prominent city of Madhya Pradesh and the district headquarter of the district with the same name is situated on the western part of the Malwa (historically known as Deccan plateau) on the banks of two small rivers. Later. in addition to the halting place it also became a camping place for forces of Moghul's and Marathas who frequently moved to South and North for expanding their kingdoms. Indore is 17th among the 23 million plus cities of India enumerated in the 2001 census. The city is currently the most populated city of Madhya Pradesh. Indore has been a center of affluence due to flourishing trade and commerce right from beginning. The Indore ‘Kasba’ is mentioned in some of the documents in the late 17th century during the rule of Aurangjeb. The little village grew as an important halting place for pilgrims travelling between great religious cities.2Holkar’s Indore 6 . which is still a dominant feature of the city. This area is now known as Juni Indore. The present city is about 400 year’s old settlement. It is the the biggest commercial center and is termed as the business capital of Madhya Pradesh. the famous Mogul ruler. a 2. giving this village a character of a walled town. Narmada and Omkerashwar. Indore. Ujjain on the bank of the Holy River. To withstand the foreign invasions. According to some myth the name of Indore was derived from the name of Indrashewar temple. The name Indore is attributed to the Rashtrakut ruler ‘Indra’ on whose name the village must have derived its name. S.0 million plus city today has transformed from a traditional commercial urban center into a modern dynamic commercial capital of the state. 1.E) visualized the opportunity of flourishing trade in this settlement and settled on the banks of the river Khan. Till the end of 15th century its original nucleus was a riverside village.Chapter-1 Indore City Profile Indore. The Zamindars of village Kampel (about 10 km. Indore situated on the plateau of ‘MALWA’ was just a village called Indur/Indurpuri.1 Early Indore. Zamindars built a castle.Historical Background 1. although the town hardly suffered the destruction of feudal wars.Juni Indore Indore owes its early growth to trade and commerce. the Khan and the Saraswati. 1.

the founder ruler of Holkar Dynasty. During the period of Maharaja Tukoji Rao II efforts were made for the planned development and industrial development of Indore (1852-86). It was during his time that Krishnapura Bridge. through the proposal was initiated by Rani Ahilya Bai. Indore retained its status of being the administrative capital till the regime of Yashawant Rao Holkar who due to some military reasons established his capital seat Bhanpura. It is believed that the village of Indrashewar gradually developed into a as a important town on 29th July1732. 7 . With the introduction of Railways in 1875 the business in Indore flourished. In 1818 the capital was shifted from Maheshwar to Indore.T. a Mandsaur treaty was signed by virtue of which Indore was again made the capital. In fact during that time Indore was established as Head office of British Central agency. During the regime of Maharaja Shivaji Rao. under the influence of Maratha rulers. Cloth Market. The town. which was called ‘Indur’.During this period development was primarily for military and commercial establishment. Moti Bunglow was constructed. when ‘Kasba’. but Holkars continued to rule mainly due to the efforts of their Dewan Tatya Jog.There is no firm date about establishment of Indore as a city. then to a ‘Pargana’ and finally Bajirao Peshwa-I granted Holkar State (Jagir) by merging 28 and half parganas and then providing this Jagir to the ‘MALHARRAO HOLKAR’. one leading to polo ground. As the British defeated the Holkars (Tukojirao II) and Scindia at Mahidpur. Krishna Bai Chattri and roads were constructed. He ruled the state from 1728 to 1766. the other to State stable now M. In view of the defence needs. daughter-in-law of Malhar Rao Holkar. must have been called ‘Indoor’ which under the influence of British must have further distorted to ‘ Indore’.3 British Indore In 1903 Maharaja Shivaji Rao Holkar left the throne in favor of his son Maharaja Tukoji Rao -III during whose regime also the development of city continued. location of defense establishments were at a reasonable distance from the civil population. the three roads. A residency with British resident was established at Indore. All the defence establishments were located on these roads. 1. Holkar college. and the third Topsham Road were first to develop. Establishment of Holkars capital at Indore provided new forces for development of the city. Later the boundaries of the state were amended and Maheshwar was also included in the Jagir.

In 1906 Electric supply was started in the city. Bhopal and New Delhi. all District Head Quarters of the Division and important towns within the District. State Highways and other roads connect the city with the State Capital Bhopal. Indore Development Authority and Madhya Pradesh important role in implementing Housing Board have played an the Development Plan 1991 besides private colonizers and Co-operative Housing Societies. Indore City is located in the center of Indore District. which connects it to Mumbai. The city is. which was published and adopted under 18 & 19 of Town & Country Planning Organisation Act plan envisaged planning area was 21.5Location and Linkages Indore city is linked by three modes of transportation viz. Yashwant Niwas. which forms a physical barrier for. 1. Rail and Air. the Holkar State acceded to Indian Union.0 million city today has transformed from a traditional commercial urban center into a modern dynamic commercial capital of the state. The National Highway (Mumbai-Agra Road) passes through the city’s habited area. Tukoji Rao Hospital were constructed during his tenure. Gandhi hall. present Commissioner Office then was used as Ministry office and the assembly session were held in Gandhi hall.Manikbagh palace. out of which 12. Road.5 lakhs population. With the formation of The Madhya Bharat. Indore became the capital of the state. The first ever-planning intervention in the post independence period was in the form of Indore Development Plan (1974-1991). The Railway line passes through the heart of the city. Maharani Saraya.145 hectares were provided under different uses for -1973. The city is also served by a regular air service. 1. inter communications within the city.4Post Independence Indore In 1948. served by a broad gauge and meter gauge railway line.410 hectares. 8 . Fire brigade was established in 1909 and in1918 to promote proper development of Indore Master Plan was prepared by noted Architect and Town Planner Patrick Geddes. Indore a nearly 2. The 12. It is situated on fertile Malwa plateau. Old High Court Building. Regional road pattern fans out in all directions.

There are three distinct dry. and thus Indore is referred to as Shab-e-Malwa.1° C throughout the year.0 Sq. The river and its tributaries traverse through the densely populated area of the city. The climate of the area is typically seasonal. There are no physical constraints except Pipaliyapala Tank on the south-eastern side and Sirpur Tank in the southwest. lies in Khan River basin. The cross section at various places shows an order of soft soil till 5 ft. the days are hot (35°-40°C) with the peak summer (May) day temperature sometimes touching 45°C.2Climatic Conditions The city enjoys a composite climate with extended hot humid period from July to September. it can be as low as 2° to 3°C. 2. above MSL. 2. 2. 2. the night low is around 10°C at the peak of winter. Km. 76 42 E longitude. after this the rocky terrain extends to 100 ft and below.3Winter In winter (November-February). The city occupies a relatively flat plateau having a gentle slope towards north.4Summer During summer (April-June).Physical and Geographical Character 2. The highest and the lowest contour levels in the city are 590 m and 540 m. The city has black cotton soil varying in depth from place to place. The hinterland of the city is scattered with some hillocks.. hard soil till 15ft. Indore is located at an average altitude of 550 mts.. The record low is +1.1Physical Features The entire city of Indore. Due to its location on the southern edge of the Malwa Plateau. having a municipal area of 134. red-soil still 30 ft. summer period from April to June and a temperate climate from October to March. wet and cold seasons.5Monsoon: Indore gets moderate rainfall of 30-35 inches (~80cms) during June -September from 9 . The mean daily temperature is about 25. cool breezes make the evenings quite pleasant. 2. however hot it may be during the day. in the late evening.located at 22 43 N latitude. which may limit or condition the growth of the city.5°C. winter period from November to February. respectively.

After January. Deoguradia and depressions at Sirpur . All these rivers are nonperennial.6Wind Direction The prevalent wind direction is west and southwest in summer months and north and northeast in winter. is provided by the river system of Khan including the Rivers Khan and Saraswati along with their tributaries. The confluence of the two rivers lies in the heart of the city western Indore joins Khan river near Sukhaliya village.8 Regional Setting and Growth Pattern Indore is the biggest city located in Malwa plateau region and occupies relatively plain plateau having a very gentle slope towards North. there is spurious rainfall during winter months. An area of about 4798 sq. Ujjain.Southwest Monsoon. which has its origin near Machal village.7Natural Drainage "The drainage of the city. The Khan and The Shipra flow more or less parallel to one another. Dhar and Jhabua. and The domestic industrial waste water from the entire city has its outlet in the rivulets. from the origin. Tekri. Indore. Out of seven districts. This water is utilised for farming purposes in the downstream areas. Dewas. Piplyapala and Bilawali tanks. Dewas and Ujjain are 37 km apart. it is joined by the Saraswati River. The slope is greater till the confluence point and after this point the riverbed becomes relatively flatter. Gadha. Bhamori Nallah. as mentioned earlier. are more urbanized. another nallah flowing through eastern part joins Khan river at Kabit Khedi. The rivers are nonperennial. which are located in a triangular manner in close proximity to each other. Bhuri Tekri. The region consists of seven districts viz. The four major rivers of the region viz. The region is relatively more urbanized and industrialized as compared to other regions of the state. Apart from this. 2. Dewas is only 35 km. The slope of the riverbed upstream is 1:500 and downstream 1:650. 10 .km around Indore city has been identified as Indore influence region which includes 7 major urban towns and 946 villages. there is practically no flow beyond village Kelod. the three urban center i. Three kms. Khan River originates about 11 km south of Indore. Mandsaur. The Gambhir. The hinterland of the city is also flat but intermixed with some hillocks like Bijasan. Dewas and Ujjain. 2. The river bed has a gradual slope towards north. without many undulations.Indore. 2. The Chambal. Ratlam.e.

of India.NH-3. It has also steel plant of Pratap Steel. Larson & Tubro etc.designated as City Bus today ply on 36 Routes. Steel Tubes. Gajra Group. S. Kusam. Bhopal. 2. Mhow. There are 225 General Low Floor. Dewas: another industrial town is also close (35km) to Indore. are also located here. Smocking (a type of design) dresses and leather horses of Mhow are quite famous. Pithampur. Van and Local City Ride Buses called Nagar Seva. with around 170 Bus Stop Stations. The city is having direct linkages with the Mumbai. 190 Semi-Low Floor and 90 AC Special City Bus being operated under this new service.The city of Indore is the commercial capital of the state and is of significant importance to the country. Dewas also has Bank Note Press of the Govt. Prestige and Chirag Ingots. Kores India. Onida Saka etc. The buses are color coded as per their route. 2. Electronics consumer goods plants of Crompton Greaves. The cantonment town of Mhow (Military Headquarters Of War) established during WW as a base for British troops in Central India. Kumars. Also it is connected by rail to all Metros. Ranbaxi Laboratories. It has plants of Kinetic Honda. Among the notable industries here are Tata Exports. is also close (22km) to the city. Indore is located midway on the 1000 km long Mumbai Agra National Highway . there are also the options of Auto rickshaw. Kesari Steel. This information is displayed on LED displays installed on the Bus Stops. Atal Indore City Transport Services Ltd. For local transport. referred to as Detroit of India due to heavy concentration of Automobile Industry. Ruchi Soya. and Delhi etc.9 Local Transport Indore has an efficient public transport system.10 Education 11 . a PPP scheme operates buses and radio taxis in the city. Some of these buses are also equipped with advanced services like GPS and IVR (around 300) which are used to track the position of the bus in real time. The latter has a thriving ready-made garment industry as well as shoe and metal cottage industry. Bajaj Tempo. Prestige Soya. Eicher Motors. The buses . Hindustan Motors. is close (25km) to Indore.

offering courses in more than 20 fields ranging from law to pharmacy to management at both graduate and postgraduate level. Indore has a large student population and is an educational centre.There are also various cultural clubs like Ras Bharati and Kala Abhivyakti. Yeshwant Club and Sayaji Club also sponsor and invite talents from across world. FM State- owned Doordarshan transmits two terrestrial television channels. two English dailies.2Electronic media The radio industry has expanded with a number of private and government owned FM channels being introduced. Abhivyakti Centre of Fine Arts & Performing Arts. Big AIR Gyan Vani FM (92. Mahatma Gandhi Memorial Medical College. FM Red (105.Home to a range of colleges and schools. however. Board. Patrika. one of the oldest medical colleges in country offers varied range of courses in medical sciences. 26 weeklies and monthlies. NIOS board and the state level M. The FM radio channels that broadcast in the city include AIR Vividh Bharathi FM (101.6 MHz).6 MHz). 3.7 MHz). & 12 . Deolalikar Kala Vithika are also similar centers for arts and theatre. 3 quarterlies.3 MHz).3 MHz) and (98. Having both Indian Institute of Management (IIM) and Indian Institute of Technology (IIT) in Indore makes it the only city in the country to have both of these institutions.1Arts and theater Ravindra Natya Grah is an important and well known center for theatre and performing arts in the city. 1 Bi-monthly Magazine and one annual paper published from the city. a number of schools have affiliation with ICSE board.Media 3. Dainik Bhaskar. Agnibaan. My FM Mirchi FM (94. Most primary and secondary schools in Indore are affiliated with the Central Board of Secondary Education (CBSE). Many artists from around the world perform here regularly. Devi Ahilya Vishwavidyalaya (DAVV). 3. is the major & oldest university of Indore.P. Who invite performers from around the globe to perform in Indore. Dainik Jagran. Raj Express.3Print media There are about 19 Hindi dailies.5 MHz). Apart from these few local broadcasting stations also exist. Radio (93. 3. The major Hindi dailies include the Nai Dunia.

There are many sports club for various sports. There are three fixed telephone line operators in the city: BSNL. Poha & Jalebi. Indore has successfully organized various National Basketball Championships. Tata Indicom and Reliance. Indian Team).Lucky Wanderers. There are Seven mobile phone companies in which GSM players include BSNL. Hindustan Times. Mushtaq Ali(ex. Free Press. Other well-known sportspersons are late Dr. 3. Business Standard & The Economic Times.4Sports Indore has two stadiums. BSNL has also launched its 3G services in Indore. Sharma (Basketball). Naidu (ex. The list of noted players include C. Communication services Indore is covered by a large network of optical fibre cables.Jamshed Nusserwanji Bhaya.Abhay Khel Prashal Kabaddi . continental and confectionery sweets. creed and colour. irrespective of castes or region and by respecting every religion. Vodafone. Kishan Chand.5Culture: Indore city has a variety of cultures. Nehru Stadium and Holkar Cricket Stadium. Basket Ball Basket Ball Club. Kripa Shankar Patel (Olympian wrestler). and Bengali.PrabhatKiran. Virgin Mobile. People here know to maintain harmony by intermixing and enjoying their life. Indore was included in the Guinness Book of World Records [35] for holding the largest tea party in the world. Indore Residency Club. cuisines of various types in different restaurants. Reliance. CDMA services offered by BSNL. education or just for its peaceful culture. Muslim. Narendra Hirwani Naman Ojha (Rajasthan Royal IPL) . Capt. K. Idea. Reliance and Airtel. as well as 13 . Airtel. The Hindu. Tata DoCoMo. Rajasthani. Shankar Lakshman and Saleem Sherwani (hockey). Indian Team). It is the home of India's first National Basketball Academy and has a world class indoor basketball stadium. Capt. Aircel. 3. Chess SKM Chess Academy Indore is also a traditional powerhouse for the game of basketball which has been growing in popularity over the last 3 to 4 decades. Kachoris and Samosas.6Food Indore is famous for its culinary range and is known for its wide variety of Namkeens. Chaats (snacks). Table Tennis . The major English dailies are The Times of India. People from all corners of the country have migrated & settled in the heart of Madhya Pradesh for their livelihood.Indore Tennis Club. Over the years the city of Indore has welcomed people from all castes. A city with abundant social life. 3. Lawn tennis . Hiralal Gaekwad.

exotic dishes such as Dal-Bafla. for each Tirthankar. ƒ Rajwada . measuring 25 ft.Dussehra.81 km2) of land. in the west region of the city. from crown to foot. Devas Bypass Road. Eid and other others like Nagpanchmi.The monolithic rock temple built in 7th century.7Main festivals All national festivals like Holi.A Hindu temple. This 14 . Hare Krishna Movement in Nipaniya Village. ƒ Bapna Statue opposite MY Hospital Jaora Compound . primarily of goddess Annapurna. The original Shivalinga is 12 ft under water in a sunken temple above which the present temple is constructed. 3.The Indore museum houses the finest collection of Parmar sculptures from Hinglajgarh [38] 4.Demographic and Social Profile Indore has experienced very rapid population growth during the last 20 years. it is at a walking distance from Rajwada.[37] ƒ Krishnapura Chhatri .A palace spread across 200 acres (0. Ganeshotsav. Raksha Bandhan.Deepavali. Gudi Padwa.By the banks of the Khan river.This temple houses Ganesha Deity.Sri Sri Radha Krishna Temple. Bhaubeej.8Places of Interest ƒ Annapurna Temple . ƒ Lal Bagh Palace . ƒ Bada Ganpati Temple . ƒ Museum . are celebrated with equal enthusiasm. ƒ Zoo . MR 10. Along with 24 marble temples with shikhars. ƒ Gomat Giri . Nihari Gosht and Bafla-Gosht . a replica of the Bahubali statue of Shravanabelagola.a delicacy of Indore and Malwa Region.[36] ƒ ISKCON . with exquisite glass work.A seven-storey palace built during the Holkar era.Statue of Sir Siremal Bapna. Ramzan. ƒ Deoguradia .A Jain (disambiguation) temple with 21 feet statue of Gomateshwara. It is now a museum and one can see the artifacts of the Holkar era.Digambar Jain temple built by Seth Hukumchand a century ago. the Prime Minister of Indore 1923-1936 ƒ Crystal Temple .navratri.The zoo in Indore is famous for its unique collection of animals. Baisakhi. Ahilya Utsav. 3.

1 Population Growth Trends The population of Indore City increased from 57.90 %. which can be attributed mainly to the rapid urbanisation of the city.39 as per present census.rapid growth in a very short time span is actually the hallmark of Indore’s demographic trends. there are no figures. However. people from one area cross over to another area in the same city due to many reasons.Considering the present population at about 16. but have a major effect on the housing and residential patterns of the city.235 in the year 1911 to 16. Such micro level changes and habits have not been taken into consideration as the figures of growth of population incorporate these figures. while it has slightly decreased to 30% during 81-91.9%. Though these are not seen in overall figures. On an average the growth rate in the city has been of the order of 40%. 4. For the periods of 1961'71 and 1971-'81respectively the growth rate has matched the state urban growth rate. which stands at 44. the city had experienced a decadal growth rate of 88% during the decade from 1911-21 and later 52% from 41-51.2 Population Growth in Planning Area The percentage increase of population in 1981. Moreover. The population growth from 1981 to 1991 was observed as 34. Migration is also an important and a dynamic factor in projecting the future population.50 % and between 1991 to 2001 as 47. Thus the average increase for Indore has been higher as compared to the national growth rate (@ 22%). The growth rate for the city had experienced a sharp fall at 27% between the years 1951 to 1961. It has been observed from these figures that increase in population of 1991-2001 was tremendous. The high rate of growth of population during this period is mainly attributable to the rapid industrial and commercial development in Indore planning area. the growth rate matches the state growth rate.39 lacs in 2001. which can suggest the migration rate or its pattern.80%. However the decadal growth rate compares very well with the state growth rate for urban areas. But there are enough evidences to show that migration is indeed a very important criteria for projecting the population. over population of 1971 was 53. Many people from small to medium towns come to Indore. Table 1 Growth of Indore Planning Area 1975 – 2003 15 . 4. As per the census data.

5 times.44 Source: IRS LISS II.39 +48.3 Population Projections The population projections for the Indore Planning Area up to the year 2011 were made on the basis of different standard statistical procedures. nearly in next 15 years population of Indore will increase by about more than1. and IDP 2011 Draft 16 . IRS LISS III. Panchromatic data & SOI maps.73 3 1996 7747 26.71 Source: Census of India.86 16.71 in 2021.68 4 2002 10725 38.34 2021 (Projected) 36.URBAN SPRAWL S.34 lakhs in 2011 and 36. S.46 2011 (Provisional) 25.No Year Area in Ha Growth in % 1 1975 2284 2 1990 6115 167. 4.84 +44. The projected population will be 25.68 11. Table: 2 Populations Projections for 2011 and 2021 Year 1981 1991 2001 Population (In lakhs) Average decadal growth rate(%) 8.04 +29.

P.3 M.6% in 2001 is quite impressive.4 Indore (IMC 2001) 82.4 Population Density The population density of the Indore Planning area as per 2001 census is as high as 1028 persons per hectares particularly in the CBD area.4.9 Indore (IMC 1991) 77.9 68.0 65. With regards to the literacy rates.3 58. Although female literacy is lower the figures compared to for male Indore literacy city are noteworthy. This figure is too high even when compared to the population density figures of other cities in Madhya Pradesh State. According to 1991 Census.5 Literacy The literacy rate in Indore Municipal area in1991 was higher than the average all India literacy levels. the improvement from 68. Urban 2001 70. Table : 3 Literacy Rate Comparison % Literacy Total Male Female All India 2001 75. Therefore. there is tremendous pressure on the existing land and needs to be regularized in the development plan. and IDP 2011 Draft 4.It is also observed that the density is ranging from a meager 100 persons/hectare in the peripheral areas to as high as 1000 persons per hetare in the core of the city.1 84.6 Source: Census of India. the city had 900 females per 1.7 83.8 81. 17 . but it is lower than the other class I cities of the Region which have not been subjected to sudden migration and are socially more stabilised.1 88.6 Sex Ratio The city has shown a continuous growth in the female population.4% in 1991 to 74.000 population.000 males which is almost equal to the State average (Urban) of 912 females per 1. 4.9 74.

Ayurvedic and Unani medicines from roots and herbs were manufactured under state patronage.Economic Base of Indore city Indore is the largest city and is the business and trading capital of the state. The textile industry is presently on the decline and is being replaced by a variety of new manufacturing industries. Indore is a young city. and machinery are also manufactured there.7 Age Structure of the population About two fifth of population of Indore are children in the age group of 0-14 year.8 Social Structure As per the census 2001. Nearly 55% of its population is below 24 years of age. baskets.14% of the population was of Scheduled Caste Category whereas 3% of the Population was of Scheduled Tribes Category 5. embossing and engraving of gold and silver ornaments. manufacture of niwar. The working age population group (15-45 years) is about 56.7 per cent and only 8. shellac industry etc. The city holds a dominant position and is a vibrant center for trade and commerce. Indore has relatively good connectivity and has been the hub of trade and commerce. The migrant worker has a tendency to leave his family behind unless he is hopeful of obtaining a house within his rent paying capacity. 18 . not only for the state but also for western India. Old-time industries which flourished in Indore were handloom. metal utensils. With abundance of academic institutions in the city the teenager group is the prime consuming segment of population in the city. Today Indore can boast of a phenomenal industrial and business development. oil extraction by ghani. Still it is the one of the largest textile industry in India. Increased rate of house construction will certainly improve social and cultural life of the city.8%of the population in above 50 year of age group. Cotton textiles are the city's major product. chemicals. 4. Located at the crossroads of western and central India.A lower female ratio indicates difficult housing situation prevailing in the city. hand dyeing. manufacture of bamboo mats. but iron and steel. which is essential for creative and productive life. 4. It has one of the largest trans-shipment centers for truck transport.

confectionery. factories for asbestos products.4% in 1991.2 3.2 28.30-lakh workers in 1991.9 2001 5.30 33.6%) took place during the decade 1971-1981 followed (51.6 28.Apart from textile industry. which showed an increase from 54.8 1991 3. machine tools and accessories. Table: 5: Trend in occupational structure. The maximum growth (68. electrical machinery and appliances.2%) during 1981-2001.4 19 . The workforce increased from a size of 1.47 29. Indore has oil seed extraction industry. paper and straw board. It remained almost static between 1981-1991 in percentage terms.64% per annum during 1961-1991.4% in 1961 to 63.3 2.3 39. electronics goods.13 - 30. there is a distinct shift in workforce towards tertiary sector.0 Source: CTTS Report Consulting Engineering Services (CES) In terms of occupational structure.4 33.9% in 1991 and 30% in 2001. Indore Sectors 1961 1971 1991 Primary 2. Indore Year Workers WFPR Number in lakhs Decadal Growth (%) 1961 1. Table: 4: Growth Trends in Work force participation.13 lakh in 1961 recording an average annual growth rate of 3. The workforce participation rate (WFPR was 28. The share of secondary sector workforce is on a decline.2 Secondary 43.2 30. RCC pipes and poles. the residents of the city love to refer Indore as Mini Bombay.4 25.47 68. Indore Urban Agglomeration had estimated 3. Indore accounts for about one third of the total ‘Namkeen’ (variety of gram flour snacks) production of India.9 1971 1.16 51. bicycles and ready-made garments etc.0 1981 2. Due to its trade and industry.

Dominant sectors automobiles. fabrication and food processing. RCC pipes and poles. 137 and 67 small and medium units respectively. pulses industries.956-registered establishments (2000). recent years have seen a restructuring of the economy and a decline of traditional industries. with more than 120 large and 480 small and medium units. asbestos products. around 80 hospitals. machine tools.1Registered Establishments Indore Nagar Nigam had estimated 47. the financial sector and new higher tech companies have come to replace the older industries. 1670 educational establishments and nearly 80. chambers of trade and the business community reveal some major concerns for the 20 . 5. There are about 250 banking and insurance establishments. have now either closed down or restructured with considerable retrenchment of the workforce. Polo ground and Udyog Nagar with 1272. Sanwer Road.4 Source: CTTS Report Consulting Engineering Services (CES) 5. The dominant sectors are engineering pharmaceuticals. more than 7. live in government There are three main industrial areas within the city.4 63. However. many of the more traditional industries. Although they are outside the municipal area. readymade garments and jewellery. most of which were labour intensive. Of these while ‘producers’ accounted for eight percent. Discussions with city officials. In Indore. pharmaceuticals and textiles and include names such as Hindustan Motors.Tertiary 54.000 registered shops. Many of the industries are capital intensive and high tech. traditional industries were oil extraction confectionary. Commercial establishments are the largest employer. The maximum establishments were of food items (28%) followed by commercial services (15%) and textiles & cosmetics (12%) respectively. Eicher Motors and Navin Chemicals. There are two main industrial areas outside the city: Pithampur to the south and Dewas to the northeast. Trade and commerce. electrical equipments.000 hotels and restaurants. ‘retailers’ were 37 percent while ‘others’ were 44 percent respectively.these estates have a considerable impact on the economy. are engineering.2Trade and Commerce As with many cities. Many of the employees and particularly the managers and executives of these companies Indore including services with resulting demand for public and private services such as schools and hospitals. Indo Rama Synthetics.4 58.

Permission for the Zone has already been granted by the National Government and Madhya Pardesh has been State Industrial Development Corporation Ltd given responsibility. A feasibility study is being undertaken for a number of crops including vegetables. The long-term proposals for the SEZ include residential development as well as industrial and commercial. State policy regarding the SEZ is under preparation. The SEZ will give tax. wheat and seed spices. It is imperative for Indore municipality that proper master planning is undertaken for the Zone and the potential impact on the city is thoroughly assessed. there will be considerable pressure on Indore.3 Special Economic Zone and Agricultural Export Zone The most critical issue for the future economic for Indore is the development and growth potential proposed establishment of a special Economic Zone near Pithampur Industrial area. it is imperative for the Municipality that GOI plans for this type of zone are properly master planned and take due consideration of housing. Details of the proposals are being drown up and the proposed size and potential impact on Indore is uncertain. as the nodal agency. This Zone would offer incentives for processing and export of specific crops. with banking.4 Agriculture Export Zone There are also Central Government proposals for an Agriculture Export Zone near of some industries. labour. insurance. employment and 21 . due consideration needs to be that the benefits can be maximized and the Municipality has the capacity to meet the population and other resource pressures that the SEZ will entail. particularly for housing and public services. finance and other special incentives to enterprises establishing within the zone. However. An export-processing zone is also planned within the SEZ but plans are not yet finalized. partly due to power and water crisis. However if the SEZ is successful in the early phases. A total of 1038 hectares has been identified. 5. planning. Industrial growth is reported to be declining and hotels. of which 377 has been acquired. Again. despite these concerns. trade and commerce being the driving sectors. Some infrastructure work has been undertaken and the first phase is proposed to be developed in the next 3 years. In particular. 5. travel and tourism are affected. the overall picture is one of growth. road congestion (within the city) and difficulties in matching global competition.

5% belonged to transitional and intermediate poor households respectively. Among the BPL households instances of main income earner in informal employment was recorded at 91%. which was the highest among all the income groups. Among the EWS households nearly 89% were in informal employment.7 3. cycle parts. and among the HIG households it was lowest 20%. wood products.infrastructure requirements both for the Zone and for Indore. There are large number of manufacturing establishments. analysis reveals that the intermediate A further poor households had the highest proportion 91% of main income earners in informal employment.3 No. producing goods like cloth.7 4. Table:6 Summery of Employment by Income Group EWS LIG MIG HIG All Income groups Over all Avg.3 6. electrical goods etc.5 8 6.8 5. building material. chemical.5 3. 5.6 Employment As per the sample survey undertaken for the preparation of CDP in Indore.8% belonged to BPL households. Only 5.4% of all the households in Indore reported that the main income earner has more than one job out of which 10. transport equipment. 5.3 7. Among the transitional poor and the Core poor households it was also as high as 81% and 89% respectively.7% households had their income earner in informal employment.5 Industries Expanding industries and industrial development in the region has also given to this city a status of an industrial center. Out of the households were the main income earner had more than one job nearly 23% and 7. 63. HH Size 5 6. The traditional industries are being abandoned due to various reasons such as Infrastructure crises.8 4 persons of working age Total Income Earners 22 . paper and paper products. of 2. iron and steel.

7Income Profile The mean household income varies considerably across the different income groups and so also the expenditure pattern.2 89 68 38 20 64 38 formal % Of which informal % % HHs Main Income Earner Female % HHs with Main Income Earner in Informal Employm ent The core poor household reported to have the lowest 3. only 2% of the all the surveyed households had income earners below the age of 14 years. In comparison to the other poor households the core poor households had the lowest 3.8 2 5 3.2% number of working children under the age of 14. The BPL food.1% and 17.5% of them .4 5. It was observed the MIG.Among all the households only 5. 5.3 5. Expenditure on education was 23 . LIG and EWS households spent more than 50% of their total expenditure on food.3% had main income earners who were females out of them 25% belonged to BPL households In Indore.5%) households had an expenditure of nearly 67% among the on HIG households. rising to more than 70% of monthly expenditure amongst core poor expenditure of nearly 67% on food.9% belonged to transitional and intermediate poor households respectively. Among the child laborers 34. Total monthly expenditure ranges from 63% of the total income for HIG households to 97% for BPL households. Core poor household expenditure exceeds monthly income by 16%. Expenditure on education was observed to highest (14. Nearly 45% of the child laborers belonged to non-poor households.Of which 10 25 50 76 35 61 90 75 50 24 65 39 10.4% number of such instances and non-poor households had 66.

observed to highest (14.5%) among the HIG households against a city level average of

and the lowest 6.7% recorded amongst







households. Citywide

was recorded at 1% of the total household expenditure with the

EWS households spending the highest 1.6%. Expenditure on solid

waste /


collection was observed to be very low 0.1% among all the households.
A monthly saving was observed to be highest among the HIG households 87%
compared to an average of 39% for the city. Nearly 17.5% of the BPL households reported
that made savings every month. Among the poor households 27% of the transitional poor,
19% of core poor and 17% of the intermediate poor households said they made savings
every month. Loan from informal sources was highest among the



16%compared to an average of 13% for the city. The survey data also revealed that nearly
12% of the BPL households took loan

form informal sources.




financial institution was found to be highest among the HIG households 22% and lowest
among the core poor households 2.3%.

Indore is the business and trading capital of the state. The city holds a dominant

position and is a vibrant center for trade and commerce.

It has a firm industrial base too. The textile industry is presently on the decline

and is being replaced by a variety of new manufacturing industries. Still it is the one of the
largest textile industry in India.






in Indore City is 30%, while 63.4% of the

Work Force is employed in Tertiary Sector.





Special Economic Zone and Agricultural Export Zone

proposed near Indore which will provide incentives regarding taxation finances and promotion
in respective zones.

39% of the income earners are engaged in the informal sector, which is a sizable

amount at the same time 38% of the households, have its main income earner in informal


The Average Household income in the all income groups of the city is Rs. 5272 per

month while in case of BPL families it is Rs. 2119 per month.

The average monthly expenditure of the Poor category households is more than

Household Income (118% in Core Poor) while it is lowest in case of HIG with 65% of the

The average monthly expenditure of the Poor category households is more than

Household Income (116% in Core Poor) while it is lowest in case of HIG with 63% of the



is a noticeable fact that the expenditure on water was highest between

LIG and Core

poor households (1.6%) with a citywide average of 1.0% across

all income groups.

7.Water Supply
7.1 Problems and Issues

The Present water supply is only 192 MLD achieving per capita per day supply of 80
Litters, which is not adequate. With the completion of Narmada Phase III, currently under
execution the supply available will be 585 MLD, which is sufficient for the population
envisaged in 2024 at 135 LPCD.
 hough the Narmada III phase will have sufficient supply, bringing water from Narmada
which is 70kms away will be a costly affair hence the local alternative sources such as
Yashwant Sagar and Bilawali tank has





supplement the water supply, which can be done by taking necessary


fullest capacity to




augmentation. The other sources such as wells and baudis can also supplement to the water

Though the Water Source will be augmented to the required demand with just 54%
Network Coverage of Piped Water Supply, the Water Crisis in Indore will still prevail.

The sources have the capacity to reach the demand but the water supply network is
inadequate to cover the whole city. The Water Supply








maximum Population.

Improvement and Repair of Existing network to increase its efficiency while curbing the
losses incurred as the present water supply Network is highly inefficient due to Leakages and
Dilapidated Network.
There is no accountability of water produced at source and Treatment Plants as
as the water consumed


at consumer connections.

Problems and Issues
The Sewerage network in the city lacks in the coverage of entire city. Other


have septic tanks, which dispose its effluent into open drains ending in polluting the





existing sewerage network is very poor .Out of 80 MLD

sewage generated by population currently connected to the

main sewerage network

only 60MLD is able to reach the STP at Kabit Khedi.

The low efficiency of the network is due to Leakages, Choking and Silt deposition. Both

the Old Sewerage Network



recently constructed




project by IDA are in bad condition for want of regular maintenance.

Due to inefficiency of the discharge trunk network the total capacity of the STP (90

MLD) is not utilized.

7.3Solid Waste Management
Problems and Issues





Waste collection mechanism is low, where

70% of the Solid Waste generated is being collected and disposed.
The Solid Waste Management Mechanism



Primary collection (70%)

as well as inadequate Labour (Safai Karmachari’s SK’s)
The mechanism also lacks in the synchronisation

between the collection storage and

transportation of Solid Waste Management

The Waste is not segregated as Organic and Other Wastes.
The Municipal Corporation doesn’t have Biomedical waste Disposal System.

7.4Storm Water Drainage
Problems and Issues
Only 350kms of the 1710kms of the roads have Storm water drains. Most of the roads in
the city don’t have drainage.
The nallahs and river tributaries have lost their discharge capacity, of storm water
discharge. There is an urgent need of this nallahs and river to be canalised, increase and
protection of their cross section by constructing



retaining walls to improve their water carrying capacity.

Problems and Issues
The NH’s and SH’s constitute more than 50% of the incoming and out going traffic in the
city. These Roads carry major Traffic load and have insufficient carriageway



respect to the traffic volume they carry. Important road facilities such
as medians, footpaths etc. are also non-existent on most of the roads.

The Road network of Indore lacks in the mobility towards connecting the newly



and outgrowths. There are several such missing links.

The railway track virtually divides the city in to two parts acting as constraint to the

mobility of transport network in the city. Such roads need over bridges and the existing over
bridges are narrow leading to bottlenecks in the traffic flow.

The mobility of the traffic is also retarded




numerous junctions with

high traffic intensity, Heavy vehicle turning movements and lack of channelisation of the

Administration and IMC by setting Indore City Transport Services Limited (ICTSL) to provide high capacity low floor busses on about 18 routes in the city.6Environment Problems and Issues I t is observed that the Maximum Concentration of suspended particulate matter in some areas of Indore and in many transport corridors of the city surpasses the threshold limit of 200 ug/cum. Only recently an unique initiative have been taken up a fully Govt. 28 . 7. East west Green Transport corridors have a heavy flow. Khandwa Road. The Public Transport Network till recently was grossly inadequate. Generally trucks are parked in an unorganized manner in Lasudia . There is a need for taking appropriate measures for constant monitoring of emission from vehicles and penal action against polluting vehicles to reduce automobile pollution in the city. There is huge scarcity in terms of green and recreational areas in the city. There is no organized truck terminus facility in the IMC Area. The surface water bodies in the city too need the capacity enhancement and control of pollution that can be done in an integrated manner with overall conservation.Many areas in the city seriously face parking problem. owned Company named by Dist. The transport terminals  drastically lack facilities. with the carriage way  being utilized as parking reducing the capacity and ultimately increasing traffic congestion.. Indore doesn’t have Large scale green areas. Palda. The from urban environment within adequate green spaces increases the threats environmental pollution. Some new Parks and Gardens have to be developed to address to the environmental pollution situation. Chandan Nagar and Sanwer Road Industrial Area . The setup presently lacks in infrastructure facilities such as depots and terminals.  The Bus terminals are located in the densely developed areas causing traffic congestion. which can be seen as need for Mass Rapid Transport System.

1956.7 Inner City Problems and Issues In spite of the decentralization of the commercial centres to the outskirts of the city. High Court Building. Squatters and the unauthorized colonies constitute about 50% of the housing in Indore. 7. Need for Conservation and improvement of the structures for adaptive reuse as exhibition halls and recreational spaces to facilitate their regular maintenance. like Rajwada. Harsiddhi Temple etc. and BPL Category.9Slums Problems and Issues T  here is about 40% shortage in housing supply in Indore City. while 9% of the households have got Patta from Government of Madhya Pradesh. EWS 21% BPL 9%). Lalbag Palace. 35% of the population and about 118000 households live in slums notified by Madhya Pradesh Slum (Improvement and Clearance) Act.8 Urban Heritage Problems and Issues Urban image of the city is a collective visual appearance contributed by natural and man made elements. The inner city areas have very narrow streets. Gandhi Hall. Pandarinath Temple. Indore Museum. (LIG 40%. Holkar’s Chatris.7. which are being encroached various by street activities and the parking facilities. 29 . Informal Housing such as Slums. 70% of the households belong to LIG and EWS. The inner city lacks drastically in terms of organized parking areas. 7. the old city portion is still the commercial heart and hub of the city. 25% of the household in the City doesn’t have legal occupational right. The majority of housing shortage is for urban poor.

Public Toilets Community Hall etc. Many of the public toilets are not maintained properly leading to non-use of this already created facility. 50% of the population lives in informal housing in the absence of basic services and unhygienic conditions. 9. strong presence in textiles and ready-made garments. pharmaceuticals. There have been number of Government interventions towards implementation of various scheme meant for betterment of the slumcommunity but they have been lacking an integrated approach in solving the problem. textile.  Indore faces severe power and water crises. It is the hub of Trade and as Industrial activities like automobile.Strengths of the City Indore serves as a commerce activities as well commercial capital of the state.IIT and many other professional Institutes With such Information professional Technology institutes Indore has a potential to grow in and management sector. The strategic Location of the city in the Road to other parts of country is best central India with suited as intermediate excellent connection by growth center and distribution hub.  Lack of water sources in near proximity is one of the major constrain of the city implying in getting water from Narmada river 70Km away. which is a deterrent to setting up new Industries.  Indore lacks in high quality urban infrastructure such as roads. It does not lie on the major railway network.Constraints of the City Indore though well connected Road  network has limited connectivity to Railway Network. 8. which strengthen the economic base of the city. Indore is also developing as an institutional hub mainly due to presence of the Institute of National repute like Indian Institute of Management (IIM Indore).Only 40% of the slum population has Water Supply. water supply sewerage etc. garments and other industries. Proximity to cotton belt. 30 .

with particular reference to the role of Indore Municipal Corporation (IMC) vis-à-vis other agencies involved in the provision and maintenance of infrastructure and services. The CDP also provides information on the city’s institutional set-up. Some of the key issues identified in the CDP and further addressed in the strategies are (a) High population density Indore registered during the last Census decade a high population growth of 40%. and Krishi Upaj Mandi Samiti. and housing and slums. has pointed out to the fact that the growth of Indore during 1974-1991 was below the density proposed in the Development Plan (19741991). These are the Indore Development Fund limited which is owned by IMC and had been formed to mobilize funds for repair and construction of roads in the city and Indore City Transport Services which is a fully government owned company. a n d the high density in some areas reflects skewed spatial distribution-dense pockets in the CBD area and in the slums coexisting with sparsely populated areas mostly near the fringe. with more than 63% of employment in the tertiary sector. There are special agencies for the provision and management of city’s transport. however. The CDP explains. The city has a number of industrial establishments and a proposed SEZ. The CDP has provided a detailed account of the finances of the Municipal Corporation of Indore. The CDP identifies the gaps and deficits in city-based infrastructure concerned with several of these sectors. 31 . Madhya Pradesh Town and Country Planning Department. District Urban Development Authority. Indore is known as the business and trading capital of the state. Madhya Pradesh Public Works Department (MPWD). (p.25). these being the Indore Development Authority (IDA). and has a very high population density ((1028 persons per hectare in Indore planning area (p. This has caused tremendous pressure on the existing space. infrastructure. Madhya Pradesh Housing Board (MPHB). environment. in detail. set up to provide an efficient transport system in the city.Chapter-2 Indore City Development Plan: An Appraisal The City Development Plan (CDP) of Indore gives a comprehensive account of Indore’s demographic and economic characteristics. land-use. The CDP.26). the role of agencies involved in urban development.

The city lacks in terms of green and recreational spaces. Discharge of untreated domestic and industrial wastes has resulted in pollution of the surface water bodies in the city (p. 32 . 107) and another 15% in unauthorized colonies. with inadequate infrastructure facilities. According to the CDP. (d) Housing shortage and slums 50% of Indore’s population have access to only informal housing in the form of squatters and unauthorized colonies. 35% people live in slums and squatter settlements (p. 50% of water is unaccounted for (UFW). the main cause of air-pollution is vehicular traffic. 51). The suspended particulate matter (spm) in the city is in excess of the threshold of 200 ug/cum by Indian standards (p. high vehicular ownership.(b) Lack of adequate infrastructure The city is characterized by huge infrastructure deficits i) Water supply is available for only 45 minutes on alternate days. (ii) Only 55% population has access to sewerage network and 80% of sewers are underutilized for want of maintenance (iii) Only 20% of roads have storm water drainage (iv) Solid waste collection suffers from poor handling and management (v) Narrow road widths. (c) Environmental pollution and lack of green cover One of the most critical problems faced by the city is urban environmental pollution. including 40% transmission and distribution losses. 55-56). Average water supply is 80 lpcd. covering 54% of the city population. The CDP points out that infrastructure has caused adverse impact not only on the q u a l I t y of life but affected the growth of industries and trade in the city. and a heterogeneous mix of transport modes resulting in traffic congestion problems and a high accident rate. 58.

building intensity. lack of co-ordination and overlapping jurisdiction The CDP had made specific references to the areas of fragmentation between the Municipal Corporation and development related agencies like IDA. Issues pertaining to governance and institutional set-up are separately highlighted in the CDP. The key stakeholders involved in the consulting process were the MPs. involving meetings at Zonal level (Indore has 12 zones). the Municipal Councillors. 3. A questionnaire was circulated which was filled in by stakeholders for eliciting their views on the different aspects of city’s problems and development. and parking. particularly regarding the utilization of land. minimum restructured environment. commerce. corporate bodies in industry. and other sectors. NGOs. MLAs. It focuses on the first phase of the target for sustainable and harmonious development by 2021.MPTNCP. Most of the buildings in the CBD area are said to have completed their life span. and other stakeholders. and MPHB. The CDP has been prepared keeping a view the deficiencies and requirements till 2021. Lack of co-ordination is said to be the principal reason behind the many problems that Indore City is faced with. and citizens of Bhopal. The CDP is formulated on the basis of a “participatory process” that began in August 2005. The CDP relates to the entire planning area of Indore for a period of seven years from 2006-2011. CBO’s. and parastatal agencies. representatives of the government departments. but these are not linked to their impact on service provision or land development. The vision consists of the following elements: 33 . basic services to the underprivileged with functionally sustainable development and dynamism of growth which will pave the way for it becoming a world class commercial city”. The Vision identified for the city is as under: “Indore shall enter an era of prosperity with spatially improved urban infrastructure to achieve better lifestyle.(e) Inner city congestion The CBD has heavy population pressure and is suffering from congestion in terms of traffic. (f) Institutional multiplicity.

Water supply Sewerage Solid Waste Management Transport Slums 100% population coverage and 24 hour water supply by 2010 100% population and area coverage by 2020 Development of a comprehensive system with modern and scientific methods by 2011 Efficient public transport. mass rapid transport system.understand language. It would then be easier to see the links between the vision and the strategies. housing for all means shelter for urban poor and extension of basic services to them. introduction of metro-rail. the proposed constituents are proper road network. these are Although linked with the issues identified in these sectors. Strategies Strategies are formulated after identification of sector-wise goals for the year 2021. It will be useful if the IMC would describe the vision in simple. easy-to. elevated road intersections and flyovers to remove congestion Slums less city by 2015 Environment Clean and environment friendly Indore by 2021 The CDP identifies strategies and detailed projects for each of these targets. and disposal of solid waste. bridges and flyovers. and heritage conservation means improvement of old city and conservation of cultural and built heritage. healthy community life is sought to be achieved by focusing on water supply. the achievability of these 34 . 4. sustainable city is visualized in terms of control of air and water pollution and green Indore. and road safety. The vision is somewhat difficult to adequately understand on account of the use of words like “spatially restructured environment” and “functioning sustainable development”. for improved mobility. complete connectivity and treatment of sewage. access to public transport.(a) Healthy community life (b) Improved mobility (c) Housing for all (d) Sustainable city (e) Heritage and inner city area Conservation These elements are elaborated in the CDP: for example.

5. general Until 1991. the Indore Development Authority (IDA) proposes to construct dwelling units for EWS and LIG category on 20% of land of its Town Development Schemes. The CDP identifies “Construction of Indore Municipal Corporation Building” as a project under Urban Renewal. development of 25000 plots for the urban poor. inspite of non-listing of approximately 130. It is 35 . The IMC has a modest operating surplus but an overall deficit. 109). The CDP mentions that there are 1.000 need rehabilitation. sanitation/surcharge tax. when capital expenditures are taken into account. These deficits have been continually mounting. water tax (for a connection).18.000 slum households in the city out of which 86. To control the growth of slums.000 households. general lighting tax. the ARV method has been changed to a zonal area-linked system involving self-assessment of annual ratable value by the assesses. considering other options for improving mobility. The finances of the Indore Municipal Corporation (IMC) are detailed out in Chapter 16 of the CDP. and an education cess.The IMC levies a property tax. According to the CDP. This will benefit around 80. and about 40. property tax was levied on the ARV (letting value) of a building/land at rates varying between 6-10%.000 slum households are expected to be provided with improved infrastructure services.requires further consideration. For instance. Water billing is on a flat rate. Indore may also like to re-evaluate the mobility strategy in the light of the GOI urban transport policy. The CDP envisages making provision for about 15000 dwelling units for slum dwellers either to be relocated or rehabilitated at the same place. A similar observation is made for sewerage. relocation and infrastructure provision (p. Strategies for Slums The vision with regard to slums in Indore is – “Slum less Indore by 2015”. from a stage where the city has only 45 minutes of water supply and 54% population coverage.000 properties with the IMC. even when there is partial metering. there has been an improvement in property tax collections on account of self-assessment. Now. to achieve 100% coverage and a 24 hour supply would require massive efforts in terms of investment and institutional capacities.

(a) Roads.also necessary to point out that revenue grants in case of IMC are in excess of “own revenues”.53 or 34. detailed works are given (p. (d) Storm water drainage including drainage rehabilitation (e) Solid waste management 36 . awareness campaign for recycling and reuse. The CDP has given “key financial indicators” of the IMC. a few of which are given below: Own revenues as a % total revenue income 46. transport and drain work (b) Water supply (including water audits) (c) Sewerage consisting of augmentation and rehabilitation of the system.51% Share of establishment expenditure as a % of total revenue 35.116). regularization of the illegal outfalls. The FOP is developed under three scenarios: (a) Base case scenario (b) Full investment scenario (c) Sustainable investment scenario The IMC has given an action plan which gives details of projects for JNNURM funding.67% expenditure Annual growth in O & M expenditure 15.42% The CDP has given a financial operating plan (FOP) for the period 2005/06 to 20011/12. based on the actual finances of the IMC. 85. The Plan identifies the following heads of projects. and within each. etc.97% Per capita outstanding debt liability as a % property tax demand Rs.

(f) Internal Earmarking 37 . including regularization of illegal colonies and un authorized layouts (h) Environment (i) Heritage structure (j) Special projects City-Level Reform Agenda (a) Accounting Reform The Indore Municipal Corporation follows a double entry. No annual timetable is provided.removal of encroachments. (g) Housing for the urban poor. (d) User Charge Operation and maintenance charges are proposed to be covered only in the fifth year of the reform. 224000 are listed with the IMC and collection to demand ratio is 41%. and several other areas. i. (c) Property Tax Reform The IMC has proposed that 85% collection will be achieved in the second year. decongestion of the CBD. of the total of 350.e.000 properties.. (e) Services to the Poor According to the reform agenda.assetrehabilitation.inter-alia.(f) Transportsystemcomprising. The work of GIS application has been awarded to a private company. No timetable is provided. water tax. 2006/07. building permission. traffic management. births and death certification.It should be noted that currently. (b) E-Governance Application E-governance applications have been extended to property tax. accrual based accounting system. services will be reached to the poor only in the 5th year.

(e) Public Disclosure There is a provision for “social audit” in the Municipal Acts. This provision is proposed to be expanded in year 2 and 3. 38 . State-Level Reform (a) Implementation of the 74th Constitutional Amendment According to the reform agenda. No yearly plan is given. 1976 The Act has been repealed. except for the constitution of the Metropolitan Planning Committee (MPC). All staff concerning the function have been transferred to the ULBs. (b) Urban Land (Ceiling and Regulation) Act. Also. Optional Reform There is no explanation of what will be done in the different years. all components of the 74th Constitution Amendments have been implemented. with no indication of the actions to be taken form year 1. what these reforms are likely to be. These are expected to be transferred between the 3-5th year of the agenda (not clear-whether it refers to the MPC or de-facto transfer of urban planning functions). (c) Rent Control Reform The State government plans to undertake rent control reforms over a four-year period. However. the size of the problem is not stated. These are planned to be reduced to 5% over a 5year period. (d) Stamp Duty Rationalization Stamp duty rates vary between 8-10%. is not mentioned. (d) Community Participation Law It is planned to be taken up in the 3rd year. all but urban planning functins have been transferred to the ULBs.According to the agenda. internal earmarking (without giving any figure)has already been done.In respect of the de-facto transfer.

Madhya Pradesh Housing Board (MPHB).There are special agencies for the provision and management of city’s transport. infrastructure. These are the Indore Development Fund limited which is owned by IMC and had been formed to mobilize funds for repair and construction of roads in the city and Indore City Transport Services which is a fully government owned company. (ii) The role of the IMC in the planning function – to what extent the IMC can be involved. ULBs will be associated with this activity from year 3 onwards. Madhya Pradesh Public Works Department (MPPWD). The CDP explains in details the role of agencies involved in urban development. these being the Indore Development Authority (IDA). environment. City Level Reform Agenda The City Development Plan (CDP) of Indore gives a comprehensive account of Indore’s demographic and economic characteristics. The CDP identifies the gaps and deficits in city based infrastructure concerned with several of these sectors. Madhya Pradesh Town and Country Planning Department. set up to provide an efficient transport system in the city. (d) Water Supply It will be transferred to municipality in year 7 where it is not a municipal function. The CDP also provides information on the city’s institutional set up . Krishi Upaj Mandi Samiti. District Urban Development Authority (DUDA). The CDP has provided a detailed account of the finances of the Municipal Corporation of Indore. 39 . (iii) Rehabilitation of slums (iv) Institutional overlap (v) Formulation of reform agenda without detailing out the approach. with particular reference to the role Indore Municipal Corporation (IMC) vis-a vis other agencies involved in the provision and maintenance of infrastructure and services.(e) City Planing Function This function is currently being performed by the State-level/Town Planning Department. and housing and slums. (e) (i) Areas needing consideration Achievability of the goals with the tenure of the JNNURM when considered in relation to the existing levels. land use.

but these are not linked to their impact on service provision or land development. representatives of the Government departments.Indore is known as the business and trading capital of the state. parastatal agencies. and other stake holders. corporate bodies in industry. involving meetings at Zonal level (Indore has 12 zones).Lack of coordination is said to be the principal reason behind the many problems that Indore city is faced with. The CDP is formulated on the basis of a ‘participatory process’ that began in August 2005. Issues pertaining to governance and institutional set-up are separately highlighted in the CDP. The city has a number of industrial establishment and a proposed SEZ.Some of the key issues identified in the CDP and further addressed in the strategies are: (a) High population density (b) Lack of adequate infrastructure (c ) Environmental pollution and lack of green cover (d) Housing shortage and slums (e) Inner city congestion (f) Institutional multiplicity and lack of coordination and overlapping of jurisdiction. and other sectors and citizens of Indore. MLAs. with more than 63 % of employment in the tertiary sector.The CDP relates to the entire planning area of Indore for a period of seven years from 2006-2011. The CDP has been prepared keeping a view of the deficiencies and requirements till 2021.and MPHB.It focuses on the first phase of the target for sustainable and harmonious development by 2021. the Municipal Councilors. A questionnaire was circulated which as filled in by stakeholders for eliciting their views on the different aspects of city’s problems and development. The key stakeholders involved in the consulting process were the MPs. MPTNCP. commerce. CBOs. 40 . NGOs. particularly regarding the utilization of land. The CDP had made specific references to the areas of fragmentation between the Municipal Corporation and development related agencies like IDA.

housing scheme for urban poor.2745 crore City Development Plan in March 2006. weak institutional and financial frameworks constraining adequate and sustainable service delivery. This cell works under the overall supervision of Indore Municipal Commissioner Project Implementation Unit : Indore Municipal Corporation. This chapter deals with the status of JNNURM project in Indore city. 1.Chapter-3 Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in Indore City The Indore Municipal Corporation (IMC) was the first local body to present a City Development Plan to before the Ministry for Consideration under JNNURM.Scope of Mission – • 63 Identified Cities – • Urban Infrastructure & Governance (UIG) Sub-Mission • Basic Services for the Urban Poor (BSUP) Sub-Mission • Other Cities & Towns – • Urban Infrastructure Development in Small & Medium Towns (UIDSSMT) • Integrated Housing & Slum Development Programme (IHSDP) 41 . In order to implement the project in the city a JNNURM cell was constituted consisting of 7 core staff belonging to different specializations. 2. public transport. 60+ million slum population. Indore 1. drainage system. The Ministry had approved the Rs. developing green belts etc. sanitation.2Urban Challenges: Inadequate urban infrastructure. The plan included improvement of water supply system.Urban System in India • Second Largest System Globally • Urban Population: 315 million • Urban Decadal Growth: 25-30% • GDP contribution 50% + 1. water. fast track development of infrastructure & basic services to the poor including housing & slum up gradation. conservation of heritage buildings.3Addressing Urban Challenges Jawaharlal Nehru National Urban Renewal Mission Launched on 3rd December 2005 for Reforms-linked. construction of roads and culverts. Jnnurm Cell. demand driven.

• Linking asset creation and asset management in cities through reforms for long-term sustainability.000 Crore 2.2 JNNURM – Mission Approach • City Development Plan • Detailed Project Reports • Release of Central Assistance for Leveraging of Funds • Pursuing Urban Reform Agenda • Incorporating Private Sector Efficiencies JNNURM: Two-track strategy UIG & BSUP UIDSSMT & IHSDP Track. outgrowths & urban corridors. • Special focus on urban renewal. i. • Planned development & dispersal of growth in cities.I Track . • Ensuring adequate funds to meet the deficiencies in urban infrastructural services.Mission Period: 7 years (2005-2012) Government of India Grant: Rs.II For 63 Identified cities For Other cities JNNURM: Reform Agenda Mandatory reforms: 42 . • Scaling up delivery of civic amenities & provision of utilities with universal access to the urban poor. redevelopment of inner (old) cities area to reduce congestion.e. and • Provision of basic services & improved housing to urban poor including security of tenure at affordable prices 2. peri-urban areas.1JNNURM – Key Objectives • Focused attention to integrated development of infrastructural services in cities.50.

. 43 . • Implementation of Seven-point Charter i.e. ULB level & parastatal agencies All the mandatory / optional reforms shall be completed within the Mission Period. improved housing. Reform at state level Optional Reform 1. Common at state. The prominent pro-poor initiatives under JNNURM include: Internal earmarking within urban local budgets for providing basic services to the urban poor so that adequate funds are made available for undertaking development programmes for the poor.1. Reforms at ULB level & parastatal agencies 2. 2. the provision of basic services to urban poor including security of tenure at affordable prices.3Pro-poor Reforms • The BSUP and IHSDP of JNNURM contemplate certain key reforms in propoor governance. water supply.

93 under PPP 7 Houses for slum dwellers phase II 81.e. • Houses at affordable costs for slum dwellers/urban poor/EWS/LIG categories. Of parking structures at 20 locations IMC 61. child care centers etc. housing and infrastructure projects in slums • Projects involving development/improvement/ maintenance of basic services to the urban poor • Slum improvement and rehabilitation projects • Projects on water supply/sewerage/drainage/community toilets/baths etc.sanitation and ensuring delivery of other already existing universal services of the Government for education. education and social security schemes for the urban poor Table: 1 Projects Sanctioned (IMC) SN Project Name Agency Project Cost (in crore) 1 Augmentation of Yeshwant Sagar Water supply 2 Indore sewerage project 3 Construction of 8 important roads 4 Houses for slum dwellers 5 Solid waste management project 6 Const. • Construction and improvement of drains/storm water drains • Environmental improvement of slums and Solid waste management • Street lighting • Civic amenities like community halls.54 44 . i.4 Basic Services to the Urban Poor Admissible Components • Integrated development of slums. Earmarking at least 20-25% of developed land in all housing projects (bothpublic and • private agencies) for EWS/LIG category with a system of cross subsidization. • Convergence of health. 2. health and social security within the Mission period as per agreed timelines.

752 660 2 Nut Colony 1.93 4132 Colony 12 45 . No 134) IDA 3 Construction of M.947 279 4.706 308 10 Bheem Nagar 1.06 264 Nagar 8 Lodha Colony.529 61. Road) IDA / ICTSL 2 Housing for Urban Poor (Sch.215 352 9 Jansewa Nagar 1.7 664 5 Sanjay Gandhi Nagar 1.75 176 Total 18.145 269 4.832 176 Harijan Colony 0.B.055 217 9.991 256 11 Safai Karmachari 0.3 271 5.835 290 3.745 236 2.479 367 2. (Feeder road to BRTS) IDA 4 Construction of Piplyahana Link Road IDA 5 Railway Over Bridge at Juni Indore Crossing IDA 6 Procurement of Buses ICTSL Table: 3 BSUP SITES IN INDORE INSITUTIONAL DEVELOPMENT Sr No Name of Resettlement Area in Density Estimated No of Dwelling Cost of Const.03 249 3.555 311 7.087 161 9.746 151 4.709 242 4 Jeevan Ki Phel 3.043 264 7 Prakash Chandra Sethi 1.605 178 4. 1. 9 Road.Table: 2 Projects Sanctioned (IDA/ICTSL) SN Project Name Agency 1 BRTS Corridor Pilot Project (A.034 484 6 Harsiddhi Slum 0.R. Units Site Hectare 1 Panchsheel Nagar 4.225 286 3 Adarsh Bijasen Nagar 0.

0% under nagar (652 /30.m. .Rs. Relocation work for existing hutment started. strong oppose by beneficiaries .30.m Area of Toilet : 02.095.U. Reasons for delay Delay due to in-Situ work i.m Area of Balcony/Verandah : 01. : 12.818.00 Development cost per D.50. .065.00 Total Cost per D.00 Area of Bed Room 34.13 sq.m Area of Multipurpose Room : 08.Dwelling Unit in Slums Dwelling Unit Size - Cost of Dwelling Unit .11 Completed 240 Progress Unit) - packages 2 Units under progress Aheerkhedi 08/12/09 07/12/11 1144 Units under progress (1144 Unit) 3 Packages yet Bheem Nagar 24/06/10 to commence 4 30% 23/12/11 (256 Unit) Work Order Issued.Rs.m Area of Kitchen : 02.m The scheme will result in ƒ Increased open spaces ƒ Permanency of structures ƒ Improved aesthetic character Table: 4 Physical Progress Basic Services to Urban Poor S.e.75 sq.70 sq.52 sq.Rs. Site overlapping due to increase in Road width in Master Plan for NHAI 46 .19. 100% land is not available for const.1.00 sq.06.1.n Parameters Description of Milestones as per packages PERT chart Completion status Progress Remark in Units In % Start Date End Date 1 Completed Nil - - - - Packages Panchsheel 02/11/07 01/11/09 304 Unit 50.U.88 sq. .

5 Challenges Planning: – Lack of modern planning framework – In situ Development – Preventive Measures – Establishment of Project Implementation Unit – Community Participation Financial: – Poor access to micro finance and Loan Access for the beneficiaries.03 hectare land of Khasra no 454/1/1 & 11. – Finance of urban local body – Lack of PPP – Less Generation of Revenues needed to renew infrastructure Service Delivery: – Escalation in Construction Cost for Dwelling Units. allotted 8 acre land at gram Nainod & work started for Const. Basic Services to Urban Poor Phase II 1) Govt. of 1144 Dwelling units at Gram Bada Bangada. 2. – Social Factors – Involvement of Civil Society Organisations Environment: 47 . of 968 Housing Units out of 3000.87 hectare land at Gram Bhicholi Mardana of khasra no 313/1/1 3) Tender floated for the Const. 2) Nazul Department has issued Press Notice regarding allotment of Land at Gram Bhicholi Hapsi for 10. – Limited awareness on Commitments – Financially and environmentally sustainable services – Recovery of operations and maintenance costs – Dependency on the government for finance – Higher Financial Contribution of Beneficiaries – Convergence of Existing Initiatives of other Deptartments. Stay given by court and Tenders not Receives even after issuing NIT 5 times in Remaining sites.Project & one site is coming under River Side Corridor.

56 23.2011 Due Construction of 8 40.80 1.2011 _ BRTS 98.42 4.83 March.00 March.83 50.31 3.34 17.58 178.40 35.2011 6. Indore 48 .2011 Due 56.45 34.83 40.66 6.17 153.75 23.48 _ _ Housing for poor in 12.69 2.00 9.2011 _ 43.25 32.88 12.56 Feb.31 6.– Deteriorating urban environment Table: 5 Review Report of JNNURM in Indore city as on January 2011 Project Name Approved Received Spent amount (Rs inamount (Rs inAmount(Rs in Completion Status date Cr) Cr) Cr) Yeshwant Sagar 23.91 19.71 Nov.39 _ 19.45 64.80 _ _ 81.74 13.2011 _ Sewage Project 307.31 _ Roads Houses for slum dwellers Solid waste management Construction of Multi-level parking House for Urban poor Scheme No134 Construction of MR9 Pipliyahanna Link Due Road Juni Indore railway over Bridge Source: JNNURM Cell.00 _ Due 39.00 June.54 19.75 26.02 29.00 Completed _ 62.19 Dec.

This is facilitated by Section 243 (W) of the Schedule th 74 of the Constitutional Amendment Act. tolls and fees in accordance with the procedures subject to limits. Now ULB’s are entrusted with the functions listed in the Twelfth Schedule of the constitution or Section 243 (W) of the Constitutional Amendment (74th) Act. 1992.. 1992 has imparted constitutional status to Urban Local Bodies and has assigned appropriate Urban local bodies with the State functions revenue and powers. when the urban local bodies continued to be under the control of state governments especially for their finances. This is unlike earlier. Functions and Powers In conformity with the 74th CAA. collect and appropriate such taxes. industrial and commercial purposes  Public health.2Finances and Taxes The74th CAA also provides for the constitution of a State Finance Commission (SFC) to review the financial position of the municipalities and make recommendations. 1.Chapter-4 Current Status of the ULB in Indore Urban Local Bodies and New Context of Local Government The 74th Constitutional Amendment Act.twelth Schedule (Section 243 W -74th Constitutional Amendment Act)  Urban planning including town planning  Regulation of land-use and construction of buildings  Planning for economic and social development  Roads and bridges  Water supply for domestic. Urban local bodies were made responsible with additional powers to play a key role in the preparation of local development plans and programmes for ensuring social justice as envisaged in the Twelfth Constitution. sharing ensuring etc. of the Madhya Pradesh Municipal Corporation Act. with The relationship of respect to their timely and regular elections and arrangements for have constitutional backing. Article 243-X of the Constitution provides the State legislature to authorise a ULB to levy. 1992. 1956 were amended. sanitation conservancy and solid waste management 49 . 1. of now functions Governments to them. duties.

Indore Municipal Corporation. water drainage. Trade and Commerce were given leverage to strengthen the city economy to ensure a positive growth. Indore was a small town. In authority to initiate scientific planning and 1910. 2.Nodal Agency 2. the then rulers of the Indore State. In 1906. formation like of With the the Municipality.Piped water supply system was established at the turn of the century to cope with the demand of the city. Fire services  Urban forestry. The municipality was also given enough management. gardens and playgrounds  Promotion of cultural. the Holkars. In 1870. Despite it's prosperity till 1870. educational and aesthetic aspects  Burials and burial grounds. when the capital of Holkars was shifted from Maheshwar. The 74th Constitutional Amendment Act lays specific emphasis on Urban Environment Management and Integration of Rural and Urban Development Plans in any district or metropolitan area.1History of Municipal Government in Indore Before 1818. prevention of cruelty to animals  Vital statistics including registration of births and deaths  Public amenities including street lighting. protection of the environment and promotion ofecological aspects  Safeguarding the interests of weaker sections of society. the city started its own powerhouse and established a new water supply system from the Bilaoli water body. parking lots. Later. A city sanitation project was initiated in 1912 under the expert 50 .cremations. initiated some bold initiatives. extensive land use mapping was initiated and the city was mapped in 100 sheets. the first municipality was constituted in Indore and Bakshi Khajan Singh was appointed Chairman. and waste disposal. sanitation. the city prospered and became a major center for opium trade. cremation grounds and electric crematoriums  Cattle pounds. bus stops and public conveniences  Regulation of slaughter houses and Tanneries Besides these ULB’s are also empowered with certain other financial powers. including the handicapped and mentally retarded  Slum improvement and up gradation  Urban poverty alleviation  Provision for urban amenities and facilities such as parks. Indore lacked planned development in regards to facilities supply.

Indore city was included into Madhya Bharat and declared as the first category of municipality by the local government department of Madhya Bharat. 2. the city shifted from its traditional opium and agricultural trade and commerce to modern industries. predominantly textiles. Geddes plan was not restricted to land use. air pollution. • 1906 Octroi and opium tax were abolished and arrangements were made to 51 . • 1893-94 piped water supplies from Sirpur and Piplyapala water reservoirs were introduced. water scarcity and problems in maintaining a quality environment.supervision of Mr. Realizing the potential of new industries. like peoples participation and need for future growth. Soon the municipality became the first city to have an elected municipal government responsible for the welfare and growth of the city. Patrick Geddes. Lancaster. After independence.2 Landmarks in Municipal Governance of Indore Some of the important landmarks indicating the evolution of the Indore Municipal Corporation are: • In 1856 Octroi on 21 items and transit tax on Agra-Bombay Road was introduced to promote trade and commerce in Holkar State. wastes was a Regular cleaning of the city and sprinkling of water along the roads was initiated and made mandatory. prior to this kerosene lit lamps were in use. • 1904 Municipality was given judicial powers Magistrate. In the year 1956. During this period. the Holkars invited Mr. during the reorganization of states.1906 Juna power house equivalent was established at to Indore class and III power generated here was used to provide street lighting for the city. The Indore method of composting city successful model followed in several other towns. A city improvement trust was created and sanitation and waste disposal was undertaken in a scientific and planned manner. Indore unfortunately is reeling under the set of problems that most modem cities are facing. Indore was included in Madhya Pradesh and in the same year it was declared a municipal corporation. but is one of the most comprehensive documents in urban planning and incorporated many of the aspects that are currently considered desirable. who prepared the first authentic ‘master-plan' for the city. problems of solid waste collection and disposal. Despite such a long lead time in planned development. lack of adequate revenues and the vagaries of the current democratic and bureaucratic institutions.

Lancaster was invited by the local body to give advice regarding expansion of the city and improvements in the sanitary conditions in residential areas. • 1906 completion of construction of Bilawali Tank.compensate this revenue loss from Govt's exchequer. presently with City Engineer's Office). still available and in use by City Engineer's Office. • 1925 primary education was made compulsory for all. based on the recommendation of Mr. • 1938 Mr. This set of maps -still the most authentic documentation of valuable property and urban agglomeration development . • I n 1923 entertainment tax and vehicle taxes were introduced in the municipal area of Indore. • 1918 Mr. promoted by then Holkar form lifelines of the city -have been constructed as per the recommendations of Stamper.still a major source of water 52 . R. • 1926 Indore Municipality bought a vehicle for lifting wastes and spraying water on roads. • 1910 Mr. Jawahar Marg and Subhash Marg . city improvement trust was constituted with a view to ensure cities planned development. • 1939 completion of Yeshwant Sagar Dam under Maharaja Yeshwant Rao Holker's initiative to overcome water crisis of Indore. Ramchandra Rao and his team developed a detailed survey map (in 100 sheets) of Indore City. 1920 For the first time people used their right of franchise to elect 15 (out of 30) members of Indore Municipality. Patrick Geddes. • 1912 Mr. The dam . which the city faced from time to time in the past years.V. Patrick Geddes (eminent city planner of that period) prepared a developmental • plan for planned development of Indore City under Holkar rule. • In1924 overall control of Municipal government representatives and was handed over to elected Indore became first city of central India to have an elected municipal government. • In 1924. • 1913 Limbodi-Bilawali water supply scheme was made operational to control acute water crisis. • 1929 detailed for then Holkar State  aerial photography survey was done under Holkar's initiative Indore (6 detailed survey sheets are available.H. Stamper prepared a report on improvement of city circulation pattern.V. • 1912 Municipality was made a semi-autonomous institution through a municipality act.

• 1956 Indore municipality was upgraded to Municipal Corporation and the late Ishwarchandra Jain became its first Mayor. • Till 1995 tenure of mayor was for one year. their aspirations and encourages their participation in all its efforts towards city's overall development. for effective decentralized planning and 69 wards of various sizes and implementation. Mayor . despite its limited resources. MIC has 10 members -each heading an advisory committee of various departments of IMC. • 1984 commissioning of Narmada Project Phase I. Municipal Corporation Act. Since then the tenure of the mayor was increased to five years (from 1995-99). At present.ex-officio chairman of mayor in council (MIC) . As per the provision of Madhya Pradesh Municipal Corporation Act. Presently as per the provisions.along with councilors. IMC has a mayor (chairperson). 1956. The deliberative and executive Wings of IMC are the pillars. 2. is trying to revive its glorious past of good governance.P. etc. There is a provision to nominate 6 persons having special knowledge and experience in the city council. 1956. municipal area is divided in 12 zones and population.Vishweshwaraiya. • 1992 commissioning of Narmada Project Phase II. 2 members of Parliament and 5 members of State representing constituencies within municipal areas. commissioner and MIC are entrusted to carry out provisions of M. councilors elected by direct election from 69 wards. which have been nominated recently. modernizations of Indore Municipal Corporation through various programs like e- Governance. municipal asset management. which respects its citizens. a brief description of the same is given as under.4 Committees set up by IMC under Mayor-in-Council 53 .3 Municipal Governance in Indore Indore Municipal Corporation. to the city . 25 seats out of 69 are reserved for women. which provide strength and balance to its organizational structure. Legislative Assembly In accordance with the 74th constitutional amendment. elected through direct election. 2. • In 2000.was designed by the eminent civil enginee Dr.

scrutinize and ensure appropriation of money shown in the accounts. Any aggrieved person may appeal against any order passed by the Commissioner or any Officer within 30 days from the date of such order. 69 Ward Councillors) Appeal Committee Accounts Committe Mayor in Council Chairman – 1 Mayor Members . As per provisions.6 Chairman of the following Committees - 54 . Municipal account committee is constituted under Section 131-A of MPMC Act 1956. it consists of 7 members elected by the elected councilors by secret ballot from amongst themselves. The prime responsibility of the to examine the accounts of the corporation. The members of the committee also select from committee amongst themselves is a chairman. Table:1 Structure of Deliberative wing of IMC CITY COUNCIL (Members: Chairman. all proceedings to enforce such order and all prosecutions for breach thereof are suspended pending the decision on the appeal. IMC has appointed an Appeal Committee to look into the appeals against an order passed by the Commissioner or an officer subordinate to the Commissioner. and disbursed in accordance with the allotment for the same. Mayor. also to examine. Member of State Legislative Assembly from Indore Municipal Area (5)*. ensuring appropriation of funds and grant for expenditure.As per Section 403 of the Madhya Pradesh Municipal Corporation Act 1956. When an appeal is made against an order. The Appeal Committee may for sufficient cause extend the period prescribed for appeal. The Appeals Committee consists of the Mayor and four elected Councillors. Member of Parliament (2)*. It has no member from MIC.

Law and General administration. Note: * have no Voting Powers 2. Water Works. Planning and Rehabilitation. Water Works. Revenue. 55 . Education. 2001. Market. Health and Women & Child Development Advisory Committee Ward Committees (12). Revenue. the Speaker has constituted the following Advisory Committees to advise in the affairs of the department concerned. Law and General administration. Planning and Rehabilitation. Health and Women & Child Development Advisory Committee Advisory Committees (Each contain a Chairman and Councillors) Housing and Environment . Flood and Civil Supplies.5Functional Review of MiC and General Body After civic elections.Councillors . Flood and Civil Supplies. Education. 1/Zone Each committee has a chairman and 5 – 8 Councillors of wards in a zone Source. the Mayor-in-Council was constituted by the Mayor in June 2010 as per section 37 of the Act.3 Housing and Environment . Similarly. Market. Various Office Orders.

the prior approval of the council shall have to be obtained. 2005.O. In the technical cases. as the case may be. 56 . It is expected developmental that works the departmental proposals regarding the expenditure and shall be first discussed in the Advisory Committee and if approved.Housing. irrespective amount of expenses likely to be incurred therein.  The prior approval of the Corporation or the Council. there should be the technical obtained in the manner prescribed in these rules. Such works which are of the policy nature or relevant to the whole city. the powers and functions of the Mayor-in-Council are as under: The financial powers described above shall be exercised only subject to the following conditions: There should be budget provisions in the sanctioned budget and the amount available in the relevant budget head for the work concerned. subsequently put to Mayor-in-Council or to other sanctioning authorities for sanction. Environment and Public Works Department Water works Department Health and Medical Department Market Department Education department Women and Child Welfare Department Food and Civil Supplies Department Rehabilitation and Employment Department Revenue Department Law and General Administration Department The member of the Mayor-in-Council have been made Member-in-Charge of each of the above departments and he is expected to convene the meeting of the Advisory Committee of the department concerned at least once in every two months and preside over such meetings. 24-F-1-65-05-XVIII-3 dated 14th July. 2. shall have to be obtained for giving any grant or reward to any institution or person(excepting the employees).No.6 Municipal Financial Powers According to G.

 Where the amount of expenditure exceed rupees one thousand and does not exceed rupees ten thousand. simpler and effective.  Provided further that the rate so sanctioned as per the quotation so called. It is necessary to establish a proper Management Information System (MIS) between Central Office and Zonal Offices.  A proper communication system is necessary between the functional head at Central Office and the staff lookingafter the relevant function in the Zonal Office.7 Decentralization of Municipal Administration Decentralization of municipal functions and activities through twelve zonal offices and their respective received wards encouraging committees is a significant achievement of IMC. grievance redressed. of the maximum financial power vested in him. 2. Mayor/Commissioner/Local member of Legislative Assembly/Local Member of Parliament. prior to giving sanction..  Provided that. the whole of city area is organized in twelve zones.  In case of exercise of the financial powers by the Mayor-in-Council or the President-in-Council. exceeding fifty percent or more. the recommendation/concurrence of the concerned ward councillor (if the office of the ward councillor in the concerned Is not vacant). IMC plans to develop all its 57 . it shall be necessary for that sanctioning authority to ensure that the provision for the concerned expenditure exists in the budget. revenue collection.  The tender accordance shall be invited for construction work or purchase in with the provisions of Works Manual and the recommendation of the Tender Committee prescribed in these rules shall be obtained thereon.  Each authority shall give information to the authority senior to him within 15 days of the expenditure. each comprising of 5-7 wards. In the proposal for construction work in any ward. shall be necessary. as the case may be. which has response from citizens as it has made dissemination of information. etc. To ensure efficiency and effectiveness in municipal governance. shall be limited to the concerned work and shall not be used for any other work. it shall be necessary to call at least three quotations and it shall be necessary for the sanctioning authority to ensure that the rate which is being sanctioned is not more than the prevailing market rate. information in all relevant cases shall be submitted in the next meeting of the council.

IMC Chairman Additional Commissioner – 1 for 6 zone Additional Commissioner – 2 for 6 zone Department Functions Key staff members per zone Wards committee Water supply & Asst Engineer – 1 Councillors of every Drainage Sub Engineer – 1 or 2 ward Heads maintenance which come under a zone Public works Asst Engineer – 1 (Building permission.1 construction control) Health and Sanitation inspector – 2 Sanitation Sanitation sub inspector – 2 Sanitation Supervisor – 6 or 7 Cleanliness Workers . which fall in a particular ward. Table: 2 Zonal Administration Executive Wing Deliberative Wing Commissioner. The system has been designed to municipal governance in a true sense.zonal offices decentralize as mini corporations.220 Revenue collection Revenue Sub inspector – 1 Bill collectors – 6 or 7 Peons .3 Office Clerks & Peons – 2* Wards committees Office staff Source: Various IMC Orders. Building inspector . Sub Engineer – 1 or 2 maintenance. where councilors of wards. are the members of the 58 . 2001 (*competent persons derived from workforce in the zone) The chairperson of wards committee heads the deliberative wing at the zonal office level.

7.57.63. Included 1 Hedgewar (Kila maidan) 7 2.58 5 Maharana Pratap (Hawa Bangla) 4 1. Development and maintenance of gardens.35.45. Dindayal (Bilawli) 5 wards committees are expected to prepare proposals and submit them to the municipal commissioner in the month of October for perusal in the next financial year.46. These committees for their territorial areas are empowered to: i) Sanction up to an amount of Rs.24.000 for the function of the committee. Removal of encroachments.20 2 Labahadur Shashtri (subhash chouk) 7 of wards Ward Nos.6.53 6 Pt.34. ii) Inspect and supervise any work.66 8 Gangadhar Tilak (saket nagar) 5 Environmental improvements To carry out the responsibilities entrusted to it.65. Major responsibilities entrusted towards committees are as under: Construction of new roads and drains Maintenance of existing roads and drains Arrangements for water supply and sanitation Recommendations for all types of licenses Collection of tax. Table:3 Distribution of wards in each zone S.69 7 Chatrapati Shivaji (stadium) 6 41. rent and fees Implementation of national programs relating to social welfare services and social security schemes.59.68.44. Supervision of primary schools primary health centers and public distribution systems.48.51. Zone No.38 59 .54 4 Harsidhhi 7 43.19.18. public places.27 3 Bhagat Singh (jawahar marg) 7 9 Bhimrao Ambedkar (Shastri pancham 5 31.

Advisory Committees/General Body and Wards Committees.8 Key Observations and Issues Key observations regarding municipal structure and functions are based upon discussions with a wide range of municipal authorities and elected councilors and secondary information available in the Corporation in the form of registers.42. 2.8. and No adequate administrative and financial power given to the Wards Committees. 2.11. Inappropriate representation in the MIC constituted by the Mayor .13 11 Subhash 5 13. Besides which there is also inadequate deployment of staff to the zonal offices making it difficult for the effective project identification and budget preparation.14.2Issues of Executive Wing 60 . The observations with regard to structure and functioning of the deliberative wing and overall organization of the executive wing of the corporation are discussed under this section.includes members from the political party that have majority representation from opposition party in the General Body.The issues and program design elements with regard to functional departments of the executive wing are elaborated in the next section.28. Shayma Prasad (Vijay Nagar) 4 This has resulted in occasions where there has been no consensus among the General Body and MIC regarding city-wide development projects aimed at improving delivery of civic phel) 10 Dr.8 7 26.8.1Issues of Deliberative Wing Key issues identified with regard to structure and functioning of the deliberative wing are: Inadequate co-ordination between Mayor-in-Council.30. systems and procedures of key functional departments.60 Chandra Bose (Subhash Nagar) 12 Mahatma Gandhi Source: IMC 2. based on a review of organization.40.29.

Designation of Zonal heads and HODs of town planning. 2. systems and procedures and associated issues and program design elements for key functions of the Corporation are presented in the following section.This section discusses key issues regarding the overall structure of the executive wing and it’s functioning. etc Absence of a feedback and monitoring system with regard to capital expenditure proposals sanctioned by the competent authorities.decentralization not based on a clear reorganization plan.8. A detailed assessment of issues with regard to the organization.especially the assessment section to revenue section. between various departments . and Absence of an effective system/plan for communication of day-to-day transactions. Very large departmental and span of control sectional of the Municipal Commissioner - almost all heads report directly to the Commissioner.4Observations Regarding Creation of Zonal Offices The Executive Engineers and Assistant Engineers belonging to Water Supply or Public Works Department have been posted at the Zonal Offices and are functioning as Zonal Officers. the decentralisation of activities may not 61 . between Zonal offices and central office. many resulting from retirements. Inadequate staff and infrastructure at Zonal office to execute decentralized functions. 2. neither are they equipped with required infrastructural and skill-set support. thereby hampering effective supervision and control over overall functioning of the Corporation.8. town planning section to assessment section. In the absence of adequate power and manpower with requisite skills and experience. resulting in loading individuals with additional functions of varied nature. traffic management accounts and audits. etc needs strict regulations Inadequate co-ordination regarding the cadre qualification. water supply department to revenue section.3The key issues regarding the structure and functioning of the executive wing are: Several senior level posts lying vacant. Piecemeal efforts towards decentralization process due to lack of appropriate quality and quantity of manpower and inadequate financial resources for establishing the Zonal offices . The Zonal Offices do not possess the adequate authority. yet to be filled with appropriately qualified/experienced personnel. Ad hoc arrangements made to address vacancies in key posts.

They don’t possess adequate financial and execution powers. incapable of meeting. Ugliness is the dominant external characteristic of the city.yield the expected results. 2. leaving With the present level of funds at their disposal. In a federal set-up some restrictions are inevitable. and existing facilities in their charge. A highly decentralized tax system may distort the allocation of mobile resources or factors of production and stand in the way of creation of a domestic common market. Municipal services and amenities are chronically short of basic requirements.9 Strategic Elements for Program Design Some of the specific programs that IMC may have to undertake to address the issues identified above are: 2. 2. With the present level needs accounting of revenue for of growing their urban unsatisfactory and expenditure. IMC is alone expanding. Fiscal autonomy largely depends upon the extent to which own resources are raised by the local bodies. It is a fact that level of resources that can be raised locally is restricted by narrow economic base of local areas. though finance is not the only factor performance.10 Strategies for Deliberative Wing The role of the Information Cell should be strengthened under the Right to Information clause in the Municipal Act to the extent that no other platform for the information 62 . Although the reluctance of local bodies to tax people and poor administrative capacity at the local level also account for the poor financial position of local bodies.5 Key Financial Autonomy Issues The limitations of Municipal Corporation is coming more and more to light against the background of inadequacy of finances for serving the communities.8. SFC has examined that local bodies still have own resources. Since self-effort to raise resources may be one of the criteria for determining devolution of resources from the state government to local bodies. even obligatory functions are being inadequately performed. Officers at Zonal level are mere dispenser of higher-level authority orders. the SFC has made efforts to collect such data from local bodies and also ascertain reasons for poor performance on this front.8. which can be facilitated by policy level changes.8.

the MMIS needs to facilitate maintenance and management of functions related to all departments of the Corporation. well-equipped Head and Zonal offices and ensuring right sizing of staff at these offices based on a plan for executing the functions delegated to them. the Improvement Trust was converted to Indore Development Authority (IDA) under the Madhya Pradesh Town and Country Planning Act. Primarily. Once a sizable number of plots are sold. to assist the Indore municipal body in its developmental activities. which is then 63 .  Establishing a comprehensive municipal management information system (MMIS) that facilitates communication between Zonal offices and the central office. 3. to support the Wards Committees in planning. the area is formally transferred to IMC. with appropriately qualified personnel through fresh recruitment or by promoting experienced internal staff with appropriate training. 2. decision-making and implementation of developmental works.dissemination is required. In 1973. IDA is responsible for developing basic infrastructure.  Establishing full-fledged. This cell should be the hub of all the latest and chronological information. This cell should be designed to hoard sufficient data in the relevant formats. Filling vacancies.8. 1973. The initiative has already been taken by the Corporation to put the information on their website.11 Strategies for Executive Wing Regrouping of activities on functional basis in order to reduce the number of persons directly reporting to the Commissioner and establishing reportability through Deputy Municipal Commissioners and other departmental heads.  To appoint officials of the cadre of Deputy or Assistant Municipal Commissioners as Zonal Officers in the Zonal offices. and Establishing an appropriate and effective organizational set-up at the zonal office level. the city had a 'City Improvement Trust'. IDA develops new residential areas. especially at senior levels. During the early stages of development of such areas.1Indore Development Authority (IDA) Until 1973. Para Statal Agencies 3.

3. Shops. Offices and Halls and about 4000 developed plots. is charged with a number of responsibilities in water supply and sanitation. a number traffic of squares.19 of Nagar Tatha Gram Nivesh Adhiniyam 1973.Out of which development in 33 schemes covering an area 1900 hectares has of about been completed. So far.2 Madhya Pradesh Public Works Department Public Works Department (PWD) deals with the construction and maintenance of buildings.3 Madhya Pradesh Pollution Control Board MPPCB monitors air quality. Twenty-eight schemes (area about 1000 hectares) have been dropped due to various reasons. lndore Development Authority has taken up so far 80 schemes on an area of about 4500 hectares.responsible for the maintenance of the infrastructure in the area. a State Government body. MPPCB is the nodal agency appointed to implement the 'National River Conservation Plan. It is a state level body. It has constructed about 20000 units in Indore city of HIG. presently the staff is deputed to Indore to oversee the Narmada water project. After publication and adoption of the Indore Development Plan 1991 u/s 18. Krishnapura Lake. The MPHB have been constructing and developed in 21 64 .4 Public Health Engineering Department Government of Madhya Pradesh The Public Health Engineering Department (PHED). It is also mandated pollution control to monitor industries and enforce measures. The Commissioner of IMC is the ex-officio member on the board of IDA. LIG. 3. water quality and noise levels at various sampling points distributed through out the city. 3. EWS. In 19 schemes (area of about 1600 hectares) the process of land acquisitions is in progress. Apart from developing residential areas. roads. the main implementing agency IDA has played an important role. four residential colonies developed by IDA has been handed over to IMC with all the legal formalities. and bridges. MIG. etc. flood control works 3. Irrigation. Meghdoot Garden.5 Madhya Pradesh Housing Board MPHB functions as per the MP housing development act of 1972. IDA has taken development schemes like construction of some major up roads.

9 Krishi Upaj Mandi samiti. The company fully owned by IMC. Indore Mandi samiti’s main function is to provide a set up for the farmers of the regional area to sell their commodities. The main function of T&CP is to prepare master plans and give permission for development of schemes in accordance with master plan. has been formed to mobilize funds for repair and construction of Roads in the city. 3. But.11 Area of Fragmentation The major reform to local administration in India resulted with the 74th Constitutional Amendment Act in 1992. functional decentralization will remain on paper. Administration and IMC by setting up a fully Govt. Presently there are three main mandis functioning under Krish Upaj mandi samiti. Beyond the creation of the democratically elected bodies at the level of municipalities. 3. A limited company. 3. restoring local self-governments in the form of mandatory elections. 3. Indore Development Fund Ltd.7 District Urban Development Authority It functions under the administration of the Indore District Collector’s office and finally reports to the Urban Development department of the state government. 3. the 65 . Out of the three the Grain mandi at Chavvani is ill placed in highly congested area.10 Indore City Transport Services Ltd. MPHB works in collaboration with IMC for maintenance of services. and delegation of functions and finances articulated by SFC. This is an unique imitative that have been taken by Dist.colonies in the city.6 Indore Development Fund Ltd. if a corresponding and commensurate financial devolution is not made to different territorial governments. 3. Indore. owned company named Indore City Transport Services Limited (ICTSL) to provide with an efficient transport system in the city.8 Madhya Pradesh Town and Country Planning (MPTNCP) T&CP department in Indore was established under MPTNCP act of 1973.

etc. or which the MC feels is inimical to the future growth /development of the city. the Town and Country Planning Department. Similarly there are government city central The activities of all these agencies impact on the same or the peripheral urban space. 3. Although the state governments have enacted the provisions of the conformity legislations incorporating the Constitutional amendments. It is not clear if the recommendations of the finance commission of states have been acted upon. Handing over-taking over of assets between the MC and the UDA or HB remains a problem. even though extended services are provided by the MCs for which service charges are being received. There exists no evidence that powers and responsibilities of local governments have. More importantly. etc. and the time for obtaining comes various clearances like water supply. Far more disconcerting fact is the absence of clarity in respect of the functions of local governments. the MCs are denied the benefit of raising property taxes since the new properties are in the peri-urban area. This is a major governance issue. No worthwhile decentralization of powers and responsibilities had occurred or is in sight. been expanded in accordance with Schedule XII. which affect the spatial pattern and future growth direction. through which the MC will grant all planning permissions with a charge only after it has satisfied itself about its current and responsibilities. The obvious remedy lies in making the MC the sole planning authority. in de-facto terms. Often. the formulation of rules and byelaws to put those provisions into effect has lagged behind. there are state agencies also operating independently of the ULB. space. A similar relationship exists between MC and HB. and if these have led to any improvement in the finances of local governments. as envisaged under the 74th CAA.progress on decentralization needs to increase the pace further. These are the Urban in together the Development same Authority future with the urban agencies.12 MC and UDA/ TCPD/ HB The MC-UDA relationship is such that the MC often remains ignorant or casually informed of new area development till such time when construction has started. drainage linkages access roads. which are not acceptable to the MC. SWM. corporations. State Housing Board. At present. The corporations only have an operational relationship with these agencies with no control or 66 . the T&CP make many planning decisions and recommendations.

The assets. Secondly. The eventual responsibility for civic services ultimately devolves to the city authority.influence over the outcomes of their activities.13 MC and PHED PHED has been given the responsibility of planning. have to be transferred to the MC on operation completion for and maintenance. taking over of the assets created has not been completed. There is therefore duality here and accountability is blurred. 67 . in many cases. design and construction of the water supply. Under this arrangement. their administrative control remains with the PHED. sewerage and drainage projects of the municipal corporations (MC) since 1995. the PHED staff’s work under tile functional control of the MC. Though. the financial and administrative sanction for a project comes from the PHED. 3. however.

Housing and Slums in Indore city Housing makes significant visual impact on the overall appearance of the city and its urban form. these colonies lack in the inhabitants to live in un-hygienic conditions.0% of the proposed area. The city also infrastructure has facilities the problems forcing of unauthorized colonies. lack of land for LIG. it is found that more than 5. EWS. which has created pressure on the existing facility housing causing substandard living conditions.50. high prices of land. Lack of coordination & disputes among policies of various development departments were also a contributing factor. thriving within the best residential and commercial localities of the city. The city has worst slums and jhuggi areas.00 lakhs population is living in Jhuggi-Jhopadi areas.5 times during 1974-2002. The population of Indore has crossed the projected population (12.2 Housing Shortage Indore suffers from housing shortage particularly for low and economically weaker sections of the society. It has 16. 68 .25% of its population staying in Slums and Squatters and about 15% of the population staying in the un-authorized settlements reasons being unavailability of vacant land near work areas. Lack of development particularly to suit the requirement and economic means of squatters have created conditions. which is 92. but the housing stock could not be developed to cater the need especially for the poor sector. Housing configuration can make or mar the total city image and its social and cultural life. lndore has the privilege of housing the best residential areas available in any city of the state but in higher and upper middle-income groups only. 1.Chapter-5 Basic Service for the Urban Poor (BSUP) in Indore 1. lesser affordability and housing shortage which has led to squatting.1 Housing Situation in Indore Traditionally. which motivate unauthorized jhuggis been utilised up to the year 2002. From the studies.000) for the Indore Development Plan (1974-1991) much before 1991 The population has increased 2. 1.

In other words it can be said that even been the prime supplier of the land for housing.Shortage ment 1971 560936 5. H. which we can categorize as housing subsystems.H. H. of Add. Housing Replace. No.’s H.73 371995 94995 466990 271000 195990 54200 250190 2005 2219609 5.7 191000 79000 270000 162000 108000 9000 117000 1991 1250000 4. agencies like IDA and MPHB has not been utilized to the fullest extent. Traditional / Urban Village Private Plotted / Group housing Public housing schemes (IDA / MPHB) Co-operative housing scheme Employee housing scheme Unauthorized colonies Slums/ Squatters From the above comparison of areas and population in different subsystems it can be seen that the amount of land acquired by govt. H.3 Housing Subsystem In any city all housing conditions are not same always. Total Housing popln.Table .H. ownership status etc.H.1 Housing Need stock and shortage during different period Year Total Avg. In Indore there are following types of subsystem exists. sector were not able to develop the acquired land under different 69 . No.H.’s Units Total Req. the govt. They differ from each other in characteristics like income level. of Stock Size Req.5 277000 86000 363000 175000 188000 18000 206000 2001 1759532 4.23 424400 52405 476805 297258 179547 118900 298447 Source: various development plans of Indore 1. residential densities.5 112000 112000 92000 20000 20000 1981 827070 4. These create different typology of living.

3% groups.9 among the HIG households and was lowest for EWS households 2.including a rare of 88% amongst males and 70% amongst females In Indore.5 years. lands On the other hand in case of unauthorized colonies and extreme cases in slums/squatters the no of people staying on available portion of land is extremely high i.2. LIG Indore households has 9.4 House Hold Profile According to the GOI official definition of income households. Among the poor households. the literacy rate is much lower at 79%.8% MIG households. A similar pattern has also been observed across the different income groups wherein 70% of the HIG.9.1) and children (3.9. the core poor had the highest household size at 8. The remaining households 3% lived in the same neighborhood for less than a year. Nearly 21% reported they have been living there for about 6 .6).10 years while 16% stated they lived there for a period of 1 .3 as per the household survey. 1.6% BPL households. The HIG households recorded the highest average households size at 8 and the MIG households 7.5% HIG EWS households. 62% of MIG. The average number of adult (aged 18 and above) among all households surveyed is 4 and that of children (aged less than 18) is 2. among the poor households. The average number of children was found to be highest among the MIG households 2. The average number of adults in a household was highest at 5. 20.3 and lowest among the HIG households (2.0).8 and the transitional poor at 6.3 and the EWS households the lowest at 5. The 2001 Census has recorded that the city has relatively low literacy rate at 82% including a rate of 89% literacy amongst males but only 74% amongst females.e. The average household size of the BPL households has been 7. In Indore. it has 17.5 with the intermediate poor at 7.3% and 29. Hence lesser population resides in these acquired govt. nearly than 60% of the all households surveyed stated that they have been living in the same neighborhood for the last 10 years. the average households size has been recorded to be at 6. very large no of population is residing on very less proportion of land.6. 60% of LIG and 59% of EWS stated that they have not moved out 70 . Amongst the enumerated slum population. the intermediate poor had the highest number of adults (4.40.schemes due to many reasons mainly due to the legal complications.4 LIG 6.

Thus the criterion for defining poverty in urban and rural areas varies. It is evident that 71% of the HIG households and 62% of MIG. 87% of HIG.Urban Poverty In India. 9. To define poverty quantitatively. Across the different income groups. Of all the households surveyed only 20. which was recorded to be highest among all income groups. Significantly. they who fail to reach a certain minimum consumption standard are regarded as poor. In Indore. it is difficult to agree on the amount of income that will ensure the minimum consumption standard at a point of time.5% of the households surveyed stated that they had moved from another part of the city in the last 5 years. 2. nearly 87% of the BPL households owned their houses. Nearly 60% of BPL households 60% of TP and 58% of IP households reported to be residing in the same area for the last 10 years.7% had received pattas from the Government. 25% did not have any legal right. Of all the households surveyed 58% had a freehold title. 77% of LIG and 81% of EWS households had their own accommodation. 79% of MIG. 2. 79% of MIG. only 13. 77% of LIG and 80% of the EWS households owned their plot of land.6% and lowest among the HIG households at 12%.from their present neighborhood in the last 10 years. while the rest had it on lease or had other legal rights. Of all the households surveyed in Indore 77% stated that they owned their plot of land. It was observed that nearly 14% of EWS households had been given pattas by the government. to enable them to consume sufficient goods that and they command services are for 71 . Living costs are higher in urban areas as compared to the rural areas. Only 4% of the households reported to have moved from another city and only 2% of them moved in from a rural area in the last 5 years. Nearly 88% of the HIG. Proportion of households without any legal right was also observed to be highest among the EWS 33.2% households lived in rented accommodation.1 Definitions of Poverty Households are considered poor when the resources insufficient. Nearly 87% of the BPL households reported the same. 58% of LIG and 48% of EWS households had a freehold title.

Poverty Line is not constant.) Housing Poverty: Individuals and households who lack safe. a. There are 7 non-economic parameters to assess poverty: 1) Roof 2) Floor 3) Water 4) Sanitation 5) Education level 6) Type of employment 7) Status of children in life Weight age & scores are assigned to each of these parameters to assess the level of poverty. 600 / capita / month. is converted in monitory terms to define the Poverty The nutritional Line.e. Out of all these parameters 4 are directly 72 .The average median income in squatters is considered as Rs. The term "Absolute poverty" no "absolute" necessary is perhaps standard for that defines absolute slightly misleading. whether purchased. poverty: the since level there is of income these minimum standards is often referred to as the poverty line which various institutions and individuals define differently. Higher the score more is the deprivation. b.e. gifts or self-produced.reasonable minimum level of welfare. 2. Goods and Services i. sanitation. health & shelter cannot be met. drainage and removal of household waste. other aspects related to the living conditions. are important to include in defining poverty.for example nutrition.) Relative Poverty: Relative poverty is a poverty measure based on a poor standard of living or a low income relative to the rest of society. intake requirement is considered as constant i.3 Indicators of Poverty Besides monitory income. 2250 calories / day (average). consumption. 2.2 Defining Poverty Line The first concept of Poverty Line came in 1962. secure and healthy living environment with basic infrastructure such as piped water and adequate provision of sewerage. c. it varies from country to country and time to time.) Absolute Poverty: Absolute poverty is a level of poverty at which certain minimum standards .

more generally called as a SLUM. survey was conducted by IDA.e. These squatters over the period of time continue to come and settle on this land thus creating a neighborhood.418 hutments. 2. in which more than 270 slum areas were identified that have come up in the last eight years. Most poor immigrants to the city can find access to shelter only by squatting on public or private land. In 1997. The term slum (squatter) describes a wide range of low-income settlements or poor living conditions. But in the format of Housing development. the city had a total of 1. the above vital factors for creating harmonious symbiotic and self sustainable communities at optimal location are generally ignored and in fact in many cases no provision of habitat is made for such population in the planning of housing development. employment. However. Slum (Squatter) at its simplest is a heavily populated area characterized by substandard housing and squatter. This encourages the exodus of rural population to the nearby city. the total number of slums was just 26. Majority of this urban poor Population belongs to people who have migrated from the nearby rural areas in search of work. This deficiency in the formal planning leads to development of Slums and Squatter Settlements to assimilate such population. there has been a substantial increase in the population of slum dwellers.related to Housing. Since 1951. Surveys conducted by various nongovernmental agencies have indicated around 637 slums. which include surrounding areas outside the IMC where construction workers and agricultural laborers for temporary settlements. which increased to 183 in the year1991. which could not be map~ that lives on pavements and as laborers in temporary shelters. According to a study done by Oxfam in 1998. In 1951. The concept of slums and its definition vary from country to country depending upon the socioeconomic conditions of each society. The study also indicates a distinct group.34. Due to the dwindling land resources and increase in the population the land holding of any family in the rural region is no longer able to support the entire family. Economically weaker section. the IMC till date has recognized only 444 slums and notified the same in two phases in 1998 and in 1999.4 Slums in Indore It is well known that a large percentage of population in any Indian city belongs to the lowest economic strata i. 73 .

Table: 2 Slum Populations in Indore City Slum population in Indore City Year Total Population Slum Population Decadal Growth Rate 1951 310859 67619 1961 394941 83174 18. Slums in the city can be classified as roadside slums. with its industrialization and development of facilities. Rajasthan. the main reason for which is migration of youth from rural areas.83 ‐ % of Slum 21. About 60. Khargone. Indore City constitutes Madhya Pradesh AS per the Census 2001 the 16.09 15. Dewas.5 Characteristics of Slums The characteristics of Slums in Indore are  Various sizes from small. Jhabua.P. while in older settlements the percentage of elderly persons is comparatively higher.752 families are living in Slums Notified by Madhya Pradesh (Slum and Improvement) Act. established slums.23 1991 1104000 168600 25.04 15.03 1981 829327 126300 11.97 20.25% (Slum only Clearance while slum population in the population in the slums notified by and Improvement) Act. Migrants from states like U. Ratlam and Mandsaur. 74 . slums in city periphery-and tenant groups. isolated locations. Maharashtra and Gujarat also form sizable population in Indore slums.05 15.  Mainly located on riverbanks (now converted into nallahs). Ujjain. medium to large often clustered together in groups but also in single. is more than 3 Lakhs.75 Source: Census Reports 2. the city has been attracting migrants from districts of Dhar. In most of the newly formed slums.Since the 1960’s. youth form’s the highest percentage of population. construction side slums.70 21.52 percent of slum population is in the age group of 15-20 years. industrial area slums.06 1971 560936 112352 25.27 2001 1639000 259577 35.

Child Development Continuous Education Program. women’s and youth clubs.60 percent .9 percent of the slum population is tenants. which were built under Indore Habitat Improvement Project. marriage.  Nearly half of the slum dwellers live on less than 350 sq. neighbourhood development committee.  Only a negligible proportion is able to avail service of government hospitals and the majority relies on private doctors. as against 88. have piped asphalt roads.  Many of these slums have saving and credit groups. the main reason for which is migration of youth from rural areas.  Nearly a third of the slum population possesses a ration card. a majority of them fail to use it to prove their entitlement to various government schemes. hand pumps and road culverts.4 percent and 20. most of which are in bad shape. Have heterogeneous populations. Improvement Project.00 percent respectively. piped water supply and other small undertakings like community toilets. formed under various development projects. in some places caste panchayats exist. which play an important note in settling disputes related to property. mainly due to non-specific addresses on them.and violation of caste rules.  Many of these are at present covered under Integrated Scheme. encroachment on private land and settlements developed by private developers.  175 of them were covered under Indore Habitat sewage.  About 17. which have a huge network of staff.  Percentage of workingwomen in vulnerable sections .  119 of them have community centres. while in older settlements the percentage of elderly persons is comparatively higher.9percent and 74. Niramaya Community Empowerment Project.  Male and female literacy rates in the slums are 46.  Half the slum population does not have a toilet facility and about a fourth of the population uses public quite high compared to the figure for other sections in the society.  52 percent of slum population is in the age group of 15-50 years.  Categorized mainly as encroachments on Government land. ft of land and almost all the scheduled tribe population and most of the scheduled caste population lives in slums.  Occupation of slum dwellers is largely in the informal sector. youth form the highest percentage of population.6 percent for the city. In most of the newly formed slums. volunteers and activities. walkways.45. 75 .

U. hand pumps. Beyond all doubts. UNDP (Urban Community Development Program) .P. road culverts construction of three health centres and children’s complex. cemented walkways and community halls in 175 slum areas of the city. In addition. popularly known as the `Patta’ grant leasehold rights to the landless persons occupying Act urban was lands. Government of India. implemented from 1983-87 by Indore Municipal Corporation.6 Earlier Public Interventions of Slum Improvements Indore has an impressive record of urban community development projects like: The Madhya Pradesh Nagariya Kshetron Ke Bhoomihin Vyakti (Pattadhruti Adhikaron Ka Pradan Kiya Jana) Adhiniyam. The project initiated a process of community organization and promoted collective action  IHIP . construction of piped sewage. which was implemented by Indore Development Authority. the plot areas were revised for different categories of cities (1000 to 600 square feet) and lease rent per square feet per year for 76 . UBSP (Urban Basic Services Program) - project was jointly funded by Government of M. Other smaller construction undertaken in the project included community toilets.. IMC and IDA had rehabilitated around 1000 slum dwellers under this scheme so far.2.  Valmik Ambedkar Awas Yojna-VAMBAY is a centrally sponsored scheme which has provision of 50% grant for dwelling units for urban poor upto 50.K. IHIP was a masterpiece of architectural design and has won the World Habitat Award (1997) for innovative practices for the same. The Act was amended in 1998 under Rajiv Gandhi Aashray Abhiyan to extend the cut off date of eligibility to 31st May 1998.000 cost.UNICEF .this was an ODA (Overseas Development Administration. 1984. and UNICEF  Project by UNICEF was implemented by the District Collectorate from 1987-94.7 The `Patta’ Act. popularly known as the `Patta’ Act was introduced to grant leasehold rights to the landless persons occupying urban lands. 2.funded project. IHIP facilitated increase in capacity of the city’s sewage treatment plant. 1984. 1984 And 1998 The Madhya Pradesh Nagariya Kshetron Ke Ka Pradan introduced to Kiya Bhoomihin Vyakti (Pattadhruti Adhikaron Jana) Adhiniyam.) - Financed project. asphalt roads.

as part of the well. The Objectives of the Project were To integrate the slums into the economic and social network of the city. costdesigned as 77 . To increase the income earning potential.00 for Rajbhogi cities (Bhopal. category `ka’ (A) for the registration of disputed cases. acclaimed ODA Project. Jabalpur. To develop the community organization and institutions.50 for other towns and Rs. lying of drains. To improve standards of health literacy and basic education. which were also proposed to be utilised as Nursery Schools. These programs effectiveness. The important amendment in the Act was to introduce the Mohalla Samitis with the intent to empower the management community of the in development the planning and and social welfare. 1.00 for Nagar Panchayats. Indore Development Authority. selected. based on coverage. Adult Education as well as other recreational and cultural activities. ideals of community and continuity participation. three categories of pattas are given. category `kha’ (B) for permanent lease of 30 years and category `gha’ (C) for temporary lease of 1 year. construction of community toilets etc. To improve the physical living conditions of some of the poorest urban families in Indore. 2.10 years was introduced at the rate of Rs. There was construction of cut off sewers was done along Nallah to capture of foul water inflow and diversion to treatment. water lines. Indore. To encourage self help improvement of housing. To strengthen local government no-governmental organizations (NGO’s) and the slum communities to ensure that the assets created are properly maintained and project benefits sustained. and developed 175 slums out of 183 identified during that period. 2. were primarily convergence. To provide security of tenure. There was community halls constructed under these projects. Gwalior and most Raipur).8 Indore Habitat Improvement Project (ODA Project) Indore is known for its programme for slum networking (IHIP-Indore Habitat Improvement Programme) in collaboration with ODA and with the idea of changing the situation of the slum dwellers in the city. Local Clinics. There was considerable up gradation of infrastructure facilities done under these projects such as construction of roads. Rs. 1. Under the `Patta’ Act.

after their withdrawal.10 Conclusion Housing There is about 40% shortage in housing supply in Indore City. 2. their potential and expertise remained untapped. Squatters and the unauthorized colonies 78 . leaving other role players disinterested about the sustenance ofactivities. The majority of housing shortage is for urban poor. Indore development Authority had their taken currently up proposals for rehabilitation of about 6000 slum dwellers under running Town Development schemes. 2. District Administration. problems in urban communities remerged or remained the same. which has resulted in widening the rift among various key role players in the city’s development. They tried to achieve too much at a single time.9 Valmiki Ambedkar Awas Yojna (VAMAY) Under this scheme Indore Municipal Corporation has redeveloped Arjun Pura Slum which proposed rehabilitation of 344 Slum Households. opportunity to Indore implement UCD. hence. participation. therefore. Some of the reasons for their failure are: They implemented these projects by themselves. In similar fashion Indore Development Authority has rehabilitated Buddha Nagar Slum comprising 600 dwelling units. Informal Housing such as Slums.oriented and failed to achieve expected results.process-oriented initiatives. UBSP. and IHIP and to enhance their expertise regarding the same. NGOs and NDCs had limited opportunities to participate. In future Ida will be developing its Town Development Schemes with 20% of the developed land reserved for EWS and LIG and will be rehabilitating Slum dwellers. People’s aspirations. when the funding ceased so did the follow on activities. but later due to over ambitious implementation goals became and Development product . Authority had Municipal Corporation. and decision were not taken into account in these projects. Therefore. The work is under progress and 50% of them are already rehabilitated. Inter-departmental co-ordination among partners in neglected various areas improvement was and nothing serious was done for their capacity building.

 16. which depicts their living conditions. CBOs.constitute about 50% of the housing in subsystems in Indore. and BPL Category. and beneficiaries. 79 .  70% of the households belong to LIG and EWS. EWS 21% while EWS 9%) Slums  Slums in Indore settled in the low-lying areas of River Banks and places close to work places.6 percent for the city). o Slum Improvement Projects.00 percent respectively. o Redevelopment and Rehabilitation of Slums under Valmik Ambedkar Awas Yojna But most of the interventions failed in achieving their objectives due to: o Lack of Participation of NGO’s. have piped water supply and sewage.hand pumps as well as Community halls. community toilets. o Lack of coordination between Agencies involves o Didn’t address the Operation and maintenance of facilities. walkways.  25% of the household in the City doesn’t have legal tenure.25% of the population in Indore is living in the slums as per census definition of Slums. as per the slums notified under Madhya Pradesh (Slum Clearance and Improvement) Act. which were covered under ODA Project. In Indore 50% of the Housing (Informal Housing) is been developed upon 20% of the Land.  Low literacy levels in slums as compared to the City (88 percent and 70. It goes up to 35%  52% of the slum population in Indore lies in 15-50 years age group which reveals the higher percentage of working population. asphalt roads. but the facilities are under deteriorated conditions as there were no provisions for operation and maintenance of facilities. as against 89 percent and 74.  Only 40% of the slums.Tenure security. while 9% of the households have got Patta from Government of Madhya Pradesh. (LIG 40%.  There are lots of government interventions been implemented towards betterment of the slum community such as: o Patta.ODA (IIHP) Project o UNECEF efforts in Community development.

Interventions such as VAMBAY should be taken as a positive initiative of integrated development of slums and rehabilitation of slums. 80 .

Moreover. post-1998. Now. The third phase of municipal accounting reforms is more recent that is. work commenced in 1990 and continued till 1995 with varied results. it insisted on the introduction of accrual-based accounting in six municipal corporations and one municipal body (Anand). In Mumbai. Incomplete accounts. as part of its financial assistance to the Gujarat Urban Development Project in 1985. the double entry accrual-based accounting system was introduced at the insistence of the World Bank. double-entry accounting system. pending financial statements and unaccountability are only some of the issues that these urban local bodies face. At both places. unclear financial positions. This report reviews the experience of Indore Municipal Corporation’s in this reform and draws lessons from it As stated ealier. the introduction of an improved accounting system in the Anand (Gujarat). the exercise was limited to a water supply and sewerage project and was not applied to the municipal corporation’s entire accounting operations. single-entry accounting system. which has several lacunae. the real momentum has come in the mid-1990s as the country’s economic liberalisation and structural reforms created a conducive atmosphere.municipal accounting reforms in India are barely two decades old. attempted to apply the reforms to all accounting operations. The Chennai Municipal Corporation. This includes the TNUDF-sponsored state-wide municipal accounting reform programme in Tamil Nadu. while they are in dire need of finance to fund their development expenditure. on the other hand. While the first decade saw a couple of experiments. The first decade (1981 to 1991). when. Once the World Bank finalised the consultants for the project. Almost all the 4400-odd municipal corporations and bodies in the country follow a cash-based. The second series of municipal accounting reforms (1990-1995) too came at the behest of the World Bank.Chapter-6 Double Entry Accounting System in Indore Municipal Corporation Municipal accounting reforms in India can be traced back to 1981. the lack of transparency on their financial status makes it difficult for them to raise funds. some municipal corporations across the country have made the transition to an accrualbased. saw only two experiments at Mumbai and Chennai. Jaipur (Rajasthan) and Tumkur (Karnataka) municipal bodies at the behest of the Asian Development 81 . in fact. The need for municipal accounting reforms in India is clear.

cash-based. Indore Municipal Corporation (IMC) began its reform process in 1999. sewerage provided to them • Similarly there was inadequate data regarding employees of IMC. 1. standards or regulations • Incomplete or pending accounts.The Pre. For instance. their pay roll and other liabilities regarding the employees • Lack of data regarding assets and liabilities of IMC IMC initiated computerization to address these problems and as part of it implemented its accounting reforms to address the following problems: • Manual. including accounting reforms and computerisation efforts. Bangalore Agenda Task Force. when it decided to computerise its systems and create databases on various accounting heads such as tax collections and payroll. the corporation began pursuing these reforms. Transition as a computerisation project: Municipal Accounting Reforms in Indore. • Improper classification of receipts and payments • No observance of accounting policies. no regularity or consistency • Inability to prepare financial plans or budget Prior to the reforms. initiated a project to improve the Bangalore Municipal Corporation’s accounting system. This brought to light various grey areas in the existing system.Bank (ADB) and reforms in the Mirzapur municipal corporation (Uttar Pradesh) under the Ganga Action Plan. their tax assessment value and services like water. The classification used was even confusing to the corporation’s employees 82 . Hence. it suffered from the classical shortcomings of this system: ƒ Prior to 1998-99. commercial and other). The administrative and revenue mobilisation Indore Municipal Corporation too undertook reforms. There have been some individual experiments as well.reform Scenario • There was total lack of data regarding properties in the city(residential. between 2001 and 2003. the citizens’ group. Accordingly. single-entry system. IMC maintained its accounts manually on cash. single-entry accounting system. and decision-makers in the corporation realised the need for accounting reforms. the accounts did not effectively differentiate between revenue and capital receipts and payments.

With a technical partner. the technical partner. It was not possible for it to prepare an income-expenditure statement or a balance sheet 2. The scope of the reforms broadly covered the following: ƒ Computerising the accounting system and process ƒ Converting the accounting system from a single-entry. It assigned account codes to each item in its budget and created cost centres for effective cost analysis. double-entry system. thoroughly studied the existing system. The corporation’s employees have 83 .The Scope of Reforms Since IMC implemented its accounting system reforms in-house. IMC’s officials went on a study tour of various municipal corporations. it did not set any formal TOR for the assignment. its cash position was not ascertainable and bank accounts were not reconciled for years ƒ Errors and omissions were commonplace ƒ It took months to finalise the accounts and that too. IMC developed a new customised accounting software to computerise its accounting processes. including practising chartered accountants.1The Reforms A panel of experts. Initially. In the second stage of computerisation. they strongly recommended that the corporation shift to an accrual-based. handled high-volume transactions such as payroll accounting and maintaining records for taxes such as property tax and water charges. inadequately ƒ Up-to-date information on finances was seldom available ƒ The asset-liability position could not ascertained ƒ Maintaining accounts was time-consuming and manpower-intensive. which was examined afresh and various income and expense heads that had not been included in the previous budget were now added in the new one. It also adopted a revised format for the budget. accrual-based system ƒ Separating the capital account from the revenue account. containing separate budgets for capital and revenue receipts and payments. These were included in IMC’s budget. ƒ The budget was the only financial document prepared by the corporation. examining their budget and finally. In a detailed study report. 2. these functions were shifted to IMC. cash-based one to a doubleentry.ƒ The corporation had not prepared its cashbook for years. adopting their best practices.

payrolls and the like. No accounting consultants or expert teams were appointed nor was there any formal TOR. No accounting manual was prepared nor did it pass any formal resolution to maintain accounts on the double-entry accrual-based accounting system. double-entry accounting system. IMC’s accounting reforms evolved as part of its overall computerisation and database creation drive. water charges and other tax bills. 3.1 Indo-USAID FIRE (D) Project: 84 . It now maintains its daily accounting transactions on the improved double-entry accrual system. the technical partner will continue to provide technical assistance to IMC for a period of five years to ensure the smooth running of the system. While computerizing these processes and creating the database. IMC appointed a qualified chartered accountant on a retainership to implement the accounting reforms. Step –by –step. The corporation formed the opening balance sheet for 1999-00.The principal actors in IMC’s accounting reforms were: 3. from May 2000.2 The Reform Process The reform process at IMC followed a uniquely informal path. a private firm offering computerization and electronic data processing solutions was appointed to create computerized databases on and electronic processing of property taxes. it converted the different modules of the accounting system into the double-entry and computerised system. Accordingly. On its part. IMC and the firm felt that the accounting system should be converted into a double-entry system to achieve better results from the data processing reforms. The accountant worked full-time and was given all administrative and financial powers. install adequate hardware and deliver the output to IMC. Thus. this firm was to develop the necessary software application. IMC now has a regular Chief Accounts Officer to take care of administrative matters while the professional retainer takes care of the accounting system. As part of its agreement. Under the agreement. 2. Instead.been trained to use the computerised accounting system. Thus. the software firm then designed customised software to introduce an accrualbased.

and were a part of an overall reform process that covered various areas. Thus. and invested Rs. it was responsible for the computerisation process. 3. In terms of human resources. 0. 3. initiated and implemented them on its own. one qualified accounting professional. • The new accounting system is largely complete and yet IMC needs to give it a holistic framework • There are no symbiotic relationships or matrix structures between the chart of accounts and the budget code.5 million for developing the software and creating accounting databases. the Fire (D) Project has helped IMC through capacity-building programmes. The budget coding needs to be rationalised.4 The Duration IMC’s accounting reforms started in the year 2000. 3. 3.5 The Resources IMC spent around Rs.Since 2000. 10 IMC employees and one supervisory employee from the software firm worked exclusively on this transition.3 million on implementing the accounting reforms. 3. it has spent Rs.6 The Current Status IMC’s accounting reform efforts are unique and laudable as it has conceived. 0. It also paid Rs.3 Oswal Data Processors (ODP): As IMC’s technology partner. optimally utilising its assets and good governance. It also provided technical assistance for increasing IMC’s revenue base. in the past . 1.5 million as retainership charges to the accounting professional.3 million on computer hardware for the accounts department. 85 .2 CRISIL Infrastructure Advisory: It prepared a Management Action Plan for IMC in 2001 and deputed its team to help the corporation in its revenue generation and resource mobilisation efforts. 0. It neither received any technical or financial assistance from any organisation nor was it compelled by any higher-level government to adopt the reforms.

The Results Although IMC’s accounting reforms are still incomplete. it has not been operationalized. • Advances given and adjustments made against them (suspense account operation) are not accounted properly. payments and arrears are accounted separately.7 Some of the specific achievements of IMC’s accounting reforms are: ƒ Clear distinction between capital and revenue receipts and payments ƒ Revenue and accounts departments are now integrated. as per the accrual basis 86 . Entries are cross-checked and matched with the accounts department ƒ Cost-centre-wise reports are generated for better control with effect from 2003-2004 ƒ The new system automatically generates project-monitoring figures ƒ Previous year’s receipts. • The present computerised accounting system does not have an online fixed assets or capitalisation module nor does it automatically update the balance sheet online.• The bifurcation between revenue and capital receipts and payments needs to be rationalised further. Extra-ordinary receipts and payments need to be removed from these heads and there should be a separate budget for such items. Hence. provident fund. the bank statements are not reconciled adequately. IMC can prepare cost-centre-wise reports. improved ƒ Superior and timelier information on the corporation’s financial position is now available. it has achieved the following results: ƒ The entire accounting system has been computerised ƒ The corporation maintains separate cash and bank books ƒ It maintains various ledgers on the double-entry basis ƒ An accounts statement is prepared each month ƒ A provisional trial balance and balance sheet are prepared ƒ The accounting work has become professionalized as the corporation is using the fulltime services of a chartered accountant to run and improve upon the accounting and budgeting process ƒ Various allied functions like payroll accounting. employee loans and employee attendance have been computerised and have thus. • Although the accounting software has a bank reconciliation feature. budget variance reports and other types of MIS reports ƒ The computerised system has brought in flexibility as it can easily accommodate growth in the volume and nature of financial transactions over a period of time 3.

covering all aspects linked to the accounting system 4.ƒ An accounting head-wise budget is prepared and its variances are regularly generated ƒ Various types of MIS reports can be generated within no time ƒ The head office and zonal offices have separate accounting systems but the zonal system’s data is regularly merged with the head office data. double-entry accounting system is the first of its kind in Madhya Pradesh and has. It is currently planning to raise Rs. it repays its loans regularly. priority was given to those measures that benefited the public. it could raise Rs. 400 million through a municipal bonds issue. ensuring public support and enthusiasm • The exercise involved more than accounting issues. Also. has started implementing accounting reforms. earlier. crucial personnel were taken into confidence and were involved in designing and implementing the reform measures • Measures that were easy to implement and which had an immediate and visible impact were implemented first. 50 million by privately placing the first of its kind Indore Development Bonds. another city in Madhya Pradesh. become a role model for other ULBs in the State. some were state-level ones. Some were simple. therefore. IMC has shared its experience in introducing a new accounting system with the state government so that it can be replicated elsewhere. taken up by a municipal body on its own. Some of these initiatives were individual efforts. 4. 3. IMC defaulted on its loan repayment. Moreover.1Lessons Learned The various municipal accounting reform initiatives that have taken place in India over the past two decades epitomise the diversity and heterogeneity for which the country is known.8 The Key Elements Hands-on and direct involvement of political leadership and top management • At each stage.The Impact Assessment IMC’s accrual-based. Jabalpur. • Similarly. But now. This reduced the opposition to change and removed apprehensions. Motivated by this and taking a lead from it. involving more than one municipal body. workable and 87 .

bottom-up or organisation-wide. 4.1 million to 5 million population. The willingness to reform was certainly low in the first decade of municipal accounting reforms perhaps because they were ahead of their time. which may be topdown. steps and processes. The success of these reforms is not confined to any specific type of initiative. If the need is felt internally. 88 . Accounting reforms initiated by an individual municipal body have achieved as much success or failure as those initiated by state governments. well-structured opinion-building exercises for all stakeholders go a long way in Apart from these factors. Felt Need and Opinion Building The most important factor influencing the success of the accounting reforms was the local ownership of the process. 4. Economic liberalisation and structural reforms in the 1990s changed the urban scenario and the new challenges that arose indirectly created the willingness to reform. there will always be some problems while running the new accounting system that will warrant expert technical help and supervision. double-entry accounting system. Regardless of the implementation approach. high-tech and widespread or part of a holistic reform scheme. A high willingness to reform provides a strong base for any reform. a comparative study also reveals the following implementation stages and how municipal bodies have approached these implementation stages or steps.4Post-Reform Blues This is the last stage in implementing accounting reforms. it exists among members of the organisation. the municipal bodies undergoing the transition varied in size.minimal initiatives while some were more complex. that is. The success of any transition thus depended on a permutation and combination of various factors. Opinion-building efforts too can help generate the need for and ownership of the reforms. 4. ranging from 0. In spite of a perfectly designed and meticulously planned and executed implementation. the process must ultimately create a sense of ownership within the municipal body to succeed. Different strategies and processes were employed to implement the transition to an accrual-based. Again. Besides.3 Willingness to Reform This factor is closely associated with the felt need for and local ownership of reforms. it goes a long way in creating local ownership and making the reforms a success. Local ownership stems from the felt need for reforms. Some initiatives succeeded because of the assistance provided by a lending or donor agency but there were some that received this that were not so successful as well.2 Local Ownership.

in/nurmudweb/cdp_apprep_pdf/. and 2010) IMC Annual reports (2005-2010) JNNURM Cell.wikipedia. The GoI has duly accepted this report and state governments have been asked to implement accounting reforms in a time-bound manner. During this period. live support from professional consultants should be available to the municipal body so that they can access corrective inputs whenever needed. 4. the Government of India (GoI). 2009. Indore City Census Report 2001 89 . The ICAI has also published a technical guide on accounting and financial reporting by ULBs. on the recommendation of the 11th Finance Commission./CDP-Indore.pdf IDA Annual Reports (2008..nic. It is in the process of formulating accounting standards for government bodies on the lines of the International Public Sector Accounting Standards (IPSAS) issued by the International Public Sector Committee of the International Federation of Website: jnnurm. especially from the not-so-successful transitions.Even good capacity-building programmes do not create the ability to deal with these issues at the first instance. which submitted its report in December 2002. The GoI has also included municipal accounting reforms as one of the 10 crucial urban reforms that state governments should facilitate and is offering incentive grants for the same under its Urban Reforms Incentive Fund Scheme in JNNURM. requested the C&AG to finalise accounting policies and budget formats for ULBs.References: http://en. The C&AG constituted a task force to formulate accounting and budgeting formats for ULBs.5 Recent Developments Learning from the experience of the country’s municipal accounting reforms so far. The post-reform blues period can vary from a minimum of a year (preparation of first year-end balance sheet) to a maximum of three years after completely switching over to the new accounting system. 5.