11 th Five Year Plan of Karnataka – Perspectives and strategies for Urban Development

1. Government of Karnataka, Urban Development Department 11th Five Year Plan of Karnataka – Perspectives and strategies for Urban Development Smt. Lakshmi Venkatachalam, IAS., Principal Secretary to Govt., Urban Development Dept., Government of Karnataka. May 2007

2. Karnataka at a Glance

3. Urban Scenario in Karnataka • 4th most urbanized among major states in India • 34% of population (2001 census) in urban areas which is above the national average of 28%. • There are 219 Urban Local Bodies in the State comprising • Migration and natural increase are causative factors for this • Rapid pace of urbanization has resulted in “infrastructural deficit” in all the cities/towns.

4. Karnataka Policy Initiatives • Policy statement on drinking water supply and sanitation • Policy on integrated Solid Waste and Disposal Management. • Policy on Rain Water Harvesting • Policy on Waste to Energy • Reforms carried out under Nirmala Nagara Yojane • Reforms agenda under JN-NURM

5. Municipal Sector Reforms • Introduction of Self Assessment of Property Tax in all ULBs • Double Entry / accrual system of Accounting implemented in 63 ULBs • Computerisation of 57 ULBs nearing completion • - GIS supported property tax, public grievance redressal, birth & death records, integrated financial system. • Cadre & Recruitment rules amended 2004; • -- 90 cadres rationalized to 40 • Augmented skilled staff recruited / taken on contract for proper delivery of services • Scaling up to all 227 ULBs planned during first 2 years of 11th Five Year Plan.

6. Investments in Urban Sector • The key sectors for urban investment are identified as follows: • Urban Infrastructure • Water Supply & Sewerage • Traffic & Transportation • Solid waste Management • Urban Mapping • New Township projects in BMR. • Services for Urban Poor - Poverty Alleviation - Improvement of Slums • The major means of financing envisaged are: • Centrally Sponsored Schemes • Internal and extra budgetary resources, • External financing and PPP route.

7. SFC’s recommendations are in place since 1997-98 Share of ULBs have increased from 2.73% (Rs.193 Crores) of State’s revenue receipts to 6.5% (Rs.1530 crores) in 2006-07. This will further increase to 8% by 2009-10. Strengthens the ULBs capacity to meet O & M costs and establishment costs. However with new capacity creation under KMRP, NKUSIP, and UIDSSMT, financial framework of ULBs needs review . This study is presently being carried out by KUIDFC. Third SFC constituted. Investments – Devolution of State Finance Commission Grants to ULBs.

8. Investments - Urban Infrastructure (UI) • EAP (Externally Aided Project) • Rs.7000 crores planned for UI during 11th Plan period in 71 ULBs. • Regional imbalances of North Karnataka to be focused upon • City Investment Plan (approx Rs.700 crores) proposed for balance 146 ULBs during 11th FY plan. • CSS ( JNNURM & UIDSSMT) • Under JNNURM • Rs.22,536 crores of investment proposed for Bangalore. • Rs.1950 crores of investment proposed for Mysore. • Under UIDSSMT : • Rs.2000 crores (approx) for 150 small & medium towns proposed.

9. JNNURM /UIDSSMT current status Project approvals JNNURM Rs. in Crores No. Project Cost • Project approved so far 16 Rs.1422.00 • Projects in pipeline 51 Rs.6315.00 UIDSSMT Rs. in Crores No. Project Cost • Project approved so far 23 Rs.344.77 • Projects in pipeline 20 Rs.340.00 Strategy for 11th FYP • Greater thrust to be given to tier II & tier III cities for 100% coverage of water supply, sanitation and solid waste management with increased allocations during 11th Five Year Plan

10. Reforms Agenda Mandatory Reforms : State Level • Effective implementation of decentralization initiatives as envisaged in the Constitution (74th CAA) • Repeal of Urban Land (Ceiling & Regulation) Act 1976 • Reform of Rent Control Laws, by balancing the interests of landlords and tenants • Rationalization of stamp duty to bring it down to no more than 5% within 7 years • Enactment of a public disclosure law • Enactment of a community participation law, so as to institutionalise citizens participation in local decision making • Association of elected municipalities with the city planning function

11. Investments – Water Supply & Sewerage • This Sector will be a major priority in 11th FYP • Provision of surface water currently available to only 166 ULBs out of 208 covering 78% urban population. • Coverage of sewerage is only 28% in the urban areas of the State • 42 towns would be covered in 11th FY period by investing approx about Rs.1300 crores. • Rs.3000 crores required to raise coverage of UGD in 120 towns during 11th FY plan. • Water Supply and sewerage for Greater Bangalore area also needs to be prioritized – CDP for Bangalore envisages investment of Rs.2783 crores.

12. Investments – Traffic & Transportation • Focus on public transport & multi modal options are important for growing towns/cities. • Separate Directorate of Urban Land Transport (DULT) created under the Urban Development Department. • CTTS for Bangalore being finalised by RITES. Required to commission CTTS for other Corporations across State. DULT will carryout this task. • Bangalore Metropolitan Land Transport Authority established – as envisaged under NUTP • Bangalore’s Metro Rail Project : Rs.6400 crores. • Investment plan under CDP for Bangalore is envisaged at Rs 7536 crores. Assessment for other corporations as also CMC/TMC needs to be worked out separately.

13. Investments – Solid Waste Management • 8500 MT of MSW generated in the State per day • Under ISWM Policy, 162 ULBs possess landfill sites and EIA clearance • State’s Integrated Solid Waste Management project includes • Door to Door collections • Closed transportation of garbage • Scientifically engineered Land fills • Composting • Waste to Energy generation • An investment of 75 Crores has already been made under 11th Finance Commission, ADB & BMP Grants • Major thrust in 11th FYP : requirement of funds Rs.800 crore, for Bangalore alone.

14. Investments - Urban Poverty Alleviation • Major focus will be: • Employment generation, provision of housing & proper living conditions, assurance of tenurial rights for the poor. • Provision of housing basic facilities and amenities taken up under JNNURM, IHSDP. • Supporting establishments of mini industrial estates with civic infrastructure in 79 backward ULBs planned -Rs. 200 crores required. • Coverage of urban poor under SJSRY has been only 20% (approx. Rs. 130 crores). Scope of SJSRY to be renewed & improved. • For 11th FY Plan, Rs.425 Crores (or about Rs.75 crores/annum) should be provided under SJSRY. (10th Plan outlay was Rs.56 Crores)

15. Investments – Urban Mapping • Urban mapping through aerial photography of 27 large urban areas taken up & completed in the 1st two years of 11th FY period under GOK funding. • The cities with 50,000 plus population need coverage with funding under CSS of National Urban Information System. • Urban mapping in Bangalore taken up by planning commission/NIC • City survey in 46 towns completed. To cover all the 227 ULBs Rs.200 crores required during 11th FY period. • Capacity building of urban town planners for infusion of skilled planning.

16. Investments – Township projects to decongest Bangalore • 5 townships around Bangalore to be setup through PPP & SPV routes on the concepts of live, work and play. • All infrastructure facilities such as Ring Roads, Radial Roads, planned to improve road networks between new and existing townships. • GO issued on guidelines for setting up of townships.

17. Greater Bangalore • Greater Bangalore formed by merging Bangalore Mahanagara Palike with 7 CMCs, 1 TMC & 110 Villages covering 741 Sq. Kms of area. • Final notification issued on 16-01-2007 • Delimitation to be taken up – agency already in place • Amendments to KMC act pending • Committees set up for addressing • (a) Infrastructure • (b) Organisational issues • (c) Governance • - have commenced work & final reports are expected in May 2007

18. Thank You