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Presentation by Nitesh Vyas I.A.S Commissioner, Indore Municipal Corporation

Sustainable Municipal Resource Mobilization in Indore Municipal Corporation. Presentation by Nitesh Vyas I.A.S Commissioner, Indore Municipal Corporation. January 2003. Structure of the Presentation. Introduction to Indore Municipal Corporation Reform efforts IMC’s achievements

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Presentation by Nitesh Vyas I.A.S Commissioner, Indore Municipal Corporation

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  1. Sustainable Municipal Resource Mobilization in Indore Municipal Corporation Presentation by Nitesh Vyas I.A.S Commissioner, Indore Municipal Corporation January 2003

  2. Structure of the Presentation • Introduction to Indore Municipal Corporation • Reform efforts • IMC’s achievements • Future challenges.

  3. Indore Municipal Corporation Indore Nagar Palik (Municipality) was established in 1870 and given its present status of a Municipal Corporation in 1956.

  4. Introduction to IMC • Municipal area of 130 sq km (51 sq miles) • Population of 1.7 million • Population growth of 44% between 1991 and 2001 • Trade and commercial center of the State of Madhya Pradesh • Large center for textile, engineering and machinery industry • Municipal income in 2001-02: Rs. 135 crore • Main sources of income: Property tax (21%) and Octroi compensation (44%)

  5. City Development Strategy • IMC developed a City Development Strategy (CDS) with public consultation and support from the Urban Management Program • Main objectives of CDS are: • Improved delivery of services; • Resource mobilization with focus on management; • Expenditure management; and • Better communication with the citizens.

  6. Reform Efforts Improvements carried out Revenue generation Enabling steps • Self-assessment of property tax on area-based system • Reassessment of under-assessed properties • Focus on revenue management • Property surveys • Reorganization of Revenue Dept. • Accrual-based accounting • Computerized billing and database mgmt.

  7. Reform Efforts • Computerization • Private agency for software and database creation • Connectivity between all zonal offices and HO • Computerized cash collection counters at all zonal offices • Integrated database of property tax, water connections and business licenses • Linkage between revenue and accounting modules • Tax information on internet for transparency • Others • Project monitoring • Digitization of maps and GIS.

  8. Reform Efforts • Decentralization to Zonal Offices To facilitate better services to the citizens • Assessment and collection of all taxes • Issue of business licenses • New water connections • Birth and death certification • Maintenance and capital works (roads, water works, etc.) • Health and sanitation services • Public grievance and their redressal.

  9. Reform Efforts • Reorganization of Revenue Department • Creation of 3 separate sections for Survey, Assessment and Recovery, vigilance teams also constituted • Financial Management • Computerized double-entry accrual-based accounting • Communication with Citizens • Citizen’s charter issued, timebound permissions • ‘Nagrik’- magazine on municipal management • Hoardings with important information, dates, rules, etc.

  10. Reform Efforts • Capacity building • Training all of all Revenue Dept staff by Institute of Mgmt Studies • Data sharing with other Government Depts. • Registrar Office • MPEB • E-Governance • Functional website

  11. Reform Efforts • USAID FIRE Project support to IMC to Improve revenue base • Resource Mobilization Initiative • Study conducted by CRISIL Infrastructure Advisory • Management of Municipal Assets • Inventory of municipal assets • Optimal use of municipal properties • Energy Savings Program.

  12. IMC’s Achievements Total Revenue Rs. 126 crore Rs. 42 crore 1995-96 2001-02 Own Revenue Rs. 56 crore Rs. 16 crore

  13. IMC’s Achievements

  14. Other Achievements of IMC • Social security network • Accident insurance for all citizens • Health insurance for senior citizens • Public participation in construction of cement/concrete roads • Environmental upgradation • ‘Pitra-Parvat’ urban forestry project • Rs. 15 crore expansion of the city zoo • More than 8 flyovers/bridges under construction.

  15. Key Success Factors • Hands-on and direct involvement of Mayor and Commissioner • Crucial personnel involved in design and implementation • Simple measures implemented with immediate and visible effects • Priority to those measures that benefit the public.

  16. Replicating IMC’s Success • Local Champions • Appropriate State Government Support • Good M.I.S • Simplify Procedures for Assessment, Billing and Collections • City Challenge Fund (CCF) could Support Additional Expenditure to Introduce Reforms.

  17. Future Challenges • Continued focus on revenue mobilization • Rationalization of taxes • Improved cost-recovery in water services • Cost-benefit analysis of new projects • Heavy investments needed in improving the infrastructure. • Capacity building of staff.

  18. Thank You

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