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

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
 Future challenges.
Indore Municipal Corporation
Indore Nagar Palik (Municipality) was established
in 1870 and given its present status of a
Municipal Corporation in 1956.
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%)

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.

Reform Efforts
Improvements carried out
Revenue generation
• Self-assessment of
property tax on areabased system
• Reassessment of underassessed properties
• Focus on revenue
management
Enabling steps
• Property surveys
• Reorganization of
Revenue Dept.
• Accrual-based
accounting
• Computerized billing
and database mgmt.
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.
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.
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.

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
Reform Efforts
 USAID FIRE Project support to IMC to
Improve revenue base

Resource Mobilization Initiative


Management of Municipal Assets



Study conducted by CRISIL Infrastructure Advisory
Inventory of municipal assets
Optimal use of municipal properties
Energy Savings Program.
IMC’s Achievements
Total Revenue
Rs. 42 crore
Rs. 126 crore
1995-96
2001-02
Own Revenue
Rs. 16 crore
Rs. 56 crore
IMC’s Achievements
Water Charges
Property Tax
7.4
8
7
35
29
5
3.7
4
3
2
1
25
0
1995-96
2001-02
20
License Fee
15
3
10
2.5
6.5
2.5
Rs. Crore
Rs. Crore
30
Rs. Crore
6
5
0
2
1.5
1
0.5
1995-96
2001-02
0.15
0
1995-96
2001-02
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.
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.
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.
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.
Thank You