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TOWN LEVEL BACKGROUND PAPER ON

INDORE (MP)

FOR THE URBAN INDIA REFORMS FACILITY (UIRF)

AT THE SCHOOL OF HABITAT STUDIES

TATA INSTITUTE OF SOCIAL SCIENCES

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PREPARED BY INDORE SCHOOL OF SOCIAL WORK INDORE (MP)

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

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Part-3

Town Level Background Paper (Indore City)

Table of contents

Chapters

1. Indore City Profile 1-25 2. Indore City Development Plan: An Appraisal 26-35

3. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in Indore City 36-43 4. Current Status of the ULB in Indore 44-61

5. Basic Service for the Urban Poor (BSUP) in Indore 62-73

6. Double Entry Accounting System in Indore Municipal Corporation 74-81 References 82

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PREFACE

The urban India with over 285 million people residing in 5161 cities and towns constitute the worlds second largest urban system. Around 1/3 rd of the countrys 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 consequences.

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

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Academic Partners (SAP) with considerable insight into socio-economic and political issues prevailing in the state.

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. As per the agreement, the Indore School of Social work was expected to prepare the following knowledge products.

(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. Ratoola Kundu from the School of Habitat Studies, TISS Mumbai and research experts from PRAYAS, Pune and resource persons form the JNNURM cells of Bhopal, Ujjain and Indore.

At Indore school of social work a research team was set up under the guidance of Prof. Jacob Thudipara with Ms. Shyamly Sharma as Research Officer and Mr.Deepesh Choukse as part time Research Assistant. I take this opportunity to thank them all for the hard work they have put in for the collection, processing, analysis and presentation of the report. I also thank the experts form TISS particularly Prof. Ratoola Kundu, and experts from PRAYAS, Pune for the guidance that were given at different stages of the preparation of the report. We also thank Mr. Anand Lakhan and Mr.Avinash Bhatheja, City Collaborators, for Indore and Sandeep Ganvir City Collaborator for Ujjain for their help in the compiling of the report of the respective towns.

We hope that the report will serve the intended purpose for which it is prepared.

Prof. Jacob Thudipara

Research Director

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Chapter-1 Indore City Profile

Indore, a 2.0 million plus city today has transformed from a traditional commercial urban

center into a modern dynamic commercial capital of the state.

Indore, 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, the Khan and the Saraswati. 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 the

beginning. It is the biggest commercial center and is termed as the business capital of

Madhya Pradesh.

1.Historical Background

1.1 Early Indore- Juni Indore

Indore owes its early growth to trade and commerce, which is still a dominant feature of the

city. The present city is about 400 years old settlement. Till the end of 15th century its

original nucleus was a riverside village, which occupied the bank of river Saraswati. This area is

now known as Juni Indore.

Indore situated on the plateau of MALWA was just a village called Indur/Indurpuri. The

name Indore is attributed to the Rashtrakut ruler Indra on whose name the village must

have derived its name. According to some myth the name of Indore was derived

from the name of Indrashewar temple. The Indore Kasba is mentioned in some of the

documents in the late 17th century during the rule of Aurangjeb, the famous Mogul ruler.

The little village grew as an important halting place for pilgrims travelling between great

religious cities, Ujjain on the bank of the Holy River; Narmada and Omkerashwar. 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. The

Zamindars of village Kampel (about 10 km. S.E) visualized the opportunity of

flourishing trade in this settlement and settled on the banks of the river Khan. To withstand

the foreign invasions, Zamindars built a castle, giving this village a character of a walled town,

although the town hardly suffered the destruction of feudal wars.

1.2Holkars Indore

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There is no firm date about establishment of Indore as a city. It is believed that the

village of Indrashewar gradually developed into a Kasba, then to a Pargana and finally

as a important town on 29th July1732, when Bajirao Peshwa-I granted Holkar State

(Jagir) by merging 28 and half parganas and then providing this Jagir to the MALHARRAO

HOLKAR, the founder ruler of Holkar Dynasty.

He ruled the state from 1728 to 1766.During this period development was primarily

for military and commercial establishment. Later the boundaries of the state were

amended and Maheshwar was also included in the Jagir. In 1818 the capital was shifted

from Maheshwar to Indore, through the proposal was initiated by Rani Ahilya Bai,

daughter-in-law of Malhar Rao Holkar.

Establishment of Holkars capital at Indore provided new forces for development of the city. In

view of the defence needs, the three roads, one leading to polo ground, the other to State

stable now M.T. Cloth Market, and the third Topsham Road were first to develop. All the

defence establishments were located on these roads, location of defense establishments

were at a reasonable distance from the civil population. The town, which was called

Indur, under the influence of Maratha rulers, must have been called Indoor which

under the influence of British must have further distorted to Indore.

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, Krishna Bai Chattri and roads were constructed. With the

introduction of Railways in 1875 the business in Indore flourished. During the regime of

Maharaja Shivaji Rao, Holkar college, Moti Bunglow was constructed. 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. As the British defeated

the Holkars (Tukojirao II) and Scindia at Mahidpur, a Mandsaur treaty was signed by

virtue of which Indore was again made the capital. A residency with British resident was

established at Indore, but Holkars continued to rule mainly due to the efforts of their

Dewan Tatya Jog. In fact during that time Indore was established as Head office of British

Central agency.

1.3 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.

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Manikbagh palace, Maharani Saraya, Gandhi hall, Old High Court Building,

Yashwant Niwas, Tukoji Rao Hospital were constructed during his tenure. In 1906 Electric

supply was started in the city. 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.

1.4Post Independence Indore

In 1948, the Holkar State acceded to Indian Union. With the formation of Madhya Bharat,

Indore became the capital of the state. The present Commissioner Office then

was used as Ministry office and the assembly session were held in Gandhi hall.

The first ever-planning intervention in the post independence period was in the form of

Indore Development Plan (1974-1991), which was published and adopted under 18 & 19 of

Town & Country Planning Organisation Act -1973. The plan envisaged planning

area was 21,410 hectares, out of which 12,145 hectares were provided under different

uses for 12.5 lakhs population.

Indore Development Authority and Madhya Pradesh Housing Board have played an

important role in implementing the Development Plan 1991 besides private

colonizers and Co-operative Housing Societies.

Indore a nearly 2.0 million city today has transformed from a traditional commercial urban

center into a modern dynamic commercial capital of the state.

1.5Location and Linkages

Indore city is linked by three modes of transportation viz. Road, Rail and Air;

Regional road pattern fans out in all directions. The National Highway (Mumbai-Agra

Road) passes through the citys habited area. State Highways and other roads

connect the city with the State Capital Bhopal, all District Head Quarters of the Division

and important towns within the District.

The city is, served by a broad gauge and meter gauge railway line. The Railway line passes

through the heart of the city, which forms a physical barrier for, inter

communications within the city. The city is also served by a regular air service, which

connects it to Mumbai, Bhopal and New Delhi.

Indore City is located in the center of Indore District. It is situated on fertile Malwa plateau,

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located at 22 43 N latitude, 76 42 E longitude. Indore is located at an average altitude of 550

mts. above MSL.

2.Physical and Geographical Character

2.1Physical Features

The entire city of Indore, having a municipal area of 134.0 Sq. Km. lies in Khan River basin.

The river and its tributaries traverse through the densely populated area of the city. The city

occupies a relatively flat plateau having a gentle slope towards north.

The hinterland of the city is scattered with some hillocks. There are no physical

constraints except Pipaliyapala Tank on the south-eastern side and Sirpur Tank in the

southwest, which may limit or condition the growth of the city. The highest and the lowest

contour levels in the city are 590 m and 540 m, respectively.

The city has black cotton soil varying in depth from place to place. The cross section

at various places shows an order of soft soil till 5 ft., hard soil till 15ft., red-soil still 30 ft, after this

the rocky terrain extends to 100 ft and below.

2.2Climatic Conditions

The city enjoys a composite climate with extended hot humid period from July to

September, winter period from November to February, summer period from April to June

and a temperate climate from October to March. The climate of the area is typically

seasonal. There are three distinct dry, wet and cold seasons. The mean daily temperature is

about 25.1 C throughout the year.

2.3Winter

In winter (November-February), the night low is around 10C at the peak of winter, it can be

as low as 2 to 3C. The record low is +1.5C.

2.4Summer

During summer (April-June), the days are hot (35-40C) with the peak summer (May) day

temperature sometimes touching 45C. Due to its location on the southern edge of the Malwa

Plateau, however hot it may be during the day, in the late evening, cool breezes make the

evenings quite pleasant, and thus Indore is referred to as Shab-e-Malwa.

2.5Monsoon:

Indore gets moderate rainfall of 30-35 inches (~80cms) during June -September from

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Southwest Monsoon. Apart from this, there is spurious rainfall during winter months.

2.6Wind Direction

The prevalent wind direction is west and southwest in summer months and north and

northeast in winter.

2.7Natural Drainage

"The drainage of the city, as mentioned earlier, is provided by the river system of Khan

including the Rivers Khan and Saraswati along with their tributaries. Khan River originates

about 11 km south of Indore. Three kms. from the origin, it is joined by the Saraswati

River, which has its origin near Machal village. The confluence of the two rivers lies in the

heart of the city western Indore joins Khan river near Sukhaliya village. Bhamori Nallah,

another nallah flowing through eastern part joins Khan river at Kabit Khedi. The rivers are non-

perennial. After January, there is practically no flow beyond village Kelod. The domestic

and industrial waste water from the entire city has its outlet in the rivulets. This water

is utilised for farming purposes in the downstream areas.

The slope of the riverbed upstream is 1:500 and downstream 1:650. The slope is greater till

the confluence point and after this point the riverbed becomes relatively flatter. The river

bed has a gradual slope towards north, without many undulations.

2.8 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. The hinterland of the city is also flat but intermixed

with some hillocks like Bijasan, Gadha, Tekri, Bhuri Tekri, Deoguradia and

depressions at Sirpur , Piplyapala and Bilawali tanks. An area of about 4798 sq.km around

Indore city has been identified as Indore influence region which includes 7 major urban towns

and 946 villages. The four major rivers of the region viz. The Chambal, The Gambhir, The

Khan and The Shipra flow more or less parallel to one another. All these rivers are non-

perennial. The region consists of seven districts viz.Indore, Dewas, Ujjain, Ratlam,

Mandsaur, Dhar and Jhabua. The region is relatively more urbanized and industrialized as

compared to other regions of the state. Out of seven districts, the three urban center i.e.

Indore, Dewas and Ujjain, which are located in a triangular manner in close proximity to each

other, are more urbanized. Dewas is only 35 km. Dewas and Ujjain are 37 km apart.

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The city of Indore is the commercial capital of the state and is of significant importance to the

country. The city is having direct linkages with the Mumbai, Bhopal, and Delhi etc.

Indore is located midway on the 1000 km long Mumbai Agra National Highway - NH-3.

Also it is connected by rail to all Metros.

Pithampur; referred to as Detroit of India due to heavy concentration of Automobile Industry,

is close (25km) to Indore. It has plants of Kinetic Honda, Bajaj Tempo, Eicher Motors,

Hindustan Motors, Larson & Tubro etc. It has also steel plant of Pratap Steel, Kusam, Prestige

and Chirag Ingots. Electronics consumer goods plants of Crompton Greaves, Kores

India, Onida Saka etc. are also located here.

Dewas: another industrial town is also close (35km) to Indore. Among the notable industries

here are Tata Exports, Gajra Group, Steel Tubes, Kesari Steel, S. Kumars, Prestige

Soya, Ruchi Soya, Ranbaxi Laboratories. Dewas also has Bank Note Press of the Govt.

of India.

Mhow; The cantonment town of Mhow (Military Headquarters Of War) established

during WW as a base for British troops in Central India, is also close (22km) to the

city. The latter has a thriving ready-made garment industry as well as shoe and metal

cottage industry. Smocking (a type of design) dresses and leather horses of Mhow are

quite famous.

2.9 Local Transport

Indore has an efficient public transport system. Atal Indore City Transport Services Ltd, a PPP

scheme operates buses and radio taxis in the city. The buses - designated as City Bus today

ply on 36 Routes, with around 170 Bus Stop Stations. There are 225 General Low Floor, 190

Semi-Low Floor and 90 AC Special City Bus being operated under this new service. The buses

are color coded as per their route.

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. This information is displayed

on LED displays installed on the Bus Stops.

For local transport, there are also the options of Auto rickshaw, Van and Local City Ride Buses

called Nagar Seva.

2.10 Education

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Home to a range of colleges and schools, Indore has a large student population and is an

educational centre. Most primary and secondary schools in Indore are affiliated with the Central

Board of Secondary Education (CBSE); however, a number of schools have affiliation

with ICSE board, NIOS board and the state level M.P. Board.

Devi Ahilya Vishwavidyalaya (DAVV), is the major & oldest university of Indore, offering

courses in more than 20 fields ranging from law to pharmacy to management at both graduate

and postgraduate level.

Mahatma Gandhi Memorial Medical College, one of the oldest medical colleges in country

offers varied range of courses in medical sciences.

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.

3.Media 3.1Arts and theater

Ravindra Natya Grah is an important and well known center for theatre and performing arts in

the city. Many artists from around the world perform here regularly. Abhivyakti Centre of Fine

Arts & Performing Arts, Deolalikar Kala Vithika are also similar centers for arts and

theatre.There are also various cultural clubs like Ras Bharati and Kala Abhivyakti, Who invite

performers from around the globe to perform in Indore. Yeshwant Club and Sayaji Club also

sponsor and invite talents from across world.

3.2Electronic media

The radio industry has expanded with a number of private and government owned FM

channels being introduced. The FM radio channels that broadcast in the city include AIR Vividh

Bharathi FM (101.6 MHz), Radio Mirchi FM (98.3 MHz), Big FM (92.7 MHz), Red FM

(93.5 MHz), My FM (94.3 MHz) and AIR Gyan Vani FM (105.6 MHz). State-

owned Doordarshan transmits two terrestrial television channels. Apart from these few local

broadcasting stations also exist.

3.3Print media

There are about 19 Hindi dailies, two English dailies, 26 weeklies and monthlies, 3 quarterlies,

1 Bi-monthly Magazine and one annual paper published from the city. The major Hindi dailies

include the Nai Dunia, Dainik Bhaskar, Dainik Jagran, Patrika, Raj Express, Agnibaan, &

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PrabhatKiran. The major English dailies are The Times of India, Hindustan Times, The

Hindu, Free Press, Business Standard & The Economic Times.

Communication services Indore is covered by a large network of optical fibre cables. There are

three fixed telephone line operators in the city: BSNL, Reliance and Airtel. There are

Seven mobile phone companies in which GSM players

include BSNL, Reliance, Vodafone, Idea, Airtel, Aircel, Tata DoCoMo, CDMA services offered

by BSNL, Virgin Mobile, Tata Indicom and Reliance. BSNL has also launched its 3G services in

Indore.

3.4Sports

Indore has two stadiums, Nehru Stadium and Holkar Cricket Stadium. There are many sports

club for various sports. Lawn tennis - Indore Tennis Club, Indore Residency Club. Basket Ball -

Basket Ball Club. Table Tennis - Abhay Khel Prashal Kabaddi - Lucky Wanderers, 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. It is the home of India's first

National Basketball Academy and has a world class indoor basketball stadium. Indore has

successfully organized various National Basketball Championships. The list of noted players

include C. K. Naidu (ex. Capt. Indian Team),Jamshed Nusserwanji Bhaya, Mushtaq Ali(ex.

Capt. Indian Team), Hiralal Gaekwad, Narendra Hirwani Naman Ojha (Rajasthan Royal IPL) .

Other well-known sportspersons are late Dr. Sharma (Basketball), Kishan Chand, Shankar

Lakshman and Saleem Sherwani (hockey), Kripa Shankar Patel (Olympian wrestler).

3.5Culture:

Indore city has a variety of cultures. Over the years the city of Indore has welcomed people

from all castes, creed and colour. People from all corners of the country have migrated &

settled in the heart of Madhya Pradesh for their livelihood, education or just for its peaceful

culture. People here know to maintain harmony by intermixing and enjoying their life,

irrespective of castes or region and by respecting every religion. A city with abundant social

life, Indore was included in the Guinness Book of World Records [35] for holding the largest tea

party in the world.

3.6Food

Indore is famous for its culinary range and is known for its wide variety of Namkeens, Poha &

Jalebi, Chaats (snacks), Kachoris and Samosas, cuisines of various types in different

restaurants, and Bengali, Muslim, Rajasthani, continental and confectionery sweets, as well as

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exotic dishes such as Dal-Bafla, Nihari Gosht and Bafla-Gosht - a delicacy of Indore and

Malwa Region.

3.7Main festivals

All national festivals like Holi, Baisakhi, Raksha

Bandhan,navratri,Dussehra, Ganeshotsav,Deepavali, Ramzan, Gudi

Padwa, Bhaubeej, Eid and other others like Nagpanchmi, Ahilya Utsav, are celebrated with

equal enthusiasm.

3.8Places of Interest

Annapurna Temple - A Hindu temple, primarily of goddess Annapurna, in the west region of

the city.

Bada Ganpati Temple - This temple houses Ganesha Deity, measuring 25 ft. from crown to foot.

Bapna Statue opposite MY Hospital Jaora Compound - Statue of Sir Siremal Bapna, the

Prime Minister of Indore 1923-1936

Crystal Temple - Digambar Jain temple built by Seth Hukumchand a century ago, with

exquisite glass work.

Deoguradia - The monolithic rock temple built in 7th century. The original Shivalinga is

12 ft under water in a sunken temple above which the present temple is constructed.[36]

ISKCON - Sri Sri Radha Krishna Temple, Hare Krishna Movement in Nipaniya Village,

MR 10, Devas Bypass Road.

Gomat Giri - A Jain (disambiguation) temple with 21 feet statue of Gomateshwara, a

replica of the Bahubali statue of Shravanabelagola. Along with 24 marble temples with

shikhars, for each Tirthankar.[37]

Krishnapura Chhatri - By the banks of the Khan river, it is at a walking distance

from Rajwada.

Lal Bagh Palace - A palace spread across 200 acres (0.81 km2) of land. It is now a

museum and one can see the artifacts of the Holkar era.

Rajwada - A seven-storey palace built during the Holkar era.

Zoo - The zoo in Indore is famous for its unique collection of animals.

Museum - 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. This

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rapid growth in a very short time span is actually the hallmark of Indores demographic

trends.

4.1 Population Growth Trends

The population of Indore City increased from 57,235 in the year 1911 to 16.39 lacs in 2001.

On an average the growth rate in the city has been of the order of 40%. Thus the average

increase for Indore has been higher as compared to the national growth rate (@ 22%),

which can be attributed mainly to the rapid urbanisation of the city. However the decadal

growth rate compares very well with the state growth rate for urban areas, which stands at

44.9%.

As per the census data, the city had experienced a decadal growth rate of 88% during the

decade from 1911-21 and later 52% from 41-51. The growth rate for the city had

experienced a sharp fall at 27% between the years 1951 to 1961. For the periods of 1961-

'71 and 1971-'81respectively the growth rate has matched the state urban growth rate,

while it has slightly decreased to 30% during 81-91.Considering the present population

at about 16.39 as per present census, the growth rate matches the state growth rate.

4.2 Population Growth in Planning Area

The percentage increase of population in 1981, over population of 1971 was 53.80%. The

population growth from 1981 to 1991 was observed as 34.50 % and between 1991 to

2001 as 47.90 %. 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.

Migration is also an important and a dynamic factor in projecting the future

population. However, there are no figures, which can suggest the migration rate or its pattern.

But there are enough evidences to show that migration is indeed a very important

criteria for projecting the population. Many people from small to medium towns

come to Indore. Moreover, people from one area cross over to another area in the same city

due to many reasons. Though these are not seen in overall figures, but have a major

effect on the housing and residential patterns of the city. Such micro level changes and habits

have not been taken into consideration as the figures of growth of population incorporate

these figures.

Table 1 Growth of Indore Planning Area 1975 2003

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URBAN SPRAWL

S. S.No Year Area in Ha Growth in %

1 1975 2284

2 1990 6115 167.73

3 1996 7747

26.68

4 2002 10725 38.44

Source: IRS LISS II, IRS LISS III, Panchromatic data & SOI maps.

4.3 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. The projected population will be

25.34 lakhs in 2011 and 36.71 in 2021, nearly in next 15 years population of Indore will

increase by about more than1.5 times.

Table: 2 Populations Projections for 2011 and 2021

Year Population (In lakhs)

Average decadal growth rate(%)

1981

8.84 +44.68

1991

11.04 +29.86

2001

16.39 +48.46

2011

(Provisional)

25.34

2021

(Projected)

36.71

Source: Census of India, and IDP 2011 Draft

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4.4 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. This figure is too high even when

compared to the population density figures of other cities in Madhya Pradesh State.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. Therefore,

there is tremendous pressure on the existing land and needs to be regularized in the

development plan.

4.5 Literacy

The literacy rate in Indore Municipal area in1991 was higher than the average all India literacy

levels. With regards to the literacy rates, the figures for Indore city are noteworthy.

Although female literacy is lower compared to male literacy the improvement from

68.4% in 1991 to 74.6% in 2001 is quite impressive.

Table : 3 Literacy Rate Comparison

% Literacy

Total Male Female

All India 2001 75.0 65.7 83.3

M.P. Urban 2001 70.8 81.3 58.9

Indore (IMC 1991) 77.1 84.9 68.4

Indore (IMC 2001) 82.1 88.9 74.6

Source: Census of India, and IDP 2011 Draft

4.6 Sex Ratio

The city has shown a continuous growth in the female population. According to 1991 Census,

the city had 900 females per 1,000 males which is almost equal to the State average (Urban)

of 912 females per 1,000 population, 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.

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A lower female ratio indicates difficult housing situation prevailing in the city. The migrant

worker has a tendency to leave his family behind unless he is hopeful of obtaining a house

within his rent paying capacity. Increased rate of house construction will certainly improve

social and cultural life of the city, which is essential for creative and productive life.

4.7 Age Structure of the population

About two fifth of population of Indore are children in the age group of 0-14 year. The working

age population group (15-45 years) is about 56.7 per cent and only 8.8%of the population in

above 50 year of age group.

Indore is a young city. Nearly 55% of its population is below 24 years of age. With abundance

of academic institutions in the city the teenager group is the prime consuming segment of

population in the city.

4.8 Social Structure

As per the census 2001,14% of the population was of Scheduled Caste Category

whereas 3% of the Population was of Scheduled Tribes Category

5.Economic Base of Indore city

Indore is the largest city and is the business and trading capital of the state. Located

at the crossroads of western and central India. Indore has relatively good connectivity and

has been the hub of trade and commerce, not only for the state but also for western India.

The city holds a dominant position and is a vibrant center for trade and commerce. Cotton

textiles are the city's major product, but iron and steel, chemicals, and machinery are

also manufactured there. 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. Old-time industries which flourished in Indore were handloom, hand

dyeing, manufacture of niwar, oil extraction by ghani, manufacture of bamboo mats,

baskets, metal utensils, embossing and engraving of gold and silver ornaments, shellac

industry etc. Ayurvedic and Unani medicines from roots and herbs were manufactured

under state patronage. Today Indore can boast of a phenomenal industrial and business

development. It has one of the largest trans-shipment centers for truck transport.

19

Apart from textile industry, Indore has oil seed extraction industry, confectionery, paper

and straw board, factories for asbestos products, RCC pipes and poles, machine tools

and accessories, electrical machinery and appliances, electronics goods, bicycles and

ready-made garments etc. Indore accounts for about one third of the total Namkeen (variety

of gram flour snacks) production of India. Due to its trade and industry, the residents of the city

love to refer Indore as Mini Bombay.

Indore Urban Agglomeration had estimated 3.30-lakh workers in 1991. The workforce

increased from a size of 1.13 lakh in 1961 recording an average annual growth rate of 3.64%

per annum during 1961-1991.

The workforce participation rate (WFPR was 28.9% in 1991 and 30% in 2001. It remained

almost static between 1981-1991 in percentage terms. The maximum growth (68.6%) took

place during the decade 1971-1981 followed (51.2%) during 1981-2001.

Table: 4: Growth Trends in Work force participation, Indore

Year Workers

WFPR

Number in lakhs Decadal Growth (%)

1961 1.13 - 30.9

1971 1.47 29.4 25.0

1981 2.47 68.6 28.8

1991 3.30 33.2 28.9

2001 5.16 51.2 30.0

Source: CTTS Report Consulting Engineering Services (CES)

In terms of occupational structure, there is a distinct shift in workforce towards tertiary sector,

which showed an increase from 54.4% in 1961 to 63.4% in 1991. The share of secondary

sector workforce is on a decline.

Table: 5: Trend in occupational structure, Indore

Sectors 1961 1971 1991

Primary

2.3 2.2 3.2

Secondary

43.3 39.4 33.4

20

Tertiary

54.4 58.4 63.4

Source: CTTS Report Consulting Engineering Services (CES)

5.1Registered Establishments

Indore Nagar Nigam had estimated 47,956-registered establishments (2000). Of these while

producers accounted for eight percent, retailers were 37 percent while others were 44

percent respectively. The maximum establishments were of food items (28%) followed by

commercial services (15%) and textiles & cosmetics (12%) respectively.

5.2Trade and Commerce

As with many cities, recent years have seen a restructuring of the economy and a decline

of traditional industries. In Indore, traditional industries were oil extraction confectionary,

pulses industries, machine tools, electrical equipments, RCC pipes and poles, asbestos

products, readymade garments and jewellery. However, many of the more traditional

industries, most of which were labour intensive, have now either closed down or

restructured with considerable retrenchment of the workforce.

Trade and commerce, the financial sector and new higher tech companies have come to

replace the older industries. There are about 250 banking and insurance establishments,

more than 7,000 hotels and restaurants, around 80 hospitals, 1670 educational

establishments and nearly 80,000 registered shops. Commercial establishments are

the largest employer. There are two main industrial areas outside the city: Pithampur to the

south and Dewas

to the northeast. Although they are outside the municipal area, with more than 120 large

and 480 small and medium units,these estates have a considerable impact on the economy.

Many of the industries are capital intensive and high tech. Dominant sectors are

automobiles, engineering, pharmaceuticals and textiles and include names such as

Hindustan Motors, Indo Rama Synthetics, Eicher Motors and Navin Chemicals. Many of the

employees and particularly the managers and executives of these companies live in

Indore with resulting demand for public and private services including government

services such as schools and hospitals. There are

three main industrial areas within the city, Sanwer Road, Polo ground and Udyog Nagar

with 1272, 137 and 67 small and medium units respectively. The dominant sectors are

engineering pharmaceuticals, fabrication and food processing. Discussions with city officials,

chambers of trade and the business community reveal some major concerns for the

21

health of some industries, partly due to power and water crisis, road congestion (within the

city) and difficulties in matching global competition. Industrial growth is reported to be

declining and hotels, travel and tourism are affected. However, despite these concerns,

the overall picture is one of growth, with banking, insurance, trade and commerce being the

driving sectors.

5.3 Special Economic Zone and Agricultural Export Zone

The most critical issue for the future economic development and growth potential

for Indore is the proposed establishment of a special Economic Zone near Pithampur

Industrial area. Permission for the Zone has already been granted by the National

Government and Madhya Pardesh State Industrial Development Corporation Ltd

has been given responsibility, as the nodal agency. The SEZ will give tax, planning,

labour, finance and other special incentives to enterprises establishing within the zone. An

export-processing zone is also planned within the SEZ but plans are not yet finalized.

A total of 1038 hectares has been identified, of which 377 has been acquired. Some

infrastructure work has been undertaken and the first phase is proposed to be

developed in the next 3 years.

The long-term proposals for the SEZ include residential development as well as

industrial and commercial. However if the SEZ is successful in the early phases, there

will be considerable pressure on Indore, particularly for housing and public services. State

policy regarding the SEZ is under preparation. 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. In particular, 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.

5.4 Agriculture Export Zone

There are also Central Government proposals for an Agriculture Export Zone near

Indore. This Zone would offer incentives for processing and export of specific crops.

A feasibility study is being undertaken for a number of crops including vegetables, wheat and

seed spices. Details

of the proposals are being drown up and the proposed size and potential impact on Indore

is uncertain. Again, it is imperative for the Municipality that GOI plans for this type of zone

are properly master planned and take due consideration of housing, employment and

22

infrastructure requirements both for the Zone and for Indore.

5.5 Industries

Expanding industries and industrial development in the region has also given to this city a

status of an industrial center. There are large number of manufacturing establishments,

producing goods like cloth, iron and steel, chemical, wood products, paper and paper

products, building material, transport equipment, cycle parts, electrical goods etc.

The traditional industries are being abandoned due to various reasons such as Infrastructure

crises.

5.6 Employment

As per the sample survey undertaken for the preparation of CDP in Indore, 63.7% households

had their income earner in informal employment. Among the EWS households nearly 89%

were in informal employment, which was the highest among all the income groups, and

among the HIG households it was lowest 20%. Among the BPL households instances

of main income earner in informal employment was recorded at 91%. A further

analysis reveals that the intermediate poor households had the highest proportion 91%

of main income earners in informal employment. Among the transitional poor and the

Core poor households it was also as high as 81% and 89% respectively. Only 5.4% of all the

households in Indore reported that the main income earner has more than one job out of

which 10.8% belonged to BPL households. Out of the households were the main income

earner had more than one job nearly 23% and 7.5% belonged to transitional and

intermediate poor households respectively.

Table:6

Summery of Employment by Income Group

EWS LIG MIG HIG All Income groups Over all Avg.

HH Size 5 6.3 7.5 8 6.3 6.3

No. of

persons of

working age

2.7 3.7 4.8 5.5 3.8 4

Total Income Earners

23

Of which

formal %

10 25 50 76 35 61

Of which

informal %

90 75 50 24 65 39

% HHs Main

Income

Earner

Female

10.8 2 5 3.4 5.3 5.2

% HHs

with Main

Income

Earner in

Informal

Employm

ent

89 68 38 20 64 38

The core poor household reported to have the lowest 3.4% number of such instances and

non-poor households had 66.5% of them .Among all the households only 5.3% had main

income earners who were females out of them 25% belonged to BPL households In Indore,

only 2% of the all the surveyed households had income earners below the age of 14 years.

Among the child laborers 34.1% and 17.9% belonged to transitional and intermediate poor

households respectively. In comparison to the other poor households the core poor

households had the lowest 3.2% number of working children under the age of 14. Nearly

45% of the child laborers belonged to non-poor households.

5.7Income Profile

The mean household income varies considerably across the different income groups and

so also the expenditure pattern. 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%. It was observed the MIG, LIG and EWS households spent more

than 50% of their total expenditure on food, rising to more than 70% of monthly

expenditure amongst core poor expenditure of nearly 67% on food. Expenditure on

education was observed to highest (14.5%) among the HIG households. The BPL

households had an expenditure of nearly 67% on food. Expenditure on education was

24

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

10.8% and the lowest 6.7% recorded amongst the core poor households. Citywide

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

EWS households spending the highest 1.6%. Expenditure on solid waste / garbage

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 LIG households

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. Loan from formal

financial institution was found to be highest among the HIG households 22% and lowest

among the core poor households 2.3%.

6.Conclusion

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.

The Work Force Participation Rate in Indore City is 30%, while 63.4% of the

Work Force is employed in Tertiary Sector.

There are proposals for 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

sector.

25

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

Income.

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

Income.

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

the 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.

Though 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 to be utilized to the fullest capacity to

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

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

demand.

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 network needs to be

26

extended to cover 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 well

as the water consumed at consumer connections.

7.2Sewerage

Problems and Issues

The Sewerage network in the city lacks in the coverage of entire city. Other areas

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

environment.

The efficiency of 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 and the recently constructed network under ODA

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

The efficiency of the Solid Waste collection mechanism is low, where

only 70% of the Solid Waste generated is being collected and disposed.

The Solid Waste Management Mechanism lacks in Primary collection (70%)

as well as inadequate Labour (Safai Karmacharis SKs)

The mechanism also lacks in the synchronisation between the collection storage and

transportation of Solid Waste Management

27

The Waste is not segregated as Organic and Other Wastes.

The Municipal Corporation doesnt 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 dont 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 embankment and

retaining walls to improve their water carrying capacity.

7.5Transportation

Problems and Issues

The NHs and SHs constitute more than 50% of the incoming and out going traffic in the

city. These Roads carry major Traffic load and have insufficient carriageway width in

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

developed areas 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 due to the numerous junctions with

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

traffic.

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Many areas in the city seriously face parking problem, with the carriage way being

utilized as parking reducing the capacity and ultimately increasing traffic congestion.

The Bus terminals are located in the densely developed areas causing traffic congestion.

The transport terminals drastically lack facilities.

The Public Transport Network till recently was grossly inadequate. Only recently

an unique initiative have been taken by Dist. Administration and IMC by setting

up a fully Govt. owned Company named Indore City Transport Services Limited

(ICTSL) to provide high capacity low floor busses on about 18 routes in the city. The

setup presently lacks in infrastructure facilities such as depots and terminals.

East west Green Transport corridors have a heavy flow, which can be seen as need for

Mass Rapid Transport System.

There is no organized truck terminus facility in the IMC Area. Generally trucks are parked

in an unorganized manner in Lasudia , Palda, Khandwa Road, Chandan Nagar and

Sanwer Road Industrial Area .

7.6Environment

Problems and Issues

It 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,. 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.

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.

There is huge scarcity in terms of green and recreational areas in the city. Indore

doesnt have Large scale green areas.

The urban environment within adequate green spaces increases the threats

from environmental pollution. Some new Parks and Gardens have to be developed to

address to the environmental pollution situation.

29

7.7 Inner City

Problems and Issues

In spite of the decentralization of the commercial centres to the outskirts of the city, the old

city portion is still the commercial heart and hub of the city.

The inner city areas have very narrow streets, which are being encroached by

various street activities and the parking facilities.

The inner city lacks drastically in terms of organized parking areas.

7.8 Urban Heritage

Problems and Issues

Urban image of the city is a collective visual appearance contributed by

natural and man made elements, like Rajwada, Lalbag Palace, Holkars Chatris,

High Court Building, Indore Museum, Gandhi Hall, Pandarinath Temple, Harsiddhi Temple etc.

Need for Conservation and improvement of the structures for adaptive reuse as

exhibition halls and recreational spaces to facilitate their regular maintenance.

7.9Slums

Problems and Issues

There is about 40% shortage in housing supply in Indore City. The majority of housing

shortage is for urban poor. Informal Housing such as Slums, Squatters and the

unauthorized colonies constitute about 50% of the housing in Indore.

25% of the household in the City doesnt have legal occupational right, while 9% of

the households have got Patta from Government of Madhya Pradesh.

70% of the households belong to LIG and EWS, and BPL Category. (LIG 40%, EWS 21%

BPL 9%).

35% of the population and about 118000 households live in slums notified by Madhya

Pradesh Slum (Improvement and Clearance) Act.

1956.

30

Only 40% of the slum population has Water Supply, Public Toilets Community Hall etc.

Many of the public toilets are not maintained properly leading to non-use of this already

created facility.

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.

8.Strengths of the City

Indore serves as a commercial capital of the state. It is the hub of Trade and

commerce activities as well as Industrial activities like automobile, pharmaceuticals,

textile, garments and other industries, which strengthen the economic base

of the city.

The strategic Location of the city in the central India with excellent connection by

Road to other parts of country is best suited as intermediate growth center and

distribution hub.

Proximity to cotton belt, strong presence in textiles and ready-made garments.

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),IIT and many

other professional Institutes

With such professional institutes Indore has a potential to grow in

Information Technology and management sector.

9.Constraints of the City

Indore though well connected Road network has limited connectivity to

Railway Network. It does not lie on the major railway network.

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.

Indore lacks in high quality urban infrastructure such as roads, water supply sewerage

etc.

Indore faces severe power and water crises, which is a deterrent to setting up new

Industries. 50% of the population lives in informal housing in the absence of basic

services and unhygienic conditions.

31

Chapter-2

Indore City Development Plan: An Appraisal

The City Development Plan (CDP) of Indore gives a comprehensive account of Indores

demographic and economic characteristics, land-use, infrastructure, environment, and

housing and slums. The CDP identifies the gaps and deficits in city-based infrastructure

concerned with several of these sectors. The CDP also provides information on the citys

institutional set-up, with particular reference to the role of Indore Municipal Corporation

(IMC) vis--vis other agencies involved in the provision and maintenance of infrastructure

and services. The CDP explains, in detail, the role of agencies involved in urban

development, these being the Indore Development Authority (IDA), Madhya Pradesh Public

Works Department (MPWD), Madhya Pradesh Housing Board (MPHB), District Urban

Development Authority, Madhya Pradesh Town and Country Planning Department, and

Krishi Upaj Mandi Samiti. There are special

agencies for the provision and management of citys transport. 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, set up to provide an efficient transport system

in the city. The CDP has provided a detailed account of the finances of the Municipal

Corporation of Indore.

Indore is known as the business and trading capital of the state, with more than 63% of

employment in the tertiary sector. The city has a number of industrial establishments and a

proposed SEZ. 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%,

(p.25), and has a very high population density ((1028 persons per hectare in Indore planning

area (p.26). This has caused tremendous pressure

on the existing space. The CDP, however, has pointed out to the fact that the growth of

Indore during 1974-1991 was below the density proposed in the Development Plan (1974-

1991), 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.

32

(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, covering 54% of the

city population. Average water supply is 80 lpcd. 50% of water is unaccounted for (UFW),

including 40% transmission and distribution losses.

(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, high vehicular ownership, and a heterogeneous mix of transport

modes resulting in traffic congestion problems and a high accident rate.

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.

(c) Environmental pollution and lack of green cover

One of the most critical problems faced by the city is urban environmental pollution.

According to the CDP, the main cause of air-pollution is vehicular

traffic. The suspended particulate matter (spm) in the city is in excess of the threshold of 200

ug/cum by Indian standards (p. 55-56). Discharge of untreated domestic and industrial

wastes has resulted in pollution of the surface water bodies in the city (p. 51).

The city lacks in terms of green and recreational spaces.

(d) Housing shortage and slums

50% of Indores population have access to only informal housing in the form of squatters

and unauthorized colonies. 35% people live in slums and squatter settlements (p. 58, 107)

and another 15% in unauthorized colonies, with inadequate infrastructure facilities.

33

(e) Inner city congestion

The CBD has heavy population pressure and is suffering from congestion in terms of traffic,

building intensity, and parking. Most of the buildings in the CBD area are said to have

completed their life span.

(f) Institutional multiplicity, 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,MPTNCP, and MPHB.

Lack of co-ordination is said to be the principal reason behind the many problems that

Indore City is faced with, particularly regarding the utilization of land. Issues pertaining to

governance and institutional set-up are separately highlighted in the CDP, but these are not

linked to their impact on service provision or land development.

The CDP has been prepared keeping a view the deficiencies and requirements till

2021. It focuses on the first phase of the target for sustainable and harmonious

development by 2021. The CDP relates to the entire planning area of Indore for a period

of seven years from 2006-2011. The

CDP is formulated on the basis of a participatory process that began in August 2005,

involving meetings at Zonal level (Indore has 12 zones), the Municipal Councillors,

and other stakeholders. A questionnaire was circulated which was filled in by stakeholders

for eliciting their views on the different aspects of citys problems and development. The

key stakeholders involved in the consulting process were the MPs, MLAs, representatives

of the government departments, and parastatal agencies, NGOs, CBOs, corporate bodies in

industry, commerce, and other sectors, and citizens of Bhopal.

3. The Vision identified for the city is as under:

Indore shall enter an era of prosperity with spatially restructured environment,

improved urban infrastructure to achieve better lifestyle, minimum 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 consists of the following elements:

34

(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, healthy community life is

sought to be achieved by focusing on water supply, complete connectivity and treatment of

sewage, and disposal of solid waste; for improved mobility, the proposed constituents are

proper road network, bridges and flyovers, access to public transport, mass rapid transport

system, and road safety; housing for all means shelter for urban poor and extension of

basic services to them; sustainable city is visualized in terms of control of air and water

pollution and green Indore; and heritage conservation means improvement of old city and

conservation of cultural and built heritage.

The vision is somewhat difficult to adequately understand on account of the use of words

like spatially restructured environment and functioning sustainable development. It

will be useful if the IMC would describe the vision in simple, easy-to- understand language. It

would then be easier to see the links between the vision and the strategies.

4. Strategies

Strategies are formulated after identification of sector-wise goals for the year 2021.

Water supply 100% population coverage and 24 hour water supply by 2010

Sewerage 100% population and area coverage by 2020

Solid Waste

Management

Development of a comprehensive system with modern and

scientific methods by 2011

Transport Efficient public transport, introduction of metro-rail, elevated

road intersections and flyovers to remove congestion

Slums 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. Although

these are linked with the issues identified in these sectors, the achievability of these

35

requires further consideration. For instance, from a stage where the city has only 45

minutes of water supply and 54% population coverage, to achieve 100% coverage and a 24

hour supply would require massive efforts in terms of investment and institutional capacities.

A similar observation is made for sewerage. Indore may also like to re-evaluate the mobility

strategy in the light of the GOI urban transport policy, considering other options for improving

mobility.

The CDP identifies Construction of Indore Municipal Corporation Building as a project

under Urban Renewal.

5. Strategies for Slums

The vision with regard to slums in Indore is Slum less Indore by 2015. The

CDP mentions that there are 1,18,000 slum households in the city out of which

86,000 need rehabilitation, relocation and infrastructure provision (p. 109). The CDP

envisages making provision for about 15000 dwelling units for slum dwellers either to be

relocated or rehabilitated at the same place, development of 25000 plots for the urban

poor, and about 40,000 slum households are expected to be provided with improved

infrastructure services. This will benefit around 80,000 households.

To control the growth of slums, 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 finances of the Indore Municipal Corporation (IMC) are detailed out in Chapter 16

of the CDP.The IMC levies a property tax, water tax (for a connection), general

sanitation/surcharge tax, general lighting tax, and an education cess. Until 1991,

property tax was levied on the ARV (letting value) of a building/land at rates varying

between 6-10%. Now, the ARV method has been changed to a zonal area-linked system

involving self-assessment of annual ratable value by the assesses. According to the CDP,

inspite of non-listing of approximately 130,000 properties with the IMC, there has been an

improvement in property tax collections on account of self-assessment. Water billing is on a

flat rate, even when there is partial metering.

The IMC has a modest operating surplus but an overall deficit, when capital

expenditures are taken into account. These deficits have been continually mounting. It is

36

also necessary to point out that revenue grants in case of IMC are in excess of own

revenues. The CDP has given key financial indicators of the IMC, a few of which are given

below:

Own revenues as a % total revenue income 46.51%

Share of establishment expenditure as a % of total revenue

expenditure

35.67%

Annual growth in O & M expenditure 15.97%

Per capita outstanding debt liability as a % property tax demand Rs. 85.53 or 34.42%

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. 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.

The Plan identifies the following heads of projects, and within each, detailed works are given

(p.116).

(a) Roads, transport and drain work

(b) Water supply (including water audits)

(c) Sewerage consisting of augmentation and rehabilitation of the system,

regularization of the illegal outfalls, awareness campaign for recycling and reuse, etc.

(d) Storm water drainage including drainage rehabilitation

(e) Solid waste management

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(f) Transportsystemcomprising,inter-alia,assetrehabilitation,removal of

encroachments, traffic management, decongestion of the CBD.

(g) Housing for the urban poor, 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, accrual based accounting system.

(b) E-Governance Application E-governance applications have been extended to property tax, water tax, births and death

certification, building permission, and several other areas. The work of GIS application has

been awarded to a private company.

(c) Property Tax Reform The IMC has proposed that 85% collection will be achieved in the second year, i.e., 2006/07.It

should be noted that currently, of the total of 350,000 properties, 224000 are listed with the

IMC and collection to demand ratio is 41%.

(d) User Charge Operation and maintenance charges are proposed to be covered only in the fifth year of the

reform. No annual timetable is provided.

(e) Services to the Poor

According to the reform agenda, services will be reached to the poor only in the 5th year. No

timetable is provided.

(f) Internal Earmarking

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According to the agenda, internal earmarking (without giving any figure)has already been

done.

Optional Reform

There is no explanation of what will be done in the different years.

State-Level Reform

(a) Implementation of the 74th Constitutional Amendment According to the reform agenda, except for the constitution of the Metropolitan Planning

Committee (MPC), all components of the 74th Constitution Amendments have

been implemented.In respect of the de-facto transfer, all but urban planning functins have

been transferred to the ULBs. 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). All staff concerning the function have been transferred to the ULBs.

(b) Urban Land (Ceiling and Regulation) Act, 1976 The Act has been repealed.

(c) Rent Control Reform The State government plans to undertake rent control reforms over a four-year

period. However, what these reforms are likely to be, is not mentioned. Also, the size of the

problem is not stated.

(d) Stamp Duty Rationalization Stamp duty rates vary between 8-10%. These are planned to be reduced to 5% over a 5-

year period. No yearly plan is given.

(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.

(d) Community Participation Law

It is planned to be taken up in the 3rd year, with no indication of the actions to be taken

form year 1.

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(e) City Planing Function This function is currently being performed by the State-level/Town Planning Department. ULBs

will be associated with this activity from year 3 onwards.

(d) Water Supply It will be transferred to municipality in year 7 where it is not a municipal function.

(e) Areas needing consideration (i) Achievability of the goals with the tenure of the JNNURM when considered in

relation to the existing levels.

(ii) The role of the IMC in the planning function to what extent the IMC can be

involved.

(iii) Rehabilitation of slums

(iv) Institutional overlap

(v) Formulation of reform agenda without detailing out the approach.

City Level Reform Agenda

The City Development Plan (CDP) of Indore gives a comprehensive account of Indores

demographic and economic characteristics, land use, infrastructure, environment, and housing

and slums. The CDP identifies the gaps and deficits in city based infrastructure concerned with

several of these sectors. The CDP also provides information on the citys institutional set up ,

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.

The CDP explains in details the role of agencies involved in urban development, these being

the Indore Development Authority (IDA), Madhya Pradesh Public Works Department

(MPPWD), Madhya Pradesh Housing Board (MPHB), District Urban Development Authority

(DUDA), Madhya Pradesh Town and Country Planning Department, Krishi Upaj Mandi

Samiti.There are special agencies for the provision and management of citys transport. 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, set up to provide an efficient transport

system in the city. The CDP has provided a detailed account of the finances of the Municipal

Corporation of Indore.

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Indore is known as the business and trading capital of the state, with more than 63 % of

employment in the tertiary sector. 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.

The CDP had made specific references to the areas of fragmentation between the Municipal

Corporation and development related agencies like IDA, MPTNCP,and MPHB.Lack of

coordination is said to be the principal reason behind the many problems that Indore city is

faced with, particularly regarding the utilization of land. Issues pertaining to governance and

institutional set-up are separately highlighted in the CDP,but these are not linked to their impact

on service provision or land development. The CDP has been prepared keeping a view of the

deficiencies and requirements till 2021.It focuses on the first phase of the target for sustainable

and harmonious development by 2021.The CDP relates to the entire planning area of Indore

for a period of seven years from 2006-2011. The CDP is formulated on the basis of a

participatory process that began in August 2005, involving meetings at Zonal level (Indore has

12 zones), the Municipal Councilors, and other stake holders. A questionnaire was circulated

which as filled in by stakeholders for eliciting their views on the different aspects of citys

problems and development. The key stakeholders involved in the consulting process were the

MPs, MLAs, representatives of the Government departments, parastatal agencies, NGOs,

CBOs, corporate bodies in industry, commerce, and other sectors and citizens of Indore.

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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. The Ministry had approved the

Rs.2745 crore City Development Plan in March 2006. The plan included improvement of water

supply system, drainage system, housing scheme for urban poor, public transport, construction

of roads and culverts, conservation of heritage buildings, developing green belts etc.

This chapter deals with the status of JNNURM project in Indore city. In order to implement the

project in the city a JNNURM cell was constituted consisting of 7 core staff belonging to

different specializations. This cell works under the overall supervision of Indore Municipal Commissioner Project Implementation Unit : Indore Municipal Corporation, Jnnurm Cell, Indore

1.Urban System in India

Second Largest System Globally

Urban Population: 315 million

Urban Decadal Growth: 25-30%

GDP contribution 50% +

1.2Urban Challenges: Inadequate urban infrastructure, water, sanitation, 60+ million slum population, weak

institutional and financial frameworks constraining adequate and sustainable service delivery.

1.3Addressing Urban Challenges Jawaharlal Nehru National Urban Renewal Mission Launched on 3rd December 2005 for

Reforms-linked, demand driven, fast track development of infrastructure & basic services to the

poor including housing & slum up gradation.

2.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)

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Mission Period: 7 years (2005-2012) Government of India Grant: Rs.50,000 Crore

2.1JNNURM Key Objectives Focused attention to integrated development of infrastructural services in cities.

Linking asset creation and asset management in cities through reforms for long-term

sustainability.

Ensuring adequate funds to meet the deficiencies in urban infrastructural services.

Planned development & dispersal of growth in cities, peri-urban areas, outgrowths &

urban corridors.

Scaling up delivery of civic amenities & provision of utilities with universal access to

the urban poor.

Special focus on urban renewal, i.e. redevelopment of inner (old) cities

area to reduce congestion, and

Provision of basic services & improved housing to urban poor including security of

tenure at affordable prices

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

JNNURM: Reform Agenda Mandatory reforms:

UIG & BSUP

UIDSSMT & IHSDP

Track- I

Track - II

For 63 Identified cities

For Other cities

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1. Reforms at ULB level & parastatal agencies

2. Reform at state level

Optional Reform

1. Common at state, ULB level & parastatal agencies

All the mandatory / optional reforms shall be completed within the Mission Period.

2.3Pro-poor Reforms The BSUP and IHSDP of JNNURM contemplate certain key reforms in propoor

governance. 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.

Implementation of Seven-point Charter i.e., the provision of basic services to urban

poor including security of tenure at affordable prices, improved housing, water supply,

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sanitation and ensuring delivery of other already existing universal services of the

Government for education, health and social security within the Mission period as per agreed

timelines;

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.

2.4 Basic Services to the Urban Poor Admissible Components Integrated development of slums, i.e. 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.

Houses at affordable costs for slum dwellers/urban poor/EWS/LIG categories.

Construction and improvement of drains/storm water drains

Environmental improvement of slums and Solid waste management

Street lighting

Civic amenities like community halls, child care centers etc.

Convergence of health, 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 IMC

2 Indore sewerage project

3 Construction of 8 important roads

4 Houses for slum dwellers 61.93

5 Solid waste management project

6 Const. Of parking structures at 20 locations

under PPP

7 Houses for slum dwellers phase II 81.54

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Table: 2 Projects Sanctioned (IDA/ICTSL)

SN Project Name Agency

1 BBRRTTSS CCoorrrriiddoorr PPiilloott PPrroojjeecctt ((AA..BB.. RRooaadd)) IIDDAA // IICCTTSSLL

2 HHoouussiinngg ffoorr UUrrbbaann PPoooorr ((SScchh.. NNoo 113344)) IIDDAA

3 CCoonnssttrruuccttiioon