Pritam BanerjeeInternship – Espirito Santo,

Investment Banking

Shubhra Ghosh Internship –CEB, Mgmt. Strategy

Consulting

Somwrita Biswas Internship –Credit Suisse, Investment

Banking

Nitesh SinhaInternship – Accenture,

Management Consulting

Priyadarshan GuptaInternship – RBS,

International Banking

FUTURE CITIESEnsuring world class civic amenities in urban India

Key Is

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POLICY LOOPHOLES

City Master PlanEarlier attempts to install a master plan for the city failed due to

bureaucratic delays and lack of flexibility

Currently, no city wide planning for the different amenities e.g.

road, transport, sanitation, supply of housing, water, electricity, etc.

Before the era of SEZs, there was no designated places in the city

for commercial and business centers.

BureaucracyPace of development of new infrastructure and maintenance of

existing one is at much slower pace than growth of demand for it

Several approvals and permits from different departments for

implementing a project causes huge delays leading to obviating the

viability of the project

Monitoring and IncentivizationNo provisions for rewards and penalties based on public feedback in

order to foster better performance from the offices i.e. there are no

incentives for better quality of amenities as compared to where they

are not

Private CompaniesThe government controls most dissemination of most civic

amenities and there is minuscule involvement of private companies

Obliviousness related to best practices existing around the world

POWERLESS LOCAL BODIES

The major reason behind poor state of city planning and management is

the Governance Structure for the same.

AutonomyThere exists low levels of operational autonomy for the

Local Bodies for selection and implementation of schemes.

Schemes like RAY, JNNURM are imposed from the Center

without taking into consideration the needs and even

feasibility at the local level

FinancesCenter controls 2/3rd of the Tax revenues

States control 1/3rd.

Share of local bodies is minuscule

Municipal Corporation contributes less than 0.75% of the

GDP of India. In Brazil and South Africa, the share is 5%

and 6%, respectively.

Capital Expenditure (needed for building city infrastructure)

is less than 15%.

SkillThere is failure to attract requisite talent to implement city

wide projects encompassing various forms of amenities due

to

• Poor levels finances (therefore remunerations)

• low autonomy in strategizing & implementation

• no incentive structure for high performance

Ram

ificatio

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f these Is

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STATE OF INFRASTRUCTURE

The result of these governance structure and policy issues has been in

terms of poor state of basic amenities in the cities and poor quality of life

of its citizens

HousingOver 50% of Mumbai’s 18.4 million people live in slums. This can be

understood from the failure of following urban housing schemes:

TransportationMumbai has just 11% of its urban space dedicated to transport infra as

against 60% for Los Angeles. The urban road density was 0.91/1000

people in 2008 vs. US average of 2.09.

ElectricityFollowing is gap in demand and supply in India

As is evident, this supply-demand gap is progressively increasing.

Scheme

Name

Time

Completed

Planned

Expenditure

Actual Amount

Released

ISHUP 3 of 4 yrs Rs 1,100 cr Rs 6.5 cr

BSUP Complete Rs 29,770.71 cr Rs. 10,036.95 cr

IHSDP Complete Rs 11,875.63 cr Rs 5,860.86 cr

RAY 4 of 8 yrs Rs 2,479.44 cr Rs 229.45 cr

AHP 4 of 8 yrs Rs. 231.33 cr Rs 3.05 cr

SanitationThere is just 1 toilet per 81 person in these slum areas of

Mumbai.

The drainage system of most Indian cities is severely

inadequate to handle rains

Drinking WaterIt is expected that by 2015, in-spite of extensive

government plans to resolve the crisis, 90 million people

in urban areas are likely to remain without access to

clean drinking water

Medical FacilitiesUrban India has just 2 hospital beds per 1000 people

against world average (includes rural areas) of 2.67

Other AreasIndian cities are suffering from high levels of pollution,

lack of employment

Sources

1. Urbanization and urban transport in India: The sketch for a policy

2. Basic road statistics of India 200405, 200506,200607&200708

3. http://twocircles.net/book/export/html/173106

4. http://www.spartastrategy.com/blog/2011/07/indias-energy-

demand-and-supply-deficit/

5. http://www.indexmundi.com/g/r.aspx?c=in&v=2227

6. http://www.business-standard.com/article/news-ians/health-care-

in-india-skewed-towards-urban-residents-study-

113071900954_1.html

OTHER AMENITIES

Solution to this problem is the empowerment of the Local Bodies and

Setting up a Policy Framework which may allow these Local Bodies to act

independently

Key R

eco

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STANDARD POLICY GUIDELINES AT STATE LEVEL

• There should be standard guidelines for

• Minimum Quality of Infrastructure to be made available

• Resource usage i.e. land, water, etc.

• Infrastructure planning in terms of best practices

BUT AUTONOMY TO LOCAL BODIES AT

IMPLEMENTATION LEVEL

• Though Municipal Corporations should be expected to follow

the Policy Guidelines, they should have the authority in terms

of planning and execution of projects at the local level to

meet local needs

• They should authority on not just civic amenities but also on

environment, land use and allocation and recruitment so as

ensure holistic planning and quick decisions

• They should be allowed to outsource development as well as

maintenance activities to companies

FINANCING

• Provide them with the financing strength needed for to take up

more capital expenditure for building infrastructure

• Local Bodies should be provided a share of the State and

Centrally Levied Taxes

• Taxes and Fees on scare resources like water should be

allowed to be decided by the local bodies

STRUCTURAL CHANGES

MONITORING OF DEPARTMENTAL PERFORMANCE

• The performance of the Local Bodies should be appraised by

independent/external auditors of bi-annual basis

• These auditors should be allowed to factor in public

opinion/surveys in order to judge their contentment with

facilities

INFRASTRUCTURE PLANNING

• Infrastructure planning should be done taking into account not

just the current usage but future requirements as well

• There should be a provision for consulting all stakeholders

while planning and implementing projects

OPERATIONAL CHANGES

PAYMENT AND INCENTIVE STRUCTURE FOR THE

EMPLOYEES

• There should be a provision of fixed plus variable pay for the

employees of these Local Bodies

• The variable pay should be governed by their department’s

performance with respect to independent auditors’ report and

also in terms of delays in projects, etc.

• There should be provision of fines for performance below a

threshold

Improvements of civic amenitiesHealth & Hygiene

Public Health

Food Security- Regular audits and checks at ration shops to curb corruption

- Random feedback collection from people to identify critical

ground level issues in PDS delivery

- Development and proper management of local warehouses to

reduce food waste and ensure timely meeting of demand

Health- Adoption and support of low cost healthcare solutions e.g.

Narayana Hrudayalaya expansion should be facilitated through

policy support for land allotment and cheap financing

- Replication of the same model for large governmental hospitals

and bringing the smaller hospitals under their guidance

- Training program for public sector doctors and physicians in

large hospitals; recruitment opportunity for best performers

Sanitation

- Separation of drainage and drinking water networks will help

reduce water bound diseases

- Villages having best track record of executing total sanitation

program should be rewarded by giving preference in terms of

road infrastructure development

Public toiletsConstruction of public toilets on priority basis at non-

commerical places such as near schools, residential areas and

grocery markets

Electricity & Water

ElectricityDevelopment and implementation of the last mile solutions should be

outsourced

- to accelerate the process, help in reduction of distribution losses

- extract RoI in schemes such as R-APDRP

Provide more autonomy to new formed state regulatory authorities

- For timely revision of tariffs

- For enforcing policy implementation such as centre’s Financial

Restructuring Package (FRP) for bailing out ailing distribution

companies

Water supplySmart technology based solutions should be implemented in water

pipeline network

- Will help detect leakage and contamination

- Ease in pipeline identification and maintenance; avoids unnecessary

digging and destruction of valuable infrastructure

Water, drainage and Electrical networksFollowing of protocols to lay water pipeline, drainage and electrical

line networks at different depths so that

- they don’t overlap and cause damage to each other

- project execution does not get entangled in legal and regulatory

disputes

Improvements of civic amenitiesTransport

Public Health

Personal Transport

Formation of a central traffic management and

operating system

- takes care of the dynamic traffic flow requirements

thereby reducing congestion

- helps identify real needs of road infrastructure

requirements such as flyovers, bridges, footpaths etc.

Shared Transport

Implementation of BRTS only after evaluating the

entire road network

-Avoids forcing of BRTS on already congested roads

Development of Metro train infrastructure in cities

which are expanding rapidly rather than adopting

temporary solutions such as widening of road

Housing & Employment

Housing

Development of road, water, drainage, electricity, gas etc.

networks well before the earmarking of land for housing

projects

-Will lead to better planned colonies and cities

-Remove inefficiencies, reduce congestion and lower

maintenance costs

Promotion of housing projects from private builders in

order to

• Develop effective Market for housing transactions

• Ensure fairness in pricing

• Alleviate the government (local as well as state) from

getting directly involved thereby providing them

room to take care of other amenities

Confidential information such as approval of govt.

housing development projects should not be leaked

- To avoid land dealers from buying the land and reselling

it to the government at higher rates.

Improvements of civic amenitiesRecreational Centers

Public Health

Parks

• Each new society or colony should mandatorily

have well maintained park(s).

• The size of the parks should be decided based on

the number of people living in the society

• The responsibility of the upkeep of these parks

should reside with the residents

Commercial Centers

Movie theatres and other such entertainment areas

should be location in large open spaces with ample

space for parking and traffic movement

Provision of space for parking should be the

responsibility of the owner of the commercial center

Theme Parks and other such larger recreational areas

should be located outside city limits in order to

• Not adversely impact the quality of life of people

living nearby locations of such areas in case they

are inside the city

• To distribute the traffic on larger areas on a holiday

or a weekend

• To allow the land usage for higher priority

requirements

Land Use

In case of new cities, the land usage planning should be

done while taking into account the following factors

• Type of Town i.e. primarily Residential or Industrial

(Thus will determine the likely inflow of migrants and

hence, determine the future load on the developed

infrastructure)

• The availability of resources e.g. Water, agricultural

land on the outskirts (to assess future expansion

possibilities), rainfall (to design drainage)

• Presence of other industrial cities in the vicinity. This

will determine the robustness and capacity of

transport network to be put in place.

• Potential location for sewage and solid waste disposal

• Possibility of harnessing renewable energy sources

e.g. sun, biomass, wind, etc.

• Likelihood of calamities like tidal waves, floods,

earthquakes, etc.

Based on these, the city should be planned to as to

properly allocate land to residences for LIG, MIG and

HIG, hospitals, schools, parks, commercial and business

areas, industrial space, transport infrastructure,

government buildings, green cover, etc.

Impact on existing citiesMumbai

Transport Infrastructure- Better road infrastructure and traffic management system will

reduce congestions for BEST buses and smoothen the traffic flow

- Creation of Goregaon sea link under PPP model to reduce traffic

intersection points

Housing-Slums will be replaced with multi-storey buildings thereby helping

in reclaiming land, improved sanitation and living conditions for

them

- Reclaimed land can be used for building sanitation infrastructure.

Reinforcement of Public TransportCheaper solution such as monorail should be extended in the

Southern Mumbai region to complement local trains network

Improved handling of flooding water- Upgradation and repair of storm water drainages will help in

reduced flooding of roads and potholes

- Will help identify and reclaim encroached lands

- Reduced potholes will reduce the damages done to the local

transport (BEST buses undergo 800 punctures a day)

Improvement in Road Infrastructure

-Will help reducing the problem of traffic and pollution in Delhi

- Smart traffic management system will help in redirecting the

flow of traffic to lesser congested areas

- Intelligent traffic monitoring systems will help identify the areas

where flyovers, over bridges and footpaths are required

Street lighting

Traffic monitoring systems can be used for vigilance; will help in

bringing security at crime prone areas

-Better lighting in slums will help in reducing electricity thefts,

better their education standards and standard of living

Water, drainage and electrical network

- Segregation of water and drainage system will help reduce

spread of diseases in immigrant population

- Shifting of electrical networks to underground will help

implement last mile solutions, reduce the problem of thefts,

improve bill collections, monitoring of usage

-Better solid waste collection and treatment, which is the biggest

problem faced by Delhi

Delhi

Development of new citiesElectrical and communication lines network

Water pipeline network

Metro train infrastructure

Drainage system

Better city planning

• Good use of land which is an expensive resource. Presence of green parks, grounds, recreation centres etc.

• Better and uniform housing infrastructure. Easy to extend water, electrical, drainage and communication

system to newer colonies.

• Clear demarcation of commercial and residential areas thereby better identification of infrastructure

requirements with full utilization.

Transport

• Road and rail network act as a complement and grow together without pressurizing one of them

• Better city planning will reduce the hurdles in building road and rail network and accelerate their

construction and expansion

Health & Sanitation

• Smart and segregated water and drainage systems will help improve the delivery quality of the amenities and reduce

diseases

• Better healthcare solutions by improving government healthcare infrastructure and introducing PPP model

• Depth protocols to be followed for each kind of network

• Will lead to financial healthy municipal corporation will lesser no. of

issues at hand

• Better governance will attract young and dynamic talent in these local

governing bodies and help infuse new ideas for city planning

Road network

The overall impact of these changes would be in terms of more targeted

solutions and strategies towards local needs thereby leading to better

solutions more efficiently

Overa

ll Imp

act

Local Bodies have better cognizance of local needs

Empowered Local Bodies will be able to take decisions

and implement projects targeted towards these local

needs

The unique needs of each city based on its geographical

location, culture, demographics will be tackled uniquely

Impact would be in terms of

• Much swifter decision making (due to all clearances, etc. within the ambit of a single body)

• Much swifter implementation (due to a coordinated effort among different departments working under a

single leadership)

• More effective solutions due to much deeper understanding of the problems in the first place and hence,

highly specific solutions

• Much more efficient solutions due to eradication of misguided steps

• Much more efficient departmental staff due to impact of quality of infrastructure of payments

Management of all elements (e.g. environment, people,

etc.) impacted due to a project by a single body will

allow effective handling of clearances and hence, needs

Monitoring will adjudge

• Progress of projects being implemented

• Effectiveness of Solutions

• Satisfaction of people with the quality of service

Independent auditors will instill confidence among the

citizens regarding the unbiased assessment

Impact of audit report on Local Bodies employees;’

salary will positively impact the efficiency, honesty and

quality of work

AP

PE

ND

IX-1

TEAM PROFILE

Nitesh SinhaEducation: B.Tech, ECE, IIT GuwahatiWork Experience: Strand Life Sciences Pvt. Ltd. (22 months)Summer Internship: Accenture A DAAD and CBSE merit scholar, Nitesh ranked 153 among 4,80,000 candidates in AIEEE. He has 2 publications in international journals and has undergone internship in Germany. He was placement representative of ECE at IITG and organizer of several national level competitions.

Pritam BanerjeeWork Experience: Consulting, Deloitte, MumbaiSummer Internship: Equity Research, Espirito Santo Investment Bank, MumbaiA meritorious student from BESU, and an internationally rated Chess player, Pritam has worked for Deloitte Consulting as a functional domain Analyst and is appreciated for his high quality deliverable. His summer internship report on Direct Cash Transfer is widely discussed in Press and has been appreciated by Senior management of various companies.

Shubhra GhoshSummer Internship: CEB, Management Strategy Consulting, GurgaonWork Experience: Software R&D, Samsung India Software Operations CBSE merit scholar (Class X) from MSRIT & Bangalore region topper (Class XII), Shubhra was 2nd in his dept. at MSRIT. At CEB, his work was rated as 'Exceeds Expectations' where he worked on a US $40 million project with a Fortune 500 client delivering high degree of Management Satisfaction. He loves Singing, painting & public speaking.

Priyadarshan GuptaEducation: B.Tech, Electrical Engineering, IIT BombayWork Experience: Tensilica Technologies India Pvt. Ltd. (now Candence) (47 months)Summer Intern: The Royal Bank of Scotland (International Banking)AIR 44 in IIT JEE, Priyadarshan has semiconductor industry experience. He was member of the recruitment team and was ‘Student Intern Mentor’ in Tensilica. He has also worked with “Teach For India” and takes keen interest in football and puzzles.

Somwrita BiswasFresh Graduate, B.Tech, IIT KharagpurSummer Internship: Investment Banking, Credit Suisse, MumbaiAn NTSE Scholar, Somwrita has an excellent academic record. She has a fair taste of working in different sectors having interned at Credit Suisse, General Electric and Central Glass & Ceramics Research Institute. She was Head of Asia’s largest techno-management fest Kshitij & the Coordinator of a Youth Summit on Climate Change.