CDP Kolar E

CityDevelopmentPlan
KOLAR, Madhya Pradesh
Preparedby:
KOLAR MUNICIPAL COUNCIL

District: Bhopal
DARASHAW&CO.PVT.LTD
State: Madhya Pradesh
6thFloor,ExpressBuilding,
Churchgate(W),Mumbai

Submittedto:

URBANADMINISTRATION&
DEVELOPMENTDEPARTMENT
GovernmentofMadhyaPradesh,Bhopal

PROJECTCOORDINATION

CITYMANAGERSSSOCIATION
MADHYAPRADESH

City Development Plan, Kolar Executive Summary
EXECUTIVE SUMMARY
1 Background
Urban Administration and Development Department, GoMP has initiated City

Development plans for various cities in Madhya Pradesh. Amongst those
cities Kolar has been identified as the one of project cities for City
Development Plan.
The goals of a CDP include a collective city vision and action plan aimed at
improving urban governance and management, increasing investment to
expand employment and services, and systematic and sustained reductions
in urban poverty. It is expected that the CDP will result in strategic platform
which facilitates development, decision-making, investment programming,
the engagement of out side partners and the efficient allocation of resources
and, in city ownership of their own economic and social development
process.
2 City Profile
Kolar is a town and Municipal Council in Bhopal district in the Indian state of
Madhya Pradesh. Kolar Nagar Palika has been formed on November 2006
covering 21 surrounding settlements Kolar Nagar Palika has an area of
5017.61 hectares which has been divided into 21 municipal wards.
Kolar is very well-known for large influx of migrant workers from the
adjoining regions and from adjoining states creating uncontrollable
development of Jhuggi Jhopries, slums and unauthorized colonies
everywhere which is also creating an alarming situation for M.P.
3 Demography
As of 2001 India census, Kolar had a population of 24302, having male

population of 14856 and female population of 13519. In 2002, 4 villages
have been amalgamated to the Kolar to form new Kolar Development area.
Since past trends are not available for Kolar Municipal area, the population
projections done in Detailed Project Report for Solid Waste Management is
considered for base year population which is again cross verified with Voter
s list for data authentication. Official website of Kolar Municipal Council itself
specifies the 2005 population as 85000.
Consultancy Division
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Executive Summary City Development Plan, Kolar
Population projection by various methods for Kolar

Year Population projections Growth rate Population as per SWM DPR
2001 28375 --- 28375
2009 --- 95643
2010 99628 15.0 NA
2015 122382 4.2 119554
2025 150653 2.1 149443
2035 185453 2.1 NA
Source : Analysis by consultants
4 Economic Profile
Town has a large area of 50.17 sq kms with large parts consisting of rural
villages. Residential and industrial areas are occupying only 9.42 sq kms and
hence have huge potential for future development due to abundant land
availability. Kolar is basically a residential urban agglomeration town
depends on Bhopal for economic activities. Quality of living is poor compared
to Bhopal city due to the presence of large slum pockets. Employment
opportunities are poor in this city since town has no industrial areas
developed within its limit. Town has a large area of 50.17 sq kms with large
parts consisting of rural villages. Residential and industrial areas are
occupying only 9.42 sq kms and hence have huge potential for future
development due to abundant land availability. The work force participation
rate in Kolar is 35 percent which is higher than the Bhopal district urban and
MP state urban WFPR.
5 Physical Infrastructure: Water Supply
Town has no dedicated water supply scheme initiated as on today. Water

supply for the town is served by 2 bore well sources for drinking and 2041
hand pump sources for both drinking and non drinking purposes. Bore wells
are laid in the year 2007 located at a distance of 2.5 Kms from Nagar Palika
office.
Sarvadram A & B sector has one ground storage reservoir (GSR) and one
elevated storage reservoir (ESR), supplies water to that area with the help of
305 household service connections. Further, Fine Avenue colony has one
sump which supplies water to the colony through 176 household service
connections.
Also some other colonies have been provided with the GSR and ESR for
direct water supply services. Remaining areas are served with the help of
215 Mini Syntex tanks placed mainly in slum areas having varying capacities
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of 5000 litres (96 Nos), 3000 litres (94 Nos), 2000 litres (4 Nos), 1000 &
5000 litres (21 Nos).
Since the town has no main trunk line and distribution lines, water is being
supplied with the help of Tanker Lorries. Total number of trips of the water
tankers supplied to the entire kolar municipal council region is about 140
nos.
Overall water quantity of 8 lakh litres is being supplied everyday and on an

average 28 litres per capita per day (LPCD) is being supplied by taking into
consideration the 2001 population of 28375 which is quite low.
In order to prevent the existing water scarcity, Hand pumps of 2041 nos are
laid all over the municipal area in which 80 percent pumps are in slum areas
itself as indicated by the municipal officials. Chlorination treatment method
is being adopted by the Municipal council to treat water in all the storage
tanks.
6 Physical Infrastructure: Sewerage
Town has no comprehensive under ground sewerage scheme as on today.

Town has sewer network of about 2 Kms which are not integrated. Municipal
council has proposed to lay sewer line for a length of 1 Km. No connection
charges are levied by the council from the users as on today. Town as on
today has no public toilets / Pay & Use toilets.
7 Physical Infrastructure: Storm Water Drainage
Down stream channel from Kalisot dam traverse through the town is the
major drainage channel helps in draining the town during rainy season. In
addition, Storm water also gets drained with the help of Abbas Nagar Nallah
and Akbarpur nallah. To prevent water logging problems, Municipal council
has constructed 130 meter RCC drain in Salaiya gram village, 150 meter
RCC lining along Mandagini channel.
Further, Council has proposed 300 meter RCC drain in Gram Hinothiya and
has plans to construct additional 200 meter lining work along Mandagini
channel.
8 Physical Infrastructure: Solid Waste Management
Kolar town generates around 29.48 Metric ton of Garbage per day at the
rate of 291 grams per capita per day (as per 2010 population of 99600).
Waste is being collected in all the 21 wards but none of these wards have
Door-Door collection and Waste segregation practice.
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Kolar has disposal site at a distance of 5 Kms from Kolar CMO office.
Currently, the disposal site has no treatment facilities and the waste is being
dumped without treatment.
Solid waste management DPR of Rs. 2.75Cr. has been prepared by Kolar
Nagar Palika which outlines the current situation regarding solid waste
collection and disposal and the future proposal.
The major issues related to all physical infrastructure facilities are:
Town has not adopted Door-Door Collection and Waste Segregation
system
Town has no waste treatment plant.
Town has inadequate vehicle capacity for transporting the waste to the
disposal site.
Collection efficiency is low.
Town has staff inadequacy and most of the conservancy workers are
temporary workers
9 Physical Infrastructure requirements
The following table gives the population and future demand assessment for
different infrastructural facilities.
Demand Supply Gap Future Assessment

2010- 2015- 2025- 2035- 2040-
Particulars 11 16 26 36 41
Kolar projected population 99628 122382 150653 185453 205761
Water Supply MLD
Kolar water demand @ 135 lpcd for
towns less than 50,000 population
(15% loss considered) 15.47 19.00 23.39 28.79 31.94
Existing and proposed Supply in MLD 0.8 11.95 11.95 17.50 17.50
Gap 14.70 7.00 11.40 11.30 14.40
135 lpcd is proposed in Water Supply DPR prepared under UIDSSMT for ultimate 2040
pop - 110000
Water Treatment Plant capacity in MLD
Demand for treatment plant capacity 15.47 19.00 23.39 28.79 31.94
Treated water supply 0.0 11.95 11.95 11.95 11.95
Gap 15.47 7.05 11.44 16.84 19.99
Sewage generation
Kolar sewage generation 12.4 15.2 18.7 23 25.6
Kolar proposed Sewage Collection 0.0 0.0 0.0 0.0 0.0
Gap 12.4 15.2 18.7 23 25.6
STP capacity in MLD
Capacity of treatment plant demand 0.0 0.0 0.0 0.0 0.0
Gap 12.4 15.2 18.7 23 25.6
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Solid waste generation

Per capita waste in grams per day 291 315 348 384 424
Kolar waste generation in MT 29.0 38.6 52.4 71.2 87.3
Growth rate assumed 2.00%
10 Traffic and Transportation
Kolar town is situated approximately 15 kms to the south of the Bhopal city.
Kolar is well connected to the mother city Bhopal by Kolar road network
Kolar due to its close proximity to Bhopal has very good regional road
network connectivity. Kolar is located at a distance of 20 Kms from Bhopal
Raja Bhoj Airport.
The total road Length within Kolar Municipal area is 187.32 Km. Out of
187.32 km road length, 8.124 km is a kutcha pathway. In addition, 6.867
Km Kolar road passes through the town maintained by State Highways.
Kolar has per capita road length (1.96 meters) more than the prescribed
norm of 1.5 meters.
Major issues related to traffic and transportation is as follows:
Most of the roads are kutcha other than roads in close proximity to Kolar
road.
Town has no Bus stand and bus shelters.
Town has inadequate public transport system
Kolar road connecting Bhopal, the Capital City is narrow and encroached
creating congestion and the road is in bad condition.
Intersections are poor in geometrics.
11 Street lights
Kolar has 1394 street lights positioned all over the Municipal area in which
1010 lights are 40 W tube lights, 210 lights are 250 W Sodium Vapor lamps
and 174 lights are 150 W Sodium Vapor lamps. . As a part of energy saving
mechanism, Municipal Council has placed 3 timer switches and nearly 30
tube lights have electronic chokes.
Major issues related to street lights are as follows:
27% of the existing lights are high power consuming light fittings.
Town has 6320 electric poles but only 1394 poles have light fittings.
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12 Slums and Urban poverty
There are 13 slum pockets in Kolar with population of 15013 whose details
are shown below.
Slums and slum population in Kolar

S.No Slums Population
1 Damakheda - A 2356
2 Damakheda - B 570
3 Banskhedi 614
4 Hinotiya Alam 514
5 Gehunkehra 3682
6 OM NAGAR 323
7 Abbas Nagar 760
8 Akabarapur - 1 5236
10 Ambedkar Nagar NA
11 Priyanka Nagar NA
12 Slum no 12 NA
13 Slum no 13 NA
Total 15013
Source: Data collected from officials at Kolar Nagar Palika
Major issues related to street lights are as follows:
Slums are not yet documented for Housing and Infrastructure status
assessment
Town hasnt undertaken BPL survey till today.
13 Financials of Kolar Municipal Council
Kolar is a newly established Municipal Council formed in 2006. Hence, the

Municipal finances of Kolar for the last two years i.e. 2008-09 and 2007-08
have been reviewed
Kolar Municipal Council has shown surplus funds in the last two years. The
revenue has grown at 149% in the year 2008-09 over the previous year.
The expenditure too has grown at 138% in the year 2008-09 over the
previous year. It may be noted that since Kolar is a newly formed Municipal
Council the past two year financial trend will not reflect the potential revenue
in the coming years.
Municipal Taxes account for only 18% of the total income of Kolar Municipal
Council (KMC) for the year 2008-09. This is attributed to the non-
assessment of all the properties in the Municipal Council area, non
imposition of taxes for the services and poor service delivery.
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Property tax is levied at the rate of 1% of rental value for residential

properties and 2% of the rental value for commercial properties. The
Municipal Council is carrying out survey of the properties within the
municipal area to bring all the properties within the tax assessment. The
ratio of arrear collection to current demand collection for the on an average
is 53:47 for the last two years which shows that there is a consistent delay
in recovery of current year demand raised every year.
Grants account for about 78% and 57% of the total income of the Municipal
Council for the years 2007-08 and 2008-09 respectively.
Octroi accounts for about 19% of the total grants to the Municipal Council for
the year 2008-09.
Revenue Expenditure accounts for about 51% of the total expenditure on an

average for the period between 2007-08 and 2008-09.
Establishment expenses account for 42% of the revenue expenditure on an

average for the period between 2007-08 and 2008-09. Salary expenses of
sanitation department and public works department accounts for 52% and
10% of the total salary expenditure respectively. Salary expenditure of
councilors, other staff, park, library etc. accounts for 29% of the total salary
expenditure.
Operation and maintenance expenditure accounts for about 52% of the

revenue expenditure on an average for the period between 2007-08 and
2008-09.
14 Cost Recovery of Services
There is no tax on water supply. However, charges are collected towards

supply of water in tankers. The cost recovery for provision of water supply is
very low at 32% for the year 2008-09.
Cost Recovery for water supply services (in Rs. Lakhs)

Water Supply 2004-05 2005-06 2006-07 2007-08 2008-09
Cost incurred in service
21.94 26.52 28.45 36.45 34.79
provision
Direct recoveries 6.14 5.35 5.87 4.28 6.38
% cost recovery 28% 20% 21% 12% 18%
Source: compiled from Municipal Accounts, Kolar Municipal Council
Cost recovery is only 20% for water supply services and for other services it
is less than 9%. Collection efficiency is very poor for property tax and water
tax. The ratio of current collection to arrear collection needs to be improved.
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Issues related to the cost recovery of the services:
Cost recovery is only 32% for water supply services and for other services
it is 10% for the year 2008-09.
No water tax is imposed and water charges are collected depending on

supply of water through tankers.
Survey of properties within the Municipal Council is presently underway

and presently large numbers of properties within the Council are not
assessed for tax collection.
Grants and transfers account for about 57% of the total revenue while
municipal taxes account for only 18% of the total revenue for the year
2008-09. The share of municipal taxes to the total income need to be
improved.
Capital expenditure is skewed towards road and storm water drain works
and other infrastructure services requiring investments need to be
considered.
Salary accounts for 42% of the total revenue expenditure and the same
need to be curtailed in the coming years.
15 Institutional Reforms
Only four positions are filled in Kolar Municipal Council and the Council is in
the process of inducting additional staff on permanent basis. Except for the 4
permanent employees all the departments are managed by temporary
workers.
Implementation of Reforms is critical for achieving self sustainability for the

ULB and hence mandatory and optional reforms need to be implemented in a
phased manner within the scheme period. The broad area of reforms along
with the action plan is presented below:
Reforms and Action Plans for Kolar Municipal Council

Particulars Presents status Proposed
Property Tax Only online form Online payment of Tax
is provided Property Tax calculator with the help of
with JPEG which Assessee can work out the tax rate
format applicable for his/ her Property.
Defaulters list to be posted on website to
ensure greater compliance
Kiosks at various places to pay taxes
online
Listing of collection centres, Facilitation
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centres for Property tax collection online

Online information for administrators for
better monitoring
Water Supply and Only new Online payment for water tax
Other Utilities connection form Filing request for new water connection
has been made
available. Online request for water tanker if required.
Citizens Online filing of Status of complaint and action taken report

Grievance complaints to be made online
Monitoring by citizens Citizen Service centers and call centers to
be setup for processing of all application
forms and address grievances.
Categorization of complaints in the online
format department wise for speedy action
Drainage, encroachment, health, roads,
water, street light, solid waste, tax, illegal
construction etc.
Procurement and Provision of Display of tenders by department, including
Monitoring of Tender and the tender documents, online submission
Projects community of tenders. E-tendering for all tenders to
participation ensure transparency
E-procurement notices ( E-procurement for empanelment,
Project/ward currently, there registration and selection of vendors for
works has been no various works, goods
information
provided ) Online Project Monitoring system to check
planned vs. achieved progress of work
from various sites to control time overruns
Integration with the Financial Management
system to control cost overruns
Building Plan Building plan Online status of building plan approval,
Approval approval form layout approval
available online Request for survey, reconstitution of plots
for download
Formats for AutoDCR in website and
automatic approval of the plans using
software to facilitate speedy approval of
building plans. Users shall upload the
AutoCAD drawing of the plan on the
website.
Formats for alteration to the existing
buildings
Advertisement Nil Details of advertisement boards/ hoardings
in each ward with the details about the
agency name, dimension of the board,
status of the approval, cost of
advertisement based on the zones and
area, termination date, and facility for
online auction of advertisement space.
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Public Health Nil Online filing and processing of D&O, PFA

Management trade license
Licenses Request for sullage lorry
Solid Waste Complaints and request for street
Management sweeping, dustbins by citizens
GIS Mapping Nil Mapping of the following:
ULB and ward boundaries
Road and street layer
Property layer
Household & demographic
Water supply network
Sewerage network
Street lighting
SWM
Storm water drains
Source: Compiled from Municipal Accounts, Kolar Municipal Council
16 Stakeholder Consultation
The Consultant had consultations with administrative members, senior

citizens and with members of various para-statal agencies. Further, the
Consultant had interviewed cooperators, random surveys and interviews with
slum dwellers to understand ward level issues and identifying projects for
the same.
17 SWOT Analysis of City
Strength:
Kolar lies in close proximity to the capital city, Bhopal.
Kolar has fairly good access to regions by Road, Rail and Air
Cheap residential town compared to nearby metropolitan area.
Water source in close proximity Kolar dam.
Weakness:
Town has no comprehensive water supply and sewerage system as
on today.
Town has no treatment facilities for solid Waste management.
Poor financials deters Municipal Council from taking Capital Intensive
projects
Poor road network and transport facilities
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Lack of updated property survey and register resulting in low tax

collections.
Opportunities
Satellite town of Bhopal
Proposed Comprehensive water supply scheme under UIDSSMT.
Creating environment friendly town by creating state of art
infrastructure, developing green spaces and preserving water bodies.
Large Municipal area and presence of undeveloped land parcels.
Threats:
Burgeoning Slums
Health hazard due to absence of proper sewerage, sanitation and
storm water drains
Haphazard growth and unplanned development
18 Vision Statement
Stakeholders Consultations and Focus Group Discussions held in Kolar

municipal council have resulted in identifying and formulating City Vision for
future development.
City Vision:
To become a self sustainable Urban Growth Centre with proper

community development and hassle free connectivity systems.
19 Environment Improvement and Energy Efficiency
On the basis of the existing situation analysis and basic calculation, issues
related to energy efficiency in possible sectors were identified.
Sector Energy Saving Potential Projects

Physical Infrastructure
Pumping motor- more Water supply Network
efficient improvement project.
Pumping loss- due to HP Water Treatment plant
used and hours of operation. project
Water Supply
Friction loss- old pipes, Provision of Water
effective diameter and meters for water audit.
material of pipe.
Physical losses
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Sector Energy Saving Potential Projects

16 MLD generation per day Sewage treatment
Sewerage Manure can be secondary plant project
and outcome. Sewage Pumping
sanitation Station with pumping
main
5.0 MT of solid waste is Development of land fill
generated currently which is site for Non renewable
Solid waste less for waste to energy inert waste
management plant. Upgradation of
Compost Plant project
Solar street lighting Street Illumination as
Street per Demand Scheme
Use of efficient CFL and SV
lighting
lamp instead of current
lighting system.
20 Project Costing and Phasing
Project costing and Phasing under current and constant prices have been
carried out. The details are presented in the Chapter on Capital Investment
Plan. (in Rs. Lakhs)
A+B+C PHASE -A PHASE- B PHASE -C

Estimated
Sectors for City Investment cost in 2011-12to 2016-17 to 2026-27 to
Plan lakhs 2015-16 2025-26 2035-36
Water Supply 13285.16 5591.46 3317.70 4376.00
Sewerage & Sanitation 7365.52 3267.52 782.50 3315.50
Storm Water Drainage 11309.02 733.47 7630.55 2945.00
Solid Waste Management 784.09 359.62 140.23 284.23
Roads, Traffic and
Transportation 7485.23 1474.89 2727.68 3282.67
Street Lighting 532.68 253.19 158.51 120.98
Socio-Economic Infrastructure 1040.00 372.50 592.50 75.00
Slums & Urban Poverty 1801.56 900.78 900.78 0.00
Total 43603.26 12953.43 16250.45 14399.38
21 Financial Operating Plan
The projects under City Development Plan will be funded as follows:
80% of the project cost by the State Government and 20% of the project
cost by the Kolar Municipal Council. Projects under Slums and Urban Poverty
(Housing component) have been considered to be funded in the ratio of
80:10:10 with respect to State Government: ULB: Self Contribution.
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Financial Operating Plan after taking up all the projects

Financial Operating
Plan under Full 2011- 2012- 2013- 2014- 2015-
Total
Reform Scenario 12 13 14 15 16
Rs. Lakhs.
Project Cost 5000.30 5380.65 782.41 1118.18 370.82 12652.36
Contingency 250.02 269.03 39.12 55.91 18.54 632.62
Cost escalation 150.01 327.68 72.55 140.34 59.06 749.64
Sub-total 5400.33 5977.36 894.08 1314.43 448.42 14034.62
Funding
Central Government
4320.26 4781.89 715.26 1051.54 358.74 11227.70
contribution @80%
State Government
540.03 597.74 89.41 131.44 44.84 1403.46
contribution @10%
Municipality
contribution including
public deposits for
540.03 597.74 89.41 131.44 44.84 1403.46
Water Supply and
Sewer scheme
@10%
Financial Operating Plan
Surplus of
1143.08 958.22 513.59 615.23 713.18 3943.31
Municipality
Less contribution of
Kolar Municipality 540.03 597.74 89.41 131.44 44.84 1403.46
towards projects
Less O&M due to
9.86 29.42 526.00 579.96 627.38 1772.61
new projects
Opening Balance 0.00 593.20 924.26 822.44 726.27
Net Surplus/ Deficit 593.20 331.07 -101.82 -96.17 40.96 767.23
Closing Balance 593.20 924.26 822.44 726.27 767.23
Funding Option Contribution as % of project cost

Central Government 80%
State Government 10%
Kolar Municipality 10%
22 Alternate Options for funding the projects

Kolar Municipal Council has limited financial resources for funding the
projects identified. Hence alternative funding sources need to be identified.
The possible funding alternatives are presented below:
Loans and Internal Accruals
Maximum surplus generated by Kolar Municipal Council is Rs. 127.28 Lakhs.

The maximum loan which can be raised by the Council is Rs. 300 Lakhs,
after Considering Debt Service Coverage Ratio 0f 1.25. Hence, fund raising
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capacity of Kolar Municipal Council through loans is limited in the present

scenario.
With the implementation of reforms, if the internal accruals and the debt
repayment record of Kolar Municipal Council improve, then further loans can
be availed on the strength of the new projects to be implemented.
Pooled Financing Mechanism
There are two types of financing mechanism under the pooled funding
mechanism:
i. A blind pool, where a bond bank raises sufficient funds based on its
own credit rating and then on lends to the local body; and
ii. A project-specific pool, where several projects are pooled and lumped
together in a bond issuance, thereby significantly reducing transaction
costs and improved pricing.
In order to reduce transaction costs and improved pricing, these kind of
funding mechanism operated by Tamilnadu Urban Development Fund
(TNUDF) and Karnataka Urban Infrastructure Development Finance
Corporation (KUIDFC). With the help of project specific pool mechanism, the
14 Urban Local Bodies of Tamilnadu state pooled some water and sanitation
projects under a special purpose vehicle called the Water and Sanitation
Pooled Fund (WSPF) and rose about Rs. 300 milllion from the bond market
at an interest of 9.2% in the year 2002.
Similar funding mechanism can be considered for less credit worthy

borrowers like Kolar Municipal Council which has a poor debt repayment
record.
Nodal Agency/ State Government Agencies Funding

In certain places are taken up by the railways and flyovers and other
roads by the state PWD. E.g. ROBs, Flyovers etc.
Low cost sanitation projects can be funded by NGOs and State
Government with the Municipal council contributing to a portion of the
cost and acting as a facilitator in implementation.
Public Private Partnership (PPP)

Public Private Partnership projects are gaining importance in recent years
even with smaller municipalities. Parking lots, solid waste management,
hospitals and even slum redevelopment programmes have been
implemented under PPP wherein the private sector develops the facility,
operates for a specified concession period and transfer the facility back to
the local body. Though large scale participation of private sector is lacking in
water supply schemes, Chandrapur Municipal Corporation has implemented
water supply scheme under PPP.
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Tertiary Water Treatment of Sewage in Surat

Surat Municipal Corporation has adopted the PPP route, on Design Build
Finance Operate and Transfer (DBFOT) basis for a concession period of 20
years under PPP, for setting up of a tertiary sewage treatment plant to treat
secondary treated water from Bamroli Sewage Treatment Plant
Water Distribution in Chandrapur
Water distribution for the local community was therefore handed over to the
private sector participant in order to reduce huge water losses and increase
coverage and service delivery efficiencies. Both distribution of water to
existing users as well as the maintenance of the Filter Plant was entrusted to
the private player.
The initial investment of the project was Rs 3.0 Crs. The private party
injected Rs 50 lakhs and raised another Rs 2.5 Crs by selling 50% equity on
a premium. The revenue sharing arrangement for the private player was -
Private player to collect tariff charges
Revenue sharing arrangement, such that private player makes a total
payment of Rs 1.59 Cr. to the municipal corporation in 10 years
Private player allowed to increase tariff charges by 10% every 3 years
However, technical supervision to be done by the CMC Nodal Engineer with a

regular program of inspection of the filter plant, every 3 to 4 days.
The private party initially planned on a break-even in the third year of
operations but due to steep rise in electricity charges (35% increase in three
years) the break even was delayed by a year. The operational efficiencies
after appointment of the private sector participant are reduction in Non
revenue water through technical solution, improvement in pumping
efficiency; streamlining the water tax and 95% cost recovery, increase in per
capita supply. Also the other neighbouring cities also requested private party
to employ the same activities in their respective cities.
Development of Parking Lots under PPP

Brihanmumbai Municipal Corporation (BMC) and Jaipur have developed a
multi-storeyed mechanised parking lot on a PPP basis. Mumbai has provided
at Bhulabhai Desai Road and at Jaipur there are five sites for development of
parking lots under PPP.
Other PPP projects

Management of Municipal Solid Waste in Delhi, Bangalore, Chennai,
Jodhpur and Sirsa.
Construction of Bus terminals at Dehradun, many cities in the state of
Gujarat and Amritsar on PPP.
Thriupur water supply and sewer project on BOOT basis.
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Alandur underground sewerage scheme under which the Public

participation in the scheme by financial contribution in the form of upfront
payment for service connections.
Other sources of project funding

The municipal council can leverage its land assets for implementation of
projects through private sector participation. Alternatives include granting
higher Floor Space Index, Transfer of Development Rights for raising funds
for projects.
However this depends on the real estate demand in the region Energy
Efficiency Projects especially in Street lighting and Solid waste management
and waste recovery are eligible for availing carbon credits (Certified Emission
Reductions) which are tradeable. However, the projects should be large
enough for application for CERs under Clean Development Mechanism
23 Supervision of capital works and maintenance
Appointment of Project Management Consultants for

Implementation
Kolar Municipal Council lacks trained manpower to carryout supervision of
the projects, monitoring of the quality of work within the stipulated costs
and without delays is a challenge. Appointment of Project Management
Consultants for monitoring of the projects is essential.
Turnkey contracts with minimum years of operation obligation

With the Municipal councils lacking skilled staff in design, execution and
operation and maintenance, project contracts can be structured as turnkey
contracts with the contractor be made responsible for design, construction
and operation and maintenance for a specified number of years, say, 5
years. During the O&M phase, the contractor can train the municipal council
employees to undertake O&M in subsequent years.
Induction of Technical staff

Induction of trained and skilled manpower is essential in municipal councils
as they are responsible for service delivery of basic infrastructure facilities
Water Supply, Sewer, Roads etc. In Municipal Council there are no skilled
staffs for each sector and only one Civil Engineer is employed. Also, the
training needs to be imparted to the staff of the municipal council in
technical areas, administration, IT tools and Management Information
Systems.
Outsourcing of municipal functions

To maintain a lean organisation, Municipal councils can outsource some of its
functions for a fixed consideration. This improves efficiency and reduces the
burden on the municipal council. Some of the areas where outsourcings of
the functions are practiced are:
Street lighting
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Solid waste management

O&M of parks
Accounting
Even O&M for water treatment and distribution systems, sewer treatment
and distribution systems, tax collection can also be outsourced to improve
efficiency and ensure effective service delivery.
Darashaw & Company Pvt Ltd. Page |q
City Development Plan, Kolar
Table of Contents
1 Project Background ............................................................................................... 1

1.1 City Development Plan .................................................................................................... 1
1.2 Approach and Methodology ............................................................................................. 2
1.2.1 Inception stage ....................................................................................................................................4
1.2.2 Database Identification and Anthology ................................................................................................4
1.2.3 Sectoral Analysis .................................................................................................................................4
1.2.4 Vision and development objectives .....................................................................................................5
2 Town Profile ......................................................................................................... 10

2.1 Profile of the town ................................................................................................................... 10
2.2 Regional setting ...................................................................................................................... 10
2.3 Location, Linkages and connectivity........................................................................................ 11
2.4 Municipal area ......................................................................................................................... 13
2.5 Physiographic and Landform................................................................................................... 13
3 Demography ......................................................................................................... 14
3.1 Population Density .................................................................................................................. 14
3.2 Population Growth Trend ........................................................................................................ 14
3.3 Population Projection .............................................................................................................. 15
3.3.1 Population projections as per studies and reports ............................................................................15
3.3.2 Population Projections done for Kolar City Developed Plan .............................................................15
3.4 Issues ...................................................................................................................... 16
4 Socio-Economic Profile....................................................................................... 17
4.1 Social Indices ............................................................................................................... 17
4.1.1 Gender Ratio .....................................................................................................................................17
4.1.2 Literacy Rate .....................................................................................................................................17
4.1.3 Average Household Size ...................................................................................................................17
4.1.4 Social Composition............................................................................................................................18
4.2 Economic Base of the town ........................................................................................... 18
4.2.1 Work Force Participation Rate (WFPR).............................................................................................18
4.2.2 Occupational pattern .........................................................................................................................19
4.2.3 Industrial Activities.............................................................................................................................19
4.2.4 Trade and Commerce........................................................................................................................19
4.2.5 Tourism..............................................................................................................................................19
4.3 Issues ...................................................................................................................... 20
5 Physical Planning & Growth Management ........................................................ 21

5.1 Spatial growth and Distribution .............................................................................................. 21
5.2 Kolar Ward Delineation Map ................................................................................................... 22
5.3 Land Usage and Land Use classification ................................................................................ 22
5.3.1 Kolar Master Plan .................................................................................................... 22
5.4 Illegal Colonies ...................................................................................................................... 23
5.5 Future Growth and Possibilities ............................................................................................. 25
5.5.1 Development potentials ...................................................................................................................25
5.5.2 Development Constraints ................................................................................................................25
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5.6City Specific Strategies and Action Plans ...................................................................... 25
6 Physical Infrastructure ........................................................................................ 26

6.1Water Supply ............................................................................................................... 26
6.1.1 Water Supply System .....................................................................................................................26
6.1.2 Source for Water supply .................................................................................................................26
6.1.3 Water Supply treatment and distribution ........................................................................................26
6.1.4 Water Distributions Arrangements...................................................................................................26
6.1.5 Quantity and quality of Water in Distribution System ......................................................................27
6.1.6 Internal Distribution Networks .........................................................................................................27
6.1.7 Comparative Analysis with UDPFI, CPHEEO Guidelines ...............................................................28
6.1.8 Water Supply Projects .....................................................................................................................29
6.1.9 Present and Future Demand and Supply Gaps ..............................................................................29
6.1.10 SWOT Analysis- Water supply ........................................................................................................30
6.1.11 Issues ..............................................................................................................................................30
6.1.12 City Specific Strategies and Action Plans .......................................................................................31
6.2 Sewerage and Sanitation .............................................................................................. 32
6.2.1 Existing Sewerage Systems in Kolar.................................................................................................32
6.2.2 Means of Sewage disposal................................................................................................................33
6.2.3 Household Toilets (Dry Latrines and Flush Latrines) ........................................................................33
6.2.4 Public Toilets .....................................................................................................................................33
6.2.5 Comparative Analysis with UDPFI and CPHEEO Guidelines. ..........................................................33
6.2.6 Sanitation Projects.............................................................................................................................34
6.2.7 Present and Future Demand Supply Gaps .......................................................................................34
6.2.8 SWOT Analysis .................................................................................................................................35
6.2.9 Issues ................................................................................................................................................35
6.3 Solid Waste Management.............................................................................................. 37
6.3.1 Quantity of Waste Generated ............................................................................................................37
6.3.2 Constituents of Municipal Waste .......................................................................................................37
6.3.3 Primary and secondary collection......................................................................................................37
6.3.4 Waste Storage and Segregation .......................................................................................................37
6.3.5 Processing and Disposal ...................................................................................................................38
6.3.6 Reuse and Recycle ...........................................................................................................................38
6.3.7 Vehicles for solid waste collection and Transportation......................................................................38
6.3.8 Estimation of Waste Collection..........................................................................................................38
6.3.9 Comparative analysis with UDPFI guidelines....................................................................................38
6.3.10 Present and Future Demand and Supply Gaps ..............................................................................39
6.3.11 Proposed Scheme of Solid Waste Management.............................................................................41
6.3.12 SWOT Analysis ...............................................................................................................................41
6.3.13 Issues ..............................................................................................................................................42
6.4 Storm Water Drainage .................................................................................................. 44
6.4.1 Existing Drainage System .................................................................................................................44
6.4.2 Major Water Bodies ...........................................................................................................................44
6.4.3 Primary, Secondary and Tertiary Drains ...........................................................................................44
6.4.4 Flood prone areas .............................................................................................................................45
6.4.5 Flooding in catchments of major nallah .............................................................................................45
6.4.6 Comparative Analysis with UDPFI, CPHEEO Guidelines .................................................................45
6.4.7 SWOT Analysis .................................................................................................................................45
6.4.8 Issues ...............................................................................................................................................46
6.4.9 City Specific Strategies and action plan ...........................................................................................46
6.5 Traffic and Transportation.............................................................................................. 47
6.5.1 Existing traffic and transportation scenario..................................................................................47
6.5.2 Agencies in traffic and transportation ..........................................................................................47
6.5.3 Travel Characteristic....................................................................................................................47
6.5.4 Public Transport ..........................................................................................................................48
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6.5.5 Bus Stand infrastructure ..............................................................................................................48

6.5.6 Traffic Management and Circulation............................................................................................49
6.5.7 Inter City Transport......................................................................................................................49
6.5.8 Intermediate Public Transport .....................................................................................................50
6.5.9 Parking Requirements .................................................................................................................50
6.5.10 Present and Future Demand and Supply Gaps...........................................................................50
6.5.11 Comparative analysis with UDPFI, other guidelines....................................................................50
6.5.12 SWOT analysis............................................................................................................................51
6.5.13 Issues ..........................................................................................................................................51
6.5.14 Key Challenges ...........................................................................................................................51
6.5.15 City Specific Strategies and Action Plans....................................................................................52
6.6 Streetlighting ................................................................................................................ 53
6.6.1 Existing Situation of Street Lights................................................................................................53
6.6.2 Present and Future Demand and Supply Gaps...........................................................................53
6.6.3 Comparative Analysis with UDPFI...............................................................................................54
6.6.4 SWOT analysis............................................................................................................................54
6.6.5 Issues ..........................................................................................................................................54
6.6.6 City Specific Strategies and Action Plans....................................................................................55
6.7 Fire fighting services ..................................................................................................... 58
6.7.1 Vehicle and Equipments for fire fighting and rescue operations .................................................58
6.7.2 Operational Systems ...................................................................................................................58
7 Socio economic ................................................................................................... 59

7.1 Health ...................................................................................................................... 59
7.1.1 Health Facilities ...........................................................................................................................59
7.1.2 Basic Health Indicators................................................................................................................59
7.1.3 Medical Facilities Provided By Municipal Body ...........................................................................60
7.1.4 Role of Municipal Council in Health Programs ............................................................................60
7.2 Overall Education Facilities and Teachers in Town .......................................................... 60
7.2.1 Literacy Indicators .......................................................................................................................61
7.2.2 Education Facilities Provided by Municipal Council ....................................................................61
7.3 Recreational Facilities ................................................................................................... 61
7.3.1 Sports Facilities .................................................................................................. 61
7.4 Comparative Analysis with UDPFI .................................................................................. 62
7.4.1 Demand and Supply Gaps for Health Facilities...........................................................................62
7.4.2 Demand and Supply Gaps for Education ....................................................................................62
7.5 SWOT Analysis ....................................................................................................................... 63
7.6 Issues .................................................................................................................................. 63
7.7 City Specific Strategies and Action Plans................................................................................ 64
8 Slums and Urban Poverty ................................................................................... 65

8.1 Poverty in Kolar Town and Slum population .................................................................... 65
8.2 Slums in Kolar .............................................................................................................. 65
8.3 General Characteristics of the Slums .............................................................................. 65
8.4 Status of Slums ............................................................................................................ 66
8.5 Land Ownership and Tenure Status ............................................................................... 66
8.6 Urban Basic Services in Slums ...................................................................................... 66
8.7 Social Security Schemes and Beneficiaries ..................................................................... 66
8.8 SWOT analysis ....................................................................................................................... 66
8.9 Issues 67
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9 Environmental Status .......................................................................................... 68

9.1 Flora and Fauna ...................................................................................................................... 68
9.2 Pollution Level (Air, Water, Soil).............................................................................................. 68
9.3 City Green Spaces .................................................................................................................. 69
9.4 Water Front Development and Conservation .......................................................................... 69
9.5 Urban Environment ................................................................................................................. 69
9.5.1 Land Use ......................................................................................................................................69
9.5.2 Anthropogenic hazards.................................................................................................................69
9.5.3 Urban Environment Quality...........................................................................................................70
9.6 Existing Environmental Regulations ........................................................................................ 70
9.7 SWOT Analysis ....................................................................................................................... 71
9.8 Issues 71
10. Heritage and Conservation ................................................................................. 72

10.1 Heritage Structures ................................................................................................................. 72
10.2 Existing Heritage Regulations ................................................................................................. 72
10.3 Heritage Issues ....................................................................................................................... 72
10.4 Tourism Potential of Kolar ....................................................................................................... 72
10.5 Possibility of Tourism Circuits at Regional Level..................................................................... 72
10.6 Comparative Analysis with UDPFI Guidelines......................................................................... 73
10.7 SWOT analysis ....................................................................................................................... 74
10.8 Issues 74
10.9 City Specific Strategies and Action Plan ................................................................................. 74
11. Institutional Framework ...................................................................................... 75

11.1 Kolar Municipal Council Structure ................................................................................... 75
11.1.1 Organization ................................................................................................................................75
11.1.2 Staff Strength...............................................................................................................................75
11.1.3 Functions of Various Departments ..............................................................................................76
11.2 Institutions Responsible for Service Delivery ................................................................... 77
11.2.1 Town and Country Planning Department ....................................................................................78
11.2.2 Development Authority ................................................................................................................78
11.2.3 Public Health Engineering Department .......................................................................................78
11.2.4 Madhya Pradesh Housing Board.................................................................................................78
11.2.5 Madhya Pradesh Pollution Control Board ...................................................................................79
11.3 Role of Private Sector in Infrastructure Service Provision.................................................. 79
11.4 Issues 80
11.5 Prioritised Action Plan ................................................................................................... 80
11.5.1 Property assessment...................................................................................................................80
11.5.2 Survey of assets ..........................................................................................................................80
11.5.3 Improvement in collection efficiency and cost recovery ..............................................................80
11.5.4 Municipal Capacity Building.........................................................................................................80
11.5.5 Additional strategies ....................................................................................................................81
12 Investment Plan and Financial Strategies ......................................................... 83

12.1 Financials of Kolar for last two years....................................................................................... 83
12.2 Analysis of Revenue Income................................................................................................... 85
12.2.1 Municipal Taxes...........................................................................................................................85
12.2.2 Non-Tax Income ..........................................................................................................................86
12.2.3 Municipal Revenue Income .........................................................................................................87
12.3 Analysis of Revenue Expenditure ................................................................................... 88
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12.3.1 Establishment (wages and salaries)............................................................................................89

12.3.2 Operation and maintenance ........................................................................................................89
12.3.3 Others ..........................................................................................................................................89
12.4 Capital Income ............................................................................................................. 89
12.4.1 Grants including transfers............................................................................................................89
12.4.2 Loan details .................................................................................................................................91
12.5 Capital Expenditure ...................................................................................................... 91
12.5.1 Level of aggregate investment in urban infrastructure .................................................. 91
12.6 Key Financial Indicators ................................................................................................ 92
12.6.1 Water Supply ...............................................................................................................................92
12.6.2 Sanitation, Street lights and Fire .................................................................................................93
12.7 Key Issues and Conclusion ..................................................................................................... 93
13 Investment Prioritization Plan............................................................................. 95

13.1 Project Identification .............................................................................................................. 99
13.2 Basis for Project Identification ............................................................................................... 99
13.3 Projects for System and Infrastructure Augmentation ......................................................... 100
13.4 Projects for System and Infrastructure Refurbishment ........................................................ 100
13.5 Other Development Projects ............................................................................................... 101
13.6 Sector wise Project Identification and Costing .................................................................... 102
13.6.1 Water Supply ...........................................................................................................................102
13.6.2 Sewerage and Sanitation ........................................................................................................103
13.6.3 Solid Waste Management .......................................................................................................104
13.6.4 Roads, Traffic and Transportation ...........................................................................................106
13.6.5 Street Lighting .........................................................................................................................107
13.6.6 Other Identified Projects ..........................................................................................................108
13.6.7 Slum Development for Urban Poor in Kolar ............................................................................110
13.7 City Investment Plan ................................................................................................. 111
13.8 Financial Operating Plan ........................................................................................... 111
13.8.1 Projection of Financial Statement............................................................................................111
13.8.2 Assumptions for other sources of Revenue income ................................................................114
13.8.3 Assumptions for other sources of Revenue Expenditure ........................................................114
13.9 Capital Expenditure And O&M For New Projects .......................................................... 115
13.10 Sustainability Of Municipality Without Implementation Of Reforms ................................. 116
13.11 Financial Operating Plan (FOP) Considering Reform Measures .................................... 117
13.11.1 Partial Reforms Scenario...........................................................................................................118
13.11.2 Full Project With Reforms Scenario...........................................................................................118
13.11.3 Revenue Income .......................................................................................................................118
13.12 Partial Reform Scenario .............................................................................................. 120
13.12.1 Sustainability Under Partial Reform Scenario ........................................................... 123
13.13 Full Reforms Scenario .................................................................................. 123
13.13.1 Sustainability Under Full Reform Scenario .............................................................. 125
13.14 FUNDING OPTION FOR KOLAR MUNICIPALITY ......................................................... 126
13.15 OPTIMAL FINANCIAL OPERATING PLAN FOR KOLAR MUNICIPALITY ........................ 126
13.16 Alternative funding options for the identified projects ...................................................... 127
13.16.1 Loans and Internal Accruals ......................................................................................................127
13.16.2 Pooled Financing Mechanism ...................................................................................................127
13.16.3 Nodal Agency/ State Government Agencies Funding ...............................................................128
13.16.4 Public Private Partnership (PPP)...............................................................................................128
13.17 Supervision of capital works and maintenance............................................................... 132
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13.17.1 Appointment of Project Management Consultants for Implementation .....................................132

13.17.2 Turnkey contracts with minimum years of operation obligation.................................................132
13.17.3 Induction of Technical staff........................................................................................................132
13.17.4 Outsourcing of municipal functions............................................................................................132
14 Urban Reforms and Resource Mobilization..................................................... 133

14.1 Reforms and measures for Kolar Municipal Council ....................................................... 133
14.1.1 Financial Reforms: .......................................................................................... 133
14.2 Property Tax Reforms: ................................................................................................ 134
14.2.1 Present Status: ..........................................................................................................................134
14.2.2 Strategies and measures...........................................................................................................135
14.3 Accounting reforms: .................................................................................................... 138
14.4 Institutional Reforms: .................................................................................................. 138
14.4.1 Training and Capacity Building for administrative staff and elected officials:...........................139
14.4.2 Private sector participation: .......................................................................................................140
14.4.3 User Charges ............................................................................................................................141
14.4.4 E-governance: ...........................................................................................................................143
14.5 Reforms in physical information:................................................................................... 145
14.6 Status of Mandatory Reforms ...................................................................................... 147
14.7 Status of Optional Reforms .......................................................................................... 149
14.8 Issues .................................................................................................................... 149
14.9 City Specific Strategies and Action Plans ...................................................................... 150
15 City Vision .......................................................................................................... 151

15.1 Vision Statement for Kolar City .................................................................................... 152
15.2 Key Priorities .............................................................................................................. 152
Annexure 1 ........................................................................................................ 153

1. Formation of Steering Group ........................................................................... 153
2. First kickoff workshop ..................................................................................... 154
3. Second Stakeholders workshop ...................................................................... 161
4. Third Stakeholders Meeting ............................................................................ 163
5. Fourth Workshop ........................................................................................... 164
A.SPECIAL PAPERS
Measures for making Kolar a Sustainable City
Energy efficiency system in street lighting-Kolar
B.MAPS
Kolar town map
Kolar ward map
Kolar water supply map
Kolar road map
Kolar slums map
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List of Tables
Table 2-1: Bhopal District Profile .......................................................................................................... 10
Table 2-2: Area details for kolar municipal council ............................................................................... 13
Table 3-1: Population details of Kolar Municipal area 2001............................................................... 14
Table 3-2 : Population projection- Solid waste - DPR........................................................................... 15
Table 3-3 : Population projection- Water Supply -DPR......................................................................... 15
Table 3-4 : Existing Population............................................................................................................. 15
Table 3-5 : Population projection details............................................................................................... 16
Table 4-1: Gender ratio and its comparison ......................................................................................... 17
Table 4-2: : Literacy levels & comparison............................................................................................ 17
Table 4-3: Social Composition.............................................................................................................. 18
Table 4-4: WFPR and its comparison 2001...................................................................................... 18
Table 4-5: Classification of Workers - 2001........................................................................................ 19
Table 4-6 Tourist spots around Kolar ................................................................................................... 19
Table 5-1 : Ward wise population details.............................................................................................. 21
Table 6-1: Water Supply system in Kolar ............................................................................................. 27
Table 6-2: Water Supply system in Kolar ............................................................................................. 28
Table 6-3: Performance Indicators ....................................................................................................... 28
Table 6-4 : Demand assessment for water supply ............................................................................... 29
Table 6-5: Goals & Service Outcomes for Different Horizon Years ...................................................... 31
Table 6-6: Performance Indicators- Sewerage system......................................................................... 34
Table 6-7: Demand Supply Gap - Sewerage system ........................................................................... 34
Table 6-8: Goals & Service Outcomes for Different Horizon Years ...................................................... 36
Table 6-9: Vehicles deployed for Secondary waste collection & disposal ............................................ 38
Table 6-10 Performance Indicators ...................................................................................................... 38
Table 6-11 Demand supply gap for solid waste management.............................................................. 39
Table 6-12 Demand supply gap for solid waste management equipments .......................................... 40
Table 6-13: Goals & Service Outcomes for Different Horizon Years .................................................... 42
Table 6-14 : Comparative guidelines for storm water drainage ............................................................ 45
Table 6-16 : Ward wise road details in Kolar Municipal area................................................................ 49
Table 6-17 : Demand supply gap for roads .......................................................................................... 50
Table 6-18 : Comparative guidelines for roads..................................................................................... 51
Table 6-20 : Connected load details. .................................................................................................... 53
Table 6-21 : Demand assessment for Street lighting sector ................................................................. 54
Table 6-22: Performance Indicators regarding Street Lighting ............................................................. 54
Table 6-23 : Investment analysis and payback (40 W tube lights)........................................................ 55
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Table 6-24 : investment analysis and payback (150 W HPSV lamps).................................................. 56

Table 6-25 : investment analysis and payback (250 W HPSV lamps).................................................. 57
Table 7-1 : Existing health Facilities ..................................................................................................... 59
Table 7-2 : Basic Health Indicators....................................................................................................... 59
Table 7-3 : Existing health Facilities ..................................................................................................... 60
Table 7-4: : Literacy levels & comparison............................................................................................ 61
Table 7-5: Demand & supply gaps for health facilities.......................................................................... 62
Table 7-6: Demand & supply gaps for education facilities .................................................................... 62
Table 8-1 : Slums and Slum Population in Kolar .................................................................................. 65
Table 9-1 Urban Environment Quality Check ....................................................................................... 70
Table 10-1 Tourist spots around Kolar ................................................................................................. 72
Table 11-1: Present Staff Strength ...................................................................................................... 75
Table 12-1 : Municipal Finances of Kolar (in Rs. Lakhs) ...................................................................... 83
Table 12-2 : Municipal Revenue of Kolar (Rs. Lakhs) .......................................................................... 87
Table 12-3: Revenue Expenditure of Kolar (in Rs. Lakhs).................................................................... 88
Table 12-4: Expenditure on capital works (in Rs. Lakhs)..................................................................... 92
Table 12-5: Cost Recovery for water supply services (in Rs. Lakhs) ................................................. 92
Table 12-6: Phase-wise city investment for Kolar (in Rs. Lakhs)........................................................ 94
Table 12-7: Phase-wise projects - physical and social infrastructure, urban renewal and urban poverty.
............................................................................................................................................................. 95
Table 13-1: projects for infrastructure augmentation ........................................................................ 100
Table 13-2: projects for infrastructure refurbishment ........................................................................ 100
Table 13-3: other development projects ............................................................................................ 102
Table 13-4: Estimated Project Cost of various works under Water Supply......................................... 102
Table 13-5: Goals and Service outcomes related to Water Supply sector ......................................... 103
Table 13-6: Project implementation schedule for water supply .......................................................... 103
Table 13-7: Provision of community toilets with cost .......................................................................... 103
Table 13-8: Estimated Project Cost of various works under sanitation services................................. 104
Table 13-9: Goals and Service outcomes related to Sewer and sanitation services. ......................... 104
Table 13-10: Project implementation schedule for Sewer and sanitation services ............................. 104
Table 13-11: Estimated Project Cost of various works under municipal solid waste management. ... 105
Table 13-12: Goals and Service outcomes related to Municipal solid waste management ................ 105
Table 13-13: Project implementation schedule for municipal solid waste management ..................... 105
Table 13-14: Estimated Project Cost of various works under Roads, Traffic and Transportation Works
........................................................................................................................................................... 106
Table 13-15: Goals & Service outcomes related to Roads, Traffic, Transportation ........................... 107
Table 13-16: Project implementation schedule for Roads, Traffic and Transportation ....................... 107
Table 13-17: Estimated Project Cost for street lighting ...................................................................... 108
Table 13-18: Project implementation schedule for street lighting ....................................................... 108
Table 13-19: Estimated Project Cost for socio-economic infrastructure ............................................. 109
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Table 13-20: Project Implementation Schedule for socio-economic infrastructure ............................. 109
Table 13-21: Estimated Project Cost for Master Plan/ Area Development Plan of Kolar region......... 110
Table 13-22: Project Implementation Schedule for preparation of master plan/ area development plan
of Kolar region. ................................................................................................................................... 110
Table 13-23: Estimated Project Cost for Slum development in Kolar ................................................. 110
Table 13-24: Project Implementation Schedule for slum improvement in Kolar ................................. 111
Table 13-25: Capital investment plan phase wise for all sectors ....................................................... 111
Table 13-26: Projected Financial Statement under No Reforms Scenario in Lakhs......................... 112
Table 13-27 : Assumption for Income................................................................................................. 114
Table 13-28 : Assumption for Revenue Expenditure .......................................................................... 115
Table 13-29 : Capital Expenditure in the first phase in Rs lakhs ........................................................ 115
Table 13-30 : O&M Expenditure for new projects in Rs. Lakhs .......................................................... 116
Table 13-31 : Sustainability without Reforms ..................................................................................... 116
Table 13-32: Key Reforms.................................................................................................................. 117
Table 13-33 : Key assumptions for forecasting income from Property Taxes..................................... 118
Table 13-34 : Key assumptions- forecasting income from Water Charges......................................... 119
Table 13-35 : Key assumptions forecasting income from Sewerage Charges ................................... 120
Table 13-36 : Financial Operating Plan for Partial reforms Scenario (Rs. In Lakhs) .......................... 121
Table 13-37 : Sustainability under partial reforms scenario................................................................ 123
Table 13-38 : Financial Operating Plan for Full reforms Scenario (Rs. In Lakhs)............................... 123
Table 13-39 : Sustainability under full reform scenario....................................................................... 125
Table 13-40 : Optimal financial operating plan for Kolar..................................................................... 126
Table 13-41 : Operational Efficiencies after appointment of Private Sector ....................................... 129
Table 13-42 : PPP Projects implemented under JNNURM................................................................. 130
Table 14-1 : Suggested Property taxes Reforms................................................................................ 135
Table 14-2 : Suggested Accounting Reforms ..................................................................................... 138
Table 14-3 : Areas of Privatization ..................................................................................................... 140
Table 14-4 : Reforms in Urban Governance:...................................................................................... 143
Table 14-5 : Reforms proposed in physical infrastructure .................................................................. 145
Table 14-6: Reform Status and Action Plan ....................................................................................... 147
Table 14-7: Optional reforms status ................................................................................................... 149
Table 15-1: Vision statements expressed by stakeholders during consultation.................................. 151
List of Figures:
Figure 2-1: Regional setting and Network Linkages - Kolar.................................................................. 12
Figure 5-1: Ward wise map of Kolar Municipal area ............................................................................. 22
Figure 12-1 : Municipal Taxes .............................................................................................................. 85
Figure 12-2 : Arrear and Current Property Tax Collection .................................................................... 86
Figure 12-3 : Non-tax Income............................................................................................................... 87
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Figure 12-4 : Average break-up of Revenue Expenditure .................................................................... 88

Figure 12-5 : Average break-up of Salary Expenditure ........................................................................ 89
Figure 12-6 : Grants and Transfers for 2008-09 ................................................................................... 90
Figure 12-7 : Capital expenditure sector-wise for the last two years .................................................... 92
Figure 14-1 : Proper tax collection for KMC....................................................................................... 134
Figure 14-2 : A possible approach for the Property tax reform ........................................................... 136
Figure 14-3 : Benefits of consumer greivance redressal system ........................................................ 139

Abbreviations:
ASHRAE American Society of Heating, Refrigerating and Air-conditioning Engineers

BEE Bureau of Energy Efficiency
BOLT Built Operate Lease Transfer
BOOT Build Own Operate Transfer
BOT Built Operate Transfer
BPL Below Poverty Line
BT Bitumen
CAGR Compound Annual Growth Rate
CC Cement Concrete
CDP City Development Plan
CIP City Investment Plan
CPHEEO Central Public Health and Environmental Engineering Organisation
DBFOT Design, Build, Finance, Operation and Transfer
DFID Department for International Development
DISCOM Division Support Command
DPR Detailed Project Report
DU Dwelling Unit
EE Energy Efficient
ESCO Energy Service Company
ESR Elevated Storage Reservoir
EWS Economically Weaker Section
FOP Financial Operating Plan
GIS Geographic Information System
GoMP Government of Madhya Pradesh
GSR Ground Storage Reservoir
HH Households
HVAC Heating, Ventilation, and Air Conditioning
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IHSDP Integrated Housing and Slum Development Programme

INR Indian Rupees
IREDA Indian Renewable Energy Development Agency
JnNURM Jawaharlal Nehru National Urban Renewal Mission
KMC Kolar Municipal Corporation
Kms Kilometres
LED Light-Emitting Diodes
LIG Low Income Group
LL Lakh Litres
LMV light Motor Vehicle
Lpcd Litres per Capita per day
MLD Million litres per day
MP Madhya Pradesh
MP/ MLA Member of Parliament/ Member of Legislative Assembly
Mt Metres
NGO Non Governmental Organisation
NH National Highway
O&M Operation & Maintenance
OHT Overhead Tank
PCU Passenger Car Unit
PHED Physical Health and Engineering Department
PPP Public Private Partnership
PVVNL Paschimanchal Vidyut Vitaran Nigam Limited
PWD Public Works Department
RE Renewable Energy
SC Scheduled Caste
SPV Special Purpose Vehicle
sq.m. Square Metre
ST Scheduled Tribe
STP Sewage treatment plant.
SWM Solid waste management
SWOT Strength, Weaknesses, Opportunities and Threats.
UADD Urban Administration and Development Department
UDPFI Urban Development Plans, Formulation and Implementation
UGD Under Ground Tank
UGSS Under Ground Sewerage System
UIDSSMT Urban Infrastructure Development Scheme for Small and Medium Towns
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USAID United States Agency for International Development

WFPR Work Force Participation Rate
WHO World Health Organisation
Acronyms:
Kutchha Temporary
Semi Pucca Semi Permanent
Pucca Permanent
Para Transit Modes of intermediate public transport like Auto rickshaws, cycle
rickshaws, minidors
Rickshaw 3 wheeler motorized vehicle.
Nallah Sewage Disposal Channels/ Strom Water Drainage Channels
Jhuggi Jhopries Slum Hutments
Chowk Intersection of two lanes
Nagar Palika Municipal Corporation
Lok Nirman Public Welfare
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1 Project Background
In order to meet the growing demands of infrastructure and service delivery,

GoI as well as GoMP have initiated a number of programmes. GoI has initiated
schemes like Urban Infrastructure Development Scheme for Small and Medium
Towns (UIDSSMT) and Integrated Housing and Slum Development Programme
(IHSDP). After initiating the aforesaid programmes the assessment of the
performance of the ULBs and their capacity for exploiting the aforesaid
resources was done. However it was found that in order to reap the entire
benefits of the schemes there is necessity of a strategic framework for
converging and co-ordinating various development inputs towards positioning
the city on a development path. Such a scheme or plan may also help in
accessing GoI / GoMP funding for development programmes.
Hence UADD Urban Administration and Development Department, GoMP has

initiated City Development plans for various cities in Madhya Pradesh.
Darashaw & Co. Pvt Ltd has been appointed to provide consulting services for
preparation of City Development Plan of Kolar Municipal Council.
1.1 City Development Plan
City Development Plan (CDP) is both a perspective and a vision for the future
development of a city.
CDP is a vision document outlining vision, strategies and tasks for the citys
preferred future with focus on the issues of greatest local concern for livability
and the implied requirements in terms of enhancing city productivity, reducing
poverty, improving urban governance and management and enhancing financial
sustainability. It presents the current stage of the citys development. It sets
out the directions of change. It identifies the thrust areas. It also suggests
alternative routes, strategies, and interventions for bringing about the change.
It provides a framework and vision within which projects need to be identified
and implemented. It establishes a logical and consistent framework for
evaluation of investment decisions.
Preparation of the CDP will consist of city development strategies that come out
of a structured consultative process. The process will enable elected
representatives, key staff of MC departments, parastatal agencies and other
institutions, policy makers and the citizens to participate and plan for spatial,
social and economic development of the concern cities. A City Development
Plan (CDP) will present both a vision of a desired future perspective for the city
and the ULBs strategic framework of sectoral plans translated into actions that
define on how the ULB, together with other stakeholders, intends to work
towards achieving their long-term vision in the next thirty years.
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1.2 Approach and Methodology
Evolving and conceptualizing a precise methodological framework is crucial as it

guides the task of preparing the City Development Plan (CDP) in a phased and
planned manner. The study methodology outlines the various tasks to be
carried out in the preparation of City Development Plan (CDP) for Kolar
Municipal Council, Madhya Pradesh.
The whole exercise is divided into four stages, which are further subdivided into
tasks and several sub-tasks or activities within them. Figure below shows the
adopted study methodology and is followed by a brief description on each of the
stages.
Page |2 Darashaw & Company Pvt Ltd.
1.2.1 Inception stage
This stage included Data collection, field reconnaissance and Identification of

key stakeholders for the Project. Discussions were held with the key
stakeholders and a Kick off workshop was organized involving all the
stakeholders.
The outcome of the meeting and preliminary assessment for the municipal area
has been detailed out in the Inception report. The Inception report was
submitted by the consultants to UADD and the Municipal Council on 12th
November 2009.
1.2.2 Database Identification and Anthology
A detailed checklist was prepared for all the sectors and the data was collected
from different departments and parastatal bodies. Additionally Field surveys
were also conducted to understand the onsite conditions.
1.2.3 Sectoral Analysis
Task 01: Sectoral Situation Assessment
This is the first task in the Stage Three on Sectoral Analysis. All the
information collected by Secondary sources has been analysed to arrive at
present development status at an urban area level. The Analysis includes all the
sectors as mentioned below:
Ecology and resource base
Socio- economic base
Infrastructure services
Housing
Urban governance
Municipal finance
Task 02: Status Assessment and SWOT Analysis
In order to develop a better understanding of the different sectors, Status

Assessment has been carried out on the basis of different parameters. Status
assessment has been carried out considering demography, economic base,
finance, physical and environment issues, infrastructure, institutions and
universalities of services to all the communities.
This has given the existing status of different sectors and subsequently helps in
arriving to SWOT analysis of all the sectors. The SWOT analysis helped us to
arrive at the Problems and key Issues for all the Sectors.
From the above findings, Consultant has prepared City profile consisting of the
assessment of the existing situation in all the sectors identified during first
workshop. The Sector Analysis Report presenting the finding of Sectoral
situation assessment and SWOT Analysis was submitted to the Municipal council
and UADD on 09th January, 2010.
1.2.4 Vision and development objectives
Consultant conducted the second workshop to develop city vision and sector
goals. For this city profile and sectoral analysis prepared in Sector Analysis
report were presented to the stakeholders and their inputs on vision and
development objectives that include strategies, priorities and major actions that
may be required in the next five years to move towards the vision 2040.
Task 01: Development Vision
This marks the beginning of Stage Four on Strategies and Projects. The first
task in this stage was the generation of future development Vision for the
Urban local body. The development Vision was decided on the basis of
Stakeholders and citizens perception about their city, Sectoral status
assessment and SWOT analysis. The development vision guides all the
subsequent stages and will help achieve it harmoniously. This plan also
incorporates the concept of Sustainability and aim at improved quality of life for
the citizens.
Task 02: Sectoral Goal and Strategies
On the basis of the sectoral issues identified along with the status assessment,
the sectoral goals and strategies were made to overcome those issues. And
these strategies were applied to different sectors on the basis of the sectoral
vision which may be linked to the development vision.
Institutional reforms were identified which can be implemented during the
scheme period. The reform measures include various e-governance applications
which the ULB should adopt in a phased manner. The reform areas like
Migration to Double Accounting System, Computerisation of Records, E-

Governance applications - Registration of Births and Deaths, E-procurement
etc., Revision of property tax guidelines and migration to self assessment of
property taxes, Community Participation in budgeting and ULB functioning and
Involvement of private sector in infrastructure projects and service provision
shall be recommended to be adopted.
The Consultant has used the JNNURM toolkit for CDP as a guideline document
while preparing the CDP.
During embarking on the journey of developing CDP document for Madhya
Pradesh state, Consultant has tried to capture the big picture-that is; the CDP
documents and vision statements prepared nationally and internationally by
various agencies in general to understand the new concepts and approach in
formulating development plans. The consultant has reviewed case studies on
CDP documents prepared nationally and internationally for adopting best
practices.
Energy Efficiency
While preparing the City Development Plan the Consultant has laid greater
stress on Energy efficiency measures for sustainable development. Energy
efficiency potential assessment has been attempted to identify the potential
energy efficient measures for the city. Assessment of present street lighting
infrastructure, possibility of replacing them with energy efficient lamps and the
cost analysis also has been done.
Task 03: Priority Actions and Projects
The strategies have further been translated into projects for different sectors.
The projects will be then phased on the basis of demand and stakeholders
priorities.
The Consultant has put stress on the recommendations and reforms to be
undertaken by the Municipal Council for Energy efficiency concepts.
The Consultant has conducted the third workshop to evaluate strategies from
the perspective that will help to achieve vision and sector goals. Consultant has
also formed consensus from the various groups to evaluate the strategies,
programs and project that will come under city development plan for the city.
Task 04: Financial alternatives
The Consultant has made projections under the ideal scenario i.e. with reforms
being implemented. With the implementation of reforms, the extent to which
revenue maximization and expenditure minimization can be possible has been
worked out.
The Consultant has also worked out the cost of projects and has determined
the financial requirements for meeting the demand for infrastructure and
services. The Consultant has determined the phasing to be adopted so that the
financials of the ULB is not burdened while at the same time the objectives of
provision of basic services are met. Consultant has also carried out life cycle
O&M costs and analysed the impacts on finances and of not doing the project.
The Consultant has identified the projects which can be implemented under PPP
model. Various PPP models like BOT, BOOT, BOLT etc. will be explored. The
Consultant has rich experience in working on BOT projects and has come out
with unique models where the State Government funding for the project
becomes very minimal. The possibility of replicating these models in these ULBs
has been explored and other funding options like public borrowing and pool
finance have also been considered. The Consultant has prepared the Capital
Investment Plan and Financial Operating Plan for the ULB.
The consultant has conducted the fourth workshop in Kolar municipal council
with stakeholders and municipal officers. Consultant presented the draft city
development plan of Kolar with city investment plan and financial operating
plan. Discussion held with the stakeholders held during workshop helped to
categorize and further prioritize the capital investment required for Kolar. Hon.
Chief Officer, Kolar municipal council addressed the stakeholders regarding the
purpose of the workshop and insisted suggestions required for city development
plan of Kolar.
Details regarding all the stakeholder workshops are discussed in the Annexure.
2 Town Profile
Kolar is a town and Municipal Council in Bhopal district in the Indian state of
Madhya Pradesh. Kolar, popularly known as Satellite town of Bhopal is located
at 2310 North latitude and 7725 east longitudes.
2.1 Profile of the town
Kolar town is located at a distance of 15 kms from Bhopal City- the city of
lakes. Kolar is very well-known for large influx of migrant workers from the
adjoining regions and from adjoining states creating uncontrollable
development of Jhuggi Jhopries, slums and unauthorized colonies everywhere.
Kolar Nagar Palika has been formed on 11th November 2006 covering 21
surrounding settlements namely Akbarpur, Chichli, Sankhedi, Salaiya,
Bairagarh Chichali rural, Bairagarh Chichli urban, Hinotiya Alam, Gehun Kheda,
Suhagpur, Inayatpur, Rasuliya Inayatpur, Satgarhi, Doulatpur, Semri Kalan,
Imaliya Zargar, Pipaliya Kesho, Dehri Kalan, Kankariya, Banjari, Damkheda and
Nayapura (Kolar). Kolar Nagar Palika has an area of 5017.61 hectares which
has been divided into 21 municipal wards.
2.2 Regional setting
Kolar is located in Bhopal District is a district of Madhya Pradesh state in central

India. The city of Bhopal serves as its administrative headquarters of this
district.
The district has an area of

Table 2-1: Bhopal District Profile
2,772 km, and a population
Bhopal District Area 2772.40
1,836,784 (2001 census).
sq.km
Bhopal District is bounded Population (Census 1.84 million
by the districts of Guna to 2001)
the north, Vidisha to the Rural Population 0.36 million
northeast, Raisen to the east Urban 1.48 million
and southeast, Sehore to the
southwest and west, and Rajgarh to the northwest.
The city of Bhopal lies in the southern part of the district, and the majority of
the population resides within Bhopal municipality. The town of Kolar lies to the
south of Bhopal city.
Being a capital city of state district is the major centre in terms of

administrative headquarters of the state and as a district. City is in and out
P a g e | 10 Darashaw & Company Pvt Ltd.
surrounded by lakes and biodiversity, and is hence Bhopal known as the city of
lakes. In terms of industrial potential, Bharat Heavy Electrical Limited has
provided the major contribution for the district of Bhopal.
Bhopal is a major centre for the agriculture sector with two numbers of
agriculture produce markets which provides the storage for food and fertilizers
in order to supply to the surrounding tehsils and regions.
2.3 Location, Linkages and connectivity
Kolar town is situated on the south of the Bhopal city at 2310 North latitude
and 7725 east longitudes.
Kolar dam lies to the south of Kolar city. The town is bound by agricultural
lands and hilly terrain towards the south. There are some water bodies and
hillocks on the west of the town. Bhopal Itarsi railway line passes near the
town towards the east. National Highway 12 (NH- 12) runs parallel to the
railway line and lies to the east of the town.
Kolar is well connected to the mother city Bhopal by Kolar road network. Bhopal
is a transit point for travel between Indore, Sehore, Hosangabad, Raisen,
Kolar, Vidisha and Sanchi. Two important National Highways NH-12 and NH-86
intersect each other at Bhopal connecting Jaipur, Jabalpur, Dewas and Raisen.
Hence, Kolar due to its close proximity to Bhopal has very good regional road
network connectivity.
Kolar itself has no railway link but is located nearer to two major railway
junctions namely Habibganj at a distance of 7 Kms and Bhopal railway junction
at a distance of 12.5 kms. Bhopal is an important rail junction in Central India,
because of its location almost midway between Bangalore (South), Mumbai
(West), Calcutta (East) and New Delhi (North).
Kolar is located at a distance of 20 Kms from Bhopal Raja Bhoj Airport. It is

located 15 km north-west of Bhopal city on National Highway 12 connecting
Bhopal to Jaipur.
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Figure 2-1: Regional setting and Network Linkages - Kolar
2.4 Municipal area

Kolar Nagar Palika has an area of 5017.61 hectares which has been divided into
21 municipal wards. Kolar Nagar Palika was formed on 11th November 2006
covering 21 surrounding settlements enlisted in table given below.
Table 2-2: Area details for kolar municipal council

Name of the Village added to form Kolar Area in
No. Municipal Council Ha
1 Hinotia Alam 323.58
2 Nayapura 156.93
3 Gehukheda 125.19
4 Suhagpur 179.31
5 Semrikala 189.12
6 Dehrikala 330.42
7 Piplia Kesho 246.77
8 Imliya Jargar 89.90
9 Kakriya 127.78
10 Raduliya Jargar 122.27
11 Inayatpur 137.63
12 Bairagadh Chachali 470.79
13 Satgadhi 645.46
14 Daulatpur 267.63
15 Damkheda 349.19
16 Akbarpur 169.41
17 Chichali 578.77
18 Banjaari 207.61
19 Salaiya 171.30
20 Sankhedi 128.55
Total 5017.61
2.5 Physiographic and Landform

Geology and soil type
The top portions of the hillocks generally consist of hard red soil, mixed with
basaltic boulders. Black cotton soil is seen at various depths from 1 to 3.0m.
The soil in and around is alluvial land. The soil is conducive for agriculture and
is appropriate for Rabi and Kharif crop harvesting.
Climate and Rainfall
Kolar is hot in summer and cool in winter. Maximum average temperature in

summer is 45c & minimum average temperature in winter is 6 - 7C. Summer
nights are mainly cool and pleasant.
Wind Direction
Winds are predominant from the west and southwest during the monsoon. The
presence of the lake creates numerous and varying microclimates.
3 Demography
As per 2001 India census, Kolar had a population of 28375, having male
population of 14856 and female population of 13519. Kolar Municipal council
was formed in 2006 covering 21 surrounding settlements.
3.1 Population Density
The total population Kolar is approximately 99628 as on 2010. The total area is
50.17 sq. km. The population density in Kolar Municipal council is 1906 persons
/ sq km. The detail of ward wise density is discussed below in Chapter 5.
3.2 Population Growth Trend
As Kolar municipal council has been formed recently, the past trend of
population growth is not available for Kolar town. However, census population
of villages, which have been added to form Kolar municipal council, as per
census 2001 have been mentioned in the table given below.
Table 3-1: Population details of Kolar Municipal area 2001.
Settlements in House- Male Female
Kolar Municipal holds Population Populatio Population
area 2001 2001 n 2001 2001
Akbarpur 470 2416 1264 1152
Chichli 63 337 186 151
Sankhedi 62 292 152 140
Salaiya 97 653 351 302
Bairagarh Chichali
rural 221 1406 749 657
Bairagarh Chichli
urban 133 748 385 363
Hinotiya Alam 100 652 356 296
Gehun Kheda 234 1129 605 524
Suhagpur 95 487 258 229
Inayatpur 91 601 306 295
Rasuliya Inayatpur 5 21 11 10
Satgarhi 11 43 23 20
Doulatpur 49 240 118 122
Semri Kalan 107 693 364 329
Imaliya Zargar 30 177 90 87
Pipaliya Kesho 64 317 167 150
Dehri Kalan 23 126 64 62
Settlements in House- Male Female

Kolar Municipal holds Population Populatio Population
area 2001 2001 n 2001 2001
Kankariya 22 139 73 66
Banjari 939 4080 2138 1942
Damkheda 2402 10240 5350 4890
Nayapura (Kolar) 745 3578 1846 1732
Kolar Municipal
area 5963 28375 14856 13519
Source: Census of India 2001 and data obtained from Kolar Municipal Council
3.3 Population Projection
3.3.1 Population projections as per studies and reports
Population projections done in DPR for Solid Waste

Management
Detailed Project Report has been made for Table 3-2 : Population
Solid Waste Management of Kolar Nagar projection- Solid waste - DPR
Palika. According to the projections done by Year Population
the DPR the population of the town in 2015 2015 119554
and 2025 will be 119554 and 149443 2025 149443
respectively. Source : DPR for solid waste
Management, Kolar
Population projections done in
DPR for Comprehensive Water Supply Scheme
Due to absence of past trends the population Table 3-3 : Population

projection for water supply scheme in DPR is projection- Water Supply -DPR
done on basis of current number of voters and Year Population
extrapolation of that number as per the ratio 2025 75000
of voters to the total population in Madhya 2040 110000
Pradesh. Then the population is projected as Source : DPR for solid waste
per the state decadal growth rate. The Management, Kolar
population as per the DPR is as shown in table.
3.3.2 Population Projections done for Kolar City Developed Plan

Since past trends are not available for Kolar Municipal area, the population
projections done in Detailed Project Report for Table 3-4 : Existing Population
Solid Waste Management is considered for base Year Population
year population which is again cross verified
with Voter s list for data authentication. Official 2001 28375
website of Kolar Municipal Council itself 2005 85000
Source : http://mckolar.com/pro.htm
specifies the 2005 population as 85000 which
are shown in Table 3-4.
Total voters in Kolar Municipal area is 46200 in 2009. By assuming 20% of

those whose name is not included in the voter list, the total voters comes
around 55500 which is almost 60 percent1 of the projected 2009 population i.e.
95643. Hence we have considered 2010 base year population as 99,600.
Even though, annual compound rate of growth has decelerated from 2.41% to
2.18% between 1981 and
2001 in Madhya Pradesh, Table 3-5 : Population projection details
it is appropriate to Year Population
Population
consider higher growth as per
rate of 4.2% for Kolar projections Growth rate SWM DPR
Municipal area (nearly 2001 28375 --- 28375
200% due to the factors
2009 --- 95643
like urban agglomeration,
newly carved municipal 2010 99628 15.0 NA
area, availability of land 2015 122382 4.2 119554
etc) up to 2015 and it is
2025 150653 2.1 149443
assumed to get reduced
to half to match the 2035 185453 2.1 NA
current growth rate of Source: Analysis by Consultant team
Madhya Pradesh from
2015 onwards as shown below.
The Population projections arrived here is analogous with the projections done
in Detailed Project Report for Solid Waste Management and hence the same has
been adopted for future planning purposes.
3.4 Issues
After formation of Kolar municipal council there has been considerable
increase in the population, i.e. it has been increased four times since 2001
due to merger of surrounding villages.
Sudden increase in the population of Kolar causes a lot of pressure on
Infrastructure services and reduces the quality of services available.
Large scale migration from Bhopal to Kolar has caused haphazard growth
and planning of towns leading to illegal colonies and development. This has
also resulted in uneven distribution of population density in different wards.

1 Voters population in MP is 64%.
4 Socio-Economic Profile
The socio economic profile of Kolar is discussed as follows. This includes Social
indices and Economic development profile.
4.1 Social Indices
4.1.1 Gender Ratio
Gender ratio in Kolar Municipal Table 4-1: Gender ratio and its comparison
area is much higher than the Populat Population
Bhopal district urban and MP Particulars ion below 06 SC
state urban gender ratio. Male 14856 2384 1658
However, Gender ratio in the Female 13519 2191 1483
case of SC population is lower
Gender ratio in
than the SC gender ratio of Kolar 910 919 894
Bhopal district urban and MP
Gender ratio in
state urban gender ratio as
Bhopal urban
shown in Table 4-1. district 898 928 909
Gender ratio in
4.1.2 Literacy Rate MP state urban 898 907 907
Source : Census of India, 2001
As per census 2001, Literacy Table 4-2: : Literacy levels & comparison
levels in Kolar Municipal area is
lower than Bhopal urban Literacy levels Total Male Female
district and MP state urban Kolar 77.10 84.54 68.91
literacy levels. In Kolar
In Bhopal urban
Municipal area, 77 percent of district 79.59 85.39 73.09
total population (excluding 0-6
In MP state urban 79.39 87.39 70.47
years of age) are literates of
which male accounted for 85 Source : Census of India, 2001
percent and female accounted for 69 percent. Literacy levels in Kolar and its
comparison with state urban and district urban figures are shown in Table 4-2
4.1.3 Average Household Size
As Kolar municipal council was formed after the Census 2001, the household
size estimated from the population of the villages which were agglomerated to
form the Kolar Municipal Council. Average household size is 5 persons per
household estimated after the census 2001 information. The slum household
size is 6 persons per HH as per the information provided by municipal officials.
4.1.4 Social Composition

Table 4-3: Social Composition
As per census 2001, SC
population is about 11 Social % share
percent of the total Composition Male Female Total to total
population whereas ST SC
population comes around Population 1658 1483 3141 11.07
6 percent of the total ST Population 876 828 1704 6.01
population as shown in Others 12322 11208 23530 82.93
Table 4-3. Total
Population 14856 13519 28375 100.00
4.2 Economic Base of the town

The economic activities in the town are mainly agriculture, trade and
commerce. This town provides cheap and affordable housing for workers
working in Bhopal.
4.2.1 Work Force Participation Rate (WFPR)

The work force participation rate in Kolar is 35 percent which is higher than the
Bhopal district urban and MP state urban WFPR as shown in Table 4-4. Further,
its dependency on primary sector is 23 percent of the total work force which is
high compared to district urban and state urban primary sector work force
share. It reflects that kolar even though it has been declared as urban has rural
economic characteristics.
In addition, non workers percentage to total population is low when compared

to Bhopal district urban and state urban non workers share to total population.
Table 4-4: WFPR and its comparison 2001

Household Total Non
Area Indicator Primary Others
Industry workers workers
Kolar 22.6 1.0 76.4
Bhopal urban % to total 1.8 2.2 96.0
district workers
In MP urban 11.6 6.6 81.8
Kolar 7.8 0.3 26.4 34.6 65.4
Bhopal urban % to total
0.5 0.7 28.4 29.6 70.4
district population
In MP urban 3.6 2.0 25.1 30.6 69.4
4.2.2 Occupational pattern

Out Of the total workforce, around 78.99% of workers are main workers and
21.01% are marginal workers. The majority of main workers are involved in
tertiary sector. The classification of workers as per census 2001 is as below:
Table 4-5: Classification of Workers - 2001
(2001 % to total % to total
census) workers Population
Primary sector 1460 14.87 5.15
Main Secondary sector 79 0.80 0.28
workers Tertiary sector 6216 63.31 21.91
Total main workers 7755 78.99 27.33
Marginal workers 2063 21.01 7.27
Total workers 9818 100.00 34.60
Non workers 18557 65.40
Source: Census of India, 2001
4.2.3 Industrial Activities

Town has no major industries within its vicinity however there are industrial
units in nearby Mandideep which provides direct and indirect employment to
Kolar and Bhopal residents.
4.2.4 Trade and Commerce

For trade and commerce, Kolar city is largely dependent on the capital city of
Bhopal. As it is only 10 km away from Bhopal, large number of daily commuters
depends upon the capital city for employment. Bhopal being an capital city and
district centre has two number of agriculture produce markets which provides
the storage and distribution of grains and fertilizers to the surrounding region.
4.2.5 Tourism
Kolar itself has no tourist destinations whereas it has some tourist spots in its
proximity.
Table 4-6 Tourist spots around Kolar
Place Distance from Specialty
Municipality
The Upper Lake 15 Km The city of lakes
Kerwa Dam 5 km Picturesque picnic spot
Sanchi stupa 74 Km Buddhist Monuments
Bhojpur 26 Km Remains of magnificent Shiva Temple
and Cyclopean dam dated 1010-53
A.D.
Bhimbetka 46 kms A world heritage site exhibiting the
earliest traces of human life in India;
Islam Nagar 21 Kms Chaman Mahal built by an Afghani king
Sanchi Stupa Bhopal, The city of Lakes
Bhojpur temple Islam Nagar
4.3 Issues
Town does not have any major industrial activity to support the large
tertiary sector of working population.
Town does not have major tourism places to support economy.
For trade and commerce, Kolar is largely dependent for capital city of
Bhopal. Town lacks the major potential for trade and commerce.
5 Physical Planning & Growth

Management
Kolar is a rapidly growing city situated to the south of Capital city of Bhopal.
Kolar was formed in 2006 and its population is growing at a very fast rate due
to affordable housing it provides as compared to that in Bhopal.
5.1 Spatial growth and Distribution

The total area of Kolar Municipal council is 50.17 sq km, with a population of
95644 as on 2009. The overall density of Kolar Municipal council is 1906
persons/sq. km. The spatial distribution of population is presented in form of
population density and percentage share of population in each ward.
Ward No. 04 has the maximum population density followed by ward No 08 and
ward No 01 In terms of population share, ward No 12 has the maximum
population share followed by ward No 05.
Table 5-1 : Ward wise population details

Area in Population Pop density persons % share
Ward No Sq. Km 2009 / Sq.Km
1 0.16 4921 31068 5.1
2 0.19 4725 25246 4.9
3 0.20 1333 6836 1.4
4 0.08 5080 65053 5.3
5 1.43 9764 6813 10.2
6 0.29 2790 9578 2.9
7 1.14 3526 3096 3.7
8 0.10 5678 54724 5.9
9 0.20 4409 22538 4.6
10 0.99 5680 5747 5.9
11 0.98 3402 3477 3.6
12 0.65 12400 19177 13.0
13 1.03 3375 3264 3.5
14 0.88 3426 3894 3.6
15 0.27 2565 9421 2.7
16 3.17 7040 2223 7.4
17 8.23 2205 268 2.3
18 1.92 5761 3005 6.0
19 1.69 5124 3041 5.4
20 19.96 1357 68 1.4
21 6.63 1083 163 1.1
Total 50.17 95644 1906 100.0
Source: Area computed from Kolar digitized map and ward wise population obtained from Solid
Waste Management Detailed project Report for Kolar Municipal area
5.2 Kolar Ward Delineation Map
The ward delineation map of Kolar is as below
Figure 5-1: Ward wise map of Kolar Municipal area
5.3 Land Usage and Land Use classification
5.3.1 Kolar Master Plan
Kolar Municipal area has no Master Plan (both existing and proposed) as on
today. Kolar comes under the jurisdiction of Bhopal Planning area. Kolar was a
part of Bhopal master plan proposal when the draft master Plan was released
for public comments and objections. However, final Bhopal Master Plan
released recently hasnt included Kolar Municipal area for final proposals. The
landuse map of Bhopal- draft Master Plan prepared by Town and Country
Planning, Bhopal is shown below.
5.4 Illegal Colonies

Due to its close proximity to the Bhopal, the major concern for Kolar is the
large scale of illegal colonies and encroachments. There has been large influx of
migrant workers from the adjoining states creating uncontrollable development
of Jhuggi Jhopries, slums and unauthorized colonies every here and there which
is also creating an alarming situation for M.P. Govt. as well as for the Municipal
Council Kolar from social aspects, to provide civic amenities and rehabilitation
for this population which is the biggest challenge for the future of Kolar. The
Kolar road has been encroached by the shops and residential buildings
throughout the stretch of 3-4 km. However the legal actions have been initiated
by state government by providing the legal notices to remove the
encroachment along the roads.
5.5 Future Growth and Possibilities
5.5.1 Development potentials
Located in close proximity to the capital city, Bhopal makes it easily accessible
and supports the towns economic potential. Further, good access by road, rail
and air is also the major strength and potential of the town. Town has around
50 sq. km area and enough land is still available for future development of the
town. Further, it has Kerwa dam in its close proximity for its water supply
requirements.
The present trend of development of Bhopal city shows that there is a natural
tendency for people to reside towards the southern direction of Bhopal. Hence
Kolar lying to the south of Bhopal has a high development Potential owing to all
the above mentioned factors
5.5.2 Development Constraints
Burgeoning Slums, Health hazard due to absence of proper water supply,

sewerage, sanitation and storm water drains along with Haphazard growth and
unplanned development if not addressed could be the major constraint in the
future for the development of this area.
5.6 City Specific Strategies and Action Plans
Kolar region immediate require the area development plan or provisions

under the Bhopal master plan. Due to its close proximity to Bhopal, it has
been growing haphazardly causing stress on the service provision and
infrastructure.
Area development plans can provide the land use planning and future
requirement accordingly with appropriate residential density. It shall also
include the possible institutional inventions at district and state level for
development of Kolar.
Provision and implementation of development control regulations under the

municipal council region in order to achieve the planned and controlled
development.
To control the haphazard growth, provisions for resettlement and

rehabilitation of slums with land tenure and housing shall be incorporated
for area development plan for Kolar.
6 Physical Infrastructure
6.1 Water Supply
6.1.1 Water Supply System
Town does not have any dedicated water supply scheme initiated as on today.
Water supply for the town is served by borewells and handpumps. The details
of water supply sources, storage and water availability is discussed as below:
6.1.2 Source for Water supply
The source of drinking water supply for Kolar Municipal council is borewells and
handpumps. The entire water supply system is dependent majorly on
groundwater. The ground water source is depleting at faster pace and there is
need to shift to the surface drinking water source. The nearest surface drinking
water source is from Kolar Dam which is 35 km from Kolar.
There are 2 bore wells for drinking and 2041 hand pumps for both drinking and
non drinking purposes. Bore wells are laid in the year 2007 located at a
distance of 2.5 Kms from Nagar Palika office.
6.1.3 Water Supply treatment and distribution
Chlorination treatment method is being adopted by the Municipal council to

treat water in all the storage tanks. Since the town has no main trunk line and
distribution lines, the water from 2 borewells is being supplied with the help of
Tanker Lorries.
6.1.4 Water Distributions Arrangements
Water supply for the town is served by borewell. On an average 8 litres per
capita per day (LPCD) is being supplied by taking into consideration the 2010
population of 99644. The details of water supply sources, storage and water
availability is discussed as below
Table 6-1: Water Supply system in Kolar

Description Details
Source of Water Supply Bore well, Hand pumps and Tanks
Water Supply Agency Kolar municipal Council
Distribution Network in Kms 35 kms
Description regarding Storage Capacity in Lakh Litres
OHT No.01, 02 and 03 2 LL each
Sump (4 Nos) 4 LL
Total Storage Capacity 10 LL
Description regarding Connections
Domestic 481 Nos
Commercial Nil
Total connections 481 Nos
No of mini syntax tanks 246 Nos
No of Hand Pumps 212 Nos
Tube well 9 nos.
6.1.5 Quantity and quality of Water in Distribution System
There are 9 tube wells for drinking and 212 hand pumps for both drinking and
non drinking purposes.
There is huge scarcity of water and some areas are served with the help of Mini
Syntax tanks placed by the Municipal Council. Some of areas are also being
served by tankers.
As of now there is no treatment plant for treatment of water before provision to

the residents. However Chlorination treatment method is being adopted by the
Municipal council to treat water.
6.1.6 Internal Distribution Networks
Sarvadram A & B sector has one ground storage reservoir (GSR) and one
elevated storage reservoir (ESR), which used to supply water to that area with
the help of 305 household service connections. Further, Fine Avenue colony has
one sump which supplied water to the colony through 176 household service
connections.
Colonies like Orchid palace has one GSR and one ESR, Sumitra Parishar has one
GSR and one ESR, Banjara D sector has one GSR and one ESR and Fortune has
one GSR and one GSR used for supplying water to the respective areas.
Remaining areas are served with the help of 246 Mini Syntax tanks placed
mainly in slum areas having varying capacities of 5000 litres (96 Nos), 3000
litres (94 Nos), 2000 litres (4 Nos), 1000 & 5000 litres (21 Nos).
Since the town has no main trunk line and distribution lines, water is being
supplied with the help of Tanker Lorries whose details are listed below:
Table 6-2: Water Supply system in Kolar
S. No Tanker capacity in No of trips per Water source
litres day
1 6000 60 From Inayatpur bore well
2 12000 6 From Inayatpur bore well
3 5000 20 From Private bore well
Source : Data collected from Engineering section, Kolar Nagar Palika
In order to prevent the existing water scarcity, Hand pumps of 2041 nos are
laid all over the municipal area of which 80 percent pumps are in slum areas as
indicated by the municipal officials.
Sarvadram A & B sector has 305 household service connections and Fine
Avenue has 176 household service connections. Rs. 2000 is being charged for
providing a household service connection and a monthly flat rate of Rs.150 is
being charged for each connection.
6.1.7 Comparative Analysis with UDPFI, CPHEEO Guidelines

Following table provides the comparative analysis for water supply project with
CPHEEO and UDPFI guidelines. It also compliances the service level
benchmarking performance indicators provided under the SLB toolkit from
Ministry of Urban Development.
Table 6-3: Performance Indicators
S. Current Normative
Indicators Unit
No Status Standard
1. Daily per capita supply Litres 8 135
2. Roads covered with distribution network Percent Nil > 100
3. Storage capacity with respect to current Percent 125 33
supply
4. Storage capacity with respect to proposed Percent 41.5 33
supply for the next fifteen year period
5. Available Treatment capacity with respect to Percent 0 100
supply
6. Assessments covered by service Percent 2.5 85
connections
7. Proportion of non domestic service Percent 0 >5
connections
Source: Computed based on the data collected from Kolar Municipal Council
6.1.8 Water Supply Projects
In order to address water scarcity problem in Kolar, Water supply scheme

under UIDSSMT has been proposed and the project cost is Rs.36.6796 crore for
the entire scheme.
The water supply scheme has been designed for the horizon year of 2040 for
the population of 1, 10,000. The major components of water supply scheme
proposed are as follows:
Intake well at Inayatpur with capacity of 17.50 MLD
Rapid Gravity Treatment Plant 11.95 MLD
Clear water sumps and pump house including for Treatment Plant
Water supply main (400 mm to 200 mm) from treatment plant to OHT at
Kolar 7.3 km
Feeder mains in Kolar town 95.644 km
Storage tanks 3 OHT with total capacity of 4000 KL.
6.1.9 Present and Future Demand and Supply Gaps

Table 6-4 : Demand assessment for water supply
Particulars 2010-11 2015-16 2025-26 2035-36 2040-41
WATER SUPPLY DEMAND
Water Supply MLD 2010-11 2015-16 2025-26 2035-36 2040-41
Kolar water demand @
135 lpcd for towns less
than 50,000 population
(15% loss considered) 15.47 19.00 23.39 28.79 31.94
Existing and proposed
Supply in MLD 0.80 11.95 11.95 17.50 17.50
Gap 14.7 7.0 11.4 11.3 14.4
135 lpcd is proposed in Water Supply DPR prepared under UIDSSMT for ultimate 2040
pop - 110000
Water Treatment Plant 2010- 2015- 2025- 2035- 2040-
capacity in MLD 11 16 26 36 41
Demand for treatment
plant capacity 15.47 19.00 23.39 28.79 31.94
Treated water supply 0.0 11.95 11.95 11.95 11.95
Gap 15.47 7.05 11.44 16.84 19.99
11.95 MLD WTP is proposed for Intermediate stage in water supply DPR prepared under UIDSSMT
Water Distribution
Network Kms 2010-11 2015-16 2025-26 2035-36 2040-41
Existing and proposed
distribution length in Kms 0.0 95.6 95.6 95.6 95.6
Road length in Kms
(existing and proposed) 179.0 183.6 226.0 278.2 308.6
Gap 179.0 87.9 130.3 182.5 213.0
Per Capita road length of 1.5 meter is considered for road length calculation
95.645 Km distribution length is proposed in Water Supply DPR prepared under UIDSSM
Water Service
connections 2010-11 2015-16 2025-26 2035-36 2040-41
No of Assessments 20000 24568 30243 37229 41306
No of service connections 481 12284 22682 31645 35110
% service connections
existing & proposed 2.4 50.0 75.0 85.0 85
Gap 82.6 35.0 10.0 0.0 0.0
Assessments increased on the basis of Assessment / population ratio
Service connections are proposed to be 85% by 2035-36.
Storage capacity 2010-11 2015-16 2025-26 2035-36 2040-41
Existing & Proposed 1.00 4.96 4.96 4.96 4.96
Storage Capacity in MLD
Storage capacity demand
3.94 3.94 3.94 5.78 5.78
in MLD
Gap in MLD 2.9 -1.0 -1.0 0.8 0.8
3.959 MLD Storage tanks are proposed in Water Supply Scheme prepared under
UIDSSMT
6.1.10 SWOT Analysis- Water supply
Strengths Weaknesses
Kolar dam as the nearest source of Town does not have comprehensive
surface water. water supply system as on today.
Low Per capita supply
Opportunity Threats
DPR for water supply already prepared Tariff revisions may face opposition
Citizens provided willingness to pay after from the citizens after provision of
direct pipeline service made available supply through pipe.
Huge ground water depletion\
Low quality in terms of salt contents
6.1.11 Issues
There is a large scale of demand supply gap, which is likely to widen
drastically in future with respect to increase in population.
Major source of drinking water is the groundwater as entire demand is
compensated through direct supply from bore wells. There is need to shift to
treated surface water supply to control the ground water depletion.
Moreover, to sustain the service level cost recovery is the major challenge
for municipal council.
Per capita supply is low (8 lpcd) against the standard norm of 135 lpcd.
Household Service coverage is low (2.5%).

Town has no distribution network and the water is being supplied with the
help of tanker Lorries.
6.1.12 City Specific Strategies and Action Plans
Goals and Service Outcomes
Considering the above challenges, the following goals for different horizon years
have been identified in the following table. The water supply coverage and
access to piped water supply in Kolar needs to be enhanced to 100% by the
year 2040. The per capita water supply should be maintained at an acceptable
level by increasing hours of supply to 4 hours a day by 2020, and subsequently
achieve 24 hours water supply daily by 2030. There is an urgent need to lower
the Non revenue to 20% by the year 2020, and 15% by the year 2030 and
achieve 100% O&M cost recovery by the year 2020.
Table 6-5: Goals & Service Outcomes for Different Horizon Years
Sr. Horizon Period
Component
No 2020 2030 2040
1 Network Coverage 100% 100% 100%
2 Access to piped water supply 100% 100% 100%
3 Per Capita Supply 135 135 135
4 hours 24 hours 24 hours
4 Hours of Supply
daily daily daily
5 24x7 Water Supply - All wards All wards
As per WHO As per WHO As per WHO
6 Quality of Water
Standards Standards Standards
7 Non Revenue Water 20% 15% 15%
8 O&M Cost Recovery 100% 100% 100%
Strategies and Action Plan
Considering the current challenges and identified goals, a robust strategy for
water supply should be adopted to create a water efficient city in Kolar.
Detailed strategy is furnished below which covers policy level planning, reforms,
institutional strengthening, source augmentation and service delivery aspects.
The following are brief outline of the projects which have to be taken up:
Comprehensive Water Sector Development Plan
To meet the future projected water demand of Kolar, a water supply scheme
has been prepared under UIDSSMT, which has not been implemented yet. KMC
should ensure that the scheme is implemented at a fast pace.
Lowering the connection costs and simplifying the procedure
The connection costs are acting as an entry barriers, especially for the poor to
enter into the water supply system. In addition to that, tedious documentation
process further deteriorates the situation. To enhance the access to piped water
supply system, the connection costs should be reduced and the documentation
procedures should be simplified.
Reducing Unaccounted for water
Leak detection studies, rehabilitation of old pipe lines should be undertaken. By

legitimizing illegal connections, the Council can achieve a reduction in revenue
loss to the extent of 5 10 percent in a short term. At a later stage removal of
public water connections should be encouraged.
Energy Audit Studies
The Council should carry out a detailed energy audit of all the water supply
pumping and distribution system to address the problems associated with
energy.
Water Quality Studies and Monitoring
Presently water quality studies are not undertaken. However it is suggested

that water analysis should be undertaken and upgraded in phases. The Council
should purchase latest equipments to set up laboratories for analysis of
chemicals and heavy metals. In further phase, water quality equipment may be
installed online at storage reservoirs.
Human Resources Development
Widespread investments in the water supply sector without sufficient attention

to human resource development results in poor sustainability of system.
Recognizing the urgent need for capacity building at different levels in water
supply sector, Council should propose to develop human resources in their
organization.
6.2 Sewerage and Sanitation
6.2.1 Existing Sewerage Systems in Kolar
Town does not have underground sewerage system as on today. However there
is sewer network of about 2 Kms within the town which is not integrated.
Recently, Municipal council has laid sewer network of 1 Km covering Fine
Avenue Phase II area, 100 meters connecting Fine Avenue (phase I) to Lalitha
nagar, 100 meters in Alisha Nagar, 100 meters connecting Sarvadram C sector
to Cauvery and 100 meters in Sainath colony. Further, Municipal council has
proposed to lay sewer line in Sourabh nagar for a length of 1 Km. No
connection charges are levied by the council from the users as on today. Town
as on today has no public toilets / Pay & Use toilets.
6.2.2 Means of Sewage disposal
As mentioned in the earlier section, Kolar town does not have underground
drainage system. The current sewage disposal system is through septic tanks
and soaks pits provided within the residential premises. Sewage disposal has
been in open plots in some part of the city. Ultimately the sewage flows
through open channel and disposes into the nallah within the city.
6.2.3 Household Toilets (Dry Latrines and Flush Latrines)
As per the information provided by municipal council there are around 8000
number of properties which have individual household toilets. However in slum
areas there are 2000 number of dwelling units provided with individual toilets
connected to the soak pits.
6.2.4 Public Toilets
There is absence of public toilets and pay-use toilets in Kolar city. The city
requires the public toilets facilities at major areas of public use in Kolar, like
commercial markets, bus stations and other public places.
6.2.5 Comparative Analysis with UDPFI and CPHEEO Guidelines.
The UIDSSMT report for underground sewerage network and treatment has
been prepared as per the CPHEEO manual on sewerage and sewerage
treatment.
As per CPHEEO manual and UDPFI guidelines wastewater generation is
assumed as 80% of the water supply rate i.e. 108 lpcd has been adopted.
UDPFI guidelines suggest small and medium towns may encouraged to for
adopting low cost sanitation technologies with technical assistance from urban
local bodies and involvement of NGOs in actual implementation of such
programmes. Low cost sanitation projects can be encouraged the Kolar as there
is no underground sewerage network and the town has the discrete settlement.
In that context city investment plan has made provisions for sewerage network
and low cost sanitation.
Table 6-6: Performance Indicators- Sewerage system
Sr.No Performance Indicator Benchmark Status

1 Coverage of Toilets 100% 50%
2 Coverage of Sewerage Network 100% 0%
3 Collection Efficiency of Sewerage Network 100% 0%
4 Adequacy of Sewage Treatment Capacity 100% 0%
5 Quality of Sewage Treatment 100% NA
6 Extent of Reuse and Recycling of Sewage 20% 0%
Extent of Cost Recovery in Wastewater
7 Management 100% NA
8 Efficiency in redressal of Customer Complaints 80% ND
Efficiency in Collection of Sewage Water
9 Charges 90% NA
6.2.6 Sanitation Projects

The Kolar Municipal council has submitted the UIDSSMT report to state level
nodal agency for providing and laying of sewerage system. The total estimated
cost of the project was Rs.772.52 Lacs for the design year 2037-38. As per the
information from municipal officials, the approval is pending from the central
government.
Proposed project will enable Municipal council to collect the sewerage and storm
water otherwise flowing on the surface and carry it to a suitable place for
providing desired treatment before wastewater being finally disposed off to
river. The design period of the project is of 30 years. Aerated lagoon has been
provided for treatment of sewage. Salient features of the proposals are as
follows:
Provision of sewer lines of diameters ranging from 150 mm to 600 mm as per
IS 1536-1989
Civil structures like manholes
Construction of aerated lagoon for 16.875 MLD capacity.
6.2.7 Present and Future Demand Supply Gaps
Following table provides the present and Future Demand Supply Gaps for
sewerage sector in Kolar. As there is complete absence of Underground Sewer
Network, Kolar city requires immediate actions on the provision of sewerage
and sanitation facility.
Table 6-7: Demand Supply Gap - Sewerage system
SEWERAGE DEMAND
Sewage generation 2010-11 2015-16 2025-26 2035-36 2040-41
Kolar sewage generation 12.4 15.2 18.7 23.0 25.6
Kolar proposed Sewage
Collection 0.0 0.0 0.0 0.0 0.0
Gap 12.4 15.2 18.7 23.0 25.6
STP capacity in MLD 2010-11 2015-16 2025-26 2035-36 2040-41

Capacity of treatment plant
demand 0.0 0.0 0.0 0.0 0.0
Gap 12.4 15.2 18.7 23.0 25.6
Sewer connections 2010-11 2015-16 2025-26 2035-36 2040-41
Proposed connections under
UGSS 0 0 0 0 0
Demand for sewer connections 14000 17197 21170 26060 28914
Gap 14000.0 17197.5 21170.2 26060.4 28914.1
Sewer Network in Kms 2010-11 2015-16 2025-26 2035-36 2040-41
Sewer Network in Kms
(Proposed) 0.0 0.0 0.0 0.0 0.0
Sewer Network Demand 179.0 183.6 226.0 278.2 308.6
Gap 179.0 183.6 226.0 278.2 308.6
6.2.8 SWOT Analysis

Weaknesses
Strengths
There is complete absence of
Kolar has good natural slope
sewerage system.
Land available for sewage
There is no treatment plant for
treatment plant
treating the sewerage generated.
Many household covered under
Absence of public toilet facility in
individual toilets
entire town
Low public awareness within
citizens
Existing sewer lines drain sewage
into the nearby nallahs without
treatment.
Opportunity Threats
DPR for waste water services Health hazards due to open
already prepared drainage and sanitation services
Funds from state government can Ground water contamination owing
be made available for provision of to high density of septic tanks
public toilets and services in slums.
Introduction of sewer charge
services.
6.2.9 Issues
There is absence of hygienic and safe method of sewerage disposal in the
town.
The major mode of disposal is septic tanks which is a cause of concern due
to the potential threat it poses for polluting the groundwater.
Groundwater contamination is a potential threat which will also affect the

drinking water quality as the entire water supply system as on date is
dependent on ground water sources.
Existing sewer lines drain sewage into the nearby nallahs without
treatment.
Town lacks public conveniences / sanitation facilities.
The service level cost recovery is going to be the major challenge for
municipal council.
Wide spread practice of open defecation.
Considering the above challenges, the following goals for different horizon years
have been identified. The sewerage coverage and access in Kolar needs to be
enhanced to 80% by the year 2020, and 100% by the year 2030. By the year
2020, 100% of the wastewater should be treated. In addition to that, 100%
O&M cost recovery is achieved by the year 2020.
To enhance the coverage of safe sanitation facilities, following goals have been
identified for different horizon years.
Sr. Horizon Period
Component
No. 2020 2030 2040
1 Network Coverage (Access) 80% 100% 100%
2 Treatment and Disposal 100% 100% 100%
3 Recycle and Reuse - 100% 100%
4 Recovery of O&M Costs 100% 100% 100%
Public convenience facilities
5 75% 90% 100%
coverage
Strategies and Action plan
Considering the current challenges and identified goals, a robust strategy for
sewerage is adopted to achieve 100% sewerage system. The following are brief
outline of the projects which have to be taken up:
Comprehensive Sewerage Master Plan
To meet the current gap and future requirements for Kolar it is proposed to
carry out studies and prepare a comprehensive Sewerage Master Plan.
Sewerage Quality Studies and Monitoring
The Sewerage quality analysis needs to be undertaken. It is proposed to

purchase latest equipments to establish laboratories for analysis of chemicals
and heavy metals.
Human Resources Development
Widespread investments in the sewerage sector without sufficient attention to

human resource development results in poor sustainability of system.
Recognizing the urgent need for capacity building at different levels in sewerage
sector, it is proposed to develop human resources in their organization.
6.3 Solid Waste Management
6.3.1 Quantity of Waste Generated
Kolar town generates around 29.48 Metric ton of Garbage per day at the rate of
291 grams per capita per day (as per 2010 population of 99600).
6.3.2 Constituents of Municipal Waste
There is no information available on the constituents of municipal solid waste as

such from Kolar municipal council. But after the discussion with municipal
officials and their perception, the organic waste constitutes about 60% as Kolar
being the major residential area, 20% plastic and 20% for other unidentified
solid waste.
6.3.3 Primary and secondary collection

Waste is being collected in all the 21 wards but none of these wards have Door-
Door collection and Waste segregation practices. Road side bins of 74 Nos have
been placed all over the town, each having the capacity of around 3.5 ton for
waste collection.
6.3.4 Waste Storage and Segregation
As a part of collection system, 35 pushcarts and 3 cycle rikshaws are engaged

in primary waste collection. Kolar Municipal council has temporary staff
strength of 2 sanitary inspector, 4 Darogha, 12 head Sweepers and 126
conservancy workers, involved in road sweeping and Soild waste collection. 12
members are involved in waste transportation and disposal which includes 3
drivers and 9 conservancy workers.
In addition, 1 supervisior and 16 workers are temporarily engaged by the Kolar

Municipal Council for Sewer cleaning.
6.3.5 Processing and Disposal

Three tractor trailers are in operation for secondary waste collection system
and disposal, each makes 3 trips a day. Kolar has disposal site at a distance of
5 Kms from Kolar CMO office. Currently, the disposal site has no treatment
facilities and the waste is being dumped without treatment.
6.3.6 Reuse and Recycle

As of now there is no reuse and recycling practice from Kolar municipal council.
6.3.7 Vehicles for solid waste collection and Transportation

35 pushcarts and 3 cycle rickshaws are engaged in primary waste collection.
Three tractor trailors are in operation for secondary waste collection system
and disposal.
6.3.8 Estimation of Waste Collection
Current estimation of solid waste collection has been mentioned below after
considering the 0.4 adjustment factor for number of tractor trailer trips.
Table 6-9: Vehicles deployed for Secondary waste collection & disposal
Capacity after 0.4 Volumetric
Vehicle type Number Trips
adjustment factor capacity in Ton
Tractor trailer 3 6 0.8 14.4
Total waste disposed on open land 14.4
Source : Kolar Municipal Council
6.3.9 Comparative analysis with UDPFI guidelines

Following table provides the comparative analysis with UDPFI and CPHEEO
guidelines
Table 6-10 Performance Indicators
Current Normative
Indicators Unit
Status Standard
Waste generation per Capita per day Grams 291 350-450
Collection efficiency Percent 50 100
Door to Door collection efficiency Percent Nil 100
Conservancy staff per Km (including temporary Persons 1 2
workers)
% capacity of Fleet vehicles to waste generated Percent 8.2
Source: computed based on the data collected from Kolar Municipality

Following table provides the information on the estimation of waste collection,
in terms of number of solid waste container required, on the certain norms on
the composition of the solid waste and collection practices.
Table 6-11 Demand supply gap for solid waste management

S. Description of 2010- 2015- 2025- 2040-
Norms 2035-36
No Parameters 11 16 26 41
1 MSW generation 29 38.6 52.4 71.2 87.3
Projection in all
Residential
Households(TPD)
2 50% by 14.5 19.3 26.2 35.6 43.65
Biodegradable content weight of
composition (TPD) total
MSW
3 35% by 10.15 13.51 18.34 24.92 30.55
Non Biodegradable
weight of 5
(Recyclable,
total
Recoverable, for RDF
MSW
etc)(TPD)
gen/day
4 Bulk density of MSW 0.4 T/ m3 0.4 0.4 0.4 0.4 0.4
(T/m3)
5 Storage volume for TPD/Den 36 48 66 89 109
Biodegradable waste sity
(m3)
6 50% additional storage 50% 18 24 33 45 55

volume to avoid
spillage(m3)
Total Biodegradable
54 72 98 134 164
storage volume(m3)
7 Requirement of 1100
liters HDPE R.C wheely
bin containers
Storage
For Storage Volume Volume/
49 66 89 121 149
(Nos) Bin
Capacity
Spare at (Nos) 10% 5 7 9 12 15
Total Bins (1100 ltr) 54 73 98 133 164
8 With Bulk density of 0.4 TPD/Den
T/m3 Storage volume for sity
25 34 46 62 76
Non Biodegradable
waste(m3)
9 50% additional storage 50%
volume to avoid 13 17 23 31 38
spillage(m3)
Total Non
Biodegradable MSW 38 51 69 93 115
volume(m3)
S. Description of 2010- 2015- 2025- 2040-

Norms 2035-36
No Parameters 11 16 26 41
10 Requirement of 660 liters
HDPE R.C wheely bin
containers
Storage
For Storage Volume Volume/
58 77 104 142 174
(Nos) Bin
Capacity
Spare at (Nos) 10% 6 8 10 14 17
Total Bins (660 ltr) (Nos) 63 84 115 156 191
Requirement of wheely bin R.C containers for storing waste collected from HTH from
residential House hold
1100 liters capacity (Nos): Say 60 80 100 140 170
660 liters capacity (Nos): Say 70 90 120 160 200
Following table provides the future demand and supply gaps for municipal solid
waste management. Per capita grams solid waste generated has been
increased by 2% per year with 2010-11 as base year. Along with it the number
of pushcarts and sweepers required for municipal solid waste has been
estimated with consideration of certain norms and standards.
Table 6-12 Demand supply gap for solid waste management equipments
S. Description of 2010- 2015 2025- 2035- 2040-

Norms
No Parameters 11 -16 26 36 41
Per capita waste in Growth rate
1 291 315 348 384 424
grams per day assumed is
Kolar waste generation 2% per
2 29.0 38.6 52.4 71.2 87.3
in MT year
Total Length of
3 179 183 226 278 308
Roads(Km)
Road length to be swept
179 183 226 278 308
manually(Km)
Daily sweeping of 60%
108 111 136 167 185
length of road (Km)
4
Alternate day 20%
36 37 45 56 62
sweeping (Km)
Once a week sweeping 20%
36 37 45 56 62
(Km)
Sweepers Requirement 1 per 750
at average of 1/ 750 running
running mt length / day Meter
on both sides sweeping
5 Daily(Nos): 216 Km 144 148 182 223 247
Alternate day(Nos): 72 Km or
36 Km/daily 24 25 30 38 42
Weekly(Nos): 72 Km or
7 8 9 11 12
12 Km/daily
S. Description of 2010- 2015 2025- 2035- 2040-

Norms
No Parameters 11 -16 26 36 41
Sweepers Requirement
6 for Street sweeping 175 181 221 272 301
(Nos)
Push carts at 1 for gang
7 of 2 workers(Nos) 88 91 111 136 151
Existing number of
8 35 35 35 35 35
pushcarts
9 Gap of pushcarts 53 56 76 101 116
10 Spare at (Nos) 10% 9 9 11 14 15
Total no of pushcarts requirement for
62 65 87 115 131
street sweeping(Nos)
6.3.11 Proposed Scheme of Solid Waste Management
Solid waste management DPR has been prepared by Kolar Nagar palika which
outlines the current situation regarding solid waste collection and disposal and
the future proposal. The proposal for Solid waste management of Kolar town
has been proposed at the project cost of 2.75 crores. The major components of
project as per the DPR are summarized as below:
It is proposed that the entire city will have segregation of solid waste at source,
door to door collection of Solid waste generated, transportation and disposal at
landfill site. There will be segregation centres for segregation of waste and
treatment.
Vehicles for transportation of solid waste 25 cycle rickshaw, 150 hand
carts, 16 LMV, 2 container carrier with tractor, and 3 JCBs.
200 solid waste containers and 1 weigh bridge.
Development of landfill site
Development of segregation centre
6.3.12 SWOT Analysis
Strong citizens desire for Kolar to Town does not have door to door
be a clean city collection system
Sufficient labour available to No segregation at source
handle the MSW of Kolar
Council does not in compliance
with MSW handling rules, 2000.
Opportunity Threats
Scope of PPP in terms of collection, Lack of public awareness for use of
transportation and disposal of waste. polythene.
Health hazards due to negligence
for cleanliness
Availability of land for treatment
and disposal
6.3.13 Issues
Town has not adopted Door-Door Collection and Waste Segregation system
Town has no waste treatment plant.
Town has inadequate vehicle capacity for transporting the waste to the
disposal site.
Collection efficiency is low.
Town has staff inadequacy and most of the conservancy workers are
temporary workers
The local body should effectively involve the private sector in delivering the
solid waste management service. The rationale for private sector participation
includes attracting project funding, new technology, cost savings and service
delivery improvements.
Sr. Horizon Period
Component
No. 2020 2030 2040
1 Door to Door Collection 100% 100% 100%
2 Source Segregation 100% 100% 100%
3 Secondary Collection 100% 100% 100%
4 Treatment & Disposal 100% 100% 100%
5 Cost Recovery Mechanism 100% 100% 100%
6 Private Sector Participation Partial Full Full
In order to achieve above outcomes, and to address above discussed

deficiencies in each of the solid waste management component have been
identified and the strategies for improvement both in physical and financial
terms are elaborated in the following sections.
Storage of Waste at Source
Highest priority has to be accorded for Segregation & Storage at source

irrespective of the area of generation so as to facilitate an organized and
environmentally acceptable waste collection, processing and disposal. Source
segregation of Recyclables and biodegradable (organic waste) will not only
provide an efficient way for resource recovery, but will also substantially reduce
the pressure and pollution in Landfill sites.
Collection Deficiencies
The following measures have been recommended for improving the primary
collection practices of Kolar.
Phased implementation of Door to Door collection System through
community organizations by mobilizing, facilitating, organizing and
supporting community activities with the help of local NGOs.
Installation of Community Storage Bins in areas where house-house
collection cannot be implemented.
Expanding the Voluntary Garbage Disposal Scheme for more number of
restaurants/hotels and commercial establishments.
Placement of dumper containers sufficient in number at markets for
ensuring that all the vendors place the waste in the containers.
Persuading the hospitals / clinics to be part of the existing bio-medical
waste management facility in the suburbs of the city.
It is recommended to collect Non-bio degradable waste separately from

premises where door-to-door / kerb side collections are organized. Primary
Collection system should be initiated by introducing Multi-bin carts (Push carts /
Tricycles), semi mechanized systems like refuse collectors. Separate collection
vehicles should collect the non-biodegradable waste stored in separate bin.
Secondary waste Collection & Transportation
Key information on vehicle movement and deployment is not clearly monitored

by ULBs. In view of the criticality of this information in assessing the collection
and disposal efficiency of the local body, it is recommended that a standard
register at the disposal site and transfer station be maintained. The register
should contain information on each of the vehicle trips at both the locations and
the origin of waste collection. A summary of this information would be prepared
at the end of the day, to be verified by the health officer. In order to address
the collection gap, it is recommend procuring new vehicles, loaders and placers.
Processing & Disposal
The characteristics and quantity of solid waste generated in the city primarily
influence the disposal options. Considering these aspects, it is recommended to
develop a landfill site for safe disposal of solid waste of Kolar. The disposal
strategies for Kolar will be to:
Compost the organic fraction of the waste

Sanitary land filling of inorganic fraction of waste and the compost rejects
Encouraging local level aerobic vermi composting
Educating the community on 4R strategy (Reduce, Reuse. Recycle and
Recover)
The capital investment for the proposed interventions is presented in the
investment plan.
6.4 Storm Water Drainage
6.4.1 Existing Drainage System

Downstream channel from Kaliyasot dam traverse through the town is the
major drainage channel helps in draining the town during rainy season. In
addition, Storm water also gets drained with the help of Abbas Nagar Nallah
and Akbarpur nallah. To prevent water logging problems, Municipal council has
constructed 130 meter RCC drain in Salaiya gram village, 150 meter RCC lining
along Mandagini channel.
Further, Council has proposed 300 meter RCC drain in Gram Hinothiya and has
plans to construct additional 200 meter lining work along Mandagini channel.
6.4.2 Major Water Bodies
There are two nallahs flowing through the city Abbas Nagar Nallah and
Akbarpur nallah. Apart from these two nallah there are no major water bodies.
6.4.3 Primary, Secondary and Tertiary Drains
The Abbas nagar nallah, Akbarpur nallah and Kalyasot dam channel flowing
through the town acts as a primary drains. The water from secondary and
tertiary drains throughout the town is disposed off in these nallahs. The
secondary and tertiary drains are majorly kutcha drains collecting the waste
water from houses and disposing to primary drain and water bodies.
6.4.4 Flood prone areas
There are no flood prone areas as such in Kolar region as downstream channel
from Kaliyasot dam traverse through the town is the major drainage channel
helps in draining the town during rainy season.
6.4.5 Flooding in catchments of major nallah
As per the information provided by municipal officials, no major flooding is

observed since past 15 years in any catchment area of nallahs.
6.4.6 Comparative Analysis with UDPFI, CPHEEO Guidelines
There are no guidelines for comparison storm water drainage but the
estimations have been made on the basis of certain thumb rules and experience
of the other cities.
Table 6-14 : Comparative guidelines for storm water drainage
Indicator Benchmark Status

Coverage of Storm Water Drainage 100% Nil
Network
Incidence of water logging/ flooding Zero Zero
6.4.7 SWOT Analysis
No flood prone areas in the Primary drains contaminating the
city storm water collected through natural
drainage system.
Natural slope towards nallah
Disposal of solid waste into the nallah
Opportunity Threats
Scope for reuse and recycle of Health hazards due to negligence for
storm water drainage and its cleanliness
usage for water recharge of
Lack of public awareness for use of
existing lakes
polythene and its disposal in drains.
Availability of land for treatment and
disposal
6.4.8 Issues
Entire waste water has been flowing along with the primary drains through
major nallahs thereby contaminating the storm water collected through
natural drainage system.
Disposal of solid waste in major nallahs causing the water logging and
pollution of water.
There is no recycle or reuse of storm water drainage for agriculture or other
purpose
6.4.9 City Specific Strategies and action plan
Goals and service outcomes
To enhance the coverage of storm water drains, following goals have been
identified for different horizon years.
Horizon Period
Sr. No. Component
2020 2030 2040
1 Network Coverage (Access) 50% 75% 100%
2 Recycle and Reuse - 100% 100%
3 Recovery of O&M Costs 100% 100% 100%
Strategies
Primary Drain Rehabilitation and Improvement Program

The drains are inadequate to handle the flash floods as they are not
systematically designed and are not fully constructed in some sections. A
significant reduction in depth and width are noticed due to situation and
encroachment of drain bunds. To alleviate these, a rehabilitation and
improvement program is recommended. The program would aim at the
following:
Improvement measures such as widening and deepening and construction
of Sidewalls
Construction of side walls to confirm to uniform cross-section in built up
areas
Diversion of drains at critical sections
Construction of cross- drainage works
Conservation of Water Bodies
As discussed, conservation of water bodies is an immediate priority for Kolar.

Though initiatives are being undertaken, a large-scale program is pertinent to
restore the water bodies to their original shape and conserve them as recharge
structures.
Protection of Environmental Resources
The first and foremost intervention is the protection of environmental

resources. Protection of water bodies, waterways and open spaces from further
encroachments would be carried out in a co-ordinated way.
6.5 Traffic and Transportation
6.5.1 Existing traffic and transportation scenario
Being the close proximity to Bhopal, the major traffic and congested road is the
Kolar Road which is encroached by commercial and residential properties. Apart
from main road (Kolar Road) there no major traffic in the Kolar town. Most of
the traffic is towards Bhopal with para-transit and personal vehicle mode of
transportation.
Encroachment on Kolar Road:
Kolar municipal council has carried out survey in order the estimate the
encroached properties along the Kolar Road. The actual Right of Way (ROW) is
150 ft. Kolar Municipal council has done survey for 65ft right and 85 ft to the
left from centre line of the road. The estimated numbers of encroachments are
140 Nos identified during the survey.
6.5.2 Agencies in traffic and transportation
The traffic system is regulated under the Bhopal district office of Madhya
Pradesh Transport Department. The inter city public transport system is
operated by private operators as there is no bus stand provision in Kolar.
6.5.3 Travel Characteristic
Kolar is well connected to the mother city Bhopal by Kolar road network. Bhopal
is a transit point for travel between Indore, Sehore, Hosangabad, Raisen, Kolar,
Vidisha and Sanchi. Two important National Highways NH-12 and NH-86
intersect each other at Bhopal connecting Jaipur, Jabalpur, Dewas and Raisen.
Hence, Kolar due to its close proximity to Bhopal has very good regional road
network connectivity.
Kolar itself has no railway link but is located nearer to two major railway
junctions namely Habibganj at a distance of 7 Kms and Bhopal railway junction
at a distance of 12.5 kms. Bhopal is an important rail junction in Central India,
because of its location almost midway between Bangalore (South), Mumbai
(West), Calcutta (East) and New Delhi (North).
Kolar is located at a distance of 20 Kms from Bhopal Raja Bhoj Airport. It is

located 15 km north-west of Bhopal city on National Highway 12 connecting
Bhopal to Jaipur.
6.5.4 Public Transport
Kolar is connected with Capital City, Bhopal by Mini buses and by local public
transport buses but its frequency is quite low. Other than Mini buses, it is
connected to Bhopal by para-transit systems. For Regional connectivity, it
depends on Bhopal for all three modes of transport system (Bus, Rail and Air).
However, the town requires more public transportation since the population is
growing so haphazardly and rapidly.
6.5.5 Bus Stand infrastructure

Kolar has no bus stand infrastructure and it does not have any bus shelters on
the kolar road.
6.5.6 Traffic Management and Circulation
City level road network
The total road Length within Kolar Municipal area is 187.32 Km. Out of 187.32
km road length, 8.124 km is a kutcha pathway. In addition, 6.867 Km Kolar
road passes through the town maintained by State Highways. Ward wise Road
length and its indicators are shown below. Overall, Kolar has per capita road
length (1.96 meters) more than the prescribed norm of 1.5 meters. Further,
the town has insufficient road density i.e. 3.7 Km per Sq. Km.
Table 6-16 : Ward wise road details in Kolar Municipal area
Road length Area in Road length Population Per Capita Road

Ward No in KM Sq.Km per Sq.Km 2009 length in meters
1 1.62 0.16 10.2 4921 0.33
2 3.82 0.19 20.4 4725 0.81
3 1.53 0.20 7.8 1333 1.15
4 0.83 0.08 10.6 5080 0.16
5 6.26 1.43 4.4 9764 0.64
6 1.21 0.29 4.1 2790 0.43
7 6.36 1.14 5.6 3526 1.80
8 4.60 0.10 44.3 5678 0.81
9 4.65 0.20 23.8 4409 1.06
10 9.77 0.99 9.9 5680 1.72
11 19.83 0.98 20.3 3402 5.83
12 11.83 0.65 18.3 12400 0.95
13 5.11 1.03 4.9 3375 1.51
14 3.91 0.88 4.4 3426 1.14
15 7.28 0.27 26.8 2565 2.84
16 33.96 3.17 10.7 7040 4.82
17 18.66 8.23 2.3 2205 8.46
18 29.22 1.92 15.2 5761 5.07
19 10.16 1.69 6.0 5124 1.98
20 6.70 19.96 0.3 1357 4.94
21 0.00 6.63 0.0 1083 0.00
Total 187.32 50.17 3.7 95644 1.96
Kolar road length in Km 6.867
Source: Area and road length computed from Kolar digitized map and ward wise population obtained from
Solid Waste Management Detailed project Report for Kolar Municipal area
6.5.7 Inter City Transport
There is no public inter-city bus transport facility in the city of Kolar. Looking at
the current scenario of occupation pattern there is no immediate need of intra-
city bus transport as such for the Kolar city. But, as daily a large scale of
working population is traveling towards Bhopal, Kolar is in immediate need of
intercity bus transport system, either in assistance with the Bhopal municipal
council or initiated by urban local body itself, in order to provide flexible

transport facility for commuters between Kolar and Bhopal.
6.5.8 Intermediate Public Transport
Kolar city working population depend upon the capital city of Bhopal, hence
there is immediate need to provide effective transport facility from Kolar to
Bhopal in order to reduce the congestion of private vehicles at Kolar Road.
Kolar has no bus stand infrastructure and it has no bus shelters also on the
Kolar road. Kolar is connected with Capital City, Bhopal by Mini buses and by
local public transport buses but its frequency is quite low. Other than Mini
buses, it is connected to Bhopal by para-transit systems. For Regional
connectivity, it depends on Bhopal for all three modes of transport system
(Bus, Rail and Air).
6.5.9 Parking Requirements

There is no provision of parking spaces at major commercial spaces causing
congestion at major junction. The irregular parking is affecting width of major
commercial roads reducing it to the narrow roads for traffic movement.

Following table provides the information of present and future demand and
supply gaps for roads in Kolar city. The road length demand has been
estimated on the bases of 1.5 km of road length per capita.
Table 6-17 : Demand supply gap for roads
Particulars 2010-11 2015-16 2025-26 2035-36 2040-41
Kolar projected
population 99628 122382 150653 185453 205761
Road network in Kms 2010-11 2015-16 2025-26 2035-36 2040-41
Existing road network
in Kms 179.0 179.0 179.0 179.0 179.0
Road length demand in
Kms 179.0 183.6 226.0 278.2 308.6
Gap in Kms 0.0 4.6 47.0 99.2 129.6
6.5.11 Comparative analysis with UDPFI, other guidelines
The demand and supply gap estimated above based on the Indian Road
congress, service level benchmark of urban transport issued from ministry of
urban development Government of India.
Table 6-18 : Comparative guidelines for roads

Norms Current Status
Type of Roads ROW Carriage way ROW Carriage Way
Arterial Road 50-60 m 21 m 30 m 10 m
Sub-Arterial Road 30-40 m 14 m 20-25 m 3-7 m
Collector Street 20-30 m 10.5 m 10 m 3-5 m
Local Street 10-20 m 7.5 m 7-8 m NA
During the visual survey of roads, there is absence of footpaths along the major
roads as UDPFI mentioned that there is need of footpath of at least 1.5 m with
capacity of 800 persons in both directions.
6.5.12 SWOT analysis
Kolar road as major connectivity to Encroachment in Kolar road thereby
the capital cit y of Bhopal narrowing it
Huge potential to develop in terms of Most of the roads are kutcha roads
transport services
Absence of organized para-transit
and public transport facilities
No parking provisions
Opportunity Threats
Development along Kolar road Encroachments along Kolar Road
Intangible benefit for real estate Funds unavailability for road
sector along kolar road construction and maintenance
PPP participation for parking and
public transport services
6.5.13 Issues
Most of the roads are kutcha other than roads in close proximity to Kolar
road.
Town has no Bus stand and bus shelters.
Town has inadequate public transport system
Kolar road connecting Bhopal, the Capital City is narrow and encroached
creating congestion and the road is in bad condition.
Intersections are poor in geometrics.
6.5.14 Key Challenges

Kolar has inadequate public transport system combined with absence of Bus
stand and bus shelters. The Main arterial road of Kolar connecting the capital
city Bhopal, is narrow and encroached creating congestion. Most of the roads
in the town are Kutcha and in bad condition. The road intersections are poor in
geometrics.
Given the complexity of the problem, it is evident that is isolated solutions
directed at one or two facets such as building flyovers, road widening etc., will
at best assuage the problem temporarily but will not be able tackle the problem
comprehensively. Only a multifaceted approach duly integrating land use with
transportation at the planning stage as a long term measure to structurally
integrate this sector with the overall growth of the Urban Area will be able to
give best benefits at least possible cost. It is felt that an overall vision and
strategies for the sector formulated with concerted and sustained campaign
duly addressing issues as under will be able to address transportation related
problems comprehensively.
Goals and service outcomes
To improve the status of Transportation services in the city following goals have
been identified for different horizon years.
Horizon Period
Sr. No. Component
2020 2030 2040
Road network as a % of total
1 10% 15% 15%
area
2 Share of Public Transport 50% 75% 100%
Traffic Management with
3 100% 100% 100%
signal provisions
Sidewalks length to Total 50% of the 75% of the 100% of the
4
road length requirement requirement requirement
25% of the 60% of the 100% of the
5 Effective Parking policies
requirement requirement requirement
25% 50% 70%
6 Road accidents
reduction reduction reduction
Short term measures including immediate trouble shooting actions and

Traffic Management actions such as intersection improvement, signalisation
etc., to be taken up regularly. These measures should be taken up on a
continuous basis as the travel characteristics and loading of different links,
intersections etc., and change very frequently owing to natural growth and
changes in land use.
Medium term action plan aimed at development of transport infrastructure
over a perspective plan period of 5-10 years to bring about coordinated
development among different components. These measures typically will
include various infrastructure projects, which will be directed at network
improvements such as parallel roads, link roads, slip roads, bridges and
Flyovers.
Long-term action plan aimed at development of structure plan for the Urban
Area with Transit as one of the lead components, which will direct the urban
growth so as to bring about a structural fit between transit infrastructure
and Urban Growth. This will also examine a comprehensive multi-modal
public transit system to bring about the most optimal mix of commuting
within the Urban Area and thus providing a sustainable transit solution.
6.6 Streetlighting
6.6.1 Existing Situation of Street Lights

Kolar has 1394 street lights positioned all over the Municipal area in which 1010
lights are 40 W tube lights, 210 lights are 250 W Sodium Vapor lamps and 174
lights are 150 W Sodium Vapor lamps. As a part of energy saving mechanism,
Municipal Council has placed 3 timer switches and nearly 30 tube lights have
electronic chokes. Total 6320 electric poles are in place all over the municipal
area as indicated by the Municipal officials. As discussed earlier the present
status of street lighting can be summarized as in the table.
Table 6-20 : Connected load details.
40 W Tube Lights
Number of lamps 1010 nos
Wattage of each lamp 40 W
Total Load 40400 W
250 W Sodium Vapor Lamps
Number of Lamps 210 nos
Wattage of each Lamp 250 W
Wattage of Ballast 30 W
Total Wattage of 1 lamp 280 W
Total Load 58800 W
Total Load 31320 W
Total Connected Load 130520 W

Demand Assessment for Kolar for current (2010-11), intermediate (2025-26)
and ultimate year (2040-41) period under Street lighting sector has been
worked out and is tabulated below.
Table 6-21 : Demand assessment for Street lighting sector

2010-11 2015-16 2025-26 2040-41
Street Lighting
Kolar existing lights 1394 1394 1394 1394
Road length in Kms 179.0 183.6 226.0 278.2
Street light demand @ 1 light per 30 m 5967 6119 7533 9273
Gap 4573 4725 6139 7879
6.6.3 Comparative Analysis with UDPFI
Following table provides the performance indicators for street lights estimated
on the basis of norms and standards from certain experiences and thumb rules,
as there are no UDPFI guidelines for street lights.
Table 6-22: Performance Indicators regarding Street Lighting
Current Norms
Indicators Unit
status /Standards
Spacing between lamps (including kutcha roads) Meters 128 30
Proportion of tube lights W.R.T to total Percent 73 60
Proportion of high power fixtures W.R.T to total Percent 27 40
Proportion of energy saving light fittings to total Percent 2 100
Source : computed based on the data collected from Kolar Municipal council
6.6.4 SWOT analysis

Huge scope for development in terms
Large spacing of street lights
of street light services
High consumption of light
Lack of street light service
Less staff for street light and fire
fighting services
Opportunity Threats
Energy saving initiatives can be Power thefts through street lights
implemented
Lack of monitoring and
Energy auditing regularization
6.6.5 Issues
Spacing between lights is around 128 meters against the standard spacing
of 30 meters
27% of the existing lights are high power consuming light fittings.
Town has 6320 electric poles but only 1394 poles have light fittings.
Energy Efficiency Initiative
Increasing energy efficiency will assist the ULBs and municipalities in

expanding infrastructure and improving services for public (especially in context
of energy price increases), and shift activities to more sustainable directions. It
generates environmental benefits through reduced emissions of greenhouse
gases and local air pollutants. It also stimulates new services, creating value
and local jobs. Improving energy efficiency both by reducing quantities of
energy consumed and by changing processes, offers a powerful tool for
achieving sustainable development by reducing the need for investment in
energy infrastructure and by cutting fuel costs.
Recommendations for Replacement of Street Lights
Replacement of 1010 40 W Tube light with 8W LED lights or 28 W T5 lights
The table below shows the investment analysis and payback for replacing the
300 nos 40 W tube lights.
Table 6-23 : Investment analysis and payback (40 W tube lights)
Sr. Type of Calculati Tube light LED
No. Fixture on Unit 40 W 8W T5 28W
[A] [B] [C]
Working Hrs/Day/
1 Hours/Day - Fixture 10 10 10
Power KW/Day/
2 Consumption - Fixture 0.4 0.08 0.28
Annual Power KW/Annu
3 Consumption [2] x 365 m /Fixture 146 29.2 102.2
[A]-[B], KW/Annu
4 Power Saving [A]-[C] m/ Fixture 0 116.8 43.8
Total Nos of
5 Fixtures Nos 1010 1010 1010
Total Power KW/
6 Saving [4] x [5] Annum 0 117968 44238
Monetary
7 Saving 3.10x [6] Rs/ Annum 0 365700.8 137137.8
8 Life of Lamp - Years 2.2 12 5
9 Cost of Lamp - Rs/lamp 0 -
Replacement [5] x [9] x
10 Cost 12/ [8] Rs/12 Yrs 0
11 Cost of Fixture - Rs/Fixture 1500 4500 3000
Total Cost of
12 Fixtures [5] x [11] Rs 1515000 4545000 3030000
Maintenance
13 Cost - % 10 0.5 0.5
14 Total [12] x Rs/12 Yrs 151500 22725 15150
Sr. Type of Calculati Tube light LED

Maintenance [13]/ 100
Cost
Maintenance
15 Cost [14]/12 Rs/Yr 12625 1893.75 1262.5
Salvage Value
of HPSV
Fixture @ [12A] x
16 50% 0.5 Rs - 0
[10] +
Net [12] 4546893.
17 Investment [16] Rs 1515000 75 3030000
363807.0
18 Net Saving [7] - [15] Rs/Annum - 5 135875.3
Payback 12 x [17]/
19 Period [18] Month - 149.98 267.60
Source: Analysis by consultants
Replacement of 174 Nos 150 W High Pressure Sodium Vapor with 55 W LED
lights
174 nos 150 W HPSV lamps.
Table 6-24 : investment analysis and payback (150 W HPSV lamps)
HPSV LED
Sr. No. Type of Fixture Calculation Unit 150 W 55 W
[A] [B]
Working Hrs/Day/F
1 Hours/Day - ixture 12 12
Power KW/Day/F
2 Consumption - ixture 1.8 0.66
Annual Power KW/Annu
3 Consumption [2] x 365 m/ Fixture 657 240.9
[A]-[B], [A]- KW/Annu
4 Power Saving [C] m/ Fixture 0 416.1
Total Nos of
5 Fixtures Nos 174 174
Total Power KW/Annu
6 Saving [4] x [5] m 0 72401.4
Monetary Rs/Annu
7 Saving 2.75x [6] m 0 199103.85
8 Life of Lamp - Years 2.2 12
Replacement [5] x [9] x 12/
10 Cost [8] Rs/12 Yrs 0
11 Cost of Fixture - Rs/Fixture 6000 15000
Total Cost of
12 Fixtures [5] x [11] Rs 1044000 2610000
Maintenance
13 Cost - % 10 0.5
HPSV LED
Sr. No. Type of Fixture Calculation Unit 150 W 55 W
Total
Maintenance [12] x [13]/
14 Cost 100 Rs/12 Yrs 104400 13050
Maintenance
15 Cost [14]/12 Rs/Yr 8700 1087.5
Salvage Value
of HPSV Fixture
16 @ 50% [12A] x 0.5 Rs - 0
[10] + [12]
17 Net Investment [16] Rs 1044000 2611087.5
Rs/Annu
18 Net Saving [7] - [15] m - 198016.35
12 x [17]/
19 Payback Period [18] Month - 158.23
Source: Analysis by consultants
lights.
210 nos 250 W HPSV lamps
Table 6-25 : investment analysis and payback (250 W HPSV lamps)
Sr. HPSV LED
No. Type of Fixture Calculation Unit 250W 130 W
[A] [B]
1 Working Hours/Day - Hrs/Day/Fixture 12 12
2 Power Consumption - KW/Day/Fixture 3 1.56
Annual Power KW/Annum/
3 Consumption [2] x 365 Fixture 1095 569.4
KW/Annum /
4 Power Saving [A]-[B], [A]-[C] Fixture 0 525.6
5 Total Nos of Fixtures Nos 210 210
6 Total Power Saving [4] x [5] KW/ Annum 0 110376
7 Monetary Saving 2.75x [6] Rs/ Annum 0 303534
10 Replacement Cost [5] x [9] x 12/ [8] Rs/12 Yrs 630000
12 Total Cost of Fixtures [5] x [11] Rs 1680000 6720000
13 Maintenance Cost - % 10 0.5
Total Maintenance
14 Cost [12] x [13]/ 100 Rs/12 Yrs 168000 33600
15 Maintenance Cost [14]/12 Rs/Yr 14000 2800
Salvage Value of
16 HPSV Fixture @ 50% [12A] x 0.5 Rs - 840000
Sr. HPSV LED

[10] + [12]
17 Net Investment [16] Rs 2310000 5882800
18 Net Saving [7] - [15] Rs/Annum - 300734
19 Payback Period 12 x [17]/ [18] Month - 234.73
From the above recommendations we can achieve a total savings of around
300745 KW per annum and monetary savings of Rs 8, 62,557 per annum.
6.7 Fire fighting services
Kolar municipal council provides the fire services in order to avoid

anthropogenic hazards like fire etc. Two fire tenders have been purchased this
year (2009-10) by Kolar Municipal Council.
6.7.1 Vehicle and Equipments for fire fighting and rescue

operations
Municipal Council has purchased 2 fire tenders (one small and one big) for Rs.
13 lakhs. Other than this, Municipal council has one JCB and one Electric pole
vehicle for debris removal and street light repairing respectively.
6.7.2 Operational Systems
Fire system is in complete operational system to control the anthropogenic

hazard and fire mishap for Kolar Municipal Council. However, the urban local
body requires the training and capacity building to improve the fire operational
system in terms of manpower and management.
7 Socio-Economic Infrastructure
7.1 Health
7.1.1 Health Facilities
There are 7 hospitals and 11 dispensaries in Kolar. The total bed capacity in
Kolar is 210 beds. The capacity of all the hospitals in Kolar and details are
given as below. Kolar has no facilities for specialized healthcare facilities. For
specialized healthcare people have to depend on Bhopal.
Table 7-1 : Existing health Facilities
Sr. no. Name of Hospital Ward No. No of
beds
1 Government Health centre 9 5
2 Anupam Hospital 11 15
3 Mishra Hospital 15 10
4 Harshiddhi hospital 10 40
5 Matruchaya Hospital 2 20
6 J. K. Hospital 10 100
7 Aadhale Netralya and Nursing home 10 20
Total 210
Source: DPR for Solid waste management, Kolar Nagar Palika
Kolar has sufficient health infrastructure facilities to cater present population

whereas it needs to be strengthened to cater the future population demand.
7.1.2 Basic Health Indicators
There is no information available in relation to basic health indicators specific to

Kolar municipal council. Following table provides the health indicators of the
state of Madhya Pradesh.
Table 7-2 : Basic Health Indicators
Health Indicator Details
Number of births per 1000 population in given year 30.2
Number of deaths per 1000 population in given year 9.8
Infant mortality rate 82

7.1.3 Medical Facilities Provided By Municipal Body
There are no medical facilities provided by urban local body as of now. Kolar
municipal council has proposed the hospital at Nayapura but the work has not
been started yet.
7.1.4 Role of Municipal Council in Health Programs
The department of public health and family welfare is responsible for the health
related factors in the state of Madhya Pradesh. This department organizes
several health campaigns initiated by state and central government and
monitors the health indicators of the state. Major role of the municipal council is
to assist the state official in the health campaigning and awareness
programmes launched for the citizens. However, basic health facilities are
provided through district hospital in Bhopal and Public health Centres
administered by Public Health and Family Welfare Department of State
Government. Looking at the development of Kolar and its future growth
prospects, it is important to initiate and strengthen the health facility services
from municipal council itself to provide the effective health services to the
citizens of Kolar.
7.2 Overall Education Facilities and Teachers in Town
Kolar has altogether 42 schools spread over 21 wards. The wardwise

distribution of schools is listed below.
Table 7-3 : Existing health Facilities

Ward No No of Ward No No of Ward No No of
Schools Schools Schools
Ward no 1 2 Ward no 8 2 Ward no 15 4
Total no of Schools - 62
Source: Data compiled from DPR for Solid waste management, Kolar Nagar Palika
Out of 62 Schools, Kolar has one Government High school in Akbarpur and 4
middle schools in Beragadh, Salaiya, Hinothiya Alam and in Semrikala.
Municipal area has 10 primary schools whose locations are listed below.
Sarvadram A sector
Sarvadram B sector
Banjari
Om Nagar
Suhagpur
Pipaliya Kesho
Gram Chichli
Doulatpur
Inayatpur
610 quarters
In addition, Kolar has 3 Madarsas and one Mansarovar College.
7.2.1 Literacy Indicators
As Per census 2001,

Table 7-4: : Literacy levels & comparison
Literacy levels in Kolar
Municipal area is lower than Literacy levels Total Male Female
Bhopal urban district and Kolar 77.10 84.54 68.91
MP state urban literacy
In Bhopal urban district 79.59 85.39 73.09
levels. In Kolar Municipal
area, 77 percent of total In MP state urban 79.39 87.39 70.47
population (excluding 0-6 Source : Census of India, 2001
years of age) are literates of which male accounted for 85 percent and female
accounted for 69 percent. Literacy levels in Kolar and its comparison with state
urban and district urban figures are shown in table.
7.2.2 Education Facilities Provided by Municipal Council
There are no educational facilities provided by Kolar Municipal Council. All the
schools and colleges administered by state education department of Madhya
Pradesh.
7.3 Recreational Facilities
Parks in approved layouts are under implementation in Sarvadram B sector and

in Mandagini colony. Town has one community hall in Akbarpur in ward No. 16
and one market in Lalitha Nagar. New Municipal Office building is proposed in
1.28 hectares in ward No. 18. Kolar has two dams in its proximity but it lacks
recreational facilities like child playgrounds, parks and water fountains etc.
Municipal Council has no Slaughter house, no commercial complexes for

revenue generation, no Cinema halls for entertainment purposes.
7.3.1 Sports Facilities
At present, there are no sports facilities in Kolar town. A sports city is being
constructed by ministry of sports and youth welfare, on 172 acres (0.70 km2)
of land in Satgadhi, near the southern suburb of Kolar, and is expected to get
completed by 2013. The project involves construction of an international cricket
stadium, a tennis complex and an aquatic complex at par international
standards, accompanied by an indoor stadium with facilities for Basketball,

Volleyball, Badminton, Gymnastics etc. as well as outdoor sports fields for
Netball, Volleyball, etc. Administrative Buildings and hostels for players and
coaches will also be constructed.
7.4 Comparative Analysis with UDPFI
7.4.1 Demand and Supply Gaps for Health Facilities
Following table provides the information on the comparative analysis with

UDPFI guidelines and the demand and supply gap for social infrastructure in
Kolar Municipal Council.
Table 7-5: Demand & supply gaps for health facilities
Particulars 2010-11 2015-16 2025-26 2035-36 2040-41
HEALTH INFRASTRUCURE DEMAND
Particulars 2010-11 2015-16 2025-26 2035-36 2040-41
Intermediate hospital demand 1 1 2 2 2
Intermediate hospital existing 1 1 1 1 1
Intermediate hospital Gap 0 0 1 1 1
No of dispensaries required 7 8 10 12 14
No of dispensaries existing 11 11 11 11 11
Dispensaries Gap -4 -3 -1 1 3
No of beds existing 210 210 210 210 210
Bed req. @ 1 per 500 person 199 245 301 371 412
Bed requirements Gap -11 35 91 161 202
7.4.2 Demand and Supply Gaps for Education

Table 7-6: Demand & supply gaps for education facilities
Particulars 2010-11 2015-16 2025-26 2035-36 2040-41
No of primary schools existing 10 10 10 10 10
Demand for primary schools 20 24 30 37 41
Primary School Gap 10 14 20 27 31
Middle school 4 4 4 4 4
Higher Secondary School 1 1 1 1 1
No of higher secondary and
5 5 5 5 5
middle schools existing
Demand for Higher Secondary
13 16 20 25 28
schools
Higher Secondary School Gap 8 11 15 20 23
Existing colleges 1 1 1 1 1
Demand for colleges 1 1 1 1 2
Colleges Gap 0 0 0 0 1
RECREATIONAL FACILITIES DEMAND
Parks in Hectares
Particulars 2010-11 2015-16 2025-26 2035-36 2040-41

Area demand for recreational
139 171 211 260 288
spaces in Hectares
Community Hall existing 1 1 1 1 1
Community hall demand 7 8 10 12 14
Gap 6 7 9 11 13
7.5 SWOT Analysis
Potential to develop as health and Town lacks sufficient number of bed
education centre near to Bhopal capacity in hospitals
Political willingness to develop the Insufficient number of primary and
sport city near to Kolar secondary schools
Inadequate recreational and public
places
Less number of community halls
Absence of tourism facility or picnic
spots
Opportunity Threats
PPP possibility in health and education High cost of health facilities by PPP
sector may hinder health services to poor
State government commitment for Lack of monitoring and
health and education services regularization
Right of children for free and Inadequate implementation capacity
compulsory education act will provide
free education for poor children
Community participation fund for social
development
7.6 Issues
Town has insufficient beds capacity
Town has no Multi-specialty hospital and specialized health care facilities
for which it depends on Bhopal.
Town has insufficient primary and Higher Secondary schools
Existing higher schools are predominantly middle schools which need to be
upgraded.
Town has inadequate recreational spaces like parks and multiplexes
Town has inadequate community gathering halls
Picnic spots like existing two dams are untapped for attracting tourists.
Provision of health facilities in the city:

Primary health centres and basic services like maternal hospital shall be
established in Kolar, as citizens have to depend on health facilities at
Bhopal for these facilities. Also the establishment of special treatment
hospitals under the Municipal council in order to provide additional services
apart from basic health services to the citizens of Kolar. Also there can be
establishment of children hospital to monitor the infant mortality and
morbidity rates.
Establishment of municipal hospital will reduce the burden of the
government hospital in Bhopal there by citizens need not be depend on the
capital city for special treatment facilities.
Initiation of health campaign from municipal council

Municipal council can initiate the different health campaigns throughout the
year and create the public awareness for prevention of diseases especially
during monsoon season.
Education facilities:
There shall be the provision of primary and secondary education facilities
from the Municipal council in order there by increasing the literacy rate of
the city.
Encourage the non governmental organization for education in slum region
in order to provide affordability to slum children.
Literacy campaigning from municipal council:

Municipal council shall initiate the literacy campaigning and spread the
awareness of education especially in the slum region. Municipal council
shall initiate the awareness programmes related to Right to Education
and its importance to all citizens.
Effective funding pattern for Health and Education sector.

Municipal council shall earmark the separate fund allocation for education
and health services for effective administration of the these basic facilities.
Municipal council can levy the health and education charge in order to
provide efficient health and education services.
Urban local body can initiate the Public Private Partnership model for
education and health services with effective private sector participation.
8 Slums and Urban Poverty
8.1 Poverty in Kolar Town and Slum population
Kolar Municipal Council was formed in 2006. So far there is no survey

conducted on the Poverty mapping of the town as well as mapping of the
slums. There is not much information available regarding the slums and Urban
poor in the town. However whatever information is available through
secondary sources and through reconnaissance survey is discussed in following
sections.
8.2 Slums in Kolar

As per the information given by municipal officials there are 13 slum pockets in
Kolar whose details are shown below. However as per the observations of the
Consultants the population of slums in the town is much higher than the below
mentioned.
Table 8-1 : Slums and Slum Population in Kolar
S.No Slums Population
1 Damakheda - A 2356
2 Damakheda - B 570
3 Banskhedi 614
4 Hinotiya Alam 514
5 Gehunkehra 3682
6 OM NAGAR 323
7 Abbas Nagar 760
10 Ambedkar Nagar NA
11 Priyanka Nagar NA
12 Slum no 12 NA
13 Slum no 13 NA
Total 15013
Source: Data collected from officials at Kolar Nagar Palika
8.3 General Characteristics of the Slums

As per Census of India, the slum areas are broadly defined as :-
i. All specified areas in a town or city notified as Slum by State/Local

Government and UT Administration under any Act including a Slum Act.
ii. All areas recognized as Slum by State/Local Government and UT

Administration, Housing and Slum Boards, which may have not been
formally notified as slum under any act;
iii. A compact area of at least 300 persons or about 60-70 households of

poorly built congested tenements, in unhygienic environment usually
with inadequate infrastructure and lacking in proper sanitary and
drinking water facilities.
Following observation are derived from site visits of Slums in Kolar. There is no
secondary information on the slums in Kolar.
8.4 Status of Slums
All the slums mentioned above section are notified slums. However as per the
information provided by municipal officials 20% slums are illegal slums in Kolar.
8.5 Land Ownership and Tenure Status
Land ownership is the major concern for slum regions in the city. There 610
number of quarters resettled in the Abbasnagar, Omnagar, Maskhedi and
Guhukheda regions.
8.6 Urban Basic Services in Slums
There is lack of basic services in the slum region of Kolar. There are 2000 slums
properties are connected through soak pits and septic tanks. The water supply
to the slum region is through tankers only. There are no public toilet facilities in
slum regions. There are 610 new dwelling units settled at various region of
Kolar city.
8.7 Social Security Schemes and Beneficiaries
There are some Social security schemes which are available to citizens of Kolar.
These schemes are related to Pensions for Senior citizens, physically challenged
and widows. Rs 150 per month is available as pension to the pensioners.
8.8 SWOT analysis

Availability of funds for slums Large no. of burgeoning slums
and urban poor causing lack of sanitation service
Resettlement of slums of Bhopal Lack of social security
in Kolar with land tenure
Opportunity Threats
Creating slum free cities through Increasing no. of illegal slums
state and central policies on
Health hazards
urban poverty
Threats to social security due to
illiteracy and unemployment
8.9 Issues
Slums are not yet documented for Housing and Infrastructure status
assessment.
The infrastructure status in slums is very poor and dismal.
Key Challenges
More than half of the population in Kolar living in slums, urban poverty is a
major issue confronting the area. With constantly increasing influx of migrants
the infrastructure facilities in slums is dismal.
Poverty Reduction Strategic Plan
The goals formulated to achieve the vision are:

All poor will have access to qualitative and affordable basic services
100 % literacy
Universal access to primary health care and no one should die of
preventable diseases
Livelihood to all urban poor
Affordable Housing
The strategy formulated for reducing poverty in Kolar area includes:

Community empowerment
Linking livelihoods to citys economy
Development of housing through partnerships PPP
Formulation of Notification and De-notification Policy
Relocation of slums located in hazardous and vulnerable Areas
Provision of basic infrastructure - both physical (water, roads, sanitation
and sewerage) and social infrastructure (clinics, schools, training facilities,
etc).
9 Environmental Status
All living and non living things along with the surrounding atmosphere in an
urban area constitutes urban environment. Ironically, all these three
ingredients in the environment have the ability to cause effect over each other,
even by slight change and process of cycle. Thus the intersection and overlap of
the natural environment, the built and socioeconomic environment constitutes
the urban environment.
9.1 Flora and Fauna
There were no records found regarding the flora and fauna in the region of
Kolar Municipal Council.
9.2 Pollution Level (Air, Water, Soil)
Air Pollution: There were no records found for air pollution level at Municipal
council level and no survey carried for monitoring the air pollution. But it can be
observed that due to increase in vehicles and industrialization the pollution
level is increasing severely. Kolar is hot in summer and cool in winter.
Maximum average temperature in summer is 47 c & minimum average
temperature in winter is 6 c. Summer nights are mainly cool and pleasant.
The average annual rainfall is 1000 mm.
Water pollution: major source of drinking water is from ground water as the
Kolar municipal council is providing the water through tankers to entire city of
Kolar. Hence the ground water is decreasing severely and there is immediate
need to monitor the ground water level of Kolar.
There have been no records found in Kolar municipal council regarding the
water pollution in Kolar.
However as per the study conducted by Madhya Pradesh pollution control

board, Kolar dam water is polluted by man made activities kinds, that is
sewage waters and natural contaminants. Cu, Fe and Mn levels detected are
7.0,0.54 and 0.84 ppm respectively.
Soil Pollution: there were no records found in relation to the soil pollution in
town. Kolar region is predominantly an agriculture region hence excessive use
of fertilizers may contaminate the soil in the region. The geological formations
underlying the Bhopal area are largely red sandstone strata, with the depth of
the rock varying according to the slopes. The top portions of the hillocks
generally consist of hard red soil, mixed with basaltic boulders. Black cotton soil
is seen at various depths from 1 to 3.0 m.
9.3 City Green Spaces
Open spaces are getting reduced due to encroachments and illegal construction
due to the absence of proper planning documents to regulate the growth the
development. Overall, Town has inadequate recreational spaces. There is lack
of monitoring and regularization of green spaces in Kolar City.
9.4 Water Front Development and Conservation
Kolar town has inadequate supply of water in terms of quality and quantities.
Kolar is still dependent on hand pumps and stand posts for drinking water even
though it has sources like Kerwa dam located nearby. Kaliyasot dam once the
source of irrigation up to Laharpur is now contaminated. Hills around this dam
are mostly encroached by slum pockets.
Ground water sources are over exploited in Kolar due to absence of

comprehensive water supply scheme by means of 2041 manual public hand
pumps and private bore wells.
Kaliyasot dam and Shahpura Lake acts as a source for ground water recharge
located nearer to Kolar Municipal area and it should be protected for improving
the ground water recharge and in turn reducing the ground water extraction.
9.5 Urban Environment
9.5.1 Land Use
Town is witnessing haphazard growth due to the absence of proper

development / Master Plan. Kolar in fact comes under the jurisdiction of Bhopal
Planning area. However, Bhopal Master Plan released recently hasnt included
Kolar Municipal area even though Kolar Municipal area was there in the draft
master plan released for public comments and objections.
9.5.2 Anthropogenic hazards
In order to avoid anthropogenic hazards like fire, Municipal Council has

purchased 2 fire tenders (one small and one big) for Rs. 13 lakhs. Other than
this, Municipal council has one JCB and one Electric pole vehicle for debris
removal and street light repairing respectively.
9.5.3 Urban Environment Quality
Access to water
Kolar town has inadequate supply of water in terms of quality and quantities.
Kolar is still dependent on hand pumps and stand posts for drinking water even
though it has sources like Kerwa dam located nearby. Kaliyasot dam once the
source of irrigation up to Laharpur is now contaminated. Hills around this dam
are mostly encroached by slum pockets.
Availability of open spaces
Open spaces are getting reduced due to encroachments and illegal construction
due to the absence of proper planning documents to regulate the growth the
development. Overall, Town has inadequate recreational spaces.
Access to sewerage and sanitation
Kolar has no sewer network. Waste gets disposed either in community septic
tanks or in individual septic tanks. Community Sanitation facilities are
inadequate. Sewer lines laid here and there are ultimately draining the sewage
into the natural drainage channels without treatment causing health hazards.
Waste Management systems
Town has not adopted Door to Door waste collection system and waste
segregation system due to absence of waste treatment plant in the disposal
site. Collection efficiency is just 50% resulting in garbage pileup at the
collection points and road side bins causing environmental pollution.
9.6 Existing Environmental Regulations
Table 9-1 Urban Environment Quality Check

Urban Environment Quality
Parameters Unit Coverage Norm
check
Access to drinking Water Per Capita Supply percent 8 135
Access to sewerage and Assessments having Percent 1 70
Sanitation sewer connections
Waste Management system Door-Door collection Percent Nil 100
efficiency
Waste Management system Waste Segregation Percent Nil 100
efficiency
Waste Management system Treatment plant Percent Nil 100
capacity to waste
generated (organic)
Source: Analysis based on the data collected from Kolar municipal Council.
9.7 SWOT Analysis
No industrial pollution as of now No environmental compliance
system from urban local body
Scenic beauty at Kolar dam hence
potential for tourism development Lack of monitoring system for
pollution control
Low pollution level with respect to
capital city of Bhopal
Good ambient air quality
Opportunity Threats
Clean air and surrounding can provide Lack of public awareness
good potential for developing a livable regarding environment
city management
States policy implementation for Increasing population and
ecotourism in Kolar and surrounding unhygienic practices
region.
9.8 Issues
There is no environmental compliance system at municipal council level
Lack of air, water and soil pollution monitoring causing the health hazards to
the citizens.
Waste management is not as per SWM rules causing pollution.
Inadequate Recreational spaces for citizens of Kolar.
Public health is under threat due to absence of basic infrastructure facilities.

In order to control the environmental pollution, Municipal council shall
initiate the awareness campaigns for plantation and other pollution control
strategies.
Municipal council can set the environmental monitoring kit at major junction
where the vehicle traffic is very high, in order to monitor the air and noise
pollution.
Water pollution can be monitored by conducting regular water quality testing
of ground water samples and the level of the same.
There is need of municipal level policy for urban greening of the town with
review and monitoring provisions.
10 Heritage and Conservation
10.1 Heritage Structures
There are no as such heritage structures under the jurisdiction of Kolar

municipal council. Kolar town is having the famous historical monuments of
archeological importance at Kolar Dam.
10.2 Existing Heritage Regulations
At present there is no state archeological legislation for heritage structure in

the state of Madhya Pradesh. The important heritage structures are directly
under archeological survey of India. However different state authorities have
provided certain provision for heritage structure preservation in the state of
Madhya Pradesh. Town and country planning act- 1973 and Bhumi Vikas Niyam
have provided the legal provisions to protect and preserve the heritage
structures in the state of Madhya Pradesh.
10.3 Heritage Issues
There is need to identify and locate the heritage structure in and around Kolar
region in order to provide potential to the tourism sector of the region.
10.4 Tourism Potential of Kolar
There is no tourism potential in Kolar but only the Kolar dam provides the
tourism attraction to the Kolar region. Apart from Kolar Dam there is no major
tourism potential in the Kolar municipal council jurisdiction.
10.5 Possibility of Tourism Circuits at Regional Level
Kolar itself has no tourist destinations whereas it has some tourist spots in its
proximity.
Table 10-1 Tourist spots around Kolar

S. No. Place Distance from Specialty
Municipality
1 The Upper Lake 15 Km The city of lakes
2 Kerwa Dam 5 km Picturesque picnic spot
3 Sanchi stupa 74 Km Buddhist Monuments
S. No. Place Distance from Specialty

Municipality
4 Bhojpur 26 Km Remains of magnificent Shiva Temple
and Cyclopean dam dated 1010-53
A.D.
5 Bhimbetka 46 kms A world heritage site exhibiting the
earliest traces of human life in India;
6 Islam Nagar 21 Kms Chaman Mahal built by an Afghani
king
Sanchi Stupa Bhopal, The city of Lakes
Bhojpur temple Islam Nagar
10.6 Comparative Analysis with UDPFI Guidelines
There are no comparative guidelines available for tourism and heritage

structure. However, the analysis has been done for the tourism and heritage
structure based on the other cities experiences and certain assumptions.
10.7 SWOT analysis

Close proximity to capital city of Absence of any heritage structure
Bhopal
Lack of infrastructure for tourism
No identification of tourism spots
Opportunity Threats
PPP for tourism Lack of public awareness
regarding tourism potential
States policy implementation for
ecotourism in Kolar and surrounding
region.
10.8 Issues
Town has not identified its heritage and tourism potential.
Kolar town has no support infrastructure provisions for surrounding tourism
place in Bhopal.
10.9 City Specific Strategies and Action Plan

Kolar city can Identify tourism potential in and around the Kolar region and
provide the supporting infrastructure for surrounding tourism regions like
Bhopal.
The Kerwa dam is nearest tourist spot which can be tapped for developing
the tourism potential in the surrounding region.
Kolar itself has no tourist place but being the its close proximity to capital
city of Bhopal, Kolar can provide supporting infrastructure in terms of
Hotels and resorts to the tourists coming in Bhopal.
11 Institutional Framework
Kolar Municipal Council consists of 21 wards and has a 21 member elected

council and a President. The administrative wing is headed by the Chief
Municipal Officer. The total number of permanent staff in Kolar Municipal
Council is only 4.
11.1 Kolar Municipal Council Structure
11.1.1 Organization
The Executive wing is headed by the Chief Municipal Officer. There are seven
departments in Kolar Municipal Council. They are:
Sanitation
Lok Nirman (PWD)
Water Supply Department
Fire Department
Revenue Department
Sanitation Department
Administrative Department
However only there are only four permanent staff in Kolar Municipal Council.
They are:
Chief Municipal Officer
Accounts Officer
Revenue Inspector
Sub Engineer
11.1.2 Staff Strength
Only four positions are filled in Kolar Municipal Council and the Council is in the
process of inducting additional staff on permanent basis. The present staff and
the positions proposed to be filled in the near future are presented below.
Table 11-1: Present Staff Strength

Total sanctioned Filled Vacant
Sr. No. Designation
posts posts posts
A General Administration
1 Chief Municipal Officer 1 1 -
2 Chief Accountant 1 1 -
3 Cashier 1 - 1
Total sanctioned Filled Vacant

Sr. No. Designation
posts posts posts
4 Typist 3 - 3
B Revenue Department
5 Revenue Sub-Inspector 1 1 -
6 Assistant Revenue Inspector 2 - 2
7 Typist 1 - 1
9 Bill Collectors 15 -
C Fire Department
10 Driver 3 - 3
11 Fire Man 3 - 3
12 Line Man 4 - 4
13 Electrician 8 - 8
D Lok Nirman (PWD)
14 Sub Engineer 1 1 -
15 Assistant Engineer 2 2
16 Typist 1 1
17 Time Keeper 2 2
18 Clerk 1 1
E Water Supply Department
19 Water Supply Officer 1 1
20 Pump Operator 7 7
21 Typist 1 1
22 Line Man 6 6
F Sanitation Department
22 Sanitary Inspector 1 - 1
23 Sanitary Worker 4 - 4
24 Sweeper 50 - 50
Source: compiled from data collected from Kolar Municipal Council
Except for the 4 permanent employees all the departments are managed by
temporary workers.
11.1.3 Functions of Various Departments
Kolar Municipal Council has 7 departments. The functions of each of the

departments are presented below:
Water Supply Department
The water supply department is responsible for supply of water to the

residential and non-domestic connections. However about 400 connections are
only provided by the Municipal Council. 99% of the water supply is provided
through water tankers.
Sanitation Department
Kolar Municipal council has temporary staff strength of 2 sanitary inspector, 4

Darogha, 12 head sweepers and 126 conservancy workers, involved in road
sweeping and solid waste collection. 12 temporary workers are involved in
waste transportation and disposal which includes 3 drivers and 9 conservancy
workers. In addition, 1 supervisor and 16 workers are temporarily engaged by
the Kolar Municipal Council for sewer cleaning.
Lok Nirman (PWD) Department
This department is headed by a Sub Engineer. This department is responsible

for undertaking all construction work viz. roads, drainage and buildings.
Revenue Department
This department is headed by a Revenue Sub Inspector. This department is

responsible for collection of taxes, fees, rentals and other revenue of the
Municipal Council. The Revenue Sub Inspector is supported by bill collectors
who are temporary workers.
Fire Department
Responsible for street lighting and fire safety. All the staff of this department
are temporary workers.
General Administration Department
This department is responsible for the miscellaneous day to day administrative

functions in the Municipal Council. The Chief Municipal Officer is the head of
this department and also all other departments. The Accounts wing also falls
under this department. The Accounts wing is responsible for upkeep and
maintenance of all the accounts of the Municipal Council. The Accounts wing is
headed by the Chief Accountant and is assisted by peons who are temporary
workers.
11.2 Institutions Responsible for Service Delivery
The Municipal Council is responsible for planning and design, construction and
operation and maintenance of all infrastructure services viz. water supply,
roads, solid waste management, storm water, street lighting and fire fighting
services. The Public Health Engineering Department (PHED) if required deputes
their staff for implementation of water supply schemes in Municipal Council. The
Town and Country Planning Department is responsible for preparation of

development plans for the various municipal areas.
11.2.1 Town and Country Planning Department
Town and country planning department of Madhya Pradesh has been governed
under the Housing and Environment department and enacted by Madhya
Pradesh Town and Country Planning act 1973. This department provides the
planning functions of regional and urban regions as per the rules mentioned
under Madhya Pradesh Land Development Rules, 1974. Main functions are
preparation of Development Plan and its modification. Apart from this it
prepares regional development plan, monitoring and enforcement of various
schemes such as integrated development of small and medium towns and
urban infrastructure development scheme for small and medium towns.
11.2.2 Development Authority
Development authorities in Madhya Pradesh are incorporated by the

government of state of Madhya Pradesh in 1973 in place of city improvement
trust under town and country planning act. It is the implementing agency of
development plan prepared under T & CP department. The major task of this
authority is construction of residential/ housing societies but along with it has
undertaken the several development projects like construction of roadways,
traffic square areas lakes and gardens.
11.2.3 Public Health Engineering Department
Public health engineering department is one of the major department of the

state of Madhya Pradesh as it is not only directly responsible for the provision
of the public health but also carries the water supply and sewerage and
sanitation projects in entire state. Major infrastructure projects under urban
infrastructure are implemented by public health engineering department both in
the urban and rural areas.
It has been divided into three zones, Kolar city comes under the Bhopal region
of public health engineering department. But after 74th constitutional amend
Kolar municipal council shall carry the entire urban infrastructure provision to
the citizens under its jurisdiction including capital projects, Operations and
Maintenance. Public Health Engineering Department provides the technical
assistance to Kolar Municipal Council.
11.2.4 Madhya Pradesh Housing Board
Madhya Pradesh Housing Board was established under Madhya Pradesh Griha
Nirnam Mandal Adhiniyam, 1972. the major objective of Madhya Pradesh
Hosing Board is to monitor and satisfy the housing demand in the state. It
carries the functions like building housing colonies with efficient infrastructure.
Housing Board also constructs the commercial, retail and other types of
buildings for Health, Education and cultural activities. Madhya Pradesh Griha
Nirman Manal Regulation, 1998, State Housing and Habitat Policy 2007 are the
major act and policy which govern department.
11.2.5 Madhya Pradesh Pollution Control Board
The Madhya Pradesh Pollution Control Board has been vested with considerable
authority and responsibility under various environment legislation to prevent
the pollution. M.P. Pollution Control Board presently looks after the
implementation of following Acts:
Water (Prevention & Control of Pollution) Act,1974
Water (Prevention & Control of Pollution) Cess Act, 1977
Air (Prevention & Control of Pollution) Act, 1981
Environment Protection Act ,1986 (certain sections)
Public Liability Insurance Act, 1991
The main objective of M.P. Pollution Control Board is to maintain water, air and
soil in healthy and usable condition for various purposes. There are 10
Regional Offices, 4 Sub Regional, 3 Single Window System,2 Monitoring Centre
equipped with trained personnel and sophisticated instruments, are constantly
keeping watch on environmental activities in the state to attain the objectives.
Major functions of the boards are to reduce, control and monitor the state
environmental pollution in terms of air, water and soil. Also it provides several
consents for industries to establish and operate in order to maintain the
environmental compliance within the state.
Kolar Municipal Council is directly accountable to the Bhopal regional office in

terms of drinking water quality standards at source, intermittent and consumer
level.
11.3 Role of Private Sector in Infrastructure Service

Provision
There is no role of private sector in service provision or infrastructure creation

at Kolar. The role of private sector is restricted to social sector Education and
Healthcare. Even outsourcing of activities such as street light provision, solid
waste collection and transportation which are common among small municipal
councils is not practiced at Kolar.
11.4 Issues
Large number of vacant post represents there is inadequate staff in Kolar

municipal council.
Lack of co-ordination between different departments of state and Kolar

municipal council for administration and regulation of functions and services.
Absence of training and capacity building for staff in order to improve the
service delivery to the citizens.
11.5 Prioritised Action Plan
Though it is imperative to implement all the reform measures mandated under

the JnNURM scheme, the areas that require immediate attention are mentioned
below:
11.5.1 Property assessment

Survey of properties need to be carried out as an immediate priority to bring all
the properties within the municipal council under tax assessment. Properties
which are currently exempted from payment of taxes need to be brought under
the tax umbrella.
11.5.2 Survey of assets

Survey and valuation of assets shall bring in accountability and also in aiding
migration to double entry accounting system. It will also help the municipal
council in exploiting the land bank and also in raising funds from external
sources.
11.5.3 Improvement in collection efficiency and cost recovery

The collection efficiency and cost recovery for services is very low in Kolar. This
will act as a dis-incentive for the municipal council to undertake new projects to
improve service delivery. Hence, the collection efficiency need to be drastically
improved coupled with imposition of reasonable rates for each of the services
provided by the municipal council for long term financial sustainability.
11.5.4 Municipal Capacity Building

Capacity Building needs to focus on all the stakeholders to cover areas of policy
facilitation, system of restructuring, organisation development, and training and
knowledge management.
The general experience with municipal management in India has been that
there is a vast pool of personnel of municipal employees but most of them lack
proper education and training for doing justice to their functional
responsibilities. Today management of complex urban living is an astounding
task requiring a host of qualified personnel. Effective management depends

upon adequate availability of administrative, professional and technical
personnel.
Capacity building is a process of acquiring new ideas and knowledge to
strengthen an organizations vision, structure, direction and talent and enable it
to contribute to common goals. In the case of ULBs, capacity building is
expected to make the administrative machinery more efficient, accountable,
people-friendly, responsive and transparent with a view to improve the delivery
of services to the people.
The two important components of capacity building are:
1. Human Resource Development: A progressive enhancement of latent
capabilities and talents; establishment of optimal staffing incentives,
structures and appropriate monitoring and development of skills to ensure
the organizations growth from within to achieve its objectives.
2. Training: Systematic instruction and practical experience in a profession or
occupation with a view to achieving the greatest proficiency in it.
Based on our understanding of the sector, capacity building of ULB needs a
holistic approach beyond regular training to include strengthening of:
Managerial capacity: Recruitment, performance appraisal, day-to-day
operations, efficiency, accountability, responsiveness.
Technical capacity: Improved skills, to perform regular functions and to
design and implement new projects.
Financial capacity: Resource generation, investment efficiency, rules,
regulations.
Institutional capacity: Institutional arrangements, organizational reforms and
restructuring, autonomy.
Capacity Building Approach for Kolar Municipal Council.
Capacity Building
Lateral Infusion Capacity Up gradation
Outsourcing contracting Certification Certification
11.5.5 Additional strategies

Initiate and implement e-governance
Capacity building through training programmes
The municipal council must develop proper indicators for evaluating their
performance.
Need to develop systems for information collection and dissemination.
The focus of municipal council should be on delivery of public services.
Property mapping of the existing development and updation from time to
time
12 Investment Plan and Financial

Strategies
For a city to have sustainable growth and development, its financials should be
sound and self sustaining with minimum dependence on grants/ external
sources. Kolar is a newly established Municipal Council formed in 2006. Hence,
in this Chapter the Municipal finances of Kolar for the last two years i.e. 2008-
09 and 2007-08 have been reviewed. The problem areas requiring immediate
attention have also been highlighted.
12.1 Financials of Kolar for last two years
The Financials of Kolar Municipal Council for two years i.e. 2007-08 and 2008-
09 is presented in the Table below.
Table 12-1 : Municipal Finances of Kolar (in Rs. Lakhs)
Sr. No. Particulars 2007-08 2008-09

Income Heads
A Municipal taxes and rates 44.20 176.77
1 City Development surcharge 0.00 34.57
2 Property tax
a Total of Dues of last year 18.20 49.10
b Collections in the present year 17.51 42.56
3 Integrated tax 5.70 17.15
4 Water tax 0.54 28.44
5 Other taxes 2.25 4.95
B Receipts under Special Acts 0.00 0.02
C Income from other sources 31.81 85.85
1 Water deposits and other fees 0.00 9.87
2 Building construction permission fees 6.28 9.31
3 Development charges 21.10 46.61
4 Other non-tax income 4.42 20.06
D Grants and Aids/contribution 298.71 541.79
1 Octroi 99.67 100.79
2 Road construction/Repairs/Special 9.73 78.07
3 Basic 100.35 50.00
4 State Finance Commission 21.94 20.02
5 12th Finance commission 8.45 25.36
Sr. No. Particulars 2007-08 2008-09

6 Community participation/MP/MLA fund 22.87 94.02
7 Slum development/ Slum Housing project 9.08 69.73
8 Water crisis 9.00 27.50
Social Security/Old age pension/National Family
9 9.91 30.34
Pension scheme
10 Other grant and aid 7.71 45.96
E Miscellaneous 2.85 128.62
1 Stamp duty collections 0.00 125.48
2 Others 2.85 3.14
F Extraordinary and Loans 6.45 22.51
Total Income 384.01 955.56
Opening Balance 17.79 50.21
Grant Total 401.81 1005.77
Expenditure Heads
G General Adminstration and collection 22.17 33.02
H Public conveniences/facilities 15.08 67.33
1 Fire fighting 0.00 7.02
2 Street lighting 15.08 60.31
I Public Health and facilities 198.39 249.41
1 Water Supply 106.03 133.76
2 Sanitation 77.99 97.71
3 Other facilities 14.37 17.94
J Public works 88.88 304.88
1 Roads and drains 77.86 288.79
2 Buildings 1.64 1.63
3 Other public works 9.37 14.46
K Community/Public education 9.56 121.44
1 Slum up gradation 0.00 76.43
2 Pension (Social security) 0.00 21.48
3 Other community facility expenses 9.56 23.53
L Miscellaneous 7.20 38.38
M Extra ordinary and Loans 10.33 22.21
Total Expenditure 351.60 836.67
Surplus/ Deficit 32.41 118.89
Closing Balance 50.21 169.09
Kolar Municipal Council has shown surplus funds in the last two years. The
revenue has grown at 149% in the year 2008-09 over the previous year. The
expenditure too has grown at 138% in the year 2008-09 over the previous
year. It may be noted that since Kolar is a newly formed Municipal Council the
past two year financial trend will not reflect the potential revenue in the coming
years.
12.2 Analysis of Revenue Income
Municipal taxes, non-tax revenues, loans and grants are the different sources of
revenue for Kolar Municipal Council. The analysis of revenue under the various
heads in the last two years is presented below.
12.2.1 Municipal Taxes
Municipal Taxes account for only 18% of the total income of Kolar Municipal
Council (KMC) for the year 2008-09. This is attributed to the non-assessment of
all the properties in the Municipal Council area, non imposition of taxes for the
services and poor service delivery. The Municipal taxes levied include:
Property Tax
Water Tax
City Development surcharge and
Others Integrated tax, vehicle tax, education surcharge etc.
Figure 12-1 : Municipal Taxes
100
90
80
70
60
Rs. Lakhs 50
40
30
20
10
0
2007-08 2008-09
Property Tax Water Tax Development surcharge Others
Property tax accounts for 52% of the municipal taxes, while water tax and
development tax account for 16% and 20% of the municipal taxes respectively
for the year 2008-09.
Property tax
The Municipal Council is carrying out survey of the properties within the
municipal area to bring all the properties within the tax assessment. Property
tax is levied at the rate of 1% of rental value for residential properties and 2%
of the rental value for commercial properties.
Figure 12-2 : Arrear and Current Property Tax Collection
100
90
80
70
60
Rs. Lakhs 50
40
30
20
10
0
2007-08 2008-09
Arrears Current
As seen from the Figure above it is clear that there is a delay in the recovery of
property tax. The ratio of arrear collection to current demand collection for the
on an average is 53:47 for the last two years which shows that there is a
consistent delay in recovery of current year demand raised every year.
Water tax
At present there is no separate tax on water supply. However, charges are

collected for water supply through tankers to various wards. The water charges
collected for the year 2008-09 is Rs. 28.44 lakhs.
Integrated tax
Tax towards street lighting, fire fighting and sanitation is levied at the rate of
Rs. 150 per year is levied on all the properties.
12.2.2 Non-Tax Income
The non-tax incomes of Kolar Municipal Council include the following:

Development charges
Water deposits
Shop rent
Other income comprising advertisement fee, contractor deposit etc.
Figure 12-3 : Non-tax Income
140.00
120.00
100.00
80.00
Rs. lakhs
60.00
40.00
20.00
0.00
2007-08 2008-09
Water deposits Building permission fees Development charges Stamp duty Others
City Development charges
City Development charges are one time charges on the property. They are
levied at the rate of Rs. 2 per Sq. Ft for residential properties and Rs. 4 per Sq.
Ft for commercial properties.
Others
Other income includes Education cess, water charges, advertisement fee and
Bazaar fees. Education cess is levied at the rate of 2% of the property tax and
it accounts for 4% of the municipal taxes for the year 2008-09. Advertisement
fee is levied at the rate of Rs. 75/ Sq. m for the hoardings.
Kolar Municipal Council collects charges for installation of new water
connections, rain water harvesting and meter installation. Kolar Municipal
Council also levies charges towards new building construction permission.
Stamp duty accounts for 59% of the non-tax revenue of Kolar Municipal Council
for the year 2008-09.
12.2.3 Municipal Revenue Income

The revenue of Kolar Municipal Council has been grouped under the heads tax
income, non-tax income, transfers including grants, loans and other capital
receipts as follows:
Table 12-2 : Municipal Revenue of Kolar (Rs. Lakhs)
Revenue heads 2007-08 2008-09
Tax 44.20 176.77
Non-tax 34.65 214.49
Transfers including grants 298.71 541.79
Loans 10.33 22.21
Grants and transfers account for about 57% of the total income for the year
2008-09 while municipal taxes account for only 18% of the total revenue. The
revenue from taxes needs to be enhanced in the coming years.
12.3 Analysis of Revenue Expenditure

The analysis of expenditure under the various heads in the last two years is
presented below.
Revenue expenditure of Kolar Municipal Council can be broadly brought under
the following heads:
Establishment (wages and salaries)
Operation and maintenance
Extraordinary and loans
Table 12-3: Revenue Expenditure of Kolar (in Rs. Lakhs)
Revenue Expenditure 2007-08 2008-09
Establishment 94.12 157.85
Operation and maintenance 85.47 225.86
Extraordinary and loans 10.33 22.21
Total 189.91 405.92
Revenue Expenditure accounts for about 51% of the total expenditure on an

average for the period between 2007-08 and 2008-09.
Figure 12-4 : Average break-up of Revenue Expenditure
Extraordinary &
loans
5%
Establishment
42%
O&M
53%
12.3.1 Establishment (wages and salaries)
Establishment expenses account for 42% of the revenue expenditure on an

average for the period between 2007-08 and 2008-09. Salary expenses of
sanitation department and public works department accounts for 52% and 10%
of the total salary expenditure respectively. Salary expenditure of councilors,
other staff, park, library etc. accounts for 29% of the total salary expenditure.
Figure 12-5 : Average break-up of Salary Expenditure

Others
Sanitation
29%
52%
Public works
10% Lighting
3% Water Supply
6%
12.3.2 Operation and maintenance
Operation and maintenance expenditure accounts for about 52% of the revenue
expenditure on an average for the period between 2007-08 and 2008-09.
12.3.3 Others
Other expenditure includes loans, advances, advertisement expenditure and

accounts for 5% of the total revenue expenditure for both 2007-08 and 2008-
09.
12.4 Capital Income
12.4.1 Grants including transfers
Grants account for about 78% and 57% of the total income of the Municipal
Council for the years 2007-08 and 2008-09 respectively. The various grants
and transfers to the Municipal Council are:
Octroi grant
Basic grant
Road maintenance grant

State Finance Commission
12th Finance Commission
MP/ MLA fund
Slum development grant
Water supply grant
Social Security/Old age pension/National Family Pension scheme
Others
Figure 12-6 : Grants and Transfers for 2008-09

Social Security grant Other grant Octroi
6% 8% 19%
Water grant
5%
Slum development Road grant

13% 14%
Basic facilities grant

MP/MLA fund 9%
17%
State Finance Commission
4%
12th Finance commission

5%
Source: compiled from Municipal Accounts, Kolar
Octroi grant
Octroi accounts for about 19% of the total grants to the Municipal Council for
the year 2008-09.
Basic Facilities grant
This grant being provided to the ULBs primarily for sanitation and solid waste
management accounts for 9% of the total grant of the Municipal Council for the
year 2008-09.
Road Maintenance grant
This grant being provided to the ULBs primarily for new road construction and
maintenance of roads. Road maintenance grant accounts for 14% of the total
grant of the Municipal Council for the year 2008-09.
State Finance Commission grant
State Finance Commission grant account for 4% of the total grant of the
Municipal Council for the year 2008-09. The State Finance Commission grant is
provided to ULBs to meet their capital and O&M expenditure.
12th Finance Commission grant
The 12th Finance Commission grant is provided by the Central Government to

the ULBs through the State Government. The grant accounts for 5% of the total
grant of the Municipal Council.
Slum Upgradation grant
Kolar received Rs. 69.73 lakhs towards rehabilitation of slums for the year
2008-09 and it accounted for 13% of the total grant of the municipal council.
Other grant
Other grants include MP/ MLA grant, water grant, social security grant and they
account for 17%, 5% and 6% of the total grant respectively for the year 2008-
09.
12.4.2 Loan details
Kolar Municipal Council has availed loan from banks and institutions for funding
capital works and purchase of assets. The loan details are as follows:
Municipal Council has availed advance of Rs. 25 lakhs from All India Local Self
Government (AILSG) for water supply pipeline. The loan and interest amount
will be directly deducted from the Octroi.
The Municipal Council has availed a loan of Rs. 8.3 lakhs for purchase of three
tractors. The loan is repayable in 36 Equated Monthly Installment (EMI)
beginning December 2007. The loan is obtained from SBI, Indore at 15.75%
rate of interest.
The Municipal Council has also availed loan of Rs. 15.83 lakhs towards purchase
of fire fighting vehicle and sky ladder for street lighting in February 2008. The
rate of interest is 14.75% and the loan is repayable in 36 months.
12.5 Capital Expenditure
12.5.1 Level of aggregate investment in urban infrastructure
Expenditure on capital works account for about 49% of the total municipal
expenditure of Kolar Municipal Council for the year 2007-08 and 2008-09. The
capital expenditure is towards road construction, water supply, storm water
drain, building works and slum rehabilitation. The break-up of capital
expenditure for the last five years is as follows:
Table 12-4: Expenditure on capital works (in Rs. Lakhs)

Capital works 2007-08 2008-09 Sector-wise total
Water Supply 67.86 43.59 111.45
Roads and Storm water drains 77.55 287.99 365.54
Buildings 1.64 8.82 10.46
Sanitation 4.61 0.19 4.81
Slum upgradation 1.34 90.33 91.67
Others 8.68 0.56 9.24
Total 161.68 431.48 593.16
Figure 12-7 : Capital expenditure sector-wise for the last two years
Sanitation Slum upgradation Others
1% 15% 2% Water Supply
19%
Buildings
2%
Roads and Storm

water drains
61%
12.6 Key Financial Indicators
For a municipal council to undertake additional capital works, improve service

delivery and to be financially sustainable it should be able to achieve 100%
recovery of the costs incurred towards provision of water supply, sewer,
sanitation, street light and other services.
12.6.1 Water Supply

There is no tax on water supply. However, charges are collected towards supply
of water in tankers. The cost recovery for provision of water supply is very low
at 32% for the year 2008-09.
Table 12-5: Cost Recovery for water supply services (in Rs. Lakhs)
Water Supply 2007-08 2008-09
Cost incurred in service provision 38.17 90.17
Direct recoveries 0.54 28.44
% cost recovery 1% 32%
From the above table it is clear that the municipal council need to take drastic
measures to impose reasonable rates for water supply to improve cost recovery
for water supply services in the coming years. It is expected that Municipal
Council will levy fixed charges on properties for water supply once the scheme
gets implemented.
12.6.2 Sanitation, Street lights and Fire
Municipal Council levies Rs. 150 per property per annum towards street light,
sanitation and fire services. The cost incurred for provision of the above
mentioned services and the revenue collected in lieu of the same shows that
the direct cost recovery for the year 2008-09 is only 10%. For the year 2008-
09 the tax collected is Rs. 17.14 lakhs while the cost incurred for the services is
Rs. 166.19 lakhs.
Hence, Kolar Municipal Council needs to impose separate taxes for street
lighting, sanitation at reasonable rates to ensure direct cost recovery for each
of these services.
12.7 Key Issues and Conclusion

Cost recovery is only 32% for water supply services and for other services
it is 10% for the year 2008-09.
No water tax is imposed and water charges are collected depending on
supply of water through tankers.
Survey of properties within the Municipal Council is presently underway
and presently large number of properties within the Council is not
assessed for tax collection.
Grants and transfers account for about 57% of the total revenue while
municipal taxes account for only 18% of the total revenue for the year
2008-09. The share of municipal taxes to the total income need to be
improved.
Capital expenditure is skewed towards road and storm water drain works
and other infrastructure services requiring investments need to be
considered.
Salary accounts for 42% of the total revenue expenditure and the same
need to be curtailed in the coming years.
The expenditure on capital works is skewed towards road works and
storm water drains which accounts for about 61% of the total capital
expenditure in the last two years.
The city specific strategies and action plans prepared after the analysis of
demand and supply gap of all the sectors with consideration of population
projection through out the phase periods. The city investment plan has been
prepared for three periods (five years each) and investment has been
prioritized in order to balance the financial capacity and major capital
investment projects required for Kolar city development. Financial viability in
terms of financial operating plan has been explained under next chapter of this
report.
Capital investment Plan (C.I.P):
Phase-wise capital investment plan has been shown in the table given below:
Table 12-6: Phase-wise city investment for Kolar (in Rs. Lakhs)
A+B+C PHASE -A PHASE- B PHASE -C

Sectors for City Investment Estimated
Plan cost in 2011-12to 2016-17 to 2026-27 to
lakhs 2015-16 2025-26 2035-36
Water Supply 13285.16 5591.46 3317.70 4376.00
Sewerage & Sanitation 7365.52 3267.52 782.50 3315.50
Storm Water Drainage 11309.02 733.47 7630.55 2945.00
Solid Waste Management 784.09 359.62 140.23 284.23
Roads, Traffic and Transportation 7485.23 1474.89 2727.68 3282.67
Street Lighting 532.68 253.19 158.51 120.98
Socio-Economic Infrastructure 1040.00 372.50 592.50 75.00
Slums & Urban Poverty 1801.56 900.78 900.78 0.00
Total 43603.26 12953.43 16250.45 14399.38
Following table provides the list of projects phase-wise in details with the
sectors of physical and social infrastructure, urban renewal and urban poverty.
Table 12-7: Phase-wise projects - physical and social infrastructure, urban renewal and urban poverty.
Darashaw & Company Pvt Ltd.
P a g e | 95
13 Investment Prioritization Plan
13.1 Project Identification
Projects identified for each sector have been enlisted in the earlier chapter with
phase wise manner of implementation. Project identification for Kolar City
Development Plan has been made on the basis of future demand and supply
gap analysis for each sector of physical and social infrastructure. Also for
institutional strengthening the reforms related to urban governance also has
been introduced under the urban renewal section.
Project identification has been done following sectors:

Water supply
Sewerage and sanitation
Storm water drainage
Municipal solid waste
Roads
Traffic and Transportation
Streetlights
Social-economic sectors
Urban Renewal
Slum Improvement
13.2 Basis for Project Identification
Identification of projects for Kolar city development has been done after future
demand and supply gap analysis of physical and social infrastructure. After
estimating the gap, in order to prioritize the projects for Kolar, consultants had
several discussions with municipal officials and stakeholder through workshops
and official meetings. After the discussion it has been concluded that the major
area of sector for development is the water supply system of Kolar. As of now
there is no reliable system of water supply for citizens of Kolar. Hence there is
urgent need of capital investment for water supply scheme of Kolar. Apart from
water supply, effective municipal solid waste management and basic sanitary
services in slum regions have been identified on the basis of legal binding of
Municipal solid waste handling rules 2000 and basic services to the urban poor.
Apart from future demand and supply gap analysis, the basis for project
identification was the mandatory and optional reforms mentioned under the
Jawaharlal Nehru National Urban Renewal Mission (JnNURM). These reforms
were requiring in order providing the effective service delivery of basic services
and management from urban local bodies the urban population.
13.3 Projects for System and Infrastructure Augmentation
Kolar being a newly formed Municipal council will require the immediate
infrastructure augmentation projects especially in the sector of water supply
and municipal solid waste management. Following list of projects will provide
the infrastructure augmentation projects for development of Kolar city.
Table 13-1: projects for infrastructure augmentation
Sector Projects
Proposed Water Supply Scheme
Water Supply
Construction of additional OHT of 1.8 MLD for 2040-41 demand
Implement the U.G sewer system
Sewerage and
sanitation Construction of 10 Public toilets ( 4 Nos at ward 10, 3 Nos at ward
9, 3 Nos for ward 15)
Solid waste
Proposed Solid Waste Management Scheme
management
Creating 26 Km new roads between 2010-11 and 2020-21,
Implementation of road project ( upgradation of existing municipal
Roads, Traffic and roads of Kolar)
Transportation Creating new bus terminal for Kolar (4 Acres)
Creating separate bus shelters along Kolar road ( 7 nos.) by 2020-
21
Installing 5430 8W LED from 2010-11 to 2020-21
Street lighting Installing 1580 8W LED from 2020-21 to 2030-31
Installing 1885 8W LED from 2030-31 to 2040-41
Total Slum Works (Slum Improvement scheme for slums
Urban Poverty
(Approx Population: 15013))

13.4 Projects for System and Infrastructure Refurbishment
Project identified for infrastructure refurbishment includes the relaying of roads,

renovation of future bus terminals and replacing the existing street lights with
energy savers. Following list provides the information on the projects under
infrastructure refurbishment for Kolar City Development Plan.
Table 13-2: projects for infrastructure refurbishment
Sector Project Component

Laying new 87 Km distribution network by 2020-2021
Laying 62 Km between 2021-22 and 2030-31
Laying 62 Km between 2031-32 and 2040-41
Water Supply
Providing Water Meters to 5100 households by 2020-21
Sewerage and storm Laying additional 67 Km sewer network by 2020-21
water drainage Laying additional 40 Km sewer network between 2021-22 and
2030-31
Sector Project Component

Laying additional 48 Km sewer network between 2031-32 and
2040-41
Creating 240 Km Storm water drains by 2020-21
Creating 61 Km SWDs between 2021-2022 and 2030-31
Creating 74 Km between 2031-32 and 2040-41
Tractor trailer ( 5 Nos) with capacity of 2 ton for SWM till year
2030-31
Tractor trailer ( 7 Nos) with capacity of 2 ton for SWM till year
2040-41
Compactor of 8 ton capacity for SWM till 2020-21 ( 1 nos.)
Road sweepers ( 5 Nos) for 2020-21 for mechanical road
sweeping
Solid waste Road sweepers ( 6 Nos) for 2030-31for mechanical road
management sweeping
Road sweepers ( 8 Nos) for 2040-41for mechanical road
sweeping
Household segregation bins of 143950 Nos from 2010-11 to
2020-21
2030-31
2040-41
Procuring protective gears (gumboots, gloves and masks) for
180 Nos workers once in 2 years
Relaying existing 102 Km BT roads after every three years till
2020 ( considering 50% roads as CC roads)
Relaying existing 126 Km BT roads after every three years till
2030 ( considering 50% roads as CC roads)
Roads, Traffic and Relaying existing 154 Km BT roads after every three years
Transportation 2040 ( considering 50% roads as CC roads)
Renovation of bus shelters during 2020- 2030
Renovation of bus shelters during 2030- 2040
Conversion of Kutcha road network 18.82 Km WBM into Pucca
road network by 2020-21
Replacing 1010 tube lights of 40 W with 8W LED
Street lights Replacing 150 W 174 Nos SVL with 55W LED
Replacing 250 W 210 Nos SVL with 130W LED
13.5 Other Development Projects
Other development projects include the socio-economic infrastructure projects

like development of recreational spaces, schools and hospitals, burial ground
and tourism related development.
Table 13-3: other development projects
Sector Projects
Creation of 21 Parks/Playgrounds in all the wards (total 21 Nos)
Improving infrastructure facilities in all Burial grounds (3 Nos)
Gasifier Crematorium at one Burial ground
Developing a new Weekly Market
Socio-Economic Tourism development in Kaliyasot Dam and Kolar Dam by creating
check dams and recreational spaces and parks (grant from Department
of Tourism)
Development of a new Slaughter House
Creation of one Community Hall every 5 years
Development of New Municipal Building in 1.28 Ha land in Ward No. 18
Urban Governance
E-Governance
Urban Poor Slum Improvement scheme for slums (Approx Population: 15013))
13.6 Sector wise Project Identification and Costing
13.6.1 Water Supply
In order to address water scarcity problem in Kolar, Water supply scheme has
been proposed and the project cost is Rs.36.67 crores for the entire scheme.
This water supply scheme is proposed under the UIDSSMT scheme. The
proposed scheme includes the construction of intake well of 17.50 MLD, rapid
gravity filter plant of 11.95 MLD, water supply main of 7.3 km and feeder main
of 95.644 km. also it has proposed the provision of OHT of 3 nos. with 4000KL
capacity each.
Apart from above detailed project, as per the demand supply gap there shall be
the construction of additional 87 km line of distribution network till 2020-21.
Table 13-4: Estimated Project Cost of various works under Water Supply
Sr. Estimated cost Implementing
Project List
No. Rs. Lakh agency
1 Proposed Water Supply Scheme 3667.96 PHE/KMC
Construction of additional OHT of
2 180 PHE/KMC
1.8 MLD for 2040-41 demand
Laying new 87 Km distribution
3 1872.5 PHE/KMC
network by 2020-2021
Providing Water Meters to 5100
4 51 KMC
households by 2020-21
Total for Water Supply Works 5771.46 KMC
It is suggested that Council has to undertake water audit, energy audit and leak
deduction studies to minimize Unaccounted Water Flow (UFW) and minimize
the energy expenditure. The goals and service outcomes based on the proposed
strategy for the horizon period is presented in Table below.
Table 13-5: Goals and Service outcomes related to Water Supply sector
Goals 2010-11 2020-21 2030-31 2040-41
Network Coverage 0% 80% 100% 100%
Access to piped water supply 0% 80% 100% 100%
Per Capita Supply (LPCD) 8 135 135 135
4 hours 24hours 24 hours
Hours of Supply 0 daily daily daily
24x7 Water Supply NIL - 21 wards 21 wards
As per As per
Quality of Water NA Stds Stds As per Stds
Non Revenue Water 50% 20% 15% 15%
O&M Cost Recovery (As on 2008-
09) 32% 100% 100% 100%
Table 13-6: Project implementation schedule for water supply

Phasing
Project list
2011-12 2012-13 2013-14 2014-15 2015-16
Proposed Water Supply Scheme
Construction of additional OHT of
1.8 MLD for 2040-41 demand
Laying new 87 Km distribution
network by 2020-2021
Providing Water Meters to 5100
households by 2020-21
To address the issue of system rehabilitation, mapping and establishing a GIS
system is pertinent to detail out system location, characteristics, age and
condition. This would enable identifying dilapidated sections of the network and
those that require replacement.
13.6.2 Sewerage and Sanitation

Under Sewerage and Sanitation, Kolar Municipal council has already proposed
the underground sewer project under UIDSSMT scheme. This scheme shall be
implemented with the laying of 107.21 km UG sewer line, Providing STP in the
form of aerated lagoons 16.875 MLD.
In addition to it there shall be the provision of community toilets for sanitation
function in different parts of the Kolar Municipal Council. Following are the
proposed location for the 10 nos. of community toilets:
Table 13-7: Provision of community toilets with cost

number of community number of Cost in Implementing agency
Sr no toilets wards Rs. Lakh
1 4 10 6.0 KMC
2 3 9 4.5 KMC
3 3 15 4.5 KMC
Total 10 34 15.0 KMC
Table 13-8: Estimated Project Cost of various works under sanitation services.
Sr. Total
No. Project List (2011-2016) Implementing
Rs. In Lakh agency
1 Implement the U.G sewer system 772.52 PHE / KMC
2
Laying additional 67 Km sewer network by
2020-21 2480.00 PHE / KMC
3
Construction of 10 Public toilets ( 4 nos at
ward 10, 3 nos at ward 9,3 nos for ward 15) 15.00 KMC
Total for Sewerage and Sanitation Works 3267.52
Table 13-9: Goals and Service outcomes related to Sewer and sanitation services.
Goals 2010-11 2020-21 2030-31 2040-41
Network Coverage (Access) 0% 80% 100% 100%
Treatment and Disposal 0% 100% 100% 100%
Recycle and Reuse 0% - 100% 100%
Recovery of O&M Costs 0% 100% 100% 100%
Public convenience facilities coverage 10% 75% 90% 100%
The project implementation for the community toilets and the underground
sewer system will be for the initial two year as it should be implemented
immediately. Following table represents the project implementation schedule
for the sewer services.
Table 13-10: Project implementation schedule for Sewer and sanitation services
2011- 2012- 2013- 2014- 2015-
Project List
12 13 14 15 16
Implement the U.G sewer system
Construction of 10 Public toilets
( 4 Nos at ward 10, 3 Nos at ward 9, 3
Nos for ward 15)
Utility Mapping
13.6.3 Solid Waste Management
Kolar town generates around 29.48 metric ton of Garbage per day at the rate of
291 grams per capita per day. Waste is being collected in all the 21 wards but
none of these wards have Door-Door collection and Waste segregation
practices. Road side bins of 74 Nos have been placed all over the town, each
having the capacity of around 3.5 ton for waste collection.
Currently in phase I (2010-11 to 2015-16), the following projects have been

proposed to be implemented.
Table 13-11: Estimated Project Cost of various works under municipal solid waste
management.
Total Implementi
Sr.
Project List (2011-2016) ng
No.
Rs. In Lakh agency
1 Proposed Solid Waste Management Scheme 275.00 KMC
Tractor trailer ( 5 Nos) with capacity of 2 ton for

2 14.38 KMC
SWM till year 2020-21
Compactor of 8 ton capacity for SWM till 2020-21
3 20.00 KMC
(1 Nos.)
Road sweepers ( 5 Nos) for 2020-21 for
4 18.75 KMC
mechanical road sweeping
Household segregation bins of 143950 Nos from
5 17.99 KMC
2010-11 to 2020-21
Procuring protective gears (gumboots, gloves and
6 13.50 KMC
masks) for 180 Nos workers once in 2 years
Total for Solid waste Management Works 359.62 KMC
Table 13-12: Goals and Service outcomes related to Municipal solid waste
management
Goals 2010-11 2020-21 2030-31 2040-41
Door to Door Collection 0% 100% 100% 100%
Source Segregation 0% 100% 100% 100%
Secondary Collection 30% 100% 100% 100%
Treatment & Disposal 0% 100% 100% 100%
Cost Recovery Mechanism 0% 100% 100% 100%
Private Sector Participation NIL Partial Full Full
The strategies to achieve the above mentioned projects and the proposed time
frame are presented in Table.
Table 13-13: Project implementation schedule for municipal solid waste management
Phasing
Project List
2011-12 2012-13 2013-14 2014-15 2015-16
Proposed Solid Waste
Management Scheme
Tractor trailer ( 5 Nos) with
capacity of 2 ton for SWM till year
2020-21
Compactor of 8 ton capacity for
SWM till 2020-21 (1 Nos.)
Road sweepers ( 5 Nos) for 2020-
21 for mechanical road sweeping
Household segregation bins of
143950 Nos from 2010-11 to
2020-21
Phasing
Project List
2011-12 2012-13 2013-14 2014-15 2015-16
Procuring protective gears
(gumboots, gloves and masks)
for 180 nos workers once in 2
years
13.6.4 Roads, Traffic and Transportation

Kolar has no Comprehensive Traffic and transportation plan for managing the
traffic and Transportation for present as well as for future years. Traffic
Management measures adopted as on today would sustain only for a shorter
period of time.
Kolar due to its close proximity to Bhopal has very good regional road network
connectivity. Kolar is connected with Capital City, Bhopal by Mini buses and by
local public transport buses but its frequency is quite low. Kolar has no bus
stand infrastructure and it has no bus shelters also on the Kolar road.
Table 13-14: Estimated Project Cost of various works under Roads, Traffic and
Transportation Works
Total Implement
Sr.
Project List (2011-2016) ing
No
Rs. In Lakh agency
1 Creating 26 Km new roads between 2010-11
KMC
and 2020-21, 292.50
2 Implementation of road project
( up gradation of existing municipal roads of KMC
Kolar) 492.06
3 Relaying existing 102 Km BT roads after every
KMC
three years till 2020 387.60
Total of Road Works 1172.16 KMC
4 Creating separate bus shelters along Kolar road
KMC
( 7 nos.) by 2020-21 14.00
5 Kolar Road improvement scheme
( 7kms)- creating the footpath on both sides by KMC
2020-21 70.00
6 Kolar Road improvement scheme
( 7kms)- creating central median with KMC
landscaping by 2020-21 7.00
7 Conversion of Kutcha road network 18.82 Km
WBM into Pucca road KMC
network by 2020-21 211.73
Total Traffic and Transportation 302.73 KMC
Total for Road, Traffic & Transportation 1474.89 KMC
Apart from the above mentioned works, the following are proposed to be
implemented by 2039-40;
Relaying 26 Km roads after every three years after its implementation
Creating 47 Km new roads between 2021-22 and 2030-31

Relaying existing 102 Km BT roads after every three years till 2020
Relaying existing 126 Km BT roads after every three years 2030
Relaying existing 154 Km BT roads after every three years 2040
Table 13-15: Goals & Service outcomes related to Roads, Traffic, Transportation
Goals 2010-11 2020-21 2030-31 2040-41
Road network (in Kms) 0 204.8 252.1 293.4
Traffic Management with signal provisions 0% 100% 100% 100%
Sidewalks length (in Kms) 0 102 189 293
Cost Recovery Mechanism 0% 100% 100% 100%
Private Sector Participation NIL Partial Full Full
The proposed time frame is presented in Table below.
Table 13-16: Project implementation schedule for Roads, Traffic and Transportation
Project List 2011-12 2012-13 2013-14 2014-15 2015-16
Creating 26 Km new roads
between 2010-11 and
2020-21,
Implementation of road project
( upgradation of existing
municipal roads of Kolar)
Relaying existing 102 Km BT
roads after every three years till
2020
13.6.5 Street Lighting
The present Street Lighting infrastructure at Kolar consists of 40 W tube lights,

250 W and 150 Sodium Vapor lamps and high mast lamp. The following
measures have been identified to be implemented in a phase wise manner up
till 2040.
Installation of Energy Saver street lighting system in Kolar would ensure that
the Municipal Council pays leaner electricity bills, and since the savings would
have a direct effect on the economics of Kolar Municipal Council Accounts, the
implementation has been suggested to be implemented in the initial years
itself.
Following are the projects which are proposed to be implemented in the next 5
years;
Table 13-17: Estimated Project Cost for street lighting

Total Implementing
Sr.
Project List (2011-2016) agency
No.
Rs. In Lakh
1 Replacing 1010 tube lights of 40 W with 8W LED 45.47 KMC
2 Replacing 150 W 174 Nos SVL with 55W LED 26.11 KMC
3 Replacing 250 W 210 Nos SVL with 130W LED 58.83 KMC
4 Installing 5430 8W LED from 2010-11 to 2020-21 122.79 KMC
Total for Street Lighting 253.19
The strategies to achieve the above mentioned projects and the proposed time
frame are presented in Table below
Table 13-18: Project implementation schedule for street lighting

2011- 2012- 2013- 2014- 2015-
Project List
12 13 14 15 16
Replacing 1010 tube lights of 40 W
with 8W LED
Replacing 150 W 174 Nos SVL with
55W LED
Replacing 250 W 210 Nos SVL with
130W LED
Installing 5430 8W LED from 2010-
11 to 2020-21
13.6.6 Other Identified Projects
Socio-Economic infrastructure projects
Socio-Economic Infrastructure works like creating new Parks and Playgrounds,

construction of community hall, slum improvement works, Gassifier, renovation
of slaughter houses, improving infrastructure facilities in burial ground sites,
upgrading the daily and weekly markets and Tourism Development are
proposed based on demand supply gap analysis, based on rapid urban
assessment and on the basis of the suggestions given by review committee
members.
Also the education and health infrastructure has been covered under these
other projects, wherein the two higher secondary schools and one hospital have
been proposed under the priority list of the project identification.
Table 13-19: Estimated Project Cost for socio-economic infrastructure

Total Implementi
Project List (2011-2016) ng
Rs. In Lakh agency
Parks and Creation of 21 Parks/Playgrounds
KMC
Playgrounds in all the wards (total 21 Nos) 52.50
Improving infrastructure facilities in
KMC
Burial Ground all Burial grounds (3 Nos) 15.00
Improvement Gasifier Crematorium at one Burial
KMC
ground 50.00
Daily &
Developing a new Weekly Market KMC
Weekly Market 50.00
Tourism development in Kaliyasot
Dam and Kolar Dam by creating
Tourism
check dams and recreational 80.00 KMC
Development
spaces and parks (grant from
Department of Tourism)
Slaughter Development of a new Slaughter
KMC
House House 100.00
Community Creation of one Community Hall
KMC
Hall every 5 years 25.00
Total for Socio Economic Infrastructure Works 372.50
Table 13-20: Project Implementation Schedule for socio-economic infrastructure

2011- 2012- 2013- 2014- 2015-
Project List
12 13 14 15 16
Creation of 21 Parks/Playgrounds
in all the wards (total 21 Nos)
Improving infrastructure facilities in
all Burial grounds (3 Nos)
Developing a new Weekly Market
Tourism development in Kaliyasot
Dam and Kolar Dam by creating
check dams and recreational
spaces and parks (grant from
Department of Tourism)
Development of a new Slaughter
House
Creation of one Community Hall
every 5 years
Preparation of Master Plan/Area Development Plan
Town is witnessing haphazard growth due to the absence of proper

development / Master Plan. Kolar in fact comes under the jurisdiction of Bhopal
Planning area. Bhopal Master Plan released recently hasnt included Kolar
Municipal area even though Kolar Municipal area was there in the draft master
plan released for public comments and objections. Either it shall be
incorporated in the Bhopal master plan with proper provision or separate
master plan or area development plans shall be prepared for the development
of the Kolar region. However, in order to achieve the appropriate development
with land use provisions, separate master for Kolar region shall be prepared
which will incorporate the entire municipal council area and the surrounding
growth centres, apart from Kolar itself.
Table 13-21: Estimated Project Cost for Master Plan/ Area Development Plan of Kolar
region
Project List for Landuse and Growth Implementing
Estimated cost in lakhs
Management agency
Preparation of Master Plan/ Area
50.00 T & CP Dept.
Development Plan
Table 13-22: Project Implementation Schedule for preparation of master plan/ area
development plan of Kolar region.
Phasing
Project List 2012- 2013- 2014-
2011-12 2015-16
13 14 15
Preparation of Master Plan/
Area Development Plan
13.6.7 Slum Development for Urban Poor in Kolar
There 13 nos of slum pockets in Kolar with population of around 15013. As per
the analysis for slums of Kolar, there is no documentation of slum households
and infrastructure status in the slum areas. Also there is no BPL survey
conducted yet. Meanwhile, there is need for the poverty mapping to analyze
and heave the issues related to slum pockets of Kolar.
Following are the projects identified for slum development of urban poor in
Kolar:
Table 13-23: Estimated Project Cost for Slum development in Kolar
Sr. Total
No Project List (2011-2016) Implementing
Rs. In Lakh agency
1
Housing Component KMC
900.78
Total Slum Works (Slum Improvement scheme
900.78 KMC
for slums (Approx Population: 15013)
The project implementation schedule for the slum development for urban poor
of Kolar shall be as follows:
Table 13-24: Project Implementation Schedule for slum improvement in Kolar

Project List 2011-12 2012-13 2013-14 2014-15 2015-16
Housing component
13.7 City Investment Plan
Table 13-25: Capital investment plan phase wise for all sectors
Estimat 2011- 2016-17 2021-22 2026-27 2031-32 2035-36
ed cost 12to to to to to to
Sector in lakhs 2015-16 2020-21 2025-26 2030-31 2035-36 2040-41
Water
Supply 13285.2 5591.5 1923.5 1394.2 1394.2 1580.9 1400.9
Sewerage
&Sanitation 7365.5 3267.5 0.0 782.5 1447.5 934.0 934.0
Storm Water
Drainage 11309.0 733.5 6770.6 860.0 860.0 1042.5 1042.5
Solid Waste
Managemen
t 784.1 359.6 50.2 90.0 70.0 117.1 97.1
Roads,
Traffic
Transport 7485.2 1474.9 1397.4 1330.3 1326.8 980.6 975.3
Street
Lighting 532.7 253.2 122.8 35.7 35.7 42.6 42.6
Socio-
Economic
Infra 1040.0 372.5 567.5 25.0 25.0 25.0 25.0
Slums &
Urban
Poverty 1801.6 900.8 900.8 0.0 0.0 0.0 0.0
Total 43603.3 12953.4 11732.8 4517.7 5159.2 4722.7 4517.5
% share 29.7 26.9 10.4 11.8 10.8 10.4
13.8 Financial Operating Plan
The Financial Operating Plan (FOP) assesses the financial strength of the
Council to implement the identified projects. The Financial Operating Plan (FOP)
forecasts the municipal finances on the basis of certain assumptions on income
and expenditure. The primary objective of the FOP is to ascertain the
investment sustenance capacity of the council to undertake various projects.
13.8.1 Projection of Financial Statement
The analysis of the financials of Kolar Municipality is presented in earlier

sections. Since Kolar Municipality came into being only in 2006, the financials
are available for only two years. The past trends in growth rates in revenue
income and expenditure are assumed to continue over the next 5 years. No
new revenue sources such as user charges for UGD etc. are envisaged under
this scenario. Based on the past trends the projection of financials of Kolar
Municipality is prepared for the period 2009-10 to 2015-16.
Table 13-26: Projected Financial Statement under No Reforms Scenario in Lakhs
S 2009- 2010- 2011- 2012- 2013- 2014-
Particulars 2015-16
N 10 11 12 13 14 15
i Income
Municipal Taxes
A
and rates
City Development
1 47.52 48.95 50.41 51.93 53.48 55.09 56.74
Surcharge
2 Property Tax
a Arrears 52.54 56.21 60.15 64.36 68.87 73.69 78.84
b Current 45.54 48.73 52.14 55.79 59.69 63.87 68.34
3 Integraged tax 18.35 19.64 21.01 22.48 24.05 25.74 27.54
4 Water Tax 31.28 34.41 37.85 41.64 45.80 50.38 55.42
5 Other taxes 5.45 5.99 6.59 7.25 7.97 8.77 9.65
Reciept under
B 0.02 0.02 0.02 0.02 0.02 0.02 0.02
special acts
Income from other
C sources-(non tax
income)
Water Deposits &
1 10.56 11.30 12.09 12.94 13.84 14.81 15.85
other fees
Building
2 construction 10.24 11.27 12.39 13.63 14.99 16.49 18.14
permission fees
Development
3 51.27 56.40 62.04 68.24 75.07 82.57 90.83
charges
Other non tax
4 21.06 22.12 23.22 24.38 25.60 26.88 28.23
income
Grants &
D
aids/contribution
1 Octroi 101.9 103.0 104.2 105.4 106.5 107.7 108.9
Road
2 construction/Repa 85.88 94.46 103.9 114.3 125.7 138.3 152.1
irs/ Special
3 Basic 52.50 55.13 57.88 60.78 63.81 67.00 70.36
State finance
4 15.48 15.48 15.48 15.48 15.48 15.48 15.48
commission
12th finance
5 27.90 30.69 33.75 37.13 40.84 44.93 49.42
commission
Community
6 participation/MP/ 103.4 113.7 125.1 137.6 151.4 166.5 183.2
MLA fund
Slum
7 development/Slu 76.70 84.37 92.81 102.0 112.3 123.5 135.8
m housing project
8 Water Crisis 30.25 33.28 36.60 40.26 44.29 48.72 53.59
S 2009- 2010- 2011- 2012- 2013- 2014-

Particulars 2015-16
N 10 11 12 13 14 15
Social
Security/Old age
9 pension/National 31.86 33.45 35.12 36.88 38.72 40.66 42.69
Family Pension
scheme
Other grant and
10 48.26 50.67 53.20 55.86 58.66 61.59 64.67
aid
E Miscellaneous
Stamp duty
1 125.4 125.4 125.4 125.4 125.4 125.4 125.4
collections
2 Others 3.30 3.46 3.63 3.82 4.01 4.21 4.42
Extraordinary and
F 23.64 24.82 26.06 27.36 28.73 30.17 31.67
loans
Total Income 1020.4 1083.1 1151.2 1225.1 1305.4 1392.7 1487.6
ii Expenditure
General
A administration and 36.32 39.95 43.95 48.34 53.18 58.50 64.35
collection
Public
B conviniences and
facilities
a fire fighting 7.51 8.04 8.60 9.20 9.85 10.54 11.27
b Street lighting 66.34 72.98 80.27 88.30 97.13 106.84 117.53
Public health and
C
facilities
a water supply 143.12 153.14 163.86 175.33 187.61 200.74 214.79
b sanitation 104.55 111.87 119.70 128.08 137.04 146.64 156.90
c other facilities 19.20 20.54 21.98 23.52 25.16 26.92 28.81
D Public works
a Roads and drains 303.23 318.39 334.31 351.03 368.58 387.01 406.36
b Buildings
c other public works 15.91 17.50 19.25 21.17 23.29 25.62 28.18
Community/public
E
education
a Slum upgradation 80.25 84.26 88.48 92.90 97.55 102.42 107.54
Pension(Social
b 22.55 23.68 24.87 26.11 27.41 28.79 30.22
security)
Other community
c 24.71 25.94 27.24 28.60 30.03 31.53 33.11
facilities expenses
F Miscellaneous 42.22 46.44 51.08 56.19 61.81 67.99 74.79
Extraordinary and
G 23.32 24.49 25.71 27.00 28.35 29.76 31.25
Loans
Total
889.2 947.2 1009.2 1075.7 1146.9 1223.2 1305.1
Expenditure
Surplus/ Deficit 131.1 135.9 141.9 149.3 158.4 169.4 182.5
13.8.2 Assumptions for other sources of Revenue income

The assumptions for the projection of revenue and expenditure are as follows:
Table 13-27 : Assumption for Income
Growth Projected growth

Particulars Notes
Rate-(%) Rates (%)
Growth rate for the two year data is
Octroi 1% 1% only 1% hence same assumed for
the future projections.
Integrated Rs.120/Property with an increase of
201% 7%
Tax 15% every 3 years
Development Charges has been
Development
121% 10% fluctuating. Hence a nominal rate of
Charges
13% has been assumed.
City As CDS is related to the area of the
Development NA 3% property, nominal increase of 3% has
Surcharge been assumed
354% increase seems very higher for
Other non-
354% 5% projection hence 5% increases with
tax income
2008-09 as base.
Source: Analysis based on past financials provided by Kolar Municipal Council
13.8.3 Assumptions for other sources of Revenue Expenditure
The Operation and Maintenance Expenditure under both the scenarios will
remain the same as in both the cases. The assumptions for revenue
expenditure projection for five years are presented below.
Current Revenue Expenditure
The administration expenses like Salary expenses for Councilor, others in

administrative department, have been assumed to be growing at 10%.
Under Public conveniences and facilities fire fighting and street lighting are
assumed the growth rate of 7% and 10% respectively as the financial
information is available only for two years.
Under Water Works Department, Purchases and Maintenance have been
assumed to be growing at 5%.
Under the public health and facility the expenses for the basic services like
water supply, sanitation and other facilities has been projected as 7%. There
shall be significant efforts shall be made in order to reduce the operating
expenses of the services by conducting the energy audits etc.,
The expenses the public works shows the inconsistent trend hence assumed
the projection of 10% with the scale of the operations.
The expenses for community and public education which includes the slum
up gradation and social security have been assumed to be increasing at 5% growth
per year.
Table 13-28 : Assumption for Revenue Expenditure

Projected
Particulars CAGR-(%) Growth
Rates (%)
General administration and collection 49% 10%
Public conveniences and facilities (fire Inconsistent Trend 10%
fighting & street lighting)
Public health and facilities 25% 7%
(water supply, sanitation, other facilities)
Public works (Roads, Drains and Buildings) Inconsistent Trend 5%
Community and public education Inconsistent Trend 5%
Source: Analysis based on past financials
13.9 Capital Expenditure And O&M For New Projects

The cost of capital works sector-wise have been elaborated in earlier sections.
The projects for Kolar Municipal Council has been worked out based on
estimated demand supply analysis of various physical and social infrastructure
requirements of the city and feedback of stakeholders consultation on the citys
needs for the next 5 years. The projects identified are vital for meeting the
basic requirements of the town as per the infrastructure standards. In the
event of the town not undertaking the project, the key problems would be poor
infrastructure resulting in poor service delivery and loss of potential revenue
from new revenue streams like UGD. To overcome these issues the framework
for FOP is developed taking into account existing strengths of the town and also
reducing the inefficiencies in the system.
Phasing of the identified projects is done based on demand supply gap analysis,
project prioritization based on stakeholder consultation and financial
sustainability for taking up the projects. The summary of capital costs for the
first phase i.e 2011-12 to 2015-16 and the phasing is presented below:
Table 13-29 : Capital Expenditure in the first phase in Rs lakhs

Total
Sector 2011-12 2012-13 2013-14 2014-15 2015-16
Investment
Water Supply 2860.23 2911.23 0.00 0.00 0.00 5771.46
Sewerage &
Sanitation 1633.76 1633.76 0.00 0.00 0.00 3267.52
Storm Water
Drainage 146.69 146.69 146.69 146.69 146.69 733.47
Solid Waste
Management 69.72 65.22 69.72 65.22 89.72 359.62
Roads, Traffic
and
Transportation 139.35 153.35 488.45 100.85 592.91 1474.89
Street Lighting 96.14 83.39 24.56 24.56 24.56 253.19
Socio-Economic
Infrastructure 83.50 33.50 88.50 33.50 133.50 372.50
Slums & Urban
Poverty 300.26 300.26 300.26 0.00 0.00 900.78
Sub total 5329.65 5327.40 1118.18 370.82 987.38 13133.43
Assuming contingency of 5% of project cost and cost escalation at the rate of

3% year on year the total project cost is Rs. 14034.62 lakhs.
The Operation and Maintenance Expenditure for the new projects have been
assumed as % of the project cost. The O&M expenditure for the period between
2011-12 and 2015-16 for new projects is presented below:
Table 13-30 : O&M Expenditure for new projects in Rs. Lakhs
O&M as % of
Sector - Physical 2011- 2012- 2013- 2014- 2015-
Capital
Infrastructure 12 13 14 15 16
Expenditure
Water Supply 6% 0.0 0.0 346.3 363.6 381.8
Sewerage & Sanitation 4% 0.0 0.0 130.7 137.2 144.1
Storm Water Drainage 4% 0.0 5.9 12.0 18.3 24.9
Solid Waste
10% 7.0 13.8 21.5 29.1 39.5
Management
Roads, Traffic and

3% 0.0 4.2 9.0 24.1 28.3
Transportation
Street Lighting 3% 2.9 5.5 6.5 7.6 8.7

Total 9.9 29.4 526.0 580.0 627.4
The O&M expenditure for social infrastructure is assumed to be met by the
revenues from the same.
13.10 Sustainability of Municipality without Implementation

of Reforms
As seen in 18.1 above the surplus generated by Municipal Council for the period
between 2011-12 and 2015-16 is only Rs. 801.73 lakhs. The sustainability of
the Municipal Council to undertake new projects is as under:
Table 13-31 : Sustainability without Reforms
Sustainability under "No Reform" Scenario Value Units

Total project cost for phase-I 14034.62 Rs. Lakhs
O&M for the new projects for five years 1772.61 Rs. Lakhs
Five year net revenue surplus of Kolar Municipality
801.73 Rs. Lakhs
under"base case scenario"
Sustainability of project cost under "No Reform" % of project
-6.92%
scenario cost
Without implementation of Reforms Kolar Municipality will not be able to sustain

the Operation and Maintenance expenditure of new projects proposed.
13.11 Financial Operating Plan (FOP) Considering Reform

Measures
This FOP is based on a whole range of assumptions related to income and
expenditure. These are critical to understand the financial projections worked
out, sustenance of the projected increase in revenue and expenditure under
various scenarios and surplus thus generated. The assumptions would help in
understanding the extent of investment sustenance for future projects
envisaged. On the basis of two year financial information the projection for the
income and expenditure has been calculated under No Reform scenario for
the financial sustainability of the urban local body.
From the above, it is clear that the ULB need to undertake reforms for
sustainable operations. Hence, two levels of reforms have been considered viz.
Partial Reforms and Full Reforms.
Scenarios Details
Implementation of all the projects with partial
Partial Reforms Scenario
implementation of Reforms
Implementation of all the projects with complete
Full Reforms Scenario
implementation of Reforms
The key reforms are highlighted in the Table below. The total reforms
suggested have been elaborated in the chapter, Reforms and Resource
Mobilization
Table 13-32: Key Reforms
Particulars Current practice Reform suggested
Revision in Property tax Adhoc revision 15% increase in every 3
rates years
Service level coverage 3% coverage at present 85% coverage by 2015-16
(water supply - no. of
assessments)
Revision in initial deposit for No fixed fee Rs.4000 as advance for
New Water Connections water connection with 15%
increase every 3 years for
each new connection
Revision in Water Charges No water tax at present. Rs. 60 per month with 15%
Water charges collected increase every 3 years
for water supplied
through tankers
Revision in Initial Deposit for No UGD currently Rs.4000 as advance deposit
New UGD Connections with 15% increase every 3
years for each new
connection
Revision in monthly user No UGD currently Rs. 60 per month with 15%
charges for UGD increase every 3 years
Revision in User charges Rs.120 collected per 15% increase every 3 years
towards Sanitation, Street annum. Adhoc revision
Lighting and Fire Fighting
13.11.1 Partial Reforms Scenario

In the Partial Reforms Scenario the present levels of collection efficiency and
lower tax rates for water supply and sewer are considered. Similarly advanced
deposit charges for water and sewer connections are not considered. The
collection efficiency of about 60% has been considered in this case. Reform
measures towards direct cost recovery and collection efficiency upto 85% are
not considered in this case. Routine revenue expenses including Operations and
Maintenance of existing assets and new assets created have also been
considered and loaded to the FOP. Revenue surplus thus generated indicates
Councils capacity to service the usual capital expenditure in the normal course
of running its operations.
13.11.2 Full Project with Reforms Scenario

In the Full Project with Reforms scenario advance deposits for water and
sewer connections as per practices prevalent in other municipalities of similar
profile are considered. Similarly water and sewer taxes prevalent in other
municipalities of similar profile have been considered. The collection efficiencies
are assumed to gradually improve to the level of 85% over the period of five
years. The implications on the investment and borrowing capability of the
Council for all the identified projects are worked out.
13.11.3 Revenue Income

In case of taxes and non-tax revenue such as property taxes, water charges
and sewerage charges where the base and basis of revenue is fairly well known
and predictable, the likely revenue is forecast based on certain assumptions
regarding growth in number of assessment, revision in average revenue per
property (for property taxes), revision in charges/Tariffs (water charges and
sewerage). The assumptions with regard to forecasting income from property
tax, water charges and sewerage charges are presented below.
Property Taxes
Table 13-33 : Key assumptions for forecasting income from Property Taxes
Description Current Level Base Case Scenario Investment Scenario
Annual Growth in No data available Projected based on Projected based on
Number of the annual CAGR + the annual CAGR +
Assessment 1% of the projected 1% of the projected
property assessment property assessment
for un-assessed for un-assessed
Properties Properties
Property Tax 1% of rental value Rs. 650 with an Rs. 650 with an
charges for residential and increase of 15% every increase of 15% every
2% for 3 years 3 years
commercial
properties
Description Current Level Base Case Scenario Investment Scenario

Periodic 15% increase in every 15% increase in every
Increase in 3 years 3 years
Average ----
Revenue per
property (%)
Water Charges
Table 13-34 : Key assumptions- forecasting income from Water Charges
Partial Full Reforms

Current
Description Reforms Scenario
Level
Scenario
% OF WATER CONNECTIONS TO PROPERTY TAX ASSESSMENT
2008-09 3%
By 2015-16 85% 85%
INITIAL DEPOSIT FOR NEW WATER SUPPLY CONNECTIONS ( Rs. per
connection)
Domestic (Rs.)
From 2008-09 till 2011-12 Rs.550
From 2012-13 Rs.2000 Rs.4000
15% increase 15% increase every 3
Increase
every 3 years years
Non-Domestic (Rs.) Nil Rs.4000 Rs.7000
Rate of increase every 3 years years
WATER CHARGES (per month)

Domestic (Rs.)
2008-09 Nil
After Water Supply scheme
Rs. 30 Rs. 60
implementation
Rate of increase
every 3 years years
Non-Domestic (Rs.)
2008-09 Nil
After Water Supply scheme
Rs.45 Rs.90
implementation
Rate of increase
every 3 years years
Sewerage Charges
Table 13-35 : Key assumptions forecasting income from Sewerage Charges

Partial
Current Full Reforms Scenario
Description Reforms
Level
Scenario
85% of Total
Number of 85% of Total Number of
Number of UGD Connections Nil
Property tax Property tax assessment
assessment
Assumed Ratio of Domestic
and Non-Domestic to the total Nil 90:10 90:10
UGD Connections
MONTHLY USER CHARGES
(Note: Monthly User charges would be collected after the UGD Project is completed)
Domestic (Rs./Month.)
2008-09 Nil
After Sewer scheme
Rs.30 Rs.60
implementation
Rate of increase
every 3 years years
Non-Domestic (Rs./Month.)
2008-09 Nil
After Sewer scheme
Rs.45 Rs.90
implementation
Rate of increase
every 3 years years
DEPOSIT FEE /CONNECTION
Domestic (Rs.) Nil Rs.2000 Rs.4000
Rate of increase
every 3 years years
Non-Domestic (Rs.) Nil Rs.4000 Rs.7000
Rate of increase
every 3 years years
13.12 Partial Reform Scenario
In the Partial Reforms Scenario, the finances of Council are forecast for the
next 5 years considering about 60% collection efficiency for Water Supply,
Sewer and Property Tax. The rates of taxes and deposits are also assumed to
be less compared to Full Reforms Scenario. Revenue surplus thus generated
indicates Councils capacity to service the usual capital expenditure in the
normal course of running its operations The revenue surplus position of the
Council over the next 5 year period upto 2015-16 is presented below.
Table 13-36 : Financial Operating Plan for Partial reforms Scenario (Rs. In Lakhs)
Sr 2009- 2010- 2011- 2012- 2013- 2014- 2015-

No Particulars 10 11 12 13 14 15 16
i Income
A Municipal Taxes and rates
City Development
1 Surcharge 47.52 57.1 67.22 73.56 75.77 82.63 85.11
2 Property Tax
a Arrears 106.2 111.5 127.8 141.3 148.4 170.1
101.15
b Current 0 1 3 9 5 8
3 Integraged tax 24.72 25.96 34.55 34.83 36.65 43.56 44.45
108.5
31.28 34.41 37.85 41.64 82.01 94.73
4 Water Tax 1
5 Other taxes 5.45 5.99 6.59 7.25 7.97 8.77 9.65
Receipt under
B special acts 0.02 0.02 0.02 0.02 0.02 0.02 0.02
C Income from other sources-(non tax income)
Water Deposits & 254.6 199.9
0.00 0.00 22.73 27.45 28.82
1 other fees 9 1
Building
construction 10.24 11.27 12.39 13.63 14.99 16.49 18.14
2 permission fees
Development
51.27 56.40 62.04 68.24 75.07 82.57 90.83
3 charges
Other non tax
21.06 22.12 23.22 24.38 25.60 26.88 28.23
4 income
D Grants & aids/contribution
103.0 104.2 105.4 106.5 107.7 108.9
101.92
1 Octroi 7 3 0 8 8 9
Road
103.9 114.3 125.7 138.3 152.1
construction/Repa 85.88 94.46
1 0 3 1 4
2 irs/ Special
3 Basic 52.50 55.13 57.88 60.78 63.81 67.00 70.36
State finance
20.02 20.02 20.02 20.02 20.02 20.02 20.02
4 commission
12th finance
27.90 30.69 33.75 37.13 40.84 44.93 49.42
5 commission
Community
113.7 125.1 137.6 151.4 166.5 183.2
participation/MP/ 103.42
6 4 5 2 6 2
6 MLA fund
Slum
102.0 112.3 123.5 135.8
development/Slu 76.70 84.37 92.81
9 0 3 8
7 m housing project
8 Water Crisis 30.25 33.28 36.60 40.26 44.29 48.72 53.59
Social
Security/Old age
pension/National 31.86 33.45 35.12 36.88 38.72 40.66 42.69
Family Pension
9 scheme
10 Other grant and 48.26 50.67 53.20 55.86 58.66 61.59 64.67
Sr 2009- 2010- 2011- 2012- 2013- 2014- 2015-

No Particulars 10 11 12 13 14 15 16
aid
E Miscellaneous
1 Others 3.3 3.46 3.63 3.82 4.01 4.21 4.42
Extraordinary and
F loans 23.64 24.82 26.06 27.36 28.73 30.17 31.67
108.5
G Sewer Tax 0.00 0.00 0.00 0.00 82.01 94.73
1
Sewer Connection 254.6 199.9
H 0.00 0.00 22.73 27.45 28.82
Deposit 9 1
935.8 1011. 1098. 1181. 1256. 1332.

Total Income 959 1 1 6 6 3 2
ii Expenditure
General
administration and
A collection 36.32 39.95 43.95 48.34 53.18 58.5 64.35
B Public conveniences and facilities
a fire fighting 7.51 8.04 8.60 9.20 9.85 10.54 11.27
106.8 117.5
66.34 72.98 80.27 88.30 97.13
b Street lighting 4 3
Public health and
C facilities
153.1 163.8 175.3 187.6 200.7 214.7
143.12
a water supply 4 6 3 1 4 9
111.8 119.7 128.0 137.0 146.6 156.9
104.55
b sanitation 7 0 8 4 4 0
c other facilities 19.2 20.54 21.98 23.52 25.16 26.92 28.81
D Public works
288.7 288.7 288.7 288.7 288.7 288.7
288.79
a Roads and drains 9 9 9 9 9 9
b Buildings
Community/ public
E education
a Slum upgradation
Pension(Social
22.55 23.68 24.87 26.11 27.41 28.79 30.22
b security)
Other community
24.71 25.94 27.24 28.60 30.03 31.53 33.11
c facilities expenses
F Miscellaneous 42.22 46.44 51.08 56.19 61.81 67.99 74.79
Extraordinary and
23.32 24.49 25.71 27.00 28.35 29.76 31.25
G Loans
Additional O&M
Expenditure due
H to new Projects 0 0 0 0 0 0 0
Total 1022. 1079.
794.54 833.3 875.3 920.6 969.6
Expenditure 65 99
Surplus/ Deficit 103.81 125.1 660.2 588.5 388.0 453.1 529.3
13.12.1 Sustainability under Partial Reform Scenario

As seen above, the total revenue surplus of Municipal Council under Partial
Reform scenario for five years upto 2015-16 is Rs. 2619.25 lakhs. This
revenue surplus can sustain 6.03% of the total project cost envisaged. The
sustainability under this scenario is presented below.
Table 13-37 : Sustainability under partial reforms scenario
Sustainability under "Partial Reforms" Scenario Value Units

Five year net revenue surplus of Kolar Municipality 2619.25 Rs. Lakhs
Sustainability of project cost under "Partial Reforms" % of project
6.03%
scenario cost
13.13 Full Reforms Scenario
In the Full Reforms scenario, the finances of Council are forecast for the next
5 years considering about 85% collection efficiency achievement gradually over
a period of five years for Water Supply, Sewer and Property Tax. The rates of
taxes and deposits are taken based on charges prevalent in towns of similar
profile elsewhere in the country. The Full Project scenario envisages public
contribution substantially for water supply and sewer and also direct cost
recovery to the extent of Revenue surplus thus generated indicates Councils
capacity to service the usual capital expenditure in the normal course of
running its operations The revenue surplus position of the Council over the next
5 year period upto 2015-16 is presented below.
Table 13-38 : Financial Operating Plan for Full reforms Scenario (Rs. In Lakhs)
Sr. 2009- 2010- 2011- 2012- 2013- 2014- 2015-
No Particulars 10 11 12 13 14 15 16
i Income
A Municipal Taxes and rates
City Development
1 Surcharge 47.52 57.1 67.2 73.56 75.77 82.63 85.11
2 Property Tax
a Arrears 101.1 106.2 128.5 149.9 157.8
138.23 179.60
b Current 5 0 7 6 2
3 Integraged tax 24.72 25.96 34.55 34.83 36.65 43.56 44.45
106.6 129.1
0.00 0.00 0.00 0.00 153.72
4 Water Tax 2 7
5 Other taxes 5.45 5.99 6.59 7.25 7.97 8.77 9.65
Reciept under
0.02 0.02 0.02 0.02 0.02 0.02 0.02
B special acts
C Income from other sources-(non tax income)
1 Water Deposits & 0.00 0.00 497.8 390.74 44.42 53.65 56.32
Sr. 2009- 2010- 2011- 2012- 2013- 2014- 2015-

No Particulars 10 11 12 13 14 15 16
other fees 1
Building construction
10.24 11.27 12.39 13.63 14.99 16.49 18.14
2 permission fees
Development
51.27 56.40 62.04 68.24 75.07 82.57 90.83
3 charges
Other non tax
21.06 22.12 23.22 24.38 25.60 26.88 28.23
4 income
D Grants & aids/contribution
103.0 104.2 106.5 107.7
105.40 108.99
1 Octroi 7 3 8 8
Road construction/ 103.9 125.7 138.3
85.88 94.46 114.30 152.14
2 Repairs/ Special 1 3 1
3 Basic 52.50 55.13 57.88 60.78 63.81 67.00 70.36
State finance
20.02 20.02 20.02 20.02 20.02 20.02 20.02
4 commission
12th finance
27.90 30.69 33.75 37.13 40.84 44.93 49.42
5 commission
Community
103.4 113.7 125.1 151.4 166.5
participation/MP/ML 137.65 183.22
2 6 4 2 6
6 A fund
Slum
112.3 123.5
development/Slum 76.70 84.37 92.81 102.09 135.88
0 3
7 housing project
8 Water Crisis 30.25 33.28 36.60 40.26 44.29 48.72 53.59
Social Security/Old
age
pension/National 31.86 33.45 35.12 36.88 38.72 40.66 42.69
Family Pension
9 scheme
10 Other grant and aid 48.26 50.67 53.20 55.86 58.66 61.59 64.67
E Miscellaneous
Stamp duty
1 collections
2 Others 3.30 3.46 3.63 3.82 4.01 4.21 4.42
Extraordinary and
23.64 24.82 26.06 27.36 28.73 30.17 31.67
F loans
106.6 129.1
Sewer Tax 0.00 0.00 0.00 0.00 153.72
2 7
Sewer Deposit 497.8
0.00 0.00 390.74 44.42 53.65 56.32
G Income 1
867.0 924.0 2018. 1878.8 1483. 1637. 1793.1
Total Income 6 7 38 5 23 88 7
ii Expenditure
General
administration and
A collection 36.32 39.95 44 48.34 53.18 58.5 64.35
B Public conveniences and facilities
a fire fighting 7.51 8.04 8.60 9.20 9.85 10.54 11.27
b Street lighting 66.34 72.98 80.27 88.30 97.13 106.8 117.53
Sr. 2009- 2010- 2011- 2012- 2013- 2014- 2015-

No Particulars 10 11 12 13 14 15 16
4
C Public health and facilities
200.7
a water supply 143.1 153.1 164 175.33 187.6 4 214.79
146.6
b sanitation 104.5 111.9 120 128.08 137 4 156.9
c other facilities 19.2 20.54 22 23.52 25.16 26.92 28.81
D Public works
288.7 288.7 288.7 288.7 288.7
288.79 288.79
a Roads and drains 9 9 9 9 9
b Buildings
E Community/public education
a Slum upgradation
Pension(Social
22.55 23.68 24.87 26.11 27.41 28.79 30.22
b security)
Other community
24.71 25.94 27.24 28.60 30.03 31.53 33.11
c facilities expenses
F Miscellaneous 42.22 46.44 51.08 56.19 61.81 67.99 74.79
Extraordinary and
23.32 24.49 25.71 27.00 28.35 29.76 31.25
G Loans
794.5 833.3 875.3 969.6 1022. 1079.9

920.63
Total Expenditure 4 5 0 5 65 9
1143. 513.5 615.2

72.53 90.72 958.22 713.18
Surplus/ Deficit 08 9 3
13.13.1 Sustainability under Full Reform Scenario
As seen above, the total revenue surplus of Municipal Council under Full
Reform scenario for five years upto 2015-16 is Rs. 3943.31 lakhs. This
revenue surplus can sustain 15.47% of the total project cost envisaged. The
sustainability under this scenario is presented below.
Table 13-39 : Sustainability under full reform scenario
Sustainability under "Full Reforms" Scenario Value Units
Five year net revenue surplus of Kolar Municipality 3943.31 Rs. Lakhs
Sustainability of project cost under "Full Reform"

15.47% %
Scenario
13.14 Funding Option for Kolar Municipality
Based on the assessment of Kolar Contribution as

Funding Option
Municipality under three scenarios viz. % of project cost
Without Reforms, Partial Reforms and Central Govt. 80%
Full Reforms it can be seen that even State Govt. 10%
with partial implementation of Reforms Kolar Municipality 10%
the Municipality can sustain about 15%
of the project cost. Hence, on a conservative level, the following funding option
can be adopted for Kolar Municipality.
13.15 Optimal Financial Operating Plan for Kolar Municipality
The financial sustainability analysis has been carried out for the Municipal
council under Business as Usual and Full Project with Reforms scenario. The
proportion of the project cost which the ULB can support under each of the
scenarios is arrived at.
Table 13-40 : Optimal financial operating plan for Kolar
Financial
Operating Plan
2011-12 2012-13 2013-14 2014-15 2015-16 Total
under Full
Reform Scenario
Project Cost 5000.30 5380.65 782.41 1118.18 370.82 12652.36
Contingency 250.02 269.03 39.12 55.91 18.54 632.62
Cost escalation 150.01 327.68 72.55 140.34 59.06 749.64
Sub-total 5400.33 5977.36 894.08 1314.43 448.42 14034.62
Funding
Central
Government 4320.26 4781.89 715.26 1051.54 358.74 11227.70
contribution @80%
State Government
540.03 597.74 89.41 131.44 44.84 1403.46
contribution @10%
Municipality
contribution
including public
540.03 597.74 89.41 131.44 44.84 1403.46
deposits for Water
Supply and Sewer
scheme @10%
Financial
Operating Plan
Surplus of
1143.08 958.22 513.59 615.23 713.18 3943.31
Municipality
Less contribution
of Kolar
540.03 597.74 89.41 131.44 44.84 1403.46
Municipality
towards projects
Less O&M due to
9.86 29.42 526.00 579.96 627.38 1772.61
new projects
Financial
Operating Plan
2011-12 2012-13 2013-14 2014-15 2015-16 Total
under Full
Reform Scenario
Opening Balance 0.00 593.20 924.26 822.44 726.27
Net Surplus/
593.20 331.07 -101.82 -96.17 40.96 767.23
Deficit
Closing Balance 593.20 924.26 822.44 726.27 767.23
From the above it is clear that the Municipal council will be able to fund 10% of
the project cost and also meet its O&M obligation under Full Reforms
scenario. Since public contribution is envisaged in funding water supply and
sewer scheme, PPP model can be considered for implementation and O&M.
Proven model that can be considered is the Water Supply Scheme under PPP
implemented in Khandwa town in Madhya Pradesh. The project cost of
Khandwa water supply scheme is Rs. 106.72 Crores of which the Central and
the State Government contributions are 80% and 10% respectively. The
remaining 10% is to be borne by the Concessionaire viz. Vishwa Infrastructure,
Hyderabad. The O&M shall be the responsibility of the Concessionaire and the
Concession period is 25 years.
13.16 Alternative funding options for the identified projects
Kolar Municipal Council has limited financial resources for funding the projects
identified. The Municipal Council may not be able to avail funds for all the
projects identified. Hence alternative funding sources need to be identified. The
possible funding alternatives are presented below:
13.16.1 Loans and Internal Accruals
Maximum surplus generated by Kolar Municipal Council is Rs. 127.28 Lakhs.

Considering Debt Service Coverage Ratio 0f 1.25, the maximum loan which can
be raised by the Council is Rs. 300 Lakhs. Hence, fund raising capacity of Kolar
Municipal Council through loans is limited in the present scenario.
With the implementation of reforms, if the internal accruals and the debt
repayment record of Kolar Municipal Council improve, then further loans can be
availed on the strength of the new projects to be implemented.
13.16.2 Pooled Financing Mechanism
Tamilnadu Urban Development Fund (TNUDF) and Karnataka Urban

Infrastructure Development Finance Corporation (KUIDFC) are two entities
which brought out an innovative funding mechanism for projects i.e. Pooled
financing. Pooled Financing are of two types (i) a blind pool, where a bond
bank raises sufficient funds based on its own credit rating and then on lends to
the local body; and (ii) a project-specific pool, where several projects are
pooled and lumped together in a bond issuance, thereby significantly reducing

transaction costs and improved pricing. Tamilnadu Fund used the second
arrangement, wherein 14 Urban Local Bodies of the state pooled some water
and sanitation projects under a special purpose vehicle called the Water and
Sanitation Pooled Fund (WSPF) and raised about Rs. 300 million from the bond
market at an interest of 9.2% in the year 2002.
Similar funding mechanism can be considered for less credit worthy borrowers
like Kolar Municipal Council which has a poor debt repayment record.
`Nodal Agency/ State Government Agencies Funding

Municipal Councils like Kolar with their limited financial resources are not in a
position to fund ROBs and flyover projects. ROBs in certain places are taken up
by the railways and flyovers and other roads by the state PWD.
Low cost sanitation projects can be funded by NGOs and State Government
with the Municipal council contributing to a portion of the cost and acting as a
facilitator in implementation.
13.16.3 Public Private Partnership (PPP)
Public Private Partnership projects are gaining importance in recent years even
with smaller municipalities. Parking lots, solid waste management, hospitals
and even slum redevelopment programmes are implemented under PPP
wherein the private sector develops the facility, operates for a specified
concession period and transfer the facility back to the local body. Though large
scale participation of private sector is lacking in water supply schemes,
Chandrapur Municipal Corporation has implemented water supply scheme under
PPP.
Tertiary Water Treatment of Sewage in Surat
Surat Municipal Corporation has adopted the PPP route for setting up of a
tertiary sewage treatment plant to treat secondary treated water from Bamroli
Sewage Treatment Plant to supply Industrial Grade Water to Pandesara
Industrial Estate and Surat Municipal Corporation on Design Build Finance
Operate and Transfer (DBFOT) basis for a concession period of 20 years under
PPP.
Water Distribution in Chandrapur
The objective of the project was to reduce huge water losses, to the tune of
around Rs 1.83 crores) every year, and increase coverage and service delivery
efficiencies to the 3,00,000 population of Chandrapur town. Water distribution
for the local community was therefore handed over to the private sector
participant i.e M/s Gurukripa Associates & Contractors Pvt. Ltd. in 2004
successfully. Both distribution of water to existing users as well as the
maintenance of the Filter Plant was entrusted to the private player.
Additionally, the private player was required to:
Lay one km additional line every year thus expanding distribution

All the employees would be the private company's own employees
(Chandrapur Municipal Corporation(CMC) was short of manpower at the
time and would therefore place their own manpower at other places in the
corporation requiring additional deployment)
Technical supervision to be done by the CMC Nodal Engineer with a
regular program of inspection of the filter plant, every 3 to 4 days
The initial investment of the project was Rs 3.0 Crs. The private party
injected Rs 50 lacs and raised another Rs 2.5 crs by selling 50% equity on
a premium. The revenue sharing arrangement for the private player was -
Private player to collect tariff charges
Revenue sharing arrangement, such that private player makes a total
payment of Rs 1.59 Cr. to the municipal corporation in 10 years
Private player allowed to increase tariff charges by 10% every 3 years
The private party initially planned on a break-even in the third year of

operations but due to steep rise in electricity charges (35`% increase in three
years) the breakeven was delayed by a year. The operational efficiencies after
appointment of the private sector participant is highlighted below:
Table 13-41 : Operational Efficiencies after appointment of Private Sector
Before appointment of
the private sector After appointment of the private sector participant
participant
Leakages-the main Leakages removal through technological solution
problem (56 leakages to
main water supply line)
Low discharge Replacement of rusted pipes (about 50 km)
Replacement of Pipelines leading to improved carriage
capacity and extending water supply to additional
households
Low pump efficiency Oil lubrication system of pumps modified to water
(repairs at every 3-4 lubrication and preventive maintenance initiated
months)
Pump breakdown and repairs frequency changed from
about quarterly to almost nil
Breakdown time brought upto 24-48 hours from one
week
Low water tax collections Streamlining of water tax collection system with improved
quality of supply.
Recovery % of water tax improved from 60% to 95%
No of complaints reduced from 100 to 10
More complaints from Per capita supply of water increased from 70 lpcd to 135
users lpcd
The private player has received requests from other
neighbouring cities to run this pilot there also.
Before appointment of
the private sector After appointment of the private sector participant
participant
Even where the private company was not required to
expand coverage (in a year), consumers started coming
to the private player on their own with offers to fund the
cost of laying distribution pipelines themselves if the
private party would distribute water to them also.
Development of Parking Lots under PPP
Brihanmumbai Municipal Corporation (BMC) has developed a multi-storied

mechanized parking lot on a PPP basis at Bhulabhai Desai Road, Mumbai
BMC is also in the process of developing seven mechanised parking lots at
Dadar, Borivali, Kurla, Powai, Matunga on PPP basis
Jaipur Municipal Corporation has commissioned a study for development
of parking lots under PPP at 5 sites in Jaipur
Other PPP projects
Municipal Solid Waste management projects under PPP have been

implemented in Delhi, Bangalore, Chennai, Jodhpur and Sirsa
Bus terminals at Dehradun, many cities in Gujarat and Amritsar on PPP
Thriupur water supply and sewer project on Build Own Operate and
Transfer basis - Water supply infrastructure to draw raw water and
distribute for industrial and demestic users
Alandur underground sewerage scheme Public participation in the
scheme by financial contribution in the form of upfront payment for
service connections
Desalination Plant at Chennai to treat 100 MLD sea water by reverse
osmosis on Design Build Own Operate and Transfer basis for 25 years.
The above projects highlight the importance of private sector involvement in

implementation of various projects. The number PPP projects till date under
JNNURM in various sectors are as follows:
Table 13-42 : PPP Projects implemented under JNNURM

Cost
Sector Number
(Rs. Crores)
Water Supply 3 (Project related) 246.61
Sewerage 1 (Project related) 31.47
Solid Waste Management 17 (Operation and Maintenance) 873.91
MRTS 1 (Project related) 476.15
Source: JNNURM
PPP projects bring in the much required funds for the project, reduce project
delays, and improve operational efficiencies and quality of service delivery.
Further, municipal councils should not be involved in maintenance of parks,
schools, hospitals; recreational facilities as these facilities can be developed on
commercial formats successfully with private sector participation and the
councils shall focus its efforts towards provision of basic infrastructure facilities.
With PPP gaining importance even in the provision of basic infrastructure, the
municipal councils shall play the role of facilitator in implementation of these
projects.
Town Planning Schemes
Gujarat Model of land pooling for implementation of infrastructure projects

has helped the state to achieve urbanization at a faster rate than the rest of the
states in the country. While the urban development Acts in the rest of the
country focus on direct acquisition of land from owners, the Gujarat Town
Planning and Urban Development Act, 1976, lays down the town planning or TP
scheme procedure for land acquisition. Under the TP scheme, 40 per cent of
the land in the area earmarked for infrastructure development is pooled in
from land owners. The rest 60 per cent of land remains with the owners, which
they are allowed to sell or else develop in accordance with the urban
development scheme. In this way, land owners are not forced to sell land to the
urban development authority at cheap rates. As land prices shoot up,
sometimes by 10-20 or even 100 per cent, with the development of
infrastructure in the area, owners are not averse to pooling in 40 per cent of
their land. According to authorities, there have been instances where entire
villages have approached the AUDA for including their land under a TP scheme.
From the 40 per cent land pool, 20 per cent is earmarked for development of
road network, five-eight per cent for garden and lake developments, another
five-eight per cent for construction of houses for economically weaker sections,
and the remaining five-eight per cent is auctioned by the urban development
authority. Money raised from the auctioned land helps cover infrastructure
development expenses like the cost of laying of roads, gardens, lakes, flyovers,
etc.
Other sources of project funding
The municipal council can leverage its land assets for implementation of
projects through private sector participation. Alternatives include granting
higher Floor Space Index, Transfer of Development Rights for raising
funds for projects. However this depends on the real estate demand in the
region
Energy Efficiency Projects especially in Street lighting and Solid waste
management and waste recovery are eligible for availing carbon credits
(Certified Emission Reductions) which are tradeable. However, the
projects should be large enough for application for CERs under Clean
Development Mechanism
13.17 Supervision of capital works and maintenance
13.17.1 Appointment of Project Management Consultants for

Implementation
Kolar Municipal Council lacks trained manpower to carryout supervision of the

projects and monitoring of the quality of work within the stipulated costs and
without delays is a challenge. Appointment of Project Management Consultants
for monitoring of the projects is essential.
13.17.2 Turnkey contracts with minimum years of operation

obligation
With the Municipal councils lacking skilled staff in design, execution and
operation and maintenance, project contracts can be structured as turnkey
contracts with the contractor be made responsible for design, construction and
operation and maintenance for a specified number of years, say, 5 years.
During the O&M phase, the contractor can train the municipal council
employees to undertake O&M in subsequent years.
13.17.3 Induction of Technical staff
Induction of trained and skilled manpower is essential in municipal councils as

they are responsible for service delivery of basic infrastructure facilities Water
Supply, Sewer, Roads etc. In Kolar Municipal Council there are no skilled staffs
for each sector and the City Engineer is the only technical person with a
planning background. Training also needs to be imparted to the staff of the
municipal council in technical areas, administration, use of IT tools and
Management Information Systems.
13.17.4 Outsourcing of municipal functions
To maintain a lean organization, Municipal councils can outsource some of its

functions for a fixed consideration. This improves efficiency and reduces the
burden on the municipal council. Some of the areas where outsourcing of
functions is practiced are:
Street lighting
Solid waste management
O&M of parks
Accounting
Even O&M for water treatment and distribution systems, sewer treatment and
distribution systems, tax collection can also be outsourced to improve efficiency
and ensure effective service delivery.
14 Urban Reforms and Resource

Mobilization
Urban reforms are the main focus of good governance and service delivery to
the inhabitants of the urban area. Several initiatives and reforms have been
taken up at the national level and state level. These reforms need to be
replicated and implemented by the ULBs completely in a time bound manner.
Under the Urban Local Bodies level, reforms viz., E-Governance, shift to Accrual
based double entry accounting, property tax (85% coverage) and property tax
collection efficiency (90%) have been committed. 100% cost recovery for water
supply and solid waste services have been committed to be achieved in the
year 2020-21. Internal earmarking of funds for services to Urban Poor has been
done and provision of Basic services to urban poor has been committed to be
achieved in the year 2012. Public Private Partnership should be encouraged
through outsourcing in solid waste management, street light maintenance, STP
maintenance and hiring of vehicles. Few of the suggested reforms have been
implemented to some extent though at the ULB level further refinement and
qualitative implementation needs to be carried out.
Implementation of Reforms is critical for achieving self sustainability for the

ULB and hence mandatory and optional reforms need to be implemented in a
phased manner within the scheme period. Some of the reform initiatives are
already underway in the ULB with assistance from the State Government. The
present status of the reforms is elaborated in this chapter.
14.1 Reforms and measures for Kolar Municipal Council

Financial and Accounting Reforms
Institutional reforms
E-Governance in Urban Local Bodies.
Reforms in physical infrastructure
14.1.1 Financial Reforms:
As a part of financial reforms, tax mobilization reforms in tax and non tax
collection needs to be taken up for improving the financial position of the
Corporation. The reform process of tax collection should be comprehensive and
should focus on structural and systematic changes so that the increase in
efficiency is sustained. This is vital for achieving self-sufficiency and improving
its financial health to make it possible for the ULB to undertake various projects
for the welfare of the people.
The revenue department of Kolar Municipal Council is responsible for collection

of various taxes and charges from its citizens including raising the demand for
key revenue items like property tax, Integrated tax, Development charges,
water charges etc., There is only one permanent sub-inspector heads the
revenue department and is supported by bill collectors who are temporary
workers.
Since, the Kolar Municipal Council has been recently formed in year 2006, the
assessment of properties under the Kolar municipal council jurisdiction, area of
5017.61 hectares and 21 municipal wards, still under the process. However the
water tax is collected in the form of charges collected for supply of water
through tankers to various wards.
There is need to record the arrears for the other taxes like integrated tax,
which is Rs.150 for all the properties levied combine towards street lighting, fire
fighting and sanitation.
from the financial analysis, the Kolar Municipal Taxes account for only 18% of
the total income of KMC for the year 2008-09. This is attributed to the non-
assessment of all the properties in the Municipal Council area, non imposition of
taxes for the services and poor service delivery.
14.2 Property Tax Reforms:
One of the most important reforms which is existent in major schemes is that
the corporation should strive for improving the property tax coverage ratio to
85% and collection efficiency to 90% within the scheme period. The process
should be comprehensive and should focus on structural and systematic
changes so that the increase in efficiency is sustained.
14.2.1 Present Status:
Property taxes are one of the important sources of revenue for Kolar
Municipal Council
accounting for more Figure 14-1 : Proper tax collection for KMC
than 52% of the total
municipal tax income. 2008-09 49.1 42.56
Arrears
The graph of the Current
property tax collection 2007-08 18.2 17.51
for the two years shows
that the ratio of arrear
0 20 40 60 80 100
collection to current
Property tax collection Rs. in lakh
demand collection for
the on an average is 53:47 for the last two years which shows that there is
a consistent delay in recovery of current year demand raised every year.
The assessment of properties is going on in order to incorporate them under

property tax levied under the Kolar municipal council jurisdiction.
Presently there is no computerization of property records.
Kolar Municipal Council will require the assistance of State Government

agencies in implementation of area based tax system, as the Municipal
Council staff is not equipped to implement the same.
Kolar Municipal Council will require the assistance of State Government

agencies in GIS based property mapping, migration to self assessment of
property tax.
14.2.2 Strategies and measures
Proper implementation of reforms is a pre-requisite for healthy revenue

generation. Healthy growth in number of assessments, updated tax demand,
periodic revisions and high collection efficiency is important for strong growth in
property tax collection.
Hence the following reforms have been suggested to bring about improvement
in property tax collection.
Table 14-1 : Suggested Property taxes Reforms

Mandatory Implementation of Revision of Property Tax once in every five years is
required.
Digitization of the property maps through GIS to identify un-assessed and under
assessed properties is required.
GIS based mapping system is advisable for each property identified on GIS
(Whether it is residential, commercial or industrial).
The above database can be crossed checked with the data from various
governmental authorities/sources such as Income Tax, Profession Tax, and
Mandatory Implementation of Revision of Property Tax once in every five years is
required.
Computerization of records of encroached properties, action taken, list of
encroachers through MIS would enable linking the same with GIS.
Making the payment of property tax more convenient for the assessees through
the use of various alternative modes can be explored through a decentralized
approach such as:
1. Through banks
2. Through Post Offices, Bus terminus, Kiosks et .
3. Through online payment through using internet.
4. Through ECS/ EFT
Using special schemes and incentives to encourage people to make the payment
of property tax before the lapse of the due date can be considered. Rebates can
be offered for advance payment of property taxes.
The Council can do more initiatives to increase the number of self assessed tax
payers by creating well awareness among the people themselves about the social
responsibility of paying tax in time.

Collection of arrears through innovative means such as community participation
and fast track litigation methods need to be attempted. Law enforcement powers
should be given to the Council to compel payment of taxes and other charges
levied by them.
Improve enforcement against defaulters by modifying byelaws with adequate
recourse to ULB within the current framework for enforcing disconnections on
defaulters.
PSP involvement in computerization, billing, collections and survey of properties
can be explored.
Rewarding collection efforts of the employees to encourage more aggressive
collection.
List of consistent major defaulters can be published in the notice board of the
Corporation office. This can be resorted in the case of extreme default.
Suitable legislation at state level to ensure that in the case of disputed property
tax the assessee should first pay the tax under protest and then can take the
necessary legal recourse as done in customs/excise duties can be considered.
Considering the future expansion of the council and its properties the possibility of
introducing additional collection centers to enable the citizens to pay the taxes can
be looked into.
Late payment of property tax after the grace period can be penalized with nominal
charges as being done in the case of insurance payments etc.
A possible approach for the reform process can be as follows: -
Figure 14-2 : A possible approach for the Property tax reform
The time schedule of implementation of the reform programme can be

accurately mapped out only after the detailed review of the property tax
collection process. The study of
I. Registration process
II. Assessment process
III. Bill Raising process
IV. Collection process
V. Follow up process
Will take a substantial amount of time and has to be properly structured. It is

advisable that Kolar Municipal Council uses the services of a consultant with
relevant expertise so as to ensure an objective and sustainable reform process.
With respect to the measures for improving the collection efficiency especially
in the property department, the following measures can be implemented: -
Using GIS and satellite imagery to digitize the property map of Kolar
Municipal Council. This will ensure that the property assessment is accurate
and speedy. Moreover the cost of processing the property tax dues will also
reduce drastically. This will also ensure that the assesses will not be able to
falsify their property details.
Implementing a scheme of Voluntary disclosure and payment of the overdue

payments, with an amnesty from penalties and interest.
Implementing a scheme of incentives for the collection department and the

employees based on their efficiency in collection from the territory under
their purview.
Exploring the option of outsourcing the assessment and /or the collection
activity to a private party. This alternative needs to take into consideration
the legal provisions governing the collection of property tax by the municipal
council, in other words we need to check whether such an arrangement is
allowed by legislation. Moreover a comprehensive structure of checks has to
be put into place before initiating such a relationship to ensure integrity and
accuracy in reporting and transaction.
Initiating alternative modes of payment of property tax by the assesses,

including: -
a. Online payment through
i. Credit card
ii. Bank Account
b. Payment in bank branches
c. Payment in mobile vans, with designated days for different areas
14.3 Accounting reforms:
The administrative section is responsible for maintenance of all income and

expenditure statements, payment, preparation and implementation of budget.
However the system of accounting is based on accrual accounting system since
the council established. Presently they do not have fully computerized accounts
department.
Table 14-2 : Suggested Accounting Reforms
There is need for the ULB to update it accounts to the latest year to provide a
complete, updated details on the financial health of the ULB. Hence accounts
needs to be finalized within the year itself instead of a year later as seen currently.
This would enable the ULB to identify the revenue gaps, financial commitments
and costs of various services and take remedial measures to regain its financial
health.
As a part of a larger accounting reform process at the State level, it is suggested
that the ULB can include disclosures in its Annual Accounts and other published
documents details on cost recovery of essential services through direct user
charges, indirect taxes and Environmental status report.
Above suggested information can be made available to the public through various
channels in simple effective language to facilitate substantial/full recovery of O&M
costs of the various essential services such as Water Supply, Solid Waste
Management, etc. e.g. Details on the website, distribution of pamphlets, Involving
S.H.Gs/NGOs/Woman Groups for spreading awareness, Public announcements
etc.
The awareness creation at various levels will increase the willingness to pay
actions of the citizens of the area.
The audited annual accounts can contain ULB Discussion and Analysis Report
(UDAR) providing a holistic view on the financial health, quality of service level
rendered, initiatives taken/proposed by the ULB to improve the city, areas of
concern, targets and action plan to achieve the same etc. This report along with
the Urban Performance indicators can provide a qualitative edge to the accounting
and financial reporting system that can go a long way towards achieving high
levels transparency, accountability and easy and smoother facilitation of the
reform process required. Thus the support from the stake holders of the city would
become easier if the awareness is created with these qualitative reports being
prepared and shared with the key stake holders of the city.
14.4 Institutional Reforms:
The Institutional reforms suggested for Kolar Municipal Council can be broadly
divided into the following heads:
Training and Capacity Building for administrative staff and elected officials
Private Sector Participation
User charges
E-Governance
14.4.1 Training and Capacity Building for administrative staff and

elected officials:
There is need to provide training for administrative as well as elected member

in the fields of HRD training, computer training imparting the all the clerks,
accounting training, and other training areas of solid waste management, water
supply and sanitation particularly for technical areas. The state government
should provide the necessary support in order to bring the capacity building for
the Kolar Municipal Council.
It is recommended that the periodicity of the training shall be coupled with
more qualitative in-depth focus on the type of training offered. This would
result in increased awareness among the administrative staff on various issues
there by enhancing their productivity and creating awareness about their
responsibility towards the public. For both elected and administrative members
educational and awareness tours can be organized to understand the best
practices in various services of other ULBs.
Consumer Grievance Redressal System (CGRS):

The consumer grievance Redressal system process assists the urban local
bodies in improving their services in the following manner:
Citizens municipal Council:
Consumers/ citizens voice their grievances and thus provide valuable feedback
to municipal council regarding the quality of services delivered.
Municipal Council citizens:
Besides addressing the complaints, the feedback given by consumer/ citizens

helps the municipal bodies to analyze the quality of their services and become
aware of any deficiency in their services. This helps in improving the efficiency,
accountability, responsiveness and transparency of municipal council. All this
will lead to improved service quality.
Figure 14-3 : Benefits of consumer grievance redressal system
Source: Framework for effective consumer grievance redressal system, MOUD, GOI
14.4.2 Private sector participation:
Kolar is basically an agricultural town which has huge potential for growth. This
town provides cheap and affordable housing for workers working in Bhopal.
Private Sector Participation in infrastructure projects and Civic services can be
actively pursued in Kolar. The objectives for initiation of PSP in Infrastructure
projects / Civic Services are:
To reduce government grant funding for infrastructure projects
To reduce the burden on the ULB to undertake large infrastructure projects
To increase coverage of services in areas of water supply, sewerage and
solid waste management
To hasten the development of the region
To improve efficiency of operations
Some of the sectors which can be considered for Private Sector Participation
are:
1. Solid Waste Management
2. Water Supply Scheme
3. Sewage Treatment Plant
4. Housing for poor
5. Public Transport Initiation Project
6. Vocational Training Institutes
Table 14-3 : Areas of Privatization

Solid Waste Management
Options for Private Sector Participant to invest in Solid Waste Management
Project in Kolar are:
Production of manure from waste
Conversion of biogas plant into waste to energy plant when the solid
waste generation reaches 100tonnes/ day in future.
Water Supply Scheme
In India, Private Sector Participation in water supply schemes has not
taken off fully. However, Private Sector Participation for distribution and
Operation and Maintenance can be considered in future.
Private sector Participation in service delivery, collection of bill

(participation can be in the form of performance contracting.)
Sewage Treatment Plant

Private Sector Participant can be invited to setup treatment plant for
generating bio-energy and bio fertilizer. PSP in Sewage Treatment can be
taken up actively in Kolar.
Housing for poor

Dharavi model for providing housing for poor can be considered under
PSP. Under this model, land occupied by slum dwellers will be developed
for residential, commercial and recreational purposes and the occupants
will be provided alternate housing if the developer is provided additional
FSI.
Transportation
Projects on BOT basis can be considered in areas of Para transit system,
construction of ROBs, construction and management of pay and park
parking lots.
14.4.3 User Charges
The approach for this reform initiative will start from the review of all municipal
services and then selecting the services in which the council can levy user
charges (if not already levied) with the objective that the full cost of operation
and maintenance or recurring cost is collected within next five years.
Present Status
Currently only property tax is the only direct income for Kolar municipal
council. The water tax is collected only from the bulk supply through tankers to
several parts of the city. For implementing the new project there will be
necessary to revise the user charges for the respective services, in order to
sustain and maintain the operation of the services.
Strategies and measures
There is a need to introduce in phases User Charges for various infrastructure

amenities provided by the Council. Cross subsidization of tariff, Innovative
product structuring and community participation are some of the measures
which could be explored to provide services for the urban poor.
In the light of the above limitations, the ULB needs to explore the option of
introducing user charges in other areas too. For the proposed UGD collection of
user charges for meeting O & M expenses becomes imperative. Some of the
suggested areas are user charges from commercial entities and institutions for
solid waste management to be extended to residential areas in phases after
proper awareness is created at all levels.
A tentative approach towards implementation of this reform is described in

figure below:
The reform is based on the World Bank method of financing municipal

infrastructure projects, where by the local body pays for the capital cost and
the beneficiaries pay for the operations and maintenance cost. Accordingly the
project is implemented only after a commitment by the beneficiaries that they
will pay the user charges. This also ensures that the project will not go to waste
afterwards because of lack of public commitment to pay the charges. But the
prerequisite for such a model is that the executing authority has to create a
participatory environment and a public consensus about the payment of the
user charges. This is essential because of the inherent politicizing nature of the
general public, especially where a public body is concerned.
14.4.4 E-governance:
E-governance is the application of information & communication technologies to

transform the efficiency, effectiveness, transparency and accountability of
informational & transactional exchanges with in government, between govt. &
govt. agencies of National, State, Municipal & Local levels, citizen & businesses,
and to empower citizens through access & use of information.
Present Status:
Kolar municipal council has website for online official information of the ULB. It
has following information:
History of Kolar and Details about its councilors and administrators. Information
of department and organization. However there is limited information on the
employers directory. Services provided by Kolar Municipal Council.
Application forms (.JPEG format) related to Building Plan Approvals, property

tax, birth/Date certificate form, application for water connection, and
application for shop and company registration. Information related to basic
services like roads, water supply, solid waste management and storm water
drainage.
Strategies and measures
At ULB level, an e-governance shall serve the following three basic

requirements in a user friendly manner
Information to the office bearers for their effective discharges of their duties,
safeguard the assets of the municipality and for future planning and
development of their city.
Information to councilors to do effective service delivery to their constituents.
Information to public to pay their duty, update the information on assessment

and to get the right services of the ULB in time.
Table 14-4 : Reforms in Urban Governance:
Particulars Present status Proposed
Property Tax Only online form Online payment of Tax
is provided with
JPEG format Property Tax calculator with the help of
which Assessee can work out the tax rate
applicable for his/ her Property.
Defaulters list to be posted on website to
ensure greater compliance
Kiosks at various places to pay taxes
online
Listing of collection centres, Facilitation

centres for Property tax collection online
Online information for administrators for
better monitoring
Water Supply and Only new Online payment for water tax
Other connection form
Utilities has been made Filing request for new water connection
available. Online request for water tanker if required.
Citizens Grievance Online filing of Status of complaint and action taken
Monitoring complaints report to be made online
by citizens
Citizen Service centers and call centers to
be setup for processing of all application
forms and address grievances.
Categorization of complaints in the online
format department wise for speedy action
Drainage, encroachment, health, roads,
water, street light, solid waste, tax, illegal
construction etc.
Procurement and Provision of Display of tenders by department,
Monitoring of Tender and including the tender documents, online
Projects community submission of tenders. E-tendering for all
E-procurement participation tenders to ensure transparency
notices (
Project/ward E-procurement for empanelment,
currently, there
works registration and selection of vendors for
has been no
information various works, goods
provided ) Online Project Monitoring system to check
planned vs. achieved progress of work
from various sites to control time overruns
Integration with the Financial
Management system to control cost
overruns
Building Plan Building plan Online status of building plan approval,
Approval approval form layout approval
available online
for download Request for survey, reconstitution of plots
Formats for Auto DCR in website and
automatic approval of the plans using
software to facilitate speedy approval of
building plans. Users shall upload the
AutoCAD drawing of the plan on the
website.
Formats for alteration to the existing
buildings
Advertisement Nil Details of advertisement boards/
hoardings in each ward with the details
about the agency name, dimension of the
board, status of the approval, cost of
advertisement based on the zones and
area, termination date, and facility for
online auction of advertisement space.

Public Health Nil Online filing and processing of D&O, PFA
Management trade license
Licenses
Request for sullage lorry
Solid Waste
Complaints and request for street sweeping,
Management
dustbins by citizens
GIS Mapping Nil Mapping of the following:
ULB and ward boundaries
Road and street layer
Property layer
Household & demographic
Water supply network
Sewerage network
Street lighting
SWM
Storm water drains
14.5 Reforms in physical information:

Table 14-5 : Reforms proposed in physical infrastructure
Sectors Proposed
Service coverage of water connections to be increased from current
4% to 80% by 2020-21
Water supply charges and connection charges need to be revised
on periodic basis ie once in 5 years to fund its future investments in
water supply.
Monthly service charges for the consumers can be increased
minimum of 15% every 5 years.
For funding its investments in water supply, the Council can
consider alternative payment structures for water. It could offer one-
time payment options, where the connection fee is bundled with
usage fees for a number of years. The packages could be made
Water supply attractive by offering suitable levels of discounts. This could result in
reduction in collection risk and reduced cost of billing and
collections.
For reducing operating and maintenance costs, water leakage audit,
installation of leak detection equipment and replacement of pipes
needs to be done on regular basis.
It may be mentioned that the percentage of non-revenue water is
ascertained based on the condition assessment of the water supply
system. It is necessary to carry out a detailed study to estimate the
non-revenue losses to enhance the efficiency of the water supply
system. In addition, the council has to under take a series of
initiatives to arrest illegal water connections and enhance the
coverage of House Service Connections (HSC).
Privatization in routine maintenance relating to water supply such as
Sectors Proposed
hand pumps can be considered
Periodic technical training to its engineering cell is required.
Implementation of 24/7 water supply system with the main features
of:
Anytime full availability of water.
Confessional water user charges to slum dwellers and higher
charges for commercial users.
Reduction of water wastages and unaccounted water flow by
installing water audit equipments, energy saving equipments,
water metering and conducting periodic water audits, energy
audits etc.
Water quality monitoring system on daily basis.
Implementation of underground sewerage system with coverage
upto 80%.
Sewer Connection charges to the users can be increased once in
five years for better revenue generation.
Sewerage Monthly service charges for the consumers can be increased
system minimum of 25% every 5 years.
To improve the collection levels of monthly charges, the Council
could look at providing an incentive and penalty structure for
payment of charges and privatize the collection system.
Periodic technical training to its engineering cell is required in O&M
of Sewage Treatment Plant, Pumping Stations and Sewer
Networking System.
Solid waste Door to door collection of garbage at household level and
management segregation of waste at source need to be implemented after
creating suitable awareness level
Gradual and phased introduction of user charges initially for
commercial areas later to be extended to residential zones can be
considered in later years after proper The Council can identify the
ways to generate revenue from Solid Waste by selling compost at
market.
Privatization of services for the following activities should be
undertaken to reduce the establishment charges and O&M charges
of Council:
Door to door collection of domestic waste
Door to door collection of commercial waste, construction waste
and Market waste.
Setting up and operation and maintenance of waste treatment
plants.
Supplying vehicles on rent
Transportation of waste on contract basis.
Street lights
As a measure to save energy, the Council has put in use Energy
efficient lamps. (installing 5430 new street lights with 8 W LED till
Sectors Proposed
2020-21.)
The council shall replace its other existing nonenergy saving
lamps to energy saving lamps.
Meeting the norms of one pole per 30 meters by 2020-21
Energy Audit needs to be conducted periodically.
Private parties can be involved for financing, operation and
maintenance of energy efficient street light projects to reduce the
cost incurred for the same.
Roads
Relaying Bitumen roads once in three years with patch works to
be undertaken based on the need in between years
Future roads to be laid with dedicated service lanes.
Relaying roads with recyclable materials like fly ash, can be
explored.
14.6 Status of Mandatory Reforms
The property registry is not updated and survey need to be carried out to bring
all the properties under the municipal tax assessment. Municipal Council has
not carried out valuation of assets and valuation is a pre-requisite for migration
to a Double Entry Accounting system. Presented below is the status of the
Municipal Council vis a vis the reform measures enlisted under the JnNURM
scheme.
Table 14-6: Reform Status and Action Plan
Reforms Status Action Plan
Property Tax Reforms
Survey to be carried out to
Survey of properties not carried
Survey of Properties bring all the properties in
out by the Municipal Council.
Kolar under tax assessment.
Collection efficiency is very low. Present property tax
Ratio of arrears collection to structure to be reviewed and
Collection Efficiency
current year demand collection is stringent measures for tax
very high consistently. recovery to be implemented.
Computerisation of
Computerisation of property tax State Govt. can assist in
Records for Property
records yet to be done. Computerisation of records.
Tax management
State Govt. assistance
GIS based property
Yet to be implemented. required to implement it
mapping
across municipal councils.
Service Provision and User charges
Comprehensive Water
Water Supply Service Cost recovery is only 32%. supply system to be
implemented in Kolar.

Sewerage Treatment Sewer network covering all
No sewer network.
Service properties to be provided.
Solid Waste Comprehensive SWM to be
No treatment of solid waste. 10%
Management Service, implemented. User charges
cost recovery.
Street lighting to be increased.
Audits and surveys to Staff to be trained to carry
Not undertaken.
check theft and losses out checks and audits.
E Governance
Computerisation of all
records and departments to
Computerisation of
No Computerisation. be taken up. Staff to be
Records
trained. Even accounts are
not computerized.
Considering the low level of
E-Procurement Nil personal computer
penetration and internet
users in Kolar, E
Online payment of bills Nil procurement and online bill
payment can be considered
for long term goals.
Accounting Reforms
Valuation of assets and Need to be taken up as
Nil
liabilities immediate priority.
Migration to double entry
Migration to Double shall be taken up as short
Entry Accounting Nil term goal with plan for
System implementation within the
next five years.
Revamp of the Public
Financial Management Assistance and training to
(PFM) cycle, which Nil be provided by the state
includes internal government.
controls
Financial Management
Review of Rentals from
Municipal Properties Assistance and training to
and Fees for various Nil be provided by the state
services in line with the government.
prevailing market rates
Assistance and training to
Monitor and Control of
Nil be provided by the state
Revenue Expenditure
government.
Prioritisation of
expenditure on capital Assistance and training to
works in line with the Nil be provided by the state
infrastructure needs of government.
the region
Assistance and training to
Efficient Management be provided by the state
of Grants, Loans and Nil government.
Deposits

Internal Earmarking for basic services
Survey to be done for
Slum population details not
Identification of BPL Identification of slum
available.
Families population
Provision of basic
services Water Housing projects to be identified To be implemented under
Supply, Sanitation, under IHSDP. IHSDP.
Health, Education
Budgetary Earmarking
Schemes for urban poor to
and Actual Spending Budget earmarking and spending
be prepared every year,
for provision of basic not done.
budgeted and implemented.
services
Impact evaluation of
the schemes and Framework for
implementation implementation and
strategies for Nil. implementation strategies
monitorable output can be provided by state
indicators for each of government.
the services
Source: Darashaw Analysis
14.7 Status of Optional Reforms

Table 14-7: Optional reforms status
Optional Reforms Status
1 Introduction of Property Title Certification System in ULB No
2 Revision of Building Bye Laws No
Simplification of legal and procedural framework for conversion of
3 agricultural land for non-agricultural purposed No
4 Earmarking 25% developed land in all housing projects for EWS/ LIG No
Introduction of Computerized process of Registration of land and
5 property No
6 Administrative Reforms No
7 Structural Reforms No
8 Encouraging PPP No
14.8 Issues
As mentioned earlier also the Kolar Municipal Council has been formed recently
in year 2006, which requires several support and reforms for strengthening and
capacity building of municipal council. Following are the major issues:
Lack of adequate and skilled number of staff for administrative purposes
Lack of funds from state government in order to implement the reforms
Poor financial status of urban local body
Absence of vision for Kolar Municipal Council
Large number of urban poor living in slum areas with inadequate services
Encroachments and illegal colonies
City Specific Action Plans have been elaborated in the above table of reforms
status and action plans with long term and short term strategies. Though it is
imperative to implement all the reform measures mandated under the JNNURM
scheme, the areas that require immediate attention are mentioned below:
Property assessment
Survey of properties need to be carried out as an immediate priority to bring all

the properties within the municipal council under tax assessment. Properties
which are currently exempted from payment of taxes need to be brought under
the tax umbrella.
Survey of assets
Survey and valuation of assets shall bring in accountability and also in aiding
migration to double entry accounting system. It will also help the municipal
council in exploiting the land bank and also in raising funds from external
sources.
Improvement in collection efficiency and cost

recovery
The collection efficiency and cost recovery for services is very low in Kolar. This
will act as a dis-incentive for the municipal council to undertake new projects to
improve service delivery. Hence, the collection efficiency need to be drastically
improved coupled with imposition of reasonable rates for each of the services
provided by the municipal council for long term financial sustainability.
Overview
Reforms and measures for Kolar Municipal Council

Financial and Accounting Reforms
Institutional reforms
E-Governance in Urban Local Bodies.
Reforms in physical infrastructure
15 City Vision
Stakeholders consultations and surveys held in Kolar town have resulted in

identifying and formulating the City Vision for future development. The vision
statements expressed by the citizens during stakeholders meeting is shown
below:
Table 15-1: Vision statements expressed by stakeholders during consultation
Vision for 10 years Vision for 20 years Vision for 30 years
Provision of basic services

like road, water supply, Four laning of all the Urbanization through
sewerage system. major roads central policies
Need for water conservation
City should become role
Removal of encroachments, Community
model in development
need arrangements to development along
process and in
conserve water and create with recreational
improvement of health
river front development provisions
services
Six laning of roads, health
facilities in the Kolar region Expansion of city limits
-
Supply of water from Kolar with proper planning
Dam
Setting-up of community Creating sports
Provision of basic services
hall, small scale industrial ground and state-of-
like road, water supply,
development, the-art communication
sewerage system
Government hospital services
Economic development,
development of industrial
units for employment Integrated public
Clean city vision, clean
generation and creating transport system in
water supply, proper roads
awareness related to the city
education, health and
environment
Removal of encroachments To attain self sustainable
Inclusion of Kolar city under growth and develop -
Bhopal Municipal Council for haven for the common
proper development man to live happily
Provision of sustainable physical, socio-economic infrastructure and efficient

city management came across as a vision of nearly all the stakeholders.
15.1 Vision Statement for Kolar City
A vision is a statement of where the city wishes to go, within a given

timeframe, and is often expressed in terms of clear expectations. The vision
statement for Kolar defines the potential of the city and reflects its unique
attributes in terms of comparative and competitive advantages, values and
preferences of the citys residents, relationship of the city to the state, national
and global economies, and of course, the history and physical characteristics of
the city. Kolar city vision aligns stakeholders energies to work cohesively for
the development of the city. Being its close proximity to the capital city of
Bhopal, the vision of the Kolar city shall be the in the context of sustainable
growth centre. Vision statement for Kolar city development plan is as follows:

City Vision:
To become a self sustainable Urban Growth Centre with proper

community development and hassle free connectivity systems.
15.2 Key Priorities
The CDP process of Kolar has undergone extensive consultative process with its
key stakeholders in prioritizing the key sectors for investments and reform
initiatives. The priorities of the national and state governments including the
international developmental trends and have been considered in prioritizing
these critical sectors, presented below.
Water Supply
Sewerage
Solid Waste Management
Traffic and Transportation
Storm Water Drainage

Annexure 1 : Stakeholders
Consultation
The success of the City Development Plan depends on the extent of people
participation. As it is very rightly said Planning is an exercise For the people,
Of the people and By the people.; people perception and views should be
given an important position in any development programme as the whole
exercise is done for the common good of the people.
According to the TOR, the Consultants organized three workshops with the
assistance from ULB. The purpose, process and outcomes of the workshops are
discussed as below.
1. Formation of Steering Group
A Steering Group comprising of the Municipal Council staff, Elected

Representatives of the Council, various line departments, NGOs, Press etc. was
formed. The minimum number of members of the Steering Group was set at
15. The Steering Group members shall participate in the discussions at every
stage during the course of preparation of the City Development Plan. The
Steering Group members of Kolar town are as follows:
Chief Municipal Officer, Kolar Municipal Council
President, Kolar Municipal Council
Vice President, Kolar Municipal Council
Sub Engineer, Kolar Municipal Council
SDO, Town and Country Planning
SDO, Police
Sub Engineer, Capital Project Administration (CPA)
SDO Capital Project Administration (CPA)
Mr. M. Kailashnath, In-charge, Madhya Pradesh Electricity Board, Kolar
SDO, Public Health Engineering Department (PHED)
SDO, Public Works Department (PWD)
President, City Development Foundation
Doctor, Anupam Hospital
Mr. D. P. Dwivedi, Senior Citizen
Mr. Rajendra Nath Awasthi, Senior Citizen
Mr. Mahesh Kumar Vishwakarma, MLA
Mr. Sanjay Kumar Patil, Member, United Peoples Welfare Society (Ekta
Jankalyan Samithi)
Mr. R. K. Singh, (Retd. Asst. Statistical Officer, Department of Economics

and Statistics)
2. First kickoff workshop
According to the TOR, the Consultants organized the First Kickoff Workshop
with assistance from ULB. The aim of the workshop was to familiarize various
stakeholders with the purpose, process and expected outcomes of the CDP.
Stakeholders included elected representatives, Mayor/ President, Municipal
Commissioner and people from local departments like PWD, Traffic &
Transportation, Tourism Department, Town and Country Planning Department,
District Urban Development Agency (DUDA).
The Steering Group

members, elected
members, staff of the
municipal council and
the general public
were invited for the
kick off workshop. The
Kick off workshop was
held in Kolar
Municipality on
27.10.2009 where
large number of
stakeholders including
the elected representatives and key administrative staff members and NGOs /
Women groups were present.
The Consultants made a presentation on the concept of CDP, its principles,

process and the Approach in Hindi. The stakeholders were invited to express
their views about the city, the problem areas and to share their vision for the
city. The views of some of the stakeholders were also recorded.
The initial findings of the surveys conducted are explained in subsequent

paragraphs.
Problems highlighted in the stake holders meeting:
The problems and issues identified by the elected representatives and

administrative staff and NGO/ Woman Groups/ SHGs are encapsulated as
under:
1. Water supply for Kolar town is provided by tankers since town has no
main / distribution lines. City has Kolar dam water source located
nearby. Water main from this source to Bhopal passes through this
town without supplying water to the wayside settlements.
2. Town has no comprehensive under ground sewerage scheme.
3. Town has no Public Conveniences to prevent open defecation.
4. Bhopal slums were rehabilitated in Kolar Municipal areas without
providing basic Infrastructure facilities.
5. Kolar is connected with Mother city, Bhopal mainly by mini buses. City
requires Bus Rapid Transit systems for cheap and hassle free transport.
6. Internal roads are in bad condition which needs to be developed in a
comprehensive way by creating missing links, creating kutcha BT / CC
roads etc.
7. Linkages to rural settlements need to be strengthened and widened.
8. Unemployment is major issue.
9. Limited recreational facilities such as parks, playgrounds, libraries etc
10. The proposed sports village project is very much delayed which needs
to be completed swiftly.
11. City has no Slaughter houses, community halls benefiting the public
12. Town has no Treatment plant for decomposing Bio-degradable waste
and scientific landfill site for Non-biodegradable waste. Waste
segregation and Door-Door collection is not in practice.
13. Kolar is connected to the Mother city only by road network by Kolar
road
Suggestions given by the elected representatives and administrative staff and

NGO/Woman Groups/SHGs are encapsulated as under:
1. Providing water from Kolar dam for the city by implementing the
proposed Water Supply Scheme under UIDSSMT swiftly.
2. Providing Street Lighting on the connecting bridge.
3. Providing Comprehensive Under ground drainage facilities
4. Creating Health Infrastructure facilities
5. Public playgrounds and Stadium has to be developed. Sports village
needs to be developed without delay.
6. Water harvesting schemes can be initiated
7. Approach road to village areas needs to be widened.
8. More Slum redevelopment schemes need to be proposed and
implemented.
Findings of City opinion survey

As explained above, the City opinion surveys were conducted during the Kickoff
Meeting. Overall 90 - 100 surveys were conducted with stake holders of Kolar
town to ascertain their views on the problems and prospects and vision for the
city. The findings of the survey are as follows.
The data and opinion provided by various stake holders of Kolar town based on
City Opinion survey was examined, analyzed and studied to identify the
problems and understand peoples expectations on the future development of
the city. The survey details, findings and inputs were keyed in to understand
the important issues, prioritize the problems facing the city and evolve a broad
vision to enable a planned progressive development of Kolar area.
Features/Characteristics of Kolar
Features / Characteristics of Kolar town have been identified from various

stakeholder groups and from our surveys and the same are listed below:
1. It is a developing satellite town adjoining Bhopal city but is less
congested as compared to Bhopal city.
2. The city is very calm and peaceful inspite of being very near to the
capital city of Bhopal.
3. Employment opportunities are poor in this city since town has no

industrial areas developed within its limit.
4. Kolar dam water source is in close proximity to the city. However the
water from this dam is not provided to the city.
5. Town has a large area of 50.17 sq kms with large parts consisting of
rural villages. Residential and industrial areas are occupying only 9.42
sq kms and hence have huge potential for future development due to
abundant land availability.
Kolar in comparison with other towns
An attempt has been made to compare Kolar town with surrounding towns and
metro cities in city opinion surveys and the opinions gathered from various
stakeholder groups are listed below
1. Town has no comprehensive water supply, sewerage, Solid Waste
Management systems like in nearby Bhopal.
2. Town is connected only by road network unlike in Bhopal where all
modes of transport (Road, rail and air) is available.
3. Kolar is basically a residential urban agglomeration town depends on
Bhopal for economic activities.
4. Kolar town is a calm, quiet and peaceful town compared to other
towns nearby.
5. It is less congested and has low population density when compared to
Bhopal city.
6. The infrastructure facilities are very poor and undeveloped compared
to Bhopal city.
7. Kolar has potential for future planned development due to closeness
to Bhopal city as well as due to large area of the town.
8. Quality of living is poor compared to Bhopal city due to the presence
of large slum pockets.
Problem areas - ranking
During City Opinion Surveys, Stakeholders have been asked to rank problem
areas pertaining to Physical infrastructure, Social Infrastructure and
Environmental issues, which is presented in a scale of 0-1002 scores in the
figure below.
2
High score represents sector having problem of high intensity and low score represents sector
having problem of less intensity.
Problems Identified by the Stakeholders
120.00
100.00
80.00
60.00
40.00
20.00
0.00
e
an n
er
ds
D ge
Fa ting
O rt
w r
al Ind n
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Po on
P ious ilet
ke e
ag
ou ing ds
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po try
ho Fa um
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P on
P eet osa
tio
Se te
un e
ub Ha
la ege
o
tio
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iv
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un
m ark
te ina
d/ Pla
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er
er luti
C us
To
de ols cilit
/R
ra
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ng igh
th
th Sl
llu
er rink Ro
nd W
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/ P oll
La oll
om M
as ra
is
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W Po
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W D
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La
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ig
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A
at
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on
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nd D
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Problem areas
1 Drinking Water 13 Gardens / Playgounds
2 Underground Sewerage 14 Pond / Lake / River
3 Roads 15 Air Pollution
4 Street Lighting 16 Industry
5 Schools / Colleges 17 Public Toilet
6 Health Facilities 18 Transport
7 Solid Waste Disposal 19 Water Pollution
8 Drainage 20 Religious Place
9 Parking Facilities 21 Land Pollution
10 Slum 22 Municipal Council
11 Market 23 Others
12 Community Hall
Sector Prioritization
Projects identified in the city development plan cannot be taken all at once for
implementation due to constraints like finance, institutional capabilities etc.
Thus, phasing of the projects based on stake holders priority could be a viable
option for implementing projects. During City Opinion Surveys, Stakeholders
have been asked to prioritize the sectors pertaining to Physical infrastructure,
Social Infrastructure and Environment and is presented in a scale of 0-100 3
scores.
3
Sector is highly prioritized by the Stakeholders if it gets 100 score and least prioritized if it gets 0
score.
Physical infrastructure priority

Based on City Opinion Survey findings, Stakeholders have given priority to the
sectors related to Physical infrastructure on the following order:
1. Drinking Water Supply
2. Road Network
3. Under Ground Drainage
4. Street lighting
5. Storm Water Drainage
6. Solid Waste Disposal
7. Parking facilities
8. Transport
Sector prioritization from stakeholders (physical infrastructure)
Rail/Road Transport 0.0
Parking Facilities 7.3
Street Lighting 36.7
Solid Waste Management 9.8
Storm Water Drain 26.1
Underground Drainage 58.8

100.0
Drinking Water
Roads 84.3
0 10 20 30 40 50 60 70 80 90 100
Weighted average
Source : Survey findings
Social infrastructure priority
sectors related to Social infrastructure on the following order:
1. Health facilities
2. Schools and Colleges
3. Public Transport
4. Garden / Play grounds
5. Community Hall
6. Entertainment
Sector Prioritization from Stakeholders (Social Infrastructure)
Entertainment 0.0
Community Hall 23.7

100.0
Health Facilities
Schools / Colleges 85.1
Public Transport 78.4
Garden / Play ground 75.1
0 10 20 30 40 50 60 70 80 90 100
Weighted average
Environmental Issues
Environmental Issues on the following order:
1. Water Pollution
2. Air pollution
3. River/Lake
4. Land Pollution
5. Open drainage
6. Noise Pollution
7. Open space (unavailability)
8. Drought
9. Earthquake
10.Flood problem (water logging)
11.Storm
Sector Prioritization from Stakeholders (Environmental Issues)
Drought
Storm
Earth Quake
Floods
Open Space
Open Drains
Noise Pollution
Land Pollution
Water Pollution
Air Pollution
River/Lake
0 20 40 60 80 100 120
3. Second Stakeholders workshop

Taking ahead the Stakeholder Consultation process, the Consultants had
organized a 2nd Workshop at Kolar on 19th January, 2010. The workshop was
aimed at gathering the viewpoints of the stakeholders on the Citys Vision. The
rationale behind conducting the second workshop was to develop a Vision for
Kolar City which is acceptable by and conceived in accordance with the Citizens
of Kolar. The copy of City Vision Survey form is attached as Annexure.
The Steering Group members,
elected members, staff of the
municipal council and the
general public were invited for
the 2nd workshop. The
workshop was held at Kolar on
19th January 2010 where a
large number of stakeholders
including the elected
representatives and key
administrative staff members
and NGOs/ Women groups
and several media
representatives were present.
The Consultant made a presentation on the City Profile and the secondary data
collected on Kolar and its administration in Hindi. The stakeholders were
invited to share their vision for the city. The views of some of the stakeholders
were also recorded. Following the presentation, City Vision survey formats in
Hindi were distributed to the stakeholders to take individual feedback regarding
the city vision.
Stakeholders filling up the survey forms
The Consultants presenting during the 2nd Workshop
Stakeholders consultations and surveys held in Kolar town have resulted in

identifying and formulating the City Vision for future development. The vision
statements expressed by the citizens during stakeholders meeting is shown
below:
Vision statements expressed by stakeholders during consultation
Provision of basic
services like road,
water supply, Four laning of all the Urbanization through
sewerage system. major roads central policies
Need for water
conservation
Removal of
City should become role
encroachments, need
model in development Community development
arrangements to
process and in along with recreational
conserve water and
improvement of health provisions
create river front
services
development
Six laning of roads,
health facilities in the Expansion of city limits
-
Kolar region with proper planning
Supply of water from
Kolar Dam
Provision of basic Setting-up of community

Creating sports ground
services like road, hall, small scale
and state-of-the-art
water supply, industrial development,
communication services
sewerage system Government hospital
Economic development,
development of
Clean city vision, clean industrial units for Integrated public
water supply, proper employment generation transport system in the
roads and creating awareness city
related to education,
health and environment
Removal of
encroachments
To attain self sustainable
Inclusion of Kolar city
growth and develop
under Bhopal -
haven for the common
Municipal Corporation
man to live happily
for proper
development
Provision of sustainable physical, socio-economic infrastructure and efficient

city management came across as a vision of nearly all the stakeholders.
4. Third Stakeholders Meeting
A meeting with the top officials of Kolar Municipal Council was held in the
Municipal Office Building on 12th January, 2010 to prioritize the projects as per
the requirement of the Citizens residing in Kolar.
After preparation of Vision for Kolar City, the Consultants had identified various
priority projects in line with the Goals and Strategies envisioned for Kolar City.
The priority projects were identified for various sectors namely;
1. Land Use and Growth Management
2. Water Supply
3. Sewerage and Sanitation
4. Integrated Solid Waste Management
5. Traffic and Transportation
6. Storm Water Drainage
7. Street Lighting
8. Socio-economic Infrastructure
9. Urban Governance
10. Urban Finance
The priority projects identified under each category were discussed with the
Municipal Council officials to understand their viewpoint on the same. After the
discussion, a list of projects under each category was prepared to be included
as priority projects under the City Development Plan. The following points were
discussed during the meeting;
Under Water Supply, the officials suggested that while laying new network,
priority should be given to laying lines in Ward Nos. 21, 19, 18, 17, 10, 15,
12 and 13.
Under Sewerage and Sanitation, the officials requested that the Nallah at
ward no. 6 where solid waste is dumped should be cleaned.
The officials also informed that Public Toilets for 1500 households has been
approved and would be implemented. The toilets would be built at a cost of
Rs. 1 lakh each with contributions from Central Government, State
Government and Owners.
The officials also mentioned that public toilets are necessary in ward nos. 9,
15, 10. However, lack of open space in the area would be a hindrance. The
possibility of constructing public toilets at spaces between 2 villages (Meda)
could be explored.
A 20 Acre land at Khatlikheda (near pumping station) has been proposed by
the Municipal Council and is awaiting approval from the District Collector.
The Chief Municipal Officer felt that the Kutcha Roads in villages have to be
converted into puccca roads.
The officials observed that a bus terminal, which has been proposed at ward
no 16 can be included in the CDP.
7 Bus Shelters were proposed to be built at Kolar at various places.
The officials claimed that a Slaughter house at ward no. 12 is required to
cater to the sizeable meat market in Kolar.
An open area in the form of a park / garden is required in every ward.
The Consultants proposed that the Crematorium should be electrified and
was accepted by the Council members.
The Council members also mentioned that a new website has been launched
for Kolar Municipal council; http://mckolar.com/
Fourth Workshop
The fourth workshop held at Kolar Municipal council on October 20, 2010. The
consultants presented the list of project with city investment plan and financial
operating plan to the Stakeholders. There was discussion in relation with the
probable funding options for capital investment and the reforms required in
order to sustain the financial balance of the urban local body.
Stakeholders present during the 4th Workshop


Measures for making Kolar a
Sustainable city-
Special Paper 1
Sustainable city is a city conceived on

principles of sustainability, which
would address environmental issues
plaguing the cities of today
Special Paper Measures for making Kolar a Sustainable city
1 Cities and Climate Change
It is no longer a scientific question as to whether the climate is

changing, but the question is the timing and magnitude of Climate
Change
1.1 Climate Change Relevance and Context
Climate change has origins in anthropogenic activities and is engaging the

attention of planners, governments, and politicians worldwide. Climate
change is recognized both as a threat and a challenge. The impact of human
activities on climate and climate systems is unequivocal. The governments of
the countries across the world are engaged in working out the impacts and
associated vulnerabilities of their economies to impending projected climate
change.
Climate has a significant role in the economic development of India. Many

sectors of the economy are climate sensitive. In India, the meteorological
records indicate rise in the mean annual surface air temperature by 0.4C
with not much variations in absolute rainfall. However, the rates of change in
temperatures and precipitation have been found to be varying across the
region. The intensity and frequency of heavy precipitation events have
increased in the last 50 years. The tide gauge observations in the last four
decades across the coast of India also indicate a rise in sea level at the rate
of 1.06-1.25 mm/year. Further, some preliminary assessments point
towards a warmer climate in the future over India, with temperatures
projected to rise by 2-4 o C by 2050s. No change in total quantity of rainfall
is expected, however, spatial pattern of the rainfall are likely to change, with
rise in number and intensity of extreme rainfall events.
The sea level is also projected to rise with

cyclonic activities set to increase significantly Climate change is
with warmer oceans. The continuous warming
recognized both as
and the changing rainfall pattern over the Indian
region may jeopardize Indias development by a threat and a
adversely impacting the natural resources such challenge
as water forests, coastal zones, and mountains
on which more than 70% of the rural population is dependent.
The physiographic features and the geographic location, which control the
climate of the country, bestows it with great wealth of its natural resources,
surface and ground water availability, forestry and vegetation. The region
Darashaw & Company Pvt Ltd. Page l1
Measures for making Kolar a Sustainable city Special Paper
abounds in very rich collection of flora and fauna, and some of these
locations exhibit a high degree of species endemism and constitute
biodiversity hotspots of the world. There is an ever increasing recognition of
the need for impact assessment related to climate change and undertaking
suitable assignments for reducing projected adverse impacts of climate
change.
1.2 Urbanisation and Climate Change perspective
About 30% (285.35 million people, 2001 census) of the Indian population
resides in urban areas. In post-independence era while population of India
has grown three times, the urban population has grown five times. Urban
areas are heavily dependant on fossil fuels (often imported), for the
maintenance of essential public services, for powering homes, transport
systems, infrastructure, industry and commerce. The fossil fuels are
increasingly becoming more expensive due to scarcity of fuel and increase in
demand. In addition to this, the environmental and social impacts of the
consumption of fossil fuels are increasingly becoming a concern. These
impacts include air pollution, global warming, waste disposal problems, land
degradation and the depletion of natural resources.
Urbanization and economic development are leading to a rapid rise in energy

demand in urban areas. Urban areas have emerged as one of the biggest
sources of Green House Gas (GHG) emissions, with buildings alone
contributing to around 40% of the total GHG emissions. As per latest UN
report one million people are moving to urban areas each week. It is
estimated that around two-thirds of the world population will be living in
cities in 2050. This requires a tremendous shift in energy resources in urban
areas. In recognition of this, various cities around the world are setting
targets and introducing polices for promoting renewable energy and reducing
GHG emissions. London has announced 20% Carbon emission reduction by
2010; New York and 200 other U.S. cities have set a similar target. Tokyo
has announced 20% share of renewable in total consumption by 2020 and
Australian government has initiated a Solar Cities programme.
Several Indian cities and towns are experiencing 15% growth in the peak
electricity demand. The local governments and the electricity utilities are
finding it difficult to cope with this rapid rise in demand and as a result most
of the cities/towns are facing severe electricity shortages. There is a need to
develop a framework that will encourage and assist cities in assessing their
present energy consumption status, setting clear targets for and preparing
action plans for generating energy through renewable energy sources and in
conserving energy utilized in conducting urban services.
Page l2 Darashaw & Company Pvt Ltd
1.3 Sustainable city the city of Future
In addition to the increasing energy consumption, electricity shortages,

depleting natural resources there are other problems like unplanned growth,
unmanageable cities and deteriorating quality of life. A one pack smart
solution to break from viscous cycle of degenerating cities and unending
shortages is growth driven by Sustainability principles.
Sustainable city is a city conceived on principles of sustainability, which

would address environmental issues plaguing the cities of today. Sustainable
cities make prudent use of available land, encourage energy-efficiency,
resource efficiency and promote healthy buildings for users. Traffic clogged
city centers are reclaimed for pedestrians, green spaces are preserved and
expanded, recycling schemes are promoted, and environment friendly
buildings are designed.
What our cities will look like in the future will depend on, how they are
planned or, much more important, whether they are planned at all. The key
point is that planning and management has a key role in ensuring
sustainability.
Many of the problems associated with our

cities exist because they have not been Sustainable city is a city
planned, or the planning has been
conceived on principles
ineffective or misdirected and secondly
due to due to inefficient management and of sustainability, which
governance of the cities. Sustainable would address
cities will look at the existing cities and environmental issues
aim at making policy changes and plaguing the cities of
indentify strategies which will improve
the status of existing cities and address
today
environmental issues.
Give the background to Sustainable City, it is imperative to say that it is a

mammoth to recreate and revitalize our cities to Sustainable city.
However, a Journey of 1000 miles begins with a small step. And there are
definitely number of short term and implementable strategies which will
embark us in the direction Sustainable cities.
This Special paper focuses on two categories of such implementable

strategies that can be undertaken by Kolar Municipal Council. These
strategies are explained in subsequent sections.
2 Energy Efficiency strategies

for the city
The Energy efficiency strategies for city can be broadly categorized under
two heads. Strategies and measures applicable at city level for provision of
services and strategies applicable at building level
2.1 Energy Efficiency in Kolar Municipal Council
Municipalities are spending large amounts of their revenue on purchasing

energy for providing local public services such as street lighting and water
supply.
Municipal energy efficiency saves scarce commodities and stretches tight

budgets, giving citizens improved access to electricity, water, heat and air
conditioning. Energy efficiency in municipal water supply systems can save
water and energy while reducing costs and improve service at the same
time.
For those bearing the financial responsibility for local public services,
efficiency in the provision of energy and water is one of the few cost-
effective options available for meeting growing demands for vital services
such as electricity, water and wastewater treatment. The budgets for these
services often lack funds to invest in improvements, and public entities are
looking for ways to finance energy efficiency projects. Among many possible
options, performance contracting offers a mechanism for municipalities and
public utilities to finance efficiency improvement projects without upfront
investment.
Performance contracting became popular because the goods and services

associated with the project are paid from the savings accrued from it, which
allows municipalities to finance the improvements. Performance contracts
are inherently flexible and can be structured to best fit the needs of the
involved parties.
Performance contracts often involve an Energy Service Company (ESCO) but

sometimes the services can be provided by engineering firms, such as water
engineering companies in case of efficiency project involving water supply.
However, ESCO participation in the project is beneficial because such
companies have managerial, technical and turn-key project implementation
skills that often are lacking at the municipalities, combined with the ability to
structure project financing. Based on the municipalities needs, the ESCOs
can finance EE implementation and collect their dues from shared or

guaranteed savings accruing from the EE project.
2.1.1 Energy Efficiency Strategies in Municipal Sector
The major energy loads in any are typically the water pumping systems,
street lighting, sewage treatment and handling, and electricity distribution.
Municipal buildings such as offices, hospitals, schools also contribute to the
high municipal energy bills. Therefore, the following systems are those most
commonly addressed by a municipal energy efficiency audit:
Street lighting
Water Pumping
Sewage pumping
Electrical distribution
Municipal Buildings
EE measures in street lighting
Street lighting is one of the major sources of energy consumption in

municipal sector. A comprehensive survey of street lighting systems needs
to be conducted and meetings with officials responsible for designing,
installation and operation and maintenance are to be conducted. The
specifications of types of lamps being used in various roads in the city should
be mapped and based on the energy audit of street lighting and the data
collected from the Municipal council, appropriate projects can be
implemented. There is a good potential of reducing the consumption by
installing multitab ballast with astronomical timer switch. The following
strategies can be envisaged:-
1. Replacement of High Pressure Sodium Vapor Lamps with LED

lights
High mast tower lights of 400W, 250 W, 70 W are generally used for street
lighting in most of the ULBs which can be replaced with more energy
efficient LEDs of 125 W, 70 W and 28 W respectively. A 100% target to
replace the high mast tower lights can be set with year wise target. Kolar
Municipal council can adopt ESCO model financing for Energy Efficiency
street lighting projects.
Strategies
Kolar has 1394 street lights positioned all over the Municipal area in which 1010 lights
are 40 W tube lights, 210 lights are 250 W Sodium Vapor lamps and 174 lights are 150
W Sodium Vapor lamps.

Replacement of 1010 40 W Tube light with 8W LED lights or 28 W T5 lights
Replacement of 174 Nos 150 W High Pressure Sodium Vapor with 55 W LED lights
lights
300745 KW per annum and monetary savings of Rs 8,62,557 per annum
2. Sensors for Automatic on/off of street lights
Automatic street lights ensure that energy is not wasted by lights turned on
during day time. Most of the ULBs predominantly follow manual switching of
street lights which results in labour costs, energy wastage and poor
efficiency. The best solution is to install automatic sensors.
Mostly in ULBs it has been observed that the operating load remains same
throughout the night. Keeping this in mind it is suggested to install the multi
tab ballast which varies the load of the lamp according to the traffic load
during the night. Multitab ballast comes with a facility of setting the time for
which the lamp will run up to its full facility. So during the evening
operating hours the timer is set for the full loading of the lamp and during
midnight onwards it will be set for 50% loading of the lamp. Astronomical
timer switch will help in reducing the wastage of lighting consumption as due
to seasonal variation the operating hours of street lighting does change. So
the switch doesnt allow street light to get on before the dusk and after the
dawn.
Strategies
In Kolar Municipal council it has been observed that the operating load for street
lighting remains same throughout the night. In order to reduce the energy load it is
suggested to install the multi tab ballast which varies the load of the lamp according to
the traffic load during the night.
Multitab ballast comes with a facility of setting the time for which the lamp will run up to
its full facility. So during the evening operating hours the timer is set for the full loading
of the lamp and during midnight onwards it will be set for 50% loading of the lamp.
Astronomical timer switch will help in reducing the wastage of lighting consumption as
due to seasonal variation the operating hours of street lighting does change. So the
switch doesnt allow street light to get on before the dusk and after the dawn.
EE measures in water pumping
Water pumping is another energy consuming activity in the municipal sector.

According to the BEE estimates approximately 25% of energy savings can be
achieved from initiatives in water pumping systems alone.
1. Improvement of Design Efficiency in Pumping System
Strategies
For the propsosed water supply scheme, a detailed study should be conducted to
assess the volume of water to be pumped and height at which the pumps need to be
located.
The proper designing of the pumping system using the fluid flow analysis
softwares can bring out energy savings in running and maintenance of water
pump systems to the tune of 20%.
2. Installation of variable speed drivers
Major energy loss is caused due to the improper dimension and adjustments,
by properly adjusting the pump speed using variable speed drivers these
losses can be reduced.
Strategies
It is expected to achieve around 5% energy savings by installing variable speed drivers

in water pumping systems.
2.1.2 Other Energy Efficiency Measures
Sector wise survey (Residential, Commercial, Industrial and Municipal) could

be conducted to assess the energy consumption scenario and based upon
the survey results various energy efficiency projects can be implemented.
Strategies
The major energy saving measures that can have maximum impact are as follows.
Replacement of incandescent lamps with CFL
Replacing the conventional T-12 (40 Watt) copper ballast tube lights with the
energy efficient T-5 (28 watt) electronic ballast tube lights. The saving would be
around 42% per tube light.
Replacing the conventional ceiling fans which consumes (70-80watt) with energy
efficient fans (which consumes 50 watt). The savings will be 37% per fans.
Replacing the existing unitary air conditioners with the BEE star labeled air
conditioners.
The overall electricity savings can be achieved by implementing all the above
measures would be approximately more then 20% of the total consumption in
various sectors of the city.
2.2 Building Energy Efficiency Existing policy

Framework
In India there are two Building codes (policy frameworks) which deal with
the construction of buildings and with Energy efficient design of buildings -
the National Building codes 2005 (NBC 2005) and the new Energy
conservation of buildings codes 2006 (ECBC 2006). The national building
codes only consider regulations in building construction primarily for the
purposes of regulating administration , health and safety , materials and
construction requirements and building and plumbing services whereas the
ECBC 2006 consider energy conservation and energy efficiency in buildings
to provide minimum requirement for the energy efficient design and
construction of buildings. The NBC 2005 refers to a wide variety of building
type and ownership whereas ECBC 2005 only refers to commercial buildings
and some building complexes.
The ECBC 2006 mainly considers administration and enforcement, the

building envelope, HVAC, service hot water and pumping, lighting and
electric power to encourage conservation of energy. These are considered
during construction of new buildings and while doing additions to existing
buildings.
At present the Energy Conservation Act 2001 empowers the state

governments to adjust the codes according to local conditions. This
encourages inconsistency in building practices across to country and can
lead to huge deviations from the existing codes. There are currently various
state designated agencies for implementation of this code. The regulating
authority is different for each state and is responsible for enforcing the
adapted building codes for that state. Experts check the plans for new
buildings or changes to existing buildings and permit the builder to carry out
construction if the design meets the code requirements. They are rejected
and sent for alteration if they do not meet the requirements. After the
building is built it must again be certified as complete by the state
designated agency before it is used.
The Bureau of Energy Efficiency is working on certifying Energy Auditing

Agencies in order to evaluate buildings energy use, which will enable better
regulation of energy conservation in buildings.
2.2.1 Sustainable Construction /Green Buildings
Green Building is the practice of increasing the efficiency while ensuring

healthy indoor environment for the buildings by minimizing their use of
power, water, and materials, thus reducing building impact on the
environment and on the limited resources of the planet, through better site
selection, design, construction, operation, maintenance, and dismantling -
the complete building life cycle.
In order to encourage green rating practices of buildings, IGBC has come up

with LEED rating. Points are given for different criterion at the site planning,
building planning and construction, and the building operation and
maintenance stages of the building life cycle. The entire constructions for all
the new and existing construction can follow the Green Building standards.
The related concepts of sustainable development and sustainability are
integral to green building. Effective green building can lead to
Reduced operating costs by increasing productivity and using less
energy and water,
Improved public and occupant health due to improved indoor air
quality, and
Reduced environmental impact by, for example, lessening storm water
runoff and the heat island effect.
Demand Comparison: Conventional Vis a Vis Green

Building
Conventional
Green Buildings *
Building
Air-conditioning Cooling
150 SFT/TR 600 SFT/TR
Load
Electrical Demand Load 10 WATT/SFT 4 WATT/SFT
Lighting Power Density
2 WATT/SFT < 0.6 WATT/SFT
office area
4 WATT/SFT < 1 WATT/SFT
retail area
1 WATT/SFT < 0.15 WATT/SFT
parking area
45 Liters per day per 20 Liters per day per
Potable Water Demand
person person
* - As per the Green measures adopted
Green buildings are scored by rating systems, such as the Leadership in

Energy and Environmental Design (LEED) rating system developed by the
Indian Green Building Council, and other locally developed rating systems
like GRIHA
Strategies
Green Building Implementation Framework Model for ULB
In order to propagate the energy efficient/ green building in the jurisdiction of Kolar
Municipal Council the construction of commercial, industrial and residential complexes
/townships as per the green building standards can be made mandatory by ULB or
some special financial incentives such as property tax rebates or incentives in
electricity bills etc can be given by the ULB.
For the effective implementation of sustainable construction as per the LEED / GRIHA
criteria ULB should set up a Green Building cell which can be a subset of the JNNURM
cell, which will consist of members of town planning authority, PWD and ULB who will
be trained on Green Building concept and also seek the help of LEED AP or GRIHA
certified professionals.
This green building cell will be responsible for the approval of all plans in order to
ensure that it is as per the criteria of LEED / GRIHA which can also have a third party
inspection from LEED AP / GRIHA certified professionals who in turn will give the
certification report to town planning department advising them on any changes to be
made in plan if required or recommending approval. The model framework is depicted
in Figure below
ULB should conduct an extensive training programme either by GRIHA or IGBC (

Indian Green Building Council) for all the local architects and people involved in civil
construction in order to do effective capacity building on Green buildings with the help
of MNRE.
Figure : Implementation Framework Model for ULB
Page l 10 Darashaw & Company Pvt Ltd
2.2.2 Steps to be taken for effective implementation of Energy

Efficiency in Buildings
Other additional measures which can be taken by Kolar Municipal council are
as follows:
Strategies
ULB can offer financial assistance for reduction in energy use in lighting systems
that go beyond the ASHRAE guidelines. This incentive allows energy efficient
lighting to be a cost effective measure, ULB can also offer subsidies for indoors
and outdoors solar lighting devices for community and individual users.

As of now there are no subsidies offered for most energy efficient HVAC
Usystems and for the use of natural water coolers. ULB can offer financial
Lincentives for more energy efficient HVAC systems. This encourages their use in
Bnew buildings and when retrofitting existing buildings.
Financial assistance or subsidy can be given to solar heating systems in
particular which will be preferred option for the city as this technology being
suitable for the climate of the city.
ULB by notification in consultation with state government, BEE can amend the
energy conservation building codes to suit the conditions and factors prevailing
in Kolar.
Direct every owner or occupier of a building or building complex to comply with
the provisions of the energy conservation building codes.
Direct, if considered necessary for efficient use of energy and its conservation,
any consumer referred to get energy audit conducted by an accredited energy
auditor.
Take all measures necessary to create awareness and disseminate information
for efficient use of energy and its conservation.
Arrange and organize training of personnel and specialists in the energy
conservation techniques for efficient use of energy and its conservation.
Take steps to encourage preferential treatment for use of energy efficient
equipment and appliances.
ULB can also work out on possibility of establishing an energy conservation fund
with adequate contribution from State government, private entities in city etc in
order to enhance the financing of EE projects to be implemented.
Darashaw & Company Pvt Ltd. Page l 11
3 Financing Schemes & models
Lack of adequate finance is one of the reasons that even being technically
and economically viable, many of the energy conservation or renewable
energy projects / programmes do not get implemented. The financing of
solar cities is quite challenging as the quantum of finance for various
strategies varies from few hundred rupees to several crores of rupees.
Therefore a variety of financing institutions and schemes has to be
integrated to evolve a feasible financing plan.
4.1 Financing Options
4.1.1 Grants/ finance from central government, state

government and international agencies.
There are several central and state government agencies that give grants or
create special funds for the purpose of providing finance for various
renewable energy and energy efficiency projects. Several international
lending and donor institutions such as World Bank, the Asian development
bank etc have projects and funds for development of EE and RE projects.
Ministry of Urban Development could also be approached for assistance
under their scheme like JNNURM for MSW and STP (Sewerage Treatment
Plant) projects. ADB is lending to IREDA for an Integrated Renewable Energy
Development Project which has solar roof top as one of the components.
Similarly there are bilateral funding agencies like USAID, DFID etc who can
finance or give grants to certain projects.
4.1.2 Self financing recovery of investment through tax or

tariffs
Under this model, Nagar Nigam or DISCOM (PVVNL) can allocate funds for
development of various projects under solar city programme, which can be
through loans. Tax, tariff or user fee collection could be used to self finance
the projects.
4.1.3 Project finance

In this model, project work is awarded to private entity on a PPP route and a
SPV is established which in turn enters into contract with suppliers and
buyers and financial institutions lend to the SPV based on the cash flows of
the project. Grid connected solar PV plants and large waste to energy
projects can be put up through project financing.
4.1.4 Revolving Fund

A revolving fund (RF) is usually set up to finance an explicit activity/s that is
clearly defined by the holders of the fund. RF is one time investment and it
can come from multiple sources, the best scenario here is to create a RF
from the subsidy amount that is to be obtained. This RF will be maintained
by the JNNURM cell.
4.1.5 ESCO Financing

An ESCO designs, implements and finances energy efficiency and energy
conservation projects on behalf of its customers on a guaranteed
performance basis. The project design is such that the savings will usually
be large enough to service the debt assumed to implement the measures
and leave a surplus that is shared between the customer and the ESCO. An
ESCO risks its payments on the performance of the measures implemented
and the equipment installed. Because the payments to an ESCO are
contingent upon the magnitude of the actual savings, ESCOs are often called
Performance Contractors. Some ESCOs may even finance projects,
recovering their investment from the resulting savings. In other words an
ESCO is a single-window solution to all aspects of energy efficiency
improvement.
A typical ESCO project includes the following elements:
Investment grade energy audit;
Identification of possible energy saving and efficiency improving
actions;
Comprehensive engineering and project design and specifications;
Guarantee of the results by proper contract clauses
Code compliance verification and guarantee;
Procurement and installation of equipment;
Project management and commissioning;
Facility and equipment operation & maintenance for the contract
period;
Monitoring and verifications of the savings results; and Project
financing.
A number of financing options are available for Energy Performance Contract

Projects. These include:
Bank Financing
Direct Customer Financing
Public financing (bonds)
ESCO or third party financing
No matter which option is used to finance the project, the financing of the
project is ensured through two main types of contracts:
Shared Savings, and

Guaranteed Savings.
Shared Savings:
Under a shared savings structure the ESCO finances the project, usually by
borrowing money from one or
more third parties. This
structure is much less
common than the guaranteed
savings structure. In the case
of shared savings, the ESCO
assumes not only the
performance risk, but the
financial risk as well (including
the underlying customer credit
risk). The customer assumes
no financial obligation other than to pay a percentage of the actual savings
to the ESCO over a specified period of time. This obligation is not considered
debt and does not appear on the customers balance sheet. The portion of
savings paid to the ESCO is always higher for shared savings than the
guaranteed savings projects, reflecting the ESCOs significantly greater risk
and expense for borrowing money.
Since the ESCO is a service company, it typically has few assets that it can
offer as a security to a lender. To add to this, the ESCO assumes the risk of
non-performance of the measures as well as the credit risk of the customer.
This makes borrowings by ESCOs expensive. As a commercial entity, the
ESCO has no option but to recover this cost from its customers, and this
results in higher share of the savings going to the ESCO: something not
quite in the customers best interest. For this reason this model was found to
be less attractive as ESCO markets matured. The Guaranteed Savings
system overcomes this hurdle.
Guaranteed Savings:
Under a guaranteed savings

structure, the customer
finances the project in
return for a guarantee from
the ESCO that the projects
energy savings will cover the
customers debt service.
Thus, the customer assumes
the obligation to repay the
debt to a third party
financier, which is often a
commercial bank or a
leasing company. If the project savings fall short of the amount needed for
debt service, the ESCO pays the difference. If the savings exceed the
guarantee amount, the customer and the ESCO usually share the excess
savings. The size of the share and the method of calculation vary widely,
depending on the degree of risk assumed and the extent of services
provided by the ESCO.
It is important to note that in a typical guaranteed savings project, the ESCO
has no contractual relationship with the bank or leasing company. The
ESCOs guarantee is to the customer, and is a guarantee of performance
(that the project will result in enough cost savings to repay the loan
assumed to finance it), not a guarantee of payment. As a consequence, the
bank or leasing company confines its risk analysis to the customers general
credit standing. The financial institution may regard the performance
guarantee as a form of credit enhancement.
Energy efficiency in street lighting, water pumping, and cluster based
projects in industries are some of the projects that can be implemented in
ESCO mode.
4.1.6 Municipal /Energy Efficiency/Carbon Bonds

Issuing bonds makes the most sense when the size of the issuing agency is
significant enough to attract investors for financing its ventures. Issuing
bonds involves good amount of preparatory work that consist of analyzing
and forecasting the projects financial resources, and launching a procedure
for getting credit rating from credit agency. Here Nagar Nigam can itself or
Madhya Pradesh Urja Vikas Nigam Ltd. (MPUVN) on behalf of Nagar Nigam
can issue bonds with state government or IREDA. MNRE guarantee so that
the bonds gets placed easily and fund inflow happens in time.
4.1.7 Clean Development Mechanism

If proper documentation and procedures are followed and appropriate steps
are taken as per the UNFCCC standards this would act as an excellent source
of revenue
4.2 Implementation Strategy
Table 3-1: Implementation strategy
n Implementing Responsible
o Project Agency Stakeholder Financing Model
Solar water IREDA Loans ,

heating MNRE Subsidy ,
manufacturers Carbon financing,
Solar Water /distributors rebate on
1 Heating Systems ULB/DISCOM electricity bills
ULB/State
Solar Cooker Nodal
manufacturers Agency/Private Carbon financing
2 Solar Cookers /distributors developer , MNRE Subsidy
3 Solar Lanterns
Solar Home
4 Lighting Systems Solar ULB/DISCOM/
Revolving fund,
5 Solar Hoardings Photovoltaic State Nodal
Carbon Financing
Solar Traffic Manufacturers Agency
6 lights
7 Solar Street lights
8 Solar Invertors
Renewable energy project
SPV Power Project finance,
developer (PPP)
9 Plants Carbon financing
Renewable energy project
MSW and STP developer (PPP) through BOO/BOT Project finance,
10 Power Plant basis Carbon financing
LED/CFLs Performance
instead of contract, carbon
incandescent financing, rebate
11 bulbs ESCO ULB/DISCOM on electricity bills
Energy efficient
electrical Performance
appliances such contract, Bonds,
as fans , carbon financing,
refrigerators, air rebate on
12 conditioners ESCO ULB/DISCOM electricity bills
Performance
contract, Bonds,
Energy efficient carbon financing,
water pumping rebate on
13 systems ESCO ULB/DISCOM electricity bills
Special Paper 2
Energy Efficiency in Street

Lighting- Kolar
Special Paper Energy Efficiency in Street Lighting
1 Energy Efficiency in Street

lighting systems
Municipalities are spending large amounts of their revenue on purchasing

energy for providing local public services such as street lighting and water
supply. Municipal energy efficiency saves scarce commodities and stretches
tight budgets, giving citizens improved access to electricity, water, heat and
air conditioning.
For those bearing the financial responsibility for local public services,
efficiency in the provision of energy and water is one of the few cost-
effective options available for meeting growing demands for vital services
such as electricity, water and wastewater treatment. The budgets for these
services often lack funds to invest in improvements, and public entities are
looking for ways to finance energy efficiency projects.
The major energy loads in any are typically the water pumping systems,
street lighting, sewage treatment and handling, and electricity distribution.
Municipal buildings such as offices, hospitals, schools also contribute to the
high municipal energy bills. Therefore, the following systems are those most
commonly addressed by a municipal energy efficiency audit:
Street lighting
Water Pumping
Sewage pumping
Electrical distribution
Municipal Buildings
This paper focuses on Energy efficiency strategies for Kolar Municipal council
a. Street lighting in Kolar Municipal council

Kolar has 1394 street lights positioned all over the Municipal area in which
1010 lights are 40 W tube lights, 210 lights are 250 W Sodium Vapor lamps
and 174 lights are 150 W Sodium Vapor lamps. As a part of energy saving
mechanism, Municipal Council has placed 3 timer switches and nearly 30
tube lights have electronic chokes. Total 6320 electric poles are in place all
over the municipal area as indicated by the Municipal officials. The present
status of street lighting and its load details can be summarized as in the
table below.
Energy Efficiency in Street Lighting Special Paper
Connected load details.

40 W Tube Lights
Number of lamps 1010 nos
Wattage of each lamp 40 W
Total Load 40400 W
Total Load 58800 W
Total Load 31320 W
Total Connected Load 130520 W
b. Energy Efficiency Initiative

Increasing energy efficiency will assist the ULBs and municipalities in
expanding infrastructure and improving services for public (especially in
context of energy price increases), and shift activities to more sustainable
directions. It generates environmental benefits through reduced emissions of
greenhouse gases and local air pollutants. It also stimulates new services,
creating value and local jobs. Improving energy efficiency both by reducing
quantities of energy consumed and by changing processes, offers a powerful
tool for achieving sustainable development by reducing the need for
investment in energy infrastructure and by cutting fuel costs.

a. Replacement of 1010 40 W Tube light with 8W LED lights or 28
W T5 lights
The table below shows the investment analysis and payback for replacing
the 1010 nos 40 W tube lights.
Investment analysis and payback (40 W tube lights)

Tube
Sr. Type of Calculati light LED
[A] [B] [C]
Working Hrs /Day /
1 Hours/Day - Fixture 10 10 10
Power KW / Day /
2 Consumption - Fixture 0.4 0.08 0.28
Annual Power KW/Annum
3 Consumption [2] x 365 / Fixture 146 29.2 102.2
[A]-[B], KW/Annum
4 Power Saving [A]-[C] / Fixture 0 116.8 43.8
Total Nos of
5 Fixtures Nos 1010 1010 1010
Total Power KW /
6 Saving [4] x [5] Annum 0 117968 44238
Monetary
7 Saving 3.10x [6] Rs/ Annum 0 365700.8 137137.8
8 Life of Lamp - Years 2.2 12 5

9 Cost of Lamp - Rs / lamp 0 -
Replacement [5] x [9] x
10 Cost 12/ [8] Rs/ 12 Yrs 0
11 Cost of Fixture - Rs / Fixture 1500 4500 3000
Total Cost of
12 Fixtures [5] x [11] Rs 1515000 4545000 3030000
Maintenance
13 Cost - % 10 0.5 0.5
Total
Maintenance [12] x
14 Cost [13]/ 100 Rs / 12 Yrs 151500 22725 15150
Maintenance
15 Cost [14]/12 Rs/Yr 12625 1893.75 1262.5
Salvage Value
of HPSV [12A] x
16 Fixture @ 50% 0.5 Rs - 0
[10] +[12]
17 Net Investment [16] Rs 1515000 4546893 3030000
18 Net Saving [7] - [15] Rs/ Annum - 363807 135875.3
12 x [17]/
19 Payback Period [18] Month - 149.98 267.60
Energy Efficiency in Street Lighting Special Paper
b. Replacement of 174 Nos 150 W High Pressure Sodium Vapor with

55 W LED lights
the 174 nos 150 W HPSV lamps.
Investment analysis and payback (150 W HPSV lamps)

Sr. Calculatio HPSV LED
No. Type of Fixture n Unit 150 W 55 W
[A] [B]
Working Hours / Hrs / Day/
1 Day - Fixture 12 12
Power KW/ Day/
2 Consumption - Fixture 1.8 0.66
Annual Power KW/ Annum /
[A]-[B], [A]- KW / Annum/
4 Power Saving [C] Fixture 0 416.1
Total Nos of
6 Total Power Saving [4] x [5] KW/ Annum 0 72401.4
7 Monetary Saving 2.75x [6] Rs/ Annum 0 199103.85
[5] x [9] x
10 Replacement Cost 12/ [8] Rs/12 Yrs 0
Total Cost of
5 Fixtures [5] x [11] Rs 1044000 2610000
Total Maintenance [12] x [13]/
14 Cost 100 Rs/12 Yrs 104400 13050
15 Maintenance Cost [14]/12 Rs/Yr 8700 1087.5
Salvage Value of
HPSV Fixture @
16 50% [12A] x 0.5 Rs - 0
[10] + [12]
17 Net Investment [16] Rs 1044000 2611087.5
18 Net Saving [7] - [15] Rs/Annum - 198016.35
12 x [17]/
19 Payback Period [18] Month - 158.23
c. Replacement of 210 Nos 250 W High Pressure Sodium Vapor with

130 W LED lights
the 210 nos 250 W HPSV lamps
Investment analysis and payback (250 W HPSV lamps)

Sr. HPSV LED
[A] [B]
Working Hours/ Hrs/ Day/
1 Day - Fixture 12 12
Power KW/ Day/
2 Consumption - Fixture 3 1.56
Annual Power KW/ Annum /
[A]-[B], [A]- KW / Annum
4 Power Saving [C] / Fixture 0 525.6
Total Nos of
6 Total Power Saving [4] x [5] KW/ Annum 0 110376
7 Monetary Saving 2.75x [6] Rs/ Annum 0 303534
[5] x [9] x 12/
10 Replacement Cost [8] Rs/12 Yrs 630000
Total Cost of
5 Fixtures [5] x [11] Rs 1680000 6720000
Total Maintenance [12] x [13]/
14 Cost 100 Rs/12 Yrs 168000 33600
15 Maintenance Cost [14]/12 Rs/Yr 14000 2800
Salvage Value of
HPSV Fixture @
16 50% [12A] x 0.5 Rs - 840000
[10] + [12]
17 Net Investment [16] Rs 2310000 5882800
18 Net Saving [7] - [15] Rs/ Annum - 300734
19 Payback Period 12 x [17]/ [18] Month - 234.73

300745 KW per annum and monetary savings of Rs 8, 62,557 per annum.
2 ESCO in street lighting
An Energy Service Company (ESCO) is a business company that develops,

installs and finances Projects designed to improve energy efficiency and
reduce the maintenance costs for facilities for a period of time. ESCO
generally acts as a Project Development Company for a wide range of tasks
and assumes the technical and performance risk associated with the Project.
Typically, they offer the following services
Develops, design and finance energy efficiency projects.
Install and maintain the energy efficient equipment.
Assume that the project will save the amount of energy guaranteed.
These services are included in the Projects cost and are to be met from the
savings generated
The main features of the project besides saving of energy include installation
of a central computerized control room through which operation of control
boxes can be done remotely and the information of switched off lights,
energy readings of different central boxes can be known.
Case example: Vijayawada Municipal Corporation

The VMC is presently spending nearly Rs 60 lakhs annually towards
maintenance of street lighting. VMC floated open bids for implementation
of energy saving project for Municipal Street Lighting, by inviting ESCO
operators, with a contract period of 5 years in January, 2006. This
Operation & Maintenance contract invited experienced and qualified bidders
to run the street lighting network in the entire City.
In response to the tender, bids were received from five firms of which only
two qualified in the technical bid. Out of the above firms, the successful
bidder quoted for 41.5% saving of energy and out of it, the firm offered to
take 92.7% as their share towards cost of installations and maintenance of
street lighting and to transfer 7.3% to VMC. The successful bidder quoted
the following conditions
Description
Expected Energy Savings 41.50%
Percentage share of savings to ESCO on energy units saved 92.70%
Percentage share of savings to customer (VMC) on energy units saved 7.30%
Percentage share of VMC in terms of percentage of total current 3.03%
consumption [(1) x B)]
For maintenance of street lighting including labour and materials (to be No extra
paid to the bidder by VMC) amount
Contract Economics
During the contract period, the VMC will get Rs.12.00 lakhs per annum as
its share in savings and also save Rs.53.00 lakhs in maintenance per
annum. Therefore every year, the VMC would get a saving of Rs. 65.00
lakhs per annum. During the five year contract period, the VMC will save
Rs.3.25 cores. In addition, after the contract period, VMC will be left with
the energy saving equipment worth Rs. 3.00 crores. At the end of 5 years,
VMC will get total benefit of Rs. 6.25 crores. Further, after the contract
period, the VMC will get annual saving of Rs.170 lakhs in current charges
for street lighting. Besides, for savings over and above the assured 42.7%,
the VMC will get 75% share and the ESCO will get the remaining 25%.
Consultancy Division Page l7

Darashaw & Company Pvt Ltd.

Darashaw&CompanyPvt.Ltd.
6th Floor, Express Building
14th E Road,
Near Government Law College
Churchgate (West), Mumbai 400 020
Tel.: 022 4302 2372

Fax: 022 4302 2366
Email:teamconsultancy@darashaw.com
Website:www.darashaw.com

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CityDevelopmentPlan

KOLAR, Madhya Pradesh

KOLAR MUNICIPAL COUNCIL

City Development Plan, Kolar Executive Summary

Urban Administration and Development Department, GoMP has initiated City

As of 2001 India census, Kolar had a population of 24302, having male

Population projection by various methods for Kolar

5 Physical Infrastructure: Water Supply

Town has no dedicated water supply scheme initiated as on today. Water

Overall water quantity of 8 lakh litres is being supplied everyday and on an

6 Physical Infrastructure: Sewerage

Town has no comprehensive under ground sewerage scheme as on today.

7 Physical Infrastructure: Storm Water Drainage

8 Physical Infrastructure: Solid Waste Management

9 Physical Infrastructure requirements

Demand Supply Gap Future Assessment

Solid waste generation

10 Traffic and Transportation

Major issues related to traffic and transportation is as follows:

Town has no Bus stand and bus shelters.

Town has inadequate public transport system

Intersections are poor in geometrics.

Major issues related to street lights are as follows:

12 Slums and Urban poverty

Slums and slum population in Kolar

Major issues related to street lights are as follows:

Town hasnt undertaken BPL survey till today.

13 Financials of Kolar Municipal Council

Kolar is a newly established Municipal Council formed in 2006. Hence, the

Property tax is levied at the rate of 1% of rental value for residential

Revenue Expenditure accounts for about 51% of the total expenditure on an

Establishment expenses account for 42% of the revenue expenditure on an

Operation and maintenance expenditure accounts for about 52% of the

14 Cost Recovery of Services

There is no tax on water supply. However, charges are collected towards

Cost Recovery for water supply services (in Rs. Lakhs)

Issues related to the cost recovery of the services:

No water tax is imposed and water charges are collected depending on

Survey of properties within the Municipal Council is presently underway

Implementation of Reforms is critical for achieving self sustainability for the

Reforms and Action Plans for Kolar Municipal Council

centres for Property tax collection online

Citizens Online filing of Status of complaint and action taken report

Public Health Nil Online filing and processing of D&O, PFA

The Consultant had consultations with administrative members, senior

17 SWOT Analysis of City

Lack of updated property survey and register resulting in low tax

Stakeholders Consultations and Focus Group Discussions held in Kolar

To become a self sustainable Urban Growth Centre with proper

19 Environment Improvement and Energy Efficiency

Sector Energy Saving Potential Projects

Sector Energy Saving Potential Projects

20 Project Costing and Phasing

A+B+C PHASE -A PHASE- B PHASE -C

21 Financial Operating Plan

The projects under City Development Plan will be funded as follows:

Financial Operating Plan after taking up all the projects

Funding Option Contribution as % of project cost

22 Alternate Options for funding the projects