Indian Institute of Public Administration, New Delhi JNJN-NURM CDP Appraisal Report VARANASI

1) Eligibility and Category The city of Varanasi is an eligible city for funding under the JNNURM. Varanasi comes under the Category B ( million plus population ). The population of Varanasi as per 2001 census is around 12 lakhs. 2) Willingness to Undertake Mandatory Reforms The CDP addresses the issue of reforms to be undertaken in section 31, from page 179 to page 187. The mandatory reforms have been addressed at section 31.2 where both state level and city level reforms to be undertaken have been listed. The reforms identified at the city level are as follows : effective implementation of 74th CAA by way of constitution of Ward Committeed and DPCs Complete transfer of funds, functions and functionaries to the Municipal Corporation of Varanasi Reform of rent control act Rationalisation of stamp duty Enactment of public disclosure law Effective implementation of RTI Act Institutionalising community participation by way of Citizen's Charters, Report cards, etc. Better coordination between various agencies Establishment of Association of Municipalities at state level

At the city level, the following reforms have been identified : adoption of modern accrual based double entry system of accounting in the ULBs introduction of e-governance reform of property tax system levy of reasonable user charges internal earmarking within local body budgets for basic services to the urban poor

provision of basic services to the urban poor including security of tenure.

The chapter gives substantial amount of details of the reforms to be taken up. Discussions with Sh. Anil Kumar Sagar, IAS, Director, Local Bodies, UP and Prof. Nishith Rai, Director, RCUES have revealed the keen interest being evinced by the Govt. of UP in seriously undertaking the rreforms under JN NURM. Therefore, it can be seen that the willingness to undertake reforms exists. 3) Consultations and Ownership of the CDP Section 20, pates 132 to 136 discuss the aspect of stakeholder consultations. The CDP recognises that " the process of CDP being a multi disciplinary platform includes various stakeholders who work towards the development of the city. As the stakeholders know the city better and are responsible citizens, their views are important at every step, while preparing the CDP ". In all, seven consultation workshops have been conducted. The details of each of these consultations have been put in Annexure VIII. According to the CDP, the process was a two stage one; consultation for the purpose of making the people understand the existing situation while participation process for involving the people to take decisions. This is in fact the spirit of the JN NURM; to involve the local people in actually taking decisions. A detailed look at the Annexure VIII has revealed that most of the consultations were with the government officials. However, the meeting dated 20th July 2006 did reveal that non-government organisations were also consulted, although their names were not mentioned. Therefore, a query was made accordingly and a reply was received as under on October 10th, 2006 : The following non-governmental organisations were consulted : Varanasi Sari Udyog Sankat Mochan Mandir Varanasi Weaver Association INTACH Varanasi Chapter District Industrial Association and Fruits and Grain Mandi Samiti

Private Stakeholder Consultations (NGO)

Name of the Stake Holder: Date of Discussion Time of Discussion Discussion Team

District Industrial Association

20/07/06 11 am 1) Chaired by Mr. R.J..Singh Director Dist Industrial Center 2) Team from FeedBack a) Dr. Siddiqui b) Mr. Ankur Mishra c) Mr. Vishal Aggrawal d) Mr. Sandeep Singh 3) Team from various Private Stakeholders. Varanasi a) Head of Different Industrial association b) Representative of Market association c) Representative of Mandi Association

Discussion Agenda:

To make aware of various provisions of JNNURM to all Private stakeholders

Focus Areas The focus was major on the trade linkages of the city within and outside the city. The major production of the area. The existing mandi situation and the holding capacity. Also the proposal for new mandi was focused upon. . Summary of Discussion The discussion was focused on the trade linkages, association of mandi representative detailed us the functioning of mandi and the characteristics of the trade going on. Also discussion was done on the new proposal of mandi shifting to the new place & its inclusion in Preparation of CDP.

Name of the Stake Holder: Date of Discussion Time of Discussion Discussion Team

INTACH Chapter Varanasi

20 July, 2006 11.30am 4) Chaired by Mr. P.K.Shrivastav Ast. Municipal commissioner Varanasi 5) Team from Feedback a) Dr. Siddiqui b) Mr. Ankur Mishra c) Mr. Vishal Aggrawal d) Mr. Sandeep Singh 6) Team from various Private Stakeholders. Varanasi
th

a) President & representative of INTACH Chapter Varanasi

b) Gov t Representative of tourism department

Discussion Agenda:

To make aware of various provisions of JNNURM to all Private stakeholders

Areas The focus was on improving heritage buildings in Varanasi. Traditional buildings & other important tourist destination were identified for renovation Emphasis was given to prepare CDP with major emphasis on tourism & Heritage Maintenance of ghats & provision of level route along the ghats for handicapped person were the major points of discussion Summary of Discussion The discussion was focused on improving the image of Varanasi as major tourist destination with especial focus on foreign tourist. Discussion was also done to create Varanasi CDP as heritage centric Provision of modern tourist facility along major ghats & tourist destination were part of discussion

Focus

Name of the Stake Holder: Date of Discussion Time of Discussion Discussion Team

VARANASI SARI UDYOG

6 June, 2006 11 am Team from FeedBack Dr. Siddiqui Mr. Ankur Mishra Mr. Vishal Aggrawal Mr. Sandeep Singh Team from various Private Stakeholders. Varanasi (NGO) President Varanasi sari Udyog Representative of Silk sari association
th

Discussion Agenda:

To make aware of various provisions of JNNURM to all Private stakeholders

Focus Areas The focus was major on the improvement of sari business in Varanasi Discussion was also done on the condition of traditional handloom business of Sarnath area Need was felt to establish export promotion zone for traditional silk sari & handloom sari in Varanasi & Sarnath region Summary of Discussion The discussion was focused on betterment of families involve in silk saris business, representative detailed us the functioning of Silk sari business and the characteristics of the trade going on. Also discussion was done on establishing export promotion zone for silk saris in Varanasi

Name of the Stake Holder: Date of Discussion Time of Discussion Discussion Team

VARANASI Weaver Association

8 June, 2006 10 am Team from FeedBack Mr.P N Dongre Mr. Ankur Mishra Mr. Vishal Aggrawal Mr. Sandeep Singh Team from various Private Stakeholders. Varanasi (NGO) President Varanasi Weaver association Mr Ateaik Ansari Representative of Weaver Association
th

Discussion Agenda:

To make aware of various provisions of JNNURM to all Private stakeholders

Focus Areas The focus was major on the improving the condition of weavers associated with this business. Discussion was also done on providing mechanical equipments to the weavers for increasing there efficiency Need was felt to establish industrial park with facilities like: computerized design center, machine driven handlooms, export zone for promotion of trade in varansi Summary of Discussion The discussion was focused on the providing mechanized facilities to weavers involved in handloom & carpet business in Varanasi. Provision was provide for establishing integrated industrial complex in Varanasi

Name of the Stake Holder: Date of Discussion Time of Discussion Discussion Team

SANKAT MOCHAN MINDIR

13-14 June, 2006 11 am Team from FeedBack Mr.P N Dongre Mr. Ankur Mishra Mr. Vishal Aggrawal Mr. Sandeep Singh Team from various Varanasi (NGO) Mahant: Sanket Mochan Mindir (Vir Bhardra singh) Representative of Dashashvamedh Ghat, Manikaran ghat
th

Discussion Agenda:

To make aware of various provisions of JNNURM to all Private stakeholders

Focus

Areas The focus was given on improving the condition of Ghats in Varanasi for tourist Detailed discussion was done regarding renovation activity pertaining to ghats. Need was felt to establish tourist information center on ghats & to provide better tourist facility during time of Dashera mela Religious places were identified for renovation & lightning Summary of Discussion The discussion was focused on the taking view of different pujaries & maheant of different religious places regarding provision of different facility on ghat

It was also clarified that municipal councillors and slum dwellers were also consulted. It was further clarified that several individuals were also consulted as mentioned at section 20.3 on page 136. Therefore, the CDP appears to have the ownership and approval of the local population. 4) Project Identification and Prioritisation A detailed account of the project identification and prioritization through the consultative process is given on page 141. Identification of projects was done based on the following factors : - rapid assessment of levels and condition of basic services - vision and strategies adopted for the development of the city which have evolved as outcomes rather than inputs - future requirements in terms of normative standards which helped understand the gaps in the service delivery. Sector specific key issues identified during the situation analysis have been taken forward towads formulation of vision / strategies and identification of projects. Various activities under the broad head of a project have been identified. Each project has been attached with a weight vector by various stakeholders at the city and state levels, which reflects intensity of requirement / significance of a particular infrastrucutre project in the city. There is another vector attached to each project which is called as sign vector, meaning that a project would have positive or negative impacts in terms of economic, social , environmental and visual impage / appeal. The two vectors ( sign vector and weight vector ) taken together helped quanfigy priority of a project. Based on the above, the consultants developed an equation and all projects have been valued on a ten point scale against these two vectors and the quantified priorities achieved. Depending on the aggregate score achieved, all projects have been put in tree categories namely : - low priority - aggregate score of 0-3 - medium priority - aggregate score of 4-6 and - high priority - aggregate score of 7 and above. The details of the projects thus identified has been given in Annexure XII.

Therefore, from the above exercise, it is evident that the consultants have done the project identification and prioritisation in a rational manner, reflecting local aspirations as well as other considerations. 5) Project Structuring Project identification has been done in a systematic manner as indicated in page 141 wherein existing deficiencies and future shortfall / requirements have been identified and then the projects have been proposed. The project structuring in terms of breakup between various sectors, various agencies and the two sub-missions has been done. Phasing has also been indicated over the entire period of JN NURM. In fact, while structuring the projects, in each sector, the projects, location, benefits and sub projects have been worked out for all sectors as indicated in section 22 to 30. This has been indicated in a tabular statement clearly. From this , one can see clearly what is the overall growth path and to what extent the JNNURM can contribute in this phase. Table 75 gives the project costs. Table 76 gives the year wise fund requirements. Table 77 on page 201 gives the sectoral funding pattern. The costing and investment plan is in order . The overall funding needed is Rs.3,072.58 crores out of which Rs.2,556 is the cost for Sub Mission I and Rs.516 crores for Sub Mission II. It can be seen that the major portion of the funding requirement is in the urban infrastructure segment. A look at the type of urban renewal projects identified indicates that the peculiarities and uniqueness of the heritage, cultural and tourist significance of the city of Varanasi and the river Ganga have been taken into account. Adequate emphasis has been laid on development of the ghats and the river front. Capacity building for governance and reform has also been included in the costing. The financing strategy has been indicated for each and every project. It can be concluded that the project structuring is satisfactory. The CDP gives the financials; year wise, organisation wise, sector wise and project wise. From this, the picture becomes very clear for each organisation, sector and project. Although the presentation of the financials has not been done in a manner which is easily comprehensible, the overall project structuring is in order.

6) Private Sector Participation The CDP recognises the importance of private sector and envisions private sector participation where ever it is possible. In fact, specific areas have been identified. Section 32.9 on page 206 discusses this under the head ' Projects Identified for PPP'. The CDP recognises that a PPP is a partnership between the public and complementary sector ( private sector ) for the purpose of delivering a project or service which was traditionally provided by the public sector. The response of stakeholders in the city to public private initiatives has indicated that the Municipal Corporation of Varanasi can now choose between various cost effective models involving public private partnership to upgrade the quality of basic services and other urban amenities in the city . The CDP has identified as many as 8 out of 14 sectors for public private partnerships. These are urban renewal, heritage, solid waste management, urban transport, environment, basic services to urban poor, institutional reforms and public awareness programmes. 7) E-Governance As a part of the institutional reform package, introduction of egovernance system in the Municipal Corporation of Varanasi has been proposed. Some of the interventions proposed by way of adopting advanced technologies in information and communication technology are - creation of ten Citizen Service Centres / Lok Vani Centres at convenient locations in the city - each CSC/LVC to contain 5 computers and infrastructure - development of website of MCV - citizen centre to be outsourced - computerisation of all procedures such as accounting, taxation, etc. - Improving property tax collections by GIS based property mapping - Street naming, property numbering and photographs of properties to be put on computer - Computerised system of billing and collection From the above, it can be seen that comprehensive e-governance efforts are in place.

8) Urban Poor and Slums Section 17 of the CDP report from page 112 to 124 deals with basic services for the urban poor. It deals with the general characeristics of slums and urban poor in Varanasi and their access to basic services. According to this chapter, Varanasi has 227 slums spread all over the city. The total population living in slums is 4.5 lakhs which is about 38 percent of the total population of the city. These 227 slums have formed 21 community development centres which are responsible the the overall development of the slums along with the SUDA. The chapter provides exhaustive data on the spatial location of slums, population concentration of slums, various characteristics, etc. Detailed information on access to services has also been provided. The BPL population is about 1 lakh persons. In section 30 from page 175 to 178, the proposals for improvement of slums and urban poor have been given. Comprehensive provision of various services, shelter and other amenities has been made. While in some slums, the provisions shall be in-situ, in others it would be by way of relocation. It is evident that the issue of slums and urban poor has been adequately addressed in the CDP and appropriate provisions made in the proposed projects. 9) Sustainability It can be seen that while the contribution of the Central Government would be 50 percent and that of the Government of UP would be 20 percent, the remaining 30 percent shall be contributed by the MCV and other parastatals. It can be seen that out of this 30 percent, the major portion is that of the MCV itself. Overall, the MCV needs to mobilise approx. Rs.246 crores over the period of 7 years. The Financial Operation Plan ( FOP ) has been designed taking into account the sustainability of new identified projects and gives an idea about the alternate source of financing alongwith the investment pattern. Scenario building has been done in terms of 2 alternate scenarios; a) Base Line Investment Scenario and b) Sustainable Investment Scenario. In the second scenario, the growth in revenue and reduction in expenditure has been considered to reach the goal of achieving financial sustainability after considering the total investments projected in the investment plan.

Presently, less than 50 percent of the properties in Varanasi are assessed to tax. Further, the tax rates have been based at year 1978 with no revision since. Assuming increase in coverage, revision in base, rationalisation in rates, improving collection efficiency, incorporation of public private partnerships, e-governance and other reforms, it is assumed that the financial position of the MCV would improve to a great extent and thereby, the investments of MCV in JNNURM would become viable. Further, with the overall governance and other reforms and capacity building and enforcing tax coverage and collection discipline, the future maintenance and sustainability of the projects could be ensured. To implement and sustain large investments, organisational and governance capacities are the key. 10) Overall Quality of Content of Report

The city of Varanasi is an integral and inseperable part of the lives of Indians. It has immense historical and religious significance. People from all parts of the country as also from various other countries flock to this ancient holy city. The CDP takes a comprehensive view of the city of Varanasi and projects a vision of an economically vibrant, culturally rich and liveable tourist city. This vision statement reflects the desires and aspirations of all Banarasis. The concerns of Varanasi as an international tourist destination, culturally significant heritage destination, provision of adequate infrastructure facilities, urban renewal of inner city, intensification of economic regeneration , taking care of slums and the urban poor have been addressed. The overall vision and sectoral strategies have been well articulated. The overall quality and contents of the report are good. The report has been professionally prepared in a detailed, scientific and methodical manner and is very clear and comprehensive. 11) Adherence to JN NURM Toolkit

The report is in conformance to the JN NURM guidelines. 12) Recommendation

The CDP Varanasi is a well developed document, incorporating local and statutory requirements. The report is well written and colorfully

presented, making the comprehension easy, except of course for the financials where the presentation could have been better. The city development vision has been well articulated. The vision of the CDP is to make the city an economically vibrant, culturally rich tourist destination. The vision lays emphasis on heritage and cultural preservation, revival of traditional household industries and providing basic infrastructure to all. The report is acceptable and the next stage of DPR preparation may be initiated.

12th October, 2006 ____________________________________ ( Prof. Dr. P.S.N.Rao ) Professor of Urban Management IIPA, New Delhi