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

Structure of the Presentation Introduction to Indore Municipal Corporation Reform efforts IMC’s achievements Future challenges.

Indore Municipal Corporation Indore Nagar Palik (Municipality) was established in 1870 and given its present status of a Municipal Corporation in 1956.

Introduction to IMC Municipal area of 130 sq km (51 sq miles) Population of 1.7 million Population growth of 44% between 1991 and 2001 Trade and commercial center of the State of Madhya Pradesh Large center for textile, engineering and machinery industry Municipal income in 2001-02: Rs. 135 crore Main sources of income: Property tax (21%) and Octroi compensation (44%)

City Development Strategy IMC developed a City Development Strategy (CDS) with public consultation and support from the Urban Management Program Main objectives of CDS are: Improved delivery of services; Resource mobilization with focus on management; Expenditure management; and Better communication with the citizens.

Improvements carried out Reform Efforts Improvements carried out Revenue generation Enabling steps Self-assessment of property tax on area-based system Reassessment of under-assessed properties Focus on revenue management Property surveys Reorganization of Revenue Dept. Accrual-based accounting Computerized billing and database mgmt. Narrative- IMC’s efforts have been truly balanced Mix of revenue yielding and supporting system improvements Special mention of computerisation

Reform Efforts Computerization Private agency for software and database creation Connectivity between all zonal offices and HO Computerized cash collection counters at all zonal offices Integrated database of property tax, water connections and business licenses Linkage between revenue and accounting modules Tax information on internet for transparency Others Project monitoring Digitization of maps and GIS.

Reform Efforts Decentralization to Zonal Offices To facilitate better services to the citizens Assessment and collection of all taxes Issue of business licenses New water connections Birth and death certification Maintenance and capital works (roads, water works, etc.) Health and sanitation services Public grievance and their redressal.

Reform Efforts Reorganization of Revenue Department Creation of 3 separate sections for Survey, Assessment and Recovery, vigilance teams also constituted Financial Management Computerized double-entry accrual-based accounting Communication with Citizens Citizen’s charter issued, timebound permissions ‘Nagrik’- magazine on municipal management Hoardings with important information, dates, rules, etc.

Reform Efforts Capacity building Training all of all Revenue Dept staff by Institute of Mgmt Studies Data sharing with other Government Depts. Registrar Office MPEB E-Governance Functional website

Reform Efforts USAID FIRE Project support to IMC to Improve revenue base Resource Mobilization Initiative Study conducted by CRISIL Infrastructure Advisory Management of Municipal Assets Inventory of municipal assets Optimal use of municipal properties Energy Savings Program.

IMC’s Achievements Total Revenue Own Revenue Rs. 126 crore 1995-96 2001-02 Total Revenue Rs. 16 crore Own Revenue Rs. 56 crore

IMC’s Achievements

Other Achievements of IMC Social security network Accident insurance for all citizens Health insurance for senior citizens Public participation in construction of cement/concrete roads Environmental upgradation ‘Pitra-Parvat’ urban forestry project Rs. 15 crore expansion of the city zoo More than 8 flyovers/bridges under construction.

Key Success Factors Hands-on and direct involvement of Mayor and Commissioner Crucial personnel involved in design and implementation Simple measures implemented with immediate and visible effects Priority to those measures that benefit the public.

Replicating IMC’s Success Local Champions Appropriate State Government Support Good M.I.S Simplify Procedures for Assessment, Billing and Collections City Challenge Fund (CCF) could Support Additional Expenditure to Introduce Reforms.

Future Challenges Continued focus on revenue mobilization Rationalization of taxes Improved cost-recovery in water services Cost-benefit analysis of new projects Heavy investments needed in improving the infrastructure. Capacity building of staff.

Thank You