1. 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

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

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

4. 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 : Rs. 135 crore
Main sources of income: Property tax (21%) and Octroi compensation (44%)

5. 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.

6. 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

7. 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.

8. 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.

9. 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.

10. 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

11. 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.

12. IMC’s Achievements Total Revenue Own Revenue Rs. 126 crore
Total Revenue
Rs. 16 crore
Own Revenue
Rs. 56 crore

13. IMC’s Achievements

14. 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.

15. 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.

16. 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.

17. 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.

18. Thank You