Name: PUA, JERSON F.

Section: 4CEA

AMRITSAR CITY DEVELOPMENT PLAN

(Summary)
The City Development Plan for Amritsar has been prepared very well. The revised report is
comprehensive and has incorporated relevant aspects concerning religious, social, cultural and
environmental heritage of the city.
The report, developed through consultations, addresses adequately the needs of the town and
presents a set of well articulated strategies to meet with its vision to make:
Vision and Strategies:
Amritsar to be an international cultural, historical, pilgrim centre with agro-based food
processing destination, having improved world class urban infrastructure & transport system.
Further, it shall cater to the needs of the surrounding settlements as a central place for their
social needs like health & education. The development shall be environmentally, economically
and socially cohesive for tapping the hidden potentials of the city, both as a tourists & centre as
trade & commerce hub.
The goals to achieve the vision, as identified by the city are:
1. Sustainable economic development of the city based on its inherent strengths:

Through conservation, preservation and development of heritage, culture (Urban

Renewal)

Promotion of tourism

Promotion of trade, education and industrial sectors

Planned city growth

2. Integrated infrastructure development with a focus on strengthening existing systems,

augmentation, equitable coverage and sustainability:

Improved access to housing and urban basic services to the urban poor

Efficient and Responsive Municipal Corporation/Urban Governance

Summary by sectors is as follows:

City Economy and Growth:

The city of Amritsar is a trading city of the state of Punjab. The city has traditionally been a trade
link to central Asia, Europe and China for the Indian subcontinent. It has the potentiality to
become major trade and export centre of the country. The city is known for its religious
significance, cultural vibrancy that is rooted in its folk traditions and social harmony. Given its
location in the border and due to disturbances in the 80s and the 90s the population growth has
been generally slow. However, during the past decade the city experienced a rapid growth. With
trade between Pakistan and India improving, the prospectus of Amritsar as a trade centre has
improved. The economy has shown vibrancy which is visible in the new developments dawn in
the city-scope. The number of people visiting Amritsar has increased many folds. According to
an estimate about 50,000 people visit Golden temple every day. All these have impact over the
socio-economic context of the city.
Unregulated growth, urban sprawl, increasing land use conversions within the old city placing
pressure on the overburdened infrastructure are major areas of concern. While the inflow of
visitors has risen, the facilities available within the city are limited. Declining industrial activities
is also a major concern. The economic potential of the city as a trade and logistic hub, as an
international tourist centre need to be exploited. Given the trends the city is likely to grow from
the present 1 million people is likely to grow to 1.5 million by 2025. A detailed Master Plan
through integrated approach needs to be formulated which will carry forward the proposals
under the CDP.
The population growth rate adopted by the city for forecasting future appears to be on the lower
and may need examination while finalizing the DPRs.

Overall Infrastructure Needs and Projects:

The infrastructure gaps are large. The needs of the poor, who constitute about a third of the
population, are even greater. Overall investment requirement for the period 2006-2025 as
identified is about Rs.3150 Crores(1 crore=10million rupees). Further these have been
prioritized and phased out over a period of time. For the JNNURM(Jawaharlal Nehru National
Urban Renewal Mission) plan period, the proposal is to reach a target investment of Rs. 2243
Crores of which Rs. 923 Crores will be on the municipal balance sheet and the other sources
include funding from GoI and GoP under JNNURM and the rest of Rs. 1320 through publicprivate partnership mode. The present status and proposed sectoral allocation of Rs. 923
Crores (of Municipal Projects) proposed under JNNURM framework is summarized below:
A. Urban Renewal: An amount of Rs. 36 Crores (4%) have been identified for
projecting related to Urban Renewal. A detailed comprehensive plan is proposed

and an initial identification of needs are for walled city up gradation of physical
environment, conservation of heritage building (in partnership with people) IEC
activities, developing and organizing city walk tours etc. Improvement, renovation
and replacement of infrastructure facilities (Water and sanitation and roads) have
been included as part of respective sectoral proposals.
B. Water-Sanitation: The Municipal Corporation of Amritsar (MCA) is responsible
for urban services in the city, including water supply, sewerage and solid waste
services over an area of 11,495 ha. In year 2004, a development Plan was
prepared to cover the city with 100% water supply and sewerage facilities along
with construction of treatment plants. The city presently depends exclusively on
ground water. The distribution is on intermittent basis and the only form of
treatment is disinfection by the addition of bleaching powder at a limited number
of the wells. The system is old and poorly maintained, with the result that
estimated water losses are very high (63%). No water production meters have
been installed. It is estimated that 80% of the total population of Amritsar has
access to potable drinking water supply and that 51 of the 60 city wards are
served. The remaining 9 wards are reported as having "partial water supply"
meaning that the area of coverage is limited. There are about 1.26 lakh
connections. Water charge is based on volume (in case of metered connections
which are very few-40 numbers) and for others its based on the floor area of the
house. The rates increase with increase in the size.
C. Sewerage: The MCA operates and maintains the public underground piped
sewerage system. The system consists of some 59 kms of large diameter (above
400mm) sewers and around 499km of small diameter lateral sewers (below
400mm). Assuming 6.2 people per household (as used in water supply
calculations) and the stated figure of 94,928 domestic connections, it can be
estimated that 588,554 people are served. This represents 56% of the estimated
2005 population (1,043,926). There is currently no sewage treatment operating
on the domestic sewerage system. They generally pump sewage directly into an
adjacent watercourse, mostly the towns storm water drains or nallahs. All the
nallahs are heavily polluted throughout the city, not just with grey, water but also
with foul sewage and domestic refuse. All run in close proximity to housing, and
some of the poorest communities have actually colonised the banks of the

nallahs. The nallahs cause a significant eyesore and pose a substantial health
risk to the adjacent communities.
D. Solid Waste: There are 235 Mohalla Sudhar Committees (MSCs) within the city,
representing specific localities, which undertake the responsibility of house-tohouse collection of solid waste by engaging and supervising a limited number of
safai sevaks (sanitary workers).
Proposal: The water-sanitation sector which includes water supply,
drainage and sewerage, and solid-waste management accounts for 34% (Rs.
321 Crores) of the overall investment proposed as ULB project during the period
2006-12. This integrated project also includes the needs of the poor and aims at
achieving internationally acceptable standards with regard to delivery of service,
efficiency in operations and cost recovery. A detailed project report has been
already prepared.
E. Urban Transport: The road network of Amritsar is primarily radial with all the
regional roads leading to core city. The G.T. Road forms the Central spine of the
city. Most of the development in the city has taken place along these radial
routes. The city does not have any distinct ring road, although a Circular Road
does exist in the new parts of the city. The Amritsar-Delhi railway line that also is
an international link with Pakistan is a major physical barrier for traffic movement
within the city. Congestion, parking, pollution are some of the identified issues.
Proposal: Major investments are proposed for Urban Transport sector
(54%). The projects include making walled city accessible with pedestrian and
NMV (Non-motorized Vehicles) initiatives, road network improvements with major
component on extension of elevated road system, other grade separated
facilities.
F. Urban Poor Housing and Services: There are about 30% of the population
living in slum areas. Many of these pucca houses but are quasi-legal and/or lack
major services.
Proposal: An amount of Rs. 70 Crores (98%) have been earmarked for
Urban Poor Housing and services.

Institutional Development:
A. Current Framework: MCA provides most of the services. Institutional capacity
building is a priority. Solid Waste is managed on Public-Private Partnership (PPP)
mode.
Proposal: MCA has severe limitations in terms of institutional capacity and
systems. Capacity building activities such as training, expanding e-governance
activities etc., are planned (Rs. 11 Crores).
B. Urban Finance: The analysis of the Municipal Fund presents that own revenue
sources contribute about 95% of the municipal revenues of this 52% comes from
Octroi(a tax levied on certain goods brought into a city) and about 6% from
Excise duty on liquor. Octroi has been abolished in the state of Punjab w.e.f
September 2006, and the Municipal Corporation will receive Octroi compensation
grant in lieu of this action. As a result this would constitute assigned revenue and
would be formula based and not directly relevant to municipal functions.
Considering that Excise Duty and Octroi compensation would be state transfers,
the reliance of the ULB on state transfers would go up substantially from the
current nominal 5% to about 60%. These transfers are generally not predictable
and would not accrue to the municipal fund on a timely basis, thereby
constraining the municipal working capital.
MCA would need to enhance their own revenue sources, especially:
1. House tax which is very low (average annual demand of Rs. 400 per
assessment) and has been poorly administered as is evident from the poor
collection efficiencies (40%)
2. Setting tariffs for water and sewerage services and ensuring collection
efficiencies at least to the extent that the realizations meet O&M (Operations and
Maintenance) costs in the medium term and the life-cycle cost in the long term
MCA has a large land holding (valued at about Rs. 7,000 crore), they should evaluate

and implement appropriate interventions to put this resource to effective use in a manner that
facilitates land use / activity / sprawl control and revenue enhancement for the Municipal
Corporation, rather than through mere sale of land.
On the expenditure side, the O&M expenses have grown at a CAGR (Compound Annual
Growth Rate) of about 24%, which is very high compared to normal inflation rates. This could be
attributed to inefficient management of the utility systems. The CDP identifies energy audits,

which is highly recommended. But MCA may also want to consider a carrying out business
process reengineering exercise to identify and address other functional and systemic
inefficiencies, including HR (Human Resources) elements such as right-sizing.
The FOP is elaborate at the macro-level, but needs to be fleshed out further to ascertain
the impacts of the actual investments based on relevant information and detailed cash-flows
emerging from the DPRs for each project. The investment sustenance figure of Rs. 1,086 crore
would depend on the actual impact of the proposed projects (in terms of the coverage of the
proposed infrastructure systems and actual O&M costs that depend on technology choice).
However, at the aggregate level analysis, the investment sustenance of Rs. 1,086 appears
justified.
Reform time line has been given. The city has been advised to host the CDP on the
website for public review. A copy of the municipal councils approval will also need to be sent.
Conclusion:
In general the plan is in accordance with the JNNURM Tool Kit and is sound enough to
serve as the basis for project identification, financial and reform planning and monitoring. CDP
is recommended for approval.
However, as Amritsars prospects largely revolve around the religious heritage of the city
it is felt that an elaborate plan with more broad based consultations (including the people living
in other parts of the world) to position the city as an international cultural, historical, pilgrim
centre is required. The plan need to carry out a more detailed analysis of city economy, its
potentials and constraints, the analysis of finance, financing strategies etc., to realise the
projects proposed under municipal and PPP mode organizational restructuring and project
management framework need to be evolved. The guidelines developed for Heritage Cities
under JNNURM would be of use. The same may be submitted within a period of one year.
.