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Bangalore City Cluster Development Project

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Bangalore City Cluster Development Project Saugata Dasgupta Urban Specialist India Resident Mission Context Smart cities development Cities will be locus and engine of economic growth Making cities competitive, livable, sustainable & bankable Make in India To make India a global manufacturing hub by creating enabling business environment and infrastructure Opening up of new manufacturing sectors in India for private sector investment and foreign direct investment Karnataka Vision- 2020 Make Karnataka a globally competitive destination Employment-driven economic development Sustainable and orderly industrialization and urbanization Why Bangalore Metropolitan Region(BMR)? Unprecedented spatial and population growth Mostly concentrated in Bangalore city so far Pivotal role in achieving Karnataka’s Vision 2020 Bangalore already exhibit some semblance of economic clusters Prevalent economic activities Potential to achieve enhanced growth and employment-driven economic development, if enabling business environment and infrastructure is created Bangalore is more service oriented economy- opportunity to lead industry-oriented development & accompanying urbanization in outer areas The State’s reform willingness Potential for replicability ADB’s long association with the State in the urban Sector The Proposed Project Objective To increase competitiveness of BMR Region in a way that also promotes inclusive and environmentally sustainable growth Key outputs/pillars to achieve the objective Strengthen regional and metropolitan planning Upgrade key economic and social infrastructure Enhance urban governance to create a better business & investment climate Key Information BMR Bangalore City Area 8000 square km 1220 square km (15% of BMR) Population 11.7 million 8.4 million (72% of BMR) Workforce 52% -highest compared to all other metros participation rate Economy 85% (3.98 million) are engaged in services as well as manufacturing sector Tertiary sector is the biggest economic driver (63%) Key sectors 1. IT (alone provide 800,000 high paying job) 2. Aerospace and Aviation industries (10,000 jobs and accounts 65% of aerospace business in India) 3. Biotechnology 4. Electronics System Design and Manufacturing 5. Automotive 6. Textile and garments 7. Manufacturing 8. Floriculture Key Features Planning Approach Cluster-based city economic development Financing Leverage project fund ($459 million) for private sector investment Structuring of new financing modalities Implementation Strategy Multi-stakeholder demand-based infrastructure development Use of purpose specific special purpose vehicles Promoting sectoral coordination and convergence Phasing of key reform actions Establishing a strong partnership between public & private sectors Planning Approach Phase 1A (Completed) A City Competitiveness Assessment Identification of key Economic Sectors and clusters Assessment of Policy, Institutional & Legal Framework A Strategy for Urban Clusters that will drive the economic growth of the region Development of criteria for selection of potential clusters Multi criteria analysis to identify potential clusters Phase 1B (On going- December 2014) Technical Pre-feasibility Studies for selected Urban Clusters Detailed Investment Programme Phase 2(Yet to Start- June 2015) Urban Cluster Business Plans for priority clusters Project Structuring and Feasibility studies Key Challenges Related to Competitiveness of BMR (Based on Multi Criteria Analysis and Perception Survey): Weak regional planning framework and local government institutions Lack of sustainable infrastructure Land cost and availability Related to Project Structuring appropriate institutional framework Securing long-term effective coordination mechanisms at state and city level Timely implementation of business-oriented and other key urban reforms Securing private participation Processing the Project by 2016 Thank you Rapid Urban Growth Bangalore Metropolitan Region 50 Km Investments trends in BMR 450 400 350 300 250 200 Million USD Million 150 100 50 - 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Aerospace Textiles inc apparel Biotech Electronics Gen Eng IT-BPM Automotive IT Parks The BMR – Primarily a Service Economy 70.0% 63.4% 60.5% 60.0% 50.0% 40.0% 35.7% 33.7% 30.0% 20.0% 10.0% 3.8% 2.8% 0.0% Primary Sector Secondary Sector Tertiary Sector BMR GDP (share of total) FY 2005-06 BMR GDP (share of total) FY 2011-12 Employment Location Quotients 30.0 27.0 27.2 25.0 22.6 22.3 20.0 19.3 15.1 15.0 11.7 Location Quotient 10.0 8.9 7.7 7.6 6.0 5.9 5.1 4.0 5.0 3.9 4.1 4.2 3.2 3.4 2.5 1.7 1.5 1.0 0.9 0.3 0.7 - Employment LQ - 2011 Employment LQ - 2005 Employment Shift Share Analysis Employment & Economic Impact 400% 364% 350% 300% 250% 200% 187% 159% 150% 118% 89% 100% 100% 70% 75% 52% 41% 41% 43% 39% 50% 22% 0% Concentration of Key Sectors Across BMR Forming a Cluster . Key considerations in demarcating a Cluster Semblance of economic activity – KIADB Industrial Area Land capability – Structure Plan recommendations Existing urban centre – ULB/CT Villages – workforce ULB/CT Potential land Industrial for CLUSTER Area development Villages Urban Clusters for Evaluation 3 14 Doddaballapur Vijayapura 1 4 Dobbaspet Devanahalli/Int.Airport 2 Nelamangala 5 Hoskote 13 Magadi 6 9 Bommasandra-Sarjapura Bidadi 11 7 Ramanagaram 10 Anekal 12 Harohalli Channapatna 8 Urban Clusters Kanakapura for Evaluation MANDYA Cluster Evaluation Criteria A total of 18 evaluation criteria were developed under four policy goals GOAL 2: Balanced & inclusive GOAL 3: Efficient GOAL 1: Economic Growth GOAL 4: Sustainable Utilities Urban Development Transport Pillar (Output) 1 Pillars (Outputs) 1 & 3 Pillar (Output) 2 Pillar (Output) 2 Home or proximity to existing dynamic Land availability for significant urban Location on Major Source of Water Supply and successful economic clusters development transport Corridor Proposed new economic sector in Likely to support social inclusiveness Future Road Potential to reuse tertiary urban cluster & equity Connectivity potential treated water Existing or proposed KIADB/LPA Existing High level Educational & Existing or proposed Sewerage Network Coverage Industrial Area Health facilities Freight Hubs Potential rail based Accessibility to Bangalore Int. Airport Land prices Scientific disposal facility public transport corridor Availability of industrial incentives & Sensitivity of environment of potential concessions expansion areas Urban Cluster Evaluation: Summary of Development Potential Balanced Efficient Sustainable Economic Growth Urban Transport Utilities Potential Development Potential Potential Potential Dobbaspet High High High Very Low Nelamangala Low High High Very Low Doddaballapur High High High Very Low Devanahalli/Int. Airport Very High Moderate Very High Very Low Hoskote High Moderate Moderate Very Low Bommasandra-Sarjapura High Moderate High Very Low Anekal High Moderate High Very Low Kanakpura Moderate Moderate Low Moderate Bidadi High Moderate Very High Low Harohalli High Moderate Moderate Low Ramanagaram Very Low Moderate High Moderate Channapatna Very Low High High Low Magadi Very Low High Very Low Very Low Vijayapura Very Low Moderate Very Low Low Urban Cluster Evaluation: Summary of Development Potential Vijayapura Magadi Channapatna Ramanagaram Harohalli Bidadi Kanakpura Anekal Bommasandra-Sarjapura Hoskote Devanahalli/Int. Airport Doddaballapur Nelamangala Dobbaspet 0 50 100 150 200 250 300 Urban Cluster Evaluation: Goal 1 Economic Growth Vijayapura Magadi Channapatna Ramanagaram Harohalli Bidadi Kanakpura Anekal Bommasandra-Sarjapura Hoskote Devanahalli/Int. Airport Doddaballapur Nelamangala Dobbaspet 0 10 20 30 40 50 60 70 80 90 100 Urban Cluster Evaluation: Goal 2 Balanced Urban Development Vijayapura Magadi Channapatna Ramanagaram Harohalli Bidadi Kanakpura Anekal Bommasandra-Sarjapura Hoskote Devanahalli/Int. Airport Doddaballapur Nelamangala Dobbaspet 0 10 20 30 40 50 60 70 80 90 100 Urban Cluster Evaluation: Goal 3 Efficient Transport Vijayapura Magadi Channapatna Ramanagaram Harohalli Bidadi Kanakpura Anekal Bommasandra-Sarjapura Hoskote Devanahalli/Int. Airport Doddaballapur Nelamangala Dobbaspet 0 10 20 30 40 50 60 70 80 90 100 Urban Cluster Evaluation: Goal 4 Sustainable Utilities Vijayapura Magadi Channapatna Ramanagaram Harohalli Bidadi Kanakpura Anekal Bommasandra-Sarjapura Hoskote Devanahalli/Int. Airport Doddaballapur Nelamangala Dobbaspet 0 10 20 30 40 50 60 70 80 90 100 Potential Clusters Doddaballapur Vijayapura Dobbaspet Devanahalli/Int. Airport Nelamangala Hoskote Magadi Bidadi Bommasandra-Sarjapura Ramanagaram Anekal Channapatna Harohalli Potential urban Cluster Kanakapura MANDYA City Competitiveness Assessments • ADB – Survey of 39 cities in SE Asia 2011, Bangalore 3rd – second to Mumbai in India • World Bank “Doing Business in India” 2009, Bangalore 13th out of 17 cities • India Competitiveness Report, 2013, Bangalore 8th in a survey of Indian cities • Economist Intelligent Unit, based on 32 indicators, placed Bangalore 94th out of 120 cities worldwide. Mumbai was 51st & Delhi 69th • But this relatively poor competitive showing does not mean that IT in Bangalore is not internationally competitive; • Nor do strong clusters make a city competitive – indeed the effect of the success of IT is to drive up costs for other economic sectors. Perception of the Business environment in BMR 0.90 0.830.83 0.84 0.79 0.790.79 0.80 0.80 0.80 0.77 0.76 0.76 0.73 0.73 0.710.710.71 0.73 0.69 0.69 0.69 0.69 0.70 0.67 0.67 0.670.67 0.630.63 0.60 0.61 0.60 0.50 0.40 0.40 0.40 0.30 0.20 0.20 0.200.20 0.20 0.10 0.00 Institutional Options One ULB co-terminus with the area of the Cluster – will, however, require extensive capacity building and regulatory amendments for empowering ULB Formulate an SPV with private sector participation by positioning the Cluster as an National Investment and Manufacturing Zone .
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