Technical Assistance Consultant’s Report

Project Number: 7106 May 2011

India: Preparing the Urban Development Project—Urban Sector Road Map

Prepared by: GHK Consulting Limited, UKG, in association with STUP Consultants P. Ltd., IND, and Castalia Strategic Advisors, USA

For Urban Development and Housing Department,

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Bihar Urban Development Investment Program (BUDIP)

Urban Sector Road Map Volume 1 of 4 FINAL

May 2011

Urban Development & Housing GHK, UK Department Government of Bihar in association with

Castalia Asian Development Bank (ADB) STUP Consultants

DISCLAIMER The contents of the reports are the recommendation of the consultants engaged under the project preparatory technical assistance (PPTA) by the Asian Development Bank (ADB). ADB missions subsequent to the PPTA will conduct due diligence and may modify the scope, implementation arrangements, safeguard measures and analysis. Therefore, the subsequent ADB‘s official documents (such as the legal documents, the framework financing agreement, the report and recommendations of the president, the facility administration manual, the aide memoirs) will supersede the contents of the reports, in case there are conflicts.

This submission is in 4 Volume.

Volume 1: A State-wide Urban Sector Development Roadmap - An ADB MFF requires a road map (i.e., a sector strategy). Investments consistent with the road map will be financed under the related MFF. The road map define (i) the strategic directions for a sector, service, or industry; (ii) its importance to growth, poverty reduction, gender and development, and inclusiveness (or the extent to which it is a binding constraint); and (iii) the list of success factors for better performance. The road map includes a detailed assessment of physical and non- physical investments. These assessments highlight the main investment and non- investment bottlenecks, risks, and mitigation measures. This Road Map information then informs the strategic context, policy framework, and investment programs as well as the interventions needed and their sequencing.

Volume 2: Investment Program - The ultimate objective of the investment program is “sustainable economic growth through improved quality of urban life”. The Investment Program seeks to improve the quality, coverage, and reliability of water supply and wastewater management services for an estimated 1.6 million residents in four participating towns in Bihar. Enhanced financial sustainability of these services is essential. Under the Investment Program, service providers will have clear roles and strengthened lines of accountability, be reoriented toward cost recovery and sustainability, and be motivated to perform. The investment program focuses on the sub-sectors, which promises maximizing the economic potential of the state. The Investment Program covers (a) Identification of the specific towns and sub-sectors for ADB financing,(b) urban local bodies regulatory reforms required for making urban development efficient, (c) reforms required improving financial governance, (d) shortlist of the subprojects in the selected towns, with broad description and indicative cost, (e) feasibility and uncertainty assessment to identify the implementation sequence of the short listed subprojects, (f) sector-wide economic, financial, social analysis and safeguards framework. The geographic coverage of the investment program is the four towns with highest economic growth potential under four sub-sectors as prioritised by the road map

Volume 3: Sector Reports - Volume 3A covering (i) Economic development, (ii) Urban service delivery, and (iii) Cost of Road map implementation. Volume 3 B: include (i) Physical and non-physical investment in urban service delivery namely, water supply, sewerage, solid waste management, and drainage, (ii) Urban governance plan, (iii) Sector investment plan and (iv) Implementation arrangements and (v) Financial management assessment.

Volume 4: Social and Environmental Safeguards – Covered in this Volumes are: Social analysis, Poverty reduction and social strategy, Gender and social action plans, Environment assessment, resettlement framework, Indigenous peoples development framework and Consultation and participation planning framework.

Acknowledgements

“Any city however small, is in fact divided into two, one the city of the poor, the other of the rich. These are at war with one another.” Plato (BC 427-BC 347)

During the tenure of this assignment, help, co-operation and assistance have been obtained from a large number of individuals, government departments, local bodies, para-statal agencies, social workers, representatives of NGOs and CBOs. They have provided their valuable time and suggestions to members of the PPTA team to assist in this study. It is rather difficult to thank them individually. We express our sincere thanks to all those people collectively.

Their support, encouragement and insights into the social, economic, environmental and infrastructure problems of the study area and the sector as a whole have provided an essential input into the proposals in the report. More often than not, these suggestions triggered useful discussions in shaping various projects in project tows of , , Gaya and Muzzaffarpur for infrastructure improvement.

In addition to the obviously critical technical support by the Asian Development Bank, preparation of this Report was made possible through the enthusiastic support and guidance of Shri Girish Shankar, Principal Secretary1 and Shri D K Shukla, Special Secretary of the Urban Development and Housing Department, Government of Bihar and the Mayors, Municipal Commissioners and their enthusiastic staff in the preparation of this PPTA report. At the very pragmatic level, Mr. Hiroyuki Ikemoto, the ADB Urban Development Economist, continues the challenge of supporting the consulting team and their enormous requests. Our thanks are also due to Shri Shashi Shekhar Sharma who guided the completion of this final report upon taking over as Principal Secretary from February 2011.

Unknown to them, but the daily observation of all residents, their situations and their needs contributes the most to the exercise, and will be thanked by successfully contributing this project's results to their future.

Consultants Team

S Bhattacharyya, Project Management Specialist /Team Leader John R Block, Water Sector Specialist John R Bowers, Urban Planer Vijay Tandon, Project Economist / Project Director Krishnan Padmanabhan, Financial Management & Accounting Specialist Archana S Hinduja, Urban Planner Parthajit Patra, Water Supply Specialist Tapan Banerjee, Institutional Specialist Sandeepan Choudhury, Sewerage Specialist Ardhendu Mitra, Environment Specialist Saswati Ghosh Belliappa, Social & Community Development Specialist Naval Paswan, Economist Rajeev Singh, Statistician Suresh Gupta, Procurement Specialist Sunil Kumar Goyal, Municipal Engineer Arkaja Singh, PPP Specialist P N Bhattacharya, Municipal Engineer

Bihar Urban Development Investment Program

Contents

1 Basic Assumptions ...... 1 1.1 Population ...... 1 1.2 Definition of Sub-sector in the Road Map ...... 5 2 Economic Development ...... 7 2.1 Existing Situation Assessment ...... 7 2.2 Future Growth Assessment ...... 15 3 Urban Service Delivery ...... 23 3.1 Current Coverage and Condition ...... 23 3.2 Legal and Institutional Framework ...... 30 3.3 Human Resources...... 33 3.4 Finance for Urban Service Delivery ...... 37 3.5 Binding Constraints on Efficient and Equitable Service Delivery ...... 41 4 National and State Policies ...... 45 4.1 Government Plans, Policies and Guidelines ...... 45 5 Bihar Urban Sector Road Map - Cost and Implementation ...... 52 5.1 Physical Investments in Each Sub-Sector ...... 52 5.2 Non-Physical Investments – All Sub-Sectors ...... 53 5.3 Target Population Coverage ...... 53 6 Sources of Financing ...... 57 6.1 Details of Investment Planned / Ongoing- Centrally Sponsored Projects ...... 57 6.2 Details of Planned / Ongoing Projects – State Plan...... 61 6.3 Financing Sources for Roadmap Implementation ...... 64

LIST OF TABLES Table 1.1 Population by Town (sex disaggregated) 1981-2001 ...... 2 Table 1.2 Population Projections by Town (sex disaggregated) 2010-2020 ...... 4 Table 2.1 Recent GSDP Growth Rates ...... 8 Table 2.2 Bihar and Sector Employment (%) ...... 10 Table 2.3 Value and Share of 20 Districts in Bihar GSDP ...... 12 Table 2.4 Impact of Sector Policies on Economic Growth of Bihar ...... 13 Table 2.5 Major Economic Activities and Engines of Past Economic Growth of State ...... 16 Table 2.6 Major Economic Activities and Engines of Future Economic Growth of Bihar State (as % share of GSDP of Bihar) ...... 17 Table 2.7 Change in Dominance of Economic Activities by District (2010-2020) ...... 19 Table 2.8 Ratios (%ages) of Towns with Growth Potential by Economic Profiles ...... 20 Table 2.9 Urban Services for Sector-based Economic Growth ...... 21 Table 2.10 Urban Services Required by 6 Towns Having Largest SGDP Contributions ...... 21 Table 3.1 Level of Urban Service - Bihar in Comparison with National Standard, National Average and 24 Town Average ...... 23 Table 3.2 Index Value - Level of Criticality - Bihar Urban Services as Ratio of Existing Level of Service and National Standard of MOUD ...... 25 Table 3.3 Level of Criticality of Bihar Urban Services ...... 26 Table 3.4 Demand and Availability of Power in Bihar (Mega Watts) ...... 29 Table 3.5 Most Vulnerable Six Towns for Each Subsector in Bihar ...... 29 Table 3.6 Status of Current Slum Upgrading Projects in Bihar ...... 30 Table 3.7 Proposed 64 Amendments to BMA by SPUR ...... 31 Table 3.8 Government Departments and Agencies Involved in Urban Development ...... 32 Table 3.9 Cost of Solutions (Rs Million) ...... 33 Table 3.10 Comparison Asset Management and O&M Staff with National Average ...... 34 Table 3.11 General Qualifications of Asset Creation Staff ...... 35 Table 3.12 World-Class Norms for Comparable Unit ...... 35 Table 3.13 Skilled Asset Management Staff Number Deficiencies in each Town ...... 36 Table 3.14 Annual Cost of Mitigating Deficiency (Rs. Million) ...... 37 Table 3.15 UD&HD Budget Allotment for Capital Works in ULBs (Rs. Million) ...... 38 i

Bihar Urban Development Investment Program

Table 3.16 UD&HD Budget Allotment for O&M (Non Plan) in ULBs ...... 39 Table 3.17 Mobilizing More Revenue ...... 40 Table 3.18 Binding Constraints on Efficient and Equitable Delivery...... 41 Table 3.19 Measures Proposed For Systemic Improvement Of Urban Service Delivery...... 44 Table 4.1 Water Supply Policies From Central Government ...... 45 Table 4.2 Sewerage Policies From Central Government ...... 46 Table 4.3 Solid Waste Management Policies From Central Government ...... 47 Table 4.4 Drainage Policies From Central Government ...... 47 Table 4.5 Urban Transport Policies From Central Government ...... 48 Table 4.6 Urban Slum Policies From Central Government - On-Going and Planned Initiatives For Slum Improvement In Bihar ...... 49 Table 4.7 Water Supply Policies ...... 50 Table 4.8 Sewerage Policies ...... 51 Table 4.9 Solid Waste Management Policies ...... 51 Table 4.10 Drainage Policies ...... 51 Table 4.11 Urban Transport Policies ...... 51 Table 5.1 Physical Investment Cost - Roadmap Implementation (Rs. Million) ...... 52 Table 5.2 Physical Investment Cost - Roadmap Implementation ($ Million) ...... 53 Table 5.3 Non-Physical Investments for all Sub-Sectors (Rs Million) ...... 53 Table 6.1 Water Supply Projects ...... 57 Table 6.2 Sewerage Projects ...... 58 Table 6.3 Solid Waste Management Projects ...... 58 Table 6.4 Drainage Projects ...... 59 Table 6.5 Road Projects ...... 59 Table 6.6 Slum Infrastructure and Housing Projects ...... 60 Table 6.7 Ongoing - State's Own Financed Projects Water Supply Projects ...... 61 Table 6.8 Source of Financing – Total (Rs. Million) ...... 64 Table 6.9 Source of Financing - All Towns ($ Million) ...... 64 Table 6.10 Source of Financing - 24 Towns (Rs Million) ...... 64 Table 6.11 Source of Financing - 24 Towns (US $ Million) ...... 65 Table 6.12 Source of Financing - 4 Towns (Rs Million) ...... 65 Table 6.13 Source of Financing - 4 Towns (US $ Million) ...... 65

LIST OF FIGURES Figure 1.1 Road Map – 24 Towns ...... 3 Figure 2.1 GDP India and GDP Bihar (Rs Billions) ...... 9 Figure 2.2 Per Capita GSDP of Bihar and Per Capita NSDP of India (Rs) ...... 9 Figure 2.3 Share of Sector Employment in Bihar...... 11 Figure 2.4 Share of Sector Employment in India ...... 11 Figure 2.5 Bihar GSDP (Rs Billion) and Bihar GSDP Per Capita (Rs) ...... 16 Figure 2.6 Bihar Sector Growth Trends and Projections ...... 18 Figure 5.1 Target Population Coverage Water Supply ...... 54 Figure 5.2 Target Population Coverage Sewerage ...... 54 Figure 5.3 Target Population Coverage - Solid Waste Management ...... 55 Figure 5.4 Target Population Coverage- Drainage ...... 55 Figure 5.5 Target Population Coverage- Urban Roads ...... 56

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Bihar Urban Development Investment Program

Abbreviations and Acronyms

ADB Asian Development Bank AIFC Average Incremental Financial Cost AIMS Asset Inventory Management System AMPs Asset Management Plans AP Affected Persons ARV Annual Rental Value ASI Archeological Survey of India BHB Bihar Housing Board BIS Bureau of Indian Standards BMA Bihar Municipal Act BMC Bhagalpur Municipal Corporation BME Benefit Monitoring Evaluation BOEC Bid Opening and Evaluation Committee BOT Build Operate Transfer BOOT Build Own Operate Transfer BPL Below Poverty Line BRCD Bihar Road Construction Division BRJP Bihar Rajya Jal Parshad BUDA Bihar Urban Development Agency BUDP Bihar Urban Development Project BUIDCO Bihar Urban Infrastructure Development Corporation BUDIP Bihar Urban Development Investment Program CAA Constitution Amendment Act CAG Comptroller and Auditor General CAGR Compounded Annual Growth Rate CAPEX Capital Expenditure CAPP Community Awareness and Participation Program CBO Community Based Organisation CC City Corporation CCF City Challenge Fund CDP City Development Plan CFE Consent for Establishment CFO Consent for Operation CLC City Level Committee CLIP City Level Infrastructure Plan CLIP City Level Investment Plan CMO Chief Municipal Officer CPCB Central Pollution Control Board CPHEEO Central Public Health and Environmental Engineering Organization CSC Consultant Selection Committee CSS Centrally Sponsored Schemes DBOT Design Build Operate Transfer DFID Department for International Development DLAO District Land Acquisition Officer DM District Magistrate iii

Bihar Urban Development Investment Program

DMA Directorate of Municipal Administration DMC Darbhanga Municipal Corporation DPR Detailed Project Report DSC Design Supervision Consultants EA Executing Agency EAP Externally Aided Projects EARF Environmental Assessment and Review Framework EARP Environmental Assessment and Review Procedures EC Empowered Committee EIA Environment Impact Assessment EIRR Economic Internal Rate of Return EMP Environmental Monitoring/ Management Plan EOIs Expression of Interest ERP Enterprise Resource Planning EU European Union FBAS Fund Based Accounting System FDI Foreign Direct Investment FFA Financing Framework Agreement FGD Focus Group Discussion FGIA First Generation Imprest Account FI Financial Institution FIRR Financial Internal Rate of Return FIS Financial Information System FMAQ Financial Management Assessment Questionnaire FOP Financial and Operating Plan FYP Five Year Plan GAP Gender Action Plan GDP Gross Domestic Product GEM Generators of Economic Momentum GIS Geographic Information System GMC Gaya Municipal Corporation GoB Government of Bihar GoI Government of India GSDP Gross State Domestic Product HH Household HUDCO Housing and Urban Development Corporation IA Implementing Agency IAS Indian Administrative Service ICB International Competitive Bidding ICT Information Communication Technology IEC Information, Education and Communication IEE Initial Environmental Examination IHSDP Integrated Housing and Slum Development Program IP Indigenous People IPDF Indigenous People‟s Development Framework IPDP Indigenous People‟s Development Plan IPT Intermediate Public Transport

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Bihar Urban Development Investment Program

JBIC Japanese Bank for International Cooperation JNNURM Jawaharlal Nehru Urban Renewal Mission KfW Kreditanstalt fur Wiederaufbau Km Kilometer LAA Land Acquisition Act LCC Life Cycle Cost M&E Monitoring and Evaluation MFF Multi-Tranche Financing Facility MFI Multilateral Financial Institutions MIS Management Information System MLD Million Litres per Day MMC Municipal Corporation MML Model Municipal Legislation MoEF Ministry of Environment and Forest MoUD Ministry of Urban Development MoUDPA Ministry of Urban Development and Poverty Alleviation MUDPA Ministry for Urban Development and Poverty Alleviation NCB National Competitive Bidding NCU National Commission on Urbanization NGO Non Governmental Organization NGRBA National Ganga River Basin Authority NH National Highway NHAI National Highway Authority of India NIC National Informatics Centre NIUA National Institute of Urban Affairs NMAM National Municipal Accounting Manual NMCP National Minimum Common Program NMT Non Motorized Transport NOC No Objection Certificate NPRR National Policy for Resettlement and Rehabilitation NSSO National Sample Statistics Organization NUIS National Urban Information System OHT Overhead Tank O & M Operation and Maintenance PAC Project Advisory Committee PAF Project Affected Families PAH Project Affected Households PFDS Pooled Finance Development Scheme PHED Public Health Engineering Department PIU Project Implementing Unit PMC Project Management Consultants / Municipal Corporation PMU Project Management Unit PPMS Project Performance Monitoring System PPP Public Private Partnership PRDA Patna Regional Development Authority PS Pumping Station PSP Private Sector Participation

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Bihar Urban Development Investment Program

PUA Patna Urban Area PWB Patna Water Board PWD Public Works Department R&R Resettlement and Rehabilitation RBI Reserve Bank India RCC Reinforced Cement Concrete RCD Road Construction Department RFP Request for Proposal RP Resettlement Plan SBD Standard Bid Document SC Sub Committee SCADA Supervisory Control and Data Application SEIAA State Environment Impact Assessment Authority SFC State Finance Commission SGIA Second Generation Imprest Account SIA Social Impact Assessment SIEE Summary Initial Environmental Examination SJSRY Swarna Jayanti Sahari Rozgar Yojana SLS Sanitary Landfill Site SOE Statement of Expenditure SPRSS Summary Poverty Reduction and Social Strategy SPUR Support Program for Urban Reforms SPV Special Purpose Vehicle STP Sewage Treatment Plant SWM Solid Waste Management TAC Tender Approval Committee TAC Technical Assistance Cluster TEC Tender Evaluation Committee TBA To Be Agreed TC Town Committee TCPO Town and Country Planning Organization TP Town Panchayat TPD Ton per day UA Urban Agglomeration UDHD Urban Development and Housing Department UEPA Urban Employment and Poverty Alleviation UFW Unaccounted for Water UIDSSMT Urban Infrastructure Development Services in Small and Medium Towns ULB Urban Local Body UNDP United Nations Development Program URIF Urban Reform Incentive Fund USAID United States Agency for International Development WTP Willingness to Pay WTP Water Treatment Plant

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Bihar Urban Development Investment Program

1 Basic Assumptions

1.1 Population

1.1.1 Historical Population of Bihar by town (sex disaggregated) between 1981-2001 is shown in Table 1.1.

1.1.2 Methods of Projections Population projections have been estimated for Bihar state and the selected 24 towns (Figure 1.1) up to the year 2041. Growth trends of decadal population of the State and towns during 1961, 1971, 1981, 1991 and 2001, based on the available census data, have been estimated and plotted on a polynomial graph. This trend, depicted as a formula, has been applied to 2001 population for projecting 2010, 2011, 2015, 2020, 2021 and up to 2041 population. Projected population has been disaggregated based on the sex ratio. This ratio has been ascertained by growth trends of male and female population based on available census data for 1981, 1991 and 2001.

1.1.3 Projections Table 1.2 shows the population projections by town (sex disaggregated) for the next 10 years. For details refer Section 1 of Volume 3A - Sector Reports.

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Table 1.1 Population by Town (sex disaggregated) 1981-2001

Towns 1981 1991 2001 Total Male Female Total Male Female Total Male Female 1 125111 67516 57595 157082 84726 72356 203380 109867 93513 2 Bagaha 32597 17327 15270 64627 34821 29806 91467 48526 42941 3 56633 30503 26130 71424 38881 32543 93741 49971 43770

4 Bettiah 72167 38460 33707 92653 49627 43026 116670 61753 54917 5 Bhagalpur 225062 121544 103518 253225 136583 116642 340767 182806 157961 6 151343 79950 71393 201323 106916 94407 232071 122019 110052 7 Chapra 111564 59933 51631 136877 73948 62929 179190 95494 83696 8 Nizamat 58684 31250 27434 84616 45468 39148 131176 69419 61757

9 Darbhanga 176301 94149 82152 218391 116912 101479 267348 142377 124971 10 Dehri 90409 49209 41200 93594 50674 42920 119057 63540 55517 11 Gaya 247075 132085 114990 291675 156899 134776 389192 206498 182694 12 62520 33580 28940 87687 47093 40594 119412 63838 55574 13 Jamalpur 78356 42364 35992 86112 47056 39056 96983 51620 45363

14 122005 66459 55546 154367 83986 70381 190873 102161 88712

15 Kishanganj 51790 28221 23569 64568 34677 29891 85590 46253 39337 16 Motihari 57911 31677 26234 77432 42522 34910 100683 54261 46422 17 129260 69482 59778 150112 80662 69450 188050 101264 86786 18 Muzaffarpur 190416 103883 86533 241107 131537 109570 305525 164000 141525 19 Nawada 38759 20573 18186 53174 28299 24875 81891 43560 38331

20 Patna 813963 446394 367569 956417 524064 432353 1432209 781236 650973 21 91144 49701 41443 114912 62249 52663 171687 92826 78861 22 Saharsa 57580 31734 25846 80149 44478 35671 125167 67718 57449 23 Sasaram 73457 39008 34449 98122 51916 46206 131172 69682 61490 24 Siwan 51284 27276 24008 83125 44168 38957 109919 58262 51657

Source: Census of India

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Figure 1.1 Road Map – 24 Towns

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Table 1.2 Population Projections by Town (sex disaggregated) 2010-2020

Towns 2010 2015 2020 Total Male Female Total Male Female Total Male Female 1 Arrah 250983 135983 115000 280428 152144 128284 312023 169508 142515 2 Bagaha 105240 54606 50634 124840 63724 61116 146440 73351 73089 3 Begusarai 117246 61041 56205 130836 67017 63819 145226 73202 72024 4 Bettiah 110010 57141 52869 120160 61722 58438 130810 66415 64395 5 Bhagalpur 418742 223684 195058 468672 249786 218886 522702 278047 244655 6 Bihar Sharif 277632 143581 134051 301712 153700 148012 326392 162996 163396 7 Chapra 221647 116444 105203 249352 129729 119623 279407 144005 135402 8 Danapur Nizamat 170260 89139 81121 200160 103982 96178 233060 120232 112828 9 Darbhanga 314102 166075 148027 339332 178514 160818 365162 191080 174082 10 Dehri 146700 77628 69072 158200 83275 74925 169700 88944 80756 11 Gaya 474882 247408 227474 530112 273623 256489 589442 301662 287780 12 Hajipur 134430 71130 63300 152880 80605 72275 172830 90809 82021 13 Jamalpur 100531 51269 49262 105396 52087 53309 110311 52646 57665 14 Katihar 230166 120881 109285 252156 130706 121450 274946 140569 134377 15 Kishanganj 104165 57067 47098 116140 64101 52039 128865 71640 57225 16 Motihari 107420 56307 51113 120720 62274 58446 135020 68513 66507 17 Munger 225963 122031 103932 248808 134601 114207 273303 148094 125209 18 Muzaffarpur 379488 199030 180458 423208 219184 204024 469828 240256 229572 19 Nawada 103730 55219 48511 120680 64204 56476 139130 73978 65152 20 Patna 1810381 984489 825892 2061096 1119198 941898 2330861 1264210 1066651 21 Purnia 221761 119687 102074 253976 137138 116838 288741 155996 132745 22 Saharsa 169024 88735 80289 196784 102080 94704 226744 116407 110337 23 Sasaram 157030 83375 73655 177480 94504 82976 199430 106504 92926 24 Siwan 151440 79888 71552 175040 92112 82928 200640 105299 95341 Source: Consultants estimates

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1.2 Definition of Sub-sector in the Road Map The sub-sectors to be included in the Bihar Urban Development Project are (i) water supply (ii) drainage (iii) sewerage (iv) solid waste management (v) urban road and traffic management and (vi) slum improvement. Water supply, sewerage and drainage are three components of the water cycle. The water cycle describes the continuous movement of water on, above and below the surface of the Earth. The water moves from one location to another by the physical processes of evaporation, condensation, precipitation, infiltration, runoff, and subsurface flow.

1.2.1 Water Supply Water supply from groundwater or surface water is defined as the abstraction, conveyance, pumping, treatment, storage, distribution and delivery to households via piped connections or public stand posts of water needed for daily living or for fire fighting, industrial, agricultural or commercial purposes. Water supply in Bihar is heavily dependent upon direct ground extraction.

1.2.2 Drainage Drainage embraces the system of culverts, pipes, ditches, drains or canals needed to remove excess rain water from cities. In Bihar towns, drainage is generally provided by open ditches adjacent to major and some minor roads. These ditches are used not only for storm-water collection and disposal but also for the discharge of sewage effluent, as a public toilet and as a place where rubbish and garbage is dumped. The ditches are therefore often blocked and represent a serious public health issue.

1.2.3 Sewerage Sewerage refers to the infrastructure that conveys sewage and covers the system of sewer pipes, septic tanks, pump stations, sewage treatment plants and outfall arrangements necessary to safely remove water contaminated by faecal, household or industrial wastes and thereby preserving public health. Septic tanks are the predominant sewage treatment system in Bihar towns, (50-80% coverage) with septic tank effluent discharged to open drains adjacent to household dwellings. Nearly all sewerage in Bihar is therefore an 'open sewerage' system. In some towns such as Bhagalpur, 11 mld of open drain flow is channelled to a sewage treatment plant constructed under the Ganga Action Plan scheme where it is treated in aerated lagoons before discharge to river.

1.2.4 Solid Waste Solid waste management is the collection, transportation and disposal of refuse, garbage, household and industrial wastes normally to an engineered sanitary landfill. Hazardous waste requires special treatment and arrangements for safe disposal. In Bihar, many towns have contracted out the street sweeping, collection and transportation of solid waste to NGOs, but due to the non availability of landfill disposal sites, most of the waste is dumped along highways and in drains. This creates environmental degradation and consequently poses a risk to public health and a deterioration of living standards.

1.2.5 Urban Road and Traffic Management Urban road and traffic management relates to the planning, design, construction and management of roads between and within cities, and the management of the diverse range of vehicles which use the roads. Most Bihar towns are well connected to other parts of the State, although main roads are often narrow, single lane in each direction and crowded. Town‟s generally possess 5-15 km of National highway and 50-150 km of municipal roads. About 90% of the municipal roads have metal surface (cement concrete, brick or asphalt) and the remaining 10% have earthen surface. There are generally no adequate parking facility for vehicles in towns nor organized bus terminals. In the north of

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the State the East-West National Highway is under construction which will greatly improve travel between Muzaffarpur and Darbhanga and towns further east.

1.2.6 Slum Improvement Slum improvement consists of the physical, social, economic, organizational and environmental improvements to slums undertaken cooperatively and locally among citizens, community groups, businesses and local authorities. The main objective of slum upgrading is to alleviate the poor living standards of slum dwellers. In Bihar the proportion of slums in typical larger towns ranges from 2% in Bhagalpur, 5% in Gaya and Muzaffarpur to 20% in Darbhanga. The Municipal Commissioner of Gaya stated that slums are increasing in number as the population of the town grows. All the slums are deficient of basic infrastructure facilities like water supply, sanitation, drainage, SWM, approach roads and street lighting.There are many small-scale slum improvement initiatives in 28 Bihar towns under the DFID funded SPUR programme. Bihar is defined as the state with the “highest poverty risk” among Indian states (NIPFP, 2009). Current policy outlook of GoI w.r.t urban poverty is embodied in its policies and programmes, chiefly the National Urban Poverty Reduction Strategy (2010-20), programmes such as Basic Services for Urban Poor (BSUP) under JnNURM, Integrated Housing and Urban Services Development Program (IHSDP) under UIDSSMT and Rajiv Awas Yojana – Slum Free City Planning.

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2 Economic Development

The Indian Government‟s data for 1980 to 1990 showed that the GSDP of the undivided Bihar grew by 72%, which means that the economy was one of the fastest growing in the country during the early 1980s1. In striking contrast the state experienced zero growth between1990-94 and since 1994-95, when data for divided Bihar became available, annual growth averaged 3.8 per cent2. As a result, income growth and consumption levels in Bihar lagged seriously, thereby widening the gap between Bihar and rest of India. In 2000, when the division of Bihar resulted in the industrially advanced and mineral-rich southern-half of the state been carved out to form the separate state of Jharkhand, this had a strong impact on development in the north mainly through a loss of revenue. The new State of Bihar inherited 75%3 of the total population and was estimated to account for 60% of the total output of the undivided Bihar. After the bifurcation, the State is left with cultivable land in the Indo-Gangetic Plain and abundant water, both surface and sub-surface, for irrigation. As a result of these natural resource endowments, agriculture became the dominant economic activity and remains so today occupying between 75 to 80 per cent of the workforce and contributing 42% of GDP4 of the state5. Since 2000 onwards the Government of Bihar has taken assertive policy reform and investment initiatives to revive the economy by improving the productivity and expanding the agro-based industries as well as strengthening and increasing the rate of economic diversification into other secondary and tertiary economic activities.

2.1 Existing Situation Assessment The is now poised for steady growth as a result of a number of positive steps taken in the recent past by the state government, including:  Improvements in the quality of roads have resulted in significant economic benefits. Getting anywhere in Bihar has Compared to Rs 263.23 crore ($57.6 mill) always been an exercise in spent on construction of roads in 2005-05, endurance. But that’s changing. the expenditure has reached Rs 2489.15 More than 6,800 km of roads have crore ($544.6 mill) in 2008-09, implying been relaid and 1,600 bridges and culverts constructed in the last four almost a ten fold increase (Economic Survey years. Journey time in India’s 12th 2009-2010 GoB, Finance Department). largest state, sprawling over 94,163  Projects included the completion of the sq km, has been cut by half today expressway from the Purvanchal border in many places. Now, most of the through Bihar to Jharkhand and it has also state’s 38 districts - from northernmost West Champaran to been decided to improve the Patna to Kaimur on the western end - are a Muzaffarpur highway from a one lane to a drive of six hours or less from four lane expressway. Also the central Patna. government funded north-east expressway will run through the northern part of the Bihar Source: The Economic Times 10.01.2011 state making the north better connected with the rest of India.

1 www.BiharDiary.com is the portal on the state of Bihar in India providing the latest information and the development of Bihar. 2 Bihar, Towards a Development Strategy, A World Bank Report, June 2005. 3 Census of India 1991 Bihar 82.88 mill and Jharkhand 26.96 mill. 4 Including forestry and fishing 5 Government of Bihar - Department of Agriculture,.

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 The creation a more business friendly environment.6 - including measures such as: granting pre-production incentive of subsidy/exemption from stamp duty and registration fee and post production incentive of grant/exemption for preparation of project reports, purchase of land/shed, technical know-how, captive power generation/diesel generating set, quality certificate, Vat, luxury tax, electricity duty, conversion fee, market fee etc. As a result of these and other measures, in 2008-09 the total GSDP in Bihar at current prices was estimated to be in excess of Rs.1.3 million, yielding a per capita income of Rs.13,959 ($306). At constant prices, the GSDP for Bihar in 2008-09 was estimated to be Rs.983,936 yielding a per capita income of Rs.10,415 ($228). For total GSDP, this implied a growth in excess of 11 cent over the year 2008-097 (ref. Table 2.1).

Table 2.1 Recent GSDP Growth Rates

(Central Statistics Organisation and Bihar Economic Survey 2008-09). Growth in % per annum Year CSO

2004-05 12.17 2005-06 1.49 2006-07 22.00 2007-08 8.04 2008-09 11.44

Average growth 11.03

This was a surprise to many that Bihar, generally considered to be economically backward, emerged as the fastest growing state recording a growth rate of 11.44 per cent during 2008-09. Among the 18 states and Union Territories of which data is available, Bihar recorded the highest State Gross Domestic Product (SGDP) in a year when the global financial meltdown pulled down country's economic growth rate to 6.7 per cent from 9 per cent. Despite its relatively good economic performance compared to all India, as illustrated by GDP and Per Capita GSDP statistics (ref Figs 2.2 and 2.3), Bihar still has a per capita income of $ 304 a year , over 64% less than India's average of $ 8338 and 30.6% of the population live below the poverty line against India's average of 22.15%. For the per capita income in Bihar to reach the level of the national average, the present momentum of growth as displayed in the graphs below will need to be sustained for many years to come.

6 Industrial Incentives Policy 2006, Department of Industries: Incentive Policy for Accelerated Policy Growth of the State. 7 Central Statistics Organization and Bihar Economic Survey 2008-09 8 Economic Times 24.11.2010.

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Figure 2.1 GDP India and GDP Bihar (Rs Billions)

1000.0

487.9 389.9 416.3 449.4 296.8 325.4 356.6 186.4 100.0

20.2 Rs Billions Rs 14.5 17.2 10.0 10.2 11.8 7.6 8.2 5.8 GDP-India

GSDP-Bihar

1.0 2000-01 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Years

Figure 2.2 Per Capita GSDP of Bihar and Per Capita NSDP of India (Rs)

40000 Bihar (Per Capita GSDP) : Rs. 35000 India (Per Capita NSDP) : Rs. 33731 30000 31801 30354 28083 25000 26025 24143 20000

15000 16172 11535 10000 11702 12883 8594 10599 8527 8517 9929 5000 7111 2655 0 917 1980-81 1990-91 2000-01 2004-05 2005-05 2006-07 2007-08 2008-09 2009-10 (P) (Q)

Primary Sector The sector composition of Bihar‟s economy reveals the important role of agriculture in aggregate production. Despite this, investment in irrigation and other agriculture facilities has been grossly inadequate in the past.

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The unsatisfactory performance of agriculture, Bihar‟s most important sector was, to a large degree responsible for the state‟s historically low aggregate growth rate. Agriculture showed negative growth in the early 1990s, and since the mid-90s through 2001-02 it has grown by less than 1.0 per annum, implying a negative growth rate of agricultural output per capita. Furthermore, the Bihar State Economic Survey 2008-09 indicates that the average growth rate of the primary sector over the period 2005-06 to 2008-09 has been -0.77 percent, with agriculture in particular doing even worse at an average of -0.87 percent. As a result those employed in the sector will likely have witnessed an absolute fall in income over this period and, as agriculture employs nearly 80 percent of the work force, with 96 percent of the cultivators been small and marginal farmers; the impact will be particularly significant in the rural communities. Secondary and Tertiary Sectors State Economic Surveys over the period 2005-06 to 2008-09 indicate that overall, economic growth has been led by an increase of 21.75 percent in the performance of the manufacturing sector which employs only about 9 percent of the state‟s workforce. This secondary sector growth is primarily found to be led by growth in the construction sector, which currently constitutes about 71 percent of secondary sector income and whose annual growth rates for last four years yield an average of 41 percent, as is reflected by Bihar State Economic Survey 2008-09. The service sector has established itself as the leading driver of the Bihar economy by constituting a 64.30 per cent at current prices and 56.05 per cent at constant prices share of the total GSDP in 2008-09 and the tertiary trade, hotel & restaurants and banking and insurance sectors are the leading economic activities with CAGR 13.50 per cent and 7.31 per cent recorded growth rates respectively over the past 5 years. Sector Shares and Employment. The secondary and tertiary sectors have been growing at much faster rates over the last decade and the GSDP share at constant prices of primary, secondary and tertiary sectors in 2008-09 were 26.24 per cent, 17.71 per cent and 56.05 per cent respectively.

Table 2.2 Bihar and India Sector Employment (%)

Bihar India

Sector 1993-94 2006-07 1993-94 2006-07

Primary Sector 76.6 74.0 75.3 57.3

Secondary Sector 4.9 12.9 12.0 18.5

Services Sector 18.5 13.1 12.7 24.2

All Sectors: 100.00 100.00 100.00 100.00

Source: Laveesh Bhandari and Sumita Kale (2009), Bihar : Performance, facts and Figures ( NSSO and Census of India), Indicus.

In terms of work force, 74 per cent workers engaged in primary sector, 12.9 per cent in secondary sector and 13.1 per cent in tertiary sector while in all India shows that 57.3 per cent in primary sector, 18.5 per cent in secondary sector and 24.2 per cent in tertiary sector (NSSO). See figures 2,3 and 2.4 below.

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Figure 2.3 Share of Sector Employment in Bihar

90

80 76.6

70 74 1993-94 60 2006-07 50

% share % 40

30

20 18.5 12.9 13.1 10 4.9 0 Primary Sector Secondary Sector Services Sector

Figure 2.4 Share of Sector Employment in India

90

80 75.3 70

60 57.3 1993-94 50 2006-07

40

30 24.2 20 18.5 12.7 10 12

0 Primary Sector Secondary Sector Services Sector 2.1.2 Main Activities and Locations Some of the major industrial activities in Bihar are Agro-based such as textiles, oil mills, etc. Industries that are dependent on agriculture are the edible oils mills located at Araria, rice mills located in , Forbesganj in Purnea district, spice industries, sugar mills located at Banmankhi in Purnea district, jute mills and other agro-based industries. One of the biggest oil refineries in the country is based at Barauni in Bihar. There are 13 sugar mills in private sector and 15 in the public sector located in South and North Bihar. Bihar is also the sixth largest producer of tobacco in the country. Since 2005, besides the major road infrastructure development initiatives, the State Government has created a more business friendly environment to enhance investment opportunities and the leveraging of resources into big as well as small and medium-sized

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industrial establishments. As a result the growth of small industries, improvements in IT infrastructure, the new software park in Patna, have taken place. Also the sugar Industry is another sector which has benefited and continued to grow with 25 new sugar factories committed in Bihar between 2006 and 2007 and likewise, the dairy Industry has become a high performing sector. Major Economic Activities of Bihar Government data on economic activity is available on a district-wide basis and not by town specific. Table 2.3 presents relevant data for the 20 districts which represent the selected 24 towns with population over 100,000. In 2004 the 20 districts (24 towns) accounted for over 74 per cent of GDDP9 (at constant price); Patna alone leading with just over 25 per cent followed by Muzaffarpur at 4.5 per cent and both Begusarai and East Champaran each having 3.5 per cent.

Table 2.3 Value and Share of 20 Districts in Bihar GSDP

Ranking Districts of Bihar Rs. Crore % Share 1999-00 2004-05 1999-00 2004-05 All Districts of Bihar (38) 5019994 6003183 100.00 100.00

1. Patna 1035518 1507173 20.63 25.1 2. Muzaffarpur 239542 272353 4.77 4.5 3. Begusarai 174791 209898 3.48 3.5 4. E. Champaran 176431 207229 3.51 3.5 5. Gaya: 186933 200394 3.72 3.3 6. Bhagalpur 155167 188334 3.09 3.1 7. W. Champaran 165779 179958 3.30 3.0 8. Darbhanga 151672 177254 3.02 3.0 9. Rohtas 148602 167418 2.96 2.8 10. Saran 145546 162728 2.90 2.7 11. 138259 156672 2.75 2.6 12. Katihar 119106 155812 2.37 2.6 13. Purnea 122558 140825 2.44 2.3 14. Siwan 122712 130604 2.44 2.2 15. 126913 126467 2.53 2.1 16. Bhojpur 123983 122479 2.47 2.0 17. Munger 95873 102691 1.91 1.7 18. Saharsa 82797 95891 1.65 1.6 19. Nawada 81040 82354 1.61 1.4 20. Kisanganj 60744 69074 1.21 1.2 Total 3653966 4455607 72.79 74.22 Source: Derived from: Department of Statistics and Evaluation data, Government of Bihar.

9 Presently, Gross District Domestic Product (GDDP) data is available from 1999-00 to 2004-05 of 1999-00 base year at constant and currents prices. Government is in process to revise the base year from 1999-00 to 2004-05, and hence unable to procure the updated data from 2005-06 onwrds.

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The contribution of the top five economic activities by industry of origin in Bihar accounts 72.35 per cent in 1999-00 of the total GSDP (at constant prices) which increased to 78.92 per cent in 2008-09. Bihar is traditionally an agrarian economy and dominated by agriculture and allied activities10 but their share in the GDP gradually decreased to 26 per cent in 2008-09 from 33.5 per cent in 1999-00. Among the 24 selected towns, primary sector is responsive for growth in 8 towns namely, Saharsa, Purnea, Kisanganj, Katihar, Rohtas, East Champaran, West Champaran and Vaishali and for remaining, service sector is the dominating.

2.1.3 Impact of Plan and Policies on Economic Growth Different industries have performed differently during the period 2008 and 2009. Table 2.4 captures the performance level of different industries on the basis of certain key parameters which reflect the impact of plan and policies on economic growth. The agro and agro-based industries and tourism industry in Bihar expressed mixed trends in its performance during 2008 and 2009 (CII, 2010).

Table 2.4 Impact of Sector Policies on Economic Growth of Bihar

Major initiatives taken under Policies Impact on growth (2009 vs 2008)* policies/ plan Major investment policy initiatives underway : Bihar Single Window Clearance Act-2006 Production Increased (4-6 %) Bihar Infrastructure Development Level Increased (3-5%) Enabling Act 2006. Exports Increased (1-2%) New Industrial Policy -2006 Capacity Utilization Increased (up to 7%) Price Preference Policy- 2006 Value of Production Increased (6-8%) Industrial Policy New Policy Initiatives for Inventory Increased (2-3%) (agro & agro Entertainment, Tea Processing Pricing Increased (4-5%) and Sugar Sectors - 2006. Based ) Profit Margin Increased (up to 6%) Amendment of Sugarcane Act 1985 to provide for other products Employment Level No change (%) from sugarcane apart from sugar Impact of Monsoon Major Policy for establishing higher Impact of currency fluctuation Major Impact of cost of capital Significant Technical Institutions in Private Sector-2006 Simplification of VAT Regime - 2006. Bihar's Support programmes: Annual Marketable Crop/ Share National Horticulture Mission Production Surplus Enterprise In National State Horticulture Mission (Mn. Tonnes) (%) Micro Irrigation Pool (%) Macro Management Mode Of Vegetables 8.59 9.00 100.00 Agriculture Fruits 3.35 8.00 80.00 Integrated Scheme Of Oilseeds, Food Grain 11.90 5.60 75.00 Pulses and Maize Sugarcane 13.00 5.50 100.00 Recent initiatives: Fish 0.27 8.30 100.00 Extension Reforms To Promote Milk 4.06 4.40 100.00 Agriculture Public Private Partnership 5% Growth rate for food grains, 6% for policy** Establishment Of KvkIn Every vegetable & 10% for fruit production District For Research Support At % Share in Targeted Present District Level Agri Products National Production Production Horticulture College At Nalanda Production (2015) For Exclusive Research And Maize 1.5 Mn. MT 10 4.5 Mn MT Education In Horticulture Sugarcane 13.00 Mn. MT 46.72 Mn MT Repeal of agriculture produce Litchi 0.28 Mn MT 71 0.5 Mn. MT market act (APMC) to enable Makhana 0.003 Mn MT 85 0.050 Mn MT Direct purchase from farmers Mango 1.4 Mn MT 13 3.0 Mn MT Private & Co-operative Markets Rice Aromatic 0.015 Mn MT 0.05 Mn MT Contract farming Dairy 4.06 Mn MT 8.46 Mn MT

10 These activities include, live stock products, forestry, fishing, and mining & quarrying.

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Speciality market Vegetables 8.60 Mn MT 9 12.4 Mn MT For farmers: 0.27 Mn Lakh Fishery 0.43 Mn MT Prize of Rs1 lakh and title of Kisan- MT Sri”for best farmer in all 534 Honey 1300 MT 13 3900 MT blocksPrize of Rs2 lakh and title of “Kisan-Bhushan”at district levelPrize of Rs5 lakh and title of “Kisan-Ratna”at state level every year Government to benefit from good will of these 573 farmers every year

As a catalyst, promoter, facilitator

and infrastructure provider Inflow of tourist11 Increased (3-5 %) Maintenance of law and order Industry revenue Increased (3-5%) Deploying the tourist police force Foreign Exchange earnings Increased (2-4%) Disposing grievance occupancy rate Increased (up to 5%) Enacting suitable laws for the Pricing No change Tourism policy development of tourism Profit margin Decreased (2-4 %) Enabling private sector Employment Level No change (%) participation to develop important Impact of Monsoon Significant places whose tourism potential Impact of currency fluctuation Significant has not yet been tapped. The Impact of cost of capital Significant State Government would lay Terrorism issues Significant down rules and regulations for Political environment None such as Joint ventures. The Government has initiated various programs to promote the development of sectors like Power, Roads and Highways. Mission Statement in respect of roads which is “Provision of a Road Infrastructure Equal to the Best in the Country by 2015”. The Bihar State Highway Improvement of Road by State Government Road Length Impact Development Project, an agency of Year Growth Rate the Government of Bihar with (KM) assistance from the Asian 2005-06 364 Road network and Development Bank (ADB) has Increased transportation commenced work on converting 2006-07 773 212.36 accesabilit programme State Highways into 2 – lane y roads; the Government has also 2007-08 701 90.69 Increased undertaken to improve and widen 2008-09 580 82.74 Increased Major District Roads. 2009-1012 582 100.34 Increased Total 3000 The Chief Minister‟s Bridge Construction Program was launched in 2006 and it envisages construction of bridges, replacement of bridges wherever required and the replacement of narrow bridges with double lane bridges

Note : * October 2008 to March 2009 vs April to September 2008 (summary of responses from selected companies within the industry regarding performance during the period).** compiled from various sources including a presentation to the Investment commission. Source: Compiled from various Government Reports and Confederation of Indian Industry (CII), Industry Monitor-Bihar, 2010.

11 Times of India, 5thJanuary 2011, ―Bihar more happening tourist spots than Goa? ―. 12 Up to December.

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Though, the national economic policy initiatives apply equally to all the Indian States, their effects can differ considerably across the States depending up on the nature of various institutional factors and policies in the States, which can be classified under the broad heading „investment climate‟. Thus, a market-oriented macro and trade policies at the national level needs in general to be complemented with policies that foster a market- friendly investment climate in the States. The main industrial centres are Patna, Magadh, Muzaffarpur, Barauni, Bhagalpur, Munger, Darbhanga and Tirhut. According to the Department of Industries, the number of large and medium industries in the state is only 259, of which the highest concentration (38.2 per cent) is in Patna division, followed by Tirhut (21.6 per cent) and Magadh (9.7 per cent). Out of 38 districts spread over in 9 divisions, 10 districts do not have any large/medium industrial unit. Probably as important , if not more so, than deficits in the coverage of public utility services, are other major infrastructure bottlenecks experienced by industries and businesses including poor transport infrastructure in rural areas, shortfalls in power supply and costs related high energy price for power generation and a poorly developed IT communication infrastructure including internet and telephone.

2.2 Future Growth Assessment

2.2.1 Growth Projection Methods Gross State Domestic Product (GSDP) In projecting state economic trends and State Gross Domestic Products (SGDP) by economic activities13 (industry origin) up to the year 2020-21 baseline scenario of the actual situation in the year 2008-09 and the trend growth rate of each activities (current and constant prices) during 1999-00 to 2008-09 were reviewed For simplifying projections, the growth of each economic activity during the period 2010-11 to 2020-21 were extrapolated by using a trend growth rate for each economic activity. District Gross Domestic Product (GDDP) As a proxy for „All Urban Bihar‟, 24 towns with above 100,000 populations (.representing 57% of the population and over 74% of GDDP) were adopted as a basis for the economic appraisal. Furthermore, as the Government generates disaggregated data at a district and not town level, district data was utilised. Since 4 of the selected towns14 are not district headquarters, only the data from 20 districts was necessary as 4 districts represent 2 towns. The latest district-wise data on economic activity (1999-00- 2004-05) was then used to establish the economic profiles of the 20 Districts as a base from which to extrapolate and project a trend growth for each economic activity over the period 2006-07 to 2020-21.

2.2.2 Future Economic Trends of Bihar The average annual growth rate of GSDP was 10.40 per cent at constant prices and 7.27 per cent at current prices between 1999-00 to 2008-09. As the projected value is based on trend growth rate, projections to base year 2009-10 are carried forward exponentially. Under these unmodified trend line projection conditions, GSDP will approximately doubled from Rs.152,030 Rs. million in 1999-00 to Rs. 314,040 Rs. million in 2019-20 at constant prices.

13 Representing 24 selected towns in 20 Districts 14 1. Munger (Jamalpur and Munger), 2. Patna (Danapur and Patna), 3. West Champaran (Bagha and Bettiah) and 4. Rohtas (Dehri and Sasaram).

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Figure 2.5 Bihar GSDP (Rs Billion) and Bihar GSDP Per Capita (Rs)

1400 16000 Bihar GSDP (Rs Billion) Bihar GSDP Per Capita (Rs) 1200 14000 12000 1000 10000 800 8000

600 6000

Rs Billions Rs Per Capita Capita PerRs 400 4000 2000 200 0 0 2000-01 2008-09 2019-20 2000-01 2008-09 2019-20

However, within this overarching growth in GSDP, government economic statistical data indicates that there has been a significant shift (Table 2.5) in sector composition for Bihar State (1999-00 to 2008-09) and that this shift is further qualified by disaggregated data for the Districts (1999-00 to 2004-05).This pattern of economic sector transformation is foreseen to continue in the future and, as such, the trend over the last 5 years has been projected forwards exponentially to give a snapshot of the likely composition of the State and District economies by 2020.

Table 2.5 Major Economic Activities and Engines of Past Economic Growth of State

Industries/sectors 1999-00 2004-05 2008-09

1. Trade, Hotel & Restaurants 14.98 21.04 25.24 2. Agriculture/ Animal Husbandry 30.19 29.43 23.58 3. Construction 3.78 5.34 12.15 4. Other Services 16.01 13.16 11.81 5. Transport, Storage & Communication 7.40 6.65 6.13 6. Public Administration 7.89 6.95 5.74 7. Manufacturing 7.18 5.34 4.69 8. Banking and Insurance 3.61 3.67 3.76 9. Real Estate, Ownership of Dwelling 4.16 4.00 3.37 & Business Services 10. Forestry/ Logging 1.81 1.69 1.34 11. Fishing 1.38 1.66 1.24 12. Electricity, Gas & Water Supply 1.43 0.99 0.87 13. Mining & Quarrying 0.19 0.07 0.08 Source: Derived from Economic Survey of Bihar (2009-10), Finance Department; Government of Bihar, Patna.

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Under the above forecast scenario, the contribution of primary sector will decline from 33.69 per cent in 1999-00 to 22.04 per cent in 2019-20 and specifically, the share of agriculture & animal husbandry which has decreased from 30.19 per cent in 1999-00 to 23.72 per cent in 2009-10, will further decrease to 25.11 per cent by the year 2019-20. In contrast, the secondary and tertiary will increase from 12.43 per cent to 16.51 per cent and 53.88 per cent to 61.30 per cent respectively during the same period.

The contribution of the top five economic activities by industry origin accounts 78 per cent of the total GSDP (at constant prices) in 2008-09 (Table 2.6) which is expected to increase to 83.01 per cent in 2019-20.

Table 2.6 Major Economic Activities and Engines of Future Economic Growth of Bihar State (as % share of GSDP of Bihar)

Industries/sectors 2010-11 2014-15 2019-20 Real Estate, Ownership of Dwelling & Business 1. 25.25 25.28 25.31 Services 2. Trade, Hotel & Restaurants 23.85 24.40 25.11 3. Public Administration 12.38 12.86 13.48 4. Mining & Quarrying 11.96 12.27 12.67 5. Transport, Storage & Communication 4.97 5.58 6.44 6. Electricity, Gas & Water Supply 5.83 6.03 6.28 7. Banking and Insurance 6.12 6.10 6.06 8. Forestry/ Logging 3.72 3.66 3.57 9. Fishing 3.32 3.23 3.12 10. Manufacturing 0.92 1.05 1.23 11. Agriculture/ Animal Husbandry 1.31 1.26 1.20 12. Construction 1.20 1.11 1.01 13. Other Services 0.08 0.09 0.11

Source: Data for 1999-00 to 2008-09 taken from Economic Survey of Bihar (2009-10), GoB and 2009-10 onwards data is Projected estimates based on Trend Growth Rate (1999-00 to 2008-09).

The major sector which will contribute in economic growth is the secondary sector. The share of trade, hotel & restaurants will increase from 14.98 per cent in 1999-00 to 25.31 in 2019-20. Construction industry will increase four-times higher in 2019-20 with 13.48 per cent as compare to 3.78 per cent in 1999-00. There is marginal decline in manufacturing sector from 7.18 per cent in1999-00 to 6.44 per cent in 2019-20. There are very little variations in the changing nature economic activity or industry of origin between constant and current prices during 1999-00 to 2019-20.

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2.2.3 Future Economic Trends of Selected Districts/Towns15 Primary Sector The share of primary sector is expected to play important role with more than 50 per cent contribution in GDDP for six districts namely, East and West Champaran, Kisanganj, Saharsa, and Purnea by 2019-20. Secondary Sector The contribution of secondary sector will dominate in four districts with more than 20 per cent contribution in GDDP namely Munger, Begusarai, Siwan, and Bhagalpur. Tertiary sector will be prime source of income and will emerge as a major sector for all the selected districts with contribution of more than 28 per cent in their GDDP. Tertiary Sector The contribution of tertiary sector is highest (more than 50 per cent) in Patna (89.46 per cent), Munger (61.73 per cent), Bhagalpur (56.90 per cent), Gaya (54.58 per cent), Begusarai (52.82 per cent), and Muzaffarpur (50.65 per cent). By 2019-20, tertiary sector will be dominating and major engine of economic growth driven by Patna, Munger, Bhagalpur, Gaya, Muzaffarpur and Saran with more than 50 per contribution. By 2019-20, among all 38 districts of Bihar, Patna alone will constitute 25.25 per cent of state GSDP followed by East Champaran (4.54 per cent), Muzaffarpur (4.49 per cent), Darbhanga (4.10 per cent), Gaya (3.82 per cent), Bhagalpur (3.11 per cent).

Figure 2.6 Bihar Sector Growth Trends and Projections

Change in the dominance of economic activities by district during 2010-20 is shown in Table 2.7.

15 Note :Sectors are defined as (a) Primary Sector - includes (1) agriculture (including live stock products), (2) forestry, (3) fishing, and (4) mining & quarrying; (b) Secondary Sector - includes (5) manufacturing activities, (6) construction; and (7) electricity, gas & water supply; and (c) Tertiary Sector - includes (8) transport, storage & communication; (9) trade, hotel & restaurants; (10) banking and insurance; (11) real estate, ownership ;of dwelling & business services (12) public administration; and (13) other services.

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Table 2.7 Change in Dominance of Economic Activities by District (2010-2020)

Economic Change in Dominance Bihar Towns/Districts Activities of Economic Activities by No. of Districts 2010 2020 2010 2020 Agriculture & 19 19 Muzaffarpur; Begusarai; East All except Patna Animal Champaran; Gaya; Bhagalpur; Husbandry West Champaran; Darbhanga ; Rohtas; Saran; Vaishali; Katihar; Purnea; Siwan; Nalanda; Bhojpur; Munger; Saharsa; Nawada; and Kishanganj. Manufacturing 1 18 Begusarai Nalanda; Bhojpur; Rohtas; Gaya; Nawada; Saran; Siwan; East Champaran; West Champaran; Vaishali; Darbhanga; Begusarai; Munger; Bhagalpur; Saharsa; Purnea; Kisangan; and Katihar. Public 19 18 Patna; Muzaffarpur ; East Patna; Nalanda; Bhojpur; Administration Champaran; Gaya; Bhagalpur ; Rohtas; Gaya; Nawada; Saran; West Champaran; Darbhanga; Siwan; Muzaffarpur; West Rohtas; Saran;Vaishali; Katihar; Champaran; Vaishali; Purnea; Siwan; Nalanda; Darbhanga; Munger; Bhagalpur; Bhojpur; Munger; Saharsa; Saharsa; Purnea; Kisanganj; Nawada; and Kishanganj. and Katihar Transport, 17 15 Patna; Muzaffarpur; Begusarai; Patna; Nalanda; Bhojpur; Storage & East Champaran; Gaya; Rohtas; Gaya; Nawada; Saran; Communication Bhagalpur; Darbhanga; Rohtas; Muzaffarpur; East Champaran; Saran; Vaishali; Katihar; Vaishali; Darbhanga; Begusarai; Siwan;Bhojpur; Munger; Munger; Saharsa and Katihar. Saharsa; Nawada; and Purnea Real Estate,& 16 Not Patna; East Champaran; Gaya; Business dominant Bhagalpur; West Champaran; Services Darbhanga; Rohtas; Katihar; Purnea; Siwan; Nalanda; Bhojpur; Munger; Saharsa; Nawada; and Kishangan Trade, Hotel & 15 6 Patna; Muzaffarpur; Begusarai; Patna, Muzaffarpur; East Restaurants East Champaran; Gaya; Champaran; Begusarai; Bhagalpur; Rohtas; Saran; Bhagalpur; and Purnea. Vaishali; Katihar; Purnea; Nalanda; Munger; Nawada; and Kishanganj. Other No data 20 All Districts Services* Construction 7 3 Begusarai; West Champaran; Siwan; East Champaran; and Saran; Vaishali; Siwan; Nalanda; Kisanganj and Kishanganj.

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Economic Change in Dominance Bihar Towns/Districts Activities of Economic Activities by No. of Districts 2010 2020 2010 2020 Banking and 5 1 Patna; Muzaffarpur; West Patna; Muzaffarpur; West Insurance Champaran; Darbhanga; Bhojpur Champaran; Darbhanga; Bhojpur Real Estate 16 Not Patna; East Champaran; Gaya; and Property dominant Bhagalpur; West Champaran; Darbhanga; Rohtas; Katihar; Purnea; Siwan; Nalanda; Bhojpur; Munger; Saharsa; Nawada; and Kishanganj.

Note * Unorganised informal sector

2.2.4 Growth Potentials The profiles of the major economic activities with greatest growth potential for the selected 24 towns can be broadly classified as displayed in Table 2.8:

Table 2.8 Ratios (%ages) of Towns with Growth Potential by Economic Profiles

Town Economic Profile %age of Towns (24) with Economic Profile Manufacture based Industrial 54.0 Agro-based processing industrial 75.0 Agro-based marketing & trading 87.5 Handicraft-based 29.0 Regional educational 54.0 Regional health-care 37.5 Regional services & marketing Regional transport hub 25.0 Information technology services centre 4.0 Tourism national & inter-national markets 42.0 Cultural & religious national pilgrimage visitors 17.0 Town with no sector distinction 4.0

2.2.5 Critical Urban Services Inadequate urban services undermine the performance of urban societies, not only as essential inputs to create physical conditions that are optimal for the efficient and effective operations of the various economically productive sectors, but also as fundamental inputs to sustain a healthy and productive workforce. This „health‟ dimension has a cross-cutting impact on all productive sectors. It has recently been estimated that the total economic impacts of sanitation alone in India amounts to a phenomenal Rs. 2.44 trillion (US $53.8 billion) a year16 in 2007 and it can be expected that similar levels of loss will apply in future

16 US $1.00 = Rs. 45.33 in 2006 – Ref: Economic Impacts of Inadequate Sanitation in India, WSP/World Bank, ADB, AusAid and UKAid, 2007.

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years. Indirect impacts are also often cited as very significant for the tourism sector as poor health indicators will inhibit people from visiting such regions, a factor which has particular relevance for Bihar as one of India‟s leading domestic destinations.

Table 2.9 Urban Services for Sector-based Economic Growth

Economic Activities Required Urban Services Manufacture based Industrial Stable industrial water services, better urban-rural road connectivity, industrial sewage services, and industrial waste management Agro-based processing industrial Stable industrial water services, better urban-rural road connectivity industrial sewage services, and industrial waste management Agro-based marketing & trading Stable industrial water services and urban road Handicraft-based Better urban-rural road connectivity Regional educational Better urban-rural road connectivity Regional health-care Stable industrial water services, better urban-rural road connectivity, industrial sewage services, and industrial waste management Regional services & marketing Stable industrial water services, better urban-rural road connectivity, industrial sewage services, and industrial waste management Regional transport hub Stable industrial water services, better urban-rural road connectivity, industrial sewage services, and industrial waste management Information technology services Stable power and communications systems, sanitation and water centre supply, urban road, and industrial waste management Tourism national & inter-national Stable potable and industrial water services, better urban-rural road markets connectivity , industrial sewage services, and industrial waste management Cultural & religious national Stable potable water services, better urban-rural road connectivity, pilgrimage visitors industrial sewage services, and industrial waste management

Not surprisingly, the severe deficit in urban services(Table 2.10) in urban Bihar means that there is a critical shortfall of all basic urban services in all towns of Bihar with the greatest latent potential for economic growth.

Table 2.10 Urban Services Required by 6 Towns Having Largest SGDP Contributions

Bihar : Town-wise major potential sector and required Urban services

Sl. Towns Major Economic Activities (2019-20) and Required Urban Services No. Growth Potential 1. Patna (1) Trade, Hotel & Restaurants water supply, sewerage, (2) Public Administration SWM and urban road/traffic (3) Transport, Storage & Communication (4) Real Estate, Ownership of Dwelling & Business Services (5) Banking and Insurance 2. Muzaffarpur (1) Agriculture/ Animal Husbandry water supply, sewerage, (2) Trade, Hotel & Restaurants SWM and urban road/traffic (3) Transport, Storage & Communication (4) Public Administration (5) Banking and Insurance

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Bihar : Town-wise major potential sector and required Urban services

Sl. Towns Major Economic Activities (2019-20) and Required Urban Services No. Growth Potential 3. Begusarai (1) Trade, Hotel & Restaurants water supply, sewerage, (2) Agriculture/ Animal Husbandry SWM and urban road/traffic (3) Manufacturing (4) Transport, Storage & Communication (5) Construction 4. E. Champaran (1) Agriculture/ Animal Husbandry water supply, sewerage, (2) Public Administration SWM and urban road/traffic (3) Transport, Storage & Communication (4) Trade, Hotel & Restaurants (5) Real Estate, Ownership of Dwelling & Business Services 5. Gaya: (1) Agriculture/ Animal Husbandry water supply, sewerage, (2) Transport, Storage & Communication SWM and urban road/traffic (3) Trade, Hotel & Restaurants (4) Public Administration (5) Real Estate, Ownership of Dwelling & Business Services 6. Bhagalpur (1) Agriculture/ Animal Husbandry water supply, sewerage, (2) Trade, Hotel & Restaurants SWM and urban road/traffic (3) Public Administration (4) Transport, Storage & Communication (5) Real Estate, Ownership of Dwelling & Business Services

For a detailed description of existing economic assessment and future growth assessment refer Section 2 of Volume 3A- Sector Reports.

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3 Urban Service Delivery

3.1 Current Coverage and Condition

3.1.1 Comparison of Bihar Urban Service Status with National Standard and Average Table 3.1 shows the comparison of the Bihar Urban Service Status with the National Standard, the National Average and the 24 Bihar Town Average.

Table 3.1 Level of Urban Service - Bihar in Comparison with National Standard, National Average and 24 Town Average

Water Supply Sewerage Solid Waste Drainage

24 Towns

r Supplied r into Distribution/

PopulationCovered Disposalto landfills

Sewerage Coverage Sewerage

atenumber of water logging

Populationwith Toilets

Water Supply Water Coverage

incidentsreported in a year

Numbermetered connections Populationin Coverage Area

Aggreg

Total Wate Hours per Hours day supply incoverage areas

Capita Per Supply of(MOUD Water SLB) Coverageof storm water drainage network

Units % lpcd lpcd hrs % % % % % % unit National Standard 100 135 24 100 100 100 100 100 100 0 National Average 81 123 4 25 28 82 51 2 53 24 Town Average 49 28 56 7 0 0 72 46 0 32 9

1 Arrah 70 56 80 8 0 0 90 28 0 70 12

2 Bagaha 50 15 0 12

3 Begusarai 60 20 33 4 0 0 90 67 0 65 15

4 Bettiah 30 10 33 5 0 0 90 43 0 20 8

5 Bhagalpur 81 57 70 5 0 0 58 60 0 70 0

6 Bihar Sharif 80 46 57 8 0 0 90 28 0 60 12

7 Chapra 70 34 48 5 0 0 50 28 0 60 10

8 Danapur Nizamat 80 69 86 12 0 0 80 46 0 0 9

9 Darbhanga 36 28 78 12 0 0 70 70 0 37 0

10 Dehri 60 12 19 4 0 0 80 53 0 50 11

11 Gaya 82 29 35 5 0 0 53 70 0 47 0

12 Hazipur

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Water Supply Sewerage Solid Waste Drainage

24 Towns

r Supplied r into Distribution/

PopulationCovered Disposalto landfills

Sewerage Coverage Sewerage

atenumber of water logging

Populationwith Toilets

Water Supply Water Coverage

incidentsreported in a year

Numbermetered connections Populationin Coverage Area

Aggreg

Total Wate Hours per Hours day supply incoverage areas

Capita Per Supply of(MOUD Water SLB) Coverageof storm water drainage network

Units % lpcd lpcd hrs % % % % % % unit

13 Jamalpur 0 90 78 0 0 8

14 Katihar 45 3 7 6 0 0 90 41 0 40 10

15 Kishanganj 20 9 45 8 0 0 90 60 0 40 7

16 Motihari 40 48 120 6 0 0 80 73 0 15 8

17 Munger 75 0 0 8 0 0 90 41 0 0 12

18 Muzaffarpur 30 76 253 11 0 0 0 60 0 86 0

19 Nawada 40 27 68 8 0 0 97 60 0 20 12

20 Patna 95 102 107 16 0 46 82 75 0 60 8

21 Purnia 40 4 10 8 0 0 84 42 0 15 15

22 Saharsa 24 6 25 6 0 0 93 28 0 15 8

23 Sasaram 40 6 0 0 67 10 0 0 12

24 Siwan 80 29 36 6 0 0 74 31 0 0 15

Table 3.2 shows the index value of level of criticality of Bihar urban services in tabular form based on the ratio of the existing level of service and the relevant National Standard norm of MOUD.

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Table 3.2 Index Value - Level of Criticality - Bihar Urban Services as Ratio of Existing Level of Service and National Standard of MOUD

Water Supply Sewerage Solid Waste Drainage

24 Towns

(MOUDSLB)

coverageareas

drainagenetwork

PopulationCovered Disposalto landfills

Sewerage Coverage Sewerage

Populationwith Toilets

Water Supply Water Coverage

Hours per Hours day supply in

Coverageof storm water

Per Capita Per Supply of Water Numbermetered connections

1 Arrah 0.70 0.42 0.33 0.00 0.00 0.90 0.28 0.00 0.70 2 Bagaha 0.00 0.50 0.15 0.00 0.00

3 Begusarai 0.60 0.15 0.17 0.00 0.00 0.90 0.67 0.00 0.65 4 Bettiah 0.30 0.07 0.21 0.00 0.00 0.90 0.43 0.00 0.20 5 Bhagalpur 0.81 0.42 0.21 0.00 0.00 0.58 0.60 0.00 0.70 6 Bihar Sharif 0.80 0.34 0.33 0.00 0.00 0.90 0.28 0.00 0.60 7 Chapra 0.70 0.25 0.21 0.00 0.00 0.50 0.28 0.00 0.60 Danapur 8 0.80 0.51 0.50 0.00 0.00 0.80 0.46 0.00 0.00 Nizamat 9 Darbhanga 0.36 0.21 0.50 0.00 0.00 0.70 0.70 0.00 0.37 10 Dehri 0.60 0.09 0.17 0.00 0.00 0.80 0.53 0.00 0.50 11 Gaya 0.82 0.21 0.21 0.00 0.00 0.53 0.70 0.00 0.47 12 Hajipur

13 Jamalpur 0.90 0.78 0.00 0.00

14 Katihar 0.45 0.02 0.25 0.00 0.00 0.90 0.41 0.00 0.40 15 Kishanganj 0.20 0.07 0.33 0.00 0.00 0.90 0.60 0.00 0.40 16 Motihari 0.40 0.36 0.25 0.00 0.00 0.80 0.73 0.00 0.15 17 Munger 0.75 0.33 0.00 0.00 0.90 0.41 0.00 0.00

18 Muzaffarpur 0.30 0.56 0.46 0.00 0.00 0.60 0.00 0.86

19 Nawada 0.40 0.20 0.33 0.00 0.00 0.97 0.60 0.00 0.20 20 Patna 0.95 0.76 0.67 0.00 0.46 0.82 0.75 0.00 0.60 21 Purnia 0.40 0.03 0.33 0.00 0.00 0.84 0.42 0.00 0.15 22 Saharsa 0.24 0.04 0.25 0.00 0.00 0.93 0.28 0.00 0.15 23 Sasaram 0.40 0.25 0.00 0.00 0.67 0.10 0.00 0.00

24 Siwan 0.80 0.21 0.25 0.00 0.00 0.74 0.31 0.00 0.00

Table 3.3 show this ratio in diagrammatic form with the index differentiated between High (HC), Moderate (MC) and Low Criticality (LC) based on HC< 0.5, 0.5

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Table 3.3 Level of Criticality of Bihar Urban Services

Water Supply Sewerage Solid Waste Drainage

24 Towns

connections

(MOUDSLB)

umbermetered

coverageareas

N

drainagenetwork

PopulationCovered Disposalto landfills

Sewerage Coverage Sewerage

Populationwith Toilets

Water Supply Water Coverage

Hours per Hours day supply in Coverageof storm water

Capita Per Supply of Water Categorised as Highly, Moderate or Lowly Critical from Ratio of Existing Level of Service to National Standard of MOUD (Key HC<0.5, 0.5

1 Arrah MC HC HC HC HC LC HC HC MC Bagaha HC HC HC HC HC HC HC 2 3 Begusarai MC HC HC HC HC LC MC HC MC 4 Bettiah HC HC HC HC HC LC HC HC HC 5 Bhagalpur LC HC HC HC HC MC MC HC MC 6 Bihar Sharif LC HC HC HC HC LC HC HC MC 7 Chapra MC HC HC HC HC HC HC HC MC Danapur LC MC HC HC HC LC HC HC HC 8 Nizamat 9 Darbhanga HC HC HC HC HC MC MC HC HC 10 Dehri MC HC HC HC HC LC MC HC HC 11 Gaya LC HC HC HC HC MC MC HC HC Hajipur 12 Jamalpur LC LC HC HC 13 14 Katihar HC HC HC HC HC LC HC HC HC 15 Kishanganj HC HC HC HC HC LC MC HC HC 16 Motihari HC HC HC HC HC LC MC HC HC 17 Munger MC HC HC HC HC LC HC HC HC 18 Muzaffarpur HC MC HC HC HC HC MC HC LC 19 Nawada HC HC HC HC HC LC MC HC HC 20 Patna LC LC MC HC HC LC LC HC MC 21 Purnia HC HC HC HC HC LC HC HC HC 22 Saharsa HC HC HC HC HC LC HC HC HC 23 Sasaram HC HC HC HC HC MC HC HC HC 24 Siwan LC HC HC HC HC MC HC HC HC

Current Status of Urban Service Delivery In Bihar Based on the comparison with national standards, national average, and the State average for each subsector, the current status of urban service delivery in Bihar is as follows.

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The water supply situation in Bihar is Highly Critical for per capita supply of water and hours of supply of water for most towns with the exception of Patna, Muzaffarpur and Danapur Nizamat. For water supply coverage- the situation is Highly Critical for about half the towns- mainly the towns with smaller populations further from the capital Patna. Towns suffering particularly badly from a lack of water supply are Bettiah, Darbhanga, Katihar, Kishanganj, Motihari, Muzaffarpur, Nawada, Purnia, Saharsa and Sasaram. In particular, Bettiah, Darbhanga, Kishanganj and Saharsa show very poor water supply service for all three parameters. The Bihar sewerage subsector is lagging substantially behind the national standard and national average. The national average standard for sewerage coverage is 28% but in Bihar there are very few towns with modern sewerage systems with the exception of towns along the Ganga River like Patna and Bhagalpur. These Ganga R towns have benefited from specific investments in sewerage infrastructure provided under the National Ganga Action Plan 1985-2000. The initiation of improved sewage disposal and sanitation facilities throughout Bihar has a very high priority. Whilst most towns re Low to Moderate Critical for toilet coverage, the disposal of toilet wastes to septic tanks and directly to drains and ditches needs to be addressed. An average of only 2% of cities in India have modern sanitary engineered landfills and so Bihar is not lagging behind the national solid waste average for landfill disposal. About half of the towns in Bihar are Highly Critical for solid waste collection. Nevertheless the widespread practise of disposing of garbage along the roadside or just beyond town limits represents a serious health risk to communities from vermin and flies as well as being unsightly and offensive. The completion of Master Plans and the construction of engineered landfills in towns greater than 100,000 population therefore has very high priority. For drainage the situation in Bihar is Highly Critical for storm water drainage coverage for 75% of towns with the exception of Patna, Muzaffarpur, Bhagalpur, Arrah and Begusarai. The coverage of 86% is misleading for Muzaffarpur as the capacity of the storm water system in Muzaffarpur is inadequate and Muzaffarpur frequently flood s in the wet season due to lack of storm water pumping capacity ( Muzaffarpur lies in a basin). Darbhanga is another town that urgently needs drainage and flooding problems addressed. The main issues facing Bihar for each sub-sector are as follows: Water Supply Issues In many towns of Bihar the groundwater resources which have been the most common water supply source in the past are generally insufficient to meet the MOUD standard of per capita requirement of 135 lpcd. Meeting this target often requires additional abstraction from surface water sources. The adequacy of surface water supplies near where it is required represents an issue - in the case of some towns such as Gaya surface water abstraction requires very expensive long pipelines to the Ganga River. Another issue is that some of the groundwater sources are contaminated with arsenic and fluoride which means that the groundwater resource cannot be used in the future to augment supply. This is the situation in Bhagalpur and some other towns. There has been a lack of investment for new Water Treatment Plants and water supply pipelines- but the fact that many surface water sources are further away from the town adds to the cost of improving the water supply network. Perhaps the most serious issue concerning water supply service delivery is a serious shortage of power supply which limits the time during which borehole pumps or surface water abstraction or treated water delivery pumps can run. The typical hours of water supply delivery range from 4 to 16 hours with the 24 town average being 7 hours per day. The intermittent water supply service delivery is due to interruptions of the power supply.

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There is inadequate O&M budget to run water treatment plants, lack of staff both at managerial and technical level to manage the water supply system and staff need training in modern water utility management and operational techniques. Insufficient revenue is generated from water sales to assist with O&M costs. There is a lack of water meters so it is difficult to charge commercial and high users of water, and also no incentive to stop people wasting water. An improvement in accounting practises in ULBs is required so that water consumers can be identified, and the introduction of billing to ensure that revenue is obtained for the water service delivered. Sewerage Issues The issues affecting sewerage are similar to those affecting water supply- but the sewerage system issues are more serious than water supply issues .Implementation of sewerage systems in Bihar lags far behind the National Standard and even the National average 28%- which itself is low for India by comparison with international standards. The issues are lack of Town Sewerage Master Plan, inadequate water supply, intermittent and unreliable power supply for sewage pump stations and powering STPs (Sewage Treatment Plants), lack of investment in sewerage infrastructure, inadequate capital & O&M budget for sewerage systems, lack of specially trained sewerage management and O&M staff, need for training in of sewerage utility management, inadequate revenue, lack of understanding of wastewater treatment chemistry and lack of wastewater laboratory facilities. In Patna there are 4 STPs with a capacity of 109 mld and 46% of the city is connected to a sewerage system. In Bhagalpur wastewater from drains is trapped before discharge to Ganga River and conveyed in a 12 km long trunk sewer for treatment in an 11 mld capacity STP. There is no underground sewerage network in Bhagalpur. In Chapra there is small STP which is not working. In Munger there is an incomplete STP. This represents the extent of secondary sewage treatment systems in Bihar. Solid Waste Management Issues The issues affecting solid waste management are lack of Solid Waste Master Plans, no landfill site identified, lack of investment in solid waste management, inadequate capital & O&M budget for garbage disposal, garbage which is collected is disposed of indiscriminately at the side of the road or at town boundaries (e.g Gaya), effect on the environment and public health effects of indiscriminate garbage disposal and lack of trained staff. Drainage Issues The issues affecting drainage are lack of Drainage Master Plans, limited capacity of city storm water drainage channels , periodic and serious town flooding due to monsoon, use of open drains for disposal of sewage and toilet wastes, lack of storm water pump stations to clear flooding from monsoon rains, lack of investment in drainage infrastructure, inadequate capital & O&M budget for drainage management, effect on the environment and public health effects of flooding and use of drains and ditches for sanitation and lack of trained staff. An important issue is also lack of and intermittent power supply for drainage pump stations , narrow crowded streets and insufficient space for storm water drains, pipes and box culverts- particularly in crowded city centres, lack of management, lack of staff and inadequate revenue. For example- in both Muzaffarpur and Darbhanga there is a problem with the limited capacity of city storm water drainage channels and a lack of storm water pumping stations. Darbhanga is affected by frequent floods, especially during the monsoon. In both towns the topography is saucer shaped with low elevation in the centre of the town. Two major flooding events occurred in Darbhanga in 1987 & 2004, when river water entered the town. These water supply, sewerage, solid waste management and drainage issues feed directly into section 3.5.1 „Physical Constraints.

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Lack of Energy Effect on Water Supply Coverage The lack of energy issue is directly related to the limited water supply hours and hence water supply coverage, because electricity is needed for pumps for abstraction of water from ground or surface water sources, for operation of Water Treatment Plants such as for flash mixers and flocculators, for back wash pumps for cleaning the rapid gravity filters and for the treated water pump stations to pump the treated water into the reticulation and to overhead storage tanks. The main reasons for sub-sectors in Bihar lagging substantially behind include lack of investment in the required infrastructure and poor reliability and adequacy of power supply. The availability of power supply in Bihar can be assessed on the basis of national average and shortfall in power demand and supply. The percentage of villages electrified in Bihar is 41% (against national electrification of 55.8 % (national average 58.8%), per capita consumption of power is 76 units (national average 612 units), installed capacity of power is 584 MW (national average 119,000 MW) and actual generation of power is approximately 30 MW (national average 71-75,000 MW). Shortfall between demand and availability in Bihar increased significantly between 2005- 06 and 2007-08. Table 3.4 sets out availability and shortfall of power in Bihar from 2004- 2008.

Table 3.4 Demand and Availability of Power in Bihar (Mega Watts)

Peak Demand Availability Shortfall 2004-05 980 980 0 2005-06 1314 1116 198 2006-07 1399 1162 237 2007-08 1235 796 439 Source: Bihar State Electricity Board.

3.1.2 Comparison of Urban Service Status within Bihar Urban Areas The most vulnerable towns in Bihar in each subsector in ascending order (most vulnerable first) is shown in Table 3.5.

Table 3.5 Most Vulnerable Six Towns for Each Subsector in Bihar

Ascending Order Water Supply Sewerage Solid Waste Drainage of Vulnerability Most Vulnerable Katihar Bagaha Sasarum Danapur Purnia Chapra Bagaha Motihari

Kishanganj Gaya Bihar Sharif Purnia

Bettiah Bhagalpur Chapra Saharsa

Dehri Sasaram Saharsa Bettiah

Less Vulnerable Begusarai Darbhanga Siwan Nawada

These vulnerable towns were identified on the following basis. Water supply- firstly –poor per capita supply of water lpcd, secondly – poor water supply coverage Sewerage- population lacking toilets, discussion with ULBs Solid Waste Management- poor solid waste collection coverage

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Drainage- drainage coverage, discussions with ULBs Several towns feature in more than one sub sector for urban service vulnerability- these include Purnia, Bettiah, Chapra, Sasaram, and Saharsa. Also Bagaha, Bettiah, Dehri, Kishanganj and Saharsa suffer from poor to nil water supply service delivery. Conclusion Based on the results of the above, two options are available for implementation:.  Improve the urban infrastructure of the largest contributors to SGDP as set out in Chapter 2 to maximize the economic growth potential.  Improve the urban infrastructure of the least benefited towns as set out in sections 3.1.1 and 3.1.2 above. The choice of the option is detailed in the investment program in Volume 2.

3.1.3 Status of Slum Upgrading Programmes The percentage of slum population in various Bihar ULBs and the number of slums and households in SPUR towns is shown in Section 1.3 of Volume 3A - Sector Reports. Slum improvement is being adequately addressed by other Government initiatives and are therefore excluded from the BUIDP investment program. The status of current slum upgrading projects in Bihar as of November 2010 is shown in Table 3.6 below.

Table 3.6 Status of Current Slum Upgrading Projects in Bihar

Plan / Scheme Units No of slum dwelling Total Project units recognised in Cost in Rs. Bihar Million BSUP - No. of dwelling units sanctioned* 22,372 198,935 7099.84 IHSDP - No. of dwelling units sanctioned* 12,956 198,935 2760.78

SJSRY Scheme: Number of beneficiaries* 20,014 198,935 1303.43 RAY – Phase 1 Preparatory activities 198,935 38.32 in selected towns SPUR (28 towns + UD&HD) Under finalisation 198,935 4250** *Source: UD&HD – Status of JNNURM, Dec 2010 **Also includes non-slum

3.2 Legal and Institutional Framework

3.2.1 Legal Framework Laws, Rules and Regulations The Bihar Municipal Act (BMA) 2007 makes obligatory provisions for municipalities to provide for water supply, drainage, sewerage, solid waste management and municipal road sub-sectors in their respective territorial jurisdictions. Legal framework of urban service delivery is discussed in the Section 3.1 of Volume 3A Sector Reports. Legal Constraints No major legal or policy constraints have been identified which may delay efficient and equitable delivery of urban services in Bihar. Devolution of powers to the ULBs occasioned by the 2007 BMA has been in its infant stage and the Act needs to be clarified and strengthened with regard to its implementation. Under the SPUR programme, the legal framework of the BMA is strengthened. Gaps and errors have been identified in BMA 2007 and 64 amendments to this Act are proposed and submitted to the GOB for consideration and approval. All are intended to correct and

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clarify the Act, improve organisation at State and ULB level and fill gaps and omissions in the existing municipal legislation. Community development law improvements are also proposed as also the development of ward committees and “Area Sabhas”17. Other Acts suggested to be promulgated include a Local Government Ombudsman Act and a Property Tax Board Act. Table 3.7 summarizes the actions that SPUR propose to clarify, amend and otherwise improve the BMA 2007.

Table 3.7 Proposed 64 Amendments to BMA by SPUR

Item No BMA Section SPUR Issue SPUR Solutions 1-6 Definitions Definitions clarified Clarifies various terms in BMA, eg Area Sabaha, Basic Service for Poor, Board of Councillors, Ombudsman, Municipal Accounting Manual 7-8 Sect 12, 30.6 Error corrected Cross reference clause numbers corrected 8-14 Sect 16,17,18 Councillor‘s duties clarified Clarifies powers, recall, functions, removal of Municipal Councillors 15 Sect 21 Sub- Filling Vacancy Standing New clause added clarifying omission Sect (3) (a) Committee 16-21 21(5), 23(2), Procedures relating to Enabling provision, appointment, casual vacancy, 25/2 appointment /resignation of interim arrangements, role of Divisional Chief Councillor Commissioner, State Government 22-24 Sect 27, 27B Powers ,functions Chief Powers functions added, duties described, terms of Councillor, Chief Municipal office clarified Officer 25 Sect 30(6) Incorrect ref S369 Reference corrected 26-29 Sect 31,32 Ward committee, Sabha Clarified in line with Central Govt Bill. Reservation definition, rules for for women, rules for transacting business added transacting business clarified 30 Sect 32 ―Slum services‖ definition Change to ―slum upgradation, basic services‖ 31-34 Sect 35, 36 Convening meetings, hiring Clarified- officer recruitment inserted, Municipal municipality staff Financial Officer, Audit Officer etc 35 Sect 44, Ombudsman office Creation of Ombudsman office 36-42 Sect 45,48, Slum improvements, Sections clarified, amended, quorum for meeting 49, 50, 50(3) meetings quorum, notice of increased from 1/5 to ½, presiding officer definition meetings, adjournment 43-44 Sect 71, 73(2) Fiscal transfers to Fiscal transfers rationalised, slum upgradation municipality, slum defne defined 45 Sect 82, 87, Various clauses relating to Strengthen budget preparation requirements, State 88, 91(2), ULB budgets, auditing of Govt to prepare Municipal Accounts Manual, 91(3), 98(6) ULB accounts, role of preparation of financial statements, Annual Report Comptroller and Auditor to be prepared by the Examiner of Local Accounts General (C&AG), and and laid on the both Houses of State Legislature, improving ability of ULBs to replacing Examiner of Local Accounts with C&AG source revenue from at certain places Property Tax

17 Municipalities are divided into constituencies called wards. Wards are further divided into Area Sabhas. Each Area Sabha consists of several polling parts. Each Area Sabha selects a representative from among themselves for the ward committee. Since a Ward is comprised of multiple Area Sabhas, a Ward Committee is made up of representatives of the various Area Sabhas within that Ward.

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Item No BMA Section SPUR Issue SPUR Solutions 54 127 Additional resource mobilisation from mobile phone towers, vacant land, Property Tax non payment penalties & assessment clarified, holding tax clarified. 55 Sect 128 Amendment suggested to say ‗besides levy of property tax 56 Sect 130 ULB can levy 25% surcharge Levy considered too high - clause amended to on tax oe fees restrict to 2.5% surcharge 57 Sect 138 Assessment of Holdings A new section 138A suggested to constitute a state level Property Tax Board in compliance of the recommendations of the 13th Finance Commission for accessing General Performance Grant 58 Sect 274 District Planning Committee A new Section 274A proposed to be introduce time to prepare Development limit in preparation of development plans Plan 59 Sect 286 Provides for the Municipality Municipality needs to be given powers to notify and to define and alter limits of de-notify slums slums 60-63 Sects 317, Hindi text needs clarification Hindi Text clarified 322, 416, 428 64 Sect 441 Notification of Municipal New Clause added to clarify: Elections Notification shall be required to hold elections for such posts which after general election have subsequently become vacant due to resignation, death, removal from post, judicial order or some other reason.

Sections Causing Difficulties Once the amendments suggested in Table 3.7 are in place, no specific sections/parts of laws, rules and regulations and orders are causing difficulties.

3.2.2 Institutional Framework Existing Institutions

Table 3.8 Government Departments and Agencies Involved in Urban Development

Agency Responsibilities Urban Development and Housing Department Policy, planning, administration Urban Bihar Bihar Urban Development Agency (BUDA) Implement JNNURM & UIDSSD Projects Urban Bihar Bihar Urban Infrastructure Development Implement urban development projects Urban Bihar Corporation Directorate of Municipal Administration Urban policy, supervision of municipalities Municipalities and Corporations Delivery and maintenance of municipal services Public Health Engineering Department Urban and rural water supply & sewerage construction, O&M Bihar Rajya Jal Parshad (BRJP) Construction and O&M in some towns of water supply, sewerage & drainage schemes - directed by PHED.

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Agency Responsibilities Bihar Rajya Pul Nirman Nigam (BRPNN) Construction, O&M bridges/ flyovers/ roads collect tolls District Urban Development Authorities Prepare development plans, land development. Bihar Housing Board (BHB) Development of urban housing Road Construction Department Construction and O&M of major roads in the state Bihar State Pollution Control Board Enforcement of environmental protection and pollution control Note - For applicable laws refer to Section 3 of Volume 3A Sector Reports. Overlap of Mandates and Solutions Thereof In the past moderate overlap of mandates was shown by some institutions- eg PHED and Municipal Corporations - particularly in the urban water supply area. The State Government recognised this and took steps to address it. PHED‟s role in urban water supply sector is the process of substantial change. Further details are provided in the Road Map Sector Reports. Inappropriate Institutional Structure Causing Delay Institutional structure is not a problem. A Directorate of Municipal Administration (DMA) exists at State Level but under SPUR recommendations it is to be strengthened to provide oversight and provide assistance to ULBs. The strengthening and broadening of mandate of this Directorate is to be submitted to Cabinet for decision shortly. For management of large urban infrastructure projects, BUIDCO has been created. The objective of the improvements in ULB management is intended to facilitate access to and appropriate use of JNNURM funds. Cost of Solutions The cost of institutional strengthening at 24 ULBs and 149 towns has been estimated to be Rs. 2,086 million and Rs. 2,541 million respectively. Annual training costs at 24 ULBs and 149 towns have been estimated to be Rs.13.53 million and Rs.18.9million respectively. Part of this cost will be covered by the ULB institutional strengthening component of the SPUR. The breakdown of these costs and how they were calculated is provided in Section 4.2 of Volume 3A Sector Reports.

Table 3.9 Cost of Solutions (Rs Million)

24 Towns 149 Towns ICT Institutional strengthening , GIS, MIS, 2085.7 2541.4 accrual accounting costs Rs million Training costs per annum, Rs million 13.53 18.9

3.3 Human Resources

3.3.1 Number of Asset Creation Staff Table 3.10 shows that the HR Key Performace Indicator (KPI) “State median water supply staff per 1000 water connections” is below the India National Average. Generally - the ULB water supply divisions are understaffed in Bihar. ULBs need to improve staff numbers and training to improve water supply service delivery.

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Table 3.10 Comparison Asset Management and O&M Staff with National Average 18

City Variable

a

State Arrah BagahaBegusaraiBettiah BhagalpurBiharSharif Chapra DanapurNizamat DarbhangaDehri Gaya Hajipur MedianNationalAverage Staffing Numbers Total ULB Staff (On roll 368 NA 68 109 457 251 213 135 320 NA 533 125 On Contract 0 NA NA 8 NA 0 0 123 394 NA NA 0 Total Asset Management Staff 68 NA 17 133 54 127 117 36 19 NA 76 35 55 Staff/1000 water connections b 8 NA NA NA 5 4 20 2 1 NA 1 8 5 7.4 Water connections (number) 8,490 NA NA NA 10,415 28,720 5,716 15,228 6,934 NA 32,534 4,500 Water Supply staff 68 5 17 133 49 127 117 36 10 12 48 35 48 Sewerage staff incl NA incl incl 5 incl incl incl incl NA incl incl Solid Waste Management staff incl NA incl incl incl incl incl incl 1 NA incl incl Drainage staff incl NA incl incl incl incl incl incl 8 NA incl incl

a

JamalpurKatiharKishanganjMotihari Munger MuzaffarpurNawada Patna Purnia Saharsa Sasaram Siwan State MedianNationalAverage Staffing Numbers Total ULB Staff (On roll NA 134 138 210 361 678 NA 2023 NA 31 160 42 On Contract NA 177 83 19 0 219 NA 0 NA 101 153 81 Total Asset Management Staff NA 56 44 48 82 63 NA 408 58 34 13 16 55 Staff/1000 water connections b NA NA 68 NA 5 3 193 2 115 68 2 NA 5 7.4 Water connections (number) NA NA 650 NA 16,880 18,500 654 1,41,921 503 500 7,044 NA Water Supply staff NA 56 44 48 82 47 126 271 58 34 13 16 48 Sewerage staff NA incl incl incl incl incl NA 137 incl incl incl incl Solid Waste Management staff NA incl incl incl incl 10 NA incl incl incl incl incl Drainage staff NA incl incl incl incl 6 NA incl incl incl incl incl a ADB India Benchmarking report 2007 average of 20 Indian water utilities b Staff per 1000 connections is usual KPI for water utility benchmarking NA Not available Incl=included

Table 3.11 sets out the qualifications of asset creation staff in Bihar ULBs. Table 3.12 provides world class norms for comparative performance indicators.

18 The National Average HR KPI for Staffing in a Water Utility is the international, SEAWUN and ADB India Benchmarking report 2007 recognised ―Staff per1000 Water Connections‖ - and in the ADB India Benchmarking Report this is the average of 20 Indian water utilities.

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Table 3.11 General Qualifications of Asset Creation Staff

Qualifications Water Supply, Drainage, Sewerage Occupational Type Qualification How Appointed Superintending Engineer (SE) B.E/B.Tech Supt Eng Post filled by promotion from Exec Eng or by secondment. Executive Engineer B.E/B.Tech Exec Eng post filled by promotion from Assistant Engineer. Assistant Engineer B.E/B.Tech Lateral recruitment or promotion from Junior Engineer. Junior Engineer BE/B.Tech Direct recruitment. Water Treatment Plant (WTP) WTP Certificate Direct recruitment Supervisor Water Treatment Plant WTP Certificate , or WTP Direct recruitment Operator Diploma Laboratory Technician B Sc, Public Health Laboratory Direct recruitment Technician Certificate. Laboratory Assistant Public Health Laboratory Direct recruitment Technician Certificate. Electrician, pump mechanic Tradesman Certificate Direct recruitment Pump Operators Literate, Mechanical experience Direct recruitment Qualifications Solid Waste Management Chief Sanitary Inspector Sanitary Inspector Certificate By promotion Sanitary Inspector Sanitary Inspector Certificate Direct recruitment Ward Inspector Class 10 pass Direct recruitment

Table 3.12 World-Class Norms for Comparable Unit

Performance Indicator 2007 ADB Bench Marking 2005 Data Book SE Asian Data Book - Water Utilities Water Utilities India Staff/1000 connections 7.4 7.2 Revenue Collection Efficiency 99.5% 118% % O/R-ratio(<1, tariff covers 1.63 O.84 O&M) Accounts/Receivable-months 4.9 0.9

Table 3.13 is intended to illuminate the staff number deficiencies in each of 24 towns in Bihar, and illuminate the qualification deficiency in each occupational type for each of the subsectors water supply, sewerage, solid waste management, drainage, roads and slum upgradation. This task was approached by reviewing the staffing number of four towns which were visited for the purposes of Investment Program preparation- namely Bhagalpur, Muzaffarpur, Darbhanga and Gaya.

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It was found that there was a general shortage of staff with technical qualifications, commonly only one or two engineers with university qualifications were in place. The qualifications of the staff that operated the water treatment plants or borehole pumping installations was generally poor. The numbers of staff shortages in the 4 towns was assessed and extrapolated to towns with lesser population using judgement and norms for Indian water utilities19. The 24 towns were divided into towns with population greater than 100,000, between 50,000 and 100,000 and towns with less than 50,000 population. It was reasoned that staff requirements in the larger towns would be higher than in the medium and smaller towns- and as assessment was made based on experience on the number of staff typically required in a water or sewerage utility. Guidance was also taken from the ADB/MOUD India Water Utility Benchmarking Handbook which showed that the staff per 1000 connections typically varied from 0.4 (Jabalpur-population 1 million) to 20.7 (Bhopal- population 2.4 million) with an average staff/1000 connections of 7.1. These figures are for larger cities than are being assessed in Bihar and an appropriate allowance has been made for this. The staff/1000 connections figures also include all staff including unskilled. It was assessed that a town larger than 100,000 population required 26 professionally qualified or skilled staff in the water utility, between 50,000 and 100000 population 20 staff and towns less than 50,000 population would require only 6 staff in the water utility. The table was then completed following this rationale, with appropriate assessments made on the same basis for the other sub sectors. Table 3.13 shows skilled asset management staff number deficiencies in each town for water supply, sewerage, solid waste management, drainage, roads and slum sub sectors (excluding labourers and unskilled workers).

Table 3.13 Skilled Asset Management Staff Number Deficiencies in each Town

Utility Sub Staff Number Staff Number Staff Number Qualification Deficiency Sector Deficiencies Deficiencies Deficiencies per per town Pop per town Pop town Pop >100,000 >50,000- >10,000-50,000 100,000

Water Supply Engineering ME / M Tech (for managers), WTP Water Supply 26 20 7 operators course (for treatment plant operators) Wastewater Engineering ME/ M Tech (for managers), Sewage Sewerage 20 15 5 TP operators course (for STP operators) Public Health Engineering ME/ Solid Waste M Tech (for managers), landfill 13 10 4 Management management course (landfill staff) Sewage & Drainage Engineering ME/ M Tech (for managers), Drainage pump station Drainage 20 15 5 operators course (for Stormwater Pump station operators)

19 2007 Benchmarking and Data Book of Water Utilities in India, Partnership between Ministry of Urban Development, Government of India and ADB, 2007

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Utility Sub Staff Number Staff Number Staff Number Qualification Deficiency Sector Deficiencies Deficiencies Deficiencies per per town Pop per town Pop town Pop >100,000 >50,000- >10,000-50,000 100,000

Roads and Traffic Engineering ME/M Tech (for managers) , road construction and Urban Roads 20 15 5 maintenance & traffic management and safety for construction workers Slum Upgradation infr (for socio-economists and social Slum workers-BA, B Social Work), 20 15 5 Upgradation slum housing upgradation for builders and carpenters-trade certificates

3.3.2 Annual Cost of Mitigating Deficiency The annual cost of mitigating the staff deficiency is estimated to be Rs.1051.2 million for 24 towns and Rs.2,878.6 million for 149 towns- covering all 6 sub sectors water supply, sewerage, SWM, drainage, urban roads and slum upgrading. The annual cost of remedying the qualification deficiency is estimated to be Rs.13.5 million for 24 towns and Rs.18.9 million for 149 towns (Table 3.14). Further detail of the breakdown of these costs and how they were calculated is provided in Section 4.2 of Volume 3A Sector Reports.

Table 3.14 Annual Cost of Mitigating Deficiency (Rs. Million)

4 Towns 24 Towns 149 Towns Staff Number Deficiencies 182.4 1,051.2 2,878.6 Training Cost Estimates (annual) 4.1 13.5 18.9

3.4 Finance for Urban Service Delivery

3.4.1 State Budget Urban development and housing department‟s (UD&HD) budget depends on the allocation it receives from the State and is not reflective of the actual investment needs at various ULBs and urban centers in Bihar. ULBs and urban centers plan their investment schemes as well as for operation and maintenance and send their request for funds to the UD&HD. Investment data for past ten years has been collected from the twenty four towns covered under survey and presented in Section 3 of Volume 3A Sector Reports for water supply, sewerage, drainage, solid waste, roads and slums. Investment data shows a pattern that investment in urban infrastructure development has mostly happened from 2005-06 onwards (table 3.15). ULBs and urban centres depend on the funds from HD&HD for carrying out capital investment schemes as their own revenues are inadequate to meet even the operational expenses. Capital schemes have lagged behind due to restricted fund allocation from the UD&HD whose budget is once again is decided by the allocation at GoB level.

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Table 3.15 UD&HD Budget Allotment for Capital Works in ULBs (Rs. Million)

2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 Total for the State 811.5 547.1 2493.1 844.7 326.1 863.2 Water Supply 203.0 56.3 593.1 497.2 326.1 863.2 Sewerage 0 0 0 0 0 0 Roads 393.9 200.0 1300.0 100.0 NA NA Drainage 214.7 290.8 600.0 247.5 NA NA Twenty Four Towns Water Supply 137.0 20.5 390.8 841.3 238.0 863.2 % to state total 67.5% 36.5% 65.9% 169.2% 73.0% 100.0% Sewerage 0 0 0 0 0 0 Roads 144.4 124.6 1101.7 84.7 NA NA % to state total 36.7% 62.3% 84.7% 84.7% NA NA Drainage 97.3 209.3 448.4 247.5 NA NA % to state total 45.3% 72.0% 74.7% 100.0% NA NA Four Investment Program Towns Water Supply 18.5 20.5 43.0 268.1 45.0 349.0 % to state total 9.1% 36.5% 7.2% 53.9% 13.8% 40.4% Sewerage 0 0 0 0 0 0 Roads 0.0 64.0 324.9 38.7 NA NA % to state total 0.0% 32.0% 25.0% 38.7% NA NA Drainage 0.0 1.4 78.3 236.8 NA NA % to state total 0.0% 0.5% 13.1% 95.7% NA NA Note: Data prior to 2004-05 was not available NA – Not Available Source: UD&HD Budget

3.4.2 Operation and Maintenance during the Last 10 Years PHED‟s budget provides for rural water supply and its own operation and maintenance. PHED carries out construction of water supply, sewerage and drainage systems on behalf of ULBs and receives money from ULBs. Data from PHED on the operation and maintenance of water supply systems is awaited. Table 3.16 provides at a glance the budget allocation for operation and maintenance (non- plan) to UD&HD for years 2006 to 2010.

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Table 3.16 UD&HD Budget Allotment for O&M (Non Plan) in ULBs

2009-10 2008-09 2007-08 2006-07 Total for the State 1379.8 678.5 865.1 NA Matching Grant 609.6 284.0 492.2 NA Twelfth FC 563.5 0.0 142.0 NA ULB Salary 206.7 394.5 230.9 NA Twenty Four Towns NA Matching Grant 500.0 NA 411.7 NA % to state total 82.0% 83.6% NA Twelfth FC 293.3 NA 78.8 NA % to state total 52.1% 55.5% NA ULB Salary 157.4 NA 132.5 NA % to state total 76.1% 57.4% NA Four Investment Program Towns Matching Grant 147.5 NA 141.3 NA % to state total 24.2% 28.7% NA Twelfth FC 75.6 NA 22.8 NA % to state total 13.4% 16.1% NA ULB Salary 55.7 NA 1.0 NA % to state total 27.0% 0.4% NA Note: Data prior to 2006-07 was not available NA – Not Available Source: UD&HD Budget Data for operation and maintenance in respect of the towns covered in survey was not available in most cases. Available details are as presented in Section 3.2 of Volume 3A Sector Reports. From the available data no definite trend of operation and maintenance can be established.

3.4.3 State and ULB Revenues State Transfer Mechanism UD&HD allots funds to ULBs based on approved budgets in respect of Plan and Non-Plan expenditure heads. Under Plan allotments money for roads, drains, e-governance, land acquisition, water supply, public welfare, administrative buildings, twelfth finance commission, low cost sanitation, fixed allowance to ULB‟s representatives, UIDSSMT, JNNURM, IHSDP, SJSRY, Housing Board rehabilitation and detailed project report preparation is provided to ULBs. Under Non-Plan allotments money for matching grants, twelfth finance commission and ULB salary is provided to ULBs. State Revenues Tax revenues, comprising of tax on income, property and capital activities and goods and services, contributed 69% of the total revenue receipts and 60% of the total receipts of the State in the financial year 2009-10. Non tax revenues contributed 27% of the total receipts and borrowings contributing 10% of total receipts for the financial year 2009-10.

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Summarized table of GoB financial performance is given in Section 3.2 of Volume 3A Sector Reports. ULB Revenue Sources At present there are no identified revenue sources for paying for specific urban services provided by ULBs. At present, following are the revenue sources available to meet the cost of all urban services and other non-revenue generating activities of ULBs. a) Holding Tax which includes – i) Holding Tax – 2.5%; ii) Water Tax – 2%; iii) Latrine Tax – 2%; Education Cess – 1.25% and Health Cess – 1.25%. b) Rental income from municipal properties; c) Mobile tower fees / charges; d) License fees; e) Fees and charges under municipal act and rules; and f) Others On an average of 24 towns, own income to total revenue comprised only 38% with balance 62% received from government as grants through UD&HD. Revenue expenditure on an average in 24 towns is very high at 331% of the own revenue income. This is quite high and implies that ULBs are dependent on GoB and other grants for meeting its operational expenses. Summary of revenue account for the year 2008-09 for 24 towns is given in Section 3.2 of Volume 3A Sector Reports. Multiple factors contribute to the inability of ULBs to raise their operational revenues. Even though enabling provisions are prevalent in the Municipal Act, the recommendations for introduction of new user charge and revision of existing tax rate or user charge have to be approved by the UD&HD under section 127(9) of BMA before the same can be implemented. Poor financial management is another reason. Collection efficiency is quite low – an average of 50% across 24 towns of Bihar. Collection efficiency of holding tax across 24 towns of Bihar is low at 51%. (Also refer Section 3.2 of Volume 3A Sector Reports.) The current activities and progress in mobilizing more revenue is shown in Table 3.17.

Table 3.17 Mobilizing More Revenue

What are What are the What is the current progress Why do ULBs have to the intended outputs of against the intended output? undertake the activities? MOU, Activities the activities? government order, law? Collection Improving collection Present collection efficiency is Implementation of the financial Improvement efficiency to 85 - 90% averaging around 50% and property tax reforms as part of demand. of JnNURM/ UIDSSMT/ 13th Finance Commission covenants Augment Introduce new user Proposals pending at UD&HD for Same as above own charge / Increase approval revenues existing tax rate GIS data Creation of property RFP has been invited under Same as above base database to facilitate SPUR for 21 ULBs in Bihar for coverage of all preparation of GIS base maps properties under Holding Tax Accounting Implementing double RFP has been invited under Same as above reforms entry accounting SPUR for listing and valuation of system assets as well as for implementation of double entry accounting system in 27 ULBs in Bihar

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3.5 Binding Constraints on Efficient and Equitable Service Delivery

3.5.1 Physical, Legal, Policy, Human Resource Constraints and Mitigation Measures Table 3.18 illustrate the binding constraints on efficient and equitable delivery mechanism and mitigation measures for achieving higher efficiency and econmy in service delivery

Table 3.18 Binding Constraints on Efficient and Equitable Delivery

Sub-sectors Binding Constraints Mitigation Measures Summary Descriptions Success Factors For Achieving Higher Efficiency And Economy In Service Delivery Urban Services - 1 Water Supply Physical Lack of investment Provide JNNURM grants, GoI or loan funds for water supply infrastructure Inadequate capital & O&M Provide budget to construct & maintain water supply budget infrastructure Lack of power supply Provide diesel power generators at water treatment plants & pump stations Lack of management, O&M Provide more staff, capacity building, technical staff training, introduce GIS,MIS Inadequate revenue to pay for Improve service, start charging for water, set tariffs water system maintenance, to initially cover O&M, introduce graded user water treatment chemicals, charges, for low income groups provide subsidy & diesel for power generators for lifeline water tariff pumps, WTP Obstacles to introduction of Meter consumers, improve accounting procedures, user pays for water provide software, training in accrual accounting 2 Sewerage & Drainage Inadequate water supply for Provide 135 lpcd water supply to population sewerage No Sewerage & Drainage Prepare Sewerage & Drainage Master Plan Master Plan Lack of investment Provide JNNURM, GoI or loan funds for sewerage infrastructure Inadequate capital & O&M Provide budget to construct & maintain sewerage budget and drainage infrastructure, including storm water pump stations and storm water drainage pipelines Intermittent power supply Provide diesel power generators at sewage treatment plants, sewage pump stations, storm water pump stations Lack of management, O&M Provide more staff, capacity building, training, staff introduce GIS,MIS Inadequate revenue Introduce graded user charges, for low income groups provide subsidy & lifeline sewerage tariff 3 Solid Waste Management (SWM) No SWM Master Plan SPUR prepare SWM Master Plan

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Sub-sectors Binding Constraints Mitigation Measures Summary Descriptions Success Factors For Achieving Higher Efficiency And Economy In Service Delivery Lack of investment Provide JNNURM, GoI or loan funds for SWM infrastructure Inadequate SWM capital & Provide budget to construct & maintain SWM O&M budget infrastructure including landfill Lack management, O&M staff Train UDL staff / privatise SW collection, disposal & management Inadequate revenue Improve service, charge for SWM collection and disposal, set SW tariff to cover costs Urban Services - BMA 2007 amendments 64 Amendments to BMA 2007 identified by SPUR- Legal Framework required to be approved by GOB Cabinet No Town/Country Planning Draft Town& Country Planning Act Act No Ombudsman Act Draft Ombudsman Act Urban Services - No binding constraints No actions required Institutional Urban Services – State level- ineffective State level -capacity building and strengthening Capacity Building Directorate for Local Municipal Directorate Municipal Administration- supervise Bodies ULBs No Town & Country Planning Create Town & Country Planning department, Department provide planning capacity building Capacity building at ULBs Provide capacity building in management, accrual required , accounting accounting, ICT procedures inadequate GIS ,MIS required Introduce GIS, MIS systems for more effective ULB management. Provide capacity building of ULB staff in GIS, MIS Management, engineering and Training of ULB staff in management, public health operation skills at ULBs engineering and WTP,STP and landfill operation deficient required Counterpart funding for urban State provides adequate counterpart funding for infrastructure projects infrastructure projects Urban Services - Insufficient staffing at State Proposed Directorate for Municipal Administration Human Resources level for supervision of Local (SPUR) Municipal Bodies Sanctioned staff not appointed UDHD approves hiring staff to fill ULB sanctioned to ULBs posts Insufficient staffing ULBs for GOB to improve staffing at ULB level based on urban services management SPUR recommendations

3.5.2 Replicability of Success Factors Lessons learnt from previous funded projects in India include the need for ownership of and commitment to projects by ULBs; the need for a public awareness campaign concerning the project ; the need for water supply service delivery to be improved before water tariffs are increased, and for those tariff increases to be clearly explained to stakeholders and consumers; the need for coordination with other State departments; the

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need to develop a professional cadre of ULB managerial, financial and technical staff; the need for O&M to be included in contractors‟ scope of work in the early years of project operation in parallel with strengthening of ULB technical and managerial capability and the need for confidence building amongst local contractors in ULBs ability to pay claims and improved timeliness of claim payments. Concerning the need for ownership of projects by ULBs, ULBs including mayors, councillors, ward and area sabhas members should be fully involved at the early stage of project formulation and informed about approval of contracts. A public awareness campaign concerning forthcoming projects has proved to be beneficial in the past elsewhere in India in obtaining public support and buy in (eg MP urban project). Knowledge of and proper record of the number of properties, house connections and un- registered properties in an ULB is a necessity before introduction of user charges- the SPUR initiatives in introduction of GIS and improving accounting and managerial systems in 28 Bihar towns will assist greatly in this regard. As part of improvement of service delivery of water supply services, pipeline leakage and UfW reduction should be assigned high priority - in many Indian water utilities UfW is at an unacceptably high level.20 Once the water supply system has been improved a survey and assessment of the degree of water leakage would be an essential first step in assessing water (and consequent revenue) losses. There is a need for coordination between different State Government departments - National and State government programs often follow their own schedule and priorities and lack coordination with other funded projects in similar disciplines. Extensive capacity building programs are required to be run in parallel with infrastructure development projects- there is a need to develop a professional cadre of ULB managerial, financial and technical staff capable of operating and maintaining completed infrastructure projects. Poor O&M of completed projects in the past has led to operations increasingly being included in contractors‟ responsibilities with DBO modality contracts - improved O& M will lead to improved service delivery which in turn will improve revenue and ensure water supply system sustainability. Finally-confidence building amongst local contractors about ULB‟s (implementing agencies) ability to fund and pay for projects should be raised by the holding of workshops and more importantly by prompt and regular authorisation and then payment of contractor‟s claims. Further details are provided in Section 3.3 of Volume 3A Sector Reports.

3.5.3 Measures for Systemic Adoption There are 32 towns in Bihar with a population greater than 75,000 persons. There are 113 towns in Bihar with a population between 75,000 and 10,000 persons. There are 4 towns in Bihar with a population less than 10,000 persons. It is proposed that systemic improvement measurements be applied differently to these 3 categories – or similar categories - for water supply, sewerage and drainage and solid waste management. Private sector involvement in urban infrastructure development should be facilitated by measures such as Local Development Investment Funds (LDIF). The measures shown in Table 3.19 are proposed for systemic improvement of urban service delivery in Bihar.

20 For example, Bangalore 45%, Kolkata 35% , Nagpur 52% and Amritsar 57%(source 2007 ADB/MOUD Benchmarking and Data Book of Water Utilities in India)

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Table 3.19 Measures Proposed For Systemic Improvement Of Urban Service Delivery

S.no. Measures Proposed for Systemic Improvement Water Supply 1 Investment to be sought for implementing water supply projects to provide 135 lpcd from ground and surface water sources in 32 towns over 75,000 population- – to be provided by the private sector21 2 Investment for water supply projects to provide 135 lpcd from ground and surface water sources in 113 towns between 10,000-75,000 population – to be provided GOI, JNNURM or donor funding 3 No water supply projects in 4 towns less than 10,000 population 4 Assistance from GOI or donor agencies for setting-up a Local Development Investment Fund (LDIF) for investing in water supply projects in towns >75,000 population . Intention is to leverage public financing through public private partnerships (PPP) to finance, operate and maintain water supply infrastructures Sewerage & Drainage 1 Investment to be sought from private sector on DBO basis with 25 year contracts in 32 towns over 75,000 population for implementing sewerage and drainage projects 2 Investment for sewerage and drainage projects in 19 towns between 50,000-75,000 population – to be provided by GOI, JNNURM or donor funding 3 No sewerage projects in 98 towns less than 50,000 population –rely on septic tanks and pit latrines. Drainage needs evaluated on a case by case basis for smaller towns 4 Assistance from GOI or donor agencies for setting-up a Local Development Investment Fund (LDIF) for investing in sewerage and drainage projects in towns >75,000 population . Intention is to leverage public financing through public private partnerships (PPP) to finance, operate and maintain sewerage and drainage infrastructures Solid Waste Management 1 Solid waste management projects to be entirely outsourced to the private sector on DBO basis with 25 year contracts in 32 towns over 75,000 population 2 Solid waste management projects to be partly outsourced to the private sector and NGOs for collection and landfill operation in 113 towns between 10,000-75,000 population. Landfill construction costs to be provided by GOI, JNNURM or donor funding. Plant costs provided by private sector or NGOs 3 No solid waste management projects in 4 towns less than 10,000 population Roads and Transport 1 Systemic improvements in road construction proposed using the measures currently in place ie funding from State & Central Government sources Slum Upgradation 1 Systemic improvements proposed using the measures currently in place i.e funding from SPUR, BSUP, IHSDP,SJSRY and RAY sources

21 In Rajkot city with a population of 1.1 million the private sector is involved in pump operations, mains and lines maintenance, sluice valve operations and leak repair through service contracts. This is a good model for introduction in Bihar to address the low water coverage rate in the State. It should be extended to 25 year DBO contracts for Water and Sewage Treatment Plant construction and operation for cities over a certain size eg 75,000 population.

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4 National and State Policies

This section describes the salient features of the National and State polices on urban service delivery.

4.1 Government Plans, Policies and Guidelines

4.1.1 National Policies on Service Delivery Water Supply

Table 4.1 Water Supply Policies From Central Government

S.no. Government Body Plan/Goal Policy Detail Millennium Declaration of the United Nations, to 94% urban households access drinking water by 1 Millennium Dev Goal which Govt. of India is a 2015 signatory 100% urban water supply by 2012; JNNURM and UIDSSMT Programmes - top priority water supply needs towns and towns, esp those contaminated source, drought prone, water shortage, water Planning Commission, 11th 5 Year Plan 07- 2 quality problem; metering to be mandatory; use GoI 12 MIS data bases; penalties for leakage and wastage; use of low volume flush toilets, waste not taps; rain water harvesting; artificial recharge of ground water; water quality testing laboratories MOUD, GoI Sector policy prerogative State governments; Urban Water Supply Ministry Rural Development - rural water supply; 3 & Sanitation Ministry Housing - urban water supply. Central Programme Ministries have advisory capacity only; MOUD, GoI WS coverage 100%; Per Capita Supply 135 lpcd; NRW water 15%; metering – 10%; continuity of Handbook Service supply 24 hr; 4 Level Benchmarking, June 2010. Efficiency redress customer complaints 80%; quality of water supplied 100%; cost recovery – 100%; revenue collection efficiency 90% Manual on Water Sets parameters for water supply design , 5 MOUD, CPHEEO, GoI Supply & Treatment, treatment, storage and distribution May 1999

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Sewerage

Table 4.2 Sewerage Policies From Central Government

S.no. Government Body Plan/Goal Policy Detail 1 Millennium Declaration of Millennium Dev Goal Sanitation Coverage: Halve, by 2015, the the United Nations, to proportion of people without sustainable access which Govt. of India is a to safe drinking water and basic sanitation; % signatory households without sanitation by 2015 94% ; urban households access drinking water by 2015- 12.14% for urban area22 Coverage of urban sanitation by end of plan Planning Commission, Eleventh Five Year 2 period (2012) Coverage of Population100%; GoI Plan (2007-2012)23 sewerage facility70% ; low cost sanitation 30% 3 MOUD, GoI National Urban Allow open defecation 0%; proportion of total Sanitation Policy, human excreta generation that is safely 2008 collected 100%; proportion of total black waste water generation that is treated and safely disposed off 100%; proportion of total grey waste water generation that is treated and safely disposed off 100%; proportion of total storm- water and drainage that is efficiently and safely managed 100%; preparation of State Urban Sanitation Strategy by the respective states- within two years from 2008 MOUD, GoI Handbook Of Service Targets: Coverage of toilets 100%; coverage of Level Benchmarking waste water network services 100%; collection efficiency of waste water network100%; adequacy of waste water treatment capacity 20%; quality of waste water treatment 100%; extent of reuse and recycling of waste water 80%; extent of cost recovery in waste water management 90%; efficiency in redressing customer complaints100%; efficiency in collection of sewerage related charges 90% MOUD Manual on Technical Guideline Wastewater collection efficiency 80% of the Sewerage and Sewage by Ministry of Urban supplied water in general Treatment development department

22 Ref: MILLENNIUM DEVELOPMENT GOALS, INDIA COUNTRY REPORT 2009, Mid-Term Statistical Appraisal Central Statistical Organization, Ministry of Statistics and Programme Implementation, Government of India . The % with sanitation facility is linearly interpolated from this figure for 2010-11 23 Government of India, Planning Commission, Eleventh Five-Year Plan (2007-2012), Rural Drinking Water and Sanitation in the Eleventh Plan period – Excerpts

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Table 4.3 Solid Waste Management Policies From Central Government

S.no. Government Body Plan/Goal Policy Detail Ministry of Environment Municipal Solid Applicable to every municipal authority for and Forests, GoI Wastes (Management collection, segregation, storage, transportation, and Handling) Rules, processing and disposal of municipal solids. 2000. Schedule-I: Relates to implementation Schedule; Schedule-II: Specifications relating to collection, segregation, storage, transportation, processing and disposal of municipal solid waste (MSW); Schedule-III : Specifications for landfilling indicating; site selection, facilities at the site, specifications for landfilling, Pollution prevention, water quality monitoring, ambient air quality monitoring, Plantation at landfill site, closure of landfill site and post care; andSchedule-IV : 1 Indicate waste processing options including; standards for composting, treated.

Responsibilities of State authorities to implement the rules (i) Municipal authority responsible for implementation of rules, and infrastructure development (ii) Secretary- Department of Urban Development overall responsibility for the enforcement (iii) District Magistrate overall responsibility for the enforcement (iv) State Pollution Control Board monitors compliance for ground water, ambient air, leachate quality , compost quality, incineration standards (CPHEEO) Manual Design rules for management including collection, 2 MOUD, GOI Municipal Solid Waste solid waste landfills and leachate treatment and Management 2000, disposal

Drainage

Table 4.4 Drainage Policies From Central Government

S.no. Government Body Plan/Goal Policy Detail 1 MOUD, GoI Integration of JNNURM - sets out policies for integration of drainage with urban urban drainage with city development plan planning 2 MOUD, GoI Handbook Service Targets -coverage of storm water drainage Level Benchmarking, network 90%; Incidence of water logging / Drainage. flooding 0%

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Urban Transport

Table 4.5 Urban Transport Policies From Central Government

S.no. Government Body Plan/Goal Policy Detail 1 Ministry of Road Policies for Road Roads wing - :Planning, development and Transport & Transport, National maintenance of National Highways , technical and Highways,GOI Highways and financial support to State Governments for state Transport Research roads and the roads of inter-state connectivity and economic importance. Evolves standard specifications for roads and bridges in the country. Serves as a repository of technical knowledge on roads and bridges. 2 MOUD, GoI Service Level Public transport facilities; Pedestrian Benchmarks for infrastructure facilities; Non Motorized Transport Urban (NMT)facilities; Level of usage of Intelligent Transport Transport System (ITS) facilities; Travel speed (Motorized and Mass Transit); Availability of parking spaces; Road safety; Pollution levels; Integrated land use transport system; Financial sustainability of public transport; 3 Public Works Department IRC: 86-1983: Definition of arterial and sub arterial roads: to be Geometric design coordinated with existing and proposed through standards for urban bypass roads ; need for arterial street system; roads Sub Arterial roads: need for access to adjoining areas

Slum Upgradation Slum Improvement Policy, Plans and Programmes The National Slum Policy 2001 has remained a mere draft. The draft policy however, recognises that „slums are an integral part of urban areas and contribute to their economy; and endorses „an upgrading and improvement approach in all slums, rather than slum clearance, except under strict guidelines‟. In Bihar, a State Slum Policy within the framework of the National Slum Policy has been prepared under the SPUR programme, and is pending approval of the state government. In 2010, the Government of India has announced a new scheme called Rajiv Awas Yojana (RAY) for the slum dwellers and the urban poor. The Government‟s effort would be to create a Slum free India in 5 years through the implementation of RAY. The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) is implementing various Plans and Policies to address the concerns of housing, infrastructure, slum development and basic amenities with special emphasis to urban poor. Some of the programmes of the MoHUPA are: • Jawharlal Nehru National Urban Renewal Mission (JNNURM)

– Basic Services to Urban Poor (BSUP); and

– Integrated Housing & Slum Development Programme (IHSDP)

• Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

• Rajiv Awas Yojana for the slum dwellers and the urban poor

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Table 4.6 Urban Slum Policies From Central Government - On-Going and Planned Initiatives For Slum Improvement In Bihar

Programme / Plan Brief Description Towns Covered Implementing Agency Basic Services for BSUP is a mandatory urban poverty reform for all Patna, Danapur, Bodh Housing and Urban Poor local bodies supported under JNNURM. Its goal is Gaya, , Urban (BUSP) to; ―Provide basic services (including water supply Development and sanitation) to all poor including security of Corporation tenure, and improved housing at affordable prices Ltd. (HUDCO) and ensure delivery of social services of education, health and social security to poor people‖. Integrated Housing The objective of the IHSDP scheme is to strive for Kanti, Aurangabad, Hindustan for Slum holistic slum development with a healthy and Narkatiaganj, Motipur, Prefab Ltd Development enabling urban environment by providing Rosera, Sheikhpura, (HPL) Programme adequate shelter and basic infrastructure facilities Bhagalpur, (IHSDP Scheme) to the slum dwellers of the identified urban areas Kishanganj, Bahadurganj, Purnea, Biharsharif, Begusarai, Ara, Madhepura, Jogbani, Supaul, Munger, Araria, Madhepura Phase II, Saharsa Swarna Jayanti The revamped SJSRY has five major All ULBs ULBs Shahari Rozgar components, namely- Yojana (SJSRY) (i). Urban Self Employment Programme (USEP) (ii). Urban Women Self-help Programme (UWSP) (iii). Skill Training for Employment Promotion amongst Urban Poor (STEP-UP) (iv). Urban Wage Employment Programme (UWEP) (v). Urban Community Development Network (UCDN) RAY (Rajiv Awas RAY aims at providing Central support to States Patna Urban ULBs Yojana) that are willing to assign property rights to slum Agglomeration dwellers. It envisages that each State would (including Patna, prepare a State Slum-free Plan of Action (POA). Danapur, Khagual and The preparation of legislation for assignment of Phulwarishariff), Gaya, property rights to slum dwellers would be the first Bodh Gaya, Bhagalpur step for State POA. and Muzzafarpur towns under phase I Status of preparatory steps for RAY: Complete list of all slums have been prepared with locations marked on the town map; these have been endorsed by Empowered Standing Committee of respective ULBs. Initial slum profile survey has been done covering the extent and type of slums in all ULBs As next activity detailed slum level surveys are being initiated under SPUR. It includes: mapping of individual dwelling units with socio-economic data (as per USHA formats) along with

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Programme / Plan Brief Description Towns Covered Implementing Agency infrastructure details of the slums. Support Some of the key activities and initiatives under Patna, Bodhgaya, UD&HD / Programme for Social Development, Livelihoods and Urban Muzaffarpur, BUDA Urban Reforms in Poverty Alleviation theme are: Sitamarhi, Bettiah, Bihar (SPUR) Draft State Slum Policy prepared Motihari, Darbhanga Gender mainstreaming guidelines developed Bhagalpur, Munger, Jamalpur, Purnia, Gender audit completed in selected ULBs Saharsa, Kishanganj, All slums in project ULBs identified, located on Katihar, Gaya, Dehri, ward maps, profiling complete – lists endorsed by Sasaram, ULBs Aurangabad, Nawada, Bihar Municipal Ward Committee (Community Danapur, Khagual, Participation) Rules reviewed Phulwarisharif Alignment of SPUR with BSUP and RAY Hajipur, Biharsharif, Slum surveys initiated as per RAY/USHA , Arrah, guidelines Begusarai, Siwan

4.1.2 State Policies on Service Delivery

Table 4.7 Water Supply Policies

S.no. State Body Act/Plan/Goal Policy Detail Government of Bihar Municipal Clauses on Municipal functions in relation to water-supply; Bihar Act, 2007 planning, construction, operation, maintenance and management of waterworks; tube-wells and wells; water-supply mains and 1 pipes; water meters and recovery of charges; offences in relation to water-supply; owner and occupier jointly and severally liable Order of Priorities of water allocation - 1 Drinking water for human beings; 2 Drinking water for Livestock ; 3 Other domestic, commercial and municipal water uses ; 4 Agriculture; 5 Power generation ; 6 Environmental and ecological ; 7 Industrial Non- consumptive uses; 8 Others (Lowest priority) Drinking Water Supply- State Government to ensure provision drinking water to every citizen; rural areas service level 70 lpcd.; Task force to manage arsenic, fluoride and excess iron in drinking water; Reduce, Recycle, Reuse water; provide funds for drinking water in villages, Tolas and towns; institutional Bihar State strengthening The capacities of PRIs and Urban bodies will be Government of Water and 2 enhanced in a phased manner so that these institutions can Bihar Sanitation regulate and distribute the drinking water; humans and livestock policy, 2010 have first charge on water; in irrigation projects top priority to drinking water. Water Pricing - water rates to convey scarcity of water, to motivate economical water use; poor to receive a minimum water quantity; tariffs to progressively move to full recover O&M cost;; improve O&M efficiency; 3-4stepped water tariffs to be charged; differing stepped water rates for agricultural, industrial, commercial, and municipal purposes; water metering to be applied; environmental impact studies will be undertaken; inventory of ecological systems to be prepared

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Table 4.8 Sewerage Policies

S.no. State Body Act/Plan/Goal Policy Detail Government Bihar Municipal Quality of service for sewerage and drainage (construct and maintain of Bihar Act, 2007 drains and sewers, and provide a safe and sufficient outfall, in or outside the municipal area for effectual drainage and proper discharge 1 of storm-water and sewage of the municipal area in such manner as may not cause any nuisance, whether by flooding any part of the municipal area, or of the areas surrounding the outfall, or in any other way) Bihar State Policy on A program to design and construct sewage treatment plants will be Water and Sewage implemented for all urban and high-priority rural areas in collaboration Sanitation Treatment with local bodies. Treated effluent disposal will conform to established 2 Mission Plant health standards. The standard of treatment will be determined by the (BSWSM) construction beneficial re-use requirements of the wastewater. Standards for the use of waste water in agriculture will be prescribed.

Table 4.9 Solid Waste Management Policies

S.no. Government Plan/Goal Policy Detail Body 1 Government of UD&HD/ SPUR 100% collection of segregated solid waste at source from household; Bihar draft strategy transfer of reusable and recyclable waste to depot for reuse; transfer for solid waste of biodegradable waste to compost plant for composting; encourage sale of waste bio fertilizer; establish sanitary landfills at towns and at regional level; and disposal of rejects from compost plant and inert materials from recyclable waste to the sanitary landfill site

Table 4.10 Drainage Policies

S.no. Government Plan/Goal Policy Detail Body 1 Government of Bihar Municipal Section 193 BMA…construct and maintain drains—provide safe and Bihar Act, 2007 sufficient outfall… Section 197 .Chief Municipal Officer (CMO).carry any drain..through, across, under any street… Section 198 for effectual drainage… the CMO.. require 1 drain for sewage ..1 for rain water… Section 200…may permit owners..discharge foul water..to municipal drain Section 201…premises not to be erected without drains Section 207…building plans to conform to drainage and sanitation rules.. Section 208 …maintain drawings of drains.. Section 215…no person shall obstruct etc…flow of drains..

Table 4.11 Urban Transport Policies

S.no. Government Plan/Goal Policy Detail Body 1 Government of Bihar Municipal Section 231 BMA…surface transport systems definitions… Section Bihar Act, 2007 232 ..vesting of streets in Municipality… Section 233 function of Municipality to develop, maintain, control streets … Section 234…power to make new public street.. Section 235.. minimum width of streets…. Section 237, 238...permanent and temporary closure of streets.. Section 241…implement traffic engineering schemes.. Section 242.. Municipality authorised to erect signs, street furniture. bus stops…

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5 Bihar Urban Sector Road Map - Cost and Implementation

5.1 Physical Investments in Each Sub-Sector Summary of physical investment cost required for roadmap implementation is given in Tables 5.1 and 5.2 in million Indian rupees and United States dollar. Basis adopted is as follows: Water: Based on the investment cost estimated for Bhagalpur water supply project. Unit base cost per population was applied to the 2010 projected population of all the other 145 towns of Bihar. In respect of towns with population between 10,000 and 75,000 50% of the unit base cost was considered. No investment has been considered for towns with population less than 10,000. Sewerage: Based on the investment cost estimated for Muzaffarpur sewerage project. Unit base cost per population was applied to the 2010 projected population of all the other 145 towns of Bihar. No investment has been considered for towns with population less than 50,000. Drainage: Based on the investment cost estimated for Darbhanga drainage project. Unit base cost per population was applied to the 2010 projected population of all the other 145 towns of Bihar. Solid Waste: Based on the investment cost estimated for Gaya solid waste project. Unit base cost per population was applied to the 2010 projected population of all the other 145 towns of Bihar. Roads: Length of road has been derived by considering ten percent of the town area to be covered by road divided by the average width of the road taken as 7 meters. Further, 30% of this road length has been assumed to be new roads, 50% of road length assumed for major renovation / widening and for balance 20% of road length no further investment considered. Unit cost for new roads assumed at Rs. 20,000 per meter (width 7 m) and for widening major renovation at Rs. 10,000 per meter. In respect of the four investment program towns the physical investment cost as estimated by the PPTA consultant has been considered. In respect of Patna, Bodhgaya (covered under JNNURM) and other towns (UIDSSMT, IHSDP) in which centrally sponsored schemes are planned / ongoing the cost of such schemes have been considered.

Table 5.1 Physical Investment Cost - Roadmap Implementation (Rs. Million)

24 Towns 4 Towns Sector Total State Amount % to total Amount % to total Water Supply 74,309 50,997 68.6% 21,967 29.6% Sewerage 57,228 43,089 75.3% 10,044 17.6% Drainage 59,577 43,449 72.9% 11,820 19.8% Solid Waste 16,464 8,036 48.8% 2,670 16.2% Roads 43,938 13,786 31.4% 2,827 6.4% Total 251,515 159,357 63.4% 49,328 19.6% Note: Base costs only - does not include contingencies

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Table 5.2 Physical Investment Cost - Roadmap Implementation ($ Million)

Total 24 Towns 4 Towns Sector State Amount % to total Amount % to total Water Supply 1,651 1,133 68.6% 488 29.6% Sewerage 1,272 958 75.3% 223 17.6% Drainage 1,324 966 72.9% 263 19.8% Solid Waste 366 179 48.8% 59 16.2% Roads 976 306 31.4% 63 6.4% Total 5,589 3,541 63.4% 1,096 19.6% Note: 1) Base costs only - does not include contingencies, 2) 1 U S Dollar =45

Details of town wise physical investment requirement is available in Section 4 of Volume 3A Sector Reports.

5.2 Non-Physical Investments – All Sub-Sectors

Table 5.3 Non-Physical Investments for all Sub-Sectors (Rs Million)24

4 Towns25 24 Towns26 149 Towns27 Institutional Strengthening and ICT upgrades , 506.2 2085.7 2541.4 MIS, GIS, Accrual Accounting at each ULB28 Staff Deficiency per annum 182.4 1051.2 2878.6 Training costs per annum 4.12 13.53 18.9 BUIDCO training Costs- one off 10.3 0 0 Study Tours-one off 25 0 0 Totals 728.02 3150.43 5438.9

Further detail of the breakdown of these costs and how they were calculated is provided in Section 4 of Volume 3A Sector Reports.

5.3 Target Population Coverage Figures 5.1 to 5.5 presents the sub-sector wise cumulative target population coverage between 2010-2020 covered under ADB and other national and state funded schemes.

24 The institutional strengthening inputs are directed at each municipal institution as a whole and costs given in Table 6.3 are across all sub sectors. 25 Sub sectors included in 4 towns are water supply, sewerage, SWM and drainage 26 Sub sectors included in 24 towns are water supply, sewerage, SWM, drainage, urban roads and slum upgrading 27 Sub sectors included in 14 9 towns are water supply, sewerage, SWM, drainage, urban roads and slum upgrading 28 The SPUR Program includes institutional strengthening and other interventions in 28 towns. An amount of 42 M Rs. per city has been assumed to be available from the SPUR budget for institutional strengthening, MIS, GIS and accounting upgrade which will go towards the cost of institutional strengthening shown in Table 6.3.The contributions of the SPUR investments are not included in the above totals ie will reduce the amounts.

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Figure 5.1 Target Population Coverage Water Supply

Population Water Supply Population Coverage 2010-2020 35,00,000 (100%) Cumulative 30,00,000 (86%) population ADB Funded 25,00,000 (71%) covered ADB +State funded 20,00,000 (57%) Central Govt sponsored WS Central Govt 15,00,000 (43%) schemes Funded

10,00,000 (29%) Cumulative

5,00,000 (14%) ADB Darbhanga WS ADB Bhagalpur WS - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 5.2 Target Population Coverage Sewerage

Population Sewerage Population Coverage 2010-2020

40,00,000 More investment and population covered by (100%) Cumulative sewerage projects than water supply 35,00,000 population covered projects by 2020-- sewerage "catching up". (87%) ADB +State funded ADB Funded 30,00,000 (75%) Central Govt Funded Cumulative 25,00,000 (67%) Central Govt sponsored sew 20,00,000 schemes Hajipur, Bhagalpur (50%) Munger, Patna, Buxar, Bodhgaya, 15,00,000 (38%) Begusarai, 10,00,000 (25%) 5,00,000 ADB Darbhanga Sewge (13%) ADB Muzaffurpur Sewerage 0 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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Figure 5.3 Target Population Coverage - Solid Waste Management

Population Solid Waste Schemes - Population Coverage 2010-2020

25,00,000

(100%) ADB Funded 20,00,000 Central Govt Funded

(80%) Central Govt sponsored 15,00,000 Solid Waste schemes (60%) ADB NIL funding Patna, Khagaul, 10,00,000 SWM schemes Phulwarisharif, Danapur, (40%) Arrah 5,00,000

(20%) 0 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 5.4 Target Population Coverage- Drainage

Population Drainage Population Coverage 2010-2020 10,00,000 (100%) 9,00,000 (90%) 8,00,000 (80%) Central Govt sponsored ADB Funded 7,00,000 (70%) drainage schemes Central Govt Funded 6,00,000 (60%) Khagaul, Danapur, Patna 5,00,000 (50%) ( Kankarbag), Muzaffurpur, 4,00,000 (40%) Phulwarisharif ADB NIL funding 3,00,000 (30%) Drainage 2,00,000 (20%) schemes 1,00,000 (10%) 0 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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Figure 5.5 Target Population Coverage- Urban Roads

Population Urban Roads Population Coverage 2010-2020 4,00,000

3,50,000 (100%) Central Govt sponsored 3,00,000 (87%) ADB Funded Road schemes Central Govt Funded 2,50,000 (75%) Naktiarganj, Chakia, Murliganj, Lalganj, 2,00,000 (63%) Rosera, Barbigha, 1,50,000 (50%) Fatwah, , (38%) 1,00,000 ADB NIL road (25%) 50,000 funding

(13%) 0 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020

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6 Sources of Financing

This Section lists the ongoing projects under Central Schemes and State Plan. It provides the source of financing Roadmap implementation.

6.1 Details of Investment Planned / Ongoing- Centrally Sponsored Projects

Table 6.1 Water Supply Projects

Town Name Brief Cost (Rs. Source of Outputs IA Status of the Description Million) finance Works / of Project Remarks and Scope Muzaffarpur Water Supply 987.2 UIDSSMT OHSRs 10 Nos., 29 BUIDCO Work yet to Improvement Tubewells, 224 kms commence..amo in town of pipe network, unt released to GLSR 10 Nos., SLNA Rs. HSCs - 25900 Nos. 493.613 million Patna Water Supply 4269.8 JnNURM WTP - 220 Mld, 66 IL & FS Work yet to Improvement Nos. new and 14 commence. in town rehab Tube wells, Rs.3202.35 raw water intake - Million released 380 mld, OHRS - 72 to SLNA new and 15 rehab Khagaul Water Supply 131.5 JnNURM Tubewells - 10, BUIDCO Work yet to Improvement OHSRs and GLSRs commence. in town - 3, Pump Stn - 3, Rs.100.658 74.95 kms of Million released pipeline to SLNA Phulwarisharif Water Supply 247 JnNURM Tubewells - 8, BUIDCO Work yet to Improvement OHSRs and GLSRs commence. in town - 6, Pump Stn - 3, Rs.197.621 110.16 kms of Million released pipeline to SLNA Danapur Water Supply 689.6 UIDSSMT Tubewells - 16, BUIDCO Work yet to Nizamat Improvement OHSRs and GLSRs commence. in town - 9, 234 kms of Rs.517.234 pipeline Million released to SLNA Bodhgaya Water Supply 335.5 JnNURM Tubewells - 9, BUIDCO Work yet to Improvement CWRs - 4, 74.2 commence. in town kms of pipeline Rs.251.679 Million released to SLNA Source: UD&HD, GoB

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Table 6.2 Sewerage Projects

Town Name Brief Description Cost (Rs Source of Outcomes of Project and Million finance Scope (Financing Plan) STP - 22 Mld, sewer N/W 177.6 kms, IPS Hajipur Sewerage Scheme 1136.2 UIDSSMT 11 nos Twelfth finance 61.35 kms of drains project cost under Bhagalpur Sewerage Scheme 690.0 commission revision STP - 28 Mld, sewer N/W 141.9 kms, IPS Munger Sewerage Scheme 1878.9 UIDSSMT 10 nos Patna Sewerage Scheme 1500.0 NGRBA STP - 16 Mld, sewer N/W 101.8 kms, IPS Buxar Sewerage Scheme 749.5 NGRBA 10 nos STP - 10 Mld, sewer N/W 58.3 kms, IPS Bodhgaya Sewerage Scheme 959.4 JnNURM 7 nos STP - 17 Mld, sewer N/W 109.5 kms, IPS Begusarai Sewerage Scheme 653.9 NGRBA 7 nos STP - 2.5 Mld, sewer N/W 17 kms, IPS 5 Rajgir Sewerage Scheme 158.0 NGRBA nos Source: UD&HD, GoB

Table 6.3 Solid Waste Management Projects

Town Name Brief Cost Source of Outcomes IA Status of the Works / Description (Rs. finance Remarks of Project Million) (Financing and Scope Plan) Patna Solid waste 396.5 JnNURM Compost plant 650 PMC Work yet to commence. project tons per day Rs. 230.962 Million capacity released to PMC Khagaul Solid waste 115.5 JnNURM Compost plant 50 BUIDCO Work yet to commence. project tons per day Rs. 86.686 Million capacity released to PMC Phulwarisharif Solid waste 115.5 JnNURM Compost plant 50 BUIDCO Work yet to commence. project tons per day Rs. 86.686 Million capacity released to PMC Danapur Solid waste 115.5 JnNURM Compost plant 50 BUIDCO Work yet to commence. Nizamat project tons per day Rs. 86.686 Million capacity released to PMC Arrah Solid waste 98.4 UIDSSMT Compost plant 50 BUIDCO Work yet to commence. project tons per day Rs. 49.5 Million capacity released to SLNA Source: UD&HD, GoB

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Table 6.4 Drainage Projects

Town Name Brief Description Cost (Rs Source of Outcomes of Project and Million finance Scope (Financing Plan) Khagaul Drainage scheme 837.7 UIDSSMT 100 kms of drains incl outfall + 5 PS Danapur Drainage scheme 492.1 UIDSSMT 56 kms of drains incl outfall + 3 PS Patna (Kankarbag) Drainage scheme 475.9 UIDSSMT 11.7 kms of drains incl outfall + 2 PS 125 kms of drains, outfall 39 kms+ 106 Muzaffarpur Drainage scheme 904.6 UIDSSMT culverts Phulwarisharif Drainage scheme 1055.6 UIDSSMT 125 kms of drains incl outfall + 3 PS

Source: UD&HD, GoB

Table 6.5 Road Projects

Town Name Brief Cost Source of Outcomes / Status / Remarks IA Description of (Rs. finance Project and Million) (Financing Scope Plan) Naktiarganj Road Scheme 471.3 UIDSSMT Work stayed by Hon'ble Patna Nagar High Court. Funds released Rs. Palika 246.592 Million Chakia Road Scheme 64.472 UIDSSMT 96 schemes completed. Funds BUIDCO released Rs. 66.177 million Murliganj Road Scheme 114.4 UIDSSMT Funds released - Rs. 59.862 BUIDCO million Lalganj Road Scheme 126.3 UIDSSMT Report awaited…Funds released BUIDCO Rs. 126.3 million Rosera Road Scheme 255.52 UIDSSMT 44 schemes completed. Funds BUIDCO released Rs. 152.763 million Barbigha Road Scheme 126.72 UIDSSMT 68 schemes completed. Funds BUIDCO released 81.010 million Fatwah Road Scheme 75.9 UIDSSMT Funds released Rs.39.758 million BUIDCO Bakhtiarpur Road Scheme 48.296 UIDSSMT Funds transferred Rs. 26.13 million BUIDCO Road Scheme 108.8 UIDSSMT Funds released Rs. 656.032 million BUIDCO

Source: UD&HD, GoB

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Table 6.6 Slum Infrastructure and Housing Projects

Town Name Brief Description of Cost (Rs Source of finance Outcomes IA Project and Scope Million (Financing Plan) Construction of dwelling Work not yet Naktiarganj units - poor 38.4 IHSDP commenced HPFL Construction of dwelling construction in 111 in Supaul units - poor 68.8 IHSDP progress HPFL Construction of dwelling DPR is being sent to Araria units - poor 212.6 IHSDP HUPA HPFL Construction of dwelling construction in 50 in Jogbani units - poor 117.5 IHSDP progress HPFL Construction of dwelling Kishanganj units - poor 45.0 IHSDP WIP in 117 units HPFL Construction of dwelling construction in 195 in Bahadurganj units - poor 32.5 IHSDP progress HPFL Construction of dwelling construction in 574 in Purnea units - poor 110.0 IHSDP progress HPFL Construction of dwelling Work not yet Madhepura units - poor 333.2 IHSDP commenced HPFL Construction of dwelling Work not yet Saharsa units - poor 193.3 IHSDP commenced HPFL Construction of dwelling Motipur units - poor 26.8 IHSDP WIP in 185 units HPFL Construction of dwelling Kanti units - poor 15.1 IHSDP WIP in 59 units HPFL Construction of dwelling Work not yet Rosera units - poor 143.2 IHSDP commenced HPFL Construction of dwelling construction in 442 in Begusarai units - poor 205.9 IHSDP progress HPFL Construction of dwelling Bhagalpur units - poor 3.6 IHSDP WIP in 238 units HPFL Construction of dwelling Munger units - poor 203.2 IHSDP DPR being sent by ULB HPFL Construction of dwelling construction in 135 in Sheikhpura units - poor 11.7 IHSDP progress HPFL Construction of dwelling construction in 358 in Biharsharif units - poor 212.3 IHSDP progress HPFL Construction of dwelling Patna units - poor 6259.5 BSUP HUDCO Construction of dwelling construction in 64 in Khagaul units - poor 17.7 BSUP progress HUDCO Construction of dwelling construction in 208 in Phulwarisharif units - poor 89.4 BSUP progress HUDCO Danapur Construction of dwelling Nizamat units - poor 156.0 BSUP HUDCO

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Town Name Brief Description of Cost (Rs Source of finance Outcomes IA Project and Scope Million (Financing Plan) Construction of dwelling construction in 316 in Ara units - poor 292.6 IHSDP progress HPFL Construction of dwelling construction in 160 in Aurangabad units - poor 20.0 IHSDP progress HPFL Construction of dwelling Construction in 288 in Patna units - poor 497.2 BSUP progress HUDCO Construction of dwelling Bodh gaya units - poor 545.7 BSUP HUDCO HDFL = Hindustan Pre Fab Limited HUDCO = Housing and Development Corporation Limited Source: UD&HD, GoB

6.2 Details of Planned / Ongoing Projects – State Plan

Table 6.7 Ongoing - State's Own Financed Projects Water Supply Projects

Town Name Brief Sanction Cost Amount Source of Outcomes Status of Description Month and (Rs utilised finance Works / of Project & year Million (Rs. (Financing Remarks Scope Millions) Plan) Betiah Water Supply Apr-06 20 0.0 State Plan NIT cancelled. Scheme Fresh NIT to be issued Motihari Water Supply Jan-08 20 8.4 State Plan 2 TWs, 38.56 1 TW and Scheme kms of pipe 10.377 kms of pipe complete Kishanganj Water Supply Aug-06 183.5 169.5 State Plan 7 TWs, 103.79 6 TWs, 96.6 kms Scheme kms pipe, 7 pipe, 2 OHTs, 7 OHTs,7 PS, PSs, Gen, 85 Gen, 288 PSPs PSPs work completed, balance ongoing Purnia Water Supply Oct-05 55.7 42.8 State Plan 3 TWs, PSs, 3 3 TWs, PSs, 2 Scheme OHTs, 28.45 OHTs, 9 Kms kms of pipe pipe complete Katihar Water Supply Nov-05 35 30.1 State Plan 2 TWs, 19.016 2 TWs and 12 Scheme kms pipe kms pipe completed Darbhanga Water Supply Aug-05 30 30.0 State Plan TWs, PSs, Completed Scheme 32.067 kms pipe Muzaffarpur Water Supply Aug-05 84.9 80.0 State Plan Completed Scheme Siwan Water Supply Jan 2006 & 85.6 73.1 State Plan Completed Scheme June 1995 Hajipur Water Supply Aug-06 64.0 64.0 State Plan 8 TWs,PSs. 8 TWs, PSs, Scheme 47.8 Kms pipe, 44.987 kms 8 OHTs completed

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Town Name Brief Sanction Cost Amount Source of Outcomes Status of Description Month and (Rs utilised finance Works / of Project & year Million (Rs. (Financing Remarks Scope Millions) Plan) Begusarai Water Supply Nov-02 72.5 State Plan zone 1 n 2 Scheme completed, zone 3 ongoing Jamalpur Water Supply Mar 2006 412.5 61.7 State Plan Due to Scheme and Oct insufficient GW 2008 source the project was revised. NIT cancelled. Fresh NIT to be issued Biharsharif Water Supply Aug-06 83.0 2.4 State Plan 6 TWs, 5 PSs, 90% work of Scheme 26.459 kms TWs, PSs, 16.8 pipe, 4 OHTs kms pipe, 2 OHTs completed Danapur Water Supply Feb-06 20 41.3 State Plan 2 TWs, 21.525 2 TWS and Scheme kms of pipe 13.09 kms pipe completed Arrah Water Supply Oct-05 65.6 15.5 State Plan Substantially Scheme completed Sasaram Water Supply Jul-06 92.5 60.2 State Plan Substantially Scheme completed Dehri Water Supply Oct-05 29.7 87.7 State Plan zone 1 Scheme completed, zone 2 ongoing Gaya Water Supply Aug-05 139.9 22.2 State Plan 8 tubewells, 8 tubewells and Scheme PS, 65.835 PS completed, kms dist 118 hand pipeline, motor tubewells pump and completed 60% transformer, pipeline work 200 hand completed tubewells Purnia Water Supply Nov-06 62.5 83.3 TFC 2 TWs, 24.5 2 TWs, 17.4 km Scheme kms pipe, 1 pipe, 90% OHT OHT complete Darbhanga Water Supply Mar-06 211.3 41.6 TFC 1 TW n PS, TW complete, Scheme 79.681 kms balance ongoing pipe Muzaffarpur Water Supply Aug-06 200 92.1 TFC 8 TWs, 73 kms 8 TWs, 71.5 kms Scheme pipe, allied pipe allied works works complete Chappra Water Supply Nov-06 80 170.9 TFC Work completed Scheme in 3 zones Bhagalpur Water Supply 249 69.6 TFC Scheme Munger Water Supply Mar-06 138.0 TFC old scheme scrapped.

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Town Name Brief Sanction Cost Amount Source of Outcomes Status of Description Month and (Rs utilised finance Works / of Project & year Million (Rs. (Financing Remarks Scope Millions) Plan) Scheme Revised scheme for 348.3 million approved to be funded under this and state plan Patna Water Supply 575.2 6.7 TFC Scheme Bakhtiarpur Water Supply Mar-06 10 83.2 State Plan work Scheme commenced in 10-11 ongoing Water Supply May-06 42.3 0.0 State Plan Scheme Scheme scrapped. Existing TW complete Water Supply 2008-09 10 1.0 State Plan work Scheme commenced in 10-11 ongoing Hilsa Water Supply May-07 49.1 0.0 State Plan 3 TWs, PSs, 3 Substantially Scheme OHTs, 19.5 completed kms of pipe Khagaul Water Supply Jul-06 15.7 45.9 State Plan work completed Scheme Kharagpur Water Supply Dec-94 34.9 14.4 State Plan Scheme Scheme scrapped. Revised scheme submitted for sanction and approval Lakhisarai Water Supply Mar-08 49.65 12.5 State Plan Part of the work Scheme completed Mahnar Water Supply Jun-98 22.1 0.9 State Plan 4 TWs, and PS 4 TWs and 3 Bazar Scheme PSs completed Revelganj Water Supply Jul-09 10 13.8 State Plan NIT cancelled. Scheme Fresh NIT to be issued Shergati Water Supply Mar-04 25.6 0.0 State Plan zone 1 Scheme completed, zone 2 ongoing Sheikhpura Water Supply Nov-07 223.0 22.3 State Plan Six TWs, 8 PS, Partially Scheme 8 Genroom, six completed chlo, 6 operator room, 53 kms trans and 65.85 kms dist pipeline Source: UD&HD, GoB

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6.3 Financing Sources for Roadmap Implementation

Table 6.8 Source of Financing – Total (Rs. Million)

Sector Total Centrally State Plan ADB Balance funds Sponsored Investment source to be Schemes Program identified Water Supply 74,309 6,661 1,300 6,180 60,168 Sewerage 57,228 7,036 690 4,304 45,198 Drainage 59,577 3,766 980 54,831 Solid Waste 16,464 584 250 15,630 Roads 43,938 1,526 750 41,662 Total 251,515 19,572 3,970 10,484 217,490 Source: UD&HD, GoB and PPTA consultant estimate

Table 6.9 Source of Financing - All Towns ($ Million)

Sector Total Centrally State Plan ADB Balance funds Sponsored Investment source to be Schemes Program identified Water Supply 1,651 148 29 137 1,337 Sewerage 1,272 156 15 96 1,004 Drainage 1,324 84 22 - 1,218 Solid Waste 366 13 6 - 347 Roads 976 34 17 - 926 Total 5,589 435 88 233 4,833 Note: 1) Base costs only - does not include contingencies 2) 1 U S $ = ` 45 Source: UD&HD, GoB and PPTA consultant estimate

Table 6.10 Source of Financing - 24 Towns (Rs Million)

Sector Total Centrally State Plan ADB Balance funds Sponsored Investment source to be Schemes Program identified Water Supply 50,997 6,282 910 6,180 37,625 Sewerage 43,089 6,128 690 4,304 31,966 Drainage 43,449 2,710 686 40,053 Solid Waste 8,036 584 175 7,278 Roads 13,786 525 13,261 Total 159,357 15,705 2,986 10,484 130,183 Source: UD&HD, GoB and PPTA consultant estimate

Volume 1: Urban Sector Road Map Page 64 Bihar Urban Development Investment Program

Table 6.11 Source of Financing - 24 Towns (US $ Million)

Sector Total Centrally State Plan ADB Balance funds Sponsored Investment source to be Schemes Program identified Water Supply 1,133 140 20 137 836 Sewerage 958 136 15 96 710 Drainage 966 60 15 890 Solid Waste 179 13 4 - 162 Roads 306 - 12 - 295 Total 3,541 349 66 233 2,893 Note: 1) Base costs only - does not include contingencies 2) 1 U S $ = ` 45 Source: UD&HD, GoB and PPTA consultant estimate

Table 6.12 Source of Financing - 4 Towns (Rs Million)

Sector Total Centrally State Plan ADB Balance funds Sponsored Investment source to be Schemes Program identified Water Supply 21,967 987 444 8,080 12,457 Sewerage 10,044 0 0 2,416 7,628 Drainage 11,820 905 690 10,226 Solid Waste 2,670 0 0 2,670 Roads 2,827 0 0 2,827 Total 49,328 1,892 1,134 10,496 35,807

Source: UD&HD, GoB and PPTA consultant estimate

Table 6.13 Source of Financing - 4 Towns (US $ Million)

Sector Total Centrally State Plan ADB Balance funds Sponsored Investment source to be Schemes Program identified Water Supply 488 22 10 180 277 Sewerage 223 0 0 54 170 Drainage 263 20 15 0 227

Solid Waste 59 0 0 0 59 Roads 63 0 0 0 63 Total 1,096 42 25 233 796 Note: 1) Base costs only - does not include contingencies 2) 1 U S $ = ` 45

Volume 1: Urban Sector Road Map Page 65