an exploration of sustainability in the provision of …...lodhi road e-mail [email protected]...

An exploration of sustainability

in the provision of basic urban services in

Indian cities

TERI

in partnership with Sustainable Urbanism International and

Arghyam,

with support from Rohini and Nandan Nilekani

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© The Energy and Resources Institute 2009

ISBN 978-81-7993-225-4

All rights reserved. No part of this publication may be reproduced in any form orby any means without prior permission of the copyright holders.

Published byTERI Press Tel. 2468 2100 or 4150 4900Darbari Seth Block Fax 2468 2144 or 2468 2145IHC Complex India +91 • Delhi (0) 11Lodhi Road E-mail [email protected] Delhi – 110 003 Web www.teriin.org

Printed in India by Batra Art Press, New Delhi.

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ContentsProject team ...................................................................................................... xiAcknowledgement ............................................................................................. xiiiForeword ......................................................................................................... xvA preamble to urban sustainability in India ..........................................................xviiSummary ........................................................................................................xixIntroduction .................................................................................................... lxiii

Water

Introduction ............................................................................................................3Literature and case study review ..............................................................................4

Supply side management .................................................................................5Demand side management ..............................................................................7Institutional mechanisms for water and waste water sector .............................12Lessons learnt ...............................................................................................13

Developing the framework for analysis ...................................................................14Data procurement and management ..............................................................15Economic efficiency ......................................................................................16Source development / protection ...................................................................16Institutional reforms ......................................................................................17

Analysis of the sustainability parameter in urban India ...........................................17Data management .........................................................................................18Source protection/ development ....................................................................19Economic efficiency ......................................................................................19Institutional reforms ......................................................................................20

Recommendations to operationalize the parameters ...............................................22Parameter 1: Data management .....................................................................23Parameter 2: Economic efficiency ..................................................................24Parameter 3: Source development/ protection ................................................29Parameter 4: Institutional reforms .................................................................32

Recommendation for small and medium cities .......................................................34Recommendations for informal markets and urban slums ......................................35Recommendations for capacity building ................................................................36

Capacity building at four levels ......................................................................36Training methodology ...................................................................................37

Funding for the cities ............................................................................................37Annexure 1: Framework for GIS database system ..................................................38

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Annexure 2: Training modules ...............................................................................38References .............................................................................................................40

Solid waste management

Introduction ..........................................................................................................45Literature and case study review ............................................................................45Best practices in selected urban settings: national case

studies ...........................................................................................................471 Location: Mumbai ......................................................................................472 Location: Delhi ..........................................................................................483 Location: Chennai ......................................................................................494 Location: Bangalore ....................................................................................505 Location: Hyderabad ..................................................................................516 Location: Nagpur .......................................................................................53Examples from cities in transition ..................................................................53Best practices documented in Indian cities under JNNURM..........................55International best practices ............................................................................5511 Location: Brazil .......................................................................................5712 Location: Belo Horizonte City (Brazil) ......................................................57

Developing a framework for analysis: solid wastemanagement ..................................................................................................59Defining sustainability in solid waste management .........................................59

Current scenario of solid waste management in India ............................................60Municipal solid waste (Management and Handling) Rules, 2000 ...........................62

Responsibility for implementation .................................................................62Major issues affecting solid waste management in India .........................................62

Technical issues .............................................................................................63Institutional issues .........................................................................................63Regulatory issues ...........................................................................................64Social issues ..................................................................................................64Compliance with MSW Rules 2000 ...............................................................65Obstacles to private contracting in SWM .......................................................67

Identifying the sustainability parameters ................................................................68Field-testing of sustainability parameters .......................................................69

Compliance with issues related to overall operation of localbodies ...........................................................................................................70Basic details of selected cities .........................................................................70Service provision in an integrated manner ......................................................71Provision of cost recovery ..............................................................................71Users’ satisfaction with service provision ........................................................71

Compliance with issues related to provision of MSW Rules ...................................72Conclusions ..................................................................................................72

Contentsiv

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Recommendations for operationalization of sustainability parameters ....................72Indicators for operationalization ............................................................................73

Parameters related to MSW Rules .................................................................73Overall parameters ........................................................................................73Parameters related to MSW Rules .................................................................74Overall parameters ........................................................................................80

Institutional and aspects influencing sustainability .................................................81References .............................................................................................................82

Transport

Literature and case study review ...........................................................................85Defining sustainable transport ......................................................................85Singapore’s land transport policy ..................................................................87Sustainable Transport Plan of Auckland .......................................................89Integrated land use and transport planning in Curitiba ................................90Dedicated public transport system in Bogota ................................................91Public transport performance monitoring in Victoria ....................................92Indore’s PPP model for urban bus operations ...............................................95Reforms to improve bus services in Bangalore ..............................................98

Identifying the sustainability parameters for transport ........................................ 100Improving the share and quality of public transport: a key step for makingurban transport sustainable ......................................................................... 102Identifying parameters for assessing the sustainability of public transport... 104

Analysing the existing situation ........................................................................... 105Inadequate policy thrust ............................................................................. 106Legal and institutional issues ...................................................................... 107Lack of organizational coordination ............................................................ 108Inadequate availability ................................................................................. 108Poor accessibility ......................................................................................... 110Poor quality and image ............................................................................... 110Data challenges ........................................................................................... 110Operational challenges ................................................................................ 110Improper planning for routes and fares ....................................................... 111Lack of priority ........................................................................................... 111Absence of performance measurement ........................................................ 112Lack of focus on customers ........................................................................ 113Absence of demand management measures ................................................ 113Capacity and human resource issues ........................................................... 113Challenges for the small and medium-sized cities ....................................... 116

Recommendations for transport .......................................................................... 117Policy, organizational, and operational reforms ........................................... 117

Contents v

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Goals and indicators for sustainable public transportservices........................................................................................................ 122Goals for improving availability of public transport .................................... 122Goals for improving accessibility ................................................................. 123Goals for improving transport performance for customer convenience ....... 123

Developing an overall mobility and transport infrastructure plan for the city ..... 125Specific recommendations for achieving the goals ....................................... 126Fleet augmentation with private sector participation ................................... 126Improving access ......................................................................................... 127Improving operations .................................................................................. 128Improving internal efficiencies, monitoring performance, and settingbenchmarks ................................................................................................. 130Priority to public transport ......................................................................... 131Becoming ‘customer oriented’ ..................................................................... 131Supporting demand management strategies ................................................ 132Identifying financing options ....................................................................... 132Strengthening human resource development and capacity building ............ 133Preserving the share of public transport trips in the small and mediumtowns .......................................................................................................... 134

Data requirement ................................................................................................ 135Conclusion.......................................................................................................... 136References ........................................................................................................... 137Bibliography........................................................................................................ 139

Power

Literature review ................................................................................................. 143Defining sustainability in the power sector .................................................. 143International review .................................................................................... 144

National review ................................................................................................... 151Jamshedpur ................................................................................................. 151

Identifying the sustainability parameters for power ............................................. 157Access to electricity ..................................................................................... 158Energy efficiency ....................................................................................... 158Impact on the environment ....................................................................... 158Quality of supply and quality of services ..................................................... 158

Analysing the existing situation ........................................................................... 159Access to electricity ..................................................................................... 159Energy efficiency ......................................................................................... 163Impact on the environment ......................................................................... 168Quality of supply and services ..................................................................... 172

Recommendations............................................................................................... 175Access to electricity ..................................................................................... 175

Contentsvi

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Contents vii

Energy efficiency ......................................................................................... 179Impact on environment ............................................................................... 183Quality of supply and services ..................................................................... 185Capacity building requirements .................................................................. 186

References ........................................................................................................... 187Bibliography........................................................................................................ 188Websites .............................................................................................................. 188

Buildings

Introduction ........................................................................................................ 191Literature review ................................................................................................. 191

Sustainability in buildings ............................................................................ 192Sustainable buildings: principles, approaches, and characteristics ................. 193Relation with the location ............................................................................ 193Flows: energy, water, and materials .............................................................. 193

An overview of international and national best practices ...................................... 196Country programmes .................................................................................. 196Energy efficiency assessment: appliances ...................................................... 200Implementation and incentivizing ................................................................ 200Water efficiency at building level .................................................................. 201Building materials specification.................................................................... 201Waste management ...................................................................................... 201Sewerage ..................................................................................................... 201Economic and market-based instruments .................................................... 201City-specific programmes ............................................................................ 202

National best practices ........................................................................................ 212Ministry of New and Renewable Energy ...................................................... 213

Identifying the sustainability parameters for buildings .......................................... 217Sustainability goals ...................................................................................... 217Basic research framework............................................................................. 217

Analysing the existing situation: buildings ............................................................ 218Building sector observations ........................................................................ 219Implementation barriers .............................................................................. 222

Recommendations ............................................................................................... 229Policy instruments ....................................................................................... 230Implementation strategy .............................................................................. 231Framework for broad guidelines/bye-laws amendments at ULBs .................. 236Disaster preparedness .................................................................................. 239Awareness programme for government departments and undertakings......... 243Public–private alliances, corporates, and role of government bodies incapacity building and market transformation ............................................... 244

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R&D in new construction technologies and materials and establishment oftesting laboratories ...................................................................................... 246Enforcement and monitoring ....................................................................... 247

Baseline development .......................................................................................... 247Indicators .................................................................................................... 249

Annexure 1 ......................................................................................................... 251Annexure 2 ......................................................................................................... 255References ........................................................................................................... 257Bibliography ........................................................................................................ 258Websites .............................................................................................................. 259

Governance

Literature review ................................................................................................. 263National review ................................................................................................... 263

Surat Municipal Corporation ...................................................................... 264Ludhiana Municipal Corporation ................................................................ 266Municipal Corporation of Hyderabad .......................................................... 267Guntur Municipal Corporation ................................................................... 269

Case studies of best practices addressing specific good governance parameters ..... 269Financial capacity ........................................................................................ 269Citizen’s participation .................................................................................. 271Transparency and accountability ................................................................. 272Equity ......................................................................................................... 274

International review............................................................................................. 274Citizen’s participation .................................................................................. 276Transparency and accountability ................................................................. 278Capacity building and training ..................................................................... 279

Defining good governance and parameters of good governance ............................ 280Research framework ............................................................................................ 282Analysing the existing situation: governance......................................................... 283

Analysis of the legal provisions relating to municipal governance .................. 283Analysis of the urban reform initiatives ........................................................ 288Impediments in improved urban governance................................................ 292

Recommendations for governance ....................................................................... 294Decentralization .......................................................................................... 295Capacity ...................................................................................................... 297Public participation ..................................................................................... 302Equity ......................................................................................................... 303Sustainability cell ........................................................................................ 304Provision of basic services by municipal bodies in case of transitioning cities ... 304

Addressing interlinkages with other sectors .......................................................... 308Intersectoral linkages ................................................................................... 308

Contentsviii

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Buildings ..................................................................................................... 308Annexure ............................................................................................................ 314References ........................................................................................................... 315Bibliography ........................................................................................................ 315

Theme papers

1 Sustainable services in slums: need for an alternative approach ......................... 3192 Informal markets for basic urban services ......................................................... 329

Conclusion ....................................................................................... 333Abbreviations ................................................................................... 337

Contents ix

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Project team

TERI (The Energy and Resources Institute)

Project advisor

S Sundar, Distinguished Fellow

Principal investigator

Chhavi Dhingra, Research Associate

Co-principal investigators

Water - Anamika Barua, Research AssociateSolid Waste Management - Suneel Pandey, FellowTransport – Chhavi Dhingra, Research AssociateBuildings - Hina Zia, Research AssociatePower - Saurabh Gupta, Research AssociateGovernance - Veena Aggarwal¸ Associate Fellow

Team members

Akshima T Ghate, Research Associate Divya Sharma, Research AssociateGaurav Shorey, Research Associate Jeevan Mohanty, Research AssociateK Ramanathan, Distinguished Fellow Kaushik Deb, FellowKiran Bala, Research Associate N B Mazumdar, ConsultantSakshi Chadha Dasgupta, Research Associate Saurabh Prasad, Research AssociateShahid Hasan, Fellow Shikha Gandhi, Research AssociateSudipta Singh, Research Associate Vinod Tewari, Professor, TERI University

Reviewers

Ashok Jaitly, Distinguished Fellow Prabir Sengupta, Distinguished Fellow

Secretarial assistance

Sonia Khanduri

TERI Press

Arshi Ahmad, Senior Editor R Ajith Kumar, Assistant Graphics DesignerRajiv Sharma, Secretarial Assistant T Radhakrishnan, Production Manager

SUI (Sustainable Urbanism International)

Jyoti Hosagrahar, Director

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Acknowledgements

TERI would like to express its deep gratitude to Dr Nandan Nilekani and Mrs Rohini Nilekanifor not only providing the financial support to undertake this study, but also for their visionfor this study. We also thank Dr Nandan Nilekani for his active participation in review meetingsat various stages of the study.

TERI is also grateful to its partners SUI (Sustainable Urbanism International) and Arghyam.In particular, we are grateful to Dr Jyoti Hosagrahar of SUI for her valuable comments anduseful insights at various stages of the project.

TERI gratefully acknowledges the active participation of a large number of stakeholders,including sector experts, academia, practitioners, government agencies, bilateral and multilateraldonor agencies, the private sector, NGOs, and users, and their valuable comments and viewson the study, which they shared during the two external consultation meetings organized byTERI at the beginning and near the end of the study.

TERI would also like to express its gratitude to the following individuals for sparing theirvaluable time and providing constructive inputs that were helpful in writing the report.

P B Dutta, Director, Meghalaya Urban Development Authority, Government of MeghalayaP Hima Muktan Shangpliang, Transport Commissioner, Meghalaya State and CEO, Municipal

Board, ShillongP P S Kharola, Joint Secretary, D/o Administrative Reforms and Public Grievances,

Administrative Reforms Commission, Government of IndiaP S R Rao, Principal Secretary, Urban Development and Urban Housing Department,

Government of GujaratP S Aparna, Commissioner, Surat Municipal Corporation

Visiting three very different Indian cities and understanding how urban service delivery isplanned, managed, and monitored in these cities, formed an integral part of this study. TERIis extremely grateful for the valuable insights and cooperation received by personnel workingwith various departments and institutes involved with planning and management of urbanservice delivery in Surat, Hyderabad, and Shillong.

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Foreword

With the rapid pace of urbanization worldwide, urban sustainability has become a veryimportant issue today. According to the State of the World’s Cities Report 2008/09, nearly 60%of the world’s population will live in urban areas within the next two decades, and it is in thedeveloping countries that this growth will take place most rapidly. In India itself, the numberof million-plus cities is expected to increase significantly in the next decade. Unless properlyplanned and managed, this growth will result in urban sprawl, mounting stress on infrastructure,creation of slums, a widening rich–poor divide, deteriorating quality of urban services, andincreased environmental pollution and energy use.

The concept of sustainable cities represents an overarching challenge and includes addressingsocial, environmental, and economic sustainability concerns, along with the interlinkagesbetween them. A good, practical and much-needed starting point in the direction of attainingurban sustainability is improving the delivery of basic urban services. This report, in additionto addressing sustainability issues in the delivery of basic urban services like water, managementof municipal solid waste, and transport, also analyses sustainability issues in sectors like supplyof and use of power and buildings, which offer a huge scope for energy-efficiency improvements.It also attempts to bring facets of their planning and management under the purview of localgovernments. This report also addresses the interlinkages between these sectors and emphasizesthe need for a holistic approach in planning. Interestingly, the Government of India’s NationalAction Plan on Climate Change, in its Missions on Sustainable Habitat and Water, also endorsesthese five sectors for interventions to reduce energy use and emissions. Clearly,recommendations for improved service delivery in cities cannot be complete without appropriateregulatory frameworks and institutional arrangements to empower city governments withadequate financial resources, institutional capacities, and more importantly, good governancepractices, all of which the report seeks to address.

I am pleased that TERI has been recognized by the Ministry of Urban Development as aCentre of Excellence in Urban Development with a focus on urban governance and buildingssectors, thus giving it an opportunity to translate its recommendations into practice. It isheartening to see that the Government of India is committed to monitoring outcomes and isin the process of introducing a system of indicators to measure and monitor sustainability inthe provision of urban services. This report, besides adding to these indicators, makesrecommendations on improved urban service delivery and charts out actions to implementthese recommendations in cities. It is hoped that governments at the national, state, and locallevels will find this report of value, and adopt the strategies and measures suggested as part ofthe urban development polices and programmes.

(R K Pachauri)Director-General, TERI

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A preamble to urban

sustainability in India

Sustainability as a concept came about in response to the environmental degradation andoverconsumption in the highly industrialized economies. The Brundlandt Commission definedthe objectives of sustainability as improving human well-being in the short term withoutthreatening the local and global environment in the long term. This was further refined as aneed to balance economic development, social development, and environmental protection asthey were interdependent and mutually reinforcing forces. Despite many other subsequentinternational standards and guidelines, including Agenda 21, however, the concept of urbansustainability remains nebulous. At a time when India is rapidly urbanizing and the cities areincreasingly the engines of its growth, this project began by asking what sustainability meansin the Indian context and how Indian cities can be made sustainable.

In the context of urban India, sustainability involves the careful management of natural andcultural resources to balance the pressing needs of economic and social development of thepresent, bearing in mind equity and efficiency considerations, with the protection of resourcesand ecosystem functions for the future. Cities in India, ranging from fast growing mega-metrosto small towns, prone to seismic and hydro-metrological disasters, face the dual pressures ofrapid economic growth and grossly inadequate infrastructure and social amenities. The multipledimensions of sustainability, including water, waste, power, health, education, and finance, areall interrelated. Given the reality of Indian cities, with a very large proportion of the residentsliving and working in the non-formal sector, and a poor fiscal base, the management of resourcesneeds to embrace a variety of levels and diverse practices, ranging from the formal privateand state sectors to community-managed local systems. Enabling and facilitating the adoptionof a diversity of solutions, appropriate to the context, and facilitating their seamless integrationto enhance the multiple and complex dimensions of sustainability is a critical challenge forIndian cities. Exploring ways to enhance sustainability of Indian cities and its many dimensionsin the provision of basic infrastructure is an important first step towards making citiessustainable.

This study and its recommendations begin an important and necessary debate about urbansustainability in India. By looking closely at urban local bodies and their provision of basicservices, identifying gaps in their effectiveness and ways to improve service delivery, cities canbegin the process of reform towards sustainable provision even within the existing administrativeand institutional framework. Putting policies and regulations in place to promote energy efficientbuildings is an extra step that city governments can take in reform towards sustainability. Thepaucity of data and the value of data collection in each of the basic urban services becomevery apparent. From setting sustainability goals to evaluation and monitoring, the absence ofprecise and reliable data hinders efficient and effective provision of services. Educating andraising the awareness of communities and officials alike as well as building up the capacitiesof institutions are equally vital steps towards achieving sustainability goals.

With this effort as a starting point, a larger conceptualization of what sustainable cities meanin India is essential. The provision of basic infrastructure is one generally accepted dimension

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of sustainability (that includes water supply, sanitation, garbage removal, energy, adequatehousing, and transportation). Urban water bodies, trees and green areas, health, education,and disaster preparedness are additional dimensions of sustainability. In the Indian context,the numerous and varied informal systems of providing necessary urban services, not only inthe slums but everywhere in the city, further complicate simple models of intervention. Theinstitutions that govern these informal and semi-formal systems and the equity of access tomunicipal infrastructure are added dimensions of sustainability that need to be addressed. Theneed for an urban vision of sustainability and planning towards it become all the more urgentas disasters and climate change become pressing issues.

The need for an understanding of urban sustainability in terms of culture is particularlypressing. Beyond monuments and museums, the cultural particularities of places, includinglocal knowledge and practices, have generally been discarded in the rush to modernize. Further,globalization erodes local knowledge and identities. An expanded view of cultural heritagerecognizes its role in livelihood creation, practices of land and natural resource care andmanagement, building, land use, institutional mechanisms (both formal and informal), marketsand infrastructure systems that often call for a judicious and careful use of local resources.Local knowledge and cultural practices also help to establish a continuum between urban andrural areas as well as formal and informal ways of living and working. From this perspective,heritage becomes a resource for development that is sustainable: the connective tissue thatlinks spatially as well as temporally connecting our past with present aspirations for the future.The success of our endeavours for urban sustainability will hinge on the ability to identifyand engender solutions that balance the needs of formal systems with local, historically informalpractices, market efficiency with state protection for the marginal, and place-based culturalheritage with modern technocratic practice.

Jyoti HosagraharDirector, Sustainable Urbanism International

A preamble to urban sustainability in Indiaxviii

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Introduction

Cities are spatial manifestations of human and economic activities and evolve througha complex process determined by a number of economic, demographic, social, andhistorical factors. Their development needs to be planned, guided, and monitored toachieve an optimal utilization of resources required to make them sustainable, sociallyhabitable, economically efficient, and administratively manageable. Usually, citiesoccupy a fraction of any country’s area; however, they consume a major share of energyand result in much greater pollution levels.

So far, there has been no standard definition of a sustainable city that isunanimously accepted by all. ‘Sustainability’ being a broad overarching term,encompasses a number of aspects. A sustainable city cannot be conceived withoutconsidering factors like environmental protection, social integration, a sustainedeconomy and good governance—all being a part of a harmonious and dynamic co-evolution.

Of all the lessons that emerge from a review of literature and case studies on thesubject of making cities sustainable, the following emerge most strongly.P Presence of well-functioning infrastructure.P Existence of a legal framework that enables and empowers governments/departments

to set up goals, create roadmaps, and carry out the necessary implementationmeasures.

P Presence of well-coordinated institutional and governance mechanisms and unifiedbodies enabling implementation of integrated sustainability measures.

P Existence of strong political leadership and will.P Setting of clearly defined goals and measurable targets and stage-wise review and

monitoring of plans and targets with necessary updating wherever required.P Implementation of a continuous, interactive and iterative multistakeholder

participatory process involving both sectoral experts and general communitythroughout.

Summary

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Summary

An exploration of sustainability in the provision of basic urban services in Indian cities

xxSUM

MARY

P Execution of demonstration projects to win public support and acceptance.P Presence of sense of ownership and responsibility amongst citizens.P Replication of successful initiatives by other cities.

What also emerges is that a key step and good starting point for making citiessustainable making the delivery of urban services in a city more sustainable. Since acity’s population is dependent on services like water, sanitation, power, transport,buildings, etc., for its survival, it is important that these services be planned, delivered,managed, and monitored in a proper way so as to ensure adequacy, equitable access,good quality, and least harm to the environment.

In the backdrop of India’s rapid population growth and mass urbanization, the stresson urban infrastructure has resulted in a greater number of people that need to beserved, deteriorating service quality, inadequate revenues to cover costs, widening rich-poor divides, and the need for capacity augmentation – both in terms of skills andphysical infrastructure. Poverty, traffic congestion, bad air quality, high noise levels,lesser green areas and open spaces, scarcity of water, long power cuts, unhygienic livingconditions leading to serious diseases, etc., are all increasingly putting our cities underthe threat of unsustainability.

In light of the above, this study on exploring sustainability in the provision of basicurban services in Indian cities as a step towards making cities more sustainable wasinitiated by TERI, in partnership with SUI (Sustainable Urbanism International) andArghyam, in March 2008, with the support of Dr Nandan Nilekani and Mrs RohiniNilekani. TERI hopes that this report will help key stakeholders, particularly stategovernments and urban local authorities to plan, manage, and monitor the provisionof these services in a sustainable manner. TERI also hopes that the recommendationsemerging from this study will influence public policy and become part of urbandevelopment policies and programmes in India.

Project objectives and scope

As a step towards the larger goal of making Indian cities more sustainable, this studyaims to identify processes that would make service planning and delivery in Indiancities more sustainable in the following five urban sectors.P waterP solid waste managementP transportP buildingsP power

This is done by identifyingP what sustainability in each sector implies;



Summary xxi

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MARY

P a framework of parameters and indicators to assess sustainability of a service;P the existing situation in Indian cities with regard to the identified parameters;P recommendations to operationalize sustainability-related actions in Indian cities for

each sector;P supporting policy, legal and organizational arrangements, and data and capacity

requirements including making suggestions to be incorporated in the JNNURM(Jawaharlal Nehru National Urban Renewal Mission).

Recognizing that deficiencies in the existing governance structures adversely impacturban service delivery, in addition to the above-mentioned five sectors, this study alsolooks at ‘governance’ as a separate sector.

Recognizing the Ministry of Urban Development’s pioneering work in thedevelopment of a handbook for standardized service delivery benchmarks in contextof Performance Management of Urban Services, this study, wherever necessary,suggests additional parameters in the said sectors. This study also focuses on the currentplanning and delivery processes, and the institutional, regulatory, and capacity issuesthat are necessary to operationalize these parameters for urban services. In addition,this study also looks at the buildings and electricity sectors and explores the possibilityof including them in the current urban development policy scenario, and involvingthe local governments in their planning and management, as they have greatimplications for energy and environment, and therefore, sustainability of urban areas.The study acknowledges the issues of informal markets for urban service delivery andprovision of basic services to the urban poor, and attempts to flag the key issues andsuggest alternative policy directions.

Project methodology

For each of the six sectors (five urban services plus governance) mentioned above,the following methodology was adopted by TERI.P A literature and case study review on best practices for achieving sustainability in

urban service delivery.P Identification of parameters necessary to assess sustainability of the service.P Evaluation of the current situation in urban India through secondary sources and

visits to three cities to understand• the extent to which these cities are addressing the sustainability parameters;• the issues/impediments to sustainability;• the extent to which some of the identified parameters are feasible to be

operationalized;• any good practice on sustainability which could be replicated in other cities;

P Making recommendations to operationalize sustainability related actions in Indiancities.


Summary


xxiiSUM

MARY

Besides this, regular interactions and knowledge sharing activities with variousstakeholders like city authorities, service providers, academia, NGOs, and researchinstitutions working in these sectors were carried out through visits to cities, as wellas wide ranging consultation meetings were held at Delhi.

The subsequent sections summarize the key findings for each of the sectors. Eachsector discusses the definitions of sustainability, the parameters identified to assesssustainability and the recommendations for operationalizing the identified sustainabilitymeasures in Indian cities.

This study seeks to identify the major sustainability concerns in the provision ofbasic urban services and recommends how they can be best addressed in India’sgrowing cities. The study should be viewed not as a treatise on the subject but as aguide to the way forward.

Summary: Water

Introduction

Providing safe and adequate water to millions across the growing number of cities inthe developing countries like India, is a daunting task for the urban authorities. Waterscarcity has intensified in most Indian cities over the past few decades and this is to alarge extent due to the inequitable distribution and inefficient use of water. In additionto this, lack of good infrastructure/techniques for monitoring, treatment facilities, alongwith poor management of waste water, have also contributed towards widespreadpollution of surface and groundwater, leading to rapid deterioration of the environment.The urban centres are also faced with the emerging reality of informal markets andgrowing complexities in the urban slums which require specialized interventions. Thus,it has become imperative to understand and devise mechanisms to provide acceptablequality and quantity of water to all urban areas through sustainable water managementpractices.

Defining sustainable water services

Based on an in-depth study of good practices and measures adopted across the worldthe following definition was arrived at for addressing sustainability in the water sectorin urban areas. ‘Providing people with equitable access to water, while at the sametime ensuring socio-environmental and economic sustainability of the resources in thefuture’.

Parameters for analysing sustainable water management in urban India

An in-depth analysis was carried out after a review of good practices to develop aframework of sustainability parameters for water management in urban India thatintegrates socio-economic and environmental dimensions. The MoUD (Ministry of



Summary xxiii

SUM

MARY

Urban Development) has identified key benchmarking indicators for the various basicservices including water supply for the Indian cities. The indicators cover a wide varietyof issues related to coverage, access, quality, continuity of water supply, efficiency inredressal of complaints, cost recovery, collection efficiency of waste water, etc., thatwould be crucial to improve the water supply services in the cities across the country.Further, TERI has developed few additional parameters like data management, capacitybuilding, and source protection to make the list exhaustive. TERI’s recommendationsalso include the process of achieving and operationalizing the benchmark set for eachMoUD indicator.

The framework developed by TERI for sustainable water management along withthe MoUD indicators can be broadly classified into four components.

The existing situation

ULBs (urban local bodies) in India suffer from several deficiencies and are yet torespond adequately to the emerging challenges posed by the rapidly changing urbanscenario.

Table 1 Parameters of sustainable water management

Parameter Description

Data procurement For improved reach and access to quality service, utility provider will need to have adequate

and management data both at supply and consumer end. There is also a need to generate spatial-temporal

data base system to be maintained on a GIS framework. Hence, data procurement and

management has been developed as an additional parameter to enhance service delivery

by utilities.

Economics of water Effective water resource management requires water to be treated as an economic good. There

is a need for sustainable and equitable tariff structure and efficient revenue collection. Such

measures will be instrumental in improving the utility’s financial conditions, increasing

revenue collection, reducing water losses, and so on.

Source development With the growing water demand in urban India, there is an urgent need to manage and

/protection preserve the available water resources for their long-term sustainability. Water resources in

India have already reached a critical stage be it surface or groundwater, for which an

integrated approach is required in planning, formulation, and implementation with respect to

socio-economic, environmental, and ecological aspects.

Institutional reform Institutional mechanism is an important parameter, as a strong institutional setup is required

to make it conducive to operationalize other parameters in the framework. Within this

parameter, it is also important to include the marginalized section such as urban slums) so

that these sections of the society are not deprived of their share. Along with reviewing and

revamping the existing institutional setup, it is equally important to find ways to regularize the

informal water market.

GIS – geographical information system


Summary


xxivSUM

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For each of the above parameters, the existing situation was analysed.P Data procurement and management: Except for very few cities, most of the local

bodies in urban India lack data on the municipality services. Lack of adequate dataand updated maps make it very difficult for the local bodies to improve servicedelivery since this information is crucial to manage the water works departmentefficiently and effectively.

P Economics of water: In most cities in India, service providers are not being able torecover the operation and maintenance cost, which has led to poor service delivery.There is no financial autonomy or equitable tariff structure for efficient revenuecollection.

P Source development/protection: In most of the Indian cities, there is no provisionfor protection of the existing source from degradation and depletion. Thus,having exhausted, destroyed, and polluted the nearby sources and n e g l e c t e dusing the potential of local sources, cities are reaching out to far away sources fortheir water supply needs, which are not only expensive but also energy intensive.

P Institutional mechanism: In terms of the institutional m e c h a n i s m s ,inadequate policy and regulation combined with a non-transparent and non-participatory process is at the root of many water management problemsplaguing almost all cities. No or little cooperation exists between the variousagencies responsible for the management of water resources in different sectors.Very few cities have attempted to introduce PPP (private sector participation)in India, but have often failed mainly due to the stronghold of public sectorand absence of proper PPP model.

Recommendations

The recommendations have been prioritized based on our understanding of the areawithin the urban water sector where immediate attention is required for improvedprovision of water supply. However, stated priorities may change for individual cities,as it will depend upon city’s needs, capacity, resources, and stage of development.

Parameter 1: data procurement and management

Data management has been accorded the highest priority since data requirement andmanagement will precede all other reform initiatives. An integrated comprehensive watersupply network database is important to get a holistic understanding of the entirenetwork, distribution, including inlets/outlets, etc. This data set will also provideinformation on coverage, UFW (unaccounted for water), metering, and so on, and waysto manage the system more efficiently and effectively. The data will enable cities todevelop its future strategies to improve service delivery and achieve the benchmarkset for the MoUD indicators. For effective data management, staff capacity has to beregularly developed and updated on elements like data collection, screening and logging,



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data transfer, data checking, validation, etc. It is acknowledged that not all the waterboards, utilities and local bodies have similar capacities, resources, etc. Therefore, it isnot possible to create and develop these capacities within the organization. Some ofthe tasks can be outsourced or farmed out to consultancies, research institutes, and soon, who have dedicated manpower and infrastructure for data management includingGIS (geographical information service), MIS (management information system), andso on. However, water boards, utilities and local bodies should create adequatecapacities to assign, deploy, utilize, oversee, and manage the outsourced assignments.

Parameter 2: economics of water

The recommendation made under this section is essentially on the processes involvedin establishing and implementing effective water loss management strategies (reduceUFW to 10%–15%) and tariff rationalization.P Reduction of UFW: A number of options has been suggested which a local body

can adopt for loss reduction. They are listed below.• reducing water loss through pressure management• reducing unmetered supplies/improving meter accuracy• reducing UFW through asset management• actively controlling leakage to reduce UFW

In fact, all the above-stated initiatives to reduce UFWs in the system can beaddressed by developing DMAs (district metered areas). It is an integrated way ofsystematically analysing and addressing the issues in a designated area. Hence, therecommendation includes reducing UFW through creation of DMAs.P Tariff rationalization: An alternative to the current tariff structure (flat rate) is the

‘two-part’ tariff structure. Such a tariff design typically includes a consumption/volumetric rate in addition to the fixed water charge. The two-part tariff structureshould be gradually increased over the years with 100% metering and consumersstart paying for the water they consume. To operationalize the two-part tariffstructure, independent regulatory authority at the state level needs to be set up andshould be given adequate power and authority. Roles that the authority can playinclude the following.• Set principles for tariff setting/baseline parameters• Monitor regularly based on incentives and disincentives• Hear consumer appeal/case/conflict settlements

Apart from adopting cost-coverage principles for tariff rationalization, local bodiesshould also look for ways to reduce their O&M (operation and maintenance) cost.Local bodies should make all efforts to reduce operational wastage and improve cost-effectiveness.


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Parameter 3: source development/protection

Catchment protection and non-conventional water sources

Catchments/ water bodies should be conserved from encroachment. Traditional waterbodies should be restored before looking for alternative expensive augmentationmeasures like desiltation / import of water from far off sources. Non-conventional watersources like rainwater harvesting, flood-water harvesting can be used as complementarysupplies for water utilities.

Groundwater monitoring

P Strict enforcement in notified areas towards inadequately controlled groundwaterabstraction and excessive subsurface contamination load. The zones which arenon notified should be also monitored and brought under regulation areas.

P It should be made compulsory for the water intensive industries within the citylimits to recharge groundwater though artificial means like rainwater harvesting.

P A system of annual water and environmental audits needs to be put in place tomonitor the corporate efforts towards conservation of water (also in the areassurrounding the plant) in a transparent manner.

P Before establishing a new plant, water availability needs to be assessed from along term and ecosystem perspective, keeping in mind the present and futurepotential of competing with the water demands in the area.

Water quality

P In order to provide more clarity about the prescribed water quality standardsprovided by BIS (Bureau of Indian Standards) there is a need for thorough re-evaluation of the setting of standards of the quality of drinking water by BIS,which again should incorporate the views of different stakeholders like researchinstitutes, NGOs, and water experts.

P Waste water management to control water pollution: There should be somestandards/guidelines for various reuse of treated waste water. Although at present,there is a general guideline on the quality of waste water for reuse, in order toencourage reuse of waste water for different purposes like irrigation of publicparks, schools yards, highway, and residential landscapes, fire protection andtoilet flushing in commercial and industr ial buildings, recreationalimpoundments such as ponds and lakes, environmental reuse by creatingartificial wetlands/natural wetlands and industrial reuse, and so on, separateguidelines for each use should be made available by CPCB (Central PollutionControl Board).



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Parameter 4: institutional mechanism

To implement all the above-mentioned recommendations a sound institutionalframework is a prerequisite. Some of the institutional reforms that need to be takenup for proper enforcement of the recommendations made are the following.P The existing institutional framework dealing with groundwater needs to be

strengthened, which calls for review of the institutional responsibilities and legalprovision. SWP (State Water Policy) should be enacted through a legal frameworkand effectively enforced. The SWP should identify the institutional mechanismsnecessary for defining and enforcing physical limits to ground water extraction.

P Public–private partnership needs to be explored further in areas such as servicecontract (billing and collection), management contract (water treatment, etc.), smallpiped networks, leakage control/reduction, mapping of distribution network. Publiccommunity partnership can be developed through development and implementationof decentralized water system.

Further recommendations

Capacity building

P The ULBs need to be made aware of the full range of low-cost and appropriatewater-saving technologies and need to be provided with skills to assist with theirselection.

P The ULBs are required to be sensitized and encouraged to be responsive to thespecific needs of socio-economically vulnerable groups. The main aim of the trainingshould be to motivate and assist the ULBs and generate awareness.

P Different levels of need-based training should be provided to the entire staff of thelocal bodies on a regular basis to enhance the current skill set of functionaries andto enable them to perform the envisaged tasks more efficiently.

Recommendation for small and medium cities and urban slums

For residents of small/medium cities with little piped water coverage, the existing servicedelivery should be improved through the following.P Improvement in the condition of tankers, regular cleaning schedule for the tankers,

inspection schedule for adequate residential chlorine in the tankers, metering ofwater supplied through tankers and stand posts. Supplies based on tankers and standposts should be gradually replaced by piped water supply system.

P Water supply in urban slums can be regularized through acceptance of proof ofresidence such as ration card, voter’s ID (identity), and ID issued by the state asapplication requirement instead of land tenure documents, reduction of connectionfees which can also be paid in instalments, simplification of application procedures,and implementation of pro-poor tariff structure.


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To operationalize the above-mentioned recommendations, the initial funds needto be made available by the centre to the cities, under various city developmentschemes.

In addition, any developmental/reform initiatives undertaken by the city, state orcentral government should lay adequate emphasis on incorporating crucial componentslike water demand management, and institutional reforms and capacity building of thelocal urban bodies both at the planning and implementation phases. Initiatives like theJNNURM can serve as an appropriate platform to undertake these initiatives in selectedcities, thus setting the road map for future reform programmes.

Summary: Solid waste management

Introduction

Rapid urbanization and changing lifestyles are generating huge amounts of municipalsolid waste in the urban areas in the country. It is found littered all over the citylandscape leading to unsanitary living conditions. Waste management is one of the basicessential services provided by municipal authorities in the country to keep urbancentres clean. However, it is one of the most poorly rendered services in the basket ofthe basic services of the ULBs.

The present abysmal state of solid waste management in urban India, therefore,calls for urgent measures to ensure that waste management services are provided in asustainable manner.

Defining sustainability in solid waste management

Review of literature

Review of literature on solid waste management initiatives in cities was carried out toidentify elements of sustainability and define sustainability in solid waste managementin the context of Indian cities.

Review of literature revealed the following key elements in different cities ensuringlong-term sustainability of solid waste management services.P Legislative/policy measures to maximize recycling of waste and its diversion from

landfills.P Implementation of integrated waste management system – linking waste collection

and transportation to processing and disposal.P Achieving waste segregation by involving waste pickers and local community.P Performance-based privatization of services especially in the area of waste collection,

transportation, and processing to bring in efficiency.P Provision of performance-based tipping fee to improve project viability.P Establishment of task force and dedicated cell for solid waste management at the

municipal level.



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P Role of civil society in providing decentralized waste management services inperipheral/marginalized areas where municipal service is weak.

P Provision of MSW (municipal solid waste) services to be in sync with economic/social needs for the urban poor to ensure its wider acceptability.

P User fee is necessary to recover cost of service provision, collection of fee can belinked to bill for other utilities like electricity bill to ensure better compliance.

Sustainability – definition and parameters

As per the reviewed literature, sustainable solid waste management can be definedas ‘a process seeking appropriate levels of source segregation, recycling and resourcerecovery with environmentally appropriate technologies and involving cost recoverymechanisms for long-term financial sustainability leading to conservation of naturalresources by minimizing the health, environmental and aesthetic impacts of solidwastes.’ Sustainability in solid waste management would therefore essentially mean:P complete planning from primary collection to final disposal of the ‘ultimate’ waste

in an environmentally sustainable mannerP compliance with the rules and regulation applicableP compliance with projects that are implementable through interactive planning

involving all the stakeholdersP long-term maintenance of the projectP quality service that would satisfy citizensP service coverage that includes the slum areas

So, sustainability in delivery of waste management services is defined as aprocess seeking appropriate levels of source segregation, recycling, and resourcerecovery with environmentally appropriate technologies and involving cost recoverymechanisms for long-term financial sustainability leading to conservation of naturalresources by minimizing the impact of health, environmental, and aesthetic factorsof solid wastes. The most applied tool for achieving sustainability in wastemanagement is to adopt the concept of ISWM approach (integrated sustainablewaste management). The concept of ISWM recognizes three important dimensionsin waste management.1 Involvement of the stakeholder2 Technical and management-related aspects3 Local context affecting sustainability in a given geographical setting

Apart from these issues, there are also regulatory provisions as statedunder MSW Rule, 2000 notified by MoEF (Ministry of Environment and Forests),Government of India. The MSW Rules specify the necessary conditionsto be adopted by ULBs to enable them to perform solid waste management services


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in an environmentally and socially desirable manner. These conditions includesegregated doorstep collection of waste, proper processing, and sanitary disposal.

One of the foremost outcomes of urban growth seems to be its linkage with thegrowth of waste generation in cities. There is therefore the desired need to decouplegrowth and waste generation to be able to achieve sustainability in waste management.Sustainable solid waste management delivery therefore addresses the following issues:P provision of services in an integrated manner by ULBsP provision for cost recoveryP satisfaction of citizens with the solid waste management servicesP adherence to MSW rules by ULBs

Operationalization of sustainability parameters

Operationlization of selected parameters for sustainability of solid waste managementservices in the cities are intended to be achieved by the carrying out the following steps.P Selecting suitable indicators for each of the parametersP Defining the selected indicatorsP Defining at what levels and frequency the indicators should be monitored for solid

waste management in a city

The MoUD (Ministry of Urban Development) in its Handbook on StandardisedService Level Benchmarks has also identified a set of performance indicators for ULBs.It is expected that once local bodies start monitoring their performance and reportthe achievement of the benchmarks listed as per the given indicators, there will beinherent improvement in their performance. With respect to MSW, the following serviceareas have been covered.

The above-mentioned performance indicators are a must for any city to assess theefficiency in the provision of service delivery. However, benchmarks suggested (100%)in five cases are tough to be achieved by ULBs, given their indifferent performance

Table 2 Service areas covered with respect to MSW

Indicator Suggested benchmarks

Household coverage of SWM service 100%

Efficiency of collection of MSW 100%

Extent of segregation of MSW 100%

Extent of MSW recovered Not provided as waste varies from city to city

Extent of scientific disposal of MSW 100%

Extent of cost recovery of SWM service 100%

MSW – municipal solid waste; SWM – solid waste management



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regarding compliance of MSW Rules. This report has suggested the performanceindicators largely targeting the attainment of integrated waste management systems,public acceptance, and cost recovery. The report has also suggested progressivelyimproving the benchmarks wherever it was felt that 100% compliance in one wouldnot be possible by ULBs. Table 3 below lists the indicators to be measured with respectto solid waste management and summarizes operational issues associated with theseindicators.

Institutional aspects of sustainability in SWM

The subject of SWM has remained neglected for the past several decades in thecountry. As a result, the level of services is highly inadequate and inefficient as discussedin the previous section. However, with the advent of the JNNURM process and withthe coming in of the funding necessary to upgrade the process, the delivery of the

Table 3 Operational parameters for sustainability of SWM

Indicators Measurement Suggested benchmarks Implementation issues

Parameter 1: No littering and provision of two coloured litter bins

Ward level coverage To be measured biannually 90%–100% for larger cities; Zero-littering policy for

with litter bins and reported annually 60%–75% for smaller to urban areas at national as

reach to 100% progressively well as state level

Citizen satisfaction To be measured biannually 75%–90% for all cities Provision of separate covered

and reported by SI and bins for biodegradable and report annually

recyclable waste Wet waste to be collected on daily

basis whereas dry waste can be

stored at spaces with roofing and

in partitioned areas for a week

Campaigns, rallies, and street

plays, to ensure people’s

participation

Team of sanitary inspectors at

zonal level to monitor littering

Heavy spot fines can be strong

deterrents; the fines should also

cover the administrative charges

for constituted monitoring team

Citizen satisfaction surveys

suggested to be carried out by

third party at least annually to

maintain the transparency and

authenticity of the results of the

survey


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Table 3 Contd...


Parameter 2: Doorstep collection of waste in segregated manner

Percentage of households To be measured on daily basis 90%–100% for larger cities; Provision of trained waste

covered by daily at ward, zonal, and city levels 50%–70% for smaller; collectors

doorstep collection and reported on monthly basis to reach 100% progressively Formalization of informal waste

pickers, involvement of NGOs and

Percentage of collection 90%–100% for larger cities; CBOs for peripheral area

efficiency 50%–70% for smaller; Contracting out of doorstep

to reach 100% progressively collection of waste

User fee to be levied on

generators, slums to be covered

for free

Parameter 3: Road/street sweeping on all days

Beats cleaned every day To be measured on daily basis 100% for larger cities; Activity to be partly contracted out

at ward, zonal and city levels 60%–80% for smaller; Sweepers in congested areas to

and reported on monthly basis to reach 100% progressively cover 250-350 RMT of road length

and in less congested areas to

Staff deployed per lakh of cover 400-600 RMT of road length

population Ergonomically designed cleaning

implements to be used

Weekly review and reporting

system to be in place

Parameter 4: Abolition of open waste storage

Percentage of waste To be measured quarterly at 0% for larger cities; Detailed inventory of open

stored in open space ward and zonal levels monthly 25–30% for smaller cities; storages and reason for their

over total storage and reported annually to reach 0% progressively existence

Close/redevelop all open storage

areas in parks/greenery

Parameter 5: Transportation of waste in covered vehicles

No. of covered vehicles 60%–75% for smaller cities Conversion/replacement of open

over total no. of vehicles to reach 100% progressively vehicles with closed vehicles

available in working order 100% for larger cities; Privatization of transportation of

waste with collection to improve

efficiency

Parameter 6: Treatment of biodegradable waste

Percentage of bio- To be measured on daily basis 60% for larger cities; Doorstep collection of bio-

degradable waste generated on daily basis 50%–60% for smaller; degradable waste in segregated

collected over total waste and reported on monthly basis to reach 100% progressively manner

at city level Privatization of waste processing,



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Table 3 Contd...


Percentage of biodegra- 100% for larger cities; linking it with waste collection and

dable waste treated 60%–80% for smaller; transportation. Government can

daily over the quantity to reach 100% progressively own land asset and only privatize

of biodegradable waste services

reaching the processing Collection of user fee

site Decentralized processing of

organic waste in peripheral areas

Mandatory utilization of compost

by public utilities

Parameter 7: Minimize waste disposal in landfill; no disposal of organic waste

Percentage of waste To be measured on daily basis 50% for larger cities and Maximize recycling and waste

disposed over total and reported on monthly basis initially 70% for smaller cities; treatment

waste generated at city level both reaching up to 40% in Payment of tipping fee for waste

phased manner disposal

Need to establish sanitary

landfills; regional landfills for small

and medium towns

Parameter 8: Cost recovery of services

Percentage cost recovery To be measured on monthly 60%–75% for larger cities ; City administration should be

with respect to monthly basis and reported on monthly 50% for smaller cities; reaching authorized to recover cost of

expenditure basis at city level 90% in phased manner services

Phased targets for cost recovery

including smaller cities

Accounting system for

expenditure and revenues needs

to be improved for smaller cities

Parameter 9: Citizen’s satisfaction

Citizen’s satisfaction on To be measured and reported >90% satisfied with the Through citizen’s survey or

various aspects of SWM on annual/biannual basis services for larger cities rating by trained observers.

which are in public at city level 60%–80% satisfied in Agency can also appoint

domain smaller cities inspection committee to inspect

the cleanliness (third party

preferred)

Should be mandatory for all ULBs

to go for annual survey and

present the results in annual

report

CBO – community-based organization; SWM: solid waste management; RMT – running meters


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basic services is supposed to improve in the cities. The funding, however, requires citiesto adopt reforms regarding municipal administration in the cities. The reforms at theinstitutional level are an ongoing process for larger JNNURM cities which are in theprocess of accessing funds under the scheme.

There are however additional measures which would be required to improve thefunctioning of local bodies in terms of improving management SWM services. Thesemeasures can be summarized follows.P Establishment of separate cell for SWM with the municipal body. The cell should be

headed by the environmental engineer or civil engineer as against the public healthofficer as is done still in smaller cities. The cell should be guided by the steeringcommittee of eminent technocrats and senior citizens of the city for planning process

P Decentralization of municipal functioning at the zonal level and ward level to bringout the accountability and efficiency improvement as is done in the case of Surat

P Formation of ward committees as envisaged under 74th Constitutional Amendmentfor creating public awareness

Inviting the private sector for service improvement and better cost recovery wouldrequire local bodies to gain expertise in the preparation of contracts and to understandthe technical and legal issues related to the requirements regarding processing facilities,landfill sites, and so on. The technical capacity of local bodies needs to be enhancedto cover such aspects as well.

Summary: Transport

Introduction

The present day urban transportation crisis in cities is a major threat tosustainability. Severe levels of local air pollution and GHG (greenhouse gas)emissions, reliance on fossil fuel-based energy sources, rising number of roadinjuries and deaths, hostile pedestrian environment, high congestion and noiselevels, long travel distances and increased travel times, are all negative externalitiesresulting from the urban transport sector.

Based on a review of sustainable transport definitions, good practices and measuresadopted both nationally and internationally to address sustainability concerns in urbantransport, the following definition for a sustainable transport system in an Indian citywas arrived at.

‘A transport system where every individual or commuter category in the city isable to fulfil his or her mobility needs in a quick, affordable, safe, reliable, comfortable,energy efficient and environmentally benign manner.’

This is also in line with the objectives spelt out by the NUTP (National UrbanTransport Policy) of the MoUD for addressing the mobility situation in urban areas.



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A city’s transport system affects its sustainability, and one of the key pillars of asustainable transport system is a sound and efficient public transport system.1

Therefore, a sound and efficient public transport system becomes an importantindicator for a city to be sustainable. Best practices on sustainable transport initiativesin cities from the world over reveal that provision of adequate, efficient, and comfortablepublic transport is one of the most important means to ensure sustainability of urbantransport. This measure, if accompanied with supporting actions like restrainingpersonal vehicle usage, integrating land use and transport planning, according priorityto public transport, better traffic management, and introduction of ICT (informationand communication technologies) can help achieve the goals of sustainable mobilityin urban areas.

Parameters for a sustainable public transport system

Sustainable public transport system goals would typically focus on the adequacy andefficiency of the public transport system, and these could be translated into thefollowing parameters.P Availability of public transportP Access to public transportP Customer convenience—reliability of services, presence of information systems,

safety and security while travelling, comfort and cleanliness levels in the buses, timeand cost of travel

P Operations and management of public transport

As mentioned earlier, the recommendations for urban transport in this report focusprimarily on the ways and means to make public transport in Indian cities moresustainable. These recommendations focus on aspects like policy, institutional andorganizational frameworks, setting of goals in line with the above-mentioned parametersand specific actions to achieve those goals. The recommendations are primarilyintended for use by state and city authorities in Indian cities having direct and indirectresponsibility for the planning and management of urban bus services and passengertransport services and transport service operators.

Recommendations

Formulation of state-level urban transport policies

Since public transport subsystems form a part of a larger system which comprisesthe overall policy, laws, regulations, quality of infrastructure, etc., the making ofthe public transport subsystem more sustainable would require making changes

1 Here, public transport systems include shared IPT (intermediate para transit) modes like auto rickshaws, jeeps,taxis, vans, and mini buses, which carry passengers on a per seat fare basis. Such modes are common in manyIndian cities as public transport carriers, especially in cities where there are no formal public bus or rail systems.


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in the external environment along with the internal working of the public transport-sub-system.

No doubt, the NUTP is an excellent means for cities to get started with a pro-public transport planning approach, however, none of the states have formulated aSUTP (state urban transport policy) to take forward the objectives of the NUTP andensure they get translated in urban areas. Every state should develop an SUTP, whichis a further detailing of the NUTP and reflects priority areas for the state and its cities,and give guidance to cities to set and achieve the goals of sustainable transportation.Some of the key points that should be highlighted in the SUTPs have been mentionedbelow.P Increasing the share of public transport by a given percentage by a target year (for

instance, increase share of public transport trips in a city to 85% by 2030) in citiesP Improving the availability, efficiency, and quality of public transport on a continuous

basics.P putting in place supporting travel demand management measures like personal

vehicle restraint measures, and so on.P Integrating land use and transport planningP Improving traffic and traffic managementP Regularly monitoring public transport performance and publishing results of the

sameP Achieving intermodal integration wherever necessary and possibleP Using suitable technologies that facilitate improved public transport service deliveryP Progressively reducing the burden on environment by monitoring energy useP Developing data systems and human capacity to tackle the various aspects related

to urban transportP Highlighting public transport as a key aspect of a city’s developmentP Identifying the requisite fiscal policies and markets for improving urban

transportation services

Cities should detail out actions based on the above-mentioned policy guidelines andensure that these are a part of their transportation plans. States should sanction fundingto cities on the condition that the plans developed by them should help in achievingthe policy objectives.

At present there is virtual absence of a state-level apex body on public transportwhich could do policy formulation, prepare plans, provide technical assistance to thecity authorities, arrange financing for projects from various sources, monitorperformance of public transport, and carry out capacity building. Therefore, a dedicatedpublic transport division needs to be set up to function as a unit in the state transportdepartments to assist cities in these activities and also city governments in gainingaccess to funds.



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Constituting a transport cell in the ULB

It seems logical and sensible for a city to take responsibility for planning and managingits urban transportation system, particularly planning, managing, and running its publictransport systems. Either through initiative of the state governments (as in case of Surat)or by self initiative (as in case of Indore), other city authorities in India should alsotake on the responsibility of augmenting and managing their public transport systems.This can be done in collaboration with the state governments, particularly, the proposedpublic transport division. To start with, state governments should empower citymunicipal authorities to address urban transportation functions, particularly publictransportation systems. Setting up of an ‘urban transport cell’ in the ULB with theassistance of the state governments should then be done. This unit could comprisetransport planners, engineers, and experts in the field. Drawing help from the proposedpublic transport division, the urban development authorities, research institutions,academia, and external consultants, this cell should perform the functions listed below.P Prepare an integrated land use and transport infrastructure plan for the city. This

would include activities like the following.• Deciding on an optimal modal mix for the city• Assessing public transport demand• Identifying routes, nodes, etc.• Collecting data

P Facilitate the provisions of public transport. This would include the following.• Entering into contracts with private operators• Bringing in the necessary technological improvements• Measuring performance of public transport regularly and publishing results• Regulating informal/paratransit modes

P Reassessing the present not-so-favourable taxation structure for urban buses togetherwith the state governments

P Initiating and conducting capacity-building exercisesP Coordinating between service providers and infrastructure providers. This should

be done by putting in place a mechanism on the lines of the UMTA (unifiedmetropolitan transport authority). Such a mechanism is being attempted in citieslike Bangalore, Hyderabad, and Chennai. Here, a committee, having the requiredlegal backing (say through a bill passed in the state legislative assembly), shouldbe set up to address all urban transport-related concerns of the city. Therecommendations/instructions of this Committee should be binding on all theconcerned departments. This Committee could be chaired by the MunicipalCommissioner of the city and have officials from relevant departments like urbandevelopment, roads, police, pollution control, transport, and finance, andtransportation experts as its members, as suggested in the Andhra Pradesh Billto provide for the establishment of a Metropolitan Development Authority for


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Hyderabad. Collectively, this Committee should have a deep understanding ofthe city’s transportation needs and systems, its problems, and potential solutions.This would provide the much required forum for coordinating, planning, as wellas monitoring public transport in the city. Though such a model has beenrecommended for more than a million cities by the NUTP, smaller cities shouldalso set up an urban transport cell at the ULB level and move gradually towardssuch a mechanism.

P Carrying out regular consultation meetings with stakeholders: The urban transportcell should ensure that frequent discussions amongst the stakeholders are held. Thestakeholders should include citizens groups, all relevant departments like urbandevelopment, police, finance, pollution control, municipality, state transportdepartment, and JNNURM representatives (where applicable). Working with variousstakeholders would give access to useful and substantial knowledge and help inidentifying problems and solutions in a better way.

Goals and indicators for sustainable public transport services

Setting goals and indicators to measure sustainability would provide cities with thenecessary guiding framework to progressively improve their public transport systems.The MoUD has recently listed the indicators to measure the level of service of urbantransport in Indian cities. MoUD is currently in the process of finalizing these indicatorsin consultation with academia and research institutes, including TERI, and it is expectedthat once finalized, MoUD will ask the JNNURM cities to establish baselines on theseand work towards improving performance on each based on a set of norms.

The following goals and indicators are suggested by TERI to assess the sustainabilityof public transport services in Indian cities.

Goals for improving availability of public transport

The first and foremost goal has to be related to making public transport available tothe citizens. This can be measured by the indicators listed below.P Number of buses per 1000 people: Typically, this value should lie between 0.5 and

1.2 per 1000 population. Given the stark contrasts existing between Indian citiestoday in terms of public transport availability, cities having virtually no publictransport systems should progressively target reaching the 0.5 target in the next2–3 years. The other larger cities already having bus systems in place shouldmove towards the higher target. It is important to note here that this indicatoralso depends on a number of factors like the city’s modal share, capacity of buses,their utilization, and the average length of bus journeys undertaken in the city.Hence, each city should assess its own requirement.

P Percentage modal share of bus trips: This is measured by dividing the number ofpassenger trips by bus over a given period (usually an average weekday) by the



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total number of passenger trips in the urban area over the same period. Thisinformation is best obtained from the results of a household survey carried outas part of an urban transport study. There is no one norm that is establishedfor this indicator; however, countries demonstrating sustainable transportationsystems have targeted a modal share of at least 70%–80% for publictransportation trips in their cities. Indian cities had an average of 60% as publictransport trip share, which has fallen to 45% in many cities. Cities should targetarresting this decline and set a target of increasing the public transport sharesay by 5% each year from now till 2015.

Goals for improving accessibility

Improving accessibility is a continuation to the first goal and seeks to make thepublic transport system physically accessible for all categories of transport users.Access would include two aspects—provision of proper and complete road networksand public transport networks in a city ensuring sufficient coverage as well asconvenient physical access to public transport services by the users. The followingis one indicator to assess accessibility.P Percentage of population in an area/zone having access to public transport services

within 500 metres of walking distance: The higher is the percentage of population,the better it would be. Anything above 80%-85% is considered to be goodaccessibility. All cities should move towards this target by ensuring that the publictransport systems serve well all areas of the city.

Goals for improving transport performance for customer convenience

Even if public transport is available and easily accessible, many would not use it at allor use it occasionally due to various factors. This particular goal includes actions thatare necessary from the viewpoint of the public transport user. Indicators to measurethis goal would include the following.P Reduced congestion/overcrowding in busesP Reduced incidents of eve-teasing, thefts, assaults and so on, in busesP Reduced bus accidentsP Reduced passenger complaintsP Facilities for the physically challenged on public transport vehicles and stationsP Well-maintained clean buses, bus stand premises, and polite crew behaviourP Easy-to-understand and quick access to information regarding bus schedules, routes,

delays, and so on for public transport servicesP Online information on movement of busesP Eighty per cent of all services running at a headway of not more than 15 minutes

during weekday peak periodsP Reduced waiting time in peak hours between 5–7 minutes


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P Provision of services (main and feeder) so that all households in a city are within amaximum of 30 minutes of travel time by public transport from the regular tripgenerating points like schools, hospitals, employment centres, colleges, and shoppingareas

Under this goal, the first four indicators are qualitative, and it is difficult to setnorms for these. Therefore, cities should target a progressive reduction in each of theseindicators and target zero levels for each as the ultimate goal. This would involve puttingin place proper enforcement measures and passenger-friendly facilities. For the nextfour indicators, cities should progressively aim at achieving a 100% target for coverage.Some of these could even be made part of the conditions in the permits issued tooperators. The remaining indicators can be measured quantitatively, and cities, togetherwith the service operators, should target achieving the prescribed targets. The lastindicator, in particular, measures the attractiveness of public transport in terms of traveltime. Cities should plan their services, scheduling, and networks so that a reasonablejourney time (say 30–40 minutes in larger cities) and (10–20 minutes in smaller cities)should be possible. This may lead to actions like creation of dedicated bus lanes,development of good services, and so on in the city.

Goals for improving operations and management

This is a crucial aspect as it will help operators cut down on losses and ensure financialsustainability. Indicators to measure this goal would include the following.P Frequency and effectiveness of training and capacity-building modules organized

for various levels of staffP Reduced operational costP Reduced breakdown rateP Increased fare collection efficiencyP Reduced employee absenteeismP Reduced staff per vehicleP Increased fuel efficiencyP Improved fleet utilization

Many of these indicators (and more) are already being monitored by the STUs (statetransport undertakings) and reported by the ASRTU (Association of State RoadTransport Undertakings) Though there are no norms or targets that exist for these,this aspect could be looked into by the urban transport cell and the operators. Thisaspect has been discussed in greater detail in the section detailing out actions to achievethese goals.

Once the baselines on selected parameters have been established with the help ofdata collection, cities should gradually move towards progressive improvements. All



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these parameters should be monitored over time and across operators. The resultson performance of each parameter should be published annually and this will givecitizens an opportunity to get more involved in the process. Such a process will enablethe city to assess its own status of public transport service delivery and also enableinter city comparison. Central or state governments should set norms with respect toeach of the identified indicator and cities should measure public transport performanceover a period of time, with reference to those norms. Cities having similar characteristicsshould have the same norms. However, classifying cities category-wise and definingand setting those norms is a fairly extensive exercise that is outside the scope of thisstudy.

Developing an overall mobility and transport infrastructure plan for the city

Based on the information collected under various heads as discussed earlier, the cityshould draw up a comprehensive mobility plan which should reflect the goals ofsustainable transportation and fit into the overall city development plan. This planshould be in line with the state urban transport policy objectives. Subsequent to this,an infrastructure development plan should be made which should spell out theinfrastructure requirements for various user categories, especially the non-motorizedmode users, pedestrians and public transport users.

Specific recommendations for achieving the goals

The action plan to achieve the goals of sustainable public transport services wouldbroadly include the following actions.P Improving availability of modes by using private sector participation to acquire and

run buses based on carefully drafted agreementsP Improving access by planning for the more vulnerable user groups like the urban

poor, the elderly, and disabled, as well as improving bus designs and providingdifferentiated services

P Improving operations by better route planning, rational fare setting, using moderntechnologies, giving priority to public transport, and better intermodal integration

P Improving internal efficiencies, monitoring performance, and setting benchmarksP Becoming ‘customer oriented’ through trainings, customer satisfaction surveys,

enforcing the citizens’ charters, and so on.P Identifying supporting demand management strategies to discourage use of private

vehicle and encourage usage of public transport modesP Identifying financing options to implement improvement actionsP Strengthening HRD (human resource development) and capacity building at various

levels in various organizations


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Training and capacity building

In order to implement the above actions, training and capacity building at variouslevels, are prerequisites. Topics should include planning, data collection,performance monitoring, use of new technologies, modern business andmanagement practices, financing of options for public transport, use of moderntechnologies, tackling of labour and staff issues, etc. Even the HRD in the currentpublic transport service organizations would require better personnel policiesincluding training, recruitment, incentives, employees’ grievance redressalmechanisms, sensitization to customer needs, etc.

Preserving the share of public transport trips in the small and medium towns

Recognizing that most small and medium-sized cities in India do not have formalmodes of public transport, it is recommended that the urban transport cell in thelocal body also register and bring together these informal services (autorickshaws,taxis, mini buses, vans, and so on) under its ambit. The transport performanceparameters described for buses earlier could be used for analysing the performanceof these modes as well. Eventually, a separate category of performance indicatorsshould be worked out for this category of modes. Where auto rickshaw and taxiservices, etc., run on a shared basis, a separate category of permits could be createdfor them by the state government, which could be the equivalent of the stagecarriage permits for public buses. These would lay down routes, fares, etc., for theseIPT (intermediate public transport) modes and make them a part of the formalpublic transport delivery system. In cases where auto rickshaw and taxi servicesare not used on a shared basis but used personally, aspects like fare structures,ease of hailing these vehicles, safety of travel and driver’s behaviour towardspassengers, etc., could become the evaluation parameters. Permits for these modescould be modified to factor in all these concerns. Integrating IPT and formalmodes, activating citizens groups to put pressure on local governments for improvedservices and putting in place measures to discourage growth of private vehiclesare other measures that could be implemented.

Data collection

It is extremely important to note that before a city embarks on such an exercise,it would need to establish a baseline of relevant data using primary and secondarysources. Typically this data would include data on the city, the travellers andtheir travel needs and patterns, characteristics of available modes, transportationinfrastructure, existing laws and regulations, organizations involved, etc.The urban transport cell should collect the above-mentioned data so that expertscan use this information while planning the required improvement strategies.



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Conclusion

Finally, the role that a city authority or an ULB needs to play in order to ensuresustainable transportation in the city cannot be emphasized enough. European anda few Latin American cities have demonstrated world class transportation systems,owing to the initiatives taken by local city officials like the city mayor, who hadthe requisite will power and legal powers to bring about a radical change in thesystem. Bogota and London stand out as examples of ‘sustainable cities’ merelybecause of the interventions made by the city authorities in revamping the publictransportation systems in these cities. Unless our governments also start thinkingon these lines and give public transport and non-motorized transport the attentionand resources it deserves, it will be difficult to make our urban areas sustainable.City authorities should be given the requisite powers and training to become soundmanagers of public transport services.

Summary: Buildings

Introduction

India is one of the fast-growing economies of the world showing an equally highgrowth in the construction sector of 10% and above. The existing approach ofbuilding design and use in urban India symbolize unrestrained consumption ofenergy and other natural resources, with a consequent negative environmentalimpact. The building sector in India, in general, faces a number of sustainabilitychallenges in the existing set up of policy framework and market forces. The primechallenge across the country is the new building stock which is coming up at avery fast pace. They are not built on the principles of green design and are highlyresource intensive. Also, the country has a huge building stock which needs to beretrofitted to make them sustainable to the extent possible. Although piecemeal,yet some efforts have already started at various scales to start a movement ofgreener and more sustainable buildings.

Defining sustainable buildings

Sustainable buildings are often termed as green buildings. TERI defines, ‘A sustainable/green building is designed, constructed, and operated to minimize the totalenvironmental impacts while enhancing user comfort and productivity’ (MNRE andTERI 2008). A sustainable building thus looks at the following aspects in an integratedmanner (MNRE and TERI 2008).P Site planningP Building envelope design including optimal design of roof, walls, and windows in

order to reduce heat gain during summers and heat loss during winters


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P Passive architectural systems design to reduce dependency on electrical/energy-intensive comfort systems

P Optimized building system design for minimal energy consumption (HVAC, lighting,electrical, and water heating)

P Integration of renewable energy sources to generate energy onsiteP Optimization of building and surrounding (site) water consumptionP Water and waste management including

• Resource recovery from waste (through segregation, recycle and reuse)• Recycling and reuse of waste water

P Selection of ecologically sustainable materials including• Locally available/used materials• High recycled content materials• Materials with high possibility of recycling

P Indoor environmental quality including• Noise levels• Indoor air quality levels

P Water quality

Recommendations

Based on the best practices followed nationally and internationally and the variouschallenges and barriers in the existing building scenario towards the path ofsustainability, this study attempts to integrate the existing efforts and to strengthenit further with a set of policy tools, means for capacity building, implementationprocess, role of corporates and public private organizations in tuning the marketforces for greener products and technologies, etc. The recommendations made onthis are briefly stated below:

Policy instruments

A set of 30 policy instruments have been analysed and their potential and effectivenessin the Indian context has been studied. It is observed that there is a strong need tohave a mix of instruments such as new bye-laws (incorporating building codes, EnergyConservation Building Code), appliance labelling, rating system, mandatory/subsidizedaudits, public demonstration buildings, education and awareness.

Implementation strategy

P A national green building policy should be made.P All states should issue a statutory order to make a mandatory provision that all

public buildings to be built in future should be green buildings, at least ECBC(Energy Conservation and Building Code) compliant, and to make a plan for energy



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and water audits of all prominent government buildings which should be retrofittedwith energy and water conserving measures.

P Procurement legislations for energy and water saving equipment, appliances, fixturesshould be introduced for all public buildings in at least Class I and Class II cities.

P All new construction in all central government ministries should necessarily follow greenbuilding principles and for existing buildings, provisions for energy and water auditsand their retrofit, based on the recommendations of the audits, should be made.

P Each development authority should amend the building bye-laws of municipalitiesand corporation coming under their respective jurisdiction in a defined time-frame.The new set of bye-laws should be based on the principles of green buildings andalso the Energy Conservation and Building Code. For small towns, theseamendments could be simpler and implementable given the limited capacities ofsuch towns.

P Create a new wing in the local government especially dedicated to green buildingsor convert the existing units of the Energy Efficiency Cell’ (wherever present) to aholistic green buildings’ cell. This wing would take inputs from building centres(wherever available), research centres, state designated agencies of new and renewableenergy besides giving building approval.

Capacity building

Capacity building of the respective organizations at state and city level to implementthe various policy measures needs to be strengthened. This will include appointmentof more professionals with adequate expertise to check the compliance of the newbuilding bye-laws and also regular training programmes for the evaluators and officialson the aspects of green buildings, various codes including ECBC

Education and awareness

P State government websites and city government websites (in case of big cities) shouldbe linked to a dedicated section on green buildings. The site should give relevantinformation on the benefits of green buildings, building codes, ECBC, bye-laws,technical guidance for designing and constructing green buildings, green productsavailable in the market and their payback period, BEE labelled products, list ofcertified auditors, designers and consultants giving such services and a brief of majordemonstration projects in the state and nation.

P Integrate the existing engineering, architecture and diploma courses curriculum withthe principles of green design to overcome the lack of knowledge and expertise ongreen buildings.

P An extensive consumer awareness programme focused on economic andenvironmental benefits from green buildings should be launched though variousmedia like radio, television, hoardings, print media, etc.


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P Extensive awareness programmes for government departments should be made atcentral, state and city levels.

Public private alliances, role of corporates and government bodies in capacity building, and

market transformation

P Market transformation (a holistic, market-based approach designed to promote themanufacture, purchase) and use of sustainable/green products, services, and/orpractices should be culled out by adopting various policy measures.

P Involving organizations like CIDC (Construction Industry Development Council),NAREDCO (National Real Estate Development Council) , Builder’s Associationof India, Council of Architecture, (CII (Confederation of Indian Industry), TERI,etc., in developing the required capacity building for mobilizing green buildingmovement.

P Corporate players in the private sector finding strategic business opportunities inpromoting sustainability in the residential and commercial sector. Some of theseopportunities are listed below.• Producers may manufacture and promote resource-efficient appliances such as

bulbs and other lighting equipment, fans, coolers, air-conditioners, refrigerators,and geysers, water-efficient fixtures, materials with lower embodied energy, etc.

• Corporates can commit themselves to turn their offices and industries as greenbuildings.

• Financial institutions can work out innovative financing packages for greenbuildings/retrofits

• Multinational companies can work on technology transfer for efficient equipment• Testing, certification, and labelling of various products as recommended under

ECBC could be taken up on priority by the private sector.• Training/capacity-building and awareness campaigns could be taken up for in-

house employees as well as for CSR (corporate social responsibility) activities• Operation and maintenance protocol for all equipment that consumes energy and

water should be in place.• Regular energy and water audits and performance enhancement should be

mandated• Purchase preference policy for labelled and green products (air-conditioners,

refrigerators, tube lights, water fixtures) should be incorporated.

Research and development in new construction technologies and materials and establishment

of testing labs

For the successful implementation of various bye-laws and building codes targeted atmaking buildings more sustainable and energy efficient, it is essential that greenbuilding materials, equipment and systems are available, tested, and reasonably priced.



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Significant investment is required in R&D (research and development) to achieve this.It is also essential to establish more testing labs across the country. Organizations suchas IITs, NITs, private engineering colleges, TERI university, building centres, BMTPC,and central research institutes should be encouraged to take this up and sufficientfinancial support and incentives for the same should be given.

Baseline development

Before setting any targets and to effectively implement green buildings programme,the development of a baseline and a benchmark for various typologies of buildings,both air-conditioned and non-air-conditioned and mixed types in each city/townis a prerequisite. A building bye-law has to make some mandatory compliance ofminimum benchmarks for building performance. To achieve this, the following isrecommended.Phase 1: In this phase, all cities and towns could link their built-up area (propertytax data) and electricity consumed (utility data) and develop a certain benchmark/baseline for various building typologies.Phase 2: In this phase, each city based on its size and capacity to fund this exerciseshould go for a detailed survey-based baseline development of various buildingtypes and uses. Adequate sample size should be selected and actual fieldmeasurements should be taken for this exercise.

Indicators

A list of indicators is suggested to be maintained at each ULB level to gauge theprogress made in green building movement and to accordingly plan and target forfurther developments. Baseline development shall initially be done for these indicatorsand thereafter targets shall be made for each of them for the respective urban centreby the ULBs depending on the baseline and the market forces. Table 4 shows some ofthese indicators.

The MoUD has recently launched a set of standardized service level benchmarks incontext of performance management of urban services. These urban services, however,currently covers only five basic services.1 Water supply2 Sewerage3 Solid waste management4 Storm water drainage5 Urban transport

Buildings being huge resource guzzlers and a key component in achieving overallsustainability, there is therefore, an urgent need to extend these benchmarks to


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Table 4 List of indicators to be maintained at each ULB level

Indicator Unit Definition

EPI of new residences kWh/ m2 It is a measure of the total electricity

consumed per m2 by a

building annually. An average EPI

will be calculated for all the new

residential buildings under two

categories of air-conditioned and

non air-conditioned

This parameter will indicate whether the EPI is reducing or not. The lower the EPI is when compared to the baseline

EPI of residences, the better it is. EPI for air-conditioned and non air-conditioned buildings will be different.

Data requirements

Electricity used by each new residence annually kWh

Built-up area of the residence m2

EPI of residence (E) kWh/ m2 '=a/b'

EPI of new residences kWh/ m2 '=average of all the Es'

EPI of new non-residential buildings kWh/ m2 It is a measure of the total electricity

consumed per m2 by a building

annually. An average EPI will be

calculated for all the new non-


categories: air-conditioned and non-

air-conditioned

This parameter will indicate whether the EPI is reducing or not. The lower the EPI is when compared to the baseline

EPI of non-residential buildings, the better it is. EPI for air-conditioned and non air-conditioned buildings will be

different.

Data requirements

Electricity used by each new non-residential building annually kWh

Built-up area of the building m2

EPI of building (E) kWh/ m2 '=a/b'

EPI of new non-residences kWh/ m2 '=average of all the Es'

Percentage of GRIHA-certified buildings % It is a measure of the total number of

GRIHA certified buildings as

percentage of the total number of

buildings

This parameter will give an indication of the number of environmentally rated buildings. Higher percentage will

show a healthier trend of green buildings



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Table 4 Contd...


Data requirements

Total number of buildings within the ULB limits Number

Total number of GRIHA certified buildings within the ULB limits Number

Percentage of GRIHA certified buildings % '=(b/a)*100'

Percentage of LEED-certified buildings % It is a measure of the total number of

LEED certified buildings as


buildings


show a healthier trend of green buildings

Data requirements

Total number of buildings within the ULB limits Number

Total number of LEED certified buildings within the ULB limits Number

Percentage of LEED certified buildings % '=(b/a)*100'

Percentage of green public buildings and their average EPI %, kWh/ m2 It is a measure of the total number

of green public buildings (existing

and new) as percentage of the total

number of public buildings in the

ULB limits

This parameter will reflect the extent to which public buildings are constructed and retrofitted on the principles of

green buildings

Data requirements

Total number of public buildings within the ULB limits Number

Total number of green public buildings (new and retrofitted) Number

Electricity used by public building kWh

Built-up area of public building m2

Percentage of green public buildings % '=(b/a)*100'

EPI of public buildings kWh/ m2 '= average of EPI of all public

buildings'

EPI – Energy Performance Index; GRIHA – Green Rating for Integrated Habitat Assessment; LEED – Leadership in

Energy and Environmental Design; kWh – kilowatt-hour


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buildings sector as well. The above set of suggested indicators could be the first stepin achieving the desired objective.

Summary: Power

Introduction

Electricity is an essential component of energy for ensuring the economicdevelopment of a country. It is required in all facets of our life and has beenrecognized as a basic human need as it affects our day-to-day life. At present, theelectricity sector in India in general and in the urban centres in particular issuccumbed to various sustainability challenges and issues. Rapid industrialization,commercialization, and urbanization of the Indian cities have led to an increasein the requirements of electricity resulting in a deficit of power supply. Provisionof equitable access of electricity to all sections of society especially the urban poorhas become a formidable task. Lack of access and poor quality of supply andservices has increased the use of diesel generators which are not only a major sourceof noise and air pollution thereby affecting on public health adversely. Further,electricity requirements have been intensified over the years due to the hightechnical and distribution losses and wastage of electricity on account of adoptionof inefficient practices with regard to the usage of electricity.

All these factors necessitate the need to emphasize electricity services in an urbancontext. It is important to note that electricity is a subject in the concurrent listof the Constitution of India, that is, both the Union and the state governmentscan formulate policies and laws on the subject. However, the legislative policiesand acts governing the power sector in India assign no par ticular roles,responsibilities, and authority to the local bodies with regard to electricity servicesexcept the provision of street lighting, the only component in electricity servicesunder their purview. Nevertheless, the importance of ULBs in facilitatingimprovement in the delivery of electricity services cannot be underestimated. Itcan provide an important supporting role to the utility through a certain set ofactivities that can help in attaining sustainability in the sector.

Also, these roles and objectives are in line with JNNURM which aims at ‘reformdriven, fast track, planned development of identified cities with focus on efficiencyin urban infrastructure/services delivery mechanism, community participation andaccountability of ULBs/parastatals towards citizens’. It provides incentives to citiesto undertake institutional, structural, and fiscal reforms, which are necessary toimprove service delivery systems that are sustainable in order to create‘economically productive, equitable and responsive cities’.



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Defining sustainable delivery of electricity services

Based on the literature review of good practices and measures adopted to enabledelivery of electricity services in urban areas more sustainable, the following definitionfor a sustainable power system in an Indian city was arrived at:

‘An electricity supply system that ensures adequate, reliable, and affordable electricityto all citizens with focus on energy efficiency and utilization of locally availablerenewable and non-polluting resources, wherever feasible, and also capable of cateringto the future growth of the city.’

Framework for analysing sustainable electricity system in urban India

The sustainability parameters identified thereof that are essential to make delivery ofpower services sustainable in a city are presented in Table 5.

Table 5 Parameters essential to make power services sustainable

Parameter Description

Access to electricity In order to make cities sustainable it is important to ensure access to electricity to

all the sections of the society especially the urban poor in an equitable manner. In

order to ensure access, it is crucial to understand the planning procedures and

approaches adopted by the service providers with respect to demand estimation and

expansion of distribution system.

Energy efficiency Promotion of efficiency in the delivery of services by reducing losses and promotion

of efficiency in usage or DSM (demand side management) acts as one of the least

cost options for meeting the demand of electricity. This includes reduction in T&D or

AT&C losses (including theft) in the city and increase of awareness with regard to

energy efficient appliances and incentives for the promotion of the same.

Impact on the environment To meet the increasing demand of the city there should be a well-balanced mix of

supply sources. Since electricity generation through the use of fossil fuel leads to

the emission of GHGs and other local pollutants, it is required to generate electricity

through locally available and renewable sources of energy.

Quality of supply and It can be defined as the end result of utilities planning, designing of network,

quality of services operation and service management which determine the degree of satisfaction of

the consumer. This parameter includes the following: planned interruptions, that is,

load shedding, unplanned interruptions, voltage profile, consumer redressal

mechanisms

Role of urban local body This report explores the role that an urban local body can play in order to achieve

sustainability in the provision of electricity services in the city in light of the above-

identified parameters.

GHG: greenhouse gas; T&D – transmission and distribution; AT&C – aggregate technical and commercial


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Recommendations

Based on the in-depth sectoral analysis, through literature review, city visits andinteractions with various stakeholders, the study recommends the following in orderto ensure sustainability in the provision of electricity services.

ULBs as energy-efficient consumers

This should be the first step for the local bodies in order to contribute to theimprovement of power services in the city by becoming an efficient consumer. ULBsbeing a bulk consumer, almost consuming 8%-10% of the total electricity suppliedby the utility, can significantly bring down the consumption of power in the city byundertaking demand side measures such as efficient public lighting system, efficientwater pumping system, etc. Efficient public lighting system can be achieved throughincorporation of efficient designs, metering, monitoring and selection of energy efficientlamps, etc. Efficient water pumping system can be achieved through proper sizing ofthe pump, selection of energy efficient pumps, and so on.

To undertake the conservation activities local bodies can also form an in-house DSM(demand side management) cell (as done by the SMC (Surat Municipal Corporation).SMC, saved approximately Rs 350.23 lakh/annum or 79.40 lakh kWh/ annum due tore-engineering of filtered water transmission routes and adoption of other energy-savingmeasures, which not only assess the potential but also implement these activities andlay down the road map for further decrease in inefficient consumption. These measureswill not only help the utilities due to reduction of inefficient load but also the localbodies, as electricity cost in certain cases constitutes more than 50% of themunicipality’s budget.

ULBs as planner of the city

It has been generally seen that the urban local authorities prepare the city developmentplans in isolation and do not consult the infrastructure providers such as electricity,telecommunications, etc. while planning the cities. With the increase in differentinfrastructure services and multiple service providers for these different infrastructureservices, the involvement of the infrastructure service providers in the planning processhas become inevitable. Also, it is conjectured that involvement of utilities in thepreparation of city development plans would help the utilities in preparing the longterm distribution master plan.

To plan the city in a sustainable manner it is required that local bodies while layingnew infrastructure must develop trenches in the side of roads for the laying down oflines of different infrastructure services such as electricity, telecommunications, andso on. This would help in the systematic development of the cities and would requireless time for restoration of services by service providers in case of any technical fault.Also, GIS map may be prepared for all the infrastructure facilities and made available



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on price to the concerned entity with due consideration to the security issues involvedin this.

Further, if a plan related to the upcoming industrial/ commercial/housingestablishment is approved by the ULB, it should be forwarded to the utility, as it willaid in the timely and proper planning/expansion of the power distribution structure.It is important that ULBs devise some mechanisms as part of building bye-laws sothat while approving large building/colony plans, the builders are asked to providepower sourcing details which are then forwarded to the utilities. This would informform where large consumers/ builders would be sourcing power, that is, through theirown generation in the form of captive power plants or through distribution utility. Thiswould help the utilities in getting timely information about the upcoming plans andwould help them in proper planning of services.

ULBs as coordinator

As mentioned above, with the increase in services and providers of these services,coordination between different infrastructure providers has become important forcarrying out day-to-day activities. For instance, a body or committee can be formedby the ULBs, headed by the principal secretary of municipal boards involving headsfrom different departments/infrastructure providers to ensure timely execution ofactivities. This committee can also help in facilitating the planning process asdiscussed above.

ULBs as agent for providing equitable access to services

With increasing urbanization in the cities, provision of access to basic infrastructureservices such as electricity, especially to urban poor has become a formidable task.About 40% of the world’s poor living in urban areas lack access to the basic urbaninfrastructure services including electricity. Land tenure issues, illegal colonies/slums, etc. prevent quality services to certain consumers, which lead to creationof informal market or theft of these services, creating inefficiencies in the system.

One of the ways to address this issue is through the introduction of prepaidmetering for slum electrification and use of smart cards for providing the subsidiesdirectly to the urban poor. The prepaid metering can also be extended to othersegments of society and incentivizing it by proposing preferential tariff to prepaidmeter consumers. It would be a win-win situation for all the stakeholders involved—consumers, utilities, and the government. The benefits of such a system would bethat it would improve the revenue stream of the utility, decrease the AT&C lossesand also reduce the cost of service in the slums. Also, the government would beable to directly subsidize these consumers thus increasing the transparency indelivery of subsidies. On the other hand, consumers would benefit from legalconnections and would not be required to pay high upfront payment in terms of


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security charges. Implementation of such a system also promotes equity in thesociety.

Further, utilities can also provide a single-point supply to slums or such clustersand may make use of the franchisee for providing quality access to them.

ULBs as promoters of renewable energy

ULBs have an important role to play in order to promote renewable energy generation.As discussed, local bodies generally account for approximately 8%-10% of totaldemand of electricity in the city. If conscious efforts are undertaken by the localauthorities to use renewable sources of generation such as solar to meet their ownrespective demands, they can provide a major support to the utility and the city inmeeting city’s electricity demand. This can also facilitate in creating awareness andthe promotion of solar technologies. Local bodies may use any unutilized or vacantland to generate power by using solar photovoltaic/rooftops. Power generated fromsolar energy could be utilized for supplying power to street lighting, traffic signals andcan also be fed into the grid.

Also, property tax rebates may be used as an option to encourage consumers to adoptsolar technologies especially solar water heating systems.

Further, an integrated planning approach is required on behalf of local bodies inorder to facilitate waste-to-energy projects, wherein suitable provisions such as landavailability are provided for both the processing of waste and installation of power plant,making the project more viable and cost-effective.

ULBs as awareness raisers

ULBs can support the utilities and other agencies involved in the creation of awarenessamongst consumers and can encourage others through amendments in the bye-laws.By amending bye laws, it can be made compulsory for large consumers such asgovernment offices, hospitals, schools, etc., to adopt certain energy-efficient measuressuch as use of solar water heaters, use of CFLs (compact fluorescent lamps) in placeof incandescent bulbs, etc. In case of small /domestic consumers it can encourage themto adopt energy-efficient measures or renewable sources of supply by incentivizing, theseconsumers through rebates in the property tax. Consumer awareness campaigns canalso be carried out to curb power theft in the cities and where power theft cases arehigh, it is required that ULBs may approach the state government to constitute specialcourts as per the provision of the Electricity Act 03 for the speedy trial of offences.

ULBs as accountable and responsible consumers

In order to reduce AT&C losses of the distribution utilities and to improve theefficiency of their operations, ULBs, being bulk consumers, are required to act asa responsible consumer by timely payment of electricity charges or dues to the



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utilities and judicious use of electricity. This would set an example for otherconsumers and can help the utilities in bringing down the losses significantly. ULBswith support from state governments can also facilitate the creation of alternativegrievance redressal forums similar to the Public Grievance Cell in Delhi, in orderto improve consumer satisfaction and quality of services. To start with, grievanceredressal cells must be established in the mega cities and then should be consideredfor million plus cities. Further, it can facilitate mechanisms to represent consumersby creating an ECAC (electricity consumers advocacy committee) for representingconsumers before the respective ombudsman, state regulatory commission, the ATE(Appellate Tribunal for Electricity), the high court and Supreme Court in mattersinvolving public interest.

Indicators

The indicators that needs to be monitored in light of the above recommendations arediscussed in Table 6.

With regard to quality of supply and services, respective state electricity regulatorycommissions have laid down standards of performance guidelines/parameters for theutilities and these must be adhered to.

Capacity building

In order to implement these recommendations, it is very essential that appropriatetraining is being imparted to the concerned stakeholders. Some of the areas identifiedare mentioned below.P Capacity-building programmes are required for local bodies to sensitize energy

efficiency and demand side measures/ interventions that can be undertaken in orderto promote energy conservation.

P Capacity-building programmes are required to sensitize local bodies with regardto various renewable energy technologies

P Capacity-building programmes are required for the local bodies to make them wellversed with the use of modern tools and technologies that may assist them in theirwork like the MIS system.

P Capacity-building programmes are essential to sensitise local bodies with regard tovarious provisions of the acts and the policies of the government related to the powersector.

Summary: Governance

Introduction

Good governance is a prerequisite for achieving sustainability. Governance forsustainability involves integrating the three pillars of sustainability: environmental,


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Table 6 Sustainability indicators in the power sector

Indicator Energy consumption

P Water pumped in raw water pumping stations (kWh / kl [kilowatt-hour per kilolitre])

P Water treated at treatment plants (kWh / kl)

P Water pumped at booster pumping stations (kWh/kl)

P Water pumped from tube wells (kWh/ kl)

Definition Energy consumed in each of the above facilities per month) /Total quantity of water

pumped or treated in a month

Usefulness Energy efficiency is an important parameter in the operational performance of the water

supply system. By monitoring the trend of energy consumption per unit of output at each

stage, energy costs can be controlled

Benchmark P Combined rated consumption of all electrical equipment (An energy audit can provide

the appropriate benchmark for energy consumption)

P Trend (by month)

Implementation P Monthly records of electricity consumption should be maintained

P The indicator should be monitored monthly for each facility

Indicator AT&C losses

Definition Ratio of difference between energy input (MU) to the system and energy whose bill has

been realized (MU) to energy input (MU) to the system (MU input-MU realized)*100 /MU

input

Usefulness Maximizing availability of electricity to legitimate consumers

Benchmark Target set by GoI: reduction in AT&C losses to 15% by the end of Eleventh Plan

Implementation P Quarterly or yearly records must be maintained

P To be undertaken by utilities and submitted to SERCs and local authorities

Indicator Access to electricity

Definition Connection for supply of electricity

Usefulness Electricity being a basic human need, it is important to monitor its access

Benchmark The ministry of power has set the target of 100% access of electricity

by 2012. As per Census 2001, 44% of Indian households have no access to electricity.

Implementation P Quarterly status of access must be maintained

P To be undertaken by utilities and submitted to SERCs and local authorities

Indicator Green indicator

Definition Extent of penetration of renewable energy sources in meeting energy needs

Usefulness Adoption of renewable technologies is an important tool for mitigating

adverse environmental impacts.

Benchmark Surveys required for assessing the potential of renewable electricity in the Indian cities to

establish appropriate benchmarks.

Implementation P Yearly records must be maintained

P To be undertaken by state nodal agencies

kWh / kl – kilowatt-hour per kilolitre; SERC – state electricity regulatory commission



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social, and economic, within the framework of governance processes and toadminister the same to achieve sustainable societies.

A number of Indian cities are becoming unsustainable. Due to populationpressures, many have reached a point where their urban service delivery systemscannot cope with the demands put on them. Services and the quality of life incities are under tremendous stress.

The challenge is to incorporate in a conscious manner, future sustainabilityconcerns in our policies and development programme. A good governance systemis thereafter required to ensure delivery of services in a transparent, equitable andsustainable manner.

Defining good governance

Good governance has been described in different ways by development agenciesinvolved in urban governance. It is difficult to arrive at an ideal definition of ‘goodgovernance’. The UNESCAP definition for good governance comes closest to acomprehensive understanding of governance issues in the Indian context. It definesgood governance as one that is ‘participatory, consensus oriented, accountable,transparent, responsive, effective and efficient, equitable and inclusive and followsthe rule of law’.

Parameters of good governance

A review of the parameters of good governance identified by various developmentalinstitutions, including UNESCAP helped us in short-listing parameters of goodgovernance that are most relevant in the Indian context and in context of this study.These identified parameters of good governance are: decentralization, transparencyand accountability, public participation, capacity of the municipal bodies, and equity.

Recommendations for governance

The biggest challenge for municipal bodies is their weak capacities and thereforebuilding their capacity has to be the most immediate concern. All municipal bodiesshould carry out a comprehensive needs assessment to understand their respectivetraining and capacity-building requirements. This study recommends the followingmeasures to address common issues of governance across municipal bodies andtherefore, these recommendations would apply to all municipal bodies.

Decentralization

Identifying core functions for all municipal bodies

P All municipal bodies across the country should perform the core municipalfunctions as identified under Chapter 6, Section 47(1) of the Model Municipal


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Law.2 In addition, municipal bodies should also been involved in planning fortransport and power.• In areas falling under the Nagar Panchayats, 3 it is recommended that the core

functions should remain the Nagar Panchayat’s responsibility. The NagarPanchayats would then decide whether they to go in for private participation ortake assistance from the state agencies.

• Urban agglomerations should be brought under the purview of the nearestmunicipal body within a fix time frame. Meanwhile, a state level agency shouldensure that the quality of service provided in these areas is at par with servicesprovided in the municipal area.

• There should be greater decentralization by way of giving more financial anddecision-making powers to lower level officials in the working of municipal bodies.

Capacity

Personnel capacity

P An HR policy should be put in place by the municipal body, which would spellout remuneration and incentives, career progression opportunities, transparentperformance evaluation criteria, and so on, for its employees.

P Municipal bodies should provide for additional staff in areas requiring specializedexpertise, such as accountancy, environment, and so on.

P Demand-driven capacity building and training programmes should be designed andconducted to upgrade the skills of its employees.

P Incorporating sustainability goals in delivery of urban services would requireeducating and training people on sustainability issues.

Operational capacity

P The municipal bodies should focus on managing the delivery of service and shouldinvolved itself in the actual delivery of those services where alternate options ofservice delivery are not available or are not cost effective.

P Private participation should be considered in areas where the municipal bodies lackcapacity and where it would be cost effective to invite private participation.

P Since private participation may not be forthcoming in certain areas of municipalservice, it would be pragmatic to consider private participation in areas where thequantum of private investment required is limited but where considerable efficiencygains can be achieved. One such area is billing and collection.

2 http://urbanindia.nic.in/moud/legislations/li_by_min/ Model_Municipal_Law/indexmml.html3 The 74th Amendment, under 'Statements for Objects and Reason, Section 3 states setting up of nagar panchayats

for areas in transition from a rural to urban;



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P In areas where considerable investment may be required and where PPP (public–private partnership) arrangements are necessary, the state government shouldexplore options for viability gap funding. Also, all such PPP arrangements shouldbe governed by well defined and well monitored contracts.

Financial capacity

The financial capacity of municipal bodies should be built in phases. The mostimmediate focus should be on improving financial management practices andassessment of the existing financial position of the municipal bodies.P The first step therefore for all municipal bodies should be to adopt double entry

and accrual based accounting and regularly arrange for an external audit of itsaccounts.

P Second, the focus should be on improving its income by improved tax collectionand collection of user charges.

P User charges should be rationalized and revised periodically. The billing andcollection should be strengthened and customer-friendly payment mechanismsshould be established.

P Municipal bodies should also explore additional sources of income such as adevelopment cess or through better use of its assets.

P As a next step, the focus should be towards exploring alternate sources of incomethrough market-based instruments.

Technical capacity

P Efforts should be made to increase awareness on new technologies/practices availablefor delivery of services and the management of these services.

P National and regional institutions of excellence should be given the responsibilityof conducting regular training programmes to educate municipal officials onadopting new technologies.

Accountability and transparency

P The Municipal Disclosure Law should be enacted by all state governments. Thislaw requires municipal bodies to provide/publish audited financial statements onan annual basis. They are also required to provide information on their plannedand actual expenditure, details on subsidy received from the government, detailsof master plans, and annual budget allocated to each ward.

P E-governance initiatives need to be greatly encouraged, as it will help improvecommunication and flow of information between the municipal body and citizens.

P Performance of municipal bodies should be evaluated on certain parameters. TheMoUD has worked out SSLB (standardized service level benchmark) for variousurban services. In this report, TERI has suggested additional indictors in water and


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solid waste management, as well as a set of indicators for buildings and power. Theseperformance parameters and benchmarks should be used to evaluate performanceof Municipal bodies.

P Rating of performance of municipal bodies could be undertaken for each state basedon the SSLBs. To begin with rating can be undertaken for all municipal corporationsin a state. The purpose of such a rating would be to create competition betweenthe municipal corporations within a state to improve performance.

P A nodal officer for the redressal of consumer issue should be appointed for eachdepartment under the municipal corporation. In addition, an ombudsman shouldbe appointed, on lines of the ombudsman in the electricity sector to settle consumerdisputes.

Public participation

P The Community Participation Bill should be enacted by all state governments andimplemented by the municipal bodies. The area sabha and ward committees needto be sufficiently empowered and their roles defined.

P Citizens should be involved in planning for capital works and scrutinizing municipalbudgets.

P Citizens should also be involved in reviewing the quality of service provided byMunicipal bodies through initiatives such as the ‘Citizen Report Card’.

P Citizens should also be involved in initiatives like water and electricity conservation.This involvement of citizens would also reduce the pressure on municipal services.

P Citizens and the industry should be involved in the maintenance of public spaces.This will serve the dual purpose of improving the quality of urban life andinculcating a sense of responsibility and ownership amongst them. It will also raisecivic awareness amongst citizens.

Equity

P GIS tools should be used to organize and maintain a strong database on the urbanpoor.

P Technologies such as ‘smart cards’ need to be introduced which would do awaywith the need of tenurial security in provision of municipal services in unauthorizedareas including slums. It would also help in providing targeted subsidies to the poor.

P Inclusion of integrated housing projects for the urban poor in the larger developmentprojects in a city or a region should be encouraged. It should be ensured thatdevelopers abide by the timelines under which such projects are proposed forcompletion.



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Sustainability cell

To achieve long-term sustainability goals and to deal with climate change related issueswithin a municipal organization, a sustainability cell should be established within eachmunicipal body. The cell could be steered by a state-level sustainability committee.

The municipal level sustainability cell would develop a mandate and sustainabilityindicators as per city-specific needs and demands and pressure on the resources. Oneof the major areas for interventions being that of planning, the sustainability cell, wouldensure that every development plan or master plan meet the sustainability criteria.The functions of the sustainability cell could include capacity building of municipalstaff and the public on climate change and other sustainability issues.

This sustainability cell at the city level should also undertake an exercise to assessthe load-bearing capacity of the city (that is, how much load/population can a citycarry given its available resources).

Provision of basic services by municipal bodies for cities in transition

The 74th Constitutional Amendment Act on decentralization provides forconstitution of Nagar Panchayats for urban peripheral areas or transitioning areas.However, a number of areas still fall under the Gram Panchayats which in turnhave limited functional purview which is insufficient for the development of thecity in transition. The study recommends constituting the Nagar Panchayats as soonas possible and the necessary functions be delegated to them. The Nagar Panchayatscan take the assistance of the state agencies/parastatals in the actual delivery ofservice.

City planning

P The responsibility to prepare the city plan should be given to the municipal body.The development authority or the town-planning department should be mergedwith the respective municipal bodies and should act as a technical wing of themunicipal body with the responsibility of preparing the master plan.

P In case of non-metro cities, these plans should be integrated into the district andregional plans by the DPCs (district planning committees) .

P The MPC (metropolitan planning committee) an take care of the metropolitan areaand the urban agglomerations falling in the purview of the metro. This arrangementshould bring about the coordination between MPC and DPC to ensure equitableallocation of resources.

P The master plans should translate long-term vision into short- and medium-termactions which are monitored regularly for consistency of implementation andinvestments.


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P Holding public consultation would be a better way to ensure citizen centric planninginstead of the earlier practice of presenting the draft document for public comments.

P The master plan should address both the spatial context of planning and the socio-economic objectives of development process.

Triggering reforms

Reforms can be triggered by creating external pressure on the municipal bodies andthe city administration. This pressure should come from the following:P Informed and tax paying citizens demanding better services and greater

accountability. A prerequisite for this would be increasing awareness amongst citizenson their rights and responsibilities in urban governance.

P Competition and comparison between the performance levels of municipal bodiesshould be induced. This requires periodic publicizing of the performance ofmunicipal bodies.

P Linking all government and multilateral funding to the performance of municipalbodies on the MoUD’s SSLB indicators and reforms carried out within themunicipal area.

ReferencesMNRE (Ministry of New and Renewable Energy) and TERI (The Energy and Resources Institute).2008National Rating System: GRIHA (Green Rating for Integrated Habitat Assessment)New Delhi: TERI



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Sustainable cities

Cities are spatial manifestations of human and economic activities and evolve througha complex process determined by a number of economic, demographic, social, andhistorical factors. Their development needs to be planned, guided, and monitored toachieve an optimal utilization of resources required to make them sustainable, sociallyhabitable, economically efficient, and administratively manageable. Usually, citiesoccupy a fraction of any country’s area; however, they consume a major share of theenergy and result in much greater pollution levels. A city’s sustainability is characterizedby its ability to feed and power itself with minimal reliance on resources outside itsboundaries and its ability to create the smallest possible ecological footprint for itsresidents’ consumption pattern. A sustainable city, ecocity, or ecopolis, is an entirecity dedicated to minimizing the required inputs (of energy, water and food) and itswaste output (of heat, air pollution – as CO2 and methane – and water pollution.)1

So far, there has been no standard accepted definition of a sustainable city. Afterthe Bruntdland Commission defined the term ‘sustainable development’ in 1987, as‘development that meets the needs of the present without compromising the ability of futuregenerations to meet their own needs’, it was the Rio Earth Summit in 1992 that took aserious stand on the need for cities to become sustainable. Since then, not only hasthe concept of urban sustainability been extensively written about, a number of citiesthe world over have taken wide-ranging steps and reform measures to become moresustainable. Programmes like the C40 Cities, the SCP (Sustainable Cities Programme),and LA21 (Localizing Agenda 21), as well as individual initiatives like Santa Monica’sSustainable City Program, San Francisco’s Sustainability Plan, Curitiba’s and Bogota’sintegrated land-use and transport projects, Bayamo’s Local Agenda 21 project, andBuffalo City’s integrated institutions approach, all became examples of good practicesinitiated to make cities sustainable. The plans, approaches, and processes adopted have

Introduction

1 http://en.wikipedia.org/wiki/Sustainable_city

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varied from place to place—while some cities have adopted overall integrated plansto ensure that the city grows on the path of sustainability in a phased manner, somecities have adopted a set of interventions in select priority areas to start with. Some ofthe lessons that emerge from these initiatives to make cities sustainable include thefollowing.P Well-functioning infrastructureP Presence of a collective and clear vision of the city’s futureP Identification of priority areas and key institutional weaknesses and strengths upfrontP Strong political leadership and willP Presence of a legal framework that enables and empowers governments/departments

to set up goals, create road maps, and carry out the necessary implementationmeasures

P Well-coordinated institutional and governance mechanisms and unified bodiesenabling implementation of integrated sustainability measures

P Setting of clearly defined goals and measurable targets and stage-wise review andmonitoring of plans and targets with necessary updating wherever required

P A continuous, interactive and iterative multistakeholder participatory processinvolving both sectoral experts and general community throughout

P Demonstration projects to win public support and acceptanceP Presence of citizens’ sense of ownership and responsibilityP Replication of successful initiatives by other cities

‘Sustainability’, a broad overarching term, encompasses a number of aspects. Asustainable city cannot be conceived without environmental protection, socialintegration, a sustained economy, and good governance, all being a part of aharmonious and dynamic co-evolution. However, there are a number of ecosystems/sectors in a city to which these principles could be applied. Given the complexities ofvarious ecosystems existing in cities today, to address all the elements together forsustainability is impossible. However, areas can be prioritized and a beginning can bemade from a certain point.

Sustainable urban services

A review of literature and case studies reveals that a key step and good starting pointfor making cities sustainable is making the delivery of urban services in a city moresustainable. Since all of a city’s population is dependent on services like water,sanitation, power, transport, buildings, and so on, for its survival, it is important thatthese services be planned, delivered, managed, and monitored in a proper way so asto ensure adequacy, equitable access, good quality, and least harm to the environment.

Sustainable urban services are be characterized by some common parameters.



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P Adequate supply of servicesP Equitable access and distributionP Efficient pricing/cost recoveryP Reliability of serviceP Good qualityP Improved efficiencyP Minimum environmental burden and energy useP Community participation, transparency, accountability

Enhancing the processes of local urban governance has also been acknowledgedas a key input towards achieving sustainability.

Addressing urban service delivery in Indian cities

India is growing rapidly, with 27.8% of its population residing in urban areas in2001, as compared to 25.7% in 1991. This is expected to increase to 40% by theyear 2030. The number and size of cities and towns have been increasing; the totalnumber of cities and towns in the country increased from 4651 in 1991 to 5161in 2001 (NIPFP 2007). Also, the number of cities with population above 1 millionhas grown dramatically from 12 in 1981 to 35 in 2001 (NIPFP 2007). Accordingto the Planning Commission, increasing population, coupled with continuedurbanization and current economic development trends, is likely to result in theemergence of 60–70 cities with one million plus population by the year 2021(NIPFP 2007). Indian cities are clearly emerging as the key drivers of economicgrowth, with almost 52% of the country’s GDP (gross domestic product) comingfrom these urban areas (NIPFP 2007).

Rapid growth in India has resulted in the concentration of economic activityin urban centres and increased the pressure on basic service delivery systems. Thestress on urban infrastructure has manifested itself in terms of a greater numberof people that need to be served, inadequate revenues to cover costs, and the needfor capacity augmentation, both in terms of skills and physical infrastructure. Theescalating demand for basic services, coupled with the widening socio-economicdivide between the rich and the poor, has resulted in a serious deterioration ofaccess and service quality across all urban service sectors, namely, transport, power,water supply, sanitation, health, education, and so on. Poverty, traffic congestion,bad air quality, high noise levels, lesser green areas and open spaces, scarcity ofwater, long power cuts, unhygienic living conditions leading to serious diseases,are all increasingly putting our cities under the threat of unsustainability. If we donot start thinking of approaches to address these challenges now, we will beimposing huge negative externalities on the generations to come and put underthreat the very economic progress that has driven our nation forward.


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In 2005, India launched a mega programme for urban development called theJawaharlal Nehru National Urban Renewal Mission, or JNNURM. With a budget ofapproximately Rs 50 000 crore (Rs 500 billion), this programme aims at ‘reform driven,fast track, planned development of identified cities with focus on efficiency in urbaninfrastructure/services delivery mechanism, community participation and accountability ofULBs (urban local bodies)/parastatals towards citizens.’ 2 It provides incentives to citiesto undertake institutional, structural, and fiscal reforms, necessary to improve servicedelivery systems that are sustainable in order to create ‘economically productive,equitable and responsive cities’. The funding under the JNNURM is to be released tocities, once planned urban perspective frameworks for a period of 20–25 years (withfive-yearly updates) indicating policies, programmes, and strategies of meeting fundrequirements have been prepared by them.

Though a well-intentioned programme, there are some gaps in the same.P There is no mention of areas like energy conservation, environmental protection,

and combating climate change, which have become key sustainability concerns forour cities today.

P Sectors like buildings and electricity have not been included, as they do not comeunder municipal functions, but contribute largely to any city’s sustainabilitychallenges.

P Ways to integrate initiatives under the JNNURM with other existing national-/state-level policies and action plans, both within and across sectors, are not spelt out inthe programme and, therefore, most JNNURM projects tend to remain asstandalone initiatives in cities.

P Focusing more on spending the available funds and building new infrastructure doesnot ensure that the basic goals of sustainability – access to all, affordability, equity,safety, comfort, reliability of supply, environmental protection, quality of services,and so on – are being met.

P Interlinkages between the identified areas and the impacts of the kind ofdevelopment outlined in the programme on other areas have not been addressed

The above-mentioned factors have led to the JNNURM becoming a highly project-driven programme, where cities are being ‘developed’ through a series of hugeinvestments being made in urban infrastructure sectors, without necessarily ensuringthat the goals of sustainability are being met.

In the light of the above, this study on exploring sustainability in the provision ofbasic urban services in Indian cities, as a step towards making cities more sustainable,was initiated by TERI (The Energy and Resources Institute) in partnership with SUI(Sustainable Urbanism International) and Arghyam, in March 2008, with the supportof Dr Nandan Nilekani and Mrs Rohini Nilekani.

2 http://www.urbanindia.nic.in/moud/programme/ud/jnnurm/guidelines_jnnurm.pdf



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TERI hopes that this report will help key stakeholders, particularly stategovernments and urban local authorities, to plan, manage, and monitor the provisionof these services in a sustainable manner. TERI also hopes that the recommendationsemerging from this study will influence public policy and become part of urbandevelopment policies and programmes in India.

Project objectives and scope

As a step towards the larger goal of making Indian cities more sustainable, this studyaims to identify processes to make service planning and delivery in Indian cities moresustainable in the following five urban sectors.1 Water2 Solid Waste Management3 Transport4 Buildings5 Power

This can be achieved by identifying the following.P What sustainability in each sector impliesP A framework of parameters and indicators to assess sustainability of a serviceP The existing situation in Indian cities with regard to the identified parametersP Recommendations to operationalize sustainability-related actions in Indian cities

for each sectorP Supporting policy, legal, and organizational arrangements and data and capacity

requirements, including making suggestions to be incorporated in the JNNURM

Recognizing that deficiencies in the existing governance structures adversely impacturban service delivery, in addition to the above-mentioned five sectors, this study alsolooks at ‘governance’ as a separate sector. This section of the report addresses issuesimpacting upon the delivery of basic urban services, which include financialimpediments, capacity constraints, inadequate decentralization, insufficienttransparency, accountability, and so on.

Recently, the Ministry of Urban Development developed a handbook forstandardized service delivery benchmarks in the context of performance managementof urban services. This document emphasizes the need to introduce performancemeasurement; suggests performance measurement parameters for water supply,sewerage, solid waste management, and storm water drainage; and recommends waysto institutionalize operationalization of these parameters.

Recognizing the ministry’s pioneering work in the development of these indicators,in this study wherever necessary, TERI suggests additional parameters in the saidsectors. This study also focuses on the current planning and delivery processes, and


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the institutional, regulatory, and capacity issues that are necessary to operationalizethese parameters for urban services. In addition, this study also looks at the buildingsand electricity sectors and explores the possibility of including them in the currenturban development policy scenario, as they have great implications for energy andenvironment, and therefore, sustainability of urban areas.

This study also recognizes the fact that urban services outside the formal systemof delivery are characterized by the existence of informal markets that need to bestudied and analysed in greater detail. There is also recognition of the fact that a chunkof our urban population resides in slums, and these are often not adequately servedwith basic urban services, thereby leading to concerns of inequity. The study touchesupon these two issues and attempts to flag the key issues and suggest alternative policydirections.

Project methodology

For each of the six sectors (five urban services plus governance) mentioned above,the following methodology was adopted by TERI.P Literature review A detailed review of literature and case studies, both national

and international, on how sustainability in urban service delivery can be addressedwas carried out and good practices were identified.

P Identifying sustainability parameters Drawing from this, the definition of asustainable service and parameters necessary to make service delivery sustainablewere identified.

P Evaluating the current situation through secondary sources and visits tothree cities Based on available literature and TERI’s past works, an analysis ofthe current situation of each of the parameters was carried out for each sector. Theanalysis was done for urban India in general. Visits were made to three very differentIndian cities, reflecting the heterogeneity in social, cultural, resource, economic, andphysical characteristics in urban India, and the validity of these parameters testedthere. These cities were the following.• Hyderabad (5.53 million): large-sized, rapidly expanding metropolis, state capital,

cultural and tourist city, IT (information technology) hub• Surat (2.81 million): medium-sized, industrial, and trade city• Shillong (0.25 million): small-sized, hilly, tourist destination, and state capital

Having a dialogue with various stakeholders (ranging from urban local bodies, privateservice providers, NGOs working in the sector and citizens) in each city formed acritical link in understanding the planning and approaches adopted behind the deliveryof services. The focus of the stakeholder interviews was to address the following issues.

• Extent to which these cities are addressing the sustainability parameters• Issues/impediments to sustainability



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• Extent to which some of the identified parameters are feasible to beoperationalized

• Any good practices on sustainability which could be replicated in other cities

P Recommendations to operationalize the sustainability parameters in Indiancities Recommendations on how to implement the identified sustainabilitymeasures in Indian cities, monitor these measures over a period of time, thesupporting data and capacity requirements, the kind of policy institutional andorganizational changes required, and suggestions for the smaller and medium-sizedIndian cities – which are rapidly adopting the not-so-sustainable path of the largercities – were made.Though governance was treated as a separate sector in the study, it drew from all

the other sectors. While the methodology for governance was similar to the others,the identification of the principles of good governance was done upfront (deriving fromthe accepted definitions of good governance) and the case studies helped to drawlessons on how principles of good governance when operationalized in the working ofmunicipal bodies, could improve the quality of urban services.

Besides this, regular interactions and knowledge-sharing activities with variousstakeholders like city authorities, service providers, academia, NGOs, and researchinstitutions working in these sectors were carried out through both visits to cities, andtwo wide-ranging consultation meetings held in Delhi.

Report structure

After the common introductory chapter, the report is divided into six sections, eachof which deals with one sector in detail. Each section/sector contains the following.P Review of good practices and case studies on making service delivery more

sustainableP Identification of parameters to assess sustainabilityP Analysing the existing situation in light of the identified parameters for urban IndiaP Recommendations to operationalize these parameters in Indian cities, including

recommendations on technical, policy, legal, organizational, capacity building, datacollection and monitoring aspects

The report also contains two short theme papers on sustainable service deliveryfor the urban poor and the role of informal markets in urban service delivery.

ReferencesNIPFP (National Institute of Public Finance and Policy). 2007India Urban Report: a summary assessmentNew Delhi: NIPFP


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Introduction

The continued destruction of ecosystems, loss of aquatic species, dislocation of humanpopulations, disruption of sedimentation processes and contamination of water sources(Falkenmark 1998; Gleick 2000; WRI 2003; Sophocleous 2004) are all evidence ofthe overexploitation and poor management of freshwater resources. The concept ofsustainable development, however, has reinvigorated attempts to better manage thewater environment through appropriate policy-making and planning strategies, andrepresents an important extension of the principles of integrated water management(Simonovic 1996). According to the OECD (2003, p. 19), ‘water is the perfect exampleof a sustainable development challenge—encompassing environmental, economic andsocial dimensions.’ The sustainable management of water resources, therefore, impliesnot only the indefinite continuation of physically and biologically stable systems(Newson, Gardiner, and Slater 2000), but also concern for the other dimensions ofsustainable development, such as the economic efficiency of water use, the equitabledistribution of the costs and benefits of water resource developments and participatoryapproaches to policy-making and decision-taking (Lee 1992; Stagl 2004).

Addressing the sustainability of water resources management requires appropriateframeworks of indicators, which can ideally describe and communicate current (andperhaps previous) conditions, foster critical thinking about remedial actions requiredand facilitate the participation of various stakeholders in decision-making processes(Brugmann 1997). Bossel (1999) argues that indicators should provide essentialinformation on the viability of a system and its rate of change, and on how thesecontribute to the sustainable development of the overall system. With this backdrop,this chapter seeks to develop a framework of sustainability indicators for watermanagement in urban India that integrates socio-economic and environmentaldimensions, and that could assist policy-making and the wider communication andunderstanding of water resource issues.

Water*CHAPTER

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*The authors would like to acknowledge the contributions by Mr Kamal Kumar Murari and Ms Roshni Chakrabortyfrom the Water Resources Division, TERI.

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Literature and case study review

Sustainable management of water resources is a multidimensional way of thinking.This process involves recognizing the interdependencies between nature, society, andthe economy with respect to water use. The Brundtland Report popularized the termsustainability for human and environmental development when it was published in1987. In the report, sustainable activities were defined as ones where the needs of thepresent generation are met without compromising the needs of future generations. Whatthe Brundtland definition implies is an equitable distribution of the resource, not onlyspatially between users in a given location, but temporally between users over time.The idea is to allocate the resource in such a way for all, including the environment,as to have an adequate share without making any one group worse off, both now andin the future.

However, sustainable management of water resources involves much more than itsname implies. It involves a whole new way of looking at how we use our precious waterresources. It also demands a shift from traditional ‘top-down’ approach to a more openmanagement system, where all levels have a say in the allocation and use of theresource. If properly done, this system ensures that the needs and concerns of thosemost affected by the use of the resource are addressed, without losing sight of thewider issues touching the society as a whole. Only when the needs of each user areunderstood can the resource be allocated and managed in a sustainable manner (DA2007).

For sustaining the water resources in any city, it is necessary that the available waterresources be used optimally and efficiently. Programmes of demand management andnetwork efficiency improvements, energy conservation, leakage reduction, and carefulpriority setting will bring the highest return in reducing operating costs and improvingservice. Consumers need to understand that the level and quality of services theyreceive will depend largely on the level of tariffs they are willing and able to pay. Sectorinstitutions must strive to provide the service that people want at the least possiblecost. Consumers should not be asked to pay higher tariffs only to have themsquandered by wasteful management and inefficient operations. Given the severe limitson public financial resources and the dearth of management and operations capacity,entry of private utility operators and investors in the form of management contractscould be also a way of achieving efficiency in water management. Financialsustainability and cost recovery from tariffs, while providing inclusion and appropriateprotection for the poor, should be the key objective of the city’s reform agenda.

As stated by the International Hydrological Programme, a UNESCO initiative,‘water problems cannot be solved by quick technical solutions. Solutions to waterproblems require the consideration of cultural, educational, communication andscientific aspects. Given the increasing political recognition of the importance of water,it is in the area of sustainable freshwater management that a major contribution to

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avoid/solve water-related problems, including future conflicts, can be found.’ Therefore,in this study, an attempt has been made to deal with water as well as waste water in aholistic fashion, taking into account the various issues affecting water use, includingpolitical, economic, social, technological, and environmental concerns.

A lot of initiatives towards sustainable management of water resource have beenalready taken up in number of countries across the world. A few Indian cities havealso realized the importance of efficient management of water resource through bothsupply and demand side management, and have made efforts to improve the existingmanagement strategies. The following section presents a compilation of good practices,drawn from both national and international literature, adopted by different cities, whichhave led to augmentation, efficient use, and conservation of water.

Supply side management

Public utilities in different parts of the world engage in some form of planning, althoughthe extent and scope of planning vary greatly. In most cases, developing countries followa supply side management of water resource. The prevailing planning processesundertaken by water utilities have been internally driven and dominated by supplyconsiderations. The emphasis has been on maintaining reliable water supplies and,accordingly, the engineering of facilities for source development, treatment and storage,and transmission and distribution of water. Water-supply planning generally takes theform of forecasting future demand and developing and analysing supply options tomeet the projected demand level, plus a comfortable margin.

Case 1: Source augmentation, Chennai Water Supply Board

Chennai has the lowest per capita water availability out of all the metros in India. Inthe absence of perennial rivers, the Chennai Metropolitan Water Supply and SewerageBoard (hereafter referred to as Chennai Metro Water), the agency responsible for watersupply and sewerage systems in Chennai, has had to exploit ground aquifer tocomplement water from reservoirs. However, in recent years, Chennai Metro Waterhas been shifting its strategy from extraction-based to conservation-based water supply.Chennai Metro Water faced problem of groundwater depletion and sea-water intrusioninto the aquifers in the last three decades. In 1987, Chennai Metro Water evolvedstrategies to overcome this crisis through water harvesting at macro and micro level.At macro level, check dams were constructed along the river basins and floodwaterswere injected into underground aquifers though injection wells. Minjur area, northChennai, was well known for the availability of a groundwater aquifer in the mid 1960s(CMWSSB 1998). But the aquifer was not able to reach its expected yield, and theextraction only gave way to intrusion of saline water. To overcome this, Chennai MetroWater evolved strategies to harvest rainwater on a large scale through check dams alongthe Araniyar–Korataliyar basin. These check dams have shown significant results in

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improving the water table in various observation wells set up by the Chennai MetroWater (Nair 1998).

To further reduce sea-water intrusion caused by over extraction of groundwater,pollution from industries and existence of saltpans, along the same area, large-scalerecharging wells were constructed between the coast and Minjur. Floodwater wasinjected in these wells as a recharge to create a barrier to the salt-water intrusion. Thesemeasures have shown significant results in the decrease of Electrical Conductivity values,one of the measures to assess the saline content in the water. (CMWSSB 1998, p.45).

Learning from the experience in Minjur area of north Chennai, Chennai MetroWater realized the importance of saving the coastal aquifers and other groundwaterpotential zones in and around the city. It introduced an act to regulate and controlextraction, use or transportation of groundwater, called the Chennai Metropolitan AreaGround Water (Regulation) Act 27, 1987. The Act envisages registration of existingwells, regulations for sinking new wells, issuing licenses to extract water for non-domestic use and issue of licenses for transportation through goods vehicle. The Actcovers the city and the adjoining 243 villages. The Act has been able to control theprivate water market; to regulate water extraction and improve the groundwater levelsin the southern aquifers, in particular, and Chennai city in general (CMWSSB 1998).

The lesson that could be learnt from Chennai’s initiative is that rather thanaugmenting the source through further extraction, source augmentation can be alsodone through a conservation-based approach. Also, through introduction of the Actto regulate and control the extraction of groundwater, the Chennai Metro Water couldto a large extent, control the private water markets. Since groundwater depletion isone of the major challenges that most of the ULBs (urban local bodies) face, such anact can help in reducing the pressure from groundwater reserves of the city.

Case 2: Groundwater recharge in Rajkot

In the arid Saurashtra region of Gujarat, the water situation is made difficult by thedestruction of forests and local water systems, and by the overuse of groundwater andconsequent salinity ingress along the long coastline. In this region, a people’s movementto recharge existing wells by diverting local streams to the wells via a filtration pit hasled to remarkable change in the water availability situation. Over 300 000 of the total700 000 wells have already been recharged. Hundreds of local tanks have beenrenovated or dug up. In the urban areas, the movement has led to groundwaterrecharging through handpump tube well. In Rajkot city alone, in 1995, more than4000 handpumps were recharged by this method. Roof or terrace water is divertedinto a small tank from which it is allowed to flow in the casing pipe of a handpump(Parthsarthi and Patel 1997).

The case study demonstrates that to make any scheme successful, it is imperativeto have people’s support and involvement. In this case, it is mainly because the people/

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community took the lead to recharge a large number of groundwater sources, thusreducing the impact on the groundwater table due to extraction.

Case 3: Waste-water management in Sangli, Maharastra

A scheme was developed for the treatment of domestic sewage after 15 years ofintensive research by the Shivasadan Co-operative Society. The scheme envisagedtreatment of 6 MLD (million litres per day) of the nearly 50 MLD of water collectedfrom the city of Sangli. The actual purification was done with the help of water hyacinthand water thus treated was utilized for agricultural purposes or drained into the Krishnariver. The estimated capital expenditure on the Shivsadan waste-water treatmentscheme was Rs 4.8 million and maintenance cost Rs 963 000 per annum. About30 tonnes of water hyacinth biomass was harvested from four hectares daily, yieldingnearly 6 tonnes of rich organic manure, which, in turn, enriched the civic coffers byRs 931 000 annually. While the capital investment on a conventional advanced watertreatment system operated mechanically will be Rs 1.5 million per MLD, Shivsadan’sscheme cut it down to Rs 800 000. Power consumption was reduced to one-tenth.

The plan demonstrates an innovative approach to treat, as well as reuse, waste waterby using less energy.

Demand side management

WDM (water demand management), an important component of integrated waterresources management, promotes and balances efficiency, equity, and sustainabilityobjectives for the management and allocation of water resources. It covers a widerange of technical, economic, educational, capacity building and policy measuresthat need to be applied by water resource planners, water supply agencies, andend users (Gumbo, Forster, and Arntzen 2005). The economic, social andenvironmental reasons for WDM vary from country to country in terms of meetingbasic human needs and providing affordable access to minimum supplies of waterfor that purpose (GWP–TEC8 2003). Various studies have indicated that for avariety of reasons, most end-users in developing countries use water inefficientlyand that most municipal water supply agencies face high levels of water that isunaccounted for and do not reuse waste water beneficially. This water-useinefficiency is a reflection of traditional supply side bias of water management. Itis important to note that WDM does not always imply that water usage should bereduced, instead it implies that water should be used efficiently without wastage.

Case 1: A. Rainwater harvesting, Tokyo, Japan

After battling both water scarcity and floods, Sumida City in Tokyo has become atrailblazer in catching and using rainwater (SANDRP 1999). Rainwater utilizationpolicies have been promoted with three basic aims: developing water resources by

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community efforts, restoring the regional natural water cycle, and ensuring watersupply for emergencies. The ward office boasts of a rainwater utilization systemthat covers half of the water needs and saves 1.8 million yens for the government.One of the major achievements has been the installation of a rainwater harvestingfacility at Ryogoku Kokugikan, a well known Sumo wrestling arena in Tokyo, where70% of the facilities use only rainwater. In August 1998, six ministries in theJapanese government announced to jointly draw out water conservation policies.

By formulating rainwater-harvesting policies and implementing it throughcommunities’ involvement, Tokyo has been able to demonstrate that rainwater canserve as a supplementary source of water supply for the city and can ensure waterwhen there is any failure in the main water supply scheme.

B. Rainwater harvesting, Germany

Municipalities in Germany have devised a taxation system that encouragesrainwater harvesting. Residents are charged separately on the basis of paved andsealed areas in their houses, such as backyards and drives. A tax inspector measuresthe paved area and calculates the average run-off it will generate. Accordingly, taxis levied. Residents are compensated for carrying out rainwater-harvestingstructures by lowering the water bills to recover the cost of harvesting. This hasresulted in reduced demand for water, as residents’ water demand has beenaddressed by harvesting rainwater.

Case 2 A: Leak detection in Cornwall, United Kingdom

During the period 1992–95, the water company South West Water developeda leakage control programme, and enough water was saved to supply the domesticneeds of Cornwall. The company started to install valves and measuring equipmentin its 471 DMAs (district meter areas). They were split into 20 leakage controltypes – pubs and farms, for instance – and a survey was undertaken into legitimatenight use in each category. It also introduced the so-called ‘super-key meters’, whichmeasure the water that leaves each water treatment works. The companyalso developed a mathematical model known as MELT (modelling economicleakage targets). The first step in creating the model was to break down thecompany into 65 ‘water into supply’ zones. Any water entering or leaving or beingproduced in a zone was measured. The measuring devices were connected totelemeters to obtain details of instantaneous demand. The model sets leakagetargets for each zone.

The case study demonstrates a systematic way of detecting leaks by demarcatingthe city into several DMAs and setting targets for each zone. The method usedwill not only help reduce wastage of water, but also help in keeping a record ofthe demand in each zone, which can be useful in formulating any future policy.

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B: Leak detection, Nagpur, Maharastra

Reforms in Nagpur’s water supply were long overdue; the quantity of water availablewas adequate, but huge losses in distribution due to 35 000 illegal water connectionsand 18 000 authorized but non-metered connections caused acute water shortage.Motivated by the need to augment revenues, the NMC (Nagpur MunicipalCorporation) in October 2001 declared a time-bound programme aimed at regularizingillegal water connections and also applying universal metering policy. For identifyingunauthorized and unmetered connections, licensed plumbers were involved in theprogramme, since they were the ones who generally installed water connections andwere probably instrumental in installing the illegal connections to begin with.

The incentive of Rs 50–100 for every illegal connection motivated about 200plumbers. They were organized into teams and assigned to the seven water zones ofthe city. They undertook a door-to-door survey, convincing the illegal connectionholders to regularize their connections, getting the connections sanctioned, depositingthe requisite charges, fixing meters and reporting those who refused to regularize theirconnection to respective zonal office. The water connections of those who refused toavail the scheme were immediately disconnected. Like the plumbers, a fixed monthlytarget of revenue collection from respective zones also motivated the NMC staffworking on the team.

With insignificant expenses of about Rs 0.2 million as incentives for plumbers anda minimum amount spent on the publicity drive, the programme achievedregularization of about 25 000 (71%) connections within a short period of four months.There was significant and evident increase in revenue generation as the quantity ofwater billed reached 300 MLD in 2002/03 from 163 MLD in 1998/99, translatinginto over three-fold increase in revenue from Rs 148.3 million in 1998/99 to Rs 500million in 2001/02.

The NMC has also had some luck with private sector participation. It was foundthat after receiving a very high quotation for one of its water supply and sanitationexpansion schemes, the NMC decided to go in for a target-oriented and focusedtendering process. This brought in a lot of new ideas along with substantial reductionin the costs and time span for project completion. Locally available consultingorganizations (not named by the authors) suggested some innovative options such asuse of pulsator technology for water treatment and also professionalizing the wholeprocess.

The leakage detection work was outsourced to a consulting firm and suggestionsfrom them to avoid further leakages were seriously implemented, such as bringing thewater through pipelines from the source itself, rather than through open channels. TheNMC now also has a contract with a private firm for conducting repairs.

Leakages in pipelines are a major source of wastage of water in most Indian cities.This case study demonstrates an interesting way of tacking the leakage problem. By

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giving incentives to the plumbers a huge amount of water as well money could besaved. Also, limited but vital PSP (private sector participation) initiatives can also bringin a new culture of solving problems and improving efficiency in the water sector, asinitiated by NMC.

Case 3 A: Water management through tariff regulation, a case of Singapore

In Singapore, the average monthly household consumption of water has steadilydeclined during the 1995–2004 period. The consumption in 2004 was 11% lessthan in 1995. During the same period, the average monthly bill more than doubled.These figures indicate that the new tariffs had a notable impact on consumerbehaviour and have turned out to be an effective instrument for demandmanagement. This is a positive development, since the annual water demands inSingapore increased steadily, from 403 million m3 in 1995 to 454 million m3 in2000. The demand management policies introduced have resulted in lowering ofthis demand, which declined to 440 million m3 in 2004.

In terms of equity, the government provides specially targeted help for lowerincome families. Households living in one- and two-room flats receive higherrebates during difficult economic times. For hardship cases, affected householdsare eligible to receive social financial assistance from the Ministry of CommunityDevelopment, Youth and Sports.

The current tariff structured used by PUB (Public Utilities Board) have severaldistinct advantages, among which are the following.P There is no ‘lifeline’ tariff, which is used in many countries with the rationale that

water for the poor should be subsidized, as they cannot afford to pay high tariffsfor something that is essential for human survival. The main disadvantage of sucha lifeline tariff is that it also subsidizes water consumers who can afford to pay forthe quantity of water they actually consume.

P The poor, who cannot afford to pay for the current water tariffs, receive a targetedsubsidy. This is a much more efficient policy in socio-economic terms, instead ofproviding subsidized water to all for the first 20–30 m3 of water consumed by allhouseholds, irrespective of their economic conditions.

P The current domestic tariff of water consumption up to 40 m3/month/household isidentical to the non-domestic tariff. Both are set at S$1.17/m3. In other words,commercial and industrial users do not subsidize domestic users, which is oftenthe case for numerous countries.

P The tariff structure penalizes all those households that use more than 40 m3 of waterper month. They pay the highest rates, S$1.40 m3, for consumption above this level.This rate is higher than the commercial and the industrial rates, and is a somewhatunusual feature compared to the existing norm.

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P The WCT (water conservation tax) is 30% of the tariff for all consumers, exceptfor domestic households who use more than 40 m3/month. The WCT onconsumption of each unit higher than 40 m3/month goes up by 50%, from 30% to45%, which must be having perceptible impacts on household behaviour in termsof water conservation and overall demand management.

P The WBF (water-borne fee) is used to offset the cost for treating waste water andfor the maintenance and extension of the public sewerage system. It is set atS$0.30 m3/s for all domestic consumption. For non-domestic consumption, this feeis doubled, at S$0.60/m3, presumably because it is more difficult and expensive totreat non-domestic waste water.

P An SAF (sanitary appliance fee) is also levied per sanitary fitting per month. It iscurrently set at S$3.00 per fitting.

P There are two components to water tariff. A major component of the overallrevenue collected through water tariffs accrue to the PUB recovering alloperation and for considering maintenance costs and new investments. However,revenue from the WCT accrues to the government and not to the PUB.

B: Implementation of new tariff structure, Santa Cruz de Tenerife, Canary Islands, Spain

The water use in the city of Santa Cruz de Tenerife increased between 1985 and 1991.From 1992, it has slowed down after the implementation of the following measures.P Campaign of education for water savingP New tariff structure (rising blocks) with variable prices by m3

The new tariff included a fixed service charge and a variable tariff divided intofive rising blocks for domestic use and just three rising blocks for industrial use.

Both the case studies highlight different tariff structures for the city. In both thecases special attention has been given for the marginalized section of the society. Agood tariff structure can act as an effective way of demand management as well ascan lead to equitable distribution of water by reducing wastage and excessive use.

Case 4: Recycling waste water in Chennai

Chennai Metro Water has just commissioned the first of its two sewage treatment plantsat Kodungaiyur. The second plant is expected to become functional before the end ofthe year and thus, Metro Water is hoping to throw out something like 20 MGD (milliongallons per day) of secondary treated water. The Tamil Nadu government has askedmajor industries in Manali, including Madras Fertilizers (5 MGD), Madras refineries(10 MGD) and SPIC group of industries (5 MGD), to recycle the secondary treatedwater from Kodungaiyur for their industrial uses. This would mean saving nearly 10MGD of drinking water, which is now being supplied to these industries. A tertiarytreatment plant will be set up to bring the secondary treated water to the prescribed

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specifications. The Chennai Metro Water would offer land on lease for the setting upof tertiary treatment plant and supply secondary treated water, with a BOD (biologicaloxygen demand) level of 50 PPM (parts per million) at nominal cost of 10 paise per1000 litres.

The initiative undertaken by the Chennai Metro Water in Tamil Nadu can helpreduce the demand on fresh water from industries, thus making water availablefor drinking purposes. Usually, the availability of land to set up treatment plantacts as a barrier but Metro Water’s offer to provide land on lease to set up treatmentplants and to provide treated water to industries at a cheaper rate, can encouragethe industries to use treated water in their plants. This could be replicated in othercities as well, where the demand for water from the industrial sector is very high.There is a huge scope in the industries to use treated water, thus reducing thepressure on fresh water resources, which can be then made available for otherpriority sectors.

Institutional mechanisms for water and waste water sector

Case 1: Public–private partnership in Bangalore

At present there are no Indian cities with private sector involvement in the water andwaste-water sector but some cities are moving towards management contracts withprivate operators. For example, the BWSSB (Bangalore Water Supply and SewerageBoard) is negotiating contracts for operation and management of two pilot areas, eachwith a population of 1.2 million. The private operator will be responsible for watersupply, sewerage collection and treatment, revenue collection and customer relation,including grievances in these two areas. The BWSSB will continue to be responsiblefor service delivery to the rest of the city serving a population of 3.6 million. Aregulatory unit will be set up within the BWSSB and if these initial concessions, provesuccessful, two further concessions covering the entire city will be granted after fiveyears (Tippeswamy 2004).

Case 2: Overall water governance: a case of Singapore’s Public Utilities Board

The Singapore PUB ranks among the top 5% of all the urban water utilities of theworld in terms of its performance.

The following are some indicators that highlight the notable features of the PUB.P 100% of the population has access to drinking water and sanitation.P The entire water supply system, from water works to consumers, is 100% metered.P Unaccounted for water as a percentage of total production was 5.18% in 2004.P The number of accounts served per PUB employee was 376 in 2004.P Monthly bill collection efficiency: 99% in 2004.P Monthly bill collection in terms of days of sales outstanding was 35 days in 2004.

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The PUB has extensively used the private sector, where it did not have specialcompetence or competitive advantage in order to strive for the lowest cost alternative.Earlier, the use of the private sector for desalination and waste-water reclamation hasbeen noted. In addition, specific activities are often outsourced to private sectorcompanies.

The PUB has a high level of autonomy and solid political and public support, whichallowed it to increase water tariffs in progressive steps between 1997 and 2000. Watertariffs have not been raised since July 2000. The increase between 1997 and 2000 hasnot only reduced the average monthly household water demand but has also increasedthe PUB’s income, which has enabled it to generate funds not only for good and timelyoperation and maintenance of the existing system but also for investments for futureactivities.

The overall governance of water supply and waste-water management systems inSingapore is exemplary in terms of its performance, transparency, and accountability.There is much that both the developed and developing world can learn from the PUBexperience. The Singapore experience indicates that given autonomy and otherappropriate enabling environmental conditions, the utilities can not only be financiallyviable but also perform their tasks efficiently.

Lessons learnt

From the above literature review, it is clear that several urban local bodies dealingwith water sector across the world have initiated numerous innovative approaches tomanage the water for domestic and industrial purposes. Many of these approaches

Table 1 Summary of good practices studies

City Country Good practice

Chennai India Source augmentation through conservation approach

Rajkot India Initiative undertaken by community to recharge depleting groundwater

Sangli India Waste-water treatment through water hyacinth and reuse for irrigation

Chennai India Recycling and reuse of waste water by industries

Tokyo Japan Policy initiatives towards rainwater harvesting and implementation through

community participation

Nagpur India Identifying and regularizing illegal connections through licensed plumbers

Cornwall UK Systematic way of leak detection and monitoring water demand

Singapore Singapore Water management and conservation through tariff rationalization

Bangalore India BWSSB negotiating contracts with private operators to take responsibility of water

supply, sewerage collection and treatment, revenue collection and customer relation

in two areas of the city, for improved efficiency in the service delivery.

BWSSB—Bangalore Water Supply and Sewerage Board

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can be adopted by the urban centres in India to improve their water managementsystems in terms of resource management, economics of water, and institutionalmechanisms with appropriate modifications. Most of the cases discussed above havebeen successful in managing its water and waste water is because of their concurrentemphasis on supply and demand management, waste-water management, institutionaleffectiveness and creating an enabling environment, which includes a strong politicalwill, effective legal and regulatory frameworks, and an experienced and motivatedworkforce.

Developing the framework for analysis

Based on the literature review of good practices and measures adopted to make thewater sector in urban areas more sustainable, the following definition for a sustainablewater resource management in an Indian city was arrived at.

‘Providing people with equitable access to water, while at the same time ensuring socio-environmental and economic sustainability of the resources in the future.’

The overall vision is to come up with a sustainability framework for the urban watersector, with a source-to-sink approach, integrating technological, socio-economic andenvironmental considerations. Based on the above definition, a research framework/agenda for assessing sustainability in the urban water sector in the Indian cities wascreated. The research framework primarily translated the above definition ofsustainability of water resources into a set of parameters important for a city to considerfor ensuring sustainable management of water resources in a city.

Initially, a large number of indicators were selected based on both national andinternational reviews of literature. In order to reduce the number of indicators to amanageable number, intensive literature review and analysis through city visits wereundertaken. The agenda of the city visits was primarily to understand the present waterand waste-water scenario in the cities of Hyderabad, Surat, and Shillong. The visitswere undertaken to understand the issues, barriers, and gaps that are impedingsustainable management of water resources.

The MoUD (Ministry of Urban Development) has identified key benchmarkingindicators for the various basic services, including water supply for Indian cities. Theindicators cover a wide variety of issues relating to coverage, access, quality, continuityof water supply, efficiency in redressal, of complain, cost recovery, collection efficiencyof waste water, and so on, which would be crucial to improving the water supply servicesin the cities across the country. In addition to that, TERI has developed a few additionalparameters like data management, capacity building, and source protection to makethe list exhaustive. Further, our recommendations include the process of achieving andoperationalizing the benchmark set for each MoUD indicators.

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The framework developed by TERI for sustainable water management is describedbelow. These parameters are crucial for any water utility, board or local body toundertake. The priority may differ, depending on the city status, needs, resources, andso on, but eventually these reforms are crucial to the provision of equitable andadequate access to water.

The framework developed by TERI for sustainable water management, along withMoUD indicators can be broadly classified into four components. Each of thecomponents has been discussed below in detail.1 Data procurement and management2 Economic efficiency3 Source development /protection4 Institutional reforms

Data procurement and management

Water utilities in India’s urban centres tend to suffer from a chronic failure to establishmeaningful programme objectives, mainly due to the lack of data and a comprehensiveinformation system to aid decision-making. Information is required in order for a waterauthority to function properly. This information is derived from data, such that thedata has to be collected, processed, and interpreted to provide this information. A waterauthority is dependent upon information to carry out its scientific, engineering andoperational functions. The provision of information for a water authority is somethingthat has to be organized rather than just allowed to happen. Keeping this objective inmind, data management in urban water utilities in India has been taken as the mostimportant parameter to be analysed.

The MoUD’s indicators for water and waste water for better service delivery bythe utilities are (100% benchmark)P Coverage of water supply connections and waste-water networkP Per capita production of waterP Extent of metering of water connectionsP Extent of non-revenue water

Data procurement and management is a crucial parameter to achieve thebenchamark (100%) set by the MoUD for the above-mentioned indicators. Forimproved reach and access to quality service, the utility provider will need to haveadequate data, both at the supply and consumer end. There is also a need to generatespatial–temporal database system to be maintained on a GIS (geographical informationsystem) framework. Hence, data procurement and management has been developedas an additional parameter to enhance the service delivery by utilities.

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Economic efficiency

Effective water resource management requires water to be treated as an economicgood. Given that water is a basic human necessity, affordability of the services,transparency and accountability become major issues. The MoUD indicators foreconomic efficiency with 100% benchmark areP Continuity of water supplyP Cost recovery in water supply servicesP Efficiency in collection of water-supply-related charge and waste-water network

To achieve economic efficiency, there is a need for sustainable and equitabletariff structure and efficient revenue collection. Such measures will be instrumentalin improving the utility’s financial conditions, increased revenue collection, reducingunaccounted for loss, and so on. Along with the above-mentioned MoUDparameters, tariff rationalization, efficient billing and collection, water audits, andcost reduction by utilities have been added by TERI, to ensure economic efficiencyin urban local bodies to bring financial sustainability in water resourcemanagement.

Source development / protection

With the growing water demand in urban India, there is an urgent need to manageand preserve the available water resources for their long-term sustainability. Waterresources in India – be it surface or groundwater – have already reached a criticalstage, for which an integrated approach is required in planning, formulation, andimplementation with respect to socio-economic, environmental, and ecologicalaspects. Also, in most cities, water demand is much higher than is being suppliedfrom the available resources. Water conservation practices like the use of recycledwater, rainwater, and storm water harvesting can go a long way in reducing thepressure on the available resources. They can serve as supplementary source ofwater supply in the city. In this context, source development/protection has beentaken up as one of the key parameters to assess the sustainability of water resourcesin a city.

MoUD has suggested the following indicators with 100% benchmark.P Quality of water supplied and waste-water treatmentP Adequacy of waste-water treatment capacityP Extent of reuse and recycling of waste water

However, to ensure long-term sustainability of water resources, the followingparameters have been suggested by TERI.P Catchment protection/ ecological assessment of surface water/ groundwater

monitoring/ desilting

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P Water conservation/waste-water management and reuseP Water and waste-water quality

Institutional reforms

Institutional mechanism is an important parameter, as a strong institutional setup isrequired to make it conducive to operationalize the other parameters in the framework.Within this parameter, it is also important to include the marginalized section (forexample, urban slums) so that these sections of the society are not deprived of theirshare. Along with reviewing and revamping the existing institutional setup, it is equallyimportant to also find ways to regularize the informal water market. All these will bedealt within the parameter of institutional reforms.

The indicator suggested by the MoUD, isP Efficiency in redressal of customer complaints (100% benchmark)

Along with the MoUD indicator, to strengthen the existing institutions, theinstitutional parameters suggested by TERI are the following.P Standard review/ legal and legislative requirements/ setting up of regulatory boardP Regulating informal marketsP Increased and efficient community involvement and participationP Appropriate public–private partnership model

Along with the above-mentioned parameters, capacity requirement, funding, androle and responsibility of the ULBs will be discussed in detail.

Analysis of the sustainability parameter in urban India

Urban local bodies in India suffer from several deficiencies and are yet to respondadequately to emerging challenges posed by the rapidly changing urban scenario.The critical issues are service coverage and quality, per capita water supply,increasing demand for water, inequitable water supply, deficiencies in the treatmentof raw water and in the distribution system along with poor revenue collection

Box 1 Single source of water

In both Surat and Shillong, the entire surface water is sourced from a single river, that is, Tapi and Unimew, respectively.

The Tapi is under threat due to contamination from domestic and industrial sources, and the Umiew is under threat from

the massive deforestation, traditional farming practices, and quarrying activities in and around the catchments. However,

in case of Hyderabad, the city’s water supply is fed by multiple sources. These include both rivers and lake, namely, Osman

Sagar on Musi, Himayat Sagaron Esi river, Manjira river and Krishna river. In spite of multiple water sources, in contrast

to other cities, Hyderabad is facing acute water shortage due to rapid degradation of all the above-mentioned water

sources, except the Krishna.

Source City visit, 2008

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(Pachauri and Batra 2001). These drawbacks have in many ways resulted in theestablishment of informal ‘water markets’, where the urban poor are the mainsufferers and pay more than the affluent for the service. To understand the presentsituation and challenges that the ULBs are facing, an in-depth analysis of urbancentres of India was carried out for the chosen parameters through city visits andliterature review. Boxes 1–7 describe the findings from the city visits.

Data management

Except for a very few cities, most local bodies in urban India lack data on themunicipality services. Lack of adequate data and updated maps makes it very difficultfor the local bodies to improve service delivery. There is no record of leaks in thesystem, repairs down, age of the infrastructure, water demand by consumers, amountof water supplied to different localities, and so on. This information is crucial to managethe water works department efficiently and effectively. In most cities, it was found thatno primary assessment had been made to find out the actual UFW (unaccounted forwater). Without such an assessment, it is all the more difficult to design strategies toreduce the UFW. Thus, a comprehensive municipal GIS should provide a commonplatform for data collection, storage, authorized and secure access to spatial data,harmonizing the work flow of respective departments, and disseminating informationfor the benefit of the public at large.

Box 3: Unaccounted for water

In Surat, where on official records the UFW (unaccounted for water) is only 15%, city officials agree that the figure does

not represent an accurate estimate. In cities like Hyderabad and Shillong, which are under severe water stress, the UFW

is nearly 40%.

Source Surat city visit, 2008

Box 2 Poor coverage

The city of Hyderabad has 70% area under the municipal city limits, covered under piped water supply. But this supply is

also irregular, since water is supplied for only half to around two hours every alternate day in the HMC and for one hour

every third day in the surrounding municipalities. Although the city of Surat fares better in terms of coverage (97%), in

terms of regular water supply, it also shares the same fate as Hyderabad, as the city residents receives water on an average

for 2 to 3 hours daily at different timings in different localities. The service providers are able to supply to only 50% of the

population. The residents of Shillong are coping with the poor water supply by using small springs, private bore wells,

and water supplies through private tankers.

Source Hyderabad city visit, 2008

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Source protection/ development

With rapid urbanization, water is becoming an increasingly scarce resource in thecountry. Water crisis is already evident in many parts of urban India, varying in scaleand intensity at different times of the year. In most of the Indian cities, water demandfar exceeds supply.

The cities in India mostly depend upon a single source of water supply, usuallysurface water source. Although groundwater has also been tapped as a major sourceof water supply by residents and industries within the city, the ULBs usually tapsurface water sources to supply water to its residents. Due to tremendous pressurefrom different sectors, the water sources are degrading both in quantity and quality.Unfortunately, there is no provision of protection of the existing source fromdegradation. As a result, once the existing source of water is depleted and is notenough for meeting the demand for water in the cities, residents are left with nochoice but to dig borewells or buy water from private tankers. Apart from that,mismanagement of existing water resources is putting severe pressure on the waterauthorities to look for alternative sources of water. Thus, having exhausted,destroyed, and polluted the nearby sources and neglected using the potential oflocal sources, cities are reaching out to faraway sources for their water supply needs,which are not only expensive but also energy intensive. Where surface water sourcesfail to meet the rising demand, groundwater reserves are being tapped, often tounsustainable levels. Besides, widespread pollution of surface and groundwater isaffecting the quality of water.

Economic efficiency

Most Indian cities have intermittent water supply of varying periodicity and quantity.A large number of cities in India have been able to provide piped water systems totheir residents, but it is characterized by poor efficiencies, high levels of non-revenuewater, low pressure, and water available for only a few hours (ADB 2007). Therefore,the consumers even connected by a piped network often spend large sums of moneyon expensive and unsafe alternatives to cope with the poor quality of services (WSP2006). Apart from that, the urban water sector faces another major challenge—that

Box 4 Tariff reform

Both Hyderabad and Shillong municipalities have reported huge deficits. Although Surat is also faced with similar situation,

the city has already introduced tariff reforms. To recover the future O&M expenditure of each service, necessary projections

have been done with due consideration of past growth rates as well as estimated future growth. The SMC (Surat Municipal

Corporation) is currently recovering 40%–50% of the O&M costs for various services, including water supplies through

various taxes and charges. Further, in the reform agenda of the municipality, the user charges projections have been stated

categorically.


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of poorly maintained transmission and distribution networks. Consequently, physicallosses are typically high, ranging from 25% to over 50%. Low pressures andintermittent supplies allow back-siphoning, which results in contamination of waterin the distribution network. These inefficiencies unnecessarily drive up the operatingcosts of the utility provider.

In the metropolitan cities of India, only 30% of waste water is treated before disposal.Most cities only have primary treatment facilities (Singh 2004). Due to urbanization,waste-water flows will increase in future. Treatment and disposal of waste water areinadequate or non-existent in most Indian cities. Invariably, the infrastructure issue isseen as the principal challenge, so that much of the debate is centred on waste-watertreatment plants, their design, cost of operation, maintenance, and so on.

Another critical problems faced by the urban water sector in India is the massiveamount of unaccounted water. Because of this, the water supply authorities are losingvaluable treated water and incurring mounting losses daily. The main reason for thisis massive leakages across the entire water supply chain, illegal connections, non-/faultymetering, and so on. However, most of the cities do not have a proper system toestimate and track these losses; as a result, the exact quantity and locations are rarelytraceable.

In most cities in India, service providers are not being able to recover the O&M(operation and maintenance) cost, which has led to poor service delivery. The city waterauthorities are facing acute challenges of shortfall in revenue targets, failure to recoverfull cost of services from user charges, debt trap, and so on. As a result, the sectorrelies extensively on large state operating subsidies and capital grants, supplementedby loans to develop new water sector infrastructure. It is, therefore, imperative thatwater utilities should introduce tariff reforms that will lead to full cost recovery of theservices, leading to improved water services to its customers.

Institutional reforms

Despite mammoth efforts of governments, a large portion of the urban population,especially the poor, still lack potable water supply (Chary 2005). In India, 82% ofthe urban population has access to safe drinking water, but only 63% have access totapped water. Even though a target of 140 LPCD (litres per capita per day) has been

Box 5 Installation of SCADA

The city of Surat has undertaken a commendable initiative by installing state-of-the-art instrument for online quality

monitoring at various water distribution networks (installation of SCADA). Online instrument has inbuilt facilities for

preserving database for at least six months. This is also useful for developing a troubleshooting matrix for better process

control. Apart from that, the entire water supply network has been re-engineered; grid network has been developed to

maintain the water quality status even during dry season.


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set, average per capita water supply ranges between 57 LPCD and 160 LPCD. In slumareas, average supply is a mere 27 LPCD, which results poor level of service, causingserious health risks. One of the important causes of poor service in many Indian citiesis the intermittent water supply. In Asia, very few cities get continuous water supply.At present, no Indian city gets 24 × 7 water supplies.

Along with that, another important challenge is the regulatory enforcement toensure compliance with the required practice on part of water authorities, thosedischarging waste water, and those handling and using waste water. Inadequate policyand regulation, combined with a non-transparent and non-participatory process, is atthe root of many of the water management problems plaguing the region. No or littlecooperation exists between the various agencies responsible for the management ofwater resources in different sectors.

Urban slums

The slum areas in most Indian cities are often underserved by the public or ‘formal’water supplies. The slum dwellers facing inadequate water supplies have to bear thetime–opportunity cost, as they have to spend long hours lining up for tankers. Inaddition to that, since regular water supply is not ensured from a single source, thereis a growing reliance on multiple sources. Thus, the amount of time, effort, and moneyspent on ensuring sufficient supply impacts the slum in terms of householdexpenditure, health, routine, work or school hours, and so on.

Informal water markets

Water institutions depend critically on the level of formalization of the water economy(proportion of economy that comes under the ambit of direct regulation). The watersector is highly informal in countries like India. It is marked by heavy dependence ofwater users on self-provision, on informal personalized exchange institutions andcommunity-managed sources (Shah 2007). In most Indian cities, there is a growingmarket for private small-scale companies, mostly selling bulk water through watertankers. The water supplied through such sources is rarely monitored or checked forquality. Further, such markets often lack or are outside the ambit of regulation andcontrol. A few of these companies are registered with the water boards or municipal

Box 6 Zero-leakage campaign

Hyderabad has initiated number of campaign programmes by the HWSSB (Hyderabad Water Supply and Sewerage Board)

to educate people about the value of conserving water. Along with that, a zero-leakage campaign has been started to

reduce the unaccounted for water losses. Further, Andhra Pradesh Pollution Control Board is planning to provide treated

waste-water at a cheaper rate to reduce the industrial demand on treated fresh water.

Source Hyderabad city visit, 2008

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corporations and often have rights or access to agricultural land, which provides themwith access and property rights to the groundwater.

Broadly speaking, the above discussion brings to light that along with efficientresource management and strong institutional mechanism, to ensure long-termsustainability of water resources in urban India, it is also important to increase wateravailability through more efficient allocation and use. This is guided by economicefficiency, equity and access, environmental protection, and sustainable ecosystemsfunctioning, governance based on maximum participation, responsibility andaccountability, and political acceptability (IUCN 2003).

Overall, in most Indian cities, the parameters undertaken for this study are yet tobe properly addressed. Some efforts have been made by these cities to address a fewof the issues within the chosen parameters, but to be able to address the various issuesrelated to water and waste-water management, an integrated and multidimensionalapproach is crucial.

Recommendations to operationalize the parameters

It is imperative for most of the cities across India to undertake reforms to improvethe efficiency and management of the water utility with the principal goal of improvedaccess through conservation. Although it is to be acknowledged that Indian cities areat various levels of provision, performance, and growth, the process and the ultimategoal should be common to all.

The following section presents the recommendations – based on the literature reviewand city visits – that need to be adopted by the cities to be able to manage their waterresources in a sustainable manner. The recommendations have been prioritized basedon our understanding of the area within the urban water sector, where immediate

Box 7 Examples of PPP in India

A success story of PPP (public–private partnership) is Navi Mumbai, which has improved water and sanitation services

by using performance-based contracts to manage its water distribution and transmission the system. There was an increase

of almost 45% in revenues and a substantial drop in customer complaints.

Tirupur in Tamil Nadu was the first town to implement a PPP water project. A consortium of three private firms

implemented the project to ensure sustained supply of water to this industrial town. The project was designed on a BOOT

(Build-Own-Operate-and-Transfer) basis for 30 years, after which it was to be transferred to the government. Post project,

the residents receive water every day for four–six hours, as opposed to receiving water on alternate days. The number of

household connections has increased by 8000, and local industries have a reliable source of water.

The DJB (Delhi Jal Board) has been running into controversy though privatization has not happened as yet. Lack of

transparency in the process is a major concern, and the allocation of risks and potential rewards is drawing heavy flak.

The DJB plans to invest huge public money to improve water supplies, but its plan for a greater role of private players is

being questioned.

Source Mehta U S, Hindu Business Line, Wednesday, 21 February 2007

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attention is required for improved provision of water supply. However, stated prioritiesmay change for individual cities that are dependent on needs, capacity, resources, andstage of development. These recommendations are not mere wishlists but provide aroadmap and operationalization plan that can be incorporated (policy changes, capacitybuilding, and so on) to be able to execute the recommendations.

Each of these recommended components is discussed in detail for their importancealong with a brief operationalization plan. These identified priorities need to be definedfor different cities, since each city is at present is differentially placed due to a varietyof social, economic, demographic and political factors. The nature of capacity building,roles/responsibilities, funds, and so on has been also discussed towards the end ofsection.

Parameter 1: Data management

Data management has been accorded the highest priority, as data requirement andmanagement will precede all other reform initiatives. One of the critical bottlenecksin the management of water resources is the lack of updated data on various aspectsof water supply with the utility providers. Database generation is an important stepto account for and analyse the performance of any water utility/ board. It should alsobe equipped with necessary information required for decision-making at all levels. Thus,it is imperative to couple management strategies such as metering, UFW, and tariffwith an effective data acquisition, compilation, and processing system to use it as anaid for decision-making. A database management system would essentially consist offormats and tools for collection and compilation of data. Therefore, it is important toset up a spatial database system, wherein all records related to water operations underthe utility are maintained on a GIS platform.

A robust database should be maintained on the supply side, as well as the consumerend. The categories of data include customer data, operational data, and asset data.Annexure 1 provides a framework for GIS database system,

An integrated comprehensive water supply network database is important to get aholistic understanding of the entire network and distribution, including inlets/outlets.In addition to this information, other ancillary, yet critical, information (like roadnetwork and locations), should be overlaid to create a comprehensive database tosupport resource management and planning. This data set will also provide informationon coverage, UFW, metering, and so on, and ways to manage the system moreefficiently and effectively. The data will enable cities to develop their future strategiesto improve service delivery and achieve the benchmark set for MoUD indicators.

Technical requirements for data management

As the existing maps are obtained from various sources and are of different scale,integration of such data and information poses the major challenge in GIS database

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generation. However, it is worth noting that GIS database is usually developed basedon secondary information and are always prone to certain level of inaccuracy, especiallyin the case of pipeline network distribution. In this regard, it is highly recommendedthat accuracy assessment of such databases needs to done based on stakeholderconsultation and selective ground survey. Such database can be considered as a baselineand further refinement, updating and development can be done based on informationto make it more accurate, updated, and comprehensive.

Roles and responsibilities

To improve and integrate the data generation and management capacities, the utilitiesor boards can form a separate department to handle such databases and to carry outupdating of data on a regular basis. Any addition or alteration in the existing water supplyinfrastructure should be communicated to the cell responsible for maintaining thisdatabase.

Stakeholders that are generally involved in this component include the water utilitiesand boards, research and engineering institutes, private GIS consultants, and fundingagencies. However, for effective data management staff capacity has to be regularlydeveloped and updated on elements like data collection, screening and logging, datatransfer, data checking, and validation. It is acknowledged that not all the water boards,utilities and local bodies have similar capacities, resources, and so on. Therefore, it isnot possible to create and develop these capacities within the organization. Some ofthe tasks can be outsourced or farmed out to consultancies, research institutes, andso on, have dedicated manpower and infrastructure for data management, includingGIS and MIS (management information system). However, water boards, utilities, andlocal bodies should create adequate capacities to assign, deploy, utilize, oversee andmanage the outsourced assignments.

Parameter 2: Economic efficiency

Economic efficiency is significant for any ULB or water utility to sustain the reforminitiatives and to efficiently manage water supply and resources. Economic efficiencyintegrates several key components that are important to achieve this goal in asustainable manner.P Reduction in UFWP Rationalization of water tariffP Efficient billing mechanism with meteringP ULB’s cost reduction

Reduction in unaccounted for water (Benchmark: 10%–15%)

This section discusses the processes involved in establishing and implementing effectivewater loss management strategies and procedures to reduce UFW.

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Evaluating water loss in the system

The first and the foremost step is to evaluate the amount of water loss. Repair work canbe planned and strategies chalked out once the level of losses in the system is determined.Therefore, such an assessment is extremely useful in resource assessment, policyformulation, and decision-making, particularly on future investments in infrastructure.

Water audit / balancing

Water audit and balancing provide a comprehensive appraisal of the availability,distribution, utilization, and the extent of losses in the system. A water audit is athorough examination of water system records and field control equipment and helpsin accounting for all the water distributed through a water system. In simple terms,auditing the water usage implies doing a mass balance study, wherein the inputs to asystem are compared with the aggregate of consumption and outputs to assess thedifference, which is the loss or unaccounted water. Dataset generated during the waterauditing procedure should be used to calculate the (Infrastructure Leakage Index)1

for the entire city to determine the level of leakage within the distribution network.

Evaluating options to reduce UFW

After evaluating the existing water loss in the system the next step is to evaluate theexisting practices of the local bodies to reduce UFW for both real2, as well as apparentloses.3 There are a number of options that a local body can choose for loss reduction.

Reducing UFW through pressure management

Pressure in the supply lines is often used as one of the performance indicators to assessthe quality of service provided by any water utility. Management of pressure in thepipelines can be done through various measures like installation of pressure gauges,pressure loggers, and network modelling. Pressure management can lead to a minimumhead loss while also ensuring adequate pressure to the consumers located at the tailend of the network. Pressure management extends infrastructure life and reducesunnecessary energy costs.

Reducing unmetered supplies/improving meter accuracy to reduce UFW

Metering as set by MoUD metering should be 100%.Metering needs to be done at three levels.1 Utility level

1 The ILI gives the ratio between unavoidable annual real loss and the current annual real losses, representingthe level of losses currently occurring throughout the system

2 Real loss: water lost through distribution system leakage and excessive pressure3 Apparent loss: includes water that was not read accurately by a meter, unauthorized consumption, including water

taken by theft, data analysis errors, and data used for billing.

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2 Bulk consumers3 Domestic level

P At utility level, installation and monitoring of bulk meters at inlet/outlet of watertreatment plant, break pressure point, and at the outlet of major water storage tanksare essential in order to measure flows and carry out water balance.

P Bulk revenue meters should be installed at the inlet of all bulk consumers like,hospital, schools, hotels, and so on. The cost of the meters and their installationshould be borne by the respective consumer.

P For metering at domestic level, arrangements for installation and the cost of metershould be worked out in advance before going for 100% metering.

P If the utility faces any resistance from consumers regarding installation of meters,in such cases implementation on a pilot scale can be done, before scaling up forthe entire city.

P Utility should also make arrangements and provide facilities for meter repairing andpurchase, as well as monitor meter tampering.

P To ensure quality and reliability of the meters, the municipality should plan outregular schedule of calibration and maintenance of bulk meters in association withthe manufacturer/supplier of these meters.

Reducing UFW through asset management

This includes retrofitting, replacement, and maintenance of existing infrastructure.An asset management programme involves developing a time- bound plan for

retrofitting and replacement of existing infrastructure in a manner that ensures thatthe system keeps functioning at optimum efficiency. Replacement of old pipelines inthe distribution network should be carried out in accordance with a worked out plan.To move towards the long-term objective of providing 24-hour water supply to thecity in a sustainable manner, the existing infrastructure in the city needs to be replacedor rehabilitated in a phased manner. A properly planned maintenance schedule wouldhelp in improving the service life of the infrastructure. It is necessary that regularmonitoring of system health be undertaken, covering all infrastructure—pumps, watertreatment units, pipes, valves, meters, and storage units.

Active leakage control to reduce UFW

Leakage management refers to the cost-effective reduction measures for reducing waterlost due to leakage from the service provider’s distribution system and needs to beundertaken continuously rather than as a one-off initiative. Leakage is an outcome ofpoor O&M and low priority given to leak detection and control. Currently, leak repairis carried out on ad hoc basis with no regular planning. Further, leak control is limitedto repair of major bursts, while hardly any attention is given to the large number of

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smaller leaks in the system. In addition to this, no data or information gathering systemexists for recording leaks. A leakage management strategy is, thus, necessary to addressthe problem of leakages. This should address the following points.P Identification of leakage and repair should be taken up as a priority area by the

utility providerP Adequate resources should be made available for this purpose, so that the utility

can buy adequate leak detection equipment.P Leakages occurring from transmission pipes, valves, and pumps should be repaired

immediately.

Reducing UFW through creation of district metered areas

For better monitoring of the water-supplied vis-à-vis the quantity supplied (total andLPCD), water consumed (total and LPCD), leakages in the system before and afterthe property line/consumer meter, it is recommended that the entire city can be dividedinto small discrete units called DMAs.P DMAs are established to have smaller zones of control in a utility distribution

network.P They consist of a meter and PRV (pressure-reducing valve) controlling pressure

and measuring flow.P The meter allows the measurement of flow into a district and by comparing the

flow out of the district (metered customers) leakage could be determined.

Such sectorization on hydraulic principles also assists in the following ways.P Better pressure optimization over a smaller zone of control and lower water lossesP Financial savingsP Shorter run times of leaks, as they are easier to identifyP Easier active leakage controlP Areas within the network more defined, smaller, and more manageable

Outcome

The outcomes of implementing an effective water loss management strategy includethe following.P More efficient use of existing suppliesP Increased knowledge of the distribution system and reduced leakage levelsP Reduced disruption to customers (more leaks are repaired on a planned basis, rather

than being allowed to develop into major breaks)P Increased revenues from previously undercharged customersP Savings for customers, who pay only for the water received rather than for water

lost in the distribution system

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In fact, all the above stated initiatives to reduce UFWs in the system can be addressedthrough developing DMAs. It is an integrated way of systematically analysing andaddressing the issues in a designated area.

Rationalization of water tariff

Currently, most of the water utilities in Indian cities follow a method of chargingflat rates for water supply, primarily because there is no metering at the consumerend and also a low willingness to charge. An alternative to the current tariffstructure is the ‘two-part’ tariff structure. Such a tariff design typically includes aconsumption/ volumetric rate in addition to the fixed water charge. The former isprimarily a variable charge that recovers costs based on usage. The two-part tariffdesign is beneficial over current structure, as it encourages conservation, recoverscosts of holding unused capacity for peak demand and reflects tariff efficienciesfor servicing various customer categories.

To operationalize the two-part tariff structure, a state-level independent regulatoryauthority needs to be set up and should be given adequate power and authority. Theauthority can play the following roles.P Set principles for tariff setting/ baseline parameters.P Conduct regular monitoring based on incentives and disincentives.P Hear consumer appeal/ case/ conflict settlements.

The two-part tariff structure should be gradually increased over the years with 100%metering, and consumers should start paying for the water they consume.P Consumer categories that are not being charged for the water supplied, for

example, places of worship, need to start paying for the same. If the stategovernment wants to provide free water to these consumers, they need to providesubsidy to the municipality for the same.

P The tariff schedule needs to be made more exhaustive, which not only clearlydetails the applicable charges for each consumer category. Tariff rationalizationshould also include some collection efficiency-improvement measures, forexample, rebate/discounts on early payment and penalty of delayed payment.

P Continuation of lifeline slab for ‘poorest of the poor’ domestic consumerskeeping in view their capacity to pay.

P Currently, there is a high level of cross-subsidy in the existing tariff structure.Bulk consumers getting treated water and industrial consumers are subsidizingthe consumption of domestic, non-domestic, worship places and public stand-post categories. This cross subsidy should be gradually reduced and all categoriesbe moved to pay the costs of supplying water to them. However, as highlightedearlier, there is a need to continue lifeline tariffs for the ‘poorest of poor’consumers.

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P The local body needs to maintain an exhaustive database to be able to undertaketariff rationalization. Hence parameter 1 – data management – can play animportant role here. Also, costs incurred on inputs to water supply provisionsuch as manpower, materials, equipment, fuel and energy, and transportation,and so on, need to be properly documented and accounted for.

Billing and collection

A separate cell for billing and collection can be set up so that this function can besegregated from the rest of the water department functions. The short-term aim forthis cell should be to have completely updated computerized records and the analysisof the available information. The recommendation is to decentralize this process tothe zonal levels for ease in billing and collection.

Cost reduction

Apart from adopting cost-coverage principles for tariff rationalization, local bodiesshould also look for ways to reduce their O&M cost. Local bodies should make allefforts to reduce operational wastage and improve cost effectiveness. Regular energyaudits needs to be carried out by ULBs to save on energy costs. A reputed agencycan be appointed by the ULBs to conduct regular energy audits of the complete systemand pumping stations in water supply sector in order to identify areas where energycan be saved.

Parameter 3: Source development/ protection

Ensuring long-term sustainability of water resources

1 Catchments protection and non-conventional water sources

Most Indian cities depend heavily on surface water supply. However, since theseexisting sources are not protected from overexploitation and pollution, it has led tothe depletion of traditional sources of water supply. In order to manage their mountingwater demands, cities opt for expensive augmentation measures like long-distanceimport of surface water or desalination.

Recommendations

P Non-conventional water sources as complementary supplies for water utilities• Rainwater harvesting• Floodwater harvesting

P Conservation of catchments/ water bodies from encroachment and restoration oftraditional water bodies

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P The treatment of waste water before discharging it into surface water bodiesP Assessment of ecological status of the rivers based on ecological classification

2 Groundwater monitoring

The provision of water supply relates to groundwater, as it is an important source ofwater for the local bodies, and for domestic and industrial use. But the major concernis over decreasing availability and degrading quality. There are numerous groundwatermanagement issues that need to be addressed, if urban groundwater development isto be more sustainable. There are two underlying causes behind the degradation ofthe groundwater resource.a Inadequately controlled groundwater abstractionb Excessive subsurface contamination load

Recommendations

P Non-notified zones should be brought under regulation and strict enforcement innotified areas.

P It should be made compulsory for water-intensive industries within the city limitsto recharge groundwater though artificial means like rainwater harvesting. Thereshould be direct regulatory measures as well as economic instruments (financialincentive and sanctions) to achieve this.

P Groundwater abstraction rights should be withdrawn from industrial companiesthat have not installed water-efficient technologies. Trading treated waste waterfor groundwater abstraction rights with industrial abstractor in fringe urban areason a carefully planned basis can be done.

P Before establishing a new plant, water availability needs to be assessed from long-term and ecosystem perspective, keeping in mind present and future (potential)competing water demands in the area.

P A system of annual water and environmental audits needs to be put in place tomonitor in a transparent manner, the corporate efforts towards conservation of waterand in the areas surrounding the plant.

P Water-intensive plants / beverage industries should ensure that all their bottling unitshave a clear mandate to give back to the local communities an appropriate part ofthe rent accruing from the use of their water.

3 Water quality

Drinking water quality standards (IS 10500) prescribed by the BIS (Bureau ofIndian Standards) are largely based on the standards prescribed by the WHO(World Health Organization). While packaged drinking water standards (IS 14543)provide limits for individual pesticide residues (not more than 0.0001 mg/l) andtotal pesticides residues (not more than 0.0005 mg/l), IS 10500 mentions the

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permissible limits for pesticides as 0.001 mg/l. Also, IS 10500 is silent aboutimportant pollutants like PCBs (polychlorinated biphenyl) and PAHs (polyaromatichydrocarbons). Again, for certain toxic substances like cyanide and lead, differentvalues are provided by IS 10500 and IS 14543. The limit provided for fluoride isa subject of intense scientific debate. (Ayoob, Gupta, and Bhatt 2008).

Recommendations

P In order to provide more clarity about the prescribed standards, there is a needto do the thorough reevaluation of the process of setting of drinking water qualitystandards, which should incorporate the views of different stakeholders likeresearch institutes, NGOs and water experts.

P The quality of the water supplied by ULBs needs to be subject to periodical auditsby independent organizations (like TERI). The audit should also be carried out totest the water quality at consumer level.

4 Waste-water management to control water pollution

P Discharge of waste water into surface sources (like rivers) is a great concern in urbanIndia. Since the majority of waste water is discharged without any treatment, a wastewater management plan is urgently needed.

P The CPCB (Central Pollution Control Board) should come up with separate setof standards for waste water discharged from laboratories. SPCBs (state pollutioncontrol boards) can follow the standards set by the CPCB to monitor the labdischarge and wherever required should make the standard stringent.

Recommendations

The following recommendations are for industrial waste water.P There should be some standards/guidelines for various types of reuse of treated

waste water. Although at present, there is a general guideline on the quality of wastewater for reuse, in order to encourage the reuse of waste water for different purposeslike irrigation of public parks, schoolyards, highway, and residential landscapes, forfire protection and toilet flushing in commercial and industrial buildings, recreationalimpoundments, such as ponds and lakes, environmental reuse by creating artificialwetlands/natural wetlands and industrial reuse (cooling tower), and so on, separateguidelines, wherever required, need to be formulated.

P It should be made compulsory for the industries to reuse the treated water withintheir premises for various purposes. At present, some industries are using treated waterwithin their premises mainly for gardening purpose. However the reuse needs toextend for other applications as well, like industrial cooling, car washing, and flushing.

P Treated water should be supplied to bulk consumers like hospitals, schools,universities, hotels, and shopping malls. To encourage them to use treated water,

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financial incentives need to be given; for example, supply of treated water at a lowerrate compared to the tariff that they pay for drinking water.

The following recommendations are for domestic sewerage.P Improved guidelines and regulations for residential and commercial buildings for

onsite waste-water systems. The guidelines should also provide various technical,as well cost options for decentralized waste-water treatment plants (for example,effective microbe technology).

Water-saving technologies

Several technologies are available to save water.P Ultra-low-flow toilets consume as little as one-fifth to one-seventh of what traditional

toilets consume.P Toilet dams or other water displacement devices block part of the tank, so that less

water is required to fill the toilet following each flush.P Xeriscaping involves planting native species that are able to survive under local rain

and climate conditions can save large amounts of water. Even though the waterconsumed for gardening activities in these cities may be very less, there is a needto look at such water consumption. This is all the more important as the governmentmaintains most of public gardens.

One of the biggest challenges is to persuade consumers to use water-saving devicesdue to its high cost. Therefore, extensive research needs to be taken up in this sectorto come up with water-saving accessories that are easily accessible and affordable. Ifrequired, a subsidy scheme needs to be developed to encourage consumers to installwater-saving equipment. Apart from that, incentives should be also given tomanufacturers/ retailers, to market/ sell water-efficient devices.

As a more aggressive strategy, a municipality can enact standards for water-usingappliances, at least for upcoming localities with new construction. In the medium term,along with the construction of sewage treatment facility, the municipality should alsoconsider exploring opportunities for the reuse of treated waste water.

Parameter 4: Institutional reforms

To implement all the above-mentioned recommendations, a sound institutionalframework is a prerequisite. The institutional reforms that need to be taken up forproper enforcement of the recommendations are the following.

Legal reforms

P Strengthening the existing institutional framework dealing with groundwater requiresa review of the institutional responsibilities and legal provision.

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P SWP (state water policy) should be enacted through a legal framework andeffectively enforced.

P Rainwater harvesting should be made mandatory not only for households andindustries but also for ULBs. There should be proper RWH guidelines, which shouldinclude information on design and methods, as well as contact information.

Policy/regulations

P Policy support and enforcement should ensure that water is released, and abstractionis limited to maintain the recommended environmental flows.

P The SWP should identify the institutional mechanisms necessary for defining andenforcing physical limits to groundwater extraction.

P There should be proper coordination between various agencies involved in managingwater resources at different levels like the CPCB, SPCBs, MCs (municipalcorporations), and GWBs (groundwater boards).

P Regulations are required for residential and commercial buildings for designs/standards for onsite waste-water systems. Enforcement should be applied withsanctions to parties that do not follow the regulations.

P Water resource planning should be inclusive of waste-water reuse.P To prevent encroachment of the catchments of the rivers and other water bodies,

strict regulations should be formulated in coordination with the land developmentauthority.

Public–private partnership model

Private sector involvement in water services is both crucial, as well as a sensitive aspectin urban service improvement in India. PPP (public–private partnership) seeks to fusethe skills, funds and expertise from both public and private service providers with anultimate aim of delivering good standard of services to the consumers. There is,however, a realization that no single model will suit all situations, and PPP must betailored to meet local infrastructure, affordability, cultural norms, and so on. PPPhas been explored and can be further explored in areas such as service contract (billingand collection), management contract (water treatment, and so on), small pipednetworks, leakage control/reduction, and mapping the distribution network. Apart fromthat, some other areas could be metering, pilot demonstration, project implementation,costing, quality control, and customer care (ADB 2007). Though the private sector isexpected to bring in operational efficiencies and arguably better accountability toconsumers, in the absence of adequate incentives, it may not be inspired to meet thesocial obligations. Therefore, attaining multiple policy objectives demands a carefuldesign of the PPP initiatives.

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Community involvement and participation

Increase and improve participation/ awareness through information dissemination,running water and waste-water related programmes and community involvement inW&WW (water and waste-water) controlling and management. The ways in whichcommunity participation can be increased and improved have been discussed in detailin the recommendations in the governance sector.

Recommendation for small and medium cities

Residents of small cities depend heavily on tankers or stand posts. One of the reasonsfor the absence of basic services like piped water and waste-water disposal is the lowinvestment in these urban centres and the inability of the local bodies to raise enoughrevenues. Thus, while the big cities and metropolises can generate funds through localtaxation because the urban economy yields higher revenues, greater poverty in thesmaller towns makes it difficult for ULBs to collect funds for local services, therebyfeeding into the vicious cycle that compounds urban neglect. These cities can graduallyextend their coverage for piped water supply, while in the meanwhile to improve theexisting service delivery, the following approaches can be adopted by the utilities.

Improvement in service delivery in small and medium cities

P Tanker filling points and the stand-post area should be improved to avoid wastageduring filling.

P The condition of tankers should be improved, with regular cleaning schedule forthe tankers, inspection schedule for adequate residential chlorine in the tankers.

P There should be metering of water supplied through tankers and stand posts.

Waste-water treatment plants in small and medium cities

P Cost-effective decentralized treatment of waste water.P Extension of waste-water disposal provision should be in line with the growth of

the city.

Capacity building

Training is required for GIS, MIS, and modern tools for better management of watersuch as network modelling, leak detection, and SCADA (supervisory control and dataacquisition) system, should be given in a phased manner to build their capacity todeal with the growing demand due to urbanization and extension of city limits.

Public–private partnership

In small and medium cities, another way to improve water service and quality is throughPPP models. Public community partnership through development and implementation

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of decentralized water system is also a growing feature in the cities. These water systems,if handed over to be managed or supported by the local community, will offer potentialfor increased community participation. One option in community managed watersupply could be the water kiosk that also has provisions for the users to pay for thewater services, thus making it a revenue-generating enterprise. Based on the principleof decentralized water supply system, a ‘water kiosk’ was designed and implementedby TERI in one of the slums in North Delhi. Such decentralized models can beadopted in the small and medium cities to improve both the water quantity and qualitysupplied by tankers or stand posts.

In these cities, if the present water supply is mainly from tankers, then suppliesbased on tankers and stand posts should be gradually replaced by piped water supplysystem. These smaller urban centres require adequate government support in termsof funds, capacity development, technology, and so on. These reforms, especially inthe water sector, should be taken up in a phased manner, looking at the variousconstraints mentioned. Cities of such nature being in the transition phase have anadvantage to learn lessons in improving water supply services from the bigger citiesand from their own experiences. These cities can develop better planning strategiesand implementation techniques during the transition phase to ensure water for all andif they are tapped for planned development, they would grow as planned bigger cities.

Recommendations for informal markets and urban slums

Informal water market/ providers are an urban reality and emerging stakeholders inthe urban water service provision. Therefore, in the present scenario, a clearly definedpartnership between these small-scale operators and the public undertaking couldformalize this mode of supply and lead to a better control on the quality providedthrough public regulation. At the same time, other aspects like cost and coverage willbe required to be adequately addressed as well. It is possible that both the public andprivate suppliers will stand to gain by making use of the assets available with eitherparty, for example, production capacities, vehicles, distribution, and coverage extent.

The experience of Chennai, where the water board has entered into a contractualagreement with private water tankers organized in associations, could be consideredas an interesting example that can be replicated in other cities. However, issues suchas overexploitation of groundwater, quality control, pricing, and distributional problemsalso need to be adequately addressed.

The recommendation to regularize water supply in urban slums is based on thesuccessful case study from Bangalore, described in Box 8.

Recommendations

The programme offers affordable connection fees and other perks that attract eventhe poorest of the poor. These include the following.

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P Reduced connection fees which can also be paid in instalmentsP Acceptance of proof of residence, such as ration card, voter’s ID, and ID issued by

government, as application requirement instead of land tenure documentsP Simplified application proceduresP Pro-poor tariff structure revisions that include lowering the minimum consumption

rangeP Shared connections for groups of 5–10 households as another option for the very

poor and for those living in extremely congested settlements.

Recommendations for capacity building

Capacity building is required at all levels for efficient and demand-responsiveapproaches in the water management chain. ULBs need to be made aware of the fullrange of low-cost and appropriate technologies for water and need to be provided withskills to assist with their selection. The same professionals have, in turn, a responsibilityto educate and build the capacity of the end-users, especially at the level of thecommunity, to which management and maintenance of the service will be increasinglydevolved. The ULBs are required to be sensitized and encouraged to be responsive tothe specific needs of socio-economically vulnerable groups. The main aim of thetraining should be to motivate and assist the ULBs and generate awareness. This willenable them to formulate implementation strategies, best suited to the local situationby considering the social, economic, technical (engineering and environment) andinstitutional (including operational) aspects.

Capacity building at four levels

It is recommended that for the purpose of training, the entire staff may be dividedinto four categories.1 Operating level: foreman, lineman, and so on2 Supervisory level: junior engineers3 Managerial level: assistant engineers and above, who have overall responsibility for

management within their zones

Box 8 Bangalore slums: beneficiaries of water reforms

Around 43 slum communities in Bangalore got cut-rate water connections as the city’s water utility launched a slum

connection project and offered them an attractive water reform package. They now have water meters installed in their

homes and clean, safe water flowing from their faucets. They also have become the proudest customers of the BWSSB

(Bangalore Water Supply and Sewerage Board), whose slum connection programme improved their access to piped water

supply and brought about a marked change in their lives. Conceived and nurtured by the BWSSB’s SDU (Social

Development Unit), a new unit established to address the social challenges of connecting the urban poor.

Source ADB 2007

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4 Top management: superintending/chief engineers, commissioners, electedrepresentatives (councillors, mayor in council, mayor, and so on)

Apart from the above-mentioned technical capacity building, the following trainingmodules are recommended as part of the capacity building programme.P Policy and institutional reforms: Need for policy, water audits, technical, financial

and institutional strategies and implementation action plans, community managedwater supply schemes for urban poor

P Financial management: Revenue management, including debt, management,customer services and management reporting, financial assessment of water utilitiesand tariff rationalization

P Technical training: Use of GIS and MIS in network planning and management,hydraulic and network analysis, meter and distribution system management, leakagecontrol and detection

P Customer services, reporting, and documentation

Training methodology

P It is recommended that a combination of lectures, exposure visits, and onsite trainingmay be employed for skill development of the staff.

P To begin with, the training cell must conduct a review of the functions andresponsibility of the entire staff of the local bodies and draw up the list of skill setsrequired for undertaking the job.

P This may then be compared to the existing skill sets of the various functionaries toidentify the specific training needs.

P As a first step, the top management must be sensitized to the reform agenda andneed/benefits of investing in a large-scale capacity building programme.

Specific courses that can be conducted to train the staff of local bodies have beengiven in detail in Annexure 2.

Funding for the cities

To operationalize the above-mentioned recommendations, initial funds need to be madeavailable by the centre to the cities, based on detailed project reports under variouscity development schemes. The Centre should set a timeline for the cities to bringreforms in the sector, to ensure that the fund is utilized properly. The JNNURM(Jawaharlal Nehru National Urban Renewal Mission) should also extend its supportto the cities mainly in areas like data management and capacity building of the localurban bodies.

The allocation of the fund should be done in a phased manner. The second phaseallocation should be done based on the achievements of the first phase. A target should

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Level

Module

Policy and

institutional

Technical

Operating level

—

O&M of WTPs and

distribution network

Leakage detection and

control,Record keeping

Metering

Supervisory level

—

Overview of water supply

Basics of design

Basics of equipment O&M

Water balance estimation

and auditing

Materials management

Managerial level

Policy and institutional frameworks for

delivery of services, including various forms of

PPPs.

Principles of financial management, including

tariff restructuring, project formulation, and

appraisal

Overview of water supply operations.

Importance/concepts of WDM

Tendering for technical works

Preparation of DPRs (project formulation and

appraisal)

Project planning and control (Use of PERT/CPM)

Annexure 1: Framework for GIS database system

Annexure 2: Training modules

The table below provides details of training modules that need to be developed forcapacity building of staff of local bodies at different levels.

be also set by the Centre regarding the revenue that the city needs to generate throughreduction in water loss, collection of tariff, and so on, so that cities become financiallyself-sustaining in the long run.

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Source TERI 2006

Financial

management

IT (Information

technology)

Environmental

management

Social

Customer

services

General

NA

Basics of computers

(wherever applicable)

Environmental issues

related to water supply

Social issues related to

water supply

Basics of public dealings

Safety procedures

Rules/regulations

governing utilities

Basics of financial

management

Accounting systems

Procurement

Basics of computers

MS-office

Database management

Environmental issues

related to water supply.

Basic course in

environmental

assessment

Social issues related to

water supply

Grievance redressal

system


Safety procedures

Rules/regulations

governing utilities

Time management

Basics of financial management

Accounting system

Budgeting

Principles of tariff restructuring

Basics of computers

MS-office

Database management, including GIS

Modelling tools for distribution optimisation

and demand assessment

Management information systems

Environmental issues related to water

supply.

Basic course in environmental assessment

Techniques/tools for environmental

assessment

Social issues related to water supply

Rehabilitation of PAP

Techniques for social assessment.

Grievance redressal system


Safety procedures

Rules/regulations governing local bodies

Time management

Human resources management

Basics of water resource management and

issues facing water sector in India.

Level

Module Operating level Supervisory level Managerial level

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ReferencesADB (Asian Development Bank). 2007Country water action: India, Bangalore slums get bargain connectionshttp://www.adb.org/Water/Actions/ind/bangalore-slums.asp

Ayoob A, Gupta K A, Bhatt T V. 2008A conceptual overview on sustainable technologies for defluoridation of drinking waterEnvironmental Science and Technology 38: 401–470

Bossel H. 1999Indicators for sustainable development: theory, method, applications: a report to the BalatonGroupWinnipeg: International Institute for Sustainable Development

Brugmann J. 1997Sustainability indicators revisited: getting from political objectives to performance outcomes—a response to Graham PinfieldLocal Environment 2: 299–302

Chary. 200524- Hour Water Supply: a goal achievable? Hyderabad: ASCI

CMWSSB (Chennai Metropolitan Water Supply and Sewage Board). 1998Ground Water Development and ManagementChennai: CMWSSB, pp. 45

DA (Development Alternatives). 2007Developing water sustainable livelihoodhttp://www.devalt.org/water/WaterinIndia/swm.htm, last accessed on 25 July 2008

Falkenmark M. 1998Dilemma when entering 21st century—rapid change but lack of sense of urgencyWater Policy 1: 421–436

Gleick P H. 2000The changing water paradigm: a look at twenty-first century water resources developmentWater International 25: 127–138

Gumbo B, Forster L, and Arntzen J. 2005Capacity building in water demand management as a key component for attaining millenniumdevelopment goalsPhysics and Chemistry of the Earth 30: 984–992

GWP–TEC8. 2003Poverty reduction and integrated water resources managementDetails available at www.gwpforum.org, last accessed on 9 March 2009[Global Water Partnership Technical Committee paper No. 8, Stockholm]

IUCN (International Union for Conservation of Nature). 2003Promoting water demand management from local to regional levelIn Proceedings of the exchange visit, Seminar for directors held at Cresta Bosele, Selebi Phikwe, Bostswana,9-11 July 2003, Harare

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Lee R G. 1992Ecologically effective social organisation as a requirement for sustaining watershed ecosystemsIn Watershed Management: balancing sustainability and Environmental ChangeNew York: Springer, pp. 73–90

Nair S S. 1998Policy implications: lessons learnt from pioneering efforts made to introduce rainwater-harvesting systems – case study of ChennaiPaper presented at the CSE National Conference on Potential of Water Harvesting, 2–5 October 1998,New Delhi

Newson M, Gardiner J, and Slater S. 2000Planning and managing for the futureIn The Hydrology of the UK: a Study of Change, edited by M Acreman London: Routledge and BritishHydrological Society, pp. 244–269

OECD (Organisation for Economic Cooperation and Development). 2003Improving Water Management: recent OECD experience OECD: Paris

Pachauri R K and Batra R K. 2001Directions, Innovations and Strategies for Harnessing Action for Sustainable DevelopmentNew Delhi: TERI

Parthsarthi, G S and Patel A S. 1997Groundwater Recharge Through People’s Participation in Jamnagar RegionIn Journal of Indian Water Works Association (January), pp. 51–6

SANDRP (South Asian Network on Dams, Rivers and People). 1999Assessment of Water Supply Options for Urban India–large dams have no caseNew Delhi: SANDRP[Submission to the World Commission on Dams: thematic reviews, options assessment]

Shah T. 2007Issues in reforming informal water economies of low-income economies: examples from Indiaand elsewhereIn Community-based water Law and Water Resource Management Reform in Developing Countries, edited byB von Koppen, M Glordano, and J ButterworthOxfordshire, UK: CABI

Simonovic S P. 1996Decision support systems for sustainable management of water resources: 1. General principlesWater International 21: 223–232

Singh R B. 2004Assessment of wastewater generation, management pattern and its re-use potential in urbanIndiaProceeding of symposium HSO4 held during IUGG 2003, at Sapparo, Japan, July 2003

Sophocleous M. 2004Global and regional water availability and demand: prospects for the futureNatural Resources Research 13: 61–75

Stagl S. 2004Valuation for sustainable development—the role of multicriteria evaluationVierteljahrshefte zur Wirtschaftsforschung 73: 1–10

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TERI (The Energy and Resources Institute). 2006Water Demand Management Strategy and Implementation Plan for GwaliorNew Delhi: TERI

Tippeswamy M N. 2004Public Private Partnership in WaterChief Engineer, Corporate Planning BWSSB, BWSSB Training programme manual, August 2004

WRI (World Resources Institute). 2003World Resources 2002–2004: decisions for the earth: balance, voice, and powerWashington DC: UNDP, UNEP, World Bank, and World Resources Institute

WSP (Water and Sanitation Program). 2006Urban Water Sector in South Asia–benchmarking performanceDetails available at <http://www.wsp.org/index.cfm?page=page_disp&pid=16225>, last accessed on 20December 2007

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Introduction

Rapid urbanization and changing lifestyles are resulting in the generation of hugeamounts of MSW (municipal solid waste) in urban areas in the country. Waste is foundlittered all over the city landscape, leading to unsanitary living conditions. Wastemanagement is among the basic essential services provided by municipal authoritiesin the country to keep urban centres clean. However, it is among the most poorlyrendered services in the ULBs’ (urban local bodies’) basket of basic services.

With rapid urbanization, the situation is becoming critical. The urban populationin India has grown five-fold in the last six decades, with 285.35 million people livingin urban areas as per the 2001 census. Municipal laws governing the ULBs do nothave adequate provisions to deal effectively with the ever-growing problem of solidwaste management. Several chapters of Agenda 21 deal with environmentally soundmanagement of toxic chemicals, hazardous wastes, solid wastes, and radioactive wastes.They stress on the direct need to manage waste or advocate the institution of measuresthat reduce the generation of waste, or its effective integration into recycling or reusescheme that maintains material flow loops.

Despite passage of the Municipal Solid Waste (Management and Handling) Rulesin 2000, the situation of management of municipal solid waste in most of the cities isfar from satisfactory. It is of paramount importance, therefore, to ensure that SWM(solid waste management) services are delivered in a sustainable manner in cities withminimal environmental/social/health impacts. In this chapter, we attempt to definesustainability in solid waste management with the help of literature review, and identifya set of parameters that would be crucial to ensure sustainability, and finally,operationalization of these parameters in the city environment.


A literature review was undertaken to assess the present SWM practices in variouscities. A summary of key findings both nationally and internationally is presented inTable 1.

Solid waste managementCHAPTER

2

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Table 1 Summary of review of good practices

City Country Good practice examples

National case studies

Mumbai India P Involvement of CBOs in waste collection by providing them fiscal incentives

in initial years

P Involvement of waste pickers in waste collection

Delhi India P Privatization of collection and transportation services with gradual targets

for collection of waste in segregated manner

P Provision of tipping fee for collection and transportation of waste

P Independent performance monitoring and compliance to regulation built in

the contracts

Chennai India P Privatization of door-to-door collection of waste to achieve 95% collection

efficiency

P Performance-based secondary collection of waste

P Implementation of waste composting and sanitary landfilling of waste

Bangalore India P Planning of solid waste management services by setting up and involving

task force

P Privatization of door-to-door waste collection to reach 100% efficiency

Hyderbad India P Integrated waste management system, resulting in service improvement

and cost effectiveness

P MSW services need to be in sync with other economical/social issues like

livelihood of urban poor, sanitation and health status for wider acceptability

of proposed system

P Need to involve private sector in waste processing options waste-to-energy

or landfilling

Nagpur India P Involving NGOs and local ragpickers in waste collection, transportation, and

treatment, resulting in a saving of Rs 20 million for the municipal

corporation and creation of 1500 jobs

P Adoption of this model by local bodies in other cities like Jalgaon and

Nashik in Maharashtra

Pammal India P Exnora Green Pammal—a unique venture of private, public, and government

participation to improve waste management services

P Role of civil society organization for provision of services in peripheral areas

where service delivery by municipal government is weak

P Achievement of zero-waste disposal

Pune India P All the waste being recycled, treated, and reused in the project institutions

P Not a grain of sullage or garbage being sent outside the campus

P Good example of decentralized waste management for peripheral and

marginalized areas

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Best practices in selected urban settings: national case studies

1 Location: Mumbai

Local government responsible: Municipal Corporation of Greater Mumbai

Action/activities taken: The MCGM (Municipal Corporation of Greater Mumbai)has adopted innovative mechanisms for waste collection in slum areas – such as theSlum Adoption Scheme – wherein local CBOs (community-based organizations) areregistered and provided a monthly honorarium of Rs 2500 per 1000 population forwaste collection and cleaning of small nallahs and drains in identified slum pockets.The amount of honorarium is reduced to Rs 1800 in the second year and to Rs 370in the third year. The concept of this scheme is to encourage the community to ownup local initiatives in planning and execution at the grass-roots level. As of now, the

International case studies

La Ceibe Honduras P Implementation of integrated waste management system

P Political will critical to make such projects happen

Italy Italy P Legislation introduced to effect reduction of waste disposed to landfills

and incentivize waste-to-energy projects

Brazil Brazil P Formation of cooperatives of waste collectors and provision of low-cost

health insurance

Belo Horizonte City Brazil P Establishment of system to collect extra food material from

markets and supermarkets and ensure its distribution to needy population

City of Olongapo Philippines P Formation of dedicated environmental sanitation and

management office with in the local municipal administration to take care

of solid waste management services

P Passing of ordinances related to improvement of services, including

charging of user fee. User fee collected on the basis of social pricing, along

with the electricity bill

P People’s participation to act as ‘ear and eye’ of local administration and

also to participate in waste management services

CBO – community-based organization; MSW – municipal solid waste

Table 1 Continued

City Country Good practice examples

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MCGM has registered about 249 such CBOs, covering about 4.8 million of slumpopulation, and intends to cover 100% of the slums under this scheme by 2006/07.

Another scheme being implemented is the ALM (advance locality management)system, which entails extensive interaction and involvement of the MCGM with localneighbourhood groups in the wards. At present, there are about 584 such ALM streetcommittees in the 24 wards of the city, focusing on ‘zero’ garbage. The focus is onreduction of waste, storage, and disposal, involving ragpickers for collection anddisposal of dry waste. For wet disposal, vermicomposting and composting are beingadopted in several wards.

Lessons learnt

P Incentive for communities to own up local initiatives make the project moresustainable.

P Involvement of waste pickers ensures successful waste collection and local-level wastemanagement; this would be useful for peripheral areas where municipal coverageis generally weak.

2 Location: Delhi

Local government responsible: Municipal Corporation of Delhi

Action/activities undertaken: The MCD (Municipal Corporation of Delhi) isamong the largest municipal bodies in the world, providing civic services to morethan 13.78 million citizens (Census 2001) in the capital city of India. The CSE(Conservancy and Sanitary Engineering Department) of the MCD caters to 94%of the area of Delhi state, serving a population of around 13 million. The per capitagarbage generation is estimated to be 0.45 kg per day, amounting to 6500 MT(million tonnes) per day for the city. Currently, the actual garbage lifting per dayis 6000 MT. The projected garbage generation by 2021 is 18 000 MT per day.The CSE department has a staff strength of 60 000–70 000 persons, consistingmainly of sweepers.

The overall upgradation strategy to create an integrated efficient and effectivegarbage collection, transfer, and disposal system in Delhi was designed in threephases: (a) collection, segregation, and transportation through PPP, (b) a technicalmaster plan for disposal, and (c) private-sector-based treatment and disposalprojects based on recommendations of the master plan. The MCD with otheragencies developed the parameters for project development, including technicaland financial viability studies. The first two phases were started simultaneouslywhile the final phase was expected to commence towards the end of phase II.UNOPS (United Nations Office for Project Services) funds were raised for thewaste treatment and disposal master plan for the state of Delhi for the next 25years.

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Lessons learnt

P New standards of service: The new contracts were designed to provide higher levelsof service than currently available. This included daily clearance of biodegradablewaste; containerization from community bins onwards through the transport chain,and mechanized lifting of waste.

P Segregation and segregated transportation of waste: The contract also specifies asegregation benchmark, which the transporter has to achieve year on year. Thesegregation benchmark, which allows for a low level in the first year of operationssteadily, builds up over a five-year period. Elaborate arrangements have beenconceived of to test the segregation levels achieved at the disposal site. Strongincentives and penalties have been built in to ensure that the transporter achievesthe segregation benchmark.

P Tipping fee and the long-term contract: The contract envisages a nine-yearexclusive concession, which is based on a tipping fee payable by the MCD on aper-tonne basis. This was developed out of the typical depreciation period forvehicles, as well as on a risk-mitigation strategy, based on which the private sectoris expected to take all design and financing risks associated with the project.

P Independent performance monitoring has been built into the contract, with detailedschedules for performance measurement linked to a strong set of incentives forimproving the levels of service and penalties and cancellation of the contract fornon-performance.

P Independent regulation: A specific mandate to an independent consultant to reviewenvironmental compliance is directly related to the performance evaluation of theprivate operator.

P Dispute resolution: a committee of private operators is envisaged, which will beresponsible for benchmarking the performance in each zone and will be the firststop to work out disputes with the MCD.

3 Location: Chennai

Local government responsible: Chennai Municipal Corporation and respective ULBs

The Chennai Municipal Corporation and Onyx are the two main agencies responsiblefor solid waste management in Chennai. As per the corporation, the collection efficiencyis around 95% in the city, and the door-to-door collection reached up to 95% of thecity area.Action/activities undertaken: The reported population of the city was 4 343 000in 2001, and the average per capita solid waste generated within the city wasestimated to be about 782 gm. It has been estimated that the daily generation ofsolid waste is 3400 tonnes and in addition, the Chennai Municipal Corporationalso handles about 500 tonnes of debris.

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The characteristics and quantity of solid waste generated primarily influence thewaste disposal options. It was observed that nearly 60% of the waste generated inChennai is organic in nature.

The municipal corporation has withdrawn its staff from three out of the ten zonesof the city. A seven-year contract was awarded to the private operator Onyx through atransparent competitive bidding process for primary collection, street sweeping,secondary storage at a transfer station and transportation of waste to the disposal site.Onyx had engaged its own manpower, tools, equipment, and fleet of vehicles. Serviceswere paid on a per tonne basis with an annual increase of 5% in this rate built intothe contract. The cost per tonne of waste in this arrangement was merely 50% of thedepartmental cost for the same service provided by the city administration in the otherzones.Impact: The efficiency of the service has gone up and the quantity of waste collectedhas increased substantially. Unfortunately, segregation of recyclable waste at sourcein terms of MSW Rules 2000 was not a part of the contract.

Lessons learnt

The vision of Chennai is to ‘provide to its citizens an environmentally friendly andsustainable waste management system with complete safe disposal facilities by puttingin place waste reduction and recovery mechanisms.’ Collection involves the following.P Primary collection through contracts with community organizations and NGOsP Secondary collection through performance-based management contracts with

private contractors

The disposal of waste involves the following.P Composting the organic fraction of the wasteP Sanitary landfilling of inorganic fraction of waste and the compost rejectsP Encouraging local-level aerobic vermicomposting

4 Location: Bangalore

Local government responsible: Bangalore Municipal Corporation and Bangalore Action Task Force

Action/activities undertaken: Bangalore’s residential waste generation is estimatedat 363 gm per capita per day. The city has entered into two kinds of service contracts—one for primary waste collection from the doorstep and transportation to the disposalsite through small contractors and another for integrated treatment and disposal ofwaste through payment of tipping fees to expert agencies. In the first kind ofarrangement, 66% of the city has been divided into 61 groups, and contracts are givenfor primary waste collection in waste tricycles/handcarts and direct transfer to a vehicle(owned by the contractor) and transportation to the disposal site. Each contractormanages two or three health wards of the city at the most. With this arrangement, the

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ULB is now spending 50% of what it would cost to undertake the task departmentally.In another contract for the treatment and disposal of 1000 tonnes of waste per day,land and solid waste is to be given by the BMC (Bangalore Municipal Corporation)to the private operator, who is expected to make an investment of about Rs 250–300million to set up the facility. The corporation is not expected to pay for waste treatment,but a tipping fee of Rs 195 per tonne of rejects has been agreed upon.

Impact

P There is 100% coverage for door-to-door collection.P Currently, treatment plants with capacity adequate to treat 34% of the waste

generated are available; but there are no scientific disposal facilities available.P Treatment and disposal facilities of 2000 TPD (tonnes per day) capacity are being

developed and are expected to be commissioned soon.

Lessons learnt: Primary to secondary collection, transportation to setting up,operation and maintenance of landfills and other related infrastructure for solid wastedisposal by private contractors.

5 Location: Hyderabad

Local government responsible: Municipal Corporation of Hyderabad

Action/activities undertaken The HUA (Hyderabad Urban Agglomeration)generates around 3379 tonnes of solid waste every day, out of which the MCH(Municipal Corporation of Hyderabad) area contributes about 2240 tonnes and thesurrounding municipalities contribute towards 1139 tonnes at a per capita generationrate of 600 gm per capita per day. The MCH shows a collection efficiency of over91%, whereas the surrounding municipalities show a collection efficiency of 95%.

Bangalore has privatized nearly 75% of its street sweeping operations, applying aunique unit area method to eliminate the bidding process. Each unit, comprising 8 kmof road length, is allotted to a team of 15 female and three male workers for streetsweeping and waste transfer to the secondary storage depot. The unit cost has beenworked out on the basis of the need for manpower, the minimum wage payable, thetools and equipment required, and so on. It comes to Rs 48 853 per month per18 sanitation workers for cleaning during the day and Rs 69 250 per month per18 sanitation workers for night cleaning. Applications are invited and contracts awardedthrough draw of lots. One unit area is allotted to each contractor, who in turn hiressanitation workers. One hundred and sixty-one such contracts are in place, engaging4347 workers in sweeping of streets, footpaths, and open spaces during the day and2015 workers for sweeping 310 km important roads at night. This includes 14 self-employed women’s groups. The system has been in operation for more than five yearsand is working satisfactorily.

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Selco International is running a WTE (waste-to-energy) facility using RDF(refuse-derived fuel) technology in Hyderabad to produce 200 tonnes RDF perday from 700 tonnes of MSW provided by the municipality free of charge. Themunicipal corporation has provided 10 acres of land on a 30-year lease to Selcowith an annual lease rent of 5% of the registered value of the land. Selco has beenfurther allowed to mortgage the leasehold land in favour of financial institutions.Starting with an RDF plant using up to 400 MT of MSW initially, Selco has alsoset up an RDF-based power plant of 6.6-MW capacity at Shadnagar, 55 km fromHyderabad. The fluff prepared at the RDF plant is transported to the power plantwhere it is used along with 30% agro waste for generating power. The plant hasbeen functional since November 2003. It is expected that this plant will reduceGHG (greenhouse gas) emission equivalent to 43 705 MT of carbon dioxide everyyear.

Impacts

P Waste collection efficiency is around 85%.P Several waste-processing schemes and landfill closure schemes are in the

pipeline.P Collection and transportation are efficient; however, segregation and processing

of waste have not been very effective.P Awareness regarding management of MSW is reported to be 72%.P Integrated MSW management aiming at zero-waste disposal is in the planning

stage for the city.

Lessons learnt

P Integrated SWM system is required for cities to operate the process moreefficiently at lesser cost and making the service sustainable.

P MSW management needs to be in sync with other economic/social issues likelivelihood of urban poor, sanitation and health status for wider acceptability ofthe proposed system, especially waste segregation, during collection; this wouldbe a key to the success for any waste processing option adopted by a local body.

P There is a need establish a cost-recovery mechanism for services to make themsustainable.

P There is a need to involve expertise available with the industry sector to developWTE options for the city (need for local body to work closely with corporatesector).

P There is very little involvement of ragpickers of the informal system in thepresent door-to-door solid waste collection system; they can be involved in amore productive manner; this would also provide them with livelihoodopportunities.

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6 Location: Nagpur

Local government responsible: Nagpur Municipal Corporation, in partnership with the CDC

Action/activities undertaken This is a PPP (public–private partnership) for 100%door-to-door garbage collection in Nagpur. The CDC (Centre for DevelopmentCommunication) recognized the crucial role of SWM and initiated a project in Nagpur.The purpose of the project was to improve SWM practices in the city and provide alow-cost, ergonomic model for addressing the growing problem of solid waste disposal.The other purpose, with a social dimension, was to promote livelihood opportunitiesfor the ragpickers, especially women ragpickers and other neglected sections of thesociety.

Impacts

Economic: The NMC (Nagpur Municipal Corporation) has been able to save aboutRs 20 million by involving the CDC. The initiative has the potential for innovativelivelihood generation opportunities for unskilled/illiterate people. The project has beenable to create 1500 jobs in Nagpur city alone. According to an estimate, if replicatedin the entire urban area of the country, it can create livelihood opportunities for around280 000 people. Nagpur’s image as a green and clean city has boosted the localeconomy, especially the tourism sector.Social: Professional training and financial stability have improved the condition ofsanitation workers. Equal number of women ragpickers has got livelihood opportunitiesin the project. The community has been actively involved in the project and appreciatesthe initiative.Public health and quality of life: Waste is being handled in a hygienic and scientificmanner with the help of ergonomic equipment. This has helped in minimizing pollutionand unsafe handling of waste. The drains of the city are no longer clogged, and hence,the breeding sites for malaria-spreading mosquitoes, pigs, and other stray animals haveminimized.Policy level: Other municipal bodies of Maharashtra, including those in Nashik andJalgaon, have adopted the CDC model. The governments of other states haveformulated policies on the issue of SWM based on this model.

Examples from cities in transition

7 Location: Pammal, Tamil Nadu

Goal: Role of civil society organizations in areas in transitionActivity: Exnora Green Pammal Pammal is a unique joint venture among private,public and government bodies to improve the living environment and to promote moreenvironment-friendly, sustainable human settlements. The initiative has demonstratedthat in areas in transition from rural to urban, where service delivery by government

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is weak, civil society organizations have an important role and enormous potential toimprove the local environment, which will have a dramatic ripple effect in bringingimprovements.

Today, Pamal is an example of how civic engagement and people’s partnership canbe used to achieve source segregation of waste, vermicomposting of organic waste,sale of recyclables, and the restoration of the Pammal Lake, which has led to a ‘green’Pammal.

In addition, these practices have generated jobs for many unemployed youth asstreet beautifiers and encouraged the existence of micro enterprises. Trainingprogrammes have also been given to the workers on how to recycle, and instructionson value-added sales have also helped many workers to ensure self-employment forthemselves.

Since its start in 1994, Pammal Green Exnora has been able to standardize thecollection and composting methodology over time to suit the local conditions. Thezero-waste centre used is unique in many respects. Garbage collection is done throughstreet beautifiers with waste-collection cycle carts.

The compost produced is further sold as fertilizer and even the subscription feecollected from every household is minimal. The Exnora Green Pammal project hasbeen able to sustain itself economically since 1994. There is no more dumping orburning of garbage in any of the 21 wards of the Pammal municipality. In summary,the impact of the Pammal Green Exnora project has been highlighted as an efforttowards sustainable human settlement and living environment.

8 Location: Pune

Activities

DOSIWAM (decentralized onsite integrated waste management system):A pilot project was undertaken in an institution, Maher, Vadhu Bk, Pune, where about400 inmates are expected to live. In this pilot project, all night soil is treated in a biogasplant. For cattle dung, biomethanation and vermicomposting are undertaken. Thesullage from all sources, including kitchen, is stabilized by collecting the water via pipesand passing it through intercepting tanks and grease trap arrangements. The organicgarbage is vermicomposted and inorganic garbage is given for recycling.

The end-products for all these processes are in the form of stabilized water, compostmanure, and vermicasts. All these are used for agricultural produce. The process isdesigned in such a way that not a drop of sullage or a grain of garbage leaves theircampus. Everything is treated, recycled, and reused profitably within the campus.

Such projects/initiatives are useful for replication in small townships or housingsocieties in peri-urban areas, where coverage by ULBs is generally poor.

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Best practices documented in Indian cities under JNNURM

The practices listed on the programme’s website include the following.P Door-to-door waste is collected in various cities.P Waste is segregated into recyclable and biodegradable.P Biodegradable waste is directly used for preparing vermicompost without extra effort

of segregation.P Vermicompost produced in vermicomposting plants is used in the municipal

gardens.P Solid waste management is given to private contractors for collection of waste at

source, transportation, secondary storage, and dumping it on landfill site.P Akola Municipal Corporation is the first in Maharashtra to involve community

organizations and the unemployed youth in collection of waste on house-to-housebasis.

International best practices

9 Location: La Ceiba

Goals: The goals were to introduce the ISWM (integrated solid waste management)principles of efficiency, equity, fairness, and sustainability into the activities of wastecollection in La Ceiba.Initiative: In 1995, the then-mayor of the city of La Ceiba, which is located on theHonduran North Coast, initiated a project with PASI (Programme for the Support ofthe Informal Sector), and the Fund for Infrastructure, to close the Los Laurelesdumpsite and develop a new landfill (Anschütz, Rudin, and Scheinberg 2004).

The technical adviser for this initiative was the IPES (Institute for the Promotionof the Social Economy) from Lima, Peru, which was at that time already involved inthe UWEP (Urban Waste Expertise Programme), doing local research on MSEs (microand small enterprises) and the informal sector.

The La Ceiba initiative became connected with a more general Latin Americanprogramme developed by both the World Bank and the Dutch embassy, which wereinterested in providing funding for La Ceiba, Honduras, but were lacking a counterpartand an additional funding partner to provide $20 000. The IPES made the connectionbetween the municipality, UWEP joined as partner, and the PPS La Ceiba came intobeing.

Some of the specific pilot projects and results in UWEP I in La Ceiba are thefollowing.P Improvement in the management capacity of the municipality through developing

a waste management information systemP Improvement of waste system performance and promotion of ISWM, by

strengthening the role of association of MSEs in waste collection and recycling as

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a way to achieve social privatization. This was originally a very ambitious andcomprehensive pilot project, which planned to create 24 micro enterprises and putthem in charge of all urban waste activities.

P Environmental education and organization of a participatory urban consultation

Lessons learnt

P The ISWM intervention has to be demand-driven and respond to a clearlyarticulated need that local stakeholders and local authorities themselves recognize.

P Political will and a favourable political macro-landscape are both critical to anintegrated and sustainable management of solid waste.

P When political will or attention is lacking, the importance of a local constituencyor interest of local stakeholders increases, as this is a path to either changing thefocus of the politicians or changing the politicians themselves in a following election.

P Coordination or management from a remote location does not work in ISWM.P The methodology of the intervention is critical to effectiveness and sustainability.

The programme becomes a model of good governance, and if it is not rooted indemand and transparency, the model itself is not useful. On the other hand, themethodology has to fit local circumstances.

P Any intervention, but especially a multi-year programme, has to have broad andformalized political support.

10 Location: Italy

Activities: Every year, about 80 million tonnes of waste (of which, around 34%is municipal garbage) is collected in Italy. Historically, waste disposal was mainlybased on landfills, but changes in environmental legislation (Law 22/1997, RonchiDecree) provide a strong indication to reduce waste disposal into landfills and toincentivize waste-to-energy and recycling activities. As a result, new opportunitiesfor project finance deals have come up, mainly in the waste-to-energy sector,through BOT (build-own-transfer) concessions or private/public joint ventures. Afurther boost to waste-to-energy should come from the enforcement of Law number79/1999, which pursued the complete reorganization of the power sector in Italy.In particular, this law provides that in order to stimulate the production of powerfrom renewable sources, starting from 2001, power producers and/or importersmust put on the electricity market a quota of production generated throughrenewable sources. This quota has been set by the law at 2% of the overall powerproduced or imported by large power operators (exceeding 100 GWh/year of soldvolume, not including co-generation, self-consumption, and export) (UTFP 2001).Impacts: It has been estimated that, in the medium term, waste-to-energy willresult in an additional power production, about 4.40 GWh/year. Since 1998,

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approximately 20 new plants started construction and/or operation, including theLomellina, Piacenza, and Trezzo projects.

Lessons learnt: Changes in legislations can effectively improve the situation by PPPprogrammes such as waste-to-energy options.

11 Location: Brazil

Activities: Initiatives taken for the informal sector in waste management(cooperative, low-cost health insurance, and so on) were identified. The differententrepreneurial forms studied are found in every part of the waste cycle: some of thempromote recovery at the point of origin, while others play an important role in thesweeping and cleaning of public streets, in garbage collection and in the managementof small-scale final disposal sites. Recycling enterprises were not included in the study.

Special attention was paid to financial–economic aspects of the enterprises, andwe have attempted to elaborate performance indicators for each enterprise. However,in some cases, it was difficult to obtain financial information because no accounts werekept, nor was there a register of the waste collected, separated, or disposed of. Thissituation restricted the possibility of drawing detailed comparisons.

12 Location: Belo Horizonte City (Brazil)

Goal: A selective organic collection with Eco CitizenshipActivities: Since 1993, the ISWM Model that has been adopted for Belo HorizonteCity includes a composting programme that established a selective organic wastecollection. During the monitoring of this collection service, it was found that theunused food that was disposed of, despite its low commercial value, still preserved itsnutritional value for use by the deprived population.

Taking into account the above finding, the Food Supply Programme, the selectiveorganic collection (collection of excess food) with Eco Citizenship was formulated. Thisprogramme consists of a special system of food collection and distribution. The excessfoodstuff, mostly from supermarket shopping chains, had no commercial value due toaesthetic reasons and used to be disposed of, despite being fit for human consumption.

This programme had five distinct stages.1 Selective collection service executed at commercial establishments such as markets

and supermarkets that donate food2 Separation of the collected food and classification into two groups—food that

required some kind of processing before consumption and that which did not3 Processing of the food following these procedures: peeling, cutting,

decontaminating, centrifuging, vacuum packing, weighing, and storing in arefrigerator

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4 Directing of the processed food to the Municipal Food Distribution Centre to bedistributed to the social institutions that had already been recorded

5 Taking the leftovers from the food-processed flow to the municipal compostingunit

Impact: The compost produced was used in school vegetable gardens, parks, andcity squares. Among the results and the innovations of the Food Supply Programme,a combination of two antagonistic elements were distinguished – food versus waste –in order to overcome problems of apparently distinctive nature such as food wastageand bad nutrition. The results also underlined the importance of using monitoringtools such as observation and analysis of the organic material collected, in order todevise solutions to the problem of wastage. This measure of diverting unused foodmaterial leads to a change in the course of this organic material, so that, instead ofbeing directed to a composting plant, it was processed and reused as food.

13 Location: City of Olongapo, Philippines

Goal: Integrated solid waste collectionActivities: In September 1989, the City of Olongapo launched the Integrated SolidWaste Collection System. New trucks equipped with public address systems werebought and paraded in the entire city to show to the population that the localgovernment was serious about the introduction of an integrated system of solid wastecollection. Simultaneously, the city established ESMO (Environmental Sanitation andManagement Office), a full-fledged municipal department responsible for managingthe system.

Between 1988 and 1990, the City Council enacted eight ordinances or measuresdealing with the utilization of the sanitary landfill area, the rates of solid waste collectionfees, the schedules and mechanics of collection, and so on. The ordinances weresupplemented by the directives and notices by the local chief executive. For residentialareas, solid waste was collected twice a week, while in commercial areas, it is collecteddaily.

People’s participation in the programme was encouraged, because the people areactors in the system and not mere observers. They have a responsibility to follow theregulations, particularly with regard to the use of plastic bags and the payment ofservice fees. During a massive information campaign, the support from everybody inthe community was solicited in order to minimize resistance to the programme.

A social pricing system was adopted for the service fees. Fee collection was keptsimple by synchronizing the payment for the fee with that of the electricity bill. Citationtickets were issued, if the premises found unclean.

Volunteer groups of women, men, youth, and senior citizens joined in clean-updrives during weekends to cut tall grasses and clear canals and waterways. Vendors

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were kept alert in their businesses as the law keepers (‘eyes and ears’), not only tokeep peace and order, but also to maintain watch on sanitation and cleanliness. Novendor was to leave his or her space uncleaned at the end of the day. Theneighbourhood received revenue incentives for the disposal of plastic bags and for theinstitutionalization of cleanliness awards in their area of jurisdiction.

Lessons learnt

P Different departments should be established to take care of environment-relatedactivities.

P For residential areas, solid waste can be collected twice a week, while in commercialareas, it should be collected daily.

P People’s participation is an important component of SWM and should beencouraged, because the people are actors in the system and not mere observers.

P A social pricing system should be adopted for the service fees, for example, feecollection was kept simple by synchronizing the payment of the fee with that of theelectricity bill.

P Incentives to workers—the neighbourhood receives revenue incentives for thedisposal of plastic bags and for the institutionalization of cleanliness awards in theirarea of jurisdiction.

Developing a framework for analysis: solid waste management

This section builds up on the learning from case studies on municipal solid wastemanagement, implemented both nationally and internationally, with a focus ondeveloping economies, which more or less represent the present situation in Indiancities.

The sections below define sustainability and set up procedure and processes toattain it with respect to solid waste management in Indian cities.

Defining sustainability in solid waste management

As per the experiences captured during literature review, sustainability in solidwaste management would essentially mean the following.P Complete planning, from primary collection to final disposal of the ‘ultimate’

waste in an environmentally sustainable mannerP Compliance with the applicable rules and regulationsP Implementable projects through interactive planning involving all the

stakeholdersP Long-term maintenance of the projectP Quality of service to the satisfaction of the citizensP The extent of service coverage, including slum areas

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So, sustainability in the delivery of waste management services is defined as aprocess seeking appropriate levels of source segregation, recycling, and resourcerecovery with environmentally appropriate technologies and involving cost-recoverymechanisms for long-term financial sustainability, leading to the conservation of naturalresources by minimizing the health, environmental, and aesthetic impacts of solidwastes. The most applied tool for achieving sustainability in waste management is toadopt the concept of ISWM. The concept of ISWM recognizes three importantdimensions in waste management: i) the stakeholder involvement, ii) technical andmanagement-related aspects, and iii) local context affecting the sustainability in thegiven geographical setting (Anschütz, Rudin, and Scheinberg 2004).

The concept of ISWM not only takes technical and financial/ economicsustainability into account, but also includes socio-cultural, environmental, institutionaland political aspects that influence overall sustainability of waste management. In thecontext of ISWM, ‘sustainable’ can, thus, be described as the following.P Appropriate to the local condition from a technical, environmental, social, economic,

financial, institutional, and political perspective; andP Capable of maintaining itself over time without exhausting the resource it needs.

The term ‘integration’ in the context of solid waste management refers to the following.P Integration of different aspects of sustainability (technical, environmental, public

health, financial, and so on)P Integration of different collection, transportation, and treatment options at different

habitat levels—household level, neighbourhood level, and city levelP Cooperation, alliance, and socio-economic interaction of different stakeholders either

engaged or affected by waste management services (users, government, formal/informal organizations, and so on)

P Integration of waste management system with other basic services like stormwaterdrainage, sanitation, and health and hygiene programmes in the city

Summarizing above, ISWM will be a holistic approach to environmental, as wellas resource and waste management issues. ISWM systems combine waste streams,waste collection, treatment and disposal methods, with the objective of achievingenvironmental benefits (if possible), economic optimization, and social acceptability.

Current scenario of solid waste management in India

MSW generation in Indian cities is estimated to have increased from six milliontonnes in 1947 to around 50 million tonnes in 2006 (CPCB 2000, TERI 2001).The absolute average annual increase in waste has more than doubled since 1997.The cumulative land requirement for disposal during this period, assuming at least80% of this waste was collected, is estimated at 75 km2 (TERI 1998, 2001).

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Another important aspect of MSW generation in cities is generation of C&D(construction and demolition) debris, which is roughly around 20%–25% of thetotal MSW generated in most cities. At present, there is no separate mechanismto recycle or dispose of this C&D debris, and though collected separately, it oftenlands up in landfills, thus competing for space earmarked for other waste streams.

As the population in cities grows, this would put further pressure on urbanutilities to create additional infrastructure for the management of solid waste. Oneof the critical factors that would influence the cost of infrastructure developmentand maintenance is the transition of Indian cities from lower to higher classes,signifying growth in their populations (IIR 2006).

With no storage of MSW at source (in domestic, commercial, and institutionalbins), people generally tend to dispose of waste on streets, drains, open spaces,and water bodies. MSW is, thus, mostly collected by municipalities through streetsweeping and drain cleaning, with a collection efficiency ranging from a high of90% to a low of 25% (CPCB 2000). In comparison, the collection efficiency inother Asian cities such as Tokyo, Taipei, Hong Kong, and Singapore varies between95% and 100%. A part of the uncollected waste normally finds its way into sewersor is eaten by cattle; the rest is left to decay or is burnt in open dumps.

The low collection efficiency is aggravated by equally poor transportationefficiency. In 2003, in a survey of 128 Class I cities, about 46% were found to betransporting less than 50% of their waste to disposal sites (Asnani 2005). The wastetransportation fleet in India is also outdated and poorly maintained. As regardsprocessing of MSW, in a 2003 survey of 128 Class I cities, only 10 were found tobe processing 50% or more of their waste and only one city (Pune) was disposingof 50% of the waste in sanitary landfills (Asnani 2005). Further, only a few citieshave the capacity to compost or utilize MSW in power generation. There are twoMSW-to-energy projects operating in Hyderabad and Vijaywada, in AndhraPradesh, processing around 1000 TPD (tonnes per day) of mixed waste. Thebalance of around 182, 000 TPD of solid waste is either landfilled or thrown inopen dumps.

In the absence of an efficient SWM system, solid waste is dumpedindiscriminately in low-lying areas designated as solid waste landfills with little orno treatment. There is no containment system in these disposal sites, which leadsto groundwater contamination. The unsanitary conditions prevailing at thesedisposal sites pose a health hazard to sanitary workers and ragpickers frequentingthese sites.

The land requirement for waste disposal is increasing every year, and most ofthe existing ‘dump sites’ are filling faster than their intended design period. Severalcities in the country are already facing an acute shortfall of land that can be usedas landfills.

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Municipal solid waste (Management and Handling) Rules, 2000

The MoEF (Ministry of Environment and Forest) has notified Municipal Solid Waste(Management and Handling) Rules, 2000, and made it mandatory for all municipalauthorities in the country, irrespective of their size and population, to implement therules. To improve the systems, the following seven directives are given.1 Prohibition of littering on the streets by ensuring the storage of waste at source

in two bins; one for biodegradable waste and another for recyclable material2 Primary collection of biodegradable and non-biodegradable waste from the

doorstep (including slums and squatter areas) at pre-informed timings on a day-to-day basis using containerized tricycle/handcarts/pick up vans

3 Street sweeping covering all the residential and commercial areas on all days ofthe year, irrespective of Sundays and public holidays

4 Abolition of open waste storage depots and provision of covered containers orclosed body waste storage depots

5 Transportation of waste in covered vehicles on a day-to-day basis6 Treatment of biodegradable waste using composting or waste-to-energy

technologies meeting the technical and environmental standards laid down7 Minimization of waste going to the landfill and disposal of only rejects from the

treatment plants and inert material at the landfills as per the standards laid downin the rules

Responsibility for implementation

The main responsibility for the development of required infrastructure, as well asimplementation, lies with municipal authorities. The secretary, urban developmentdepartment of the respective state government, is responsible for the enforcement ofthe provisions in metropolitan cities. A district magistrate or a deputy commissionerof the concerned district is responsible for the enforcement of these provisions withinthe territorial limit of his jurisdiction. The SPCBs (state pollution control boards) areexpected to monitor the compliance of standards on groundwater, ambient air,leacheate quality, and the compost quality, including incineration standards as specifiedin the rules. The state board or the committee is directed to issue authorization to themunicipalities when asked for within 45 days and the central pollution control boardis expected to coordinate with the state boards with regard to implementation of therules. Several training programmes and workshops have been organized by the centralgovernment, state governments, CPCB, SPCBs, as well as national and internationalinstitutions to guide the cities and towns in implementing the rules expeditiously.

Major issues affecting solid waste management in India

The issues affecting efficient solid waste management in the country can be broadlydescribed under technical, institutional/ management related, financial, and social.

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Technical issues

P Need for documentation and database of technology options for processing anddisposal, commissioned in India, which are operational. Presently, authentic dataand detailed information are not available. Of particular concern is the recordof operation throughout the existence of a facility. In many cases, facilities /plants work under capacity or have been temporarily or permanently closed.

P Documentation of the feedback, including actual capital investment, difficultiesfaced in installation, operation and maintenance of the project facility and itscost, frequency of repair and replacement, and so on.

P Detailed data collection on quantity and composition of municipal and othertypes of solid waste generated within the municipal area, preferably on a regularbasis (say, once every fifth year). There are very few authentic studies on thisvital subject. This data is essential for appropriate and realistic design of solidwaste management system. Actual operators find it very difficult to do properplanning and system designing even while preparing bid offers.

Reliable data collection regarding solid waste management is very difficult in viewof the various uncertainties associated with waste generation, such as season and festiveoccasions. Therefore, proper data can evolve if data is collected for at least one fullyear, which would cover these uncertainties. Normally, data collection is done for shortperiods—from a day to a week or a fortnight.

Sampling and analytical procedures also remain grey areas. In contrast, samplingand analysis of waste water have developed to a greater extent. It is strongly felt thatdetailed protocols should be developed regarding data collection, sampling, andanalysis of different kinds of urban solid waste materials. The Bureau of IndianStandards should be directed to develop these and also update their existingstandards with detailed deliberation.

Regular data collection would provide vital information regarding changing natureand composition of waste with time, which in turn would help in directing R&D efforts,designing waste management systems and strategy for future programmes.

Institutional issues

P Absence of a nodal division or department in the ULBs to take care of waste-management issues in a comprehensive manner. In a majority of the municipalbodies, the health department carries out the sanitation and conservation-relatedservices, including solid waste management. Cleaning of drains (followed by removalof drain silt) and removal of construction and demolition debris are mandated tothe engineering department of the ULB. In some cases, the vehicles and repair andmaintenance workshops are entrusted to a different department (such as transport/mechanical department) in the ULB. Only in megacities do the municipal

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corporations have dedicated solid waste management cells, headed by seniorengineers (such as engineer-in-chief or chief engineer).

P Lack of qualified and experienced municipal staff with knowledge of state-of-the-art developments, engineering, and planning capability.

P Lack of technical and engineering skills in majority of the municipal bodies.P Lack of positive work culture for efficient service delivery.

Regulatory issues

P There is a need for a nodal ministry in the central and state governments tocoordinate all aspects of urban waste management in a comprehensive manner.In a broader format, the mandate of such a nodal ministry could includeenvironmental sanitation, including all aspects of urban waste management.

P The gaps and overlapping areas in terms of subject and spatial location (peri-urban areas, urban villages, and so on) need to be addressed.

P Policy is required for providing simple tools, which could go a long way inimplementation of projects expeditiously and with least controversy andresistance. For example, provision of appropriate sites for processing and disposalof different kinds of waste in the land-use planning of each district. With moderntools like GIS (geographical information system) and GPS (global positioningsystem), it would be also possible to plan for regional facilities for economy ofscale and environmental benefits, wherever applicable. Such attempts have beenmade in the state of Gujarat.

P On similar lines, provision of regulatory toolkits in the form of approved formatsfor different types of contract documents / concession agreements and MoUswould be helpful in streamlining such systems and schemes and in bringingabout transparency.

P The issue of jurisdiction, for example, bio-medical and certain industrial wasteare generated within the municipal area but these are outside the purview ofthe municipal bodies.

P Linkages need to established between the urban, rural, agricultural, and forestrysectors for increasing viability and long-term sustainability of urban wastemanagement systems.

Social issues

P· There is no structured approach for participatory planning and communityinvolvement. It has been shown in certain areas that community involvementleads to better management and control. For example, a recently released WorldBank report highlights the role of community-based forestry for povertyreduction and rural economic growth through the JFM (joint forestmanagement).

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P Similarly, there is no organized approach and policy for awareness generationand advocacy, which could play the most crucial role.

P Policy should be formulated for environment education and training (capacitybuilding), one of the most crucial issues for sustainable benefits. Fortunately,this component has been incorporated in the JNNURM projects.

Any such policy should also outline the mode, methodology, and fundingmechanism on a sustainable and routine manner. Some of these issues are discussedin more detail in the sections below.

Compliance with MSW Rules 2000

Complete compliance up to 31 December 2003 remains a distant dream. Manycities and towns have not even initiated measures, whereas some cities have movedforward on their own or under the pressure of Supreme Court, respective stategovernments, and pollution control boards. There is no consolidated official dataavailable about the status of compliance with MSW Rules in the country, thoughall the states are expected to submit their annual reports. A study was conductedto ascertain the status of compliance of MSW Rules 2000 by Class I cities of India.One hundred and twenty-eight Class I cities of India responded and the status ofcompliance as on 1 April 2004 shows that there was insignificant progress in thematter of processing of waste and construction of sanitary landfills, and only aboutone-third compliance has taken place in the remaining five steps.

Reasons for non-compliance with MSW Rules

As per municipalities, compliance in waste collection is constrained by the following(IIR 2006).P Lack of public awareness, motivation, and educationP Lack of wide publicity through electronic and print mediaP Lack of finances to create awarenessP Resistance to changeP Difficulty in educating slum dwellersP Lack of sufficient knowledge on benefits of segregationP Non-cooperation from households, trade, and commerceP Unwillingness on part of citizens to spend on separate bin for recyclablesP Lack of litter bins in the cityP Non-availability of primary collection vehicles and equipmentP Lack of powers to levy spot finesP Lack of financial resources for procurement of tools and modern vehicles.

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In creating treatment and disposal facilities, the constraints outlined included thefollowing.P Paucity of financial resources, as well as lack of support from state governmentP Non-availability of appropriate landP Prohibitive time and cost considerations in land acquisition and implementation

of treatment and landfill technologiesP Lack of technical know-how and skilled manpower for treatment and disposal of

wasteP Low quality of municipal solid wasteP Delay in clearance of disposal sites

Figure 1 summarizes the compliance status of ULBs with respect to MSW Rules.There is a definite awareness among local bodies, as well as policy-makers on solidwaste management systems. There has at least been some progress in the rightdirection in seven years’ time since the passage of MSW Rules, which is not a meanachievement for India. Even in the US, which has been trying to follow efficientSWM practices for the last 25 years, only 25% solid waste is recycled and 15% ofthe waste is utilized for waste-to-energy and the remaining 50% of waste, includingorganic matter, is landfilled. The situation in India is fast improving, with regularmonitoring by the Supreme Court, initiatives by various state governments, largefinancial support from the central government on the recommendation of 12thFinance Commission, allocation of urban renewal funds to the states, and technicaland financial support from various ministries, and national and internationalorganizations.

Figure 1 Compliance status of MSW Rules

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Obstacles to private contracting in SWM

Absence of user charges

Provision of doorstep waste collection service under MSW Rules 2000 adds to thecost of SWM service and, thus, affects the finances of ULBs unless they introducerecovery of user fees from the beneficiaries. This is lacking in most cities, and thecontractor is paid out of the general revenue of the local body. This requires the localbody to have a sound revenue base, from which to allocate resources for SWM. Theprivatization effort currently underway in North Dumdum and New Barrackpore, inWest Bengal, and Gandhinagar, in Gujarat, are good examples of user charges leviedto sustain door-to-door collection on a long-term basis without additional burden onthe ULBs.

Absence of a labour rationalization policy

In some cities, as much as 20%–50% of the ULB staff is engaged in waste collectionand transportation alone. Quite often, the staff is more than adequate but underutilized.Private contracting to improve the same service renders the existing staff redundant.It, therefore, becomes imperative that an adequate staffing plan be drawn up inconsultation with the unions to arrive at a judicious combination of labour retrenchingand redeployment.

Lack of integration of formal and informal sectors

The privatization efforts in various local bodies so far have also not been able tointegrate the informal and formal private sector, thus, losing out on benefits from suchintegration. The informal private sector, including the waste pickers and recyclers,carries out unregistered and unregulated activities related to waste collection, sorting,and recycling, thus providing livelihood to this sector. Their contribution to local wastemanagement, however, cannot be ignored because it is estimated that this sector dailyremoves around 10%–15% of recyclable waste from municipal waste streams withoutputting a financial burden on ULBs. It is, therefore, necessary to look at integratingthe two private entities to ensure social sustainability of the waste management system.

Lack of learning from peer cities

P There is very little cross learning from success stories of other cities. There is noconcerted effort to learn from such successes (or failures) and to evolve a bestpractice, which can be adapted to a similarly placed municipal body. None of thesegets translated into a government-mandated practice.

P More often, the initiatives are personality based, with some officer taking theinitiative. It lasts as long as that functionary lasts in the post.

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Incorrect practices

P There is lack of clarity on what is to be done. Rules are not fully known and wellunderstood, especially to staff at operational level. In fact, MSW Rules are still notavailable in the local language.

P All types of waste are allowed to mix up, subsequently making it difficult to processthe same economically and scientifically.

P There is general reluctance in enforcing segregation of waste at source by generators.There is no legal framework through which segregation can be mandated andenforced.

P There is a lack of incentives for the agencies involved in collection, segregation,and transportation towards waste reduction. In fact, the present payment mechanismprovides incentive for more waste.

P There is lack of awareness about waste-processing technologies and developmentof scientific landfill sites and undue focus on centralized facilities for processing,many vendor-driven untested waste-processing technologies.

P There is an urgent need to revisit, develop, and implement appropriate strategy foreffectively handling of MSW.

As per the legal requirements (Municipal Solid Waste [Management & Handling]Rules, 2000) it is mandatory for all municipal bodies to prohibit dumping and litteringof solid waste anywhere in the city; to make it mandatory for the generators to segregateand store waste at source; for municipal bodies to collect such segregated waste directlyfrom the households and transport it to designated places; to recycle dry waste; toprocess biodegradable waste by composting or any other suitable methods; to sendwaste that cannot be processed and the residue after processing to the sanitary/scientificlandfill site. Similarly, municipal bodies have to ensure handling of biomedical wasteas per Bio-Medical Waste (Management & Handling) Rules, 1998.

Identifying the sustainability parameters

Review of various international and national documents and best practices relating tomunicipal solid waste management and exploration of the concept of sustainableprovision of this basic service by urban local bodies was carried out to set up a basicresearch framework for assessing sustainability in delivery of municipal solid wasteservice by urban local body.

As per the reviewed literature, sustainable solid waste management can be definedas a ‘process seeking appropriate levels of source segregation, recycling and resource recoverywith environmentally appropriate technologies and involving cost recovery mechanisms forlong-term financial sustainability leading to conservation of natural resources by minimizingthe health, environmental and aesthetic impacts of solid wastes.’

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One of the foremost outcomes of urban growth seems to be its linkage withgrowth of waste generation in the cities. There is, therefore, desired need todecouple growth and waste generation to be able to achieve sustainability in wastemanagement. Sustainable solid waste management delivery therefore addresses thefollowing issues.P Provision of service in an integrated manner with a minimal socio-economic impact

with a focus on waste reductionP Cost recovery of servicesP Satisfaction of users with the service provision

Apart from these issues, there are also regulatory provisions as stated under MSWRule, 2000, notified by the MoEF (Ministry of Environment and Forests), Governmentof India. The MSW Rules specify necessary conditions to be adopted by ULBs toenable them to perform solid waste management services in an environmentally andsocially desirable manner. These conditions include segregated doorstep collection ofwaste, proper processing and sanitary disposal as stated in detail in previous sections.

Drawing from the above, a research framework/agenda for assessing sustainabilityin delivery of municipal solid waste service by ULBs in the selected cities was created.This research framework translated the above definition of sustainability in servicedelivery and the key lessons learnt from the literature review into a set of ‘sustainabilityparameters’. These parameters were then tested in the selected cities by means ofdiscussions with different stakeholder groups involved in planning, provision and usersof waste management services. Questionnaires probing each of these parameters werethen prepared for stakeholders.

Based on the above, the sustainability parameters in delivery of municipal solidwaste service, which were explored in the selected cities were as follows.P Provision of services in an integrated manner by ULBsP Provision for cost recoveryP Citizens’ satisfaction with the SWM servicesP Adherence to the provisions of MSW Rules by ULBs

In order to test and evaluate the parameters listed above, the three cities selectedwere Surat (because of its impressive record of providing SWM services after the plaguein the city), Hyderabad (fast urbanizing city with industrial and IT hub), and Shillong(typical mountain city characteristics, with flat terrain not easily available forestablishing waste management facility).

Field-testing of sustainability parameters

Once the sustainability parameters with respect to management of solid waste in citieswere identified, field visits were undertaken to the selected cities (Surat, Hyderabad,

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and Shillong), and stakeholder consultations with organizations/individuals wereconducted to field test the suitability of these parameters in the Indian context. Theanalysis of the result of the field visits and stakeholder consultation are presented asfollows.

Compliance with issues related to overall operation of local bodies

Basic details of selected cities

The three cities selected for stakeholder consultation – Surat, Hyderabad, and Shillong– presented three different types of urban development setups. Surat is industrialized,with trade dominating its urban activities. It is considered the commercial capital ofGujarat. The city generates around 1000 TPD of MSW. It has one disposal siteconstructed as per sanitary landfill guidelines issued by the CPCB, which requires aliner system to be placed under the waste layer to minimize leaching. The site is locatedaround 10 km from the city. Despite the availability of this site, disposal is still carriedout in an open dump adjacent to it, as the city is yet to establish a waste-processingfacility as per the MSW Rules. This facility is supposed to be established soon, afterwhich the sanitary landfill will be commissioned.

The city of Hyderabad on the other hand is ranked as the sixth largest urbanagglomeration in the country and the HUA (Hyderabad Urban Agglomeration)comprises the MCH (Municipal Corporation of Hyderabad), 12 peripheralmunicipalities, Secundarabad Cantonment, Osmania University, and other areasadministered by the GHMC (Greater Hyderabad Municipal Corporation). The HUAgenerates around 3379 TPD of waste, out of which 2240 TPD is contributed by theMCH. At present, there are two active disposal sites in the city, while two others havebeen closed. None of these sites are sanitary landfills. No waste was being processedtill recently; however, one of the disposal sites has now been allotted to a privateoperator for biomining the content of the landfill and creating space at the site.

Shillong, the third city selected for the stakeholder consultation, is much smallercompared to the other two. The total MSW generated in the Shillong Planning Area– comprising areas administered by the SMB (Shillong Municipal Board) – and districtcouncils is estimated to be around 100 TPD. There is an old dumpsite located 10 kmfrom the city of Shillong – Guwahati Road, operational since 1932 – where all theMSW is presently disposed of. There is also a 100-TPD compost plant installed butit does not work properly.

Three issues were considered under this head for assessing the sustainability ofSWM in the cities as discussed above.1 Provision of services in an integrated manner by ULBs2 Provision for cost recovery3 Satisfaction of users with the SWM services

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Service provision in an integrated manner

Discussions with various stakeholders, including the SPCBs and ULBs, revealed thatvarious elements of integrated waste management system – house-to-house wastecollection in a segregated manner, waste recycling, processing of organic waste, andestablishment of sanitary landfilling facility are in different stages of implementationin the cities of Surat and Hyderbad. The waste management services are in veryprimitive stages in the city of Shillong.

Provision of cost recovery

None of the cities consulted have full cost recovery for the solid waste managementservices the ULBs provide in the city. Closest to achieving some cost recovery is Surat,which aims to recover around 55% of its annual O&M costs in the current financialyear. There is literally no cost recovery in both in Hyderabad and Shillong.

Users’ satisfaction with service provision

Among the three cities, the users in Surat seemed to be the most satisfied with SWMservices provided by the municipal corporation, though they said that littering of wasteand plastic bags was still a problem in the city. The users in Hyderabad and Shillongwere not satisfied with the services and desired improvement.

Compliance with issues related to provision of MSW Rules

The key stakeholders consulted to gauge compliance against the provisions listed inMSW Rules were ULBs offices SPCBs in the selected cities. The SPCBs were selected,as they need to receive annual compliance reports from the respective ULBs. The stateof compliance is presented Table 2.

Conclusions

Overall, it was found from the city visits that the parameters selected for this studyare yet to be properly addressed in each city. Some efforts have been made by thesecities to address some of the issues within the chosen parameters, but to be ableto address the various issues related to water and waste-water management, anintegrated and multidimensional approach is crucial.

Two cities – Surat and Hyderabad – have made substantial progress inimproving their SWM infrastructure by using funds available under theJNNURM (Jawaharlal Nehru National Urban Renewal Mission). But Shillonghas not been able to have access to JNNURM funds as of now. Cost recoveryof services for effective provision of services and covering annual O&M chargesappear to be biggest impediments in the effective provision of SWM services.

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Recommendations for operationalization of sustainability parameters

This section of the report deals with operationlization of selected parameters forsustainable SWM services in the cities. It is intended to be achieved by carrying outthe following measures.P Selecting suitable indicators for each of the parametersP Defining the selected indicatorsP Defining at what levels and frequency the indicators should be monitored for the

solid waste management in the city

The MoUD (Ministry of Urban Development) in its Handbook on StandardisedService Level Benchmarks has identified a set of performance indicators for ULBs. It isexpected that once local bodies start monitoring their performance and report as pergiven indicators, achieving the benchmarks listed, there will be considerableimprovement in their performance. With respect to MSW, the service areas coveredare given in Table 3.

The above-mentioned performance indicators are a must for any city to assessthe efficiency in the provision of service delivery. However, benchmarks suggested(100%) in five cases are tough to be achieved by the ULBs, given their indifferentperformance regarding the compliance with MSW Rules. This report has suggested

Table 2 State of compliance in the cities of Surat, Hyderabad, and Shillong

Issues Status of compliance

Surat Hyderabad Shillong

Prohibit littering, establish two-bin system for

organic and recyclable fraction √√√ √√ √

Doorstep collection in segregated manner Limited collection Very little No doorstep

employing ragpickers collection

Street sweeping on all days √√√ √√ √

Abolition of open waste storage depots √√√ √√ √

Transportation of waste in covered vehicles √√√ √√√ √√

Treatment of biodegradable waste by suitable option √ √√ √√

Minimize waste going to landfill, disposal of only √√ √ √rejects and inert material

Note: vvv: very good; vv: moderate; v: bad

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the performance indicators largely targeting the attainment of integrated wastemanagement systems, public acceptance, and cost recovery. The report has alsosuggested progressively improving the benchmarks wherever it was felt that 100%compliance in one would not be possible by the ULBs.

Indicators for operationalization

As discussed earlier, parameters selected for SWM can be summarized as follows.

Parameters related to MSW Rules

P No littering, and provision of two-bin system for waste segregationP Doorstep collection in segregated mannerP Street sweeping on all daysP Abolition of open waste storageP Transportation of waste in covered vehiclesP Treatment of biodegradable wasteP Minimization of waste disposal in landfill; no disposal of organic waste

Overall parameters

P Cost recoveryP Satisfaction

As these parameters are essential components of an integrated solid wastemanagement system, the successful implementation of all the above-mentionedparameters would lead to waste management in an efficient manner. The parametersrelated to MSW Rules are described first, followed by the parameters related to overallSWM issues.

Table 3 Service areas covered with respect to MSW

Indicator Suggested benchmark

Household coverage of SWM service 100%

Efficiency of collection of MSW 100%

Extent of segregation of MSW 100%

Extent of MSW recovered Not provided as waste varies from city to city

Extent of scientific disposal of MSW 100%

Extent of cost recovery of solid waste management service 100%

MSW – municipal solid waste; SWM – solid waste management

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Parameters related to MSW Rules

Parameter 1: no littering and provision of two-coloured litterbins

The coloured litter bins (blue for recyclable and green for organic waste) are proposedin the MSW rules to be put up at suitable locations in cities to reduce instances ofwaste littering. The indicators suggested to gauge the efficacy of the provision of litterbins would include the following.P Indicator for ward-level coverage with litter bins: suggested coverage would be

initially 90%–100% for larger cities and 60%–75% for smaller cities, reaching upto 100% coverage gradually.

P Other indicator suggested would be citizen satisfaction with the cleanliness at theward level. A satisfaction level of 75%–90% would be desirable for cities to belabelled as clean.

P The indicators would be measured biannually at ward level by a sanitary inspectorof the area and reported annually at the city level in the annual report.

Environmental sustainability demands the maximum extent of waste to be collectedin a segregated manner without any littering on roads or parks. Segregation enablesrecycling, reuse, treatment, and scientific disposal of the different components of wastein the most economical manner. The waste collected in a segregated manner shouldalso be transported in a segregated manner up to the point of treatment and/or disposal.

Implementation plan

The first step would be to monitor the area to establish locations for the placementof bins. High-waste-generating zones should be handled carefully with optimumnumber of bins with suitable capacity.P Zero-littering policy for urban areas should be adopted at the national and state

levels.P Separate covered bins should be there for biodegradable and recyclable waste; they

should be easily distinguishable by blue and green colours as suggested in theMSW Rules.

Box 1

The MCD (Municipal Corporation of Delhi) has privatized the collection of MSW in six zones through three private operators,

in order to save costs and improve efficiency in service delivery. These operators have to put sets of two bins (blue and

green) for collection of non-biodegradable/recyclable and biodegradable waste respectively. These bins are emptied into

separate vehicles with similar coloured, larger bins daily. The operators are also expected to segregate the biodegradable

and non-biodegradable solid waste before the waste is collected into separate vehicles.

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P It is also recommended that the collection of waste from bins should be done ina segregated manner. Wet waste needs to be collected on a daily basis, whereasdry waste can be stored in partitioned areas with roofing for a week, in whichrecyclable materials can be stored in separate cells for plastic, glass, metal,aluminium, and paper for further processing.

P People’s participation is very important to achieve zero littering in cities.Campaigns, rallies, and streetplays can help in raising awareness about the needthe keep the landscape clean nuisance due to littering.

P A team of sanitary inspectors should be constituted at the zonal level to monitorlittering in the cities. Heavy spot fines, as imposed in Singapore, can be a strongdeterrent; the fines should also cover the administrative charges for constitutedmonitoring team.

P Some additional cost would be incurred on staff and hardware like vehiclesrequired for patrolling purposes.

P Citizens’ satisfaction surveys are suggested to be carried out by a third party, atleast annually to maintain the transparency and authenticity of the results of survey.

Parameter 2: doorstep waste collection in segregated manner

The MSW Rules suggest doorstep collection of waste in a segregated manner fromthe households and establishments by ULBs. The indicators suggested to monitorthe efficacy of doorstep collection of waste in cities would include the following.P Indicator for percentage of households and establishments covered by daily doorstep waste

collection system: Doorstep collection of waste is an essential initial step to ensureproper segregation and proper processing of waste. It is a critical starting point inthe entire chain of scientific SWM services. The benchmark for this indicator issuggested to be 90%–100% for larger cities and 50%–70% initially for smaller citieswith gradual improvement in targets.

P Indicator for percentage collection efficiency: Collection efficiency should measure thewaste collected effectively by the SWM systems. Uncollected waste is strewn alongroads, clogs the drains, and in case of biodegradable waste, it putrefies and attractsdisease vectors. Therefore, collection efficiency is a key performance indicator. Thebenchmark for this indicator is suggested to be 90%–100% for larger cities and50%–70% initially for smaller cities with gradual improvement targets.

Note: It would be possible for ULBs to cover the slum settlements and multistoreyedhousings by doorstep collection system. It is recommended that in such cases,community bins of suitable size are provided for the residents to deposit their wastein these bins.

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Implementation plan

P Provision of trained waste collectors with proper protecting devices should reachevery household at a particular point of time in the morning to collect the waste indifferent collection systems for biodegradable and non-biodegradable wastes.

P Ragpickers plays an important role in segregating the waste; they should be involvedin a formal manner in the waste collection and segregation chain.

P The percentage collection efficiency needs to be measured at zonal and city leveland frequency of measurement should be quarterly.

P The process of doorstep collection of waste can be contracted out, as is happeningin many larger cities to improve efficiency and save costs. For instance, partnershipfor 100% doorstep collection in Nagpur has resulted in not only efficiencyimprovement but also substantial saving for the Nagpur Municipal Corporation.Multiple contracting is recommended for bigger cities in a zone-wise manner toprevent monopoly by the selected contractor.

P The effectiveness of waste collection from doorsteps can be enhanced by involvingthe local community or community-based organizations. They can mobilize/motivateresidents to segregate the waste at source.

P User fee should be levied on waste generators to fund the introduction of privateoperators. Our estimates for a city with 1 million population and 0.1 million floatingpopulation suggests that a user charge of Rs 115–120 per month would adequateto ensure doorstep collection of waste, its processing and disposal of inerts insanitary landfills. In this case, no contribution from the ULB is assumed. In casethe ULB also contributes, the user charges would be proportionately lower. Thecollection of user charges can be linked to electricity bills as the experience in variouscities has shown higher compliance level in such cases.

P Households should be provided with two bins/bags of around 15-litre capacity (fora house with five members) for segregated storage of waste.

P Doorstep collection of waste by sweepers is recommended by the use ofcontainerized hand carts/tricycles or small autorickshaws, depending on the numberof houses to be covered.

P The tricycle should have 4–6 detachable containers, with capacity of 30–40 litres,made of light, sturdy material with easy pick-up handle. The handcarts should havethree wheels and sealed ball bearing. The community bin carrier (truck of suitablesize) should have the provision for containers to be transported to transfer stations.

Parameter 3: road/street sweeping on all days

The road and street sweeping on all days in any city, preferably using mechanizedimplements in larger cities, is necessary to remove the sand, dust, silt, and otheraccumulated inert material during the day. It is also suggested that this material iscollected, transported, and disposed of separately and not allowed to mix, especially

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with biodegradable or food waste. Once the organic waste gets mixed with sand andsilt, it is almost impossible and too costly to attempt segregation of waste for effectiveprocessing.

Suggested indicators to ensure the cleanliness of streets and roads would includethe following.P Indicator on beats cleaned on daily basis: This indicator would be measured by

estimating the percentage of beats cleaned daily over the total number of beats inany ward. The indicator would be measured on a daily basis by the assistant sanitaryinspector, reporting to the sanitary inspector. The sanitary inspector would compiledata on a weekly basis and report at city level. The benchmark for this indicator issuggested to be 90%–100% for larger cities and 50%–70% initially for smaller citieswith gradual improvement targets.

P Cleaning staff deployed per lakh population – number of sweepers and supervisors: Thebenchmark for this indicator could be the numbers suggested for different-sizedcities by the CPHEEO (Central Public Health and Environmental EngineeringOrganization) manual on solid waste. The indicator needs to be monitored at theward level and reported annually.

Implementation plan

1 This activity should be partly contracted out to bring in competition in day-to-day sweeping activities; use of mechanized sweeper is recommended for largerroads. Sweeping should be preferably carried out during night hours to ensureminimal traffic disruption and safety of workers.

2 It is suggested that sweepers in the congested areas should cover 250 to 350 RMT(running meters) of road length for collection of waste from households andsweeping and in less congested area should cover 400–600 RMT. Normalsuggested yardstick would be 150–250 households.

3 Long-handled brooms are recommended for manual street sweeping to preventfatigue and back pain in sweepers.

4 Frequent visits by sanitary inspectors are needed to ensure proper cleaning of theroads and streets. Senior citizens in respective areas can also be assigned to keepvigil on street sweeping as done in the Philippines.

5 A weekly review and reporting system is recommended for the urban local bodiesat the city level.

Parameter 4: abolition of open waste storage

Open waste storage areas need to be abolished, as they attract stray animals, rodentsand birds, which feed on the waste and in the process, spill the waste all around. Thisalso attracts disease vectors to the site and leads to a potential health hazard.

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The indicator suggested to measure the efficacy of this parameter includes thefollowing.P Indicator for the percentage of waste stored in open spaces over the total storage space

available at the ward and city level: The benchmark for this indicator would be zeroopen-waste storage for larger cities; 25%–30% open waste storage spaces for smallercities, reaching gradually to zero. The indicator should be measured at quarterlybasis and reported annually.

Implementation plan

P A detailed study should be carried out to locate the number of open dumping siteand trace out the reason for their existence (public or management).

P Close all old open waste storage areas in a phased manner; as an alternative bin-free collection can be attempted, as tried in Goa and partly in Surat.

P Development of parks and greenery on empty spaces can prevent further opendumping of waste in the areas reclaimed.

Parameter 5: transportation of waste in covered vehicles

Transportation of MSW in closed waste transportation vehicles is necessary to preventlittering of the waste while transporting it. The indicator suggested to measure theefficacy of this parameter include the following.P Indicator on number of covered vehicles over total vehicles available in working condition

with the local body: The suggested target should be 100% for larger cities and 60%–75% for smaller cities reaching up to 100% in a phased manner. The indicator needsto be measured and reported on an annual basis at the city level.

Implementation plan

P Conversion/replacement of open vehicles to covered vehiclesP Privatization of transportation services and coupling it with doorstep collection of

waste and waste processing to improve collection efficiency in segregated manner

Parameter 6: treatment of biodegradable waste

Proper segregation and treatment of organic waste is suggested in MSW Rules notonly to recover value from waste but also to avoid organic waste going to the landfills,as the larger cities are facing problems of fast filling landfills and locating new landfillareas. The following indicators are suggested to measure the efficacy of this parameter.P Indicator on quantity of biodegradable waste collected daily over the quantity of

biodegradable waste generated daily: This indicator should be measured daily at theward level and reported monthly on ward level. The target suggested for thisindicator is 80% for larger cities; 50%–60% for smaller cities reaching 100% in aphased manner.

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P Percentage of biodegradable waste treated daily over the quantity of biodegradablewaste, reaching the processing site. This indicator needs to be measured daily onthe city level and reported monthly. The suggested target is 100% for larger citiesand 60%–80% for smaller cities initially, reaching up to 100% in a phased manner.

Implementation plan

P Doorstep collection of biodegradable waste in segregated mannerP Privatization of doorstep collection, coupled with operation of waste processingP Collection of user charges for waste collection, including operators in peripheral

areas (the indicative user charges have been mentioned above)P Decentralized processing/treatment of organic waste in peripheral areasP Payment of tipping fee by ULB to the waste processorP Mandatory utilization of compost by government officesP Government to own land and assets for waste processing and outsource the

operation of processing plant

Parameter 7: minimize waste disposal in landfill; no disposal of organic waste

To maximize resource recovery and extend the life of disposal sites, the MSW Rulessuggest that the recyclables and organic waste should not be disposed of at thelandfills. Also, other requirement as per the Rules would be setting up of scientificsanitary landfilling systems in the cities with a provision of bottom liner system tominimize contamination of the soil and groundwater below. The following indicatoris suggested to measure efficacy of this parameter.P Quantity of waste disposed as against total waste generated in the city: The indicator

is suggested to be measured at the city level and report on monthly basis. Thesuggested target for the indicator would be 50% for larger cities and initially70% for smaller cities, both reaching up to 40% in a phased manner.

Implementation plan

P Recycling and processing need to be maximized to reduce pressure on landfills.P Tipping fee needs to be paid for the disposal of waste.P Government can own land and assets for waste processing and can outsource

the operation of disposal site.P Smaller cities can share the cost of development of processing plants and

landfills by developing them on regional basis.P The cities will also have to ensure setting up of scientific landfilling facilities

to minimize impacts of health and environment; regional landfills can bedeveloped for small and medium town, thus sharing the establishment andO&M costs.

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P However, as organic waste will not go to the landfill, landfill will not requireelaborate gas collection system; also, landfill liner requirement can be reducedif toxic wastes are not reaching, thus reducing the cost; such design detailsneed to be evolved.

Note: As establishing the waste-processing infrastructure and sanitary landfills is a cost-intensive exercise for ULBs, to optimize the infrastructure development, smaller townsand cities can join hands together to develop these on common, regional basis andshare them for waste management. It would also be important for such cities and townsto invest in maximizing waste recovery and recycling and divert maximum possiblewaste being disposed of in the landfills. For instance, municipal authorities in Suryapet,Andhra Pradesh, have succeeded in achieving zero-waste disposal and are complyingwith the provisions of MSW Rules of 2000.

Overall parameters

Parameter 8: cost recovery of services

Full or partial cost recovery for any basic service would be the key to ensure itssustainability in the long run. The solid waste management service, however, has nodirect revenue stream to make it financially viable on its own. Tools such as recoveryof partial or full user charges, sale of by product (recyclables, compost or energy) canpartially or fully offset the expenditure on solid waste management in the citiesdepending on the willingness of the users to pay. The experience of cities (such asSurat), where partial cost recovery is carried out suggests that people are willing topay provided that they are satisfied with the level of services provided. The indicatorsuggested to measure the efficacy of this parameter would be the following.P Indicator on percentage of cost recovery for the ULB in SWM services with respect to

monthly expenditure: This indicator needs to be measured on a monthly basis andreported on an annual basis. The target suggested for this indicator would be 60%–75% for larger cities and 50% for smaller cities, reaching 90% in a phased manner.

Implementation plan

P City administration should be authorized to recover cost of services under the‘polluter pays’ principle.

P There should be phased targets for cost recovery, including in smaller cities.P Accounting system for expenditure and revenues needs to be improved for smaller

cities.

Note: It is recommended that no user fee be levied on the residents of slum areas.The expenses incurred can be levied on bulk generators of waste in the cities as theircontribution in beatifying the city landscape.

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Parameter 9: citizen’s satisfaction

Citizen or user satisfaction with the SWM service or with any other basic service wouldbe the ultimate test of efficiency with which the local body claims to be providing thepublic services. The following indicators would be suggested for this parameter.P Indicator for citizen satisfaction on various aspects of the SWM system in the public domain

(street cleaning, bins, cleanliness of neighbourhood, and so on): This can be gauged byconducting satisfaction surveys on annual basis. The suggested targets would be• >90% satisfied with the services for larger cities• 60%–80% satisfied in smaller cities

Implementation plan

P Operationalization can be done through citizen’s survey or rating by trainedobservers.

P Agency can also appoint inspection committee to inspect the cleanliness (third partypreferred).

P It should be mandatory for all ULBs to go for annual survey and present the resultsin annual report.

Institutional and aspects influencing sustainability

The subject of SWM has remained neglected for the past several decades in thecountry. As a result, the level of services is highly inadequate and inefficient as alsodiscussed in the previous section. However, with the advent of the JNNURM process,the delivery of basic services is expected to improve in the cities, as the process providesfunding necessary to upgrade the services. The funding, however, requires cities toadopt the reforms regarding municipal administration in the cities. The reforms at theinstitutional level are an ongoing process for larger JNNURM cities, which are in theprocess of accessing funds under the scheme.

There are, however, additional measures that would be required to improve thefunctioning of local bodies in terms of improving SWM services. These measures canbe summarized as follows.1 Establishment of separate cell for SWM with the municipal body—the cell should

be headed by the environmental engineer or civil engineer, as against the publichealth officer as is still the case in smaller cities. The cell should be guided by asteering committee of eminent technocrats and senior citizens of the city.

2 Decentralization of municipal functioning at the zonal level and ward level needsto be done to bring about accountability and efficiency improvement as is donein Surat.

3 Ward committees need to be formed as envisaged under the 74th ConstitutionalAmendment for creating public awareness.

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4 Inviting the private sector for service improvement and better cost recovery wouldrequire local bodies to have expertise in preparation of contracts and tounderstand technical and legal issues relating to requirements of processingfacilities and landfill sites. The technical capacity of ULBs needs to be enhancedto cover these aspects as well.

ReferencesAnschütz J, Rudin V, and Scheinberg A. 2004Integrated sustainable waste management in La CeibaDetails available at <http://www.waste.nl/page/818> last accessed on 5 July2008

Asnani P U. 2005Status of MSW rules implementation in IndiaPresentation at the National Workshop on Municipal Solid Waste Management: sharing of experiencesand lessons learnt, 13-14 July 2005, New Delhi, co-sponsored by the Housing and Urban DevelopmentCorporation Ltd, United States–Asia Environmental Partnership, and Water and Sanitation Programme(World Bank)

CPCB (Cenral Pollution Control Board). 2000Status of Municipal Solid Waste Generation, Collection, Treatment, and Disposal in Class 1CitiesNew Delhi: MoEF (Ministry of Environment and Forests), Government of India

IIR (India Infrastructure Report). 2006Solid Waste ManagementNew Delhi: Oxford University Press, 160 pp.

TERI (The Energy and Resources Institute). 1998Looking Back to Think Ahead: GREEN India 2047Delhi: TERI, 245 pp.

TERI (The Energy and Resources Institute). 2001DISHA (Directions, Innovations, and Strategies for Harnessing Action)Delhi: TERI, 368 pp.

UTFP (Unità tecnica Finanza Progetto). 2001Italian PPP at a glanceDetails available at <www.utfp.it/docs/articoli/Italyfeature.pdf>, last accessed on 5 July 2008

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As per the Brundtland Commission, the word ‘sustainable’ implies that the presentneeds are met without compromising the ability of future generations to meet theirneeds. When applied to transportation, this term qualifies the urban transport systemas a system that meets the present demands of transport by ensuring thatenvironmental, equity, energy security, and economic considerations are factored intotransportation planning and investment decisions.

A sustainable transport may be defined as an activity promoting equity; fosteringa clean and healthy environment; and promoting economic growth and a balancedsystem in which the personal vehicle, public transportation, bicycling, walking, andsubstituting travel with the help of information and communication technologies, areall possible choices.

Defining sustainable transport

A reasonable start to identifying parameters to assess sustainability of transport servicesis to define the term ‘sustainable transport’ at the very outset. Many organizationsand researchers have tried to define ‘sustainable transport’ as per their requirements(Box 1).The ECMT (European Council of Ministers of Transport) selected a comprehensivedefinition of sustainable transport in the year 2004, which has also been endorsed bythe TRB (Transportation Research Board). The definition has a broad scope andrecognizes specific transportation issues. According to this definition, a sustainabletransport systemP allows the basic access and development needs of individuals, companies and society

to be met safely and in a manner consistent with human and ecosystem health,and promotes equity within and between successive generations;

P is affordable, operates fairly and efficiently, offers a choice of transport mode andsupports a competitive economy, as well as balanced regional development;

TransportCHAPTER

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P limits emissions and waste within the planet’s ability to absorb them, uses renewableresources at or below their rates of generation, and uses non-renewable resourcesat or below the rates of development of renewable substitutes, while minimizingthe impact on the use of land and the generation of noise (ECMT 2004).

Litman and Burwell (2004) attempt to classify the elements of a sustainable transportsystem into the following matrix (Table 1).

Box 1 Definitions of 'sustainable transport' adopted by various institutions around the globe

P The WBCSD (World Business Council for Sustainable Development) defines sustainable mobility as 'the ability to

meet the needs of society to move freely, gain access, communicate, trade, and establish relationships without

sacrificing other essential human or ecological values today or in the future.' (WBCSD 2001)

P According to MOST (Media Oriented Systems Transport), 'The goal of sustainable transportation is to ensure that

environment; social and economic considerations are factored into decisions affecting transportation activity.'

(MOST 1999)

P EST (environmentally sustainable transportation) is 'transportation that does not endanger public health or

ecosystems and meets needs for access consistent with (a) use of renewable resources at below their rates of

regeneration, and (b) use of non-renewable resources at below the rates of development of renewable substitutes.'

(OECD and BLFUW 1998)

P 'An environmentally sustainable transport system:

• allows generally accepted objectives for health and environmental quality to be met, for example, those

concerning air pollutants and noise proposed by the WHO (World Health Organization);

• is consistent with ecosystem integrity, for example, it does not contribute to exceeding of critical loads and levels

as defined by the WHO for acidification, eutrophication, and ground-level ozone; and

• does not result in worsening of adverse global phenomena such as climate change and stratospheric ozone

depletion.' (OECD and BLFUW 1998)

Table 1 Elements of a sustainable transport system

Economics Social Environmental

Traffic congestion Mobility for vulnerable groups Air pollution

Infrastructure costs Human health impacts Habitat loss

Consumer costs (fares, automobiles, and so on) Community cohesion Hydrologic impacts

Mobility barriers Community livability Depletion of non-renewable

resources

Accident damages Aesthetics Noise

Source Litman and Burwell (2006)

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Some of the elements in the matrix may assume greater importance than the othersbased on a regional context. However, what is important to keep in mind is that therecannot be a single or across-the-board widely accepted definition for sustainabletransport. It should, therefore, be defined locally as per the local conditions,requirements, and challenges in a particular region/country.

A review of case studies demonstrating sustainable transport planning andmanagement practices at various locations in the world, including India, was carriedout. Interventions, including policies for sustainable transport, planning, institutionalreforms and performance monitoring, were examined. These case studies have beendiscussed below.

Singapore’s land transport policy

The government of Singapore, a small island nation of approximately 4.5 people, hadvery early on pre-empted the damage and threat to the quality of life that would ensueif the country adopted a high motorization route. Improving public transport resultingin its wide usage has, therefore, been the cornerstone of Singapore’s land transportpolicy. Singapore has, thus, become famous for its world class transportation system.

The Land Transport Policy of the Ministry of Transport aimed to develop a qualityland transport system—one that would be integrated, efficient, affordable, with smooth-flowing traffic, and which will meet people’s needs and support economic andenvironmental goals.1 To meet this goal, the ministry identified a four-prongedapproach that included the following.1 Integrated land use planning2 Increasing public transport penetration3 Managing the demand and use of private vehicles4 Expanding the road network and optimizing road capacity

Improvements for bus transport

A white paper prepared by the LTA (Land Transport Authority)2 in 1996, chartedout the measures Singapore needed to take in order to have a world class transportsystem. Buses were identified as the major public transport in Singapore3 andrecognizing this, the LTA, together with the bus operators, made a number of busimprovements4 , which included giving priority to buses, offering differentiated services,providing services for new towns and settlements to the city centre and other longer

1 http://www.mot.gov.sg/landtransport/policy.htm2 LTA is a statutory board under the Ministry of Transport, which is responsible for planning, managing and

regulating transport infrastructure, the rail systems, and traffic in Singapore.3 The PTC (Public Transport Council) regulates bus services in Singapore and is an independent regulator.4 White Paper on a World Class Transportation System, available on http://www.lta.gov.sg/corp_info/doc/

white%20paper.pdf; last accessed on 27 October 2008

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journeys, better information systems, better pedestrian access facilities, refurbishingbus stops with amenities like drinking water, telephones, proper lighting, and so on.

In Singapore, the PTC (Public Transport Council)5 regulates bus service standards,routes, and fares while balancing the commuters’ interests with the need to remainfinancially viable. The PTC lays down ‘bus service standards’, which include qualityof service standards. The quality standards include criteria like availability, reliability,loading, integration, safety and information.6 These are monitored by regularcompliance audits and spot checks. The PTC also intervenes when service lapses aredetected and directs the operators to take remedial actions.

In addition, the LTA conducts annual public transport customer satisfactionsurveys to better understand the quality and expectation of bus services fromcommuters’ point of view and to facilitate setting up of new quality of bus servicestandards. Information is collected on the following attributes.P General level of serviceP Waiting timeP ReliabilityP Service informationP MRT (mass rapid transport) station/bus interchange, bus stop accessibility/locationP ComfortP Travel timeP Staff customer serviceP Fare and level of serviceP Safety and security

Private vehicle restraint measures

As mentioned earlier, Singapore has been able to demonstrate a successful publictransport system by simultaneously restraining the ownership and utilization of privatevehicles by introducing the vehicle quota system and electronic road pricing,respectively.

Improving the performance of taxis

Finally, the white paper also recognizes taxis as a high-end form of public transport.The paper suggests the following measures to improve the taxi services in Singapore.P A performance evaluation scheme to monitor performances and services rendered

by fleet operatorsP Publication of performance indicators, together with incentives for best performing

operator

5 The PTC (Public Transport Council) was established in 1987 as an independent body to approve and regulatebus services, public transport fares and ticket payment services in Singapore.

6 www.ptc.gov.sg

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P Introduction of differential pricing and differentiated services to meet the travelneeds of all kinds of travellers

P Gradually bridging the existing gap in cost per km between the private car and taxiby charging the latter with road usage tax

P Reducing idle cruising on roads (which adds to congestion and pollution) by usingradio-phone dispatch systems, dial-a–cab services, satellite navigation, and automaticvehicle location techniques

By giving equal attention to both modalities, public and private transport, with theaim of reducing private vehicle usage, coupled with an excellent public transportsystem, Singapore today has set a successful example for sustainable transport planningand management for the entire world. It has been able to demonstrate this successwith the help of stringent laws and regulations, strong political will, and a policy thatclearly spells out clear actions and responsibilities for each player.

Sustainable Transport Plan of Auckland

Auckland is New Zealand’s largest and most populous city, having a population ofapproximately 1.4 million. Till the mid 1990s, the focus was on building more roads.However, this led to even more congestion. Following this, there was a paradigm shiftand the focus of planning was on increasing the use of public transport, particularlyin the peak periods.

The Sustainable Transport Plan for Auckland, prepared by the Auckland RegionalTransport Authority, is a ten-year programme of scoped and costed projects andpractical actions, to help city residents make safer and more sustainable transportchoices. As against the traditional transport planning approaches, this plan gives specialfocus to the ‘people of Auckland’ rather than transport infrastructure and services.The plan defines sustainable transport for Auckland as ‘Working with people and theircommunities to improve travel opportunities and to encourage people to make fewercar journeys’ (ARTA 2007). The plan attempts to integrate sustainable transportactivities with each other and with planned improvement in infrastructure and services.It recognizes the importance of working with multiple agencies and developing newways of sharing costs, managing risks, and evaluating success.

The plan is a step towards a regional transport strategy, which outlines the futureof the region’s transport system and provides a framework for transport planning inthe Auckland region. The Sustainable Transport Plan for Auckland outlines theactivities that will help achieve the regional strategy’s objectives/ targets. The proposedsustainable transport activities have been drawn after substantial amount ofconsultations with the people.

A few examples of evolution of sustainable transport activities from the regionalobjectives are given below.

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Improved walking and cycling networks in the Auckland region

The proposed actions in the Sustainable Transport Plan include the following.P Walking and cycling improvements in the CBD (Central Business District) and town

centresP Engineering improvements in roads, for example, in traffic islands, crossings, speed

humps, and bus bays.P Constructing 50% of the proposed cycle networkTarget: 15.5% of total trips by walking or cycling by 2016.

Reduction in the number of car trips

The proposed actions in the Sustainable Transport Plan include the following.P Priority to HOVs (high-occupancy vehicles) through dedicated bus/ HOV lanesP Offering a database service and/or providing pick-up points for encouraging

ridesharingP Providing incentives at the destination, such as a guaranteed ride home in an

emergency, and/or staff rewards for car poolersTarget: 20 000 fewer morning peak car journeys than in 2006 by 2016

The plan demonstrates a sustainable transport approach that is drawn from theregional-level strategies to local area level plans. The actions identified in the plan areimplemented and monitored periodically so as to assess the success of the plan. Settingtargets for the identified actions helps assess the achievements of the plan and setscourse for future actions and a consultative process ensures a more sustainable system.

Integrated land use and transport planning in Curitiba

The transportation system in the Brazilian city of Curitiba, as it exists now, began toevolve in the late 1960s, when the master plan for the city was formulated. The masterplan proposed a change in the urban form of Curitiba from radial to linear. The planutilized integrated land use, and road and public transport systems as tools toimplement this principle. The city planners, unlike in many other Latin American citiesat the time, did not embark on brutal reconstructions of the city’s downtown area orlarge-scale highway constructions, rather they used integrated land-use and transportplanning as a tool to meet the challenge of growing urban limits and the resultanttransportation demand (Friberg 2000). The Mayor of Curitiba assumed a leadershiprole in the planning of Curitiba’s Integrated Transport Network. It is managed byURBS (Urbanizao de Curitiba) a state-owned company created in 1963.

URBS monitors and coordinates the system, operates the bus lines, andmaintains the infrastructure of the system. The buses are owned and run by 16private companies that receive licences for specific lines and who are paid not perpassenger but on a per kilometre basis.

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Buses are designed with three doors – two doors for exiting and a front doorfor boarding – turbo engines, lower floor levels, wider doors, and a convenientdesign for mass transit. Curitiba also developed boarding tube stations to increaseconvenience and boarding efficiency. Provisions have been made for theconvenience of disabled and elderly passengers. Regular maintenance and renewalof fleet after every ten years ensures good condition of buses and helps keep theair pollution levels low.

A road hierarchy and land control system, assigning priorities to buses, andproper zooming laws were put into effect. Integrated systems with trunk and feederroutes and express lines and inter-district routes were introduced. Night routesand special education routes were also introduced. The city also introducedautomatic combined ticketing. Station and route maps have been provided at eachtube station. Revenue sharing between bus companies is based on the number ofkilometres travelled by vehicle type for any given company. The system is financedby the bus fares without any public subsidies.

Curitiba ranks first in the use of the public transport system among all Brazilianstate capitals, with 75% of commuters using the system on weekdays. The city’sfuel consumption is 30% lower than in eight comparable Brazilian cities. It hasalso been shown by various studies that 28% of the car-owning population inCuritiba regularly uses the system. Curitiba has focused on means to improve boththe availability and accessibility of buses in the city and has proved to be asuccessful example of a sustainable transport practice.

Dedicated public transport system in Bogota

In the 1990s, the urban transport situation in Bogota, Columbia, was characterizedby severe congestion, poor road network condition, long travel times, highoccurrence of accidents, and high levels of pollution. Though Colombia’s nationalgovernment is responsible for setting broad policies in the urban transport sector,municipal governments are responsible for planning and regulating urban transport,including setting bus routes and fares, and for funding the construction, andmaintenance of infrastructure in partnership with the private sector.7 Recognizingthe degrading transport situation in the city, the Mayor of Bogota in 1998 decidedto focus on reconstruction and maintenance of sidewalks, construction of cyclepaths, campaigning against the use of private cars, and development of a formalizedpublic transport system. As a result, Transmilenio was created to effect majorchange on the public transport front. The planning for the integrated transportsystem focused on the following.P Improvement in road safety

7 http://www.ppiaf.org/documents/toolkits/UrbanBusToolkit/assets/CaseStudies/summy/sum_bogota.html

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P Reducing travel timeP Catering to all income groups, the disabled, and so onP Improving quality of vehicles, stationsP Improving access to stationsP Ensuring regular and punctual servicesP Addressing the affordability concerns of passengers

The main features of the system include dedicated bus lanes, level loading andoffloading of passengers, pre-selling of tickets and improvements of technologies. Thebuses have a capacity 160 passengers (48 seating), are fully accessible to disabledpassengers, and meet EURO III emission standards. Inspired by the articulated bussystem of Curitiba, Brazil, Transmilenio is made financially sustainable through aninnovative public–private partnership. The system uses 165 articulated passenger buseswith clean diesel engines that comply with Euro III environmental standards. Mostbuses run in dedicated corridors; and feeder buses not on exclusive lanes, but sharingstreets with the rest of traffic, give people in marginal neighbourhoods, access to thesystem. Access to dedicated bus stations is through pedestrian bridges. A key advantageof Transmilenio is its low cost. Operating costs are also low. Through the innovativeTransmilenio partnership, private operators not only cover costs but also make a profit(Hidalgo 2005, Runyan 2003).

Currently, the system accounts for almost 1.3 million trips daily and the main lineis carrying more than 40 000 passengers per hour, more than many rail systems.Transmilenio users are saving on average 223 hours of travel annually. Nine per centof Transmilenio users have been diverted from commuting by private automobile.Transmilenio is projected to continue to grow, with the resources in place to movemore than 80% of the city’s population by 2015 (Hidalgo 2005).

Catering to all income groups and matching service levels with the private vehiclereinforced Bogota’s approach to improve both public transport availability andaccessibility to all travellers in the city.

Today, both Bogota and Curitiba are examples of successful public transportsystems, a result of the strong political will and leadership demonstrated by the cityauthorities.

Public transport performance monitoring in Victoria

Victoria is Australia’s most densely populated and urbanized state, with a populationof approximately 5.2 million. The state has historically exhibited strategic transportplanning. Melbourne in Victoria has the world’s largest tram network and Australia’ssecond largest suburban rail network. The city’s extensive public transport network –comprising trains, trams and, buses – uses an integrated ticketing system, where youcan buy one ticket and use it on all the three modes for a specified time period.

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The state also has an extensive system of performance measurement of public transportservices, which has been discussed below.

Victoria’s Public Transport Division

The Public Transport Division of the Department of Transport is responsible forcoordinating and monitoring public transport services in the state of Victoria. The PublicTransport Division also has a leadership role in developing and improving all parts ofthe state’s bus, train, tram, and taxi networks.8 It carries out the following functions.P Ensuring accessibility for the communityP Contract management for bus, train, tram and ferry services in VictoriaP Performance monitoring of operatorsP Planning for future transport needsP Ensuring safety in public transportP Working with operators to ensure that public transport services are available and

coordinated during major events in the cityP Regulating taxi and hire car services throughout VictoriaP Coordinating ticketing and fare structures

Performance monitoring

The Public Transport Division monitors the performance of all public transportoperators who are contracted by the government to provide regular services to thecommunity. These include train, tram, and bus operators. The services are monitoredagainst targets for performance delivery, particularly in relation to the punctuality andreliability of the services, and customer satisfaction surveys are also conducted. In orderto assess the performance of public transport operators, the government’s transportcontracts include targets for performance delivery and standards for customer service.The targets generally relate to the following.P Punctuality, measured as a percentage of the services arriving on time at specified

monitoring points.P Reliability, measured as a proportion of the scheduled train or tram services that

have run.

Train and tram franchise contracts also contain performance requirements forminimizing graffiti, keeping facilities and vehicles clean, complaints-handlingprocesses, providing lighting and security, and providing information about servicesand facilities.9

8 http://www.transport.vic.gov.au/DOI/Internet/transport.nsf/AllDocs/8A3773815437B0F64A25686C0008B211?OpenDocument; last accessed on 28.10.08

9 http://www.transport.vic.gov.au/doi/internet/transport.nsf/AllDocs/FE45C4AFFB575E49CA256E7C00208161?OpenDocument#survey; last accessed on 28.10.08

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The method for monitoring the performance of public transport operatorsdepends on the mode of transport. Bus operators in Melbourne are required tokeep records of the punctuality and reliability of at least 5% of their timetabledservices. These records are then forwarded to the Public Transport Division eachmonth. The division monitors regular passenger services in metropolitan andregional areas through an ongoing programme of random audits of services toensure they comply with performance targets and service standards.

Customer satisfaction surveys

In addition to monitoring the operators’ punctuality and reliability, the PublicTransport Division commissions monthly customer satisfaction surveys. Everymonth, both users and non-users of public transport are surveyed to measurewhether operators are providing the quality of service the community expects. Asample of people is randomly selected from the telephone directory in areas wheretrain, tram, bus, and regional coach services operate and interviews are conductedover the telephone. Interviewees are asked to indicate their usual public transportusage and to rate a number of aspects relating to public transport services accordingto whether they are satisfied or dissatisfied with the service. Responses are furthercategorized by whether the respondent is totally, very or somewhat satisfied ordissatisfied with the service. The survey includes questions about the following.P Service deliveryP Railway stations or tram or bus stopsP Passenger comfortP TicketingP Information services (including timetables)P Personal safetyP Value for moneyP Staff service

Based on the customer satisfaction surveys conducted, monthly and quarterly bulletins– Track Record – are published by the Public Transport Division to inform thecommunity about the performance of Victoria’s public transport services. As anexample, for the quarterly bulletin for April to June 2008, the punctuality (on-timeperformance as a percentage of services run) for the metropolitan buses was 95.1%.10

Also, reliability which was measured in terms of cancellations as a percentage of servicesscheduled for the Metropolitan buses was 0.1%, for the same period.

10 http://www.transport.vic.gov.au/DOI/Internet/transport.nsf/AllDocs/9D693B32D3B15C2ECA25747F0011163D?OpenDocument

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As part of their contracts, train and tram operators have the opportunity toobtain incentive payments for exceeding performance targets and can incurpenalties for below-target performance. This is known as the OperationalPerformance Regime. Train and tram operators are required through their franchiseagreements to provide service levels above a government-set threshold. Thisarrangement applies to punctuality and reliability. Should an operator not meetminimum service level requirements, compensation (usually in the form ofcomplimentary tickets) must be provided to customers holding valid periodicaltickets who travel on the services concerned.

Customer service charters

Victoria’s major train and tram operators are required to provide commitments toprotect the rights of passengers as part of their contracts with the state government.These commitments are covered in customer service charters that also include acompensation code for passengers. Customer service charters clearly define theoperators’ responsibilities and obligations and provide important information andadvice to customers. As of now, bus operators are not required to develop customerservice charters under the existing contracts. However, as new contracts for theseservices are renegotiated, the government is considering including the need for chartersand compensation codes for buses.

Customer service charters describe the rights of passengers and outline keycommitments to ensure that public transport services meet the needs of all membersof the community.

Victoria’s approach of having a dedicated department to plan, manage and monitorpublic transport services, conducting customer satisfaction surveys, have all led toimproving the quality of public transport services and could be worth emulating inIndian cities.

Indore’s PPP model for urban bus operations

Indore is a fast growing industrial city in the state of Madhya Pradesh in India, witha population of about 1.6 million in 2001. Like any other metropolitan city, Indorefaces the challenges of a growing urban population and the resultant increase intransport demand. In order to improve accessibility levels in the city, popularize publictransport, and reduce the dependability over private vehicles, the city started the processof improving its urban bus services in 2005.

In addition to the project investments identified under the JNNURM (JawaharlalNehru National Urban Renewal Mission) for the city, which include physical roadinfrastructure improvements and creation of a BRTS (bus rapid transit system)corridor, the Indore Municipal Corporation, Indore Development Authority, and thedistrict administration jointly invested in the creation of an SPV (special purpose

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vehicle) called the ICTSL (Indore City Transport Services Ltd). Under the aegis ofthe ICTSL, these three players structured a PPP model for creating and expandingurban bus services in Indore.

Conditions of contract

The PPP initiative was based on the recommendation of a World Bank report calledIndia’s Transport Sector, the Challenges Ahead (2002), which stated that the urban bustransport corporation should have a share of 30% in the total capital investment, and70% of the investment should be contributed by private investment. Accordingly, theinvestment in the urban bus transport system was shared between ICTSL and privateoperators and service providers. The investment in common infrastructure like busstops and office space was contributed by the ICTSL, while the investment in therolling stock was made by the private bus operators. The contractual arrangementbetween the ICTSL and the bus operators was based on a franchise arrangement. Oncethe ICTSL identified the routes for operations of the city buses, it initiated acompetitive tendering process inviting private bus operators to bid for operating buseson predefined routes.

The contract between the successful bidder and the ICTSL is for a tenure of fiveyears based on the following major conditions (MoUD and WSA 2008).P The operator would pay a fixed monthly premium to the ICTSL for the right of

plying the buses on selected routes and using the shared infrastructure.P The operation and maintenance cost, daily running costs, and other costs of

operating the services will be borne by the bus operators. This expenditure isfinanced from the revenue shared by them in the system. The operator’s share ofrevenue includes the following.• Entire fare box collections• 60% of the revenue from sale of advertising rights• 80% of the revenue from sale of monthly passes

P The operator will comply with the performance and maintenance standards issuedby the ICTSL for this purpose.

P The fare collected by the operators from passengers would be based on tariffsprescribed by ICTSL

In addition to entering into PPP arrangements for bus operations, the ICTSL alsoinvolved private parties for the provision of supporting services like advertising, sellingbus passes, and installing and operating GIS (geographical information system) /PIS(passenger information system) in the buses. The ICTSL is now also extending thePPP model for operating 100 luxury taxis throughout the city. These luxury taxis willbe accessible to all citizens through a 24×7 call centre (MoUD and WSA 2008).

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Division of responsibilities

A summary of the various activities in bus service provision in Indore and the partiesresponsible for carrying them out is given in Table 2.

Performance parameters

The performance parameters for all the private entities are prescribed and monitoredby ICTSL. These include (MoUD and WSA 2008).P Technical specifications for the rolling stock; dimensions of the bus, capacity of the

busP Specifications for operations; number of buses, frequency, number of trips, time of

operationsP Specifications for the operating staffP Standards for maintenance of the rolling stockP Standards for support services, GIS, and PIS, which are used for monitoring

performance of buses and adherence to defined routes

Table 2 Sharing of responsibilities in Indore’s PPP model for urban buses

Roles/responsibilities ICTSL Bus operator Service provider

Route identification √Route assessment and testing √Construction of common facilities √Prescribing specifications for the buses √Prescribing performance standards √Prescribing fares, tariffs and charges √Investment in rolling stock (buses) √Operating buses √Maintaining buses √Collection of fare √Sale of monthly passes √Sale of advertising rights √Provision of GIS/ PIS √Passenger traffic risk √ √Operating risk √ √Cost escalation risk √Contract risk √

GIS – geographical information system; PIS – passenger information system

Source MoUD and WSA (2008)

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Estimating demand for buses

Indore did not go in for a massive primary survey to estimate the overall demand forurban bus services in the city and, therefore, the distribution of demand among definedroutes and consequently the number of buses to be deployed. Instead, it identified 18high-travel-demand routes within the city based on existing traffic loads. Once theroutes were identified, the ICTSL carried out complete route testing and timescheduling. Finally, the permits for running buses on these routes were taken fromthe regional transport authority.

As per the terms of contract, initially every operator needs to deploy a minimumof two buses on every route. Once they exceed the capacity in terms of passengerkilometres served by them, there is a provision for increase in the number of buses.In case the number of buses on any route has to be increased, the first opportunity todeploy buses is given to the existing operator for that route. In case they refuse,opportunity is given to a new entity. The deployment is, thus, clearly linked with thedemand for service on defined routes. This arrangement gives the ICTSL an effectiveoption of increasing the number of buses within the city. This approach of the ICTSLhas enabled it to implement the bus service within a shorter planning period (MoUDand WSA 2008).

Extending services to less profitable routes

Keeping in mind the commercial viability concerns of private operators, currently, theIndore City Bus services ply on 22 routes. As a result of the bus service, the existingtransport operators running tempos and mini buses have been marginalized. They havestarted operating as feeders for the bus service. The ICTSL is now looking at ways toextend its services to less profitable routes byP planning the systematic integration of the tempo and mini bus operators into the

system as feeders to the bus service;P exploring the option of cross-subsidizing the urban bus services on less commercially

attractive routes by working out a negative premium mechanism, where ICTSL paysthe operator to run the service (MoUD and WSA 2008).

The PPP arrangement devised and implemented by the ICTSL is a good modelfor urban bus system operations. Commitment and involvement of the city authoritiesin improving urban bus services, entering into agreements with the private sector,setting performance measurement standards and usage of modern technologies, areall positive actions leading to enhancement of transport services.

Reforms to improve bus services in Bangalore

Bangalore, India’s IT hub and a rapidly expanding cosmopolitan city, had a populationof five and a half million in 2001 and about 1.3 million vehicles, of which almost 80%

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were two-wheelers. The buses owned by the BMTC (Bangalore Metropolitan TransportCorporation) numbering 2300, accounted for only 0.2% of the total vehicular fleetbut catered to almost 65% of the total passenger trips generated in the city (TERI2002). A gradual decline in the quality of public transport service was being witnessed(even before the formation of the BMTC) along with some major problems.P Irregular servicesP Drastically reduced fleet utilizationP Low internal and external efficiency in terms of resource managementP Poor maintenance of vehicles in almost all depotsP Mounting losses

Recognizing the need for reforms, the Government of Karnataka initiated a numberof studies to identify strategies for improving the KSRTC’s (Karnataka State RoadTransport Corporation’s) functioning. Some of the suggestions made by thesecommittees are as follows (TERI 2002).P To bifurcate the KSRTC into four or five organizations, including one for Bangalore

city, to improve efficiencyP Abolition of the position of regional manager and empowerment of depot managersP To continue with the policy of nationalization of routesP To set up a fare-fixing body or tariff committee to work out an escalation formula

for increasing faresP To rationalize routesP Pursuant to these recommendations, in 1997, the BMTC was created as an

independent corporation under the Road Transport Corporations Act 1950 bybifurcating it from the KSRTC. It took over 13 depots, divisional offices, andworkshops and the bus stations attached to the erstwhile Bangalore MetropolitanService divisions, with 2088 buses operating 1934 schedules and 13 294 employees,a staff ratio of 6.9 persons per bus (TERI 2002). The operation of the corporationis categorized into city and suburban services.

The BMTC buses ply on grid routes, leading to better accessibility to all areas onthe essentially hub-and-spoke- shaped road network. Routes under the BMTC areeither allocated on the basis of demand from a group of commuters or politicalpressures or successful experimental routes taken up by BMTC on its own initiativethat result in high monthly revenues (TERI 2008). The different types of servicesoffered by the BMTC include the following.P Ordinary serviceP Pushpak serviceP Volvo service (air conditioned)

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The BMTC has been improving its performance over the years. Today, it is the onlyprofit-making public bus company in India. Its improved performance is in largemeasure due to improved employee performance. The number of accidents perhundred thousand kilometres has shown a downward trend due to the improvedpersonnel policy and regular training to the drivers, and a stringent selection processes.The rationalization of fares and operation of differential services in the city has helpedmake bus transport more attractive to the commuters.

The BMTC went about carrying its operations with the objective of providing anefficient, adequate, and economical transport system to people. The occupancy ratioover the years has improved. BMTC has 1063 routes, and the average route lengthhas increased over years. The percentage of off-road vehicles has reduced afterbifurcation and the vehicular utilization has increased. The operational performanceof the BMTC has also increased, as has the average number of passengers carried perday (TERI 2002).

BMTC has also tied up with companies like Infosys to provide dedicated servicesto their employees during peak travel hours, in order to prevent them using theirpersonal vehicles, thereby encouraging greener travel habits and reducing the stressof driving.

Though far from being a decongested city having clean air to breathe, Bangaloreis a good example of an Indian city taking serious initiatives to provide and promotepublic transport for various categories of users by improving the accessibility andquality of services.

Table 3 summarizes the key lessons learnt from the review of good practices.

Identifying the sustainability parameters for transport

Based on a review of sustainable transport definitions, good practices, and measuresadopted both nationally and internationally to address sustainability concerns in urbantransport, the following definition for a sustainable transport system in an Indian citywas arrived at.

‘A transport system where every individual or commuter category in a city is ableto fulfil his or her mobility needs in a quick, affordable, safe, reliable, comfortable,energy-efficient and environmentally benign manner.’ This is also in line with theobjectives spelt out by the National Urban Transport Policy of the MoUD (Ministryof Urban Development) for addressing mobility in urban areas.

It can be observed from the review of literature and case studies that some of thekey components of any sustainable transport strategy would typically include thefollowing.P Minimal need to travel (includes demand management and integrated land use and

transport planning)P Minimum dependence on personal motorized travel modes

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P Maximum use of environment-friendly modes like walking, cycling, and publictransport systems

P An attractive, efficient and well managed public transport system to cater to themobility needs of all traveller groups

P Use of clean fuels and maintenance and upkeep of vehicle fleetsP Minimum dependence on fossil-fuel-based energy resourcesP Minimum impact on environment and public well being, with minimum air and

noise pollution

Table 3 Summary of good practices studied

City Country Good practice

Singapore Singapore P An integrated land and transport policy

P Emphasis on public transport (particularly bus transport) with

supporting measures to restrain car use and maximize efficiency of taxis

P Independent regulator for buses

P Performance measurement of services

P Customer satisfaction surveys

Auckland New Zealand P integrated sustainable transport plan with actions and targets and

timelines clearly charted out

Curitiba Brazil P Integrated land use and transport planning

P Dedicated bus corridor

P Strong political will to promote public transport

Bogota Columbia P City municipality empowered to handle transport functions

P Dedicated bus corridors in the city

P Quality of public transport matching with personal travel

P Strong political will to promote public transport

Melbourne Victoria P Dedicated public transport division to plan, manage, and monitor

public transport

P Conducting customer satisfaction surveys

P Publishing of performance reports

P Citizens’ charter for public transport services

Indore India P Development of a PPP model to operate urban bus services

P Involvement of all city actors

Bangalore India P Institutional reforms for improving services

P Differentiated public transport services

P Corporate initiatives to shift its employees to public transport

PPP – public-private partnership

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P Safety and security of transport users and non-usersP Equitable travel opportunities for allP Good traffic managementP Minimum travel timeP Pricing reflecting a healthy balance between affordability for traveller and recovery

of costs of externalities caused from travellingP Comfortable and clean travel environmentsP A well managed and integrated urban transport system using ICT (information and

communication technologies)P An integrated and coordinated approach between the various organizations involved

in urban transport and the necessary policy, legal and regulatory frameworks in placein order to enable them to achieve goals of sustainability.

From the above it is evident that there are a number of areas where interventionsshould be made in order to make transport services at any location sustainable.

Improving the share and quality of public transport: a key step for making urban transport

sustainable

As mentioned earlier, arising from the various definitions of a sustainable transportsystem, a number of key action areas emerge. From all these strategies that have beendiscussed in the transportation literature, and various policy initiatives governmentsaround the world have taken, provision of adequate, efficient, and comfortable publictransport emerges as one of the most important solution to ensure the sustainabilityof urban transport.

There is enough evidence that has been documented to support that good andefficient public transport systems11 can go a long way in addressing all the goals ofsustainable transport. Advantages of public transport include the following.

Advantages of public transport include the following.P They are more ‘surface efficient’ and hence, reduce congestion.P They result in fuel savings, emission reductions, and safer means of travel.P They serve the travel needs of the ‘disadvantaged’ sections of the society, namely,

the urban poor, women, children, and the elderly, and households without anyvehicle.

P They make the public urban space more socially integrating and restore cohesionin the society by creating access to jobs and education, thereby creating moreeconomic and opportunities and a better standard of living.

11 Here, public transport systems include shared IPT (intermediate para transit) modes like auto rickshaws, jeeps,taxis, vans, and mini buses, which carry passengers on a per seat fare basis. Such modes are common in manyIndian cities as public transport carriers, especially in cities where there are no formal public bus or rail systems.

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P If priced properly, public transport could provide opportunities of more equitabletravel, which are diminishing today in Indian cities due to increasing number ofpersonalized modes on a shared right-of-way, thereby leading to subsidization ofoverall travel costs of the choice rider (person having a choice to use personal orpublic transport modes) by the captive rider (a person who is completely dependenton public transport).

Good and efficient public transport has been universally acknowledged as one ofthe most important pillars of any sustainable transport system as it is to a large extent,able to mitigate the social, economic and environmental negative externalities of travelling.This measure, if accompanied with supporting actions like restraining personal vehicleusage, according priority and better traffic management, and introduction of ICT canhelp achieve the multiple goals of sustainable mobility in urban areas.

When it comes to urban transport, large Indian cities today are a victim ofunplanned growth and motorization and are plagued with the challenges of congestion,air pollution, inequitable travel opportunities, accidents, and poor quality and imageof public transport. The small and medium towns, which are close to 5000 in number,and are rapidly expanding, are closely following suit. Given the current status of publictransport and intermediate public transport in Indian cities, and the scope of improvingthe penetration and quality of these services, sustainability in urban transport servicedelivery in this study is explored in terms of the ways and means to make the existingpublic transport systems (both formal and informal) in Indian cities more sustainable.

With the formulation of the NUTP (National Urban Transport Policy) andsupporting programmes like the JNNURM, cities are now motivated to invest in andmove towards properly planned and well managed public transport systems. For thefirst time in the country, there is a clear focus and conscious effort to address thesustainability issues facing urban transport in Indian cities by increasing the shares ofpublic transportation in cities. In the light of this, funding under the JNNURM isextensively being used to augment public transport infrastructure and supportingfacilities. Given the complex nature of public transport operations in this country,adding new infrastructure, though extremely important cannot be the only solution.There is a need to go beyond infrastructure provision and address the operationalconcerns of the existing public transport systems (including informally organizedsystems) and see how these can be improved. After all, on an average, more than 60%of a city’s travel needs are met by public transport, and its current levels of inadequacy,owing to various internal and external inefficiencies, make it extremely essential toincrease the share of public transport in the long run, and arrest the currently rapidlydecline in the shares of public transport in cities in the short and medium term. Inorder to do this, and also from a sustainability point of view, it is important to assessthe efficiency and adequacy of existing public transport systems in Indian cities.

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Identifying parameters for assessing the sustainability of public transport

Besides availability of public transport modes and routes, and access to good publictransport services by all user groups in all locations in a city, there are some otherimportant parameters that are essential to evaluate public transport performance.

M P V Anantha has carried out research in India on the subject of public transportadequacy and efficiency, and according to him, efficiency is defined by the following(Padam 1990).P Ensuring operations of service according to published timings to obtain regularity,

punctuality and reliabilityP Ensuring that statutory requirements are observed in the operation of services in

the areaP Ensuring that services are run at speeds consistent with the safety of the bus

occupants and other road usersP Ensuring rendering assistance to accident victims and proper accident data collectionP Ensuring operation of buses by crews in proper turnout and their rendering service

with civility to the passengersP Ensuring maximum services at minimum costs to the public and eliminating

wastages internal to the working of the organization

Another set of parameters key to public transport performance are the internalefficiency parameters. However, these are monitored by the STUs (state transportundertakings) and in locations where there are other institutional models of servicedelivery, these are not monitored. The ASRTU (Association of State Road TransportUndertakings) in India regularly publishes data on the performance of STUs. Itincludes the following.P Service kilometre operated/vehicle ownedP Passenger carried/vehicle ownedP Passenger carried /staff memberP Staff/vehicle ownedP Per cent of vehicle fleet operating in peak hoursP Revenue/vehicle ownedP Revenue/vehicle kilometreP Kilometres operated between breakdownsP Fuel consumption/ kmP Cost/vehicle kmP Fare collection leakageP Employees’ absenteeismP Adherence to emission norms, age, roadworthiness of buses, and so on

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To sum up, the following parameters are necessary for assessing sustainability ofpublic transport services in any Indian city.1 Availability2 Accessibility3 Transport performance linked to customer convenience (includes reliability of

services, presence of information systems, safety and security while travelling,comfort and cleanliness levels in the buses, time and cost of travel, and so on)

4 Operations and management5 Financial sustainability6 Environmental benefits

This study focuses largely on the various challenges and solutions associated withimplementing parameters 1–4. In addition, the study focuses on the most critical aspect,the institutional and organizational frameworks relating to public transport in Indiancities.

Analysing the existing situation

Public transport in Indian cities is inadequate. Given the rapid urbanization and sprawlof cities, it has not been able to keep pace with the rapid increase in travel demand inthe past few decades. Public transport mostly being road based in most cities, the busservices have deteriorated and their relative output has been further reduced aspassengers have turned to personal modes and intermediate public transport (such asthree-wheelers and taxis). Though there is a high demand for public transport in Indiancities, given the rapid rates of personal motorization, public transport shares aredwindling. While in 1951, one out of every 10 vehicles sold was a bus, today only oneout of every 100 is a bus. In 2007/08 only 38 655 buses were sold against 1.5 millioncars and this is despite the fact that buses still account for about 50% of all journeysperformed by road.12 Further, the deteriorating service quality of buses has resultedin poor travel conditions for the captive riders.

In India, barring the four large metros – Delhi, Mumbai, Chennai and Kolkata –which are served by a rail-based transit system in addition to their existing road-basedpublic transport, in all other Indian cities, public transport needs are met by road-based transport, which is usually a combination of public vehicles like buses and minibuses and paratransit like passenger tempos, vans or other large-passenger-capacityvehicles. Since our cities use a mix of public modes to meet their travel needs, publictransport, in this context, can be considered as any communal form of transport otherthan a car or two-wheeler, for which passengers pay a certain amount to be transportedfrom one place to another. In India, presently less than 15 cities have formalized public

12 http://www.cseindia.org/AboutUs/press_releases/press-20090205.htm

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transport systems managed by municipal undertakings or state corporations. In all otherurban locations, public transport is a mix of informal modes.

Public transportation, a multifaceted subject, also has a number of challengesassociated with it. In India, the problems with public transport can be classified intoinstitutional, technical, financial, managerial, and operational, and therefore, solutionscan be worked from each of these ends. What is key is that Indian cities have not doneand are still not doing enough to plan for public transport systems. Despite there beinga huge demand for it, public transport today is highly inadequate and plagued with anumber of problems. These have been discussed below.

Inadequate policy thrust

The Government of India announced the NUTP in 2006 (MoUD 2006) to meet thechallenge of India’s rapid urbanization phenomena and the resultant increase in theurban travel demand. The policy aimed at meeting the mobility needs of the currentand projected population and ensuring sustained flow of goods and people in urbanareas, using a pro-public transport approach.

Some of the policy objectives in the NUTP are being realized as proposals andprojects under the JNNURM, which has selected 63 cities in India and is implementingan urban reforms agenda of which urban transport is a significant component. Eachof these 63 cities has come up with a City Development Plan, which is a policy andinvestment plan for the city for the next five years (2007–12). The Mission now makesit conditional upon the cities to take up projects in line with the recommendationsmade in the NUTP, in order to receive funding and grants. For this, each of the citieshas to come up with a comprehensive mobility plan for the city, and currently, manycities are engaged in the same.

The NUTP is a good start towards changing the increasingly deteriorating urbantransport scenario in the country. It places, the highest priority on promoting publictransport systems in cities by committing a sizeable financial support from the uniongovernment to public transport development projects in cities. However, most projectproposals for urban transport in cities today are not conforming to the true spirit ofthe NUTP and are focused more on building more cost-intensive mass transit systems,without making an effort to improve the existing systems, and arrest the decliningshares of public transport. Also, focusing on expanding the road space without givingpriority to public transport and supporting measures to improve access to and qualityof public transport only creates more space for personal vehicle users.

Though the NUTP is a good starting point and a good attempt towards changingthe increasingly deteriorating urban transport scenario in the country, it does notadequately address some important issues.P There is inadequate emphasis on translating policy at the state level to ensure that

the cities are guided in their actions by a state-level policy that is a further detailing

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of the NUTP. This is important as every state should play a more active role inplanning and managing urban transport operations in a city.

P Though there is great focus on the need to build and develop mass transit systemsin cities of various sizes, there is inadequate emphasis on the need to improve theavailability, accessibility, and quality of the existing public transport systems. Thisneeds monitoring and review mechanisms to ensure quality controls, consistency,and effectiveness of services delivered, along with conducting regular customersatisfaction surveys.

P The policy does not talk of setting targets to increase modal shares of publictransport in cities.

P There is no mention of demand management measures substituting physical travelby means of virtual mobility like telecommuting and e-services.

P There is inadequate emphasis on the need to develop detailed guidelines onprocedures for conducting mobility audits, traffic surveys, data modelling andanalyses for transport planning, alternative analysis (including engineering,economic, and environmental) between two or more transport options, and soon.

Legal and institutional issues

Though the regulatory environment governing urban public transport in India is laiddown in various laws, regulations, and policies, some of which are national, somestate, and some at the city level, public transport does not feature under any oneparticular list.

The laws that regulate public transport in the country are mainly the RoadTransport Corporations Act (1950) and Motor Vehicles Act (1988). These lawsmake the states governments responsible for regulating road transport, regulateworking conditions of drivers, and stipulate that no public service vehicle canoperate without a permit. Other state laws indirectly impacting public transportindirectly are the municipal laws that authorize urban local bodies in states toregulate traffic, carry out urban planning, and so on. Other laws like pollutioncontrol and police acts are also relevant.

Currently, there is no exclusive institutional mechanism under the MotorVehicles Act for urban transport. Through the Motor Vehicles Act, an institutionalsetup has been created for controlling public transport, which involves the regionaltransport officer, regional transport authority, state transport authority, andthe state government; however, this has proven to be inadequate, as for successfuloperations of public transport in a city, there is need for the involvement ofcity authorities, citizens and integrated planning between the various players liketraffic police, urban development authority, and bus operators, which is currentlymissing.

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Lack of organizational coordination

The current legal institutional arrangements for managing urban transport weredeveloped at a time when urban transport was not a major concern. As a result, thereis a high degree of fragmentation, and separate enactments cover different modes oftransport. Apart from this, the planning and implementation of urban transportinfrastructure rests with multiple agencies, which do not necessarily work in acoordinated manner.

Today, there exist a number of agencies whose activities are directly or indirectlyrelated to public transport operations in a city (MoUD 2007).P The local municipal government provides roads, infrastructure like bus stands,

regulates traffic along with the traffic police, controls construction, and so on.P The local city development authority discharges town planning functions.P The police regulates traffic.P The public works department has responsibility for roads and bridges.P The development authorities carry out city planning.P The pollution control board enforces emission norms.P The labour department enforces labour laws.P The tax authorities impose and collect different taxes.

Coordination between various agencies is usually poor, and this affects the overallquality of public transport services. There is a lack of coordination among the stateand the centre, and more importantly, between the city and state as far as publictransport management is concerned.

Inadequate availability

Public transport systems have not been able to keep pace with the rapid and substantialincreases in demand over the past few decades. Bus services in particular havedeteriorated and their relative output has been further reduced as passengers haveturned to personalized modes and intermediate public transport (such as three-wheelers and taxis), adding to traffic congestion, which has had its impact on busoperations. In many cities, bus services as public transport modes are virtually non-existent.

For example, Surat, a significant industrial town of Gujarat, till recently did nothave a proper bus system; and autorickshaws met the city’s public transport needs.Only recently was a city bus service started by the SMC (Surat MunicipalCorporation); the buses were procured, owned, and operated by a private company.According to the SMC, the current fleet is still far short of the 4000 buses that arerequired.13

13 Comprehensive Mobility Plan for Surat

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The share of public transport has dwindled in most cities due to the rapid increasein personal motorization. Fleet sizes in nearly all public undertakings have declinedrather than grown to meet the demand. Detailed surveys and studies carried out byRITES Ltd in a number of Indian cities in 1994, which were later updated by WSA(Wilbur Smith Associates) in the same cities in 2007, indicate that the share of publictransport trips in different categories of cities (by size) has fallen dramatically (MoUDand WSA 2008).

The major reasons for the decline in the share of public transport are the inabilityof public transport operators to keep pace with the increasing demand and thedeteriorating quality of service arising out of continued losses and, thus, inadequatecapital generation for capacity augmentation. Such a situation has arisen because ofcontinuing inefficiency in operations and uneconomical operations to meet theuniversal service obligation.

Even where routes are available, scheduling for most services is not based on anydemand analysis. Kharola and Tiwari (2008) observe that ‘Some of the cities followscheduling based on morning and evening peak requirements, however, improvements inreliability, speed, availability, cost reduction, that can be brought out by improved scheduling,feeder systems, changes in road designs, bus stop location and signal system have not beenexplored.’

At present, there is no standardized norm established to assess the availability ofpublic transport services in a city in terms of modes or routes or shares. However, theMoUD is now attempting to develop such norms for cities. Also, under the JNNURMprogramme, cities are now eligible to request for grants in order to purchase buses.This financing under the JNNURM is meant exclusively for city bus services and theBRTS for all cities covered under the JNNURM. In order to ensure that the busesprocured under the JNNURM are utilized exclusively for urban transport, the states/union territories/ULBs/parastatals will have to set up a city-specific wholly owned SPV/umbrella public body for controlling and managing the city bus services/BRTS.14 Inaddition, this funding is conditional upon an MoA (memorandum of agreement)between the states and city governments and they together undertaking structuralreforms in the field of urban transport, for all million-plus cities. However, what isimportant to note here that it is the small and medium-sized cities (most are non-JNNURM cities) that are rapidly adopting a path of high personal motorization.Lacking the necessary basic public transport facilities, these cities would also needattention, aid, and institutional and organizational reforms to make their publictransport sustainable.

14 http://urbanindia.nic.in/moud/programme/ut/buses_funding.pdf

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Poor accessibility

Even where buses and routes are available, access to them within comfortable walkingdistance and by all user groups is a challenge in most cities. This is especially true forthe urban poor, who usually live on city’s periphery and have to walk long distancesand wait long hours to catch buses. In all the cities visited during this study, it emergedfrom discussions that there was no emphasis on ensuring comfortable access to everyresident in the city.

The conventional bus designs are inconvenient and unfriendly to the disabled. Onlyrecently have cities like Bangalore and Delhi invested in low-floored modern bus fleets.

Poor quality and image

Public transport today suffers from a poor image—slow, overcrowded, dirty and unsafe.Basic issues like proper information system, and clean and safe passenger waiting andtravelling environments affect a person’s choice to use public transport. These issues havenot been addressed under most schemes to improve urban transport in cities, and it islargely because of these issues that the choice riders do not wish to use public transport,and captive riders aspire to have their own modes of travel.

Data challenges

There is a serious gap in the existing data sets and data collection methods as far asurban transportation in general is concerned in the country. The requisite tools andknowledge on what kind of data to collect, how to collect it, when to collect it, withwhat frequency to collect it, and finally, how to use it, is lacking in most cities. Thedata sets from the past are inconsistent and in many cases, incomplete.

Operational challenges

Financial viability

Financial losses have continued to rise because of continuing inefficiency in operationsand uneconomical operations to meet the universal service obligation. This has alsoresulted in a continuous drain on scarce budgetary resources, and the problem hasbeen compounded by the growing inability of the government to provide grants.Funding of bus transport in India by internal resources, market borrowings, and equitycapital provided by the union and state governments is proving to be inadequate.

A major component of the costs is the various taxes and levies imposed by theunion, state and local governments on bus operations run by a private or public sectororganization. These include taxes related to capital acquisition, operations, transportrevenue and other levies like advertisement tax. The effects of these are absorbed inthe fares and then have to be borne by the travellers (Kharola and Tiwari 2008).

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Internal inefficiencies

Overstaffing, pilferage, unscientific route planning, poor management practices,outdated maintenance practices, ineffective monitoring mechanisms, low motivationlevels among crew, lack of discipline, and so on, have resulted in reduced internalefficiencies in both public and private sector bus operations.

Increasing bus fleets

Increasing the bus fleets appears to be one of the first and foremost solutions to improvepublic transport services. However, the economics of this measure needs to be carefullyevaluated by the cities. There are various aspects like fare structures, provision ofsubsidy, and labour laws that have resulted in the current capacities of public transporton road in our cities. For example, salaries account for almost 50%15 of the operatingcosts in government-owned bus companies—the salary of a government bus driver isalmost three times that of a regular private driver. Now, if governments acquire newbuses, an increase in fleet size with no increase in fares would imply a reduction inpresent load factors, which implies a decrease in revenue per bus. However, since busoperating costs remain the same, this implies a net loss to the operator. Also, if operatorsoperate at low levels of efficiency, their profitability is low and it becomes difficult forthem to raise finances for fleet renewal or good quality maintenance. This results inan overall decrease in the level of service offered to the customer, much below thefleet’s potential. Such issues need to be addressed while going in for fleet expansionand, therefore, the role of the private sector in acquiring and operating buses shouldbe explored.

Improper planning for routes and fares

Currently, the methods for setting fares and routes are ad hoc and not based on anyscientific basis. Poorly designed routes and fare structures usually lead to loss inridership and increase in operation costs.

Lack of priority

Public transport has not been given the priority and attention it deserves. Despitebuses being more space efficient, their movement is usually slowed down bypersonal vehicles. Many cities like Delhi, Pune, Jaipur, and Ahmedabad have eitherimplemented or are soon going to implement the concept of dedicated buscorridors in form of BRT (bus rapid transit). However, the experience has been amixed one as the supporting operational and management measures have not beenadequate. Though the concept is well intentioned, there is still much to be done

15 Based on interviews with experts

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at the execution and coordination levels. Most of all, it is the citizens who need tobe made more aware of the benefits of such practices and be involved from thebeginning as important stakeholders—ultimately it is they who are going to be theusers of the system.

Absence of performance measurement

Currently, the performance of public transport operations is measured in terms of someinternal efficiency parameters (cost per km, fuel consumed per km, bus staff ratio,and so on) by the state transport undertakings, which are reported by the ASRTU(Association of State Road Transport Undertakings). However, there is no system thatassesses the overall performance of public transport in a city on basic parameters likeavailability, accessibility, and quality of services. Literature reveals that countries thathave successful public transportation systems have established performance monitoringmechanisms that not only evaluate public transport services in a city, but also acrosscities. There is no such concept in India today.

Given the multiplicity of organizations involved and lack of proper coordinationbetween them, the complexities associated with the public transport sector, lack offunds and resources, limited human and technical capacities, and inadequate dataavailability, it appears a tall order to establish such a system. However, from theviewpoint of ensuring sustainability, it is absolutely essential that such a tool beconsidered.

The MoUD has recently attempted a list of indicators to measure the level of serviceof urban transport in Indian cities. These indicators feature under the following broadheads.P Public transportP Non-motorized transportP Pedestrian facilitiesP Intelligent transport systemsP EnvironmentP Road congestionP SafetyP Parking

The MoUD is currently in the process of finalizing these indicators in consultationwith academia and research institutes, including TERI, and it is expected that oncefinalized, the MoUD will ask the JNNURM cities to establish baselines on these andwork towards improving performance on each based on a set of norms. This will be agood starting point for cities to assess their current status and also allow for inter-citycomparisons.

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Lack of focus on customers

Public transportation in India has not been adequately customer oriented—many busroutes not available, long waiting time, bus stops located far away, crowding and lackof comfortable seating in buses, difficulty for the elderly and physically challenged toboard and alight from buses, overcharging by autorickshaws, harassment by bus crew,eve-teasing in buses, bus-breakdowns, and lack of differentiated services are all areflection of this and are common to every Indian city. As examples, Surat, Bangalore,and Hyderabad reveal a high level of dissatisfaction amongst the users, especiallywomen and the elderly, while using public transport services. They feel there is a highrisk of getting robbed or harassed. This discourages them from using public transport.

The customer charters created by the government service providers are ineffectiveand rarely translated on the ground.

A positive action in this regard was identified in Shillong, where Maruti 800 carsserve as the public transport system. The taxi association jointly with the traffic policeis in the process of issuing identity cards to the taxi drivers. This initiative was takenas a response to strong community concerns raised with regard to the safety of womentravelling in taxis, especially during late hours. Any passenger will now be able torequest for driver details at any point in their trip, thereby ensuring his/her safety.

Absence of demand management measures

Other than introduction of higher parking fee in certain areas in large cities, demandmanagement measures to discourage usage of personal vehicles are virtually non-existent in Indian cities. E-governance initiatives in cities like Bangalore and Surat area step towards demand management, as they result in a reduction of trips made byan individual. Also, Shillong has introduced staggered working hours for schoolchildren,which eases traffic woes in the city. However, there is not enough emphasis and policyfocus on these measures as these in most cases; these would have to be preceded by agood and attractive public transport system to compete with the convenience andcomfort the personal vehicle.

Capacity and human resource issues

Being a relatively new area of concern, the requisite expertise for comprehensive,integrated, and holistic urban transport planning is lacking in the country. Solutionsto urban transport problems have tended to emerge as piecemeal solutions, merelyseeking to create additional capacity on selected corridors, without an understandingof how this additional capacity would impact travel demand in the long run and theimplications it would have on various other aspects of urban transport. Today, citiesdo not have the requisite professional knowledge and competence backed by therequired qualifications, to address the challenges of present-day urban transportplanning and management.

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TERI in 2006 carried out training needs assessment on urban transport planningand operations for personnel working in all departments related to urban transportplanning and provision at the state and city levels. Training needs at various levels ofthe department were assessed and an action plan for training was drawn up (TERI2007). The following are some of the areas that emerged from the needs assessmentexercise.

General urban transport

P Understanding of what urban transport is, its constitution, and issuesP Understanding what is ‘sustainable transport’ from the viewpoint of environment,

energy, safety, and equityP Understanding what is traffic management and its componentsP Importance of public transport and non-motorized transport systemsP Understanding what is TDM (travel demand management)P Role of the private sectorP Resource mobilization and transport investmentsP Understanding of roles of other departments and interdepartmental coordinationP Concept of a UMTA (unified metropolitan transport authority)

Integrated land-use and transport planning

P Understanding land-use planning as a component of transport planningP Importance of transport planning as a part of Master Plan preparationP Understanding of parameters of urban form (like density, land use mix, city shape,

street patterns, and orientations) and its effect on travel demand and trip lengthP Consideration of geographic and socio-economic constraints while planning for

transportation in urban areas

Planning, developing and operationalizing public transport

P Importance of public transport and non-motorized transport systemsP Various public transport modes–their merits and demeritsP Estimating demand and planning for public transportP Understanding different components of a public transport system–routes, modes,

accessibility, infrastructure, service quality, performance measurement, customerconvenience, pricing, and so on

P Concept of multimodal transport–integrating different modes of urban transportP Choice of technologies and financing optionsP Service planning–bus scheduling, driver timetables, and so onP Route scheduling and rationalizationP Tariff setting and rationalization, provision of subsidies, and so onP Restructuring options

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Transport operations and regulation

P Knowledge of provisions of the Motor Vehicles Act, Road TransportationCorporations Act, and the other relevant acts, rules and standards

P Motor vehicle safety and emission regulationsP Vehicle inspection and maintenance, licensing, registration, and test proceduresP Safety in transport operationsP Training for bus staff

Traffic management

P Understanding what is traffic management and its componentsP Ensure proper functioning and maintenance of traffic management devices–traffic

lights, signals, markings, sign boards, dedicated bus lanes, and so onP Tools for carrying out effective enforcement of rulesP Managing information systems–record keeping and creation of databases for

traffic related informationP Road safety education–accident investigation and data collectionP Knowledge of first aid, splinting, safe extrication of patients, and safe transfer of

victims in case of accidents

Provision and maintenance of roads and infrastructure

P Design and maintenance of road works for proper traffic managementP Understanding components of road safety and ensuring safety standards in

designs of roads, intersections, crossings, and junctionsP Concept of conducting road safety auditsP Financing for road and related infrastructure projects

Environment and energy-related issues

P Assessment of environmental quality–monitoring air quality and urban airpollution, fuel quality

P Health impacts of pollutionP Understanding of transportation and climate change linkP Transportation of hazardous /bio-medical wastesP Fuel and vehicle technology issues

It is worth noting here that it may not be necessary for departments to haveexpertise in all the above areas. They could outsource some or most of these activitiesto the private sector or research institutions. However, unless a city has a policyframework or vision for sustainable transport, it will be difficult to build capacity andguide developments in the area.

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Another area that has been neglected has been human resource development,especially for bus drivers, conductors and other staff of bus companies. Usually,the behaviour of the bus crew is rude and unhelpful, which leads to harassmentof customers and eventually, loss of ridership. It is lack of training on aspects likestress management, sensitization to customer needs, and lack of proper employeegrievance redressal mechanisms that lead to such circumstances. Also, the capacitiesof the operators in terms of modern business practices and professional attitudesleave much to be desired.

Challenges for the small and medium-sized cities

The larger cities of the country have adopted a path of unsustainable growth inthe number of personal vehicles, coupled with lack of proper public transportplanning. Smaller towns are fast following suit, which is another cause foralarm. Increase in personal motorization has led to high pollution levels, severetraffic congestion, on-street parking of personal vehicles due to lack of adequateparking places, and very bad pedestrian environment in these cities. Moreover,given that average travel distances are much smaller in these cities, as comparedto the metropolitan cities, these are ideal for public transport usage. However,given the inadequacies in the existing public transport systems in terms ofproper planning and operations, the use of public transport in these cities is fastdeclining.

The image of public transport is extremely poor in most Indian cities. Mostcities do not have formal public transport modes, and a significant part of theirtransport demand is met by IPT (intermediate public transport) and other informalmodes such as autorickshaws, taxis, vans, and a variety of locally designed andmanufactured, and often unlicensed vehicles, which carry passengers on a sharedbasis. Since these modes are not formally organized, there is no legislative orregulatory oversight on their operations. Consequently, these modes do not meetany benchmarks of safety, environmental, equity and quality of service.

Unlike the larger cities, where urban transportation problems have becomeunmanageable and cannot be neglected any more, transportation issues are stillnot given much importance in the small and medium towns, as these towns usuallylack the capacity and means to address the challenges. Under the JNNURM, onlya few cities have identified urban transportation improvement projects; however,it was observed in these cities – in Surat and Shillong, for example – that a largershare of these projects were cost intensive and aimed to increase road space, ratherthan focusing on enhancement of public transportation and restraining personalvehicle use in the city. This also encourages people to use private vehicles.Consequently, the share of public transport is declining rapidly in the smaller andmedium-sized cities of India.

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Recommendations for transport

A city’s transport system has an impact on its sustainability, and one of the key pillarsof a sustainable transport system is a sound and efficient public transport system.Therefore, a sound and efficient public transport system becomes an importantindicator for a city to be sustainable.

The recommendations for urban transport in this report focus primarily on waysand means to make public transport in Indian cities more sustainable. Theserecommendations focus on aspects like policy, institutional and organizationalframeworks, and setting goals and specific actions to achieve those goals. Therecommendations are primarily intended for use by state and city authorities in Indiancities having direct and indirect responsibility for the planning and management ofurban bus services, passenger transport services, and transport service operators.

These recommendations are largely an outcome of lessons drawn from nationaland international good practices and the discussions held with experts and practitionershaving experience in the subject.

Policy, organizational, and operational reforms

Public transport subsystems are part of a larger system. This larger system impactsthe public transport subsystem in a number of ways. Any attempt to reform the publictransport subsystem should not be oblivious to the existence of this larger system. Thislarger system can also be construed as the ‘external environment’ of the public transportsubsystem. The overall policy, the laws, the regulations, and the quality of infrastructureall put together constitute the larger system within which the public transportsubsystem operates. Making the public transport subsystem more sustainable wouldrequire changes in the external environment, institutional changes, as also changes inthe internal working of the public transport subsystem.

Policy: towards a coherent state transport policy

At a policy level, there exists the NUTP, which brings forth clearly the importance ofincreasing public transport shares in cities, but there needs to be a sharper focus ontranslating the NUTP objectives at the state level. The states should formulate a stateurban transport policy, which should be a further detailing of the NUTP. State urbantransport policies should have the following key points.P Increasing the share of public transport in cities by a given percentage by a target

year (say, increase the share of public transport trips in a city to 85% by 2030)P Constantly improving the availability, efficiency, and quality of public transportP Putting in place supporting travel demand management measures like personal

vehicle restraint measuresP Integrating land use and transport planningP Providing priority to public transport through fiscal measures

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P Giving priority to public transport through allocation of adequate road spaceP Improving traffic and traffic managementP Regularly monitoring public transport performance and publishing results of the

sameP Achieving intermodal integration wherever necessary and possibleP Using suitable technologies that facilitate improved public transport service deliveryP Progressively reducing the burden on environment and energy use from transportP Developing data systems and human capacity to tackle the various aspects related

to urban transportP Highlighting public transport as a key aspect of city development and imageP Identifying the requisite fiscal policies and markets for improving urban

transportation services

It should be borne in mind that formulating a policy is not an end in itself. It needsto be translated into action. This would involve carrying out changes in the law, changesin land-use planning, changes in the road space utilization policy, changes in theinstitutional frame works, and so on. Cities should detail out actions based on theabove policy guidelines and ensure that these are part of their transportation plansand states should sanction funding to cities on the condition that the plans help inachieving the policy objectives.

Streamlining the institutional framework for public transport

Role of the states

At present, there is a virtual absence of a state-level apex body on public transportthat could formulate policy, prepare plans, provide expert assistance to the cityauthorities, and monitor and evaluate the performance of the state public transportsystem. Therefore, there is need to set up a dedicated public transport division as aunit in the state transport departments. This division could carry out the followingfunctions.P Promote public transport and ensure that the city development plans and city

mobility plans fulfil the objectives of improving public transport services in a holisticmanner and in line with the state urban transport policy discussed earlier.

P Render technical assistance to the cities.P Help cities set public transport performance standards and ensure that these are

made part of the permit conditionality to the extent possible. These could be usedfor assessing a city’s performance and also enable inter-city comparisons.

P Assist in gaining access to funds for public transport projects (includinginfrastructure works, new buses, and modern technologies) at reasonable rates.

P Provide guidelines to city governments on setting fares.P Help cities in initiating and executing capacity building exercises.

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Constituting a ‘transport cell’ in the ULB

It seems logical and sensible for a city to take responsibility for planning and managingits urban transportation system, particularly, planning, managing and running its publictransport systems. This would ensure better coordination between the various relevantdepartments like roads, traffic police, urban planning, and the public transport serviceproviders. The review of literature also reveals that empowerment of the city authoritiesin cities like London and Bogota to manage transportation functions, played a keyrole in attaining success in implementing sustainability measures in urban transport.

In most states in India, public transport is provided by the state governments, whichare empowered by the Road Transport Corporations Act (1950) to set up state roadtransport corporations. Only the Bombay Provincial Municipal Corporations Act(1949) empowers city governments in states where it is applicable, that is, Maharashtraand Gujarat, to run public transport services. However, even these are regulated andgoverned by the Road Transport Corporations Act. In the recent past, cities like Suratand Indore have initiated public transport improvements under a setup whereresponsibility for managing the city bus services has been with the city authorities.Similarly, either through initiative of the state governments (as in case of Surat) or byself-initiative (as in case of Indore), other city authorities in India should also take onthe responsibility of augmenting and managing their public transport systems. Thiscan be done in collaboration with the state governments, particularly the proposedpublic transport division.

To start with, the state governments should empower city municipal authoritiesto address urban transportation functions, particularly public transportationsystems. Setting up of an ‘urban transport cell’ in the ULB with the assistance ofstate governments should then be done. This unit could include transport planners,engineers, and experts in the field. With help from the public transport divisionin the state government, the urban development authorities, research institutions,academia, and external consultants, this cell should perform the followingfunctions.

P Preparing an integrated land use and transportation and transport infrastructureplan for the city• Deciding on an optimal modal mix for the city;• Assessing public transport demand;• Identification of routes, nodes, and so on;• Data collection.

P Facilitating provision of public transport• entering into contracts with private operators• bringing in the necessary technological improvements

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• measuring performance of public transport regularly and publishing results• regulating informal/paratransit modes

P Reassessing the present not-so-favourable taxation structure for urban buses togetherP Initiating and carrying out capacity building exercisesP Coordinating between service providers and infrastructure providers

In order to do this, a mechanism on the lines of a UMTA (Unified MetropolitanTransport Authority) as also recommended by the NUTP, should be set up. Such amodel has already been attempted in Chennai, where it a UMTA was constituted in1995 as an agency to coordinate between the various departments involved in transportand traffic, but the agency lacked statutory powers. The new legislation passed in 2007provides the much needed financial and statutory teeth for the body to take uptransport development works without going through interdepartmental tangles. 16

Similarly, the Bangalore Metropolitan Land Transport Authority has been constitutedas a unified mass transport agency, coordinating between various stakeholders, fromcivic agencies to transport corporations. Andhra Pradesh also recently introduced abill in the legislative assembly to establish a unified metropolitan transport authority.

Under the UMTA setup, a committee having the required legal backing (say,through a bill passed in the state legislative assembly) could be set up to address allurban-transport-related concerns of the city. The recommendations/instructions ofthis committee should be honoured by all concerned departments. This committeecould be chaired by the municipal commissioner of the city and have officials fromrelevant departments like urban development, roads, police, pollution control,transport, and finance, and transportation experts as its members, as suggested in theAndhra Pradesh Bill to provide for the establishment of a metropolitan developmentauthority for Hyderabad. Collectively, this committee should have a deep understandingof the city’s transportation needs and systems, the problems, and potential solutions.This would provide the much required forum for coordination, planning, as well asmonitoring public transport in the city. The broad functions of this committee wouldbe the following.P To oversee implementation of various traffic and transportation measures

undertaken by various agencies in the cityP To ensure coordination amongst various agencies and departments, consolidate, and

integrate their action plans, and facilitate better information sharing betweenagencies

P To ensure that effective public transport systems are in place for the cityP To monitor key traffic- and transportation-related projects in the cityP To deliberate and recommend effective transportation strategies for the city

16 http://timesofindia.indiatimes.com/Chennai/Integration_is_new_mobility_mantra_/articleshow/3410211.cms

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P To approve all traffic- and transportation-related projects/proposals from any agencyfor the city

This committee should meet at least once a month. It is also important to notethat though such a model has been recommended for million-plus cities by the NUTP,as an effective mechanism for the much needed coordination that urban transportdemands, this should be encouraged in smaller cities as well. Besides having an urbantransport cell at the ULB level, smaller cities should also move gradually towards sucha mechanism.

P Carrying out regular consultation meetings with stakeholdersConsultation with stakeholders is a very important aspect that has traditionally beenoverlooked in our cities, for all sectors. The urban transport cell should ensure thatfrequent stakeholder consultations are held. Working together with various stakeholderswould provide useful and substantial knowledge. It is likely that problems like currentlegal and organizational bottlenecks, organizational capacities, availability of adequatepublic transport vehicles, financial constraints, lack of political will and courage,resistance from trade unions, and so on, may emerge during discussions. It is importantthat these problems are recognized and factored into the improvement strategies. Attimes, ideal and amicable discussions may not happen due to mistrust and pastmisunderstandings and this may lead to unpleasant disruptions in the consultationmeetings or some stakeholders may refuse to turn up or participate. In this case, thecell should continue its efforts to interact with these stakeholders, till enough trusthas been established. Important stakeholders in such a consultation process wouldinclude the following.

• Municipality• Local development authority• Regional transport authority• Public works department• Bus operators• Elected representatives of the city• Citizens’ group representatives• User groups (including slum dwellers, women, students, and physically

challenges)• Informal transport associations• Operations personnel—drivers, conductors, others• Financing entities• Traffic authorities and police• State transport department• JNNURM representatives (where applicable)

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• State pollution control board• Research institutes/academia

More details on the consultation process have been discussed in the chapter ongovernance in this report.

Goals and indicators for sustainable public transport services

Setting sustainability goals and indicators to measure these goals would provide citiesthe necessary guiding framework to progressively improve their public transportsystems. These goals and indicators could be common for all cities; and stategovernments, together with city authorities, should use these as the basis forperformance monitoring.

In the earlier sections, parameters to assess the sustainability of public transportin terms of adequacy and efficiency in cities were identified. These wereP AvailabilityP AccessibilityP Transport performance related to customer convenienceP Operations and management

The following indicators and norms have been derived from a number of sources,which include review of literature, good practices from countries like Singapore andthe United Kingdom, available urban bus toolkits, and discussions with experts. TheMoUD is also currently in the process of finalizing indicators to assess public transportperformance in consultation with academia and research institutes, including TERI,and it is expected that once finalized, the MoUD will ask the JNNURM cities toestablish baselines on these and work towards improving performance on each basedon a set of norms. This will be a good starting point for cities to assess their currentstatus and also allow for inter-city comparisons.

Though there can be a number of indicators that could be used to evaluate publictransport systems in a city at various levels, the following goals and indicators suggestedby TERI form a non-exhaustive list and have been recommended keeping in mindthe reality of Indian cities. It is hoped that by addressing these basic indicators first,Indian cities would begin to head on the path of achieving sustainable transportsystems.

Goals for improving availability of public transport

The first and foremost goal has to be related to making public transport available tothe citizens. This could be measured by the following indicators.P Number of buses per 1000 people Typically this value should lie between 0.5 and 1.2

per 1000 population. Given the stark contrasts existing between Indian cities today

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in terms of public transport availability, cities having virtually no public transportsystems should progressively target reaching the 0.5 target in the next 2–3 years.The other larger cities already having bus systems in place should move towardsthe higher target. It is important to note here that this indicator also depends on anumber of factors like the city’s modal share, capacity of buses, their utilizations,and average length of bus journeys undertaken in the city, and therefore, each cityshould assess its own requirement.

P Percentage modal share of bus trips This is measured by dividing the number ofpassenger trips by bus over a given period (usually an average weekday) by the totalnumber of passenger trips in the urban area over the same period. This informationis best obtained from the results of a household survey carried out as part of anurban transport study. There is no one norm that is established for this indicator;however, countries demonstrating sustainable transportation systems have targeteda modal share of at least 70%–80% for public transportation trips in their cities.Indian cities had an average of 60% as public transport trip share, which has fallento 45% in many cities. Cities could target arresting this decline and set a target ofincreasing the public transport share say by 5% each year from now till 2015.

Goals for improving accessibility

Improving accessibility is a continuation to the first goal and seeks to make the publictransport system physically accessible for all categories of transport users. Access wouldinclude two aspects—provision of proper and complete road networks and publictransport networks in a city ensuring sufficient coverage, and, ensuring convenientphysical access to public transport services by the users. The following is one indicatorto assess accessibility.P Percentage of population in an area/zone having access to public transport services within

500 metres of walking distance The higher this is, the better it would be. Anythingabove 80%–85% for this is considered to be good accessibility.17 All cities shouldmove towards this target by ensuring that the public transport systems serve wellall areas of the city.

Goals for improving transport performance for customer convenience

Even if public transport is available and easily accessible, many would not use it at allor use it occasionally due to various factors. This particular goal should include actionsthat are necessary from the viewpoint of the public transport user. Indicators tomeasure this goal would include the following.a Reduced congestion/overcrowding in busesb Reduced incidents of eve-teasing, thefts, assaults, and so on, in buses

17 Based on discussion with public transport experts.

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c Reduced bus accidentsd Reduced passenger complaintse Facilities for the physically challenged on public transport vehicles and stationsf Well maintained and clean buses, bus stand premises, and polite crew behaviourg Easy-to-understand and quick access to information regarding bus schedules, routes,

delays, and so on, for public transport servicesh Online information on movement of busesi 80% of all services running at a headway of not more than 15 minutes during

weekday peak periods.j Reduced waiting time in peak hours, from five to seven minutesk Provision of services (main and feeder) so that all households in a city are within a

maximum of 30 minutes of travel time by public transport from key trip generatorsand attractors like schools, hospitals, employment centres, colleges, and shopping areas

Under this goal, indicators a–d are qualitative, and it is difficult to set norms forthese. Therefore, cities should target a progressive reduction in each of these indicatorsand target zero levels for each as the ultimate goal. This will involve putting in placeproper enforcement measures and passenger-friendly facilities. For indicators e–h citiesshould progressively aim at achieving a 100% target for coverage. Some of these couldeven be made of part of the permit conditionalities in the permits issued to operators.Indicators i-k can be measured quantitatively and cities, together with the serviceoperators, should target achieving the prescribed targets. Indicator k in particularmeasures the attractiveness of public transport in terms of travel time. Cities shouldplan their services, scheduling, and networks so that a reasonable journey time (say30–40 minutes in larger cities and (10–20 minutes in smaller cities) should be possible.This may lead to actions like creation of dedicated bus lanes, development of goodservices, and so on, in the city.

Goals for improving operations and managementThis is a crucial aspect as it will help operators cut down on losses and ensure financialsustainability. Indicators to measure this goal would include the following.P Frequency and effectiveness of training and capacity building modules organized

for various levels of staffP Reduced operational costP Reduced breakdown rateP Increased fare collection efficiencyP Reduced employee absenteeismP Reduced staff per vehicleP Increased fuel efficiencyP Improved fleet utilization

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Many of these indicators (and more) are already being monitored by the STUs(state transport undertakings) and reported by the ASRTU. Though there are no normsor targets that exist for these, this aspect could be looked into together by urbantransport cell and the operators. This aspect has been discussed in greater detail inthe section detailing out actions to achieve these goals.

Once with the help of data collection, baselines on selected parameters have beenestablished, cities should gradually move towards progressive improvements. All theseparameters should be monitored over time and across operators. The results onperformance of each parameter should be published annually and this will give citizensan opportunity to get more involved in the process. Such a process will enable thecity to assess its own status of public transport service delivery and also enable inter-city comparison. Central or state governments should set norms with respect to eachof the identified indicator and cities should measure public transport performance overa period of time with respect to those norms. Cities having similar characteristicsshould have the same norms; however, classifying cities by category and defining andsetting those norms is a fairly extensive exercise that is outside the scope of this study.

Ensuring some of these parameters as part of the stage carriage permitconditionality should also be considered. Currently, the permits focus on routes andfares. However, Section 72 (2) xi of the Motor Vehicles Act, 1988, makes allowancefor attaching a conditionality in the permits, which sets specified standards of comfortand cleanliness in the vehicles. These should be explored and drafting of new modelsof the stage carriage permits that address the goals listed above should be attemptedjointly by the state and city governments and the service provider.

Developing an overall mobility and transport infrastructure plan for the city

One of the biggest challenges associated with urban transport in our cities today isthe lack of proper planning and understanding of a city’s mobility needs.

Based on the information collected under various heads discussed earlier, the cityshould draw up a comprehensive mobility plan, which should reflect the goals ofsustainable transportation, be public-friendly and non-motorized transport, and fit intothe overall city development plan. This plan should follow from the state urbantransport policy objectives listed earlier and should broadly spell out the following.P Present and projected travel demands and patternsP Existing modal split and desired modes for the futureP Desired framework for overall transport development and management in the city,

including intermodal integration

Subsequent to this, an infrastructure development plan should be made, which shouldspell out the infrastructure requirements for various user categories, especially the non-motorized mode users, pedestrians, and public transport users. The plan should

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elaborate on aspects like location of bus stops, pedestrian crossings, bicycle lanes,footpaths, bus shelters, lighting requirements at bus stops, parking spaces, intermodalchanges, and basic amenities for users at terminals.

This is a very critical stage, as it lays the foundation for all other actions, andinfrastructure once built will be there for a long time to come. Therefore, the cityauthorities together with subject experts should prepare these plans and discuss themin detail with all the stakeholders to agree jointly on the decisions taken.

Specific recommendations for achieving the goals

The following are suggested as action points for Indian cities to get started with theprocess of improving public transport services.

Fleet augmentation with private sector participation

There is a need to augment the bus fleets in most cities in the country; however, thereare issues of increased costs of operations as compared to revenue inflows for public-owned and run buses, which have been discussed in the previous section of this chapter.Another issue with fleet augmentation has been the lack of availability of funds owingto the unsatisfactory financial performance of bus services and, therefore, the precariousfinancial position of government agencies operating these services.

The most suitable option for fleet augmentation by cities is the acquisition andoperation of buses by private operators. The private sector would bring efficiency intothe system and also good management practices in operations. However, it should bekept in mind that public transport services are an economic service and are for societalwelfare, whereas the key interest of the private party is to make profit. Therefore, theagreement should be so drafted that objectives of both the parties are met.

Private sector participation in running bus services could be achieved in thefollowing ways.

In cities where buses are operated by government agencies Where a city agency or a state-owned company has the responsibility for providing bus services, they could hire busesfrom a private operator and compensate the owner on the basis of the distance run.The fare box collections go to the monopoly operator and the private party is insulatedfrom the vagaries of fares. In this case, the monopoly operator could put their ownconductor on the bus. A variation of this model was adopted in the kilometre schemeof the DTC (Delhi Transport Corporation) and the BMTC’s Hiring of Bus Scheme.

In cities where bus services are provided by a group of private operators In most Indiancities, there is no formal public transport system, and public transport services areprovided by a group of private operators having permits from the regional transportauthority. Since these private operators are individual entities, there is no coordination

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between them. In order to improve the quality of public transport operations, the cityauthorities could act as a facilitator and bring in all these services under one umbrella,which could be the urban transport cell. This has been demonstrated in Indore, wherethe SPV set up by the local bodies provides certain value-added services andcoordinates the operations of all private operators.

While entering into any kind of partnership with the private sector, what is mostcritical is that the terms and conditions of the agreement be drafted carefully. Thefares and routes should be determined by the city authorities and not left to the marketforces or high demand areas, respectively. In addition, conditionalities on safety andsecurity of passengers, polite behaviour of the crew, provision for the less abled onbuses and at bus shelters, loading levels in buses, and so on, should also be addressedin the agreement. Effects of rising inflation on fuel prices should also be factored intothe agreement, and the document should define clear and transparent processes foreach of these. Routes or areas could be allocated on basis of competitive bidding.

Each city, based on its existing situation, would have to evaluate these options andcome up with a suitable model for itself.

Again, it should be kept in mind that such an activity will require a vision and afairly early start. This could happen during the goal setting and stakeholder consultationstage. Implementing such a concept would require extensive data collection on variousavailable modes and their characteristics like demand, tariff structures, and networks.Aspects like revenue sharing arrangements between operators, principles of chargingfares, branding and advertising, harmonizing operational practices, and setting upspecial purpose companies to manage the integrated facilities like ticketing, customersupport, and information systems would have to be worked out.

Improving access

Addressing needs of the urban poor

As planners of public transport services in cities, city governments, together with theoperators, need to ensure that the services available cater to all categories of travellers,including children, the elderly, women, and the disabled. Special attention also needsto be paid to the travel needs and challenges of the urban poor. The urban poor usuallylive on the city outskirts and have to travel long distances for work and education.Being captive users of public transport, special attention should be given by the cityauthorities to ensure easy access for them to public transport. TERI’s past experienceof analysing the mobility needs of slum dwellers in Bangalore (TERI 2008) revealsthat the travel needs of the urban poor, who constitute a chunk of the public transportusers are not met by the existing public transport systems.

This can be ensured by providing bus routes reaching slum locations, locating busstops within convenient walking distances to minimize walking time, and frequent busservices to minimize waiting times. Aspects like good lighting at bus stops for safety

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of women should also be considered. Again, these issues would come up duringstakeholder consultations.

Using improved bus designs

The standard bus designs prominent in our country today make boarding and alightingslow, difficult, and unsafe, especially for the disabled and the elderly. Modern low-floor buses, having wide pneumatic doors and rear engines have now been introducedin a few Indian cities. Cities should consider going in for these buses.

Introducing differentiated services

Another key aspect from the accessibility point of view is the provision of differentiatedservices for all traveller categories. In order to increase the share of public transport,it is necessary to not only improve travel conditions for the captive riders who arecompletely dependent on public transport for their mobility needs (and are fastswitching to personal modes!), but also for personal vehicle users, who will only moveto public transport if it offers comfort and convenience, and reduces travel expenditure(in case of two wheelers, whose per km operating costs are comparable to the per kmcost of using public transport).

Improving operations

This would involve all aspects like facilities planning, traffic management, busscheduling, bus maintenance, revenue collection, and vehicle tracking systems. Thisis a multidisciplinary area, requiring the involvement of a number of agencies andplayers like planners, engineers, traffic police, and operators. The improvements in eachcity will depend on the systems and levels of coordination already in place. However,this aspect should be discussed in detail at the planning stages in the stakeholderdiscussions.

Better route planning

Route planning forms one of the most critical ingredients of a successful publictransport improvement strategy. It influences passenger demands, passengersatisfaction, operating costs and perception of non-users.

Transportation experts should decide whether a hub and spoke or grid or trunkand feeder systems is suitable for a city. Routes should be planned on a scientific basis,especially in cities having no formal bus systems, after discussions with all stakeholders.

Rational fare setting

Proper pricing is very important from the perspective of financial sustainability of theoperator and his business and usability of the services by travellers, especially the low-income users and captive riders who depend on public transport for their daily

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livelihood. It is, therefore, important that fares be set on a scientific basis, rather thanan ad hoc basis. Currently, fares are prescribed by the state governments under theMotor Vehicles Act on a stage basis. Striking a balance between optimally subsidizingfares and adjusting true operator costs should be attempted. This will be an iterativeprocess and will require several cycles of review and analysis before coming to a finalconclusion. Options like smart cards and passes should be encouraged.

Use of modern technologies

Today, there are a number of technologies available to enhance public transportperformance, and cities can explore the options of using these. Some of thesetechnologies include the following.P Integrated ticketing and fare collection systems—numerous sales outlets, ticketing

machines, multiple purchasing optionsP Information systems—telephone lines, web pages, online journey planners, audio-

visual equipment at stations, and so onP Real time GPS (global positioning system) in public transport vehicles to track

vehicles, and warn about delays and breakdownsP Modern buses with low floors, pneumatic double door, and rear engine. According

to the JNNURM’s scheme to fund buses, for million-plus cities, at least 20% ofthe buses procured should be low-floor buses and for all JNNURM cities, the busesprocured should conform to the Urban Bus Specifications18 issued by the MoUD,which is a good starting point for a city to improve its quality of public transportvehicles.

Besides finding funding to acquire some of these technologies, cities would alsoneed the requisite human and technical capacities to operate these technologies, andthe current systems would have to be re-engineered to make them adapt to these newsystems.

Intermodal integration

At present, various forms of public transport and IPT modes run without any propercoordination amongst them. This results in overlapping routes, underutilized routes,and at times leaving out certain areas. The advantage of setting up a UMTA kind ofmodel for cities is that it can ensure such integration.

Integrated services provide travellers an attractive and seamless travel experience,in which the public transport services in the city are seen as one combined network.

Integration can be achieved at the following levels.P Routes and services

18 http://urbanindia.nic.in/moud/programme/ut/urbanbus_spec.pdf

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P NetworkP Terminals and buildingsP Tariffs and ticketingP Information and marketingP Customer support

Improving internal efficiencies, monitoring performance, and setting benchmarks

A key function of the city authorities should be the regular monitoring of publictransport operations in the city.

If bus operators operate at low efficiency or productivity levels (which they usuallydo), their profitability will be low and it will be difficult for them to raise finances foraugmenting fleet or bringing in the necessary improvements, and the overall servicelevel to the customers will be unsatisfactory. This will result in decreased patronage,and therefore, inadequate financial returns and reduced efficiencies, and the viciouscircle will go on.

Experts in the area suggest that to begin with, templates for tracking and measuringinternal efficiency performance parameters should be developed by the urban transportcell for all operators, and it should assist the operators (especially individual operators,who lack the experience and training in this area) in to get in the habit of self-efficiencyreview.19 These internal efficiency parameters include the following.P Km-operated/vehicle ownedP Passenger carried per staff memberP Staff/vehicle ownedP Revenue/vehicle ownedP Revenue/passenger km or revenue/passenger tripP Cost/passenger km or cost/passenger tripP Fuel consumption/km

In addition to this, having a well-defined maintenance regime for vehicles isimportant. Currently, there are no norms or laws that operators are bound by to adhereto maintenance schedules, and maintenance of vehicles is usually left to their discretion.This greatly affects the operational performance of vehicles. Operators should carryout maintenance practices for each vehicle on a daily basis and monitor operationalperformance as per the technical maintenance schedules provided by the vehiclemanufacturers and ensure regularity and accountability for the same.20

TERI also suggests that cities could also monitor some external and customer-oriented parameters discussed earlier under the transport performance related goals.All these parameters should be monitored over time and across operators. Such a

19 Based on discussions with urban transportation expert P S Kharola20 Based on discussions with ASRTU

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process will enable the city to assess its own status of public transport service deliveryand also enable inter-city comparison. Research institutes like TERI could aid citygovernments in carrying out the performance monitoring exercises by either providingtechnical support or auditing the whole process as a third party. Once with the helpof data collection, baselines on selected parameters have been established, cities shouldgradually move towards benchmarking and setting standards and targets, whereverpossible, in consultation with stakeholders. The results on the performance of eachparameter should be published annually and this will give citizens an opportunity toget more involved in the process.

Priority to public transport

Having adequate number of public transport vehicles and facilities is notgood enough if they are stuck in traffic jams and move at speeds slower than mostother vehicles on the road. Improved availability of and access to public transport needsto be accompanied by supporting measures that give priority to public transport aswell. These measures include the creation of ‘bus-only’ areas, ban on parking of vehicleson roads, and signal priority eventually moving to dedicated bus lanes.

Becoming ‘customer oriented’

Cities also need to ensure that public transport operators in the city adopt acustomer-friendly attitude in their services. To take care of the users’ needs,operators can do simple things like exhibit polite behaviour towards passengers,keep buses clean, not indulge in rash driving, not cause inconvenience topassengers, and ensure security of passengers, especially females, by being morevigilant, which are both inexpensive and effective.

The operational aspects that need attention in order to make public transportservices more customer-oriented include the following.P Establishing a citizen’s consultative forum and involving citizens in the performance

monitoring operationsP Setting up a mechanism for redressal of commuter’s grievancesP Putting in place effective passenger information systems, displaying maps, routes,

schedules on bus stops and on the Internet, having customer information helplinefacilities, and so on

P Enunciating an enforceable citizen’s charter—this charter would describe the rightsof passengers and outline commitments to ensure that public transport services meetthe needs of all members of the community. Such a charter should be advertisedand put up in all prominent places by the city. Some of the items that the chartercould include are the following.• A commitment to notify customers whenever service disruptions occur as early as

possible via public address systems on bus stations or via SMS, e-mail or phone

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• A prominent page with key public transport contacts• Commitment to regularly display posters on board vehicles and at stations on

monthly performance results• Commitment to respond to customer feedback within seven days of receipt• A concise procedure on how customers are able to provide feedback to the

transport organizations

Meanwhile, citizens, too, can play an active role in the following ways.P Putting pressure on local bodies to improve quality of public transportP Bringing to light violations of operators and driversP Taking an active role in public transport planning and monitoringP Participating in surveys and consultation meetingsP Demanding published results on performance of public transport

Details on mechanisms and instruments to carry out citizen participation exerciseshave been discussed in the governance section of this report.

Supporting demand management strategies

Improving the availability and quality of public transport services alone is notenough. Unless city authorities put in place measures to curb the usage of personalvehicles, and force people to move towards using public transport, the desiredobjectives of making transport sustainable cannot be met. The following are someof the restraint management measures that cities should explore.P Congestion chargingP Prohibition of entry of personal vehicles in certain areas during peak hours; creation

of bus- and walk-only zonesP Increase parking fee; heavy penalty for vehicles parked on roads outside housesP Ban on road parkingP Staggered working hoursP Use of e-governance, distance working, and learning

8. Identifying financing options

States and cities would need resources to implement the various action points discussedearlier. Some sources for funding could include the following.P Levies like congestion charges, parking charges, cess on property tax levied by

city for road improvement, levy of betterment tax on areas around whichinfrastructure is improved.

P Revenues from traffic offencesP Fuel tax and surcharges

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P Additional registration fee for two wheelers and four wheelers, annual renewal feeon driving licence and vehicle registration

P Advertising, sponsorsP Financial institutions, private sector participation, JNNURM, allocations made by

state or union government for city development

In addition, the state and national governments should find innovative ways to tapfunding for public transport improvements in cities.

Strengthening human resource development and capacity building

Experts21 notes that the public transport industry in India is and would continue tobe a labour-intensive industry, and therefore, a prerequisite to all reforms andimprovements is a motivated, competent and disciplined workforce. Therefore, HRD(human resource development) in public transport services would require betterpersonnel policies, including training, recruitment, incentives, employees’ grievanceredressal mechanisms, and sensitization to customer needs. It would also be useful toencourage recognized qualifications such as certificate of professional competence, andthis can be made a condition in the service contracts and operating permits that keypersonnel must be so qualified

In order to operationalize each of the action points discussed earlier, capacitybuilding at various levels would be a prerequisite. TERI in the past carried out trainingneeds assessment for all personnel working in departments directly or indirectlyimpacting urban transport activities in a city and a huge need to understand issuesrelating to urban transport, particularly public transport, was felt.

City authorities, as efficient managers, should outsource some of the specializedactivities to the private sector or research/academic institutes. However, even in orderto manage such a system, an effort to sensitize, educate and train officials of not onlycity authorities, but also other stakeholders like state transport departments, busoperators and staff, and even users, would have to be made. The following are someof the broad areas where capacity building should be carried out (which also formpart of the action plan).P Planning: Increasing public transport shares, estimating demand for public transport,

planning for dedicated public transport systems, modal integration, and providingaccess

P Operations: improving efficiencies, route allocation, tariff rationalization, ticketingand revenue management, customer treatment, and models for private sectorinvolvement

P Data collection methods and computer-based data analysis methods

21 Extracted from discussions with P S Kharola

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P Performance monitoring and development of monitoring frameworksP Modern business and management practicesP Financing options for public transportP Use of modern technologiesP Tackling labour and staff issuesP National and international case studies and best practices: introduction of vehicle

restraint measures, traffic management measures, integrated land use, and transitplanning

Given above is a list of actions a city can consider taking in order to improve theavailability, accessibility, viability and quality of public transport services. As mentionedearlier, each city would have to take stock of its existing situation and select andprioritize actions accordingly.

Preserving the share of public transport trips in the small and medium towns

From the viewpoint of ensuring sustainable development of urban areas, it is veryimportant that the small and medium sized towns in the country do not follow thesame path and repeat the same mistakes, as made by the larger metropolises. It isimportant that the share of public transport be preserved and maintained in these cities.For this, the small and medium towns could take the following actions.P Establish an urban transport cell in the municipality and move gradually towards a

UMTA type mechanism for ensuring coordination.P All the individual operators should register with the urban transport cell.P Travel needs and patterns of these cities need to be established using secondary or

primary sources.P Since many of these cities do not have formal public transport systems but privately

operated modes like mini buses, shared taxi, autorickshaws, and vans, the transportperformance parameters described for buses earlier could be used for analysing theperformance of these modes as well. Eventually, a separate category of performanceindicators should be worked out for this category of modes.

P Where autorickshaw and taxi services run on a shared basis, a separate category ofpermits could be created for them by the state government, which could be theequivalent of the stage carriage permits for public buses. These would lay downroutes, fares, and so on for these IPT modes and make them a part of the formalpublic transport delivery system.

P In cases where autorickshaw and taxi services are not used on a shared basis butused personally, aspects like fare structures, ease of hailing these vehicles, safety,and the driver’s behaviour towards passengers could be taken as the evaluationparameters. Permits for these modes could be modified to factor in all these concerns.

P Where IPT modes compete with buses, authorities should find ways to integrate

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existing IPT modes like rickshaws, jeeps, mini buses, and so on, with the buses andpossibly use them as feeders to buses. This can be done once sufficient number ofbuses to serve the main routes has been provided.

P Citizens groups should be formed to put pressure on authorities for providingadequate public transport services.

P Putting in place vehicle usage restraint measures to discourage people from usingand shifting personal modes, and at the same time, enhancing the quality and imageof public transport should be done on a priority basis in order to prevent peoplefrom being forced to shift to personal two-wheelers and cars due to inadequatepublic transport services.

Data requirement

It is worth noting that urban transport in general and public transport in particularin India is challenged by the lack of availability of actual data, especially data on usertravel patterns, preferences and user perception of public transport. Therefore,implementing solutions and operationalizing these parameters would require a fairamount of primary and secondary data collection, including customer satisfactionsurveys, which would provide valuable information on the needs of travellers andshortcomings in the existing system, thereby giving meaningful inputs to policy-makers,planners, operators, and service providers.

Detailed information regarding various aspects would be needed. These includethe following.

P The city• Demographic profile• Socio-economic profile• Key trip generators and attractors• Any existing vision/policy

P Transport users• Travel needs, preferences, patterns, trip lengths, modal splits, and so on

P Institutional and organizational aspects• Listing of the relevant laws• Listing of all organizations directly or indirectly involved• Regulations/guidelines governing issuance of permits for operating public

transport vehicles (including privately operated public transport modes) and towhat extent the address the identified sustainability concerns

• Process of issuance of permits• The bye-laws/regulations controlling movement of vehicles in the city• Stipulations of labour legislations affecting transportation industry

P Transport infrastructure

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• Public transport facilities like bus stops and parking bays for auto rickshaws• Facilities for pedestrians and cyclists• Roads and their carrying capacities• Modal interchange points

P Existing modes• Number and type of vehicles, capacity, ridership, average speeds, age of fleet,

and so on• Internal efficiency parameters like earnings per km, cost per km, profitability,

km travelled per vehicle per day, actual km travelled versus the scheduled km,and so on

• Commuters’ perception on adequacy, reliability, accessibility, image, affordability,punctuality, safety, security, crew behaviour, comfort and cleanliness aspects,amount spent monthly on travel by each individual as a percentage of his/herincome

The urban transport cell should collect the above-mentioned data for the city inorder to establish a baseline and, together with the help of the relevant experts, usethis information in planning the required improvement strategies. While some of theinformation may already exist from sources like the census, state transportundertakings, planning authorities, and road departments, some will have to becollected secondary sources or conducting surveys (household, on-board, parking lot,bus stop surveys) and key person interviews.

Conclusion

The ideas and suggestions regarding urban transport sustainability raised in this reportare not new. Some of these have been brought up at several fora by a number of experts,and to some extent, states/cities have tried to implement some of them. Efforts havebeen made (for example, in BMTC) to address some of these concerns, with someencouraging results. However, given the complexities associated with various aspectsof public transport in our country today, be it labour issues, operations management,financial viability or the legal framework governing public transport services in cities,many concerns still remain unresolved. This speaks of the huge amount of work thatstill remains to be done in the area of public transport service improvements in Indiancities.

Due to limitation of time and resources, it was impossible to go deep into each ofcomplex issues as each would require extensive research and data, which would againvary from city to city. What this report does is suggest a new paradigm of handlingpublic transport in Indian cities, and short- and long-term action points for cities andstate governments to consider.

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For a city to start working on these action points, it would have to collectinformation that forms the basis of each action and focus closely on the sequencingof actions so that the enabling actions (for example, necessary changes in legal andorganizational frameworks) are guaranteed before the other actions needing them areimplemented. Maintaining a consultative process, involving all stakeholders andcultivating trust and confidence in them, especially the public, regarding the objectivesof such an exercise, would be one of the most important steps.

Finally, the role that a city authority or urban local body needs to play in order toensure sustainable transportation in the city cannot be emphasized enough. Europeanand a few Latin American cities have demonstrated world class transportation systems,owing to the initiatives taken by city officials like mayors, who had the requisite willpower and legal authority to bring about a radical change in the system. Bogota andLondon stand out as examples of ‘sustainable cities’ merely because of the interventionsmade by the city authorities in revamping the public transportation systems in thesecities. Unless our governments also start thinking on these lines and give publictransport and non-motorized transport the attention and resources it deserves, it willbe difficult to make our urban areas sustainable. City authorities should be given therequisite powers and training to become sound managers of public transport services.

ReferencesARTA (Auckland Regional Transport Authority). 2007Sustainable Transport Plan 2006–16New Zealand: ARTA

CIRT (Central Institute of Road Transport). 2005State Transport Undertakings; profile and performance 2003/04Pune: CIRT

ECMT (European Conference of Ministers of Transportation). 2004Assessment and decision-making for sustainable transportDetails available at <www.oecd.org>, last accessed on 12 March 2009

Friberg L. 2000Innovative solutions for public transport; Curitiba, BrazilIn Sustainable Development International, 4th ednBrighton: ICG Publishing, pp.153–156

Hidalgo D. 2005Integrated Policies for Sustainable Transportation: the Bogotá experienceWashington D C: World Bank[Paper presented at the Workshop on Sustainable Transport and Air Quality]

Kharola P S and Tiwari G. 2008Urban public transport systems: are the taxation policies congenial for their survival andgrowth?Economic & Political Weekly XLIII (41)

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Litman and Burwell. 2006Issues in sustainable transportationInternational Journal of Global Environmental Issues, 6 (4): 331–347[www.vtpi.org/sus_iss.pdf]

MOST (Moving on Sustainable Transportation). 1999Moving on Sustainable TransportationCanada: Transport Canada[www.tc.gc.ca/envaffairs/most]

MoUD (Ministry of Urban Development). 2006National Urban Transport PolicyNew Delhi: MoUD, Government of India

MoUD (Ministry of Urban Development). 2007Working Group on Urban Transport, including Mass Rapid Transport System for EleventhFive Year Plan (2007–12)New Delhi: MoUD

MoUD (Ministry of Urban Development).2008Handbook for Standardized Service Delivery Benchmarks in context of PerformanceManagement of Urban ServicesNew Delhi: MoUD

MoUD (Ministry of Urban Development) and WSA (Wilbur Smith Associates). 2008Study on Traffic and Transportation Policies and Strategies in Urban Areas in India: finalreport, May 2008New Delhi: MoUD and WSA Pvt. Ltd

OECD (Organization for Economic Cooperation and Development) and BLFUW (Federal Ministryfor Agriculture, Forestry, Environment and Water Management). 1998Futures, Strategies, and Best PracticesDetails available at <http://www.oecd.org/dataoecd/15/29/2388785.pdf>, last accessed on 28 February2009Synthesis Report prepared for the OECD International Conference held in Vienna, Austria, October 2000

Padam S. 1990Bus Transport in India: the structure, management and performance of Road TransportCorporationDelhi: Ajanta Publications

Runyan C. 2003Bogotá designs transportation for people, not carsWRI Features 1 (1)

TERI (The Energy and Resources Institute). 2002Restructuring Options for Urban Public Transport in IndiaNew Delhi: TERI[Report prepared for the Department of Transport, Land, and the Regions, UK]

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TERI (The Energy and Resources Institute). 2007Training needs assessment and operational plan for training in the area of urban transportplanningNew Delhi: TERI

TERI (The Energy and Resources Institute). 2008Mobility for development – a case study of BangaloreNew Delhi: TERI

WBCSD (World Business Council for Sustainable Development). 2001Mobility 2001 – world mobility at the end of the twentieth century and its sustainability reportSwitzerland: WBCSD

BibliographyNottingham City Council and Nottingham County Council. 2006Local Transport Plan for Greater Nottingham 2006/7 to 2010/11; Greater Nottingham BusStrategyDetails available at <http://www.nottinghamcity.gov.uk/cdt_greater_nottingham_bus_stratgey.pdf>, lastaccessed on 7 November 2008

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PowerCHAPTER

Literature review

Electricity is an essential component of energy for ensuring the economic developmentof a country. It is a critical infrastructure on which the socio-economic developmentof any society depends. It is an essential requirement for all facets of our life and hasbeen recognized as a basic human need, as it affects our day-to-day life. Electricityconsumption is considered an index of development. Thus, the development of thepower sector in a sustainable way is critical for the socio-economic development ofthe city.

Defining sustainability in the power sector

The definition of sustainability in the power sector varies from nation to nationdepending on the challenges faced by them and the way they may be intending tohandle the problem. For example, in Santa Monica, a city considered a pioneer in thesustainability of power, the City Task Force defined sustainability as ensuring ‘thatthe city continues to meet its needs – environmental, economic, and social – withoutcompromising the ability of future generation to do the same.’1

Similarly, Japan defines a sustainable society as ‘a low-carbon society’, ‘a soundmaterial-cycle society’ and ‘a society in harmony with nature’.2

While the focus in Japan is on increasing the green energy mix in the total powerportfolio of the city, Santa Monica in addition to this, focuses on the complete cycleof energy generation and use in a manner such that resource depletion does not occur.

However, it is important to note that the power situation in India is different fromthat in the developed nations. While the above objective holds good for Indian citiesas well, we also have a highly challenging requirement of ensuring access to electricityto all by 2012 (as envisaged in National Electricity Policy) by laying emphasis on theenhancement of the generation capacity (centralized, captive, and distributed) and

1 http://www.smgov.net/2 http://www.env.go.jp/en/focus/070606.html

4

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extension/ improvement in distribution system, and reduction in losses, other nationsfocus more on the generation of green power and to encourage energy efficiency, assupply is able to meet the demand of electricity.

Thus, in order to understand challenges, issues, and means to ensure sustainabilityin the power sector in India, a detailed literature review was carried out. The followingsection covers the best national and international practices in the sector.

International review

Santa Monica, US

Focus: improvement in energy efficiency and generation from renewable sources

Location: Los Angeles County, California, USAGovernment responsible: Santa Monica City Council

The Santa Monica Sustainable City Program was an initiative taken up by the SantaMonica City Council in 1994 after it realized the ill effects of increased populationgrowth, high level of consumption, and impact of growing economic needs on thenatural environment, community, and quality of life of the city’s people. Theprogramme was based on the recommendations of 1992 City Task Force, set up ‘toensure that the city continued to meet its needs – environmental, economic, and social– without compromising the ability of future generation to do the same.’

The following specific aspects of the resource conservation goals (of all the goalareas laid down by the city council, resource area is the nearest to power distribution),deal with the power sector.P Energy useP Renewable energyP GHG (greenhouse gas) emissionP Ecological footprints

The programme interventions particularly related to these aspects are discussed below.

Energy use3

Aim To reduce the consumption

Process The energy use indicator was used to track historical energy use, as abenchmark for both energy conservation, and for improving the energy-efficiencymeasures, use of renewable energy, and GHG emissions.4

3 http://www.smgov.net/epd/scpr/ResourceConservation/RC3_EnergyUse.htm4 http://www.smgov.net/epd/scpr/ResourceConservation/RC3_EnergyUse.htm

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Energy use data was compiled for each year (by sector, like residential, commercial,and so on) and was compared across the year, across the city, and also against setlocal yearly target and national set targets to judge the performance. Steps were thentaken to find the cause of the trend. Then, corrective measures were taken to addressthe problems that had cropped up.

Impact The exercise helped the city government to reduce its per capita energy useover the years

Renewable energy5

Aim ‘To increase the use of renewable and clean energy sources, thereby reducingthe city’s total amount of GHG emissions and consumption of fossil fuels.’

Process The share of renewable energy in the energy mix of the city was monitored.The power distribution utility was mandated to increase the share of green mix intheir overall power portfolio. Studies were carried out on the scope of using renewableenergy. One such study concluded that the city had the potential to become a netexporter of clean energy in 15–20 years if it fully utilized the available renewable energysource.6

Impact The contribution of the green energy in the total power mix of the cityincreased substantially. The city also witnessed an increase in the generation ofelectricity using solar power.

Ecological footprints7

Aim Effort to reduce the individual’s ecological footprint.

Process Though the city did not lay emphasis on ecological footprint reduction (aswas indicated by the fact that the city did not have any target set with respect to thefootprint), the reduction in the footprint was desirable from the point of view of thecity and so the ecological footprint was calculated.

Impact The ecological footprint data shows a decreasing trend over the decade due tothe following.P Reductions in the use of natural gas and dieselP Increased recycling ratesP The city’s procurement of geothermal energy

5 http://www.smgov.net/epd/scpr/ResourceConservation/RC4_RenewableEnergy.htm6 http://www.smgov.net/citycouncil/agendas/2006/20060314/s2006031408-B.htm7 http://www.smgov.net/epd/scpr/ResourceConservation/RC6_EcologicalFootprint.htm

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To get a better knowledge of the process involved in the planning, transmissionand demand estimation of power in the city of Santa Monica; interaction was carriedout with the city council authorities. The interaction and the study of the suggestedlinks gave a wider view of the above-mentioned aspects of power. The understandingdeveloped by the interaction has been summarized in the following section.

Power planning and demand estimation

Electricity planning is primarily accomplished by investor-owned utilities underregulatory guidance/ approval of the Public Utilities Commission, a state (California)agency. Transmission planning, on the other hand, is done under the regulatoryguidance/ approval of the FERC (Federal Energy Regulatory Commission), since mostelectricity transmission is interstate and is coordinated regionally by various councils(for example, Western Systems Coordinating Council, now the Western ElectricityCoordinating Council). Utilities conduct load research studies to forecast their loadgrowth and periodically undertake ‘rate cases’ analysis (that is, assessment of the costper unit of power to be charged from the consumers) where they justify the futureexpenses of their utility based on these forecasts and the best ways to meet theseforecast loads. They often conduct their own end-use research studies as part of thisplanning process.

Municipal utilities, on the other hand, are usually beholden to their respective city’sutility boards, and prepare plans for generation of additional power or power purchasesbased on predictions of growth or changes in demand. This additional power generationor power purchase is done in a way so that maximum power generation/ purchasecomes from greener sources. The city council takes consideration of the source of powerbefore purchasing it because of its commitment to maximize the share of power fromthe greener source in the total power portfolio of the company.

Various other programmes have been initiated to promote the use of green power.One such programme is Solar Santa Monica, an initiative that is in accordance withexisting state initiatives for promoting solar energy use in the city. These initiativesare also supported by rebates given by the utilities on purchase of energy-efficientappliances and products.

The city of Santa Monica has also explored the possibility of alternative powerarrangements for the residents of the city. Some of these arrangements are CCA(customer choice aggregation), PPA (power purchase agreements), andmunicipalization. But these alternative power arrangements have not found sympathywith consumers as cost-effective options for power purchase. For example, in the CCA,the city council purchases power from the SSE (Southern California Edison) and thenchannellizes this power to the consumers who have contracted the city council. Thearrangement was developed to save the consumer from a possible steep price hike inpower cost.

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The energy use indicators, as discussed earlier, track the historical energy use inthe city. The city staff track the bills of approximately 500 electric meters and40 natural gas meters, and estimates the rest of the city’s use with the help of an annualsolicitation of bill and related data from SCE (Southern California Edison). The SCE isan investor-owned utility in electricity production. The service territory of the SCEincludes Santa Monica, besides other cities.

The SCE, with the city public works department, looks after the street lighting inthe city of Santa Monica. (The city public works department is part of the city utilityboard). Initially, the city lighting was looked after by the SCE, and the city councilwas paying for the power consumed in street lighting on per lamp basis. But the cityis systematically replacing Edison-owned street lighting with metered circuits so as topay for the actual use of electricity.

Another important aspect of power distribution is through underground power lines.This activity is jointly worked on in a long-term planned retrofit of priority areasbetween the city (public works) and the SCE.

Energy efficiency

A number of agencies at all levels, that is, the federal government level, stategovernment level and the city authority level, promote efficiency in power use. Theefficiency increment is considered to be a better method to meet the peak powerdemand than the generation of more power.

Federal government level The federal government has developed an ‘Energy Star’rating programme that identifies efficient appliances for all retail points of purchase.Both the US DoE (Department of Energy) and the US EPA (EnvironmentalProtection Agency) are trying to increase the efficiency by promoting the use ofenergy-efficient appliances.

State government level The state’s California Energy Commission reports on statewideefficiency and develops state-specific standards that exceed the national standards. Thestate has introduced these standards with legislative act. These code and standards,better known as ‘Title-24’, are periodically updated.

City authority level Utilities forecast power use for the city. They make this forecastonly after taking in account the power that may be saved due to the energy conservationand efficiency efforts that city has undertaken. Recently, utilities have been directedby the Public Utilities Commission to lay more emphasis on energy-efficiency effortsand inclusion of maximum power from renewable sources, while considering variousalternatives to meet the peak power demands. This approach of focusing on efficiencyincrement programmes (like programmes for the replacement of energy-inefficient

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filament light bulbs with energy-efficient CFL bulbs) than on procurement of morepower to meet the peak demand is a new initiative for the city of Santa Monica.

Tokyo, Japan

Focus: reduction in carbon emissions through renewable-based generationLocation: Tokyo, JapanGovernment responsible: city authority

Japan has taken up the task of becoming a leading environmentally conscious nationin the 21st century. Being a signatory to the Kyoto Protocol, the country is proactivelytaking steps to reduce the country’s overall GHG emissions and transform into asustainable society.

In line with the government plans at the state level, the local authorities have takenup the task of improving the environment by helping the stakeholders concerned todecrease the GHG emissions and by encouraging them to focus more on the 3Rs(reduce, reuse, and recycle). For example, the TMG (Tokyo Metropolitan Government)has taken up a programme named TRES (Tokyo Renewable Energy Strategy) to shiftthe focus of energy companies from fossil fuel use to a higher use of renewable energy.

Tokyo Renewable Energy Strategy8

The electricity market in Japan was partly liberalized in April 2005. Since then, allconsumers who have been provided with high-tension electricity connection are ableto choose the electricity company.

AimP To allow electricity consumers to choose the most environment-conscious

companies, thereby driving competition for renewably sourced energyP To make available 20% renewable energy supply for the city by 2020

ProcessThe companies were required to release their plans and reports on yearly basis,including the following.P The CO2 emission factors (that is, the GHG emission per kWh [kilowatt-hour] of

electricity)P The reduction target for the CO2 emission factorP The actual status of renewable energy mix in their power supply portfolioP Future schedules for the introduction of renewable energy

8 http://www.metro.tokyo.jp/ENGLISH/

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Non-participantIf a company failed to announce the findings of their reports they were formally askedto do so by the TMG. If the company still did not submit their plan details, then theTMG announced their name to the public, as a non-participant.

Methods to reduce emission

Electricity companies were supposed to reduce their CO2 emission factors by way ofthe following.

Internal efficiencies

P Improving efficiency of their existing power generation unitsP Switching to cleaner fuels

Supply efficiencies

P Generating and purchasing more renewable energy, such as biomass, hydraulicpower, and wind power

P Each company has different plans to increase renewable energy and renewableresources

Achievement

As a result, in the first year of operation of this strategy, six out of nine PPS had reducedtheir emissions by a total of 680 000 tonnes of CO2. This is approximately a 1%reduction in the total CO2 emissions in Tokyo – based on the same electricityconsumption in 2005 as 2004 (84.9 billion kWh). It is expected that by 2020, 20% ofall energy for the city may come from renewable sources.

Thailand

Focus: Efficient Fluorescent Lamp Programme9

EGAT, the electricity utility in Thailand, designed a programme to implement acomplete national switch from T12 FTLs (fluorescent tube lamps) with the moreenergy-efficient T-8 lamps.

Even though the T8s could directly replace T-12 lamps without requiring a changein the ballast or fixture, cost the same as T-12, and gave the same amount of light, theT-12 dominated the market because of incorrect consumer perception. It was perceivedthat T8s gave off less light, could not fit in T12 fixtures, failed prematurely, broke moreeasily, or were more prone to burnout at their extremities.

9 Singh and Mulholland (2000)

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Hence, to change public perception, EGAT (Electricity Generating Authority ofThailand) went on to convince all the five local manufacturers (Philips, Toshiba, AsiaLamp, Saffi, and Daichi) and the one importer (Osram) to switch their productionfrom T12 to T8 lamps. In exchange, EGAT drew on its financial resources andcorporate strength to change the public’s perception of T8s. The MoU (memorandumof understanding) was signed between the Thai prime minister, the chairman of EGAT,and the presidents of each of the five manufacturers, in which the manufacturerscommitted to retool their production from T12s to T8s within two years.

In return, EGAT promised to support the manufacturers through an $8 millionpublic awareness campaign. Advertisements ran in newspapers, radio and televisionchannels. To give consumers a chance to see the new lamps, demonstrations took placearound the country, including retrofits in city halls and schools. Lectures, seminars,and schoolchildren marches drew the public’s attention to the retrofits. The programmeresulted in a complete transformation of the fluorescent tube market in Thailand withintwo years and significant amount of energy savings were realized.

USA

Focus: promoting efficiency in the refrigerators segment10

In 1990, PG&E (Pacific Gas & Electric), an electricity utility in the US and the NRDC(Natural Resources Defence Council), an NGO, used an innovative market approachto improve efficiency in the refrigerators segment. A group of 24 utilities with smallsupport from a government agency (EPA) announced a competition called ‘GoldenCarrot’, whereby the refrigerator manufacturer that built the most efficient CFC-freerefrigerator would win a prize worth $30 million. The prize money helped the winnersell the super-efficient refrigerator at no extra cost for higher efficiency. The prize moneyand publicity helped the winner and also made sure that other manufacturers reducedcost and improved efficiency to compete with the winner.

Learnings from international initiatives

P In order to meet the additional requirements of the city, it is essential to emphasizeenergy conservation rather than investing huge capital on the establishment of powergeneration plants.

P Involvement of all stakeholders is essential for the promotion of energy-efficiencymeasures in the country.

P In order to decrease the carbon footprint of the city, it is essential to improve themix of green energy in the total power portfolio of the city.

10 Prayas (2005)

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National review

Jamshedpur

Focus: reduction in AT&C losses11

Location: Jamshedpur (India)Government responsible: JSEB (Jharkhand State Electricity Board)

In the city of Jamshedpur, Tata Steel supplied electricity in its licensed area, while theJSEB supplied in areas outside the supply area of Tata Steel. The power supply of thecity was met from three sources: (1) Tata Steel, (2) DVC, (Damodar ValleyCorporation), and (3) captive generation by few companies.

In the year 2001, JSEB decided to hand over five pocket areas12 located adjacent to thesupply area of Tata Steel to Tata Steel for power distribution and signed an MoU withTata Steel. These pocket areas were handed over to Tata Steel in August 2002.

Situation of power supply in the area before the takeover

Before 2001, the electricity supply situation in the area was not satisfactory. The supplywas marked with large voltage dips and frequent/ long power cuts. The area was markedby high T&D (transmission and distribution) losses, low collection efficiency, andwas causing a loss of approximately Rs 17 lakh (1.7 million)/ month to the JSEB. Thepower situation in the area before 2001 is summarized in Table1.

Steps taken by Tata Steel after takeover

Survey by Tata Steel Immediately after takeover, Tata Steel carried out a detailed surveyof the consumer profile and conditions of the distribution system in the area. It coveredinformation on category of consumers, condition of meters, connected loads, dwellingarea, condition of wiring, status of payment of security deposit, and bills.

Appointment of a managing agency Tata Steel decided to outsource part of thedistribution functions to a private agency on a management contract basis. In thebidding process that followed, Mascot Electromech Pvt. Ltd (Mascot) emerged as thesuccessful bidder. Mascot was asked to set up office in a designated area and performa list of specified functions, which included the following.P Administration of billingP Meter readingP Bill collectionP Maintenance inspection and monitoring of distribution system

11 TERI (2004a)12 The five pocket areas comprise Dev Nagar, Sidhghora, Patel Nagar, C – Town and Kasidih localities of the city.

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P Administration of new connectionsP Load management

The following actions were taken by Tata Steel and Mascot after takeover.P Disconnection of illegal connections and payment defaulters after giving due noticeP Regularizing connections (where the faults had been corrected) and providing new

connectionsP Replacement of all mechanical meters by electronic ones (starting with the faulty

ones) and proper sealingP Regular raids to check unauthorized tapping and pilferageP Replacement of damaged conductors and unsafe catenary wires and improvements

in the earthing systemP Regular monitoring of loading of transformersP Provision of five new substations of 6.6 kV (kilovolt)/415 V (volt) with 1000 kVA

(kilovolt-ampere) transformer and drawing of new feeders

Table 1 Situation of power supply in area before takeover (2000/ 01)

Consumer base P 1100

Electricity demand P 6.5 MU (in 2001/ 02)

Load P 80% domestic and 20% commercial

Quality of power

Voltage dips P 90 V–150 V

Power cuts P 4–12 hrs per day

Complaints P 190 per month

System loss (efficiency) P 62.85%

Status of distribution network P Catenary wires were defective

Transmission lines P Neutral and earth wires were missing in many places

Transformers P Almost all of them were overloaded

P High breakdown rate

Metres P Many meters were defective / tampered

Approx loss (in Rs) P 17 lakh/month

Tariff

Domestic P Rs 1.52 per unit

Industrial P Rs 3.5 per unit

MU – million units; V – volt

Source TERI (2004a)

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P Underground cabling in a few sectionsP Daily performance reports to track power breakdowns, shutdowns, raids, and bill

collection by areaP Adoption of a monthly billing cycle, including timely delivery and collectionP Underground cabling (8 km of 6.6 kV and 30 km of 415 kV)P Laying of insulated conductor for 15–20 km

Achievements/impact

The power situation of the area improved considerably after Tata Steel took over theelectricity supply in the area. Improvement was seen on all fronts of the distributionbusiness. With the takeover, Mascot focused on augmenting the distribution systemof the area. Besides, several steps were taken to check various technical and non-technical losses. Mascot focused on anti-theft measures, improvement in metering byreplacing the old meters with electronic meters, the provision of new substation,drawing of new feeders, undergrounding the cables and preventing overloading oftransformers so as to reduce the losses.

Efficiency

These measures helped in the substantial reduction of electricity losses in the area.Within six months, these measures helped reduce the losses by 40%. The T&Dloss now stands at 8.5% in the area. Efforts were also made to decrease thecommercial losses in the area. Drive was carried to replace the old defective meterswith new electronic meters and to make new consumers in the area. Thus, thenumber of the legal consumers increased from 1100 in the year 2000/01 to 2458in 2004. This helped in decreasing the commercial losses of the area. The focuson bill collection from the consumer paid dividend within few months. Today, thebill collection efficiency in the area is about 98%.

Quality of supply

The quality of supply improved substantially after the takeover. The voltage levelimproved to 220V; power cuts in the area reduced from 4–12 hours per day to3–4 hours per month and within two years, the number of complaints reduced from190 per month to 50 per month.

It is interesting to note that the commercial losses in the area have decreasedsubstantially even though the electricity tariff has increased after the takeover. Thetariff has increased from Rs 1.52 per unit for the domestic consumers and Rs 3.5 perunit for industrial customers to Rs 2.25 per unit and Rs 4.5 per units respectively.

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Bhiwandi13

Focus: use of input-based revenue franchisee for reduction in AT&C losses14

Bhiwandi circle is part of Bhiwandi taluka of Thane district. The circle is situated48 km north-east of Mumbai and covers a geographical area of 721 km2. The Bhiwandicircle is a major cotton textile hub of India consisting of about 6 lakh power looms(almost 33% of all India). In Bhiwandi, power looms account for 60% of the totalpower consumption.

Power supply status of Bhiwandi in 2005/06

The MSEB (Maharastra State Electricity Board) took the initiative of theimplementation of the franchisee in Bhiwandi circle. For this purpose, EoI (expressionof interest) was invited in March 2005 and on the basis of the evaluation of the bidsreceived, TPL (Torrent Power Ltd) was selected as the DF (distribution franchisee).

TPL commenced operations from 26 January 2007. It was agreed that DF shallhave the rights of a distribution licensee with regard to authorization under Section126 (Assessment), 135 (Theft of Electricity), 152 (Compounding of Offence) of theElectricity Act 2003.

Soon after the takeover, TPL found that the supply of electricity was erratic andpeople were not satisfied with the power supply (Table 2). The long power cuts resultedin heavy losses to the power looms, which formed the backbone of the economy ofBhiwandi. Thus, TPL decided to first focus on the augmentation of the distributionnetwork and proper supply of electricity to the consumers.

Steps taken by Torrent

P Replacement of over 900 DTs and revamping of the remaining DTsP Replacement of 95 000 energy meters (around 54% of existing meter replaced) and

issue/ installation of 25 000 new meters.P Replacement of 350 km OH (overhead) line conductor and revamping of LT (low

tension) line network associated with the DTs (for 475 DTs)P Installation of additional 100 MVA (megavolt-ampere) of distribution transformation

capacity with the installation of new DT’s.P Addition of 29 new feeders for the distribution of electricity.P Establishment of 24-hour call centre and 24-hour fault attendance centre.P More than 85% of billing on meter reading basisP Introduction of easy-to-understand customer-friendly bill

13 Source: Presentation of Mr Manish Shrivastava during Training of Trainers programme, organized by TERI, Indore,14–16 June 2008

14 In case of input-based franchisee, the input electricity into the area managed by the franchisee is measured bythe utility and the targets set for the revenue collection are based on the collections made as a percentage of theinput electricity supplied to the consumers.

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P Replacement of failed DTs within minimum time (normally less than 24 hours)and fast handling of consumer complaints

Major accomplishments within 15 months after takeover

The reduction target for franchise given by MSEDCL (Maharashtra State ElectricityDistribution Company Limited) to Torrent wasP 5% reduction in T& D (transmission and distribution) losses and 4% improvement

in collection efficiency every year for first three years from effective dateP 3% reduction in T& D losses and 3% improvement in collection efficiency every

year up to the expiry date

Thus, it can be seen that accomplishment by Torrent is much more than what wasmandated (Table 3).

Table 2 The baseline commercial data for the year 2005/06

Parameters 2005/06 (base year )

Consumer mix:

Power loom 60%

Others (including household) 40%

Demand (annual) 2400 MU

Distribution losses 44.50%

Collection efficiency 78.50%

AT&C losses 58%

DT failure rate 40%

22 kV feeders 46 nos

HT overhead lines 712 km

LT overhead lines 956 km

22 kV / 0.433 kV transformer 2084 nos

Transmission lines P Catenary wires were defective

P Neutral & earth wire were missing

Transformers P Almost all of them were overloaded

P High breakdown rate

Meters Many meters were defective / tampered

MU – million units; HT – high tension; AT&C – aggregate technical and commercial; kV – kilovolt; DT – distribution

transformer; LT– low transmission

Source Presentation of Mr Manish Shrivastava during Training of Trainers programme organized by TERI, Indore,

14–16 June 2008

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Interlinkages: Surat Municipal Corporation

Focus: energy efficiency and energy conservation initiatives15

In 1996, the SMC (Surat Municipal Corporation) was supplying around 200 MLD(million litres per day) of water to the entire Surat city. With the increase in thepopulation of Surat from 4.93 lakh in 1991 to 24.33 lakh in 2001, there has beenconsiderable increase in the city’s water demand. In order to meet the increaseddemand, the SMC has constructed various water works. From 1996/97 to 2003/04,water demand had more than doubled to 479 MLD from 199 MLD and so had theenergy bill of the corporation. The energy bill increased to Rs 26.40 crore in 2003/04from Rs 8.29 crore in 1996/97. The details of the electricity bill are mentioned inTable 4.

15 Interactions with officials from Surat Municipal Corporation

Table 4 Electricity bills related to water supply

Average water Electricity bill for water Electricity bill for other Electricity bill of % of water

Financial year supply (MLD) supply (Rs in crore) services (Rs in crore) SMC(Rs in crore) supply

1996/97 199 8.29 4.37 12.66 65.48%

2003/04 479 26.40 16.78 43.18 61.14%

% rise 140.70% 218.46% 283.98% 241.07% ——-

MLD – million litres per day; SMC – Surat Municipal Corporation

Table 3 Achievements of Torrent Power in Bhiwandi

Parameters 2005/06 (base year) 2007/08

Distribution losses 44.5 % 27%

AT&C losses 58% 36%

Collection efficiency 78% 88%

DT failure rate 40% 12%

25 000 new connections issued

22 kV feeders 46 nos 75 nos

HT overhead lines 712 km Replacement of 350 km OH line conductor

22 kV / 0.433 kV transformer 2084 nos Over 900 DTs replaced

Revamping of all balance DTs

AT&C – aggregate technical and commercial; HT – high tension; kV – kilovolt; DT – distribution transformer; OH –

overhead

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In order to tackle the increasing energy bills, the SMC realized the importance ofenergy conservation in the water supply system and other services, and created adedicated EE (Energy Efficiency) Cell in the year 2001. The EE Cell identified fourmajor areas of energy consumption.1 Raw/ filtered water collection from intake wells/ radial wells2 Filtration of raw water, including chlorination3 Filtered water transmission4 Filtered water distribution

After careful examination of the above areas, it was found that scope of saving liesin filtered water transmission and thus, the SMC dedicated its efforts in re-engineeringthe routes. It also undertook certain other energy-saving measures such as the following.P Critical examination of prevailing contract demand and average power factor.P In-house energy auditing for performance measurement of pumps and motorsP Installation of new energy-efficient pump sets

Due to re-engineering of filtered water transmission routes and with other energysaving measures discussed above, the SMC saved approximately Rs 350.23 lakh/ annum(79.40 lakh kWh/ annum) and overall specific energy consumption reduced to 316.95kWh/ ML (2006/07) from earlier 343.29 kWh/ ML (2003/04).

For its commendable efforts and significant energy savings, the SMC has beenawarded with the 1st National Urban Water Awards, 2008.

Learnings from the national initiatives

P Better management can improve the energy supply situation in a fast and efficientmanner.

P Use of IT (information technology) may significantly improve the power deliverysystem.

P Consumers are willing to pay more if the quality of supply and service is improved.P Areas with high losses provide good potential to utilities to improve their revenues.P Dedicated EE Cell to promote energy-efficiency measures and disseminate

information should be created, as energy conservation offers significant potentialfor energy savings for ULBs (urban local bodies).

Identifying the sustainability parameters for power

Based on the literature review of good practices and measures adopted to enabledelivery of electricity services in urban areas more sustainable, the following definitionfor a sustainable power system in an Indian city was arrived at.

‘An electricity supply system that ensures adequate, reliable, and affordableelectricity to all citizens with focus on energy efficiency and utilization of locally

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available renewable and non-polluting resources wherever feasible and also capableof catering to the future growth of the city.’

Based on the above definition, the set of parameters important for a city to considerwhile planning and delivering of electricity services in a sustainable manner are accessto electricity; energy efficiency, which includes both the supply as well as the demandside measures; environmental aspect or use of renewable sources of energy; quality ofsupply and quality of services. These are explained below.

Access to electricity

In order to make cities sustainable it is important to ensure access to electricity to allthe sections of the society especially the urban poor in an equitable manner. In orderto ensure access, it is crucial that the planning procedures and approaches adoptedby the service providers with respect to demand estimation and expansion ofdistribution system be fairly accurate.

Energy efficiency

Capacity addition remains a viable option of bridging the ever-increasing demandsupply gap; it, however, requires large capital investments and is a time-consumingprocess. Promotion of efficiency in the delivery of services, on the other hand, byreducing losses and DSM (demand side management) acts as one of the least costoptions for meeting the demand for electricity. This includes the following.P Reduction in T&D or AT&C losses (including theft of electricity) in the cityP Awareness with regard to energy-efficient appliances and incentives for the

promotion of same

Impact on the environment

Further, to meet the increasing demand of the city, there should be a well-balancedmix of supply sources. Since electricity generation through the use of fossil fuel leadsto the emission of GHG and other local pollutants, it is required to use more of locallyavailable renewable sources of energy for electricity generation.

Quality of supply and quality of services

It can be defined as the end result of utilities planning, designing of network, operationand service management, which determine the degree of satisfaction of the consumer.It constitutes one of the most important performance parameters of the utility, whichbesides consumer satisfaction has a direct bearing on the safety and performance ofplant and equipment. This parameter includes the following.P Planned interruptions, that is, load sheddingP Unplanned interruptions such as breaking of lines

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P Voltage profileP Consumer redressal mechanisms

It is noteworthy to mention that in India, electricity is a subject in the ConcurrentList, that is, both the union and the state governments can formulate policies and lawson the subject. In case of a conflict arising due to laws laid down by the centralgovernment and the state government on the same aspect of electricity sector, therelated law enacted by the central government will prevail over the state law (unlessand until the state law received the approval of the president). Distribution of electricityin particular comes under the purview of the states. The legislative policies and actsgoverning the power sector in India assign no particular roles, responsibilities andauthority to the ULBs with regard to electricity services except the provision of streetlighting, the only component in electricity services under their purview.

Nevertheless, the importance of ULBs in facilitating improvement of delivery ofelectricity services cannot be undermined. They can provide an important supportingrole to the utility through certain set of activities that can aid in achieving sustainabilityin the sector. This report also explores the role that a local body can play in the lightof the above identified parameters.

Analysing the existing situation

This chapter details the current status of the electricity service with regard to eachidentified parameter and also looks at the impediments that barricade some of thesustainability measures from getting implemented.


The NEP (National Electricity Policy) has recognized electricity as a basic human needby the GoI (Government of India). It is a key element for the country’s sustainabledevelopment. However, at present, the Indian power sector is unable to bridge thedemand-supply gap with demand outpacing the supply of electricity. In FY 2007/08,the all-India constrained energy and peak shortages in the country were 9.9% and16.6% respectively.16 As per the 17th EPS (Electrical Power Survey) of the CEA(Central Electricity Authority), the electricity demand is likely to increase by 39.7%in 2011/12 as compared to 2006/07, by another 43.7% in 2016/17 as compared to2011/12 and by yet another 37.5% in 2021/22 as compared to 2016/017. The aboveprojections are made assuming that the government is able to meet its objective of100% village electrification and to provide power to all by 2012.

Rapid industrialization and urbanization of Indian cities have led to the increasein the electricity demand. To meet these shortages, costly options such as installation

16 Source: www.cea.nic.in

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of generator sets and inverters are being adopted by the industries, commercialestablishments, as well as individuals. Generator sets are not only a major source ofnoise and air pollution, which causes adverse health effects, but also create nuisance.17

Besides shortages, access to electricity depends on many issues such as the planningprocedures and approaches adopted by the service providers with respect to demandestimation and expansion of the distribution system. This is explained below.

Electricity demand estimation and distribution system expansion planning

In order to effectively meet the electricity requirements of the city, it is required thatutilities must ensure adequate electricity in order to ensure access or availability ofpower and must tie up for the additional power generation or supply sources as perthe requirements. Further, to meet or to supply this additional requirement, it isrequired that the utility must strengthen its distribution network by extending thelength of the power distribution line and/ or by establishing new substations, and soon, and forecast the future electricity requirement of the city so that planning for theextension of the distribution network can be accomplished accordingly. Thus, there isa need for realistic assessment of demand for electricity in the city.

One of the ways adopted by Torrent Power Ltd (Surat) for providing quick accessto electricity is by trying to create and develop ‘ready-to-serve networks’. This impliesthat it would lay down the network even before the application for provision ofelectricity services is received by the utility. Thus, when consumers apply for theelectricity services, it is made available without delay.

In order to forecast demand effectively and to ensure access, it is also requiredthat there must be some kind of coordination between the service providers and city-level authorities/ local bodies. The role of ULBs for providing access is explained below.

Role of urban local bodies in the provision of access to electricity

ULBs plays an important role in providing access to electricity services by appropriateprovision of street lights in the city and apprising city expansion plan to the utility.

Street lights

The provision of street lights is under the purview of local bodies and they must ensurethe installation of the same in all the areas of the city, including slums.

City development plans

CDPs (city development plans) or TP (town planning) documents are prepared bythe concerned local authorities of the cities and they describe the expansion anddevelopment plan for the city. Once it is approved by the concerned department or

17 Source: http://www.cpcb.nic.in/upload/Publications/Publication_393_sec10_6.pdf, last accessed on 27 October 2008

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government, it is placed in the public domain, which can be accessed and utilized byany one, including utilities. However, some of the drawbacks with the developmentplan of ULBs are that first, the power distribution utilities are not involved in theprocess of the formulation of TP document and second, sometimes it takes a longertime for approval of the TP document from the concerned authority at the state level,making it obsolete. This affects the realistic assessment of the future demand by theutilities.

It is also crucial to ensure equitable access of electricity to all sections of the society,especially the urban poor. With regard to the access to electricity, the Electricity Act03 (Section 43) specifies the duty of the distribution utility to supply electricity onrequest and failure to supply can attract penalty.18

With increasing urbanization in the cities, provision of access to basic infrastructureservices such as electricity, especially to the urban poor, has become a formidable task.

About 40% of the world’s poor living in urban areas lack access to the basic urbaninfrastructure services, including electricity.

As, per 2001 census, 44% of the Indian households had no access to electricity.Further, it differed from state to state and urban to rural. Some states like Punjab,Haryana and Gujarat had relatively high levels of electrification (more than 70%households had access). However, some others, like Bihar, Orissa and Uttar Pradesh,are far behind, with more than 70% of the households yet to be connected to theelectricity grid. In case of rural and urban households, 56.5% of rural householdshad no access to electricity whereas the number in urban areas stood at 12.4%(Kanitkar and Sreekumar 2008).

Lack of provision of reliable, adequate and quality services has led to increase inthe development of informal markets. To ensure equitable access, in the context ofIndian cities, it is required that the service providers must forecast or estimate thedemand requirements effectively and plan the distribution system accordingly. This isdiscussed in detail in the subsequent sections.

18 It states ‘(1) Every distribution licensee, shall, on an application by the owner or occupier of any premises, givesupply of electricity to such premises, within one month after receipt of the application requiring such supply:Provided that where such supply requires extension of distribution mains, or commissioning of new substations,the distribution licensee shall supply the electricity to such premises immediately after such extension orcommissioning or within such period as may be specified by the Appropriate Commission. Provided further thatin case of a village or hamlet or area wherein no provision for supply of electricity exists, the AppropriateCommission may extend the said period as it may consider necessary for electrification of such village or hamletor area. (2) It shall be the duty of every distribution licensee to provide, if required, electric plant or electric linefor giving electric supply to the premises specified in subsection (1): Provided that no person shall be entitled todemand, or to continue to receive, from a licensee a supply of electricity for any premises having a separate supplyunless he has agreed with the licensee to pay to him such price as determined by the Appropriate Commission.It further states that ‘(3) If a distribution licensee fails to supply the electricity within the period specified insubsection (1), he shall be liable to a penalty which may extend to one thousand rupees for each day of default.’

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Access to slums/JJ clusters/ equity issue

It has been noticed that slum upgradation efforts such as improvements in water supplyand sanitation receive a higher priority than electricity, as there are alternatives schemessuch as Kutir Jyoti for BPL (below poverty line) families19 and illegal hooking availablein case of electricity. Most of the electricity used in slums is being used under thegarb of BPL families/illegal hooking being provided by illegal service providers.

Apart from these, there are various barriers, due to which electricity services arenot being provided. Some of these are as follows.P Due to the low usage and limited ability to pay, utilities do not find it profitable to

provide services to these areas. Also, the utilities consider them as high-loss areasdue to default in payment or theft/ pilferage in these areas. Further, the limitedability to pay is due to the nature of their earning, which makes it difficult for themto pay on a continuous basis.

P Right-of-way issues for distribution system equipment and infrastructure, as theseareas are generally unauthorized colonies, increase the cost of supply to these areas.

P Non-payment for the electricity services and associated costs to recover the moneyact a major barrier in the slum electrification process.

P Land tenure issues also create problems for the utility in supplying power to slums.P Irregular and long billing cycles also sometimes lead to default in payment, as the

urban poor might not be able to pay a large accumulated bill.

In order to bridge the gap of low ability to pay and the cost of supply by the utilitiesmost state governments have undertaken efforts by subsidizing the tariffs for this sectionof the society. However, due to the lack of proper targeting of these subsidies, therehas been a significant increase in the subsidy bill of the state government, without thebenefit actually reaching the targeted group.

Thus, it is required to create and implement innovative mechanisms that not onlyensure equity but also the commerciality aspect in supply. Some of the initiativesundertaken by utilities are mentioned below.

Some initiatives by utilities in India

The following are some of the measures adopted by utilities in India.P Slum electrification programme by Torrent Power Ltd20 In Surat, TPL has identified

unorganized areas (commonly known as slums) with unauthorized connections andis undertaking massive drives for slum electrification by releasing authorizedconnections. It provides connection to the people in slums on the receipt of affidavitfrom their side that the temporary connection may be taken away by the company,

19 This is the scheme for people in rural areas who are below the poverty line for providing single point connectionwith consumption not exceeding 30 units.

20 Source: Discussions with TPL officials

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if required, and the bills of the temporary connection cannot be used as a residentialproof document for any purpose. Thus, with this innovative idea, the company isable to provide power to the un-notified slums of the city without compromisingon security issues, including land tenure issue.

P Method used by NDPL21 NDPL (North Delhi Power Ltd) provides free lifeinsurance policy of Rs 1 lakh for its registered consumers residing in JJ (jhuggi jhopri)colonies and to those who take metered connection from the NDPL. Theseconsumers are also entitled to avail the tariff subsidy announced by the Governmentof NCT of Delhi for metered consumers. There are over 100 JJ clusters in the NDPLarea with a consumer base of 30 000. The salient features and conditions of lifeinsurance scheme include the following.• Insurance cover of Rs 1 lakh for metered consumers only – a flat cover of

Rs 100 000 – under the OYRGTA (one-year renewable group term assurance)plan without DAB (double accident benefit) or any other rider, to each of theregistered consumers residing in JJ clusters in the NDPL distribution network.

• If any consumer is found indulging in meter tampering or damaging the meter,then the policy stands lapsed during the proceedings and till the theft penalty ispaid by the consumer.

Creating such a scheme benefits not only the utility, as consumers in these clusterstake authorized connections and are encouraged to pay timely payments, but also theconsumers, as they receive quality services in line with others.

Energy efficiency

Promotion of efficiency in the delivery of services by reducing losses and promotionof efficiency in usage/ DSM act as one of the least-cost options for meeting the demandfor electricity. This is explained below.

AT&C losses

The losses incurred in power distribution are mainly on two accounts—technical andnon-technical losses. In India, both these losses are clubbed together and are termedAT&C losses. The AT&C (aggregate technical and commercial) loss of the statedistribution utilities is very high, with all India AT&C losses averaging around 34%.22

The technical loss, in terms of energy, is the difference of energy between the energyinput into the system and the energy supplied to the consumers over a period of time.There are several causes of the occurrence of this loss within the system

21 Source: Press release ‘NDPL offers free life insurance policy to consumers in JJ colonies’ insurance of Rs 1 lakhfor residents of JJ colonies in NDPL network, 10 June 2008

22 http://www.powermin.nic.in/

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P Losses due to the physical character of the equipment such as energy loss in thepower lines, transformers, and substation equipment.

P Loss due to rise in the quantity of the current flowing through the line/ feeder

The non-technical losses can be due to the following reasons.P Lack of metering at all levels of the electricity system, that is, at consumer level,

feeder and distribution transformer level.P Wrong meter reading due to fault in meters or due to human error and wrong

estimation of unmetered power supplyP Theft of electricity through illegal hooking (This has led to huge losses over the

years and is one of the major reasons for such high losses. To address the issue ofpower theft, the EA 03 [Sec 135-139] lays down strict guidelines with reference totheft of electricity and specifies that any person indulging in theft/stealing ofelectricity shall be punishable with imprisonment for a term, which may extend tothree years, or with fine or both.23 )• Wrong billing by the utility and non-recovery of the billed amount• Combined feeders for different types of load• Lack of consumer indexing and GIS (geographical information system) mapping

of assets

The high AT&C losses indicate that the utility was losing revenue that should havebeen realized. Thus, it is preferred that the AT&C losses should be as low as possible.However, it is not possible to reduce the AT&C losses to zero, as there has to be certaintechnical losses due to the inherent nature of the equipment installed for thedistribution of the electricity.

Thus, by reducing these losses, significant amount of savings can be achieved bothin terms of energy saving, which can be used to tackle increasing power demand, aswell as in terms of reduction of GHG emissions and local pollutants associated withpower generation.

Energy efficiency in usage of electricity

Efficient utilization of electricity by the consumers of electricity is very important formeeting the ever-growing electricity needs.

Promotion of energy efficiency and DSM is one of the least-cost options for meetingthe demand for electricity. DSM, besides being quick and viable option, reliably

23 Further to this, Section 153 and 154 assert that the state government may, for the purpose of speedy trial ofoffences referred to in Sections 135 to 139 (related to theft), by notification in the Official Gazette, constitute asmany special courts as may be necessary for such area or areas, as may be specified in the notification. It alsostates that notwithstanding anything contained in the Code of Criminal Procedure 1973, every offence punishableunder Sections 135 to 139 shall be tried only by the special court within whose jurisdiction such offence wascommitted.

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mitigates global climate change and environmental degradation associated withelectricity production and use.

As defined by the Ministry of Power,‘Demand side management is used to describe the actions of a utility, beyond the customer’s

meter, with the objective of altering the end-use of electricity – whether it be to increase demand,decrease it, shift it between high and low peak periods, or manage it when there are intermittentload demands – in the overall interests of reducing utility costs’.

In other words, DSM is the planning, implementation and monitoring of utility’sactivities designed to encourage customers to amend their electricity consumptionpatterns, both with respect to timing and level of electricity demand so as to help thecustomers to use electricity more efficiently. It aims to modify consumer behaviourand adoption of EETs (energy-efficient technologies) by these consumers (Jain, Gaba,and Srivastava 2007).

Institutional and policy overview

The Government of India institutionalized energy efficiency through the EnergyConservation Act, 2001. A statutory authority, the BEE (Bureau of Energy Efficiency)was formed under this Act. The aim of the BEE is to institutionalize energy efficiencyservices, in all sectors of the country in order to reduce energy intensity in the economy.

The Act laid down the provision for energy consumption standards for equipmentand appliances consuming, generating or transmitting energy; and enforcement of ascheme for appropriate labelling of such devices. Further, it mandated compulsoryenergy audit for the designated consumers and to take all measures necessary to createawareness and disseminate information for efficient use of energy and its conservation.Besides, this, the Electricity Act 2001 mandates the state government to constitutethe State Energy Conservation Fund for the promotion of efficient use of energy andits conservation within the state and each state government to designate any one agencyto coordinate, enforce, and regulate matters related to the implementation of the Actwithin the state.

In addition to this, the NEP (National Electricity Policy) emphasizes energyconservation measures to be adopted in all government buildings.

While many programmes and policies have been devised to promote energy-efficienttechnologies, rational use of electricity through these measures has remained anunderutilized strategy.24 As per the Integrated Energy Policy of Planning Commissionestimates, the electricity demand saving potential of DSM measures to about 15% ofthe total electricity demand. Though utility-driven DSM potential is yet to be estimated

24 India’s energy intensity per unit of gross domestic product is very high compared to the world average. It is 1.4times that of Asia, 3.7 times that of Japan, and 1.5 times that of the US, which indicates a very high level ofenergy savings (TERI 2007)

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on an aggregated basis at the national level, some of the sectoral potential assessed isgiven in Table 4.

The barriers to demand side measures are discussed in the subsequent section.

Barriers to DSM measures and EETs

There are many barriers and constraints that hinder the penetration of energy-efficienttechnologies. These are discussed below.

Non-availability of efficient end-use equipment and appliances in the market

Owing to a low demand in the market, manufacturers are reluctant to manufactureEE (energy efficient) appliances. Consumers, on the other hand, despite being awareof such options, are not able to obtain such equipment easily in the market. Limitedincentives have been there from the government to provide relaxation in excise dutyto manufacturers and incentives to consumers. All these factors result in a vicious cycle,which restrict penetration of EE appliances. Also, there is no check on manufactureand marketing of cheaper, inefficient products, which hinders the penetration ofefficient technologies.

High initial cost and uncertainties in savings

High upfront cost is one of the major barriers in the adoption of energy-efficientappliances, as consumers are uncertain about their savings and more importance isgiven by consumers to initial cost minimization, disregarding the more efficient options(which generally are more expensive). Most consumers are unaware of the fact thatthe high upfront cost of the appliances can be recovered in time much less than thelife of appliance, thereby resulting in net savings. Also, absence of an appropriatemechanism, which can help in bringing down the high upfront cost, act as one of themajor deterrent in adoption of EE appliances by the consumers.

Table 4 Sectoral energy efficiency potential

Sectoral intervention Potential energy savings

Agriculture* 60 bkWh

Municipalities 3.7 bkWh

Industry 98 bkWh

* BEE (Bureau of Energy Efficiency) estimates

b kWh – billion kilowatt-hour

Source Government interventions for financial risk mitigation of EE projects, presentation by Saurabh Kumar,

Secretary, BEE, Ministry of Power, National Demand Side Management Action Plan, Government of India

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Inefficient pricing regime

Irrational tariffs often result in wasteful usage of electricity, particularly by subsidizedconsumer categories. Low electricity prices act as a deterrent to the adoption of energy-efficient appliances by increasing the payback period of investments for certain EETs.

Insufficient information

Lack of information to the consumer about energy-efficient measures and appliancesavailable in the market is one of the major barriers. Even at times, shopkeepers arelargely ignorant about the consumption characteristics of the equipment sold by them.

Unreliability of equipment in local conditions

Energy-efficient equipment is generally sensitive to the quality of power supplied andmay not tolerate large deviations in voltage/frequency. Thus, it may not work up to itsexpected lifetime.

High maintenance costs and lack of local expertise in repairs

Certain EETs requires proper maintenance and there is lack of local expertise in repair.This also acts as a deterrent to the penetration of technology.

Also, the lack of initiatives from the distribution utilities to promote demand sidemeasures on a large scale acts as a major bottleneck in the penetration of the EETs.Though some initiatives have been undertaken by certain utilities, They need to bepromoted and replicated on a larger scale. These are mentioned in Table 5.

Role of urban local bodies

The municipality can play an important role in improving energy efficiency and byencouraging energy conservation within their municipal limits by providing efficientstreet lighting in the city, encouraging energy-efficiency measures in activities of themunicipalities like water pumping for the supply of water, and so on.

Public lighting

It is generally observed that the following parameters contribute to the low lightinglevels on streets.P Improper pole-to-pole spacingP Inadequate or excessive mounting heightP Improper angle of tiltP Interruptions due to roadside treesP Improper selection of lamps and fittingsP Poor maintenance of lamps (continuous dust accumulation, change in orientation,

and non- replacement of burned-out lamps)

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Impact on the environment

In India, coal-based electricity generation contributes about 55% of the total electricitygeneration and is expected to continue its dominance in the future. According to TERIestimates (TERI 2006), over the next 25 years, under the BAU (business-as-usual)scenario, the total generating capacity would increase to 795 GW (gigawatt) in 2031.The installed capacity as on 28 February 2009 is 147.71 GW.25 The share of coal inthe total electricity generation ranges from 45% to 60% over the entire period.However, such high dependence on coal for meeting the huge power demand has majorimplications in terms of global emissions (GHG emissions) and local emissions (SOx,NOx, and so on ). Besides these emissions, it also has certain adverse health impacts.To understand actual impact on the environment due to the use of fossil fuels, aseparate study is necessary and is out of the scope of this report.

Increased emphasis on the promotion of energy efficiency and use of renewableenergy is required to address the environmental concerns.

Since one unit of electricity saved at the consumer end translates into approximately2 units saved at the generation end, leading to saving of approximately 1.3 kg of coal

Table 5 DSM initiatives by some utilities

State Initiative

Karnataka BELP (BESCOM Energy Efficient Lighting Programme)

(BESCOM) Consumers were able to purchase CFLs from the market against utility coupons and

repay the cost through the utility bills. Consumers benefited on two accounts: first, the

CFL cost was lower due to bulk purchase by the utility and second, the consumers

could repay the cost through savings achieved by the use of CFLs. Reputed CFL

suppliers were selected through tenders and a one-year warranty was provided on the

appliance. The scheme resulted in 15% reduction in the cost of CFL over the market

price. The initiative covered 1.3 million residential consumers.

Gujarat (Ahmedabad Leasing of high-efficiency equipment

Electricity Company) High-efficiency fixtures like EE tubes and electronic ballast leased were under a

programme in collaboration with an ESCO. Utility involvement helped to build

consumer confidence in the quality of device, and the consumer could pay capital cost

over a long period through the savings achieved. The initial investment was done by

ESCO—hence it became a no-cost affair for the utility. In a span of two years, over

50 000 appliances were distributed under this programme.

EE — energy efficient; CFL – compact fluorescent lamp; BESCOM–Bangalore Electricity Supply Company;

ESCO– Energy Service Company

Source Prayas (2005)

25 http://www.powermin.nic.in

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and 1.1 kg of CO2, energy efficiency and demand side measures become very crucialfrom the environmental perspective. The current status, barriers and ways to achievingenergy efficiency have been discussed in the energy-efficiency parameter. It is imperativeto mention that the importance of renewable energy has also been emphasized in theElectricity Act 200326 , National Electricity Policy27 and National Tariff Policy.28

Current situation

Consequent to this, the GoI through the MNRE (Ministry of New and RenewableEnergy) and other public organizations, has been promoting renewable energy throughvarious fiscal incentives, tax holidays, and depreciation allowance. Also, many SERCshave prepared the renewable purchase obligations, which state the defined minimumquantum of renewable power to be purchased by the generation/ distribution companyduring a particular year. However, these RPOs (renewable purchase obligation) differbetween the states depending upon the potential of the generation from the renewablesource. (Renewable energy generation is highly location and environment specific).

While most SERCs have specified a single target for procurement of power fromrenewable energy technologies, some SERCs have specified separate technology specifictargets or have specified different purchase obligations for different licensees.

However, a more proactive approach is required to promote renewable energy asthe RPOs fixed by the regulatory commissions are relatively very low compared tothe electricity requirements. Due to the land and other constraints, most of thegeneration of electricity is being undertaken either on the outskirts of the cities oraway from the cities. This section focuses mainly on solar and waste-to-energytechnologies, wherein the role of urban local bodies becomes very essential. The nextsection discusses these interventions.

26 Section 61(h) of the EA 03 states ‘61: the appropriate commission, shall, subject to the provisions of this Act,specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following,namely, (h) the promotion of co-generation and generation of electricity from renewable sources of energy’; Section86 (1) (e) of the EA 03 states ‘to promote co-generation and generation of electricity through renewable sourcesof energy by providing suitable measures for connectivity with the grid and sale of electricity to any persons, andalso specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity inthe area of a distribution licensee.’

27 (Paragraph 5.2) states ‘such percentage for purchase of power from non-conventional sources should be madeapplicable for the tariffs to be determined by the SERCs at the earliest. Progressively, the share of electricity fromnon-conventional sources would need to be increased as prescribed by the SERCs. Such purchase by distributioncompanies shall be through competitive bidding process. Considering the fact that it will take some time beforenon-conventional technologies compete, in terms of cost, with conventional sources, the Commission maydetermine an appropriate differential in prices to promote these technologies.’

28 In addition to the EA 03 and the NEP, the NTP (6.4) states the following: ‘Non-conventional sources of energygeneration, including co-generation: (1) Pursuant to provisions of Section 86(1) (e) of the Act, the appropriatecommission shall fix a minimum percentage for purchase of energy from such sources taking into accountavailability of such resources in the region and its impact on retail tariffs. Such percentage for purchase of energyshould be made applicable for the tariffs to be determined by the SERCs latest by 1 April 2006. It will take sometime before non-conventional technologies can compete with conventional sources in terms of cost of electricity.Therefore, procurement by distribution companies shall be done at preferential tariffs determined by theappropriate commission.’

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Solar technologies

India is blessed with abundant solar energy. The major benefit with regard to the usageof solar energy is that it is freely available at most places and its use helps in reducingGHG emissions. However, there are many barriers and constraints that hinder thepenetration of solar technologies. Some of these are discussed below.

Barriers

P Lack of information dissemination and consumer awareness about solar generation andrenewable energy There is very low awareness among the public about thesupport given by the government on the installation of solar generation systemor SWHs (solar water heating system).

P High cost of solar generation technologies compared with conventional energy Theupfront cost of the installation of solar energy generation system and SWHS isvery high compared to the conventional system. The payback period in case ofsolar water heaters also increases in cities such as Surat, where gas geysers arebeing used.

P Inadequate workforce skills and training There is serious lack of skilled workforceto take care of the installation and maintenance of solar system. This is especiallyimportant with ULBs that lack the requisite skill in the installation/ maintenanceof solar street lightning and other solar system within the municipality and itswork areas.

P Lack of stakeholder/community participation in solar systems There is no directlarge-scale participation of the community in the development of the system.

P Seasonal and climatic conditions The natural conditions of the city (number ofsunny days) also act a barrier in promoting solar technology.

Initiatives undertaken

In order to promote the use of SWHS, various measures have been taken at stateand city level by different stakeholders. This includes mandatory use of solar waterheaters in all government buildings and also in case of large consumers such ashotels and hospitals, amendments in building bye-laws with regard to SWHS, andtax incentives. In the city of Hyderabad, the use of SWHS has been mademandatory for buildings having a height of 15 m and five floors, excluding theground floor. However, the installation of SWHS has been kept optional inindividual buildings. Also, if an individual installs SWHS, he is eligible for a rebateof 10% on the property tax.

In case of Delhi, the state government provides a subsidy to the tune of Rs 6000for the installation of SWHS.

Table 6 gives a snapshot of the measures undertaken in different states/ citieswith regard to SWHS.

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Waste-to-energy projects

Waste-to-energy projects have dual benefits—they not only solve the problem of wastedisposal but also lead to generation of electricity through that waste. Some of thebarriers with regard to such projects are discussed below.

Barriers

High upfront cost

In most cases, the cost of energy from waste is more expensive compared to that fromfossil fuels. The thermal processes of energy recovery from wastes are especiallyexpensive due to high cost incurred in gas cleaning in order to comply with stringentair emission standards.

Segregation of the MSW

Segregated MSW is generally not available due to a low level of compliance with MSWRules 2000, which requires waste to be segregated into organics, recyclables, and inert.

High level of harmful pollutants in the unsegregated MSW

Halogens, phosphates and alkali compounds, which are corrosive in nature, may bepresent in MSW. These compounds may cause corrosion and fouling in the boiler andwear of refractory material in combustion processes. Thus, the cost involved in the O&Mof the plant increases.

Lack of awareness about waste incineration

There are many negative perceptions about the impact of these operations on the healthand environment. There is a lack of public acceptance to specific processes like wasteincineration.

Unequal treatment with regard to land allocation for the MSW treatment and power generation plant

Land is leased only for MSW treating plant and not for the power plant. Also,sometimes, the land required for power generation is not allocated near the treating

Table 6 Snapshot of measures undertaken with regard to SWHS

Rebate in electricity tariff Rajasthan (15 paise/unit); Karnataka ( 50 paise/uint); West Bengal (40 paise to

maximum of Rs 80/-); Assam (Rs 40/-); Haryana (Rs 100/ 100 LPD up to 300

LPD); and Uttarakhand (Rs 75/sq. m.)

Rebate in property tax Thane, Amravati, GHMC, and Durgapur MCs providing 6%–10% rebate

LPD – litres per day; GHMC – Greater Hyderabad Municipal Corporation; MC – municipal corporation

Source Nigam (2007)

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plant, thereby increasing the cost of power due to the costs involved in thetransportation of the waste to the power plant.

Not viable in smaller cities having low waste generation

The waste-to-energy option is not viable in cities having low waste generation. Forexample, in the city of Shillong, the daily generation of waste in the city isapproximately 100 tonnes while for a viable waste-to-energy project, it should be atleast 400 tonnes per day.


ULBs can play an important role in promoting solar technologies and facilitatingelectricity generation through MSW in the city. However, the penetration ofthese is hampered by the barriers mentioned above, such as lack of awareness,high cost of solar generation technologies, and inadequate workforce skillsand training. Similarly, low compliance of MSW rules, unequal treatmentwith regard to land allocation for the MSW treatment and power generationplant and high upfront cost impediments the promotion of waste-to-energy projects.Nevertheless, if conscious efforts are undertaken by the local authorities touse renewable sources of generation such as solar to meet their own respectivedemands, and adoption of integrated planning approach for facilitating wasteto energy projects can provide a major support to the utility and the city in meetingcity’s electricity demand. These are discussed in detail later in the report.

Quality of supply and services

It can be defined as the end result of utilities planning, designing of network, operationand service management, which determine the degree of satisfaction of the consumer.It constitutes one of the most important performance parameters of the utility, whichbesides consumer satisfaction, has a direct bearing on the safety and performance ofplant and equipment. The quality of supply can be divided into two aspects—supplyinterruptions, either planned or unplanned, and voltage profile. Quality of servicesincludes consumer redressal mechanisms. This section discusses the issues and barrierswith respect to the QoSS (quality of supply and services).

Interruptions to electricity supply could be planned outages such as load sheddingor unexpected breaks in supply (such as burning of transformers).

Load shedding

Due to the supply constraint situation, utilities have to resort to load sheddingmainly during the peak hours. Utilities also undertake periodic maintenance, duringwhich the supply of power is cut off. It has been generally observed that in caseof load shedding, unorganized areas, especially the urban slums, are the ones where

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load shedding happens first, as they are considered to be high loss areas, whichmight not always be the case.

Unplanned interruptions

This could be due to the burnout of distribution feeders or overloading of transformers.

Voltage profile

Voltage profile is also a parameter of quality of supply. The main reason for low voltagecould be due to the overloading of the system network or infrastructure. Due to thepoor quality of supply, consumers have to resort to costly options such as generatorsor invertors to tackle the power crises and also the installation of voltage stabilizersfor various electrical appliances. The poor quality of supply is also one of the reasonsfor low penetration of energy-efficient appliances as they are very sensitive to voltagefluctuations.

As per TERI’s estimates, the cost of electricity produced using a generator isRs 27–34 per unit and that using an inverter is Rs 14–18 per unit. Similarly, costassociated with using stabilizers works out to be Rs 295 per month. The abovebehavioural pattern is indicative of the value that consumers attach to reliable goodquality power and signifies their willingness to pay for quality power, if they are ensuredthe same (Jain, Gaba, and Srivastava 2007).

In order to ensure the quality and reliability of services by the distribution utilitiesin a state or a city, the Electricity Act 03, Sec 57-59 enables the SRCs (state regulatorycommissions) to specify standard of performance for the utility and these standards canvary for different class or classes of licenses. It also states that if a licensee fails to meetthe standards specified under Sub-section 57 (1), without prejudice to any penalty whichmay be imposed or prosecution be initiated, he shall be liable to pay such compensationto the person affected as may be determined by the appropriate commission.

In the light of the provisions of the Act, the NEP directs the appropriatecommissions to regulate utilities, based on predetermined indices on quality of powersupply and reliability index of supply of power to consumers.

The Electricity Act 2003 further specifies the duties of the utility with regard tosetting up of a GRF (grievance redressal forum) and ombudsman for the redressal ofconsumers’ complaints.29

29 Sec 42 (5-8) states ‘(5) Every distribution licensee shall, within six months from the appointed date or date of grantof licence, whichever is earlier, establish a forum for redressal of grievances of the consumers in accordance withthe guidelines as may be specified by the State Commission; (6) Any consumer, who is aggrieved by non-redressalof his grievances under subsection (5), may make a representation for the redressal of his grievance to an authorityto be known as Ombudsman to be appointed or designated by the State Commission; (7) The Ombudsman shallsettle the grievance of the consumer within such time and in such manner as may be specified by the StateCommission; (8) The provisions of subsections (5), (6) and (7) shall be without prejudice to right which the consumermay have apart from the rights conferred upon him by those subsections.’

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In case of any grievances, consumers must first approach the internal grievancesystem of the utility and if not satisfied with the grievance handling by the utility,consumer can approach the GRF. Also, consumers can appeal to the ombudsman, ifthey are not satisfied with the decision of the GRF. It is important to note that utilitiescannot appeal against the decision of GRF and only consumers can approach theombudsman against the decision of GRF.

Consequent to this, many states have prepared the standard of performanceregulations, which sets the performance indicators and targets to be achieved alongwith the compensation, to be provided in case of default on part of utility.

However, there have been certain challenges/ issues associated with it. These areexplained below.

Issues with regard to QoSS

P Though utilities are monitoring these parameters, there is a lack of reliable databasefor monitoring and setting up of standards. Also, there is a need for timely revisionof the standards relative to their actual performance.

P Most of the utilities have similar performance targets, although there is a differentconsumer mix, distribution network, geographical coverage, and so on, which varieswidely across different states. For instance, the performance target for DT failurerate is the same across Andhra Pradesh, Haryana, Maharashtra, Tamil Nadu, andOrissa.

P In most of the states, there is no clear monitoring mechanism in place, which ensuresthat the utilities are actually conforming to the performance standards. Further,difference in interpretation of the reliability of the data by different stakeholdersmakes the monitoring mechanism and compliance to the performance standardsdifficult.• Though SoP (standard of performance) regulations penalize the utilities for not

conforming to the performance standards, the low consumer awareness withregard to these standards and the penalty thereof have subdued the impact ofsuch provisions on the performance of the utility.

• Lack of competition and peer pressure are also issues with regard to thecompliance of QoSS.


ULBs being the consumer of electricity cannot directly improve the quality of supplyand services. However, being a bulk and responsible consumer, they can represent theconsumers and can strengthen or facilitate the redressal mechanisms. One suchinitiative undertaken by Delhi is discussed below.

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Initiatives undertaken

Creation of Public Grievances Cell in Delhi In 2006/07, the DERC (Delhi ElectricityRegulatory Commission) undertook a consumer satisfaction survey in Delhi, whereinit was found that some of the consumers were not satisfied with the grievance handlingof the discoms as they perceived the CGRF (Consumer Grievances Redressal Forum),set up as per the provisions of the Electricity Act 2003, to be a part of the utility.Thus, in order to resolve such issues and to strengthen consumer onfidence/satisfaction,in January 2007, the state government, on the DERC’s request, set up a publicgrievance cell in Delhi, independent of the utility. This provided an alternative forumto the consumers for the redressal of their grievances. The mandate of this cell is toundertake the unresolved grievances with the discoms and in cases where the discomsare seen to have not acted properly, the issue can be recommended to the CGRF /DERC for further action, depending upon the nature of the fault. This system is inline with the system followed in most of states of the US.

Recommendations

The recommendations by parameter for the issues identified in the previous sectionsare discussed below.


Planning and electricity demand estimation

P In order to effectively plan the infrastructure requirements of the city, it is requiredthat utilities must prepare a long term distribution master plan, so that there isadequate lead time to plan the distribution network in order to meet the futurerequirements.

P For providing adequate electricity in the city, it is required that utility must plan orforecast its demand effectively. There should be realistic forecasting of demand bythe utilities considering various variables such as change in income of the people,new developments in the city, changes in the weather pattern, and so on, whichaffect the electricity demand in the city.

P For estimating demand effectively, it is also required that utility must interact withthe large consumer groups or associations and property developers. Theseassociations could be RWAs (residents’ welfare associations), industrial andcommercial associations. These interactions would keep the utilities informed withregard to the upcoming demand in the cities.

P In case of states heavily dependent on hydropower, alternative arrangements or tie-ups must be made in advance or accordingly when there is failure or fluctuation inmonsoons and hence in availability of hydropower.

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Role of local body in planning and coordination to provide access to electricity

P Ideally, if a plan related to the upcoming industrial/ commercial/housingestablishment is approved by the ULB, it should be forwarded to the utility, as itwill aid in timely and proper planning/ expansion of the power distribution structure.But while approving any plan, power sourcing is not accounted for as a basicrequirement. Therefore, it is required that for proper and timely extension of networkin the new or upcoming areas, it is important that ULBs must devise somemechanisms as part of building bye-laws so that while approving large building/colony plans, builders are asked to provide power sourcing details, which are thenforwarded to the utilities. This would inform, from where a large consumer/builderwould be sourcing power, that is, through its own generation in the form of captivepower plants or through distribution utility. This would help the utilities in gettingthe timely information about the upcoming plans and would help them in properplanning of services.

P Also, GIS map should be prepared for all the infrastructure facilities and madeavailable on price to the concerned entity with due consideration to security issuesinvolved in this.

P Further, ULBs may help in enforcing the bye-laws related to the safety and securityof power distribution system and equipment, are properly adhered to by theconsumers. Building bye-laws specify reserve space (covered from the top) for theelectricity substations within an apartment or industrial/ commercial complex. Butbuilders sometimes convert these spaces into rooms and accommodate the electricityequipment outside or in the nearby stations. This kind of situation should be avoidedand ULBs must ensure strict adherence or compliance with regard to building bye-laws.

P From a sustainable perspective it is important to initiate a mechanism wherein allthe service providers are included in the planning process. When cities are beingplanned, it is necessary that different stakeholders are included in the planningprocess, so that when the infrastructure is ready to use, different service providerssuch as electricity utilities are able to cater to the demand instantaneously by makingnecessary tie-up with regard to power procurement, supporting infrastructure, andso on. Also, involvement of utilities in the preparation of city development planswould help the utilities in preparing the long-term distribution master plan.

P In case of developing new infrastructure, provision of trenches can be consideredfor different infrastructure providers requiring laying of underground pipes, linesor cables. This would ensure ease of access for maintenance of the infrastructure.

For carrying out day-to-day activities, due coordination is essential between civicauthorities and electricity utilities, as the latter requires timely permissions for roadcutting for laying down cables and for maintenance activities. Similarly,

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telecommunications service providers would also require these permissions. Lack ofknowledge and coordination sometimes leads to fault in other service provider’s linesand cabling while rectifying its own. Thus, these issues can be addressed by facilitatingcoordination among different service providers and civic authorities by formation ofa committee chaired by the municipal commissioner of the city and involving seniorrepresentatives of different service providers like electricity utilities,telecommunications, water and sanitation. This form of initiative has been taken inthe city of Hyderabad and is explained in Box 1. This committee can also help infacilitating the planning process as discussed above.

Access in slums/ equity

P One of the ways to address the issue of equity is through the introduction of prepaidmetering for slum electrification and use of smart cards for providing these subsidiesdirectly to the urban poor. The prepaid metering can also be extended to othersegments of society and incentivizing it by proposing preferential tariff to prepaidmeter consumers. It would be a win-win situation for all the stakeholders involved—consumers, utilities, and the government. The benefits of such a system would bethat it would improve the revenue stream of the utility, decrease the AT&C losses,and also reduce the cost of service in the slums. Also, the government would beable to directly subsidize these consumers, thus increasing the transparency indelivery of subsidies. On the other hand, consumers would benefit from legalconnections and would be required to pay high upfront payment in terms of securitycharges. Implementation of such a system would streamline the informal marketsinto the formal markets and promote equity in the society. Benefits to variousstakeholders are summarized in Figure 1.

P Utilities can also provide a single point supply to slums or such clusters and maymake use of the franchisee for providing quality access to them. A franchise is anauthorization granted to an individual, group of people, or company to conduct a

Box 1 City-level coordination committee, Hyderabad

To facilitate coordination and collaboration on a regular basis, the Government of Andhra Pradesh issued an order

constituting a city-level coordination committee, with the Commissioner of Municipal Corporation of Hyderabad acting

as the nodal officer/coordinator. The other members in the committee include seniormost city officers from the police,

state electricity board, urban development authority, revenue department, metropolitan water supply and sewerage board,

state transport corporation, traffic police, telecom, and other departments. The committee undertakes city-level

inspections and meets once every week to sort out various infrastructure coordination problems, including those in

connection with widening of roads, shifting of services, road cutting to lay service lines, restoration of roads cut,

undertaking development and maintenance work, and so on. The committee has been functioning successfully and has

been able to solve many vexing problems.

Source City Development Strategy and Comprehensive Municipal Reforms: the approach of Hyderabad City, Centre for

Good Governance, CGG Working Papers-5/2003

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business under an empowered entity’s trademark, trade name, or service mark tomarket its goods or services in a particular territory. Under the Electricity Act 2003,franchisee means a person authorized by a distribution licensee to distributeelectricity on its behalf in a particular area within his area of supply. [ElectricityAct 2003: Clause 2 (Definitions): Sub-clause 27]. Use of franchisees could helpto achieve the following.

P Better and more reliable services to the consumersP Reduction of loss and prevention of pilferageP Proper revenue billing and collection in order to ensure revenue sustainability and

to ensure that power supply in these areas is a commercial proposition.

The indicator for access to electricity, along with the definition and benchmark, isprovided in Table 7.

Table 7 Indicator for access to electricity

Indicator Access to electricity

Definition Connection for supply of electricity

Usefulness Electricity being a basic human need, it is important to monitor its access.

Benchmark The Ministry of Power has set the target of 100% access to electricity by 2012.

Implementation P Quarterly status of access must be maintained.

P To be undertaken by utilities and submitted to SERCs and local authorities.

SERC – State electricity regulatory commission

Figure 1 Benefits of prepaid metering system in slums to various stakeholders

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Energy efficiency

AT&C losses

There are various measures that can be undertaken to reduce AT&C losses. Thisincludes aerial bunched cabling, underground lines/ cabling, energy metering and auditat all levels of HVDS (high voltage distribution system) system, use of moderntechnologies such as MIS (management information system) and SCADA (supervisorycontrol and data acquisition) systems. The indicator for the AT&C losses, along withthe definition and benchmark, is provided in Table 8.


P In order to reduce AT&C losses of the distribution utilities and to improve theefficiency of their operations, ULBs as bulk consumers must act as responsibleconsumers by timely payment of electricity charges or dues to the utilities andjudicious use of electricity. This would set an example for other consumers and canhelp the utilities in bringing down the losses significantly.

P Mass drives against power theft must be carried out by the utilities. In order to dothe same, the support of ULBs in terms of police protection becomes very essential.

P Consumer awareness campaigns can be carried out to curb power theft in the cities.P Also, in cities where power theft cases are high, it is required that urban local bodies/

state government must constitute special courts as per the provision of the ElectricityAct 03 for the speedy trial of offences.

In order to monitor energy efficiency in the delivery of services the following indicatormust be tracked.

Demand side management

Role of utilities

Awareness campaigns on the use of efficient appliances In order to increase the penetrationof EETs in the market, it is first required to educate consumers on conservingelectricity and carry out mass awareness campaigns targeted at all age groups. Thiswould inform the consumers about the technologies, policy, and the best practicesavailable to conserve energy. With the use of energy-efficient appliances, significantamount of savings can be achieved. Table 9 lists some of the possible interventionsthat can be undertaken in the domestic, commercial, and industrial sectors.

Creation of energy-efficiency cell A dedicated energy-efficiency cell must be createdwithin each utility, which can undertake activities relating to energy conservation. Inorder to ensure effective implementation by the cell, it must be noted that the cell’sorganizational structure be designed in such a manner that the staff of the cell reports

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Table 9 Indicative list of energy- efficient technologies

Existing Proposed Size of unit Energy reqd. For Energy reqd. for

technology technology Sector for analysis old tech. (kW) new tech. (kW)

Incandescent CFL Dom/Com 60 W 0.060 0.015

lamps /Ind

Magnetic Electronic Dom/Com/ 40 W 0.054 0.042

ballast ballast Ind

HPMV lamp HPSV lamp Com/Ind 250 W 0.285 0.171

and ballast and ballast

Ceiling fan Efficient fan Dom 70 W 0.070 0.060

motor

Conventional fan Electronic speed Dom 70 W 0.070 0.063

regulatorcontrol

Conventional AC 5 Star-rated AC Dom 1.5 Tonne 2.570 1.650

Std. eff. room cooler High eff. room cooler Dom 230 W 0.230 0.184

Electric geyser Solar water heater Dom/Com/Ind 120 litres 2.000 Nil

Std. eff. ind. pumps High eff. ind. pumps Ind 4 kW 4.000 3.200

Constant speed drive Variable speed drive Ind 250 hp 117.800 91.295

Std. eff. motor High eff. motor Ind 20 hp 10.100 9.696

Reciprocating Centrifugal Ind 200 T 210.000 140.000

compressor compressor

Constant speed motor Multi-speed motor Ind 30 hp 14.900 13.559

Electric arc furnace Improvement Ind 10 tons 2400.000 1680.000

Dom – domestic; ind. – industrial; W – watt; kW – kilowatt; HPMV – high pressure mercury vapours; HPSV – high pressure

sodium vapour

Source TERI compilation

Table 8 Indicator for energy efficiency – AT&C losses

Indicator 2 AT&C losses

Definition Ratio of difference between energy input (MU) to the system and energy whose bill has been

realized (MU) to energy input (MU) to the system (MU input-MU Realised)*100/MU Input

Usefulness Maximizing availability of electricity to legitimate consumers

Benchmark Target set by GoI–reduction in AT&C losses to 15% by the end of 11th Plan

Implementation P Quarterly or yearly records must be maintained

P To be undertaken by utilities and submitted to SERCs and local authorities.

MU – million units

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as high as possible within the utility to be considered strategically equal with traditionalsupply options.

Innovative tariffs and financial incentives There are a number of innovative tariff optionsthat can be considered by the utility, chief among them being TOU (time-of–use) tariffs.In TOU tariffs, higher tariffs are charged for energy consumed during peak hours thanduring off-peak hours. This differential encourages the customer to either shift someof their load to off-peak hours or install energy-efficient equipment to replace devicesbeing used during peak hours. The use of TOU tariffs by the utility is very commonin case of HT industries; however, this must also be used as one of the options forother consumer segments. Further, provision of financial incentives such as powerfactor rebate to large consumers can also encourage energy efficiency.

Cost-reflective tariffs Electricity tariffs should be designed to reflect its scarcity value,thus providing a signal to the consumers to use it efficiently.

Role of national and state governments

Optimization of tax structure In order to encourage production and consumption ofenergy-efficient appliances, taxes on the efficient products must be optimized. Taxesform a major part of cost in case of certain efficient products. This can be in the formof reduction in the excise duty on energy-efficient appliances at the national level andreduction in VAT (value added tax) at the state level. Excise duty on efficient productssuch as air conditioners and refrigerators can be graded on the basis of energy efficiencystar rating provided by the BEE. This will provide financial incentive to both themanufacturer and the consumer to opt for energy efficiency. Excise duty structurebased on energy efficiency would provide incentive and create competition among themanufacturers to improve quality. On the other hand, consumers would be able tomake energy-efficient products at lower prices. Similarly, reduction in VAT on efficientproducts would also promote their adoption and usage.

Role of regulator

As per Section 61 (c) of the Electricity Act 03, the guiding factors that SRCs shallconsider while setting tariffs include ‘the factors which would encourage competition,efficiency, economical use of resources, good performance and optimum investments’.Thus, the regulator assumes a very important role in the promotion of demand sidemeasures, as it can facilitate the implementation of such measures by the utility andcan also direct the utility to undertake such measures. In order to achieve the estimatedpotential of DSM measures in the country, a more proactive role in encouraging/directing utilities to undertake DSM measures, is required from state regulatorycommissions.

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Role of ESCOs

The role of ESCOs (energy service companies) in the promotion and undertakingof DSM measures assumes importance as it can effectively deliver long-term,dependable energy-saving projects that are financed directly through the cash flowfrom the savings. The ESCO is in the business of identifying energy-efficiencyopportunities, designing a retrofit, implementing the design, financing theimplementation, managing the construction, and monitoring the performance ofthe retrofit. ESCOs can do all or only a portion of the above functions within anyutility’s DSM programme.

Role of urban local body

ULBs can significantly contribute to the improvement of power services in thecity by becoming an efficient consumer. Being a bulk consumer, almost consuming8%–10% of the total electricity supplied by the utility, ULBs can significantlybring down the consumption of power in the city by undertaking demand sidemeasures such as efficient public lighting system and efficient water pumpingsystem. In order to do so, it is required by ULBs to create a dedicated energyefficiency cell as done by the Surat Municipal Corporation, to carry outconservation activities.

Public lighting

In order to promote energy efficiency in public lighting systems, the followinginterventions are required.P Efficient designing to minimize electricity consumption.

• Selection of energy-efficient lamps (replacing 40-W lamps with slim tubes,selection of high-lumen lamps, using HPSV lamps in place of HPMV lamps)

• Incorporation of time controllers in lighting circuits for automatic switch on andswitch off

• Energy metering and monitoring to assess the exact lighting consumption andtaking appropriate corrective actions

• Replacement of traffic signal lights with LED (light emitting diode) lamps• Time-based dimming of light at identified places

Water pumping

Electrical energy saving opportunity exists in water pumping if proper sizing ofthe pump is done. Savings in electricity consumption could be achieved byreplacing the present pumps with optimum-sized pumps, thus increasing theiroperating efficiencies. The indicator that can be used to monitor the energyconsumption in water pumping is detailed in Table 10.

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Data requirements

In order to achieve energy conservation in the city, government/civic authorities’leadership in the adoption of energy-efficient practices is very essential. Standardizedmonitoring and nationally consistent reporting processes must be created with theconsensus of all the stakeholders involved, to evaluate government energy efficiencyinitiatives. This would not only increase the credibility but would have a large replicationeffect.

In order to access the potential of conservation and to take necessary steps, it isrequired that customer surveys should periodically be conducted for all sectors andsegments to gather data on customer appliance ownership and use data and loadprofiling surveys of the entire city. Assessment of energy saving potential by city mustbe carried out to undertake the appropriate interventions. This activity can beundertaken by the state designated agencies along with urban local bodies.

Impact on environment

The following are the recommendations for minimizing the adverse impact on theenvironment. Table 11 gives the indicator for penetration of renewable energysources.

Table 10 Indicator to monitor energy consumption in water pumping

Indicator Energy consumption

P Water pumped in raw water pumping stations (kWh/ kl

P Water treated at treatment plants (kWh/ kl)

P Water pumped at booster pumping stations (kWh /kl)

P Water pumped from tube wells (kWh /kl)

Definition (Energy consumed in each of the above facilities per month) / (Total quantity of water

pumped or treated in a month)

Usefulness Energy efficiency is an important parameter in the operational performance of the water

supply system. By monitoring the trend of energy consumption per unit of output at each

stage, energy costs can be controlled

Benchmark P Combined rated consumption of all electrical equipment (an energy audit can provide the

appropriate benchmark for energy consumption)

P Trend (month-wise)

Implementation P Monthly records of electricity consumption should be maintained

P The indicator should be monitored monthly for each facility

kWh/ kl – kilowatt-hour per kilolitre

Source TERI (2004b)

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Role of utilities

It is required that utilities must adhere to the targets fixed by the respective SERCsin the form of renewable purchase obligations

Role of regulator

It is required that more realistic assessment of renewable energy potential being madeby the regulatory commissions and targets must be set more aggressively in order toharness renewable energy potential in the cities.


P As coal-based generation has high environmental and health implications, it isrequired that such kind of plants must not be encouraged to be set up in cities asthis would degrade the local environment considerably. This is very important inthe case of the urban cities as the local environment is affected by not only theincreased commercial and industrial activities, but also due to the increased vehicularpollution. In case generation plants have to be set up in cities, natural-gas-basedplants must be given priority over other fossil-fuel-based plants.

P ULBs have an important role to play in order to promote renewable energygeneration. As discussed, local bodies generally accounts for approximately 8%–10% of total demand of electricity in the city, and if conscious efforts areundertaken by the civic authorities to use renewable sources of generation suchas solar to meet their own respective demand, a major support to the utility andthe city in meeting cities electricity demand can be provided. This can alsofacilitate in creating awareness and the promotion of solar technologies. ULBsmay use any unutilized or vacant land, to generate power by using solarphotovoltaic/rooftops. Power generated from solar energy could be utilized for

Table 11 Indicator for penetration of renewable energy sources

Indicator Green Indicator

Definition Extent of penetration of renewable energy sources in meeting the energy needs

Usefulness Adoption of renewable technologies is an important tool for mitigating adverse environmental

impacts.

Benchmark Surveys required for assessing the potential of renewable electricity in the Indian cities to

establish appropriate benchmarks.

Implementation P Yearly records must be maintained

P To be undertaken by state nodal agencies

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supplying power to street lighting, traffic signals and can also be fed into thegrid. 30

P Property tax rebates may be provided to consumers switching towards the solartechnologies, especially solar-water-heating systems. As mentioned earlier, somemunicipal corporations have amended their bye-laws to provide incentives for theinstallation of solar water heating system.

P In order to facilitate waste-to-energy projects an integrated planning approach isrequired on behalf of the local body, wherein suitable land is provided near thewaste collection point for both processing and installation of power plant, thus,making the project more viable and cost effective. Community participation is veryessential in promoting waste-to-energy projects and it must be ensured that theseprojects do not lead to adverse impact on environment or local residents.

Quality of supply and services

The following are the recommendations to improve QoSS.

Role of utility

Implementation of information technology system

Use of IT (information technology) is very important not only to improve quality ofsupply but also to improve the efficiency in delivery of services. It may be groupedunder the following heads.P Real time systems for operational management and control It can be carried out by

means of SCADA systems. The SCADA system centre provides real timeinformation about the load at various places of the distribution system and alsoprovides control over the entire system from the control room. The system mayhelp in programming the load shedding in different parts of the city so as to reduce/avoid inconvenience to the consumer during shortage of power supply andexigencies. The SCADA system improves the reliability and quality of supply byreducing the break down time and prompt restoration of supply in case of outages.

P Management information systems Availability of required information from a hostof data is necessary for making informed and correct decisions. Some of thefunctions for which information technology can be beneficially used are developmentof customer database (required to provide information to various applications),preparation of baseline data for the entire distribution system, GIS mapping of majorassets, and so on.

P Load shedding Load shedding details must be shared in advance throughadvertisements in order to inform the consumers regarding the power cuts and it

30 However, it must be noted that per unit cost of electricity generated through solar is quite high and lot of incentivesare required from the government to bring down this cost. The kind of incentives required for the same needs tobe studied separately and is out of the scope of the study.

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is required that regulatory commissions/ state or city governments must ensurecertain degree of equity among different areas while deciding load shedding patterns.

P Strengthening of consumer relationships In order to improve the quality of serviceand consumer satisfaction, there is a need to strengthen customer relationships.Utilities can organize regular monthly meetings with senior representatives of, say,RWAs (residents’ welfare association)in order to listen and address their concerns.

P Use of franchisee In the cities or circles where losses are quite high, distributionutilities can indulge franchises for those areas as done by the MSEB in the Bhiwandicircle (discussed earlier).

Role of regulator

Independent consumer surveys to monitor quality Regulatory Commissions mustundertake independent consumer satisfaction surveys on a periodic basis to check theground realities of service provision by the utilities.

Awareness creation

In order to improve the QoSS, it is required that regulatory commissions, state, andcity governments must create awareness among the consumers with regard to thestandard of performance parameters laid by the regulatory commissions. This wouldmake utilities more accountable and responsible for improving the quality.


Creation of alternative redressal forums ULBs with support from state governments canfacilitate the creation of alternative grievance redressal forums similar to the PublicGrievance Cell in Delhi, in order to improve consumer satisfaction and quality ofservices. To start with, grievance redressal cell must be established in the megacitiesand then should be considered for million plus cities.

Electricity Consumers’ Advocacy Committee ULBs can also facilitate mechanisms torepresent consumers by creating an ECAC (electricity consumers advocacy committee)for representing consumers before the respective Ombudsman, SERCs, the ATE(Appellate Tribunal for Electricity), the High Court and Supreme Court in mattersinvolving public interest.

Capacity building requirements

In order to implement these recommendations, it is very essential that appropriatetraining is imparted to the concerned stakeholders. Some of the areas identified arementioned below.

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P Capacity building programme required for local bodies to sensitize energy-efficiencyand demand side measures/ interventions that can be undertaken in order topromote energy conservation

P Capacity building programmes requireds, to sensitize ULBs with regard to variousrenewable energy technologies

P Capacity building programmes required for the ULBs to train them on the use ofmodern tools and technologies that may assist them in their work like the MIS.

P Capacity building programmes required to sensitize ULBs with regard to variousprovisions of the acts and the policies of the government related to the power sector

ReferencesJain M, Gaba V, and Srivastava L. 2007Managing Power Demand: a case study of the residential sector in DelhiNew Delhi: TERI (The Energy and Resources Institute)

Kanitkar T and Sreekumar N. 2008Awareness and Action for Better Electricity Service: an agenda for the communityPune: Prayas Energy Group

Nigam D. 2007Solar Energy Applications in Hotels, Hospitals & InstitutionsDetails available at <http://www.delhitransco.gov.in/EnergyEfficiency/One%20Day%20Seminar-070907/TechnicalSession-II-2.pdf>, last accessed on 25 February 2008

Prayas. 2005Demand Side Management in the Electricity Sector: urgent need for regulatory action andutility driven programmesNew Delhi : WWF (World Wide Fund for Nature) India[Report by Prayas Energy Group for Climate Change and Energy Programme]

Singh J and Mulholland C. 2000DSM in Thailand: a case studyDetails available at <http://www.iaeel.org/IAEEL/NEWSL/2000/etttva2000/PrN_a_1-2_00.html> lastaccessed on 19 March 2009[Joint UNDP/World Bank Energy Sector Management Assistance Programme]

TERI (The Energy and Resources Institute). 2004aCase Study of Privatization of Electrical Power Supply and Distribution System in the FivePocket Areas in JamshedpurNew Delhi: TERI

TERI (The Energy and Resources Institute). 2004bBenchmarking Performance: a manual on performance measurement in urban local bodiesNew Delhi: TERI

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TERI (The Energy and Resources Institute). 2006National Energy Map for India, Technology Vision 2030New Delhi: TERI[Study by TERI for the Office of the Principal Adviser to the Government of India]

BibliographyAbbi Y P and Jain S. 2006Handbook on Energy Audit and Environment ManagementNew Delhi: TERI

Halpeth M K, Kumar T Senthil, Harikumar G. 2004Light Right: a practising engineer’s manual on energy efficient lightingNew Delhi: TERI

Quebec, Econoler International, IREDA, TERI. 2003Demand-Side Management from a Sustainable Perspective: experiences from Quebec(Canada) and IndiaNew Delhi: Quebec, Econoler International, IREDA, TERI.

TERI (The Energy and Resources Institute). 1997Demand Side Management Plan for Gujarat Electricity BoardNew Delhi: Energy Management Centre, Ministry of Power, Government of India

WebsitesBureau of Energy Efficiency.http://www.bee-india.nic.in/

Central Electricity Authorityhttp://www.cea.nic.in

City of Santa Monicahttp://www.smgov.net/http://www.smgov.net/epd/scpr/ResourceConservation/RC3_EnergyUse.htmhttp://www.smgov.net/epd/scpr/ResourceConservation/RC4_RenewableEnergy.htmhttp://www.smgov.net/citycouncil/agendas/2006/20060314/s2006031408-B.htmhttp://www.smgov.net/epd/scpr/ResourceConservation/RC6_EcologicalFootprint.htm

Central Pollution Control Boardhttp://www.cpcb.nic.in/upload/Publications/Publication_393_sec10_6.pdf

International Association for Energy Efficient Lightinghttp://www.iaeel.org/IAEEL/NEWSL/2000/etttva2000/PrN_a_1-2_00.html

Ministry of Powerhttp://www.powermin.nic.in/

Toyo Metroplolitan Governmenthttp://www.metro.tokyo.jp/ENGLISH/

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Literature review

Cities are spatial manifestations of human and economic activities and exhibit a complexdynamic relationship between its various elements. Buildings form a crucial part ofthis spatial manifestation. There is a considerable amount of resource use andenvironmental impact directly and indirectly associated with buildings. Estimates putconstruction alone responsible for approximately 40% of total energy use worldwide,most of which is sourced from fossil fuels (Roodman 1995). This energy consumptionin buildings has been growing dramatically over the years with changing lifestyle(Figure 1). An estimated 42% of the global water consumption and 50% of the global

BuildingsCHAPTER

Figure 1 Annual energy consumption in various sectors, with buildings being the largest energy

consuming and greenhouse gas emitting sector

Source USEIA (2003)

5

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consumption of raw materials is consumed by buildings when taking into account themanufacture, construction, and operational period of buildings.1 Buildings form thebasic building block of any settlement and, therefore, are one of the major sources ofresource consumption and carbon emissions. Building activities contribute an estimated50% of the world’s air pollution, 42% of its greenhouse gases, 50% of all water pollution,48% of all solid wastes and 50% of all CFCs (chlorofluorocarbons) to the environment.2

It, therefore, becomes very crucial to look at sustainability in buildings, given this hugeenvironmental impact of buildings. This impact is very high in the so-called urbancentres due to numerous factors. This section, therefore, attempts to look at sustainableprovision of buildings in urban centres.

Sustainability in buildings

Sustainability in the sector of buildings is a complex concept and involves manystakeholders. It requires the joint efforts of architects, builders, planners, developers,technicians, policy-makers, industrialists, and manufacturers. A key role is also playedby the end-user, not only through his/her responsibility to use the building efficiently,but also through his/her demand for a sustainable building. Technology also plays animportant role, as it can facilitate more rational use of resources during the entire lifecycle of a building: through the phases of construction, use, and demolition (ICAEN2004).

A sustainable building is often termed as a green building. There are manydefinitions of green buildings. The USGBC (United States Green Building Council),one of the pioneers in propagating green buildings across the globe, states, ‘The term“green building” is synonymous with “high-performance building”, “sustainable designand construction”, as well as other terms that refer to a holistic approach to designand construction…..Green building design strives to balance environmentalresponsibility, resource efficiency, occupant comfort and well-being, and communitysensitivity’ (USGBC, 2005). According to TERI, a not-for profit organization workingin the field of sustainable development, ‘A sustainable/ green building is designed,constructed, and operated to minimize the total environmental impacts while enhancing usercomfort and productivity’ (MNRE and TERI 2008). Also, ‘green building is the practiceof increasing the efficiency with which buildings use resources — energy, water, andmaterials — while reducing building impacts on human health and the environmentduring the building’s life cycle, through better siting, design, construction, operation,maintenance, and removal’ (Frej 2005). The concept of green building entails promotionof energy efficiency, land sustainability, water efficiency, resources efficiency, and betterbuilding environment. A sustainable building is defined as a building having minimumadverse impacts on the built and natural environment, in terms of the buildings

1 www.nrdc.org/china2 ibid

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themselves, their immediate surroundings and the broader regional and global setting.They are designed to minimize the total environmental impact of the materials,construction, operation and deconstruction while maximizing opportunities for indoorenvironmental quality and performance; saving money, reducing waste, increasingworker productivity and creating healthier environment for people to live and work.

Sustainable buildings: principles, approaches, and characteristics

The existing approach of building design and use symbolize unrestrained consumptionof energy and other natural resources, with a consequent negative environmental impact.This can be altered through designing and using buildings on the concept ofsustainability. The design and development of new buildings based on sound conceptsof sustainability, and application of suitable retrofit options to the existing buildingscould substantially improve resource consumption, including energy with an associatedreduction in both local as well as global emissions.

The following principles are chiefly considered while designing sustainable buildings.

Relation with the location

The first step is to design for the macro and micro climate of the site by adoption ofsuitable bio-climatic design principles. Bio-climatic design varies from one climate zoneto another. For example, India has six climatic zones, ranging from extreme coldconditions in the deserts of Leh and Ladakh to extreme hot and dry conditions inRajasthan. A building in a cold climatic zone has to adopt measures to harness thesun’s energy to the maximum extent, such as maximum exposure of south-facingwindows to capture heat; dark-coloured surfaces; high thermal mass; and insulationto retain the captured warmth of the sun; or the use of design elements, for example,trombe walls and sun spaces. Contrary to this, a building designed for a hot climatewould need measures to reduce solar gain by using smaller window sizes, shaded walls,minimum exposure to the west and east, external walls, and roof insulation, or the useof design elements such as solar chimneys and wind towers to maximize ventilation.

Flows: energy, water, and materials

The ideal sustainable building should replicate nature’s closed cycle of flows. However,it is a very challenging task to achieve in case of urban buildings, and hence, attemptsmust be made to potentiate self-sustainability of a building to its maximum by focusingefforts in three principal areas.

1 Energy

The main objective in optimization of energy use is to reduce the use of fossil fuels.This is done in two ways.a) By optimizing the use of energy through various measures such as passive design/

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bio-climatic design, use of efficient appliances and equipment, efficient lightingsystems, daylight integration to reduce dependence on artificial lighting, andimproved insulation

b) By the use of renewable energy such as solar thermal (for domestic hot water), PVs(photovoltaics), and wind energy

2 Water

Sustainable buildings tend to achieve a closed cycle in case of water managementthrough the following strategies.· Consumption efficiency· Resource catchment· Improvement in the quality of water when returning it to the environment

The possibilities for conserving water when designing buildings are based onreducing potable water use (5% of total consumption is devoted to human consumption– for drinking or hygiene purposes – while 95% is devoted to evacuation of wastes),improving efficiency of appliances, and adjusting the quality of water for various uses.

Choosing efficient fixtures and faucets and establishing adequate technical systemsto provide non-drinkable water –recycled, or recovered water from rain – are the guidingparameters to optimize water consumption at building level.

3 Materials

The material used for a building should be non-polluting, local, and appropriate forthe process of future deconstruction. Materials utilized in the construction process havea high environmental impact due to the uncontrolled use of resources, consumptionof energy and water, wastes generated, and alteration to the environment caused bythe extraction processes and transformation of materials. The strategies to achieve theseshould include the following.P Reduction in the amount of material consumedP Promotion of reuseP Use of recycled materialsP Minimization and management of wastes for reutilization and recyclingP Use of materials that reduce the environmental impact and substitution of materials

and processes that have less impact on the environment

A sustainable building, thus, follows an ‘integrated approach’ to building design.A sustainable building minimizes the demand on non-renewable resources, maximizesthe utilization efficiency of these resources when in use, and maximizes the reuse,recycling and utilization of renewable resources. It maximizes the use of efficientbuilding materials and construction practices; optimizes the use of onsite sources and

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sinks by bio-climatic architectural practices; uses minimum energy to power itself; usesefficient lighting, air-conditioning; efficient daylighting integration; maximizes the useof renewable sources of energy; uses efficient waste and water management practices;and provides comfortable and hygienic indoor working conditions. It also salvages andrecycles waste and building materials produced during construction and demolition;implements maintenance and operational practices that reduce or eliminate harmfuleffects on people and the natural environment, reuse existing infrastructure, identifiesfacilities near public transport systems and considers redevelopment of contaminatedproperties. In a nutshell, such buildings look at the design, construction, and operationof a building in an integrated manner. Some of the aspects that are considered in suchbuildings are as follows.P Site planningP Building envelope designP Building system design, HVAC (heating, ventilation, and air conditioning), lighting,

electrical, and water heatingP Integration of renewable energy sources to generate energy onsiteP Water and waste managementP Selection of ecologically sustainable materials (with high recycled content, rapidly

renewable resources with low emission potential, and so on)P Indoor environmental qualityP Landscaping strategies that require little irrigation, permitting groundwater

replenishment and providing onsite storm-water management.

In this manner, sustainable buildings use less energy and water, generate less greenhousegases, use materials more efficiently, and produce less waste than the conventionalbuildings over their entire life cycle (Cole 2007). The adoption of such features resultsin buildings that haveP lower maintenance costP reduced operational energyP lower air pollutionP healthier and more productive occupantsP less material usage, andP longer life

To achieve the above objectives, there have been various attempts worldwide tobring sustainability in the building sector. The following section attempts to study thebest practices internationally and nationally to achieve sustainability in the buildingsector, directly or indirectly.

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An overview of international and national best practices

This section attempts to look at the various innovative measures at country and citylevel to achieve sustainability in the building sector through various measures such aspolicy interventions, market mechanisms, incentives, and implementation mechanism.The objective of this extensive study is to arrive at the country-specific sustainabilityparameters that have been tested and validated further through city visits, as discussedin the subsequent sections. Case studies of specific building projects that depict featuresof a sustainable/green building have not been included here as this study primarilyfocuses on ways and instruments to bring a paradigm shift in the way a building isdesigned.

For the sake of clarity and better understanding, this section has been divided intotwo broad categories—country programmes and city programmes. The countriescovered are the UK, Singapore, Australia, Germany, Japan, Europe, and Austria. Apartfrom these, it has been observed that a number of cities in many countries have goneabove and beyond their country’s codes to implement more stringent policies in theirmunicipalities.

Country programmes

Countries worldwide have attempted to achieve sustainability in the buildings sectorin some form or another. This has been done in parts or at some places holistically.Almost all countries have mandatory energy-efficiency requirements either in the formof prescriptive regulations or through predicted energy demand calculations. They alsohave some form of mandatory provisions for water and waste management at buildingslevel. The various efforts taken up by different nations in this regard are briefly discussedas under.

United Kingdom

The UK has an extensive set of policy instruments incorporating sustainability principlesin buildings. It has extensive building regulations targeting both new buildings andrefurbished buildings, a mandatory code for sustainable homes, which has highstandards for nine environmental categories, including water, energy and waste, and apopular building rating system called BREEAM (Building Research EstablishmentEnvironmental Assessment method), which is the national environmental buildingassessment method and has been developed for various sectors like offices, schools,retail, prisons, multi-residential, industrial, and so on. Besides, the country has aninteresting system called Home Information Pack, in which it is compulsory whenselling a new or existing home of more than four bedrooms to have a home conditionreport and an EPC (energy performance certificate) based on a survey carried out bya home inspector. The country gives various incentives and/or penalties for electricitygeneration by renewables, use of photovoltaics, and grants for low-carbon buildings,

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besides having a comprehensive knowledge dissemination programme targeting variousstakeholders having features such as the following.P Training and accreditation workshops for building assessors, energy calculation

consultants, home inspectorsP Regular seminars, workshops, and product launchesP Approved published supportive documents along with the building regulationsP Government websites like that of DEFRA (Department for Environment, Food and

Rural Affairs), environmental agency, local councils, and BRE provide usefulinformation and guidance.

The UK also gives enhanced capital allowance to businesses that can claim 100%first-year capital allowances on their spending on qualifying energy-saving plant andmachinery.

Water efficiency at building level is not considered in building regulations, however,it is part of the rating systems.

However, barriers continue to exist and various programmes have varying successlevels. Issues of behaviour and motivation are significant barriers to investment in largeorganizations; energy saving is rarely core business. Competing priorities are often asignificant barrier, particularly in the public sector. In the commercial sector, wherethe use of energy in buildings predominates, lack of information, split incentives (forexample, between the landlord who would make the investment and the tenant whowould benefit) and motivation are key barriers. For the individual, lack of informationand motivation are primary barriers.

Singapore

Singapore has mandatory provisions in the building regulations for energy efficiencyin the following.P LightingP Air-conditioningP Thermal comfort in non-air-conditioned buildings

Singapore has also set up a BCA (Building and Construction Authority) GreenMark Scheme, a benchmarking scheme to promote sustainability in the builtenvironment by construction and real estate sectors and covers the following.P Green mark for air-conditioned buildingsP Green mark for residential buildingsP Green mark for schools

Singapore has a green labelling scheme with mandatory provision for use of energy-labelled fridges and air conditioners. Besides this, it has also launched a water efficiency

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labelling scheme, which labels products for water efficiency, allowing consumers tocompare the water efficiency of different products such as washing machines. As aresult, domestic water consumption has fallen from 165 litres a day in 1999 to 160litres a day in 2005. It also tries to educate the stakeholders and consumers throughvarious programmes.P Specialized campaignsP Education systemP Clean and Green WeekP Showcase projects like Water Volunteer group programme

Australia

Australia uses a number of policy instruments to accelerate the green buildingmovement. It has mandatory performance requirements in the building code. It hasmandatory energy modelling for buildings with a floor area larger than 5000 m2. Steptariffs are used to introduce water conservation. A number of rebate programmes suchas the Solar Hot Water Rebate programme, Photovoltaic Rebate programme, andBuilding Improvement Partnership programme (for commercial buildings) areintroduced from time to time.

Australia has a Green Power Accreditation label programme as well. AccreditedGreen Power products always carry the ‘tick’ label: labels tell the amount of accreditedGreen Power the energy retailer is purchasing on behalf of the customer (as a %) ofthe customer’s household’s electricity consumption.

The Australian building code also has various standards for alternative onsitedomestic waste-water treatment units such as septic tanks, waterless composting toilets,aerated waste-water treatment systems and land disposal and irrigation systems.However, these have to be followed only where access to public sewers is not available.

The country has a performance-based voluntary rating system called NABERS(National Australian Built Environment Rating System), which measures an existing

Figure 2 Australia’s Green Power Accreditation labels

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building’s overall environmental performance during operation using a set of key impactcategories.

Australia also has a National Water Initiative, an integrated and coordinated nationalapproach to the improved management of the scarce water resources and incorporatedbuilding-level initiatives as well.

Australia has a number of programmes for knowledge dissemination such as HIA(Housing Industry Association) GreenSmart, MBAV (Master Builders Association ofVictoria) Green Living Training programme, Green Plumbers’ programme to educateand train builders, consumers, and building professionals on various aspects of greenbuildings.

Germany

The German Energy Conservation Regulation EnEV restricts primary energy use inbuildings. Energy calculation is mandatory and benchmarks are specified. It also has apassive house concept in which certificates are provided for compliance. It uses acombination of low-energy building techniques and technologies; certification accordingto various limitations like the building must not use more than (=)15 kWh (kilowatt-hour)/ m2 in heating energy; total primary energy consumption not more than 120 kWh/m2 per annum. Energy performance contracting is working effectively in Germany. Thisis a contract between an energy-saving partner and a building owner; the contractormakes investments and performs energy-saving measures in the building and is thenpaid relative to the cost savings for the building’s energy consumption. The owner doesnot have to make any investments). It also gives tax exemptions to selectively fosterthe use of environment-friendly technologies and loans for the modernization ofbuildings (for implementation of energy conservation measures and use of renewablesources of energy. For residential buildings, there is a support programme to provideadvice and grants to owners if they take onsite advice of professional experts on potentialenergy conservation measures. Small and medium-sized companies can also receiveassistance under this programme if the amount of turnover does not exceed an upperlimit. A few German cities also have green roofs programme (incentive program) todeal with storm-water management and urban heat island effect. Energy labelling asper European Union directives is also mandatory in Germany. This applies to coolingand freezing equipment, washing machines, dryers, and dishwashers.

Japan

CASBEE (Comprehensive Assessment System for Building Energy Efficiency) is avoluntary environmental rating system that covers the following four assessment fields.1 Energy efficiency regarding earthquake-proofing, energy-saving and barrier-free

construction, housing quality2 Resource efficiency

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3 Local environment4 Indoor environment

Europe

The Energy Performance Directive by the EU (European Union) mandated that allbuildings have to be rated on their energy sustenance for approval of building permits.Buildings are rated on a scale of A to G.

Energy efficiency assessment: appliances

Energy efficiency assessment of appliances is done through appliance standards andmandatory certification and labelling programmes. Appliance standards are a popularmeans to increase energy efficiency of appliances used in commercial and residentialsectors. Labelling programmes provide mandatory provision of information to end-users about the energy-using performance of products. It is often combined withappliance standards.

Japan

The Top Runner Program (appliance standards) requires that all new products mustmeet, by a specified date, the efficiency level of the most efficient product at the timethe standard was set. The programme resulted in energy-efficiency improvements ofover 50% for some products.

Europe

All European countries follow the EU energy labelling for appliances. The energyefficiency ratings are from A to G—A being the most efficient. The label also givesenergy consumption every year.P Labelling standards vary from country to country.P Credits in BREEAM and Code for Sustainable Homes

Implementation and incentivizing

While most countries provide cash incentives and grants to encourage green buildingpractices, some countries have adopted innovative incentive schemes such as thefollowing.

Austria

Programmes for both new and retrofitted buildings combine the financial incentivewith a strong informational aspect and have so far been very successful.

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Japan

Implementation and incentivizing are done through the Housing Finance Servicesagency.

Water efficiency at building level

Australia

The building environmental rating system (NABERS) has defined specific benchmarksfor water consumption for various building, based on which the buildings are ratedfor water efficiency. Efficient buildings are given tax incentives by the local governmentto encourage the contractors and developers to adhere to the benchmarks.

Building materials specification

Australia

Every form of construction is required to have a sound insulation with a rating thatmatches the required value for weighted sound reduction index

Japan

The use of building materials containing chloropyrifos in buildings with habitable roomsis prohibited.

Waste management

Most European countries have compulsory source segregation of waste. There areprovisions for onsite storage facilities required for different types of wastes. Somecountries impose producer responsibility. Australia also has a national guide for theuse of recycled concrete and masonry materials in non-structural applications.

Sewerage

United Kingdom

Building regulations have provisions for drainage system of waste water. Septic tanksshould have a secondary treatment system attached and get clearance from anenvironmental agency.

Economic and market-based instruments

Economic instruments are based on market mechanisms and usually contain elementsof voluntary action or participation, often initiated or promoted by regulatory incentives.Some of the instruments used under this are energy performance contracting/ ESCO(Energy Service Company), Cooperative/technology procurement, white certificateschemes and Kyoto flexibility mechanisms.

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US

The US is the first and most successful country in terms of energy performancecontracting, and 3.2 MT (million tonnes) of CO2 is estimated to have been savedthrough this mechanism. There are three core segments.1 Federal Energy Savings Performance Contracts

P DOE (Department of Energy)P Air ForceP Army

2 Utility Energy Services Contracts3 ‘MUSH’ markets

P Municipalities/state governmentsP UniversitiesP SchoolsP Hospitals

For an effective ESCO industry, a mature financial sector willing to lend for energy-efficiency projects, unsubsidized energy prices and supportive legal, financial andbusiness environments.

Cooperative procurement is a voluntary tool, whereby customers from the privateor public sector who procure large quantities of energy-using appliances and equipmentcooperate in order to influence the market by creating demand for more efficientproducts. In the US, 24 utilities, supported by the US EPA (Environment ProtectionAgency) together initiated the Super Efficient Refrigerator Program by launching acompetition for a refrigerator 30%–50% more efficient than the 1993 standards. Thecompetition won by Whirlpool resulted in huge energy savings.

City-specific programmes

Rhizao, China

Rhizao, a coastal city in northern China’s Shandong peninsula, has implemented aprogramme mandating the use of SWHs in its buildings. Rizhao is a city of 3 millionpeople, where the average income is well below the national average, yet is known asChina’s solar city, as it has one of the highest per cent usage of solar thermal systems(99% of households in the central districts and 30% of households in suburbs), alongwith photovoltaic solar cells powering almost all traffic signals and street lights. In thevillages surrounding Rizhao, more than 6,000 households use solar cookers and morethan 60 000 greenhouses are heated with solar thermal systems.

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Green building programmes

Rizhao was the first city in China to create a regulation requiring installation of SWHsystems in new construction. The mandate was first enacted in the early 1990s, andten years later, 99% of all households in Rizhao now use SWH systems. However, thecity has been so successful in solar thermal usage because this regulation wasaccompanied by subsidized research, extensive outreach, and initial incentives for solarwater heating.

Rizhao helped educate home-owners through open educational seminars and publicadvertising, and installed SWH systems on prominent government buildings and homesof city leaders. Certain branches of municipal government provided the systems freeof charge to employees. In all, systems for both new construction and retrofitting, thegovernment supervised installation to ensure that all products met with high standards.

Additionally, the city government was able to adopt and encourage other forms ofsolar energy usage. This is partly due to the solar research and attraction of industryto Rizhao, but also due to the city government’s commitment to solar. Almost all trafficsignals, street lights, and public lighting in parks are powered by photovoltaics.

Goals achieved

Rizhao has a very high rate of adoption of SWH systems, with 99% of urban and 30%of rural households using SWH. As a result of this, Rizhao has reduced CO2 emissionsby 52 860 tonnes per year and saved citizens the equivalent of $1807 per year.

Environmental goals are also being met, with Rizhao being one of the top ten citiesfor air quality in China. This, in turn, is spurring economic growth for the city, withincreased direct foreign investment, increased tourism, and increased universitypresence. City officials have said that environmental quality is one of the main factorsin foreign investors’ choice of location. In 2005 and 2006, after positive press relatedto Rizhao’s solar usage, the number of visitors to Rizhao increased by 48% and 30%respectively. Additionally, Peking University has chosen to build its new residentialcomplex in Rizhao, which has drawn more than 300 professors into buying homes inthe city.

Lessons learned and applicability

One of the major lessons from the Rizhao example is the benefit of funding researchand development into new technologies. However, once technologies have becomecompetitive in the marketplace, the use of regulation to make green systems mandatorycan be effective, particularly when combined with outreach to replace and retrofit oldersystems. Specific measures would include the installation of SWH systems on prominentgovernment buildings and encouraging branches of city governments or large businessesto fund SWH systems on employees’ homes.

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Austin, USA

Austin is the capital of the state of Texas, and is the 16th largest city in the US, with apopulation of just over 750 000.


Austin’s green building programmes consist of five major components.1 A citywide building evaluation tool used to give free ratings to residential and

commercial buildings2 Extensive educational materials for builders, developers, and home-owners3 Financial incentives for undertaking a home energy audit and retrofits for existing

buildings (including many options that are free of charge)4 Requirements for municipal buildings to meet green design standards as an

example for the city5 Building codes that incorporate strict efficiency characteristics

Building ratings

Austin, Texas, became the first city in the US to have a citywide tool to evaluatebuildings. This rating and consultation are free of charge for buildings within AustinEnergy’s service area. Austin Energy provides the following services.P Services to home-owners (consultations and workshops), commercial building

designers (consultation throughout the design process, marketing ofenvironmental projects, technical analysis of benefits, and assistance in applyingfor governmental rebates), and for developers, owners or residents of multi-family apartments or condominiums.

P Another free service is home improvements for low-income Austin Energyconsumers. The guidelines related to income levels vary by number of peopleliving in the house, as well as the ages of the residents. Austin Energy providesnot only the materials but the installation as well.

P Free programmable thermostats and installation to home-owners who agree toallow Austin Energy to ‘cycle off ’ their air conditioners. This means that airconditioner usage can be staggered across many households, thus decreasingpeak loads. It also offers an immediate $25 credit to the utility bills forparticipating households.

P It offers many rebates for residential and commercial building renovations. Aftera free home energy audit by a participating member company, home-owners canselect which renovations they will choose to perform. The rebates cover up to20% of certain household improvements, up to $1575.

P It also offers rebates up to $100 000 for renovations to air-conditioned multi-family properties with more than four residential units.

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P It also offers advice to the city of Austin on proven specific technologies thatare effective and beneficial. These new systems are incorporated into the citycommercial and/or residential building codes as mandatory requirements for allAustin buildings.

The benefits to the city and to Austin Energy have been enormous, includingreduction of the city’s energy consumption by 142 427 MWh (megawatt hours),reduction of Austin Energy’s generation resources by 82.8 MW (megawatt), andreductions of power plant CO2 emissions by 90 831 tonnes. Savings in individual energycosts exceed $2.2 million each year.

Building codes

Austin continues to move forward and in early 2007, passed the Austin ClimateProtection Plan, requiring that by 2015, all new single-family homes constructed willbe ‘zero energy capable homes’, which is defined to be a household that can produceas much energy as it consumes over the course of the year.

The first of the code improvements was implemented on 18 October 2007, basedon the 2006 IECC (International Energy Conservation Code) with local amendments.The most significant amendments to the existing building code in Austin wererequirements for testing the building’s thermal envelope, installation of a radiant barrierin attics or roofs, testing duct system leakage, testing air balancing of HVAC systems,and using high-efficacy systems for 25% of lighting.

Monitoring

Austin has developed separate systems for monitoring the impacts on new and existingconstruction, with overall indicators of energy consumption and greenhouse gasemissions being evaluated for the entire city as a whole.P The city is able to document fairly accurately the number of houses that have been

audited and the specific measures that have been implemented.P The building owners’ rebate applications include specific details regarding home

improvements.P Savings are measured in three separate ways: annual savings, cumulative savings,

and life-cycle savings.P Annual savings sum the impact of all measures installed in a given year.P Cumulative savings are the sum of annual savings from all measures installed in

conjunction with the history of Austin Energy’s green building programme.P Life-cycle savings are calculated by multiplying annual savings over the assumed

life cycle of a given measure.

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In order to monitor the impact of changing building codes, the city of Austin hascommitted to an annual evaluation of buildings. Energy intensity of these homes willbe calculated and compared to the Task Force’s projected energy intensity of modelhomes built to code specifications.

Awareness programmes

P Newspaper advertising with lists of participating builders and architects; physicallabelling of efficiency, with labels modelled after familiar appliance efficiency labelsplaced near the main fuse box

P Advertising on prominent city billboardsP Hosting green building conferencesP Partnering with large service organizations like Habitat for Humanity and American

Institute for Learning and with private developersP Providing free workshops for home-owners, architects, or students, called ‘Green

by Design’P Develop a programme for at-risk youth to learn green building skills, thus providing

much needed jobs as well as creating a labour force to meet the growing demandfor green buildings

Goals achieved

From 1991 to 2007, the Austin Energy Green Building programme is estimated tohave reduced the city’s energy consumption by 142 427 MWh and has reduced demandby 82.8 MW. The programme is also credited with reducing CO2 emissions by90 831 tonnes, NOx emissions by 87.6 tonnes, and SOx emissions by 17.4 tonnes.

Lessons learned

P The incorporation of many stakeholders into the planning and implementationP Implementing change with both mandatory and voluntary components

Berkeley, USA

Berkeley has a long history of environmental ordinances related to energy conservation,but more recently has really become a national and international leader onimplementing energy conservation through the Residential Energy ConservationOrdinance.


In 1987, Berkeley first instituted its Residential Energy Conservation Ordinance, RECO,which mandated that all buildings with a permit value greater than $50 000 that weresold, transferred ownership or engaged in renovations must meet basic energy and waterefficiency standards.

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(RECO requires low-flow toilets or toilets with flow controls, low-flowshowerheads and faucets, R-12 insulation on water heaters, R-3 insulation inall hot and cold water piping, weather-stripping on exterior doors, R-3 insulationon furnace ducts, dampers or doors on fireplace chimneys, minimum ofR-30 ceiling or attic insulation, and CFLs in all common areas of multi-unitbuildings.)

The Commercial Energy Conservation Ordinance applies to all commercialproperties or to the commercial portion of mixed-use residential-commercial buildings.P Building owners who are selling commercial property are required to install the

mandated conservation measures (or required to transfer compliance responsibilityto the buyers).

P All buildings being renovated or having additions completed also are required tomeet compliance.

Implementation

Since all buildings bought and sold in Berkeley are required to have a permit of salemonitored by the Berkeley City Council, the implementation of this project was fairlystraightforward.

Currently, Berkeley has only one energy inspection company, the CESC(Community Energy Services Corporation), which is required to inspect every homethat is hoping to pass the RECO performance standards. It is also responsible forinspecting the CECO performance standards as well.

Goals achieved

While Berkeley is a small city, RECO applies to the 600 residential buildings that transferownership or are remodelled each year. Considering this, the savings of RECO have beensignificant. RECO has reduced residential energy consumption citywide by over 13%and reduced Berkeley’s CO2 emissions by 5000 tonnes annually. Additionally, theprogramme has helped the average home-owner save $450 per year! This indicates thatthe project is having a big impact not only on the city but on the individuals as well.


The Berkeley implementation of RECO has been an effective combination ofregulations and incentives, while also combining prescriptive and performance-basedpolicies. The use of subsidies may be less applicable in the Indian context, but softloans from government bodies could be used in place of subsidies, since all measuresdo pay for themselves. Even without subsidies, the return on investment is well underten years, so many longer-term home-owners will be living in those houses long enoughto recover the benefits.

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Seattle, USA

Seattle, Washington, is a temperate city of 3.1 million in north-western US. It has oneof the highest concentrations of green buildings in the country. The sustainable buildingindustry in Seattle is worth $671 million.


P The Seattle Council believes that its efforts have encouraged more green companiesto be based in Seattle and more individuals to invest in green buildings.

P Seattle has required all city buildings over 5000 square feet to meet LEED(Leadership in Energy and Environmental Design) standards, and provided financial,height, and density benefits for private commercial projects.

P For residential development and affordable multi-family housing units, Seattle hasindependent rating systems (Built Green and Sea Green, respectively).

Municipal buildings

The requirement for all new municipal buildings larger than 5000 square feet to meetLEED Silver standards has resulted in the construction of 10 LEED-certified projects(including 5 Gold and 3 Silver) and the planning and development of 28 more LEEDprojects.

Density bonuses and other incentives

P Buildings that meet LEED Silver or above are granted permits for greater height orfloor area.

P These projects must include either affordable housing or have public amenities tocontribute to the downtown area.

Financial Incentives

Seattle has also provided financial incentives for projects committing to LEEDcertification, particularly aiding with design and consulting fees.

In moving forward, Seattle has committed to some important next steps, includingintegrating sustainable design into municipal design codes, including green featureswithin the Seattle real estate database, and increasing the recycling of building wastein Seattle.

Monitoring programmes

Seattle has had environmental indicator monitoring since 1998. While none of thesewere initially directly related to buildings energy consumption, such as energy use persquare metre or concentration of green buildings, many are indirectly linked. The useof renewable energy, energy use per dollar income, impervious surfaces, open space,

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soil erosion, and housing affordability are all indicators that Seattle has been using foralmost 10 years.

Goals achieved

Since the project’s inception in 2000, Seattle has reduced CO2 emissions by an averageof 1067 tonnes and reduced costs by $43 000 per municipal LEED building.Additionally, the growth of the green building industry in Seattle has contributed totheir economy.


The example of Seattle is included here in order to demonstrate the power ofmunicipalities in encouraging green design through municipal buildings. While the onlyofficial green building mandate in Seattle applies to municipal facilities, the incentivesprovided for private buildings, as well as the example of best practices found in Seattle’sbuildings, have been able to encourage further adoption by the private sector. Anothermajor lesson to draw from the Seattle example is the way that the economy and greenbuilding industry can be developed through green building policies and regulation.

London, UK

London, capital city of both England and the UK, is the most populous city in theEuropean Union, with a city population of 7.5 million and almost 14 million in thegreater metropolitan area. For years, London has been one of the leaders insustainability in many sectors, particularly in the built environment. Their use of qualityof life indicators to monitor progress in many sectors has led the way for indicator usein many other cities around the world. In particular, London has been one of the largestand most prominent cities to use the Ecological Footprint model to monitor theenvironmental impact of all systems in London.

The Mayor of London, Ken Livingstone, has spoken publicly on many occasionsregarding his commitment to reducing the carbon dioxide emissions from the buildingsector within London. In one press release, he stated, ‘Energy used and wasted inbuildings in our city is responsible for the majority of carbon dioxide emitted in London.If this city is to play its part in tackling climate change, the buildings we constructtoday have to be fit for a low-carbon future—designed and built to run on renewablefuels and to be highly energy efficient.’


P Incentives: While the London green building programme focuses on voluntaryimprovements and outreach, there are several components of policy and regulations.The Mayor of London and British Gas have partnered to encourage insulation ofwall cavities and attics. In particular, they have arranged discounted prices with

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specific insulation installers, in return for advertising the services on websites andin other promotional materials. Additionally, they are offering £100 rebates andinterest-free 12-month loans, in addition to already reduced prices. For low-incomeor disabled residents, insulation is free.

P Environmental Performance Certificate: In August 2007, London implemented aHIP (Home Improvement Packet) and EPC (Environmental PerformanceCertificate) programme. HIPs will need to be prepared and presented to prospectivebuyers for all properties of three bedrooms and larger. Smaller homes will be phasedin over the coming years, as the number of qualified energy assessors increases. By2009, all homes that are bought and sold will need to have HIPs. The HIP willcontain all necessary legal documents, as well as an EPC, which rates a building ona scale from A to G. The final score is actually composed of two separate ratingsfor energy efficiency and carbon dioxide production, taking into account age,location, size and condition of the building, with the average London home receivinga D or E rating. The EPC also contains information regarding potential forimprovements

Before implementing the HIP and EPC scheme, the city of London contractedthe Energy Saving Trust to conduct a survey regarding the impact of such EPCs.They found that 70% of buyers considered energy efficiency to be important whencomparing homes and 30% said specifically that they would change their decisionsbased on EPCs. These buyers were willing to pay up to £10 000 more for a homethat scored higher in its EPC.

Demonstration buildings and development

The new London City Hall, built in 2002 along the River Thames, runs on roughlyone-quarter of the energy consumed by a typical office building. The building is nearlyspherical in shape, to minimize surface area to volume ratios for reduced solar heatgain and heat loss. The building leans towards the south, so that higher floors shadeall south-facing windows. Geothermal systems cool the building, while photovoltaicsprovide electricity. All windows are operable, low-E (low emissivity), triple glazed, andclad with shading devices.

Additionally, Ken Livingstone, Mayor of London has promoted the developmentof ZED (zero-emissions development), or zero-carbon development, areas.Beddington ZED, or BedZED, is the UK’s first carbon-neutral community inHackbridge, South London, completed in 2002. The development contains 82residential homes and many office facilities, and was designed not only to besustainable in terms of energy and water usage of buildings, but also to fostersustainable living through Green Transport Plans for all residents and mixed usedevelopment to minimize the need for transportation.

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BedZED’s buildings were designed with emphasis on natural daylighting and passivecooling, which are complemented by solar photovoltaic systems for energy generation.A combined heat and power plant was fuelled by wood waste from nearby areas. Wastewater is recycled throughout the development, and building waste was minimizedthrough the design and construction phases.3

Another example is the recently planned Gallions Park area in the Royal Docks inEast London, which will be a 200-home unit, with all homes designed to highestefficiency standards and energy demand being met with a combination of renewableenergy sources.

The competition for the development of this area was fierce, with seventeen separateconsortia of developers, architects, and master planners joining to create visions forZED areas. This competition and the outreach leading up to it were able to encouragethe development industry to think towards a carbon neutral future. The LondonDevelopment Authority held an exhibition of all of the six shortlisted designs submittedto the competition, in order to share the innovative ideas with the public.

Monitoring

The ecological footprint assessment measures the total land area necessary to supporta city’s metabolism, including food generation, waste disposal, energy generation, andbuilding materials. In order to calculate this ecological footprint, London monitors sub-indicators, including tonnage of building materials used and wasted, total wastegeneration, and recycling, total energy consumption and percentage of renewable energysources, total passenger kilometres travelled and percentage by car and publictransportation, total food consumption, including percentage imported from outsidethe UK.

London also uses a list of 55 Quality of Life indicators, including 20 headlineindicators and 35 additional indicators to monitor urban sustainability. These indicatorsrange from environmental indicators (household recycling rates, total carbon emissions,air quality, bird populations, CO2 emissions per gross value added) to economic andequity indicators (child poverty, unemployment variation by ethnic group, educationrates) as well as overall neighbourhood satisfaction.

Outreach and penetration

London has been very successful in utilizing popular celebrities and athletic teams toraise awareness about sustainability issues and climate change. Additionally, the Cityof London has partnered with many organizations to encourage the development ofexemplary green buildings. One such example is the very recent partnership with thetheatres of London to reduce their carbon emissions.

3 www.energysavingsecrets.co.uk/bedzed-the-uks-biggest-eco-community.html

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The Mayor of London had helped launch an energy-efficient lighting scheme forone of London’s largest theatres, the National Theatre, but also partnered with theArts Council England, the Theatres Trust, the Independent Theatre Council and severalother groups to create a Climate Action Plan for London Theatre. These groups willhelp fund energy audits for all of London’s theatres and assess which efficiency measureswill be most beneficial, primarily focusing on lighting and insulation. Transport fortheatre-goers will also be addressed.

This programme is particularly interesting as London is known worldwide for itshistorical and present theatre offerings, and theatre contributes significantly to theLondon economy, tourism, and culture. For this reason, using the theatre industry asa demonstration of efficiency will allow many more people to be exposed to green designstrategies.

Additionally, the City of London has provided capital funding through a CommunityEnergy Programme to a few specific community development projects inneighbourhoods throughout London, including Grahame Park and New Wembley.Grahame Park is a large community redevelopment project, including 3400 homes andintegrated community facilities, while New Wembley includes London’s major stadiumand surrounding land development associated with London’s 2012 Olympic bid. Byhelping developers create integrated communities that utilize green design andsustainable energy sources, the city of London is able to provide examples of communitydevelopment for future development.


One lesson from London’s outreach is that cities can effectively focus first on greeningthe industries that are most prominent, either in terms of economic, environmental, orcultural impact. With certain projects (insulation incentives and demonstration projectsat Wembley Park), this required a significant financial outlay by the government that maynot be feasible. However, this could be applied by simply focusing outreach into mostsignificant industries and does not necessarily require any additional financial inputs.

While market response may be different in the Indian context based on climatechange and energy efficiency awareness, the lessons from the London EnvironmentalPerformance Certificate surveys indicate that there is a great demand for more efficientbuildings, and efficiency labelling can have a significant impact. As successes withappliance labelling have demonstrated, buyers can make more informed decisions onlywhen that information is readily provided.

National best practices

This section attempts to look at the various initiatives at policy level, financial incentives,and other instruments to give a fillip directly or indirectly to sustainable/green buildingsmovement in the country.

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Ministry of New and Renewable Energy

The MNRE (Ministry of New and Renewable Energy) is the nodal ministry of theGovernment of India for all matters relating to new and renewable energy. The broadaim of the ministry is to develop and deploy new and renewable energy forsupplementing the energy requirements of the country. Table 1 gives an overview ofthe kind of incentives made available under the MNRE Sources’ schemes.

Interest subsidy is paid by the MNRE to banks through IREDA (Indian RenewableEnergy Development Agency) after receipt of documents on installation of systems.The loan available is currently up to 85% of system cost, and is repayable within fiveyears.

SWH incentives by electricity boards and municipal corporations

A number of electricity boards in India have taken measures to promote SWH (solarwater heating). Some of these measures are elaborated as under.

West Bengal State Electricity Distribution Company Ltd

WBREDA (West Bengal Renewable Energy Development Agency) partnered with theWest Bengal State Electricity Board (the earlier version of WBSEDCL) to create anincentive programme for the installation of SWH systems. Consumers who purchaseand use an SWH system will be eligible for a 40 p/kWh reduction in their electricitytariff, up to 200 units (totalling Rs 80 per month). This would apply to electricity billsup to two years after installation, totalling Rs 1920 over 24 months. After SWH systemsare sold, WBREDA would inspect the installation and use, and submit a copy of theuser’s electricity bill, along with the approval paperwork to the electricity company(WDBSD or CESC). WBREDA would pay the electricity companies Rs 1920 as a one-time payment for each beneficiary.

Rather than adjusting each electricity bill for 24 months, the companies agreed tocredit consumers four times over the two-year period, making the system basically along-term rebate.

Karnataka Power Transmission Corporation Ltd

In Karnataka, the PTC (Power Transmission Corporation) agreed to give a 15-paisediscount per unit of energy off of electricity tariffs for consumers who have installedand are using solar water heaters.

Rajasthan State Electricity Board

In Rajasthan, once a consumer has brought proof of purchase to the office of theassistant engineer, within 15 days, an employee of the RSEB (Rajasthan StateElectricity board) will come to inspect the installation and physically check that the

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Table 1 Programmes and incentives by the MNRE

Programme

Solar water

heating

system

Solar air

heating/

steam

generating

system

Solar

buildings

Akshay Urja

shops

SPV

systems in

urban area

Item/Activity

Domestic

Institutional

Industrial and commercial

Service charges to FIs/banks

Incentive to motivators

Performance monitoring by SNAs

Incentive to municipalities and

municipal corporations

Other activities

Solar steam generating system

Flat plate collector based solar

air heating system

Service charges to

implementing agencies

Other activities

Preparation of DPRs (detailed

project reports)

Demonstration solar buildings

Other activities

Soft loan through public sector

banks

Monthly recurring grant for 2

years

Monthly incentives for 2 years

Service charges

BIPV systems (max. 5 kWp

module)

Solar power packs (max. 1 kWp

module)

Incentive/Support

Loans @ 2% interest rate



Rs 200 per loan disbursed

Rs 100/- per m2 of collector area installed

Rs 50/- per m2 of collector area visited

Rs 5.00 lakh and Rs. 10.0 lakh

respectively on notifying amendment in building bye-laws.

Financial support for seminars / symposia / workshops/business

meet/exhibition; training programmes; publicity and awareness

technology upgradation and exposure visits abroad; and studies/

surveys on case by case basis.

50% of cost limited to a maximum of Rs 5000/- per m2 of dish area for

non-profit making organizations

35% of cost limited to a maximum of Rs. 3500/- per m2 of dish area for

profit making organization

50% of cost limited to a maximum of Rs. 2500/- per m2 of collector

area for non-profit making organization

35% of cost limited to a maximum of Rs. 1750/- per m2 of FPC area for

profit making organization

3% of MNES support

Financial support for publicity and awareness; seminars /workshops/

symposia / business meet; Training programme; technology

upgradation; and studies/surveys on case-by-case basis

50% of the cost of DPR to a maximum of Rs 2.00 lakh

10% of the cost of construction to a maximum of Rs 50.00 lakh

Financial support for workshops, seminars, and publication of

documents on case-by-case basis.

7% interest rate to a maximum of 85% of cost of shop for

establishment

Rs. 5000/- per month subject to certain conditions through SNAs

Rs. 5000/- per month subject to certain conditions through SNAs.

Rs. 50,000/- per shop to SNAs with 50% to be spent on publicity

@ 2% to IREDA on interest subsidy disbursed

@Rs. 5,000/- per loan disbursed to banks

50% of cost subject to maximum Rs 2.00 lakh per kWp

50% of cost subject to maximum Rs 1.00 lakh per kWp

FI – financial institution; SNA –state nodal agency; FPC – flat plate collector; DPR – detailed project report;

SPV – solar photovoltaic; BIPV – building integrated photovoltaic

Source MNRE

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SWH has been installed appropriately. Once this has been approved, this informationwill be passed to the billing agency to grant a rebate of 5 paise per unit of electricitypurchased. It will begin from the date of installation approval and continue to be grantedin all future energy bills.

The RSEB will inspect the SWH system annually, and if it is shown to be defectiveor out of use, the rebate will cease. Additionally, the consumer is required to informthe RSEB if the system becomes defective or if it is removed. Once the defect is repairedor a new system installed, it will be inspected again, and the rebate will begin again.

Uttarakhand Electricity Regulatory Commission

In 2005, the UERC (Uttarakhand Electricity Regulatory Commission) introduced amonthly rebate of Rs 50 for all consumers who installed SWH systems. The consumerwould have to present an affidavit to his/her electricity company demonstrating thatan SWH system had been installed and was being used.

Thane Municipal Corporation, Maharashtra

As discussed above, the TMC (Thane Municipal Corporation) has made it mandatoryto install SWH systems in all new buildings and in all buildings to be renovated. It isalso now mandatory to install SWH systems in existing commercial or utility buildings,as well as government and semi-government buildings. However, financial incentivesexist for installation in residential buildings.

Existing domestic buildings that have SWH systems will receive property taxdiscounts as long as the system remains operational (to be inspected annually). Theowners or housing society will be given a 10% discount in the payment of yearlyproperty tax.

Eco-housing, Pune

The Eco-housing programme, launched by the PMC (Pune Municipal Corporation)promotes the adoption of environment- friendly practices, energy-efficient products,and techniques by the construction industry. Applicable to the housing sector, it offersfinancial benefits, environment, community and infrastructure benefits, and benefitsassociated with health and increased productivity as compared to conventionalbuildings.

The Eco-housing assessment criteria for Pune city was developed by the IIEC(International Institute for Energy Conservation) in association with TERI (The EnergyResources Institute), and STP (Science and Technology Park) under technical assistancefrom USAID (United States Agency for International Development). Criteria are madeup of a combination of voluntary and mandatory measures. It is a 1000-point systemthat incorporates 88 measures. A minimum of 500 points are required to qualify forEco-housing certification.

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The criteria are applicable to residential buildings/building complexes and single-familyresidences.

To encourage developers to adopt eco-friendly techniques, under the ‘Eco-HousingCertification Programme’, the PMC is offering 50% rebate in premium chargesincurred from developers while granting building permission. While 25% rebate willbe granted while giving building permissions on verifying the documents and site visits,the remaining will be given after completion of the project.

Global programme on energy efficiency through building retrofits under the Clinton Climate Initiative

The CCI (Clinton Climate Initiative) is a Clinton Foundation project dedicated tomaking a difference in the fight against climate change in practical and measurableways, initiating programmes that directly result in substantial reductions in heat-trappingGHG emissions.

In August 2006, the CCI joined with the Large Cities Climate Leadership Group,or C40, an organization comprising most of the largest cities in the world, which havepledged to reduce GHG emissions. The CCI will assist the large cities in the group inreducing emissions and increasing energy efficiency by using the same business-orientedapproach that has made other Clinton Foundation initiatives successful. On 16 May2007, the CCI announced the Energy Efficiency Building Retrofit Program, whichbrings together eight of the largest energy savings companies, five global banks and 16cities in a landmark programme designed to reduce energy use in existing buildings.Salient features of this programme include the following.P Participating cities in the programme from India: Delhi, MumbaiP Creates a purchasing consortiumP Mobilize the best experts in the world to provide technical assistanceP Creates and deploys common measurement and information flow toolsP Creating building codes and standards

TERI’s role

P The role of TERI is to expedite and propagate the initiative by engaging meetingsbetween the building owners with CCI and ESCOs.

P Identify public and private sector building owners in Delhi and Mumbai who wouldbe interested in making their buildings energy efficient in association with CCIrepresentatives.

P Review the performance contract agreements as prepared by the CCI.P Set up meetings with the representatives of identified ESCOs and financial

institutions to understand the mechanisms set up to identify, scope and implementprojects.

P Review the energy audit report and suggest modification if required.P Discuss and finalize financial mechanism to be followed for implementation.

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P Coordinate where necessary, the carbon revenue aspect for building energy efficiencyprojects.

Identifying the sustainability parameters for buildings

Sustainability goals

Given the current status of buildings in India, the high growth rate of construction(10% on an average) and the piecemeal approach being adopted across the country,there is an urgent need to streamline the efforts in greening the buildings. With thisbackground, the following goals are being aimed at.P The new stock of buildings (residential and commercial) should be built on the

principles of green/sustainable buildings.P The existing stock of buildings should be retrofitted as far as possible to make them

green buildings.

Basic research framework

Based on the above discussion and earlier discussed definitions of green/sustainablebuildings, the following parameters need to be considered to make a buildingsustainable.P Site planningP Building envelope design, including optimal design of roof, walls, and windows in

order to reduce heat gain during summers and heat loss during wintersP Passive architectural systems design to reduce dependency on electrical/energy-

intensive comfort systemsP Optimized building system design for minimal energy consumption (HVAC, lighting,

electrical, and water heating)P Integration of renewable energy sources to generate energy onsiteP Optimization of building and surrounding (site) water consumptionP Water and waste management, including resource recovery from waste (through

segregation, recycle and reuse) and recycling and reuse of waste waterP Selection of ecologically sustainable materials, including locally available / used

materials, including high recycled content materials, materials with high possibilityof recycling

P Indoor environmental quality, including noise levels and indoor air quality levelsP Water quality

There are a number of measures such as building codes, policy interventions,labelling, appliance standards, various kinds of incentives, capacity building, andeducation campaigns to streamline efforts to achieve sustainability in the building sector.To achieve the aforementioned objectives, a number of parameters were observed inthe building policies and regulations for sustainability principles such as the following.

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P Minimum energy/building performance standardso Appliances/equipmento Buildings

P Labelling of energy performanceo Appliances/equipmento Buildingso Green building rating and certification

P Financial incentivesP Industry capacity building

o Centres of excellenceo Energy performance benchmarkingo Sponsored R&Do Building audit programmes

P Leading-by-example programmeso Demonstration buildings

P Policy enforcement infrastructureP Water managementP Waste managementP Sewerage management at building levelP Awareness

To further analyse and validate the parameters for assessing sustainability inbuildings, the following set of questions were shortlisted for testing based on theliterature review and study of best practice.P Policy and regulatory framework at the national, state, and city levelP Existing approach towards design and constructionP Existing checklist followed at the building approval stage by the local governmentP Existing practices with respect to rainwater harvesting, waste management and

renewable energy at building levelP Use of traditional/vernacular architecture and local building materialsP Access to building rating and verification systemsP Awareness about sustainability concepts among the building professionals, industry

and users

Analysing the existing situation: buildings

To test the robustness of the building sector sustainability parameters in the Indiancontext, the application of these parameters needed to be tested in a typical Indiancity. But India’s social, cultural, political, geographical, and scientific diversityensured that no one city can or ever will represent the ‘Indian context’ or a ‘typical

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Indian city’. Therefore, several cities were studied (based on earlier published work,earlier experience of TERI, city visits) to assess the parameters’ applications.

This section is structured in a manner such that each of the parameters is addressedone at a time and used to construct the existing scenario. This consequently helps usunderstand the lacunae, best practices, gaps, obstacles, and so on, in the city’s buildingsector when assessed from a sustainability perspective.

Building sector observations

Policy and regulatory framework at the national, state, and city level

Every nation needs a strong regulatory framework to guide its building sector towardsthe desired goals. In India, there are a number of central, state and local bodies thatdevelop and implement building codes, standards and benchmarks.

National-level building codes/regulations

P The Bureau of Indian Standards’ NBC (National Building Code) covers all aspectsof building design and construction; this serves as a guiding code for allmunicipalities and development authorities to formulate and adopt building bye-laws. First established in the early 1980s, the code has been revised last in the year2005. However, energy efficiency elements have not been covered comprehensivelyin the new version as well.

P The Energy Conservation Act 2001 provides for the establishment of state energyconservation agencies to plan and execute programmes. The Act led to the formationof BEE (Bureau of Energy Efficiency) that formulated the ECBC (EnergyConservation Building Code). It targets building energy efficiency and wasintroduced in the year 2007. This is the nation’s first building energy code and aimsto have a major impact on energy efficiency in buildings. It is a voluntary code forall buildings with a connected load of 500 kW and most likely to become amandatory code. It covers minimum requirements for building envelope performanceas well as for mechanical systems and equipment, including HVAC system, interiorand exterior lighting system, service hot water, electrical power and motors in orderto achieve energy efficiency in different climatic zones of India. The integration ofthis national code with the city level initiatives (building bye laws) is completelyabsent at present.

P The MoEF (Ministry of Environment and Forests), EIA (environmental impactassessment) and clearance are a mandatory requirement for all buildings with a built-up area above 20 000 m2 and such projects have to be apprised by the MoEF’sEACs (environmental appraisal committees) and the SEACs (State EnvironmentalAppraisal Committees). Monitoring and verification of the compliance ofcommitments given by the builders/contractors is completely missing.

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P The MNRE has initiated several programmes focusing on the utilization of renewableenergy sources in buildings (Table 1). The benefits are not being fully utilized dueto various reasons such as low awareness, inhibitions, and lack of trained manpower.

P The Sustainable Habitat Mission under the National Action Plan on Climate Changewas launched by the Prime Minister, Mr Manmohan Singh, on 30 June 2008. Itencompasses a broad and extensive range of measures, and focuses on eight missions,which will be pursued as key components of the strategy for sustainable development.

These include missions on solar energy, enhanced energy efficiency, sustainablehabitat, conserving water, sustaining the Himalayan ecosystem, creating a ‘Green India’,sustainable agriculture and, finally, establishing a strategic knowledge platform forclimate change. For the habitat mission, the strategies proposed aim at promotingefficiency in the residential and commercial sector through various measures such aschange in building bye-laws, capacity building, research and development in newtechnologies, education and awareness, and so on, management of municipal solidwastes, and promotion of urban public transport.

This mission is still in its infancy and implementation has yet to start.P The BEE has several programmes to set labels and energy-efficient standards for

refrigerators, air conditioners, motors and other appliances. Labelled products havebeen in the market since 2006. In a move to manage energy demands, BEE hasmade star rating for energy efficiency mandatory for a host of electrical appliancesfrom 20 September 2008. The implementation of this mandate is yet to be seen.

State-level regulations

Building bye-laws in India fall under the purview of state governments and vary withadministrative regions within the state. These are guided by the central national buildingcodes and a state’s innovativeness and vision. However, there is a general lack ofintegration of all the building codes. Besides, state specific inputs on energy efficiency,water conservation, and other aspects of sustainability are currently missing.

City-level regulations

A city has a final set of building guidelines in the form of building by- laws, which arefinally implemented at town and city level by the respective development authoritiesand municipal corporations/municipalities. These bye-laws, however, currently have notbeen able to integrate the ECBC provisions and other sustainability parameters.

Rating systems

Building rating systems are a popular tool to bring momentum in achieving energyefficiency and sustainability in buildings. The country has currently two rating systemsnamely, LEED and GRIHA.

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Leadership in Energy and Environmental Design: LEED Green Building RatingSystem™, developed and managed by the USGBC, is the most widely used ratingsystem in North America. Buildings are given ratings of platinum, gold, silver, or‘certified’, based on green building attributes. LEED is evolving rapidly; in the UnitedStates, at least nine types of specific programmes exist, including those for newcommercial construction and major renovation projects, existing building operation andmaintenance, commercial interiors, homes, schools, neighbourhoods and retail. USGBCis also developing LEED® for Healthcare, and LEED for Labs.

The IGBC (Indian Green Building Council) founded by the collaboration betweenthe CII (Confederation of Indian Industry) and the private manufacturer Godrej, hastaken steps to promote the green building concept in India. Currently, the IGBC isfacilitating the LEED rating of the USGBC in India. LEED-India was launched in2001 and rates buildings on environmental performance and energy efficiency duringthe design, construction, and operation stages.

Green Rating for Integrated Habitat Assessment: The MNRE has adopted anational rating system – GRIHA – which was developed by TERI. The GRIHA ratingsystem takes into account the provisions of the National Building Code 2005, theEnergy Conservation Building Code 2007 announced by the BEE and other IS codes.This was developed as an indigenous building rating system, specifically aimed at non-air conditioned or partially air-conditioned buildings. GRIHA has been developed torate commercial, institutional and residential buildings in India emphasizing nationalenvironmental concerns, regional climatic conditions, and indigenous solutions.

GRIHA stresses passive solar techniques for optimizing visual and thermal comfortindoors and encourages the use of refrigeration-based and energy-demanding airconditioning systems only in cases of extreme thermal discomfort.

Rating systems adoption is restricted to a few metropolitan cities only and there isa general lack of awareness. It also lacks any incentivization programme on part of thegovernment.

Conclusion

It is observed from the above that though a number of policy instruments and strategiesto encourage or mandate green buildings directly or indirectly do exist or are in theinception stages. However, there is a major gap between these written documents,implementation and actual action or changes in building design and construction. Forexample, there is currently no concrete plan for implementation of the ECBC code atcity level, its monitoring or verification. There is frequent flouting of the EIA normfor large constructions. There is a general lack of central unifying theme of promotinggreen buildings. Efforts adopted are mostly scattered and there is a general absence ofintegration among various ministries, departments and state governments. Existing

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policies related to building bye-laws are complex and divided between many governmentdepartments at state and central level, therefore there is a need to simplify andcoordinate building byelaws and building policy.

Implementation barriers

A number of implementation barriers exist even with the prevailing set of policyinstruments at various levels, which has hampered the popularization of green buildingson a large scale. Some of these barriers are as follows.P The implementation and monitoring mechanism with the existing laws and

regulations are very weak.P Integration of building energy code, NBC, and so on, with the building bye-laws is

still missing.P The central and state government building and construction projects follow very

old specifications and need urgent revision.P The existing capacity of the state-level and urban local bodies is not sufficient to

cater to adapting and implementing the energy code/revised building bye-laws.P Developers do not benefit directly by incorporating green building features in new

developments, especially in the residential sector. Thus, with the lack of incentivesfor builders to integrate environment-friendly features in their construction, theadoption of green building features is restricted.

P A general apprehension among the stakeholders over high initial cost and lack oflife cycle approach to carry out cost benefit analysis acts a major barrier.

P The existing market mechanism/structure is not guided towards sustainable/greenbuildings. As a result, there is a dearth of products and appliances at cost-effectiverates in the market.

P The building construction industry is also currently ill equipped to execute the greenbuilding design effectively. This also acts as a barrier in implementing green designs.

P There is increased influence of western (steel and glass) architecture for commercialuse, which is not conducive to Indian climate. TERI studies show that several suchbuildings need to be cooled even during the winters.

P The existing status of research in green building materials, equipment, systems, andtechnologies is weak. Even at centres and institutes where such initiatives do exist,there is no mechanism to popularize the research findings in the market. Significantinvestments are required to push the market development further and faster. Theexisting market for green products is non-competitive and is under the monopolyof a few companies.

P Lack of technical, economic, and general knowledge about green buildings amongbuilding designers, engineers, architects, developers, investors, policy-makers,financial market and consumers is one of the major barriers to green buildingmovement in India.

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Existing approach towards design and construction

The existing trend among architects, designers, and engineers is towards followinginternationally famous designs. This is further exacerbated by the consumers whodemand for replicas of western architecture, not conducive to Indian climatic conditions.Even the existing curriculum followed in engineering and architecture colleges doesnot have any component of sustainability. As a result, their mind set is not tuned towardsfollowing an integrated approach towards sustainable building design.

As far as governance of buildings in cities and urban centres is concerned and theinstitutional structure which looks after the building approval, a typical representationis given by Hyderabad as under.P The prime government agencies involved in the building sector in Hyderabad urban

agglomeration are HUDA (Hyderabad Urban Development Authority), GHMC(Greater Hyderabad Municipal Corporation), and various municipalities

P All the residential building permissions in the GHMC limits are directly given bythe GHMC and in the rest of the municipalities, by the respective municipality.

P All the commercial and institutional building permissions come to HUDA fortechnical approval. After its technical approval HUDA forwards them to respectiveULBs for its final sanction.

P The existing bye-laws as well as the master plan remain silent about energyconservation in buildings. The only provision as far as ‘green buildings’ is concernedare in the form of SWH (compulsory in all new hospitals, hotels, guest houses, publicbuildings) and optional in individual buildings (rebate of 10% on property tax).Rebate of 10% on property tax for buildings is also given if exterior lights are solarbased.

P A lack of coordination among these various bodies is a common phenomenon.

An exception to the above institutional structure is also observed in a few urbancentres such as Shillong. There is no established, formal system of governance inShillong, under which building sector related activities may be managed, monitored,and controlled. The bodies that are involved with urban level activities are as follows.P The Directorate of Urban Affairs is involved with the state-level activities such as

infrastructure development, civic amenities, and budgetary allocation to the urbanareas.

P The Meghalaya Urban Development Authority is an autonomous body, similar infunction and power to the Delhi Development Authority. They are responsible forthe development and implementation of the master plan, approval of architecturalplans for construction / expansion, allocation of space for expansion, zoning, andso on. They are also responsible for checking illegal developments.

P MUDA (Meghalaya Urban Development Agency) is solely responsible for povertyalleviation, employment, and so on.

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MUDA officials are not authorized with enough power to take suitable action againstdefaulters, since the local governance system tends to intervene on their behalf andcan influence the politicians to waiver any legal action that may be planned by MUDA.

This brings up the local governance system that exists in Shillong. This traditionalsystem (known as the Darbar Shnong) exercises great power among the localpopulation. This system is not recognized by the Government of India as a formalsystem of governance. The integration of local governance with the formal system couldbring rich dividends in such a set-up.

Conclusion

In most Indian cities, the existing primary approach towards design and constructionremains similar. There has been a shift to the so-called modern architecture, which isusually universal in its use of resources, energy consumption pattern and aesthetics.Besides, there is a lack of coordination among the local bodies (corporation/municipalityand Development Authority).

Existing checklist followed at the building approval stage by the local government

The procedure followed at urban level is more or less the same in all Indian cities andtowns; the only difference is in the number of criteria being checked by the ULB. Whena client submits the various drawings/plans for approval to the ULB, a checklist is runthrough in consonance with the city’s bye-laws and regulations and the pre-constructionstage permission is given by the ULB. The building goes through a number ofinspections (not specified) during the construction stage to further check thecompliance. Once the construction gets over, the client applies for occupancy certificatewhich is given after further verification of various aspects.

This parameter has been selected as a sustainability parameter because this has thepotential to integrate and implement the necessary amendments in the bye-laws, basedon the principles of green buildings.

The following parameters are often looked at during building approval stage.P Prescribed forms and documentsP Conformity with other acts and regulationP· Requirements of siteP Amalgamation and subdivision size restrictingP Internal road widths in layoutsP Common plotsP Uses permissible as per road widthP Minimum areas of building unitP Permissible FSIP Maximum permissible heightP Maximum permissible built-up area

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P Minimum requirement of marginal open spacesP General building requirementsP ParkingP Zoning regulations

None of the above parameters directly addresses the sustainable building activity,including aspects such as energy conservation through appropriate building design andtechnologies, water management, waste water and solid waste management at buildinglevel, and use of local building materials.

Conclusion

Building approval process remains the same in all the urban centres by and large (inthe jurisdiction area of formal governance system). However, the checklist followedvaries from city to city. The parameters checked as of now, however, do not encompassany of the sustainability parameters in buildings, especially energy related. Anysustainability measures, if introduced by the local government, could well be integratedwith this checklist and can be implemented at design stage to some extent.

Existing practices with respect to rainwater harvesting, waste management, and renewable

energy at building level

Among the basic features of a green building, there are three aspects – rainwaterharvesting, waste management, and renewable energy – on which there are few effortsand measures already being taken by the government with varying success rates. Thesemeasures hold the potential to successfully integrate with the broader agenda ofgreening the buildings. This parameter has, therefore, been selected for investigation.

Water has traditionally been harvested in India with our ancestors perfecting theart of water management. However, with time, modern planners and designers forgotthis art of water management and led to a serious water crisis in various parts of thecountry. There has been a renewed interest taken by individuals and governments (stateand city) who have taken some steps in this regard to revive this culture of waterconservation. Some governments have been proactive in passing legislations to achievethis. Some such initiatives have been taken in cities like New Delhi, Indore, Hyderabad,and Chennai. States like Haryana have made rainwater harvesting mandatory in allnew buildings, irrespective of roof area, whereas Rajasthan has made rainwaterharvesting mandatory for all public and establishments and all properties in plotscovering more than 500 m2 in urban areas. Indore gives a rebate of 6% on propertytax as an incentive for implementing rainwater harvesting systems. However, the successrates of such initiatives vary from place to place. For example, in Hyderabad rainwaterharvesting was widely accepted initially but soon people became averse to it due tovarious reasons. Some of them being the concept have been incorporated in various

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legal documents without any due acknowledgment to the geological strata of the city(which is rocky); maintenance of the pits and storage wells is not done nor there anymechanism to do so.

With regard to use of renewable energy, local bye-laws have been developed inmany cities to encourage the use of renewable forms of energy. Cities like Bangalorehas mandated for SWH (100 litres per day per ‘unit’ specified) in the followingtypes of buildings: restaurants with a seating/serving area of more than 100 m2

(unit is 40 m2 of seating area); lodging accommodation and tourist homes (unit isthree rooms); hostels and guest homes (unit is six-persons capacity); industrialcanteens (unit is 50 workers); nursing homes and hospitals (unit is 4 beds);community or convention halls with kitchen and dining facilities (unit is 30 m2 offloor area); and recreational clubs (unit is 100 m2 of floor area). For residentialbuildings, each single dwelling unit with more than 200 m2 floor area or 400 m2

site area is required to have a 100 litres per day unit, and multi-dwelling units orapartments are required to have 500 litres per day for every 5 units. It has alsomandated solar photovoltaics for multi-unit residential buildings (with more than5 units) for lighting set back areas, driveways, and internal corridors. Similarly,Thane has made it mandatory to install SWH systems on all new buildings and inall buildings to be renovated. It is also now mandatory to install SWH systems inexisting commercial or utility buildings, government and semi-governmentbuildings. Cities such as Hyderabad, Rajkot, and Nagpur have also similarprovisions. Further to this, few states such as Haryana and Andhra Pradesh havemandated SWH for certain types of buildings and advertisement hoardings.

As regards SWM, none of the cities in India has provisions or mechanism forcompulsory segregation and storage of generated waste. Recycling is entirely doneby the informal waste sector which is not recognized by the formal system (civicbodies). Treatment of biodegradable (organic waste) at household and communitylevel is usually missing. Provisions for construction and demolition waste iscompletely absent. Construction and demolition waste after salvaging therecyclables like wood and pipes usually goes as debris and/or used for filling oflow lying areas. There is no systematic organized system in place to manage suchwaste.

Conclusion

Rainwater harvesting could be successfully adopted with the right kind of awarenessprogrammes, coupled with mandatory/voluntary regulatory measures in the buildingcodes and bye-laws. However, there is a need also to introduce a maintenanceprogramme to make the system work or else it may fail as in Hyderabad. Also, thegeological strata and ground table need to be carefully considered while introducingrecharging provisions in the regulations.

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None of the cities have a formal systematic system of managing and reusing/recyclingthe construction and demolition waste as observed. This needs to be urgently addressedby all cities. Source segregation of generated waste during operational use of buildingsis absent and should be integrated at the design stage of buildings.

There is an overall interest in RETs (renewable energy technologies). However, thegovernment needs to develop some incentives and/or easy financing to meet theincremental cost of such systems. Given the right kind of push, the use of RETs cantake off well.

Use of traditional/vernacular architecture and local building materials

Vernacular architecture is our starting point and is similar to the flora and fauna of aregion. It springs from the ground like the wild flowers, perfect in its use of material,sitting and taming of the weather. It also embodies the local lifestyle and its process ofevolution is completely unconscious (Kamiya 2003).

Vernacular architecture is strongly tied to culture and social traditions. It is built tomeet specific needs, while accommodating the values, economies, and ways of life ofthe cultures that produce them (Oliver 1987). The word ‘vernacular’ derives from theLatin word ‘vernaculus’, which means native. Hence, vernacular architecture refers to‘native science of building.’ Vernacular architecture is both regionally and socially specific.Each community over the years develops a prototype that responds to local needs and carriesit forward through generations (Oliver 2006). Vernacular architecture is inherentlysustainable and uses various passive strategies to create comfortable conditions insidebuildings and use locally available materials, thereby using less energy thancontemporary buildings. This parameter has, therefore, been chosen as it holds a lotof potential by adapting the best practices of local vernacular architecture andintegrating them with modern architecture to achieve sustainability goals.

Conclusion

A universal shift of architecture towards modernism is observed. Vernacular architecturein spite of its advantages and climate-responsiveness has somehow lost its ground inurban centres. There is a need to repackage the local traditional architecture throughvarious measures and propagate their advantages.

Locally available materials are sometimes not sufficiently promoted due to thepreconceived notions about their quality. Fly ash and other such materials need to bepromoted in a better way in places where they are adequately available.

Awareness about sustainability concepts among the building professionals, industry, and users

Sustainable/green buildings have to be necessarily resource-efficient, including energy.Such buildings have to be built and designed in a way to consume less energythroughout its life. This requires that the people who design and build buildings –

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building professionals, users, and industry (who create the demand for cost-effectivegreen products and appliances) – need to be aware of the benefits and necessity ofincorporating energy-efficient concepts in buildings.

Awareness is an essential requirement for any initiative/ programme to becomesuccessful. A general lack of awareness about the general concept of energy conservationand efficiency, various government policies regarding energy conservation among theusers of various kinds of buildings is observed. The awareness among the governmentofficials about various codes like National Building Codes and the newly introducedEnergy Conservation and Building Code 2007 is also very limited.

The builders to a limited extent know about the advantages of green buildings insome cities like Delhi, Hyderabad, and Mumbai. Big builders are interested toextensively take up various measures to make their buildings greener but look forwardto various incentives and measures by the government as the incremental costs are borneby them but benefits goes to the end-users who are not ready to pay extra.

In most of the urban towns and cities, passive design for cooling/heating was a partof the vernacular regional architecture. However, it has slowly given way to unshaded,air-conditioned glazed buildings, which are very resource inefficient.

The green areas of the urban centres are fast receding, which adds to the urbanheat-island effect.

Conclusion

Passive solar design for heating and cooling is not a regular practice in the urban centres.There is general lack of awareness among the building professionals, as well as consumers,about the advantages of green buildings. The existing market forces also do not promotewider adoption of green products and need immediate remedial measures.

Access to building rating and verification systems

Building rating and verification systems is an effective measure to encourage developersand owners of new and existing buildings to go beyond the minimum. Green buildingrating and certification systems aimed at rating and certifying the comprehensiveenvironmental performance of buildings are winning broader international acceptance.In Asia alone, such programmes have achieved substantial momentum in the past fiveyears in Hong Kong, Japan, Singapore, Taiwan, India, and South Korea. This parameterhas, therefore, been chosen as a sustainability parameter in the given context.

Conclusion

Rating systems are an important tool to bring sustainability in buildings. India has tworating systems—LEED and GRIHA. However, they are completely unknown in mostof the urban centres. Their presence is mostly limited to big metropolitan cities such

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as Delhi, Gurgaon, and Hyderabad. Even in these big cities, the awareness is quitelimited among the building professionals.

Cities in transition

The real estate market has been on a growth and expansion phase ever since 2002.The growth in construction sector has been driven by consistent growth of the economyand business, growing incomes, and aspirations as well as efforts from the governmentand development authorities’ side such as continued investor-friendly policies,rationalization of stamp duties and a mandate for allowing tax incentives on homeloans.

The epicentres of the first high-speed growth in this sector was restricted to ahandful of metropolitan cities, namely, Mumbai, Delhi, Bangalore and to some extentin Hyderabad. However, over the last few years there has been an extraordinary growthin some three dozen smaller locations such as Pune, Kolkata, Ahmedabad, Chandigarh,state capitals, district towns and other smaller locations. As regards sustainability inbuildings is considered, the trend has been same in metropolitan big cities as well assmall towns and cities where there is a growing replication of buildings symbolic ofbig centres till some time ago. Thus, there is an urgent need to strongly propel a greenbuilding programme across the country as a whole.

Recommendations

There is a lot of scope to improve the energy efficiency and overall sustainability ofthe buildings sector in India. Given the current rate of growth in construction industry,which is above 10%, there is an urgent need to direct this development towards thepath of sustainability. Green buildings as mentioned earlier not only improve the energyand resource efficiency of buildings, they also reduce the GHG emissions. Solutionsare there in bits and pieces, but they all need to be organized and implemented in aplanned way to achieve the desired objectives. The following recommendations are,therefore, given to guide the building sector in India to achieve overall sustainability.P Policy instrumentsP Implementation strategyP FinancingP Capacity buildingP Education and awarenessP Public private alliances, corporates and role of government bodies in capacity

building and market transformationP R & D in new construction technologies and materials and establishment of testing

labsP Enforcement and monitoring

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P Baseline developmentP Indicators

Policy instruments

Policy instruments, if properly implemented, are the cheapest and most effective optionto bring sustainability in buildings sector. There are more than 30 policy instrumentsin use across the globe to improve energy efficiency and sustainability in buildings sector.These instruments can be classified into the following four broad categories.

Category A: Control and regulatory instruments

Defined as ‘laws and implementation regulations that require certain devices, practicesor system designs to improve energy efficiency’ (IEA 2005). These instruments couldbe further regulatory normative or regulatory informative.NormativeP Appliance standardsP Building codesP Procurement regulationsP Energy-efficiency obligations and quotasInformativeP Mandatory auditsP Utility demand-side management programmesP Mandatory labelling and certification programmes

Category B: Economic and market-based instruments

As the name suggests, these instruments are based on market mechanisms and containelements of voluntary participation, for example, energy performance contracting,energy-efficiency certificate schemes, JI (Joint Implementation), and CDM (CleanDevelopment Mechanism).

Category C: Fiscal instruments and incentives

Such instruments are aimed at correcting energy prices or providing financial supportto overcome cost barriers.

Category D: Support, information, and voluntary action

Such instruments are aimed at informing consumers and persuading them to changetheir behaviour and attitudes.

An attempt is further made to analyse these four categories and their subcategoriesof policy instruments, their existing status in the country, effectiveness, cost effectiveness,conditions for success and major constraints and scale of operation/action and presentedin Table 2.

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Based on the table, a combination of measures should be employed at various levelsto achieve the desired objectives. A brief detail of the various policy instruments is givenin Annexure 2.

Implementation strategy

An attempt is hereby made to make efforts at both federal and city level. To implementa combination of the above mentioned policies, the following are recommended at thenational, state, and ULB level.

National level

P A national green building policy is required, which can be made part of the NationalUrban Policy by the MoUD. A model legislation should also be introduced at thenational level with scope for all states to make their own state-specific changes.

P All new construction in all the central government ministries should necessarilyfollow green buildings principles. For example, Indian Railways, under the Ministryof Railways, deals with one of the largest rail networks in the world. All theconstruction by this huge ministry should be based on green building concept. Thisministry can develop its own exclusive policy framework for various types ofconstruction (such as railway platforms, commercial complexes, residential quarters,and sheds). This can go a long way in propagating green buildings. Similarly, theMinistry of Defence should also issue a circular or make mandatory provision thatall new construction in their purview be based on green buildings and have a phasedplan for the retrofits of the existing structures as well.

P All the existing buildings of central government ministries should undergo energyand water audits and implement the recommendations in a limited time-frame.

State level

P Each state should adopt the national model legislation on green buildings and askall the development authorities to prepare/modify the building bye-laws byincorporating green building principles. The state should also issue a statutory orderto make a mandatory provision that all public buildings to be built in future will begreen buildings (at least ECBC compliant) and to make a plan for energy and wateraudits of all prominent government buildings, which should be retrofitted with energyand water-conserving measures.

Box 1 Financial incentives in the US

Nationwide incentives for energy-efficiency improvements in buildings, such as home energy-efficiency improvement tax

credits, business tax credits for commercial buildings, business credit for energy-efficient new homes, tax deduction for

energy-efficient commercial buildings.

Source http://www.energy.gov/taxbreaks.htm

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Table 2 Comparative assessment of various policy instruments

Regulatory-informatory instruments

Control and regulatory mechanisms-normative instruments

Policy instrument

Appliance standards

Building codes

Procurement

regulations

Energy efficiency

obligations and

quotas

Mandatory labelling

and certification

programmes

Mandatory audit

programmes

Utility demand-side

management

programmes

Current status

Not existing

Exist but energy

component missing;

other green

elements not

integrated such as

water and waste

management at

buildings level

Not existing

Not existing

Exist in voluntary

form

Mandatory for

certain energy

consumers

In proposal stages

in few states

Effectiveness

High

High

High

High

High

Diverse

High

Cost

effectiveness

High

Medium

High/medium

High

High

Medium/High

High

Conditions for success, major

strengths, and limitations

Requires periodic update of

standards, independent

control, information,

communication and education

Needs strong implementation

and support structure. No

incentive to improve beyond

target

Needs enabling legislations,

energy efficiency and water

efficiency labelling and testing

—

Need to be combined with

other instruments for

increased effectiveness

Most effective if combined

with other measures such as

financial incentives, regular

updates and implementation

of suggested measures; audit

programs should also include

water audits

Most cost-effective in the

commercial sector; need to be

combined with regulatory

incentives, adaptation to local

needs and market research

Scale of

action

National

City level

City level

City level

National,

state, and

city level

National,

state, and

city level

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Energy performance

contracting

Cooperative/

technology

procurement

Energy efficiency

certificate schemes

Kyoto flexibility

mechanisms (JI and

CDM)

Taxation (on CO2 or

household fuels or

water consumption

and waste generation)

Tax exemptions/

reductions

Exist in nascent

stages

Few examples

Does not exist

Exist

Does not exist for

CO2; water tariffs are

very low and do not

reflect the actual cost

Exist in some states

(for renewable only)

Variable

Variable

Medium

Low

Low/

medium

High

Medium/high

High/medium

Not known

Low

Low

High

Slowly picking up due to

absence of mature financial

sector willing to lend,

unsubsidised energy prices

and supportive legal,

financial, business

environment.

Combination with standards

and labelling, need to choose

products with technical and

market potential

Tried in Australia, France and

Italy with mixed results;

suitable for countries which

already have a trading scheme

for renewable energy

Very limited number of such

projects in buildings; need

project bundling, simplified

methodology, information and

awareness about CDM

Cannot be used as energy

prices are subsidized; should

be used for water conservation,

waste management

If properly structured, stimulate

introduction of highly efficient

equipment; water-saving

fixtures, decentralized waste

management, more use of

renewable energy at building

level, low embodied energy

materials, and so on

National and

state level

National

level

National,

state level,

city

National

National

National,

state

State, city

Economic and market-based instruments

Fiscal instruments and incentives

Table 2 Contd...

Policy instrument Current status Effectiveness

Cost

effectiveness



Scale of

action

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P Procurement legislations for energy- and water-saving equipment, appliances, andfixtures should be introduced for all public buildings in at least Class I and Class IIcities by the state government.

P Each development authority should amend the building bye-laws of municipalitiesand corporations coming under their respective jurisdiction in a defined time-frame.

ULB level

P As discussed in earlier sections, the existing policies, incentives, and other measuresrelated to various aspects of building sector are divided between many government

Table 2 Contd...

Policy instrument Current status Effectiveness

Cost

effectiveness



Scale of

action

Public benefit

charges

Capital subsidies,

grants, subsidized

loans

Voluntary certification

and labelling

Public leadership

programmes

Awareness raising,

education,

information

campaigns

Does not exist

Does not exist;

Exist

Exist for energy

audits of key govt.

buildings including

the President’s

house

Very little efforts as

of now

Medium

High/medium

Variable

variable

Low/medium

High

Low,

sometimes

high

High

High/medium

Medium/high

Need independent

administration of funds,

regular evaluation/monitoring

and feedback, multi-year

programmes

Very effective in residential

sector to overcome the high

first cost barrier; risk of free

riders; should be short term

and targeted at specific groups

Need mandatory labelling,

more testing centers, trained

people to do the certification

Mandatory programmes have

higher potential than voluntary

ones. Can be used to

demonstrate new technologies

and practices.

More applicable in residential

sector than in commercial

sector.

National,

state

National,

state, city

National,

State

National/

state/city

National/

state/city

Support, information, and voluntary actions

Source Based on UNEP SBCI (2007)

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departments at national and state level with no representation at city level. There istherefore, an urgent need to make necessary arrangements to coordinate variouspolicies at city level as well.

P Building bye-laws and codes need to be revised and rewritten at ULB level,integrating aspects of green buildings (stated in the earlier section and also discussedin the subsequent section on ‘Framework for broad guidelines/bye-laws amendmentsat ULBs’) and ECBC and various policies at the federal level. This should be donein consultation with all the stakeholders.

P These regulations should include a combination of mandatory rules and voluntaryguidelines such that minimum energy performance standards should be compulsoryfor all new buildings with flexibility in the ways to achieve the same.

P A minimum energy performance/prescriptive requirement should be mademandatory at least for commercial buildings and for high-rise and big residentialbuildings with a built-up area greater than some range.

P Apart from these minimal mandatory requirements, building certification system(such as GRIHA) should be popularized to recognize high-performance buildings.Financial, height and/or density bonuses could be provided to all GRIHA-ratedbuildings.

P Benchmarking and certification of buildings at the time of rental and sale shouldbe put into place and initially should be made mandatory for all commercialbuildings with a built-up area above a certain range. To begin with, the certificationsystem should be simple and just a quantitative assessment of total energyconsumption over the year per square metre.

P Mandatory and subsidized audits (energy and water) should be done for alreadyexisting public buildings, followed by highefficiency retrofit to make them rolemodel/ demonstration projects.

P Mandatory audits could be done for industrial and commercial buildings above acertain built-up area and energy use.

P Voluntary audits of other private buildings should be incentivized throughappropriate measures.

P A new wing should be created in the local government, especially dedicated to greenbuildings or the existing units of energy efficiency cells should be converted (whereverpresent) to a holistic ‘sustainability cell’. This wing would take inputs from buildingcentres (wherever available), research centres, state-designated agencies of new andrenewable energy, besides giving building approval. The cell would also get inputsfrom the sustainability cell at state level (for details, refer chapter on Governance).

P Builders are apprehensive of the incremental cost they bear to build green buildingswhose benefits automatically get transferred to the consumers. This could beovercome once there is enough demand in the market for green buildings, which ispossible through market transformation and a strong education and public outreachprogramme.

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P Action points for small cities/towns: The building sector in small cities/towns ischaracterized by more non-air conditioned buildings, often designed by non-architects. Such cities and towns also have lesser number of trained professionals.Their ULBs have smaller budgets, and their capacity to bring changes at one go isrestricted. Under such circumstances, the following recommendations are, therefore,suggested.• To make necessary changes in the bye-laws incorporating the principles of green

buildings (by the concerned development authority), which should be very simpleand implementable. Priorities could be energy efficiency, SWH, waterconservation, and disaster preparedness, depending on the city/town’s specificrequirements. Minimum prescriptive energy performance of the building shouldnot be introduced in the first stage of implementation. After a span of five/tenyears in stage two, it can be introduced.

• A small cell of trained green building professionals (one of them necessarily beingan architect) is suggested to be appointed at the ULB level. This cell will givefree advice and guidance to people attempting to make green buildings.

Framework for broad guidelines/bye-laws amendments at ULBs

The broad guidelines for framing the sustainable building bye-laws based on the analysisof the existing situation in Indian cities and conclusions drawn from implementableinternational and national best practices are discussed as under.

Water, sewerage and storm water

Water

P Implement designs to use water more efficiently through improved indoor fixtures.• Minimum efficiency regulations to be introduced as part of building regulations• Efficiency labelling of water fixtures, could be taken at the national level. In the

absence of this, a database of common products with their efficiency can bemaintained by the local government (implementing agency).

P Encourage independent provision of water resources, including rainwater harvestingand grey water reuse.• Water recycling and reuse regulations• Mandatory rainwater capture and storage, wherever applicable based on the

geological strata and hydrological conditions of the city

Box 2 Energy advice services in Austria

Austria offers energy advice services to private households that are on the point of making a decision about an investment.

This, combined with financial incentives, has been very effective in raising the overall energy-efficiency achievements.

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• For mandatory rainwater capture and storage, supporting instructions, andguidelines of best practices and maintenance should be provided.

P Develop programmes to minimize sedimentation and improve run-off water qualityfrom construction waste disposal.• Mandatory design for waste-water disposal during construction before building

permits are issued.

Sewerage

P Encourage decentralized sewage collection and treatment (This should be mademandatory in all towns and cities with inadequate centralized sewage treatmentsystems for townships, gated developments, and larger buildings generatingsewage greater than 10 kilolitres per day. Standards for onsite STPs (sewagetreatment plants) should be set.

P Reuse of grey water for irrigation or flushing should be increased, so as to reducethe total volume of waste-water reaching the city’s sewage system; this couldbe incentivized.

P Recommend minimum gradients and pipe sizes for connections to the mainsewers.

P Increase simplicity of the layout of the drainage system.P For townships and neighbourhood-level development where sewage is not

available, mandatory provision of decentralized sewage management system bythe developers.

P For buildings with septic tank system, mandatory guidelines for thespecifications, layout, and management of the generated water are needed.

Storm water

P Encourage infiltration devices to allow water to soak into the ground, which caninclude individual soak ways and communal facilities. Storm water fees could beintroduced, which could be reduced for permeable surfaces like green roofs or soakways.

P Increase provisions for filter strips and swales, which are vegetated features that holdand drain water downhill mimicking natural drainage patterns

P Include filter drains and porous pavements to allow rainwater and run-off to infiltrateinto permeable material below ground and provide storage if needed.

P Decrease impervious surfaces as much as possible through innovative materialchoices and designing landscaping appropriately, for example, reduce propertytaxes for buildings with green roofs. Total paved area should not exceed 25%of the site area.

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P Site layout and surface water drainage systems should cope with events that exceedthe design capacity of the system, so that excess water can be safely stored on orconveyed from the site without adverse impacts.

P Through waste-water-related bye-laws, increase capacity of treatment onsite, so asto reduce the enormous burden on municipal STPs during storm surges.

P Through waste-related bye-laws, reduce improperly disposed waste, so as to reduceblockage of storm-water drains.

Waste

P Include space within commercial and domestic buildings and communities for wastesegregation at the building and community level.• Mandate provision of waste segregation facilities

P Reducing the amount of construction rubble dumped onto private and public lands.• Mandate for storage, collection, and disposal of construction waste.• Encourage reuse of concrete and masonry materials in non-structural applications

P Encourage large and mid-scale developments to treat their own waste, includingsewage waste, biodegradable, and tie up with recycling agencies/informal wasterecycling sector.

Energy

P Develop the local building bye-laws based on the climatic parameters of the city, aswell as existing building guidelines from ECBC, NBC, and the national GRIHAdesign tool.

P Incorporate traditional/vernacular architectural practices with latest technology anddesign (this could be incentivized and/or adequately propagated).

P Reduce the dependence on the existing electricity grid by onsite and buildingintegrated renewables.• Provide incentives – direct subsidies, feed-in tariffs or tax reductions – for

integration of solar or other renewables.P Increase energy efficiency of new construction through design measures and efficient

installed appliances.P Building rating systems (such as GRIHA) could be incentivized for commercial and

high-rise buildings (energy guzzlers such as hotels, shopping malls, and largeinstitutions could be mandated to go for rating systems).

P Increase adoption of proven technologies, especially SWH through implementationmeasures proven in India and internationally.

P Reduce heat absorption through cool roofing materials• Provide incentives for green roofs, reflective paints or other cool roofing methods.

P Encourage energy analysis before building approval is given for large constructions(construction greater than 500 m2 of built-up area.

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Pollution

P Preservation of existing landscape and protecting it from degradation during theprocess of construction by following sedimentation and erosion control measures

P Use of physical barriers/ dust screens (bamboo framework with reused gunny bags)to reduce air pollution outside the construction site

P Preservation of topsoil and reapplication after constructionP Providing air pollution shelterbelts to protect sensitive land uses from air pollutionP Reducing indoor air pollution by regulating material usage

• Limit specific ozone-depleting chemicals or substances with high GWP (globalwarming potential).

• Limit use of paints and sealants with high VOCs (volatile organic compounds)• Encourage alternatives to PVCs in siding and piping.

P Reducing noise pollution• Mandate acoustic insulation for external and/or internal surfaces.

Materials

P Use of materials locally available / climatologically appropriate / renewable/recyclables/ low embodied energy building materials need to be incorporated in thebye-laws (could be a set of mandatory and voluntary guidelines or appropriatelyincentivized) and the following parameters need to be considered.• Composed of renewable rather than non-renewable resources;• Should be environmentally responsible because impacts are considered over the

life of the material;• Climatologically more appropriate;• Efficiency and durability on par or greater than conventional building materials

Disaster preparedness

Based on the vulnerability of the city/urban centre to natural disasters such asearthquake, landslide or flood, the bye-laws should have appropriate components ondesign considerations. For instance, all cities and towns falling under Zone V to ZoneIII of earthquake vulnerability (very high damage risk to moderate damage risk areas)bye-laws should mandate the following.P IS: 1893-2002 ‘Criteria for Earthquake Resistant Design of Structures (Fifth

Revision)’P IS:13920-1993 ‘Ductile Detailing of Reinforced Concrete Structures subjected to

Seismic Forces - Code of Practice’P IS:4326-1993 ‘Earthquake Resistant Design and Construction of Buildings - Code

of Practice (Second Revision)’P IS:13828-1993 ‘Improving Earthquake Resistance of Low Strength Masonry

Buildings -Guidelines’

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P IS:13827-1993 ‘Improving Earthquake Resistance of Earthen Buildings – Guidelines’P IS:13935-1993 ‘Repair and Seismic Strengthening of Buildings – Guidelines’P Where new structures are proposed for improvement of civic facilities, all such

structures should be designed to be earthquake resistant as per the above BIS(Bureau of Indian Standards) codes.

Neighbourhood-level regulations

P Besides the above amendments, certain regulations need to be put in place fornew gated developments, townships, and so on, such as the following.• The layout of roads should be based on the micro-climatic conditions and

facilitate solar passive buildings.• Provision of basic local amenities as per the UDPFI (Urban Development Plan

Formulation and Implementation) guidelines to minimize private vehicle use• Promotion of pedestrian pathways, bicycles, electric vehicles through planning

interventions• Zero discharge of sewerage• Micro-level watershed management and storm water management through SUDS

(Sustainable Urban Drainage System)• Site for solid waste communal storage, processing of organic waste, and

segregation of recyclables• Appropriate plantations to check noise and air pollution• Integration of renewable if possible• Provisions for rainwater harvesting and SWH for the entire layout

Financing

To accelerate the process of green building movement, all ULBs need enoughfinancing apart from various policy instruments to incentivize, build capacityand popularize the movement. Some of the existing mechanisms that couldbe roped in to get finances are briefly mentioned below. Besides these, ULBsalso need to have out-of-box solutions such as a corpus fund to haveself-dependence in furthering the green building movement in their domainareas.

Schemes like the JNNURM (Jawaharlal Nehru National Urban RenewalMission) should have a component on buildings, as this is a very basicinfrastructure and has strong interlinkages with other basic services (already coveredunder the programme). Cities can then apply for green-buildings-related projects(meeting a set of criteria) under the JNNURM.

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Solar city project

This is an MNRE scheme targeting 60 cities in the Eleventh Five-year Plan, with eachapplying city getting a maximum grant of Rs 5 million. Some funding could be takenfrom this project by ULBs.

MNRE incentives

The MNRE provides various incentives to promote the use of renewable energyin buildings. These incentives are presented in Table 1. These need to bepopularized at the ULB level. The proposed sustainability cell at ULB level couldadvise consumers on possible ways to avail of such schemes.

Carbon trading

The effectiveness of carbon trading in the building sector is much lower than expected(Novikova, Urge-Vorsatz, and Liang 2006), because of the high transaction costs fordemand-side projects, which are mostly small and fragmented in this sector. Knowledgegap of carbon trading is also there. To overcome these barriers, there is a need toincrease awareness about the potential for CDM benefits and to bundle CDM buildingefficiency programmes.

Sustainable Habitat Mission (National Action Plan for Climate Change, 2008),which is under preparation, will also have funds that can be availed of by the respectiveorganizations (For more details of this mission, refer to section ‘Analysis ofsustainability parameters’).

Fiscal and financial incentives could be given by various financial institutions.The state government should regularly update the city governments on various

incentives given by ministries at central level for green buildings and products/technology.

Corpus fund

A corpus fund should be attempted to put up at each urban local body. LargeMNCs (multinational corporations) and industries in and around the cities couldbe encouraged to give the initial fund through their CSR (corporate socialresponsibility) policies. The penalties for non-compliance of various green buildingnorms should also go to this fund. The fund will be mainly targeted to incentivizethe green buildings programme.

Differential property tax system

Property tax, which is one of the main sources of municipal income, could be changedto differential property tax system, wherein users who incorporate green buildingsfeatures could be offered some rebate in the property tax.

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Capacity building

Capacity building of the respective organizations at state and city level to implementthe various policy measures needs to be strengthened. This will include appointmentof more professionals with adequate expertise to check the compliance of the newbuilding bye-laws and also regular training programmes for the evaluators and officialson the aspects of green buildings, various codes, including the ECBC.

Education and awareness

Lack of technical, economic, and general knowledge related to green buildings is oneof the major obstacles observed in propagating the green building concept.

Besides, it is also observed that once a demand for green buildings is created, itwill also create a market system supportive of investing in green buildings, therebyovercoming a major barrier of finance (as green buildings have higher incremental coststo some extent). Demand creation of green buildings should be well supported by anadequate focused programme of education and awareness.

State government websites and city government websites (in case of big cities) shouldbe linked to a dedicated section on green buildings. The site should give relevantinformation on the benefits of green buildings, building codes, ECBC, bye-laws,technical guidance for designing and constructing green buildings, green productsavailable in the market and their payback period, BEE-labelled products, list of certifiedauditors, designers and consultants giving such services and a brief of majordemonstration projects in the state and country. A small checklist on the websiteshowing the ‘dos for making a green building, would be very helpful. The checklistwill have sections on the following.P Site selectionP Site planningP Envelope design (wall, roof, and fenestration)P Air conditioning and lightingP RenewablesP Water and waste managementP Materials

One of the barriers in propagating green buildings is lack of adequate number ofprofessionals, architects, engineers, plumbers, urban planners and contractors, educatedand trained to build green buildings. To overcome this, there is a strong need to integratecourses with various college curricula. Institutions like IITs (Indian Institute ofTechnology), NITs (National Institute of Technology), Council of Architecture,Association of Engineers, and Institute of Town Planners could be involved to offerthe new or redefined courses.

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Outreach programmes targeting schools are also a strong tool to reach young minds.An extensive consumer awareness programme focused on economic and

environmental benefits from green buildings should be launched though various medialike radio, television, hoardings, and print media.

Green building awards

The state urban development department can recognize the meritorious and exemplarywork done by various types of energy users by giving green building awards (in variouscategories like building types and design team/construction team) in the public andprivate sectors.

Annual green building conference

The state urban development department can organize and conduct an annual greenbuildings conference; the forum will also showcase various green products, labelledappliances, and so on.

Awareness programme for government departments and undertakings

This should be taken up extensively by the state urban development department inassociation with the state nodal agency for new and renewable energy. It will educateand inform officials in various state government departments and developmentauthorities.

The outline of the activities could be as follows.P Preparing green building tips TIPS/captions and posters using a professional

advertising agencyP Advertising in the print media and in television in regional language/Hindi/EnglishP Advertisements through state transport systemsP Providing posters to all state offices and housing, electricity, water, and other revenue

collection officesP Developing training material for different groups.P Training programme for all the municipal corporations, municipalities, and other

local government bodies, which will be directly engaged in implementation of thegreen building programme

P Promoting energy efficiency and green products/ equipment at major consumerexhibitions

P Preparation and dissemination of case studies and success stories of green buildingprojects in residential and commercial sectors

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Public–private alliances, corporates, and role of government bodies in capacity building and

market transformation

Public–private alliances have a strong potential to strengthen the capacity building andtransforming market for promoting green buildings. Industry associations and NGOs,in partnership with various government organizations, can become a catalyst in shiftingthe market towards sustainable buildings.

Market transformation is a holistic, market-based approach designed to promotethe manufacture, purchase, and use of sustainable/green products, services, and/orpractices. At its core, it is an integrated and dynamic strategy that coordinates separatetechnology push and market pull policies and programmes to produce a permanentshift in the target market. Market-oriented approaches are aimed at the improvementof communications between players in the target market such as governments,manufacturers, retailers and consumers. It attempts to remove the five barriers to buyinggreen by the consumers’ lack of awareness, negative perceptions, distrust, high prices,and low availability.

The goal of market transformation is to create structural and behavioral changesin the marketplace that are self-sustaining over time and ultimately deliver the following.P Increased market share for energy-saving and resource-saving products, services, and

practicesP Accelerated deployment of the most efficient technologiesP Reduced long-term dependence on public funds as a means to promote sustainability

in buildingsP Lower energy use, water use, material use, and GHG emissions.

Development and implementation of a regulatory ‘push’, which establishes and enforceslegal minimums, and a complementary ‘pull’ from market-based, non-regulatorymechanism, which increases awareness and stimulates investment in performancebeyond legal requirements, is the most efficient policy mix to guide sustainable/greenbuilding movement (ABC 2007). Such mix includes a policy mix of policy instrumentsas discussed in an earlier section (Table 2).P Besides the above measures, government organisations and other private

organisations can also work in developing the required capacity building formobilising green building movement. Organizations such as ConstructionIndustry Development Council (CIDC), National Real Estate DevelopmentCouncil (NAREDCO), Builder’s Association of India, Confederation of IndianIndustry, and TERI, have the potential and the required capacity to worktowards this agenda of capacity building in their own ways. The efforts need tobe streamlined and focused.

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The corporate players in the private sector can also find strategic businessopportunities in promoting sustainability in the residential and commercial sector.Some of these are as follows.P Producers may manufacture and promote resource-efficient appliances such as bulbs

and other lighting equipment, fans, coolers, ACs, refrigerators, and geysers, water-efficient fixtures, and materials with lower embodied energy.

P Corporates can commit themselves to turn their offices and industries as greenbuildings.

P Financial institutions can work out innovative financing packages for green buildings/retrofits.

P MNCs can work on technology transfer for efficient equipment.P Testing, certification, and labelling of various products as recommended under the

ECBC could be taken up on priority by the private sector.P Training/capacity building, and awareness campaigns could be taken up for in-house

employees, as well as CSR activities.P Operation and maintenance protocol for all equipment that consumes energy and

water should be in place.P Regular energy and water audits and performance enhancement should be mandatedP Purchase preference policy for labelled and green products (ACs, refrigerators, tube

lights, water fixtures) should be incorporated.

GHG inventory programme of industries and corporates

The GHG inventory programme allows companies to consistently and credibly monitortheir emissions. Emissions are related to the way these industries and buildings arebuilt and operated. The Indian Industry launched a national-level GHG inventorizationprogramme in Delhi, India, on 28 May 2008 and is a partnership between the CII(Confederation of Indian Industry), the US EPA, and the WRI (World Resources

Box 3 Japan: the Top Runner Programme

The TRP (Top Runner Programme) was introduced in 1998 for the energy conservation standards for

home/office appliances and the fuel economy standard of automotives. It searches for the most efficient model in the

market and then stipulates that the efficiency of this top runner model should become the standard within a certain

number of years. By the target year, each manufacturer must ensure that the weighted average of the efficiency of all its

products in that particular category is at least equal to that of the Top Runner model. This approach eliminates the need

to ban specific inefficient models from the market. At the same time, manufacturers are made accountable and most

importantly, they are stimulated to voluntarily develop products with an even higher efficiency than the Top Runner model.

From 2006, the standards under the TRP are applicable to 21 types of equipment and heavy duty vehicles as follows-air

conditioners, electric refrigerators, electric freezers, electric rice cookers, microwave ovens, fluorescent lights, electric

toilet seats, TV sets, VCRs, DVD recorders, computers, magnetic disk units, copying machines, space heaters, gas cooking

appliances, gas water heaters, oil, water heaters, vending machines, transformers, and passenger/freight vehicles.

Source http://www.eccj.or.jp/index_e.html)

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Institute). Currently, 45 member companies have joined the programme. If successful,the programme will be a crucial step in establishing a national model on emissionsaccounting, and in creating business and institutional capacity to undertakecomprehensive GHG inventories and programmes that can serve multiple businessobjectives nationally as well as globally, besides indirectly propagating the green buildingmovement. Efforts should be made to give a fillip to this programme and moreindustries and other establishments should be made a part of this programme.

It is, therefore, recommended to enforce appropriate combination of policy toolsand streamline the existing organizations – public and private – towards the broaderobjective of market transformation to enable green buildings programme and also tobuild association with industry, private organizations and government to promote greenbuildings. Corporates can also play a strong role in pushing the market towardssustainability.

R&D in new construction technologies and materials and establishment of testing laboratories

For the successful implementation of various bye-laws and building codes targeted atmaking buildings more sustainable and energy efficient, it is essential that green buildingmaterials, equipment, and systems are available, tested, and reasonably priced. Thisrequires significant investment in research and development, coupled with variousgovernment and non-government programmes to push the market forward at a fasterpace. Some of the areas which could be taken up for R&D are as follows.P Development of simulation software to predict the energy used in buildings—a

simpler version for residential, and a more detailed and complex one for commercialand apartment buildings (The software should also cater to the retrofit part.)

P Energy-efficient technologies like hybrid and low-energy systems, innovative HVACtechnologies, and so on

P Building integrated renewable energy systemsP Development of energy-efficient appliances and productsP Low-cost water efficient fixtures and faucets, sewage treatment plants of varying

capacities, biodegradable waste management, and so onP LCC (life-cycle cost) analysis of various materials, equipment, and appliances

Organizations that could be engaged in taking up such projects are educationalinstitutions like IITs, NITs, private engineering colleges, TERI University, buildingcentres, BMTPC (Building Materials and Technology Promotion Council), and thecentral research institutes.

Besides meeting the R&D requirements, there is also an urgent need for moretesting labs for testing the performance of various materials, window systems,roofing systems, envelope performance, and HVAC systems in the country. It is,therefore, proposed to set up such labs at the above-named organizations

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(supported by the Government of India). The labs shall provide testing facilitiesfor various applications such asP provide direct comparative performance of alternative window systems;P determine effective U-values and solar heat gain factors under realistic conditions

of fenestrations, envelope, and so on;P measure energy performance of new window technology for which calculations

are unavailable or unreliable; andP measure COP (co-efficient of performance) of HVAC systems under Indian

conditions.

Enforcement and monitoring

Once, prescriptive requirements for making green buildings become a part of generalbuilding standards/bye-laws, enforcement and monitoring of these become the nextbig challenge. A strong enforcement system for making the bye-laws effective need tohave the following.P An institutional framework with clearly defined authority and well-trained

officials. To train the various government authorities and their officials, extensivetraining programmes need to be held (with regular updates as required) byorganizations such as TERI, CII- GBC (Confederation of Indian Industry-GreenBuilding Council).

P Detailed compliance requirementsP An appropriate combination of incentive and penalty mechanismsP Effective monitoring and verification systemsP Effective education and awareness programme

Above all, it requires a strong political will to enable the enforcement andmonitoring mechanism.

Baseline development

Before setting any targets and to effectively implement the green buildingsprogramme, development of a baseline and benchmarking for various typologiesof buildings, both air-conditioned and non-air-conditioned and mixed types in eachcity/town are prerequisites. A building bye-law has to make some mandatorycompliance of minimum benchmarks for building performance.

To achieve the same, the following are recommended.Phase 1: In Phase 1, all cities and towns could link their built-up area (property taxdata) and electricity consumed (utility) and develop a certain benchmark/baseline forvarious building typologies. Main typologies suggested areP Commercial buildings (AC)P Commercial buildings (non-AC)

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P Shopping mallsP Markets (mix of AC and non-AC space)P Residences (AC)P Residences (non-AC)P ApartmentsP Schools, colleges, and educational institutes

Phase 2: In Phase 2, each city based on its size and capacity to fund this exerciseshould go for a baseline development of various building types and uses based on adetailed survey. Adequate sample size should be selected and actual field measurementsshould be taken for this exercise (Jain, Gaba, and Srivastava 2007).

If a city has or proposes to build GIS (geographical information system) maps forvarious service provisions, a layer could also be created stating building typology andlink it with the achieved EPI (Energy Performance Index). This will give spatialinformation, as well as information by ward and by area, which will be very helpfulfor various policy decisions.

Targets suggested for Class I citiesP To reduce the EPI4 of at least 50% of all newly built commercial buildings by at

least 25% from the base case–Phase I (5 years)P To reduce the EPI of at least 25% of all newly built residential buildings by at least

20% from the base case–Phase I (5 years)P All commercial buildings to have 100% water conserving fixtures and faucets (Phase

I and II)P All public buildings (new) to be green buildingsP 1% of the connected load, if coming from renewables, to be incentivized (target: at

least 15 buildings in the first 5 years)P Energy and water audit of the prominent existing public buildingsP Implementation of the retrofit program based on the above (target 25% buildings

in the first 5 years)

Targets suggested for Class II cities and below

P To reduce the EPI of at least 25% of all newly built commercial buildings by atleast 25% from the base case–Phase I (five years)

P To reduce the EPI of at least 15% of all newly built residential buildings by at least20% from the base case–Phase I (five years)

P 25% of new commercial buildings to have water conserving fixtures (Phase I)

4 EPI gives a measure of the total electricity consumed per m2 by a building annually and measured in kWh (kilowatt-hour)/ m2 /annum.

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P All new public buildings to be green buildings and should also have some renewableenergy system

P Retrofit of 5% of the existing public buildings (first five years)

Indicators

Indicators are the first, most basic tools for analysing change in society. They are agood measure for assessment of any service delivery, including analysing the progressmade in building green buildings.

Currently, there is no attempt at ULB level to gauge the progress in the greeningof buildings. Having this need for indicators, an attempt has, therefore, been made todevelop a set of basic indicators. The indicators for buildings are different from the rest ofthe services such as water supply, solid waste management, storm-water drainage, and urbantransport, as this sector is completely dependent on market forces. Table 3 lists the suggestedindicators and their potential to integrate with the existing institutional setup.

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Table 3 Indicators in the context of sustainable buildings

Frequency of Lead Existing Can it be integrated

Indicator data collection agency status with the existing set up?

No. of houses vs Decadal Ministry of Yes —

households Home Affairs (Census)

Percentage of Annual ULB/development — Yes

new residences authority

Percentage of new Annual ULB/development — Yes

non-residential buildings authority

Percentage of retrofitted Annual ULB/development — Yes, if retrofit programmes

residences authority are incentivized

Percentage of retrofitted Annual Urban local body/ — Yes, if retrofit programmes

non-residential buildings development authority are incentivized

EPI of new residences Every five ULB/development — Has to be done for the particular

years authority city depending on the climatic zone.

EPI of new non- Every five ULB/development — Has to be done for the residential

buildings years authority particular city depending on the

climatic zone.

Percentage of GRIHA- Annual Development — Yes

certified buildings authority

Percentage of LEED- Annual Development — Yes

certified buildings authority

Percentage of green public Annual ULB/development — Yes

buildings and their average EPI authority

Percentage of buildings Annual ULB/development — Yes

employing RETs authority

EPI – Energy Performance Index; LEED – Leadership in Energy Environment Design; GRIHA – Green rating for

Integrated Habitat Assessment; RET – renewable energy technology

Note Details of these indicators are given in Annexure 1.

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Annexure 1


No. of houses vs households Number Total number of households having

individual house available in the ULB

This parameter primarily is an indicator of the housing shortage and demand in the urban centre. Ideally, this ratio

should be one. The more it is less than 1, graver is the situation with respect to housing and is indicative of the

potential growth in new residential construction

Data requirements

a) Total number of households in the ULB limits Number

b) Total number of houses in the ULB limits Number

No. of houses vs households Number “=(b/a)”

Percentage of new residences % Total built-up area of new

residences as percentage of the total

built-up area in the ULB limits

This parameter when measured annually will show the trend of built-up residential area being added annually in the

ULB limits and is an indicator to track the trend of building construction in residential sector

Data requirements

a) Total built-up area in the ULB limits m2

b) Total built-up new residential area in the ULB limits m2

Area of new residences vs total built-up area in the ULB Number “=(b/a)*100”

Percentage of new non-residential buildings % Total built-up area of new non-

residential buildings as percentage

of the total built-up area in the ULB

limits

This parameter when measured annually will show the trend of built-up non residential area being added

annually in the ULB limits and is an indicator to track the trend of building construction in non-residential sector

Data requirements

a) Total built-up area in the ULB limits m2

b) Total built-up new non-residential area in the ULB limits m2

Area of new non-residential area vs total built-up area in the ULB Number “=(b/a)*100”

Percentage of retrofitted residences % Number of residences retrofitted for

energy efficiency and water

efficiency in the ULB limits as


existing residences

This parameter when measured annually will show the trend of retrofits on the lines of green buildings in the

existing residences. Higher the percentage the better is the situation.

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Data requirements

a) Number of existing residences Number

b) Number of retrofit residences Number

Percentage of retrofitted residences % “=(b/a)*100”

Percentage of retrofitted non-residences % Ratio of the number of non-

residences retrofitted for energy

efficiency and water efficiency and

the total number of existing non-

residences in the ULB limits

This parameter when measured annually will show the trend of retrofits on the lines of green buildings in the

existing non-residences. Higher the percentage the better is the situation

Data requirements

a) Number of existing non-residences Number

b) Number of retrofit non-residences Number

Percentage of retrofitted non-residences % “=(b/a)*100”

EPI of new residences kWh/ m2 It is a measure of the total electricity

consumed per sq. metre by a





non air-conditioned

This parameter will indicate whether the EPI is reducing or not. Lower the EPI than the baseline EPI of residences,

better it is. EPI for air-conditioned and non air-conditioned buildings will be different.

Data requirements

a) Electricity used by each new residence annually kWh

b) Built-up area of the residence m2

EPI of residence (E) kWh/ m2 “=a/b”

EPI of new residences kWh/ m2 “=average of all the Es”

EPI of new non-residential buildings kWh/ m2 It is a measure of the total electricity

consumed per sq. metre by a



non-residential buildings under two


non air-conditioned

This parameter will indicate whether the EPI is reducing or not. Lower the EPI than the baseline EPI of non-

residential buildings, better it is. EPI for air-conditioned and non air-conditioned buildings will be different.


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Data requirements

a) Electricity used by each new non-residential building annually kWh

b) Built-up area of the building m2

EPI of building (E) kWh/ m2 “=a/b”

EPI of new non-residences kWh/ m2 “=average of all the Es”

Percentage of GRIHA certified buildings % It is a measure of the total number

of GRIHA certified buildings as


buildings


show a healthy trend of green buildings

Data requirements

a) Total number of buildings within the ULB limits Number

b) Total number of GRIHA certified buildings within the ULB limits Number

Percentage of GRIHA certified buildings % “=(b/a)*100”

Percentage of LEED certified buildings % It is a measure of the total number

of LEED certified buildings as


buildings


show a healthy trend of green buildings

Data requirements

a) Total number of buildings within the ULB limits Number

b) Total number of LEED certified buildings within the ULB limits Number

Percentage of LEED certified buildings % “=(b/a)*100”

Percentage of green public buildings and their average EPI %, kWh/ m2 It is a measure of the total number

of green public buildings (existing

and new) as percentage of the total

number of public buildings in the

ULB limits

This parameter will reflect the extent to which public buildings are constructed and retrofitted on the principles of

green buildings

Data requirements

a) Total number of public buildings within the ULB limits Number

b) Total number of green public buildings (new and retrofitted) Number

c) Electricity used by public building kWh

d) Built-up area of public building m2


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Percentage of green public buildings % “=(b/a)*100”

EPI of public buildings kWh/ m2 “= average of EPI of all public

buildings”

Percentage of buildings employing RETs % It is a measure of the number of

buildings employing RETs such as

solar water heating, photovoltaics,

etc. as percentage of the total

number of buildings within the ULB

limits

This parameter will help in assessing the spread of RETs. Higher percentage shows a healthier trend

Data requirements

a) Total number of buildings within ULB limits Number

b) Total number of buildings using RETs Number

Percentage of buildings employing RETs % “=(b/a)*100”


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Annexure 2

Appliance standards are the most commonly used instruments for increasing energyefficiency of appliances used in commercial and residential buildings. Examples includethe Top Runner programme in Japan and Appliance Standards in China.

Building codes are standards that address the energy use of an entire building orbuildings systems such as heating or air conditioning. These are of two kinds:1. Prescriptive codes that set separate performance levels for major envelope andequipment components, such as minimum thermal resistance of walls.2. Overall performance-based codes prescribing only an annual energy consumptionlevel or energy cost budget, for example, the ECBC, 2007; EU Energy Performanceof Buildings Directive

Procurement regulations are provisions for energy efficiency in the publicprocurement process. Such regulations are in place in countries like Germany, France,Italy, US, China, and Thailand.

Energy efficiency obligations and quotas are legal obligation for electricity and gassuppliers to save energy in their customer’s premises.

Mandatory audit programmes for industrial and large commercial buildings areone of the most common policy instruments in many European and other countries.Residential buildings are, however, rarely included in such programmes.

Mandatory certification and labelling programmes are defined as the mandatoryprovision of information to end-users about the energy-using performance of products

Utility demand-side management programmes are programmes undertaken byutilities to achieve energy efficiency; there are various types of DSM (demand sidemanagement) programmes like individual advice and counselling, energy managementand auditing, advice regarding new installations, informative electricity bills, show anddisplay rooms, articles, advertisements, magazines, education of school children, streetlighting, lending out meters, and low-energy bulbs.

Energy performance contracting means that a contractor, typically an energyservice company, guarantees certain savings for a location over a specified period;implements the appropriate energy-efficiency improvements and in return gets thepayment from the estimated energy cost reductions achieved through the energysavings.

Cooperative/technology procurement is a voluntary tool whereby customers fromthe private or public sector who procure large quantities of energy-using appliancesand equipment cooperate in order to influence the market by creating demand formore efficient products.

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Energy efficiency certificate schemes give tradable certificates for energy savings,often called ‘white certificates’. They are issued by independent certifying bodiesconfirming the claims of market actors for savings of energy, as a result of energy savingmeasures.

Kyoto flexibility mechanisms (Joint Implementation and Clean DevelopmentMechanisms) are instruments for delivering financing, know-how, sustainability benefitsas well as capacity building for GHG mitigation projects in developing countries andeconomies in transition.

Carbon/energy taxes are imposed by the government at some point in the energysupply chain, either as CO2 tax or energy tax. Such taxes are imposed in manycountries, including Denmark, Finland, Norway, the Netherlands, Sweden, andGermany.

Tax exemptions are granted in the form of income tax credits or VAT (value-addedtax) exemptions and are used to provide signals to promote investment in energyefficiency to end-use customers.

Public benefit charges are used to raise funds from the operation of the energymarket, which can then be directed into DSM and energy efficiency activities.

Capital subsidies, grants, subsidized loans, rebates are one of the most frequentlyused instruments and provide financial support for the purchase of green appliancesor buildings.

Voluntary certification and labelling programmes are meant to provideinformation to end-users about the energy-using performance of products such aselectrical appliances, equipments, and even buildings.

Public leadership programmes are energy-efficiency programmes in publicadministrations, demonstration projects to demonstrate new technologies, and potentialsavings to the private sector.

Awareness raising, education, information campaigns are policy instrumentsdesigned by government agencies to change individual behaviour, attitudes, values orknowledge and are usually very effective when combined with other policy instruments.

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ReferencesABC (Asia Business Council). 2007Building energy efficiency: why green buildings are key to Asia’s futureDetails available at <http://www.asiabusinesscouncil.org/docs/BEE/BEEBook.pdf> last accessed on25 February 2008

Cole R. 2007Energy use and urban buildingsIn Handbook on Urban Sustainability, edited by N MunierThe Netherlands: Springer

Frej A B (ed.). 2005Green Office Buildings: a practical guide to developmentWashington DC: ULI (Urban Land Institute)

ICAEN (Institut Català d’Energia). 2004Sustainable Building Design Manual Vol. INew Delhi: TERI

IEA (International Energy Agency). 2005Evaluating Energy Efficiency Policy Measures & DSM Programmes, Volume I EvaluationGuidebookParis: IEA

Kamiya T. 2003The Guide to the Architecture of the Indian SubcontinentGoa: Architecture Autonomous

MNRE (Ministry of New and Renewable Energy) and TERI (The Energy and Resources Institute).2008National Rating System: GRIHA (Green rating for Integrated Habitat Assessment)New Delhi: TERI

Novikova A, Urge-Vorsatz D, and Liang Ch. 2006The magic of the Kyoto Mechanisms: will it work for buildings?In Proceedings of the ACEEE (American Council for an Energy Efficient Economy) Summer Study 2006California: ACEEE

Oliver P. 1987Dwellings: The house across the worldOxford: Phaidon

Oliver P. 2006Built to Meet Needs: Cultural issues in vernacular architectureNew York: Architectural Press

Roodman, D M and Lessen N.1995A Building Revolution: how ecology and health concerns are transforming constructionWashington DC: Worldwatch Institute[Worldwatch paper 124]

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Jain M, Gaba V, and Srivastava L. 2007Managing Power Demand: a case study of the residential sector in DelhiNew Delhi: TERI (The Energy and Resources Institute)[Project funded by the British High Commission

UNEP-SBCI. 2007Assessment of Policy Instruments for Reducing Greenhouse Gas Emissions from BuildingsBudapest: Central European University

USEIA (US Energy Information Administration). 2003USEIA statisticsMetropolis Magazine (October)

USGBC (US Green Building Council). 2005LEED-NC: Green building rating system for new construction and major renovations (Ver2.2)US: USGBC

BibliographyAnton Maas Dr.-Ing. 2006Outline of the German Energy Conservation Regulation 2006Munich: Technical University of Munich: Department of Civil Engineering, Institute for Building Physics

Department of Sustainability and the Environment. 2007The sustainable household challengeDetails available at <http://www.dse.vic.gov.au/thesustainables/> last accessed on 25 October 2007

Energy Saving Trust. 2007Home information packs and energy performance certificatesDetails available at <http://www.energysavingtrust.org.uk/home_improvements/home_information_packs>last accessed 24 October 2007

Government of Australia. 2006Scoping Study to Investigate Measures for Improving the Environmental Sustainability ofBuilding MaterialsAustralia: Australian Greenhouse Office, Department of Environment and Heritage, Government ofAustralia

Government of Singapore. 2006The Singapore Green Plan 2012Singapore: Ministry of Environment and Water resources, Government of Singapore

IEA (International Energy Agency). 2006Solar Energy Activities in IEA Countries — 2005: a report of the IEA Solar Heating and CoolingProgrammeParis: IEA

London Development Authority. 2007Mayor’s zero-carbon development to set standardDetails available at <http://www.lda.gov.uk/server/show/ConWebDoc.1776> last accessed on 25 October2007

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The Climate Group. 2003Case Studies: MelbourneDetails available at <http://www.theclimategroup.org/reducing_emissions/case_study/melbourne/> lastaccessed on 26 October 2007

The Energy Conservation Center. 2008Promotion and Dissemination of EE&C & Sustainable Buildings in Japan - Yoshitaka UshioJapan: The Energy Conservation Center

WWI (WorldWatch Institute). 2007State of the World 2007: our urban future 2007London: WW Norton & Company

Websiteshttp://www.hudahyd.orghttp://www.bis.org.in/sf/nbc.htmhttp://www.windpowerindia.com/statstate.htmlhttp://mnes.nic.in/annualreport/2006_2007_English/HTML/ch5_pg10.htmhttp://www.thehindubusinessline.com/2004/06/04/stories/2004060402471900.htmhttp://www.eia.doe.gov/http://www.ci.berkeley.ca.us/sustainable/residents/ResSidebar/RECO.htmlhttp://www.nycclimatesummit.com/casestudies/building/bldg_berkeley.htmlhttp://www.nycclimatesummit.com/casestudies/building/bldg_seattle.htmlhttp://www.nycclimatesummit.com/casestudies/energy/energy_barcelona.htmlhttp://www.iclei.org/index.php?id=1179http://www.nycclimatesummit.com/casestudies/building/bldg_austin.htmlhttp://www.ci.austin.tx.us/news/2007/downloads/zeh_final_report.pdf>, p.6-8http://www.arup.com/eastasia/project.cfm?pageid=7047http://www.aib.org.auhttp://www.environment.gov.auhttp://www.aela.org.auhttp://www.thegreendirectory.com.au/http://www.geca.org.au/http://www.ata.org.au/http://www.environment.gov.au/http://www.greenhouse.gov.auhttp://stats.oecd.orghttp://greenpower.gov.auhttp://www.greenlabelspurchase.nethttp://www.mlit.go.jphttp://www.eccj.or.jphttp://www.meti.go.jphttp://www.env.go.jp/en/http://www.metro.tokyo.jp/ENGLISHhttp://www.pref.osaka.jp/enhttp://www.jwwa.or.jp/http://www.greenmark.sghttp://www.bca.gov.sghttp://www.sec.org.sghttp://www.nea.gov.sghttp://www.mewr.gov.sg/sgp2012

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http://www.nccc.gov.sg/energylabelhttp://www.pub.gov.sg/NEWater_fileshttp://www.corenet.gov.sghttp://www.esv.or.athttp://www.ibo.at/produktpruefung.htmhttp://www.umweltzeichen.athttp://www.oekostromag.athttp://waste.eionet.europa.eu/factsheets/Austriahttp://www.clarinet.at/http://www.energielabel.at/energielabelhttp://www.energyagency.at/projekte/energieausweishttp://www.greenlabelspurchase.nethttp://www.energiesparverband.or.at/_oechttp://www.eva.ac.at/projekte/ren-in-a01.htmhttp://www.pickapro.ie/surveyor/building-energy-rating.phphttp://www.sei.ie/http://www.environ.ie/http://www.wowenergy.iehttp://www.euromonitor.comhttp://www.ine.eshttp://www.eukn.org/spainhttp://www.ec.europa.eu/environment/etaphttp://www.planetark.comhttp://www.renewableenergyworld.com/reahttp://www.isis-it.com/mure/http://naredco.org/aboutus.htmlhttp://www.wasteonline.org.uk/resources/InformationSheets/HistoryofWaste.htmhttp://www.vcacarfueldata.org.uk/index.asphttp://www.defra.gov.ukhttp://www.lowcarbonbuildings.org.uk/home/http://envirostats.info/reports/http://www.eia.doe.gov/http://earthtrends.wri.org/searchable_db/index.php?theme=10 http://www.novatlantis.ch/index.php?id=26&L=1http://www.buildingsplatform.org/cms/

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Literature review

In this section, the study discusses select best practices with respect to the principlesof good governance, which have emerged from extensive study of national andinternational literature on good urban governance.

National review

Most states and policy-makers in India do recognize that many Indian cities haveexpanded beyond their capacity, and the agencies responsible for urban service deliveryare in poor condition, especially the municipal bodies. Cities are trying to examinethe impediments in efficient service delivery and are working towards improvement.However, both the efficacy of the reform efforts and extent of initiatives differ fromcity to city.

Cities are increasingly including citizens in the governance aspects through variousprogrammes, largely with the support of NGOs. The Delhi government, for instance,launched a scheme in 2000 called Bhagidari, which essentially means joint ownership.The purpose of the programme is to inculcate a sense of responsibility and ownershipsamongst citizens and include them in the governance process. Established forum suchas RWAs (residents’ welfare associations), traders’ organizations and NGOs areconsidered the voice of the people. More and more civic concerns are been resolvedthrough interaction with these groups. This process of integrating the community intothe governance process has been replicated in a number of states, but mostly for specificprocess and functions. It is necessary to make this community participation anintegrated approach across all activities in local governance. As a first step, most statesneed to launch massive awareness campaigns to educate citizens on their role in thegovernance process.

Information technology is a promising and cost effective tool for enhancingaccountability and providing timely resolution of consumer issues. States like Karnatakaand Andhra Pradesh have been pioneers in the use of IT (information technology)

GovernanceCHAPTER

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in effective governance and other states need to replicate the same in their cities. Thereare a few cities, which have also attempted to directly address environmental concernsin the functioning of local authorities. The Guntur Municipality in Andhra Pradesh,is one such example, and is perhaps the only corporation in the country to have startedthe concept of an ecological budget. It aims to conserve the environment by improvingthe quality of water it supplies to its citizens, the way it handles solid waste, and alsoby improving the air quality.

The review of best practices in India has also brought out the fact that while someof these practices might have begun on a voluntary and informal basis; cities are nowtrying to institutionalize some of these practices into the formal governance structure.The BMP’s (Bangalore Mahangar Palike’s) successful initiative on public disclosureof its finances under PROOF (Public Record of Operations and Finance) wasundertaken in collaboration with Bangalore’s prominent NGOs. Subsequently, basedon the experiences of PROOF, the Government of Karnataka passed the Local FundFiscal Responsibility Act 2003. The World Bank has suggested PROOF as a concept,which should be extended to the state governments.

The subsequent section lists out in detail select case studies that emerge from thenational review. It documents the experience of municipal bodies that have takenmeasures to improve service delivery. The case-studies detail the reforms carried outby municipal bodies in order to bring greater decentralization, transparency andaccountability, public participation, and equity in the delivery of services. The firstfour case studies are on overall reform measures taken by municipal bodies in Surat,Ludhiana, Hyderabad, and Guntur, while the subsequent case studies discuss initiativesby various municipal bodies with respect to specific parameters of good governance.It is to be noted that while most case studies draw from literature review, the casestudies of Surat and Hyderabad also draw from discussions and inputs received fromstakeholders during the city visits.

Surat Municipal Corporation

The good governance initiative in Surat is known to have set benchmarks in the practiceof good governance at the level of local bodies in India.

Decentralization

To ensure decentralization in the working of the corporation, the entire region of theSMC (Surat Municipal Corporation) has been divided into seven zones, each of whichis headed by a zonal chief delegated with complete financial powers of the municipalcommissioner. Each zone is further divided into small wards and a ward officer, witha team at the ward office, is appointed to attend to the functions of the ward. To furtherdecentralize the system, financial powers of up to Rs 200 000 have been delegated tothe zonal in-charge.

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Transparency and accountability

The SMC started an e-governance project through 16 city civic centres, in order tofacilitate single-point/ single-visit solution to citizens’ queries. The civic centres aredistributed within the city such that at least two civic centres fall in each ward.

E-governance has also helped in establishing an effective consumer grievanceredressal system. The public complaints made through the system are monitored atmultiple levels. The complaints are further bifurcated into engineering, health, andsanitation categories. The public grievance redressal system of the corporation has beenrecognized to be very effective and the corporation was awarded a bronze medal bythe CMAG (City Managers’ Association of Gujarat) and FIRE(D) for outstandingperformance in citizen-centric service delivery in 2007.


More than 300 employees provided email accounts for internal communications. Theneed for computer literacy in the middle and lower rank and that of awareness in thehigher ranks was foreseen and a massive drive for training the employees was taken up.

There is an in-house MIS (management information system) that updates andapprises the municipal commissioner of the activities of the civic centre. In fact, allactivities running at various city civic centres can be viewed online on the municipalcommissioner’s desktop. All zones, civic centres, and ward offices are connected throughLAN and WAN.

Financial reforms

The following financial reforms have been introduced within the municipal corporation.P The finance and accounts department has been fully computerized.P The traditional receipt and payment accounting system has been changed to double

entry commercial accounting system.P Octroi has been abolished in the state. Attempts are now being made to tap

alternative sources of revenue such as property tax and user charges.P There has been rationalization of property tax and the assessment has been shifted

from ‘annual letting value’ to the ‘area-based’ property tax.P Water supply tariff and user charges have been revised upwards.

As a result of the some of the above-mentioned initiatives, the tax per propertyincreased from Rs 513 in 1994/95 to Rs 877 in 1997/98 (71%). Due to these successfulinitiatives, the SMC was rated as AA (SO) by CRISIL and ICRA.

Pubic participation

The civil society has been actively involved in the decision-making process of the localbodies in Surat. People, including women, are involved in the audits of the annual

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budgets of the SMC. The corporation has also initiated Lok Bhagidari Projects with49% stakeholders and 51% local body’s involvement. This initiative is similar to the‘Bhagidari programme’ initiated in Delhi and seeks to involve citizens in facilitatingimprovements in civic services.

Ludhiana Municipal Corporation

The city of Ludhiana, with a population of 14 lakh, is the industrial hub of the stateof Punjab. The MCL (Municipal Corporation of Ludhiana) faced several challenges,including rapid urbanization, haphazard development, political interference, poor workculture, eroding accountability, and a declining public image due to the increasinggap between service delivery and public expectation. To reform such a system, theMCL took up various initiatives, some of which are listed below.

Community participation

To reduce problems of shortstaffing, the MCL promoted the concept of ‘Manage yourNeighbourhood’ and handed over the management of 427 out of the 830 parks toneighbourhood park management committees. The role of these committees includedhiring of gardeners, supervision of gardening, and the overall upkeep of gardens. Thisenabled the MCL to overcome the constraint of staff shortage, while improving themaintenance of parks, along with substantial savings.

Financial capacity

Asset management: With the help of consultants and through reconciliation of old land/revenue records, the MCL unearthed 800 properties, valued at Rs 190 crore, whichwere earlier not known to exist. The MCL is now in a position to develop or disposeof these properties.

Financial management: In order to improve its financial management, the MCLswitched over from a cash-based system to an accrual system of accounting. It alsoraised Rs 17 crore from the market through municipal bonds.


Monthly performance appraisal for employees: Employee performance-reportingsystem based on the system of recording annual confidential reports wasdysfunctional and used only as the basis for promotions and not for performanceappraisal. This system was changed to a system of monthly performance appraisal,with the assignment of monthly performance scores, which added up to the annualperformance score.

Staff optimization: The MCL’s organizational structure was obsolete, andredeployment of staff at appropriate places had become a necessity. Consequently, afterbilling-related operations were privatized, the MCL redeployed employees working in

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the billing department as tax collectors. This helped improve tax collection withoutadding to the salary bill.

Computerization: Systems were computerized in order to redress complaintsassociated with incorrect billing and public complaints about billing for water/ sewerageservices and house taxes. This resulted in detection of arrears worth Rs 40 crore.

Single window inspectorate: The taxation department comprised seven inspectorshandling seven different portfolios—house tax, water and sewerage, license, ‘tehbazri’,advertisement, building and sanitation within the same area. The system wasinconvenient as the public had to deal with seven different inspectors. To improve theefficiency in the functioning of the taxation department, a single window system wasintroduced, where only one inspector was made responsible for all the seven activitiesin a particular area.

Decentralization

As it was difficult to manage a large city like Ludhiana from a central office, it wasdecided to decentralize its operations by setting up four zones. Redressals of complaints,tax collections, and most other functions were decentralized to the zonal level.

Municipal Corporation of Hyderabad

Some of the key innovations introduced by the MCH (Municipal Corporation ofHyderabad) in recent years are described below.


Privatization of sanitation services: The MCH is the first municipal corporationin the country to introduce the unit system, in which the city is divided into unitsof sweeping and garbage lifting, and a unit cost is determined for such a service.Each unit is then allotted to different contractors on the same unit cost. About60% of the garbage sweeping / lifting is privatized. The municipal corporation hasalso modernized its sanitation operations by using latest available machines andequipments.

Using waste to produce energy: The MCH commissioned a private company,SELCO International, to set up a garbage-processing plant where 700 MTof municipal solid wastes is used to generate about 10 MW (megawatt) of electricpower. More such initiatives are being examined for power generation from waste.


Voluntary garbage collection scheme: The MCH also introduced a voluntarygarbage collection scheme where the corporation provides a tricycle, costingRs 4500 free of cost to a colony/ group of 100–150 houses, which engages aragpicker to collect garbage from door to door. The ragpicker is paid Rs 10 per

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household for this. This scheme helped people have a garbage-free locality withthe added advantage of providing a gainful employment opportunity to ragpickers.

Equity

Clean Slum initiative: Each slum had been envisaged as a mini-municipality, with thecommunity discharging some basic civic functions such as sanitation, preschooleducation, adult education, preventive health care, immunization, pre- and ante- natalcare, thrift and credit, and income generation. It was also envisaged to have residentialtax collectors in the slum areas, who could collect property taxes and user chargesand make the funds collected available for local development. An NGO was identifiedfor each slum to mobilize slum dwellers, train them, and act as an interface betweenthe community and the municipality.

Financial capacity

Resource mobilization: This included property tax reforms, (including introductionof the scheme of self-assessment of property tax), revamping of advertisement tax, andtrade license fee system. The emphasis was on self-declaration and self-filing of returnsand use of land resources and adoption of polluters-pay principle. The benefits of suchan approach resulted in considerable increase in municipal revenue. Property taxincreased by more than 70% during 1999/2000. The period 1998–2000 witnessed ahike in advertisement fee collection by more than 230%. Trade licensing fee went upby 63% during 1999/2000. Town planning related charges registered more than 100%growth during 1999/2000.

Improving cost recovery in sanitation: Traditionally, the conservancy tax was a partof property tax in Hyderabad. This led to very low tax collection because small andlarge generators of trash were treated alike. The MCH then introduced bulk garbagecollection charges from bulk generators of garbage. It also introduced collection ofadministrative charges from people committing sanitation offences like littering andspitting. In the financial year 2002/03, the corporation collected about Rs 420 000through these enforcement measures.


E-governance initiatives for increased transparency and accountability to the public:Hyderabad has also taken a number of IT-enabled initiatives to increase transparencyand accountability. One such initiative is the e-Seva (e-governance) initiative, underwhich the state offers citizens a wide range of services under one roof. There are about43 e-Seva centres in Hyderabad and Secundrabad, serving an average of about 35 000citizens every day.

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Other initiatives

Coordinated metropolitan development: To facilitate coordination and collaborationwithin and amongst various departments, the Government of Andhra Pradeshconstituted a city-level coordination committee, with the commissioner of MCH actingas the nodal officer/coordinator. The members of the committee, constituted of seniorofficials from the police, state electricity board, urban development authority, revenuedepartment, Metropolitan Development Authority, Metropolitan Water Supply andSewerage Board, State Transport Corporation, traffic police, telecom, and so on. Thecommittee meets once every week to sort out coordination problems and has beenfunctioning successfully in solving many vexing problems.

Guntur Municipal Corporation1

Guntur, one of the fastest developing tier - III cities in Andhra Pradesh, has achievedremarkable progress in augmenting basic services like drinking water, sanitation, streetlighting, and solid waste management. It has an efficient public grievance redressalsystem. The corporation saw a turnaround in its finances with near 100% tax collectionand non-tax revenue from individuals and commercial establishments. The corporationhas also made efforts for the upliftment of the poor and is the first of its kind to securemaximum grants under the state’s APUSP (Andhra Pradesh Urban Services for thePoor Programme). As part of the administrative reforms, the Citizen’s charter wasintroduced with the aim to make the system more transparent, efficient, and effective.Various departments under the GMC (Guntur Municipal Corporation) have also beencomputerized to ensure efficiency. The GMC is perhaps the only corporation in thecountry to have started an ecological budget where it targets at conserving itsenvironment by improving the quality of water it supplies to its citizens, the way ithandles solid waste, greening the city or improving the air quality.

Case studies of best practices addressing specific good governance parameters

Financial capacity

1. Internal resource mobilization – Ahmedabad Municipal Corporation

The Ahmedabad Municipal Corporation was in severe financial crisis before 1993,with a deficit in the range of Rs 35 crore and bank overdraft of Rs 22 crore. Byimproving the base of octroi and through intensified property tax collection, themunicipal corporation was able to generate considerable surplus within a limited timeperiod.

The major steps taken to improve octroi included the following.

1 Guntur Municipal Corporation: a development story, Frontline, 29 February 2008

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P Establishment of market research cell for the preparation of valuation books on thebasis of prevailing market prices to eliminate under-invoicing by importers

P Creation and updation of octroi valuation records with the help of professionalslike chartered accountants and cost accountants

P Systematically undertaking measures to tackle tax defaulters, including the use ofpolice force

P Introduction of a system of random checks by senior officers of the corporation atmultiple points and inspection of trucks carrying goods to deal with the issue ofbogus billing

P Deployment of additional vigilance squads for round-the-clock duty to interceptvehicles entering the city and making on-the-spot physical verification

The major steps taken by the Ahmedabad Municipal Corporation to improve propertytax collection included the following.P Hiring reputed lawyers to handle some of the important court cases at the Gujarat

High Court and the Supreme Court of IndiaP Disconnection of water supply and drainage services for properties whose owners

defaulted in the payment of property tax.P Issue of warrants for confiscation of movable properties and attachment of

immovable properties

Levy of development charges on land use in Andhra Pradesh

Section 28 of the Andhra Pradesh Urban Areas (development) Act 1975, prescribesfor the imposition of development charges on persons instituting or changing anyland use, and undertaking or carrying any development. In spite of the legalprovisions, the state government did not have systematic procedures for thedetermination of development charges.

The Government of Andhra Pradesh then took some important initiatives inthe use of urban land as a resource by streamlining the levy of development chargesin the large cities of the state. The rates were increased significantly to bring insome balance between the value gains due to planning permission and thedevelopment charges paid.

The concept of betterment due to planning permission is well grounded in thetown planning acts of many countries, and there is a strong case for tapping a partof the unearned increments in land values due to planning gains and using thesame for decongestion programmes. The Hyderabad Urban Development Authoritywas able to mobilize Rs 15 crore per annum from development charges madepossible on account of the government order issued in 1996.

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Citizen’s participation

Bhagidari: citizen-government partnership, Delhi2

The Government of NCT (National Capital Territory) of Delhi took an initiative inthe year 2000 to involve its citizens in facilitating citywide changes in Delhi, by utilizingprocesses and principles of multi stakeholders collaboration through ‘large groupdynamics’ and ‘joint ownership’ with citizens and civic agency officials. TheGovernment of NCT of Delhi put into place a participatory and interactive frameworkof governance, called ‘Bhagidari’, meaning ‘co-sharing’ or ‘partnership’. It is a goodgovernance initiative that has facilitated a process of dialogue between the citizens andthe government for the discovery of joint solutions aimed at improving the quality oflife in the city. The methodology of ‘large group interactive events’ has been used totrain the citizen groups and government officials to develop consensus on civic issuespertaining to water, power, sanitation, community services, security and environment.

Bhagidari has been expanded of late to include public education, care for seniorcitizens, women’s empowerment, and the functioning of government schools. Activeinvolvement of the citizens in Bhagidari has increased accountability in governmentand civic authorities and instilled in the citizens a sense of ownership and publicresponsibility.

Citizen’s report card: Bangalore

The CRC (citizens’ report card) was an initiative by the Public Affairs Centre,Bangalore. They surveyed the citizens for feedback on the state of public services anddevelopmental programmes.

The CRC system was initially an attempt to understand users aspirations and needswith respect to service delivery. A questionnaire was prepared in consultation withexperts and in 1994, the first CRC survey was carried out. The questionnaireadministered to 480 middle income and 330 slum households across six localities inBangalore. The findings were shared with public service agencies, senior politicians,and bureaucrats and were widely publicized by the media. Subsequently, two moreCRCs – one in 1999 and the third in 2003 – were conducted. The contents of theCRC questionnaire included access, usage, quality, reliability, problem incidence andresponsiveness of the concerned agency, and service and opportunity costs borne bythe users due to poor services.

This information gathered from the survey was then used to design and lobbyimprovements. While CRCs do not trigger service improvements by themselves, theyare tools to activate public interest and awareness and facilitate changes at the levelof the government to improve service delivery. The concept is used widely by varietyof governments, donors, and civil society groups in India and overseas.

2 GoI (2006)

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User contribution to infrastructure development in Tamil Nadu

In Tamil Nadu, the state government has encouraged ULBs (urban local bodies) towork together with citizens to expand sewerage infrastructure in a number of urbanareas throughout the state. A highlight of this initiative is that it relies on capitalcontributions and user fees from citizens and involves close collaboration between them,their elected representatives, municipal officials and the state’s water and sanitationutilities. The programme has been widely accepted and has been extended to moreurban areas in the state in the past few years.


Bangalore Mahanagar Palike’s initiative: promoting transparency of operational and financial

performance through partnerships3

The BMP initiative is a pioneering effort towards greater transparency in publicaccounts and more efficient governance through full and accurate disclosure of itsfinances. The initiative, entitled Public Record Of Operations and Finance, or PROOF,was undertaken in collaboration with Bangalore’s prominent NGOs. The disseminationof information is facilitated through public discussions, where BMP officials presentthe financial performance to a gathering of citizens.

Under this initiative qualified volunteers analyse the information provided by theBMP. This is discussed at public forums and submitted to the PROOF office. Queriesof citizens are collated and presented to the corporation. All unanswered issues/unsatisfactory answers are put forward in the open forum, and are replied by theCommissioner and the additional commissioner of the BMP.

The process followed under this initiative is fairly comprehensive. After the releaseof the quarterly statements by the BMP, partner NGOs take up the task of reviewand analysis with citizens groups in well-organized and structured workshops. Averageattendance in each of these workshops is 20 people, and the workshops last for abouthalf a day. Queries arising out of several rounds of such workshops are compiled, andsubmitted to the BMP for preparation of answers and explanations. A date for thepublic discussion is scheduled, and invitations are sent out to BMP officials, officersof the state government, prominent citizens and the press. In the public discussions,BMP representatives take the lead in presenting the financial performance to a publicgathering of about 200–250 citizens. The NGO partners then share their experiencesand progress followed by an interactive session with the people.

PROOF discussions conducted so far have raised the government-citizen interactionlevels. Based on the experiences of PROOF over the previous two years, the LocalFund Fiscal Responsibility Act, 2003 was passed by the Government of Karnataka.The CAG (Comptroller and Auditor General) of India is preparing a note on

3 NIUA (2007)

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disclosure, which is based on PROOF. The World Bank has suggested PROOF as aconcept, which should be extended to the state governments. Cities like Chennai,Hyderabad, Nagpur, Mumbai, and Pune have shown interest in replicating thisinitiative.

Public grievance redressal system, Karnataka4

In order to streamline the municipal systems, a new mechanism for public grievanceredressal was introduced in 2005 in 57 large cities of Karnataka. This PGR (publicgrievance redressal) was web-enabled, which the citizens could access anywhereanytime. The PGR module works as a citizen-friendly complaint registration andtracking system that function over the Internet, phones, and in paper form. Citizenscan register their grievances and can then track progress of its redressal in a structuredand efficient manner. Upon registration, the computer system generates a ‘complainttracking number’, using which the status and progress of the complaint can be checkedby the citizen over Internet 24x7. Complaints are categorized and allocated a timelinefor resolving. These complaints are then assigned to the appropriate official/ departmentbased on the complaint type and categorization. Complaints are auto-routed to theappropriate redressal officer. The system is developed in such a manner that ifcomplaints are not redressed within the allotted time they automatically get escalatedto the higher-level officer.

The Directorate of Municipal Administration office constantly monitors the statusand generates weekly report of the PGR system across the 57 cities. The efficiency ofthe redressal of grievances is also measured and accordingly, cities are ranked. Thebenefits of the PGR system have been that it has introduced transparency andaccountability of the municipal staff. This system is not only useful to redress individualcitizen’s complaints but also useful to understand ‘what kind of problems occur atwhich parts of the city at what time of the year’. Since much of this information isfreely available online, citizens and other city stakeholders can understand the city’sproblems and constructively participate in the governance.

E-governance – Bangalore One Initiative, GoK5

In order to provide integrated services to citizens using ICT (information andcommunications technology) tools, the GoK (Government of Karnataka) set up ‘one-stop-shop’ facilities. It implemented an e-governance project called the Bangalore Oneor B1 Project. The vision of the B1 Project is ‘to provide to the citizens of Karnataka,all G2C and G2B one-stop services and information of departments and agencies ofcentral, state and local governments in an efficient, reliable, transparent, and integratedmanner on a sustained basis through easy access to a chain of computerized ICSCs

4 NIUA (2007)5 http://www.bangaloreone.gov.in/public/aboutbone.aspx

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(integrated citizen service centres) and through multiple delivery channels likeElectronic Kiosks, mobile phones and the Internet. Various government departmentslike BESCOM (Bangalore Electricity Supply Company), BMP (Bangalore MahanagarPalike), BSNL (Bharat Sanchar Nigam Ltd), RTO (Regional Transport Office), RPO(Regional Passport Office), the Department of Labour, BWSSB (Bangalore WaterSupply and Sewerage Board) have integrated their citizen-specific services withBangalore One. Earlier, for availing same services, citizens had to go to different officesin different parts of the city. B1 services help citizens to avail all these services eitherfrom their homes or nearest citizen centre.

Equity

A case of Bangalore Water Board’s services to slums

The BWSSB (Bangalore Water Supply and Sewerage Board) instituted a programmeto connect city slums to the utility’s water and sanitation network. The programmelaunched in 2002, provided the newly added wards of the city with supply, feeder anddistribution pipes, so that every house could have a domestic connection. Some ofthe important aspects of this case study are discussed below.P Initially, the BWSSB made it mandatory for slum dwellers to produce the land title

documents and recent property tax receipts to qualify for individual water andsanitation connection. On the intercession of the main funding and mobilizingagency of the programme, AUS-AID, the BWSSB decided to permit other proofslike ration cards, electricity bills, and election ID cards for anybody to apply forthe connection.• For very poor and congested slums, shared connection among 8–12 households

were given.• Connection fees were lowered for all slums. The state-level Urban Development

Department granted permission for a new tariff structure, which considerablylowered the minimum monthly bill.

• The BWSSB also created a ‘social development unit’ with a mandate to continueworking in slums. By 2005, the Social Development Unit had started workingin 46 slums, out of which 30 were receiving regular water by mid 2006.

Over 46 poor communities have been mobilized so far, representing about 10% ofthe city’s slums. This was a first of its kind initiative in which the poor were treated asa customer segment both in terms of documentation requirements for connection andin terms of user charges structure.

International review

It is being recognized by cities across the globe that effective urban governance requiresnot only a decentralized institutional structure but also one that can be held

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accountable by people that it governs. Most countries are, therefore, introducingmechanisms whereby more transparency and accountability can be introduced in theworking of the local authorities.

Bangladesh, for instance, has initiated committees of concerned citizens, whereinwell-trusted and respected individuals from the local community assess the activitiesof the local service providers. This initiative is similar to the Bangalore Citizen’s ReportCard and can be replicated in other Indian cities as well. An important learning fromthis initiative is that the members of the committee need to be chosen with care so asto ensure that they are motivated principally by the desire to better their communities.

IT application tools and the Internet are being used effectively in a number ofcountries to improve services and reduce the scope for corruption. E-procurement hasbeen found an effective way for reducing corruption in public procurement in Finland.Similarly, in Seoul, under the OPEN system, all services requesting for and providedby the local authorities are tracked online. This provides instant access to informationto users on the status of their applications and the reasons wherever any request isdenied. Such IT-enabled systems are being introduced in India both for procurementand for consumer grievance redressal, especially in the southern states and need tobe replicated in other states as well.

The importance of public participation in the governance process is beingrecognized and cities are making efforts to include planning and budgeting under therealm of public participation. A major initiative pioneered in Brazil and one that isnow being attempted in a number of countries, including India (Kerala conducts suchexercises), is the concept of participatory budgeting. Here, citizens are involved in thecity’s capital budget planning, that is, deciding and prioritizing projects to beundertaken and also overseeing their implementation. This kind of initiative requiresa lot of commitment on part of the local authorities and awareness on part of citizensto make informed decisions. In another interesting initiative in Jordan, publicparticipation was used as an effective mechanism for settling disputes relating to therehabilitation of inhabitants in a particular region. This case study brings out the needto involve the affected people in the decision-making process such that they understandthe need for change and are also satisfied with the rehabilitation programme chartedout. Resettlement is a major issue in city planning in India and a cause of muchresentment. Such public participation could prove to be effective in settling theseresettlement disputes in India.

In Canada, a number of cities have appointed officials who would guide membersof parliament and senior public officials on ethical issues, especially issues relating toconflict of interest. This mechanism may be difficult to replicate in India. First, theremay be opposition from the public officials themselves to such an external authorityto guide them. Second, it would only lead to multiplicity in the governance processand, therefore, greater avenues for corruption.

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Citizen’s participation

Score card surveys through committees of concerned citizens in Bangladesh

Transparency International in Bangladesh has set up six locally based CCCs(committees of concerned citizens) in different regions of Bangladesh, which conductscorecard surveys about the services being provided by local governments. An elaborateprocess is followed for selecting the areas to host the CCCs and for selecting the localresidents who would be its members. For selection of the districts to host the CCCs,the specified requirements included minimal distance from the capital city of Dhaka,the location to be a full parliamentary constituency with access to a range of amenitiesand facilities (especially communications), availability of suitable persons, existingnetworks of NGOs and professional organizations, and so on. For selection of CCCmembers, there is a lengthy list of requirements, as well as desired qualifications, allof which emphasize the importance of obtaining well respected and trusted individualhaving a broad range and diversity of individuals, and having people who were activein the community.

The CCCs have now begun to assess the activities of the local providers of servicesin their areas. Though this initiative is relatively new and it is difficult to comment onits success, the process of establishing such a committee has brought out certainlearnings. The first important learning is that any such process will take time to beassimilated within the community. It is also important that there be a demonstrateddemand from the community for this kind of organization and that it should not beperceived as something only fostered from outside. The choice of members is crucial.It is important to ensure that individuals accepting to serve are motivated principallyby a desire to better their communities.

Participatory budgeting in Brazil

The city of Porto Alegre in Brazil pioneered the concept of participatory budgetingin the country. It was a conscious effort by a new political administration in 1989 toincorporate citizens directly into the decision-making process and to break away fromthe old way of doing things. It was intended to be a comprehensive managementpractice that brought the population directly into the formulation and execution ofthe city’s capital projects budget. The process of participatory budgeting relied heavilyon the involvement of local neighbourhood associations, NGOs, and labour unions,and it also required the city administration to dedicate human and financial resourcesto ensure that it would work. The essence of the practice involves the establishmentof citizens’ commissions or forums that help formulate budget priorities and thencontinue to help oversee the works that are being carried out.

Initially, the city had relatively little money for capital projects, so the system startedslowly. However, once the neighbourhoods could notice the tangible benefits ofparticipation, more and more citizens and neighbourhoods became involved. From

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an initial 1500 participants, there are now more than 45 000 residents who take partin this process on an annual basis. Furthermore, the concept of participation has nowbeen extended from budgetary matters to many more aspects of local governmentmanagement, including policy planning.

In Porto Alegre, 100% of the budget is regarded as participatory. The ParticipatoryBudget Council made up of delegates elected in the process examine and influencethe overall budget before it is sent to the Câmara de Vereadores (City Council). Theportion discussed in assemblies in which all citizens can participate corresponds to100% of the resources for investment, which vary every year and represents more than10% of the overall budget.

Numerous other towns in Brazil have adopted some form of participatorybudgeting. There appears to be two important requirements for the process tosucceed—a real and sustained commitment by the city management to transparencyand changing the ways in which things are done, and continuous publicity andeducation of the citizens who are being asked to participate.

City consultation as a conflict resolution tool in Petra, Jordan

The experience of Petra, Jordan, is a good example of using the city consultationmethodology as a tool for the resolution of conflicts. In the early eighties, the B’doultribe was relocated from the Petra Archaeological Park, where they had been livingfor generations, to Oum Sayoum, a site near the entrance of the park where they wereprovided with housing and land. In 1995, a regional master plan aimed at reconcilingurban expansion with the need to preserve the archaeological site of Petra was adopted,but without consulting the population. The plan strictly limited the expansion of OumSayhum, and the B’doul tribe claimed this did not allow room for the needed growthof their settlement. There was also an acute sense that the government was renegingon promises made when the tribe was relocated. The conflict was made worse by thesocial and political marginalization of the tribe and its exclusion from all decision-making structures

After documenting the issues through a participatory research approach, a series ofseparate meetings were organized with the actors in the conflict. A rough draft actionplan was developed, identifying areas of possible understanding and compromise. A formalconsultation, gathering all parties in the conflict, was held with two working groupsdiscussing issues of governance and land. As a first step, the Petra Regional Councilrequested that a comprehensive land use study be carried out to incorporate the viewsof all concerned. This study was used as a basis for revising current planning regulationsand resolving existing land conflicts. A working team was constituted to follow up onthe implementation of the action plan. Ultimately, land was redistributed to the B’doultribe for the expansion of the village, and tribal representatives are now members of localadvisory committees. At the same time, village upgrading and road paving are being

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carried out. The Petra Regional Authority has created committees of local representativesto discuss community problems, as a first step in institutionalizing city consultations.The consultation successfully contributed to the resolution of long standing disputes andlaid down the basis for the continuation of the consultative process.


Open System in Korea

The city of Seoul, South Korea, has instituted a system in which applications forlicenses and other authorizations by the city can be tracked online. The OPEN (OnlineProcedures Enhancement for civil applications) system was developed to achievetransparency in the city’s administration by preventing unnecessary delays or unjusthandling of civil affairs on the part of civil servants.

Among many of the civil transactions handled by the Seoul MetropolitanGovernment, this Web-based system allows citizens to monitor applications for permitsor approvals where corruption is most likely to occur and to raise questions in caseany irregularities are detected. As soon as a citizen files an application for a buildingpermit, for example, government staff in charge will post the details of the receivedapplication on the OPEN site. The citizen can learn at real time whether the applicationhas been received properly, who is currently handling and reviewing the case, whenthe permit is expected to be granted, and if it is returned, then for what reasons.

The unique features of the OPEN system are the following.P Easy access: Without making telephone calls or visits, citizens can monitor

procedures of handling civil applications through the Internet whenever they wantand wherever they are.

P Transparency: Access to real-time information on the details of handling civilapplications, procedure of approval, document review, schedule for process ahead,and so on.

P Increased credibility: Offering access to information to all citizens, fairness, andobjectivity are secured in city administration, thereby removing public distrust.

Transparency in tendering procedures through the use of IT – Pori, Finland

In the Finnish city of Pori and in fact, across Finland, Finnish national legislation andthe directives of the European Union form the basis for public procurement. Theprinciple in choosing the least-cost tender is still valid. The city of Pori has successfullyintroduced the use of Internet to enhance transparency in procurement procedures.Anyone can bid after finding the call for tender. For all known potential bidders, theprocurement unit sends an email about ongoing calls for the tender. Paper versionsare not used at all except for some faxes that companies without Internet might need.This ‘e-tendering’ process has been designed in close cooperation with the potentialbidding companies.

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The city of Pori started calling for tenders on the Internet in 1997. The policybecame national in 2001, when the Ministry of Trade and Industry initiated a modelof e-tendering called Public Markets. This Web page is a meeting point for purchasersand suppliers concerning procurements under the thresholds set by the EuropeanUnion. This innovation supports the standards set by the city of Pori, and the citynow announces its call for tenders on both pages. The city has also introduced aspecially designed Web-based purchasing system for certain product groups.

Guaranteed transparency is not the only benefit of the use of new technologies.All stakeholders in the tendering procedure (procurement department, suppliers,invoicing department, and so on) benefit, since the process is managed more efficiently.The city of Pori not only organizes its own procurements but also procurement servicesfor nine other local authorities. This has been possible only because of the effectiveuse of new technologies.

Capacity building and training

Ethics guidance in Canadian legislation

In Canada, a number of provinces – and the federal government – have introduced poststo provide guidance on ethical issues to parliamentarians and senior public officials. Thesepositions are variously titled ‘ethics commissioner’ (Alberta), ‘integrity commissioner’(Ontario), ‘conflict of interest commissioner’ (British Columbia, Saskatchewan, NovaScotia, New Brunswick, Northwest Territories and Yukon), ‘commissioner of members’interests’ (New Foundland), or ‘ethics counsellor’ (federal government).

These offices all recognize that in the area of ethics, there are two major risks whenrelying wholly on a strictly legalistic system. First, public office holders can often forgetwhat truly ethical conduct actually is in the real world of public life, and instead defendthemselves by dwelling on what they understand to be the legal technicalities of wordsand concepts. Secondly, rules are often extremely detailed about matters that shouldbe self-evident to anyone with sound moral judgment, leaving the average citizen withthe impression that those appointed to public life have no moral sense whatsoever.When this happens, it can do more to corrode public confidence than enhance it.

Canada’s federal government has taken an approach that assumes that public officeholders do want to take ethical actions. It assumes they do want to earn a higher levelof respect among citizens. For this reason, it has chosen not to take the other majorapproach to ethics, that is, rigidly codifying ethical behaviour, usually through a seriesof ‘thou shall nots’. The Canadian approach to building and managing an ethicsstructure turns on avoiding possibilities for conflict of interest well before the fact. Itfocuses on working with people, based on the assumption that they do want to do theright thing.

The Federal Ethics Counsellor’s Office deals with potential conflicts of interest andother ethical issues for those most likely to be able to influence critical decisions in

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the federal government. This covers all members of the federal cabinet, including thePrime Minister. It covers their spouses and dependent children; members of ministers’political staff; and senior officials in the Federal Public Service. The office handlesthe monitoring of the assets, incomes, and liabilities of those it oversees.

The office is also responsible for the Lobbyists Registration Act and theLobbyists’ Code of Conduct. These are designed to bring a level of openness tolobbying activities and ensure strong professional standards for the people involvedin that work. The office, of course, does not replace the role of the police,prosecutors, and judges when it comes to suspected breaches of the criminal law.Rather it deals with the grey areas of situations that could realistically appear wrongto citizens, without ever being illegal. Its role is designed to provide advice andcounsel to those in government, not to act as a prosecutor, judge or jury. In practice,the office works closely with those covered by the Code. They come with questionsabout how a given asset or interest should be treated, and the office offers advice.The Prime Minister is also asked to investigate and comment on specific issues asand when these arise.

Defining good governance and parameters of good governance

Various definitions and studies on the concept of good governance were referred toin order to arrive at the basic framework of governance.

The World Bank defines ‘good governance’ with special relevance for the developingworld as ‘Good governance is epitomized by predictable, open and enlightened policy-making, a bureaucracy imbued with a professional ethos acting in furtherance of thepublic good, the rule of law, transparent processes, and a strong civil societyparticipating in public affairs.’

The UN Global Campaign on Urban Governance has proposed that good urbangovernance is characterized by sustainability, subsidiarity, equity, efficiency,transparency, and accountability, civic engagement and citizenship, and security, andthat these norms are interdependent and mutually reinforcing.

The UNESCAP (United Nations Economic and Social Commission for Asia andthe Pacific) looks at good governance as one that is participatory, consensus oriented,accountable, transparent, responsive, effective and efficient, equitable and inclusive andfollows the rule of law.

The ADB’s (Asian Development Bank’s) approach to governance, established as aCore Strategic Area of Intervention under its Long-term Strategic Framework (2001–15), recognizes the importance of capacity development and identifies four keyinterrelated elements that are considered necessary to sustain efforts and ensure results.These are accountability, predictability, participation and transparency. As per the ADB,‘Good governance ensures transparent use of public funds, strengthens anti-corruption,encourages growth of the private sector and corporate governance, promotes effective

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delivery of public services, and helps to establish the rule of law. Good governanceinvolves the poor and NGOs in the planning and implementation of programmes. Itis closely linked to institutional and organizational capacity building and networkrelations.’

The definition given by AusAID says ‘Good governance depends on transparency,accountability and equality in ways that are responsive to the needs of people. It iscomposed of the mechanisms, processes and institutions through which citizens andgroups can articulate their interests, exercise their legal rights, meet their obligationsand mediate their differences.’

According the OECD (Organization for Economic Cooperation and Development)definition, ‘Good Governance incorporates eight major characteristics, which areparticipation, consensus oriented, accountable, transparent, responsive, effective andefficient, equitable and inclusive, and that which follows the rule of law. It ensuresthat the corruption is minimized, and the views of the minority and the aspirations ofthe most vulnerable masses are taken into account while decision-making (OECD2001).

The OECD document provides a comprehensive understanding of variousparameters of good governance. These are discussed below.

Participation means freedom of association and expression on the one hand and anorganized civil society on the other hand and needs to be informed and organized. Itcould be either direct or through legitimate intermediate institutions or representatives.

Transparency means that decisions taken and their enforcement are done in amanner that follows rules and regulations. It also means that information is freelyavailable and directly accessible to those who will be affected by such decisionsand their enforcement and that information is provided in easily understandableforms and media.

Effectiveness and efficiency in good governance means that processes andinstitutions produce results that meet the needs of society while making the best useof resources at their disposal. The concept of efficiency also includes the sustainableuse of natural resources and the protection of the environment.

Responsiveness in good governance requires that institutions and processes try toserve all stakeholders within a reasonable time-frame.

Accountability is a key requirement of good governance. In general, an organizationor an institution is accountable to those who will be affected by its decisions or actions.Accountability always essentially encompasses transparency and the rule of law.

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Consensus in good governance is that which intercepts different interests in societyto reach a broad consensus on what is in the best interest of the whole communityand how this can be achieved. It also requires a broad and long-term perspectiveon what is needed for sustainable human development and how to achieve the goalsof such development.

Equity and inclusiveness ensure that no one is excluded from the mainstream ofsociety. This requires that the most vulnerable particularly have the opportunities towell being.

Rule of law in good governance requires fair legal frameworks that are enforcedimpartially and ensure full protection of human rights, particularly those ofminorities.

Research framework

Good governance is a prerequisite for achieving sustainability. Governance forsustainability involves integrating the three pillars of sustainability; environmental, socialand economic, within the framework of governance processes and to administer thesame to achieve sustainable societies.

It is difficult to arrive at an ideal definition of ‘good governance’ that wouldcomprehensively define the essence of good governance in the context of this study.The UNESCAP definition for good governance comes closest to a comprehensiveunderstanding of governance issues in the Indian context. It defines good governanceas one that is ‘participatory, consensus-oriented, accountable, transparent, responsive,effective and efficient, equitable and inclusive and follows the rule of law.’

A review of the parameters of good governance identified by various developmentalinstitutions, including UNESCAP, helped us in shortlisting parameters of goodgovernance that are most relevant in the Indian context and given the challenges facedin urban governance in the country. These identified parameters of good governanceare decentralization, transparency and accountability, public participation, capacityof the municipal bodies, and equity. These parameters are discussed in detail inTable 1.

These parameters have been used to analyse the deficiencies in the current citygovernance structure. Literature review was also centred on identifying best practicesin urban governance and delivery of services with respect to these parameters. Therecommendations also delve around improving the institutional setup around theseparameters.

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Table 1 Parameters of good governance most relevant in the Indian context

Parameter Context Detailing the parameter

Decentralization Legal/ institutional Responsibility for service provision should be allocated on the

mechanism for devolution basis of the principle of subsidiarity, that is, at the closest

of powers and extent of appropriate level consistent with efficient and cost-effective

devolution, extent of delivery of services.

decentralization within the

municipal body

Transparency Process accountability Transparency and accountability are essential to enable

and accountability stakeholder to understand the local government and

citizen-centric decisions examine who benefits from decisions and actions. Access to

information is fundamental for empowering stakeholders. Laws

and public policies should be applied in a predictable manner

and this can happen only if there is transparency and

accountability in the urban governance process.

Civil society Public opinion Diverse and meaningful public input helps decision-makers

participation Women’s participation to consider different issues, perspectives, and options when

defining a problem; to gather new knowledge; to integrate

public concerns into decision-making; and to manage social

conflicts by bringing different stakeholders together at an early

stage. Women are most affected and are generally more

familiar with issues of basic services and hence their

participation is vital for improved governance.

Capacity Financial,operational Attributes include the capacity of local government and local

(including private institutions to act autonomously and independently; the availability

participation) of resources (both human and financial) to provide access; and the

ability in them to let other stakeholders and civil society (media and

NGOs) to participate in governance processes and analyse issues.

Equity Access to basic services Ensuring access to services to the urban poor and addressing

(quality and quantity) concerns of the poor.

Analysing the existing situation: governance

Analysis of the legal provisions relating to municipal governance

74th Constitutional Amendment Act

The most important initiative undertaken for decentralization was the enactment ofthe 74th Constitutional Amendment Bill in 1992. This Act sought to give a new leaseof life to municipal bodies by identifying them as the third tier of urban governance.

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The Amendment Act focused on devolving additional functions to the municipal bodiesand urging the state governments to assign them more taxation powers commensurateto their additional responsibilities.

The 74th CAA (Constitutional Amendment Act) made provisions for variousaspects of urban governance. This study limits itself to an assessment of the provisionswith respect to our identified parameters of good governance. The following box liststhe provisions of the 74th Constitutional Amendment Act that have a bearing ondecentralization, accountability, public participation, and capacity of the municipalbodies.

In this section, the study examines the extent of implementation of the above-mentioned provisions of the 74th Constitutional Amendment Act across the country.

Extent of implementation of 74th CAA in various states

The provisions have been implemented to various extents in different states and arediscussed below. The provisions of the Act, however, do not apply to certain scheduledand tribal areas of India, namely, Meghalaya, Mizoram and Nagaland.

Municipal elections and functioning of ward committees

As per a study conducted by the NIUA (National Institute of Urban Affairs), municipalelections have been held by most of the states. Nine states have constituted wardcommittees to ensure representation from each ward in the decision-making process.However, ward committees are functional only in Tamil Nadu and Kerala. In fact,Kerala is the only state where the ward committees are functioning successfully ineach and every ward and in towns having population above 1 lakh (Mathur 2007).

Transferring of functional responsibilities

Most of the states have incorporated provision in the Municipal Acts for the devolutionof power to the municipal bodies. However, the extent of functions devolved differs

Box 1 Important provisions of the 74th Constitutional Amendment Act

The Twelfth Schedule of the Constitution has listed 18 functions of the urban local bodies.

In order that the urban local bodies can perform the functions assigned to them, the Legislature of a State shall assign

them specific taxes, duties, tolls and levies and authorize them to impose, collect, and appropriate the same.

Each State shall also constitute a Finance Commission, which shall review the financial position of the urban local bodies

and recommend the principles, which should govern the devolution of resources, including grant-in-aid from the

Consolidated Fund of the State of these bodies.

In each district a District Planning Committee shall be constituted to consolidate the plan prepared by the urban and

rural local bodies.

Similarly, for each metropolitan area, a Metropolitan Planning Committee shall be constituted to prepare a development

plan for the metropolitan area a whole.

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from state to state. The states of Kerala, West Bengal, and Tamil Nadu have in factassigned some additional responsibilities apart from those mentioned in the 12thSchedule.

State finance commission and financial reforms

The finance commissions constituted in various states of India have attempted a detailedreview of the financial position of the municipal bodies. Most states have constitutedtwo SFCs (state finance commissions) so far. A review of available information on thestatus of ATRs reveals that in respect of the first SFC reports, the ATRs have beensubmitted and approved by the state government/legislature in almost all states. Regardingthe status of ATRs with respect to the second SFC reports, it is observed that these reportshave been submitted and approved only in a few states (Mathur 2007).

Constitution and functioning of DPCs and MPCs

The DPCs (district planning committees) were constituted with a view to achievingintegrated regional planning. It was envisaged that the DPCs would prepare draftdevelopment plans, including spatial plan for the district, and would integrate thecommon interest of the rural and urban areas within the district. Their role wouldalso be advisory to the local bodies in preparation of development plans and theireffective implementation. Coordination and monitoring of implementation of districtdevelopment plans and allocation of resources to local bodies for planning andimplementation of local-level projects contained in the district development planswould be another area of intervention by the DPCs.

The DPCs have been constituted in about 10 states of India but are functionalonly in the states of Karnataka, Kerala, and Tamil Nadu. Others constituted are eithernon-functional or lack executive powers. For instance, DPCs in Madhya Pradesh haveno executive powers.

MPCs (metropolitan planning committees) were to be constituted in everymetropolitan area. The purpose was to accord constitutional recognition to metro-regional planning with a view to augmenting investment in economic activities andinfrastructure, by putting in spatial planning inputs. MPCs would be responsible forfunctions such as preparation of draft development plan for the metropolitan areas,spatial coordination of plans prepared by the municipalities and panchayats in themetro area, and recommending modifications in the local area plan. The MPCs wouldalso advise local bodies in preparation of development plans and, thereafter, monitoreffective implementation of approved development plan of the region. Theimplementation of the provision for MPC has been poor. It is only in the state of WestBengal that the MPC has been created (Mathur 2007). In fact, a major gap in theimplementation of the 74th Constitutional Amendment has been insufficient progressin establishing MPCs and DPCs.

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Observations and analysis on the implementation of the provisions of the 74th Constitutional

Amendment Act

A review of the status of implementation of the provisions of the 74th CAA relevantto our parameters revealed that states have incorporated provisions in their municipalacts for transferring additional functions to the municipal body, but the extent offunctions transferred differs from state to state. Further, the performance of municipalbodies in undertaking these functions varies from city to city even in the same state.

Discussions with the stakeholders revealed that capacity and resource constraintsof the municipal body are among the main reasons for this difference in theperformance of municipal bodies. While the larger municipal corporations still haveaccess to funds, the smaller municipal councils are financially very weak. Further,the devolution of functions to the municipal bodies is also affected by the fact that insome cities the parastatals, which traditionally delivered certain basic functions, havenot been dismantled. As a result, they continue to perform certain functions, whichmay have been passed on to the municipal bodies through an amendment to theMunicipal Act.

Amongst municipalities in Gujarat, Surat stands out as an example of goodmunicipal governance. Over the years, the Surat Municipal Corporation has taken anumber of initiatives to improve its internal working, which reflects finally in the qualityof services provided to the public. Citizens in Surat are fairly satisfied with the qualityof basic service and have a strong sense of pride in the city. Discussion with stakeholdersin Surat and in other two cities visited as part of this study brought out that the caseof Surat is unique and the success in municipal reforms was largely an individual’sinitiative (the executive head). It was also forced upon the administrative machineryby the outbreak of plague in the early 1990s and the subsequent public discontentwith the city administration.

The visit to Shillong provided an extremely useful understanding of the predicamentof the north-eastern states like Meghalaya. Being a predominantly tribal area, mostparts of the state do not even come under the purview of the 74th ConstitutionalAmendment. The state has its own structure of local governance called the Dorbars,which is an extension of the rural structure into the urban areas. It comprises traditionalelected representatives who work along with the locals for the provision of basicservices. The municipal body has control over a very limited area. An importantlearning from this state is that the urban reforms mandated under the JNNURM(Jawaharlal Nehru National Urban Renewal Mission), may not be implementable ina few of the north-eastern states. Therefore, development projects in these cities willhave to funded through other schemes or through modifications in the requirementfor mandatory governance reforms under the JNNURM.

Certain other recommendations of the 74th Constitutional Amendment, whichprovide for greater public participation and inclusion of municipal bodies in planning,

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have not been realized in many cities. Ward committees, which provide space for citizenparticipation in urban governance, have been constituted in only nine states and arefunctional in even fewer states. For instance, in Andhra Pradesh and Karnataka, theward committees are practically non-functional except in Hyderabad and in Bangalore.Kerala is a unique example where ward committees have been constituted in everyward and in towns with a population of over one lakh . The DPCs, which were toenable consolidated planning and which envisaged a larger role for municipal bodiesin planning have been constituted in only ten states. Of these states, DPCs are notfunctioning in at least three states. The provision for constituting an MPC(metropolitan planning committee) has been implemented by a single state—WestBengal (Mathur 2007).

Community Participation Law

It is acknowledged by policy-makers that there is a need for greater communityparticipation in urban governance in order to improve the state of urban services. TheCommunity Participation Law seeks to empower citizens and to make localgovernments accountable. This law has been built into the JNNURM and made amandatory reform measure in order for states to avail funding under the JNNURM.

The area sabha under the Community Participation Law is an urban counterpartof the gram sabha. Gram sabhas have proven to be effective in improving informationlevels, providing opportunity for marginalized sections, and have positive outcomesfor the poor. The same benefits were expected to emerge through the establishmentof area sabhas in urban areas.

Currently, the community initiatives addressing the poor are the self-help groupsand the user groups supported by the NGOs. Also, neighbourhood-level concerns are

Box 2 Provisions of the Community Participation Law

The Bill prescribes the area sabha as the last platform for representation in the hierarchy, where ward committees and

municipal corporations are immediate levels that follow. Every polling station, the smallest unit, defines the boundaries

of the area sabha. The Bill prescribes the structure, rights, powers, and functions of the area sabha. The bill also prescribes,

detailed provisions regarding constitution and governance of Ward Committees.

The law enables constitution of area sabhas, which are essentially entities governed by an area representative. The

election of the office of area sabha representative in the various areas in any municipality shall be conducted under the

aegis of the State Election Commission. The area sabha representative of any area shall be a member of the ward

committee of his own ward. The area sabha representatives would constitute not less than two-third of the total members

of the ward committee.

The aim behind constituting area sabhas under the law was to increase representation from the grass roots. This would

be made possible by allowing for the representatives from each polling booth, that is, each area sabha to become

members of the ward committee. Thus, the number of area sabhas within a ward would equal the number of members

within the ward committee of that ward. Therefore, the larger the municipality, the greater the number of wards and greater

representation from area sabhas. Also this would imply increased and active participation of the citizens in the decision-

making process.

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usually taken care by the RWAs. However, these have no formal links to the municipalsystems. The area sabha system can prove beneficial at this stage to formalizecommunity participation within the local governance mechanism. Mumbai hassuccessfully adopted the model of the area sabhas.

Overall, the implementation of the Community Participation Law is poor. So far,only three states, namely, Andhra Pradesh, Assam, and Gujarat have enacted the law.6

Public Disclosure Law

The Public Disclosure Law (on the lines of the Right to Information Act) seeks toempower citizens and make local governments accountable and transparent in theirfunctioning.

The implementation of public disclosure law is also far from satisfactory. So far,only six states – Andhra Pradesh, Assam, Gujarat, Maharashtra, Tripura, and UttarPradesh – have enacted the Public Disclosure Law.7 Discussions with stakeholdersbrought out that municipal bodies generally provide for public disclosure through theRTI (Right to Information) Act or through their public grievance mechanism.

Analysis of the urban reform initiatives

The GoI (Government of India) initiated fiscal and infrastructure reforms to face thechallenges of meeting ever-increasing urban infrastructure demands.

Resource mobilization (fiscal reforms)

In order to further strengthen the ULBs, reforms were suggested in 2002/03 with theprime focus on improving the governance and management of cities. These reformsfocused on new concepts and tools to meet the urban infrastructure challenges. Someof the new approaches that were adopted to improve the urban infrastructure statusincluded the following.P Developing commercially viable urban infrastructure projectsP Financing by accessing capital market

6 http://www.transport.vic.gov.au/doi/internet/transport.nsf/AllDocs/FE45C4AFFB575E49CA256E7C00208161?OpenDocument#survey; last accessed on 28.10.08

7 http://www.jnnurm.nic.in/nurmudweb/cityuser/reform_data /overall_status.pdf

Box 3 Provisions of the Public Disclosure Law

The states, under the JNNURM, are required to enact a Public Disclosure Law, which mandates local bodies to periodically

disclose information to its citizens.

This law is meant to provide transparency and accountability in the functioning of municipalities wherein every

municipality enacting this law shall have to maintain and publish all its records duly catalogued and indexed. The

disclosure law shall include disclosure of information relating to service levels, capacity, expenditure and income,

municipal deliberations, planning, and budget.

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P Credit rating of municipal and urban infrastructure entitiesP Forging public–private partnership in the provision of urban infrastructure

In addition to these new approaches, the role of IT in improving urban governanceand management was also recognized.

Three instruments – URIF (Urban Reform Incentive Fund), CCF (City ChallengeFund), and PFDS (Pooled Finance Development Scheme) – were initiated to catalyseurban sector reforms. In order to provide financial support for reforms, the URIF,with an initial allocation of Rs 500 crore, was announced in the Union Budget of 2002/03. The fund was set up to provide reform-linked assistance to the states by enteringinto an MoA (memorandum of agreement) with the central ministry to implementthe following reforms.P Repeal of Urban Land Ceiling and Regulation ActP Rationalization of stamp dutyP Reform of rent controlP Introduction of computerized process of registrationP Reform of property taxP Levy of reasonable user chargesP Introduction of double entry system of accounting in ULBs

By 2005, 24 states had signed an MoA under URIF but only a few of them hadimplemented the reforms. URIF was discontinued as a separate scheme in the sameyear and subsumed when the 2005/06 budget called for setting it up again as a partof the JNNURM.

The GoI, in an effort to push forward and strengthen the reform agenda, mergedall the ongoing improvement schemes into three schemes, namely, the JNNURM, theUIDSSMT (Urban Infrastructure Development Scheme for Small and MediumTowns); and IHSDP (Integrated Housing and Slum Development Programme). Theseschemes are discussed in detail in the following sections.

Jawaharlal Nehru National Urban Renewal Mission

In 2004/05, it was realized that the financial support provided to the state governmentsfor urban infrastructure development through centrally sponsored schemes weremeagre. It was then that the GoI launched the JNNURM in December 2005, aprogramme for providing central assistance to the ULBs for urban infrastructuredevelopment, linked to their commitment to implement the prescribed reforms. Citieswith million-plus population, state capitals, and cities of cultural and tourist importancehave been included with an estimated allocation of 50 000 crore, which includedinvestment for basic infrastructure and services for a period of seven years (2005–12).

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The Mission was launched to integrate the various reform initiatives and pace upthe efforts to overcome fiscal stress faced by the ULBs for the development of theurban infrastructure in cities. The JNNURM as envisaged aimed at creatingeconomically productive, efficient, equitable and responsive cities. The centrepiece ofthe approach was urban reforms and in order to achieve the desired outcomes, a reformagenda was formulated. The major components of the reform agenda linked to theJNNURM include the following.P Strengthening ULBs by devolving functions and financial powers as envisaged in

the 74th CAAP Changing existing legislations and enacting new ones to facilitate reforms, improving

the financial management and accounting systems and other capabilitiesP Reforming property tax administration and assessment to increase coverage and

complianceP Rationalizing the rates of user charges, duties, fees, and so onP Improving governance and service delivery through ICT applications, and improving

access to basic services by the urban poor and providing them security of tenure ataffordable prices

The main goals of the JNNURM are improving and augmenting the economic andsocial infrastructure of the cities, ensuring basic services to the urban poor, includingsecurity of tenure at affordable prices, initiating wide-ranging urban sector reforms,strengthening municipal governments and their functioning, and increased publicparticipation and improved governance.

While 63 selected cities have been brought under the purview of the JNNURM,ULBs of remaining cities are proposed to be covered under the UIDSSMT andIHSDP.

Urban Integrated Development Scheme for Small and Medium Towns

The scheme applies to all cities/towns as per the 2001 census, except cities/townscovered under the JNNURM. The allocation of funds among states will be on the basisof the state’s urban population to total urban population in the country, and states mayallocate funds to towns/cities based on similar formula. However, funds would beprovided to only those towns and cities where elections to local bodies have been held.The state governments may prioritize towns and cities on the basis of their felt need.

The objectives of this scheme are to improve infrastructure facilities and help createdurable public assets and quality-oriented services, to enhance PPP (public–privatepartnership) in infrastructure development, and to promote planned integrateddevelopment in the towns and cities. The sharing of funds would be in the ratio of80:10 between the central and state government and the balance 10% could be raisedby the nodal/implementing agencies from the financial institutions.

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Higher priority would be given to the following projects under the project.P Water supply (including desalination plants) and sanitationP Sewerage and solid waste managementP Road networkP Construction and improvement of drains/storm-water drains.

Cities/towns/parastatals will be sanctioned project-based grants/loans that in turnwould leverage, to the extent feasible, additional resources from financial institutions/private sector/capital market.

3. Integrated Housing and Slum Development Programme

The IHSDP focuses on improvement of slums in cities and towns not covered underthe JNNURM. The target group under the scheme is slum dwellers from all sectionsof the community through a cluster approach. Allocation of funds among states willbe on the basis of the states’ urban slum population to total urban slum population inthe country.

The programme aims at ameliorating the conditions of urban slum dwellers, whodo not possess adequate shelter, lack provision of basic services, and reside inunhygienic conditions. The scheme seeks to enhance public and private investmentsin housing and infrastructure development in urban areas. The components of thescheme will include all slum improvement/upgradation/relocation projects, includingup gradation/new construction of houses and infrastructure facilities.

Observations on the JNNRUM programme

The JNNURM reform agenda calls for a number of measures to improve urbangovernance, and states have to undertake reforms at the state and city level in orderto access JNNURM funds. However, as implementation gets under way, it comes outthat while all state governments have committed to undertake governance reforms asstipulated under the JNNRUM within a specific time-frame, most have not providedany detail plan of action on how the reforms would be implemented. Already, a numberof states have missed deadlines for key governance reforms.8 Interaction with state-level and municipal officials brought out a number of issues related to the JNNURM.The part funding, which has to be organized by ULBs, has been a major impedimentfor accessing funds under the JNNURM. Most municipal bodies are not in a positionto organize these funds either internally or from the market. Capacity constraints ofthe municipality are a major reason why municipal bodies cannot undertake even themandatory accounting reforms recommended by the JNNURM.

8 Based on review of data on city-wise reforms under JNNURM available at http://jnnurm.nic.in/nurmudweb/cityuser/reform_agenda.aspx

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The experience so far also shows that while the JNNURM is essentially directedtowards urban reforms, the response to it has been more in the form of demand forproject-specific funding and cities have not developed a vision. Literature review alsobrings out that the stakeholder consultation during the preparation of the CDPs (CityDevelopment Plan) was inadequate and that lack of reliable and updated databaseswill affect the monitoring and evaluation of the programme (Chamaraj 2006).

Impediments in improved urban governance

Urban governance and management have predominantly been the constitutionaldomain of state government. The municipal bodies have been functioning under thestate governments, which have been delegating authority, powers, and functions to themthrough state legislative enactment. These local institutions of urban government havebecome weak over the years due to a host of factors, including encroachment ontraditional and legitimate municipal functions by creating parastatals and urbandevelopment authorities, weak executive system, fragile fiscal health, and inadequatestaffing and expertise in municipal management (Tewari 2004).

Issues in decentralization

As discussed in the earlier section on implementation of the 74th ConstitutionalAmendment, states have incorporated provisions in their Municipal Acts fortransferring additional functions to the municipal body, but the extent of functionstransferred differs from state to state. Further, the performance of Municipal Bodiesin undertaking these functions varies from city to city even in the same state.Discussions with stakeholders brought out that capacity and resource constraints ofmunicipal bodies are the major reasons for this difference in their performance. Whilethe larger municipal corporations still have access to funds, the smaller municipalcouncils are financially very weak. Further, the devolution of functions to the municipalbodies is also affected by the fact that in some cities, the parastatals, which traditionallydelivered certain basic functions, have not been dismantled. As a result, they continueto perform certain functions that may have legally been passed on to the municipalbodies. The continued existence of the parastatals has led to overlaps and often conflictsin the roles and responsibilities of each agency involved in municipal governance. Insuch a scenario it becomes difficult for the citizens to hold any particular agencyresponsible for inadequate service delivery.

Financial impediments

The ULBs are financially weak, and while there is provision to levy and collect adequateuser charges, such provisions are not fully utilized, mainly due to populistconsiderations. The administration and collection of taxes, fees, and user charges arehighly inefficient.

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Many municipal bodies are running into deficits and are heavily dependant ongovernment grants. The state budgetary allocations have, however, been drying up formost states, and it is being realized that the traditional system of funding based onplan and budgetary allocations will only reduce in the future.

Operational capacity issues

Most ULBs face problems due to lack of capacity, improper staffing patterns, and lackof standardization. They do not have the institutional, operational, educational, andlegal capability to develop commercially viable infrastructure projects, mobilizeresources for the projects, and implement them. A case in point was the ShillongMunicipal Corporation, where discussions with officials brought out the fact that nota single training programme had been conducted for the municipal officials since thecorporation was set up. Even in case of Surat, stakeholders opined that though trainingprogrammes for municipal officials were held at regular intervals, they were far fromsufficient. Capacity building needs are far greater for the lower levels of staff in themunicipal bodies.

Lack of adequate training is the main impediment in introducing new technologiesand management styles in the working of the municipal corporations. E-governanceinitiatives, accounting reforms, and in fact, even private participation all require acertain level of training of the staff on IT systems, accounting norms, and so on.Discussions in Surat brought out that attracting private investment in service deliverywas difficult because the SMC lacked professionalism.

Insufficient public participation

The urban governance system lacks people’s involvement in the decision-making process.While there is little effort on part of the municipal bodies to include people in the process,the problem gets compounded by the fact that there is very little awareness amongstcitizens themselves on their role in the governance process. The Shillong experiencebrought out that even community-based traditional forms of governance are inadequate,given that they do not provide for women’s say in civic matters.

Issues in transparency and accountability

The lack of transparency and accountability in the working of urban local bodies hasalready been brought out in the earlier discussions on the Municipal Disclosure Law.The main impediment towards achieving transparency and accountability is not thelack of understanding on the need for the same but the lack of means to achieve thesame. Most ULBs are severely capacity constrained both in terms of funds andmanpower. In such a scenario, it becomes difficult to put in places systems that wouldenhance accountability. In fact, the root cause of the problem of inefficient servicedelivery is the capacity constraints of ULBs.

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Issues in equity

Service delivery to the urban poor is inadequate. Even where services are provided,the quality, quantity, and point of access are all areas of concern. The major impedimentin providing services to the poor is the problem of land tenure. Municipal bodiesdemand proof of residence for giving out water connections, something that slumdwellers cannot provide. As a result, slum dwellers depend on informal agents for basicservices. In fact, contrary to the assumption that the poor cannot pay, the slum dwellersend up paying higher charges for services provided by informal agents.

Lack of equitable distribution, insufficient access to basic services, and lack ofinclusive planning were common issues observed in all cities visited, though the extentvaried from city to city. It was learnt that the slums notified within the city wereprovided with basic services. However, illegally occupied areas by the poor were leftout of the schemes. Discussions with stakeholders brought out that in Hyderabad,when the development authorities relocated slum dwellers in order to provide themhousing, issues emerged regarding the increased distance to work and the resultingimpact on livelihood.

Identification of the urban poor is itself an issue. There is need for better targetingand proper identification of the urban poor. Lack of adequate data often leads toexclusion of the poor from development plans.

Recommendations for governance

A review of governance issues in the provision of urban basic services clearly revealsthat the biggest challenge in urban reforms is the weak capacity of the municipal bodies.Devolving additional responsibilities to these bodies as mandated under the 74thConstitutional Amendment Act would remain a futile exercise for state governmentsif these additional functions are not simultaneously accompanied by additionalresources and powers for these bodies. Similarly, enhanced accountability, transparency,and public participation in the working of municipal bodies would only be possible ifthe municipal bodies have adequate capacities to put in place systems that wouldsupport greater transparency, accountability, and participation.

The most immediate requirement is, therefore, to focus on the capacity buildingof the municipal bodies. Since the capacities vary widely from city to city, it is necessaryfor all municipal bodies to assess their existing capacities in terms of their personnel,operational, administrative and resource generation capability.

As a first step, all municipal bodies need to assess the sufficiency of their manpowerin terms of their mandate. Municipal bodies would need to assess their existing skillsets with respect to the additional responsibilities that have been devolved to themunder the 74th Constitutional Amendment. They should consider adding experts/specialists such as chartered accountants and environmentalist on their payrolls.

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As a second step, the municipal bodies should identify the areas where they arenot sufficiently equipped and where it would be useful to invite private participationthrough subcontracting, PPP, and other arrangements.

As a third step, municipal bodies, need to take stock of their administrative process,identify those areas where delays occur, and consider introducing IT-enabledprocedures to minimize delays.

The fourth step is to undertake a comprehensive accounting of the expenditureincurred on each service against revenue realized from the service.

Such a comprehensive assessment will give each municipality a fair assessment ofits problems, as well as specific needs.

In this section, this study suggests recommendations that would be applicable toalmost all municipalities, as it focuses on issues common to all. The recommendationshave been discussed under the identified parameters of good governance.

Some of these recommendations will have to be implemented simultaneously whileothers can be prioritized. For instance, devolution of power has to be accompaniedby capacity building of municipal bodies. However, while implementing measures toimprove the financial health of the municipal bodies, recommendations for improvedfinancial management (double accounting, and so on) will need to be undertakenbefore the municipal body can explore alternate sources of funding.

Decentralization

Identifying core functions for all municipal bodies

The role of municipal bodies9 is not uniformly defined and varies from state to state.This institutional arrangement arises because the 74th Amendment leaves it to therespective states to determine which of the 18 functions defined in the XIIth Schedulethey would devolve to the municipal bodies.

Further, in most states, besides the local bodies, there are a number of parastatalinvolved in the delivery of services. Water supply for instance is a function providedby government departments/parastatals in some cities and is shared between theparastal and municipal body in some cities. Often, the municipal bodies manage theO&M (operation and maintenance) works relating to water supply while the parastatal/government department manages the capital works. There are also overlaps in theresponsibilities of the parastals and the municipal bodies, and often, it becomes difficultfor citizens to hold any particular agency responsible for a service. Moreover, theparastatals are accountable to the state government and, therefore, consider themselvestotally above and superior to the municipal body.

This study recommends identifying a set of core functions as mandatory functionsfor all municipal bodies across the country. These functions are the following.9 Unless specified, municipal bodies include all the three forms of local governance (municipal corporation, council,

and nagar panchayat

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P Water SupplyP Drainage and sewerageP Solid waste managementP Preparation of plans for economic development and social justiceP Communication systems (such as construction and maintenance of roads)P Transport system accessories (street lights, parking areas)P Community health and protection of environmentP Markets and slaughterhouseP Promotion of educational, sports and cultural activitiesP Aesthetic EnvironmentP City Planning

All these functions, with the exception of city planning, have been identified ascore municipal functions under Chapter 6, Section 47(1) of the Model MunicipalLaw.10 Also, most Municipal bodies are mandated to perform these functions undertheir respective State Municipalities Acts.

In addition, municipal bodies should also be involved, especially in planning-relatedactivities in transport, power, and building. As part of this study, specificrecommendations have been made on the role of the municipal bodies in power,transport, and buildings and are discussed in the respective chapters on power,transport, and building of this study.

In the Stakeholder Workshop organized by TERI on 1–2 December 2008, a fewurban sectors experts opined that a set of core functions cannot be assigned en massto all municipal bodies. Instead, core functions should be assigned to municipal bodiesbased on the size of the city and its geographical characteristics.

This study acknowledges the fact that the municipal bodies in small and transitionalcities (municipal councils and nagar panchayat) may not be equipped to handle certainfunctions. However, assigning functions based on the size of city would beinappropriate because this would inevitability imply assuming that all municipal bodiesin smaller cities are ill equipped or less equipped than their counterparts in metrosand larger cities. Further, given that the devolution of additional functions is aconstitutional mandate, a more studied approach would be to assign the responsibilityof these functions to the municipal bodies and leave it to the respective municipalbody to evaluate whether it has the requisite capacity to undertake these responsibilities.Wherever a municipal body does not have adequate capability, it can assign a parastatalto undertake a specific function on its behalf. The parastatal should then be madeaccountable to the municipal corporation rather than the state government. Expertspresent in the Stakeholder Workshop agreed that the main issue with parastatal was

10 http://urbanindia.nic.in/moud/legislations/li_by_min/ Model_Municipal_Law/indexmml.html

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concerned with design, wherein instead of municipal bodies, parastatals report to thestate government.

Specifically on the function of water supply, this study recommends that watersupply should remain a responsibility of the municipal body. However, given thecapacity constraints of some of the municipal bodies and given that in a number ofcities the government department provides this service, it is recommended thatmunicipal bodies should manage the O&M functions to begin with and gradually alsotake over the capital works.

This study also recommends that urban agglomerations should be brought underthe purview of the nearest municipal body within a fix time-frame. Meanwhile, thereshould be a coordination mechanism between the municipal body and the serviceprovider to ensure that the service provided in these areas is at least equivalent to thatof services provide in the municipal areas.

Delegation of power within the municipal body

A review of the reform initiatives undertaken by the Surat Municipal Corporationand the Ludhiana Municipal Corporation brings out that increased decentralizationin the working of municipal bodies is a key factor in improving service delivery.In Surat, the officials at the zonal level were given sufficient financial powers thatallowed them to take important implementation decisions for resolving consumerissues. These implementation initiatives would have otherwise been lost in therigmarole of approvals at the higher levels of the municipal bodies. Similarly, inLudhiana, redressal of complaints, tax collection, and many other functions weredecentralized to the zonal level. This improved operations, collection of taxes, andconsumer satisfaction. This study, therefore, recommends that officials at the zonallevel should be given more financial authority/autonomy, and more issues shouldbe resolved at the zonal level.

Capacity

Since it is well acknowledged that the municipal bodies are capacity constrained, theprime focus should be on capacity building. Municipalities need to strengthen theirpersonnel, operational, financial, and technical capabilities.

Personnel capacity

As a first step, each municipal body should formulate a detailed human resource policy,spelling out the guidelines on recruitment, remuneration, career progression, andtraining. This policy should be followed on a continuous basis, irrespective of anychanges in management of the municipal bodies. Municipal bodies should endeavourto link promotions to the productivity of employees. This has successfully beenimplemented in the Ludhiana Municipal Corporation.

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As a second step, municipal bodies should provide for additional staff in areasrequiring specialized expertise, such as accountancy and environmental issues.

As a third step, municipal bodies should regularly organize training programmesto upgrade the skills of its employees. The basic training programmes should pertainto training on IT-enabled systems and training to familiarize with new accountingnorms and systems. Further, and as was rightly brought up in the StakeholderWorkshop, capacity building programmes should be demand driven rather than thecurrent approach based on availability.

Employees of the municipal bodies will also need to be made aware of sustainabilityissues.


Municipal bodies should focus more on the management of service delivery and shouldinvolve themselves in the delivery of those services where alternative options of servicedelivery are not available or are not cost effective. The possibility of privateparticipation should be explored in areas where it would be cost effective to involveprivate players and in areas where municipal bodies lack capabilities.

It is recognized that private participation may not be viable in specific municipalfunctions. A pragmatic approach would be to invite participation in areas where it canhelp improve efficiencies, but where not much investment is expected from the privateplayer. These could be areas such as billing and collection of user charges.

In areas where private participation is necessary and where private investors arenot forthcoming, the state government should explore options for viability gap funding.Further, once private participation is sought, it is important to ensure that privateparticipation is governed by well defined concession agreements/contracts.

Technical capacity

The processes followed by municipal bodies are often outdated and cumbersome. Thereis an urgent need to introduce modern technologies in the management and deliveryof services by the municipal bodies. As a first step, there is need to increase awarenesson the technology options available for municipal functioning and thereafter provideaccess to these technologies as per the requirements of the municipal bodies. Nationaland regional institutions of excellence should be given the responsibility of conductingregular training programmes to educate municipal officials on adopting newtechnologies. The basic technological requirements would be IT-enabled systems (fore-governance) and GIS (geographical information system). As part of this exercise,municipal bodies, should review their current procurement rules and adopt practicessuch as online tendering in order to bring in transparency in the award of contract.

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Financial capacity

Financial capacity of municipal bodies is an area of urgent concern. Municipal bodieshave access to limited number of taxes and most of the remunerative taxes remainwith the state government. However, to begin with, instead of giving additional taxationpowers to the municipal bodies, it would be more fruitful to improve the taxadministration and weed out inefficiencies in assessment and collection of taxes.Financial reforms will have to be implemented in three phases.1 As a first step, all municipal bodies should adopt double entry accrual-based

accounting and improved financial management practices.2 As a second step, there should be focus on improved billing and collection of user

charges.3 At a later stage, the focus should shift towards exploring alternative sources of

income, primarily through market-based instruments.

These recommendations on financial capacity are discussed in detail in the followingsections.

Accounting reforms

P Accrual-based system of accounting should be followed rather than cash basedP Auditing of accounts by independent authority of municipal body should be

mandatory

Recovery of user charge

P User charges should be rationalized and revised periodically. Public consultationsshould be held while revising tariffs, on the lines of consultations in the electricityand telecom sector.

P Municipal bodies, to begin with, should recover the O&M charges for servicesprovided. Gradually, part of the capital cost should also be covered. The stategovernment should provide subsidy, if any, from its budget either to the municipalbody (as in case of the electricity sector) or through a voucher system for the urbanpoor.

P Stiff penalties should be imposed for non-payment of user charges, includingdisconnection of services.

P Billing and collection should be strengthened.P Municipal bodies should install customer-friendly payment mechanisms. In Delhi,

the privatized electricity companies have introduced online billing and paymentsystems. Some municipal bodies are now tying up with banks and with shopkeepersto provide outlets closer to the citizens for depositing payments.

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Effective tax administration

P Loopholes in effective tax administration need to be identified and remedialmeasures taken.

P Incentives can be built into the system for improving tax collection. Some municipalbodies have introduced rebates for early payment of taxes. Initiatives such as propertytax self-assessment have worked well in cities like Hyderabad.

P The billing and collection systems need to be strengthened. These systems shouldbe made IT-enabled as far as possible.

P Incentives and penalties should be imposed on municipal staff responsible for billingand collection.

New and innovate means of financing

In the long run, as discussed earlier, the emphasis has to be on improving the healthof institutions through better asset and exploring alternate sources of funding.

There are several ways of earning additional income from the assets of themunicipalities. Property is a major asset, and municipalities have vast tracts of land inprime areas, which can be developed for commercial purposes and revenues can beearned. In Ludhiana, reconciliation of old land/revenue records alone led to unearthingof 800 properties valued at Rs 190 crore. The Model Municipal Law has recommendeda provision to be included in the Municipal Act, which requires that the municipalityshall prepare an inventory of properties of municipality and, each year, present a reporton changes made in the holdings of its immovable properties, along with the budgetestimate. This provision should be incorporated in all municipal acts. Municipal bodiescan hand over the management of their assets to private parties for a consideration.

Municipal bodies should consider imposing development charges on developmentalactivities such as building of flyovers. The Hyderabad Urban Development Authorityhas started levying this kind of development charge and has successfully improved itsfinancial position.

Municipal bodies will inevitably need to move towards market-based fundingalternatives such as bonds and institutional finance. Resorting to the market will alsocompel the municipal bodies to improve their performance.

Accountability and transparency

Under the JNNURM guidelines, all state governments need to enact the MunicipalDisclosure Law, as a precondition for availing funds under the JNNURM. Thislaw is meant to provide transparency and accountability in the functioning ofmunicipalities, wherein every municipality enacting this law will have to maintainand publish all its records and disclose information on a quarterly basis throughnewspapers, Internet, and notice boards of the municipality and through the wardoffices. This law needs to be enacted by all states and implemented by the

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municipal bodies. The following information should necessarily be provided by allmunicipal bodies.P Audited financial statements on at least an annual basisP Information on service levelsP Planned and actual expenditureP Details on subsidy received from the governmentP Details of master plansP Annual budget allocated to each ward

The state governments should strengthen this mandatory disclosure by organizingindependent audits and surprise checks.

E-governance initiatives need to be greatly encouraged as it is an extremely effectiveand in the long run, a cost-effective tool in increasing information availability. Increaseflow of information between citizens and the municipal body would improveaccountability. In a few cities such as Bangalore and Hyderabad, citizens are providedfacility to submit their grievances online. Thereafter, they can track the status of thesubmission and in case of delays, track the municipal functionary responsible for delaysin redressal. A similar facility is provided to citizens for applying for new serviceconnections.

Municipal bodies should be accountable for the services they provide. Anassessment of the quality of service will also indirectly provide an assessment of thequality of urban governance. The MoUD (Ministry of Urban Development) hasrecently issued the SSLB (Standardized Service Level Benchmark) for benchmarkingurban services (water supply, sewerage, solid waste management, and storm-waterdrainage) on select indicators. The MoUD has also suggested a mechanism for regularcollection, collation, and analysis of performance data at various levels of governanceand broadly defined the role of each agency in compliance and monitoring. It hasfurther suggested that this performance data should be included in the set ofinformation disseminated under the mandatory public disclosure law and thatperformance reports should be generated based on these indicators. TERI in thisreport has suggested additional indicators for water and solid waste, as well as set ofindicators for building and power. These SSLB indicators should be operationalizedby all states, and municipal bodies should be required to periodically submit reportson their performance under these benchmarks. In order to further enhanceaccountability, citizens should also be involved in the examination of the performancereports through the area sabha, RWAs, and NGOs.

Based on these SSLB benchmarks, an annual performance rating of themunicipal body should also be undertaken. The rating should be undertaken forthree sets of municipal bodies within a state–the corporation, council, and nagarpanchayat. To begin with, rating can be undertaken for all municipal corporationsin a state. This initiative will have to be spearheaded by the state government and

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coordinated by the Urban Development Department. The latter would ensure thatthe municipal corporation submit the performance report card at regular intervals.The purpose of such a rating would be to create competition between the municipalcorporations within a state to improve performance. Such a rating can then belinked to disbursal of funds by the state finance commissions, that is, the betterrated corporation would receive more funds.

A more fundamental requirement is for a change in mindset, from looking at theconsumer as a beneficiary of the state services to a consumer who pays for the servicehe receives. While this change in mindset would have to come about by creatingawareness amongst both the service provider and the consumer, systems will have tobe put in place to resolve consumer grievances. It is recommended that a nodal officerbe appointed for each department within the municipal body who is responsible forredresssal of consumer issues. Further an independent authority should be appointedto resolve dispute between consumers and between municipal body and the consumer.The 2nd Administrative Reforms Commission in its report on ‘Local Governance’has recommended setting up an ombudsman at the municipal level but its role hasbeen restricted to addressing issues of corruption and maladministration. Such anombudsman has been already set up in Kerala under an amendment to the KeralaPanchayat Raj Amendment Act, 2001. This ombudsman, an independent quasi-judicialauthority, is mandated to investigate complaints against local governments (both urbanand rural) and their functionaries. This study instead suggests establishing anombudsman on the lines of the ombudsman in the electricity sector that would resolveconsumer disputes and issues. The Electricity Act, 2003, has made provision for anombudsmans under Section 42. This ombudsman is appointed by the state electricityregulatory commission, which also provides for financial support for the ombudsman.This ombudsman is required to submit annual reports of their functioning to theSERCs. This proposed ombudsman for addressing consumer issues with respect tomunicipal services should be appointed by the state government and should directlyreport to the state government. Provision for appointment of ombudsman will haveto be made through appropriate amendment to the Municipalities Act of the states.


Recognizing the need for participation and planning from below, the JNNURM hasmade it mandatory for states to enact the Community Participation Bill. TheCommunity Participation Bill has listed important functions of the area sabhas andthe ward committees. Area sabhas are required to prepare proposals and schemes fordevelopment programmes, verify the beneficiaries of the state support, identifydeficiencies in water supply and street lighting, and provide support in tax mapping.Similarly, the Ward Committees are required to assist in supervision of solid wastemanagement in the ward, prepare development schemes, mobilize labour for social

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welfare schemes, assist in timely collection of taxes, and preparation of ward budget.All these are core functions of municipal bodies and public participation in theseprocesses is expected to strengthen these services. This law, therefore, should beenacted by all state governments and implemented by the municipal bodies.

It is essential to involve citizens in the actual delivery of services. This would notonly help in understanding the concerns and needs of citizens but will also makecitizens more aware of the need for conservation at the user level. Citizens should beinvolved at least in the following activities.P Citizens should be involved in planning and budgeting of municipal activities as

done in Kerala and in a number of countries worldwide.P Citizens should be involved in the maintenance of community halls/parks, and so

on. This will not only improve the quality of urban life but will also inculcate asense of responsibility and ownership amongst citizens.

P It is important to include industry associations or individual companies in themaintenance of community assets such as parks, and so on. In a number of cities,maintenance of parks is given out to companies/financial institutions. In return, thesecompanies are given advertisement space.

P Citizens should also be involved in initiatives like water and electricity conservation.This involvement of citizens would also reduce demand for municipal services.

P· Above all, it is important to raise civic awareness amongst citizens so that theycooperate with the municipal bodies in improving the cities.

Equity

P The foremost requirement is to organize and maintain a strong database on theurban poor. GIS tools should be used in developing databases.

P Technologies such as smart cards need to be introduced, which would do away withthe need for tenural security in the provision of municipal services in unauthorizedareas, including slums. This recommendation on smart cards has been delved intoin detail in the paper on ‘Sustainable Service Delivery in Slums’, included as partof this study.

P Inclusion of integrated housing projects for the urban poor in the largerdevelopment projects in a city or a region should be encouraged. Policies thatprovide incentives to the private developers to invest in affordable housing forthe poor are recommended. More importantly, these schemes need to be madetime-bound in order to ensure that private developers keep their commitments.

P The government can provide differential pricing for the poor through subsidy,but this subsidy should be well targeted through the use of smart cards orvouchers that are given to the identified urban poor for a minimum level ofconsumption.

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Sustainability cell

To achieve the sustainability goals within a municipal organization, it is recommendedthat a sustainability cell be established within each municipal body, which would worktowards achieving the sustainability goals of the city.

The set-up could be a state-level sustainability committee having senior levelplanners, researchers, academicians, and NGOs as members. This committee wouldact as an advisory committee, which will guide and coordinate with the municipal-level sustainability cells.

The sustainability cell at the municipal level would develop a mandate andsustainability indicators as per the city-specific needs and demands and pressure onthe resources. One of the major areas for interventions would be in planning. Thesustainability cell with the municipal body would ensure that every development planor master plan that comes to the management team meets the sustainability criteria.All the initiatives of sustainability with respect to use of energy, water, and constructionof buildings (which have been suggested in the individual sector reports) should bemade the mandate of the municipal level sustainability cell.

This cell should carry out studies to assess the carrying capacity of cities. It wouldalso work on capacity building and raising awareness of municipal staff and the publicon climate change and sustainability.

Provision of basic services by municipal bodies in case of transitioning cities

The 74th Constitutional Amendment Act on decentralization provides for theconstitution of nagar panchayats for urban peripheral areas or transitioning areas. MostIndian states, however, have not been able to constitute nagar panchayats for thesetransitioning areas. This has led to many such areas being governed by the grampanchayats, which in turn have limited functional purview, which is insufficient forthe development of the city in transition. As a result, the governance of transitioningareas is left at the mercy of the central and state government.

For such areas, this study recommends that the nagar panchayats be constitutedas soon as possible and the necessary functions be delegated to them. The nagarpanchayat can take the assistance of the state agencies/parastatals in the actual deliveryof service.

City planning

In most states, planning is undertaken under the development plans and master plans,which are either prepared by the town planning departments or the developmentauthorities. Municipal bodies are not involved in preparation of the development andmaster plans and are generally only involved in implementing the plans. Themultiplicity of agencies also results in conflicts and overlap in the actual role of each.

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A major impediment in the development planning process has been the master planapproach that is followed. The master plans address issues that are long term but failto earmark short- or medium-term action plans to achieve them. Second, usually theagency preparing the plan is different from the agency responsible for implementingthem; hence, there is often misinterpretation in the actual implementation. The masterplans have been criticized on the ground that they have been unrealistic, as they donot delve into the capital budgets required for the purpose of the development. Theurban planning process is devoid of an integrated approach. The spatial and functionallinkages at state region and local levels are explored.

The third impediment in development planning for urban areas has been theinadequate implementation of the master plan and subsequent monitoring. This hasmade the Master plans mere policy documents.

Recommendations on planning

There is an urgent need to address the following issues pertaining to the mandate,powers, and functions of the agencies involved in planning.P It needs to be decided as to who should prepare the development/master plans for

the urban area. Should the master plan be prepared by the parastatal, which hasbeen hitherto doing it or should the ULB prepare it considering that now planningfunction has been devolved to the ULB?

P Further, if the ULB were to prepare the development plans for their area, are theywell equipped (in terms of skills, manpower, expertise, and technical know-how)to do so? (This was a concern specially raised at the Stakeholder Workshop.)

P What would be the role of the parastatals if the urban local body take up the job ofpreparing the development plans?

These were some of the issues that emerged during the city visits. In Surat, forexample, an MPA (Metropolitan Planning Authority) is in the process of being setup. However, most officials of the SMC were of the view that formation of an MPAwould not be of much help. Since the SMC and SUDA (Surat Urban DevelopmentAuthority) are responsible for planning and infrastructure in city, formation of anotherauthority would not only lead to multiplicity of organizations but also overlappingmandates.

In case of Hyderabad, the town planning department under the GHMC (GreaterHyderabad Municipal Corporation) is only responsible for approval of building plansand regularization of structures in its jurisdiction. It is not responsible for any planningfunctions, which are undertaken by a separate agency (Hyderabad Urban DevelopmentAuthority). This is unlike the case of Surat, where the planning process is coordinatedbetween the Town Planning Department and the Town Development Department, bothof which come under the SMC. The Town Planning Department in Hyderabd deals

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with the planning functions (such as preparation of master plans) whereas the TownDevelopment Department gives permission for construction, regularization of illegalconstructions, , and so on. A similar situation exists in many cities across the countryand a strong decentralized local governance system is yet to emerge.

It is recommended that it should be the responsibility of the municipal body toprepare the city plan. The development authority or the town-planning departmentshould be merged with the respective municipal bodies and should act as a technicalwing of the municipal body. Within this governance structure the developmentauthority for the urban development department, should prepare the master plan forthe municipal body.

In case of non-metro cities, these plans should not be considered as stand-aloneplans but should be integrated into the district and regional plans by strict planning.

The MPC can take care of the metropolitan area and the urban agglomerationsfalling in the purview of the metro. The recommended arrangement is shown inFigure 1.

It is recommended that the DPC take up the regional role in development planningand coordinate and consolidate the individual development needs of the urban localbodies falling in their district to assess district-level investment and planning decisions.Coordination between the MPC and DPC is also recommended to ensure how muchof the investment would be directed towards the metropolitan region and that theinterests of other regions /municipal areas are not compromised.

The master plans should be designed and prepared in such a manner that thelong-term vision is broken up into short- and medium-term actions, which are

Figure 1 Proposed structure for coordinated planning

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monitored regularly for consistency of implementation and investments. The masterplan should be reinforced with a strong information base, which is lacking atpresent. The database should be updated and maintained regularly to helpmonitoring and planning for future. Also, there is a need to change the manner inwhich public participation is sought during the preparation of the master plan.Instead of presenting the draft document for public comments, it would be betterto hold public consultation before updating or preparing the master plans. Besidesthis, the content of the master plan needs to be reviewed so that it addresses notonly the spatial context of planning but also equally addresses the socio-economicobjectives of development process.

Triggering reforms

Experts have been calling for urban sector reforms for almost a decade.Implementation of urban reforms has, however, been very slow and piecemeal andgenerally compelled by extreme circumstances, such as the plague in the early 1990sin Surat. Reforms can be triggered by creating external pressure on the municipalbodies and the city administration. This pressure should come from the following.P Informed and tax-paying citizens demanding better services and greater

accountability.P Creating competitive pressure by comparing performance of municipal bodiesP Linking all government and multilateral funding to reforms

Well-informed citizens should collectively demand better services. This wouldrequire, first, educating citizens on their rights and responsibilities in urbangovernance. Thereafter, periodic performance review of municipal bodies shouldbe undertaken and published by the state government. The Bangalore Citizens’charter was an attempt towards improving accountability of the municipal bodiesby involving citizens in the performance assessment of municipal bodies.

In addition, municipal bodies should be required to publish a citizens’ charter.A provision for the same should be made in the state Municipal Act.

Municipalities can be made to deliver by creating competitive pressure. Theperformance rating of municipal bodies at the state level, as discussed earlier,should be used effectively to create competition between municipal bodies toperform, especially if this performance is linked to incentives/additional disbursalof funds.

Further, all state and central government funding should be linked toperformance of the municipal bodies on the MoUD’s SSLB indicators. The statefinance commission should also take into account the extent of internal revenuegeneration by the municipal bodies while allocating funds.

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Addressing interlinkages with other sectors

Intersectoral linkages

At this juncture, where we are talking about sustainability in the provision ofservices within cities and the role of local government in doing so, an equallyimportant question emerges on the interlinkages and integration in the provisionof these services at the planning level.

Urban problems are magnified because physical development supersedesplanning concerns. The present spatial framework is in compartments and grosslylacks the much needed integrated approach. Sustainability in service provisionscan only be targeted when the synergies between various sectors like building roads,supplying water, bringing up sanitation and waste management mechanism,electricity and transport provision are captured.

Further, investment in one sector cannot be completely disconnected with othersectors, and hence, when a piece of land is developed, it must be planned andprovided with all the necessary basic services. At the municipal level, this wouldmean identification of a coherent macro-level view of the urban area and integratethis with land use and development. The perspective needs to be expanded beyondsectoral upgradation towards a holistic urban development approach. This meansthat if an area has to be developed, then the necessary infrastructure should notfollow this development but be integrated in the process of development of thisarea. For example, if a residential colony is developed, it should be made sure thatroads connecting the colony to major arterial roads of the city are built; and accessto markets, educational centres, and hospitals is provided; besides making sure thatwater supply is introduced and waste management system is put to place.

An integrated approach to service delivery can promote cost efficiency andservice-delivery-efficiency in more ways than one. Each sector addressed in thisstudy depends or interacts with another in several ways and inefficiency orunavailability of one might hamper the delivery of the other. Thus, all thesesubsystems work in tandem and complex dynamic relationship to keep an urbansystem living.

The study has attempted looking at one of the sectors, buildings, in detail andtried to bring out the advantage and need for sectoral integration and interlinkagesin planning.

Buildings

Buildings form the most basic element of a cityscape/any settlement. They haveinterlinkages with all other infrastructure such as water, sewerage, waste management,power, transport, communication, land use, economy, climate change, and governance(Anexure).

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Water

A building needs constant supply of water during construction and operation (whenoccupied). The water supply to all the buildings together forms an urban system’s watersupply system. This water supply, in turn, is dependent on the surface and groundwater available in the area. Ideally, the amount withdrawn should, after necessarytreatment, replenish the sources of supply. However, in urban systems, there is aconstant drawl from the water sources, but the rate of replenishment is very less. Thisleads to a water crisis in due course of time.

Green buildings use lesser amount of water both during construction and operation.This is achieved by use of water conserving fixtures and faucets and intelligentlandscaping (which needs less amount of water for maintenance). Besides, theintroduction of rainwater harvesting augments the water supply directly or indirectly(by replenishing the groundwater).

Storm water

The building and its surroundings have a major role to play in deciding the storm-water management system of an urban system. The storm-water drainage system isdesigned to drain excess rain- and groundwater from paved streets, roads, parking,and roofs. Storm water that does not soak into the ground becomes surface run-offand has to be channelled into storm sewers. Earlier settlements were planned to followthe natural drainage pattern and all efforts were made not to obstruct the pattern inany way. This is ignored by most of the modern urban centres leading to problemssuch as frequent flooding. The reasons are twofold—first, the natural drainage patternis ignored while planning and second, there is no control on the extent of impervioussurfaces like parking lots, roads, and buildings, which do not allow rain to infiltrateinto the ground causing more run-off than in the undeveloped condition of naturalfoliage covered soil surfaces. This additional run-off also erodes watercourses (streamsand rivers) and also carries heavy loads of pollutants during its course.

Green buildings help in this condition by allowing only a limited use of permeablesurfaces to allow natural penetration of water into the ground. They also check thepollutants level by having installed filters at various levels before the water finally entersthe ground. Taking adequate steps such as maintaining the natural water drainagepatterns both at building and neighbourhood level further improves the storm watermanagement system.

Sewerage

Buildings generate waste water (often called sewerage). This waste water is conveyedto a treatment plant or disposal point through a system of sewers and termed assewerage. The Indian urban system is plagued by poor, ill-equipped and insufficient

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sewerage system with small coverage area. In small towns, it often does not exist atall. All the waste water is conveyed with or without treatment to water bodies availablein and around a settlement, causing lot of health and environment impacts. Waterbodies, often sources of water supply, therefore, get further polluted, accentuating theproblem of clean water supply. This puts tremendous pressure on the water supplytreatment systems, which are usually very expensive.

Green buildings reduce the demand on sewerage system by using efficient fixtures andfaucets. They promote the reuse of storm water and grey water for landscaping and flushingof toilets and other such uses. They also promote the treatment of waste water to certainstandards for disposal of waste before it connects to the main sewerage system.


Buildings generate solid waste during construction (construction and demolition waste)and operation. This generated waste ideally needs to be managed in a systematicscientific way. Local governments are burdened by the increasing load of solid wastegenerated by urban centres, which is continuously increasing due to increasingconsumerism. Construction waste is not managed at all by the formal regularizedsystem, whereas municipal waste is partly managed (collected, transported and dumped)by the local bodies (formal system). The rest of the waste finds its ways into open lands,plots, drains, illegally burned or recycled by the informal waste recycling sector. A largeportion of the generated waste is biodegradable and recyclable, but in the absence ofany segregation at source, it gets contaminated and it becomes difficult and costlier totreat the commingled waste.

Green buildings first promote measures to generate lesser amount of waste duringconstruction; whatever is generated has to be segregated into hazardous, inert, andothers. Recycling and reuse of such waste onsite and/or offsite is also promoted. Wastegenerated during the operation of a building is segregated in a green building. Attemptsare also made to treat the organic (kitchen and garden) waste onsite and give therecyclables to the recyclers. Thus, green buildings attempt to reduce the load oncentralized solid waste management system and also reduce the GHG (greenhouse gas)emissions caused by organic waste and transportation of waste to dumpsites/landfills.

Power/energy

Buildings consume 30%–40% of all primary energy in the world. Energy is used duringthe construction, manufacture, and transport of building materials. Besides this, mostof the energy consumption occurs during the building’s operational phase—for heating,cooling, and lighting purposes. This pattern of energy use in buildings is strongly linkedto the building type, climatic zone, and the level of development. Urban buildings aremany times more energy consuming than their rural counterparts. Traditional buildings(vernacular buildings) were often built to be climate-responsive and in tune with nature,

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contrary to the modern energy-guzzlers of today. In India, there has been a nearconsistent 8% rise in annual energy consumption in the residential and commercialsectors. The country already has a high growth rate in the construction sector, with a10% increase in the net built-up area annually. Most of this growth is taking place inurban centres. Thus, there is a huge potential to reduce this demand on energy bytaking appropriate measures. One of these measures is by building the new stock onthe concept of green buildings (which advocate energy-efficiency and conservation)and retrofitting the existing stock as far as possible. Besides resulting in energy savings,energy can also be generated through buildings by using renewable such as solarthermal, PV, and so on. An estimated 30%–40% energy savings can be achievedthrough green buildings. This in turn would reduce the load on the existing powersupply system.

Buildings are related to other forms of energy (diesel, petrol, natural gas). Whenbuildings are planned on the concept of neighbourhood planning and within closerange of basic amenities and workplace, they tend to reduce the commuting time anddistance, thereby saving on energy and pollution (GHG emissions caused bymerchandized vehicles). This is achieved by proper planning and further, greenbuildings promote this. Thus, green buildings coupled with appropriate planning havea strong linkage with energy.

Climate change

Buildings are directly or indirectly responsible for 30%–40% of the world’s total carbonemissions. Thus, they are among the biggest contributors to climate change. Withclimate change, the weather conditions will be more extreme and thereby, the buildings’energy consumption will further increase to maintain comfort levels in more extremeconditions. However, if the green buildings concept is adopted on a larger scale, theseemissions could be controlled to some extent. Reduced energy consumption inbuildings without compromising the comfort levels (as practised in a green building)can help to reduce the carbon emissions caused by buildings to a large extent.

Besides direct consumption of energy by buildings and the resultant carbonemissions, their surroundings play a major role in causing the heat island effect, whichin turn, has a direct implication on climate change. A UHI (urban heat island) isa metropolitan area that is significantly warmer than its surrounding rural areas (Figure2). The temperature difference usually is larger at night than during the day and largerin winter than in summer, and is most apparent when winds are weak.

As UHIs are characterized by increased temperature, they can potentially increasethe magnitude and duration of heatwaves within cities. Another consequence of urbanheat islands is the increased energy required for air conditioning and refrigeration incities that are in comparatively hot climates. Aside from the obvious effect ontemperature, heat islands can also cause secondary effects on local meteorology,

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including the altering of local wind patterns, the development of clouds and fog, thehumidity, and the rates of precipitation. There are many causes of urban heat islands.Some of them include the following.P Buildings and pavement made of dark materials absorb the sun’s rays instead of reflecting

them, causing the temperature of the surfaces and the air around them to rise.P Lack of vegetation in urban areas, which inhibits cooling by evapotranspiration.

Green buildings help in mitigating some of the causes leading to heat island effects suchas the use of porous materials for paving and the use of reflective surfaces in the buildingenvelope. Thus, buildings are strongly connected to climate change and, therefore, canbe used to rectify and amend some of the ill effects causing climate change.

Transport

The key trip attractors and generators in any location – workplaces, residences,recreational hubs, hospitals, schools, and so on – all constitute nothing but buildings.Buildings are connected by a network of transport infrastructure in the form of mainarterial and local access roads. The interface of buildings and transport and how wellthey are planned around each other is a critical one, which is commonly referred toas land-use and transport planning. If a city is planned and developed so that the homesand workplaces are not located in reasonable proximity of each other, this leads toincreased travel time, travel cost , energy use and emissions. In fact, lack of properlyintegrated land use and transportation planning is what has caused most of our Indiancities to adopt a low-density sprawling structure, thereby leading to an increase in theuse of motorized transportation. If cities continue to grow and buildings continue to

Figure 2 Profile of an urban heat island

Source http://eetd.lbl.gov/HeatIsland/HighTemps/

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develop in such a sprawling fashion, and if this decentralized growth is not accompaniedby supporting public transport networks to meet travel needs, this will have tremendousimplications for the environment as transport energy use and its resultant emissionswill continue to grow. Thus, buildings should be planned and located keeping in mindthe overall mobility objectives of a city. In many developed countries, there is a conceptof ‘self-sustaining cities or towns’, where the built environment ensures that all travelneeds of the residents living in a particular area are met within reasonable time anddistance and clean and efficient modes of transport like walking, cycling, and publictransport are readily available options. This is a model we should also strive for. Thiswill require bringing in urban planners, builders, and transportation experts to workout a total paradigm shift in the way our cities are planned and managed today.

Economy

Buildings have interlinkages with the economy as well. It is in buildings of varioustypes that economic activities take place. Ill-designed and badly located buildings tendto increase the stress level of the employees. They have a direct impact on theproductivity and health of the inhabitants. A green building improves the productivityof the employees due to better indoor comfort conditions, use of eco-friendly materials,use of low-VOC (volatile organic compound) products in the interiors, integration ofdaylighting, and so on.

Governance

Governance and buildings are strongly linked, as buildings are directly governed bythe ULBs. Various infrastructure facilities such as solid waste management, power,water, sewerage, and transport that serve these buildings are provided by the utilityand ULBs. The first steps towards sustainability need to be taken at the building stageitself. Appropriate measures at building level such as reduced water demand, efficientuse of water, management of storm water run-off, reuse and recycling of storm andgrey water, segregation of solid waste, processing of biodegradable waste, separatestorage of hazardous and toxic waste, efficient use of energy through various ways,energy conservation, pollution control during construction, and reduced dependenceon mechanized transport by appropriate site selection could be easily managed andchecked during construction and post-construction by the urban local bodies throughappropriate measures such as bye-laws and building guidelines. These could then bescaled up to appropriate measures at higher levels (neighbourhood and city level). Thus,buildings, governance, and various infrastructure are strongly linked and could beeffectively guided towards the path of sustainability.

Having seen these interlinkages, it is observed that if the bye-laws are appropriatelymodified as suggested in the earlier section on ‘Framework for broad guidelines/bye-laws amendments’, most of these issues could be addressed and worked upon to achievethe desired objective of sustainable habitat in real sense.

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ReferencesChamaraj K. 2006Nehru National Urban renewal Mission (JNNURM) – a critiqueDetails available at <http://www.civicspace.in/files/JJNURM%20-%20a%20critique.pdf> last accessedon 25 February 2007

GoI (Government of India). 2006Breakthrough with BhagidariIn Delhi Human Development Report 2006New Delhi: Planning Commission, GoI

Mathur M P. 2007Impact of the Constitution (74th) Amendment Act on the urban local bodies: a reviewNIUA WP 07-02

NUIA (National Institute of Urban Affairs). 2007Documentation of Best PracticesDelhi: NIUA[Compiled by the NIUA for the Ministry of Urban Development, Government of India]

OECD (Organization for Economic Co-operation and Development. 2001Citizens as Partners – information, consultation and public participation in policy-makingFrance: OECD Publication Services

Tewari V. 2004Municipal reforms for sustainable urban infrastructure development in IndiaPaper presented at the United Nations Asia Pacific Leadership Forum:Sustainable Development for Cities, Hong Kong, 25–27 February 2004

BibliographyAijaz R. 2007Challenges for Urban Local Governments in IndiaAsia Research Centre, London School of Economics and Political Science

Chaubey P K. 2006Urban Local Bodies in India: quest for making them self-reliantNew Delhi: Indian Institute of Public Administration

Jha G. 1993Seventy-Fourth Constitution Amendment and the empowerment of municipal government: acritiqueUrban India Xlll (June-December)

Jha G. 2003Municipal Financial Resource Mobilisation Status, Concerns and IssuesNew Delhi: Infrastructure Professionals Enterprise (P) Ltd

Jha G. 2006Urban Governance: municipal finance imperativesPune: State Institute of Urban Development, YASHADA[Prepared for the Urban Management Programme]

Mathur O P. 2006Urban Finance, India Infrastructure ReportDelhi: Oxford University Press

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NIUA (National Institute of Urban Affairs). 2005Impact of the Constitution (74th Amendment) Act On the Working of UrbanLocal Bodies, Vol.1, Final ReportNew Delhi: NIUA

Ravindra A. 2004An Assessment of the Impact of Bangalore Citizen Report Cards on the Performance of PublicAgenciesWashington DC: World Bank[ECD Working Paper Series 12]

Sarkar A, Bandyopadhyay A, and Roy A. 2007Participatory Planning Process: the Kusp Model of West BengalInstitute of Town Planners of India 4: 4

Savage D and Dasgupta S. 2006Governance framework for delivery of urban servicesIn India Infrastructure Report 2006Delhi: Oxford University Press

Swanson D and Pintér L. 2006Governance Structures for National Sustainable Development StrategiesStudy of Good Practice ExamplesCanada: IISD (International Institute for Sustainable Development)[Prepared for Organization for Economic Co-operation and Development]

Transparency International and United Nations Human Settlements Programme. 2004Tools to support transparency in local governance[Urban Governance Toolkit Series]

Venkatchalam P. 2005Innovative Approaches to Municipal Infrastructure Financing: case study of Tamil NaduDevelopment Studies Institute, London School of Economics and Political Science[LSE Working Paper]

Wood J. yearDevelopment of urban and regional planning in IndiaLand Economics 34 (4): 310–315USA: University of Wisconsin Press Stable[http://www.jstor.org/stable/3144542]

World Bank. 2007Engaging with Citizens to Improve Services: case studiesNew Delhi: World Bank[Water & Sanitation Programme]

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1 Sustainable services in slums: need for an alternative

approach

2 Informal markets for basic urban services

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Contents

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The pattern of urbanization in India favours steady growth of migrant population, whoreside in poor housing conditions without any provision for basic amenities. This haslargely happened due to inadequate policy initiatives that focus on providing tenuralsecurity to the people staying in the informal settlements for years to earn a livelihood.

Basic amenities such as electricity, water, sanitation and transportation facilitiesare the right of every city dweller. In facilitating electricity and water supply servicesin the slums, the service providers confront issues of misuse and corruption. Corruptpractices like pilferage are adopted by slum residents, because they have very littleaccess to basic services, a result of their non-permanent residential status. Given thecircumstances prevailing in the cities in India, it is vital to introduce ‘new technologysolutions’ to address the problem of basic amenities to the people living in the slums.Another important basic service is transportation, in which the city governments areseen taking several measures. However, these services have largely catered to the interestof better off citizens.

Having discussed the importance of tenural security and persisting discriminationin giving access to basic services, it is vital to identify solutions to the problems thathinder the efforts of the government in planning and spending resources for urbanservices. One possible approach could be exploring alternative service delivery modelsproperly addressing the necessities of the slum dwellers. One of them could beinnovative partnership models like multistakeholder partnership, which are cost-effective and participatory in nature. This would balance both social and economicconcerns and could result in proper service delivery in an equitable manner. This typeof partnership would ensure greater social inclusion and increased efficiency in thedelivery of services.

Introduction

The Constitution of India under Article 19 Clause (d), (e), and (g) guarantees rightto free movement and residence in any part of India and to practise or carry on anyprofession and occupation, trade or business. This right to ‘freedom of movement’ along

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with better scope of remunerative employment in the growing cities (the mega citiesand the state capitals) has attracted a large number of rural migrants to the growingcities. It has resulted in large chunks of unutilized lands within the cities used fortemporary settlements or slums. This growth in population impacts the distributionof civic services, in which the slum dwellers have been seen to be the worst sufferers.The city governments, excepting a few, have little resources to manage civic servicesequitably for all.

The city governments do not give adequate importance to basic services in slums,for two reasons – (1) lack of planning and (2) lack of financial resources. In mostcases, the urban authorities in India have not succeeded in providing regular basicservices in legal settlements, hence talk of equitable service delivery in the slums wouldbe a mere rhetoric. It is always expected that basic minimum services like water,electricity, sanitation, soild waste management and safe transportation service isprovided in the slums as the slum dwellers equally contribute to the GDP (grossdomestic product) of the cities. To enable the civic authorities to give equal attentionto all the city dwellers, change in policy framework is the priority. Policies to allowuse of new technological options such as facilitating prepaid water and electricityservices along with introduction and facilitation of alternative service delivery modelsfor sanitation and solid waste management services would change the living standardsof slum dwellers in the cities.

Context

The influx of migrants to the cities has compounded the problems of civic authoritiesas they are unable to provide equitable service to the population residing in the city.It has worsened the situation of the slum dwellers, because per capita water andelectricity use in the slums has plummeted to a bare minimum. The city governmentshave neglected the slum dwellers on the pretext of their illegal residentship. Illegalityof residence brings manifold problems for the slum dwellers as they remain out ofthe benefits provided by the government. Hence, delinking access to basic servicesfrom the condition of permanent residence is the most critical aspect to ensure servicedelivery in an equitable manner. There are examples internationally, including inAfrican countries, where efforts have been made to provide access to basic amenitiesusing prepaid cards, but none of them have become successful owing to differentreasons. (Details on this are given in following paragraphs.)

Access to services using SMART card technology

The SMART card technology has been primarily used to provide service to the poorand it has become an effective tool to minimize corruption and malpractices in theprovision of services. The first step in utilizing this technology is allotting the householdor family an identification code, which is a powerful tool for security, identification

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and authorization (Radd, Sallour, and Muhammad 2001). It has been used for a varietyof purposes—financial transactions, health and transportation services. It could alsobe utilized for prepaid electricity and water services that would help in financialtransactions required for topping up the two services. The preparation and distribution,use and administration of the card can be regulated by the norms outlined by theconcerned city governments.

Although the purposes of using the SMART card have been different, thephilosophy has been to provide basic services in an equitable manner, whilediscouraging malpractices and corruption. Similar to the features of a SMART card,here we propose a unique identification number, that is PIC (permanent identificationcode), to be used for accessing services in a specific city. The fundamental idea is toenable the temporary settlers getting access to basic services. Further, the use of thiscard for availing services in the slums would require detailed planning and executionmechanism, for which the city governments may be made responsible. For proper useof the card, community or consumer sensitization along with formation ofneighbourhood or local area committees would be vital. Proper designing of the card,along with systematic planning to distribute and monitor the administration of thecard, would help in making the initiative successful. The format, preparation and useof the card discussed in the succeeding sections can be referred to while initiating thispractice.

Format of the card

The card will have a unique code number (present residence number/ward number/identification code developed for the area), followed by surname, given name, sex,date of birth, place of birth and the code developed for the identifier. The identifiercould either be a ward member or the officer managing civic functions in that area.The photograph and the thumb impression or signature of the card holder wouldbe on the card. Every adult member of the family would be eligible for this codenumber; however a certification by the local authority would be required to issuemore than two cards per family. The date of issue and expiry should also bementioned on the card.

Preparation and use of the card

The preparation of the card would be the sole responsibility of the localgovernment. A social survey in partnership with the local NGOs would help inidentifying the right beneficiary and assessing the resource needs for providing theprepaid electricity and water services. The cost incurred for preparation of the cardmay be shared by the beneficiary. Local area committees will ensure proper servicedelivery system. In case of increase or decrease in the number of beneficiaries, stepswill be taken by the civic authorities to ensure provision and maintenance of service

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through periodic financial contribution. The card may be issued for a period often years with the provision of yearly renewal. In case of discontinuation in its usefor over three months, the card holder will pay a nominal charge to activate thecard. The code number given to each card holder would be required to verify theresidentship of the card-holder in the locality. The card would be required duringregistration and renewal of membership for availing the services provided by thecivic authority or any private service provider, if involved in the service deliverysystem. The amount paid against the code number for availing electricity and waterservices would remain, unless the amount has been spent fully. The amount canbe carried forward if the card-holder uses it after shifting to a different locationwithin the city. The services meant to be delivered by using this card as an identityproof should be customized based on the local needs.

Prepaid electricity services

The basic reason for advocating prepaid electricity services in the slums is todiscourage unnecessary consumption, theft and other losses during powerdistribution. The prepaid meter using AMR (automated meter reading) technologyoffers advantages such as detection of counterfeiting, capability upgradation, usein extreme environment, and reliability in terms of its use (Rejikumar 2005). Amongthe Western countries that introduced prepaid electricity services, the UK was thefrontrunner, as they introduced the prepaid electronic metering system during the1980s. The organization responsible for producing and distributing electricity inSouth Africa, ‘ESKOM’, promoted the use of prepaid electricity cards. In 1988,ESKOM supplied electricity directly to the domestic customers, who had no accessto electricity at that time. The vision of ESCOM was ‘Electricity for All’. Afterthe development of the prepayment system in response to the problems likeaffordability, logistics, and so on, the South African Bureau of Standards provideda new specification of prepaid meters and replaced the old meters (Tewari andShah 2003). The NDPL in Delhi had started prepaid electricity services in 2005.The NDPL has over 3000 prepaid meter consumers in its distribution network inDelhi. The prepaid meters come with SMART cards to hold information or unitsconsumed on the equivalent value. When the card is inserted, the energy meterreads it, connects the supply to the consumer loads and debits the value.1

The prepaid meters have been designed and supplied by many companies at anaffordable cost. The use of prepaid meters can be topped up with recharge couponsworth Rs 300 to Rs 1000, which could be recharged on the receipt of further amountfrom the card holder. Meters will have preset alarm, which can be set to go off when25% value remains, as a reminder to recharge. Display systems give information on

1 ‘NDPL announces rebate on prepaid power re-charge coupons’, The Hindu, New Delhi, 19 October 2008

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total electricity consumed and number of units (credit) left. It would also display detailson number of units consumed on a particular day/week/month, besides average dailyconsumption. It would also help in customers better budget their electricityconsumption (Gahlot 2008).

In unorganized settlements like slums, a certain number of houses need to subscribeto the prepaid electricity services to make the service cost effective. The cost of electricwiring and installation of prepaid meters could be borne by the service providers, whilethe government can provide some subsidy to the service provider to meet the highcapital costs. The maintenance of the service can be jointly done by the communityand the service provider.

Prepaid water services

Community water services have been the general norm in slums in big cities, thoughthey are often which is sometimes found to be inadequate for a large number of people.The uncertainty of water supply sometimes forces people to draw water from the mainline, leading to leakages and ultimately, to the contamination of water in the cities.The prepaid water meters have generally been introduced in low-income communitieswith cost recovery being the main reason for the implementation of the technology(Kumwenda and Moses 2006). The technology has been implemented in some areasof South Africa to effectively administer free basic water supply. The prepaid watermeter project implemented in Klipheuwel falls within the Cape Metropolitan area.The technology has been projected to be a panacea to the water management problems.Due to the negative social effects, prepaid water services in this location have beenabandoned (Kumwenda and Moses 2006). The prepaid water meter experiment inOrange Farm, South Africa, in 2002/03 was meant for the poor residents. The provisionof 6000 litres of free water per month could not ensure equity in access to water services(Paley 2003). The denial of access to water to the poor people is basically by-productof management failure in ensuring access to basic services in countries like SouthAfrica.

In order to systematize the water supply management to ensure equitable accessto water in slums, new and innovative norms and facilitating installation of prepaidwater meter may help in sustaining the water services. This will also help in checkingthe recurring losses and would make water available to all in the city. In this context,prepaid water services can be introduced in slums, which will be cost effective for thegovernment or the service provider as well.

The prepaid water meter is no different from ordinary ones in appearance andinstallation, but will have a special digital box with a keyboard attached to it.2 Usersfirst have to pay their bill in advance, and then enter the code number provided to

2 ‘Pre-paid water meters set up’, China Daily, Shanghai, 24 January 2005

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them and a fixed account number into the keyboard to resume water supply. Familiescan choose to pay in advance for months or even a whole year by depositing estimatedfees in their account instead of paying every two months. They can get their bill withinthe community or simply make a call to have it delivered to their home. The depositwill also free them from the risk of being charged extra for late payment of bills. Theautomatic supply cut will further prevent them recharging the prepaid card after theamount is fully utilized.

Kiosks to manage the prepaid services

Certain kiosks manned by the community and the service provider may jointly facilitatethe prepaid services for the water and electricity services. In case of relocation of thecard-holder of a particular area to another within the city, a centrally controlled unitwould look into the transfer of the card and other services to enable him to get service.The service provider has to take the responsibility of maintenance and replacementof the meter. However, in case of tampering of the meter by the customer, the customerwill be penalized as per the legal norms. Gradually, the management of such servicescould be transferred to the community so that the ownership of such services remainswith them.

Multistakeholder partnerships

The focus of present generation policy-makers has been community centric servicedelivery, where multistakeholder partnership is regarded as a step ahead. Apart fromaddressing the ownership issues, it will empower the community to set accountabilityin service delivery. Ideally, an MSP (multistakeholder partnership) involves thegovernment, service provider, local community and the academic institutions/international bodies, which are supposed to provide voluntary services like socialauditing of the development programmes and commissioning study to understand andreplicate successful models.

Using MSP to provide urban service has many advantages, because it allows forresponsibility sharing and creates a sense of ownership and accountability amongdifferent players in the community. Multistakeholder partnerships help the public sectorrealize its full potential and ensure all stakeholders receive benefits in an equitablemanner. This kind of partnerships help in establishing linkages between the recipientsof services and those providing services.

MSP could be adopted as the preferred option for delivering basic urban serviceslike sanitation, solid waste management, and safe-transport services within the slums.To facilitate sanitation services in the slums, the partners could get involved incommunity sensitization, introduction of new from of sanitation services by the serviceprovider and, above all, monitoring the sanitation services using some new norms.Similarly, to manage solid waste in slums, community leaders can do awareness

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generation, private service provider may contribute financially to purchase segregationtechnology, the government may get involved in day-to-day monitoring with thecommunity, while the fourth partner (academic institutions) may build the capacityof the rag pickers and the supervisors. A study of some of the successfully implementedMSP projects from across the country and the types of arrangements used to deliverservices would give an idea of the benefits of multistakeholder partnerships. Thepartnership models still need a formal shape for a systematic implementation by anycivic authority.

In Chennai, several slums are implementing water harvesting programme and inPatna, a project is implementing a sustainable solid waste disposal system throughcommunity involvement. Moreover, in Jharkhand, as part of a project, the communitymanages a solid waste programme and in another case in Chennai, the local hascommunity formed an association to acquire basic amenities.3

Conclusion

In any informal setup such as the slums in big cities, the local goons remain responsiblefor enabling families to have access to water and electricity against payment of aspecified amount. This has been largely possible due to the nexus between certainsection of government officials and contractors of the private service providers.Although, the city governments have taken desirable steps to develop the slums, manyof them have not worked on the expected lines. The ongoing JNNURM programmehas an ambitious target of providing the basic services in the slums in some selectedcities. Now it needs to be seen if the approaches adopted by the civic authorities toprovide basic services are working or not. As discussed in this paper, the alternativeapproach could be to do with methodical planning and use of innovative technologylike SMART Cards. Moreover, evolving institutional arrangements like MSPs toprovide basic services would go a long way in this direction.

ReferencesGahlot M. 2008To cut the dues, government depts get pre-paid power metersThe Indian Express, New Delhi, 14 October 2008

Kumwenda and Moses K. 2006Prepaid Water Metering: Social experiences and lessons learned from Klipheuwel pilot projectBellville, South Africa: Department of Integrated Water Resource Management, University of WesternCape

3 Public–private Partnership in Delivery of Urban Services, the Decentralization Community and WES-Net India,Solution Exchange, 12 May 2006, details available at <www.solutionexchange-un.net.in>, last accessed on 15October 2007

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Paley D. 2003Only the poor have pre-paid water metersDetails available at <http://www.alternatives.ca/article975.html>, last accessed on 25 January 2004

Raad W, Sallour M, and Muhammad A. 2001Smart Card based Pre-paid Electricity SystemDhahran, Saudi Arabia: King Fahd University of Petroleum and Minerals

Rejikumar R. 2005Pre-paid electricity meters and issues related to implementation of pre-paid metering systemsDetails available at <http://topics.energycentral.com/centers/datamanage/view/detail.cfm?aid=1064 >, lastaccessed on 23 April 2006

Tewari D D and Shah T. 2003An assessment of the South African Pre-paid Electricity Experiment: lessons learned and thepolicy implications for the developing countriesAnand: International Water Management Institute

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Theme paper 2

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Informal markets generally refer to ‘the survival economy of the poor whose individualeconomic transactions do not ever rise to the taxable limit and who occupy a greyzone of commercial exchange, mainly by offering their labour, which allows mainstream(and audited) economic practice to subsidize itself through their relationship withthem.’ While the informal economy is often characterized as unorganized, it has beenargued that activities in the informal sector are often well organized with informalregulations and flexible to adapt to specific situations.

Urban informal markets, viewed in this context, are generally considered to be amanifestation of rural–urban wage and employment differential, and the consequentmigration. This migration, on one hand creates a demand for services and goods outsidethe formal urban markets, and on the other, a supply of cheap and convenient servicesand goods. These services often include basic urban infrastructure services such aswater, energy, and transport that are generally supplied by municipal authorities orother parastatals in urban areas. For example, the informal sector collects 9%–59%of total urban waste in India depending on which city, and employs about 1% of thetotal urban population (Chaturvedi 2008).

There has been considerable research on incorporating sustainability and equitycriteria in the delivery of basic services through the formal markets, and has beenaddressed, at least in part, in the policy process. There is, however, very little existingknowledge on the delivery of basic services through informal markets, either by wayof documenting the market participants, or by way of assessing the effectiveness andefficiency of these markets. In particular, given the complete absence of any regulationin these markets, it is difficult to assess the performance of these markets on anysustainability or equity criteria. Hence, policy prescriptions for regulating these marketsoften lead to confusion and disorder unless formal rules are a suitable alternative tothe informal market structure.

Characterizing informal markets

Firms and individuals, other than the parastatals and government owned entities,delivering basic urban services have come about largely to fill in the gap between theincreasing demand driven by rapid urbanization, and the lack of capacity in organizedmarkets, particularly infrastructure capacity, to increase supply. For instance, since thelate 1980s, households in Chennai have depended on private venders to augment

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supplies from the CWWSB (Chennai Metropolitan Water Supply and Sewerage Board)to meet domestic water supply demand. Over time, the efficiency gains due to privateoperations, and inability of CWSSB to meet demand motivated the state governmentto encourage CWSSB to use these vendors to supply water to CWSSB customers(TERI 2001). Similar results have been reported for other cities such as Hyderabad(Dinar and Saleth 1997). In particular, these private vendors are able to supply areaswhere infrastructure inability constrains formal suppliers (Llorente and Zérah 2002).

In sectors where the formal market generally consists of a monopoly with onlyone service provider, such as water supply and electricity, unorganized markets areoften unregulated and comprise small, individual service providers, operatingwithout any oversight. In the bottled water sector in Delhi until 2000, for instance,there was a preponderance of small operators with short-term profit goals who didnot invest in quality control technologies (Llorente and Zérah 2002). Similarly,there are external costs due to unregulated operations, often in different sectors.Tankers supplying water using diesel vehicles, and the private operation of dieselgenerators contribute to urban air pollution as well (Chakravarti 1990).

In addition, there is a dichotomy in the delivery of basic urban services (Llorenteand Zérah 2002). In residential areas that are included in the formal urban planningprocess, the ‘authorized’ areas, a formal service delivery organization is responsiblefor ensuring universal service access. Unplanned settlements such as slum clustersand unorganized bazaars, unregulated markets are used to meet basic infrastructureneed. For instance, water supply in residential areas developed by urbandevelopment authorities is through a piped network supplying each household.Either community water pumps or water tankers, however, serve slum clusters. Insome cases, such water supply is privately organized.

The dichotomy also manifests itself in the kind of private enterprise that meetsthis gap in demand in supply. Large, affluent housing areas that are not coveredby parastatals, or those where the quality of supply is poor, are often able toorganize supplies at market rates and with contracts that guarantee quality andquantity of service. Newly constructed housing societies in the National CapitalRegion, for example, often have complete electricity backup systems installed toaddress gaps in supplies from the licensed electricity distribution companies. Atthe other end, private entrepreneurs step in to supply electricity in small grids of50–100 consumers using large diesel generator sets in commercial and slumsettlements. While this supply too is at market rates, often quality and availabilityis not guaranteed, and only competition in the market between suppliers helpsimprove quality of service (Mitra 2006). In addition, it has been documented thatslums often do end up paying market rates for services in the absence of an effectiveenforcement of the price regulation, particularly for water services (UNDP-WorldBank 1999).

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Directions for reforms

As is evidenced from the extensive operation of private operators in the supply ofbasic urban services, it is clear that there is sufficient market potential at financiallyviable prices to elicit a robust response from private entrepreneurs in urban India(Mitra 2006).

Hence, it is important for policy-makers to recognize the role that informalmarket operators can play in meeting the demand for increasing and novel urbanservices. It is crucial here that such service providers are not excluded when privateparticipation is sought to achieve higher efficiency and financial viability, since thesevendors often are able to provide services with low capital intensity and highefficiency within the current environment. In the case of Delhi, the private firmsformally appointed by the Municipal Corporation of Delhi are required to segregateonly 20% of the waste in the final and eighth year of operation compared to 90%achieved by waste pickers, apart from leading to law and order concerns due toconflicts between the two (Chaturvedi 2008).

Stronger partnerships between the parastatals, and private operators from theinformal markets, could allow greater regulation of the informal sector. Inparticular, integrating private suppliers within the delivery mechanism of the formalsector, would subject private vendors to the same health and quality regulationsas the formal market. For instance, once the private tankers supplying water inChennai were brought in by the CWSSB in the formal market through servicecontracts, the water quality and delivery regulations were determined by theCWSSB. In particular for each of the sectors, the following strategies arerecommended.P A set of detailed service quality requirements for tankers have been presented in

the section on water. These could be included in the service quality contracts forprivate water vendors.

P As recommended for solid waste collection, trained workers with appropriateequipment should be involved in a formal manner in the waste collection andsegregation chain.

P In the transport sector, it has been recommended that the regulator frameworkshould be expanded to include taxis and three wheelers that operate as publictransport without a stage carriage permit currently, to allow them to operate aslegitimate public transport vehicles.

In addition, it is important for regulatory agencies to track the evolution ofconsumer preferences and market structures. These are constantly reflected in theemergence of private enterprise meeting the demand for new service and commoditiessuch as bottled drinking water, peak electricity demand met by privately ownedgenerators, travel demand for school and offices met by private buses and taxes plying


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as public transport, and so on. Governments need to be alert and provide for theseservices within the regulatory framework such as was done by including packageddrinking water in the Prevention of Food Adulteration Act (1954) in 2000.

Finally, following Rouse (2004), the following guidelines for policy-makers indeveloping and planning for urban services are suggested.P Understand the informal sector, quantify and cost its contribution to service

delivery, and look at ways of legitimizing and regulating entrepreneurial activities.P When planning urban development projects, learn from existing service delivery

mechanisms by informal-sector entrepreneurs and seek ways of working with,rather than against, existing individuals, businesses and structures.

P Where businesses will be disrupted and displaced, resist making assumptionsabout those affected (for example, provide access to credit and/or training). Atall stages ask entrepreneurs their opinion, their need and their benefit or otherwise.

ReferencesChakravarti A K. 1990Non-industrial pollution problems in developing countries: an example of urban India – aviewpointInternational Journal of Environmental Studies, 33 (3): 205–212

Chaturvedi B. 2008Why waste a chance?Down to Earth, 16 (2008/01/15)

Dinar A and Saleth R M. 1997.Satisfying Urban Thirst: water supply augmentation and pricing policy in Hyderabad City,IndiaWashington, DC: World Bank[Technical Paper No 395]

Llorente M and M-H Zérah. 2002Urban Water Sector: Formal versus Informal Suppliers in IndiaUrban India XXII (1): 35–49

Mitra B. 2006Grassroots Capitalism Thrives in India: 2006 index of economic freedomWashington DC: Heritage Foundation

Rouse J. 2004Absorbing informal-sector entrepreneurs into improved urban servicesSmall Enterprise Development (15)2, June 2004

TERI (Tata Energy Research Institute). 2001Regulatory Framework for Water Services in the State of GujaratNew Delhi: TERI, 228 pp.[TERI Project Report No. 2000ER61]

UNDP–World Bank. 1999Willing to Pay but Unwilling to Charge – do ‘willingness to pay’ studies make a difference?New Delhi: UNDP–World Bank

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Many cities in the world have endeavoured to become sustainable. While some haveattempted to look at all the parameters of sustainability and achieve them in anintegrated manner, some others have sought to make a modest beginning by makingone or more urban service sectors sustainable. This study, in a unique departure,has looked at parameters that will make the provision of five basic urban servicessustainable in cities across India. It has also emphasized the need to recognize theinterlinkages between these services. The study has, perhaps for the first time arguedthe case for involving local governments in the management of electricity demandand in making buildings ‘green’, as these sectors offer tremendous potential forreduction in energy consumption. Early in the study, it was recognized that there wereno typical Indian cities and sustainability parameters would vary in their import andsignificance across cities. It was also recognized that recommendations to make theprovision of urban services sustainable in the metropolitan cities and urbanagglomerations with a population of half a million or more may not be within thereach of smaller cities. The study has, therefore, attempted to suggest how ‘cities intransition’ should seek to achieve sustainability and move eventually towardsimplementing the recommendations made for the larger cities. With growing peri-urbanization, new developments are taking place around cities and outside municipallimits. The study also recommends how these outgrowths should be planned in orderto ensure consistency in standards and regulations when they are merged into existingmunicipalities.

Sustainability parameters for the different services were identified on the basis ofdetailed survey of relevant literature and research into international and nationalexperiences and best practices. An attempt was made to test the relevance of theseparameters and the recommendations through in-depth discussions with policy-makers, service providers, civil society organizations, and other stakeholders in threevery different Indian cities—Surat, Hyderabad, and Shillong. Although these threecities are not typical Indian cities, these discussions helped a great deal to fine-tunethe recommendations and make them more relevant to the ground realities in India.These findings and recommendations were further revalidated through two dialoguesheld with a wide range of stakeholders and academics.

Conclusion

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The study of each sector threw up some cross-cutting issues, notably, the need tolook at cities in transition differently from the larger cities, the provision of urbanservices to slum dwellers who have no security of tenure, and the existence of informalmarkets for basic services that exist in most cities. The first issue, as stated earlier,has been addressed in each sector study. The two theme papers at the end of the reportrecognize the need to ensure universal access to urban services, in particular for theurban poor and slum dwellers, and to regulate the informal markets to ensure safety,quality, and reliability, while offering suggestions to make these happen.

One important fact that emerged from the study was the lack of adequate data,and where available, the lack of good quality data pertaining to urban services suchas availability, access, costs, revenues, distribution losses and wastage. Clearly, noneof the recommendations contained in the report can be implemented or the indicatorssuggested to monitor performance put to use in the absence of reliable data. Collatingreliable data and establishing a database to form the baseline for monitoring futureimprovements is of paramount importance. Perhaps, the one inadequacy in the studyis the failure to connect each indicator with the data required to apply that indicatorand design the data requirements and methodology for its collection. This merits aseparate study.

Understanding the parameters for sustainability and implementing therecommendations to achieve these parameters call for capacity building both at thestate and local government level, as well as in political leaders and senior civil servants,who take decisions and in the staff at all levels responsible for the delivery of services.This capacity is woefully inadequate, and building this capacity calls for massive andurgent action. The recommendations in respect of each sector make an attempt toidentify the capacity gaps and suggest programmes to address them. What is requiredis a separate exercise to assess capacity needs at all levels and development of trainingprogrammes to address these needs. Institutional arrangements also need to be madeto train trainers, and take these programmes to cities or groups of cities so that theskills of all those involved in the provision of urban services, especially of those at thecutting edge of service delivery, are enhanced. Equally important is to initiate measuresto build capacity in consumers and civil society to assess and monitor the performanceof the service providers.

Also, implementation of the recommendations contained in the report andimprovements suggested in the provision of urban services cannot be achieved unlessadequate financial resources become available to the local governments. Stategovernments and local governments need to explore ways to augment resources toenable local governments to achieve the sustainability goals that have been suggested.The local governments also need to prioritize their interventions and ensure that theyare adequately funded through careful budgeting and monitoring. The financial andaccounting reforms suggested as part of the JNNURM (Jawaharlal Nehru National

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Conclusion 335

CO

N C

L U

S I

O N

Urban Renewal Mission) need to be taken further and implemented in all cities overa period of time.

The report has made an interesting recommendation to set up a sustainability cellat the state level to help city governments to identify and address sustainability issuesin the provision of services and in city governments to ensure sustainability. Theestablishment of sustainability cells will provide an immediate impetus to recognizingand addressing sustainability concerns in a situation where the required capacity isnot widely available. The recommendation merits serious consideration.

Ultimately, any attempt to make the provision of urban services sustainable will callfor political will and good governance. The study has, therefore, devoted an entirechapter to good governance and has spelt out the specific measures that need to betaken to empower local governments and make them responsible for the provision ofbasic urban services in a sustainable manner. In the consultation meetings withstakeholders, a view was expressed that local governments should only be empoweredselectively. The team was, however, of the view that having regard to the 74thAmendment, it was not for any authority or body to select the local governments tobe empowered, and that unless all local governments are empowered and citizens’participation in governance encouraged, the move towards sustainability will be tardy.Empowering and strengthening local governments must become a national priority.

The study does not claim to identify and address all the sustainability concerns.What, however, it has sought to do is to identify the major sustainability concerns inthe provision of basic urban services and recommend as to how they can be bestaddressed in India’s growing cities. The study should be viewed not as a treatise onthe subject but as a guide to the way forward.

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Abbreviations

3R’s Reduce, reuse and recycleADB Asian Development BankAIL American Institute for LearningALM Advance locality managementASRTU The Association of State Road Transport UndertakingsAT&C Aggregate technical and commercialATE Appellate Tribunal for ElectricityBATF Bangalore Action Task ForceBAU Business as usualBCA Building and Construction AuthorityBEE Bureau of Energy EfficiencyBESCOM Bangalore Electricity Supply CompanyBIS Bureau of Indian StandardsBMP Bangalore Mahangar PalikeBMTC Bangalore Metropolitan Transport CorporationBOT Build–own–transferBREEAM Building research establishment environmental

assessment methodBRTS Bus Rapid Transit SystemBSNL Bharat Sanchar Nigam LtdBWSSB Bangalore Water Supply and Sewerage BoardC&D Construction and demolitionCAG Comptroller and Auditor GeneralCBD Central Business DistrictCBO Community-based organizationCCA Customer choice aggregationCCC Committee of concerned citizensCCF City challenge fundCCI Clinton Climate InitiativeCDC Centre for Development CommunicationCDM Clean Development MechanismCDP City development planCEA Central Electricity Authority

10_Abbreviation.p65 4/20/2009, 3:39 PM337

Abbreviations


338A

BB

RE

VI

AT

IO

NS

CFC ChlorofluorocarbonCIDC Construction Industry Development CouncilCII Confederation of Indian IndustryCMWSSB Chennai Metropolitan Water Supply and Sewerage

BoardCPCB Central Pollution Control BoardCPHEEO Central Public Health and Environmental Engineering

OrganizationCRC Citizens’ report cardCSE Conservancy and sanitation engineeringCSR Corporate social responsibilityDAB Double accident benefitDERC Delhi Electricity Regulatory CommissionDF Distribution franchiseeDMA District meter areasDOSWAM Decentralized on site waste managementDPC District planning committeeDPR Detailed project reportDSM Demand side managementDT Distribution transformerDTC Delhi Transport CorporationEAC Environmental appraisal committeeECAC Electricity consumers advocacy committeeECBC Energy Conservation and Building CodeECMT European Council of Ministers of TransportEE Energy efficiencyEFL Efficient fluorescent lampEGAT Electricity Generating Authority of ThailandEIA Environmental impact assessmentEoI Expression of interestEP Electrical powerEPC Energy performance certificateESCO Energy service companyESMO Environmental Sanitation and Management OfficeEST Environmentally sustainable transportEU European UnionFERC Federal Energy Regulatory CommissionFTL Fluorescent tube lampGDP Gross domestic productGHG Greenhouse gas



Abbreviations 339

AB

BR

EV

IA

TI

ON

S

GHMC Greater Hyderabad Municipal CorporationGIS Geographical information systemGMC Guntur Municipal CorporationGoI Government of IndiaGoK Government of KarnatakaGPS Global positioning systemGRF Grievance redressal forumGRIHA Green Rating for Integrated Habitat AssessmentGWB Ground Water BoardGWh Gigawatt-hourGWP Global warming potentialHIA Housing Industry AssociationHIP Home improvement packetHMC Hyderabad Municipal CorporationHOV High occupancy vehicleHRD Human resource developmentHUA Hyderabad Urban AgglomerationHUDA Hyderabad Urban Development AuthorityHVAC Heating, ventilation and air conditioningHVDS High voltage distribution systemHWSSB Hyderabad Water Supply and Sewerage BoardICSC Integrated citizen service centresICT Information and communication technologiesICTSL Indore City Transport Services LtdIECC International Energy Conservation CodeIGBC Indian Green Building CouncilIHSDP Integrated Housing and Slum Development ProgrammeIIEC International Institute for Energy ConservationIIT Indian Institute of TechnologyIPES Institute for Promotion of Social EconomyIPT Intermediate public transportISWM Integrated solid waste managementIT Information technologyJFM Joint forest managementJI Joint ImplementationJNNURM Jawaharlal Nehru National Urban Renewal MissionJNTU Jawaharlal Nehru Technical UniversityKSRTC Karnataka State Road Transport CorporationLA21 Localizing Agenda 21LCC Life-cycle cost


Abbreviations


340A

BB

RE

VI

AT

IO

NS

LEED Leadership in Energy and Environmental DesignLPCD Litres per capita per dayLTA Land Transport AuthorityMC Municipal corporationMCD Municipal Corporation of DelhiMCGM Municipal Corporation of Greater MumbaiMCH Municipal Corporation of HyderabadMCL Municipal Corporation of LudhianaMELT Modelling economic leakage targetMGD Million gallons per dayMIS Management information systemMLD Million litres per dayMNRE Ministry of New and Renewable EnergyMoA Memorandum of agreementMoEF Ministry of Environment and ForestsMoU Memorandum of understandingMoUD Ministry of urban developmentMPA Metropolitan planning authorityMPC Metropolitan planning committeeMSE Micro and small enterpriseMSEB Maharashtra State Electricity BoardMSEDCL Maharashtra State Electricity Distribution Company

LtdMSW Municipal solid wasteMT Million tonnesMUDA Meghalaya Urban Development AgencyNABERS National Australian Built Environment Rating SystemNAREDCO National Real Estate Development CouncilNBC National Building CodeNDPL North Delhi Power LtdNEP National Electricity PolicyNGO Non-governmental organizationNIT National Institute of TechnologyNMC Nagpur Municipal CorporationNRDC Natural Resources Defence CouncilNUTP National Urban Transport PolicyOPEN Online procedures enhancement for civil applicationsOYRGTA One-year renewable group term assurancePASI Programme for Support of Informal SectorPFDS Pooled Finance Development Scheme



Abbreviations 341

AB

BR

EV

IA

TI

ON

S

PG&E Pacific Gas & ElectricPGR Public grievance redressalPHED Public Health and Engineering DepartmentPIS Passenger information systemPMC Pune Municipal CorporationPPA Power purchase agreementsPPP Public–private partnershipPROOF Public record of operations and financePSP Private sector participationPTC Public Transport CouncilPUB Public Utility BodiesQoSS Quality of Supply and ServicesR & D Research and developmentRDF Refuse-derived fuelRMT Running metreRPO Regional passport officeRPO Renewable purchase obligationRTO Regional transport officeRWA Residents’ welfare associationRWH Rainwater harvestingS$ Singapore dollarSAF Sanitary appliance feeSCADA Supervisory control and data acquisitionSCE Southern California EdisonSCP Sustainable Cities ProgrammeSEAC State environmental appraisal committeeSERC State Electricity Regulatory CommissionSFC State Finance CommissionSGCCI South Gujarat Chamber of Commerce & IndustrySMB Shillong Municipal BoardSMC Surat Municipal CorporationSOP Standard of performanceSPCB State pollution control boardSPV Special purpose vehicleSSLB Standardized service level benchmarkSTP Science and Technology ParkSTU State transport undertakingSUDA Surat Urban Development AuthoritySUI Sustainable Urbanism InternationalSUTP State urban transport policy


Abbreviations


342A

BB

RE

VI

AT

IO

NS

SWH Solar water heatingSWHS Solar water heating systemSWM Solid waste managementSWP State water policyT&D Transmission and distributionTDM Travel demand managementTERB Transportation Research BoardTERI The Energy and Resources InstituteTISCO Tata Iron and Steel CompanyTMG Tokyo Metropolitan GovernmentTP Town planningTPD Tonnes per dayTPL Torrent Power LtdTRES Tokyo Renewable Energy StrategyUFW Unaccounted for waterUHI Urban heat islandUIDSSMT Urban Infrastructure Development Scheme for Small

and Medium TownsULB Urban local bodyUMTA Unified Metropolitan Transport AuthorityUNESCO United Nations Educational Scientific and Cultural

OrganizationUNOPS United Nations Office for Project ServicesURIF Urban Reform Incentive FundUSAID United States Agency for International DevelopmentUSGBC United States Green Building CouncilUWEP Urban Waste Expertise ProgrammeVAT Value added taxVOC Volatile organic compoundW&WW Water and waste waterWBF Water-borne feeWBSEDCL West Bengal State Electricity BoardWCT Water conservation taxWDM Water demand managementWHO World Health OrganizationWSA Wilbur Smith AssociatesWSP Water and Sanitation ProgrammeWTE Waste-to-energyZED Zero-emissions development


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