DHANBAD MUNICIPAL CORPORATION Issuer Rating BWR BB … Dhanbad is India’s coal capital, and is...

DHANBAD MUNICIPAL CORPORATION

Issuer Rating

BWR BB (Outlook: Stable) 2017

Dhanbad Municipal Corporation

Brickwork Ratings India Private Limited Page 2

SERVICE LEVEL OF DMC (As per SAAP) Vs MoUD BENCHMARK

Service Line Present Status

Adityapur Chas Deoghar Ranchi Dhanbad Giridih Hazaribagh MOUD

Benchmark

Water Supply

Coverage of water supply connections

20.00% 12.77% 28.41% 53.00% 21.57% 34.26% 28.13% 100.00%

Per capita supply of water

64 LPCD 44.61 LPCD

69.33 LPCD

98 LPCD 98 LPCD 70 LPCD 77.34 LPCD 135 LPCD

Extent of metering of water connections

0.00% 0.00% 3.00% 25.00% 11.07% 0.00% 0.00% 100.00%

Extent of non-revenue water

53.00% 70.00% 54.47% 70.00% 45.00% 50.77% 61.00% 20.00%

Quality of water supplied

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Cost recovery in water supply services

65.00% 20.00% 40.00% 40.00% 85.00% 27.82% 13.76% 100.00%

Efficiency in collection of water supply related charges

46.28% 80.00% 51.35% 50.00% 85.00% 22.27% 15.26% 90.00%

Sewerages

Coverage of latrines (individual or community)

86.00% 85.00% 78.00% 77.00% 86.00% 90.00% 74.00% 100.00%

Coverage of sewerage network services

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

Efficiency of collection of sewerage

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

Efficiency in Treatment: Adequacy of sewerage treatment capacity

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

Storm water Drainage Coverage of Strom water drainage network

30.00% 30.00% 18.00% 52.00% 60.00% 47.00% 35.00% 100.00%

Incidence of sewerage mixing in the drains

35.00% 30.00% 80.00% 80.00% 40.00% 52.26% 40.00% 0.00%

Incidence of water logging

25.00% 25.00% 80.00% 4-6

times 25.00% 10.00% 35.00% 0.00%

Park (Space Availability) Per person open space in plain area as pre URDPFI guidelines

4 Sq. m. 5.20 Sq.

m. 3.43 Sq.

m. 2.34 Sq.

m. 4.2 Sq. m.

0.68 Sq. m.

4.00 Sq. m. 10-12 Sq. m.

Source: SLIP of AMRUT Cities of Jharkhand.



Contents

Details Page No

1 Dhanbad City 4

2 Dhanbad Municipal Corporation 4-5

3 Key Indicators for Dhanbad City 5

4 Dhanbad District Profile 6 - 8

5 Executive Summary 9

6 Organizational Setup and Legal Framework 10 - 13

a. Administrative set up

b. Functional domains

c. Taxation and borrowing powers

7. Demography and Economy 14

a. Demography

b. Economic Base

8. Delivery of Civic Services 15 - 23

a. Water Supply

b. Sewerage

c. Storm Water Drains

d. Open space Availability

e. Urban transport and Street lights

f. Solid Waste Management

g. E-Governance

h. Other services

9. Financial Analysis 24- 27

a. Revenue Receipts

b. Revenue Expenditure

c. Revenue Surplus/Deficit

d. Capital Receipts and Capital Expenditure

Annexures

Annexure I - Income and Expenditure 28

Annexure II – Balance Sheet 29

Annexure III - Kay Ratios 30

Annexure IV- State Finances – Jharkhand 31-35

Annexure V - AMRUT – Reforms & Its Status 36-38



DHANBAD CITY

DHANBAD MUNICIPAL CORPORATION Dhanbad is India’s coal capital, and is part of the most urbanized district in Jharkhand. Dhanbad Municipal Corporation (DMC) is the District headquarters of Dhanbad District of Jharkhand state. DMC was formed on 2nd February 2006. It was formed by combining 32 Urban settlements (towns) and 258 Villages. The Urban settlements consisted of erstwhile Dhanbad Municipality, Jharia NAC, Sindri NAC, Chhatandh NAC, Katras NAC and 27 census towns (as per 2001 census). Dhanbad Municipal Corporation spread over 275 Sq.Km has a total population of 1,162,472 and population density of 4,227 persons per sq. km. Total number of registered households in the corporation is 2,20,783.

Name of the City Dhanbad District Dhanbad Area 275.00 Sq.km Population Total (Census 2011) in no’s 11,62,472 Male Population as % of total 52.88% Female Population as % of total 47.12% Population Density 4227 Persons per Sq.Km

Connectivity By Bus, Railway, (Air) Private airport

Nearest Metropolitan City Kolkata Nearest Airport Asansol-Durgapur Nearest Railway Station Dhanbad Nearest Port Haldia

As per Census 2011, the population of Dhanbad Municipal Corporation is 11,62,472 out of which male population is 6,14,722 ( 52.88%) and female population is 5,47,750 (47.12%). The city has 891 female for every 1000 males Out of the total population, the schedule caste population is 17.16% and Schedule Tribe Population is 1.99%. Dhanbad has an average literacy rate of 79.47%, higher than the national average of

Dhanbad is the Headquarter of the District Widely known as the 'Coal Capital of India', Dhanbad is famous for it's coal mines and Industrial establishments. DMC spread over 275 Sq.km with a total population of 1,162,472 and population density of 4,227 persons per sq. km.



74.04%: male literacy is 86.14% and female literacy is 71.96%. 12.75% of the population in Dhanbad is under 6 years of age. Dhanbad is also rated as being among the top 100 fastest growing cities of the world. It is situated on the banks of river 'Damodar.' Dhanbad is about 150 km from the state capital 'Ranchi' and about 270 km from 'Kolkata'. Hinduism is the major religion followed in Dhanbad city by 80.07% of the population and Islam is second major religion followed by 16.08% of the population. Dhanbad Municipal Corporation (DMC) is primarily responsible for the basic civic services and amenities to the residents. The key services offered by the Corporation are Birth Certificates, Death Certificates, Residential Certificates, Water connection, Garbage cleaning, Street Light, Holding tax, Professional tax, Asset rent, Water tank, and other miscellaneous services. It is also authorized to build roads within Municipal Corporation limits and impose taxes on properties coming under its jurisdiction. KEY INDICATORS (Dhanbad Municipal Corporation)

Area under municipality. 275.00 sq. km.

Wards 55

Population as per census 2011. 11,62,472

Literacy Rate 79.47%

Sex Ratio 891

Number of holding for holding tax. 2,20,783

Road length ( km) 1040 Km

Street lights 3424

Household level coverage of direct water supply connection. 47,641 (21.57%)

Per capita quantum of water supply. 98 (LPCD)

Solid waste collected 440 MTPD

Solid waste generated 165 MTPD

Solid waste collection efficiency (%). 41.25%

Coverage of storm water drainage network. 60%

Open areas - Park, Hall, Playground, Gardens. 4.20 Sq.m per Person Source: CDP, SLIP and DMC Website.



DISTRICT PROFILE – DHANBAD

Dhanbad district was constituted in 1956 by carving out the old Dhanbad subdivision, Chas and Chandankiyari police stations of the Sadar subdivision of the erstwhile Manbhum district. Dhanbad is a Police district since 1928. The re-organisation of the districts in the State of Bihar which took place after 1971 did not affect the district of Dhanbad. In the year 1991, Bokaro District was constituted by carving out Chas Sub-division of Dhanbad district and Bermo Sub-division of Giridih District. The district is bounded on the west by Giridih and Bokaro on the north by Giridih and Dumka and on the east and south by Purulia district of West Bengal. Dhanbad is a major city of Jharkhand state and is the headquaters of Dhanbad district. Dhanbad is famous for its coal mines and Industrial Establishments. Dhanbad has some of the largest coal mines in India and is widely known as the 'Coal capital of India'. With around 112 coal mines, Dhanbad produces 27.5 Million Tonnes of coal and an annual income of INR 7,000 Million through coal business. Tata Steel, Bharat Cooking Coal Limited (BCCL), Eastern Coalfields Limited (ECL), and Indian Iron and Steel Company (IISCO) are some of the companies with manufacturing facilities in the district. The Indian School of Mines (ISM- IIT) and BIT Sindri are located in Dhanbad.



There are 100,850 acres of hillocks and 56,454 acres of forest cover. It is about 500-1000 feet above Sea level and has mostly lateritic nature soil.

Fact sheet of Dhanbad District

Indicators Dhanbad District Jharkhand

Total Population (in Lakhs) 26.84 329.88

Male (in Lakhs) 14.06 169.3

Females (in Lakhs) 12.78 160.58

Rural (in Lakhs) 11.24 250.55

Urban (in Lakhs) 15.6 79.33

Sex Ratio 909 948

Child Sex Ratio 916 948

Population Density/Km2 1284 414

Average Literacy (%) 74.5 66.4

Male Literacy (%) 83.8 76.8

Female Literacy (%) 64.3 55.4

Number of Sub Divisions 1 45

Number of Administrative Blocks 9 260

Number of Gram Panchayats 256 4423

Number of Villages 1159 32394

Number of Households (in Lakhs) 5.07 62.5

Average Household Size 5.2 5.2

Area (in Sq. km) 2886 79714



Key Educational Institution in DMC: About IIT (ISM)- Dhanbad: The Indian School of Mines was formally opened on 9th December 1926, by Lord Irwin, the then Viceroy of India to address the need for trained manpower related to mining activities in the country with disciplines of Mining and Applied Geology. In 1967 it was granted the status of a deemed university under Section 3 of UGC Act, 1956. Since its establishment, IIT(ISM) has undergone considerable expansion of its activities, and presently it can be considered as a total technology education institute. Situated in the heart of the country’s prime coking coal belt, 260 kms from Kolkata with a campus spread over an area of 393 acres, (with 218 acres of existing campus and 175 acres under acquisition and development) the fully residential IIT(ISM) has all the facilities of a world class academic institute. About BIT Sindri: BIT, Sindri was started as College of Mechanical and Electrical Engineering in 1949 at Patna. After one year it was shifted to Sindri on 17th November 1950. The institute is located at a distance of 28 kms from Dhanbad railway station linked by rail as well as road. It has a sprawling campus of about 400 acres of land near the eastern bank of river Damodar. The institute is controlled administratively by the Department of Science and Technology, Govt. of Jharkhand, Ranchi and academically it is affiliated to Vinoba Bhave University, Hazaribag for conducting examinations and awarding degrees.



EXCUTIVE SUMMARY

Rating Rating Type Outlook

BWR BB (Pronounced BWR Double B)

Issuer Stable

Key Rating Drivers

DMC has an average literacy rate of 79.47%, higher than the national average of 74.04%. Male literacy is 86.14% and female literacy is 71.96%.

Due to its being located next to NH2 & Howrah-Delhi Grand Chord rail line, it is well connected to the capital city, nearby cities and other urban centers.

The district has several tourist spots in the vicinity of Dhanbad like Maithan Dam, Shakti Mandir, Buddha Park etc. Therefore the city has potential to develop as a tourism center.

Economy: The district of Dhanbad is the most industrialized district of Jharkhand. DMC economy depends primarily on coal mining and agriculture. Fertilizer Corporation of India (FCI) and the Bihar Government’s Superphosphate Factory is located at Sindri. Several small scale and tertiary units linked to mining and the fertilizer sectors have developed in Dhanbad. . However, tourism and industries need to be developed further to boost the economy in the municipal corporation area.

Non availability of piped water: Piped water supply coverage is only at 21.57% as on FY16 which is an improvement on the FY15 levels at 21.00%. However, the water supply coverage is very low. Substantial investment is required to improve these metrics to MoUD benchmark of 100%

Sewerage: Sewerage network facility is absent in Municipal area. Household level septic tanks are provided and maintained by residents. In rural parts, primarily wet pit system is used by residents.

Revenues: Revenue from tax contributes to 49.63% of the total RR as compared to 45.67% from grants income and remaining 4.70% from Non-tax revenues. Overall, for the past three financial years, RR has grown with a CAGR of 44.22 % from Rs. 14.70 crs in FY13 & Rs. 12.49 crs in FY14 to Rs. 44.10 Crs in FY15.

Revenue Surplus/Deficit: Dhanbad Municipal Corporation has a revenue surplus which has been fluctuating during FY13 to FY5. Municipality reported revenue surplus of Rs. 12.62 Crs during FY2014-15 against revenue surplus of Rs 1.13 Crs in FY 2013-14.

Collection efficiency: The overall collection efficiency for holding for 2015-16 is at 2.57% and for water tax is at 71.65%. The collection of holding tax has been outsourced to Ritika Printech Pvt Ltd from November, 2014. The collection efficiency is low due to disputed demand of Rs.252.00 crs from BCCL.



ORGANIZATION STRUCTURE & LEGAL FRAMEWORK

Administrative Setup

Elected body

The Municipal Corporation is supervised by an elected body, the Council, consisting of ward councilors who are elected for a term of five years. The town is divided into wards according to its population, and representatives are elected from each ward. There are 55 municipal wards in Dhanbad Municipal Corporation.

Name Designation

Mr. Chandra Shekhar Agarwal Mayor Mr. Eklavya Singh Deputy Mayor

Source: Dhanbad Municipal Corporation website.

Administrative body

Municipal Commissioner, along with officials such as engineer, sanitary inspector, health officer and education officer who come from the state public service are appointed by the state government to manage the administrative affairs of the Municipality.

Name Designation Since

Mr. Manoj Kumar Municipal Commissioner 2016 Source: Dhanbad Municipal Corporation website.



Functional Domains under the municipality/Municipal Corporation

Key functional domains are: Urban Planning and Town Planning Regulation of land use including protection of public land Planning for Social & Economic Development Roads, including footpaths and road crossings Water Supply for domestic, industrial and commercial purposes Public health, sanitation including storm water drains, conservancy and . Solid and liquid waste management Fire Services Urban forestry protection, promotion of ecological aspects and . maintenance of environmental hygiene Safeguarding interests of weaker sections of society Slum improvement and up gradation Urban poverty alleviation Maintenance of urban amenities and facilities such as parks, gardens, Playgrounds, public markets, bathing and washing Ghats etc. Promotion of cultural, educational and aesthetics aspects Establishment and maintenance of burial and burning grounds Cattle pounds, prevention of cruelty to animals Collection and updating of vital statics including registration of births, . deaths and Marriages. Provision of maintenance of public amenities including street lightings, . parking spaces, bus stops, public conveniences like toilet facilities Regulation of slaughter houses and tanneries and sale of meat, fish and . other perishable food stuff etc. Municipal Revenues The municipal corporation earns its revenues from the following services: - Taxes levied by the municipality - User charges levied for provision of civic services, and - Fees and fines levied for performance of regulatory and other statutory

functions. The Nagar Nigam has powers to impose the following taxes: As per sec 152(1) of Jharkhand Municipal Act 2011 the Municipalities/NACs are empowered to impose following taxes and fees within the municipality areas.



Holding Tax or property tax on lands and buildings.

Tax on vacant land.

Surcharge on transfer of lands and buildings.

Tax on deficit in parking spaces in any non-residential building.

Water Tax

Fire Tax.

Latrine Tax

Tax on advertisement, other than advertisements published in the newspapers.

Surcharge on entertainment tax

Surcharge on electricity consumption within the municipal area

Tax on congregations

Tax on pilgrims and tourists

Toll on roads, bridges, ferries, navigable channels and heavy trucks and buses

Tax on trade and profession.

Any other tax which the municipality is empowered to impose under any law for the time being in force.

Source: Jharkhand Municipal Act, 2011.

Borrowing Powers As per sec 133, Municipality can raise loans by passing a resolution at a meeting of the Municipality, a loan within the limits set by the comprehensive debt limitation policy framed under section 132 by the issue of debentures or otherwise, on the security of the property tax or of all or any of the other taxes, surcharges, cesses and fees and dues under this Act or of both the property tax or all or any of the other taxes, surcharges, cesses and fees and dues under this Act, or on the guarantee by the State Government, of any sum of money which may be required for the purpose. Utilization of borrowings

As per section 150 of Jharkhand Municipal Act 2011, funds generated from bonds/loans can be used for the development of urban infrastructure such as water supply, sewerage, drainage, solid waste management, markets, roads, bridges and urban transport, for reforming and improving the efficiency of existing systems and for the repayment of loans raised through an earlier issue of Municipal bonds or otherwise.

Repayment

Any loan raised by the Municipality under Section 133 will be repaid within the tenure approved under that section and such repayments should be made either from a sinking fund established under section 136 in respect of such loan or partly from such sinking fund and to the extent which such Sinking fund falls short of the sum required for the repayment of such loan, partly from the loan raised for the purpose under section 133, as may be approved by the State Government.



DEMOGRAPHY & ECONOMIC BASE

Demography Population As per Census 2011, the population of Dhanbad Municipal Corporation is 11,62,472 out of which male population is 6,14,722 (or 52.88%) and female population is 5,47,750 (or 47.12%). The city has 891 females for every 1000 males. Out of the total population, the schedule caste population is 17.16% and Schedule Tribe Population is 1.99%. Hinduism is the religion followed by majority of the people in Dhanbad city with 81.22 % of the population following the religion. Islam is second most popular religion in city of Dhanbad with approximately 17.10 % following this religion. Christianity is followed by 0.47 %, Jainism by 0.09 %, Sikhism by 0.65 % and Buddhism by 0.65 % of the population in Dhanbad city. Sex Ratio As per 2011, Census of India, the sex ratio of Dhanbad Municipal Corporation is 891 females per thousand males, which are lower than the district (909) and national level figures (947) and lower than the state (948). Total children (0-6 age group) in Dhanbad city are 1,48,220 accounting for 12.75% of the total population. Child sex ratio is 903 girls per 1000 boys, which is better than the total sex ratio for the city indicating an improvement. Literacy rate Literacy rate of the Dhanbad city is 79.47% higher than state average of 66.41% and the national average of 74.04%. Among 79.47%, male literacy is 86.14% and female literacy is 71.96%. Economy Base:

• The district of Dhanbad is the most industrialized districts of Jharkhand. The

dominant industry of the district is coal mining. The district is home to Jharia Coal field (JCF) which has about 112 coal mines.

• The city of Dhanbad and its neighbourhood is home to Fertilizer Corporation of India and the Bihar Government’s Superphosphate Factory at Sindri. FCI has a manufacturing capacity of 1.3 million MT for Urea and the facilities are spread across 500-600 acres of land. ACC has cement manufacturing facilities at Sindri



• There is a lead and silver refining and smelting unit in the district, the only one of its kind in India, run by the Metal Corporation of India, Ltd., at Tundoo. The ore is procured primarily from Rajasthan.



DELIVERY OF CIVIC SERVICES

Dhanbad Municipal Corporation is responsible for providing civic services and basic amenities to the citizens. The current arrangement and metrics for the following service lines alongwith the proposed improvements are discussed below:

Water Supply Sewerage Storm Water Drainage Parks Roads Street Lighting Solid Waste Management

WATER SUPPLY As per census of India, 2011, the population of Dhanbad Municipal Corporation (DMC) is 11,62,472 with 2,20,783 households. Out of the 2,20,783 households, 47,641 households have access to piped water. DMC has 21.57% of water supply coverage, (increased from 21.00% in 2015), through piped water connections. Water supply in the DMC area is undertaken by three agencies i.e. MADA, FCI and Drinking water and Sanitation Department (DW&SD) (previously known as Public health engineering department (PHED)) MADA provides bulk water and FCI and (DW&SD) distribute piped water within DMC areas. Bharat Coking Coal (BCCL) also has provided piped water to the residential colonies of its employees. Water supply for the entire mineral areas within the district is done by MADA (bulk water supply and distribution). On the other hand, FCI supplies treated piped water to the erstwhile Sindri NAC area. DW&SD undertakes distribution of water supply in all areas of Dhanbad Municipal area excluding the areas covered by MADA and FCI. Water supply by DW&SD is either through piped water or hand pumps.. MADA supplies bulk water to BCCL for distribution and BCCL supplies water to their collieries and colonies. However, in some areas, BCCL itself extracts and supplies water to their collieries. There are two types of water sources in the vicinity of the Dhanbad town. i) Surface Water from Damodar River and reservoir and ii) ground water. The surface water for drinking purpose for Dhanbad is drawn from 1. Maithan Dam (Barakar River) 2. Damodar River, 3. Jamunia River 4. Topchanchi lake.



DMC has adequate water treatment plant to treat the water and meet its demand. Capacities of WTP at these sources are: Name of the WTP Installed Capacity Utilized Capacity Bhelatand WTP 77 MLD under DW&SD (DMC) 35 to 40 MLD treated

water Jamadoba WTP 95.4 MLD under MADA 50 MLD treated water Jamadoba WTP 143 MLD under DW&SD (DMC) Under construction Khanudih WTP 14 MLD under DW&SD (DMC) 13 MLD treated water Sindri (Chasnala) WTP 13.6 MLD under DW&SD

(DMC) 12.5 MLD

Topchanchi WTP 13.6 MLD under MADA Not Running Total 356.60 MLD 110.50 MLD

Zone wise coverage of households:

Zone No Total No of

Households Households with

Water tap Connection Households without

water tap connections 1 Katras 45317 2081 43236 2 Chhatatand 36534 1998 34536 3 Dhanbad 48882 24732 24150 4 Jharia 50184 16516 33668 5 Sindri 39866 2314 37552 Total 220783 47641 173142

Water is being supplied to consumers through direct pumping and through elevated reservoirs. The water table of the planning area is quite high. DMC has total water storage capacity of 109.73 ML. and a total water treatment capacity of 110.50 MLD. Other than piped water supply, hand pumps, wells and ponds are the other sources of water for the citizens. Water Supply Indicators: Indicators Baseline

(2015) Present Sta-

tus MoUD

benchmark Coverage of water supply connections 21.00% 21.57% 100% Per capita supply of water - 95LPCD 98LPCD 135 lpcd Extent of metering of water connections - 11.07% 100% Extent of Non-revenue water - 45% 20% Quality of water supplied 80.00% 100.00% 100% Cost recovery in water supply services - 85.00% 100% Efficiency in collection of water supply charges

- 85.00% 90%

Source: SLIP & SAAP of DMC.



Total road length in the city is 1040 km as per census 2011. Pipelines are not laid in all streets. Street length with water distribution pipeline is 599 kms and Street length without water distribution pipeline is 441 kms. Organization involved in water supply system in Dhanbad Drinking water and Sanitation Department (previously known as Public health engineering department (PHED)) is responsible for providing safe and pure drinking water in the Dhanbad Municipal area.

Planning and Design Dhanbad Municipal Corporation

Construction/Implementation JUIDCO & Drinking water and Sanitation Department

Operations and Maintenance Dhanbad Municipal Corporation Source: SLIP of DMC

Proposed improvements City has conducted assessment of Non-Revenue Water through independent means and is at approximately 45.00%. The following measures are proposed for reduction of non-revenue water (NRW):

Micro-level Household survey with both objective of GIS based Property Infor-mation System[PIS],

Water Connection on spot through ward-wise camps on outsourcing basis, Reduction of water losses & Leakages, Reduction of NRW through Energy/Water Audit, Replacing of old, defunct, inadequate piping system by proper distribution

network, Preparation of Operation & Maintenance Plan, Providing payment avenues through

- Online payment system for citizens through E-Payment Gateway - Ward-office/Pragaya Kendra/Jan Suvidha Kendras as Payment Kiosk for cit-

izens, - Collection through banks - Appointing outside agencies for collection of the water charges. - PPP mode should imply for meter reading and collection of water charge.

Under AMRUT, Dhanbad Municipal Corporation has proposed projects amounting to Rs.519.25 Crs towards improvement of water supply parameters in the city. Out of this amount, Rs. 77.00 crs is proposed to be incurred in 2016-17 but DPR preparation, SLTC and work order has not yet taken place. Due to this disbursement of the allocated fund for the year 2016-17 has not yet done. Jharkhand Urban Infrastructure Development Company Limited (JUIDCO) has been appointed to prepare the DPR for the project. In addition, DMC Water Supply work of 143 MLD capacities is in progress under JnNURM undertaken by DW&SD. The project envisages laying of about 300km



pipelines and construction of related infrastructures like two water treatment plants, two intake wells, three sumps and 36 towers.

Name of Project

Scheme Name Cost Month of

Completion Status

Dhanbad Water Supply Scheme

Under JnNURM Rs. 365.85 Crs March 2017 97% completed

Source: Different publically available information.

SEWERAGE & SEPTAGE Dhanbad is a district of Jharkhand. The present population of Dhanbad is about 11.62 lakhs (2011). Dhanbad Municipal Corporation (DMC) has 5 distinct zones i.e. Dhanbad, Jharia, Sindri, Katras & Chattatand. Project area under Municipal Corporation has been divided into 55 wards. There is no formal sewerage system in the town. Domestic sewage from the septic tanks is being disposed of in the open drains and finally finds way into a natural drain or open land etc. Septage clearance Service is provided by DMC on Application. There is no underground sewerage network & hence no collection & no treatment. Hence, the gap in this service level with regard to benchmarks prescribed by MoUD is 100%. Coverage of latrines is 86% as against the MoUD benchmark of 100%.

Name of ULB Total number of households

Households with sewerage network

Households with septic Tank

Households without septic Tank

Dhanbad Municipal

Corporation 2,20,783 Nil 1,05,974 1,14,809

Source: Dhanbad Municipal Corporation

Sewerage generated in the city is about 162.9 MLD. There is no STP in the city.

Name of the ULB

Service level Benchmark

SAAP Baseline

2014-15 2015-16 MoUD

Benchmark


Coverage of latrines (Individual or community)

81% 86% 100%

Source: SLIP & SAAP of DMC.

Proposed improvements Namami Gange Scheme/Mission: Department of Drinking Water and Sanitation (DW&SD), Government of Jharkhand: is the nodal agency in the state for implementation of sanitation initiatives through the National Rural Drinking Water Programme and Swachh Bharat Mission.



Integrated Sewerage system of DMC will be covered under Namami Gange Scheme. The project under the scheme covers construction, STP/ I&D Structure /Sewerage for the city and it has been estimated to cost around Rs. 422.29 Crs. The costs are pro-posed to be shared 80% from Namami Gange scheme & MoUD, 15% from the State government and remaining from ULBs.

Project Name Scheme Name Cost (Rs.

Crs) Month of

completion Status

Integrated Sewerage system, Dhanbad

Namami Gange 422.29 24 Months DPR under preparatio

n

Grand Total 422.29 Crs Source: SLIP and different sources.

STORM WATER DRAINAGE: At present, total road length in the DMC jurisdiction is 1040 km and storm water drains are available in 60 per cent of the roads The drains have been constructed according to the natural slopes and form the natural drainage system of the town. The drainage system within DMC carries the waste water as well as storm water from this entire municipal corporation and discharges into the nallah leading to pollution of water bodies. The storm water drains will be more effective after the sewerage network is built and this waste does not come into the storm water drains.

Name of the ULB

Service level Benchmark

SAAP Baseline

2014-15 2015-16 MoUD Benchmark

Dhanabd Municipal Corporation (DMC)

Coverage of storm water drainage network

60% 60% 100%

Source: SLIP information of DMC and JLL revenue enhancement report, 2016.

Proposed improvements Under AMRUT, DMC proposes to invest Rs.49.95 Crs towards augmentation of the storm water drain network and integrated sewerage network which includes construction of storm water drains across the existing roads; construction of pumping stations and sluice gates at regular intervals.



Component

2015 2021

Present Ongoing projects

Total Demand Gap

Major drains 8 8 8 - -

Network requirement to provide Proper drainage to all identified water stagnant point/ flooding points.

Nil 300Km 300Km 100% 100%

(Source – SLIP of DMC) PARKS AND OPEN SPACES Under jurisdiction of the Dhanbad Municipal Corporation, available open space is 4.20 Sqm per capita against a MoUD benchmark of 10-12 Sqm per capita. There are 13 parks under the jurisdiction of Dhanbad Municipal Corporation and 8 parks under NGOs and private ownership. The municipality proposes to invest Rs. 5 crs under AMRUT for improvement of the available amenities in the existing parks and increasing the availability of open spaces in the municipal area. However, for FY16-17, DMC has been allocated Rs. 2.00 crs for the development of parks and open spaces. DMC has planned at least 2 parks of 10000 sqm in the coming years as per availability of land to meet its green & open spaces requirements. One park (Bekar Bandh) sanctioned under AMRUT scheme is under tender stage and DPR for 5 new parks is being prepared by consultants.

Name of the project

Scheme name Cost Year of completion

Bekar Bandh Park AMRUT 3.36 Cr 2016-17 Source: SAAP Jharkahnd.

URBAN TRANSPORT Total road length in Dhanbad city is 1040km, which includes National Highways, State Highways, District Roads and arterial and sub arterial roads. National Highway Authority of India maintains national highways, PWD and DMC take care of the all the other city network roads in Dhanbad. Intra City Transportation: JTDC (Jharkhand Tourism Development Corporation) is responsible for the intra city services. There are about 65 midi buses (i.e. Swaraj Mazda) available for the city service and due to various reasons such as lack of crew, problem in carrying out day-to-day operation and maintenance of the buses, these buses have not being operated for some time.



Dhanbad Municipal Corporation has taken initiatives to operate these buses with the help of a private operator. Parking There is no parking restriction and duration on road parking. City footpaths have not have been designed with accessibility and does not cater to the urban design norms in DMC. Role and responsibility of agencies involved in management of City transport:

Agencies Responsibilities National Highway Maintenance all NH roads in DMC area. PWD Maintenance all SH roads in DMC area. RWD Maintenance all rural roads in DMC area. BCCL Maintenance or repair all roads in BCCL area under DMC.

TISCO/Railway Maintenance or repair all roads in TISCO/Railway area under DMC.

Transport Depart-ment

Vehicle registration& issuing offer it for passengers as well as goods vehicle.

Municipal Corpora-tion

Construction or Maintenance or repair all roads under all DMC area.

Proposed improvements Under AMRUT, Rs. 3.00 crs fund has been allocated for parking spaces, pedestrian and footpath development. STREET LIGHTS Street light provisioning and maintenance is an obligatory function of Dhanbad Municipal Corporation. The erstwhile Dhanbad municipality and Sindri NAC have offered street lighting services in the respective areas covered by them. In rest of the areas added to DMC, the street lighting service is being rendered by Electricity Department of Jharkhand.

No. of light points of Dhanbad Municipal Corporation

LED Lights 1174

Sodium Lights 2250

Total 3424



SOLID WASTE MANAGEMENT (SWM) The major waste generating sources are households and other bulk waste generation sources such as markets, hotels, restaurants, shops and function halls. The other waste generating sources include hospital and health institutions that generate hazardous biomedical waste. The estimates of the erstwhile Dhanbad Municipality, Sindri NAC and MADA have indicated that around 440 tons of waste is generated every day in the Municipal Corporation jurisdiction. 165 tons (about 37 percent of the total waste generated) is being collected through its solid waste collection system. In some municipal wards, door to door collection is prevalent while in others the waste is deposited in the community bins or along the road side by the residents. Segregation of solid waste is also not practiced. The collections of solid waste in all wards are covered either by Municipal Corporation or PSUs in their own colonies.



MUNICIPAL FINANCES

The analyses of the finances have been done on the basis of the Certified financial statements Upto 2014-15 and other clarifications/information furnished by the municipal Corporation. The following problems were encountered by BWR while analysing ULB’s finances:

Discrepancies between holding tax collection figures in accounts and demand

collection balance statement furnished by Municipal Corporation.

Lack of data on outstanding liabilities, capital income/expenditure.

The financial analysis of Municipal Corporation has been carried out on a best effort basis. Revenue Receipt (RR) Revenue receipts (RR) of Dhanbad Municipal Corporation is mainly contributed by Grants, Contribution and Subsidies, accounting for 45.67% and Tax revenue for 49.63% of the total receipts in FY15. Revenue from tax contributes to 49.63% of the total RR as compared to 4.70% from other income and Non-tax revenues. Overall, for past three financial years, RR has grown with a CAGR of 44.22 % from Rs. 14.70 crs in FY13 & Rs. 12.49 crs in FY14 to Rs. 44.10 Crs in FY15. Tax Revenues Tax Revenues contribute 49.63% of the Revenue Receipts; Holding Tax, water tax, conservancy tax and other taxes are the major tax components for the Dhanbad Municipal Corporation. For the financial year 2014-15, the revenue from holding tax has increased by 104.51% from Rs. 2.50 Crs in FY14 to Rs. 5.12 Crs in FY15 and other taxes of water tax and conservancy tax contribute Rs. 5.91 crs and 4.72 crs respectively in FY15. However, cess income for DMC has increased substantially from Rs. 0.50 lakhs in FY14 to Rs. 6.11 crs in FY15. Demand Collection Book Details

Particulars

(Rs. in Crs)

Demand Collection Collection Efficiency (%)

Arrears Current Total Total Total

2015-16 (Holding Tax)

8.07 284.43* 292.50 7.52 2.57%

8.07 32.43** 40.50 7.52 18.57%

2015-16 (water Tax)

1.74 2.74 4.48 3.21 71.65%



Source: DCB of Dhanbad Municipal Corporation.

* Including Rs. 252.00 Crs from disputed demand raised from BCCL. ** Excluding Rs. 252.00 Crs from disputed demand raised from BCCL.

Note: As pre clarification provided by the Municipal officials and publically available information, demand raised for holding tax has been increased from Rs. 6.34 Crs in the year 2014-15 to Rs. 284.43 Crs in the year 2015-16. This is primarily due to demand raised from the Bharat Coking Coal Limited (BCCL) of Rs. 252.00 Crs for 90,000 households under the Municipal Jurisdiction. However, this demand from BBCL includes dues for previous years as well as interest chargeable for the delay in payment. This demand has been contested by BCCL and the decision on the matter is pending in the State High court. On an average, the municipal corporation expects the holding tax revenues to be at Rs. 20.00 Crs per annum including holding tax from BCCL households at the current rates. Apart from the Municipal Corporation, MADA (Mineral area development authority) is also collecting holding tax from the households in some areas which is proposed to be brought under DMC. MADA, FCI, BCCL provides water supply in their own areas and collect the user charges from the beneficiaries and DMC gets water supply user charges from the area of water supply covered by DW&SD.

The overall collection efficiency for holding tax is at 2.57% (18.57% excluding demand from BCCL) and for water tax is at 71.65%. The collection of the holding tax on a 85/15 basis has been outsourced to Ritika Printech Pvt Ltd from November, 2014 who will have dedicated infrastructure and personnel for the purpose. The demonetization announced by the Central government in October, 2016 has resulted in increase in collection of taxes by the municipal bodies. Details for Dhanbad are given below:

Municipal Corporation

In November Month Alone Cumulative

2015 (Full Month)

2016, Till Date

Upto 30 Nov 2015

2016, Till date


Rs. 42.51 Lakhs

Rs.78.97 Lakhs

Rs. 636.81 Lakhs

Rs. 719.93 Lakhs

Source: Dhanbad Municipal Corporation.

Non-Tax Revenues Non Tax Revenue contributes 4.70% of total Revenue Receipts, out of which 16.90% is contributed by revenue from Rent charges and 43.82% by fee and user charges. Non Tax Revenue includes rents received from municipal properties like Rent of lands, buildings, Private market, marriage hall etc. During 2012-13 to 2013-14, Non-Tax Revenue has decreased from Rs. 1.70 crs in 2012-13 to Rs. 0.85 crs in 2013-14 and in 2014-15, Non-tax revenue has increased to Rs. 2.07 Crs.

Total 9.81 287.17 296.98 10.73 3.61%



Revenue Expenditure (RE) Revenue Expenditure has decreased from Rs 14.13 Crs in 2012-13 to Rs 11.36 Crs in 2013-14 and increased to Rs.31.48 crs in 2014-15. The major expenditure components under Revenue expenditure are Establishment Expenditure, O&M Expenditure, revenue grants, contributions & Subsidies, Depreciation etc. Establishment expenditure is one of the significant components of the revenue expenditure, which accounted for 16.43 % of the total revenue expenditure during 2014-15. Expenditure incurred under O&M is largely towards repairs and maintenance (R&M) of infrastructure assets and civic amenities like roads, buildings, drainage, parks and gardens, community halls, burial grounds, expenditure incurred towards cleaning and watering of roads, maintenance of electrical installation, vehicle maintenance and purchase of fuel. The municipal Corporation is responsible for R&M of water pumps; tube wells etc. for restoration of civic services like water supply and choked drains in cases of damage caused during floods and water logging. Administrative expenses comprise primarily of payments of rates and taxes and expenses towards telephone, office, stationery, computers, & other equipment including advertisement. Revenue Surplus/Deficit Dhanbad Municipal Corporation has a revenue surplus which has been fluctuating during FY2013 to FY2015. Municipality reported revenue surplus of Rs. 12.62 Crs during FY2014-15 against revenue surplus of Rs 1.13 Crs in FY 2013-14. The surplus is mainly due to increased grants and improved tax revenues. Conclusion Dhanbad Municipal Corporation has huge potential for growth and development due to its proximity to major mining and administrative centers like Bokaro, Durgapur, Ranchi and Kolkata. Further the industrialization of the area has increased the employment potential and thereby the influx of population in the area. However, the service levels for basic amenities like sewerage and solid waste management needs substantial improvement and investment. Mining is major source of income for Dhanbad. While mining has been one of the major reasons for the growth of the Dhanbad city, mining activity also puts a burden on the local environment and infrastructure. Besides using up infrastructure, mines also cause air, water and land pollution, including those caused by mining fires, forcing internal migration, extensive rehabilitation as well as livelihood interventions.



DMC should be compensated for this disruptions out of the income from royalties accruing to the State Government. This could be a large source of revenue for the municipal corporation since there are several active mines in the municipal area. Once the dispute on the collection of the holding tax from PSU areas is settled, the revenues of DMC from holding tax are expected to improve. The implementation of the sewerage project under Namami Gange scheme is also expected to improve the service line metrics in the city. The revenue collection coverage and efficiency needs to be improved and the service lines need substantial improvement and investment to meet the MOUD benchmarks.



Annexure I – Dhanbad Municipal Corporation – Income & expenditure Account

Particulars FY13 FY14 FY15 Amount (Rs. Crs) Certified Certified Certified Revenue Tax Revenue 2.69 4.35 21.89 Assigned Revenues & Compensation 0.00 0.00 0.00 Rental Income from Municipal Properties 0.14 0.09 0.35 Fees & User Charges 0.61 0.67 0.91 sales & hire charges 0.00 0.08 0.79 Revenue Grants, Contribution & Subsidies 10.31 7.29 20.14 Income from Investments 0.00 0.00 0.00 Interest earned 0.95 0.01 0.03 other income 0.00 0.00 0.00 Total Revenue 14.70 12.49 44.10 Expenditure Establishment Expenses 2.30 3.42 5.17 Administrative expenses 0.57 0.20 1.00 Operation and Maintenance 0.71 0.45 5.00 Interest and finance charges 0.00 0.00 0.00 Programme expenses 0.15 0.00 0.01 Revenue grants, contributions & subsidies 10.27 7.16 18.66 Provisions & write off 0.00 0.00 0.00 Miscellaneous expenses 0.09 0.00 0.00 Depreciation on fixed assets 0.06 0.12 1.64 Total Expenditure 14.13 11.36 31.48 Surplus/Deficit 0.56 1.13 12.62 Cash Accruals 0.62 1.25 14.26

Source: Certified financial statement of DMC.



Annexure II – Balance Sheet - Dhanbad Municipal Corporation

Particulars 31-03-2013 31-03-2014 31-03-2015 Amount (Rs. Crs) Certified Certified Certified Liabilities

Municipal Fund (General Fund) 105.19 38.02 27.03 Earmarked Funds 0.00 2.42 0.00 Reserves 0.00 12.50 35.61 Total Reserves & Surplus 105.19 52.95 62.64 Grants, Contributions for specific purposes 47.98 137.02 138.82 Total Grants, Contributions for specific purposes 47.98 137.02 138.82 Secured Loans 0.00 0.00 0.00 Unsecured Loans 0.00 0.00 0.00 Total Loans 0.00 0.00 0.00 Current Liabilities and Provisions

Deposit Received 0.78 1.06 0.59 Deposit Works 0.00 0.00 0.00 Other Liabilities 2.70 4.70 10.59 Provisions 0.00 0.00 0.00 Total Current Liabilities and Provi-sions 3.48 5.75 11.18 Total Liabilities 156.64 195.72 212.63

Assets Total Fixed Assets 9.26 21.78 47.47

Investments - General Fund 0.00 0.00 0.00 Investments - Other Funds 0.00 0.00 0.00 Total Investments 0.00 0.00 0.00 Sundry Debtors (Receivables) 0.00 0.00 0.00 Gross Amount Outstanding 4.39 5.66 21.38 Less: Accumulated provision 0.00 0.00 0.00 Net Amount 4.39 5.66 21.38 Cash and Bank balance 142.22 167.51 143.01 Loans, Advances and Deposits 0.77 0.77 0.77 Total Current Assets, Loans and Advances 147.38 173.94 165.16

TOTAL ASSETS 156.64 195.72 212.63 Source: Certified financial statement of DMC.



Annexure III - Key Ratios - Dhanbad Municipal Corporation

Particulars FY13 FY14 FY15 Amount (Rs. Crs) Certified Certified Certified Income Ratios

Tax Revenue to Total Revenue Income Ratio 18.31% 34.84% 49.63% Non Tax revenue to Total Revenue Income Ratio 11.54% 6.82% 4.70% Assigned Revenues & Grants to Total Revenue Income Ratio

71.10% 59.07% 45.67%

Own Income to Total Revenue Income 29.84% 41.66% 54.33% Expense Ratios

Establishment Expenses to Total Revenue In-come Ratio

15.62% 27.39% 11.72%

Operations & Maintenance to Total Revenue In-come Ratio

4.82% 3.61% 11.34%

Establishment Expenditure to Total Revenue Expenditure Ratio

16.24% 30.11% 16.43%

Operating Ratio

Revenue Expenditure to Revenue Income 96.17% 90.97% 71.37% Dependency Ratio

Total grant income (both capital and revenue grants) to total income

71.10% 59.07% 45.67%

Net Income Profitability Ratios

Cash Surplus / Deficit to Total Income Ratio 4.24% 10.03% 32.33% Fixed Charge = (Establishment + Admin + Int.) / Revenue Income

19.49% 29.03% 13.99%

Source: Ratios has been calculated as per BWR calculation.

Particulars FY13 FY14 FY15

Capital Receipts* Rs. 95.31 Crs Rs. 45.52 Crs Rs. 34.79 Crs

Capital Expenditure* Rs. 112.65 Crs Rs. 18.75 Crs Rs. 9.26 Crs

Note: Capital Receipts and expenditure has been considered as stated in the receipts and payment statements enclosed in the certified financials.



Annexure – IV – State Finances (JHARKHAND) The 28th state of the Indian Union was brought into existence by the Bihar reorganization Act on November 15, 2000 - the birth anniversary of the legendary Bhagwan Birsa Munda.. The capital city of the state is Ranchi while other major cities and industrial centers are Jamshedpur, Dhanbad, Chas/Bokaro, Deoghar, Hazaribagh, etc. Administratively, the State is divided into 24 districts with 38 sub-divisions, 260 blocks and 32620 villages. There are138 towns in the State. Forests form more than 29% of the state landscape which is amongst the highest in India.

The State has a population of 3.29 crs (Census 2011). The urban population is at about 24% of the State population which is lower than India’s urban proportion of 31%. Furthermore, 59% of the total workforce is dependent on agriculture. Since the tribal population constitutes a significant portion of State’s demography, agriculture and forestry are the only source of livelihood for over 70 % of the State’s population. Jharkhand is rich in mineral resources like Uranium, Mica, Bauxite, Granite, Gold, Silver, Graphite, Magnetite, Dolomite, Fireclay, Quartz, Fieldspar, Coal (32% of India), Iron, Copper (25%of India) etc. The State accounts for about 37% of the country’s mineral deposits and is the sole producer of coking coal, uranium and pyrite. Administratively, the State is divided into 24 districts with 35 sub-divisions, 260 blocks and 32615 villages.



Fact Sheet of Jharkhand

Date of formation November 15, 2000 Capital Ranchi Governor Mr. Draupadi Murmu Chief Minister Mr. Raghubar Das Assembly Seats 81 Parliamentary constituency 14 GSDP, 2016 (` lakh crs) 2.26 Major Airport Ranchi Population, 2011 census (Cr) 3.29 Literacy rate (In %) 67.63% English speaking population ~27 Lakhs Length of Roads (KM) NH: 1006, SH: 4662 Area (sq. km.) 79716 Forest Cover 29% Districts 24 Sub-Divisions 38 Blocks 260 Villages 32620 Towns 138 Local Language Hindi, Santhali, Mundari

Source: Different sources and State website.

Macro - Economic profile of Jharkhand:

The socio-economic indicators for Jharkhand as per the Census of India, 2011 are given below.

Socio Economic Indicators Jharkhand India

Urbanization 24% 31.20%

Per capita income Rs. 46131 Rs. 93231

Population density 414 382

HDI 0.574 0.764

Literacy 66.41% 74.04%

IMR 39 44

MMR 312

Sex ratio 948 943

Unemployment 27.4% 34%

Source: Census, 2011 Jharkhand has a working population of 68, 18,595, out of which 76% are main work-

ers and rest are marginal workers.



The state’s mines enjoy a unique locational advantage as it is close to both central and

eastern India which has large industrial bases. It is also close to the ports of Kolkata,

Haldia and Paradip which helps in transportation of minerals for export markets.

JHARKHAND STATE BUDGET: GSDP:Jharkhand's gross state domestic product (GSDP) has grown by 13.00 % from Rs.1,97,514 crs in 2014-15 to Rs.2,26,184 crs in 2015-16.. The state's economy witnessed high growth rates between 2004-05 and 2015-16, with gross state domestic product (GSDP) expanding at a compound annual growth rate (CAGR) of 12.87 per cent.

GSDP & Sector share, 2016

Sector % of GSDP

Agriculture 16.61%

Industry 38.78% Service 48.62%

Source: Economic Survey, 2015-16

Receipts: As per the actuals for FY 2014-15, the state had reported total receipts of Rs.40,041 crs as against Rs.30,429 crs for FY2013-14, witnessing a growth of 24.06%. Total receipts of Rs.38,288 crs includes revenue receipts of Rs.32,565 crs and capital receipts of Rs.6,723 crs. The increase in total receipts was mainly due to increase by 10% increase in own tax revenues, 16% increase in the non-tax revenue and 82% increase in grants from Centre. Own tax revenues amounts to 33% of revenue receipts and 27% of total receipts. Share in Central taxes and Grants from Centre amount to 19% of the total receipts.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Agriculture Industry Service

16.61%

38.78%

48.62%

Jharkhand - GSDP & Sector share, 2016

% of GSDP



The state has reported Revised Estimates of Rs 62,253 crs of Total Receipts in 2015-16 and Budgeted Estimates of Rs.63,503 crs of Total Receipts in 2016-17. The estimated increase in total receipts is mainly on account of increased share in central taxes due to change in basis of devolution as per 14 Finance Commission’s recommendations , increased grants from Centre and estimated increase in tax revenues.. Expenditure: The states total expenditure increased by 31.59% from Rs 30,429 crs in FY2013-14 to Rs 40,040 crs in FY2014-15 as per the actuals reported in the Budget document for 2016-17. Total Expenditure of Rs.40,040 crs in FY2014-15 includes Revenue Expenditure of Rs. 31,794 crs and Capital Expenditure of Rs. 8,246 crs. This increase in total expenditure was due to higher expenditure on Education, Medical, Agriculture, Transport sectors and also due to higher repayment of loans. The state has estimated expenditures of Rs.84,693 crs for FY2015-16 (R.E.) and Rs. 94,053 crs for FY2016-17 (B.E.). These increased expenditures have taken into account the impact of 7th Pay commission, increased interest costs, higher pension obligations and expenditure on social/economic sectors such as expenditure on Education, Medical, Agriculture and transport sectors. On an average the state spends 66% of its total expenditure on social services and Economic services. 27% is spent on General services. The rest is spent on debt repayment. The state has a high committed expenses to Own revenues (Own tax +non tax revenue’s) ratio of 105.8%. Committed expenses include salaries, pension, interest payment and administrative expenses. Deficit/Surplus: Jharkhand has shown a revenue deficit in FY14-15. However, as per revised estimates for FY15-16 and budget estimates for FY16-17 the State expects revenue surpluses of Rs.5357.01 crs and Rs.6994.50 crs respectively. This is primarily due to substantial increase in State share of central taxes from Rs.9487.01 crs as per actuals for FY14-15 to Rs.16498.80 crs as per revised estimates for FY15-16 and increase in GOI grants in aid from Rs.7392.68 crs in FY14-15 actuals to Rs.11000 crs in FY15-16 revised estimates. As most of the states, Jharkhand also reports fiscal deficit due to mismatch between capital receipts and capital expenditure which is made up by external borrowings. For 2014-15 the state’s Capital receipts were Rs.6723 crs against Capital expenditure of Rs.8246 crs resulting in Fiscal deficit of Rs.6720 crs (3.4% of GSDP). The fiscal deficit has exceeded the prescribed limit of 3% of GSDP as per the FRBM act.



Market borrowings remain the major source of financing for the GFD of most states. However as per the latest RBI data, among the non-special category states, Jharkhand has one of the lowest Debt-GSDP percentages at 16.5%.



Annexure V – REFORMS AND ITS STATUS - DMC (As per SAAP 2016-17)

Sl. No.

Reform Type

Milestone Target

for FY16

Remarks

1.

E-Governance

Creation of ULB website 6

Months Yes, DMC ULB website has been created.

Publication of e-newsletter, (Digital India Initiatives)

6 Months

Yes, DMC is publishing e-newsletter on their website.

Support Digital India 6

Months

1) An initiative has been taken for common conduct policy with the support of TRAI. 2) High Speed internet connectivity facility through broadband connectivity. 3) Digitalization of legacy data of the ULBs.

2.

Constitution and Professionalization of municipal cadre

Policy for engagement of interns in ULBs and implementation

12 Months

Yes, Target achieved. Internship policy for engaging interns in DMC has been notified.

3. Augmenting double entry accounting

Complete migration to double entry accounting system and obtaining an audit certificate to the effect from FY 2012-13.

12 Months

Yes, DMC has migrated to double entry system and obtained audit certificate to the effect from FY 2012-13.

Publication of annual financial statement on website

Every Year

Yes, DMC has annual financial statement on website

4.

Urban Planning and City Development Plans

Preparation of service level improvement Plans (SLIP), State Annual Action Plans (SAAP)

6 Months

Yes, DMC has submitted SLIP & SAAP of FY2015-16 to MoUD.

Make action plan to progressively increase Green cover in cities to 15% in 5 years.

6 Months

Partially complete.Preparation of action plan is under process.

Develop at least one Children Park every year

Every Year

Yes, Target achieved for last FY. Work awarded to development



in the AMRUT cities. of one children park every year in DMC.

Establish a system for maintaining of parks, playground and recreational areas relying on People Public Private Partnership (PPPP) model.

12 Months

Target not achieved completely.

5. Devolution of funds and functions

Ensure transfer of 14th FC devolution to ULBs.

6 Months

Yes, Target achieved and 1st and 2nd instalment has been transferred to DMC.

Appointment of State Finance Commission (SFC) and making decisions.

12 Months

Yes, Target achieved and 3rd State Finance Commission (SFC) appointment.

Transfer of all 18 function to ULBs.

12 Months

Yes, Target achieved. Already, Transferred and provisioned in Jharkhand Municipal Act, 2011.

6. Review of Building by-laws

Revision of building bye laws periodically.

12 Months

Yes completed, Building Bye Laws

Create single window clearance for all approvals to give building permissions

12 Months

Yes, Single window exists.

7(A) Municipal Tax and fees improvement

Atleast 90% coverage. 12 Months

Target of 90% and above coverage in property tax has completed.

Atleast 90% collection. 12 Months

Target partially achieved.

Make a policy to periodically revise property tax, levy charges and other fees.

12 Months

Yes, Target achieved. Jharkhand property tax rules has been revised and notified.

Post demand collection book (DCB) of tax details on the website.

12 Months

DCB has been prepared and uploaded on website.

Achieve full potential of advertisement revenue by making a policy for

12 Months

Yes, Advertisement policy 2016 has been notified.



designation specific potential having dynamic pricing module.

7(B)

Improvement in levy and collection of user charges

Adopt a policy on user charges for individual and institutional assessments in which a differential rate is charged for water use and adequate safeguards are included to take care of the interests of the vulnerable

12 Months

Yes achieved, Policy on water user charges 2016 has been notified.

Make action plan to reduce water losses to less than 20% and publish on the website.

12 Months


Separate accounts for user charges.

12 Months

Yes, Completed. AMRUT cities has been opened separate Bank accounts for 5 services Water user charges, Property tax, BPA fees, swim fees and Municipal license fees.

At least 90% billing. 12 Months

Yes achieved, more than 90% of the billing report has been received.

At least 90% collection 12 Months


Energy and Water Audit

Energy (Street lights) and Water Audit (including non-revenue water or losses audit).

12 Months


Making STPs and WTPs energy efficient.

12 Months


Optimize energy consumption in street lights by using energy efficient lights and increasing reliance on renewable energy.

12 Months

Yes target achieved, Sodium light is being converted to LED lights in AMRUT cities.

Source: SAAP Jharkhand, 2016.



Dhanbad City Photographs



Atal Mission of Rejuvenation & Urban Transformation (AMRUT)

Atal Mission of Rejuvenation & Urban Transformation (AMRUT) was launched by the Ministry of Urban Development, Govt. of India on 25th June 2015 for the next 5 years i.e. upto March 2020. Five hundred cities with a population greater than one lakh (100,000) have been taken up under the Mission. Under the mission MoUD, GOI will provide 50% of the project funds while State & ULB will share the remaining 50% for the cities with population up to 10,00,000. For the cities with population above 10,00,000, the sharing of project fund will be GOI 1/3 and remaining funds from the state and ULB. Earlier, MoUD used to give project- by- project sanctions under JNNURM/UIDSSMT and other schemes which have been replaced by approval of the State Annual Action Plan once a year by the MoUD and the State has to decide on the project sanctions and approvals at their end. Thrust areas under the mission: Water Supply Sewerage facilities and Septage management Strom water drains to reduce flooding Urban Transport –pedestrian, non-motorized and public transport facilities,

parking space Creation and upgradation of green spaces, parks and recreation centers, espe-

cially for children.

In the Service Level Improvement Plan (SLIP) for Dhanbad, sector-wise projects identified and the estimated costs are: water supply- Rs.519.25 crs.; sewerage/septage - Rs.286.90 Crs.; storm water drainage - Rs.49.95 Crs.; urban transport – Rs.3.00 Crs.; and parks – Rs.5.00 Crs. Projects have been identified with a total estimated cost of Rs. – 864.10 crs for Dhanbad.

Disclaimer: This report is intended for the use of Dhnabad Municipal Corporation and Government of Jharkhand and is subject to the scope of work and purpose defined therein. We, by means of this report are not rendering any professional advice or services to any third party. For purposes of the exercise, we have used information obtained from primary interactions and secondary information sources, which we believe to be reliable and our assessment is dependent on such information being complete and accurate in all material respects. We do not accept any responsibility or liability for any losses occasioned to any party as a result of our reliance on such information. BWR has relied on the certified financials upto FY15, SLIP data provided by municipality, SAAP of 2015-16 and 2016-17 and other information/clarifications provided by the Urban Local Body

Our procedures did not constitute an audit. We make no representation or warranty as to the accuracy or completeness of the information used within this assessment, including any estimates, and shall have no liability for any representations (expressed or implied)

contained in, or for any omission from, this assessment.

DHANBAD MUNICIPAL CORPORATION Issuer Rating BWR BB … Dhanbad is India’s coal capital, and is...

Documents

Transcript of DHANBAD MUNICIPAL CORPORATION Issuer Rating BWR BB … Dhanbad is India’s coal capital, and is...