C H A L L E N G E S A N D P R O S P E C T SA CASE OF BOPAL- GHUMA NAGARPALIKA

INSTITUTIONAL CHANGES IN PERI-URBAN AREAS

By: Riddhi Vakharia (PP0008714) Guided By: Anurima Mukherjee BasuC E P T U n i v e r s i t y

INTR

OD

UCTI

ON

Institutional Changes in Peri-Urban Areas C H A L L E N G E S A N D P R O S P E C T SA case of Bopal- Ghuma Nagarpalika

S.P. Ring Rod

TRANSPORT

LINK

Construction of S. P.Ring road and S. G.Highway

ECONOMIC

LINKProximity toBusiness Districtof ShivranjiniPrahladnagar

LOCATIONProximity tofast growingAhmedabadandSanand

RAPID

DEVELOPMENTDevelopment of realestate and affordableaccommodationoptions

INSTITUTIONAL

CHANGE

Bopal-Ghuma merged to form a new

Nagarpalika in 2015

CHAOTIC

GROWTHGrowth inabsence ofbuildingbyelaws andurbanjurisdiction

BOPAL-GHUMA

STUDY OF I N S T I T U T I O N A L

CHANGE IN THE PERI-URBAN

FUNCTIONS FINANCES

CHALLNGES

PROSPECTS

Functionaries and capacity of institution is not in the scope of study

NEE

D F

OR

STU

DY

PERI-URBAN BOPAL-GHUMA C U R R E N T S C E N A R I OPeri-urbanization acommon phenomenonin third world countries.

Issues need to beaddressed for peri-urban areas.

Cohesive growth of peri-urban area along withthe urban core.

Lack of publishedliterature

Unpublished literatureinclude study of rural tourban transformation,evolution and growthdynamics, developmentof urban fringes, landconversion and study ofgrowth patterns.

Inadequate study on thegovernance systems inthe area undertransition.

Bopal and Ghuma cameunder the jurisdiction ofAhmedabad UrbanDevelopment Authority in2008 and 2011 respectively.

Although AUDA isresponsible for providinginfrastructure. Still lack ofbasic infrastructure andpoor quality of servicedelivery is observed.

Risk of chaotic andunorganized development inGhuma.

RES

EAR

CH

QU

ESTI

ON

S What are the challenges faced in the governance of peri-

urban areas that are transiting from rural to urban

government structures?

What are future prospects of improvement?

AIM

AN

D O

BJE

CTI

VE

To study the changes in governance institutions in Bopal-Ghuma area, the

challenges faced and future prospects.

To understand governance system for peri-urban areas in Gujarat.

To study changes in functional and financial domain of Bhopal-Ghuma due to the

transition from gram-panchayat to a Nagarpalika.

To analyze the existing institutional framework of governance and service delivery

in Bopal-Ghuma in reference to the provisions under the act.

To identify the opportunities arising from the change and emerging problems due

to this transition.

AIM

OBJ

ECTI

VES

Spatial mapping of

institutional responsibilities

Visual survey

MET

HO

DO

LOG

Y

2

4

5

Literature Review

Field Visits

Data collectionAnalysis

Governance systems in peri-urban

areas

Case studies on Bopal-Ghuma

Key person interview

Snowball sampling

Collection of Documents from

Bopal-Ghuma Nagarpalika office

Further reading of Acts

Institutional matrix of

service delivery.

Budget document Analysis

3

Observation

1Other

officials

Office Superintendent

Meeting Clerks

File visits was an

iterative process

SCO

PE

AN

D L

IMIT

ATI

ON

The entire focus is to study the institutional changes happening in Bopal-

Ghuma after their merger to form a new Nagarpalika.

The study focuses emerging challenges from this transition and future

prospects.

Administrative aspects of functionaries and capacity are not in purview of this

research.

There was major dependency on government records, and personal

interviews/discussions with officials.

GO

VER

NA

NM

CE

SY

STE

M74 th CA A GUJARAT Municipalities Act, 1963

Formation of Town Councils for areasunder transition

ULB responsible for urban development,planning and mobilizing requiredfinancial resources.

Establishment of Ward committees toinclude civil societies in decision makingprocess and making it moreparticipatory and democratic.

Every transitional area shall have aNagar panchayat.

State responsible to provide staff tofulfill functions under clause 1 of article243K.

State declares an area as Nagarpanchayat (transitioning area) byOfficial Gazette.

STA

TE’S

REC

OG

NIT

ION

Criteria of Gujarat state

for declaring an area as urban

Population of the area

The density of the population

Revenue generated for local

administration

Economic importance of the area

Classification Population Total

Municipalities

As per

census

Municipal

Corporations

Above 2.5 lacs 8 8

Class More than 1 Lakh 18 22

Class 50,000 to 1,00,000 33 29

Class 25,000 to 50,000 45 45

Class 15,000 to 25,000 63 66

Classification of municipalities

ISSU

ES P

ERI-

UR

BA

N A

REA

S

1F I N A N C I A L I S S U E S

P H Y S I C A L I S S U E S Lack of physical infrastructure Piece meal non contiguous development Lack of amenities

3O R G A N I Z A T I O N A L I S S U E S Multiplicity of authorities Lack of co-ordination Incapable to handle complex issues

2 More investment compared to returns Lack of financial resources with the gram

panchayat

4E N V I R O N M E N T A L I S S U E S Depletion of environment and

disruptions in ecosystems Selection as landfill and dumping sites

F I N A N C I A L I S S U E S

GO

VER

NA

NCE

ISSU

ESMultiplicity of

03AUTHORITIES

Lack of01 CAPACITYBeing upgraded from the rural

governing body they are not

competent enough to handle

complex issues arising from

unruly and uncontrolled

urbanization happening in the

area.

Lack of02TECHNICAL EXPERTISENagar Palika lack technical expertise that would enable

them to provide better services and infrastructure

Shortage of 04 FUNDS

The gram panchayat can not reap in the

benefits from rural development funds.

The administrative overlap due to

several government departments,,

urban local bodies and village

Panchayats

Low and Inefficient 05 REVENUE GENERATION

Residents in tax and penalties received by comparing

a result in hand to leave the city to provide services

figure very meager amount of urban area is much

less.

CO

NTE

XT

Bopal-Ghuma

9 kmWESTERN PERIPHERY

F R O M

C E N T E RC I T Y

PROXIMITYP R A H L A D N A G A RB U S I N E S S D I S T R I C T

SHIVRANJINI

SANAND

DEM

OG

RA

PH

ICS

NOS.53057POPULATION

11.4AREA SQ

. KM

D A S K R O I T A L U K A

Gamtal

Gamtal

Ghuma

Bopal

S.P. Ring Road

South Bopal

Population 1961 1971 1981 1991 2001 2011

BOPAL 1556 1826 2313 4898 12181 37635

CAGR 1.61 2.39 7.79 9.53 11.94

GHUMA 2373 2965 3239 3691 4371 15422

CAGR 2.25 0.88 1.31 1.70 13.43

Bopal-Ghuma Nagarpalika is a class B

municipality. CAGR of Bopal increases 3 times

from 91-2001 decade and in Ghuma it picks up

dramatically after 2001 and has tripled in 2011

DEM

OG

RA

PH

ICS

NOS.53057POPULATION

11.4AREA SQ

. KM

D A S K R O I T A L U K A

Gamtal

Gamtal

Ghuma

Bopal

S.P. Ring Road

South Bopal

Population 1961 1971 1981 1991 2001 2011

BOPAL 1556 1826 2313 4898 12181 37635

CAGR 1.61 2.39 7.79 9.53 11.94

GHUMA 2373 2965 3239 3691 4371 15422

CAGR 2.25 0.88 1.31 1.70 13.43

Bopal-Ghuma Nagarpalika is a class B

municipality. CAGR of Bopal increases 3 times

from 91-2001 decade and in Ghuma it picks up

dramatically after 2001 and has tripled in 2011

Development plans by AUDA

GR

OW

TH

1 9 7 1

1 9 8 1

1 9 9 1

2 0 0 1

2 0 1 1

1 9 6 1

0.005.00

10.0015.0020.0025.0030.0035.00

CA

GR

YEARS

CAGR Ghuma

Bopal

Ahmedabad

Gujarat

1981 1991 2001 2011

3929

4791

5552

8589

16543

53057

CAGR of Bopal changes in 91-2001 decade and in Ghuma

it picks up dramatically after 2001

GR

OW

TH 2 0 0 0Sparse

growth

KilometersNorth

GR

OW

TH

PV

2 0 0 6

Construction

of S.P. Ring

Road

P

2 0 0 6

Construction

of S.P. Ring

Road

KilometersNorth

GR

OW

TH

2 0 1 0Growth of

Business district

of Prahladnagar

KilometersNorth

GR

OW

TH2 0 1 6

Majority of Bopal and

a part of Ghuma have

been developed till

date

KilometersNorth

FUN

CTI

ON

S74 th CA A GUJARAT Municipalities Act, 1963

Urban forestry

Urban poverty alleviation

Slum improvement and up-gradation

Safeguarding the interests of weaker

sections of society

Sphere of town planning

In the sphere of development

In the sphere of education

In the sphere of public health and

sanitation

In the sphere of administration

Comparison of functions as stated by 74th CAA and Gujarat Municipalities act 1963. These functions are stated for the municipality

Under T.P

schemes Gamtal

Services B-G N AUDA DDO B-G N AUDA DDO

Roads

Water ( for other

uses)

Drinking water

Drainage

Street lights

Health facilities

Solid Waste

Public Amenities

Education facilitiesFUN

CTI

ON

AL

MA

TRIX

Planning and

laying

Operation and

maintenance

Collection

of revenue

Street

lights

AUDA

UGVCL & BGN

BGN

Sharing of responsibilities in service delivery.

Co-ordination n providing street lights

Gamtal

Gamtal

Bopal

S.P. Ring

Road

Towards Shela

Towards Sanand

Ghuma

SPA

TIA

L M

AP

PIN

G

AUDA

B-G Nagarpalika

Roads

Gamtal

Legend

No- services

Towards Ambli

Entire Bopal and a half of Ghuma

have been serviced by BGN and

AUDA collectively. Map prepared

after discussion with Nagarpalika

officials and physical survey

INCO

ME

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00Budget trends

Income (in Lakhs) Expenditure (in Lakhs) Surplus0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 1 2 - 1 3 1 3 - 1 4

Constantly increasing

surplus over the years.

Total Budget 08-09 09-10 10-11 11-12 12-13 13-14

Bopal 41.87 69.78 139.57 199.38 423.31 337.13Ghuma 41.95 64.71 77.65 116.47 210.74 310.50Total Income (in Lakhs) 109.31 171.59 292.63 423.46 719.40 741.21Percentage increase 56.97 70.55 44.71 69.89 3.03Bopal 41.87 69.78 139.57 199.38 423.31 337.13Ghuma 41.95 64.71 77.65 116.47 210.74 310.50Total expenditure 83.82 134.49 217.22 315.86 634.05 647.64Surplus 25.48 37.09 75.42 107.61 85.35 93.58

Budget trends of past

six financial years of

Bopal and Ghuma

Gram panchayat

SO

UR

CES

OF

INCO

ME

0

50

100

150

200

250

300

350

Am

ou

nt

in la

khs

Financial years

Sources of incomes

Tax Revenue Non tax sources" income from grants Building Tax

1 0 - 1 10 8 - 0 9 0 9 - 1 0 1 1 - 1 2 1 2 - 1 3 1 3 - 1 4

Yield and Income 08-09 09-10 10-11 11-12 12-13 13-14

Income from own sources (in percentage)

Total tax revenue 55.59 44.66 45.49 45.42 37.10 37.63

%increase in tax income 26.47 75.01 44.39 48.63 -4.07

Total non-tax revenue 22.92 19.57 22.22 22.00 8.16 4.25

Income from external sources (in percentage)

Total income from loans 0.82 0.56 0.74 0.72 0.16 0.00

Total income from grants 16.68 25.65 22.85 23.09 31.56 27.74

%increase in grants 142.09 53.05 46.14 148.71 -16.87

Dependency ratio 0.17 0.26 0.23 0.23 0.32 0.28

Increasing building tax

with increase in tax

income

Budget of Bopal and

Ghuma Gram

panchayat

0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 1 2 - 1 3 1 3 - 1 4

INCO

ME

FRO

M T

AX

ES

54.23 61.93 58.24 58.55 55.60 53.58

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Inco

me

in p

erc

en

tage

Financial years

Income from taxes

Building tax Light tax Cleaning tax Security charge Business tax general watertax special water tax

Income from taxes (in lakhs) 08-09 09-10 10-11 11-12 12-13 13-14

Building tax 34.34 49.59 81.62 118.48 167.20 154.56

Light tax 2.26 3.58 6.80 9.76 21.22 19.19

Cleaning tax 3.25 5.36 10.63 15.20 28.15 22.92

Security charge 4.34 6.68 11.70 16.89 6.17 55.02

Business tax 6.33 10.35 20.47 29.26 49.97 8.37

general water tax 10.06 0.11 0.16 0.23 0.21 17.19

special water tax 2.71 4.40 8.76 12.51 27.80 11.24

Cheque return charge 0.03 0.00 0.00 0.00 0.01 0.00

Total taxes 63.31 80.07 140.13 202.34 300.74 288.49

Building tax has

maximum share

Budget of Bopal and Ghuma Gram panchayat

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

Exp

en

dit

ure

in la

khs

Finanacial year

EXPENDITURE

Development Total Expenditure (in Lakhs)

EXEN

DIT

UR

E

0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 1 2 - 1 3 1 3 - 1 4

Expenditure (in

Lakhs)08-09 09-10 10-11 11-12 12-13 13-14

Bopal 41.87 69.78 139.57 199.38 423.31 337.13

Ghuma 41.95 64.71 77.65 116.47 210.74 310.50

Total Expenditure 83.82 134.49 217.22 315.86 634.05 647.64

Development 78.93 122.77 196.63 286.14 594.70 613.24

Non-Development 4.89 11.72 20.59 29.71 39.35 34.40

% development 94.16 91.29 90.52 90.59 93.79 94.69

Increasing development

expenditure with

increase in total

expenditure

Budget of Bopal and Ghuma Gram panchayat

63.0639.38 44.37 43.91

31.34 31.78

16.7241.36 35.02 35.60

58.08 56.88

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Dev

elo

pm

en

t ex

pe

nd

itu

re in

pe

rce

nta

ge

Financial years

Development expenditure

Totall Health and Improvement Total Collective development plans Total Society welfare Total Public construction

DEV

ELO

PM

ENT

EXP

END

ITU

RE

0 8 - 0 9 0 9 - 1 0 1 0 - 1 1 1 1 - 1 2 1 2 - 1 3 1 3 - 1 4

Development Expenditure (in Lakhs) 08-09 09-10 10-11 11-12 12-13 13-14

Total Health and Improvement 12.23 11.28 11.18 11.19 3.53 5.13

Total education 0.75 0.29 0.26 0.27 0.13 0.37

Total co-operation 0.73 0.56 0.42 0.43 0.08 0.12

Total industries 0.01 0.02 0.02 0.02 0.00 0.00

Total Collective development plans 63.06 39.38 44.37 43.91 31.34 31.78

Total Society welfare 5.85 6.29 7.78 7.64 5.89 4.13

Total Public construction 16.72 41.36 35.02 35.60 58.08 56.88

Total miscellaneous 0.66 0.82 0.95 0.94 0.82 1.41

Maximum share of development

plans and public construction

Collective development plans Public construction

Road expense Panchayat property, auditorium expense

Pipeline repairing Security expense

Cleaning expense Road repairing Expense

Diesel expense R.C.C. road expense and Bench

Water Supply Flooring works, Paver block

Tractor expense Sewerage pipeline expense

Budget of Bopal and Ghuma Gram panchayat

CO

MPA

RIS

ION

GANDHINAGAR

2

Male52

Female48

HIMMATNAGAR

4

Male52

Female48

Male53

5

SANANAD Male53

Female46

BOPAL-

GHUMA

6

Male52

Female48

2011CENSUS

3

KALOL

Female47

AHMEDABAD

1

A R E ASQ

M

Female47

Male53

464.1POPULATION

55.78

P O P U L AT I O N

2 . 0 6A R E A

SQ

M17.23POPULATION

1 . 7 3

A R E ASQ

M8.82P O P U L AT I O N

8 . 1 1

AREASQ

M40.42POPULATION

0.42

SQ

M11.47

0.53

CO

MPA

RIS

ION

GANDHINAGAR

2

Tax87

Grants7Non-Tax

6AHMEDABAD

1

Grants29

Non-tax48

Tax23

HIMMATNAGAR

4

Tax26

Non-tax30

Grants44

3

KALOL

Grants31

Tax66

Non-tax3

5

SANANAD Tax49

Non-tax20

Grants31

BOPAL-

GHUMA

6

Tax45

Non-tax31

Grants23

2011BUDGET

Source: Statistics of Municipal towns and cities Gujarat 2012-2013 by directorate of Economics and Statistics, Government of Gujarat.

Development exp.

Development exp.

Development exp.

Development exp.

exp. Development

Development exp.

S.P. Ring Road

CH

ALL

ENG

ESBopal-Ghuma Nagarpalika should take

up active role to reduce dependency

over state level institutions.

PLANNING

C H A N G E

Mindset and readiness to change to an Urban

governing institutions would fasten

development.

INFORMATION

G A PLack of information slows down the

development process

AUTHORITIES M U LT I P L I C I T Y O F

Efficiency in service delivery can be achieved by well-organized

and single authority’s involvement giving a cohesive plan

INNOVATIVER E V E N U EGENERATION Methods for innovative revenue

generation has to be sought to reduce

dependency over grants.

S O C I A LENVIRONMENTALgrowth and development should be

accompanied by strengthening the

weaker section of the society and

environmental conservation.

EXPERTISEEfficiency in service delivery can be

achieved with suitable technical

expertise.

TECHNICAL

PR

OSP

ECTS

FUNCTIONS FINANCES GROWTH FUTURE

More grants to

come in from state.

and ruling party

Promising increase

in surplus

Increasing no. of

properties

Availability of

ample of land

for development

Can be

independent over

the years with

technical support

and capacity

building

Functions

performed are

near to those

performed by

smaller

municipalities.

WAY

FO

RW

AR

D

Why?

What Next?

How ?Bridging information GapCapacity building

Need to be independentLook at social, economicaland environmental need.

Proximity to AhmedabadPolitical will

Ghuma

Bopa l

Bopal-

Ghuma Nagarpalika

Not all the issues foundin literature reviewholds true for Bopal-Ghuma.

It has been managedquite well in terms ofservice delivery andrevenue generation.

Co-ordination betweeninstitutions but BGN donot have active role inplanning process.

Peri-Urban

areas Most critical areas

require maximumimportance

Recognition a the statelevel is delayed due tomultiple factors

Urbanization beyond theadministrativeboundaries.

“Our policies have been either for rural or

urban areas. We lack an approach to such

trishanku (middle world) areas.”

--------Shri. Jairam Ramesh

Former Union minister of rural development

T h a n k y o u