1        Introduction

1.1           Background

In order to encourage planned development of the urban sectors across the country, the Government of India (GoI) has launched Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The Mission aims at bringing out fast track planned development of identified cities with a clear focus on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability of ULBs/Parastatal agencies towards citizens.

Shimla is one of the 63 cities, which has been identified under the JNNURM eligible for the fast track development. The City Development Plan (CDP) is the prerequisite milestone for the eligibility under the JNNURM. In view of above, Government of Himachal Pradesh (GoHP) has taken up the programme for urban infrastructure improvement of Shimla and its extended areas under JNNURM scheme. As a first step towards this, GoHP has retained IL&FS Infrastructure Development Corporation Limited (IL&FS IDC) as a consultant for preparation of City Development Plan for Shimla.

1.2          Objectives and Goals of JNNURM

The objectives of JNNURM is to assist cities achieve

(1)  Integrated development of infrastructure services and meet the deficiencies in infrastructure projects;

(2)  Long term sustainability of projects by establishing linkages between asset creation and management through reforms;

(3)  Planned development of cities including the extended urban areas leading to dispersed urbanization;

(4)  Provision of basic services to urban poor; and

(5)  Renewal of old city areas to reduce congestions

The duration of mission is seven years starting from the year 2005-06 and on its completion, it is expected that City would have achieved

(1)  Modern and transparent budgeting, accounting, financial management systems, designed and adopted for all urban service and governance functions;

(2)  City wide framework for planning and governance will be established and become operational;

(3)  All urban residents will be able to obtain access to a basic level of urban services;

(4)  Financially self sustaining agencies for urban governance and service delivery will be established through reforms to major revenue instruments;

(5)  Local services and governance will be conducted in a manner that is transparent and accountable to citizens; and

(6)  E-governance applications will be introduced in core functions of ULB/parastatal resulting in reduced cost and time of service delivery

The Mission encourages leveraging of funds available under JNNURM assistance by enhancing the resource availability with ULBs/parastatal, commercial viability of projects and bankability of the projects and incorporating private sector efficiencies in development, financing, implementation and management of projects.

1.3         Objectives and Goals of Shimla CDP

The key objective of the CDP is to formulate a development strategy for meeting emerging challenges of infrastructure and create enabling environment for the growth of economy. The CDP of Shimla attempts to highlight the role of each and every sector of development in bringing economic benefits to the region and in maintaining vital ecological balance by coordinating various economic and social activities in space through creation of a systematic and functional settlement system.

It is expected that the CDP of Shimla would provide a strategic platform to facilitate development, decision-making, investment programming, efficient allocation of resources and achieving financial sustainability.

1.4         Scope of CDP

The CDP outlines the strategic policy and investment interventions to achieve the vision of Shimla including formulation of sectoral plans for the identified sectors. The scope of work is to:

(a)  Assess the current situation in respect of demographic and economic growth, infrastructure services, municipal finances, etc;

(b)  Identify the gaps in service delivery;

(c)  Prepare a vision and sectoral strategic framework outlining goals, strategies, interventions and projects to achieve the vision;

(d)  Formulate a city investment plan with appropriate financing strategies and an implementation action plan; and

(e)  Focus on the reforms to be carried out at state and local levels in consonance with the vision and strategic plan outlined to sustain planned interventions

1.5        Approach 

The JNNURM for Shimla should be rolled out in two distinct phases. The Phase 1 focuses on preparation CDP for Shimla, which included following activities

(a)  Diagnostic study conducted for Shimla leading to identification of strategies leading to programmes and projects critical for sustainability of the City. A structured diagnostic and participatory approach was adopted for identification of infrastructure deficiencies, vision & goal for the city and interventions required for achieving the vision. The programmes and projects identified, as an outcome of this study were prioritized on the basis of stakeholder consultations, their relevance to the city, criticality from sustainability point of view, potential of providing larger benefits and their amenability to commercial implementation

(b)  Detailing of project in terms of concept, configuration, cost estimates, financing mechanism, and implementation structure

Phase 2 would involve implementation of CDP in terms of achieving technical and financial closure of the projects and its implementation.

1.6        State Commitment

Government of Himachal Pradesh has constituted State Level Steering Committee under chairmanship of Chief Minister and nominated Himachal Pradesh Housing and Urban Development Authority (HIMUDA) as State Level Nodal Agency (SLNA) for implementation of JNNURM in Shimla. The department of Urban Development of the state government is mandated to prepare a City Development Plan for Shimla under JNNURM.

State Government and Urban Local Bodies in Shimla Planning Area are committed to implementation of JNNURM and shall enter into tripartite agreement with GoI for implementation of urban reform agenda.

  

1.7         Structure of City Development Plan

Chapter 1 of the report introduces to the objective of the JNNURM along with the background that led to initiation of study.

Chapter 2 explains the consultative process and vision of the city

Chapter 3 presents the overview of the city.

Chapter 4 and 5 presents demographic profile and economic base of the city.

Chapter 6 provides overview of governance and institutional framework.

Chapter 7 to Chapter 18 detail out the planning aspects of various sectors in terms of current assessment of infrastructure and service provisions, issues and concerns, vision for the sector, strategies and interventions required, and investment plan along with the project information sheets.

Chapter 19 presents financial profile of Shimla Municipal Corporation.

Chapter 20 provides the current status on reform agenda.

Chapter 21 presents the consolidated project requirements and implementation arrangement in form of City Investment Plan.

1.8       Data Limitations

The assessment of existing infrastructure and services, and projections of infrastructure requirements are based on the secondary data provided by the SMC, government agencies and consultation with the interested group. The data is collected from a variety of sources and for a variety of periods of time. Each source of data has its limitations.

The project costs estimated and presented in the CDP are based on preliminary assessment of base engineering cost excluding land cost and would need to be ascertained through the detailed feasibility studies. Certain projects may require land acquisition and same needs to be internalized in project cost while designing the projects[1]. The implementation structures suggested in Project Information Sheets are also based on preliminary assessment and may vary based on feasibility of the project. The costing is based on base year 2006. The scheduling of finances during mission period is on current cost and does not take into account the escalations.


[1] The State of Himachal Pradesh is eligible for financing of land acquisition cost under JNNURM