1                  Reform Agenda status



1.1                                    Introduction


JNNURM is reform driven scheme prescribes the manadatory and optional reforms for ULB and State Government. This chapter presents the status of reforms prescribed under JNNURM. Based on the current status of reform agenda, SMC and GoHP has proposed to implement the reform agenda as delineated in the reform implementation plan appended separately.


1.2                                    Adoption of modern accrual based double entry account system

The accounting method used by SMC was setup by the British Government in 1814 and it has been used since then. It is a cash based single entry accounting system and done in a primitive way. The Shimla Municipal Corporation has now appointed a consultant for implementation of double accounting methods. The system shall be in place by beginning of next financial year. All the official working of all accounts under this system are going to be computerized.


1.3                                    Introduction of  E-Governance System

SMC has take several steps towards the implementation of e-Governance system with the intention of improved service delivery and bringing about the transparency. The key initiatives under this reform are:


1.3.1          Launch of website

SMC has launched its website www.shimlamc.org and it contains Acts and By laws of MC, downloadable forms, helpline, information about citizen services, heritage list of the town,  RTI related information related to EOIs and tenders has been loaded.

1.3.2         Computerization and networking of all the departments

Working of all the departments of SMC is also being computerized. All the departments have already been brought on LAN. The customization of the modules provided by Microsoft is in progress.  SMC is likely to switch over to complete computerization by beginning of next financial year. In Phase III, MC is planning to provide online services to the citizens and its also planning to give a unique identification number to each house hold and with the help of that one can access all the information.

1.3.3         Computerization of billing of property tax and water charges

Municipal Corporation has planned to computerize billing of property tax and billing charges, which will increase the transparency and collection efficiency.


1.3.4         Other online services

Municipal Corporation has planned to online various services like application filing and payments for various services.


1.3.5         GIS based Infrastructure Information System

The corporation is planning to have GIS Survey for the entire Shimla Planning Area for better planning and use it for the property tax collection and the house has approved it.

1.3.6         Public Grievance Redressal System

Public grievance redressal system has been incorporated under E-Governance.


1.4                                    Property Tax Reform

The method to calculate the tax of the property is based on Annual Rental Value method which has its own set of problems. It is the most outmoded method having may loopholes. Shimla Municipal Corporation is envisaging to implement Unit Area Method which is based Delhi model.


1.5                                    By Laws

SMC has modified the bylaws and are put up to the house for the approval. All the functions of Schedule 12 of 74th CAA have been transferred to SMC except Fire Services.



Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 1  Status of Mandatory Reforms for ULB

Mandatory Reforms (ULB)


Adoption of modern, accrual-based double entry system of accounting

Under Process

Introduction of system of e-governance using IT applications like, GIS and MIS for various services

Under Process

Reform of property tax with GIS and arrangements for its effective implementation to increase collection efficiency to 85% at least within next seven years

Under Process

Levy of reasonable user charges to recover atleast 50% of operation & maintenance charges initially.

Shall be implemented as per Reform Implementation Plan proposed separately

Internal earmarking within local body, budgets for basic services to the urban poor

Shall be implemented as per Reform Implementation Plan proposed separately

Provision of basic services to urban poor including security of tenure at affordable prices, improved housing, water supply, sanitation and ensuing delivery of other already existing universal services of the Government for education, health and social security

Presently basic services are provided; gaps in services shall be provided 


Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 2  Status of Mandatory Reforms for State

Mandatory Reforms (State Level Reforms)


Implementation of decentralization measures as envisaged in 74th CAA


Repeal of Urban Land Ceiling and Regulation Act.

ULCRA not enacted 

Reform of Rent Control Laws balancing the interests of landlords and tenants

Shall be implemented

Rationalisation of Stamp Duty to bring it down to no more than 5% within next seven years

Presently the Stamp-Duty is 8%. Shall be implemented as per Reform Implementation Plan

Enactment of Public Disclosure Law to ensure preparation of medium term fiscal plan of ULBs/Parastatals and release of quarterly performance information to all stakeholders.

Under Process

Enactment of Community Participation Law to institutionalize citizen participation and introducing the concept of Area Sabha in urban areas.

Shall be implemented

Assigning or associating elected ULBs with “city planning function”. Transferring all special agencies that deliver civic services in urban areas to ULBs and creating accountability platforms for all urban civic service providers in transition.



Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 3  Status of Optional Reforms for ULB

Optional Reforms


Revision of bye-laws to streamline the approval process for construction of buildings, development of sites etc.


Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes.

Shall be implemented

Introduction of Property Title Certification System in ULBs.

Not necessary

Earmarking at least 20-25% of developed land in all housing projects (both Public and Private Agencies) for EWS/LIG category with a system of cross subsidization.

Not existing; Shall be implemented

Introduction of computerized process of registration of land and property.

Under Process

Revision of bye-laws to make rain water harvesting mandatory in all buildings and adoption of water conservation measures.


Bye-laws for reuse of recycled water.

Water reused by downstream users for irrigation; Not Feasible as implementation would require pumping and separate distribution system;

Administrative reforms i.e. reduction in establishment by bringing out voluntary retirement schemes, non-filling up of posts falling vacant due to retirement etc., and achieving specified milestones in this regard.

Shall be implemented

Structural reforms

Shall be implemented

Encouraging Public Private Partnership

Legal Framework HPIDB existing