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Presentation on Urban Innovations in India By: Prof. Chetan Vaidya, Director NIUA Date: 28 May 2008 Venue: IFMR, Chennai |
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The
Center for Development Finance (CDF), IFMR, Chennai invited Prof. Chetan
Vaidya, Director, National Institute of Urban Affairs (NIUA) to make a
presentation on Urban Innovations in India to staff and students of the
institute and other researchers. Prof.
Vaidya said that rapid urbanization has increased the demand for urban
infrastructure in India. Since public funds for these services are
inadequate, urban local bodies (ULBs) have to introduce innovations in
terms of resource mobilization, accessing capital markets and
community-based delivery of services. First part of this presentation
described development of bond market in India. In 1998, the Ahmedabad
Municipal Corporation issued India’s first municipal bond without state
guarantee to finance a water supply and sewerage project. Several
ULBs and utility organizations have issued bonds and have so far mobilized
over Rs.12,000 million through taxable bonds, tax-free bonds and pooled
financing. Second
part of the presentation presented a case study of Indore Municipal
Corporation on improved revenue base. The third part describes the
Community-Based Toilets project in Sangali, Maharshtra. The Sangli model
emphasizes individual toilets were feasible, and also demonstrates
sustainable management structures for community toilets, which can be
replicated elsewhere. The
Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a flagship urban
investment program of GOI encourages ULBs to link the projects with
market-based financing, improve revenue base and improve delivery of
services for the poor. The presentation lead to interesting discussions on
market based financing, innovative property taxation, development of local
champions in urban sector and institutionalizing municipal reforms. Prof.
Vaidya also held discussions with President IFMR and faculty of CDF, IFMR
regarding possible collaboration between IFMR and NIUA. |
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