like hospitality, entertainment, transport etc. So Kolhapur City Development Plan
as the tourism industries grow in Kolhapur, the
businesses will need people trained in food Also, the current 16 KMC dispensaries are more
sciences, catering, hospitality skills, travel of a liability and do not provide efficient services
administration- travel booking etc. The university to the public. These dispensaries should be
and other institutions can think about initiating closed down. These properties can be rented
courses in Hotel Management, Travel out for coaching classes, showrooms, etc. at the
Administration in Kolhapur. prevailing rent rates. Also, the staff working in
the dispensaries can be merged with the staff
Vocational Training to native industries: working in the family centres. As a result, new
There are a number of native industries in staff will not have to be recruited for family
Kolhapur- like leather work and silverware. The centres.
municipal corporation can partner with training
institutions to initiate training modules that would In order to upgrade the status of the family
update the skills of the workers, provide them welfare centres and to avoid mismanagement of
with basic business skills and upgrade the funds, outsourced auditors and task forces can
technology used by them. This would be be employed. These auditors should be given
imperative to combat increasing threats of the right to penalize for misconduct. Also,
competition from other regions of the state. participation from other doctors must be invited.
Expert doctors from the private sector can be
Equitable distribution of educational invited to the family welfare centres on an
facilities: The Municipal corporation through the honorarium basis for conducting family welfare
mechanism of registration and approvals ensure programmes. All the operating theatres will have
that the geographical (in terms of coverage of all to be revamped depending upon the primary
areas in the city, including the new areas) as health centre operating protocol. Moreover, the
well as functional coverage (in terms of connectivity of family health centres at the
coverage of all levels of education) is central hospital needs to be improved.
maintained.
There are 317 private clinics and hospitals within
Provision of basic infrastructure facilities: the area of KMC. These establishments pay
The municipal corporation should ensure that various fees such as hospital and registration
the schools in Kolhapur have the minimum fees, plan sanction fees, land taxes, and
physical infrastructure in terms of teaching licenses. Amount collected from such fees
facilities, play grounds, laboratories, libraries should be strictly used for the upgradation and
etc., both in municipal schools and private maintenance of health infrastructure. Also,
schools. income generated from KMC’s health
infrastructure (buildings) such as rent, can be
Strategies for health and social used for contingency funds for unprecedented
infrastructure expenses
Products produced by the mahila bachat gats The specific action points can be listed as
need to be brought in line with market trends. follows: -
Currently, these products do not have a market.
Also, these products need to be advertised and 1. The current 16 KMC dispensaries are more
marketed. Shops in the KMC shopping of a liability and do not provide efficient
complexes can be reserved for selling mahila services to the public. These dispensaries
bachat products. Social issues such as girl child should be closed down. These properties
dowry, superstitions, female foeticide and can be rented out for coaching classes,
broken homes will have to be highlighted and showrooms, etc. at the prevailing rent rates.
women educated about the same. Other actions Also, the staff working in the dispensaries
to be taken include legal literacy programs, pre- can be merged with the staff working in the
marital and post-marital counselling and family centres. As a result, new staff will not
improvised work environment with facilities like have to be recruited for family centres.
crèche and retiring rooms.
2. In order to upgrade the status of the family
welfare centres and to avoid
mismanagement of funds, outsourced
auditors and task forces can be employed.
These auditors should be given the right to
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penalize for misconduct. Also, participation Kolhapur City Development Plan
from other doctors must be invited. Expert
doctors from the private sector can be collected from such fees should be strictly
invited to the family welfare centres on an used for the upgradation and maintenance
honorarium basis for conducting family of health infrastructure. Also, income
welfare programmes. All the operating generated from KMC’s health infrastructure
theatres will have to be revamped (buildings) such as rent, can be used for
depending upon the primary health centre contingency funds for unprecedented
operating protocol. Moreover, the expenses.
connectivity of family health centres at the 4. According to the citizen’s group closing
central hospital needs to be improved. down of isolation hospital and distributing
3. There are 317 private clinics and hospitals the infrastructure and staff to other hospitals
within the area of KMC. These is a feasible option as the concept of
establishments pay various fees such as isolation hospital is obsolete.
hospital and registration fees; plan sanction 5. There is a need for compulsory formal
fees, land taxes, and licenses. Amount training programmes to raise the staff to
minimum acceptable level.
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Kolhapur City Development Plan
11 REFORM ACTION PLAN FOR KMC
UIDSSMT aims to create ‘economically productive, efficient, equitable and responsive cities’ by focusing
on a) improving and augmenting the civic, social and economic infrastructure; b) ensuring basic services
for the poor including security of tenure at affordable price; c) initiating wide-ranging urban sector reforms
to eliminate legal, institutional and financial constraints that are impending investments in urban
infrastructure and services; and d) strengthening municipal governments and their functioning in
accordance with the provisions of the 74th Constitutional Amendment Act, 1992.
Though one of the main aims of UIDSSMT is to finance the infrastructure investments identified as part of
CDP, the larger objective of the mission is to initiate the much-needed reforms in ULBs. The mission has
identified certain mandatory and optional reforms to be undertaken at the state government and ULB
levels during the mission period, for the ULB to be eligible for funding. This section deals with the ULB
level reforms; specific items are identified under each reform. The timelines for implementation are
indicated as also the detailed action plan and the status of these reforms if already underway.
11.1 PROPERTY TAX 11.3 COST EFFICIENCY
Kolhapur Municipal Corporation currently The projects will be implemented on a BOT
maintains property tax collection efficiency of basis. This will result in cost efficiency. Also,
77%. A survey to identify the unassessed there is a need for a commercial department
properties has already commenced. A provision which shall handle all the transactions of the
of Rs. 50 lakhs has been made in the budget for Corporation. The department will have
the implementation of GIS. A constraint faced by employees from different fields. The employees
KMC is the size of the property tax net. Since will have to be trained to make the system
KMC’s area has not been extended since 1972, efficient.
its property tax potential also tends to remain
limited. KMC has proposed to revise the rate of 11.4 E-GOVERNANCE
property tax by 10% next year. Also, KMC plans
to fine citizens with property tax arrears. The Currently, only a few departments of KMC are
rates at which the annual rateable value is computerised. These include the departments
calculated are going to be revised. dealing with property tax, water supply, octroi,
birth and death, and building licenses. There is a
11.2 MUNICIPAL ACCOUNTING need to connect all the departments. A Detailed
Project Report has been prepared by KMC for
A Tally software is already being used in KMC. the computerisation of all the departments.
A chartered accountant has been appointed for LAN/MAN (Metropolitan Area Network) will be
converting the current single-entry cash based implemented in the entire Corporation by 2008.
system into a double entry accounting system. The process has already started in April’06. The
The opening balance sheet is expected to be departments will also be connected to the
ready by Apr’07. This firm will maintain the Citizen Facilitation Centres. Currently, there is
accounts of KMC and simultaneously train its one manual CFC; computerised CFCs will be
officials for a period of three years. Also, a launched by KMC by Mar’07.
tender has been floated for the appointment of a
data entry operator. A major hurdle to the KMC’s current website will be updated and
implementation of accounting reforms will be made interactive. An agency has already been
ensuring that the assets and liabilities of the appointed for the same and work is in progress.
Corporation are valued properly. The new website will have a gateway for the
payment of property tax, a complaint filing
Kolhapur Municipal Corporation service, a discussion forum and an opinion poll.
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11.5 OTHER REFORMS Kolhapur City Development Plan
A tender has been floated by KMC for generate an additional revenue of Rs. 6.5
segregation of waste and door-to-door crores in FY2007-08.
collection of waste and segregation. The IT policy of the Government of
Maharashtra (GoM) has been adopted by
Revision of water charges has been KMC in 2006. As a result, the IT sector is
proposed. not charged any octroi and gets property
tax concessions and building permission
Revision of the octroi rate has been concessions in terms of extra FSI.
sanctioned on five items, i.e., electronic In order to promote economic development,
goods, masala products, gold, silver and two shopping malls have been proposed in
structural goods. This is expected to the city at Vasant Baug and Kawala Naka.
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Kolhapur City Development Plan
12 PERFORMANCE MONITORING SYSTEM FOR KMC
In order to undertake effective implementation of the identified projects in a professional manner, KMC
needs to adhere to the timeline of the action agenda. KMC should form a project management cell (PMC)
or create a Special Purpose Vehicle (SPV) for executing projects under UIDSSMT. The SPV shall
undertake the following steps:
Employ project management consultants for planning, designing, drawing out specifications,
estimating and implementing projects
Rely lesser on small contractors and as far as possible award large contracts to attract large and
reputed contractors
Ensure quality assurance from contractors; implement stringent defects liability and guarantee
mechanisms
Employ third party quality control mechanism to ensure that quality control on the works is
implemented
Implement specifications and standards specified by various nodal and central technical agencies
12.1 COMPONENTS OF PERFORMANCE implementation of the action plan. The PMS
MONITORING SYSTEM would measure KMC’s performance with respect
to its service delivery against the committed/set
The Performance Monitoring System (PMS), an targets under each reform. PMS would be
initiative of the KMC, requires collecting data, accompanied with performance benchmarking in
and measuring and reporting KMC’s order to judge how well or how poorly KMC is
performance in its core municipal service areas performing, and what types of corrective actions
for the last five years, viz. water, sewage, are required. Performance benchmarks would
conservancy, public works, transportation, fire, provide a point of reference for drawing
governance, planning, and social services. The conclusions from a PMS.
PMS will initially consist of broad-level efficiency
and effectiveness performance measures. For the purpose of evaluation of PMS, only
those aspects have been considered, which are
PMS would be developed to adhere to the time related to reforms under the UIDSSMT funding.
lines of reforms. This would also ensure timely
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Kolhapur City Development Plan
Table 39: Performance Monitoring System for KMC
TASK INDICATORS Menu of actions Responsible
department
Collection of arrears 2006-007 2007-08 2008-09 Target high value defaulters, Revenue Department
60% 100% collect from govt. properties,
Commence publish list of defaulters, evict Revenue Department
Increased collection Achieve [85 %] Achieve [90 %] or implementation shops, disconnect water
efficiency from current or a minimum a minimum connections of defaulters Administrative
level of 77% increase of 10 increase of 10 % 100% Set targets for staff, provide Department
% incentives and penalties, attach Administrative
Migration to Self- Initiate discussion defaulting properties Department
Assessment System of 90% on the SAS Administrative
Ptax system Initiate this at the General Body, Department
Improve collection ratio formulate committee at KMC
from current level of 100% level Administrative
77% Set targets for staff Department
Use of GIS-based 75%
property tax system Select appropriate consultant,
prepare digital property maps,
Extension of property 100% verify digital maps and prepare
tax regime to all complete data-base of properties
Carry a city-wide survey
properties
Increased coverage of Maximum ratio Cover new layouts, conduct Revenue Department
properties of 1:5 Property: surveys, detect unassessed Revenue Department
Population ratio properties
Rise in average
Increase of 40% Revise once in every four years,
form review committee
assessment per
property
Revision in guidance 40% Adopt revised rates in resolution Revenue Department
value
Progress in Introduce Withdraw current Appoint consultant Acounts Department
parallel run of accounting
implementing accounting system and fully
system convert to new
accounting reforms accounting
Maximum of system
Limit pending audits three years Maximum of one
pending year pending
Publish revenue Publish
Publish
coverage and Publish
wardwise Publish
collection report expenditure Initiate a public
data consultation
Publish multi year exercise for the
2006-07 budget
financial projections Achieve zero
revenue deficit
Publish subsidy reports
Introduce participatory
budgeting
Formalise mid-year, Maintain
budgeting
revised revenue
process surplus
Reduce percentage of Nil Adopt resolution
Hhs living in squatter
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Kolhapur City Development Plan
TASK INDICATORS Menu of actions Responsible
2007-08 department
settlements/ temporary Adopt administrative measure
structures from current 2006-007 100% 2008-09 Water Supply
level of 16% Adopt resolution, convert to paid
Hhs living in squatter 50% 50% Building plan community tap Department
settlements/ temporary No. of persons approval Conduct survey, launch amnesty
structures with basic per connection Increase to Rs. X Payment of scheme, introduce heavy fine
services of not more than per month Property Tax,
Abolish number of X 85% collection Utility Bills and Adopt and implement new rates
PSPs efficiency Management Set targets for staff, provide
Detect unauthorised 80% collection of Utilities that incentives and penalties,
connections efficiency Water supply to come under disconnect connections of
be charges on the ULBs. defaulters
Revise water rates Rs. 2000 for metered Adopt resolution, convert to paid
domestic connections community tap
Increase collection connection for a
efficiency property of Adopt resolution, convert to paid
500sq.ft and Rs. community tap
Metering of water 2000 plus Rs.5
conenctions per sq.ft. for Adopt resolution
areas greater
Levy of new than 500 sq.ft.
connection charge
Rs. 2000 for
Levy of sewerage
connection charge domestic
connection for a
property of
500sq.ft and Rs.
2000 plus Rs.5
per sq.ft. for
areas greater
than 500 sq.ft.
Property tax
efficiency to 85%
with GIS
Water tax
recovery
Public Grievance
Redressal
Issue of licences
and single
window clearance
system
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Kolhapur City Development Plan
TASK INDICATORS Menu of actions Responsible
department
Revise lease
Increase coverage 2006-007 2007-08 2008-09
Birth and Death
certificate issue
Personnel
Management, i.e.
personal
information
system
Works
Management
System
E—procurement
Personnel
Management, i.e.
personal
information
system
New leases Evict defaulter after four months Revenue Department
through auction, of default
Achieve [100 %]
Obtain data from other sources,
Cover 100% of link to property tax database,
shops cover all types of trade
establishments, close unlicensed
Increase collection Achieve [100 %] shops
efficiency or a minimum Bring under purview of revenue
increase of 10 dept.
%
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Kolhapur City Development Plan
13ANNEXURE A: -- ANNUAL ACCOUNTS RECASTING
Analysing the financial strength and making long-term financial projections for ULBs is complicated by the
following:
• Budgets are not prepared in a standard format. Variations are observed between ULBs and from year
to year within the same ULB. Thus, the financial reports/budgets need to be standardised before
analysis.
• The budgets are the only financial document/report prepared by ULBs. The budget is more a
statement of receipts and payments than a statement of income and expenses.
• Separate capital and revenue accounts are not maintained.
• The different funds of a ULB are not clearly demarcated. Some receipts and payments of a municipal
body do not represent or do not affect its financial health. Hence, these need to be ignored for the
purposes for making long-term projections.
Owing to the variations in the preparation of budgets, we have recast them in a standard format as
explained below:
RECEIPTS/INCOME/REVENUE
The objective of recasting the income side is to estimate the receipts that are under the control of the ULB
and/or which are utilised for meeting the core expenditure of the ULB. The ULB receives funds from
various sources such as:
(a) Own tax and non-tax revenues
Items under these heads, among others, include property tax and water charges, which the ULB levies
and appropriates. It has more or less complete freedom on exploiting these sources, subject only to
certain restrictions by the state in the form of maximum tax rates, etc.
(b) Grants and transfers from the state
Grants that are utilised towards meeting the core expenditure of the ULB are included under this head.
Examples are TFC, EFC, SFC grants, city development grants, transfer of stamp duty, etc.
(c) Tied/specific grants
These include items like funds under MP/MLA grant, IDSMT, SJSRY, Housing scheme, etc. These funds
are received from external entities and are used for non-core activities like constructing shops, houses. In
the absence of these grants, the ULB is unlikely to incur any expenditure on these activities. Hence, they
are not included in the core receipts and payments. A qualification is that some of these tied grants (Low
Cost Sanitation Scheme) are for core functions. In such cases, a case-by-case approach is employed.
(d) Loans, deposits, advances, extraordinary items, accounting items
Deposits and advances are amounts that have to be repaid and hence cannot be considered as ULB
receipts. Notional receipts include receipts from the SFC deducted towards dues owed to EB, MJP and
so on. The subcomponents of property tax like Library Cess, Health Cess etc. that are transferred to the
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Kolhapur City Development Plan
state are shown under the head of Extraordinary Items. Similarly, Loans are not considered as income for
the ULB and hence their receipt should be distinguished from other receipts.
Only items 1 and 2 are considered while making projections.
PAYMENTS/EXPENDITURE
The objective of recasting the expenditure figures is to estimate the expenditure that is under the control
of the ULB, or is incurred in meeting the cost of core functions of the ULB.
The ULB incurs expenditure on the following broad categories of expenditure
(a) General municipal expenditure, salaries and capital expenditure
Administrative expenses (revenue collection, etc.) and cost in providing services (water supply, street
lighting) are included under this head.
(b) Expenditure on government schemes
Non-core expenditure items like IDSMT, SJSRY, Housing scheme, etc are included under this head.
(c) Extraordinary expenditure
Items like repayment of loans, deposits, advances, transfer of cesses collected as sub-component of
property tax and so on are included under this head. Repayment of debt is an exception in this category,
as it has to be factored into long-term projections.
Only item 1, as given above, is considered while projecting a ULB’s expenses.
PAYMENTS/EXPENDITURE
The objective of recasting the expenditure figures is to estimate the expenditure that is under the control
of the ULB, or is incurred in meeting the cost of core functions of the ULB. The ULB’s expenditure can be
divided into the following broad categories
(a) General municipal expenditure, salaries and capital expenditure
Administrative expenses (revenue collection, etc.) and cost of providing services (water supply, street
lighting) are included under this head.
(b) Expenditure on government schemes
Non-core expenditure items like IDSMT, SJSRY, Housing scheme etc. are included under this head.
(c) Extraordinary expenditure
Items like repayment of loans, deposits, advances and transfer of cesses, which are collected as sub-
component of property tax are included under this head. Repayment of debt is an exception in this
category, as it has to be factored into long-term projections.
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Kolhapur City Development Plan
14 ANNEXURE B: TEMPLES AND PALACES IN AND
AROUND KOLHAPUR
The city has rich religious precincts such as the famous Mahalaxmi temple, Jotiba temple, Kopeshwar
temple, Narsinhawadi, Temblabai temple, Bhawani temple, Jain Math, Vitthal temple, Gagangiri Math and
Ramling temple. Such religioud places with a strong culture make Kolhapur a city for religious tourism.
Not only this, but the city also has magnanimous landmark heritage buildings such as the Bhavani
Mandap, Shalini Palace, New Palace, Town Hall, Laxmi Vilas Palace, Rajaram high school, Bindu
Chowk, Shivaji University,Rankala lake, Khasbag Maidan and Palace theatre.
1. Karvir Nivasini Shri Mahalaxmi (Ambabai) Temple
The Ambabai temple, which is located in the heart of the city, attracts several tourists not only from
Maharashtra but also from all over the country. According to research it is 5-6 thousand years old. Large
number of tourists visits this temple during festivals like tryarnbuli fair, rathosava, ashtami jagar, eclipse,
gokul ashtami, kiranotsava, etc.
2. Jotiba
This temple is one of the 12 Jyotirlingas. This is also called Kedarnath and Wadi Ratnagiri. It is situated to
the north of Kolhapur in the deep, surrounded by green mountains and black precipices. The original
temple was build in 1730 by Navajisaya. The interior is ancient and the idol is four-handed. The temple is
visited by a large number of tourists on Chaitra Poornima.
3. Narasimhawadi
Narasinha Saraswati Swami was one of the 16 descents of Lord Datta. Kurundwad was his spot of
penance. It is 40 kms. from Kolhapur. Here, huge fairs are held on Purnima which attract around 10 lakhs
of tourists.
4. Shankaracharya Cloister
Shringeri is one of the 4 'Mathas' founded by Jagatguru Shankaracharya the. Shri Vidya Shankar Bharati,
the ruling Shankarcharya there founded this 'Math' at Kolhapur in 13 A. D.
5. New Palace
This is an ancient building on the Bhavani mandap-kasaba bavda road. It was constructed during 1877-
1884. It is an excellent specimen of architecture build in black, polished stone and attracts a large number
of tourists. It has an extensive premise with a beautiful garden, fountain and wresting ground. The whole
building is eight-angled and has a tower in the middle. There is zoo and a ground lake. Even today, it is
the residence of Shreemant Shahu Maharaj.
6. Shalini Palace
The Shalini Palace was built in 193l -34 and was named after Princes Shrimant Shalini Raje of Kolhapur.
The palace stands on the west bank of the picturesque Rankala Lake) & is surrounded by towering palm
trees, lush greenery & lovely gardens. The palace is built of intricately carved black stone and Italian
marble rich decorative wooden doorways fitted with etched Belgium glass bearing the crest of the
maharaja of Kolhapur.
7. Bhavani Mandap
It is the glory of the city. Being the biggest & oldest building, it has historical importance. When Kolhapur
became self-governed, this place was built. It has a fine and sound construction with 14 squares.
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Kolhapur City Development Plan
Other Tourist attractions
The city has also several hills stations and forts around such as Bhudar gad, Panhala gad, Vishal gad,
Gagan gad, Paar gad, Saman gad and Rangna gad. These forts are located near Kolhapur. There is a
need to develop a Kolhapur tourist circuit so that whwn a tourist visits the city he spends more time and
visits the places around. This will also help in boosting the economy.
1. Panhala hill station
Panhala is a hill station situated 20 km from the industrial city of Kolhapur. With its hoary heritage,
Panhala provides the right locale.
Panhala's historic fort throws up memories of Chhatrapati Shivaji, It was from here that Shivaji
beleaguered for over four months, escaped one rainy night to Vishalgad, while his faithful general Baji
Prabhu Deshpande laid down his life holding down the forces of Siddi Johar at a narrow pass, since
christened Pavankhind.
2. Vishalgad Fort
About 60km northwest of Panhala and 18km south from Kolhapur -Ratnagiri road Vishalgad is situated on
a mountain. The fort is separated by a deep narrow raven from the road terminus. Its vastness is big as
per its name Vishal. Steep cliffs separate it from adjoining land, making difficult to enter except existing
entrance.
3. Dajipur Bison Sanctuary
The Dajipur Bison Sanctuary is situated on the border of Kolhapur and Sindhudurg district in taluka
Radhanagari. It is a charming tourist center with a verity of animals, birds and beauty of nature. The forest
is famous for "Gava" buffalo. There are ample antelopes, deer, bears & serpents.
The Jungle Resort is a scenic spot near the backwater of the Radhanagari dam. Hilly areas and thick
forests abundant in wildlife surround it.
4. Rankala Lake
On western side of Mahalakshmi temple, the Rankala Lake, is a popular evening spot and recreation
centre. This lake was constructed by late Maharajah, Shri Shahu Chhatrapati.
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Kolhapur City Development Plan
15 ANNEXURE C: MUNICIPAL FINANCE – ASSESSMENT OF
PAST 5 YEARS
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Kolhapur City Development Plan
Income Statement
Income and Expenditure Statement
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06
General Account - KMC Rupees Lakh
Opening Balance 334 436 438 365 478
Part I - REVENUE 4,132 4,360 4,581 4,893 5,210
I Revenue Income 823 673 544 564 767
149 120 104 115 120
A Own Sources 59 49 40 46 63
Tax Revenue 283 234 197 221 294
1 Octroi 257 218 193 215 253
2 General Tax on Properties
3 Special Water Tax & Water Benefit Tax 5,703 5,654 5,658 6,054 6,707
4 Sewerage Tax, Sewerage Benefit Tax
4 Conservancy Tax 125 135 145 120 139
5 Other Taxes 210 226 260 209 202
Sub-Total (Tax Revenue) 13 13 14 12 13
162 179 94 75 42
Non Tax Revenue 83 85 76
1 Income from municipal assets/ institutions 77 86 1,788 1,705 1,718
2 Development charges 1,372 1,698
3 Building License fee 0 0 1
4 Fire/ Guntewadi fee 1 0 95 91 88
5 Other fees and fines 87 94 65 53 55
6 Water Charges 48 56 116 37 73
7 Sewerage/ Drainage Charges 132 176 336 387 382
8 Misc Water income 498 468 2,997 2,776 2,788
9 Misc Sewerage income 2,725 3,131 8,656 8,830 9,495
10 Interest on investments 8,429 8,785
10 Other Miscellaneous Income 310
126 103 179 109 101
Sub-Total (Non Tax Revenue) 18
Total Own Sources 8 148 150 30 52
464
B Assigned Rev, Grants & Contributions 153 160
1 General Grants 9,959
2 Project specific grants 8,581 251 336 139
3 Other Revenue grants & contributions
Total Grants & Contributions 9,036 8,992 8,969
Total Revenue Income
Income and Expenditure Statement
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06
General Account - KMC 56 Rupees Lakh 62 17
Part II - CAPITAL 14 31 4
I Capital Income - 41 45 --
70 95 93 21
A Own Sources
1 Interest on deposits - -- --
2 Sale/ Lease/ Compensation of lands and Municipal proper 51 50
2 Others (BOT fee, etc) 0 -- -2
Total Own Sources 419 610 1,171
420 - 60 610 1,173
B Loans 940 650
490 940 710 703 1,194
C Grants & Contributions 990 760
1 General grants and contributions
2 Project specific grants
Total Grants & Contributions
Total Capital Income
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Kolhapur City Development Plan
Expenditure Statement
Income and Expenditure Statement
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06
Rupees Lakh
General Account - KMC 537 680 726 801 1,051
425 460 500 533 567
II Revenue Expenditure 261 276 317 321 362
A Establishment, Salaries & Wages 171 182 194 216 232
1 Pension & Gratuity 684 782 848 910
2 General Administration & Tax Collection 567 624 680 738 1,047
3 Water supply 416 468 508 541 801
4 Sewerage 623
5 Conservancy/ SWM 51 60 64 73 82
6 Public Health, Safety, Hospitals and medical services 53 61 63 69 75
7 Public works - Roads 152 167 179 191 208
8 Public works - Lands & Buildings 711 743 789 921
9 Street lighting 110 111 114 131 1,039
10 Parks, play grounds, sports, public utilities 4,138 4,615 4,981 5,445 148
11 Education
12 Others (vehicle, workshop, markets, slaughter house etc) 192 175 177 177 6,234
Total Salary Expenses 942 994 1,104 1,093
157 147 198
B Operation & Maintenance 130 118 1,765
1 General Administration & Tax Collection 38 34 33 121
2 Water supply 152 154 136 91
3 Sewerage 131 334 150 21
4 Conservancy/ SWM 131 65 132
5 Public Health, Safety, Hospitals and medical services 28 29 47 74
6 Public works - Roads 243 213 28 214 43
7 Public works - Lands & Buildings 208 37 223
8 Street lighting 40 37 57 39
9 Parks, play grounds, sports, public utilities 17 38 50 161 74
10 Education 20 161 32 2,225 128
11 Others (vehicle, workshop, markets, slaughter house etc) 1,961 2,316 147 2,788
Total O&M Expenses 2,189
85
C Transfers/ Contributions 207 89 141 154 120
1 General remittances, contributions 236 150 50 45 205
2 Tranfer to KMT 443 239 191 199
Total Transfers/ Contribution Expenses 90
252 172 135 103 -
D Debt Servicing - --- -
1 General Account - --- 90
2 Water Account 252 172 135 103
3 Sewerage Account 9,317
Total Debt Servicing Expenses 6,793 7,341 7,496 7,972 641
1,788 1,695 1,495 996
Total Revenue Expenditure
Operating Status - Revenue Account
Income and Expenditure Statement
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06
Rupees Lakh
General Account - KMC 46 50 15 24 12
660 545 485 275 252
II Capital Expenditure 111 170
1 General Administration & Tax Collection 53 26 59
2 Water supply 64 46 6 7 2
3 Sewerage 17 15 29
4 Conservancy/ SWM 103 59 137 17 44
5 Public Health, Safety, Hospitals and medical services 81 82 52 26 23
6 Public works - Roads 46 69 143 188
7 Public works - Lands & Buildings 16 30 5 10 14
8 Street lighting 14 21 10 21
9 Parks, play grounds, sports, public utilities 2 89 51 52 40
10 Social welfare 60 875 43 28 39
11 Urban poor and Slum development 728 1,927 960 992 690
12 Others and all grant related works 1,935 (937) 1,973 1,610 1,384
(1,445) (1,212) (907) (190)
Total Capital Expenditure
Utilisation Status - Capital Account -97-
Kolhapur Municipal Corporation
Kolhapur City Development Plan
Income – Sectoral Contribution Sectoral Contribution/ Share
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06 Avg (2001-
02 to 2005-
General Account - KMC 48
Opening Balance 10 06)
Part I - REVENUE 2 Percentage
I Revenue Income 1
3 48 51 55 52 51
A Own Sources 3 76687
Tax Revenue 66 11111
1 Octroi 10111
2 General Tax on Properties 1 32233
3 Special Water Tax & Water Benefit Tax 2 22233
4 Sewerage Tax, Sewerage Benefit Tax 0
4 Conservancy Tax 2 63 63 68 67 65
5 Other Taxes 1
16 12111
Sub-Total (Tax Revenue) 0 23222
1 00000
Non Tax Revenue 1 21101
1 Income from municipal assets/ institutions 2 11111
2 Development charges 6 19 20 19 17 18
3 Building License fee 32 00000
4 Fire/ Guntewadi fee 98 11111
5 Other fees and fines 11111
6 Water Charges 1 21011
7 Sewerage/ Drainage Charges 0 54445
8 Misc Water income 0 35 33 31 28 32
9 Misc Sewerage income 2 97 96 98 95 97
10 Interest on investments
10 Other Miscellaneous Income 100 12132
22011
Sub-Total (Non Tax Revenue) 00010
Total Own Sources 34253
B Assigned Rev, Grants & Contributions 100 100 100 100 100
1 General Grants
2 Project specific grants
3 Other Revenue grants & contributions
Total Grants & Contributions
Total Revenue Income
Sectoral Contribution/ Share
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06 Avg (2001-
02 to 2005-
06)
Percentage
General Account - KMC 12 46916
3 11402
Part II - CAPITAL -----
I Capital Income - 5 7 13 2 8
14
A Own Sources -----
1 Interest on deposits -
2 Sale/ Lease/ Compensation of lands and Municipal proper - 8- 0 2
2 Others (BOT fee, etc) 0 95 86 87 98 90
Total Own Sources 86 95 93 87 98 92
86
B Loans 100 100 100 100 100
100
C Grants & Contributions
1 General grants and contributions
2 Project specific grants
Total Grants & Contributions
Total Capital Income
Kolhapur Municipal Corporation -98-
Kolhapur City Development Plan
Expenditure– Sectoral Contribution Sectoral Contribution/ Share
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06 Avg (2001-
02 to 2005-
General Account - KMC 8
6 06)
II Revenue Expenditure 4
A Establishment, Salaries & Wages 3 Percentage
1 Pension & Gratuity 10
2 General Administration & Tax Collection 8 9 10 10 11 10
3 Water supply 6 67766
4 Sewerage 1 44444
5 Conservancy/ SWM 1 23323
6 Public Health, Safety, Hospitals and medical services 2 11 11 11 11 11
7 Public works - Roads 10 89999
8 Public works - Lands & Buildings 2 67777
9 Street lighting 61 11111
10 Parks, play grounds, sports, public utilities 11111
11 Education 3 22222
12 Others (vehicle, workshop, markets, slaughter house etc) 14 10 11 12 11 11
Total Salary Expenses 22222
2 63 66 68 67 65
B Operation & Maintenance 1
1 General Administration & Tax Collection 2 22222
2 Water supply 2 14 15 14 19 15
3 Sewerage 0
4 Conservancy/ SWM 4 22112
5 Public Health, Safety, Hospitals and medical services 1 00201
6 Public works - Roads 0 22212
7 Public works - Lands & Buildings 0 52112
8 Street lighting 29 00100
9 Parks, play grounds, sports, public utilities 33323
10 Education 3 11001
11 Others (vehicle, workshop, markets, slaughter house etc) 3 10111
Total O&M Expenses 7 22212
32 29 28 30 29
C Transfers/ Contributions 4
1 General remittances, contributions - 12212
2 Tranfer to KMT - 21112
Total Transfers/ Contribution Expenses 33223
4
D Debt Servicing 22112
1 General Account 100 -----
2 Water Account -----
3 Sewerage Account 2001-02
Total Debt Servicing Expenses 22112
2
Total Revenue Expenditure 34 100 100 100 100 100
Sectoral Contribution/ Share
S. No. Head of Account 6
3 2002-03 2003-04 2004-05 2005-06 Avg (2001-
General Account - KMC 1 02 to 2005-
5
II Capital Expenditure 4 06)
1 General Administration & Tax Collection 2
2 Water supply 1 Percentage
3 Sewerage 0
4 Conservancy/ SWM 3 31212
5 Public Health, Safety, Hospitals and medical services 38 28 25 17 18 24
6 Public works - Roads 100
7 Public works - Lands & Buildings 39245
8 Street lighting 20001
9 Parks, play grounds, sports, public utilities 11131
10 Social welfare 37224
11 Urban poor and Slum development 4 3 9 14 7
12 Others and all grant related works 40112
21121
Total Capital Expenditure 13332
52233
45 49 62 50 49
100 100 100 100 100
Kolhapur Municipal Corporation -99-
Kolhapur City Development Plan
16 ANNEXURE D: CAPITAL INVESTMENT PLAN
Capital Investment Plan (CIP) till 2011-12 : Summary
Investment till 2011-12 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
(Rs. Lakhs)
Sector/ Component 6,477 163 2,053 (Rs. Lakhs) - -
Water supply 353 - 123 - -
1 Source/ system capacity augmentation 402 - 141 2,120 2,141 - -
2 Treatment capacity augmentation 3,080 - - -
3 Transmission mains and pumping machinery 55 - 1,078 123 106 - -
4 Ground level storage capacity augmentation 455 - 28 - -
5 Elevated Storage capacity augmentation 1,625 163 159 141 121 - -
6 Distribution network augmentation 81 - 325 - -
7 Refurbishment of old Distribution Network 326 - 41 924 1,078 - -
8 Metering System 100 - 109 - -
9 Land acquisition 50 28 -
- - -
- 2,323 137 159 - -
- 670 - -
- 884 569 569 - -
769
214 41 - 8,712 2,221
214 7,138 806 -
- 543 109 109
- 1,149 2,116
- 50 -
- 1,551 -
Sewerage 14,202 - 7,101 4,779
1 UGD - Network 4,467 - 5,700 2,234 1,563 - -
2 UGD - STPs 5,891 - - 2,946 2,062 5,101 -
3 UGD - Pumping Machinery 3,844 - - 1,922 1,153 -
- 790 - -
Roads & Urban Transport 34,188 105 8,377 7,527 - 105
1 Roads Upgrdation 3,309 1,296 940 806 105
2 Roads New Formation 3,306 708 1,938 21 21 1,681
588 1,056 1,681 -
Imp. Rds (Widening, beaurtification, ROBs, bridges, 3,575 - 623 1,401 -
883 1,681
3 utility shhifting etc) 11,400 77 - 5,700 - 1,681 -
4 Improvements to roads (IRDP project) 10,202 41 - 5,101 -
5 Development of Outer Ring Road (ORR project) - 77 198 27
6 Land Acquisition for Road Improvements 396 36 41 790 198 45 -
7 Public Transport/ Improvements 1,580 - - 105 - - -
8 Traffic Management/ Jn. Improvements 36 - - 27
420 32 0 45 -
-
Drains 11,420 32 680 2,736 2,087 0 73
1 Drains Upgradation 3,519 - 3 1,350 406 3
2 Drains New Formation 7,901 - 64 1,387 138 -
3 Desilting & Strengthening of Primary Drains - 1,681 3 -
- - 433 - - 64 58
167 13
Street Lights 345 - 13 41 77 - -
1 Replacement - Tube Lights 166 - - 41 41 58
2 New Installation - Tube Lights - - -- 13 1,233
3 New Installation - High power Lamps 179 - 495 - 36 - 1,233
4 New Installation - High Mast Lamps - -0
0 - 338 1,108 -
- 158 771 -
Conservancy (SWM) & Sanitation 1,147 - 110 114 338
1 New Vehicles (Primary Collection) 10 - 455 -3 - -
2 New Vehicles (Secondary and Disposal) 215 420 - 54 -
3 Acquiring New Disposal Site 433 75 35 -- 840 -
4 Infrastructure at Disposal Site 439 20 - 840 -
5 DLDPs & Container Bins 50 - 97 58 -
6 Public Convenience Systems - 5 1,029 13 - - 121
- 60 -- -
- 68 150 -
Urban Poor/ Slums 4,883 - 11 1,092 954 - -
1 Slum Improvement - Rehabilitation/ Housing 3,083 - 326 462 617 - -
2 Slum Improvement - Infrastructure 1,350 - 423 338 338 -
3 Slum Improvement - Land acquisition 50 41 293 - 9 41
450 30 - 30
1,856 20 - -
Land use/ Dev. Planning 2,135 50 420 420 41 50
1 Acquisition of Reserved lands 2,100 420 420 30
2 Existing Land use Survey (GIS based) 16,188 -- 20 5,356
3 Others 35 -- 50
-
12,674
Others 2,391 847 169
1 Panchganga River conservation 200
2 Heritage & Conservation 104 60 60
3 Tree Plantation & Gardens 45 36 -
4 Parking spaces 502 11 9
5 Truck terminal 845 176 -
6 Eco. Infra Relocations/ Slaughter house etc 165 423 -
7 Urban Governance/ E-Governance/ GIS 150 41 -
8 Others (System Stduies etc) 80 30 30
9 Regular Capital Works 300 20 20
50 50
Total 77,188 22,845 18,268
Kolhapur Municipal Corporation -100-
Kolhapur City Development Plan
17 ANNEXURE E: MINUTES OF STAKEHOLDER WORKSHOP
– 10TH OCTOBER’2006
Members: Municipal Commissioner of Kolhapur Municipal Corporation, Elected Representatives of Kolhapur,
Officials of KMC, The Press, CRISIL team.
Minutes of the workshop:
The main objective of the workshop was to outline the UIDSSMT scheme, its features, the mandatory and optional
reforms, importance of CDP, the process of CDP to be followed in Kolhapur and the expectations from the
stakeholders. The workshop aimed at explaining to the elected representatives the benefits of the scheme and how
as citizen representatives they could contribute to it.
It started with a presentation by Dr. Ravikant Joshi, team leader of the CRISIL team outlining the background of
UIDSSMT, the context of the CDP, the benefits which the CDP has brought to other Indian cities, the CDP process to
be followed in Kolhapur and the assessment of Kolhapur city. Giving the analogy of the city as a child and the
Corporators as its parents, Dr. Joshi explained the important role of elected representatives as stakeholders. He
emphasised that UIDSSMT was a demand-based approach, wherein the city had to chalk out its long-term plan,
identify its needs and then apply for funding under the scheme. He mentioned that projects would have to be
proposed depending upon the investment capacity of the Corporation.
Talking about the context of the CDP, he pointed out how it was different from a Development Plan (DP.) The
Development Plan was more related to land use reservations for various purposes and geographical in nature. The
CDP on the other hand, was a holistic plan of the city outlining a vision, projects to achieve it and reforms agenda to
improve the functioning of the municipal body. He gave examples of the CDPs prepared by other cities such as
Nagpur, Pune and Vadodara explaining how the CDP had benefited these cities, the analysis done by them, the
vision identified and the prioritisation of projects. A concern which was raised was the low decadal growth rate of the
city. There were 2 reasons identified for this – either the city did not have sufficient employment opportunities to
attract people and retain people or since the city area had not expanded. Dr. Joshi also highlighted a few more
concerns such as need to explore tourism potential, need to market the educational facilities and potential for medical
tourism.
The presentation was followed by a brief talk by the Municipal Commissioner of Kolhapur Municipal Corporation, Mr.
Kunal Kumar. He talked about the UIDSSMT scheme, how it was different from the earlier schemes of GoI and how
Kolhapur could derive benefits from the scheme. He also clarified the dual role of the Corporators in the CDP process
- contributing to the preparation of the CDP as stakeholders and providing support for implementation of reforms. He
also asked the stakeholders to identify projects in the fields of tourism, arts and crafts and jewellery.
This was followed by an open house discussion. Several questions were asked regarding the investment capacity of
KMC, the guarantee of getting funding from GoI and the CDP process. The Corporators also identified certain issues
in the city the CDP needed to address such as absence of pavements, bad condition of approach roads, insufficient
parking space, improper drainage system and inefficient sewage treatment. They also pointed out that the DP roads
were implemented to an extent of less than 10% and needed to be implemented. A Corporator also mentioned that
the CDP should identify drivers of the economy not only in predominant sectors like agriculture and industry but also
in smaller sectors like retail trade and commerce. He mentioned that around 2.5 lakhs of the population was
dependent on its earnings on the Kolhapuri chappal industry, scrap industry and other small retail outlets. He
enumerated that there were 12,000 fruit selling shops, 350 biryani centres and several mechanic shops in Kolhapur.
Such small establishments were an integral part of the Kolhapur economy and the CDP had to incorporate the same.
This workshop not only enable the CDP team to get a better understanding of the city and created a base for further
discussions but also brought a sense of involvement among the KMC officials and elected representatives.
Kolhapur Municipal Corporation -101-
Kolhapur City Development Plan
18 ANNEXURE F: STAKEHOLDER CONSULTATION – CII
KOLHAPUR
CRISIL Representative
JNNURM and UIDSSMT intend to develop city infrastructure thereby facilitating economic development and
contributing to nation’s GDP. The UIDSSMT looks ahead in a comprehensive manner that is overall development of
city. CDP is also a means of accessing funds for non-permissible items under UIDSSMT. Funding for this can be
accessed from National Health Mission, National Education Mission etc. The CDP is citizen oriented were citizens
are directly involved in the planning process. A new urban culture is emerging were administrative, political and social
leadership are existing at one platform.
The stakeholder consultations are intended to arrive at a consolidate vision for the city. Reforms can be taken
beyond what is mentioned in UIDSSMT scheme. Reforms such as PT revision shall be in coordination with
administration, political and citizen body.
Difference between in CDP and DP was highlighted. Some illustrated examples of CDPs of other cities prepared by
CRISIL were also presented. Issues with respect to Kolhapur were highlighted. The stakeholders should draw issues
and suggestions keeping in view the region, the city & its periphery and the ward.
Commissioner - KMC
Commissioner KMC elaborated on the comprehensive nature of UIDSSMT scheme. He said that UIDSSMT provides
opportunity for taking up infrastructure projects at city level rather then limited to a toilet block or a piece of road. He
narrated an instance with respect to slum development, where some slums are benefited from NSDP and some from
SJSRY and VAMBAY. CDP in this context shall propose an overall development. He also illustrated that earlier
grants or loans were for specific projects, but in totality did not meet the overall need of the city. UIDSSMT is
therefore an opportunity to meet the overall demand and needs of the city. He also clarified the role of citizens in
prioritization of projects. He also informed citizens with the process of accessing funding from UIDSSMT. Tress cess
to be utilized exclusively for greening the city environs.
Economic Development
Promoting Tourism:
• Tourism potential of Kolhapur is diversified –
o Religious – MAHALAXMI TEMPLE, Binkhambi Ganesh Mandir, Temple of Goddess Tryamboli,
Shri. Datta Maharaj Math, Bhikshaling Sthan, Swayambhu Ganpati (Siddhivinayak Temple) near
canal, Goddess Renuka temple, Vitthal Temple, Jain Temple etc
Ecotourism – Western Ghats
Historical -
Cultural – Festivals and Kolhapur Cuisine
• Need for exploiting the tourist circuit.
• Marketing
Promoting IT & ITES Industry:
• Road show at ASSCHOM conference in Pune regarding potential of establishing IT and ITES industry in
Kolhapur.
• Need for developing social infrastructure.
• STPI park already in Kolhapur, but very few industries – Chicken-egg syndrome.
Kolhapur Municipal Corporation -102-
Kolhapur City Development Plan
Urban Infrastructure
Water Supply: One of the stakeholders suggested for shifting the current source of water supply at Panchganga River
due to pollution from sugarcane industries. The new source near the dam shall also be able to serve nearby villages.
The commissioner recommended that shifting of source is a costly affair; instead KMC shall ask MPCB for
establishing effluent treatment plant which will also eradicate the pollution level. He said that water supply from
Kaware Dam was proposed in the year 1989 and the cost at that time period was Rs 76 crore but the work for the
same was not implemented. Today the cost of the same project is Rs 310 crore. Budget allocation for water supply at
state level is to the tune of Rs 17 crore. In view of this it would not be feasible to implement such project.
He further explained that KMC has already explored options for improving the water infrastructure and has decided to
draw water from Shringpur water source at the rate of 140 MLD. This scheme shall meet the meet demand uptill
2038.
He said that presently out of 86,000 households 29,000 do not have piped water supply. Couple to this there is issue
of inequitable distribution to ESR. KMC has therefore proposed to implement 24x7 water supply in one of the region.
Once successful this shall be implemented across the city.
Sewerage and Sanitation:
• Commissioner said that sewerage treatment in large-scale housing complex will be made compulsory and shall
be a part of the building by-laws.
• Stakeholders requested for construction of pay and use toilets across various locations of city and most
importantly in slum areas.
• Pilot project with respect to SWM should be taken up by KMC
Roads and Traffic:
• Improvement of approach road and immediate junction.
• Facilitating pedestrian traffic.
• Issue of road and electric poles – coordination of agency
• Coordination between KMC and traffic cell.
• Comprehensive traffic planning
Social Infrastructure
• Growing prostitution with increasing trade and commerce in the city.
• Kolhapur is 3rd in Maharashtra in terms of Prostitution and 1st in the terms of ‘female foeticide’.
• Issue of child labour – KMC should eradicate this by questioning the same while issuing or reviewing license to
commercial establishments.
• Career orientation for women.
• Reservation for shops in KMC commercial establishments for women from BPL family.
• Energy conservation measures. – Awareness.
• KMC can facilitate co-ordination between NGO’s engaged in various social activities.
Environment
• Retaining identity of Kolhapur – Clean and green city.
• Western ghats of ecological importance.
The city has 35 gardens – need for preservation and making them healthier.
• Greening of city just with meagre investment.
• Integration of environmental planning in DP
• EMP of Kolhapur has shortlisted 25 sites that need to be preserved.
• Sites with importance of bird-watching
• Jayanti nalla was once a source of water supply, today it is completely polluted.
• Health should not only depend on medicine but also on greenery and wilderness of city.
There needs to be a balance between economic development and environment.
Kolhapur Municipal Corporation -103-
Kolhapur City Development Plan
19 ANNEXURE G: MINUTES OF MISSION CONSULTATIONS
Name of the Stake Holder: Mr. Milind Awde –Town planning Office
Date of Discussion 23/08/2006
Being from the town planning office, Mr.Awde spoke in context of the entire Kolhapur district. The
discussion was more on the economy of the district.
Economy: He highlighted that the district was famous for the cooperative movement with Warana
merely 15kms from the main Kolhapur city. The city also has tremendous tourism potential with the
presence of the Mahalaxmi temple, the Shalini Palace and the New Palace. The city has MIDC industrial
estates located at Shiroli and Gokul Shirgaon and an APMC market yard. The main commodity traded
here is jaggery.
Strengths of the city: The city has a locational advantage with proximity to tourist places like Panhala,
Amboli and Amba Ghat. The city has a tremendous tourism potential. One of its major strengths is the
presence of the Mahalaxmi temple and Jotiba temple. The city is well known for jaggery and the
Kolhapuri chappals. It also has a strong educational base with the presence of the Shivaji University and
several management institutes and medical college.
Problems faced: Pollution of the Panchganga river is a major problem. The city has not attracted
several industries in the recent times. Although, the city is located on the NH-4 and has an airport, rail
connectivity, its connectivity needs a lot of improvement. The city roads are very poor. Also, the area of
KMC has not been expanded, this creates a lot of load on the infrastructure.
Name of the Stake Holder: Mr. Vijay Mohite- KMT
Date of Discussion 23/08/2006
Transport in Kolhapur: The discussion with Mr. Mohite mainly revolved around the public transport
system in Kolhapur. He pointed out that currently KMT plies 140 buses on 27 bus routes. KMT owns 117
buses. 32 buses are plied by private contractors appointed by KMT. These contractors are paid
Rs.16.34 per km. The buses ply within a limit of 15kms of the KMC jurisdiction boundary. The total kms
travelled every day are 34,000. Approximately, 135,000 passengers every day use this transport. The
minimum fare is Rs. 4.The fare was revised last in 2005. KMT faces major financial constraints as it is
unable to increase the fare and the O& M costs have shot up due to the high diesel process. The current
O&M cost per km is Rs. 26.36. Increase in fare needs permission from the GoM. KMT has signed an
agreement with its staff Union that the number of employees will not increase. KMT faces sever
competition form the 3-seater and 6-seater rickshaws. These rickshaws have stage carriage i.e. they
pick up passengers from the KMT bus-stops.
Kolhapur Municipal Corporation -104-
Kolhapur City Development Plan
Name of the Stake Holders: Mr. Sangram Patil and Mr. Yogesh Kulkarni - CII
Date of Discussion 23/08/2006
Economy: The economy of Kolhapur is in a fast track mode. The district has a strong sugar industry,
agriculture industry and auto component cluster. It is also a source for OEMs (Original Equipment
Manufacturers) outside India. It has the potential to emerge an as engineering component exporter.
The city although never projected a tourism centre, it holds tremendous tourism potential. With the
introduction of the Deccan Odyssey the city has got noticed on the world map. In order to build upon
the tourism potential, a tourist circuit can be developed including Panhala, Jotiba, Narsobawadi and
Khidrapur caves.
Upuri near Kolhapur is famous for the silver ornaments. They are exported to various countries. The
city also has a well established Kolhapuri chappal industry.The recent development is that Reliance
industries are planning to come up with a mall, an IT project and an enthanol project in Kolhapur.
Strengths: The city has a strong educational base. The Shivaji University caters to Kolhapur, Sangli
and Satara.
Weaknesses: The city lacks a strong political power. It is a self made city. It needs a leader to take
the city forward.
There is lack of technical power especially in IT services. The city does have an IT park. However, the
park has a poor state of basic infrastructure. Also, IT needs a particular kind of culture and social
infrastructure which is absent in the city. The city has no shopping malls and just 1 multiplex.
Vision: The city should be promoted as a tourism centre. The basic infrastructure services must be
good.
Name of the Stake Holders: Prof. A.A. Dange , Director, Shivaji University
Date of Discussion 20/09/2006
Vision: The basic social and economic infrastructure of the city must be good.
Basic Infrastructure: Mr. Dange identified 3 basic infrastructure services that need to be improved in
Kolhapur – water supply, roads and public transport. With respect to water supply, he said that the
supply to the peripheral development of the system to areas such as Kagal MIDC, Radhanagar and
Bawda was essential for sustainable development. He also mentioned that the current distribution
system was outdated and needed to be upgraded. There were several water lifting schemes on the
banks of the river Panchganga and as a result as soon as water was released the water would be
lifted resulting in fewer water supplies for the Kolhapur city.
With respect to public transport, he pointed out that the performance of KMT was not improving. There
was absence of route diversification and also the bus schedules were not properly planned.
Kolhapur Municipal Corporation -105-
Kolhapur City Development Plan
He also pointed out that the roads condition was bad. He said that only road patchwork was done and
the potholes filled up. Resurfacing of roads did not happen. There was a need to relay the roads. On
discussing BOT for road projects, he mentioned that this was feasible only for the bigger roads which
connected periphery areas.
Economy: He mentioned that the economy of the city has to compete with Pune due to the location of
the city. He found the future of the city mainly in agro-based development. The cooperative movement
although successful in the past could not compete with MNCs. He felt that there was a need for a large
private project to come up in Kolhapur.
Education: Shivaji University has proposed the setting up of a National Institute of Agri-bio technology
and an International School of Engineering and Technology. These 2 institutions are expected to be
complete by 2007-08. It also proposes to set up a National Law School and an Entrepreneurial
Development Institution. Currently, the University has introduced a course wherein it sends 30 artisans
per month to the Central Leather Research Institute in Chennai for training on producing quality
training and for informing them on the latest customer trends. The University has also introduced a PG
Diploma in Leather Technology. It is focussing on modernisation of the existing courses and new
applied science courses. There also exist 2 other major universities in Kolhapur- Bhartiya Vidyapeeth
known for management, pharmacy and law and D.Y. Patil University famous for medical courses.
Symbiosis is also planning to set up a governance program and executive training programs at Kagal.
Industry: In order to have the industry booming there was a need for entrepreneurial development in
Kolhapur. During the period, 1950’s to 1980’s, the foundry in Kolhapur developed due to the incoming
business from automobile industries in Pune. However, now industries in Pune were going for
backward integration and as a result this job work from Pune reduced. Thus, the growth of foundry
industry has reduced. He identified that the need for self-sustaining growth of the economy. There was
a need for private initiation and a new entrepreneurial vision.
Information Technology: The facility of the IT park in Kolhapur was very poor as compared to other
cities. Also, the culture of the city was very different as compared to the one preferred by IT
professionals. Thus the city was unable to attract the IT companies.
Agriculture: Crop diversification was not taking place and this stopped agro-processing units from
setting up in Kolhapur. Also, sugarcane being a cash crop, all the farmers were dependent on it and
did not go for crop rotation. There was a lot of forward trading that happened in sugar, groundnuts and
soyabeans. There was a need for the farmers to go for diversification of pulses. Innovation in the field
of agriculture was absent.
Art and Craft: For the development of the art and crafts industry, there was a need to link the same
with export houses. Also, the export of silver can be tapped to the Chinese economy. He mentioned
that the leather business in Kolhapur was a family business. There were artisan families which
produced the leatherwear and the marketing houses which exported and traded the leatherwear.
Currently, the leather industry in Kolhapur was facing strong competition from Athni in Karnataka.
Tourism: A tourist circuit can be developed and an entire package can be offered to the tourists. This
will help in enhancing the tourism potential of the city. The circuit can cover places like the Mahalaxmi
temple, Jyotiba temple, Narsobavadi, Panhala, Masaipathar, New palace museum, Town hall museum
and Rankala. The packagae can also include the performing of the traditional arts such as Lathi,
Daanpatta, Talwar and Bhala.
Kolhapur Municipal Corporation -106-
Kolhapur City Development Plan
Name of the Stake Holders: Mr. R.N. Jadhav, APMC
Date of Discussion 20/09/2006
The discussion mainly revolved around the trading of agricultural commodities in Kolhapur. He mentioned
that sugarcane was the major commodity that was traded. Another major commodity was jaggery. On an
average 6,70,000 quintals were traded per annum. This year, APMC expects a trading of 7,50,000
quintals of jaggery. The major trade was to Gujarat and Mumbai and exports to New York. He pointed out
that the city had good connectivity in terms of roads but there was a need for better rail connectivity. The
current market of APMC is at Laxmipuri but being in the centre of the city it is very congested. Thus, a
new market of area 20 acres has been proposed at Tamblaywadi.
The APMC secretary felt that there was no need for a truck terminus. He felt that there was sufficient
space in the market yard complex. He felt that there was a need to plan the goods traffic. KMC could
keep a specific timing for the trucks to enter the city.
Name of the Stake Holders: Mr. Mukund Joshi , Gokul Dudh Sangh
Date of Discussion 20/09/2006
The Gokul Dudh Sangh collects milk from 4000 primary societies in the Kolhapur district. Milk is collected
from all the 12 talukas in the district. The major milk suppliers are Karvir taluka, Gadhinglas taluka,
Chandgarh taluka and Kargal taluka. The society had an annual turnover of Rs. 500 crore and earned a
profit of Rs.4.1 crores in the year 2005-06. The procurement of milk ranges from 5.3 lakh litres per day to
6.82 litres per day. The total procurement was around 19 crores for the year 2005-06.The capacity of the
plant is 7 lakh litres per day. The society employs 2000 permanent workers. The Sangh sells around
3,50,000 litres to Mumbai everyday. In addition to this, 60,000 litres is sold to the Mahanand dairy in
Mumbai. Around 30,000- 40,000 litres is sold in Pune and around 80,000 litres is consumed in Kolhapur,
Ichalkaranji, Konkan and Belgaum. The Sangh products comprises of liquid milk (85%) and by-products
(15%). Of the liquid milk, 75% is buffalo milk.
The total procurement of milk in the Kolhapur district is approximately 19 lakh litres. The main dairies are
Warna, Gokul, Samruddhi, Mahalaxmi and Morna among cooperative dairies and Bharat Dairy among the
private ones.
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Kolhapur City Development Plan
Name of the Stake Holders: Mr. K.R. Nagpure, MIDC
Date of Discussion 20/09/2006
Industrial estates in Kolhapur: There are mainly 3 industrial estates located at Shiroli, Gokul Shirgaon and
Kagal.
The Kagal Industrial estate is of 1100 hectares. A 5 star industrial estate comprising of 3000 plots has been
established here. Of the total 3000 plots, on around 300 to 400 plots, companies are functioning currently.
Besides this, a textile zone on area of 450 acres has been proposed. The main companies are Raymond,
Indocomm, Oswal Wardhman and Kirloskar. Also, a silver zone on an area of 80 hectares has been
proposed. In the Phase 1 and Phase 2 of the Kagal industrial estate, there are mainly engineering and
foundry industries such as Anshul steel and Menon Casting. As far as basic infrastructure in the estate is
concerned, the water supply is sufficient. MIDC and MSEB are in the process of making power distribution of
100 MW to this estate. The development of roads and storm water drainage is in process. Also, a CETP of
10 MLD will be started in the next 6 months to treat the industrial effluent. For the infrastructure development
of Kagal, MIDC has already spent Rs. 34 crores and plans to spend Rs. 20 crores in the next 2 years.
The Shiroli Industrial estate comprises of 260 hectares. Of the total 730 plots, around 650 plots have been
sold. Around 635 industries are currently functioning in this area. MIDC has spent around Rs. 6 crores on
providing basic infrastructure in this area. The major industries in this estate are Menon Casting, Manograph
industries, Lokmat, Kolhapur Steel, Saroj Iron industry, Sriram foundry, Mahalaxmi masala product, Bharat
Udyog Ltd. and H.J.Iron.
The Gokul Shirgaon industrial estate comprises of 220 hectares. It has a total of 850 plots of which 800 are
sold. There are 750 industries functioning in this estate. Most of the industries are engineering and foundry.
The major industries are Gokul, Eurotex, Menon Bearings and Indocount.
Infrastructure Needed: There is a need to have a bus service to the Kagal Industrial estate. Good
connectivity will lead to further development of the estate.
A truck terminus is not feasible in the city as very few trucks come to the industrial estate. However, the
same can be implemented in phases on a trial basis. Also, since most of the industries are engineering and
textiles, there is no need for a warehouse. Also, the market yard has sufficient space and does not face a
shortage of storage capacity.
Proposals of MIDC: The following are the proposed projects planned by MIDC:
Roads and water supply- Rs. 10 crores
Concretisation of roads – Rs. 40 crores
Common Effluent Treatment Plant – Rs. 17 crores
Effluent Collection Pipelines- Rs. 2 crores
Citizen Facilitation Centres, Street Lighting, etc. Rs. 5 crores.
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Kolhapur City Development Plan
Name of the Stake Holders: Mr. Vijay Kadam, Kolhapuri Chappal Businessman
Date of Discussion 20/09/2006
The discussion mainly revolved around the Kolhapur Chappal industry and the problems that it faces today.
The industry produces around 500 chappals every day. The major countries to which it is exported is France,
China, Japan and Australia. Mr. Kadam mentioned that this was a very fast business and there was no death
to this business. Getting the needed raw material i.e. hide in India is not a problem as India is a agro-based
country. Also, there exist several leather tanneries so processing it is also not a problem. However, being a
family business and the recent generations not interested in it, there is a threat to the continuity of this
business. The Kolhapur chappal industry has always been a cottage industry wherein the family works
together. Men work on getting the chapel ready and the women do the finer design. This occupation is passed
down form generation to generation. However, today, the young generation does not want get into this
profession; this has created a shortage of artisans.
A problem faced by the Kolhapuri chappal businessmen is the payment of almost double octroi thus resulting
in increase in costs. When the raw material comes to Kolhapur, the businessman has to pay an octroi duty.
Then this raw material is sent to the village artisans. Again, when the artisans produce the finished goods and
send it back to Kolhapur, the businessman again has to pay octroi.
The Leather Industries Development Corporation of Maharashtra (LIDCOM) gives cash subsidies to the
artisans. However, this has become a failure as once the artisans get the cash they become very relaxed and
this affects their work. This also leads to social evils such as drinks, beating, etc.
Name of the Stake Holders: Mr. Milind Pathak, Resident Deputy Collector
Date of Discussion 21/09/2006
Basic Infrastructure: Parking is a major problem faced in Kolhapur. Also, traffic management is poor. There
is a need to have a proper traffic control. More traffic signals need to be set up.
Also, the city faces floods every year. There needs to be a disaster management system in place. Also, the
exiting nallahs- Jayanthi and Dudhalli need to be cleaned as they overflow especially during the rainy season.
Economy: For sustainable economic development, the development of the IT sector is necessary. This will
help in providing employment opportunities and stop migration of the citizens. In order to promote the IT
sector, KMC will have to take certain policy initiatives. The cooperative sugar factories in Kolhapur are
becoming sick mainly due to mismanagement. There needs to be a fair and transparent process of bidding.
Also, every year a large amoint of the sugarcane cop gets spoilt because of the floods and the land remaining
under water. There needs to be research done as to how the sugarcane life can increase even when in water.
Also, citizens’ participation in Kolhapur is very low, this needs to be increased. There is a need to privatisation
of services. This will improve the quality of the service. There is a need to bring professionalism in the
functioning of KMC. The number of meetings which are held can be reduced. IT can be utilised for more
efficient techniques, for example, video conferenceing.
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Kolhapur City Development Plan
20 ANNEXURE H: PROJECTS PROPOSED UNDER UIDSSMT
SCHEME
Roads (IRDP) Sewera Water Supply Terminus Terminus ge Component Total Cost (Rs.
Crores)
Truck Source Augmentation 72.85
Treatment Capacity Augmentation
Bus Transmission mains / Pumping machinery 173.22
Ground level storage capacity augmentation
Elevated level storage capacity augmentation 114.00
Distribution network augmentation 102.00
Sewage Treatment Plant
Pumping stations, Rising Mains 8.45
Internal Sewer Lines
Cleaning equipment and other works 15.78
Construction and upgradation of roads
Construction of toll nakas
Construction of Underpass
Construction of ROB
Utility Shifting
Development of outer ring road
Development of truck terminus
Additional infrastructure such as workshops, lighting, offices, etc.
Additional facilities such as hotel, offices, gym, conference hall,etc.
Heritage Preservation, development and beautification of Mahalaxmi temple 1.04
Development
Development of 4 parking areasParking 5.01
492.35
Total
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Kolhapur City Development Plan
21 ANNEXURE I: BUS TERMINUS DETAILS
A) S T Stand Area: It is located at the junction of major roads approaching the S.T. stand area. The area
experiences heavy traffic, contributed to by buses, cars, and two-wheelers. Many lodges and hotels
surround this site. But visitors and tourists have no place to park their cars. The site is surrounded by a
vast commercial area, which attracts people on business and commercial grounds. There are many
shops and big commercial complexes, and walls surrounding this area. With the increasing number of
visitors and corresponding increase in parking requirements, the available parking space is turning out to
be insufficient. There is an acute need for multi-layered parking facilities.
B) Station Road Area: This parking area is located at the core of the commercial zone, near the railway
station. It is an area that witnesses heavy traffic congestion. People arriving here for commercial
purposes have difficulty in parking their vehicles as the parking place is insufficient. Today, the parking
space can house 15 cars only. Hence, there is a strong need for mechanized multi-layer parking. The
proposal made for mechanized multi-player parking enables the facility of parking 34 cars in the same
available space.
C) Shivaji Chowk Area : It is situated at the junction of the two major roads, the Bhausinghji road
and the Shivaji road. Shivaji Market is a place of commercial importance and so are the areas
surrounding this building. The traffic flow is growing heavier day by day. The sub-roads meeting this
place are of the gaothan type, (existing 4.5 m) with no scope for widening or changing the existing
road patterns. Hence, to meet the parking requirements of visitors on this route and to create a
convenient parking place, it is necessary to provide a multi-layered parking facility. The proposal
facilitates the accommodation of 44 cars at this site.
D) Mahalaxmi Temple Area: It is located at the very core of the Gaothan zone of the city, near the
famous pilgrim centre of Maharashtra, i.e., Mahalaxmi temple. The major traffic entering this area
terminates near the temple. Approx. 300 four-wheelers approach this area to access the temple. This is a
prime area and hence there is a need to smoothen the traffic flow in this area. The available car parking
facility is proving to be insufficient, compared to the increasing visitors in this area.
E) Kapilteertha Market Area: The proposed parking site is located adjacent to the Kapilteertha Market.
The site is currently used to park four- wheelers only. There is no proper parking space for the people
who approach the Kapilteertha Market and the Mahalaxmi Temple. Visitors to this area find it
difficult to locate their vehicles for parking as the roads around are clogged with street vendors.
The major shopping lanes are located around this place. The available parking space can accommodate
25 cars presently.
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Kolhapur City Development Plan
22 ANNEXURE J: POSSIBLE OPTIONS FOR PPP
Building O&M as a part of the construction contract: This would be a typical Design Built and Operate
(DBO) contractual arrangement, and would involve;
Developing the contractual structure & contract documents for the project
Designing developer selection process and evaluation criteria
The DBO method of project delivery offers a practical solution, when, a) public funding is possible, b)
project risks make it unsuitable for implementation under a traditional private investment framework (BOT
or a Concession type) and c) all possible efficiencies of PPP can be brought in the form of EPC and O&M
contracts. KMC needs to look at the warranty period, in which the operator would train and handhold the
staff.
The main issues for concern that will need to be addressed by KMC in DBO projects, is the high cost of
bidding and the extent of design work required, as these may prove to be deterrents to wider participation
and, thus, may serve to offset the benefits of the DBO approach.
Providing incentives for billing efficiency etc. on a sharing basis: KMC should implement automated
meter reading systems (handheld devices) with computerisation for all water billing. The installation of
flow meter for each ESR to match the quantity of water supplied and billed would prove them with the
amount of losses during this activity.
For 100% cost recovery, KMC should convert all the non-metered connections/PSPs to metered
connections. It should also create kiosks for collection (for all payments to the corporation including water
charges).
KMC needs to implement a mechanism for having staggered water charges. This would essentially mean
paying minimum tariff up to a certain quantity. The tariff would be increased exponentially for the quantity
used beyond this. This would ensure and justify the price that one pays. This will also serve as a key for
controlling the usage of water.
Outsourcing pumping, transmission and distribution activities: KMC plans to undertake projects of
around Rs. 72 crores, which mainly includes augmentation and improving the water supply network The
bigger challenge for KMC is to maintain these assets once created. KMC therefore needs to explore the
outsourcing some of these activities, such as, pumping, transmission, distribution etc, either to one
operator or multiple operators.
Towards achieving 24x7 water supply: KMC needs to carry out and implement a water and energy
audit including a leak detection study. It will ensure reduction in raw water transportation losses and
better water management. KMC also needs to take a step towards augmentation of water source and
encouraging water reuse.
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Kolhapur City Development Plan
23 ANNEXURE K: E GOVERNANCE AND ERP
Introduction
Last decade has witnessed special focus on good governance. This is particularly evident among cities
and towns, which are experiencing a rapid pace of urbanization along with increasing mismatch between
demand and supply of municipal services. The increasing complexity of facing local government has
prompted many Urban Local Bodies in India to discover creative and innovative solutions with varying
degrees of success. The most important development in this area has been the increasing use of
information technology for municipal governance. Traditionally municipal governance has been based on
manual platform, being paper and labour intensive. However, with the increasing demand on the
municipal administration, the current way of functioning is turning out to be grossly inadequate.
Information technology increases the efficiency and the spread of the existing processes, thereby
enhancing the capacity of the administration manifold.
Current system
The traditional system has the following features
1. Information in manual records
a. Retrieval and analysis is very difficult
b. Systematic data base not available
c. Generation of useful management reports are time consuming and difficult
d. Controlling the leakage of information is difficult
2. Longer service fulfilment duration and delays in approvals
a. Complicated steps
b. Large number of levels
c. Frequent loss of files
3. Cumbersome process in tax calculations and reconciliation
a. Manual calculation and reconciliation
b. Validation and review is very difficult
4. Inefficient mechanism to track citizen grievances
a. No higher level tracking of grievances
b. Redressal at the discretion of operating level officials
5. Lack of transparency in service fulfillment
a. Real time information not available
b. Fixing accountability is not possible
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Kolhapur City Development Plan
Objectives of E-Governance System
Based on the limitations of the traditional and existing processes, the users of the system will desire the
following incremental benefits from the e-governance system.
1. Improving the quality of service to the citizens
a. Facilitation of citizens with easy and quick access to department information and services
b. Infusion of transparency in providing the services to citizens
2. Efficiency in administration
a. Facilitation of quicker processing of the citizen service requests
b. Facilitation of easy maintenance of citizen’s records
c. Making citizen tax and other critical records tamper proof
d. Efficient approval and processing of files
e. Simplified processes of assessment
3. Information management
a. Real time capture of information
b. Facilitation of analysis and review
c. Real time exception reporting
d. Preventing loss and leakage of information
4. Management Information System
a. Generation of customised reports
b. Clear accountability
Scope of an E-Governance System
An organisation wide municipal e-governance system has the following components
A. Administrative system
This part of system facilitates the normal administrative processes of the municipal corporation. The
objective of this component is to reduce the time required and steps involved for the normal operating
decisions of departments of the corporation, while capturing the data related to tax collection, service
delivery and citizen records in real time.
B. Management Information System
This part of the system facilitates the decisions taken at higher levels of the departments by supplying
the decision maker with relevant information at the relevant time. This component allows the user to
define the information required to facilitate the decision.
C. Citizen Interface
This part of the system creates linkages between the corporation and the citizens to provide them
with the information that affects them.
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Kolhapur City Development Plan
Municipal E-governance system
Administrative System Management Information Citizen Interface
System Complaints
Notices
Property tax Approvals and Municipal Services Decision support
licenses
Assessment Issuance Water Supply Exception reporting
Collection Records Sewage Controlling Disclosures
Records SWM
The components are schematically shown below:
Implementing E-Governance System
The E Governance system implementation process, involves the following entities: -
1. Municipal Administration
The system is defined based on the mapping of the municipal administration processes and
decision flows. The commitment of the municipal administration is the most important pre-
requisite for the e governance system.
2. System consultants
Since the municipal body would not have the knowledge base to map the processes against the
system requirements, therefore a consultant is appointed for process mapping and subsequent
system design.
3. Employees
The process mapping is done based on the inputs given by the employees to the system
consultant. Moreover the system has to be designed as per the capacity and the need of the
actual users of the system, the employees.
4. Citizens
The purpose of the e-governance system is to improve the activities of the municipal corporation
with a view of increasing the quality of the service delivered to the citizens of the corporation.
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Kolhapur City Development Plan
The implementation of the e governance system follows the basic structure as indicated below:
Process flow Purpose Direction Simplify
Input, output Functions, activities Upwards/ downwards/ Remove redundancy,
one to many/ many to one redefine process flow
Process Map
Information flow Process
Reengineering
People involved Profile Efficiency
Roles, responsibilities, hierarchy, powers Contents, format Speed, cost reduction
Training Pilot run Database
Users, managers Integrity check, redundancy check Database design, structure,
fields, codes
Post roll out review Roll out Feedback System
Course corrections, Requirement
maintenance infrastructure
Network, hardware, website
Awareness User review
Citizen awareness campaign User satisfaction, comments
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Kolhapur City Development Plan
24 ANNEXURE L: ENTERPRISE RESOURCE PLANNING
(ERP)
It is defined as an information system that integrates all related applications for an entire enterprise. It attempts to
integrate all departments and functions across an organisation onto a single computer system that can serve all those
different departments' particular needs. Each of these departments and functions usually has its own system
optimized for the unique ways that the department works. But ERP combines them all together into a single,
integrated software program that runs off a single database so that the various departments can more easily share
information and communicate with each other.
A Municipal corporation has several functional and administrative departments. The common thread between all of
the functions is the citizen, whom the corporation is mandated to serve. Most of the functional departments like water
supply, sanitation, town planning, birth and death registration, licenses and permits etc have a interface with the
citizens and they capture the citizen data relevant to their functioning.
Typically the data captured by the departments are not cohesive and integrated with each other leading to data
redundancy. In such a scenario ERP system can be a useful efficiency enhancement tool.
E governance as it is understood presently focuses on two aspects-
• Information dissemination to citizens
• Information for supporting the decisions of administrators
Moreover E-Governance has a micro level systems approach, for example a property tax system whereby the GIS
inputs are used to assess the property tax and receipts are accounted in real time. However the present E
governance approach will not link the property tax information to water consumption data to number of members in
the household to occupation of the members (for example to find out whether the family is using unreasonably high
amount of household water, which linked to the fact that most of the members of the family are employed in the family
restaurant, may mean that they are using the household water supply for commercial use)
ERP will go beyond the mandate of an e governance system and link all the functions of the corporation, whether
functional or administrative, whether citizen interfaced or not.
TYPICAL ERP MODULES
1. Financial Accounting: It is the computerized 'book of records'. It is designed for managing general ledgers,
accounts payable, fixed assets and external reporting. It is the integration point that most system
components relate in one way or another.
2. Controlling: It manages the flow of costs and revenues. It facilitates an organization's internal planning,
management and decision making process. It is tightly integrated with other system components. It collects
transactions from the other modules, using related data for internal accounting, reporting and management
of funds.
3. Asset Management
It tracks, values, depreciates and also records purchases and sales of a company's assets.
4. Project Systems
It is used for grants, contracts and plant fund functioning. Project Systems module helps with the planning,
managing, controlling and figuring the costs of research and development.
5. Plant Maintenance: It maintains the company's equipment, labour, material and work time.
6. Human Resources: This is an integrated system that supports planning and administration of personnel
activities; everything from hiring to separation or retirement. Employee records, payroll, benefits and time
recording are all handled in Human Resources module.
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Kolhapur City Development Plan
7. Materials Management: It supports the procurement function occurring in day-to-day business operations. It
underpins the supply chain, processing purchase orders and goods receipts.
8. Quality Management: It aims to improve the quality of the company's goods. Planning, execution,
inspections and certificates are examples of activities processed in QM.
9. Production Planning: It manages your company's production process, including capacity planning, master
production planning, material requirements planning and the study of shop floor.
10. Sales Distribution: It deals with the whole process from production to delivery, including sale orders, pricing,
picking and other warehouse processes such as packing and shipping.
11. Cross Applications: It lies on top of the individual modules and manages the workflow, business information
warehouse, office and workplace, industry solutions and new dimension products.
Based on the above, the possible modules in ERP system for a municipal corporation can be
1. Financial accounting
2. Controlling and budgeting
3. Property tax: Assessment, demand, collections follow up and accounting for these processes
4. Water supply and sanitation: For water supply source management, transmission and distribution
management systems, for sanitation collection, transmission, treatment and disposal
5. Establishment and Human Resources: General administration and human resource functions
6. Health and social activities: Managing dispensaries, programmes and schemes
7. Town planning: Development activities, permits, infrastructure development
8. Licences and Permits: Managing the issue, enforcement and termination of various licenses and permits
9. Property (asset management): Managing the maintenance and receipts from the municipal property
10. Project Management: Managing the projects of the municipal corporation
IMPLEMENTATION OF ERP IN AN ORGANISATION
Because of their wide scope of application within a business, ERP software systems are typically complex and
usually impose significant changes on staff work practices. Implementing ERP software is typically not an "in-house"
skill, so even smaller projects are more cost effective if specialist ERP implementation consultants are employed. The
length of time to implement an ERP system depends on the size of the business, the scope of the change and
willingness of the customer to take ownership for the project. A small project (e.g., a company of less than 100 staff)
may be planned and delivered within 3 months; however, a large, multi-site or multi-country implementation may take
years.
The most important aspect of the implementation of ERP in an organisation is that all the levels of the
organisation take ownership of the project.
To implement ERP, organisation often hires the services of an ERP vendor or of third party consultants. These
entities typically provide services for consulting, customisation and support
1. Consulting: Consulting for a large ERP project involves three levels: systems architecture, business process
consulting (primarily re-engineering) and technical consulting (primarily programming and tool configuration
activity). A systems architect designs the overall dataflow for the enterprise including the future dataflow plan. A
business consultant studies an organization's current business processes and matches them to the
corresponding processes in the ERP system, thus 'configuring' the ERP system to the organization's needs.
Technical consulting often involves programming. Most ERP vendors allow modification of their software to suit
the business needs of their customer.
For most mid-sized organisations, the cost of the implementation will range from around the list price of the ERP user
licenses to up to twice this amount (depending on the level of customization required). Large organisations, and
especially those with multiple sites or countries, will often spend considerably more on the implementation than
the cost of the user licenses -- three to five times more is not uncommon for a multi-site implementation.
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Kolhapur City Development Plan
2. Customisation: Customization is the process of extending or changing how the system works by writing new
user interfaces and underlying application code. Such customisations typically reflect local work practices that
are not currently in the core routines of the ERP system software.
Customizing an ERP package can be very expensive and complicated, because many ERP packages are not
designed to support customization, so most businesses implement the best practices embedded in the acquired
ERP system. Some ERP packages are very generic in their reports and inquiries, such that customization is
expected in every implementation. It is important to recognize that for these packages it often makes sense to
buy third party plug-ins that interface well with your ERP software rather than reinventing the wheel.
3. Support: Once the system has been implemented, the consulting company will typically enter into a Support
Agreement to assist the staff to keep the ERP software running in an optimal way.
IMPLEMENTATION OF ERP IN KOLHAPUR MUNICIPAL CORPORATION
Challenges
1. The popular ERP packages are designed for commercial organisations
2. The ERP packages that are available in the market have limited customisation options
3. The ERP packages that are available in the market are very expensive
4. Re-engineering of business processes as required by the implementation of the ERP package might not be
possible
5. The ERP system is susceptible to the weakest link; the system is dependent on the individual department’s
efficiency in using the system.
6. Resistance in sharing sensitive information between departments can be a problem in system operation
7. The system will be dependent on the quality of data that is being inputted in the system
Imperatives :
A. For Kolhapur Municipal Corporation to implement a ERP system it should have certain minimum level of
preparedness already in place. These might include: -
1. Official documentation of standard accepted practices and procedures for every department in the
corporation.
2. Documentation of all information flows that take place in all the departments of the corporation.
3. Key performance measures for every strategic unit within the corporation.
4. A project team including representatives from all the departments
B. Comprehensive cost benefit analysis of replacing the existing system with an integrated database and linked MIS
or with a full fledged ERP system
C. The corporation would need to carry out a technical and financial feasibility of alternative modes of getting ERP
implemented
1. Buying a standard ERP package and customize it to the requirements of the corporation
2. Partnering with a software developer company and evolve a ERP of its own
3. Buying standard software components from vendors and integrating them in house
D. The corporation would essentially need to have transition plans for the following
1. Employees- training, grievance redressal, change management
2. Citizen interface
3. Parallel runs of the legacy system and the new system
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Kolhapur City Development Plan
CRISIL Infrastructure Advisory has taken due care and caution in compilation of data for this
Report. The analysis of various factors presented in this Report is based, either on publicly
available information/information available from the Kolhapur Municipal Corporation (KMC) or
CRISIL Infrastructure Advisory’s discussions with the different institutions/stakeholders and
KMC’s consultants in this regard. For completion of the report, CRISIL Infrastructure Advisory
has also obtained information from sources, which it considers reliable.
CRISIL does not guarantee the accuracy, adequacy or completeness of any information
contained in this Report and is not responsible for any errors or omissions, or for the results
obtained from the use of such information. This Report should be used in its entirety only and
shall not be reproduced in any form without prior permission from KMC or CRISIL
Infrastructure Advisory.
Neither CRISIL Infrastructure Advisory nor any director, representative or employee of CRISIL
accepts any liability for any direct, consequential or perceived loss arising from the use of this
Report or its contents. CRISIL specifically states that it has no financial liability whatsoever to
KMC or any other user/s of this Report and further states that CRISIL shall not be liable to legal
consequences arising contingent to the use of this report or part thereof.
Kolhapur Municipal Corporation -120-
Technical assistance by: For further information please contact:
CRISIL Infrastructure Advisory Kunal Kunar, IAS
CRISIL Risk and Infrastructure Solutions Limited Commissioner
961-962, Solitaire Corporate Park Kolhapur Municipal Corporation
Andheri-Ghatkopar Link Road Main Building , Shivaji Chowk, C-Ward,
Andheri (East) Kolhapur - 416 002
Mumbai 400 092 Post Box No. 33
+91 22 6644 1801 – 09 Phone (EPABX) - 2540291 to 99,
Fax: +91 22 6644 1810 Fax - 0231-2541830
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