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Governance Screening for Urban

Climate Change Resilience-building and
Adaptation Strategies in Asia:





Assessment of Surat City, India







August 2007




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CONTENTS

Background to the study .................................................................................................................... 3
Analytical Framework ....................................................................................................................... 3
1. BACKGROUND TO SURAT CITY .............................................................................................. 5
Table 1. Public health risks .............................................................................................................. 6
2. DECENTRALISATION AND AUTONOMY ............................................................................... 6
Financial autonomy .......................................................................................................................... 6
3. ACCOUNTABILITY AND TRANSPARENCY ........................................................................... 7
Table 2: SMC Reforms ..................................................................................................................... 7
4. RESPONSIVENESS AND FLEXIBILITY .................................................................................... 8
5. PARTICIPATION AND INCLUSION .......................................................................................... 8
6. EXPERIENCE AND SUPPORT .................................................................................................... 9
Case 1. Transformation since the 1994 plague ................................................................................ 9
Annex 1. Gujarat State Disaster Management Policy ................................................................... 10

















This report was prepared by the IDS Climate Change and Disasters Group with input
from R. Parthasarathy, Gujarat Institute of Development Research


For more information on this project please write to:
IDS Climate Change and Disasters Group
Institute of Development Studies
at The University of Sussex
Falmer BN1 9RE
Tel +44 (0) 1273 678768
Email climatechange@ids.ac.uk



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Governance and Capacity Assessments for Urban Climate Change
Resilience-building and Adaptation strategies in Asia

Background to the study
The resilience required to cope with a rapidly changing climate is comprehensive and requires robust
systems and capacity, which do not currently exist in many parts of the developing world. Cities may
have greater climate resilience because of the existence of infrastructure, but poor urban populations
often do not benefit from these infrastructures or are more vulnerable because of their dependence on
substandard infrastructure.

Focusing urban adaptation-related work in Asia has large potential impact, given that more than 60 per
cent of the increase in the world's urban population in the next 30 years will occur in Asia, a region
that already has a greater urban population than any other continent.

The Rockefeller Foundation would like to foster new partnerships to promote work on urban climate
change adaptation in Asia, as part of a broader initiative to promote climate change resilience. The
Foundation provided a grant to the Institute of Development Studies (IDS) to complete a rapid
governance and capacity assessment of ten South and Southeast Asian cities, to address their ability
and willingness to plan and implement an integrated climate change resilience programme. The cities
were chosen based on an analysis of the potential impacts of climate change and their degree of
exposure.

The individual city studies, one of which is presented here, look in detail at how existing governance
structures at municipal level might influence the potential implementation of climate change resilience
programmes (e.g. urban disaster mitigation programmes with climate change consideration, improved
building codes, land use zonation, modifications to the water and sewerage network, ecological and
environmental protection programmes).

The research outputs from the individual city studies have provided the building blocks for a
comparative analysis of the ten cities to inform the selection of a smaller set of cities where an
integrated climate change resilience program could be implemented.

Analytical Framework
The analytical framework applied to the city level research drew on previous good urban governance
work from the IDS. The categories are also based on understanding gained from the initial phase of the
governance screening:

1. Decentralisation and autonomy
This encapsulates the ability and capacity of municipal governments to make decisions and implement
across a range of responsibilities and services. These include in particular finance, urban planning and
disaster management. Autonomy focuses in particular on the relationship with other levels of
government and other interest groups, as well as financial independence and managerial capacity of
municipal authorities.

2. Accountability and transparency
Delivery of climate-resilient urban development relies on a municipal system that maintains a
relationship of accountability to its citizens, and is open in terms of financial management, information
on the use of funds and adherence to legal and administrative policies.




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3. Responsiveness and flexibility
Resilience in the face of uncertain climate shocks and stresses relies upon a governance system that
can respond rapidly to a range of different scenarios and communicated needs. This category can draw
in particular on studies of the components of flexible and adaptive decision-making.

4. Participation and inclusion
Participation and inclusion refers to the governance arrangements that enhance or preclude the
participation of all citizens in decision-making, monitoring and evaluation. This refers in particular to
the groups of citizens most vulnerable to prevailing climate shocks and stresses (including those in
informal settlements).

5. Experience and support
A resilient urban system will build on existing experience in planning and successful implementation
of climate-related risks targeting vulnerable groups. Such experience will depend on technical and
implementation support to enable the successful implementation of adaptation strategies, including in
the NGO/civil society sector, as well as technical and academic institutions


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1. BACKGROUND TO SURAT CITY

Surat City is located in Gujurat State, situated on the west coast of India, bounded by the Arabian Sea
to the west and by the States of Rajasthan, Madhya Pradesh and Maharashtra. Surat is situated on the
banks of the river Tapi and has a six kilometre long coastal belt. The Tapi River dictates the topology
of the city as the landscape slopes from Northeast to Southwest. The average altitude of the city is just
13 metres above sea level. Summer temperatures in Surat range from 37 to 44 degrees Celsius with
winter temperatures dropping to ten degrees Celsius. Average annual rainfall is approximately 1143
mm.

There are three main Governing bodies within Surat, namely, Surat Municipal Corporation (SMC),
Surat Urban Development Authority (SUDA) and Hazira Development Authority (HADA) governing
the industrial hub of Hazira. Approximately 334 square kilometres of the city comes under the
jurisdiction of SMC with an estimated population of four million. SUDA covers the SMC and an
additional 722 square kilometre area of 148 villages.

The city dates back to 300 BC. The origins of the city can be traced to the old Hindu town of Suryapur
during the period 1500 to 1520 AD. In 1759 the British rulers took control from the Mughals until the
beginning of the 20
th
Century. The city emerged as an important trade centre in the 16th, 17
th
and 18
th

centuries providing a link between India and the world. Surat also became a flourishing centre for
shipbuilding. The rise of the port at Bombay led to the decline of Surats shipbuilding industry, which
has since been replaced by the expansion of other industries such as textiles. The diamond cutting and
polishing industry has also boomed since the 1950s. Besides its industrial potential the city also has
fertile agricultural land irrigated by a dense canal network.

Traditionally the old city has two parts, the core and the periphery, segregating the relatively well off
from the scheduled castes and poor Muslim citizens. Some of these characteristics have changed but
particular social groups still dominate certain areas.

Surat has seen unprecedented growth rates in the last four decades, recording one of the highest
growth rates in the country and a witnessing a ten-fold population rise. The city is now the ninth
largest in India. Population projections suggest numbers of migrants moving to Surat will continue to
rise but eventually stabilise. Surats industrial base is highly labour intensive which has helped to keep
unemployment down.

The city was devastated by a plague in 1994 but the efforts of the City Corporation to increase and
improve health facilities have now paid off. Birth and death rates have come down and infant
mortality has dropped from 36.32 per 1000 live births in 1985 to 19.79 per 1000 in 2003. The
prevalence of diseases has also dropped. The massive cleanup operation after the outbreak, including
reforming the entire city administration meant that within two years Surat was transformed from one
of the most dirty cities to the second cleanest in the country. Surat is currently aiming to become the
cleanest city in India.

The state of Gujarat is prone to disasters and the government recognises the need to be proactive and
have a comprehensive and sustained approach to disaster management. The areas most in need of
attention in order to build climate resilience are: the Mahi River and its estuary, coastal areas, flood
plains, solid waste management, the Hazira industrial area.

Public health risks
Water pollution is the city can be attributed to encroachments along major natural drains resulting in
the obstruction of the natural flow of water through the city. The resulting flooding and stagnated
water renders areas susceptible to diseases. A lack of a comprehensive sewage system has meant that
large quantities of untreated wastewater were draining into the River Tapi. Industrial wastewater has

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also polluted the surface and ground water. Other problems related to water pollution and waste water
management are listed in Table 1.

Table 1. Public health risks
Water Supply

Storm Water Drainage

Sewerage

Solid Waste
Management
System losses
Water wastage at
consumer level
Pollution of river
water
- River Tapi
moderately
polluted when
passing through
city
- River Tapi -
dangerously
polluted after
leaving the City

Poor drainage and
therefore flood-prone,
particularly during
monsoon months.
Risk of mixing sewer
and storm water drains
Delays in
implementing the
Flood Protection
Scheme
Siltation of khadis and
open storm water
drains

Outdated systems
Mixing with storm
water and solid waste
in several areas
Low number of sewer
connections
Very low nil per-capita
cost recovery
Lack of comprehensive
wastewater system in
industrial area

Lack of technology for
scientific disposal of
solid as well as bio-
medical waste


2. DECENTRALISATION AND AUTONOMY

The Surat Municipal Corporation (SMC), the Surat Urban Development Authority (SUDA) and the
Hazira Development Authority (HADA) governing the Industrial hub of Hazira are the three key
institutions of governance at the municipal level in Surat.

The functioning of the SMC is governed by the Gujarat Municipalities Act of 1963 and the Bombay
Provincial Municipal Corporations Act 1946. The 74
th
constitutional amendment act legislated greater
devolution of authority and functions to city corporations. The Corporations consist of an Executive
and an Administrative Wing. The executive wing comprises of a general body of elected councillors
headed by a Mayor, the Standing Committees and other statutory committees which look after the
specialized functions of the SMC. The Standing Committee is the most powerful, with power to
authorise works costing over Rs. 500,000. The head of the Administrative Wing is responsible for the
strategic and operational planning and management of the corporation.

SUDA is responsible for preparing the SUDA Area Development Plan which includes the area
governed by the SMC. Under the development plan the SMC is responsible for Town Planning
schemes within the area under its jurisdiction. SUDA also has the responsibility to control
unauthorised developments. The SMC also relies on outsourcing a considerable amount of
infrastructure development. The Gujarat State Disaster Management Authority is a permanent body
charged with dealing with natural disasters.

After the plague of 1994 the structure of the SMC was amended from a rigid vertical hierarchy to a
more interactive horizontal structure. This has increased the extent of decentralisation of municipal
governance. Each of the seven zones across the city is vested with the authority to address local issues.

Financial autonomy
The State has the power to determine the extent of the municipal governments tax-raising powers. In
general terms city corporations have powers to generate both tax and non tax revenues from their own

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sources. They also received grants, a share of taxes and loans from external sources. In recent years
the SMC has performed well in financial terms which revenue and total income showing a sharp
increase. Expenditure has also increased revealing a reasonable operating ratio. Between 2002-2008
the SMCs funding came from Gujurat State grants (6.87 per cent), the Corporations own
contributions (13.65 per cent) and loans (79.47 per cent). The devolution of functions and grants to
local bodies has led to increased expectations on the part of residents, yet local governments still lack
institutional capacity for performing their allotted functions.


3. ACCOUNTABILITY AND TRANSPARENCY

Financial reporting is an important accountability tool enabling policy makers to assess the efficiency
of the SMCs operations. In recent years the SMC has also been called upon to make their financial
activities transparent to a number of other interested groups. The SMC has subsequently introduced a
number of new accounting systems to ensure transparency.

The SMC is monitored at every level (corporation, zone, ward and field level). The Standing
Committee holds weekly meetings to resolve reported problems and at the Ward Level a complaints
mechanism exists providing constituents a channel for reporting complaints in person or by phone.
Complaints are logged on a register and should be responded to within one week. All officials, no
matter what department, hold a degree of collective responsibility for the SMCs operations in
addition to their specific duties.

Table 2 lists the financial and administrative reforms that have taken place in order to improve
transparency within the SMC to create an investor friendly environment.

Table 2: SMC Reforms
Financial and Taxation Reforms Administrative and
Technological Reforms
Energy Reforms
Accrual Based Double Entry
Book Keeping Accounting
System
Outsourcing of Services &
PPP
Total Computerization Of
Accounts With Balance Sheet
Approaching Debt Free
Financial Administration
User Charges
Efficient Tax Collection
Life time vehicle tax
Vision 2020 Plan and City
Corporate Plan
Micro and Macro Action
plans
Standardization, ISO
certification, SCADA and
induction of modern gadgets
DCR Revision
Transparency in
administration
Training to employees
e-Governance & GIS
Biometrics attendance system
Energy Audit (Internal)
Channel based Water Supply
Grid, Demand
Rationalization, Energy Bill
Monitoring
Energy Audit (External)
Use of electronic ballast &
hilumen fluorescent lamps.
Alternate street lighting
during low traffic period
Energy generation from
Biogas produced at Anjana
STP
LED based retrofits for traffic
signaling system


Recent internal reforms in SUDA include monitoring systems, complaint mechanisms, participatory
mechanisms, improved IT facilities, and e-governance systems




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4. RESPONSIVENESS AND FLEXIBILITY

Surat is witnessing rapid in-migration and a growing slum population. There are a total of 312 slums
in which 19.24 per cent of the population of the city is living. Slums have encroached upon 64 per cent
of the public land. Slums are generally concentrated along roads, rail tracks, factory walls and canal
banks. Prior to 1994 Surat was extremely densely populated and therefore congested and unhygienic.
In response to the 1994 plague the SMC has successfully implemented various slum relocation and
development programmes slowing the growth of slum populations from an annual average of 14.6 per
cent to 1.46 per cent between 1992 and 2001. Slum upgrading programmes are also planned by the
SMC to provide water supply and improved housing.

City planners have worked to bring down the slum population and are now integrating projected
population increases into city planning. The informal sector is a major part of the Surat economy and
the SMC has taken steps to integrate the informal sector in planning, such as establishing hawking
zones and stalls for the disabled. This shows a good level responsiveness and flexibility and
incorporates targeting the most vulnerable.

The state of Gujarat is prone to disasters and the government recognises the need to be proactive and
have a comprehensive and sustained approach to disaster management. The Gujarat State Disaster
Management Authority (GSDMA) provides guidelines to agencies involved in disaster management to
ensure they are able to respond effectively in the event of a disaster. The GSDMA Approach is
documented in Annex 1.

In response to storm water drainage and flooding problems the SMC constructed flood protection
gates in 1999 at a total cost of Rs.210 lakhs (GBP 260,500). Further work is required to de-silt the
river Tapi, khadis and open drains, to document flood points and areas where sewer and storm water
drains may mix, and to extend and rehabilitate the existing network. A number of other projects are in
the pipeline to address Surats sewage and storm water drainage problems identified in section 1.

5. PARTICIPATION AND INCLUSION

The present drive in Surat to become Indias cleanest city has instigated a move to take urban
management to the masses. Each locality has a voluntary representative who liaises with the SMC to
overcome local problems.

Surats City Development Strategy provides an example of an urban development plan based on
broad-based stakeholder consultations designed to incorporate the views of marginalised residents.
The process includes NGOs, government organisations (Police Department, Collectorate etc.)
commercial orgnanisations, MPs, municipal councillors (includes elected representatives of slum
areas), technocrats, social workers and social organisations representing the poor. 12,000 forms were
distributed as part of the strategy development process with a high level of response. Also considered
in the process was a report from the Centre for Social Studies on urban poor, which deals with slum
issues like infrastructure provision and quality of life.

Under Gujarat Town Planning law a copy of the draft development plan must be available for public
inspection and suggestions and objections must be incorporated into the final plan where appropriate.






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6. EXPERIENCE AND SUPPORT

Case 1: Transformation since the 1994 plague

The Gujurat State also has a comprehensive Gujurat State Disaster Management Policy formulated by
the GSDMA, constituted since 2001. The content of this policy is detailed in Annex 1.


The outbreak of pneumonic plague in Surat during September 1994 created worldwide panic and
severely affected the city as well as the entire nations economy. About 60 per cent of the
population fled the city and industry suffered an estimated loss of Rs.12 billion (GBP 150 million).
Though the disease was controlled within a week, it raised many serious issues of public health and
capacity of the local government to manage the city. Subsequent to the plague of 1994 the city
authorities undertook one of the most massive clean up operations in recent times and also
revamped the entire administration of the city. Within two years Surat had been transformed from
the one of the filthiest cities to the second cleanest city in the country.

Historically, Surat city was known for its lack of cleanliness, with over 40 per cent of its population
living in slums most of which had no drainage system. The city has always been a fertile ground
for epidemics of water related and water borne diseases such as malaria, gastro enteritis, cholera,
dengue and hepatitis. While the plague shocked authorities into launching a clean up operation, it
was a one-off event. The disease hit the city in December 1994 but by January 1995 old habits
returned and the city was as filthy as ever.

From May 1995, however a turnaround was observed resulting from a series of initiatives by the
elected council and civic administration. The government undertook an administrative reform
exercise as well as a massive clean-up. The administrative set up for solid waste management was
modified and six zones were subdivided into 52 sanitary districts for more efficient waste
collection. Daily monitoring systems were introduced. Private contractors were engaged to collect
and transport waste to the disposal site as well as to sweep and clean all major streets. Slum
improvement operations were undertaken with the assistance of NGOs. At the macro level the
entire administrative and financial management system of the SMC was revamped. The drive
aimed to transform not only the city but also attitudes of citizens and officials.

Multi dimensional changes, including administrative reorganisation and improved distribution of
resources, public sector involvement, stricter monitoring and enforcement have led to dramatic
improvements. The percentage of waste collected daily by the SMC and contractors has increased
from 40 to 97 per cent. Many local governments have now introduced administrative charges and
reorganised their solid waste management system based on Surats experience.


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Annex 1: Gujarat State Disaster Management Policy
The Gujarat State Disaster Management Authority (GSDMA), constituted by the Government
of Gujurat in 2001 formulated the Gujurat State Disaster Management (GSDM) Policy.

The main agencies engaged in the GSDM policy are:
State Relief Commissioner, Government Departments, District Administration, Local Authorities
(including Municipal Corporations), NGOs, public sector agencies, private sector and community and
voluntary groups.

Pre-Disaster Phase: Prevention, Mitigation and Preparedness
Development of policies and guidelines, risk assessments, development of information repositories,
establish communication and technology networks, development of early warning mechanisms,
establishing flexible response procedures, building capabilities and expertise and capacity-building,
knowledge management, fund generation, identification of avenues for risk sharing and transfer.

Impact Phase: Emergency Relief Measures and Relief
Search & Rescue, subsistence, shelter health and sanitation, infrastructure and essential services,
security, communication, preliminary damage assessment, funds generation, finalising relief payouts
and packages, post relief assessment

Post-Disaster Phase: Reconstruction and Rehabilitation
Detailed damage assessment, assistance to restore houses and dwelling units, relocation (need based),
finalising reconstruction & rehabilitation plan, funds generation, funds disbursement and audit, project
management, communication, implementing initiatives for recovery of reconstruction costs.