THE CHANGING FACE OF URBAN BIHAR

1. General Background

1.1 The degree of urbanisation in India is amongst the lowest in the world. As per
the UN estimates for the year 2000, 47% of total population of the world live in
urban areas. The percentage of urban population in Asia is 36.7% while that of
Europe, South America and north America are 74.8%, 79.8% and 77.2%
respectively.

1.2 The Census of 2001 has demonstrated that urban centers in India are continuing
to grow at a pace faster than rural areas. Comparing with other states and union
territories, Bihar occupies a place second from the bottom with respect to the
level of urbanisation which is only 10.5% compared to the national average of
27.8%. The pace of urbanisation has also been slower in India as compared to
other countries in the world. As per the UN estimates, the degree of urbansation
in the world in 1950 was around 30 percent which increased to 47 percent in the
year 2000. In India, it has increased from 17.3 in 1951 to 27.8 is 2001. China,
which had lower levels of urbanisation in 1950 have now overtaken India with
percentage of urban population of 32.1 percent.

Table 1: Indicators on Urbanization

Slum
Per capita Sex Literacy
Urban population
Name of Level of Growth income ratio in rate in
poverty as % of
States Urbanisation Rate urban urban
(%) urban
(Rs. Crore) areas areas
population

All India 27.78 2.7 9660.3 23.62 900 14.12 70.1

Delhi 93.01 4.1 19091 9.42 821 15.8 70.74

Maharashtra 42.4 2.9 15805 26.81 874 25.95 75.19

Bihar 10.5 2.6 4397 32.91 869 5.85 64.53

2. An Overview of Urban Sector in Bihar

2.1 The growth of population and influx into urban areas has put urban infrastructure
and services under a severe stress. The increasing pressure on urban environment
 is taking its toll on the quality of life of the urban population. The urban
population growth is much higher than the rate of population growth. The urban
population grew to 84.59 lakh in 1991-2001 period as against the decadal growth
of 63.31 lakh reported in 1991 census. Bihar, the 3rd largest state in terms of total
population size, occupies the 11th position in terms of urban population. Following
is some statistics, which reveal the urban scenario in Bihar.

2.2 The level of urbanization in Bihar is clearly much lower (10.5%) than the national
average of about 28%. As against this, urban poverty is as high as 32.91% against
the national average of 23.62

3. The Changing face of Urban Bihar

3.1 Cities hold tremendous potential as engines of economic and social development,
creating jobs and generating wealth through economies of scale. They need to be
sustained and augmented through the high urban productivity for better economic
growth. For cities to become growth oriented and productive it is essential to
achieve a world class urban system. This in turn depends on attaining efficiency
and equity in the delivery and financing of urban infrastructure. However, the
approach to the process of urbanisation has been largely "reactive" in the sense
that problems have sought to the addressed in a knee-jerk manner. Urban
planning needs to be anticipating and based upon an integrated approach to
address the various dimensions of urban development. Infrastructure
inadequacies in urban areas are a major factor constraining Bihar’s growth. The
task before the new government was, therefore, first sensitisation of all
stakeholders to the enormity of the problem, secondly to garner the additional
resources to augment civic amenities, and lastly to ensure growth of the urban
areas in a systematic and sustainable manner. The strategy adopted was many
folded; and stress was given on Urban Reforms.

Effective implementation of decentralisation as envisaged in 74th CAA.

3.2 The real spirit of the 74 CAA was to make the urban local bodies into vibrant
self-governing institutions. However, the mere incorporation of the provisions of
the 12th schedule could not literally make a shift over. In order that the urban
local bodies can perform the function assigned to them, financial autonomy has
to be imparted. The State legislature shall assign specific taxes, duties, tolls and
levies and authorise the local bodies to impose, collect and appropriate the same.

Repeal of Urban Land (Ceiling and Regulation) Act.

3.3 The prevailing Urban Land Ceiling and Regulation Act was a stumbling block in
the large scale investment in the urban sector, especially in the housing and
 commercial enterprises sector. The state has taken a bold step to repeal the same,
paving the way for attracting large scale private investment in the sector.

Rationalisation of stamp duty

3.4 Corrective steps has been taken to down scale the stamp duty towards the
prescribed 5%. At present, it has been brought down from the exiting 18% to
10%.

Association of elected municipalities with the city planning functions.

3.5 Enactment of a community participation law, so as to institutionalise citizens

participation in local decision making.

Other Initiatives

3.6 Enactment of Bihar Apartment Ownership Act 2006: Under this, registration of
property has been made compulsory. Each and every case of apartment ownership
and transfer will be considered ' to be compulsorily registered', item as enlisted under
sec.16 of Registration Act (1908). The builders of the multi storied building can be
booked under the act for not complying with the provisions for which there are
stringent penal provisions. If the builder fails to register the property, the owner can
apply before the competent person for the same. The vice chairman of the Regional
Development Authority Act in the area of operation of the Regional Development
Authority Act 1981 and the District Magistrate in other areas has been declared as
the competent persons for this.

3.7 Amendment in multiplexes and cinema rules: With the intention to improve private
investment opportunity in the areas of multiplexes and entertainment sector,
amendments have been incorporated in the exiting rules. Under the exiting
provisions, proprietor was not authorised to change the sitting capacity of the hall nor
he could have increase the entry fee. By notification no. 3282 dt. 24-08-06, sub rule-
(1) of rule 27 of Bihar Cinema (enactment) Rules has been amended and now the
proprietor is free to change the entry fee, as well as to change the sitting capacity
under intimation to the authorities Building bye laws were amended to facilitated
construction of malls multiplexe. Such bye-laws did not exit earlier.

3.8 Amendment ha been made in the Bihar Regional Development Rule 1982; Listed
Registered Architects are now empowered to sanction the building plan up to 500 sq
meter area, thus facilitating an easy and hassle free administration.

3.9 E-governance- Introduction of a system of e-governance using IT application, GIS

and MIS for various urban services has been initiated.
 3.10 Levy of reasonable user charges! The CDP prepared for PUAA and Bodhgaya
clearly spells out the user charges in different services and thus makes a sustainable
outlook.

3.11 Revision of bye-laws: By the notification no. 308 dt. 7-04-06 provisions for
structural safety norms, rainwater harvesting and adoption of water conservation
measures and land scaping measures, access path /walk way, parking, corridor
connecting to the entrance/provision for disabled persons have been incorporated.

3.12 Computerised registration of land and property, and property title certification has
been introduced.

3.13 Encouraging public private partnership. Many ULBs have taken up street lighting,
solid waste management activities involving the private sector. The Patna Regional
Development Authority has recently finalised an agreement with IDFC for the
development of various infrastructure development including beautification schemes
in Patna on the PPP rule.

3.14 Modern and transparents- budgeting, accounting and financial management

system being designed to be adopted for all urban services and governance functions.
Many Local Bodies have already adopted the double entry System.

4. Development Activities under taken.

4.19 Under JNNURM, two towns Patna agglomeration and Bodh-Gaya have been taken
up. The City Development Plans for both has been submitted to Government of
India. The State Government has earmarked Rs. 500 crore in the annual budget of
2006-07 for JNNURM. Emphasis has been given in creating and augmenting basic
infrastructure facilities in water supply sewerage, storm water, drainage solid waste
management, roads and bridges, street lighting, tourism and heritage sectors. The
CDP for Patna suggests an investments proposal to the tune of roughly Rs. 3580
crore, for a period of 7 Years. The DPR for the road projects worth Rs. 129 crore,
and for the underground cabling for water pumps worth Rs. 40 crores are ready.
Moreover, the DPRs for Patna city other projects are under preparation by
consultants, which will be ready in a period of 4 months.

As per the guide lines the State level Steering Committees, headed by the Chief
Minister has been constituted. The meeting of the steering Committee has been held
in the month of September, 2006 and sanctioned some DPRs under JNNURM for
Patna agglomeration. The sanctioned DPRs as listed below have been submitted to the
Government of India:-

Sl. No. DPRs SLSC Sanctioned

Amount
 (Rs. in lacs.)

1 Road Development 12930-80

2 Under Ground Cabling to strengthen the 4020-42

Water supply

3 Sewerage Project 14150-00

4 Strom Water Drainage 73153-50

Total 104254-72

4.2 Under the 12th Finance Commission schemes worth Rs. 203 crore has been cleared
and Rs. 60 crore released for the year 2006-07:-

Sl. Item Estimated cost Sanctioned

No. Amount
(Rs. in lacs)
(Rs. in lacs)

1 Patna Municipal Water Supply &

Corporation Sanitation
5752-12 2072-28

127-72 127-72

2 Muzaffarpur Water Supply 2000-00 400-00

3 Dharbanga Water Supply 2112-67 400-00

4 Chapra Water Supply & 800-83 800-83

Sanitation
214-22 214-22

5 Munger Water Supply 1380-48 1280-48

6 Purnia Water Supply & 625-25 205-54

Sanitation
498-93 498-93

7 Bhagalpur Strom Drainage 6900-236 Under

process

4.3 In addition to this, in the financial year 2005-06 a total sum of Rs. 101.65 crore
schemes was sanctioned by the new Government. and funds were released to Patna
 Municipal Corporation, Bhagalpur Municipal Corporation, Muzaffarpur, Dharbanga,
Purnia, Siwan, Ara, Kathihar, Dehri Dalmianagar, Bihar Shari, Sasaram, Begusarai,
Serghati, Mhanar, Haweli Khadhakpur, Areraj, Shivhar, Jhajha, Khalgaiou,
Dalsingsarai, Lalganj, Rafiganj, Dehri & Islampur.

The following table indicates the many fold increase in the plan fund for the year 2006-07 as compare
to the annual plan of 2005-06.

(Rs. in lakhs)

Plan Plan outlay for

Sl.
No.
Sector
2005-2006 2006-2007

1 Water supply & sanitation

a. Water Supply (on going schemes) 3284.00 880.37

b Water Supply (new schemes) 7142.02 919.63

c Sanitation and Clearness Drainage/Sewerage/ Solid 64.30 00.00

west Management and other sanitation scheme (on
going & new) 7142.02 1200.00

d Grant to B. R. J. P. (establishment) 286.99 230.00

Total (1):- 17919.34 3230.00

2 Urban Development

a Centrally Sponsored Schemes (State Share) - -

i National Urban Renewal Mission 00 50000.00

ii Integrated Housing & slum Development 00 300.00

Programme

iii Urban Infrastructure scheme of small medium 391.52 1000.00

towns/UIDSSMT

iv Swarn Jayanti Sahari Rojgar Yojana 156.00 280.00

v Establishment of Urban Information System /NUIS 00 24.72

Total (2):- 547.52 54834.72

b Grant to Urban Local Bodies under Finance 00.00 6000.00

Commission

c Civic Amenities 571.00 389.28

d Grant to Urban Local Bodies for 0.00 500.00
construction/renovation of distractive & technical
buildings

e Master Plan, Project Reports preparation and 300.00 100.00

Capacity building

3. Urban Roads & Bridges 3000.01 2000.00

Grant Total 22337.86 63824.00

5. Other Important Steps Taken

5.1 The Most challenging task before the department was to find out a solution for the
perennial problem of the kankarbagh drainage. The Government has taken a bold
step and sanctioned a comprehensive project of Rs. 2280 lakhs and nominated the
NBCC to go ahead in a turnkey basis.

5.2 Appointment of Consultants for DPR preparation consultants have been appointed in
the five Municipal corporations along with Bihar and Ara for the preparation of
detailed project Reports. The consultant Ms/ Ramkey Infrastructure Consulting Pvt.
Ltd. has been given the task for Patna, Bhagalpur, Gaya, Bodhgaya and Muzaffarpur.
Ms/ Shah Technology Pvt. Ltd. has been given the task in Darbanga, Biharsharif and
Ara. The consultants are given an ultimatum to prepare the projects in a time span of
4-5 months.

5.3 For the first time in the history of Urban Development of Bihar, the ULBs were
given Rs. 1200 lakh for purchase of improved equipments to facilitate sanitation
operation.

5.4 The HUDCO has been nominated for the preparation of Master Plan of the
important towns of Chapra, Ara, Biharsharif, Rajgir, Gaya, Darbhanga, Muzaffarpur,
& Bhagalpur.

5.5 The Master Plan of Patna has been prepared and published for inviting objection.

5.6 The list of Unauthorised buildings without a sanction plan was prepared and severe
action, amounting to even evacuation and demolition of building was taken up in
certain extreme eases.

5.7 A workshop was organised on 'Healthy city concept' with the joint effort of the
Department of Health and world Health Organisation. The seminar was a success for
 awareness creation in the public, stressed the relevance of co-ordinate and committed
efforts from government and Non-governmental organsation to face the serious
challenges of public health, sanitation and environmental pollution.

5.8 The Department has bestowed with a professional touch by hiring the service of a
competent consultant Ms/ ICRA management consultant for a contract period of one
year. The terms and condition and MOA reached with the consultant can be
described as a model one in this direction.
 A brief note for two-days conference scheduled to be held on
17-18, November, 2006 at Hyderabad

The degree of urbanisation in India is amongst the lowest in the world. As per the UN
estimates for the year 2000, 47% of total population of the world live in urban areas. The
percentage of urban population in Asia is 36.7% while that of Europe, South America and
north America are 74.8%, 79.8% and 77.2% respectively.

The Census of 2001 has demonstrated that urban centers in India are continuing to
grow at a pace faster than rural areas. Comparing with other states and union territories, Bihar
occupies a place second from the bottom with respect to the level of urbanisation which is
only 10.5% compared to the national average of 27.8%. The pace of urbanisation has also
been slower in India as compared to other countries in the world. As per the UN estimates,
the degree of urbansation in the world in 1950 was around 30 percent which increased to 47
percent in the year 2000. In India, it has increased from 17.3 in 1951 to 27.8 is 2001. China,
which had lower levels of urbanisation in 1950 have now overtaken India with percentage of
urban population of 32.1 percent.

Table 2: Indicators on Urbanization

Slum
Sex Literacy
Per capita Urban population
Name of Level of Growth ratio in rate in
income poverty as % of
States Urbanisation Rate urban urban
(Rs. Crore) (%) urban
areas areas
population
All India 27.78 2.7 9660.3 23.62 900 14.12 70.1
Delhi 93.01 4.1 19091 9.42 821 15.8 70.74
Maharashtra 42.4 2.9 15805 26.81 874 25.95 75.19
Bihar 10.5 2.6 4397 32.91 869 5.85 64.53
2. An Overview of Urban Sector in Bihar

The growth of population and influx into urban areas has put urban
infrastructure and services under a severe stress. The increasing pressure on urban
environment is taking its toll on the quality of life of the urban population. The urban
population growth is much higher than the rate of population growth. The urban population
grew to 84.59 lakh in 1991-2001 period as against the decadal growth of 63.31 lakh reported
in 1991 census. Bihar, the 3rd largest state in terms of total population size, occupies the 11th
position in terms of urban population. Following is some statistics, which reveal the urban
scenario in Bihar.

The level of urbanization in Bihar is clearly much lower (10.5%) than the national
average of about 28%. As against this, urban poverty is as high as 32.91% against the
national average of 23.62
3. The Changing face of Urban Bihar

Cities hold tremendous potential as engines of economic and social development,

creating jobs and generating wealth through economies of scale. They need to be sustained
and augmented through the high urban productivity for better economic growth. For cities to
become growth oriented and productive it is essential to achieve a world class urban system.
This in turn depends on attaining efficiency and equity in the delivery and financing of urban
infrastructure. However, the approach to the process of urbanisation has been largely
"reactive" in the sense that problems have sought to the addressed in a knee-jerk manner.
Urban planning needs to be anticipating and based upon an integrated approach to address the
various dimensions of urban development. Infrastructure inadequacies in urban areas are a
major factor constraining Bihar’s growth. The task before the new government was,
therefore, first sensitisation of all stakeholders to the enormity of the problem, secondly to
garner the additional resources to augment civic amenities, and lastly to ensure growth of the
urban areas in a systematic and sustainable manner. The strategy adopted was many folded;
and stress was given on Urban Reforms.

Effective implementation of decentralisation as envisaged in 74th CAA.

The real spirit of the 74 CAA was to make the urban local bodies into vibrant self-
governing institutions. However, the mere incorporation of the provisions of the 12th schedule
could not literally make a shift over. In order that the urban local bodies can perform the
function assigned to them, financial autonomy has to be imparted. The State legislature shall
assign specific taxes, duties, tolls and levies and authorise the local bodies to impose, collect
and appropriate the same.

Repeal of Urban Land (Ceiling and Regulation) Act.

The prevailing Urban Land Ceiling and Regulation Act was a stumbling block in the
large scale investment in the urban sector, especially in the housing and commercial
enterprises sector. The state has taken a bold step to repeal the same, paving the way for
attracting large scale private investment in the sector.

Rationalisation of stamp duty

Corrective steps has been taken to down scale the stamp duty towards the prescribed
5%. At present, it has been brought down from the exiting 18% to 10%.

Association of elected municipalities with the city planning functions.

Enactment of a community participation law, so as to institutionalise citizens

participation in local decision making.
Other Initiatives

Enactment of Bihar Apartment Ownership Act 2006: Under this, registration of

property has been made compulsory. Each and every case of apartment ownership and
transfer will be considered ' to be compulsorily registered', item as enlisted under sec.16 of
Registration Act (1908). The builders of the multi storied building can be booked under the
act for not complying with the provisions for which there are stringent penal provisions. If
the builder fails to register the property, the owner can apply before the competent person for
the same. The vice chairman of the Regional Development Authority Act in the area of
operation of the Regional Development Authority Act 1981 and the District Magistrate in
other areas has been declared as the competent persons for this.

Amendment in multiplexes and cinema rules: With the intention to improve private
investment opportunity in the areas of multiplexes and entertainment sector, amendments
have been incorporated in the exiting rules. Under the exiting provisions, proprietor was not
authorised to change the sitting capacity of the hall nor he could have increase the entry fee.
By notification no. 3282 dt. 24-08-06, sub rule-(1) of rule 27 of Bihar Cinema (enactment)
Rules has been amended and now the proprietor is free to change the entry fee, as well as to
change the sitting capacity under intimation to the authorities Building bye laws were
amended to facilitated construction of malls multiplexe. Such bye-laws did not exit earlier.

Amendment ha been made in the Bihar Regional Development Rule 1982; Listed
Registered Architects are now empowered to sanction the building plan up to 500 sq meter
area, thus facilitating an easy and hassle free administration.

E-governance- Introduction of a system of e-governance using IT application, GIS

and MIS for various urban services has been initiated.

Levy of reasonable user charges! The CDP prepared for PUAA and Bodhgaya
clearly spells out the user charges in different services and thus makes a sustainable outlook.

Revision of bye-laws: By the notification no. 308 dt. 7-04-06 provisions for
structural safety norms, rainwater harvesting and adoption of water conservation measures
and land scaping measures, access path /walk way, parking, corridor connecting to the
entrance/provision for disabled persons have been incorporated.

Computerised registration of land and property, and property title certification has
been introduced.

Encouraging public private partnership: - Many ULBs have taken up street

lighting, solid waste management activities involving the private sector. The Patna Regional
Development Authority has recently finalised an agreement with IDFC for the development
of various infrastructure development including beautification schemes in Patna on the PPP
rule.
 Modern and transparent:- budgeting, accounting and financial management system
being designed to be adopted for all urban services and governance functions. Many Local
Bodies have already adopted the double entry System.

4. Development Activities under taken.

Under JNNURM, two towns Patna agglomeration and Bodh-Gaya have been taken
up. The City Development Plans for both has been submitted to Government of India. The
State Government has earmarked Rs. 500 crore in the annual budget of 2006-07 for
JNNURM. Emphasis has been given in creating and augmenting basic infrastructure facilities
in water supply sewerage, storm water, drainage solid waste management, roads and bridges,
street lighting, tourism and heritage sectors. The CDP for Patna suggests an investments
proposal to the tune of roughly Rs. 3580 crore, for a period of 7 Years. The DPR for the road
projects worth Rs. 129 crore, and for the underground cabling for water pumps worth Rs. 40
crores are ready. Moreover, the DPRs for Patna city other projects are under preparation by
consultants, which will be ready in a period of 4 months.

As per the guide lines the State level Steering Committees, headed by the Chief
Minister has been constituted. The meeting of the steering Committee has been held in the
month of September, 2006 and sanctioned some DPRs under JNNURM for Patna
agglomeration. The sanctioned DPRs as listed below have been submitted to the Government
of India:-

Sl. No. DPRs SLSC Sanctioned Amount

(Rs. in lacs.)
1 Road Development 12930-80
2 Under Ground Cabling to strengthen the Water 4020-42
supply
3 Sewerage Project 14150-00
4 Strom Water Drainage 73153-50
Total 104254-72
Under the 12th Finance Commission schemes worth Rs. 203 crore has been cleared
and Rs. 60 crore released for the year 2006-07:-

Sl. Item Estimated cost Sanctioned

No. (Rs. in lacs) Amount
(Rs. in lacs)
1 Patna Municipal Water Supply & 5752-12 2072-28
Corporation Sanitation 127-72 127-72
2 Muzaffarpur Water Supply 2000-00 400-00
3 Dharbanga Water Supply 2112-67 400-00
4 Chapra Water Supply & 800-83 800-83
Sanitation 214-22 214-22
5 Munger Water Supply 1380-48 1280-48
6 Purnia Water Supply & 625-25 205-54
Sanitation 498-93 498-93
7 Bhagalpur Strom Drainage 6900-236 Under process
 The following table indicates the many fold increase in the plan fund for the
year 2006-07 as compare to the annual plan of 2005-06.

(Rs. in lakhs)

Sl. Plan Plan outlay for

No. Sector 2005-2006 2006-2007
1 Water supply & sanitation
a. Water Supply (on going schemes) 3284.00 880.37
b Water Supply 7142.02 919.63
(new schemes)
c Sanitation and Clearness Drainage/Sewerage/ 64.30 00.00
Solid west Management and other sanitation 7142.02 1200.00
scheme (on going & new)
d Grant to B. R. J. P. (establishment) 286.99 230.00
Total (1):- 17919.34 3230.00
2 Urban Development
a Centrally Sponsored Schemes (State Share) - -
i National Urban Renewal Mission 00 50000.00
ii Integrated Housing & slum Development 00 300.00
Programme
iii Urban Infrastructure scheme of small medium 391.52 1000.00
towns/UIDSSMT
iv Swarn Jayanti Sahari Rojgar Yojana 156.00 280.00
v Establishment of Urban Information System 00 24.72
/NUIS
Total (2):- 547.52 54834.72
b Grant to Urban Local Bodies under Finance 00.00 6000.00
Commission
c Civic Amenities 571.00 389.28
d Grant to Urban Local Bodies for 0.00 500.00
construction/renovation of distractive &
technical buildings
e Master Plan, Project Reports preparation and 300.00 100.00
Capacity building
3. Urban Roads & Bridges 3000.01 2000.00
Grant Total 22337.86 63824.00
5. Other Important Steps Taken

The Most challenging task before the department was to find out a solution for the
perennial problem of the kankarbagh drainage. The Government has taken a bold step and
sanctioned a comprehensive project of Rs. 2280 lakhs and nominated the NBCC to go ahead
in a turnkey basis.

Appointment of Consultants for DPR preparation consultants have been appointed in

the five Municipal corporations along with Bihar and Ara for the preparation of detailed
project Reports. The consultant Ms/ Ramkey Infrastructure Consulting Pvt. Ltd. has been
given the task for Patna, Bhagalpur, Gaya, Bodhgaya and Muzaffarpur. Ms/ Shah Technology
Pvt. Ltd. has been given the task in Darbanga, Biharsharif and Ara. The consultants are given
an ultimatum to prepare the projects in a time span of 4-5 months.
 For the first time in the history of Urban Development of Bihar, the ULBs were given
Rs. 1200 lakh for purchase of improved equipments to facilitate sanitation operation.

The HUDCO has been nominated for the preparation of Master Plan of the important
towns of Chapra, Ara, Biharsharif, Rajgir, Gaya, Darbhanga, Muzaffarpur, & Bhagalpur.

The Master Plan of Patna has been prepared and published for inviting objection.

The list of unauthorised buildings without a sanction plan was prepared and severe
action, amounting to even evacuation and demolition of building was taken up in certain
extreme eases.

A workshop was organised on 'Healthy city concept' with the joint effort of the
Department of Health and world Health Organisation. The seminar was a success for
awareness creation in the public, stressed the relevance of co-ordinate and committed efforts
from government and Non-governmental organisation to face the serious challenges of public
health, sanitation and environmental pollution.

The Department has bestowed with a professional touch by hiring the service of a
competent consultant Ms/ ICRA management consultant for a contract period of one year.
The terms and condition and MOA reached with the consultant can be described as a model
one in this direction.