City Development Plan

Urban Infrastructure
Development Scheme For

Small And Medium Towns
City Development Plan 2031

Kolhapur
Industrial Hub, Tourist Attraction, Robust Infrastructure,
Knowledge industry
The Destination: KOLHAPUR

I am heartened to know that Kolhapur has developed a firm vision for its future in
the form of the City Development Plan.
Kolhapur occupies a cherished position in the state of Maharashtra, be it in the

field of agriculture, arts or industry. From ancient times it has made valuable
contributions to Marathi culture and indeed to the Indian society, especially in the
areas of Marathi film industry, food, religion and literature.
It is a continuous endeavor of the State Government of Maharashtra to ensure

that all its citizens have access to basic infrastructure, a better standard of life
and proper opportunities to earn their livelihood. The schemes of Central
Government like JNNURM and UIDSSMT provide the tools to support this vision
for Maharashtra.
Kolhapur has utilized the opportunity provided by UIDSSMT by defining a

systematic vision and action plan to upgrade Kolhapur’s urban infrastructure and
administrative machinery. The process of preparing the City Development Plan
ensured that all the stakeholders of the city had a say in defining the vision. The
City Development Plan envisages the future status of Kolhapur as a hub for
industries – engineering, IT and agro based, famous as a tourist location with
efficient urban services.
I commend and congratulate the Kolhapur Municipal Corporation and the citizens
of Kolhapur for contributing to this significant step towards development of
Kolhapur. I appeal to other cities and towns in Maharashtra to follow the example
set by Kolhapur and plan for their own development. I wish all the best to
Kolhapur for implementing and getting the fruits of this City Development Plan.
Vilasrao Deshmukh
Chief Minister
Maharashtra
Located at the gateway of Konkan, Kolhapur enjoys the status of a traditional,
beautiful and economically developed city. It has always been treated as an
important city in Maharashtra, indeed in India, especially in the areas of
agriculture, industries and culture.
Today when India is at the doorstep of attaining the status of an economic

superpower, Kolhapur does not want to be left behind and actually intends to
contribute to India’s economic development.
To do this, the city’s basic foundation consisting of physical infrastructure,

administrative framework and economic functions need to be strong. Kolhapur
has developed a City Development Plan with this vision of strengthening its basic
foundations. The plan has been derived from a comprehensive process involving
inputs form technical experts, public representatives, citizens of Kolhapur and
municipal administration. The Plan enables Kolhapur to access funds from
Government of India and Government of Maharashtra under UIDSSMT.
The result of the process if now brought together in the form of this plan,
documenting the vision for the city and roadmap for achieving the vision. I
congratulate the citizens of Kolhapur for contributing to the welfare of the coming
generations. I appreciate the efforts of Kolhapur Municipal Corporation for
facilitating the same.
Jai Maharashtra
Rajesh Tope
Minister of State for Urban Development
Maharashtra
The city of Kolhapur, famously known as the Dakshin Kashi, has always been an
important industrial as well as cultural hub. Situated on the banks of the river
Panchganga, the city is archaeologically an important place in India, famous for
the ancient and aesthetically beautiful temple of goddess Mahalaxmi. Being the
headquarters of the Kolhapur district, it is recognised as an important religious
and commercial centre of the region and is well-connected by road, rail and air
The Urban Infrastructure Development Scheme for Small and Medium Towns
(UIDSSMT) provides an impetus to the development of Kolhapur’s burgeoning
economy.
As a requirement of the Scheme, the City Development Plan (CDP) has been
prepared by the Kolhapur Municipal Corporation in consultation with it’s citizens.
The CDP outlines the vision for the growth of Kolhapur into “An hub for industries
– engineering, IT and agro-based, famous as a tourist location with efficient
urban services”. Besides, the Plan also identifies specific strategies and actions
to realise this vision.
I would like to commend the Kolhapur Municipal Corporation and the citizens of
Kolhapur for jointly evolving this comprehensive and inspiring Plan for the city. I
wish the Corporation all success in implementing this Plan and hope that the
citizens of Kolhapur will wholeheartedly support the Corporation’s efforts in
realising this great vision.
Jai Maharashtra
Harshavardhan Patil
Guardian Minister
Kolhapur
I am very happy to inform the citizens of Kolhapur that the City Development
Plan for Kolhapur city, with the horizon year of 2031 has been prepared under
the able supervision of Municipal Commissioner of Kolhapur Shri Kunal Kumar.
Kolhapur has always been in the forefront of development, be it economic, social

or cultural. From centuries immemorial, Kolhapur has been known for its
prosperity, tradition, arts and culture. It is now our duty to maintain the
honourable position of our city for the future.
As part of this intention of preparing the city to face the challenges of the future
and to promise a better quality of life for our citizens, this City Development Plan
has been prepared. It is the people’s vision for the city communicated in terms of
planned investments in the city’s infrastructure and strengthening the capacity of
the Corporation. The document has been prepared in close consultation with the
citizens of the city. I am sure that the involvement of the citizens will bring to fore
the real challenges of the city.
I would like to congratulate Shri Kunal Kumar and his team and acknowledge
their efforts in bringing out this comprehensive document. I am sure that in the
coming years this document will guide the efforts of the corporation in the right
direction.
Jai Maharashtra
Sou. Saee Ajit Kharade

Mayor
Kolhapur Municipal Corporation
Famous as Dakshin Kashi, since ancient times, Kolhapur is a holy place in the
state of Maharashtra. Located on the banks of the river Panchganga, with a
population of about 4.85 lakhs, covering an area of 66.82 sq.kms, the city is an
important religious and commercial centre of the region. Predominantly famous
for the ancient and aesthetically beautiful Mahalaxmi temple, the manufacture of
leather chappals and the sport of wrestling; the city has a strong engineering and
agricultural industry, good connectivity and a conducive climate. The city has all
the ingredients for emerging as an industrial hub as well as a tourism location.
The Kolhapur Municipal Corporation, established in 1972 under the Bombay

Provincial Municipal Corporation (BPMC) Act, 1949 is the local body responsible
for providing basic civic amenities to the citizens and in improving the economic
and social infrastructure of the city. The Corporation, with good support from its
officials, elected representatives and citizens, has always been in the forefront of
accepting and implementing various contemporary ideas and developmental
works.
The Urban Infrastructure Development Scheme for Small and Medium Towns
(UIDSSMT), launched by the Government of India in FY 2005-2006, provides an
opportunity to the city of Kolhapur to close the widening gap between existing
and desired levels of service delivery. The scheme will ensure improvement and
augmentation of service delivery, economic infrastructure, social infrastructure,
governance and financial sustainability.
The City Development Plan (CDP) has been prepared by the Kolhapur Municipal
Corporation as a step to access the funds under UIDSSMT. It is the
Corporation’s strategy that presents the vision for the city, the actions to achieve
the same, the financial sustainability of the Corporation and the investments
needed for achieving the vision. The CDP prepared by the Corporation with the
continuous involvement of the citizens paves the way for achieving the vision of
making Kolhapur the “Hub for industries and Tourism Destination with efficient
urban services”. The CDP has been developed in close consultation with KMC
officials, business groups, industry associations, educational institutions,
entrepreneurs, NGOs, CII, companies from IT sector milk association, temple
committee and citizens at large.
The city has potential to become a hub for the knowledge industry. The Hon’ble
Chief Minister of the State has already declared Kolhapur as the next IT
destination of the state. The city offers a supportive investment climate for the IT
industries. Besides, IT, agro processing industries, textile, gems and jewellery
could be major drivers for the economy of the City in the coming future. The City
is beckoning the future with great hopes and aspirations.
It is indeed gratifying that the citizens have provided their continuous support and
valuable time in the formulation of the CDP. I would sincerely like to acknowledge
the efforts of all the citizens and the concerned staff of the Kolhapur Municipal
Corporation. I am pleased to place the City Development Plan before the citizens
of Kolhapur.
Kunal Kumar, IAS

Commissioner,
Kolhapur Muncipal Corpoartion
Kolhapur City Development Plan
TABLE OF CONTENTS
EXECUTIVE SUMMARY
1 BACKGROUND 1
1.1 City Development Plan 1
1.2 Objectives of CDP 2
1.3 Kolhapur CDP Process 3
2 ABOUT KOLHAPUR CITY 4

2.1 Culture and Heritage 4
2.2 Location and Area 4
2.3 Climate and Rainfall 5
2.4 Linkages and Connectivity 5
2.5 Demographic Profile 5
3 ECONOMIC BASE OF KOLHAPUR 7

3.1 Agriculture and Agro-based Industries 7
3.2 Industrial activities 9
3.3 Information Technology Industry 10
3.4 The Art and Crafts industry 14
3.5 Tourism Potential 16
3.6 Other Areas 17
3.7 Directions for Growth 17
4 KOLHAPUR -- CITY ASSESSMENT 18

4.1 Urban Planning and Development 18
4.2 Urban Basic Services 18
5 URBAN POOR AND SOCIAL ASSESSMENT 29

5.1 Poverty in Kolhapur 29
5.2 Social Infrastructure 30
6 URBAN/MUNICIPAL FINANCE 35
6.1 Framework for Analysis 35
6.2 Financial Status at a Glance 36
7 CITY GOVERNANCE FRAMEWORK AND REFORMS 46

7.1 Deliberate wing 46
7.2 Administrative wing 46
7.3 Reforms being undertaken by KMC 47
Kolhapur Municipal Corporation -i-

8 FORMULATION OF VISION AND MISSION 49

8.1 Approach 49
8.2 Stakeholder Consultations – The Process and Outcome 49
8.3 Consultation with KMC 50
8.4 Important aspects that define Kolhapur’s Vision 52
9 INVESTMENT CAPACITY AND SUSTENANCE OF KMC 54

9.1 Classification of Annual Accounts 54
9.2 Financing Strategies for CIP 54
9.3 KMC Finance Operating Plan 54
9.4 Municipal Account – Growth Projections and Assumptions 55
9.5 Investment Capacity/ Sustenance 56
9.6 Action Plan for KMC 57
10 CAPITAL INVESTMENT PLAN, STRATEGIES AND IMPLEMENTATION PLAN 58

10.1 Capital investment plan 58
10.2 Capital Facilities, Investment Phasing and Implementation 58
10.3 Prioritisation of the projects 60
11 REFORM ACTION PLAN FOR KMC 85

11.1 Property Tax 85
11.2 Municipal Accounting 85
11.3 Cost Efficiency 85
11.4 E-Governance 85
11.5 Other Reforms 86
12 PERFORMANCE MONITORING SYSTEM FOR KMC 87

12.1 Components of Performance Monitoring System 87
LIST OF ANNEXURES
Kolhapur Municipal Corporation -ii-

TABLE OF TABLES
Table 1: Population Growth of Kolhapur ....................................................................................................... 5

Table 2: Demographic indicators .................................................................................................................. 6
Table 3: Total arrivals of commodities at the APMC..................................................................................... 8
Table 4: Milk production units in Kolhapur .................................................................................................... 8
Table 5: Details of industrial area - Kolhapur................................................................................................ 9
Table 6: Engineering Institutes and no. of graduates ................................................................................. 11
Table 7: Projected number of professionals to be absorbed in IT-ITES industry ....................................... 14
Table 8: Assumptions for projecting size of IT industry ............................................................................. 14
Table 9: Water supply connection details .................................................................................................. 19
Table 10: Water quality parameters............................................................................................................ 20
Table 11: Details of drains in KMC area ..................................................................................................... 22
Table 12: Fleet of Conservancy vehicles .................................................................................................... 22
Table 13: Schedule under the Municipal Solid Waste Rules 2000 ............................................................. 24
Table 14: Characteristics of lake water....................................................................................................... 25
Table 15: River Water Samples of Panchganga at the confluence of Nalla discharges ............................ 25
Table 16: Roads within the City Limits........................................................................................................ 26
Table 17: Major approached and traffic links in the city.............................................................................. 27
Table 18: Problematic Traffic Junctions in the city ..................................................................................... 27
Table 19: Vehicles Registered in Kolhapur City.......................................................................................... 28
Table 20: Number of educational Institutes ................................................................................................ 30
Table 21: Basic health indicators ................................................................................................................ 32
Table 22: Health Infrastructure ................................................................................................................... 33
Table 23: Incidence of Diseases................................................................................................................. 34
Table 24: Financial Status at a Glance ....................................................................................................... 36
Table 25: Source-wise revenue income (Incl. Water Account)................................................................... 37
Table 26: Property Tax Details and DCB Statement .................................................................................. 38
Table 27: Application of funds by heads of Accounts ................................................................................. 39
Table 28: Section-wise Establishment Expenditure.................................................................................... 40
Table 29: Section-wise Operation and Maintenance Expenditure.............................................................. 40
Table 30: Outstanding Debt Liability ........................................................................................................... 41
Table 31: Capital Income (incl. Water Account).......................................................................................... 41
Table 32: Capital Expenditure (incl. Water Account) .................................................................................. 42
Table 33: Water Charges – DCB Statement............................................................................................... 42
Table 34: Key Financial Indicators.............................................................................................................. 44
Table 35: Details of staffing pattern ............................................................................................................ 47
Kolhapur Municipal Corporation -iii-

Table 36: Important assumptions made in the projections ......................................................................... 55

Table 37: CIP Funding Pattern ................................................................................................................... 57
Table 38: Sector-wise break-up of proposed funding under UIDSSMT in Rs. lakhs.................................. 59
Table 39: Performance Monitoring System for KMC .................................................................................. 88
ACRONYMS AND ABBREVIATIONS
ARV Annual Rateable Value NGO Non-Governmental Organization

BT Black Topped O&M Operation & Maintenance
CAGR Compound Annual Growth Rate PPP Public Private Partnership
CC Cement Concrete PT Property Tax
CDP City Development Plan RTO Regional Transport Office
CIP Capital Investment Plan Sqkm. Square Kilometre
DCB Demand Collection Balance STP Sewerage Treatment Plant
DPR Detail Project Report SWM Solid Waste Management
ESR Elevated Storage Reservoir UGD Underground Drainage
EWS Economically Weaker Section UIDSSSMT Urban Infrastructure Development
for Small and Medium Towns
FSI Floor Space Index (same as FAR) WBM Water Bound Macadam
GLSR Ground Level Storage Reservoir PPP Public Private Partnership
GoI Government of India PT Property Tax
GoM Government of Maharashtra RTO Regional Transport Office
gpcd Grams per Capita per Day Sqkm. Square Kilometre
HHs Households STP Sewerage Treatment Plant
IPT Intermediate Public Transport SWM Solid Waste Management
KMC Kolhapur Municipal Corporation UGD Underground Drainage
KMT Kolhapur Municipal Transport UIDSSSMT Urban Infrastructure Development
for Small and Medium Towns
LCS Low Cost Sanitation WBM Water Bound Macadam
lpcd Litres per Capita per Day
MIDC Maharashtra Industrial Development
Corporation
Kolhapur Municipal Corporation -iv-

Executive Summary
avail of the funds under this scheme for the

The city of Kolhapur famous as 'Dakshin Kashi'
improvement of its urban infrastructure. These
since ancient times is a holy place and was
funds would need to be directed towards priority
historically known for being the capital of the
actions and projects.
'Kolhapur Sansthan'. Located in the south-west
part of Maharashtra, it is one of the growing
KOLHAPUR – AN IDEAL DESTINATION
cities in Maharashtra, with an area of 66.82 sq
km. and a population of nearly 4,85,183
residents (census 2001). The Urban Kolhapur has a distinct culture developed as a
result of rich history and its quality of people who
Infrastructure Scheme for Small and Medium
Towns (UIDSSMT) launched by the Government have been front-runners in various fields.
of India (GoI), brings an opportunity to this Agriculture is the main contributor for the
economy of Kolhapur. Its sugarcane industry
growing city to improve its urban, economic and
social infrastructure. contributes to over 5% of the sugarcane
produced in the country and accounts to a
significant share of sugar, jaggery and baggase
OPPORTUNITY FOR THE CITY
produced. It is fast becoming an industrialized
district as well and already a front-runner in
The Urban Infrastructure Scheme for Small and
agro-based industries. It is one of the shining
Medium Towns (UIDSSMT) aims at creating
examples in the co-operative movement of India,
economically productive, efficient, equitable and
with around 11,338 societies in the district. The
responsive cities. This scheme will be in place
industries in Kolhapur mainly comprise sugar
till 2011-2012. The objective is to improve
industries, textile mills, engineering units and
infrastructure as well as to ensure long-term
foundry units. There are nine industrial estates
sustenance of the ULBs. The funding pattern
in Kolhapur, with 1,207 functioning units.
would be in the ratio of 80:10 between the
Kolhapur has an innate potential to become a
central and state governments. The balance
center for Information Technology and provides
10% could be raised by the urban local body
a relatively inexpensive alternative to Pune and
(ULB) from financial institutions or by using its
Bangalore.
own resources.The GoI has framed the
UIDSSMT guidelines in such a way that
One of its sovereign gifts to the world is the
applicant ULBs will be eligible for the grant
Kolhapuri Chappals (slippers). Other than that,
assistance, provided the cities undertake certain
the city is also famous for its art and handicrafts
reforms. Thus, to be eligible for the grant
and silver jewellery. Its rich legacy, tradition and
assistance under UIDSSMT, the GoI requires
culture, the presence of the Mahalaxmi temple,
cities to prepare project proposals in accordance
palaces, the various arts, delicious cuisine and
with the CDP, and draw up a timeline for
rich culture make the city an ideal tourist
implementing the urban sector reforms. The
destination. The city attracts around 30 lakhs of
Kolhapur Municipal Corporation (KMC) plans to
religious tourists every year with an average
Kolhapur Municipal Corporation -v-

daily floating population is over 2 lakhs. This ASSESSMENT OF PHYSICAL AND SOCIAL
also drives the demand for hospitality services, INFRASTRUCTURE
tour and travel operators.
To formulate the City Development Plan, an
assessment of the existing situation in Kolhapur
town has been carried out with respect to its
basic infrastructure, its physical and
environmental aspects, and the financial status
of the Kolhapur Municipal Corporation.
Land use: According to the current

development plan in force, the proposed land
use mix in Kolhapur by 2011 indicates allocation
of 67% for development -- 35% being allotted for
residential use and 29% for recreation and
The current demographic and economic profile entertainment. Of the remaining 39% land, 29%
of the city indicates that the future growth of the is allotted for agricultural use, 3% for commercial
city depends on the creation of new economic and the rest for utilities and water bodies.
drivers, specifically in the areas of tourism and
IT. Building and consolidating on its present Water Supply: The city of Kolhapur gets a raw
strengths in the engineering industry, water supply of 128 MLD, of which the
handicrafts, agriculture and agro-based Corporation supplies 120 MLD; 8 MLD is
industries, will have to be carried out obtained through ground water sources. The city
simultaneously. has four treatment plants with a design capacity
of 162 MLD; of this, 119 MLD of water is utilized.
Given the immense potential of the town, a City The city has 66,625 connections, all of which are
Development Plan has been prepared to provide metered. Besides this, KMC has set up 2,051
an integrated solution for problems facing the Public Stand Posts in the city. The Corporation
city. charges the users depending upon their
consumption, and the tariffs are revised every
CDP - AN INTEGRATED SOLUTION year. The key issues in water supply service are
the current distribution and transmission losses
The City Development Plan (CDP) is the amounting to 20%, capacity of the water supply
Corporation’s corporate strategy that presents system limited to projected population upto
both a vision of a desired future for the city. It 2011, and leakages in the system. The poor
identifies an economic growth strategy as well state of the plant and machinery is also a cause
as actions that would be required by various for concern.
agencies to ensure the city’s sustainable
development. Sewage and sanitation; At present, Kolhapur is
generating 75-80 MLD of sewage. The city has a
CDP, thus prepared with the involvement of the single centralised treatment facility of capacity
stakeholders, is a forward-looking consensus 45 MLD. The current sewerage system covers
program for the city. It outlines the way to -- only 30% of the total area. The current STP
improve service levels, improve financial undertakes merely primary treatment of the
sustainability, and create a citizen-friendly, sewage. With increasing FSIs and increasing
accountable and transparent administration by population, the pressure on the city’s
implementing reforms. infrastructure has increased drastically. There
are frequent pipe bursts leading to sewage
Finally, the CDP will reveal the Corporation’s overflow. Also, the sewerage network is poor in
strategy to manage its resources, i.e., how it the suburban areas. The polluting of the
intends to increase revenues and expand its tax downstream water in the Panchganga River is
base to allow for self-sustaining urban service also a cause for concern.
delivery; improve its creditworthiness; and
recruit and retain a skilled workforce. Drainage; The drainage system of Kolhapur
consists of rivers, natural channels and roadside
drains. Tertiary drains are roadside drains
constructed by the KMC for collecting and
Kolhapur Municipal Corporation -vi-

conveying storm water to the secondary and rehabilitation of the slums is difficult due to the
primary drainage network. shortage of land with KMC.
Solid waste management; The primary Social Infrastructure: Kolhapur has a large
sources of solid waste in Kolhapur are local number of educational institutes at all levels,
households, markets, commercial including government and private institutions. All
establishments, hotels, restaurants, and areas under the jurisdiction of the Kolhapur
hospitals. The total quantity of waste generated Municipal Corporation have been covered by
is in the order of 170 tonnes per day (TPD) at a compulsory primary education, and large-scale
per capita generation of 342 grams per day. The public awareness programs are being
percentage of waste collected and disposed is conducted. There are 166 primary schools in the
86% of the generation. The landfill site identified city in both the government and private
by KMC is being disputed by residents of the categories. Kolhapur also takes pride in a Shivaji
adjacent areas. A substantial number of posts in University and a NAAC five-star rated institution.
the Conservancy Department of the corporation It is most famous for its literature, arts,
are lying vacant. Also, the door-to-door commerce, bio-technology, environment and
collection of waste is inadequate. science departments.
Road and transportation; The city of Kolhapur Health infrastructure in Kolhapur includes poor
is well connected through rail and road transport state of equipment and property in municipal
facilities and also has a few flights connecting it hospitals and dispensaries, inadequate and
to Belgaum and Mumbai. It acts as a point for poorly trained staff and inequitable distribution of
interstate transport routes between medical services. Moreover, there have been
Maharashtra, Goa, Karnataka and the southern frequent outbreaks of epidemic diseases,
states, and serves as a key transport location. especially during the monsoon months.
The dominant public mode of transport in
Kolhapur is road transport. Kolhapur Municipal Social evils and poverty reduction; Kolhapur
Transport (KMT), a KMC undertaking, provides is witnessing a rise in prostitution, with
public transport in Kolhapur. Vehicular traffic in increasing trade and commerce. The city ranks
Kolhapur has increased during the period 1997- third in Maharashtra in terms of prostitution and
2006 at a CAGR of 34%. This has put first in terms of ‘female foeticide’. Today, the city
tremendous pressure on the city’s existing faces several problems in the social arena such
infrastructure. Therefore, the general condition as increased crime rate, increased female
of roads is bad and worsens during the foeticide, and growing number of cases of
monsoons. Parking is inadequate in proportion atrocities on women. The city today has the
to the number of vehicles. lowest female to male ratio, i.e., 816/1000.
Under SJSRY, mahila bachat gats have been
Urban poverty: There are 54 slums in created. These gats (groups) come together and
Kolhapur, of which 44 are declared and 10 produce products. However, there is no market
undeclared. The total slum population was for these products. There is a need to market
approx. 56,235 as on 01-01-1995, which is these products and create awareness about the
11.60% of the city’s total population. Urban same.
basic services are adequately provided to the
slums in Kolhapur. All the slums have access to ASSESSMENT OF MUNICIPAL FINANCES
water supply, either through pipes or stand posts
provided by KMC. Only 15% of the slums do not KMC’s current accounting system is cash-
have access to sewerage or drainage facilities. based; income and expenditure heads are
Solid waste management facilities are provided maintained on a cash basis. All the expenses
to almost 75% of the area. KMC has undertaken towards regular maintenance are treated as
several initiatives to improve the standard of revenue expenses, while expenses on new
living of the slum-dwellers and provide them with projects are treated as capital expenses. KMC’s
the basic level of services, including current accounting system is cash-based;
programmes under the Valmiki Ambedkar Awas income and expenditure heads are maintained
Yojna, SJSRY and Neigbourhood programmes. on a cash basis. It has been observed that
The key issue related to slum-dwellers is that KMC’s budget is inflated due to the practice of
they do not possess tenure of the land on which recording the receipts of grants first as revenue
they stay. Also, the resettlement and income and then subsequently apportioning in
Kolhapur Municipal Corporation -vii-

capital income. For the analysis, KMC’s annual received any capital grants. Capital
accounts for the last five years have been expenditure is mostly met from revenue
recasted. surpluses. On an average, over the past five
years, the majority of capital expenditure has
been directed towards water supply and
sewerage systems, and roads and traffic.
Review of the outstanding loan statement of

KMC, as on 31st March 2006, reveals that the
net outstanding debt liabilities of KMC stand at
Rs. 3,617 lakhs, which is high in comparison to
its revenue base (36% of its property tax
Revenue income of KMC has grown to a level demand). Cost recovery from water supply
of Rs. 9,959 lakhs in FY2005-06 from Rs. 8,581 operations is around 100%, if the taxes
lakhs during FY2001-02, registering a pertaining to water supply are also taken into
compounded annual growth rate (CAGR) of 4%; account. However, analysis indicates that there
revenue expenditure increased at a CAGR of is a large number of illegal connections in
8%. This indicates a decline in the financial Kolhapur. The collection against demand is only
condition of KMC. KMC maintained an average 76% in Kolhapur. The cost recovery by way of
revenue surplus of over 10% of its revenue direct user charges alone (excluding taxes and
income. other water income) is about 91% against a
desirable 100%. No user charges are collected
Octroi is the single largest source of income for sewerage services; the only recovery is in
accounting for about 51 percent of municipal the form of the special sewerage tax and
revenue income. During the last five, it has sewerage benefit tax. Cost recovery by way of
registered an average annual growth of six indirect charges is 20% against a desirable
percent. Octroi is followed by property tax, which 100%.
is charged as a percentage of the Annual
Rateable Value (ARV). The average collection CITY GOVERNANCE AND REFORMS
performance stands at about 76 percent of the FRAMEWORK
total demand, indicating scope for further
improvement of collection efficiency. The non- Established in 1972, KMC is governed by the
tax income accounts for about 33.2 percent of
Bombay Provincial Municipal Corporation
KMC’s revenue income and has registered a (BPMC) Act, 1949. The deliberative wing of
CAGR of one percent. Water charges and other KMC is its general body, consisting of 77 elected
water income account for the majority of the members and five nominated members. The
non-tax revenues and contribute more than 18 general body of KMC is headed by the mayor.
percent of the revenues. The Standing Committee, as specified in the
BPMC Act, is the most important committee of
Revenue expenditure of KMC has registered the Corporation. Most of the financial powers are
an average annual growth of 8% against growth vested with the Standing Committee.
in revenue income by 4%. The establishment
expenditure, including pension contribution and The municipal commissioner is the key figure in
pay commission revision, alone account for over local self-government and is the administrative
65 percent of revenue expenditure. O&M head of KMC; the commissioner is assisted by
expenditure accounts for about 29 percent of the senior officials in discharging his functions. The
total expenses and expenditure towards debt commissioner manages the day-to-day affairs of
servicing accounts for just about two percent of
the Corporation, subject to approvals and
revenue expenses, indicating scope for the sanctions from the Standing Committee and the
further leveraging of KMC’s resources to Corporation. KMC is divided into five wards,
implement large-scale projects.
each headed by a ward officer. The total
strength of officers and employees at KMC is
Capital income of KMC comprises loans, grants about 3,777, as against the approved
and contributions; transfers from revenue employment level of about 4,779.
surplus; and utilization of funds from sinking
funds. As mentioned earlier, in recent years, KMC has undertaken quite a few reforms in the
KMC has neither availed of any loans nor administrative framework, including initiating
Kolhapur Municipal Corporation -viii-

implementation of GIS, computerisation of the city. Finally, based on the consultations, a

property tax database and computerisation of review of the current status of Kolhapur and the
the building plan approval system. Tenders have SWOT analysis, the vision for Kolhapur was
been made available on the Corporation’s defined thus -- ‘Kolhapur as a hub for
website. industries – engineering, IT and agro-based,
famous as a tourist location with efficient
urban services’.
INVESTMENT CAPACITY AND SUSTENANCE
The investment capacity of KMC is assessed

through a Financial Projection – Financial
Operating Plan (FOP), which gives a multi-year
forecast of finances of the local body for a
FORMULATION OF VISION STATEMENT medium term. In line with the phasing of
identified investment from 2006/07 to 2011/12,
The CDP is the Municipal Corporation’s strategy the sustainability of KMC has been worked out.
that outlines the vision for the growth of the city In determining the long-term financial strategy,
and details how the Corporation, together with KMC plans to raise resources and fund the
stakeholders, intends to achieve its long-term Capital Investment Plan (CIP) by accessing
vision. In this context, stakeholder consultations funds available under UIDSSMT and using
were conducted to arrive at the vision for the internal sources of revenue. KMC plans to
development of Kolhapur and to understand the improve the internal sources of revenue through
issues of the city. Various rounds of revision of ARV at certain levels, revision of
consultations in the form of workshops and water and sewerage tariffs at specific intervals,
focus group discussions were held during the transfer of water and sewerage tax to the
period 22nd August to 11th October ’06. relevant account heads, maintenance of the
collection performance of taxes and charges and
The first consultation was held with the KMC increase of its borrowings.
officials and people’s representatives to make
them aware of UIDSSMT and the CDP process. Given the existing financial position of KMC, the
The objective of the workshop was to get the revenue and capital accounts of KMC are
implementing agency’s views on issues such as projected against the growth scenario and
the importance of Kolhapur, the strengths of the assumptions presented above. The FOP is
city and the desired focus areas for the generated from the sustainable investment point
development of the city and the region. The of view in line with current growth trends against
second consultation was held to bring together the recommended investment of Rs. 771 crores
municipal decision-makers and stakeholders, to at constant prices till 2011-12.
define the vision for the city and the various
sectors of Kolhapur. The stakeholders hailed Capital Grants to be made available under UIDSSMT Framework
from diversified backgrounds, including 80% Grants 10% Grants 10% Funding from
representatives of non-governmental from GoI from GoM Own Sources/ Debt
organisations (NGO), industrial and trade Funding proposed over the next 6 Years
2006-07 to 2011-12
in the form of
GoM share
own resources through
reforms in functional
associations, health and education, town Approx. Rs. 92 Crores (escalated) Rs. 11.5
crores
areas
Property Tax reforms/
proposed UIDSSMT Grant from GoI
planning, and senior citizen groups. The third unassessed
properties
consultation was in the form of focus group Rs. 115 Cr proposed under UIDSSMT Funding
Regular revision of
user charges,
discussions to understand the specific needs to Revolving Fund to be created equivalent to 25% of
improving collections
Introduction of
be addressed by the CDP and to ensure that the UIDSSMT Funding
Sewerage Charges
diverse inputs are integrated in the plan. The

Confederation of Indian Industries (CII) also held It is observed that following the current growth
a series of workshops with renowned citizens, trends, KMC can sustain an investment of Rs.
inviting them to discuss their vision for the city, 556 crores (constant prices), which is 72% of the
its strengths and weaknesses, its economy and identified investment till 2011-12. This indicates
basic infrastructure issues. the present soundness of KMC’s finances and
its capacity to take up large-scale infrastructure
Based on the inputs of the stakeholders a projects on its own. Various revenue
SWOT analysis was carried out for Kolhapur improvement measures in property tax like the
Kolhapur Municipal Corporation -ix-

identification of unassessed properties, regular PROPOSED PROJECTS

revision of tax rates, and improvement of
collection efficiency are expected to increase The total estimated capital investment required
KMC’s investment capacity by an additional Rs. for providing efficient services to the present
116 crores, which amounts to an additional 15% population and future population of KMC by the
of its base investment capacity. year 2031 is Rs. 1107.71 crores at constant
prices. Of this, a sum of Rs. 771.88 crores is
Further, revenue improvement measures in the proposed for investment by 2011-12.
water supply and sewerage sectors like the
regularisation of unauthorised connections, The planning horizon for the projects identified in
regular revision of user charges and new the sectors of urban poor/slums, land
connection deposits, and improvement of use/development planning and other projects is
collection efficiency are also expected to 2011-12. Accordingly, the entire identified
augment KMC’s investment capacity. investment is proposed for funding by 2011-12
itself. The planning horizon for the core service
Mode and sources of Amount (Rs. Crs)– % of Total
Funding Current Prices Investment sectors of water supply, sewerage, drainage and
Identified Sustainable 709.71 100 solid waste management is 2031. Hence, only a
Investment till 2011-12 part of the identified investment is proposed for
Grants (UIDSSMT) 610.23 86 funding by 2011-12. The table below presents
GoI grants 542.43 76 the summary of KMC’s sector-wise total
GoM grants 67.80 10 investment needs and investments up to 2011-
Loan (Open Market/ FIs) 16.74 2 12.
Own sources (KMC) 82.74 12
Sector Total Investment Investment till 2011-12 (Rs. lakhs) % Investment Identified
Need (Rs. lakhs) Base Cost Escalated % Sector till 2011-12 by KMC
Cost* wise of Total against Total
Water Supply 6,477 6,477 7,999 8.1% 100% 7285
Sewerage & Sanitation 14,202 14,202 17,745 18.0% 100% 17322
Roads &Urban Transport+ 60,434 34,188 44,140 44.8% 84% 34025
Drains 14,412 11,420 14,611 14.8% 79% --
Street Lights 580 345 429 0.4% 59% --
Conservancy (SWM) 2,107 1,147 1,413 1.4% 54% --
Urban Poor/ Slums 4,883 4,883 6,531 6.6% 100% --
Land use/ Dev. Planning 5,285 2,135 2,766 2.8% 40% --
Others ++ 2,391 2,391 2,937 3.0% 100% 104
Total 110,771 77,188 98,571 100.0% 85% 58,736
implementation of measures as well as the

Of the total investment need of Rs. 771 crores,
institutionalization of reforms. This would still
KMC has prioritized projects worth Rs. 587
leave some areas that would need to be
crores. The prioritization of projects has been
addressed by KMC in terms of implementation
based on discussions with key stakeholders and
of a project like water supply. Some of the
officials of KMC. In addition to these specific
projects would be exploring possible options of
projects, strategies have been identified for
involving the private sector in areas of
tourism, culture and heritage preservation,
development, cost recovery, maintenance,
information technology and communication
billing and collection, pumping, treatment and
industry, environment management and social
distribution.
infrastructure.
Though one of the main aims of UIDSSMT is to
REFORM ACTION PLAN
finance the infrastructure investments identified
as part of the CDP, the larger objective of the
The above analysis and actions indicate that mission is to initiate the much-needed reforms in
KMC is in a good position to tap UIDSSMT ULBs. The mission has identified certain
funding. The analysis is based on the
mandatory and optional reforms to be
Kolhapur Municipal Corporation -x-

undertaken at the state government and ULB property tax @ 4% of ARV. Solid waste charged
levels during the mission period, for the ULB to as part of property tax @ 6.5% to 15% of ARV.
be eligible for funding. Commitment to this reform is given as a part of
main agreement.
Municipal Accounting: A chartered accountant
has been appointed for converting the current Some other reforms have been initiated by KMC
single-entry cash based system into a double- for segregation of solid waste at source, revision
entry accounting system. Its targeted to finish of water charges, revision of octroi rate, and
the accounting reforms by FY 2009-2010. This adoption of a state IT policy.
firm will maintain the accounts of KMC and
simultaneously train its officials for a period of In order to undertake effective implementation of
three years. the identified projects in a professional manner,
KMC needs to adhere to the timeline of the
E-governance: KMC already has an online action agenda. The Performance Monitoring
facility. Tenders are floated on the website of System (PMS), would be developed to adhere to
KMC. It also has a registration facility provided the time lines of reforms. This would also ensure
through a through Citizen Facilitation Centre timely implementation of the action plan. The
(CFC). Currently only one CFC is existing and PMS would measure KMC’s performance with
another 5 are proposed. The payroll, pension respect to its service delivery against the
and provident fund system is already committed/set targets under each reform.
computerised. Currently, building plans are
scrutinized and permission is granted through all EXPECTED OUTCOMES
ward offices (4 nos). A computerised system has
been introduced recently. KMC has committed KMC’s current levels of service delivery has a
to comply with the E-Governance reform agenda substantial scope for further improvement.
by FY 2009-2010. Moreover there is a need to rejuvenate the
economic activity in the city by facilitating the
Property tax: The Kolhapur Municipal development of new business and commercial
Corporation currently maintains a property tax avenues like tourism and IT. Through this City
collection efficiency of 77%. A survey to identify Development Plan, KMC intends to achieve two
the unassessed properties has already objectives; provide the necessary civic amenities
commenced. A provision of Rs. 50 lakhs has to the citizens and stimulate the economic
been made in the budget for the implementation activities. The resource requirement can be
of GIS. KMC has proposed to revise the rate of realistically met with funds under UIDSSMT
property tax by 10% next year. Also, KMC plans (both Central and State funds), KMC’s internal
to fine citizens with property tax arrears. revenues and expected additional revenues
from implementation of reform measures.
Urban Poor: Currently, only 10% slums
households do not have access to water supply.
KMC spends around 1.6% of its total budget on Current situation UIDSSMT grants
Expected
sustainable
providing basic facilities in slums. Unlike other Will supplement internal
resources
outcomes
ULBs in Maharashtra, KMC provides additional

• Stagnating growth
assistance based on the need of the groups of • Satisfactory urban
• Stimulate economic
growth
services
BPL. The amounts of assistance have been • Reasonably strong • Universal service delivery
financials • Improved governance,
decided with a cap of Rs. 2.50 lakhs. Special • Integrated organisational
set up
Reform commitments planning and
Will improve governance
training has been given by KMC under SJSRY • Sound reform platform Will supplement grants
accountability
Financial sustainability
Will sustain improvements •
and they have been able to procure assistance
from the local banks for developing
At the end of the CDP period, KMC would have
entrepreneurship. KMC has targeted to
achieved full and higher quality service coverage
accomplish the reform agenda under UIDSSMT
and would also be able to maintain a sustainable
by FY 2009-2010.
financial position. KMC would also have built on
its strong governance framework and ensured
User Charges: With respect to recovery of O&M
modern financial management, effective e-
through levy of reasonable user charges, KMC
governance and transparency in its functions.
has been successful in revising water tariff every
year. It has been able to recover 100% water
expenses. Sewerage tax is charged as part of
Kolhapur Municipal Corporation -xi-

1 BACKGROUND
As per the 2001 census, the urban population of India stood at 28.54 crores, which is about 27.8 percent
of the country’s total population. By 2021, the urban population is estimated to account for above 40
percent of India’s population. Thus, cities and towns will play a vital role in India’s socio-economic
transformation and change. Apart from their contribution to the country’s gross domestic product (GDP),
which is currently placed at about 50-55 percent, and their growing role in the global markets, cities in
India will be the engines of economic growth, the centre-points of innovation and the hub of many socio-
economic activities.
But the current state of affairs in most of our urban areas is far from satisfactory on all parameters of
urban governance like planned growth, share of slum population, reliability of civic infrastructure and
financial resources. All these factors will have a significant negative economic consequence if not
addressed in a planned manner.
have impeded investment in urban

1.1 CITY DEVELOPMENT PLAN infrastructure and services
Municipal governments and other institutions Upon completion of the scheme, it is expected
responsible for service provision are facing an that the respective ULB will have achieved the
acute shortage of capacity and resources, following outcomes:
notwithstanding the 74th Constitutional
Amendment Act, 1992, on municipalities. Most Modern and transparent budgeting,
municipalities are starved of resources on accounting, and financial management
account of their inability to effectively use their systems will be designed and adopted for
revenue-raising powers, in particular, those all urban services and governance
relating to property tax and user charges. functions.
A citywide framework for planning and
Given the current state of affairs of our cities, governance will be established and become
which is incompatible with the country’s socio- operational.
economic objectives and India’s growing role in All urban residents will be able to access a
the world economy, the Government of India basic level of urban services.
(GoI) has launched the Urban Infrastructure
Development Scheme for Small and Medium Financially self-sustaining agencies for
Towns (UIDSSMT) in 2005-06. The scheme will urban governance and service delivery will
be in place for the next seven years. The be established through reforms.
funding pattern would be in the ratio of 80:10 Local services and governance will be
between the central and state governments. The conducted in a transparent and
balance 10% could be raised by the urban local accountable manner.
body (ULB) from financial institutions or by using E-Governance applications will be
its own resources. The UIDSSMT focuses on: introduced in core functions of ULBs/
Improving and augmenting the economic parastatals resulting in reduced cost and
and social infrastructure of cities time of service delivery processes.
Ensuring basic services to the urban poor In order to be eligible for grant assistance under
including security of tenure UIDSSMT, GoI requires eligible cities to prepare
Initiating wide-ranging urban sector reforms project proposals (detailed project reports) and
whose primary aim is to eliminate the legal, submit them to state level nodal agencies for
institutional and financial constraints that appraisal. Also, cities have to draw up a timeline
for implementing the urban sector reforms.
Kolhapur Municipal Corporation -1-

priority actions and projects. In this context,

KMC appointed CRISIL Infrastructure Advisory
City Development Plan
to help in the preparation of the City
Development Plan (CDP) for Kolhapur city.
1.2 OBJECTIVES OF CDP

Timeline for Implementation Detailed Project Reports
of Reforms The City Development Plan (CDP) is aimed at
identifying an integrated solution for problems
facing the city. It identifies an economic growth
strategy as well as actions that would be
Application
Application for
for UIDSSMT
UIDSSMT funds
funds required by various agencies to ensure
sustainable development of the city.
The grant from GoI and the state government The CDP is the corporation’s corporate strategy
will flow to the nodal agency designated by the that presents both a vision of a desired future for
state government. The nodal agency will the city and the municipality’s organization, as
disburse the central assistance to the ULBs as well as mission statements on how the
soft loan or grant-cum-loan or grant. However, municipality, together with other stakeholders,
the funds may be sanctioned in such a manner intends to work towards achieving this long-term
that 25% of the central and state grant, put vision in the next five years.
together, is recovered and ploughed back into
the Revolving Fund to leverage market funds for The CDP should lead to the translation of
financing further investment in infrastructure missions into actions and actions into outcomes.
projects. At the end of the scheme period, the The objective of involving stakeholders through
Revolving Fund may be graduated to a State a consultation process and securing
Urban Infrastructure Fund. endorsements of the proposed actions by the
local body and other implementing agencies is
The GoI has framed the UIDSSMT guidelines in to hold these bodies accountable for their
such a way that applicant ULBs will be eligible mission statements, actions and expected
for the grant assistance, provided the cities outcomes.
undertake certain reforms. The objective is to
improve infrastructure as well as ensure long- The CDP clearly defines how a corporation will
term sustenance of the ULBs. Thus, to be serve its customers (businesses and citizens).
eligible for the grant assistance under For example, the CDP will talk about how the
UIDSSMT, the GoI requires cities to prepare corporation intends to guarantee a basic level of
project proposals in accordance with the CDP, urban services to all citizens; make urban
and draw up a timeline for implementing the planning responsive to emerging needs; and
urban sector reforms. become responsive to the needs of, and
improve its services, to local businesses. The
Subject to the fulfillment of the above-stated CDP will also outline how the corporation plans
requirements and their satisfactory appraisal, to run its business. The CDP will elaborate how
the GoI, the Ministry of Urban the corporation intends to manage public finance
Development/Ministry of Urban Employment and in a modern and transparent way; execute
Poverty Alleviation will sign a Memorandum of urban planning and governance in line with an
Agreement (MoA) with the state government and established framework; and become more
the city will sign an MoA with State Level Nodal responsive -- cost and time efficient – by availing
Agency (SLNA), and release funds in of technology in its governance and service
accordance with the payment schedule that will delivery processes. Finally, the CDP will reveal
form a part of the Memorandum of Agreement the corporation’s strategy to manage its
(MoA). resources, i.e., how it intends to increase
revenues and expand its tax base to allow for
The Kolhapur Municipal Corporation (KMC) self-sustaining urban service delivery; improve
plans to avail of the funds under this scheme for its creditworthiness; and recruit and retain a
the improvement of its urban infrastructure. skilled workforce.
These funds would need to be directed towards

The City Development Plan, thus prepared

1.3 KOLHAPUR CDP PROCESS with the involvement of the stakeholders is a
forward-looking consensus program for the city.
The formulation of the CDP for Kolhapur has It outlines the way to:
been divided into three phases and involved the
following tasks and activities. The approach to Improve service levels,
the assignment has been primarily analytical Improve financial sustainability, and
(assessment of the existing situation) and Create a citizen-friendly, accountable and
consultative (discussions with key stakeholders). transparent administration by implementing
The analytical assessment focused on the reforms as per the UIDSSMT guidelines.
existing state of affairs in terms of a) services
levels, b) municipal finances, and c) institutional
arrangements in provision of services.

2 ABOUT KOLHAPUR CITY
Famous as Dakshin Kashi since ancient times, Kolhapur is a holy place. It was historically known as the
capital of the Kolhapur Sansthan (Trust). Human habitation in Kolhapur started nearly 2,200 years ago on
the banks of the river Panchaganga. The name of this city, Kolhapur or Karvir, has multiple meanings.
According to some experts, the name Kolhapur has originated from the Kannada word kolla, meaning a
deep river bank, which clearly indicates that the city is situated on the deep bank of the river
Panchaganga. According to some other experts, the name Karvir comes from the goddess Mahalaxmi,
who is holding the kur in her hands.
the festival of rays. On certain days, the rays of

2.1 CULTURE AND HERITAGE the sun fall directly on the idol of goddess
Mahalaxmi. These days stretch from 9th
Kolhapur is archaeologically an important place November to 11th November and 31st January
in India, famous for the ancient and aesthetically to 2nd February.
beautiful temple of goddess Mahalaxmi. The
temple is the best model of ancient Hindu
2.2 LOCATION AND AREA
archaeology in India. It is entirely built of black
stone and has a plinth in the shape of a star.
Kolhapur city is located in the south-west part of
Plate 1: Mahalaxmi Temple Maharashtra. The geographical coordinates are
16o-42’ north latitude and 74o-14’ east longitude
and 550 m above mean sea level. On the
western part of the city lies the range of
Sahyadri Hills; the Warana river flows along the
northern boundary. Kolhapur is abutted by
Belgaum district on the southern side. The
approximate area of the city is 66.82 sq. kms.
Plate 2: Location Map of Kolhapur
The premise of the temple is huge; a number of

small temples of other deities are located within
its premises. It was constructed in 634 AD and is
one of the most respected and visited temples in
Maharashtra. Many people from Maharashtra as
well as from all over the country come to
Kolhapur for darshan of the goddess. The
number increases during the Navaratri festival.
Goddess Mahalaxmi is supposed to be the wife
of Lord Venkateshwara (Balaji) Tirupathi. Hence,
after taking darshan of Tirupathi Balaji, people
make it a point to come to Kolhapur for
Mahalaxmi’s darshan. The festival of Navratri is
celebrated on a huge scale in the month of
Ashwini. Thousands of devotees come here for
darshan. A special type of festival is also
celebrated which is known as Kirnotsava, i.e.,

Kolhapur city is one of the growing cities in

2.3 CLIMATE AND RAINFALL Maharashtra, with an area of 66.82 sq km. and a
population of nearly 4,85,183 residents (Census
Kolhapur's climate is a blend of the coastal and 2001). The population of the city increased
inland climate of Maharashtra. The temperature rapidly from 1941 to 1981; this growth can be
has a relatively narrow range, 12°C to 35°C. attributed to the flourishing agricultural sector.
Summer in Kolhapur is comparatively cool, but Though the population showed an increase in
more humid, compared to its neighbouring 1981-1991, the growth rate fell from 31.26% to
inland cities. Maximum temperatures rarely 19.51%. The decadal growth rate has not
exceed 38°C and typically range between 33°C increased drastically since. Industrial
to 35°C. Lows during this season hover around developments on the outskirts of the city have
24°C to 26°C. Though temperatures are rarely not contributed to the city’s increase in
as high as in inland Maharashtra, high humidity population. This may be because the majority of
often makes the weather extremely unpleasant industrial workers hail from adjoining areas. The
and muggy. population growth of Kolhapur since 1901 is
given in Table 1.
The city receives abundant rainfall from June to
September due to its proximity to the Western Table 1: Population Growth of Kolhapur
Ghats. The heavy rains often lead to severe Increase/ Decadal Growth
flooding in these months due to overflowing Year Population
Decrease Rate
dams like Radhanagari. Temperatures are 1951 136835 43803 47.08
relatively low in this season and range between 1961 187442 50607 36.98
23°C (minimum) to 30°C (maximum). Kolhapur
experiences winter from November to February. 1971 259050 71608 38.20
The winter temperatures are significantly higher 1981 340036 80986 31.26
compared than that prevailing in other cities in 1991 406370 66334 19.51
Maharashtra such as Pune and Nasik. Lows 2001 485183 78813 19.39
range from 14°C to 16°C while highs are in the
range of 29°C to 32°C. Humidity is low in this Source: Census of India
season, rendering the weather pleasant. Population Grow th Rate
35.00
2.4 LINKAGES AND CONNECTIVITY 30.00

25.00
Kolhapur is recognised as an important religious 20.00
and commercial centre of the region and is well-
connected by road, rail and air. It is located at a 15.00
distance of 395 km. from Mumbai, the capital of 10.00

Maharashtra and 235 km. from Pune. The city is 5.00
well-connected by a road network with the NH-4
-
passing through it. Kolhapur terminus station is
1971-81 1981-91 1991-01
also the centre of southern railways. It has an
airport at Ujalaiwadi, located near NH-14. The
city is popularly known as the “Door of Konkan” The population density stands very high at 7261
with the western coastal line only 75km. away. persons/sq.kms., which is 25 times the state
It is an important linkage between Konkan and density and 17 times the district density. This is
the rest of the state. mainly because the boundaries of KMC have not
been expanded since 1977. The city has a good
2.5 DEMOGRAPHIC PROFILE literacy rate of 90.2 %, which is significantly
higher than the state average. Scheduled tribes
The knowledge of basic demographic trends is form only 0.3% of the city’s total population. The
essential to sort out the problems and exact city also has a fair sex ratio, which is just above
needs of the area. It provides ideas regarding the state average.
the habitation of people and their basic
requirements, which the authorities should
consider while planning the city.

Table 2: Demographic indicators

Demographic Indicators State District Kolhapur City
Population 2001 9,68,78,627 35,23,162 4,85,183
Area (sq. km.) 308000 7685 66.82
Density (persons / sq. Km.) 315 458 7261
No. of households 1,95,76,736 7,12,349 1,02,300
Average Household Size 4.9 4.9 4.7
Sex Ratio - Females per 1000 Males 922 949 926
SC Population as Proportion to Total Population (%) 10.2 12.76 12.5
ST Population as Proportion to Total Population (%) 8.9 0.6 0.3
Literacy Rate (%) 76.9 76.93 90.2

3 ECONOMIC BASE OF KOLHAPUR
Kolhapur district is the southernmost district of Maharashtra and Kolhapur city is its headquarters. The
city is situated on the banks of the river Panchganga and is known as Dakshin Kashi. Being the
headquarters of the district, the city’s economy is directly related to the economy of the district.
The growth of the district in modern times has been fascinating. Chhatrapati Shahu Maharaja was the
architect and founder of modern Kolhapur. The district is abundant in natural resources -- water, soil,
natural vegetation, animal wealth and minerals. As a result, Kolhapur is one of the most agriculturally
advanced districts of not only Maharashtra but also India. It is fast becoming an industrialized district as
well and has already emerged as a front-runner in agro-based industries. It is one of the shining
examples of the co-operative movement of India. The district has the highest per capita income in the
state of Maharashtra. Kolhapur has a distinct culture, developed as a result of its rich history and its
quality of people who have been front-runners in various fields. Kolhapur is famous in the country for its
production of jaggery, Kolhapur chappals, silver jewelery, and Indian wrestling.
3.1 AGRICULTURE AND AGRO-BASED 3.1.2 TRADE IN AGRICULTURE COMMODITIES

INDUSTRIES
The setting up of the Kolhapur Agriculture
The economy of Kolhapur is highly dependent Produce Market Committee (APMC) in 1945 and
on agriculture. Location on the Deccan Plateau, the Gadhinglaj APMC in 1948 was a major
the rich black soil and the availability of water landmark in the marketing history of the
make Kolhapur highly suitable for agricultural Kolhapur District. There are 12 talukas in the
activities. Agriculture is the main contributor to Kolhapur District, of which the APMC jurisdiction
the economy of Kolhapur. Its sugarcane industry covers Karveer. Shahupuri Peth and Pirajirao
contributes to over 5% of the sugarcane Peth are the two main marketing centres of
produced in the country and accounts for a western Maharashtra. The major commodities
significant share of sugar, jaggery and baggase traded at the APMC are jaggery, onion, potato,
produced. The city is also an important trading groundnut pods, tomato, cabbage and garlic.
centre for agro-products like jaggery, sugar, The bulk of the trade involves Gujarat and
pulses, chillies, turmeric, and food grains. Mumbai. Also, commodities are exported to New
York. APMC’s market is currently located at
3.1.1 SUGARCANE INDUSTRY Laxmipuri; being in the centre of the city, it is
congested. Thus, a new market of 20 acres size
The economy of Kolhapur is highly dependent has been proposed at Tamblaywadi. 0 gives the
on the sugarcane industry. Kolhapur produces details of the turnover of APMC during the
6,02,70,00 metric tonnes1 of sugarcane. The period October2004 to September 2005.
well-known factories are Bhogavati sugar
factory, Kumbh kasari sugar factory, and Plate 3: Sugarcane field in Kolhapur
Chattrapati Rajaran sugar factory.
1
District Social and Economic Abstract 2003-04 (Published
by State Govt. of Maharashtra)

Table 3: Total arrivals of commodities at the APMC 3.1.4 KOLHAPUR’S COOPERATIVE MOVEMENT
Arrivals (Qtl. In
Year Value (Rs. In crores) Kolhapur is one of the districts leading the co-
lakhs)
operative movement in Maharashtra. This
2001-2002 37.69 279.74 movement has brought about revolutionary
2002-2003 14.52 158.43 developments in various fields of the district.
2003-2004 31.66 344.97 There are about 11338 co-operative societies in
the district with 35.13 lakh members. The total
Source: APMC share capital of these societies is Rs. 504.26
crores 2.
In order to support agriculture, necessary
warehousing facilities have been provided in Among various co-operative societies, the co-
Kolhapur. There are 249 godowns in Kolhapur of operative sugar factories, co-operative milk
which private parties own 68%. The total societies, co-operative banks, co-operative
capacity of the godowns is 87,069. The trading marketing societies, and the co-operative
in agricultural commodities provides spinning mills are playing a major role in the
employment to a large number of people. prosperity of the co-operative movement in the
Kolhapur district. There are 17 co-operative
3.1.3 MILK INDUSTRY
Plate 4: Milk Collection through a cooperative
The milk industry is well established in Kolhapur.
Five big units collect, cool, process and then
market milk. The total collection of milk amounts
to 3,105 lakh litres. The main cooperative dairies
are Warna, Gokul, Samruddhi, Mahalaxmi and
Morna; Bharat Dairy is one of the important
private dairies. The biggest dudh sangh is the
Kolhapur District Dudh Sangh, which collects
1,832 lakh litres of milk every day. The table
below gives the details of the various dudh
sanghs and their collections.
Table 4: Milk production units in Kolhapur
No of Collection sugar factories in the Kolhapur district with 2.84
Name of Unit lakh members. These sugar factories have a
members (1000’ litres)
Kolhapur Dist Govt Milk Prod. Union 2519 183230
total crushing capacity of 62.15 lakh metric
tonnes and produce 7.56 lakh metric tonnes of
Warna Dist Govt Milk Prod. Union 15508 89208 sugar.
Mayur Dist Govt Milk Prod. Union 700 35149
Shirol Dist Govt Milk Prod. Union 54 949 The Kolhapur district is a leading district in dairy
Dutar Unit 705 2007 farming; it boasts of milk production with huge
exports of milk and milk products. The setting up
Grand Total 19486 310543
of the dairies, Gokul, Warana and Mayur, is a
Source: District Statistical Abstract landmark in the economic development of the
district; the Gokul Milk Co-operative is one of the
biggest dairies in India. Warana is a classic
example and excellent manifestation of rural
creativity.
2
Source: Economic and Social Abstract 2003-04 (Published
by State Government of Maharashtra)

3.2 INDUSTRIAL ACTIVITIES Table 5: Details of industrial area - Kolhapur

Total
Total Distributed Functional
The Kolhapur industry mainly comprises sugar MIDC Area Area
Plots Plots Industry
(Ha)
industries, textile mills, engineering units and
SMAK Shiroli
foundry units. The industry lacks entrepreneurial 269.00 714 700 640
Mfg. Assoc.
capacity. This reflects a need for private Gokul Shirgaon
233.93 775 751 567
initiation and a new entrepreneurial vision. Mfg. Assoc.
Total 472.93 1489 1451 1207
3.2.1 LARGE AND MEDIUM-SCALE INDUSTRIES Source: MIDC, District Administration website
(www.kolhapur.nic.in)
As in March 2001, the Central Government has
granted permission for 277 medium and major The Kagal 5 star industrial estate comprising
industries in Kolhapur. Of these, 110 units have 3000 plots, spread over 1100 hectares has been
started production. The major units are 21 established near Kolhapur. Industries located in
spinning mills (private and co-operative), 15 around 300 to 400 plots are functioning
sugar industries and 21 textile mills. The currently. Besides, a textile zone in an area of
remaining 53 units are based on engineering 450 acres has also been proposed. Companies
goods, poultry, foundry, chemicals, animal like Raymond, Indocomm, Oswal Wardhman
foods, etc. The 110 units represent an and Kirloskar have shown a keen interest in this
investment of Rs. 563 crores and generate zone; some of them have already initiated the
employment for 55,000 people. process of setting up their plants. Also, a silver
zone in an area of 80 hectares has been
3.2.2 SMALL-SCALE INDUSTRIES proposed. In the Phase 1 and Phase 2 of the
development of the Kagal industrial estate,
As in March, 2001 Kolhapur district had 18,698 engineering and foundry industries such as
industries, generating an employment of around Anshul steel and Menon Casting are proposed.
one lakh. The major small-scale units As far as basic infrastructure of the estate is
manufacture auto spare parts, casting, concerned, water supply is sufficient. MIDC and
engineering job work, diesel engines and engine MSEB are in the process of ensuring power
parts, textile and silver ornament and chappals. distribution of 100 MW to this estate. The
During the period, 1950s to 1980s, the foundry development of roads and storm water drainage
in Kolhapur developed due to incoming business is underway. Also, a Common Effluent
from automobile industries in Pune. However, Treatment Plant (CETP) of 10 MLD will be
now industries in Pune are opting for backward started in the next six months to treat the
integration. As a result, this business has industrial effluent. For the infrastructure
diminished, limiting the growth of the foundry development of Kagal, MIDC has already spent
industry. Rs. 34 crores and plans to spend Rs. 20 crores
in the next two years.
3.2.3 INDUSTRIAL AREAS
The Shiroli Industrial estate covers 260
There are nine industrial estates in Kolhapur -- hectares. Of the total 730 plots in this estate,
two Maharashtra Industrial Development around 650 plots have been sold. 635 industries
Cooperation (MIDC) areas and seven are currently functioning in this area. MIDC has
cooperative industrial estates. Altogether, 1,207 spent about Rs. 6 crores on providing basic
units function in the two existing MIDC areas. infrastructure in this area. The major industries
The details of the same are given in the table in this estate are Menon Casting, Manograph
below. Industries, Lokmat, Kolhapur Steel, Saroj Iron
Industry, Sriram Foundry, Mahalaxmi Masala
Products, Bharat Udyog Ltd. and H.J.Iron.
The Gokul Shirgaon industrial estate is spread

over 220 hectares. It has 850 plots of which 800
are sold. 750 industries function in this estate,
most of them relating to engineering and
foundry. The major industries are Gokul,
Eurotex, Menon Bearings and Indocount.

As far as cooperative industrial estates are 284,000 in FY 1999-2000 to a projected

concerned, the Government has approved 1,287,000 in the FY 2005-06. is this the growth
seven estates. 2140 plots have been issued, of in Kolhapur.
which 1,272 are functional; 44,850 workers are
engaged in these estates. One of the significant patterns of this growth is
that it is not limited to specific products or
The Kolhapur industry is a source for OEMs services and to specific areas or regions.
(Original Equipment Manufacturers) outside Observers say that the IT-ITES industry in India
India. It has the potential to emerge as an is experiencing its third wave of growth. In the
engineering component exporter. first phase, the industry was dominated by
captive centres of large multinationals such as
3.2.4 PROPOSED PLANS GE, American Express and Swiss Air, who set
up operations in India. In the second phase, the
MIDC has proposed four estates, located at growth attracted numerous entrepreneurs (in
Kagal, Gadhinglaj, Ajara and Chandgad. Also, many cases, employees of multinationals who
the State Government is planning to set up an quit their jobs to set up their own IT-ITES
exclusive silver zone at Hupri near Kolhapur. ventures). The third phase is geographically
Hupri town is already famous for its silver dispersed with new locations emerging on the
jewellery, fine craftsmanship and superior horizon.
designs being the hallmarks of Hupri jewellery.
The town already boasts of some 2,500 This movement has been because of the
silversmiths and another 20,000 craftsmen who following:
are dependent on this trade. The size of the
The need for Business Continuity planning,
industry is put at Rs. 125 crore and the finished
to pre-empt the exposure to a particular
goods are in demand across the country.
city, which has forced most companies to
Currently, the business is scattered across Hupri
diversify to alternate locations.
as there are concerns about pollution due to
overcrowding. The silver zone will offer larger Improvement in key infrastructure areas like
space for the production of ornaments, where power, telecom bandwidth and real estate
traders from all over the country can come and in newer locations
do business in an organised manner. The desire by state governments to attract
investments, which has resulted in
The following projects have been planned by attractive policy environments and
MIDC: incentives being offered
Roads and water supply- Rs. 10 crores The need for ITES companies to lower
operating costs especially employee costs
Concretisation of roads – Rs. 40 crores and attrition.
Common effluent treatment plant – Rs. 17
crores 3.3.2 KOLHAPUR, AN IT DESTINATION
Effluent collection pipelines- Rs. 2 crores
Citizen facilitation centres, street lighting, Based on the above discussion, we can infer
etc. -- Rs. 5 crores that IT companies are ready to move/ expand
into newer locations provided they can generate
3.3 INFORMATION TECHNOLOGY INDUSTRY a substantial cost benefit out of the new location.
These cost savings and benefits could be
because of:
3.3.1 POTENTIAL OF KOLHAPUR IN IT
1. Manpower Availability/ Less Cost
The Indian Information technology Industry is on 2. Ease of starting operations/ plug and play
a phenomenal growth path. The revenue has environment
increased during the last three financial years 3. Favored Government Policies
with a Compounded Annual Growth Rate 4. Cheap Real Estate Cost/ Availability
(CAGR) of 30%, growing from $21.6 Billion to
$36.3 Billion during the period. The total direct We need to assess the status of Kolhapur in
employment in the Indian IT-ITES sector is each of the above parameters:-
estimated to have grown by over a million, from

Manpower Availability Ease of Starting Operations/ Plug and Play

Environment
There is adequate availability of skilled
manpower in Kolhapur. There are four 1. Developed Real Estate
Engineering Colleges in Kolhapur and adjacent.
MIDC IT Park: MIDC has created IT
For the manpower needs of the IT industry, we
Park in Kolhapur. Total Area of IT Park
should consider the students in the Bachelor of
is 10 acres. Built-up space 27,662 sq.ft.
Engineering course with specialisations in
and open plots are available as per the
Computer, Information Technology and
requirement for IT units. The various
Electronics. Accordingly the offering of seats by
facilities offered to the customers are: -
these institutes is listed in Table 6.
Plug and Play environment for start
Plate 5: Kolhapur IT Park up units
Server Co-location
Consulting for setting up 100%
export oriented unit
High speed data link
IT Park- Privately Developed: The
Promoters and Builders Association of
Kolhapur (PABK) consisting of more
than 25 promoters and builders are in
the process of developing the first phase
of an IT park in Kolhapur. The area
designated in the first phase is 22
Acres. An International property
consultant Knight Frank has been
appointed for the marketing of the IT
Park. The project expected to be
Table 6: Engineering Institutes and no. of graduates completed within the next two years.
Name of Institutes Seats
D Y Patil College of Engineering and Technology 120
2. Power availability: The power situation in
Kolhapur Institute of Technology 180 Kolhapur region is reasonably good, in
D.K.T.E Society’s textile and engineering Institute, terms of the negligible demand supply gap
240 at present. The distribution losses are also
Ichalkaranji (Dist. Kolhapur)
Tatyasaheb Kore Institute of Engineering and in the region of 11%, which is very good as
150
Technology, Warnanagar (Dist. Kolhapur) compared to the averages for the state and
Total 690 India. Is there any proposal for IPP in the
privately developed parks
In addition to the above degree courses there
are 6 other technical institutes, together 3. Bandwidth availability
accounting for 300 Masters of Computer
Internet Service Providers: There are
Applications students and 200 Bachelor of
three Internet Service Providers in
Computer Application students. There are also
Kolhapur namely; Software Technology
an estimated 300 Diploma engineers being
Parks of India (BSNL), Bharat Sanchar
churned out of these institutes. Additionally the
Nigam Limited (VSNL), Videsh Sanchar
adjacent districts of Kolhapur, namely Sangli,
Nigam Limited.
Ratnagiri and Sindhudurg, can provide a
Optical Backbone: BSNL has started
substantial number of skilled manpower
implementing a project for point to point
(especially Sangli).
fibre connectivity between all major
commercial areas of Kolhapur. The
project is expected to be completed
within the next six months.
WiMax: BSNL has started implementing
a project for developing WiMax
infrastructure in the city. WiMax is the
technology which makes the

intermediate stage of data transfer that iii. Ensuring reliable and quality
is till the point from where individual power supply round the clock in
connections are given, completely wire IT Parks by permitting unlimited
free. It is also the first step in making the back up power, Captive Power
major areas of the city Wi-Fi. WiMax Generation and status as
extends beyond the visual horizon and Independent Power Producers.
therefore is more extensive in terms of
iv. Levying of power charges on IT
reach than radio based platforms.
and ITES units at industrial
rates and notifying IT and ITES
4. Locational advantage: Kolhapur is
units as a separate category of
recognised as an important religious and
consumers through MERC.
commercial centre of the region and is well
connected by road, rail and air. It is located v. Exemption of IT & ITES units
at a distance of 395 km. from Mumbai, the from statutory power cuts in
capital of Maharashtra and 235 km. from power supply.
Pune. Kolhapur is 549 Kms from Bangalore
and 412 km from Hyderabad. It is thus more Development of skilled manpower
or less equidistant from the major IT hubs in pool
the country. The city is well connected by a
vi. Ensuring ready availability of
road network with the NH-4 passing through
skilled manpower certified by
it. Kolhapur terminus station is also the
Maharashtra Knowledge
centre of southern railways. It has an airport
Corporation and other training
at Ujalaiwadi, located near NH-14. The city
institutions/companies.
is popularly known as the “Door of Konkan”
with the western coastal line only 75 km. vii. Making available infrastructural
away. It is an important linkage between facilities of schools of Municipal
Konkan and the rest of the state. Councils, Municipal
Corporations and Zilla
a. Government Policies
Parishads to IT and ITES
Central Government Policies: The
Companies for conducting
Ministry of Information Technology,
training programmes in ITES
Government of India has declared
related subjects and English
several policies for the promotion of IT
language skills.
industry. These policies take the form of
simplified procedures for establishing a
Industry friendly and supportive
new unit, specific foreign investment
environment
policies and guidelines for the IT sector,
fiscal incentives etc. There are special viii. Relaxations of the provisions of
policies, schemes and incentives various industrial and labour
announced for the units in the Special legislations
Economic Zones, Export Processing
Zones and Software Technology Parks. ix. Declaring IT and ITES units as
public utility services and
State Government Policies: The essential services.
Maharashtra State Government has x. Constitution of a Committee
promulgated the Maharashtra IT-ITES under the Chairmanship of
Policy 2003. The salient features of the President, NASSCOM for
policy are as follows: drafting a Data Protection and
Consumer Privacy Act.
Development of Infrastructure
xi. Notifying IT & ITES units as
i. Promotion of IT parks, both continuous process units.
public and private
ii. Cost effective and fully reliable Fiscal Incentives
telecom connectivity to the IT & xii. 100% exemption on stamp duty
ITES units all over the State. for units in public IT parks (in

case of private IT Parks, the 3.3.3 ESTIMATION OF THE POTENTIAL SIZE OF THE
exemption is 75%. IT INDUSTRY IN KOLHAPUR
xiii. Charging of Sales Tax at
There are a lot of inputs that determine the
minimum floor rate of 4% on all
potential size of the IT industry in Kolhapur,
IT products and non-IT products
these inputs are:-
essential for IT and ITES Units
as approved by the Empowered a. Nature of companies established (IT or
Committee. BPO-ITES)
b. Volume of manpower
Support to IT-ITES units by the c. Size of companies being established
Urban Local Bodies d. Area available for such industries
e. Infrastructure support- power, residential,
xiv. Issuing Government directions
transport
to all Municipal Corporations for
exempting imported capital
Maharashtra contributes around 30% to the total
goods and raw materials of IT
and ITES units from levy of size of the Indian IT-ITES industry, thus
Octroi or Tax on entry of goods. generating around Rs. 380 Billion in revenues
(Estimated for the current Financial Year). The
xv. Issuing Government directions IT sector as a whole is observing a revenue
to all Municipal Corporations growth of 33% CAGR. The number of IT-ITES
and Municipal Councils for companies in Maharashtra is around 1200.
levying property tax on all When we factor in the CAGR of the industry, we
establishments/properties/buildi can infer that around 100-200 IT-ITES units are
ngs/premises of IT and ITES being set up every year in Maharashtra, of all
units on par with residential sizes. This growth is presently concentrated
premises. around Mumbai and Pune. Out of this growth,
Kolhapur if positioned and marketed as an
xvi. Grant of 100% additional Floor
attractive IT destination can attract a gradually
Space Index to all IT and ITES
growing share
units in public IT Parks.
xvii. Grant of 100% additional Floor Project size of IT industry in Kolhapur
(based on assum ption)
Space Index to all IT and ITES
units in private IT Parks of 700
R s . c ro re s Investment Revenue
640
specified sizes by paying certain 600
premium. 500
420
xviii. Issuing of permission to erect 400 370
towers and antennae as part of 300

280
building plan approval 200 150

180
10 0
5. Local Policies: The Kolhapur Municipal
Corporation has, along the lines of the 0
2 0 10 2 0 15 2020
state government’s IT policy 2003,
decided to give concessions to promote Companies which would be interested in
the establishment of IT industries in the establishing units in Kolhapur can be: -
city. The concessions offered include
charging property tax at residential 1. Small and Medium Start ups
rates, total exemption of Octroi tax on 2. Small and Medium sized units of existing
capital goods and 100% FSI for the companies
construction of buildings.
There is an existing IT park developed by MIDC
covering an area of 10 acres with a built up area
of 27,662 sq.ft. There is a proposed IT park
being developed by the Promoters and Builder’s
Association of Kolhapur (PBAK) covering, in the
first phase, an area of 22 Acres. Moreover the

members of PBAK collectively have a land bank The constraint can be the available manpower.
totalling 700 acres, which they intend to pool into There are around 1500 IT, Computer and
the IT park in subsequent phases depending Electronics Engineers, Diploma holders and
upon the feedback from the first phase. These MCAs churned out of the colleges in and around
two facts lead us to infer that at present, land is Kolhapur annually. As per NASSCOM in India,
not a constraint to the growth of IT sector in around 56% of engineering professionals are
Kolhapur. absorbed by the IT-ITES industry, as shown
below
Table 7: Projected number of professionals to be absorbed in IT-ITES industry

2003-04 2004-05 2005-06 2006-07 2007-08
(Projected) (Projected) (Projected)
No of engineering graduates 316,000 365,000 441,000 501,000 536,000
Degree (four years) 139,000 170,000 222,000 270,000 290,000
Diploma & MCA (three years) 177,000 195,000 219,000 231,000 246,000
*No of IT professionals 179,000 201,000 246,000 280,000 303,000
Percentage 57% 55% 56% 56% 57%
Source: NASSCOM statistics
Particulars
The proposed real estate available for IT-ITES Total investment projected Rs. 90 Crs
industry will be around 32 acres, assuming a Average Revenue Generation/ Per Person/
density of 150-persons/ acre; the estimated Per Annum
BPO- Rs. 6.35 Lakh
employment of about 4500 can be generated in
IT- Rs 14.44 Lakh
the currently available real estate. Based on the Based on Nasscom figures for the IT-ITES
manpower available and the fact that the build industry for the IT and ITES, 2005-06
up of the IT sector in Kolhapur will be initially Total Revenue Generation Rs. 160 Crs
slower than the growth rate of the industry,
because of the initial inertia of the industry to Based on the assumptions given below, we can
locate in new area, we can potentially target project the size of IT industry in Kolhapur as
employment of 2000 people in the next three shown below: -
years.
Kolhapur will attract small and medium players,
Moreover as mentioned earlier, the entrants initially, with average capacity of 400 persons.
would be mainly small to medium sized start ups
or small to medium units of the existing 1. The current revenue growth in IT-ITES
companies. The small to medium sized units industry is nearly 28%, with exports
would have capacities ranging from 200 to 500 registering 33% growth (Nasscom figure).
seats. Thus based on the projected employment However when we are talking about a 10-20
of 2000, there might be 5 new units with average years planning horizon, a year on year
capacity of 400 each. Thus the potential of growth of 20% is a more realistic
Kolhapur in the next three years (2007-2010) assumption. Therefore the same has been
can be computed as follows (based on the given used for the projections
assumptions) 2. The per capita/ per annum revenue
generation figures have been calculated on
Table 8: Assumptions for projecting size of IT industry the basis on last three years employment
Particulars and revenue figures (Nasscom).
Total projected employment 2000
Average capacity (for a small/ medium unit) 400 3.4 THE ART AND CRAFTS INDUSTRY
No. of units (BPO- 4, IT-1) 5
Average Investment Required for small/
medium units Kolhapur is known for its art and handicrafts.
BPO- $ 2 Million One of its sovereign gifts to the world is the
IT/ ITES- $ 12 Million Kolhapuri chappals (slippers), which are
Based on Nasscom figures for the IT and manufactured by skilled people dedicated to the
ITES, 2005-06 art. There are about 15 co-operative societies of

Kolhapuri chappals manufacturers in the district. based country. Also, there are several leather
5,633 units engaged in the manufacture of tanneries; so processing is not a problem.
Kolhapuri chappals, employing 22,500 artisans, However, this is largely a family business and
of which 10% are women artisans. Nearly 80% the recent generations are not interested in it.
of the units manufacture items for dealers who This poses a threat to the continuity of the
supply raw materials to these artisans. business. The Kolhapur chappal industry has
always been a cottage industry wherein the
The Kolhapur chappals are divided into two family works together. Men work on getting the
major categories: (i) Export variety, and (ii) chappals ready and the women do the finer
Fancy variety. The export quality chappals are designing. This occupation has been passed
mainly produced in Miraj, Jat and Kawathe- down from generation to generation. However,
mahankal of the Sangli district, while the fancy today, the young generation is not inclined to
variety is mainly made in the Kolhapur district. follow this profession, resulting in a shortage of
The total production of the export variety of artisans.
Kolhapuri chappals is estimated atRs.2 crores
and that of the fancy variety at Rs 10 crores The Leather Industries Development
Corporation of Maharashtra (LIDCOM) gives
cash subsidies to the artisans. However, this
Plate 6: Kolhapuri Chappal
practice has had negative effects as once the
artisans get the cash, they become relaxed and
this affects their work, besides leading to social
evils like drinking and beating.
Plate 7: Silver Jewellery
annually.
Many devotees visit Kolhapur for Goddess

Mahalaxmi’s darshan and on their way back,
purchase Kolhapuri chappals at Kolhapur. In
Kolhapur city, the centrally located Shivaji
Market has a concentration of 150 shops of
which about 50% exclusively deal with Kolhapur
Chappals. 40% of the production of the fancy Kolhapur is also famous for its silver
variety is sold locally and the rest in Mumbai, ornament industry. It started at Hupari in 1904
New Delhi, Ahmedabad, Bangalore and other and soon, the Kolhapur district became well
commercial centres in the country through known for silver ornaments in India. The
dealers and state emporiums. The chappals are principal items of production are payal (anklets),
mainly exported to France, China, Japan and necklaces, bracelets, eartops, earrings, rings,
Australia. pendants, kamarpatta, key-chains, bangles, etc.
The main problem of the industry is the
This art and crafts industry has been a very fast availability of its basic raw material, silver.
growing business. Procuring the needed raw
material is not a problem as India is an agro-

Silver artware is one of the traditional crafts of Known for its Mahalaxmi temple, the city attracts
Maharashtra, flourishing even today. The major around 30 lakhs of religious tourists every year.
Current level of tourism infrastructure in Kolhapur

Amenities: Restrooms in major tourist spots, but Connectivity: Road, Rail and Capacity: The present capacity
inadequate, Tourist shopping centers, Air- are developed to meet of the hotels in Kolhapur is
today’s standards and is around 50 rooms of 3-star
constantly being upgraded, category, 250 rooms of 2 star
Cultural show (Lavanya sandhya) along with tour of under the National policy for category and 250 rooms of
the city organized for the Deccan Odyssey tourist. tourism. budget category.
Advent of Deccan Odyssey has motivated the tourism
sector of Kolhapur.
Multiplex, theatres, shopping malls, recreational zones
such as parks, go-carting, golf course, adventure treks
and trails, cultural shows – Lavanya sandhya , folklore-
Lavani, Powada, Vasudev, Ovya, Gondhal, festivals –
like Ganeshutsav, Dassera, Tripurari Pornima, etc.
craft pockets are Kolhapur, Nasik and Pune. In The average daily floating population is over two
all, around 500 artisans employed in about 200 lakhs, which drives the demand for hospitality
units in these districts, produce artware valued services, tour and travel operators. The city has
at Rs. 80 lakhs. The major problems are the radiant folklore such as Gondhal, Vasudev,
ever-increasing price of silver and the wages of Powada, Lavni and Ovya. The city is also
the skilled artisans who are attracted towards known for celebrating colourful festivals on a
other trades, otherwise. grand scale such as the Ganeshotsav, Dussera,
Jotiba festival, Tripuri Purnima and Trimboli
Creative toys for children like numerical toys, Yatra.
alphabets, geometrical and arithmetical figures
are produced at Kolhapur. These toys are Plate 8: Shri Mahalaxmi Temple
produced using lightwood coated with lacquer.
The total production of these toys at Kolhapur is
estimated at 1.5 lakhs.
3.5 TOURISM POTENTIAL
The city of Kolhapur with its rich legacy, tradition

and culture has the potential for being an ideal
tourism destination. The presence of the
Mahalaxmi temple, palaces, the various arts,
delicious cuisine and rich culture make the city a
prosperous tourist destination. Besides the places of religious interest, there
are several palaces and hill stations in and
The present tourist spots in and around around Kolhapur which need to be marketed to
Kolhapur are as follows: attract tourists. These places are detailed in
Religious; The Mahalaxmi Temple, Jotiba annexure 13. Presence of a well developed
Temple, Narsobavadi, Khidrapur Temple, – infrastructure for tourism is one of the essentials
attracts a large number of pilgrimage. Plate 9: Famous for Wrestling
Heritage; besides the above sites, Bhavani
mandap, Bhavani temple in the Old Palace, New
Palace, Shalini Palace (only Palace hotel of
Maharashtra), Town hall museum, University
Campus are some of the frequently visited
attractions.
Natural Scenic Spots; lake Rankala,
Panchaganga Ghats and riverfront, Fort
Panhala, fort Vishalgad (out of the 6 forts),
Amba, Gagan Bavda, Barkhi, Radhanagari,
Dajipur, etc.

for exploiting the latent tourism potential of a Ancient forms of sports have been cherished
city. and pursued in Kolhapur. Wrestlers of Kolhapur
are famous around the world. Here, young rural
3.6 OTHER AREAS boys enroll in the wrestling arena. They are
trained by masters who are called Vastads.
Kolhapur can be regarded as one of the main More than 40 wrestling arenas known as Talims
and pioneering centres of the film industry in are functioning in the city. A government-aided
Maharashtra since the 1930s. Social, historical wrestling training camp is also situated at
and mythological films, mainly in Marathi, are Kolhapur. Various competitions are conducted
produced here. The city has two well-known film every year in which the wrestlers participate and
studios -- Jayaprabha studio and Shantikiran win huge sums of money. Other famous sports
studio. in Kolhapur include mallakambh, buffalo fights,
Kombada zunj, sathmari, Mardanj khel and
buffalo race.
3.7 DIRECTIONS FOR GROWTH
The above analysis indicates that the future growth of the city depends on its adoption of the following
strategies:
Creating new economic drivers by exploring the tourism potential of the city and providing a strong
IT base in the city.
Building on its present strengths in the areas of engineering industry, agriculture and agro-based
industries and the arts and handicrafts industry.
Consolidating and retaining its position in the fields of engineering, agriculture, trade and agro-
processing industries.

4 KOLHAPUR -- CITY ASSESSMENT
To formulate the City Development Plan, an assessment of the existing situation in Kolhapur town has
been carried out with respect to basic infrastructure (physical and social), physical and environment
aspects like land usage and pollution levels, and the financial status of the municipal council. The
demographic and economic aspects of Kolhapur have already been discussed in the previous chapter.
The objective of the analysis provided in this chapter is to make a realistic assessment of where the town
is, the direction in which it has been moving, and its strengths and weaknesses.
4.1 URBAN PLANNING AND DEVELOPMENT 4.2 URBAN BASIC SERVICES
The first development plan for the city was The principal function of KMC is the provision of
sanctioned in the year 1977 and was prepared basic services to its citizens. Municipal services
for a period of 10 years till 1987. This plan was have a direct and immediate effect on the quality
modified in the year 1987-89 and was of lives of people in the city. Poor municipal
considered for development for the years 1991- service can also make it difficult to attract
2011. As per the 1997 plan, the city had business or industry to an area and thus it can
recorded 35.08% developed areas, which had limit job opportunities for residents. Capability
increased to 41.36 % in 1989, i.e., an increase building, corporatisation, and partnerships in
of 30.67%. The figure gives a representation of municipal services are some of the key reforms
the land use pattern proposed by the current required to improve municipal service delivery.
development plan. Therefore, the biggest challenge for the
municipal council is to provide its citizens with
It is proposed to develop 67% of the total area. reliable services that are financially and
Of this, a major part will be residential (35%) environmentally sustainable. This section details
followed by recreation and entertainment (29%). the quality of urban services offered by KMC to
its citizens. The areas covered in the section
Proposed Land use - 2011 include water supply, sewerage and sanitation,
2%
2% storm water drainage, solid waste management,
35% street lighting, and roads and public transport.
4.2.1 WATER SUPPLY SYSTEM

29%
The city of Kolhapur gets a raw water supply of

128 MLD, of which the Corporation supplies 120
Residential MLD and 8 MLD is obtained through ground
Commercial water sources. The city has three sources of
Industrial
8% 2%
3% water – the Bhogavati river (8 km.); the
Public utilities
1% Panchganga river via Bawada (6 km.) and via
Public & Semi- public 3%
Recreation/ Open spaces
15% Shingnapur (11km.); and the Kalamba tank
Transportation/ Circulation (3km.). There are 809 borewells in the city,
Agriculture withdrawing 8 MLD of water. In summers, water
Water bodies is supplied by tankers to scarcity areas and also
Special Area/ Defence
to those areas where there is no pipeline
network. KMC is unable to run Bawada water
works to its full capacity of 36 MLD resulting in
shortage of water to “E” ward. This is primarily
due to major polluted nallahs like Jayanthi and
Dhudhali carrying waste water and sewage from
the unsewered parts of the city and dumping it

into the Panchganga River. This has been 695 borewells with handpumps/ submersible
causing pollution of the river downstream. The pumps have been installed on these wells. The
Bawada water works is located on the Corporation charges the users depending upon
downstream side of the confluence of the their consumption. The volumetric rate per
polluted nallahs with the river. “E” ward of the thousand litres is Rs. 7 for domestic
city, which covers almost 40% to 50% of the connections, Rs.20 for commercial connections
population of the city, gets water from Bawada and Rs. 43 for industrial connections. This rate
water works. Hence this ward gets polluted was last revised on 1st April 2006. It is revised
water. every year depending on the increase in power
charges by the Maharashtra State Electricity
Plate 10: Water works in Kolhapur Board (MSEB). The details of water connections
are given in the table below.
Table 9: Water supply connection details
Connections 2001 2002 2003 2004 2005
Domestic 58276 54827 57169 60969 63952
Non- Domestic 1601 1740 1766 1798 1848
Industrial 630 727 836 811 825
PSP 1677 1698 1722 1905 2051
Source: KMC, 2006
Treatment
Distribution and Coverage
The city has four treatment plants with a design
The existing water supply scheme is designed capacity of 162 MLD, of which 119 MLD of water
for an expected population of 6.20 lakhs for the is utilized.
year 2011. For the proper management of water
supply, the city is divided into five wards, i.e., A, Water Quality
B, C, D and E. Water is supplied to citizens
through a network consisting of a distribution The water quality in the Panchganga River is a
system and various reservoirs located in major issue. MPCB had tested the water quality
different parts of the city. The distribution in January2006, the results of which are given in
network (400 kms. long) covers 80% of the city. 0. This data was analyzed as per the CPHEEO
Besides this, the main transmission main runs norms, and it was found out that the
for 57 kms. Distribution and transmission losses downstream water is highly polluted and can be
currently amount to 20% of supply. With respect used for irrigation and industrial purposes only.
to storage, the city has five ground level storage The pH norms are within the limit of 8.5.
reservoirs with a capacity of 15.1 ML and 16 However, as far as the Dissolved Oxygen (D.O.)
elevated storage reservoirs with a storage figures are concerned, they are extremely low as
capacity of 22.05 ML. compared to acceptable norms. At the
Plate 11: Puikhadi WTP 60 mld
upstream, the D.O. figures fall in the “A” class
indicating that the water is potable, but, at the
downstream, the D.O. is merely 1.2, i.e., “E”
class, showing that the water can be used only
for irrigation purposes. Similarly, the BOD
figures at the upstream are within acceptable
limits in the “A” class whereas at the
downstream they are very high and fall in the
D/E class. Thus, we can observe that the water
gets highly polluted when it reached
downstream.
The city has 66,625 connections, all of which are

metered. Besides this, KMC has set up 2,051
Public Stand Posts (PSPs) in the city. Further,

Table 10: Water quality parameters STP at Kasaba Bawada has already been taken
Parameters Upstream of Downstream of up by KMC.
Kolhapur Kolhapur
Temperature 20 20 The city has been divided into four zones --
pH 8.4 8.42 Dudhalli nallah zone, Jayanthi nallah zone,
D.O. 6.9 1.2 Bapat camp zone and Line bazaar zone. The
B.O.D. 1.8 3.8 current sewerage has 30% coverage, which
Conductivity 228.0 349.0 mainly comprise the Gaonthan area. The city
Coliform fecal 17.0 6.0 also has 22,000 septic tanks.
Total coliform 130.0 80.0
Nitrate 1.1 1.5 KMC is also spending a considerable amount on
Nitrite 0.12 4.15 pumping the sewage generated at three different
Source: MPCB Report on Pollution of Panchganga River, 2006 nallahs to the STP. KMC is therefore
contemplating decentralizing the STP facility and
Key Issues providing to all the three nallahs. This will help in
reducing the energy cost required for pumping
The current distribution system has coverage of the sewage from these three nallahs to the
only 20% of the city and is outdated. Bawada existing STP.
intake water works is facing a problem of
contamination due to intermittent discharges Plate 12: Nalla’s flowing in the city
from the Jayanti and Dudhali nallahs which meet
upstream of intake water works on Panchganga
River. This works supplies water to the “E” ward,
where around 50% of the population of Kolhapur
resides. Also, the pressure of supply is
extremely low, resulting in unequal and irregular
distribution of water. Another issue is that the
current water supply is designed for the
expected population up to the year 2011. There
is a need to augment and improve the present
water supply scheme.
Several water lifting schemes are being carried

out on the banks of the river Panchganga.
Consequently, as soon as water is released, the At present, sewage generated at the Dudhali
water is lifted resulting in fewer water supplies nallah basin is being pumped into the sump of
for Kolhapur city. Currently, although the the Jayanti nallah pumping station. The Jayanti
metering system exists, the meters are often nallah pumping station then pumps the
found to be tampered. Thus it becomes difficult combined flow of the Dudhali nallah and the
to charge correctly as per consumption. Jayanti nallah to the existing sewage treatment
plant at Kasaba Bawada, 5 km. away. There are
The pumping stations are in a poor condition two pumps of 20 HP capacities each in
currently, resulting in several leakages. There is operation at the Dudhali nallah to pump the
also a shortage of staff at these stations. The sewage; KMC is spending about Rs. 30,000 per
working environment at these stations needs to month as electricity charges for the same.
be improved.
KMC has already carried out a sampling
4.2.2 SEWERAGE AND SANITATION exercise to find out the characteristics of the
incoming sewage. The result of the same was
At present, Kolhapur city is generating about 75 provided by KMC for the designing of the
to 80 MLD of sewage. The city has a centralized proposed treatment process. The values,
sewage treatment plant (STP) at Kasaba particularly of COD and BOD, are less than the
Bawada of 45 MLD capacity. The sewage from normal values observed for domestic sewage in
Dudhali nallah is pumped to the Jayanti nallah Indian cities. The diluted sewage may be due to
and subsequently to the STP at Kasaba the nallah water, which flows into the sewage
Bawada. The case for upgrading the existing since no proper sewerage system exists.

However, KMC plans to implement a proper 1994, the city faced a jaundice epidemic due to
sewerage system. Once the sewerage system is the poor quality of water, which was lifted from
in place, the sewage may become concentrated. the Bawada water works in E ward.
Almost, all the wastewater generated in the city With increasing FSIs and increasing population,
is of the domestic type. Most of the small-scale the pressure on the city’s infrastructure has
industries in the city are foundry and turning- increased drastically. There are frequent pipe
based. About 5,000 litres of tannery wastewater bursts leading to sewage overflow. Also, the
is generated in the Jayanthi nallah drainage sewerage network is poor in the suburban
zone. areas.
Sanitation The disposal of sewage into the Panchganaga

and the absence of secondary treatment at the
The city has 416 public toilet blocks with 3,078 current STP results in river pollution. As a result,
toilet seats. For administration purpose, the city the downstream villages such as Ichalkaranji,
has been divided into 11 sanitary wards. Each Upri, Rendal, Patankodi and Rui get polluted
ward functions independently. water.
The major pollution load in surface waters in Decentralization of the sewerage system is
Kolhapur is due to municipal discharges difficult as the flood line of the river Panchganga
(sewage). The construction of a conventional is close to the residential area. Thus, there is
sewage treatment plant requires huge capital lack of land for the construction of STPs and for
costs (land requirement) and O&M cost; sewerage disposal plant. Also, there is a
therefore KMC cannot afford to dispose huge shortage of land for the disposal of treated
quantities of sewage. In view of the Supreme sewage. Currently, only 1,200 acres is available
Court's directives regarding treatment and safe for land irrigation, whereas 5000 acres are
disposal of urban solid and liquid wastes and the needed. The Development Plan also does not
directions of the Maharashtra Pollution Control reserve any land for STPs.
Board, KMC is planning to set up 25 MLD
sewage and a 25 TPD segregated organic Since most of the nallah are open and easily
waste treatment plant at Dudhali Nalla. The accessible, especially in the slum area, there is
proposed Biomethanation plant will generate large-scale indiscriminate dumping of organic
about 3,500 to 3,700 m3 of biogas, which is wastes in the nallah. This leads to choking and
equivalent to about 250 KW power for 24 hours. problems of suspended solid waste stagnation
The site currently identified for the at various points, the nuisance of flies and
biomethanation plant is at R.S.No.1267/4, 1262 mosquitoes, and prevalent foul odour. KMC is
and 1266. Approximately, 17,000 sq.m. (4 endeavouring to set up modern systems for
acres) of land will be made available for the efficient waste management and disposal, which
biomethanation plant and STP at the proposed can greatly reduce the pollution load on the
location. This is sufficient for the entire plant plus river. Setting up a combined treatment plant for
compost store. sewage as well as solid waste is one such
attempt.
Key issues
4.2.3 STORM WATER DRAINS
The current sewerage system covers only 30%
of the total area. Most of the buildings in the city The drainage system of Kolhapur constitutes of
have septic tanks, where from the sewage is rivers, natural channels and roadside drains.
disposed off into the three major nallahs, i.e., the The major rivers that flow near the city are the
Jayanthi nallah, the Dudhalli nallah, and the Line Panchganga and the Bhogavati. Tertiary drains
Bazaar nallah which further release the same are roadside drains constructed by the KMC for
into the Panchganga river resulting in the collecting and conveying storm water to the
pollution of the river. secondary and primary drainage network. 0
presents a summary of tertiary drains in within
The current STP undertakes merely primary KMC’s limits.
treatment of the sewage. Thus, the treated
sewage can be used for land irrigation only. In

Table 11: Details of drains in KMC area waste includes refuse from domestic colonies,
Drain Type Length (km) Breakup (%) commercial establishments, bio-medical or
Open Drains- Pucca 136.49 48% hospital waste and rubble construction activities.
Open Drains- Kutcha 131.05 46% Bio-medical waste is separately disposed off.
Closed Drains 16.61 6%
Total 284.15 100% Transportation of waste
Source: KMC, 2006
Currently, three types of curbside bins are being
4.2.4 SOLID WASTE MANAGEMENT used in Kolhapur from where the waste is
collected. These are -- R.C.C. square type,
Solid waste comprises unwanted and discarded R.C.C. open bottom and steel containers. The
materials from houses, street sweeping, and collection of the garbage is normally carried out
commercial and industrial operations. Rapid manually. This is done either with the help of
urbanisation, increasing commercial and collection trucks, which collect the waste from
industrial activities and changing life styles in the various bins and take it to the disposal site.
Kolhapur are observed to be leading to a steady Two refuse collectors and 20 trucks have been
increase in the generation of solid waste. allocated for the transportation of waste to the
final disposal site. 160 tonnes of waste is
collected and transported in this manner. Of this,
Quantum of Solid Waste Generation and
120 MT of waste is collected daily and 40 MT is
Composition of Waste
collected twice a week; a daily backlog of almost
60 MT of waste is generated everyday. The
The primary sources of solid waste in Kolhapur
details regarding the different types of vehicles
are local households, markets, commercial
used for transportation are given below.
establishments, hotels, restaurants, and
hospitals. The total quantity of waste generated Table 12: Fleet of Conservancy vehicles
is in the order of 170 tonnes per day (TPD) at a Type of Nos Capacity No. of Distances Waste
per capita generation of 342 grams per day. Vehicle (in MT) trips/day (Km/day carried
(in MT)
Collection of solid waste Truck 11 4.5 22 361 77
Truck 6 3 18 214 45
The estimated quantity of waste collected and tipper
disposed is about 160 tonnes per day, which Refuse 2 5 4 54 16
translates into a collection performance of about compactor
Dumper 2 2.5 20 140 20
86%. 1,050 conservancy workers are engaged
placer
by KMC and the waste is collected on a day-to-
day basis through sweeping and door-to-door Source: KMC, 2006
collection. 12,130 community bins have been
placed in the city for primary collection of Of the total waste generated, 121 MT of waste is
waste at a spacing of 300 meters. The handled manually creating hazardous
handcarts and wheelbarrows have two conditions. The routine arrangement of vehicles
containers, each of which has a carrying is done in a vehicle workshop that is operated by
capacity of 25 kg. the Municipal Corporation. The workshop is
provided with facilities for carrying out welding
Daily sweeping is carried out only at a few works, automobile maintenance and other
locations, while in most places; it is done on related works. Almost 40-45 trips are undertaken
alternate days. A total number of 90,000 houses by the vehicles to transport the garbage from the
are covered under the collection. The system of city to the disposal point.
door –to-door collection is prevalent in
approximately 30% of the city. Currently, there is Disposal of solid waste
no segregation of waste and the mixed form of
waste is directly picked up from the collection Currently, M/s Zoom Engineers have put up a
points. The collection of waste from dustbins is composting plant of 100 MT capacity, based on
done manually and with the help of ladders. For Municipal Solid Waste (MSW) on BOO. KMC
this purpose, refuse collectors and dumper has signed the MOU with M/s Zoom Engineers
placers with containers are used. City solid with respect to the project. The Kasaba Bawada

dumping site is located about five km. from the department. Also, the employees need to be
city with an area of one hectare. The dumpsites trained in composting, usage of modern
are not landfill facilities since they do not confirm equipment, segregation of waste, etc.
to any of the norms of a sanitary landfill such as
4. The existing deficiencies in the SWM system
Weigh Bridge, fencing, lighting, etc. There is no
are leading to the choking up of Nallahs,
provision for gas venting or leachate collection.
which meet the river. An introduction to new
Medical facilities and biomedical waste and modern concerns in terms of collection
and transport can reduce the pollution load
There are about 750 medical institutions in the occurring due to indiscriminate dumping and
city including private hospitals, nursing/homes transportation.
blood banks, circles, etc. In order to manage the 5. There are few garbage bins in the suburbs.
bio-medical waste, the Kolhapur Medical Also, the waste of the slaughterhouse is
Association (KMA) has formed a separate firm directly disposed off without incineration.
with the help of a private operator. KMC has
made available a 10,000 sq. ft. area to a private 6. Door-to-door collection of waste is low.
operator for setting up a bio-medical waste There needs to be 100% door-to-door
disposal and processing facility at Kasaba collection. At the same time, awareness
Sawada. This firm collects transports and needs to be created among citizens about
disposes the bio-medical waste generated by segregation and proper disposal of waste.
the participating hospitals through a treatment
facility. Specially designed autos collect the Implications of the Burman Committee
waste from the hospitals and transport it to the Report and Municipal Solid Waste
treatment facility. The disinfected material is sold (Management & Handling) Rules, 2000
to vendors and the incinerator ash is dumped in
the plant backyard. Due to the growing concern over the lack of
management of solid waste in ULBs across the
Privatization of solid waste collection and country a PIL was filed in the Supreme Court.
transportation system Supreme Court directed all the states in India to
submit reports on solid waste management. The
KMC has engaged a Nashik-based firm called Supreme Court appointed the Burman
“Adarsh Ghantagaadi” to privatise the collection Committee to review the solid waste
for the entire city of Kolhapur. The scheme management system and then give
covers door-to-door waste collection. The entire recommendations. Consequently acting on the
waste is being collected as dry and wet waste. recommendations Government of India
KMC has been paying Rs. 425/MT of waste thus formulated the Municipal Solid Waste
collected. (Management and Handling) Rules, 2000.
Issues related to deficiencies in the existing Under these rules ULBs are responsible for the
system waste segregation, collection, transportation,
process & management of solid waste. The
1. Due to littering of waste and absence of responsibility for implementation of these rules is
segregation, the drains get choked up entrusted to Secretary, UDD for Municipal
frequently. Corporations & District Collectors for the
2. A landfill site of 25 acres located in Municipal Councils. The rules impose a time
Halswade, which is 7 kms from the city bound schedule on ULBs for the
boundary, has been identified by KMC. The implementation, as indicated below
site has been sanctioned by GoM, but has
not been handed over to KMC due to the
filing of complaints by residents near that
site.
3. The solid waste management (SWM)
department has 1,100 occupied posts.
Around 200 posts are still vacant; thus there
is scope to build the capacity of the

Table 13: Schedule under the Municipal Solid Waste Natural Environmental Resources
Rules 2000
Compliance Criteria Schedule Kolhapur is founded in locations where nature
has offered various attractions such as rivers
Setting up of waste processing and By 31st March 2003
and lakes that could be used for water supply
disposal facilities
Monitoring the performance of waste Once in six months
and waste disposal, and in fertile river valleys
processing and disposal facilities with extensive food and animal resources.
Improvement of existing landfill sites in By 31st March 2001 1. Water Bodies
terms of these rules
Identification of land fill sites for future use By 31st March 2002 Rivers: Kolhapur is surrounded by Bhogavati
and preparing them for operations and Panchganga rivers which carry water for
most of the year. This water is used for
industries, irrigation and community supply.
In Kolhapur there is one existing dumping
site till date, which needs further
Bhogavati River: This is the tributary of
development to bring it to the status of a
Panchganga River and confluences at about 8
landfill facility as defined under the rules.
km on the east of the city to the Panchganga.
The second proposed landfill facility has This is the raw water source for the Balinga
been sanctioned by GoM, but has not been water works.
handed over to KMC due to the filing of
complaints by residents near that site till Panchganga River: This is a tributary of River
date. Krishna and is a source of raw water of the new
The estimated quantity of waste collection is Shinganapur water works and Bawada water
170 MT per day, collection is limited to 120 works. A ghat is developed on the banks of the
MT (on daily basis) and 40 MT (on twice a river near Shivaji Bridge.
week basis). Thus the collection efficiency is
around 86%. The exploitation of water from the river has
The processing of waste is limited to 100 sharply altered the river dynamics, destroying
MT per day fish populations and depriving downstream
The rules specifically state that the manual users of adequate and unpolluted supplies. The
handling of solid waste has to be avoided at city had constructed sewerage systems for
any cost, however in Kolhapur around 120 domestic wastes to replace cesspools and privy
MT solid waste is being handled manually. vaults and to improve local health conditions. It
discharges the treated/ partially treated sewage
into the river, polluting the water supply of
The above issues represent the gap that needs
downstream towns and villages.
to be filled before Kolhapur can meet the
standards as recommended by the Burman Lakes: There are six lakes in Kolhapur, namely
Committee and the consequent rules Rankala Lake, Kotitirth Lake, Hanuman Lake,
Lakshatirtha Lake, Raman Mala Lake, New
4.2.5 ENVIRONMENT STATUS Palace Lake. Description of the major lakes is as
follows: -
Kolhapur city is located in the south-western part
of Maharashtra and is endowed with extremely Rankala Lake: This lake was developed in
fertile soil and plenty of water. In the recent past 1887-1893. It provides for irrigation of about 80
the city has rapidly progressed from being a hectares of lands in and around the city. The
predominantly agricultural town to an industrial northern and the western banks of the lake have
city. Due to the increase in the internal been developed. The lake supports a wide
population and the rapid influx of people from variety of flora and fauna. It also has significant
surrounding areas the population of Kolhapur socio-cultural, aesthetic and recreational value.
has risen to 4,85,183 according to the 2001 Two major streams feed the lake from the
census, with a decadal growth rate of 19.39%. southern side. Kolhapur Municipal Corporation
has provided for tapping these two streams and
also to divert the sewage flowing into the lake
from the urban settlements.

Kotitirth Lake: This is a small bound lake It is necessary to provide treatment followed by
having a great historical value. Due to the disinfection before discharging those Nalla water
pressures of mass bathing, cloth washing, cattle to the river or used for irrigation. Decentralised
washing and sewage disposal, the lake is highly treatment for these nallas will prevent mixing of
polluted. The lake is also used for disposal of sewage in river without treatment.
religious waste and immersion of idols during
festivals. Rainwater and a few natural River Pollution- Panchganga River: Major
infiltrations are the source of water for this lake. factors causing large scale pollution of the river
are
Hanuman Lake: This is situated in Kasaba
▪ Upstream industrial activity, mainly sugar
Bawada area of Kolhapur. It is a very small lake
industries and distilleries
developed in 2002-2003
▪ Nallahs carrying sewage and effluent from
Sewage Treatment Plant of Kolhapur city
Table 14: Characteristics of lake water ▪ Settlements on the banks of the river on
Parameter Rankala Lake (mg/l) Kotitirth Hanuman the 35 km stretch between Kolhapur and its
Lake Feeding Lake Lake confluence with Krishna River.
water stream (mg/l) (mg/l)
pH 7.20 7.74 6.90 7.12 ▪ Groundwater seepages and overflows
Total 62.0 190.0 76.0 38.0
Solids
Table 15: River Water Samples of Panchganga at the
TDS 30.0 86.0 46.0 26.0
TSS 32.0 104.0 30.0 12.0
confluence of Nalla discharges
BOD 15.0 78.0 32.0 6.0
COD 24 124 52.0 8.0 Parameter Dudhali Nalla Jayanti Nalla Bapat Camp Nalla
DO 4.6 0.0 0.0 5.2 pH 7.35 7.13 7.26
Source: Environmental Status Report of KMC (2003-2004) BOD 11.87 14.33 19.13
TS 119.00 150.33 161
2. Tree Plantations and Gardens: Good TSS 45.33 60.33 64
coverage of vegetation including agriculture Chlorides 12.67 14.87 16.67
and grassland is observed on the banks of Source: Environmental Status Report of KMC (2003-2004)
the river, in the city. Out of total area of
66.82 square kilometres about 24.78 square
kilometres area is under agricultural sector Air Pollution: Kolhapur has changed its earlier
as per the current development plan nature of an agricultural township very rapidly
and has emerged as an industrial and
3. Hills : Tembalai hill is on the eastern side of commercial city. With economic development
the city. A famous temple of goddess ‘ came rapid urbanisation, increased pressures
Tryamboli’ is situated on the hill. Other three on the city’s infrastructure and natural
hills are on the outskirts of the city; resources. Moreover because of increasing
Chambukhadi and Batukeshwar on the population, the traffic density through out the city
north- western side and Pulekhadi on the has also substantially increased.
south-western side.
According to the Environmental Status report for
Environmental Pollution 2003-04, Kolhapur Municipal Corporation has
Water Pollution: Kolhapur Municipal identified certain areas where the concentration
Corporation does not have detailed data of particulate matter is higher than the ambient
regarding hydrology and pollution, quantity of air quality standards of the country.
sewerage generation and contributing to each
Nalla basin and treatment plant.
Topographically, the city can be divided into four Noise Pollution: Environmental noise has
natural drainage basins. These are: become one of the greatest sources of nuisance
a. Jayanti Nalla Basin in the city. Although apparently simple, the
b. Dudhali Nalla Basin subject of noise pollution is extensive and
c. Line Bazaar Nalla Basin complicated. According to the Environment
d. Bapat camp Nalla Basin Status Report for 2003-04, the following are the

areas with ambient noise more than the service during fire, floods, failure of buildings
applicable standards: - and such natural disasters.
a. Rajarampuri (East side part)- Residential
b. Shahupuri- Residential The department has 204 employees and basic
c. Nagala Park- Residential equipments like fire fighting trucks, ambulance
d. Tararani Chowk- Commercial etc. for use in case of disasters.
e. Dabholkar Corner- Commercial
f. Venus Corner- Commercial 4.2.6 URBAN ROADS AND TRANSPORT
g. Malkar Corner- Commercial
h. Gangavesh- Commercial The city of Kolhapur is well-connected through
i. Rankala Bus Stand- Commercial rail and road transport facilities and also has a
j. Udyamnagar- Industrial few flights connecting it to Belgaum and Mum
bai. It acts as a point for interstate transport
Bio Waste and Hazardous Waste routes between Maharashtra, Goa, Karnataka
Management and the southern states, and serves as a key
transport location. It is regionally well-connected
There are around 698 medical institutions to Pune, Sangli, Miraj, Ratnagiri and Nagpur. Its
including Hospitals with more than 500 beds (1 location on the National Highway (NH-4), which
No.s), Hospitals with 50-200 beds (9 No.s) and has been recently converted into four lanes and
other smaller units. All of these units generate may be converted to six lanes, provides ample
biomedical waste. Maharashtra Pollution Control opportunity for tour and travel services. It is a
Board has issued directives for registration of all well-developed city and is steadily developing
such unit under the Bio Medical Waste into an investment zone in the last few years. A
(Management and Handling) Rules 1988. five star MIDC, textile industries, an IT park, a
silver park are now being planned in nearby
There are 4 common Bio Medical waste areas within the district.
processing centres in Kolhapur and surrounding
sub regions of MPCB- The dominant public mode of transport is road
transport with shorter routes connected through
1. Sangli Miraj -Kupwad Municipal the public transport and longer routes being
Corporation (common Bio-Medical Waste applied by the intermediate public transport.
Treatment & Disposal Plant) Bedag Road,
Miraj, Dist.- Sangli. The routes most used and which generate the
2. M/s. Surya Central Treatment Facility maximum income are: Kolhapur – Mumbai,
Center , D-60, MIDC Miraj, Dist.- Sangli. Kolhapur – Pune, Kolhapur – Solapur, Kolhapur
3. M/s. DASS Enterprises, R.C. No. 206, – Bangalore, Kolhapur – Nagpur, Kolhapur –
C.S.No. 29/92 A, Kasaba Bawada, Dist.- Hyderabad, Kolhapur – Panaji (Goa), Kolhapur –
Kolhapur. Ahmedabad and Kolhapur – Indore.
4. M/s. S.S. Services, R.S. No. 638, C.S.No.
17695, Ichalkaranji, Dist.- Kolhapur. Table 16: Roads within the City Limits
Surface Type KMC PWD Road Share
There are 193 units in Kolhapur region which (SH/NH/MDR) length (%)
come under of the Hazardous Waste (M & H) Cement 17.97 -
Rules, 1989 as amended in 2003. Concrete 17.97 3%
Inventorisation work is completed and report has BT (Blacktop) 414.66 - 414.66 73%
already been submitted to H.Q. The total 193 WBM 74.99 38.73 113.72 20%
units generate about 94.3 MT/M incinerable Gravel/Earthen 24.65 - 24.65 4%
waste, 2726 MT/M landfillable waste and 217.7 Total 532.27 38.73
MT/M of recyclable waste. 571 100%
Source: Kolhapur Municipal Corporation
Disaster Management
All disaster management activities are under the

head of fire fighting department of Kolhapur
Municipal Corporation. This department provides

Table 18: Problematic Traffic Junctions in the city

Plate 13: Road network map Station Rajaram Other Bottlenecks in the
Road Road Junctions city
▪ CBS ▪ Railway ▪ Varun ▪ Gokul Hotel to
Mahadeo gate no. 2 Tirth Venus Corner
Mandir ▪ Bagal ▪ Shahu ▪ Bagal Chowk to BT
▪ Dabholkar Chowk Madap college
corner ▪ Parvati ▪ Mairajkar ▪ Bagal Chowk to
▪ Gokul Talkies Tikati Parvati Talkies
Hotel ▪ Azad ▪ Deol ▪ Gavat Mandal
▪ Venus Chowk Club ▪ Commerce College
Corner ▪ Commerce Chowk to Bindu Chowk
College ▪ Baicha ▪ Commerce College
▪ Bindu Putala to Dewal Club
Chowk ▪ Aditya ▪ Malkar Tikati to
Corner Maratha Bank
▪ Malkar Tikati to
general mutton
market
▪ Malkar Tikati to
Discussions with the stakeholders including Shivaji Putala
private citizens, industrialists and Traffic experts ▪ Malkar Tikati to
yielded the indicative lists of the major roads, Papachi Tikati
▪ Mirajkar Tikati to
major problematic areas and bottlenecks. These Shahu Maidan
include, but are not limited to the following: - ▪ Gangawesh to
Rankalawesh and
Table 17: Major approached and traffic links in the city further
Major approach roads to the Main traffic links in the city ▪ Railway gate to
city Khade Building to
1. Shiroli Naka to CPR 1. Dabholkar Corner to Janata Bazaar
Hospital (Station Road) Tarabai Park
2. Rajaram Road (Railway 2. Jawahar Nagar- Udyam
Accidents details in Kolhapur No. of Accidents Persons Died
gate no. 2 to Bindu Nagar- Parvati Talkies- Persons Injured
Chowk) Gavat Mandai- Shahupuri- 2500
3. Shahu Naka-university- Gokul Hotel N um be rs
1925
Baicha Putala-Shahu 3. Gangawesh- Papachi 2000 1755 1780 1765 1783 1745
1820
1685
Stadium- Dewal Club- tikati- Corporation to 1592
Mirajkar Tikti Mutton Market 15 0 0

1581 1599
4. K Bawada- Town hall- 4. Timber Market- Khari 1480
1569
1485 1532 1520 1575
1489
Shivaji Putala Corner- Gandhi maidan- 10 0 0
5. Shivaji Pool to CPR Varun Tirth- Rankala
hospital Wesh- Gangawesh 500 273 299 286 282 293 276
219 247 256
6. Shivaji Putala to 5. Blood Bank- Collector’s
Gangawesh office- Dhairyaprasad 0
7. Phulewadi to 6. Station Road- Basant 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 2000 2001 2002 2003
Gangawesh Bahar- Collector Office-

8. Sane Guruji Vasahat to Mahavir College
Rankala Wesh 7. Hockey stadium-
9. Kalamba to Filter House Jayaprabha Studio-
10. RK nagar- Subhash Gokhale college- Uma As the data, the vehicular traffic in Kolhapur has
Nagar- Renuka Mandir Talkies- Ford corner- increased during the period 1997- 2006 with a
Dasara Chowk Compounded Annual Growth Rate of 34%. This
8. SSC Board- SIBER has put tremendous pressure on the existing
college- Takala infrastructure. The number of traffic accidents
has also been observed to increase as shown
below: -
The city has 15 major roads. The roads, which
register the maximum traffic and major
congestion, are the Station Road, the Rajaram
road, the roads connecting K.Bawada to Shivaji
Putala and the roads from Tawde hotel chowk
and Shivaji pool to Venus Chowk. The table
below outlines the road network in the city.

Table 19: Vehicles Registered in Kolhapur City as it is unable to increase the fare and the O&M
Type of No of No. of No of No of costs have shot up due to the high diesel prices.
vehicles Vehicles Vehicles as vehicles vehicles The current O&M cost per km. is Rs. 26.36.
as on on as on as on Increase in fare needs permission from the
31.03.97 31.03.2000 31.03.03 31.01.06
M/ cycles 18010 37110 66364 226855
GoM. Besides this, 12,344 rickshaws ply in
Scooters 19112 23319 25111 63754 Kolhapur. KMT faces severe competition from
Mopeds 22616 26716 29334 58633 the three-seater and six-seater rickshaws.
Total 2- 59738 87145 120809 349242 These rickshaws have stage carriage, i.e., they
wheelers pick up passengers from the KMT bus stops.
Motors cars 5317 6538 9050 26036
Jeeps 1301 2177 2817 15160
Stations 159 175 176 707 Street Lighting: The Corporation has achieved
wagons almost 95% street light work providing thereby
Taxi cabs 167 196 206 ---- an extensive network of road illuminations.
Auto 4917 6272 6998 12734
rickshaws
Parking: The city has currently four parking
Stage 919 929 929 951
Carriages spaces, which are located at Shahapuri,
Contract 196 231 293 416 Kapilteerth market, Shivaji market and near
carriages Mahalaxmi temple. These lots are insufficient
School buses 4 5 6 15 given the inflow of traffic in the city and the
Private 1 1 1 31
increasing floating population.
services
Ambulance 12 19 34 166
Trucks & 1913 2688 3133 8187 Key issues:
lorries
Tankers ------ 480 520 798 The various issues related to roads and public
Delivery van 778 1308 1683 5221
transport are listed below:
Delivery van 378 732 1242 4004
three Average condition of the roads is bad and
wheeler
Tractors 409 635 1224 12585
worsens during the monsoons.
Trailors 412 503 1310 15610 Absence of flyovers at railway crossings
Others 24 32 37 226 causes congestion.
Total 76645 110266 150468 452197 Development Plan roads are not
implemented on a timely basis.
Source: RTO office, Kolhapur
Street lighting is very poor in the newly
developed areas.
Public transport (city level and nearby areas) Encroachments in the Gaonthan area are
very high and thus result in reduction in the
Kolhapur Municipal Transport (KMT), a KMC usable area of the road.
undertaking, provides public transport in Lack of route diversification; bus schedules
Kolhapur. Currently, there are 149 buses with are not properly planned.
KMT of which 117 are on an ownership basis Average condition of the roads is bad.
and an additional 32 on a contract basis. Of Road patchwork is done and the potholes
these, 140 buses, ply in Kolhapur every day. are filled up. Resurfacing of roads does not
The contractors are paid Rs.16.34 per km. happen.
There are 27 identified bus routes in the city. Parking is insufficient, especially in
These buses are also allowed to ply up to 15 congested areas like the Bhausinghji road,
kms. Outside the municipal boundary. The the Tarabai road and the Station road.
frequent routes are Kagal to Bondrinagar, Luxury private buses, cater to inter-state
Sugarmills to Aptenagar and Gandhinagar to and regional transport have not been
Kolhapur. The buses operate for 34,000 kms. allocated any parking area. As a result,
every day and cater to the needs of around they park on the main roads causing major
1,25,000 passengers. There are 285 bus stops congestion.
in the city. Of these, 125 are owned by KMT, No pay and park facilities, same need to be
125 are rented out on a boot-operate-transfer introduced as they will provide an additional
(BOT) basis and 30, which were built by private income to the Corporation and also
parties, have been later transferred to KMT. The discourage parking. Also, parking can be
minimum fare is Rs. 4. The fare was revised last done on a PPP basis.
in 2005. KMT faces major financial constraints

5 URBAN POOR AND SOCIAL ASSESSMENT
This section deals with slums and urban poor and access to urban basic service in Kolhapur. The
analysis is based on secondary information and interactions with stakeholders. It also reviews past and
present programs for service delivery to the urban poor in the city. The aim is to identify key issues in
service delivery to the poor in Kolhapur and arrive at strategies that would enable the KMC to address
these issues and fulfil its mandate of providing basic services to the poor in the city.
are the housing solutions adopted by the

5.1 POVERTY IN KOLHAPUR houseless population that do not have access to
formal housing. Financial inability to enter the
Discussions with stakeholders reveal that there formal housing market leads them to construct
are levels of poverty in Kolhapur. Poverty and and reside in unauthorized structures. This leads
slums are coexistent in the city. Absolute to the formation of slums in the city. There are in
poverty as per the general definition, i.e., not all 54 slums in Kolhapur, of which 44 are
enough to eat, is not really prevalent in the city, declared and 10 undeclared. Of the 44 declared
except amongst a small section of people living slums, 10 are located on municipal land, 22 on
in slums who lack even housing and other government land and the rest 12 on private land.
amenities and can be categorized as the urban Mostly the slums are located on government
poor. For the majority of the poor in the city, the land, private lands and municipal lands. The
only concern is security total slum population was
of land tenure, quality of Defining and Measuring Poverty approx. 56,235 as on 01-
housing and access to The simplest definition of poverty is the lack of specific 01-1995, which is 11.60
basic infrastructure. consumptions (i.e., not enough to eat). A broader % of the city’s total
definition is the lack of command over commodities population. There are
But if other parameters exercised by a population. Another, more sophisticated 10,447 hutments in the
of urban poverty like definition is based on the capability of the poor to function city.
housing, access to in society. Access to basic services -- especially
better sanitation adequate and safe water, health and sanitation, and Urban basic services are
facilities and capability education -- is now increasingly being recognized as an adequately provided to
to function in society are important indicator of poverty. the slums in Kolhapur. All
considered, then almost the slums have access to
Standard and widely accepted representations of poverty
all slum-dwellers can be water supply either
are: the Head Count Index (HCI) signifies the percentage
categorized as the through pipes or stand
of people below poverty line; the Poverty Gap (PG)
urban poor. posts provided by KMC.
measures the depth of poverty (In statistical terms, this
stands for the mean distance below the poverty line as Only 15% of the slums do
The urban poor percent of the poverty line). not have access to
population (slum sewerage or drainage
population) of Kolhapur facility. Solid waste management facilities are
is estimated to be about 11.60 per cent of the provided to almost 75% of the area.
total population of the city; the rapid growth of
slums has been largely the function of the In a Below Poverty Line (BPL) survey conducted
economic growth of the city; the non-availability by KMC in 1991, around 12,500 families have
of EWS/LIG housing; and inadequate service been identified with an average household size
levels in some pockets of slums leading to of seven. The criterion used for identifying them
deteriorating environmental problems. was earnings below Rs.591.75 per month. A
majority of the BPL families were employed in
5.1.1 SLUMS IN KOLHAPUR the service sector such as construction,
carpentry, masonry, painting, welding, mobile
Slums are semi-permanent shelters, constructed repairs, and grocery. Most of them hailed from
with common locally available materials. These

the neighbouring areas of Beed, Latur, Key issues

Osmanabad, Bijapur and Athni. Provision of basic infrastructure and service
levels in slums, especially those of
5.1.2 SLUM IMPROVEMENT AND POVERTY sewerage and drainage is inadequate.
ALLEVIATION PROGRAMS
Few voluntary community-based
organizations are working in the slum
KMC has undertaken several initiatives to
areas.
improve the standard of living of the slum
dwellers and to provide them with the basic level Most of the slums are situated on
of services. The KMC under the Valmiki encroached government land. Land tenure
Ambedkar Awas Yojna, has rehabilitated a few is a major problem, because of which slum
slums. KMC also receives grants from the State dwellers do not invest adequately in
Govt. though MHADA for slum improvement. housing, fearing eviction.
Shifting of the slums has been difficult for KMC Shifting of slums becomes difficult due to
due to the shortage of land. KMC has shortage of land.
undertaken several programmes under SJSRY.
It has formed neighbourhood groups of 10 to 40
families in each area. These groups are 5.2 SOCIAL INFRASTRUCTURE
members of the Urban Poverty Eradication Cell.
These groups address the day-to-day needs of 5.2.1 OVERVIEW OF EDUCATION INFRASTRUCTURE
the slum dwellers. Around 10,031 families are a
part of this Neighbourhood Group (NHG)
Kolhapur boasts of a large number of
programme. Besides, KMC also encourages the
educational institutes at all levels, including
formation of self-help groups. The members of
government and private institutions. The
these groups have to deposit a certain amount
infrastructure in Kolhapur for higher education is
on a recurring basis. They earn a rate of 2% on
comparatively extensive with a number of
their deposit. The total amount gathered is then
engineering, technical and medical colleges.
lent to some of the group members at 0%
Under the innovative and socially reformist
interest depending upon their need. Another
leadership of Chhattrapati Shahu Maharaj, the
scheme carried out by KMC is “Development of
princely ruler of Kolhapur, the city had become
Women and Children in Urban Areas”. Under
at the beginning of this century, a focal point of
this scheme, groups of 10-20 women are
educational opportunities for all classes and
formed. These women come together to start a
communities of South-Western Maharashtra,
business. They are provided a funding of up to
and northern parts of neighbouring Karnataka.
Rs.2,50,000 depending upon their need. Of the
This is also land of Karma veer Bhaurao Patil,
total amount, 50% is grant, 45% bank loan and
who struggled for taking education to the
5% self-invested. Most of such groups are
masses by his innovative 'Earn and Learn'
engaged in the fields of dairy projects, grocery,
scheme. The education centres in Kolhapur are
etc. KMC also provides training to BPL families
summarised as follows:
for 300 hours in a year over a period of two to
six months. A stipend of Rs. 100 is paid to Table 20: Number of educational Institutes
every participant. Training is provided in No. of
stitching, screen painting, mobile repairing, etc. Education Centres Nos.
Students
Also, exhibitions are organised by KMC to Primary Schools 166 15015
display and market the products produced by Secondary Schools 81 32800
the self-help groups and training centres. The
Colleges 15 4925
Corporation also encourages self-employment
amongst BPL families. It provides a loan of up to
Rs. 50,000 over a period of three to five years. 5.2.2 SCHOOL EDUCATION
Of the total amount, 80% is bank loan, 15%
grant and 5% self-invested. All areas in the Kolhapur Municipal Corporation
is brought under compulsory primary education
and large scale public awareness programs are
being conducted. The age limit for primary
education is 6 to 11 years and compulsory
primary education is only from first to forth

standard. There are 166 primary schools in the 18. Shri Shantaram Krushnaji Pant Walawalkar
city, belonging to both government category and High School,kolhapur
private category. 19. Princess Padmaraje High School
20. Dr. Dadasaheb A. Magdum Highschool,
In year 1940, after demise of Chhattrapati Kolhapur
Rajaram, Kolhapur constituency was managed
by council. Queen Tararani was regent of this One of the premier schools operated by the
council at that time. To continue the legacy of Municipal corporations is the Rajmata Jijabai
educational development work started by Girls High School. It is the only corporation
Chhattrapati Shahu Maharaj, the management managed girls high school in the city. This high
and responsibility was handed over to Kolhapur school was established in 1954 by Kolhapur
Municipal Corporation on 24th September, 1942. Municipal Council. Initially it was started in a
According to the regulations devised in 1942, small place, but now the school has large two
education committee came into existence on storied building with all amenities. The specialty
21st December 1942 with subsequent elections. of this school is that all the girls of this school
When organization merged into Mumbai region, are given uniforms every year by the
education committee got transformed into corporation. No fee is collected for any reason.
Municipal school board on 9th June 1948 Text books & note books are supplied from book
conforming to the Mumbai primary education bank. There is modern laboratory. The high
act, 1947. school has 100% grants in aid from corporation.
From 1954 there were 9 headmasters/ head
There are certain schemes which are taken up mistresses. At present there are 21 teachers & 8
from time to time for the encouragement of non teaching staff members in the high school.
different sections of society to undertake primary
education for their children. For example in the 5.2.3 HIGHER EDUCATION
Savitri Bai Phule adopted children scheme
Minimum of 1000 girls have been admitted Kolhapur also takes pride in a Shivaji University,
through Late Savitribai Phule adopted children a NAAC five star rated institution. It is most
scheme. Efforts are being taken to increase this famous for its literature, arts, commerce and
number and all the teachers are constantly science departments. It is also well known for
engaged in these efforts. biotechnology and environmental studies in
Maharashtra. It was inaugurated on 18th
In addition to the primary schools there are November, 1962 by Dr. Radhakrishnan, the then
around 81 secondary schools in Kolhapur. The President of India.
names of the some of the well known schools in
Kolhapur are listed as follows: - Plate 14: Shivaji University
1. Vidyapeeth Highschool
2. Nutan Marathi Highschool
3. New HighSchool, Kolhapur
4. Maharashtra Highschool
5. V S Khandekar Highschool
6. S M Lohiya Highschool
7. Sri Ram Vidyalaya, Highschool
8. Holy Cross Convent Highschool, Kolhapur
9. St. Xavier's School, Kolhapur
10. Tararani Vidyapith
11. Murgud HighSchool Murgud,(MVM)*
12. New Model English School
13. Tavanappa Patne high school
14. Fort International School. One of the major objectives behind foundation of
15. Sou. Nalini Shantaram Pant Walawalkar this University was to cater to the regional needs
Prashala[MaiSaheb Bawdekar School] of South Maharashtra. The jurisdiction of the
16. Panhala Vidyamandir, Panhala University is spread over four districts viz.
17. Chhatrapati Shahu Vidyalaya, New Palace, Kolhapur, Sangli, Satara and Solapur with
Kolhapur strength of about 2,00,000 students studying in
275 affiliated colleges and recognised institutes.

The University imparts education in 10 major The major engineering colleges in Kolhapur and
faculties of Arts, Social Science, Science, nearby towns are as follows:
Commerce, Education, Fine Arts, Law,
1. Kolhapur Institute of Technology [KIT],
Medicine, Ayurvedic Medicine, Engineering and
Kolhapur
Technology. The University has started Post-
2. Government College of Engineering, Karad
graduate teaching centre at Solapur in 3 Post-
3. SPSMBH's College Of Architecture,
graduate Departments. The faculties of Arts and
Kolhapur
Social Sciences are also gearing up to meet the
4. D.Y. Patil College of Engineering &
demands of changing time. Establishment of
Technology, Kolhapur
Centre for Women's Studies and extension
5. Tatyasaheb Kore Institute of Engineering
activities through Adult and Continuing
and Technology Warnanagar
Education and Shramik Vidyapeeth are
6. D.K.T.E. Society's Textile and Engineering
indicators of this change. Department of
Institute, Ichalkaranji
Economics has been selected by UGC for its
7. Bharati Vidyapeeth's College of
Special Assistance Programme. Departments of
Engineering, Kolhapur
Sociology, Education, Geography, Physics and
8. Dr. J.J. Magdum College of Engineering
Economics are offering special courses in
[Jaysingpur]
emerging areas like Environmental Science is
also functioning actively. The University is
encouraging merit by introducing a unique The major medical colleges in Kolhapur and
nearby towns are as follows:
scheme called 'Shivaji University Merit
Scholarship' offering 500 scholarships to 1. R.C.S.M Govt. Medical College, Kolhapur
meritorious students in affiliated colleges. It has 2. D.Y.Patil Medical College, Kolhapur
also instituted research fellowships for Ph. D. 3. Krishna Institute of Medical Sciences, Karad
students in the Post-Graduate Departments of 4. Mahatma Gandhi Medical Trust's Tatysaheb
the University. The University has made a Kore Dental College, Warananagar
budget provision of about Rs. 45 Lakh for these 5. Yashwant Ayurvedic Medical College,Kodoli
scholarships out of its own funds.
5.2.4 OVERVIEW OF HEALTH INFRASTRUCTURE
Shivaji University has proposed the setting up of
a National Institute of Agri-bio Technology and Kolhapur city is one of the growing cities in
an International School of Engineering and Maharashtra, with an area of 66.82 sq km. and a
Technology. These institutions are expected to population of nearly 4,85,183 residents (Census
be operational by 2007-08. The University also 2001). The population density stands very high
proposes to set up a National Law School and at 7261 persons/sq.kms., which is 25 times the
an entrepreneurial development institution. state density and 17 times the district density.
Currently, the University has introduced a The basic health indicators for the city of
practice of sending 30 artisans per month to the Kolhapur are given below: -
Central Leather Research Institute in Chennai to
train them in quality production and update them Table 21: Basic health indicators
with the latest customer trends. The University Indicator Value
has also introduced a PG Diploma in leather Population 5,16,000 (According to 2005 mid-year
technology. It is focussing on modernisation of estimate by the Health Department, KMC)
the existing courses and the newly applied Household Size 4.82 persons/ Household
Sex Ratio 930 Females/ 1000 Males
science courses. There are also two other major
Birth Rate 35.4 Births/ 1000 Population
universities in Kolhapur -- Bhartiya Vidyapeeth,
Death Rate 12.1 Deaths/ 1000 Population
known for management, pharmacy and law, and Infant Mortality 31.77/ 1000 Births
D.Y. Patil University famous for its medical Rate
courses. Symbiosis is also planning to set up a
governance program and executive training
program at Kagal.

Table 22: Health Infrastructure 5.2.6 KEY ISSUES IN HEALTH INFRASTRUCTURE

Facility Numbers
Facilities of Kolhapur Municipal Corporation Inequitable distribution of services
Hospitals run by KMC: - Total No. of Beds- 190
a. Savitri Bai Phule Hospital Facilities- General Shri Panchganga Hospital is one of the
b. Panchganga Hospital Facilities, Special maternity hospitals established by KMC. This
c. Isolation Hospital Maternity Facilities, hospital does not have all facilities under one
d. Dwarkanath Kotnis Hospital Special Epidemic
roof; as a result, patients have to rush to other
Treatment Facilities etc.
Clinics 13
hospitals for various tests. For example,
Physiotherapy Centre 1 admitted patients need to be sent to the
Family Welfare Centers 6 Savitribai Phule diagnostic centre during lab
Blood Bank 1 hours. In spite of being a maternity hospital, it
Reproduction and Child Health 4 does not have provision for neonatal care.
Centre Hence, a newborn baby has to be shifted to the
Dispensaries 12 Allopathic Savitribai Phule maternity hospital. This poses
3 Homeopathic risk to the child. Also, during Ganesh immersion,
1 Dental all the processions cross this hospital and the
1 Mobile roadblocks make it difficult for people to reach
Private Facilities the hospital in case of emergencies. The
Major Hospitals- 500 Beds Each
hospital has very poor infrastructure and a noisy
a. Chhattrapati Pramila Rao (Medical colleges
Hospital Attached)
environment, and lacks parking facilities. On the
b. Dr. D. Y. Patil Hospital other hand, the Savitribai Phule Maternity
Other Hospitals/ Nursing Homes 230 Hospital with its location in the centre of the city
OPDs 420 is generally overcrowded. As a result, the
Pathology Laboratories 40 hospital generally faces an inadequacy in
resources right from linen to medical officers.
5.2.5 HEALTH DEPARTMENT OF KMC Savitribai Phule Hospital has departments for
Urology, Neurology, Plastic Surgery. Paediatric
The health department of Kolhapur Municipal Surgery, Onco Surgery etc. but the number of
Corporation is headed by the Chief Health beds and staff is grossly inadequate for
Officer, who reports to the Commissioner. Under maintaining these services.
the Chief Health Officer, there are the following
departments: - Poor Status of Infrastructure
1. Health Administration Department The buildings in which the hospitals and
2. Birth Death Registration Department dispensaries are located are very old and poorly
3. Food Inspector maintained. Very little care is taken to maintain
4. Animal Butchering Centre the buildings and their surroundings in a clean
5. Insecticide Team and hygienic manner. The equipment once
6. Conservancy installed has not been updated in majority of the
7. Savitri Bai Phule Hospital cases.
8. Panchganga Hospital
9. Isolation Hospital Inadequate and poorly trained staff
10. National Programmes
Due to overcrowding, KMC hospitals, especially
There are 41 doctors on the rolls of the Savitribai Phule Hospital face the problem of
department, and 5 doctors working on inadequate manpower. The existing staff is
contractual basis. Additionally there are 44 inadequately trained, in hospitals as well as the
doctors, representing various specialisation of dispensaries. Although training programmes are
medical treatment who are working on a visiting held for the staff, the attendance for such
basis in the various facilities of the Municipal programmes is poor.
Corporation.

Status of the dispensaries

Table 23: Incidence of Diseases
As far as the 16 dispensaries are concerned, Affected during the last 5 years
they seem to be more of a liability. Heavy Disease (as on June 2005)
expenditure is incurred by KMC on dispensaries, Cholera 192
ranging from Rs.1.2 Crores to Rs.1.7 Crores per Gastroenteritis 3931
dispensary per year. These dispensaries Dysentery 23322
register poor end-user attendance. The best Diahorea 32237
dispensary has an attendance of 30 to 40 Influenza 77392
patients per day. The supply of medicines at the Typhoid 471
dispensaries is meagre and insufficient. Also, Others 4922
the area of the dispensaries is huge and difficult
to maintain. KMC has established 10 Family 5.2.7 SOCIAL EVILS AND POVERTY REDUCTION
Welfare Centres. These centres have a poor
infrastructure. Also, the personnel working at Kolhapur is witnessing a rise in prostitution, with
these centres need to be trained. increasing trade and commerce. There is a need
to control the same. The city ranks third in
Inadequate and Poorly planned supply of Maharashtra in terms of prostitution and first in
medicines terms of ‘female foeticide’. Today, the city faces
several problems in the social arena such as
The supply of medicines is very haphazard. The increased crime rate, increased female foeticide,
medicine and consumable supplies do not and growing number of cases of atrocities on
match the needs women. The city today has the lowest female to
male ratio, i.e., 816/1000. Efforts need to be
Public Health Parameters taken to increase this to at least 950/1000. Also,
education needs to be provided to women. As
Decreasing the Infant Mortality Rate by per the 2001 Census, the literacy rate among
2/3rds from its 1990 level within the next 25 women is 74.94 and that among men is 83.8.
years: The IMR for India in 1990 was 80 per Also, there is a need to bring to women into the
1000 births; the goal was to reduce it by 2/3rds, mainstream economy. This will help in reducing
which means to a level of 27 per 1000 births. poverty and result in the disappearance of BPL
Based on the Millennium Development Goals, families. Also, necessary door-to-door support
the Union Ministry of Health and Family Welfare services need to be provided for employed
has defined a goal of attaining fewer than 30 women, such as baby care, food, old age care,
deaths per 1000 births within the year 2010. pet care, payment of bills, etc. Under SJSRY,
The current level in the Kolhapur Municipal mahila bachat gats have been created. These
Corporation is 32, while for India as a whole it gats(groups) come together and produce
about 40(for urban areas). products. However, there is no market for these
products. There is a need to market these
Incidence of Epidemic Diseases: There have products and create awareness about the same.
been frequent incidences of epidemic diseases, Alternatively, these products should be designed
specially water borne diseases in Kolhapur. such that they cater to the market needs and
Every year during monsoons there is flooding in training should be provided to the mahila gats
the city, the flooding combined with the poor accordingly.
drainage generates an unhygienic environment
thereby providing a breeding ground for such
diseases. The incidence of such diseases has
been listed in the following table: -

6 URBAN/MUNICIPAL FINANCE
Finance management and accounts are the principal functions of the Accounts Department headed by
the chief accountant. The Accounts Section also monitors the grants and state government transfers and
devolution, and manages debt servicing, provident fund accounts, pensions, salaries and advances.
6.1 FRAMEWORK FOR ANALYSIS The Corporation accounts can be classified

under two major heads - general fund and water
For the purpose of financial assessment, fund. The revenue sources of the Corporation
financial data pertaining to the last five years may be broadly classified as internal or
(2001-02 to 2005-06) have been analysed. The operating income and external receipts. Internal
first step in analysing the financial position of income includes receipts from the operations of
KMC is to differentiate and categorise the the Corporation in the form of taxes, octroi,
account heads into General Account, Water water and sewer charges and fees and charges
Account and Capital Account through a budget on other services such as advertisement fee and
recasting exercise. food and license fee.
Stage I - Sourcing Stage II - Assessment Stage III - Analysis
Municipal Finances Data Recast Data:

as obtained from KMC
• Extra-ordinary account *Extra-ordinaryaccount heads comprising Cesses,
• Budget Books Advances, Deposits etc is not considered for
heads
financial assessment and further Projections, as
• DCB Statements
these items would not affect the financial health of
• Taxation Information the ULB.
Debt/ Non-debt Liabilities’

Data as obtained from
Recast Data:
• KMC
• Revenue Account KMC
• Other nodal
• Capital Account
agencies/ Lending Financial Assessment/
agencies etc. Credit Standing
Liabilities:
• Debt Liabilities
• Non-debt Liabilities
KMC’s current accounting system is cash- External fund sources include revenue grants
based; income and expenditure heads are from the State and Central Governments, loans
maintained on a cash basis. All the expenses for and contributions for projects. Expenditure
towards regular maintenance are treated as incurred towards establishment cost, operation
revenue expenses, while expenses on new and maintenance expenditure for provision of
projects are treated as capital expenses. The services, and repayment of loans are treated as
standing committee exercises strict control over revenue expenditure and expenditure on asset
the projects that requires capitalization. Direct creation, purchase of equipment and
expenses are appropriated directly to the user investments in new projects, etc. are treated as
department. KMC is in the process of migrating capital expenditure. Advances and deposits and
to the accrual-based double entry accounting any items of income or expenditure of a
system and plans to generate the balance sheet temporary nature are treated and accounted for
by March 31, 2007. under an extraordinary account. These heads of
account are not analysed as they are temporary

in nature and have no impact on the overall Table 24: Financial Status at a Glance
financial position of KMC. Items 2001-02 2002-03 2003-04 2004-05 2005-06 CAGR
Actual in Rs. Lakhs %
6.2 FINANCIAL STATUS AT A GLANCE
Revenue Account
Income 8581 9036 8992 8969 9959 4
The municipal finances of the Corporation Expenses 6793 7341 7496 7972 9317 8
(KMC) have been reviewed for the last five Surplus/ 1788 1695 1495 996 641
years, commencing from the financial year Deficit
2001-02 to 2005-06. The items of both receipts Capital Account
and expenditure are classified under revenue Receipts 490 990 760 703 1194 25
and capital accounts as per their sources and Payments 1935 1927 1973 1610 1384 (8)
uses. Surplus/ (1445) (937) (1212) (907) (190)
Deficit
Status incl. 623 1212 1040 526 1033
KMC - Revenue Account
O.B.
2005-06 Source: Analysis of actual annual accounts of KMC
2004-05
2003-04
Year-on-year expenditure by KMC on capital
items is dependent on the availability of revenue
2002-03
surplus and year-to-year priorities, and lacks
2 0 0 1- 0 2 planned capital investment. Capital expenditure
0 2000 4000 6000 8000 10 0 0 0 12 0 0 0
by KMC during 2005-06 is Rs. 1,318 lakhs.
R s . la k hs .
Though this is observed to be increasing the
Revenue Inco me Revenue Expenditure pressure on the revenue surpluses, the
presence of a large quantum of revenue from
Revenue income (a combination of General and octroi reflects positively on the revenue as well
Water Account) of KMC has grown to a level of as the overall municipal surpluses. The overall
Rs. 9,959 lakhs in FY 2005-06 from Rs. 8,581 municipal account has been in a surplus position
lakhs during FY 2001-02, registering a KMC needs to be cautious of not overshooting
compounded annual growth rate (CAGR) of 4%, its revenue expenditure, as this may lead to a
while revenue expenditure increased at a CAGR deficit situation. It needs to identify expenditure
of 8%. This indicates a decline in the financial control measures; planned capital investments
condition of KMC. KMC maintained an average on the part of KMC are warranted.
revenue surplus of over 10% of its revenue
income. The following section provides a detailed review
of the revenue account, in order to assess
Capital income of KMC comprises loans and KMC’s fiscal status and determine both the
internal transfers from revenue to capital potential of each of its sources and its ability to
account or utilisation of funds for asset creation; sustain the investments identified under the City
during the past few years, KMC has not availed Development Plan.
of any loans for its capital expenditure. It is
observed that capital income from external 6.2.1 REVENUE ACCOUNT
sources is nil and that the capital account is
continuously in deficit, indicating that most of the The revenue account comprises two
capital expenditure is met from internal surplus components -- revenue income and revenue
alone. expenditure. Revenue income comprises
internal resources in the form of octroi, tax and
non-tax items. External resources are in the
form of shared taxes/transfers and revenue
grants from the State and Central Government.
Revenue expenditure consists of expenditure
incurred on salaries, operation & maintenance
cost, contributions and donations and debt
servicing.

Table 25: Source-wise revenue income (Incl. Water Account)

Items 2001-02 2002-03 2003-04 2004-05 2005-06 Share CAGR
Actuals in Rs. Lakhs % %
Own sources 8429 8785 8656 8830 9495 97 3
Octroi 4132 4360 4581 4893 5210 51 6
Tax on prop. 1314 1076 884 946 1244 12 (1)
Other Tax Revenue 257 218 193 215 253 3 (0)
Non-tax Revenue 2725 3131 2997 2776 2788 32 1
Assigned Revenue 153 251 336 139 464 3 32
Total 8581 9036 8992 8969 9959 100 4
Source: KMC Annual Accounts
municipal properties, fees & fines and other

Revenue Income miscellaneous income. Income from own
sources on an average, accounts for 97% of the
The revenue sources of KMC can be broadly revenue income, indicating low dependence of
categorized as own sources, assigned KMC on external sources for its operations. The
revenues, grants and contributions. The source- own sources registered an average annual
wise income generated during the review period growth rate of three percent, but the annual
is presented in growth rate was inconsistent over the review
period. The above figure shows the average
Table 25 and the detailed income and contribution of all the own source income items.
expenditure statement, the sectoral contribution
and growth rates of each of the items are Octroi is a local tax charged on all goods
presented in Annexure 15 entering the city; it is levied based on the
category of goods (weight, numbers, etc.). It is
the single largest source of income accounting
KMC - Sources of Revenue 3% for about 51 percent of municipal revenue
income. During the review period, it has
50% registered an average annual growth of six
32% percent.
Property Tax consists of general tax on

properties, fire tax, tree tax, water tax, water
benefit tax, conservancy tax, special
conservancy tax, sewerage benefit tax and
Octroi 3%
street tax. It is charged as a percentage of
Tax on properties
Other Tax Revenue Annual Rateable Value (ARV). In addition to
Non Tax Revenue 12% general tax, KMC levies other special taxes.
Assigned Rev, Grants/ Contrib
In KMC, the general tax and other taxes

Own Sources: Own source income includes including water and sewerage taxes are levied
income from octroi, property tax (comprising as part of the property tax. The average
general tax, water, sewerage and sanitation collection performance stands at about 76
taxes), other taxes and non-tax income in the percent of the total demand, indicating scope for
form of development charges, income from further improvement of collection efficiency.

Table 26: Property Tax Details and DCB Statement

Items 2001-02 2002-03 2003-04 2004-05 2005-06
Rs. Lakhs
No. of Assessments (No.) 84,137 88,482 96,918 100,423 103,322
Arrears demand 594 353 351 623 506
Current demand 1180 1199 1506 1545 1564
Total demand 1774 1552 1857 2168 2070
Current collection 375 240 205 503 401
Arrears collection 1046 961 1069 1159 1154
Total collection 1421 1201 1274 1662 1555
Collection Efficiency 80% 77% 69% 77% 75%
No. of PT Assessments 84137 88482 96918 100423 103322
Growth of PT Assessments - 5% 10% 4% 3%
Tax/ Assessment (Rs.) 1402 1355 1554 1538 1514
Persons/ Assessment (Nos.) 6 6 5 5 5
levied as per the Municipal Act and services
On a comparative note, between various cities
provided by the KMC. These sources include
of similar characteristics in the country3, the tax
income from building license fee, development
per assessment is relatively moderate in KMC.
charges, trade licence fee, births and death
The person per assessment does not indicate
certificates, income from municipal properties
scope for identifying un-assessed properties
and other fees and fines. The non-tax income of
(most of the properties are covered in the tax
KMC accounts for about 332 percent of the
register). But assessment figures from FY2003-
revenue income and has registered a CAGR of
04 onwards indicate that there has been a
consistent effort on the part of KMC to bring a
KMC - Items of Expenditure
larger number of properties under the tax net. 3%
2%
65%
Accordingly, there has been a decrease in the
number of persons per assessment from around 30%
six in 2002-03 to less than five persons per
assessment in 2003-04. However, the average
Salaries, Allow ances &
household size in KMC being 5.1 indicates there Pension
is little scope for un-assessed properties (about Operation &
20,000). The current property tax assessments Maintenance
include commercial establishments too. Thus, Transfers/ Contributions
on a conservative estimate, the number of
Debt Servicing
properties to be assessed in Kolhapur is likely to
be over 1.15 lakhs.
one percent. However, the annual growth rates
Non-Tax Revenue: Non-tax sources include all are inconsistent. Water charges and other water
non-tax revenues such as fees and charges income account for the majority of the non-tax
revenues and contribute more than 18 percent
of the revenues. This is followed by
development charges, which generate about two
3
percent.
Comparative statement of ARV and persons per
assessment – around FY 2002-03
City Tax per Persons per
Assessment –Rs. Asesmsent-Nos.
Pune 5,062 9.14
Hyderabad 1,495 8.14
Chennai 3,405 10.14
Coimbatore 1,819 5.68
Ahmedabad 1,605 3.75

lighting, public health (general & medical),

External Sources: External sources mainly
education, town planning, slum clearance and
include grants from local funds, grants from the
miscellaneous. Revenue expenditure is further
State and Central Governments, and
classified into establishment and contingencies
compensation towards motor vehicles tax (until
(O&M). Besides the above items of expenditure,
FY 2000-01). All external sources put together
pension contribution and debt servicing
account for only about three percent of revenue
constitute a substantial proportion of revenue
income. Though these sources indicated a
expenditure. The application of funds by heads
CAGR of 32 percent for the past five years, the
growth is inconsistent owing to the unrealistic of accounts is presented in 0. It indicates that
nature of these sources. the overall revenue expenditure registered an
average annual growth of 8% against growth in
6.2.2 REVENUE EXPENDITURE revenue income by 4%. If KMC continues this
trend, the surplus would reduce in the years to
Revenue expenditure of KMC has been come. Though KMC has sufficient operating
analysed based on expenditure heads, which surplus, it should fairly place its financial with
are broadly classified into general administration respect to measures towards reducing
& tax collection, water & sewerage, conservancy expenditure or enhancing its resources to avoid
public works (roads, drains & buildings), street any deficit situation in the future.
Table 27: Application of funds by heads of Accounts

Items 2001-02 2002-03 2003-04 2004-05 2005-06 Share CAGR
Actuals in Rs. Lakhs % %
Salaries, Allowances & Pension 4138 4615 4981 5445 6234 65 11
Pension & Gratuity 537 680 726 801 1,051
Salaries and Establishment 3,601 3,934 4,256 4,645 5,183
Operation & Maintenance 1961 2316 2189 2225 2788 29 9
Transfers/ Contributions 443 239 191 199 205 3 (18)
Debt Servicing 252 172 135 103 90 2 (23)
Total 6793 7341 7496 7972 9317 100 8
Establishment Expenditure: Establishment

The establishment expenditure, including
expenditure accounts for about 65 percent of
pension contribution and pay commission
revenue expenditure and registered over 11
revision, alone account for over 65 percent of
percent CAGR in the last five years. The
revenue expenditure. In terms of revenue
conservancy and public health departments
income spent on pension and gratuity, it is just
account for the maximum share of establishment
under 10 percent. O&M expenditure accounts
cost at 17 and 13 percent, respectively. The
for about 29 percent of the total expenses and
water supply and sewerage and public works
expenditure towards debt servicing accounts for
just about two percent of revenue expenses, account for 10 percent each (refer to 0).
indicating scope for the further leveraging of
KMC’s resources to implement large-scale
projects.

Table 28: Section-wise Establishment Expenditure

Items 2001-02 2002-03 2003-04 2004-05 2005-06
Actuals in Rs. Lakhs
Pension & Gratuity 537 680 726 801 1051
General Administration & Tax Collection 425 460 500 533 567
Water supply 261 276 317 321 362
Sewerage 171 182 194 216 232
Conservancy/ SWM 684 782 848 910 1047
Public Health, Safety, Hospitals and medical services 567 624 680 738 801
Public works – Roads 416 468 508 541 623
Others works 1077 1142 1209 1386 1552
Total 4138 4615 4981 5445 6234
Share in Rev Exp (%) 61 63 66 68 67
Annual Growth Rate (%) 12 8 9 14
Operation and Maintenance: Similar to

KMC - O&M Expenditure
establishment expenditure, and the analysis of
11% 8% O&M by each functional department reveals that
the majority of O&M expenditure is incurred on
10% the provision of urban basic services. Water
supply accounts for 51 percent of the total O&M
expenses. This is followed by O&M of street
6%
lighting at 10 percent and that of other works at
11 percent. General administration and tax
6% collection functions account for about eight
2% percent. It needs to be mentioned that
51%
6% conservancy/ solid waste management account
for less than two percent of the expenditure due
General A dministratio n & Tax Co llectio n to the classification of vehicles-related O&M
Water supply expenses under the Workshop Department.
Sewerage Hence, the same could not be bifurcated and
Co nservancy/ SWM
P ublic Health, Safety, Ho spitals and medical services
analysed under the Conservancy Department.
P ublic wo rks - Ro ads
Street lighting O&M expenditure accounts for 29% of revenue
A ll o thers
expenditure and has registered a CAGR of 9%
during the review period.
Table 29: Section-wise Operation and Maintenance Expenditure
Items 2001-02 2002-03 2003-04 2004-05 2005-06
Actuals in Rs. Lakhs
General Administration & Tax Collection 192 175 177 177 198
Water supply 942 994 1104 1093 1765
Sewerage 157 147 130 118 91
Conservancy/ SWM 38 34 33 121 21
Public Health, Safety, Hospitals & medical services 152 154 150 136 132
Public works – Roads 131 334 131 65 74
Street lighting 243 213 208 214 223
All others 105 265 257 301 285
Total 1961 2316 2189 2225 2788
Source: KMC Annual Accounts.

allowable limit of about 25-30 percent. Thus

Debt Servicing and Outstanding Loans: The
KMC has an enormous potential to leverage its
review of annual accounts reveals that debt
resources to mobilise debt funds for the
servicing expenses account for only about two
implementation of large-scale projects.
percent of revenue expenditure; in terms of
revenue income also, less than two percent is
spent on debt servicng against a comfortable or
Table 30: Outstanding Debt Liability

Agency Purpose Year Terms of Loan Amount- Outstanding as on
repayment Rs. lakhs March 31, 2005 (Rs.
lakhs)
Open Market & Commercial Capital Works 1989- 15 Years @ 11.5%- 1865 1415
Banks 1992 15.2%
LIC Capital Works 1987- 20 Years @ 9.8%- 2743 2202
2002 13.0%
Total 4608 3617
Source: KMC
Table 31: Capital Income (incl. Water Account)

Review of the outstanding loan statement of
Items 2000-01 2001-02 2002-03 2003-04 2004-05 Share
KMC, as on 31st March 2006, reveals that the
net outstanding debt liabilities of KMC stand at Actuals in Rs. lakhs %
Rs. 3,617 lakhs, which is high in comparison to Own Sources 70 51 50 93 21 8
its revenue base (36% of its property tax Loans 0 0 0 0 0 0
demand). The outstanding loan figures, as Grants 420 940 710 610 1173 92
presented in 0, indicate that in the recent past, Total 490 990 760 703 1194 100
KMC has not availed of any loans. However, the
old loans taken prior to 2002 entail very high Source: KMC
interest rates as compared to the current market
rates. Hence, KMC needs to swap these loans The figures presented in 0 clearly indicate that
with lower cost funds. Prudent financial most of the capital expenditure is met from
management practices demand swapping of revenue surpluses. On an average, over the
funds with lower interest rates loans. past five years, the majority of capital
expenditure has been directed towards water
6.2.3 CAPITAL ACCOUNT supply and sewerage systems, and roads and
traffic.
In general, the capital income of KMC comprises
loans, grants and contributions; transfers from Water and sewerage system improvements,
revenue surplus; and utilization of funds from extensions, etc. accounted for 29 percent of total
sinking funds. As mentioned earlier, in recent capital investment. Construction of new roads,
years, KMC has neither availed of any loans nor traffic management measures, etc. also
received any capital grants. The capital income accounted for only four percent of the
came only from the sale proceeds of lands, investments. Buildings and slum improvement
which are classified under capital income due to programmes accounted for other major capital
their nature, though in the municipal accounts, investments at seven percent and three percent
these are treated as revenue income. of total capital expenditure, respectively.

Table 32: Capital Expenditure (incl. Water Account)

Items 2001-02 2002-03 2003-04 2004-05 2005-06 Share
Actuals in Rs. Lakhs %
General Admn. & Tax Collection 46 50 15 24 12 2
Water supply 660 545 485 275 252 24
Sewerage 111 53 170 26 59 5
Conservancy/ SWM 64 46 6 7 2 1
Public works - Roads 103 59 137 26 23 4
Public works - Lands & Buildings 81 82 52 143 188 7
Street lighting 46 69 5 10 14 2
Urban poor and Slum development 60 89 43 28 39 3
Others and all grant related works 763 933 1060 1071 795 53
PH works 0 0 0 0 0 0
Total 1935 1927 1973 1610 1384 100
Source: KMC
high population growth, and 5.96 percent in

6.2.4 COST RECOVERY ON SERVICES
assessed properties indicating large numbers of
illegal and irregular connections. Compounding
Water Supply: Cost recovery from water supply this issue is the moderate collection
operations is over 100 percent, if the taxes performance at about 76% of the demand and
pertaining to water supply are also taken into
the high percentage of arrears in the total
account. However, this also implies that a demand (collection is Rs. 17.22 against a
majority of capital expenditures would be demand is Rs. 22.57 crores).
financed by the internal surplus of the General
Account and not be charged to the Water
The anomaly in current demand and collection
Account.
needs to be recorded separately and corrected
against the more than adequate level of water
As can be observed from the demand collection
supply to the citizens of Kolhapur.
balance (DCB) statement for water charges, the
growth in the number of house service
connections is just about 4.07 percent against
Table 33: Water Charges – DCB Statement

Items 2001-02 2002-03 2003-04 2004-05 2005-06
Rs. Lakhs
Arrears Demand 370 405 498 580 564
Current Demand 1410 1629 1717 1687 1693
Total Demand 1780 2034 2215 2267 2257
Collection 1375 1536 1635 1703 1722
Balance 405 498 580 564 535
Collection Efficiency 77% 76% 74% 75% 76%
No. of HSCs 55507 57294 59771 63578 66625
Growth of HSCs - 3% 4% 6% 5%
Cost Recovery on Service (Charges & Connection Fee alone) 124%

system. This would provide a clear picture

Low collection performance and large numbers
of KMC financials.
of illegal connections reflect on cost recovery,
when only the direct charges are accounted for ▪ Octroi and property tax account for 51%
and the taxes are excluded. The cost recovery and 12% of municipal income, respectively,
by way of direct user charges alone (excluding indicating large dependence on a single
taxes and other water income) is about 91 source of revenue stream.
percent against a desirable 100 percent. Ideally, ▪ The current collection efficiency of property
100 percent of O&M expenses should be tax stands at about 74%. There is scope
recovered through direct charges and taxes for improving collection efficiency and also
utilised for the refurbishment and improvement for bringing a large number of properties
of the water supply system and other capital under the tax net.
expenditure. ▪ Bulk of the revenue expenditure at more
than 65% is in the form of establishment
Underground Drainage expenditure alone. In terms of revenue
income, salaries and wages account for
As in the case of water supply and sewerage, 29% of the revenue indicating the need for
KMC maintains a separate account. However, better human resources management and
no user charges are levied; the recovery is only reforms in the sector.
in the form of a special sewerage tax and
▪ The bulk of capital expenditure is financed
sewerage benefit tax. The cost recovery by way
through internal sources rather than any
of indirect charges (excluding taxes and other
external funding; this causes pressure on
water income) is about 20 percent against a
available surpluses.
desirable 100 percent. Ideally, 100 percent of
O&M expenses should be recovered through ▪ In terms of user charges alone, KMC
direct charges and taxes utilised for the recovers only 83 percent of the operation
refurbishment and improvement of the sewerage and maintenance expenses incurred on
systems and other capital expenditure. water supply operations and the collection
performance is about 76 percent. Also, at
Key issues present, KMC does not charge the users
for sewerage service separately.
The following issues emerge from the above Capacity building across all levels is
analysis of the municipal finances of KMC. urgently needed to ensure better
management of urban affairs.
▪ Accounting system needs to be converted
into double entry-based accrual account

Table 34: Key Financial Indicators

S. No INDICATOR Unit Value
Minimum Maximum Average OR as on
31/03/2006
A Resource Mobilisation
1 Per Capita Income Rupees 1890
2 Source of Funds
i Share of Octroi % 48 55 51
ii Share of Taxes on properties % 10 15 12
iii Share of Other taxes % 2 3 3
iv Share of Non Taxes % 28 35 32
v Share of Assigned Revenues, Grants & % 2 5 3
Contributions
3 Growth in Income Sources
i Growth in Octroi income % p.a. 5 7 6
ii Growth in Taxes on properties % p.a. -18 31 1
iii Growth in Other taxes % p.a. -15 18 1
iv Growth in Non taxes % p.a. -7 15 1
v Growth in Assigned Revenues, Grants & % p.a. -59 233 68
Contributions
vi Growth in Own Sources' Receipts % p.a. -1 8 3
vii Growth in Total Receipts % p.a. 0 11 4
B Expenditure Management
1 Per Capita Expenditure Rupees 1768
2 Functional Allocation
i Share of Salaries & Wages % 61 68 65
ii Share of O & M Expenditure % 28 32 29
iii Share of Transfers & contributions % 2 7 3
iv Share of Debt Servicing Expenditure % 1 4 2
v Share of Salaries' Expenditure to Revenue Income % 48 63 56
3 Growth in Items of Expenses
i Growth in Salaries' Expenditure % p.a. 8 14 11
ii Growth in O & M Expenditure % p.a. -5 25 10
iii Growth in Total Expenditure % p.a. 2 17 8
C Performance
1 Operating Ratio Ratio 0.79 0.94 0.94
2 Capital Utilisation Ratio Ratio 1.16 3.95 1.16
3 Per-capita performance Assessment
i Per Capita Own Income Rs. p.a. 1698 1802 1733
ii Per Capita Assigned Revenues, Grants & Rs. p.a. 27 88 52
Contributions
iii Growth in Per Capita Revenue Income % p.a. 2
iv Per Capita Salaries Expenditure Rs. p.a. 839 1183 994
v Per Capita O&M Expenditure Rs. p.a. 397 529 449
vi Growth in Per Capita Revenue Expenditure % p.a. 6.45
D Taxation
1 No. of PT Assessments 103322
2 Current Tax Rate (Weighted Average) % of ARV 0.00
3 Tax Per Assessment Rs. p.a. 1355 1554 1514

S. No INDICATOR Unit Value

Minimum Maximum Average OR as on
31/03/2006
4 Population per PT Assessment (Bldgs) Persons 5.10
E Efficiency
1 Property Tax
i Growth in Assessments % p.a. 5.96
ii Collection Performance-Property Tax % 69 80 76
iii PT Arrears as % of Total Demand % 19 33 26
iv PT Demand per Assessment Rs. p.a. 1355 1554 1473
v Cost of Collecting Rs. 1000 of Taxes Rs. 58 63 60
2 Water Supply
i Growth in Water Connections % p.a. 3.22 4.67 4.07
ii Cost Recovery on Water Supply (%) (Charges % 86% 143% 124%
alone)
iii Cost per KL of water supplied Rs./KL 2.57 4.55 3.18
iv Collection Performance-Water Charges % 74 77 76
v Water Charge Arrears as % of Total Demand % 20 26 23
3 Sewerage
i Cost Recovery on Sewerage (%) (Charges alone) % 13% 20% 16%
ii Cost per ML of water generated Rs./ML 922 953 935
4 Conservancy/ SWM
i Cost Recovery on SWM % 21% 39% 28%
ii Cost per MT of waste collection Rs./MT 1192 1625 1426
F Debt and Liability Management
Population (2006) 526,874
1 Per Capita Liability (2005-06)
i Outstanding Debt per Capita Rupees 686.60
iii Total Outstanding Liability per Capita Rupees 686.60
2 Liability against Revenues
i Outstanding Debt against Own revenue sources % 0.38
iii Total Outstanding Liability against own revenue % 0.38
sources
iv Outstanding Debt against revenue income % 0.36
3 Debt Servicing Ratio Ratio 0.01 0.03 0.02

7 CITY GOVERNANCE FRAMEWORK AND REFORMS
Established in 1972, KMC is governed by the Bombay Provincial Municipal Corporation (BPMC) Act,
1949. According to this Act, KMC is obligated to provide basic infrastructure like water supply, drainage,
sewerage, and roads and services such as conservancy, fire fighting, streetlights, education and primary
health. Like most Corporations, KMC has two wings – the deliberative wing and the administrative wing.
committee has unlimited financial powers and is

7.1 DELIBERATE WING subject to supervision by the state government.
The deliberative wing of KMC is its general
7.2 ADMINISTRATIVE WING
body, consisting of 77 elected members and five
nominated members. Assisting the general body
The municipal commissioner is the key figure in
in its functioning are various committees, the
local self-government and is the administrative
chief being the standing committee. The
head of KMC; the commissioner is assisted by
general body of KMC is headed by the mayor. In
senior officials in discharging his functions. The
addition to the standing committee, the various
commissioner manages the day-to-day affairs of
committees of KMC are:
the Corporation subject to approvals and
▪ Transport committee sanctions from the standing committee and the
▪ Women and child welfare committee Corporation. Whenever required, the entire
executive powers to carry out the provisions of
▪ School board committee the BPMC are vested in the commissioner.
▪ Ward committee (proposed)
Plate 15: Municipal Corporation The administrative wing of KMC is divided into
five wards, each headed by a ward officer. The
total strength of officers and employees at KMC
is about 3,777, as against the approved
employment level of about 4,779.
Kolhapur Municipal Corporation has through the

Administrative and Financial Powers and
Responsibility Guidelines 2006, has
decentralised the powers previously vested with
the Commissioner’s Office. This exercise was
undertaken with a view to place the decision
making powers closer to the citizens and to
make the departments more accountable and
responsible.
The standing committee, as specified in the
BPMC Act, is the most important committee of Presently the organisation structure of the
the Corporation. Most of the financial powers are administrative wing is structured around a three
vested with the standing committee. The tier framework. The framework is explained as
standing committee consists of corporators and follows: -
is elected by the corporators from among
themselves at their first meeting after the First Tier: Control Officer: To manage the
general elections. The standing routine and operational activities of the
committee/general board essentially governs the Corporation, Deputy Commissioners and
functioning of the Corporation and makes all Assistant Commissioners have been declared
decisions with respect to the establishment and as Control Officers. They have been made
finances of the Corporation. The standing responsible for specific areas of the
corporation’s activities. They are the link

between the commissioner and the operational 7.3 REFORMS BEING UNDERTAKEN BY KMC
cadres of the corporation. They have been made
accountable for efficient and effective In the past, KMC has been active in taking steps
performance of the activities under them. The towards implementing reform. Here are some of
persons who have been designated as Control the reforms, it has implemented in the recent
officers are taken from the ranks of Gazetted past:
Officers of the government.
▪ Registration of birth and death certification
Second Tier: Department Head: To supervise is made available through the Citizen
the activities of the operational and Facilitation Centre (CFC). Currently, only
administrative departments, certain officers have one CFC is operational; KMC has plans to
been designated as Department heads. The extend this facility to all ward offices across
department heads have been made responsible five locations.
for the performance of the various offices ▪ KMC has brought about computerization of
coming in the purview of the department. These property tax database and issuance of
officers have been delegated certain powers by demand note through this database. Day-
the commissioner’s office. to-day recovery is being updated on the
systems. The payment of property tax is
Third Tier: Office Head: For performance of the also possible through all the branches of
activities of various offices, certain officers have the United Western Bank across the state.
been designated as office heads. These officers ▪ Tenders are made available on the web
are answerable to the Department Heads for site of KMC.
their activities. This level interacts with the
▪ It has also computerized the payroll,
citizens during the performance of the activities.
pension and provident fund system.
Table 35: Details of staffing pattern ▪ Building plans are scrutinized and
Sanctioned Occupied Vacant permissions are granted through all ward
Class of workers
posts Posts posts offices. The system has been computerized
Class 1 12 8 4 recently.
Class 2 179 133 46 ▪ KMC has also initiated the GIS system. It
Class 3 814 586 228 has prepared a proposal to create a base
Class 4 3770 3055 715 map using satellite imagery.
Class 5 4775 3782 993
It has also planned to introduce a double entry
accrual-based accounting system. Expression of
Interest (EOI) is invited for reputed consultants
to implement this system within the next one
year.

Organisation Structure
Asst. Asst.
Dy. Chief Town
Commissioner Commissioner
commissioner Auditor Planner
1 2
General Admin. Establishment Chief Auditor Town Planning

House Tax
•Planning and Policy •Establishment
•Tax assessment and
•Public Relation •Workers office
recovery
•Information •General Body hall
Records Octroi
Internal audit
•Bureau office
•Record office
•Typewriting Estate
Urban Poverty (SJSRY) •Computer •Keshavrao Bhosale Hall
•Library •Swimming Tank
•Market Recovery
Accounts Licenses
•Encroachment
Commissioner
•General Licenses
Municipal
•Food Licenses
Women and Child Welfare
Stores
Middle and Higher
Education
•Rajamata Jijabai Girls
High School
•Karmvie Bhaurao Patil
Night School
•Yashwantrao Chavan
College
Law College
Accounts
•Provident Fund
•Pensions
Chief Fire
City Health Engineer Administrative
Fighting
Engineer Officer (WS) Officer
Officer
Fire Fighting Water Supply, Sewerage Primary Education

Public Works Department Clinics
Treatment and Drainage •Public Primary Schools
•Public Works Accounts •Birth-Death Registration
•Water supply
•Slums •Health Stores
•Sewerage Treatment
•Electricity •Public Dispensaries
and drainage
•Gardens
•Workshop
•Projects Hygiene
•Traffic •Health Administration
•Health hygiene

8 FORMULATION OF VISION AND MISSION
The CDP is the Municipal Corporation’s strategy that outlines the vision for the growth of the city and
details how the Corporation, together with stakeholders, intends to achieve its long-term vision. In this
context, stakeholder consultations were conducted to arrive at the vision for the development of Kolhapur
and to understand the issues of the city.
consultations also involved representatives from

8.1 APPROACH the Departments of Transport and Town
Planning, non-governmental officers, and KMC
Several stakeholder consultations were officials.
organised to finalize the CDP. The stakeholder
consultations were held at the organization level, Various rounds of consultations in the form of
in core groups pertaining to particular sectors, workshops and focus group discussions were
and finally in the form of workshops to bring held during the period 22nd August to 11th
together the stakeholders on one platform. This October September ’06 as illustrated in the chart
enabled them to voice their opinions and come above. The outcome of each discussion and
to a consensus on strategies and actions for workshop are summarized in the following
each identified priority sector. section and has been incorporated to formulate
strategies and the action plan for Kolhapur.
The stakeholders included educationists,
environmentalists, councillors, and
representatives of the informal sector, NGOs,
and industry associations.. The stakeholder
Elected Representatives
KMC Officials and Stakeholders
Meeting CDP Overview Workshop Draft CDP
22nd August 2006 1st September 2006 (10-11th Oct 2006) 17th November
11 11 33 44
Service Analysis
Finances’ Assessment
Data Collection, Project Identification

Situation Analysis, & Prioritisation
Individual
Consultations 22 22 55
Assistance for City Assessment Final CDP
approval at SLNA
28th October
consultation are discussed in the respective
8.2 STAKEHOLDER CONSULTATIONS – THE section.
PROCESS AND OUTCOME
Nature of Consultation Participants
Here are the various levels of consultations/ First Discussion KMC officials
discussions organised for formulating the CDP. Second Discussion KMC officials, councillors
Most of them follow a structured format, with a Third Discussion -- Mission KMC officials, stakeholders, other
pre-defined agenda and objectives. The process stakeholders/ Focus Group institutions and organisations in
Discussions the form of small groups for
details and the summary of the outcome of each
identified priority sectors

The consultations conducted on 10th and 11th of The outputs from this workshop were used as
October 2006 with municipal representative, inputs for further discussions with city
officials and the stakeholders group respectively stakeholders. This workshop not only enabled a
saw huge turnouts of individuals, eager to better understanding of the city, but also induced
express their views and concerns about the a sense of involvement among the audiences.
city’s development. The main objective of the
consultations was to involve people in the The details of each consultation are presented in
preparation of the CDP. Annexure 19.
8.3 CONSULTATION WITH KMC 8.3.1 CONSULTATION WITH CITY STAKEHOLDERS
The consultation was basically a kick-off This workshop was held to bring together
meeting with the KMC officials and people’s municipal decision-makers and stakeholders to
representatives to make them aware of define the vision for the city and the various
UIDSSMT and the CDP process. The objective sectors of Kolhapur. The stakeholders hailed
of the workshop was to get the implementing from diversified backgrounds including
agency’s views on issues such as the representatives of non-governmental
importance of Kolhapur, the strengths of the city organisations (NGO), industrial and trade
and the desired focus areas for the development associations, health and education, town
of the city and the region. About 50 officials, planning, and senior citizen groups. About 50
including the commissioner, heads of stakeholders, excluding KMC officials,
departments, elected representatives, and the participated at the workshop.
press attended the workshop.
The workshop fostered an understanding
Plate 16: Discussion with stakeholders amongst the stakeholders regarding UIDSSMT,
the importance of CDP, the key facts that need
to be kept in mind during envisioning and the
present status of Kolhapur. The stakeholders
were divided into focused groups according to
their areas of interests. These were:
Economic development and municipal
finance
Information technology, communication and
network development
Growth management and land
management
Infrastructure improvement
Traffic and transport
The meeting started with a brief introduction of Water, sewerage and storm water
the UIDSSMT and an elucidation of its features, management
objectives, required reforms, as well as the
Solid waste management
importance of the CDP. The audiences were
also informed about the work plan for preparing Environment management
the CDP. After these initial discussions, a Health and education improvement
presentation was made to all officials on facts Social infrastructure improvement and
and figures in the sectors of demography, rehabilitation
economics, KMC’s financial profile, civic
infrastructure and related issues, institutional Poverty reduction
aspects and the status of the city with respect to Industrial development
reforms under UIDSSMT. Also, a SWOT Tourism, Culture and Heritage Preservation
analysis of the Kolhapur city as a whole was
presented. Through the presentation, feedback Each of the groups was allotted a representative
was taken on the relevance and accuracy of the from KMC to provide technical inputs. The
assessment. groups were asked to orient their discussions

around four areas: issues concerning their time, the neighbouring villages had developed
sector, sector specific visions, an overall vision urban characteristics. This created a strain on
for the city of Kolhapur, and strategies and the current infrastructure of the city.
actions to realise the vision.
A meeting was held with the town planning office
Each group was also asked to make a to understand the land use implications as well
presentation on the same. The workshop as the economic growth of the city. The town-
concluded with a summary by the municipal planning officer identified the strengths of the
commissioner. city as its location; the presence of the
Mahalaxmi and Jotiba temples; the growing
The details of each consultation are presented in industry for Kolhapuri chappals; the presence of
Annexure 17 adequate education and the presence of the
cooperative movement. He said that being
8.3.2 FOCUS GROUP DISCUSSIONS WITH KEY located near the Sahyadri range, the soil is rich
STAKEHOLDERS and the land well irrigated. He also pointed out
Plate 17: Focused Group Discussion

In order to understand the demands,
expectations from service delivery, willingness to
contribute and pay etc., focused discussions
were conducted with individual key stakeholders
during the last week of September’06. These
consultations were held at individual
stakeholders’ offices in the presence of KMC
officials. The aim of these consultations was to
ensure that the priority needs are addressed
through various actions proposed for the mission
statement. The consultations also helped in
obtaining qualitative information on the proposed
actions and ensuring that diverse perspectives
on the city’s development were incorporated in that Kolhapur acted as the doorway to the
the CDP process. Konkan. Its proximity to Warana, Nipani and
Ichalkaranji gives it greater economic
During the discussions with the KMC officials, importance. The office also mentioned several
they revealed that Kolhapur has an agro-based problems that the city was facing. One of the
economy, pivoting around sugarcane, jaggery, most important ones was the pollution of the
rice and wheat. The city also has a few river Panchganga. He pointed out that although
foundries and an engineering workshop. There the city is located on the national highway and is
are currently two MIDC industrial estates and a
new five-star estate is proposed at Kagal for Photo 18: Citizens sharing their views
promoting textile industries. They mentioned that
the city was a favourite destination of religious
tourism as it homed the Mahalaxmi temple and
the Rankala temple. Also, there were several
tourist locations nearby such as Panhala, Amboli
and Amba Ghat. However, there was a need to
explore the tourism potential of the city. The
officials mentioned that Kolhapur has one of the
highest per capita incomes in Maharashtra.
However, basic infrastructure was still lacking
as were good recreation and entertainment
outlets. Although the level of income was high,
expenditure outlets such as shopping malls,
multiplexes, and water parks were almost well connected; there are very few industries in
absent. The officials also pointed out that the the city. A focused approach towards industry
municipal jurisdictional area of KMC had not development was required.
been increased for a long time. At the same

The Confederation of Indian Industries (CII) has included the silver ornament industry, the
also held a series of workshops with renowned Kolhapuri chappal industry, and the milk
citizens inviting them to discuss their vision for industry.
the city, its strengths and weaknesses, its
economy and basic infrastructure issues. A Also, the CII officials pointed out that the IT
discussion was held with the CII officials to gain infrastructure in the city was weak and needed a
a perspective about the economy of the city and boost. Besides, the city had few places of
its strengths and weaknesses. The officials recreation and entertainment value. As a result,
pointed out that the economy of Kolhapur was although the per capita income was high and the
growing at a fast rate. They identified the two citizens were flushed with money, they had no
main growth areas as the agriculture industry -- outlets to spend the same.
especially sugar -- and the auto component
cluster, comprising mainly foundries and The details of the mission stakeholder
ancillaries. They expect that Kolhapur will soon consultations are presented in Annexure 18
emerge as an engineering component exporter
like Coimbatore. The market size of the foundry 8.4 IMPORTANT ASPECTS THAT DEFINE
market today is 2.50 lakhs tonnes per annum;
KOLHAPUR’S VISION
the major demand emanates from the Europe
and the USA. The CII officials also pointed out
that Kolhapur has strong locational advantages For effective urban reconstruction and
and consequently, high tourism potential. There development, a common vision of the future
are several tourist locations near Kolhapur such development of a city/region is essential. The
as Panhala, Jotiba, Narsobawadi and the vision for the city of Kolhapur has been
Khidrapur caves; the tourism potential of the city formulated by continued consultations with
could be explored and a tourism circuit could be stakeholders in an integrated and cohesive
developed. As far as education was concerned, manner. The consultations centred on the city’s
CII officials voiced there was scope for strengths, current issues, concerns, problems
improvisation. They revealed that the city of and future focus areas. Based on stakeholder
Kolhapur was self-made and it needed a leader consultations, the strengths and weaknesses of
to take it and its citizens towards a glorious the city have been drawn and are elucidated
future. The other strong industries identified below.

Strength Weaknesses

Strong agricultural industry and agro-based Pollution of the Panchganga river
industries Non-availability of power
Good connectivity –NH4, railway, air Absence of adequate IT infrastructure
Presence of cooperative movement Quality of education
Development as a trading centre for neighbouring Lack of leadership
areas Development of slum pockets
Proximity to the Manchester of India – Ichalkaranji
Presence of heritage structures
Adequate educational facilities
Opportunities Threats
its:
Increasing development of sectors – engineering, High wages and raw material availability
horticulture, floriculture, handicrafts and Out migration of educated youths
automotives Unwillingness of the youth to continue the
High tourism potential profession of making Kolhapuri chappals
IT potential

VISION STATEMENT
Vision for Kolhapur was formulated on the basis of discussions and emerging strengths, current issues,
concerns, problems and desirable future focus areas. Based on the city’s strengths, futuristic desires and
perspectives, the vision that emanates is to develop –
Kolhapur as a hub for industries – engineering, IT and agro based, famous

as a tourist location with efficient urban services

9 INVESTMENT CAPACITY AND SUSTENANCE OF KMC
The investment capacity of KMC is assessed through a Financial Projection – Financial Operating Plan
(FOP), which gives a multi-year forecast of finances of the local body for a medium term. In line with the
phasing of identified investment from 2006/07 to 2011/12, the sustainability of KMC has been worked out.
A salient feature of the FOP is that all outstanding dues, including debt and non-debt liabilities, have been
taken into account.
The accounts data between the years 2001-02 and 2005-06 are used as the basis for determining past
trends in revenue and expenditure and arriving at appropriate growth assumptions for each of the income
and expense items. After forecasting the revenue account, the capital investments proposed under the
CIP are added to the forecast. The FOP is generated to assess the investment-sustaining capacity of the
Corporation, if KMC adopts a project funding structure comprising grants under the UIDSSMT framework
(accounting for 90 percent of the funding) and internal resources and loans (accounting for the rest). The
level of investment that KMC can sustain is then determined by studying the overall surpluses/ year-to-
year opening balance and debt service coverage ratio (DSCR).
If the debt service coverage ratio (amount of surplus available to pay interest and to repay principal that is
due) falls below 1.25 (i.e., less than 25 % cushion), then the investments are reduced gradually till the
DSCR exceeds 1.25 in all the years in the forecast period.
sectors); financing pattern -- 80% Central

9.1 CLASSIFICATION OF ANNUAL ACCOUNTS Govt. grants and 10% State Govt. grants)
The main items of income and expenditure, Using available internal resources and
classified into the revenue account and the improving upon the same through:
capital account, are projected in the FOP under Revision of the Annual Rateable Value at
the following categories -- certain levels
Revenue Account Receipts: Octroi, Taxes, Revision of water and sewerage charges at
Non Tax Sources, and Grants, Contribution specific intervals
and Subsidies Transfer of water and sewerage tax to the
Revenue Account Expenditure: respective account heads
Establishment, Operation and Maintenance of the collection performance
Maintenance, Debt Servicing- Existing and of taxes and charges at certain minimum
New Loans, Phasing of non-debt liabilities, levels for current uses and for arrears
and Additional O&M Borrowings
Capital Income, and
Capital Expenditure 9.3 KMC FINANCE OPERATING PLAN
9.2 FINANCING STRATEGIES FOR CIP Current ULB finances are projected under built-
in growth assumptions for income and
In determining a long-term financial strategy, expenditure items, to assess the impact of each
KMC plans to raise resources and fund the CIP such revenue enhancement measure being
by: suggested. The projections also aim at
estimating the surplus that will be available for
Accessing grants available under the servicing new debt. Part of the surplus, after
UIDSSMT framework (as percentage of meeting the additional O&M expenses on newly
investment proposed for funding by 2011- created assets and infrastructure, is translated
12 in urban governance and infrastructure into debt size and project size (grant component
plus debt component) based on certain

assumptions regarding interest rate, repayment 9.4 MUNICIPAL ACCOUNT – GROWTH

method and loan-grant mix. PROJECTIONS AND ASSUMPTIONS
A spreadsheet FOP model has been customised The standard assumptions under which the
to depict the financial position of KMC and work projections are carried out and certain
out the investment sustaining capacity of KMC, expenditure control and revenue augmentation
based on the FOP assumptions. The model can measures proposed in line with the mandatory
be used to calculate future surpluses under and optional reforms under the UIDSSMT
various scenarios involving combinations of framework are presented below.
internal revenue improvement, state support,
financing terms, etc.
Table 36: Important assumptions made in the projections

Head Assumptions
Property Tax
Growth in PT Assessments Follows the current growth rate with a ceiling of a minimum of 2% and a maximum of 5% per
year
Collection efficiency for both current and Maintain current levels if more than 90% or incrementally increase to 90% by 2011-12
arrears demand
Growth in tax rate Revise every five years starting 2007-08 by 40%
Widening the Tax net Identification and assessment of all properties in the ULB by 2007-08 through a GIS-based
survey
Water Charges
Growth in HSCs and demand Follows the current growth rate with a ceiling of a minimum of 1.5% and a maximum of 5% per
year
Collection efficiency Maintain current levels if more than 85% or incrementally increase to 85% percent by 2011-12
Water rate & new connection deposit Revise every five years starting 2007-08 by 25%
Increasing coverage Identification and regularisation of all unauthorised connections in the ULB over three years
starting 2007-08
Sewerage Charges
Growth in HSCs and demand Continues at present coverage (% of water HSCs) if above 90% or incrementally increases to
90% percent by 2011-12
Collection efficiency Maintain current levels if more than 85% or incrementally increase to 85% percent by 2011-12
Sewerage charge & new connection deposit Monthly charges to be levied @ 80% of water charges and revision every fourth year. New
connection deposit to be charged @ Rs. 2000 per connection starting 2008-09.
Other Income items and capital grants
Growth rate Current CAGR with a ceiling of minimum 8.35% and maximum of 10%
Expenditure Items
Growth rate Current CAGR with a ceiling of minimum 8% and maximum 8.5% and where expenditure
control measures are proposed (part privatisation, energy efficient systems etc.) Current
CAGR with a ceiling of minimum 6% and maximum of 10%
Salaries/ wages and Pay Commission 6th Pay Commission revision during 2007-08 (Maximum of additional 10% growth)
revisions
O & M expenditure arising from new assets The incremental O & M for new assets is calculated based on the following norms (O & M cost
(from 2007-08) as a percentage of capital costs).
Water supply : 2%
Sewerage : 5%
Solid waste management : 12%
Roads & drains : 2%
Street lighting : 8%
Urban poor/ slums : 2%
For the second year and beyond, a growth rate of 6% is assumed on the base O & M cost.
Outstanding non-debt liabilities Repayment over equal installments over a five-year period from 2006-07
Outstanding debt liabilities Repayment over equal installments over a one to 10-year period starting 2006-07
Project Financing Terms
UIDSSMT Framework UIDSSMT Framework
(All urban infrastructure/ governance/ urban 80% GoI Grant, 10% GoM Grant
poor related projects except land acquisition Revolving Fund
costs) Urban Infrastructure/ Governance Projects - Contribution of 25% of the total grants

Head Assumptions
received under UIDSSMT framework to the State Infrastructure Fund by 2011-12.
The sector-wise contribution to the revolving fund shall be:
o SWM projects – 10%
o Roads, drainage, water supply and sewerage – 25%
o Parking, truck terminal and other projects – 100%
Loan terms for commercial borrowings of Loan period : 20 years (5+15)
KMC Moratorium period : 5 years on principal repayment
Repayment method : Equal annual installments
Interest rate : 8%
Debt Service Coverage Ratio DSCR of at least 1.25
improvement of collection efficiency is bound to

9.5 INVESTMENT CAPACITY/ SUSTENANCE increase the investment capacity by an
additional Rs. 116 crores, which amounts to an
Given the existing financial position of KMC, the additional 15% of base investment capacity.
revenue and capital accounts of KMC are Further, revenue improvement measures in the
projected against the growth scenario and water supply and sewerage sectors like the
assumptions presented above. The FOP is regularisation of unauthorised connections,
generated from the sustainable investment point regular revision of user charges and new
of view in line with current growth trends against connection deposits, and improvement of
the recommended investment of Rs. 771 collection efficiency are bound to augment the
crores at constant prices till 2011-12. The investment capacity by an additional Rs. 556
results of the FOP are presented in Annexure crores on the base investment capacity.
20 and the same is summarized below.
9.5.2 MAJOR SOURCES OF REVENUE
The receipts are expected to be 2.22 times their
current levels by 2011-12 under the projection It may be observed from the figure above, that
scenario. The revenue improvement and the combination of grants availability under
expenditure control measures coupled with the UIDSSMT and implementation of the associated
availability of grants under the UIDSSMT reforms would further prop up the investment
framework, would give KMC an investment capacity of KMC and help KMC to maintain its
capacity of Rs. 556 crores (constant prices) present sound financial condition as well as fund
over the next six years against an investment its identified investments. This indicates the
need of Rs. 771 crores by 2011-12, i.e., need and applicability of the UIDSSMT
investment sustenance of 72% against the framework. At present, octroi is the single
need. largest source of revenue. Augmented revenue
from other sources like property taxes and user
9.5.1 IMPACT OF UIDSSMT REFORMS ON charges would diversify the revenue base as
INVESTMENT CAPACITY well as create enough surpluses, which together
with the capital grants under UIDSSMT will give
It is observed that following the current growth KMC enough leverage to take up major capital
trends, KMC can sustain an investment of Rs. works.
556 crores (constant prices), which is 72% of the
identified investment till 2011-12. This indicates
the present soundness of KMC’s finances and
its capacity to take up large-scale infrastructure
projects on its own. The impact of various
revenue improvement and expenditure control
measures is assessed in terms of their
contribution to the investment capacity.
Various revenue improvement measures in

property tax like the identification of unassessed
properties, regular revision of tax rates, and

has been carried out to identify the gap to be

9.5.3 FUND REQUIREMENT
bridged through UIDSSMT funding.
For the identified investment of KMC of Rs. 709
Water supply project: KMC should opt for
crores at constant prices and Rs. 556 crores at
100% O&M recovery by building O&M recovery
current prices, the funding pattern as worked out
as part of the construction contract. It could also
in the FOP model would be:
separate the pumping, transmission and
Table 37: CIP Funding Pattern distribution by adopting separate contracts. The
Mode and sources of Amount (Rs. Crs)– % of Total details are provided in annexure 21
Funding Current Prices Investment
Identified Sustainable 709.71 100 Parking facilities: KMC should have a
Investment till 2011-12 differential pricing mechanism. The city should
Grants (UIDSSMT) 610.23 86 be divided into four zones such as – emergency
GoI grants 542.43 76 service area, parking area with high rates,
GoM grants 67.80 10 parking area with minimum possible rates, and
Loan (Open Market/ FIs) 16.74 2 residential area.
Own sources (KMC) 82.74 12
* Of the total investment of Rs. 771.88 crores (current The parking charges can be applied in a manner
prices), only Rs. 587 crores is being proposed for UIDSSMT such that citizens are discouraged to park their
funding and the figure of Rs.556 crores reflects 72% of total vehicles in emergency areas. The system would
identified investment. enable higher parking charges to be levied in
particularly problematic areas and reduce
9.6 ACTION PLAN FOR KMC congestion. A new system of auctioning parking
sites would have to be evolved, which would
The above analysis and actions indicate that enable KMC to charge higher fees wherever
KMC is in a good position to tap UIDSSMT feasible. In order to ensure that the parking
funding. This is based on the implementation of contractor does not overcharge the vehicle
measures as well as the institutionalization of owners, a range of fees can be fixed.
reforms. This would still leave some areas that
would need to be addressed by KMC in terms of KMC should also encourage the participation of
implementation of a project like water supply. its citizens in implementation of the traffic and
parking regulations. The creation of parking
Some of the projects would be exploring infrastructure requires not only funds and
possible options of involving the private sector in technology, but also the cooperation of users,
areas of development, cost recovery, i.e., the vehicle owners. Although difficult, this
maintenance, billing and collection, pumping, can be achieved by involving market
treatment and distribution. KMC is planning to associations, residents associations and interest
frame the above in the following manner: groups who are keen to make Kolhapur a good
place to live in. Awareness campaigns about the
Roads project: KMC is exploring the problems of parking and area-based solutions
involvement of the private sector in the form of a are the key elements of this exercise.
build-operate-transfer (BOT) project. An analysis

10 CAPITAL INVESTMENT PLAN, STRATEGIES AND

IMPLEMENTATION PLAN
The City Investment Plans (CIP) in line with the identified vision for Kolhapur have been prepared through
a comprehensive process of assessment of the physical and social infrastructure sectors and stakeholder
consultations. The CIP for the city flows from the action plan recommended in the previous chapter.
These capital investment requirements are dovetailed in the financial projections that factor the growth in
income and expenditures for KMC. A review of the Detailed Project Reports for various projects already in
place has also led to the identification of sector specific strategies, implementation actions and associated
reforms. This chapter would discuss various projects that would be taken up by KMC as well as the
financial projections of the budgets of KMC.
The strategies adopted primarily have three dimensions -- improving the service delivery by efficiency
measures, improving service delivery by creating infrastructure assets and improving the governance
aspects of KMC. This section summarises the capital investments required for creating infrastructure
assets and various strategic interventions required in the implementation of such projects.
sustainability with regard to the delivery of

10.1 CAPITAL INVESTMENT PLAN basic services. As a part of CIP prepared
for the CDP, KMC has:
The City Investment Plan (CIP) is the multi-year
scheduling of identified and Analysed and discussed
prioritised investments. The The phasing of the identified projects and investments is with the stakeholders, the
scheduling or phasing of the
based on the following principles: existing applicable norms
plan is based on studies of Priority needs will be attended to, with developed and standards for
fiscal resources availability areas receiving priority over future development infrastructure services;
areas Agreed and
(for new investments and
O&M), technical capacity for Inter and intra-service linkages, viz. water supply recommended a
construction and O&M, and investments shall be complemented by reasonable and realistic
the choice of specific corresponding sewerage/ sanitation improvements option;
improvements to be Size and duration of the requirements, including Justified and provided
constructed for a period of preparation and implementation period rationales if the chosen
five years. option is not within the
Project-linked revenue implications will be
considered, such as installing house connections existing service level
The CIP is necessary to where supply and distribution capacities have been standards; and
record: increased
Identified the roles and
Assessment of city growth and responsibilities of various stakeholders in
infrastructure needs (to be carried out once the implementation of identified projects.
every five years);
Detailed feasibility/ engineering studies 10.2 CAPITAL FACILITIES, INVESTMENT
carried out for new projects; PHASING AND IMPLEMENTATION
Scheduling of investments of ongoing
projects due to cost and/or time overruns; The City Investment Plan involved the
and identification of public capital facilities to cater to
the demand of the city populace by the year
Assigning of priorities within the constraints 2011, 2021 and 2031 according to their short,
of available financial resources. medium and long-term infrastructure needs.
The City Investment Plan is an important
element of the CIP and significant in terms The project identification has been done through
of the city’s management process and a demand-gap analysis of the services and

reconciliation of the already identified projects as commitment to potential investors

part of various detailed engineering studies. considering the Kolhapur region.
Further project prioritisation and strategising of 10.2.1 PROPOSED PROJECTS UNDER UIDSSMT
the investments/ phasing of investment is based
on the strategies listed out under each service The total estimated capital investment required
sector as identified by KMC through stakeholder for providing efficient services to the present
consultations. The projects derived are aimed at population and future population of KMC by the
ensuring the optimal and efficient utilisation of year 2031 is Rs. 1107.71 crores at constant
the existing infrastructure systems and prices. Of this, a sum of Rs. 771.88 crores is
enhancing the capacity of the systems/ services proposed for investment by 2011-12.
to cater to the demands of future population
additions. Certain other projects listed as part of The planning horizon for the projects identified in
the CIP include developmental projects other the sectors of urban poor/ slums, land use/
than those addressing the core service sectors. development planning and other projects is
Such projects are also based on lists and/ or 2011-12. Accordingly, the entire identified
reports prepared by and for KMC. investment is proposed for funding by 2011-12
itself. The planning horizon for the core service
The City Investment Plan and the forecasted sectors of water supply, sewerage, drainage and
future needs for provision of capital facilities solid waste management is 2031. Hence, only a
under each identified sector are presented part of the identified investment is proposed for
below. These assets will help KMC universalise funding by 2011-12. KMC will need to plan for
the services for the current population as well as the remaining identified investment to be funded
accommodate the expected increase in beyond 2011-12, but before 2021. In case of
population. In sectors where long-term planning roads, traffic and transport sectors, 84 percent of
is required (for example, source development for the identified investment is proposed for funding
water supply), a 25-year planning horizon (till the by 2011-12, considering the immediate need for
year 2031) is considered. Assets created in such improving the road network and transport
sectors consider the projected population in this systems in the city. The table below presents the
horizon. KMC expects that these infrastructure summary of sector-wise total investment needs
assets would not only guarantee services to its and investments up to 2011-12.
citizens, but also give out a signal of proactive
Table 38: Sector-wise break-up of proposed funding under UIDSSMT in Rs. lakhs
Sector Total Investment Investment till 2011-12 (Rs. lakhs) % Investment till Identified by
Need (Rs. lakhs) Base Escalated % Sector 2011-12 against KMC
Cost Cost* wise of Total Total
Water Supply 6,477 6,477 7,999 8.1% 100% 7285
Sewerage & Sanitation 14,202 14,202 17,745 18.0% 100% 17322
Roads &Urban Transport+ 60,434 34,188 44,140 44.8% 84% 34025
Drains 14,412 11,420 14,611 14.8% 79% --
Street Lights 580 345 429 0.4% 59% --
Conservancy (SWM) 2,107 1,147 1,413 1.4% 54% --
Urban Poor/ Slums 4,883 4,883 6,531 6.6% 100% --
Land use/ Dev. Planning 5,285 2,135 2,766 2.8% 40% --
Others ++ 2,391 2,391 2,937 3.0% 100% 104
Total 110,771 77,188 98,571 100.0% 85% 58,736
Source: KMC data and CRISIL analysis
* Escalated cost includes physical contingencies and technical assistance at 10% of total cost and 6% cost escalation due to inflation.
+ Includes bus terminus – Rs. 1,578 lakhs, truck terminus – Rs. 845 lakhs, outer ring road – Rs. 10,200 lakhs and parking – Rs. 502 lakhs,
++ Includes River Conservation project and Mahalaxmi Temple project

Investment Need (Rs. Crores)
Others 24 24
Land use/ Dev. Planning 21 53
Urban Poor/ Slums 49 49
Conservancy (SWM) & Sanitation 11 21

Street Lights 3 6
Drains 114 144
Roads & Urban Transport 342 604
Sew erage 142 142
Water supply 65 65
0 100 200 300 400 500 600

Investment by ULB till 2011-12 Rs. Crores
Investment Need of City
44.8% of the total identified investment is proposed in the roads, traffic and transport sector towards up-gradation, new construction, widening and strengthening
of works, setting up of bus and truck terminus, parking facilities and new public transport systems, and bridges and junction improvements. The majority of these
projects are prioritised for funding by 2011-12. Sewerage system improvements and augmentation account for 18%, followed by storm water drains at 14.8%. 8%
of the investment scheduled till 2001-12 is proposed for the water supply project. This is followed by investment in non-core sectors for programs like heritage,
river conservation, tree plantation, system modernization and year-to-year minor capital works.
based on discussions with key stakeholders and

Sector-wise details of the City Investment Plan,
officials of KMC. There is an urgent need to take
capital facilities identified to be created and
up these projects, as these serve as triggers for
supportive actions and implementation aspects/
the development of Kolhapur city and the region
strategies are discussed in the following
as a whole. In order to project the city as an
sections in detail.
agricultural hub and as a tourist, educational and
industrial destination, KMC would need to
10.3 PRIORITISATION OF THE PROJECTS provide these basic facilities. The justification for
each of the projects is given below.
Of the total investment need of Rs. 771 crores,
KMC has prioritized projects worth Rs. 587
crores. The prioritization of projects has been

Water Supply Sector -- Sector Strategies & Investment Need

Strategy
Augment system for increased drawl from source in line with long-term planning and equitable distribution of potable water
to all through piped supply.
Develop supply system to the peripheral areas such as Kagal MIDC, Radhanagar and Bawda.
Revamp the outdated distribution system and metering system throughout the city.
The billing system needs to be established in a different way. Billing should be done on the basis of number of family
members. Consumption must be calculated depending upon the number of family members and accordingly the bill should
be raised. Also, a slab system can be introduced, wherein the rate of water tariff depends on the range in which the
consumption lies. Thus, more the consumption, higher will be the tariff rate. Telescopic billing must be implemented.
People using excess water lavishly must be heavily charged.
Adopt system to calculate and record water distributed in each ward/zone.
Rain water harvesting should be made compulsory.
Facilitate regular checking of internal plumbing and storage systems at the consumers’ end by licensing service providers.
Assured ability to meet the year 2031’s demand

Equitable distribution of water supply Rs. 64.77 crores
Water supply to be 24 X 7
Expected Investment
Outcomes needed
for the year 2011. It has been observed that

Priority needs (2011-12)
since the last 10-12 years, due to increasing
agricultural activities on both the banks of the
Currently, the Corporation supplies adequate
rivers Panchganga as well as Bhogawati, there
water to Kolhapur city. The problem is with is a considerable shortage in water supply. At
respect to equitable distribution of water supply times, this results in total stoppage of lifting
specifically in the ‘E’ ward, which gets polluted
drinking water due to the river becoming dry.
water from the downstream of the river
Panchganga. The quality of the water is beyond
Thus, in order to address the above problems,
the control of the existing treatment plant, which
KMC has proposed the augmentation of the
cannot remove bad smell and odour. The filters
water supply system as well as improvement of
start choking, thereby reducing capacity and
the distribution network. The total cost of this
ultimately forcing shortages in water supply.
proposed project is Rs. 64.77 crores.
Also, the existing water supply scheme was
designed for an expected population of 6,20,520
Action Plan for Implementation (2006-07 to 2011-12)
2011-
Water Supply 2006-07 2007-08 2008-09 2009-10 2010-11
12
upto 2011-12
Investment
Rs. 64.77 Cores 1.63 20.53 21.20 21.41
Pumping stations and rising mains 3 3 3

Capital Facilities
Gravity main 3 3 3
Distribution network augmentation 3 3
Elevated service reservoirs 3 3 3
Repair of water treatment plant 3 3
Distribution system 3 3
Metering system (Complete metered connections) 3 3

2011-
Water Supply 2006-07 2007-08 2008-09 2009-10 2010-11
12
Regularise unauthorised connections, Check distribution
3 3 3 3
leaks and reduce UFW
Sustenance
Support &
Measures
System
Improve collections to reach 90% collection efficiency by 2007-

85% 90% 90% 90% 90% 90%
08
Revise tariff every five years starting 2007-08 40%
Prepare an asset inventory and map the water supply systems for effective monitoring
Other actions/ Measures
Develop a comprehensive watershed management plan for the City including details of groundwater availability, use, and
potential and develop a policy and legal framework to use and replenish groundwater
Make land reservations for zones that are good for water recharge and water conservation
Implement findings of ongoing water audit and leak detection study w.r.t identified leaks, UFW and worn-out networks
Facilitate regular checking of internal plumbing and storage systems at the consumers’ end by licensing service providers
Ensure that high-volume non-domestic users compulsorily fit ISP metres
Promote individual group water connections in slum locations and discourage PSPs as a policy measure and to increase
accountability
Identify potential and existing polluting sources
KMC shall be responsible for the implementation of all the suggested actions
Sector
Capital investments on system refurbishment and replacements shall happen only after concluding the Water Audit and
Notes

identification of UFW sources.
Improvement of collection efficiency is applicable to both arrears and current demand.
Daily per-capita water supply (min of 243 lpcd)

Performance
Monitoring
Indicators
Elevated storage capacity w.r.t Supply (33%)

Distribution network reach as % of road length (min 85%)
System Coverage – water HSCs as % of PT assessments (min 85%)
Cost recovery through user charges (100% O&M expenses)
P ro p o s e d E S R a t B a v a d a .
R e p a ir W o rk
a t B a v a d a W .T .P .
8 0 0 m m d ia D .I .
K - 9 R / M a in L -2 0 0 0 M . P ro p o s e d E S R a t
P ro p o s e d B .P .T . M a r k e t Y a rd .
a t C h a m b u k h a d i.
C a p . 1 .8 0 la k h s . P ro p o s e d 4 0 0 m m d ia
D .I .K -7
7 0 0 m m d ia D .I . K -9 / M .S . G /M a in L - 1 4 3 8 M t
G /M a in L - 8 .5 0 K m .
P ro p o s e d E S R a t
S ha hu G arde n
G an a g a v e s h.
P ro p o s e d
ESR P ro p o s e d S u m p &
a t R a ja ra m C o lle g e .P u m p H o u s e .
B a lin g a w a t e r w o r k s.
B a w a d a W a te r W o r k s .
P ro p o s e d E S R a t
P h u le w a d i R in g R o a d K a la m b a W a te r W o r k s .
S h in g a n a p u r W a te r W o rk s .
P ro p o s e d W o rk s .
P o llu te d W a te r
P ro p o s e d S u m p
P rop o se d E S R a t & P um p H ouse
P u ik h a d i P ro p o s e d 2 0 0 m m
Ø D .I . K -9 S R . N am e o f W a ter C a p a c ity T o ta l Q ty . o f W a te r t o E .S . R .
R / M a in L - 3 0 0 M t. N O . W o rk s a n d c o v e re d P o p u la t io n S e r v e d o n G rou n d F . S . L. O ut Let
b e s u p p lie d in Y e a r 2 0 2 5 f e e d in g
in L it rs E S R /G S R Y ear 2025 L e v e ls R . L. R . L.
E . S . R . ( E x it + P ro p o s e d ) to E S R / G S R Z one
1) G angaw es h 1 5.0 0 L ak h 3 6 ,8 70 6 .0 0 5 5 4 .0 0 5 7 1 .0 0 5 9 4 .65

2 ) M ira jk a r T ik a t i R a ja ra m 1 5 . 0 0 L a k h 2 4 ,5 81 4 .0 0 5 7 5 .0 0 5 9 9 .0 0 5 9 2 .42
C o lle g e .
3 ) P h u le w a d i R in g -r o a d 2 0 .0 0 L a k h 4 9 ,1 64 8 .0 0 5 8 5 .0 0 6 0 3 .5 0 5 9 7 .00
4 ) Jara g N ag a r 2 4 ,3 12 4 .0 0 5 8 6 .0 0 6 0 3 .0 0 5 9 8 .00
1) Kasaba B aw ada 2 0.0 0 L ak h 4 9 ,1 64 7 .5 0 5 5 4 .0 0 5 7 4 .0 0 5 6 6 .50
2 ) M a rk e t Y a rd 2 0.0 0 L ak h 4 9 ,1 64 8 .0 0 5 5 5 .6 5 5 7 8 .0 0 5 7 3 .00
1 ) P u ik h a d i E S R . 5 .0 0 L a k h 1 2 ,1 42 0 .2 0 6 3 0 .0 0 6 4 6 .0 0 6 4 3 .00

Sewerage system -- Sector Strategies & Investment Need
Strategy
Capacity expansion, collection and conveyance system to match additional water supply and provide for environmentally
safe disposal
Eradicate conditions for malaria, dengue and other water-borne diseases
Use new technology in network (trench-less technology) and in STPs UASB, etc.)
Ensure location of STPs under the river conservation plan so that benefits are maximized AND ensure full capacity
utilization of existing treatment plants
Improve and ensure access to sanitary facilities for the urban poor and slum dwellers
Encourage pay & use category of public conveniences with community involvement in the maintenance of the same
Synchronization with water supply capacity, ability to meet Rs. 142.02 crores
service level targets and disposal norms
Expected Investment
Outcomes needed
raw sewage will be treated up to a desired level

Priority needs (2011-12) before its utilization for irrigation purposes or
disposal into the Panchganga River. The
The quality of water on the downstream of the following benefits will be achieved as a result of
Panchganga river has got highly affected the proposed scheme:
because of the industries located on the
upstream of the Kolhapur city. The nallahs The river will have perennial flow of treated
carrying domestic waste water and sewage from wastewater.
the Kolhapur city dumps untreated waste water The river water of Panchganga on the
into the river and villages and towns on the downstream side of Kolhapur is used for
banks of the river drinking purpose. Therefore a substantial
population outside the Kolhapur city will be
In order to address this issue, KMC has directly benefited.
proposed a underground sewerage system General hygiene and sanitation condition of
project under the UIDSSMT scheme. The total the city of Kolhapur will be improved.
project cost is Rs. 142.02 crores. The project River bio-diversity will improve in general,
includes the setting up of three pumping
due to the flow of treated water in the river.
stations, I&D works, a sewage treatment plant
(STP) and external sewer lines. At the STP, the
Action Plan for Implementation
Sewerage System/ UGD 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Investment upto
2011-12
Rs. 142.02 crores 23.23 71.01 47.79
Pumping stations and rising mains 3 3

Facilities
I&D works 3 3 3
Capital
New sewerage treatment plant 3 3 3

Internal sewer lines 3 3 3

Sewerage System/ UGD 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Ensure every PT assessment & water connection is
3 3 3 3 3 3
e Measures
Sustenanc
Support &
also connected to the UGD

System
Byelaws to be framed for sewerage charges 3

Levy of charge for sewerage connections to recover
3
O&M
Isolate sewerage system from drinking water and storm water lines
Other actions/
Eradicate conditions for malaria, dengue and other water-borne diseases

Measures
Decentralize the system of operations for effective service delivery

Ensure full capacity utilization of existing treatment plants
Improve and ensure access to sanitary facilities for the urban poor and slum dwellers
Encourage pay & use category of public conveniences with community involvement in the maintenance of the same
Sector
Cost recovery on service is possible only through the introduction of sewerage charges directly or in the form of tax, which
Notes

however is in want of political will.
Collection network reach as % of road length (min 85%)

Population coverage with sewerage network (min 70%)
Performance
Monitoring
Indicators
System coverage – UGD HSCs as % of PT assessments (min 85%)

UGD Network & Rising mains/ Road Length Covered (80%)
Sewerage treatment (Against generation) (100%)
% of Treatment capacity w.r.t water supplied (85%)
Cost recovery through user charges (100% O&M expenses)
PANCHAGANGA
R IV E R .
N OR TH
.
ll a
K U M B H I K A S A R I R IV E R .
Na
p
.
L in e B a z a r N a lla
m a
tC
pa
Ba
K .T . W e ir .
ll a
Na
a
ak
la n
wa
Ka
lla .
B . P .T a t E S R a t K a w a la n a k a .
B atuk e shw ar
a
i N
a nt
Jay
.
la
al E S R a t R a ja r a m p u r i
N S c h o o l N o .9
li
a
h ESR at
ud R a ja r a m p u r i 1 4 th la n e
B H O G A V A T I R IV E R . h
lla
D E SR at
ESR at G S R at
a
P a d a m a v a ti. Pu m p H ouse
ti N
M a n g a lw a r p e th R a ja r a m p u r i 1 4 th la n e .
ma
Go
P u ik h a d i W . T . P .
N ew S um p &
P u m p H ou se
a t A p a te n a g a r.
E SR at
J a w a h a rn a ga r.
M B R a t P u ik h a d i.
G S R a t V a ib h a v T e k a d i.
W T P a t P u ik h a d i
C a p . 5 0 .0 0 M L D .
K A LA M BA L AK E S u m p & P u m p H ouse
a t M o r e w a d i. C a p . 2 .0 0 L a k h litr s .
N am e o f W ater C a p a c it y T o t a l Q ty .o f W a te r to E .S . R .
S R . W o rk s a n d c o v e re d P o p u la tio n S e r v e d o n G ro u n d F. S. L. O u t Let
in L itr s b e s u p p lie d in Y e a r 2 0 2 5 fe e d in g
N O . E . S . R . ( E x it + P r o p o s e d ) 1 3 . 0 0 L a k h E S R /G S R Y e ar 202 5 L e v e ls R . L. R . L.
to E S R / G S R Z one
C a p . : 5 0 .0 0 M L D .
E X IS T IN G E S R
1 ) S a lo k h e N a g a r 2 2 .5 0 L a k h 55,307 8 .0 0 5 9 5 .8 9 0 6 1 4 .0 0 6 0 7 .2 3
2 M a n g a lw a r E . S . R . 1 5 .0 0 L a k h 36,872 5 .5 0 5 7 5 .0 0 5 9 9 .9 5 59 2.42
3) P a dm aw ati E S R 5 .0 0 L a k h 12,292 1 .5 0 5 6 6 .3 0 5 8 5 .6 8 5 8 1 .0 0
4) Jaw aha r N ag ar 1 5 .0 0 L a k h 36,873 5 .0 0 5 8 8 .8 2 6 05.00 6 0 1 .6 9
5 ) V a ib h a v T e k a d i 1 0 .0 0 L a k h 36,872 2 .3 0 6 6 0 .0 0 6 6 5 .0 0 6 6 2 .0 0
6) R ' p u ri - 9 th L a n e 2 2 .5 0 L a k h 55,309 7 .5 0 5 6 5 .3 0 5 5 4 .0 0 5 7 8 .0 0
7) R ' p u ri - 1 4 th L a n e 1 3 .5 0 L a k h 54,080 8 .5 0 5 8 0 .5 0 6 0 0 .0 0 5 8 4 .0 0
8 ) K a v a la N a k a 22.50 L akh 55,300 8 .5 0 5 6 6 .7 5 5 9 8.00 58 9.00

4. Freeze on rickshaw permits in the city

10.3.1 TRANSPORT PLANNING AND TRAFFIC
5. Creation of hawker zones to remove the
MANAGEMENT -- REMEDIES SUGGESTED BY
encroaching hawkers from footpaths
THE CITIZENS GROUP
6. Redesign of the major junctions for better
Short term management of traffic
7. Beautification of roads
1. Shifting of Transport offices and Grain
Long term
Trading offices to market yard or truck
terminus 1. Development of inner and outer ring roads
2. Management of the traffic consisting of 2. Relocation of Railway station and ST stand
heavy vehicles by notifying entry and exit from the center of the city
periods during the day 3. Creation of pedestrian subways and Bus
3. All approved parking lots in commercial lanes for all major roads of the city
buildings should be made accessible (on
payment) to general public
Sector Strategies & Investment Need
Strategy
Increase carrying capacity through widening and improve riding quality through strengthening of existing roads. Create
new roads to cater to missing links and develop areas and present the urban face of the city. Institute an efficient, safe
and accessible transportation system for the entire region.
Street lighting must be provided in the newly developed areas such as the new extension area, the Bharati Vidyapeeth
area and the area near D.Y. Patil Medical College.
Parking spaces should be developed on pay and park basis, involving private developers (PPP basis). Modify the D.C
rules to suit parking requirements.
The dense areas need to be marked as core areas. No heavy buses and or vehicles must be allowed in this area for a
radius of 9 kms. For transportation purposes, a mini-bus shuttle service can be provided by KMT in this area.
Relocate the city bus terminus on the periphery of the city; only KMT buses should be allowed within the city limits. The
outer ring road should also be developed.
Shift utility services from Laxmipuri to Fort Corner road and restrict parking of vehicles and setting up of kiosks.
Six-seater rickshaws should not be permitted within the boundaries of the city.
Relocate railway station and shift the goods yard to the periphery of the city.
Flyover from Kawala naka to CPR needs to be proposed.
Allocate area for hoarding through a proper location study. It should also be made a potential source of revenue.
Re-plan the old bazaars in order to bring about efficient utilization of space.
Hassle-free travel on the roads and effective transportation Rs. 604.34 Crores
system easily accessible to everyone
Expected Investment
Outcomes needed
produced in Kolhapur districts. Moreover, it is a

IRDP -- Priority needs (2011-12)
major connecting point to most of regional cities
within Maharashtra, given the fact that one
Kolhapur is one of the major developing cities of National highway and four State highways pass
Western Maharashtra. It contributes to the through the city. The five highways that pass
agricultural production and the industrial growth through the city are: 1) Kolhapur – Ratnagiri
of the region. The overall growth of the region is road NH – 208, 2) Kolhapur – Gagan Bawda
dependent on the growth of Kolhapur city. With
road SH – 115, 3) Kolhapur – Radhanagari
the increasing urbanization and emerging trend, Road SH-130, 4) Kolhapur – Gargoti Road SH –
wherein a number of multinational industries, IT 132, 5) Sahunaka – Temblai railway gate SH –
parks, call centers are setting up their offices in
128. All these factors are calls for
Kolhapur. At the same time Kolhapur is the reorganization of some of the transport corridors
central trading market for all the agro products

and development of some new roads in way that count survey, origin destination survey (ODS).
would ensure smooth flow of traffic in the city. The survey would help in ascertaining average
daily traffic of certain roads, peak hour traffic.
All the above factors would lead to a The next step would be to undertake a
considerable increase in city traffic. On account topographical and engineering survey which
of the slow development of transportation includes, map study, road inventory survey,
facilities such as ring roads and internal roads, material survey, ground survey, pavement
compared to the development of the city as a surveys, test pit investigation. This would be
whole, Kolhapur is facing tremendous setbacks. followed by identification of roads of different
In view of the ever-increasing traffic in the high- carriage capacities, identification of roads &
density corridors, steps are being taken to pavements that requires redevelopment, road
improve traffic conditions and to provide better network design with varying capacities and
connectivity. In order to tackle the traffic and pavement design, underpasses design. The last
connectivity problems, KMC has proposed an step would be to carry the feasibility and based
IRDP under the UIDSSMT scheme. This project on that narrow down at the cost required to
will include widening of existing roads, laying undertake the development and finalise the toll
down of storm water drains, provision of to be collected to cover the capital and
footpaths and dividers, improvisation of operational costs.
junctions, street lighting and beautification of
roads. The total cost of this proposed project is Rs.
311.00 crores. However, KMC proposes to take
For the design purpose it is important to up the project on a BOT basis. It is seeking a
determine the capacity of which the road is build viability gap funding under UIDSSMT to the tune
and for the same traffic studies be carried out of Rs. 114 crores.
which would include classified traffic volume
KOLHAPUR IRDP N
G
NORTH
ROAD LEGTH (Km) COST (Cr.)

A ER1
A
ER 35.97 91.79( Sub Total)
SUGAR MILL IR 7.60 19.43 (Sub Total)
G R LR 23.75 52.269 Sub Total
TANK I ROB 25.00

H
UNDERPASS 06.00
LR1
K BAVDA
V
TOLL NAKA 02.00
C DRAINAGE PLANT
UTILITY SHIFTING 100.00
BHOSALEWADI
NEW
Total 67.32 296.489

PALACE
KADAMWADI
E
TANK
P
PUNA
N
R.T.O.
RA LR2 OFFICE R
JADHAVWADI
TN
OR
AG
A
IRI SIDHARTH
NAGAR
CHIMASAHEB SHAHU SMARAK
TARABAI
GARDEN
CHH. TARARANI
CHOWK
LR3
ER2
SANT GORA
KUMBHAR VASAHAT
CHOWK BHAVAN RUIKAR GA
MARKET ND
HIN
COLONY
LR8SHAHU
STATUE
RAILWAY
CENTRAL
YARD
TRUCK TERMINUS
AG
AR
STATION
S. T. RUKMINI
STAND NAGAR
BAGAL
DHUDHALI
PANJAR
SHIVAJI SHAHUPURI CHOWK POL VIKRAM
TARARANI NAGAR
LEGEND
LEGEND
STATUE
GANGAVES BINDU VIDYAPITH
LR7 CHOWK SHIVAJI
GAGANBAVDA MAHALAXMI
LR9 UDYAM
NAGAR RAJARAMPURI
SHALINI TEMPLE KOTITIRTH MUDSHINGI
PALACE BHAVANI TALAV
RAJARAM
ER6
MANDAP
RANKALA RAIPHAL
OR-OUTER RING ROAD

PHULEWADI SHALINI SHAHU NAGAR HUPRI RENDAL
CINETON TALAV SHASTRI
JAYPRABHA NAGAR
CINETON PRATIBHA
IR2
NAGAR
PADMALE
CHH. SAMBHAJI
NAGAR
JAWAHAR
NAGAR
AGRICULTURE
COLLEGE
ER-ENTRY ROADS
NEHRU LR10
IR-INTERNAL ROADS
NAGAR
RAJARAM
I.T.I TALAV
STATE BANK SUBHASH
COLONY NAGAR SHIVAJI
UNIVERSITY
TAPOVAN
IR1 LR-LINK ROADS

ER3
CENTRAL
JAIL JARAG
NAGAR
RAJENDRA
NAGAR
ROB
LR6 LR4 KOLHAPUR AIR PORT
PACHGAON
I
GARGOT
RADHANAGARI
UNDERPASS
BA
LR5
ON
ER5
NG
HGA
OR1
LO
PAC
ER4
RE
KMC BOUNDARY

Outer Ring Road -- Priority needs (2011-12) In order to address these issues, KMC has
proposed to build a modern bus terminus with
This outer ring road project aims to establish a supporting infrastructure facilities for the
developed network of main roads in the city passengers travelling in and out of Kolhapur
joining the National Highways. The total cost of through private sector participation. KMC has
this proposed project is Rs. 102 crores. The proposed this project under the UIDSSMT
outer ring road would be build from Rajendra scheme. The idea is to develop a modern
nagar jakat naka to R.K. Nagar Jakat Naka to transport facility of required standards as per
Baba Jargarnagar Naka to Kalamba Jakat Naka transportation guidelines.
to Apte NAgar Jakat Naka to Phulewadi Jakat
Naka. Apart from this six entrance road to the The function of a bus terminus is to provide with
city would be build, two internal roads, 10 link the necessary facilities that would ensure
roads be constructed and 2 underpasses to the smooth flow of the vehicles and passengers.
railway lines would be constructed. The design will take into consideration traffic
demand, traffic characteristics, function of
Bus Terminus -- Priority needs (2011-12) terminal, and assessment of capacity, facilities
and costs involved. It will also consider
locational analyses, key risk factors, weighing of
KOLHAPUR IRDP N
G
NORTH
various costs v/s benefits to the various
A
NH4 stakeholders and various options for
A
development.
SUGAR MILL OR-Outer ring road outside KMC
G R
limit @20 km in length
H
TANK I
OR1-Outer ring road in KMC limit
@10.30 km in length
The approach road to bus terminus is 30 mts
C
K BAVDA
V wide. And width of the entry to the terminus will
be 15 mts. The site has easy access to National
DRAINAGE PLANT
BHOSALEWADI
NEW
PALACE
KADAMWADI
E
Highway and it is at a distance of 500 mts from

TANK
P
PUNA
N
RA
R.T.O.
OFFICE R
JADHAVWADI
TN
OR
AG
CBS. Some major commercial and industrial

SIDHARTH CHH. TARARANI
IR I TARABAI
SANT GORA
A NAGAR
CHIMASAHEB SHAHU SMARAK
GARDEN
CHOWK KUMBHAR VASAHAT
CHOWK BHAVAN RUIKAR GA
MARKET ND
HIN
COLONY
SHAHU
STATUE
RAILWAY CENTRAL
YARD
TRUCK TERMINUS
AG
AR
S. T. RUKMINI
developments are up coming in the catchments

STATION
STAND NAGAR
BAGAL
SHIVAJI SHAHUPURI CHOWK PANJAR VIKRAM
DHUDHALI POL NAGAR
TARARANI
LEGEND
STATUE
GANGAVES BINDU VIDYAPITH
CHOWK SHIVAJI
UDYAM
GAGANBAVDA MAHALAXMI NAGAR RAJARAMPURI
MUDSHINGI
of the proposed bus terminal and thus it is

SHALINI TEMPLE KOTITIRTH
PALACE BHAVANI TALAV
MANDAP RAJARAM
RANKALA RAIPHAL
OR-OUTER RING ROAD

PHULEWADI SHALINI SHAHU NAGAR HUPRI RENDAL
CINETON TALAV SHASTRI
JAYPRABHA NAGAR
CINETON PRATIBHA
NAGAR
opportunity to encash upon the demand

PADMALE
CHH. SAMBHAJI
NAGAR
JAWAHAR
NAGAR
AGRICULTURE
COLLEGE
ER-ENTRY ROADS
NEHRU
IR-INTERNAL ROADS
NAGAR
RAJARAM
generated from these new developments in the

I.T.I TALAV
STATE BANK SUBHASH
COLONY NAGAR SHIVAJI
UNIVERSITY
TAPOVAN
CENTRAL
JAIL JARAG
LR-LINK ROADS
catchment area.
NAGAR
RAJENDRA
NAGAR
ROB
PACHGAON
KOLHAPUR AIR PORT

I
RADHANAGARI
GARGOT
UNDERPASS
GAON
BA
NG
OR1
PACH
LO
RE
KMC BOUNDARY
It will include a Grade I hotel with modern
amenities like a gym and health club, a fast food
All private buses start around the central bus centre with pool side activities, booking offices, a
stand (CBS) due to which the whole area conference hall, luxurious accommodation for
experiences traffic congestion. Due to the tourists, shops, waiting areas, showrooms,
increasing problems of traffic congestion, the space for IT, space for local commodities etc. It
Government of Maharashtra has enacted that will also include night shelters for the
private buses shall not start from within the 200 economically weaker class with facilities like a
m circumference from the central bus stand. All 24 hour restaurant, dormitories and good quality
private buses now start from major approach lodging for families. All these wide range of
roads to the central bus station; thus, traffic activities in the building expresses a unified &
congestion takes place beyond this area and integrated approach to meet the major
major accidents occur in this zone. As a result, challenges faced by the city planning
travel operators and passengers face several management. The total cost of this project has
constraints such as the lack of dedicated been estimated to be Rs. 15.78 crores.
berths for parking space, limited parking time,
absence of passenger seating capacity at the
terminal, issues of unofficial/ illegal parking
charges, and lack of security in business.

20,000 to 25,000. The major roads in Kolhapur

Truck Terminus -- Priority needs (2011-12)
city are of 6m-12m width; the five approach
roads intercrossing the city are of 15m-18m
Goods transport accounts for about 70-75% of
width. In order to meet the pressures posed by
transportation in and around the suburbs of the the increasing commercialization of the city and
city. Agricultural and commercial commodities forthcoming projects like multinational industrial
are the primary goods being transported. The
offices, corporate offices, IT offices, call centers,
city is the transit point for interstate transport and garment parks, traffic congestion needs to
routes between Maharashtra, Goa, Karnataka be reduced at the earliest.
and the southern states, and also serves as a
key transport location.
To tackle this problem, KMC has proposed the
development of a truck terminus at the junction
Emerging trends in transportation have caused of NH-4 and the road approaching Kolhapur city.
problems of severe traffic congestion. The major The truck terminus will also include additional
business takes place in the heart of the city, i.e., infrastructure such as security and
Shivaji road, Bhausingaji road, Mahalaxmi
administrative offices, octroi offices, transport
temple, Mahadwar road, Tarabai road, offices, banking offices, residential premises, a
Rajarampuri main road, Shahupuri, Vyapar toilet block for drivers, and lodging, i.e,
Peth, Laxmipuri, the grain market and market
accommodation for traders. The terminus will
yard, etc. All these roads are situated in the also have a first aid center, fire station,
congested Gaonthan area. The peak period for transformers and general lighting for the
business transaction is 10.00 a.m. to 8.00 p.m.
campus, warehouses, automobile shops,
During this period, heavy traffic causes major workshops, service stations, vulcanizing centres,
traffic congestion. dhaba- restaurants, petrol and diesel filling
stations, a motel for traders and drivers, etc. The
Vehicles entering the city daily, i.e., floating total cost of this project has been estimated to
vehicle trucks number 1,500 to 1,600, tempos be Rs. 8.45 crores.
2000 to 2100, and all others vehicle approx.
Proposed site admeasuring 81018.71 sq.m

Total construction area 9181.81 sq.m
Total project cost Rs. 8.45 crores

Proposal for parking space for the above

Parking facilities -- Priority needs (2011-12) sites is as follows:
Major arterial roads of the city have the width of 1. S.T. Stand: Proposed site located in the heart
6 – 12 mts. The other National and State of the city admeasures 3450 sqm. The existing
highways that cross the city have the width of 15 parking space can accommodate only up to 11
– 18 mts wide and these constitute only 10% of four wheelers. A multilayer parking facility is
the total road length in the city. The city is proposed that can accommodate up to 26 four
witnessing rapid urbanization and a number of wheelers.
commercial developments, IT developments,
call centers, garment parks are upcoming 2. Station Road: The site proposed to develop
generating additional demand for the parking as parking space admeasures 382.82 sqm.
space. With the prices of lands in the main city KMC intends to develop a multi layer parking to
area shooting up it is no more feasible to provide utilize the vertical space as the horizontal
parking space in the conventional fashion. parking provision is not feasible. It would be a
mechanized multilayer parking enabling parking
To meet demand for parking space in the city of 34 cars on the same land parcel.
KMC has short listed areas to be developed for
parking space on priority basis. The areas are 3. Shivaji Chowk: Again a multilayer car
parking facility is proposed on 764.78 sqm area
1. S.T. Stand: This area witnesses the that can facilitates parking space for 44 cars at a
maximum traffic through out the day. The site is time.
at the junction of major roads approaching S.T.
stand area. The surrounding area to the site is 4. Mahalaxmi Temple: The proposed site is
entirely commercial and generates huge admeasuring 383.83 sqm. This proposed
demand for parking space. parking space is expected to provide parking
space to the vehicles coming specifically for the
2. Station Road: The site is located at the temple. On an aveage a total of 300 to 400 car
junction of three major commercial area. Given come in the area for the purpose of visiting
the demand for parking space, this area requires temple alone.
mechanized multilayer parking.
5. Kapilteertha Market: The proposed site is
3. Shivaji Chowk: One of the most active admeasuring 525.35 sqm.
commercial area, situated at the junction of
major roads, Bhausinghji road and Shivaji road. The parking provision at various places should
The sub-roads meeting this place are be a part of the overall transportation plan for
gaothan type i.e. 4.5m wide with no scope for the city, ensuring smooth flow of traffic. The
widening or changing the existing road parking design study must include following
patterns. This calls for the provision of among others the inventory of total parking
multilayered parking space. space within a particular area and analyses of
specific problem such as poor location or
4. Mahalaxmi Temple: Located in the heart of deficiency of visitors or reserved parking areas
the city and being a famous pilgrim place in and employee parking. Additionally
Maharashtra, it attracts a number of visitors determination of parking duration and turnover
every day. The area surrounding the temple is rates is required.
highly commercial. Mahalaxmi temple has the
character of urban villages with narrow roads. Moreover, parking standalone cannot be viable.
Visitors to the temple and to the commercial Therefore, a feasibility study must broadly
area require an organized parking space. address the demand for the parking space,
internal rate of return from the project, parking
5. Kapilteertha Market: It is located in the fees that needs to be charged to recover the
vicinity of Mahalaxmi temple. Moreover, the area capital and O&M costs and finally what structure
is characterized by commercial activities. The should be followed to manage the parking
parking space provided is insufficient to meet space.
the increasing demand for parking space.


Roads, Street lighting, Transportation and Traffic Management 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
upto 2011-12
Investment
Rs. 341.88 Crores 2.143 71.38 83.76 75.26 87.12 22.21
External Roads 3 3 3
Internal Roads 3 3 3
Facilities
Capital
Connecting links 3 3
Underpasses 3 3
Utility Shifting 3
Toll Nakas 3
Identification of prime traffic corridors and missing links
3
e Measures
Sustenanc
Support &
System
Development of Regional Connectivity and Eastern bypass

(ORR) 3 3
Public transport improvements like provisions for bus bays, bus stops with signages, furniture, etc, shall be planned and
Coordination
implemented.
measures
A regional traffic and transportation study shall be conducted for integrated planning and development of ring roads, bypass
roads, and other regional connecting roads. The study shall form the basis for the fixing of alignment, land acquisition if any, and
other such regional projects to be implemented.
PPP options O&M may be explored.
A bus workshop with technological back-up must be established. State-of-the-art technology must be used.
Other actions/
Assess the capacity of KMT and identify the training needs.

Measures
Hawker zones must be created as part of the land use policy, and continuous efforts made to avoid encroachments
Create parking spaces and increase parking charges in prime areas and congested zones.
Provide for bicycle networks, and pedestrian facilities like pedestrian plazas and footpaths.
It must be ensured that at least 60 percent of the roads have footpaths (i.e., roads of 20 feet and above)
Design of new roads shall necessarily have provision for shoulders, foot paths, utility ducts and storm water drains under the foot
paths, as well as landscaped median and concealed cabling for lighting system
Sector Notes
Public transport improvements shall include identifying and locating bus bays, developing dedicated bus lanes on major roads,
etc. Location of city bus stops shall be always such that no city bus stop is within 100 mt distance of a junction/ intersection. City
bus bays shall have separate provision for an extension from the carriageway.
Coordinated efforts between KMC and the respective traffic police departments need to be made for effective traffic
management and to ensure disciplined travel and behaviour.
Street lighting systems shall constitute of automated switching, dimming mechanism, etc.
Performance
Road network – Degree of connectivity in terms of area under roads (in conformity with DP proposal)
Monitoring
Indicators
Road condition – percentage of municipal roads surfaced (100% - CC/ BT surfacing)

Road condition - roughness (Max. permissible 2000mm/km); rutting (20 mm) max. permissible (1 %)
Public transport – CIRT norm of 37 buses/ lakh population; > 90% fleet utilisation; average load factor > 75%
Storm Water Management -- Sector Strategies & Investment Need
Strategy
Network expansion, conversion to closed and pucca drains Increase parking charges especially in prime areas and congestion
zones.
Universal coverage and disposal capability Rs. 144.12 Crores

Expected Investment
Outcomes needed

gradation and about 405 km. of new closed

Priority needs (2011-12) drains are proposed for funding by 2011-12. The
majority of the investment is directed towards
An investment of Rs. 114.20 crores (84% of total the formation of new networks in un-serviced
investment need in the sector) is proposed by areas and newly added areas in KMC’s
2011-12. Priority capital investments are jurisdiction. Further, KMC will need to plan
expected to cater to the current service gap and beyond 2011-12 for the augmentation of the
medium-term needs in line with the proposed network by another 168 km. in line with new
road network to be completed by 2021. About roads to be developed beyond 2011-12 to cater
398 km. of open drains are proposed for up- to the long-term needs of 2031.
Storm Water Drainage 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
upto 2011-12
Investment
Rs. 114.20 Crores 12.96 19.38 27.36 20.87 16.81 16.81
Up-gradation of about 338 km. of open drains to closed

3 3 3 3
Facilities
Capital
drains
New formation of about 405 km. of pucca open and
3 3 3 3 3
closed drains
Sustenance
Support &
Measures
System
Every divided road to have closed drains on either side

3 3 3 3 3 3
and undivided roads to have drains on at least one side
Measures
Isolate sewerage system from drinking water and storm water lines
actions/
Other
Identify, delineate, sanitize and protect the natural drainage system of the city
Develop common washing areas in identified hawking areas with connection to treated water and drainage
Sector
All new roads to be designed shall have adequate provision for storm water drains.
Notes

Constructing new drains shall be integrated with the development of new roads.
Performance
Monitoring
Indicators
Drainage network reach as percentage of road length (min 150%)

All divided roads to have drains on either side and undivided roads on at least one side.

Solid Waste Management -- Sector Strategies & Investment Need
Strategy
Source segregation and door-to-door collection, effective transportation and environmentally safe disposal.
Implement 100 % door-to-door collection of solid waste.
Women, especially household wives, should be given training in solid waste management.
Segregate waste at three levels -- solid recyclable waste, biodegradable waste and toxic waste and train KMC workers in
segregation of waste.
Create awareness on the impact of improper solid waste management, the importance of segregation of waste and the
means to do it.
Start the practice among societies of giving prizes to individuals for segregating waste regularly.Increase parking charges
especially in prime areas and congestion zones.
Reduced waste generation, hygienic conditions and a clean city Rs. 21.07 crores
Expected Investment
Outcomes needed
2011-12 to meet the current gap and immediate
Priority needs (2011-12) needs. Also, 338 handcarts are planned to be
acquired by 2011-12 to cater to the house-to-
An investment of Rs. 11.47 lakhs (54% of total house collection activity by KMC.
investment need in the sector) is proposed by
2011-12. Priority capital investments are meant These investments will help KMC to comply with
to cater to the current service gap and the the SWM Rules 2000 by minimizing the manual
medium term needs of 2021. The requirements handling of garbage and developing landfill sites
at the disposal site are planned for the horizon that are in conformity with legal requirements.
year 2031 and accordingly, infrastructure for KMC will need to plan beyond 2011-12 for
landfill and composting is proposed. further augmentation of vehicle capacity and
Infrastructure development for landfill would construction of more intermediate transfer
entail a year-to-year capital expense. In line with stations in line with the changing land use
these developments, augmentation of vehicle pattern and waste generation trends, to cater to
capacity by 150 tonnes would be required by the long-term needs of 2031.
Solid Waste Management 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Investment upto
(Rs.crores)
2011-12
Rs. 11.47 Crores 0.32 6.80 1.10 1.14 1.38 0.73
Increase fleet size/ capacity by 150 tonnes. Acquire

3 3 3 3
378 handcarts
Facilities
Capital
Acquire new disposal site 3

Develop land fill infrastructure and composting facility
3 3 3 3 3
at disposal site
Implementation of complete house-to-house collection

3 3 3
Sustenance
Support &
Measures
System
Part-privatisation of house-to-house collection

3 3 3
Awareness campaign on source segregation
3 3 3 3 3 3

Solid Waste Management 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Create a separate multi-disciplinary SWM cell with expertise in Engineering Human Resources/Personnel Management,
Awareness Generation/ Social Behaviour, Health.
Increase the ambit of Solid Waste Management to include “recycling” and to facilitate and regulate the sector accordingly.
Ensure optimum utilization of existing fleet.
Initiate I-E-C campaigns to create awareness among the urban poor and slum dwellers of better SWM practices, through
identified 25 NGOs
Initiate steps to share the responsibility of primary collection of segregated garbage with citizens. Also, institutionalise rag-
pickers associations and integrate them with the system to carry out primary collection activities.
Develop transfer stations in a scientific and eco-friendly manner to act as decentralised waste processing sites for
different types of material.
The option of establishment of additional Intermediate Transfer Stations to reduce cost of transportation needs to be
Sector
Notes
explored.
Identify localised/ decentralised locations for processing/ disposal/ reuse of bio-degradable and plastic waste.
Performance
Source segregation – reduction of waste to be collected (min 70 % of waste generated)

Monitoring
Indicators
Door-to-door collection as percentage of households covered (100%)

Optimum fleet utilisation (No. of trips/ vehicle/ day - average minimum of 2.5)
Vehicle capacity as percentage of rated capacity to waste generated (minimum 100%)
10.3.2 POVERTY REDUCTION AND BASIC KMC intends to rehabilitate 2,367 units who
SERVICES FOR URBAN POOR currently reside in such land pockets. This is to
be taken up as the Integrated Housing and Slum
The requirements in the sector are of immediate Development Programme (IHSDP). A sum of
priority and hence, the planning horizon for the Rs. 21.41 crores is proposed for
sector is 2011. Accordingly, projects and rehabilitation/construction of these dwelling
investments are identified to be funded by 2011- units. Of this, KMC proposes to mobilise eight
12. A sum of Rs. 48.83 crores is the investment percent of the cost, i.e., Rs. 1.51 crores and 12
identified for various slum rehabilitation and percent would come from the beneficiaries (Rs.
improvement projects and for providing basic 2.27 crores). An amount of Rs. 2.47 crores is the
services to the urban poor. As part of the GoM/ estimated requirement for providing
KMC’s strategy to improve the economic infrastructure facilities at these rehabilitated
conditions in the slums and thereby erase the locations as well as other slum locations in the
word ‘slum’ from the face of the city of Kolhapur, city.
various developments works and improvement
programs are being proposed.

Strategy
Rehabilitation of slum dwellers currently staying in vulnerable areas and in proposed project locations, in-site improvements
and access to basic services and amenities
Improvement in quality of services for the urban poor,

preservation of sensitive geographies, reduced vulnerability of Rs. 48.83 crores
urban poor
Expected Investment
Outcomes needed


Slums and Urban Poor 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Investment up to
2011-12 (Rs.
lakhs)
Rs. 21.43 lakhs 2.17 4.79 4.19 4.86 5.41
Housing and infrastructure development for slum

3 3 3 3 3
Facilities
rehabilitation (2,367 units)

Capital
In-site infrastructure development and provision of basic

3 3 3 3
services to urban poor
Inventory and geographical mapping of all slums and
3 3
infrastructure in the slums of KMC area
Sustenance
Support &
Measures
System
Socio-Economic Survey of all slums in KMC area 3 3

Training for slum women and the urban poor in self-
employment and other income-generating activities. KMC 3 3 3 3
shall assume a secondary/ supportive role
Take up slum networking, involving mapping and integrating slum locations and the natural drainage paths of the town with
parks, playgrounds etc. to form a continuous network of a green corridor. The approach is to help build infrastructure in an
economical way and also target the environmental improvement of the surroundings.
Provide for reservation of lands for EWS in or near each type of commercial/ industrial/ residential land use in the
Development Plan.
Facilitate access to credit for urban poor. KMC can explore the option of acting as a guarantor.
Create a registration system for all the workers in the informal sector and also a specific cell with facilities and options for
insurance, training, etc. for the workers.
Hold frequent meetings with slum dwellers to encourage their participation in slum development programmes, create
awareness amongst them on beneficiary contribution to project development, and also goad them to assume responsibility
for implementing the projects.
Facilitate and encourage the neighbourhood concept in slums to carry out recreational activities such as reading, sports and
drama.
Infrastructure and basic services’ provision in slums shall not in isolation but in conjunction and in line with the overall
Sector
infrastructure development in the respective city.

Notes
Awareness on health and hygiene shall be created among slum dwellers in line with the long-term goal of moving towards
individual toilets and doing away with public convenience systems.
Performance
Road network – Degree of connectivity in terms of per-capita road length (min 0.75 mt)
Monitoring
Indicators
Road condition – percentage of municipal roads surfaced (100% - CC/ BT surfacing)

Road condition - roughness (max. permissible 2000mm/km); rutting (20 mm) max. permissible (1 %)
Public transport – CIRT norm of 37 buses/ lakh population; > 90% fleet utilisation; Average load factor > 75%
computerisation efforts, improvement and

10.3.3 URBAN GOVERNANCE/ SYSTEM
additions to the on-going e-Governance project,
MODERNISATION
GIS-based systems development, etc. These
capital investments are expected to bring in
A sum of Rs.1.50 crores has been proposed to
more accountability and transparency in the
be spent over the next five years towards administration of KMC.
system modernisation, e-Governance and
GIS projects. These projects would involve
administrative reforms implementation,


2011-
Urban Governance/ System Modernisation 2006-07 2007-08 2008-09 2009-10 2010-11
12
Investment
up to 2011-
Rs. 1.50 crores 0.30 0.30 0.30 0.30 0.30

12
Facilities
Capital
Urban governance, GIS systems, system modernization 3 3 3 3 3
Implementation of double entry accrual system of

3
accounting
Sustenance
Support &
Measures
System
Implementing GIS-based property tax system and

3 3
support engineering services
Rationalisation of tax administration process 3 3
Restructuring of administrative systems 3 3
Urban Governance & Finance
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 conferencing.
Identify training needs of the staff of all departments (HR, administration, financial management, urban governance,
service delivery, citizens communication, IT)
Involve city-based institutions in imparting training
Other actions/ Coordination measures

Publish property tax records at the ward level and bring in transparency in the system
Carry out a cost audit of all expenditures incurred service-wise and identify and assess sector-wise expenditures to
categories specific expenditure control measures
Communicate with the public and within the organisation to build popular support for the reform initiatives
Outsource high energy consuming maintenance works of municipal services to target energy efficiency with revenue-
sharing model
Outsource non-administrative and non-technical operations of most of the municipal functions like property tax database
management, demand notices generation, arrears collection, etc.
Non-core functions in the vehicle/ workshop department
Establish a pension fund for existing retired employees and employees who are on the payroll prior to 2005. New
enrolment will however be in a contributory mode.
Create such funds like the depreciation fund, infrastructure fund and disaster management fund to meet unplanned and
emergency expenses to ensure prudent financial management.
Further decentralization must be incorporated in the system. For example, licensing and taxing rights need to be given to
ward officers. The function of the central body must be limited to monitoring, planning and executing.
Establish a discriminatory pricing policy.
Take up benchmarking of services and adopt a performance monitoring system.
Going ahead from the development of systems 10.3.4 GROWTH MANAGEMENT AND LAND USE
in the next five years, as required by UIDSSMT
commitments, the next level could be Though the sector has a planning horizon of 20
implementing Enterprise Resource Planning years, its requirements are immediate in nature
system in the corporation. Enterprise Resource and accordingly investments identified are to be
Planning (ERP) is defined as an information funded by 2011-12. A sum of Rs. 21.35 crores is
system that integrates all related applications for the identified investment for the acquisition of
an entire enterprise. A concept note on various reserved lands in the existing
implementing E Governance and ERP in a Development Plan. Considering the immediate
Municipal Corporation environment is included need for KMC to implement all pending DP
as Annexure 23. proposals, these reserved lands proposed are to
be acquired by 2010-11.

In line with the proposals to be identified in the GIS-based land use survey should be used for
revised DP, KMC will need to plan beyond 2011- the entire KMC area as well as the surrounding
12 for any reserved lands to be acquired to areas to help prepare a comprehensive and up-
facilitate the planned development of the city to-date development plan.
and cater to its long-term needs. The use of
Strategy
Facilitate planned development of city through a comprehensive DP supplemented by modified DCR and applicable norms
Planned, orderly development of the peripheral areas contributing

to overall city development Rs. 21.35 crores
Expected Investment
Outcomes needed
Land Use/ Developmental Planning 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
up to 2011-12
Investment
Rs. 21.35 crores - 4.55 4.20 4.20 8.40 -
Acquisition of reserved lands in present DP (approx.

3 3 3 3
Facilities
Capital
210 hectares)
GIS-based existing land use survey (66.82 sq.km. area) 3
Inventory and geographical mapping of all slums and

3 3
Sustenance
infrastructure in slums
Support &
Measures
System
Socio-Economic Survey of all slums 3 3

Inner/ core areas revitalisation 3 3 3

Land Use/ Developmental Planning 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Core areas revitalisation
Decongest core areas through selective relocation of commercial, wholesale and trading activities
Identify land in the peripheral areas and provide connectivity and other infrastructure
Frame building regulations to encourage decongestion of the core areas through:
¾ Revision of FSI norms and incentives
¾ Parking norms
¾ Specific regulations -- Accommodation and Reservation
Discourage development in critical, ecologically sensitive areas

Environmentally critical locations need to be identified and demarcated.
Special DCR needs to be made applicable to these areas to restrict encroachments and unauthorised developments.
Develop CBDs in other parts of city

Move away from the current concentration of CBDs (railway stations,inter-city bus terminus) in periphery locations to
decongest the core city areas
Compatibility of land uses (compatibility with transportation)

Assess the carrying capacity of the city at the ward level as part of revision to DP and identify actions accordingly.
Encourage new schools to be developed in the peripheral areas to reduce traffic in the core city; the DP, due in 2007,
needs to address this through reservations.
Housing for transit shelters for the EWS/ LIG migrant/tourist population
Encourage builders to develop hostels and working women’s hostels through incentives.
Focus on peri-urban development and integration with transportation networks

Potential areas in the peripheral areas need to be linked through an efficient arterial structure within/outside the city to
bypass the core city.
Provision of adequate land for transportation corridors, transportation hubs and network need to be provided for safe,
efficient and affordable mobility.
Give a boost to IT sector through land use planning

Reserve more lands for the IT sector in DP and facilitate development of focused institutional/educational zones,
supporting the IT sector with all basic services.
Research institutes must be relocated in organised institutional areas.
KMC/MIDC needs to have a coordination cell to plan functions (land use and major infrastructure) in line with the 74th
Sector
Notes
CAA and modify the DCR accordingly

Area for open spaces in the DP needs to be increased through identification of such potential areas.
infrastructure (wholesale markets and trade

10.3.5 ECONOMIC DEVELOPMENT AND CITY
centres to appropriate locations on the
BEAUTIFICATION
periphery) and construction of night shelters are
proposed. A sum of Rs. 1.5 crores is the
While KMC does not have a direct role to play in proposed investment for such initiatives.
the economic development of the city or the
region, it proposes to play a proactive role in
Several parks/ gardens are proposed for
facilitating and supporting the same through
development by KMC at various places in the
identified projects from time to time. While the
city to continue the current efforts and to gift a
infrastructure development initiatives are of this
pleasant climate and environment to its citizens.
bent, other initiatives like decongesting the core
A sum of Rs. 0.45 crores has been proposed for
area through relocation of specific economic
this purpose by 2011-12.


Strategy
Siting of economic infrastructure, facilitate development of sports facilities and strive for city beautification
Boost in economy of the region, access to best educational/

sports/ arts related facilities and an enriched environment Rs. 2.10 lakhs
Expected Investment
Outcomes needed

2011-
Economy, City beautification 2006-07 2007-08 2008-09 2009-10 2010-11
12
upto 2011-12
Investment
Rs. 2.10 crores 0.53 0.53 0.09 0.09
Development of parks/ gardens and tree plantations 3 3 3 3

Construction of night shelters/ bungalows for travellers 3 3 3 3
Facilities
Capital
Relocation of markets/ economic infrastructure/

3 3 3 3
development of truck terminals
Towards Facilitating Economic Development

Facilitate development of good quality hotels (star hotels) to support industrial and economic development.
Other actions/ Coordination measures
Provide for safe and secure low cost housing, night shelters, working women’s hostels and the like.
Facilitate collaboration and association between institutions and industries in the KMC area to clench the dynamic role of the
region as an IT sector.
Facilitate concentration of research institutes in organised institutional areas.
Provide for safe and secure low cost housing, night shelters, working women’s hostels and the like.
Parks/ Gardens Development and City Beautification

Ensure beautification of water bodies by creating parks and recreational activities.
Encourage citizens’ contribution towards maintenance of neighbourhood parks.
Decongest the core areas through relocation of inter-city bus terminus and railway station and wholesale trading activities.
Identify land in the peripheral areas and provide connectivity and other infrastructure.
Frame building regulation policies to encourage decongestion of the core areas through revision of FSI norms and
incentives
Set up parking norms and specific regulations for accommodation and reservation
Sector
KMC also needs to play a proactive role in ensuring that the region is provided with adequate power supply to be able to play
Notes

its role as an investment destination for the IT/BPO industry

3. Hotel capacity; encouraging capacity

10.3.6 TOURISM, CULTURE AND HERITAGE
addition by providing incentives
PRESERVATION
In spite of holding tremendous tourism potential,

the city of Kolhapur has never been projected as
Policy and planning interventions
a tourism centre. The vision for the tourism
sector for the city should be “Converting
1. Provision of no advertisement zones, no
Kolhapur city from transit tourism` to a
development zones, green belts and
Destination Tourism Hub and magnifying
plantations in the development master plan
`Resident Tourist` in-flow”. The branding of
Kolhapur can be done as “Charismatic
2. Tourism website to be developed using
Kolhapur- Royal and religious”.
experts
Ms. Amarja Nimbalkar, who is a tourism expert
3. Publication of brochures and guides
from Kolhapur has suggested some new tourism
spots that can be developed commercially
With the introduction of the Deccan Odyssey the
city has got noticed on the world map. In order
1. Eco tourism; Radhanagari Valley, Barki falls
to build upon its tourism potential, a tourist
(seasonal), Panchaganga riverfront (house
circuit should be developed covering places like
boat), Kambal vadi, Jainal, the 5 Forts
the Mahalaxmi temple, Jyotiba temple,
(excluding Panhala fort), Ramling, Amba,
Narsobavadi, Panhala, Masaipathar, Khidrapur
Gaganbavda, Kode, Pawan khind, Masai
caves, New Palace museum, Town Hall
pathar, etc.
museum and Rankala. The package can also
include the performances of traditional arts such
2. Heritage walks; Juna rajwada - Ambabai
as Lathi, Daanpatta, Talwar and Bhala.
temple precinct, Panchaganga Ghats &
riverfront, Brahmapuri, Panhala, Pusati
Radiant folklore as Gondhal, Vasudev, Powada,
buruz, Masai pathar, New Palace area
Lavni and Ovya very unique in nature and are
the key attractions of the Kolhapur region. There
3. Handicraft bazaar; Paga building (juna
is a need to market such folklore. A cultural
rajwada) presently used as N.C.C. office,
centre should be created wherein the specialties
Rankala mahotsav garden, Panchaganga
of the city can be displayed. The dances, the
ghats, Shahu mill
folklore and the various sports of Kolhapur can
be demonstrated to the tourists. The centre can
According to Ms. Amarja Nimbalkar there are
also have various courses that provide training
certain interventions from the Kolhapur
on the same.
Municipal Corporation that are necessary for
exploiting the latent tourism potential of
The Bhavani Mandap area is a heritage area
Kolhapur in a profitable manner, these are listed
comprising the Mandap Ambabai temple, Faras
below:
Khana, Hujur Paga and the Old Palace. This
Physical Infrastructure place needs to be preserved and beautified.
Also, its history and importance must be
1. Transportation; Major linkage roads of the conveyed to tourists. A light and sound show
city comprising of the Landmark Heritage should be introduced at the Mandap wherein the
Buildings need to get special attention. Bus rich history of Kolhapur and its significance is
terminus needs to shift to a spacious area emphasized.
for easing the traffic congestion.
The city should formulate a Heritage
2. Civic amenities; potable water supply at the Management Plan by integration the land use
tourist locations, pay and use toilets, proper and state-of-art infrastructure and facilities at the
provision of street lights and street furniture, heritage sites/parks. Heritage parks should be
special garbage disposal rules for such developed, wherein various cultural programs
locations and shows should be organized. A concept of
Heritage Walk as a guided tour should be
initiated covering Bhawani Mandap, Mahalaxmi

temple, Rankala lake, New Palace Museum, academia of Kolhapur have to pool in their
Shivaji University and Temblay temple. resources to produce thousands of ITES-BPO
oriented students for meeting future
Excursion tours should be organized whereby requirements.
the tourists can visit these forts, get to know
about their archaeological significance and also Kolhapur needs to promote extensive
engage in sporting activities such as trekking. percolation of IT literacy and education in the
However, there is a need to preserve these District. A Students’ Training Program will have
forts. The city should also be promoted as a to be set up at the university/college level in
place of eco-tourism. The city’s quiet and calm collaboration with various educational institutes.
natural beauty, mystical backdrop and spiritual ‘Training of Trainers’ in these skills should be
draw make the place an ideal eco-tourism undertaken by recruiting the services of
destination. Tourists not only get to enjoy the professional institutions. An orientation in
scenic beauty of the nearby hill stations and visit customer relationship skills with special focus on
the historic forts and palaces, but also satisfy education in English, will have to be given at the
their spiritual needs by visiting various religious high school level.
centres. Such eco-tourism will help to create
wealth, generate employment opportunities, and Low-priced real estate is a major contributory
alleviate poverty. factor for the gravitation of ITES companies
towards Kolhapur. The same needs to be
Tourist information centres should be set up at promoted by KMC through policy initiatives --
the CBS, airport, railway stations and hotel land to be offered with suitable fiscal incentives
desks. These information centres should inform and subsidy, tax exemptions, etc. KMC will also
tourists about the tourist circuit, the rich culture have another role to play --- providing proper
of Kolhapur and the tourist locations, and also quality road network to the IT zone and within
provide them assistance in planning tours in and the city, developing an efficient local transport
around Kolhapur. The city has also been known system, etc.
for its ancient sports, which should be promoted
and marketed through various measures like The city administration should also support the
organising competitions during festivals. industry by offering fast track services based on
‘Single Window Clearance’. It should focus on
A Tourist Guide Training program should be the integration of various government
incepted to create awareness among auto- departments on a single IT platform.
rickshaw drivers and hotel front-desk personnel. Uninterrupted power supply should be
There should be a website depicting Kolhapur developed in co-ordination with local power
tourism and emporium/souvenir shops should be suppliers. At the same time, the existing telecom
provided at historical spots. On KMC’s part, it infrastructure of Kolhapur should be improved
should develop an Artisan Village on the and upgraded to support ITES operations. As
outskirts of the city. It should also retain the perception plays an important role in deciding
identity of the old city by enforcing urban design the location of new units, Kolhapur should
guidelines and controls. market itself well, both in India and overseas, to
attract MNCs. This will help in providing
10.3.7 INFORMATION TECHNOLOGY AND employment opportunities and stop migration of
COMMUNICATION the citizens.
For sustainable economic development, the 10.3.8 ENVIRONMENT MANAGEMENT

development of the IT sector is vital. The
industry is poised to maintain the current 40-50 KMC should evolve an Action Plan to identify
percent growth levels in the coming years. sources of emission, quantify the concentration
Kolhapur will be assessed by IT investors on of the pollutants and devise a mechanism to
factors such as manpower availability, real mitigate the levels of concentration.
estate, telecom infrastructure, policy initiatives,
power infrastructure, city perception, and The citizens of Kolhapur need to put pressure on
entrepreneurial history. All these factors need to the city administration to plant appropriate tree
be developed, if Kolhapur has to be made an IT species, and/or to ensure that biodiversity
destination. The industrialists, promoters and conservation is an important consideration in

urban development plans. A regular tree census Create green patches all over the city for
should be undertaken, which would capture ecological reasons
facts of tree diversity, number of trees, and Save hills around Kolhapur from
changes in these parameters over a period of encroachments and illegal quarrying.
time. Public participation and awareness are
Use borders of play grounds, and banks of
extremely important for the city’s environmental
rivers and streams for planting identified
security. KMC shall involve NGOs, community-
species of trees
based organisations (CBO), and resident
welfare associations (RWA) for this activity. Co-ordinate with allied institutions to create
environmental awareness
In addition, KMC shall:
10.3.9 HERITAGE DEVELOPMENT
Identify sites and develop procedures and
methods for the disposal of hazardous Since ancient times, Kolhapur city has been
wastes famous as a religious centre. The city is known
Stop pollution of water through reduction in for its local deity Goddess Mahalaxmi and
discharges of waste into water bodies Goddess Ambabai. In addition to the famous
Minimise the adverse effects of pollution by Mahalaxmi temple, there are several other
selecting suitable locations for the temples in Kolhapur such as the Binkhambi
establishment of new industrial projects Ganesh Mandir, the temple of Goddess
Tryamboli, Shri. Datta Maharaj Math,
Ensure location of STPs under the river
Bhikshaling Sthan, Swayambhu Ganpati Temple
conservation plan in such a way that the
near canal, Goddess Renuka temple, Vitthal
benefits are maximised
Temple and the Jain Temple.
Identify and facilitate conservation of
structures of heritage and public Mahalaxmi temple was constructed in 634 AD
importance along river banks and is one of the most respected and visited
Ensure beautification of water bodies by temples in Maharashtra. Many people from
creating parks and recreational activities Maharashtra as well as from all over the country
Encourage citizens’ contribution towards come to Kolhapur to pay homage to their deity.
the maintenance of neighborhood parks The number increases during the Navaratri
festival, a festival celebrated during the month of
Implement the concept of urban wilderness
“Ashwini”, when thousand of devotees flock to
Identify sensitive, crucial, and threatened Kolhapur to pay their homage to goddess.
areas of 'ecological significance' and Another festival called Kirnotsava is celebrated,
prioritize these areas for protection, when the sun rays directly fall on the idol of
preservation and conservation. The near goddess Mahalaxmi. This festival is celebrated
natural areas to be covered in Kolhapur from 9th November to 11th November and again
include its Wetlands (tanks Rankala, from 31st January to 1st February. This also
Kalamba, Rajaram, Kotitirth, Shiroli, attracts number of pilgrims to Kolhapur. These
Kanheri, Kandalgaon); rivers (tributaries of religious places generally lack basic
Panchganga , Panchganga and streams infrastructure in terms of water supply, sewage
such as Dudhali, Jayanti, and disposal, and disposal of municipal solid waste.
Gomati);wood lands (University Campus, Such places are also susceptible to various
TA Battalion, New Palace, Town Hall); and disasters like fire. Thus apart from being
grasslands and hills (Tremboli, Film City, susceptible to disasters they put additional
Cambukhadi, Vaibhav Hill, Sadle Madle, pressure on the city infrastructure. The onus of
Jyotiba, Panhala, etc.) providing the necessary infrastructure falls on
Consider new areas for greening of the city city administration. Thus city administration
such as old industrial areas, open places, plans to facilitate it in such a way that it
traffic islands, playgrounds, the banks of becomes pleasurable experience to the visitors
the river Jayanthi and the Dudhaali nallah, and the same time it is able to generate revenue
and new townships in fringe areas from such activity.
Convert some suitable green lands into
thick woodlands by replacing lawns and Within heritage development of Mahalaxmi
ornamental plants temple KMC would enhance the beauty of

temple by artificial lighting and light effects. KMC graduates annually. Most of these graduates go
would facilitate tourists by providing toilets and out of the area for employment. For retaining
rest rooms for men and women, concrete them in Kolhapur, the city should present
benches and temporary rest house along with attractive employment or entrepreneurship
parking facilities. KMC intends to undertake opportunities within the city. An imperative factor
granite paving in the temple premises. The in doing that would be to create stronger
carrying capacity and the conditions of approach linkages with the industry. There can be several
roads would be improved. Other facilities like interventions for doing that-
cloak rooms needs to be provided.
a. Creating economic partnerships between
university and industry, There are various
To generate revenue from the tourist arrivals
models for creating partnerships, but the
KMC should plan an integrated Heritage
starting point could be to develop a
management plan. Under the management plan
consultancy wing within the university for
it must identify the various place of tourist
advising industries and businesses which
importance and facilitate the transportation to
are thinking about setting shop in Kolhapur.
those places and charge the tourists for the
These will ensure that the university is
services provided. The total project cost
dynamic in understanding the needs of the
estimated is Rs. 1.04 crores.
industries. Indirectly this will give a push to
the growth of industries in Kolhapur, thus
10.3.10 STRATEGIES FOR SOCIAL generating attractive employment
INFRASTRUCTURE (HEALTH AND EDUCATION) opportunities. This strategy has already
been initiated by the University.
Education has been a key strength of Kolhapur. b. Joint Research, There are a substantial
Over the years, the quality of education has number of knowledge and research based
been declining. It has been felt that based on industries in Maharashtra including IT. ITES,
local area-wise population, pre-primary and Biotechnology, Life sciences, and
primary schooling should be made available to Pharmaceutical industries. The growth of
all children in every ward. A minimum health these industries is dependent on dynamic
meal (based on the requisite nutritional value market directed research. The institutions in
specifications) must be provided to every child in Kolhapur can offer to partner these
the school. In case of remote areas, a proper industries for research by establishing joint
transport arrangement should be provided to the research laboratories. The research centres
nearest school to ferry the children. will have ample availability of highly skilled
human resources in terms of graduates from
A beautiful school building, good playgrounds, the colleges.
natural green landscaping and a clean and c. Business Incubation, Business Incubation
hygienic atmosphere should be compulsory is a concept that nurtures an idea and helps
features of all schools. Large indoor and to transform it into a viable and profitable
outdoor playing areas, a library, a fully- business by providing professional and
equipped large science laboratory, and a good technical advice, access to venture capital
and clean canteen hall must also be provided. and hand holding of the promoters till they
are capable of managing the business. A
Strategies for the development of Education business incubation centre can be started
Sector in Kolhapur for the graduates of the engineering
colleges, especially in the sphere of IT/
Linkages with the industry: The output of a ITES. That would lead to the development of
higher education system in any society should small and medium businesses in Kolhapur.
be to inculcate such forms of education to the That in term would jumpstart the economic
students that make them attractive as human activities in the region.
resources for economic activities, or in other
words education should develop such skills in
the students that are relevant for industry and Education linked to tourism potential of
research. In Kolhapur there are a number of Kolhapur: Kolhapur administration has serious
engineering and medical colleges. In the intentions of developing the tourism sector in the
engineering colleges itself, Kolhapur and the city. With the development of tourism industry,
nearby towns generate around 1500 engineering there are a number of industries that come up

like hospitality, entertainment, transport etc. So Also, the current 16 KMC dispensaries are more
as the tourism industries grow in Kolhapur, the of a liability and do not provide efficient services
businesses will need people trained in food to the public. These dispensaries should be
sciences, catering, hospitality skills, travel closed down. These properties can be rented
administration- travel booking etc. The university out for coaching classes, showrooms, etc. at the
and other institutions can think about initiating prevailing rent rates. Also, the staff working in
courses in Hotel Management, Travel the dispensaries can be merged with the staff
Administration in Kolhapur. working in the family centres. As a result, new
staff will not have to be recruited for family
Vocational Training to native industries: centres.
There are a number of native industries in
Kolhapur- like leather work and silverware. The In order to upgrade the status of the family
municipal corporation can partner with training welfare centres and to avoid mismanagement of
institutions to initiate training modules that would funds, outsourced auditors and task forces can
update the skills of the workers, provide them be employed. These auditors should be given
with basic business skills and upgrade the the right to penalize for misconduct. Also,
technology used by them. This would be participation from other doctors must be invited.
imperative to combat increasing threats of Expert doctors from the private sector can be
competition from other regions of the state. invited to the family welfare centres on an
honorarium basis for conducting family welfare
Equitable distribution of educational programmes. All the operating theatres will have
facilities: The Municipal corporation through the to be revamped depending upon the primary
mechanism of registration and approvals ensure health centre operating protocol. Moreover, the
that the geographical (in terms of coverage of all connectivity of family health centres at the
areas in the city, including the new areas) as central hospital needs to be improved.
well as functional coverage (in terms of
coverage of all levels of education) is There are 317 private clinics and hospitals within
maintained. the area of KMC. These establishments pay
various fees such as hospital and registration
Provision of basic infrastructure facilities: fees, plan sanction fees, land taxes, and
The municipal corporation should ensure that licenses. Amount collected from such fees
the schools in Kolhapur have the minimum should be strictly used for the upgradation and
physical infrastructure in terms of teaching maintenance of health infrastructure. Also,
facilities, play grounds, laboratories, libraries income generated from KMC’s health
etc., both in municipal schools and private infrastructure (buildings) such as rent, can be
schools. used for contingency funds for unprecedented
expenses
Strategies for health and social
infrastructure The specific action points can be listed as
follows: -
Products produced by the mahila bachat gats
1. The current 16 KMC dispensaries are more
need to be brought in line with market trends. of a liability and do not provide efficient
Currently, these products do not have a market. services to the public. These dispensaries
Also, these products need to be advertised and
should be closed down. These properties
marketed. Shops in the KMC shopping can be rented out for coaching classes,
complexes can be reserved for selling mahila showrooms, etc. at the prevailing rent rates.
bachat products. Social issues such as girl child
Also, the staff working in the dispensaries
dowry, superstitions, female foeticide and can be merged with the staff working in the
broken homes will have to be highlighted and family centres. As a result, new staff will not
women educated about the same. Other actions
have to be recruited for family centres.
to be taken include legal literacy programs, pre- 2. In order to upgrade the status of the family
marital and post-marital counselling and welfare centres and to avoid
improvised work environment with facilities like
mismanagement of funds, outsourced
crèche and retiring rooms. auditors and task forces can be employed.
These auditors should be given the right to

penalize for misconduct. Also, participation collected from such fees should be strictly
from other doctors must be invited. Expert used for the upgradation and maintenance
doctors from the private sector can be of health infrastructure. Also, income
invited to the family welfare centres on an generated from KMC’s health infrastructure
honorarium basis for conducting family (buildings) such as rent, can be used for
welfare programmes. All the operating contingency funds for unprecedented
theatres will have to be revamped expenses.
depending upon the primary health centre 4. According to the citizen’s group closing
operating protocol. Moreover, the down of isolation hospital and distributing
connectivity of family health centres at the the infrastructure and staff to other hospitals
central hospital needs to be improved. is a feasible option as the concept of
3. There are 317 private clinics and hospitals isolation hospital is obsolete.
within the area of KMC. These 5. There is a need for compulsory formal
establishments pay various fees such as training programmes to raise the staff to
hospital and registration fees; plan sanction minimum acceptable level.
fees, land taxes, and licenses. Amount

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
service, a discussion forum and an opinion poll.

11.5 OTHER REFORMS generate an additional revenue of Rs. 6.5

crores in FY2007-08.
A tender has been floated by KMC for
segregation of waste and door-to-door The IT policy of the Government of
collection of waste and segregation. Maharashtra (GoM) has been adopted by
KMC in 2006. As a result, the IT sector is
Revision of water charges has been not charged any octroi and gets property
proposed. 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.

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
implementation of the action plan. The PMS

12.1 COMPONENTS OF PERFORMANCE would measure KMC’s performance with respect
MONITORING SYSTEM to its service delivery against the committed/set
targets under each reform. PMS would be
The Performance Monitoring System (PMS), an accompanied with performance benchmarking in
initiative of the KMC, requires collecting data, order to judge how well or how poorly KMC is
and measuring and reporting KMC’s performing, and what types of corrective actions
performance in its core municipal service areas are required. Performance benchmarks would
for the last five years, viz. water, sewage, provide a point of reference for drawing
conservancy, public works, transportation, fire, conclusions from a PMS.
governance, planning, and social services. The
PMS will initially consist of broad-level efficiency For the purpose of evaluation of PMS, only
and effectiveness performance measures. those aspects have been considered, which are
related to reforms under the UIDSSMT funding.
PMS would be developed to adhere to the time
lines of reforms. This would also ensure timely

Table 39: Performance Monitoring System for KMC

TASK INDICATORS Menu of actions Responsible
department
2006-007 2007-08 2008-09
Collection of arrears 60% 100% Target high value defaulters, Revenue Department
collect from govt. properties,
publish list of defaulters, evict
shops, disconnect water
connections of defaulters
Increased collection Achieve [85 %] Achieve [90 %] or Set targets for staff, provide Revenue Department
efficiency from current or a minimum a minimum incentives and penalties, attach
level of 77% increase of 10 increase of 10 % defaulting properties
%
Migration to Self- Initiate discussion Commence Initiate this at the General Body, Administrative
Assessment System of on the SAS implementation formulate committee at KMC Department
Ptax system level
Improve collection ratio 90% 100% Set targets for staff Administrative
from current level of Department
77%
Use of GIS-based 75% 100% Select appropriate consultant, Administrative
property tax system prepare digital property maps, Department
verify digital maps and prepare
complete data-base of properties
Extension of property 100% Carry a city-wide survey Administrative
tax regime to all Department
properties
Increased coverage of Maximum ratio Cover new layouts, conduct Revenue Department
properties of 1:5 Property: surveys, detect unassessed
Population ratio properties
Rise in average Increase of 40% Revise once in every four years, Revenue Department
assessment per form review committee
property
Revision in guidance 40% Adopt revised rates in resolution Revenue Department
value
Progress in Introduce Withdraw current Appoint consultant Acounts Department
implementing parallel run of accounting
accounting reforms accounting system and fully
system convert to new
accounting
system
Limit pending audits Maximum of Maximum of one
three years year pending
pending
Publish revenue Publish
coverage and
collection report
Publish multi year Publish
financial projections
Publish subsidy reports Publish
Introduce participatory Publish Initiate a public
budgeting wardwise consultation
expenditure exercise for the
data 2006-07 budget
Formalise mid-year, Achieve zero Maintain
revised budgeting revenue deficit revenue
process surplus
Reduce percentage of Nil Adopt resolution
Hhs living in squatter


department
2006-007 2007-08 2008-09
settlements/ temporary
structures from current
level of 16%
Hhs living in squatter 100% Adopt administrative measure
settlements/ temporary
structures with basic
services
Abolish number of 50% 50% Adopt resolution, convert to paid Water Supply
PSPs community tap Department
Detect unauthorised No. of persons Conduct survey, launch amnesty
connections per connection scheme, introduce heavy fine
of not more than
X
Revise water rates Increase to Rs. X Adopt and implement new rates
per month
Increase collection 80% collection 85% collection Set targets for staff, provide
efficiency efficiency efficiency incentives and penalties,
disconnect connections of
defaulters
Metering of water Water supply to Adopt resolution, convert to paid
conenctions be charges on community tap
metered
connections
Levy of new Rs. 2000 for Adopt resolution, convert to paid
connection charge domestic community tap
connection for a
property of
500sq.ft and Rs.
2000 plus Rs.5
per sq.ft. for
areas greater
than 500 sq.ft.
Levy of sewerage Rs. 2000 for Adopt resolution
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 Building plan
efficiency to 85% approval
with GIS
Water tax Payment of
recovery Property Tax,
Utility Bills and
Management
of Utilities that
come under
the ULBs.
Public Grievance
Redressal
Issue of licences
and single
window clearance
system


department
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
Revise lease New leases Evict defaulter after four months Revenue Department
through auction, of default
Achieve [100 %]
Increase coverage Cover 100% of Obtain data from other sources,
shops link to property tax database,
cover all types of trade
establishments, close unlicensed
shops
Increase collection Achieve [100 %] Bring under purview of revenue
efficiency or a minimum dept.
increase of 10
%

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

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.

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.

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.

15 ANNEXURE C: MUNICIPAL FINANCE – ASSESSMENT OF

PAST 5 YEARS
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Income 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
Opening Balance 334 436 438 365 478
Part I - REVENUE
I Revenue Income
A Own Sources
Tax Revenue
1 Octroi 4,132 4,360 4,581 4,893 5,210
2 General Tax on Properties 823 673 544 564 767
3 Special Water Tax & Water Benefit Tax 149 120 104 115 120
4 Sewerage Tax, Sewerage Benefit Tax 59 49 40 46 63
4 Conservancy Tax 283 234 197 221 294
5 Other Taxes 257 218 193 215 253
Sub-Total (Tax Revenue) 5,703 5,654 5,658 6,054 6,707
Non Tax Revenue

1 Income from municipal assets/ institutions 125 135 145 120 139
2 Development charges 210 226 260 209 202
3 Building License fee 13 13 14 12 13
4 Fire/ Guntewadi fee 162 179 94 75 42
5 Other fees and fines 77 86 83 85 76
6 Water Charges 1,372 1,698 1,788 1,705 1,718
7 Sewerage/ Drainage Charges 1 0 0 0 1
8 Misc Water income 87 94 95 91 88
9 Misc Sewerage income 48 56 65 53 55
10 Interest on investments 132 176 116 37 73
10 Other Miscellaneous Income 498 468 336 387 382
Sub-Total (Non Tax Revenue) 2,725 3,131 2,997 2,776 2,788
Total Own Sources 8,429 8,785 8,656 8,830 9,495
B Assigned Rev, Grants & Contributions

1 General Grants 126 103 179 109 310
2 Project specific grants 18 148 150 30 101
3 Other Revenue grants & contributions 8 1 6 0 52
Total Grants & Contributions 153 251 336 139 464
Total Revenue Income 8,581 9,036 8,992 8,969 9,959

Rupees Lakh
Part II - CAPITAL
I Capital Income
A Own Sources
1 Interest on deposits 56 41 45 62 17
2 Sale/ Lease/ Compensation of lands and Municipal proper 14 9 5 31 4
2 Others (BOT fee, etc) - - - - -
Total Own Sources 70 51 50 93 21
B Loans - - - - -
C Grants & Contributions

1 General grants and contributions 0 - 60 - 2
2 Project specific grants 419 940 650 610 1,171
Total Grants & Contributions 420 940 710 610 1,173
Total Capital Income 490 990 760 703 1,194

Expenditure Statement
Rupees Lakh
II Revenue Expenditure
A Establishment, Salaries & Wages
1 Pension & Gratuity 537 680 726 801 1,051
2 General Administration & Tax Collection 425 460 500 533 567
3 Water supply 261 276 317 321 362
4 Sewerage 171 182 194 216 232
5 Conservancy/ SWM 684 782 848 910 1,047
6 Public Health, Safety, Hospitals and medical services 567 624 680 738 801
7 Public works - Roads 416 468 508 541 623
8 Public works - Lands & Buildings 51 60 64 73 82
9 Street lighting 53 61 63 69 75
10 Parks, play grounds, sports, public utilities 152 167 179 191 208
11 Education 711 743 789 921 1,039
12 Others (vehicle, workshop, markets, slaughter house etc) 110 111 114 131 148
Total Salary Expenses 4,138 4,615 4,981 5,445 6,234
B Operation & Maintenance

2 Water supply 942 994 1,104 1,093 1,765
3 Sewerage 157 147 130 118 91
4 Conservancy/ SWM 38 34 33 121 21
8 Street lighting 243 213 208 214 223
10 Education 17 38 32 57 74
11 Others (vehicle, workshop, markets, slaughter house etc) 20 161 147 161 128
Total O&M Expenses 1,961 2,316 2,189 2,225 2,788
C Transfers/ Contributions
1 General remittances, contributions 207 89 141 154 85
2 Tranfer to KMT 236 150 50 45 120
Total Transfers/ Contribution Expenses 443 239 191 199 205
D Debt Servicing
1 General Account 252 172 135 103 90
2 Water Account - - - - -
3 Sewerage Account - - - - -
Total Debt Servicing Expenses 252 172 135 103 90
Total Revenue Expenditure 6,793 7,341 7,496 7,972 9,317

Operating Status - Revenue Account 1,788 1,695 1,495 996 641
Rupees Lakh
II Capital Expenditure
2 Water supply 660 545 485 275 252
3 Sewerage 111 53 170 26 59
4 Conservancy/ SWM 64 46 6 7 2
8 Street lighting 46 69 5 10 14
10 Social welfare 2 14 51 52 40
11 Urban poor and Slum development 60 89 43 28 39
12 Others and all grant related works 728 875 960 992 690
Total Capital Expenditure 1,935 1,927 1,973 1,610 1,384
Utilisation Status - Capital Account (1,445) (937) (1,212) (907) (190)

Income – Sectoral Contribution

Sectoral Contribution/ Share
Avg (2001-
S. No. Head of Account 2001-02 2002-03 2003-04 2004-05 2005-06 02 to 2005-
06)
Percentage
Opening Balance
Part I - REVENUE
I Revenue Income
A Own Sources
Tax Revenue
1 Octroi 48 48 51 55 52 51
2 General Tax on Properties 10 7 6 6 8 7
3 Special Water Tax & Water Benefit Tax 2 1 1 1 1 1
4 Sewerage Tax, Sewerage Benefit Tax 1 1 0 1 1 1
4 Conservancy Tax 3 3 2 2 3 3
5 Other Taxes 3 2 2 2 3 3
Sub-Total (Tax Revenue) 66 63 63 68 67 65
Non Tax Revenue

1 Income from municipal assets/ institutions 1 1 2 1 1 1
2 Development charges 2 2 3 2 2 2
3 Building License fee 0 0 0 0 0 0
4 Fire/ Guntewadi fee 2 2 1 1 0 1
5 Other fees and fines 1 1 1 1 1 1
6 Water Charges 16 19 20 19 17 18
7 Sewerage/ Drainage Charges 0 0 0 0 0 0
8 Misc Water income 1 1 1 1 1 1
9 Misc Sewerage income 1 1 1 1 1 1
10 Interest on investments 2 2 1 0 1 1
10 Other Miscellaneous Income 6 5 4 4 4 5
Sub-Total (Non Tax Revenue) 32 35 33 31 28 32
Total Own Sources 98 97 96 98 95 97
B Assigned Rev, Grants & Contributions

1 General Grants 1 1 2 1 3 2
2 Project specific grants 0 2 2 0 1 1
3 Other Revenue grants & contributions 0 0 0 0 1 0
Total Grants & Contributions 2 3 4 2 5 3
Total Revenue Income 100 100 100 100 100 100
Avg (2001-
06)
Percentage
Part II - CAPITAL
I Capital Income
A Own Sources
1 Interest on deposits 12 4 6 9 1 6
2 Sale/ Lease/ Compensation of lands and Municipal proper 3 1 1 4 0 2
2 Others (BOT fee, etc) - - - - - -
Total Own Sources 14 5 7 13 2 8
B Loans - - - - - -
C Grants & Contributions

1 General grants and contributions 0 - 8 - 0 2
2 Project specific grants 86 95 86 87 98 90
Total Grants & Contributions 86 95 93 87 98 92
Total Capital Income 100 100 100 100 100 100

Expenditure– Sectoral Contribution

Avg (2001-
06)
Percentage
II Revenue Expenditure
A Establishment, Salaries & Wages
1 Pension & Gratuity 8 9 10 10 11 10
2 General Administration & Tax Collection 6 6 7 7 6 6
3 Water supply 4 4 4 4 4 4
4 Sewerage 3 2 3 3 2 3
5 Conservancy/ SWM 10 11 11 11 11 11
6 Public Health, Safety, Hospitals and medical services 8 8 9 9 9 9
7 Public works - Roads 6 6 7 7 7 7
8 Public works - Lands & Buildings 1 1 1 1 1 1
9 Street lighting 1 1 1 1 1 1
10 Parks, play grounds, sports, public utilities 2 2 2 2 2 2
11 Education 10 10 11 12 11 11
12 Others (vehicle, workshop, markets, slaughter house etc) 2 2 2 2 2 2
Total Salary Expenses 61 63 66 68 67 65
B Operation & Maintenance

2 Water supply 14 14 15 14 19 15
3 Sewerage 2 2 2 1 1 2
4 Conservancy/ SWM 1 0 0 2 0 1
10 Education 0 1 0 1 1 1
11 Others (vehicle, workshop, markets, slaughter house etc) 0 2 2 2 1 2
Total O&M Expenses 29 32 29 28 30 29
C Transfers/ Contributions
1 General remittances, contributions 3 1 2 2 1 2
2 Tranfer to KMT 3 2 1 1 1 2
Total Transfers/ Contribution Expenses 7 3 3 2 2 3
D Debt Servicing
1 General Account 4 2 2 1 1 2
2 Water Account - - - - - -
3 Sewerage Account - - - - - -
Total Debt Servicing Expenses 4 2 2 1 1 2
Total Revenue Expenditure 100 100 100 100 100 100

Avg (2001-
06)
Percentage
II Capital Expenditure
2 Water supply 34 28 25 17 18 24
3 Sewerage 6 3 9 2 4 5
4 Conservancy/ SWM 3 2 0 0 0 1
10 Social welfare 0 1 3 3 3 2
11 Urban poor and Slum development 3 5 2 2 3 3
12 Others and all grant related works 38 45 49 62 50 49
Total Capital Expenditure 100 100 100 100 100 100

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
Sector/ Component (Rs. Lakhs) (Rs. Lakhs)
Water supply 6,477 163 2,053 2,120 2,141 - -
1 Source/ system capacity augmentation 353 - 123 123 106 - -
2 Treatment capacity augmentation 402 - 141 141 121 - -
3 Transmission mains and pumping machinery 3,080 - 1,078 924 1,078 - -
4 Ground level storage capacity augmentation 55 - 28 28 - - -
5 Elevated Storage capacity augmentation 455 - 159 137 159 - -
6 Distribution network augmentation 1,625 163 325 569 569 - -
7 Refurbishment of old Distribution Network 81 - 41 41 - - -
8 Metering System 326 - 109 109 109 - -
9 Land acquisition 100 - 50 50 - - -
Sewerage 14,202 - 2,323 7,101 4,779 - -

1 UGD - Network 4,467 - 670 2,234 1,563 - -
2 UGD - STPs 5,891 - 884 2,946 2,062 - -
3 UGD - Pumping Machinery 3,844 - 769 1,922 1,153 - -
Roads & Urban Transport 34,188 214 7,138 8,377 7,527 8,712 2,221
1 Roads Upgrdation 3,309 214 543 940 806 806 -
2 Roads New Formation 3,306 - - 21 21 1,149 2,116
Imp. Rds (Widening, beaurtification, ROBs, bridges,
3,575 - - 623 1,401 1,551 -
3 utility shhifting etc)
4 Improvements to roads (IRDP project) 11,400 - 5,700 5,700 - - -
5 Development of Outer Ring Road (ORR project) 10,202 - - - 5,101 5,101 -
6 Land Acquisition for Road Improvements 396 - - 198 198 - -
7 Public Transport/ Improvements 1,580 - 790 790 - - -
8 Traffic Management/ Jn. Improvements 420 - 105 105 - 105 105
Drains 11,420 1,296 1,938 2,736 2,087 1,681 1,681

1 Drains Upgradation 3,519 708 1,056 1,350 406 - -
2 Drains New Formation 7,901 588 883 1,387 1,681 1,681 1,681
3 Desilting & Strengthening of Primary Drains - - - - - - -
Street Lights 345 77 77 41 77 45 27

1 Replacement - Tube Lights 166 41 41 41 41 - -
2 New Installation - Tube Lights - - - - - - -
3 New Installation - High power Lamps 179 36 36 - 36 45 27
4 New Installation - High Mast Lamps 0 - 0 - 0 0 -
Conservancy (SWM) & Sanitation 1,147 32 680 110 114 138 73

1 New Vehicles (Primary Collection) 10 - 3 - 3 3 3
2 New Vehicles (Secondary and Disposal) 215 32 64 - 54 64 -
3 Acquiring New Disposal Site 433 - 433 - - - -
4 Infrastructure at Disposal Site 439 - 167 97 58 58 58
5 DLDPs & Container Bins 50 - 13 13 - 13 13
6 Public Convenience Systems - - - - - - -
Urban Poor/ Slums 4,883 - 495 1,092 954 1,108 1,233

1 Slum Improvement - Rehabilitation/ Housing 3,083 - - 462 617 771 1,233
2 Slum Improvement - Infrastructure 1,350 - 338 338 338 338 -
3 Slum Improvement - Land acquisition 450 - 158 293 - - -
Land use/ Dev. Planning 2,135 - 455 420 420 840 -

1 Acquisition of Reserved lands 2,100 - 420 420 420 840 -
2 Existing Land use Survey (GIS based) 35 - 35 - - - -
3 Others - - - - - - -
Others 2,391 75 1,029 847 169 150 121

1 Panchganga River conservation 200 20 60 60 60 - -
2 Heritage & Conservation 104 - 68 36 - - -
3 Tree Plantation & Gardens 45 5 11 11 9 9 -
4 Parking spaces 502 - 326 176 - - -
5 Truck terminal 845 - 423 423 - - -
6 Eco. Infra Relocations/ Slaughter house etc 165 - 41 41 - 41 41
7 Urban Governance/ E-Governance/ GIS 150 - 30 30 30 30 30
8 Others (System Stduies etc) 80 - 20 20 20 20 -
9 Regular Capital Works 300 50 50 50 50 50 50
Total 77,188 1,856 16,188 22,845 18,268 12,674 5,356

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.

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.

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.

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
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.

Name of the Stake Holders: Mr. Sangram Patil and Mr. Yogesh Kulkarni - CII
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
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.

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.

Name of the Stake Holders: Mr. R.N. Jadhav, APMC
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
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.

Name of the Stake Holders: Mr. K.R. Nagpure, MIDC
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.

Name of the Stake Holders: Mr. Vijay Kadam, Kolhapuri Chappal Businessman
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
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.

20 ANNEXURE H: PROJECTS PROPOSED UNDER UIDSSMT

SCHEME
Total Cost (Rs.

Component
Crores)
Source Augmentation
Water Supply
Treatment Capacity Augmentation

Transmission mains / Pumping machinery
72.85
Ground level storage capacity augmentation
Elevated level storage capacity augmentation
Distribution network augmentation
Sewage Treatment Plant
Sewera
Pumping stations, Rising Mains

173.22
ge
Internal Sewer Lines

Cleaning equipment and other works
Construction and upgradation of roads
Roads (IRDP)
Construction of toll nakas

Construction of Underpass 114.00
Construction of ROB
Utility Shifting
Development of outer ring road 102.00
Development of truck terminus
Terminus
Truck
8.45
Additional infrastructure such as workshops, lighting, offices, etc.
Terminus
Bus
Additional facilities such as hotel, offices, gym, conference hall,etc. 15.78

Development
Heritage
Preservation, development and beautification of Mahalaxmi temple 1.04

Parking
Development of 4 parking areas 5.01
Total 492.35

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.

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.

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

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.

Municipal E-governance system
Management Information
Administrative System Citizen Interface
System
Approvals and
Property tax Municipal Services Decision support Complaints
licenses
Assessment Issuance Water Supply Exception reporting Notices
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.

The implementation of the e governance system follows the basic structure as indicated below:
Direction Simplify
Purpose
Upwards/ downwards/ Remove redundancy,
Functions, activities
one to many/ many to one redefine process flow
Process flow Process

Process Map Information flow
Input, output Reengineering
People involved Profile Efficiency

Roles, responsibilities, hierarchy, powers Contents, format Speed, cost reduction
Database
Training Pilot run
Database design, structure,
Users, managers Integrity check, redundancy check
fields, codes
Post roll out review

System
Course corrections, Roll out Feedback
maintenance Requirement
Awareness User review infrastructure

Citizen awareness campaign User satisfaction, comments Network, hardware, website

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.

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.

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

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.

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

City Development Plan

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City Development Plan

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Urban Infrastructure

Development Scheme For

City Development Plan 2031

The Destination: KOLHAPUR

Kolhapur occupies a cherished position in the state of Maharashtra, be it in the

It is a continuous endeavor of the State Government of Maharashtra to ensure

Kolhapur has utilized the opportunity provided by UIDSSMT by defining a

Today when India is at the doorstep of attaining the status of an economic

To do this, the city’s basic foundation consisting of physical infrastructure,

Kolhapur has always been in the forefront of development, be it economic, social

Sou. Saee Ajit Kharade

The Kolhapur Municipal Corporation, established in 1972 under the Bombay

Kunal Kumar, IAS

2 ABOUT KOLHAPUR CITY 4

3 ECONOMIC BASE OF KOLHAPUR 7

4 KOLHAPUR -- CITY ASSESSMENT 18

5 URBAN POOR AND SOCIAL ASSESSMENT 29

7 CITY GOVERNANCE FRAMEWORK AND REFORMS 46

Kolhapur Municipal Corporation -i-

8 FORMULATION OF VISION AND MISSION 49

9 INVESTMENT CAPACITY AND SUSTENANCE OF KMC 54

10 CAPITAL INVESTMENT PLAN, STRATEGIES AND IMPLEMENTATION PLAN 58

11 REFORM ACTION PLAN FOR KMC 85

12 PERFORMANCE MONITORING SYSTEM FOR KMC 87

Kolhapur Municipal Corporation -ii-

Table 1: Population Growth of Kolhapur ....................................................................................................... 5

Kolhapur Municipal Corporation -iii-

Table 36: Important assumptions made in the projections ......................................................................... 55

ACRONYMS AND ABBREVIATIONS

ARV Annual Rateable Value NGO Non-Governmental Organization

Kolhapur Municipal Corporation -iv-

avail of the funds under this scheme for the

Kolhapur Municipal Corporation -v-

Land use: According to the current

Kolhapur Municipal Corporation -vi-

Kolhapur Municipal Corporation -vii-

Review of the outstanding loan statement of

Kolhapur Municipal Corporation -viii-

implementation of GIS, computerisation of the city. Finally, based on the consultations, a

INVESTMENT CAPACITY AND SUSTENANCE

The investment capacity of KMC is assessed

diverse inputs are integrated in the plan. The

Kolhapur Municipal Corporation -ix-

identification of unassessed properties, regular PROPOSED PROJECTS

implementation of measures as well as the

Kolhapur Municipal Corporation -x-

ULBs in Maharashtra, KMC provides additional

Kolhapur Municipal Corporation -xi-

have impeded investment in urban

Kolhapur Municipal Corporation -1-

priority actions and projects. In this context,

1.2 OBJECTIVES OF CDP

Kolhapur Municipal Corporation -2-

The City Development Plan, thus prepared

Kolhapur Municipal Corporation -3-

2 ABOUT KOLHAPUR CITY

the festival of rays. On certain days, the rays of

Plate 2: Location Map of Kolhapur

The premise of the temple is huge; a number of

Kolhapur Municipal Corporation -4-

Kolhapur city is one of the growing cities in

2.4 LINKAGES AND CONNECTIVITY 30.00