report on selection of 30 cities/towns for ring roads and

Ring Road Development in Madhya Pradesh

Page

RING ROAD DEVELOPMENT IN

MADHYA PRADESH

Report

Atal Bihari Vajpayee Institute of Good Governance

and Policy Analysis


Page

November 2020

Identification of towns in Madhya Pradesh

for Ring Road Development & Probable

Financial planning for Implementation of

the project

Project Report

ATAL BIHARI VAJPAYEE INSTITUTE OF GOOD

GOVERNANCE AND POLICY ANALYSIS


Page

Submitted by:

Centre for Urban Governance, AIGGPA

Guidance:

Mr. Girish Sharma, IAS

Principal Advisor, Centre for Urban Governance

Project Coordinator:

Mrs. Jalaja Saji

Advisor, Centre for Urban Governance

Project Team:

Mrs. Priyanka Pawar, Consultant, Centre for Urban Governance

Mr. Parag Somwanshi, KPMG India

Ms. Samridhi Chaurasia, Research Associate, Centre for Urban Governance


Page i

Executive Summary

The towns in Madhya Pradesh are urbanizing rapidly which presents both opportunities as well as challenges for

the policy makers as well as the society. One of the challenges associated with growing urbanization is the heavy

traffic congestion. One of the measures to decongest the traffic load could be development of ring roads. It can

decongest the cities from heavy traffic load for which it is advisable to plan for bypass/ring road development well

in advance to reduce future repercussions.

Looking into the advantages of developing the ring road, Government of Madhya Pradesh decided to consider few

Ring Roads projects in the select towns of Madhya Pradesh. In order to identify such towns a quick study to shortlist

the towns was taken up by Atal Bihari Vajpayee Institute of Good Governance and Policy Analysis (AIGGPA),

Bhopal. The focus was to shortlist the towns based on identified parameters and to suggest probable financial

models to implement the project. The study was conducted mainly through secondary research and stakeholder

consultations in a short span of three months.

As per census 2011, there are 427 towns in Madhya Pradesh out of which, 378 are Urban Local Bodies. Owing to

the large number of ULBs, few assumptions were made to reduce the number of towns for further analysis of Ring

Roads. The two assumptions made in this study were:

1. Towns with Development Plans: The first assumption made in this study was to consider only such

towns of Madhya Pradesh whose Development Plan is already prepared by Department of Town and

Country Planning. As on March 2020, there were 96 towns in Madhya Pradesh whose Development Plans

were prepared.

2. Towns with more than 1 Lakh Population: The second assumption made in this study was to analyze

only those towns, which have more than 1 Lakh population (based on projected population for 2019).

There are 36 towns in Madhya Pradesh, which have more than 1 Lakh population as per projected

population for 2019. Out of 36 towns, development plan and landuse map was not available for

Ashoknagar, Dhar, Shahdol and Gwalior SADA area, so they were excluded in Ring Road analysis.

After shortlisting 36 towns, seven parameters were identified which were assigned points on the scale of 0-5 based

on various sub categories. The identified parameters were simultaneously assigned weightages on the scale of

10. The parameters were judiciously assigned weightages to select towns where Ring Road could be developed

with ‘Least Level of Difficulties’ as in large cities land availability is limited and cost of acquisition is also higher

which will result in higher project development cost. Hence it was purposely eliminated from the list. . The table

below shows list of identified parameters along with assigned weightage.

Table 1: Table showing list of identified parameters along with their weightages

S.No. Parameter Weightage (on the scale of 10)

1 Population 0.5

2 Population Growth Rate between 2011-2019 2.0

3 Proximity to National Highway 2.0

4 Average Annual Vehicle Registration 0.5

5 Economic status of the town – Number of medium and large scale industries 1.0

6 Length of Ring Road/Bypass yet to be developed 2.5

7 Percentage of Ring Road/Bypass left to be constructed out of total proposed length 1.5

Total 10.0

Post assigning points and weightages, a town wise matrix was developed, which ranked the towns in the order of

priority of developing Ring Road according to their total weighted score. Towns with higher weighted score were

recommended to be considered for Ring Road development. Based on data analysed from the development plans

and information collected from Regional Office of NHAI and MPPWD, few towns were eliminated in the study since

these towns have either initiated the construction activities or is in pipeline of MPPWD. Few towns were eliminated

as they have been selected under Bharatmala scheme for development of Ring Road/Bypass.


Page ii

Table 2: Table showing list of eliminated towns in the study

S.No Town Study Recommendation Remark

1 Sehore Town eliminated from study Sehore has already developed 17 Km bypass as per DP and there is no separate proposal for Ring Road

2 Gwalior Town eliminated from study Gwalior has already developed 79 Km circular bypass as per DP

3 Betul Town eliminated from study Betul has already developed 13 Km bypass as per DP and there is no separate proposal for Ring Road

4 Katni Town eliminated from study Katni has already developed 17.8 Km bypass as per DP and there is no separate proposal for Ring Road

5 Satna Town eliminated from study Satna has already developed 30 Km circular bypass as per DP

6 Indore

Town eliminated from study Indore is selected under Bharatmala scheme for development of Ring Road

7 Shivpuri Town eliminated from study Shivpuri is selected under Bharatmala scheme for development of Ring Road

8 Sagar Town eliminated from study Sagar is selected under Bharatmala scheme for development of Bypass

9 Vidisha Town eliminated from study Vidisha is selected under Bharatmala scheme for development of Bypass

After eliminating above nine towns, the study recommends following towns should be considered for development

of Ring Road.

Table 3: Table showing list of towns with higher weighted score

S.No. Name of the Town Weighted Score

1 Rewa 40

2 Guna 36

3 Ratlam 35

4 Singrauli 32

5 Damoh 30

6 Mandsaur 30

Table 4: Table showing weighted score of all the towns analysed for ring road development in the study

S.No. Town Total Weighted

Score

Study Recommendation Remarks

1 Dewas 42 Town not considered NHAI has already awarded work for construction of another bypass which is just parallel to the missing part of proposed Ring Road

2 Jabalpur 41 Town not considered Bids for preparation of DPR & Feasibility Report for Jabalpur Ring Road of about 112 Km. length has been invited at NHAI-HQ, New Delhi.

3 Rewa 40 Town may be considered No proposal by NHAI/PWD

4 Guna 36 Town may be considered No proposal by NHAI/PWD

5 Itarsi 36 Town not considered No Ring Road is proposed for Itarsi. However, combined bypass for Itarsi & Hoshangabad is under construction, which is 33.5 Km length.

6 Ratlam 35 Town may be considered No proposal by NHAI/PWD

7 Hoshangabad 33 Town not considered A combined bypass for Itarsi & Hoshangabad is under construction, which is 33.5 Km in length.

8 Singrauli 32 Town may be considered Singrauli is under consideration by PWD for development of Ring Road/Bypass

9 Bhopal 31 Town not considered Case dropped due to anticipated high cost of land acquisition

10 Morena 30 Town not considered Bypass sanctioned under NHAI (DPR already submitted by consultant on 20.08.2018)

11 Damoh 30 Town may be considered Half of the Ring Road is already constructed in the form of Bypass, remaining half could be developed. Damoh is under consideration by PWD for development of remaining RR


Page iii

12 Mandsaur 30 Town may be considered No proposal by NHAI/PWD

13 Datia 29 Town may be considered No proposal by NHAI/PWD

14 Chhatarpur 29 Town not considered NHAI is already constructing 3 bypasses, which will make a ring road for Chhatarpur town.

15 Chhindwara 27 Town may be considered No proposal by NHAI/PWD

16 Bhind 23 Town not considered Bypass sanctioned under NHAI (DPR already submitted by consultant on 20.08.2018).

17 Neemuch 23 Town may be considered No proposal by NHAI/PWD

18 Seoni 22 Town may be considered No proposal by NHAI/PWD

19 Ujjain 20 Town may be considered No proposal by NHAI/PWD

20 Nagda 19 Town may be considered No proposal by NHAI/PWD

21 Khargone 16 Low weighted score, town not considered

No proposal by NHAI/PWD

22 Burhanpur 14 Low weighted score, town not considered


23 Khandwa 11 Low weighted score, town

not considered


Land Assembly Models and Funding Options of Ring Road Development Land assembly and development mechanism are undertaken for achieving the optimum social use of Land and to ensure adequate availability of land to public authority and individuals. Public private participation is achieved in land development through various techniques. Some of the land assembly techniques also promote flexibility in land utilization in response to changes resulting from the growing city. The various mechanisms to assemble land are enlisted below:

Traditional Land Acquisition Methods (Not covered here) Land Readjustment Transfer of Development Rights Guided Land Development (GLD)

Availability of land is the first step towards creating a robust network of ring road. The other crucial factor is the finance. The state and its municipalities need funds to finance the acquisition of the available land. Raising finance for any sort of urban infrastructure (ring road development or others) has been a challenge for several municipal bodies that are plagued by weak finances and their operational structure. Several municipal bodies do not have adequate resources to acquire the land for infrastructure development proposals laid down under the Master Plans/Development. The 2017 Economic Survey of India reveals that Indian cities tap only 5-20 per cent of the property tax potential. Fiscal effort and discipline on the part of urban local bodies are badly needed. At the current stage of India’s urban evolution, an all-out effort is needed to enable ULBs and other urban infrastructure authorities to mobilize resources, enhance fiscal discipline, generate seed money to leverage debt funds and improve credit-rating. Apart from the fiscal discipline, it is imperative to look at innovative instruments such as:

Tax Incentives Soft Loan from Multilateral and Bilateral Sustainable Infrastructure Development Fund Land Swap Model Air Rights Development Road Re-alignment Model Swiss Challenge Method

The above innovative models would assist the state and its municipalities for meeting the costs of land assembly, which will assist in smooth and speedy ring road development.

It is highly recommended as a way forward to conduct detailed Techno – Economic Feasibility Study of

the identified towns and develop detailed project report to further decide on the implementing strategy.

The identified towns may not be feasible for construction due to challenges like land availability, terrain of

the land, approvals, financial costing etc. Therefore, the way forward would be to conduct other relevant

study like feasibility study, land availability study, financial costing etc. before reaching to execution stage.


Page iv

CONTENTS

CHAPTER 1. PROJECT BACKGROUND ....................................................................................... 1

1.1. INTRODUCTION ............................................................................................................................. 1

1.2. OBJECTIVE OF THE STUDY ........................................................................................................ 1

1.3. APPROACH AND METHODOLOGY .......................................................................................... 2

1.4. STAKEHOLDER CONSULTATIONS .......................................................................................... 3

CHAPTER 2. PARAMETERS & WEIGHTAGES .......................................................................... 5

2.1. TOWNS IN MADHYA PRADESH ................................................................................................ 5

2.2. STUDY ASSUMPTIONS ................................................................................................................. 5

2.3. STUDY LIMITATIONS ................................................................................................................... 6

2.4. PARAMETERS & WEIGHTAGE .................................................................................................. 7

2.4.1. POPULATION OF THE TOWN ................................................................................................... 7

2.4.2. POPULATION GROWTH RATE REGISTERED BY THE TOWN ..................................... 7

2.4.3. PROXIMITY TO NATIONAL HIGHWAY ................................................................................. 8

2.4.4. AVERAGE ANNUAL VEHICLE REGISTRATIONS ............................................................... 9

2.4.5. ECONOMIC STATUS OF THE TOWN - NUMBER OF MEDIUM AND LARGE SCALE INDUSTRIES .................................................................................................................................... 9

2.4.6. LENGTH OF RING ROAD/BYPASS YET TO BE DEVELOPED ........................................ 9

2.4.7. PERCENTAGE OF RING ROAD/BYPASS ROAD YET TO BE CONSTRUCTED OUT OF TOTAL PROPOSED ............................................................................................................... 10

2.5. RANKING MATRIX ...................................................................................................................... 10

CHAPTER 3. TOWNWISE ANALYSIS OF WEIGHTED SCORE ............................................ 14

CHAPTER 4. FINANCIAL PLANNING ........................................................................................ 44

4.1. INTRODUCTION .......................................................................................................................... 44

4.2. CURRENT SCENARIO ................................................................................................................ 44

4.3. FUTURE OUTLOOK .................................................................................................................... 45

4.4. LAND ASSEMBLY AND FUNDING TECHNIQUES: AN OVERVIEW ........................... 45

4.5. INNOVATIVE LAND ASSEMBLY TECHNIQUES ............................................................... 46

4.5.1. LAND READJUSTMENT ............................................................................................................. 47

4.5.2. TRANSFER OF DEVELOPMENT RIGHTS ............................................................................ 50

4.5.3. GUIDED LAND DEVELOPMENT (GLD) ............................................................................... 54


Page v

4.6. LAND FUNDING TECHNIQUES .............................................................................................. 57

4.6.1. LAND SWAP MODEL .................................................................................................................. 58

4.6.2. ROAD RE-ALIGNMENT METHOD (RRM) ........................................................................... 58

4.6.3. SOFT LOAN FROM BILATERAL/ MULTILATERAL AGENCIES.................................. 59

4.6.4. AIR RIGHTS DEVELOPMENT .................................................................................................. 60

4.6.5. TAX INCENTIVE FINANCING (TIF) ...................................................................................... 62

4.6.6. SWISS CHALLENGE METHOD (SCM) .................................................................................. 63

4.6.7. SUSTAINABLE INFRASTRUCTURE DEVELOPMENT FUND (SIDF) ........................ 64

4.7. CONCLUSION ................................................................................................................................ 66

CHAPTER 5. WAYFORWARD ..................................................................................................... 67


Page vi

LIST OF TABLES

TABLE 1: TABLE SHOWING LIST OF IDENTIFIED PARAMETERS ALONG WITH THEIR WEIGHTAGES ......................... i

TABLE 2: TABLE SHOWING LIST OF ELIMINATED TOWNS IN THE STUDY ......................................................................ii

TABLE 3: TABLE SHOWING LIST OF TOWNS WITH HIGHER WEIGHTED SCORE ...........................................................ii

TABLE 4: TABLE SHOWING WEIGHTED SCORE OF ALL THE TOWNS ANALYSED FOR RING ROAD DEVELOPMENT IN THE STUDY .........................................................................................................................................................................ii

TABLE 5: TABLE SHOWING PROJECT PHASES AND SCOPE OF WORK ......................................................................... 1

TABLE 6: TABLE SHOWING PROJECTS STAGES AND APPROACH ADOPTED ............................................................... 2

TABLE 7: TABLE SHOWING SUMMARY OF STAKEHOLDER CONSULTATION CONDUCTED FOR THE PROJECT ...... 3

TABLE 8: TABLE SHOWING CLASSIFICATION OF TOWNS BASED ON PROJECTED POPULATION FOR 2019 ........... 5

TABLE 9: TABLE SHOWING LIST OF TOWNS WITH MORE THAN 1 LAKH POPULATION ............................................... 5

TABLE 10: TABLE SHOWING LIST OF IDENTIFIED PARAMETERS FOR RANKING OF TOWNS ..................................... 7

TABLE 11: TABLE SHOWING POINTS ASSIGNED TO VARIOUS POPULATION CATEGORIES ....................................... 7

TABLE 12: TABLE SHOWING POINTS ASSIGNED TO VARIOUS GROWTH RATE CATEGORIES ................................... 8

TABLE 13: TABLE SHOWING POINTS ASSIGNED FOR NATIONAL HIGHWAY AVAILABILITY ........................................ 8

TABLE 14: TABLE SHOWING POINTS FOR VARIOUS CATEGORIES OF AVERAGE VEHICLE REGISTRATIONS ......... 9

TABLE 15: TABLE SHOWING POINTS FOR PRESENCE OF MEDIUM AND LARGE-SCALE INDUSTRIES ...................... 9

TABLE 16: TABLE SHOWING POINTS ASSIGNED FOR VARIOUS CATEGORIES OF LENGTH OF RING ROAD/BYPASS YET TO BE DEVELOPED .......................................................................................................................... 10

TABLE 17: TABLE SHOWING POINTS ASSIGNED FOR VARIOUS PERCENTAGE OF RING ROAD/BYPASS YET TO BE CONSTRUCTED .............................................................................................................................................................. 10

TABLE 18: TABLE SHOWING LIST OF TOWNS NOT CONSIDERED IN THE STUDY ...................................................... 10

TABLE 19: TABLE SHOWING TOWN WISE WEIGHTED SCORE AS PER IDENTIFIED PARAMETERS ......................... 12


Page vii

LIST OF FIGURES

FIGURE 1: FIGURE SHOWING METHODOLOGY ADOPTED FOR IDENTIFICATION OF RING ROAD ............................. 2

FIGURE 2: MAP SHOWING TOWNS WITH MORE THAN 1 LAKH POPULATION IN MADHYA PRADESH ........................ 6

FIGURE 3: MAP SHOWING TOWNS WHICH DO NOT HAVE NATIONAL HIGHWAY CONNECTIVITY ............................. 8

FIGURE 4: PROPOSED LANDUSE OF DEWAS AS PER DEWAS DEVELOPMENT PLAN 2031 ...................................... 14

FIGURE 5: SATELLITE IMAGE OF DEWAS SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................. 14

FIGURE 6: PROPOSED LANDUSE OF JABALPUR AS PER JABALPUR DEVELOPMENT PLAN 2031 ........................... 15

FIGURE 7: SATELLITE IMAGE OF JABALPUR SHOWING STATUS OF RING ROAD/BYPASS ROAD ........................... 15

FIGURE 8: PROPOSED LANDUSE OF REWA AS PER DEVELOPMENT PLAN 2031 ...................................................... 16

FIGURE 9: SATELLITE IMAGE OF REWA SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................... 16

FIGURE 10: PROPOSED LANDUSE OF ITARSI AS PER ITARSI DEVELOPMENT PLAN 2031 ....................................... 17

FIGURE 11: SATELLITE IMAGE OF ITARSI SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................ 17

FIGURE 12: PROPOSED LANDUSE FOR GUNA AS PER GUNA DEVELOPMENT PLAN 2031 ....................................... 18

FIGURE 13: SATELLITE IMAGE OF GUNA SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................. 18

FIGURE 14: PROPOSED LANDUSE OF RATLAM AS PER RATLAM DEVELOPMENT PLAN 2031 ................................. 19

FIGURE 15: SATELLITE IMAGE OF RATLAM SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................. 19

FIGURE 16: : PROPOSED LANDUSE OF SAGAR AS PER SAGAR DEVELOPMENT PLAN 2031 ................................... 20

FIGURE 17: SATELLITE IMAGE OF SAGAR SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................... 20

FIGURE 18: PROPOSED LANDUSE OF HOSHANGABAD AS PER HOSHANGABAD DEVELOPMENT PLAN 2031 ...... 21

FIGURE 19: SATELLITE IMAGE OF HOSHANGABAD SHOWING STATUS OF RING ROAD/BYPASS ROAD ................ 21

FIGURE 20: PROPOSED LANDUSE OF SINGRAULI AS PER SINGRAULI DEVELOPMENT PLAN 2031 ....................... 22

FIGURE 21: SATELLITE IMAGE OF SINGRAULI SHOWING STATUS OF RING ROAD/BYPASS ROAD ........................ 22

FIGURE 22: PROPOSED LANDUSE OF BHOPAL AS PER BHOPAL DEVELOPMENT PLAN 2031 ................................. 23

FIGURE 23: SATELLITE IMAGE OF BHOPAL SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................. 23

FIGURE 24: PROPOSED LANDUSE OF MORENA AS PER MORENA DEVELOPMENT PLAN 2031 ............................... 24

FIGURE 25: SATELLITE IMAGE OF MORENA SHOWING STATUS OF RING ROAD/BYPASS ROAD ........................... 24

FIGURE 26: PROPOSED LANDUSE OF DAMOH AS PER DAMOH DEVELOPMENT PLAN 2031 ................................... 25

FIGURE 27: SATELLITE IMAGE OF DAMOH SHOWING STATUS OF RING ROAD/BYPASS ROAD .............................. 25

FIGURE 28: PROPOSED LANDUSE OF MANDSAUR AS PER MANDSAUR DEVELOPMENT PLAN 2031 ..................... 26

FIGURE 29: SATELLITE IMAGE OF MANDSAUR SHOWING STATUS OF RING ROAD/BYPASS ROAD ...................... 26

FIGURE 30: PROPOSED LANDUSE OF DATIA AS PER DATIA DEVELOPMENT PLAN 2031 ......................................... 27

FIGURE 31: SATELLITE IMAGE OF DATIA SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................. 27

FIGURE 32: PROPOSED LANDUSE OF CHHATARPUR AS PER CHHATARPUR DEVELOPMENT PLAN 2031 ............ 28

FIGURE 33: SATELLITE IMAGE OF CHHATARPUR SHOWING STATUS OF RING ROAD/BYPASS ROAD .................. 28

FIGURE 34: PROPOSED LANDUSE OF CHHINDWARA AS PER CHHINDWARA DEVELOPMENT PLAN 2031 ............. 29

FIGURE 35: SATELLITE IMAGE OF CHHINDWARA SHOWING STATUS OF RING ROAD/BYPASS ROAD ................. 29

FIGURE 36: PROPOSED LANDUSE OF VIDISHA AS PER VIDISHA DEVELOPMENT PLAN 2031 ............................... 30

FIGURE 37: SATELLITE IMAGE OF VIDISHA SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................. 30

FIGURE 38: PROPOSED LANDUSE OF BHIND AS PER BHIND DEVELOPMENT PLAN 2031 ........................................ 31

FIGURE 39: SATELLITE IMAGE OF BHIND SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................ 31

FIGURE 40: PROPOSED LANDUSE OF NEEMUCH AS PER NEEMUCH DEVELOPMENT PLAN 2031 .......................... 32


Page viii

FIGURE 41: SATELLITE IMAGE OF NEEMUCH SHOWING STATUS OF RING ROAD/BYPASS ROAD .......................... 32

FIGURE 42: PROPOSED LANDUSE OF SEONI AS PER SEONI DEVELOPMENT PLAN 2031 ........................................ 33

FIGURE 43: SATELLITE IMAGE OF SEONI SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................. 33

FIGURE 44: PROPOSED LANDUSE OF UJJAIN AS PER UJJAIN DEVELOPMENT PLAN 2031 ...................................... 34

FIGURE 45: : SATELLITE IMAGE OF UJJAIN SHOWING STATUS OF RING ROAD/BYPASS ROAD .............................. 34

FIGURE 46: PROPOSED LANDUSE OF NAGDA AS PER NAGDA DEVELOPMENT PLAN 2031 ..................................... 35

FIGURE 47: SATELLITE IMAGE OF NAGDA SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................... 35

FIGURE 48: PROPOSED LANDUSE OF KHARGONE AS PER KHARGONE DEVELOPMENT PLAN 2031 ..................... 36

FIGURE 49: SATELLITE IMAGE OF KHARGONE SHOWING STATUS OF RING ROAD/BYPASS ROAD ....................... 36

FIGURE 50: PROPOSED LANDUSE OF BURHANPUR AS PER BURHANPUR DEVELOPMENT PLAN 2031 ................. 37

FIGURE 51: SATELLITE IMAGE OF BURHANPUR SHOWING STATUS OF RING ROAD/BYPASS ROAD ..................... 37

FIGURE 52: PROPOSED LANDUSE OF KHANDWA AS PER KHANDWA DEVELOPMENT PLAN 2031 ......................... 38

FIGURE 53: SATELLITE IMAGE OF KHANDWA SHOWING STATUS OF RING ROAD/BYPASS ROAD ......................... 38

FIGURE 54: PROPOSED LANDUSE OF SEHORE AS PER SEHORE DEVELOPMENT PLAN 2031 ................................ 39

FIGURE 55: SATELLITE IMAGE OF SEHORE SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................. 39

FIGURE 56: PROPOSED LANDUSE OF GWALIOR AS PER GWALIOR DEVELOPMENT PLAN 2031 ............................ 40

FIGURE 57: SATELLITE IMAGE OF GWALIOR SHOWING STATUS OF RING ROAD/BYPASS ROAD .......................... 40

FIGURE 58: PROPOSED LANDUSE OF BETUL AS PER BETUL DEVELOPMENT PLAN 2031 ....................................... 41

FIGURE 59: SATELLITE IMAGE OF BETUL SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................... 41

FIGURE 60: PROPOSED LANDUSE OF KATNI AS PER KATNI DEVELOPMENT PLAN 2031 ......................................... 42

FIGURE 61: SATELLITE IMAGE OF KATNI SHOWING STATUS OF RING ROAD/BYPASS ROAD ................................ 42

FIGURE 62: PROPOSED LANDUSE OF SATNA AS PER SATNA DEVELOPMENT PLAN 2031 ...................................... 43

FIGURE 63: SATELLITE IMAGE OF SATNA SHOWING STATUS OF RING ROAD/BYPASS ROAD ............................... 43

FIGURE 64: FIGURE SHOWING ROAD CONSTRUCTION UNDER PMGSY (IN KM) ........................................................ 44

FIGURE 65: FIGURE SHOWING DISTRIBUTION OF LAND POST LAND POOLING ........................................................ 49

FIGURE 66: AN ILLUSTRATION OF SEGMENTATION OF LAND UNDER LAND POOLING ............................................ 50

FIGURE 67: CONCEPT OF GUIDED LAND DEVELOPMENT IN DIAGRAM ....................................................................... 55

FIGURE 68: PROPOSED SURAT MULTI-MODAL TRANSPORT HUB ............................................................................... 61


Page ix

LIST OF ANNEXURES

ANNEXURE 1: DATA COLLECTION TEMPLATE FOR RING ROAD DEVELOPMENT ...................................................... 69

ANNEXURE 2: DIVISION WISE, TOWN WISE PROJECTED POPULATION AND POPULATION MARKS ....................... 72

ANNEXURE 3: DIVISION WISE, TOWN WISE POPULATION GROWTH RATE AND GROWTH RATE MARKS .............. 73

ANNEXURE 4: DIVISION WISE, TOWN WISE NH AND NH AVAILABILITY MARKS ......................................................... 74

ANNEXURE 5: LENGTH OF RING ROAD/BYPASS YET TO BE CONSTRUCTED MARKS............................................... 75

ANNEXURE 6: DIVISION WISE, TOWN WISE MARKS FOR % OF RING ROAD/BYPASS ROAD LEFT TO BE CONSTRUCTED ................................................................................................................................................................... 76

ANNEXURE 7: DIVISION WISE, TOWN WISE VEHICLE REGISTRATION MARKS ........................................................... 77

ANNEXURE 8: DIVISION WISE, TOWN WISE NUMBER OF MEDIUM AND LARGE SCALE INDUSTRIES MARKS........ 78

ANNEXURE 9: ACTION PLAN .............................................................................................................................................. 82


Page x

ABBREVIATIONS

1 AIGGPA Atal Bihari Vajpayee Institute of Good Governance and Policy Analysis

2 CBD Central Business District

3 CRZ Coastal Regulation Zone

4 DPR Detailed Project Report

5 DRM Disaster Risk Management

6 EMI Earthquake and Mega Cities Initiative

7 GLD Grid Land Development

8 GoI Government of India

9 GoMP Government of Madhya Pradesh

10 LR Land Readjustment

11 LVC Land Value Capture

12 MD Managing Director

13 MoU Memorandum of Understanding

14 MPPWD Madhya Pradesh Public Work Department

15 MPRDC Madhya Pradesh Road Development Corporation

16 MRTS Mass Rapid Transit System

17 NGO Non-Government Organization

18 NH National Highway

19 NHAI National Highway Authority of India

20 NTPC National Thermal Power Corporation

21 PPP Public Private Partnership

22 PS Principal Secretary

23 RR Ring Road

24 RTO Regional Transport Office

25 SCM Swiss Challenge Method

26 SPV Special Purpose Vehicle

27 TDR Transfer of Development Rights

28 TIF Tax Increment Financing

29 TPS Town Planning Scheme

30 UDHD Urban Development and Housing Department

31 ULB Urban Local Bodies

32 UNDP United Nations Development Programme


Page 1

CHAPTER 1. PROJECT BACKGROUND

1.1. INTRODUCTION

The towns in Madhya Pradesh are urbanizing rapidly which brings both opportunities as well as challenges for

the policy makers as well as society. The enhancement of economic and social activities in the urban areas are

associated with many human development challenges like population growth, infrastructure challenges like over

burden road, water & power shortages, poor sanitation etc and heavy traffic congestions. One of the challenges

associated with growing urbanization is the heavy traffic congestion. One of the measures to decongest the traffic

load could be development of ring roads. It can decongest the cities from heavy traffic load for which it is advisable

to plan for bypass/ring road development well in advance to reduce future repercussions.

Development of Ring Road will have many advantages such as:

Reduce the time of travel for inter-city traffic that need not enter the town.

Help reduce congestion on main arterial roads by providing an alternate bypass option for heavy and

light commercial vehicles.

Facilitate opening of new areas outside

Unlock the potential of land on either side of a new ring road and open lands further on for the town’s

growth and expansion

Looking into the advantages of developing the ring road, Government of Madhya Pradesh decided to consider

few Ring roads projects in the select towns of Madhya Pradesh. The towns where there is requirement as well as

feasible for implementing the project. In order to identify such towns in the state, it was decided by Madhya

Pradesh Public Work Department (MPPWD) that a quick study to shortlist the towns can be taken up by Atal

Bihari Vajpayee Institute of Good Governance and Policy Analysis (AIGGPA), Bhopal. The focus was to shortlist

the towns based on identified parameters and to suggest probable financial models to implement the project. The

study was conducted mainly through secondary research and stakeholder consultations.

1.2. OBJECTIVE OF THE STUDY

The objective of the study was divided into two phases, which is mentioned in the table below:

Table 5: Table showing project phases and scope of work

Phases Scope of Work

Phase 1 – Conceptualization and Finalization of Selection Criteria

Conceptualization based on prevalent criteria if any and best practices elsewhere.

Development of tentative parameters for identification of towns.

Stakeholder consultations on the concept and draft parameters.

Prepare a tentative list of towns based on the identified parameters.

Obtain department’s approval on the parameters and finalize the criteria for

selection

Prepare a list of identified towns based on the criteria.

Identify list of towns where ring road/bypass could be developed in Madhya

Pradesh

Prepare Short Report for 5 towns which can implement ring road with least level of

difficulties

Phase 2 - Financial Planning Phase

Identify options and methods for mobilization of fiscal resources for the projects.

Prepare indicative project development models to undertake the project


Page 2

1.3. APPROACH AND METHODOLOGY

The step-by-step approach and methodology adopted for conducting the study is shown below:

Figure 1: Figure showing methodology adopted for identification of Ring Road

The table below details out the approach adopted to conclude the study.

Table 6: Table showing projects stages and approach adopted

Stages Head Approach

Stage 1 Identification of Parameters for identification of towns/cities

Out of 378 ULBs in Madhya Pradesh, it was important to identify parameters based on which 30 towns could be identified and prioritized for development of Ring Road/Bypass with Level of Difficulties.

Example of such parameters include Population of Town, Population Growth Rate, Vehicle Registration Number etc.

Case Studies of towns which have either implemented or are planning to implement ring road project – Various case studies through secondary sources were made to understand Ring Road and Bypass development projects implemented in India

Stage 2 Assigning Points and Weightages to the parameters

Once the parameters were identified, they were assigned points on the scale of 0-5 based on various sub categories.

The identified parameters were simultaneously assigned weightages on the scale of 10. The parameters, which have high impact on Ring Road development, were assigned higher weightages and the parameters, which have low impact on Ring Road, were assigned lower weightages.

Stage 3 Development of matrix for ranking/prioritizing the probable list of cities/towns

Post assigning points and weightages, a town wise matrix was developed, which ranked the towns in the order of priority of developing Ring Road according to their total weighted score. Towns with higher weighted score were recommended to be considered for Ring Road development.

Stage 4 Options and methods for mobilization of fiscal resources for the projects

Recommendations on the various options and methods for mobilization of finances were to be identified.

Stage 5 Submission of Final Report

After incorporating suggestions received from authorities and other stakeholders, final report was submitted.


Page 3

1.4. STAKEHOLDER CONSULTATIONS

During the course of study, various meetings were held at with government officials to collect relevant data and

to understand ongoing as well as status of the proposed Ring Road/Bypass projects in Madhya Pradesh. Below

table summarizes all such meetings held.

Table 7: Table showing summary of stakeholder consultation conducted for the project

S.No. Date of

Meeting

Name of officials Key discussion points

1. 18.09.2019 Mr Malay Shrivastava, Principal

Secretary, Madhya Pradesh

Public Work Department

(MPPWD)

Inception meeting to discuss on broad strategy to be

adopted for identification of the cities for Ring Road

development.

Guidance to finalize the action plan for implementing the

projects including financial planning

2. 23.10.2019 Mr Malay Shrivastava, Principal

Secretary, MPPWD

Draft Survey format to collect relevant information from

field was shared to the department and informed to

Principal Secretary for the guidance and necessary

support.

3. 08.11.2019 Mr Sudam Khade, Managing

Director, MPPWD

Meeting to discuss and decide on the survey format

Discuss on the parameters to selected the cities and took

guidance on the way forwards

4. 13.12.2019 Mr. Sudam Khade, MD MPPWD It was informed to AIGGPA that the project planning

henceforth will be taken up by Madhya Pradesh Urban

Development and Housing Department

Project will be implemented by MPPWD/MPRDC after

finalization from UDHD.

5. 21.01.2020 Mr Sanjay Dubey, Principal

Secretary, Urban Development

and Housing Department

A brief presentation was made before the PS on the

expected task and current status of the project with a

request for the support from the department on the

information/data from ULBs. In this regard, PS UD&HD

suggested following action points, which can help

department on aligning the project in future.

i. Institute may identify top 30 towns based on identified

parameters however out of those at least 5 towns field

level detailing is required to determine the level of

difficulties in implementing the project like status of land

availability, railway line crossing, bridge and also to work

out approximate project cost for 5 shortlisted towns.

ii. PS advised to identify various funding option and project

development model to take up this project.

6. 29.01.2020 Mr Shriram Mishra, SE, National

Highway, MPPWD

Gave an insight on the upcoming projects of

MPPWD/MPRDC and shared PCU data. The cities which

may be eliminated from the list as per Mr Shriram Mishra

due to already being considered in the pipeline projects of

MPPWD is as follows:-

i. Sagar – Already in Bharatmala Scheme and NHAI is

planning

ii. Guna – Half road stretch has been taken up, remaining

half may be considered (to be discussed with NHAI).

iii. Singrauli – Check with MPRDC

iv. Hoshangabad & Itarsi – NHAI has already planned for

combined bypass for both the cities and hence may be

dropped from the list of Ring Road/Bypass development

v. Damoh – Half road stretch may be taken up.


Page 4

S.No. Date of

Meeting

Name of officials Key discussion points

vi. Vidisha – NHAI is taking up in Bharatmala scheme

vii. Mandsaur – May be considered as one of the city

viii. Chhatarpur – NHAI has already planned

ix. Neemuch – May be considered after discussion with NHAI

x. Ratlam – Check with NHAI

xi. Bhind – Half road stretch has been taken up, remaining

may be considered (to be discussed with NHAI)

xii. Morena - Half road stretch has been taken up; Remaining

may be considered (to be discussed with NHAI)

Advised to meet officers from National Highway Authority

of India (NHAI) also to review the NHAI pipeline projects.

7. 04.02.2020 Mr. Suresh Sejkar, SE &

Engineer n Chief, (Additional

Charge) UDHD

Discussion to understand the costing and financial

planning of engineering projects of UDHD

Discussion on probable list of cities for Ring Road

development based on Master plan suggestions

8. 25.02.2020 Tour to Dewas [Tour report is

annexed]

It was informed by the collector office that NHAI has

already appointed a contractor for development of bypass

road which is just parallel to road proposed as ring road as

per DP 2031. The road proposed by the NHAI is of 15 km

stretch, which connects NH-3 to SH-18. It is at a distance

of 12 km approximately from the existing settlement. The

distance of proposed bypass from the proposed ring road

ranges from 6 km- 12 km.

Dewas has to be dropped from the shortlisted list as NHAI

has already taken up the project development activities.

9. 04.03.2020 Mr. Chadhvani & Mr Avneet

Siddhartha, Deputy Manager,

NHAI, Regional Office, Bhopal

Discussion on the probable list of cities for ring road

development. The officers informed that they will

consolidate the data from the field on the cities where

NHAI pipeline projects are listed.

10. 16.03.2020 Mr. Avneet Siddhartha, Deputy

Manager, NHAI, Regional Office,

Bhopal

Shared to confirm the list of towns where there is no

provisions or is in pipeline projects of NHAI. [Enclosed as

Annexure-9 ]

11. 15.09.2020 Ms Ruchika Chauhan, Additional

Commissioner, Urban

Development & Housing

Department

It was explained that due to Covid lockdown field visit to

sites were restricted and hence based on the secondary

research the study has been conducted and concluded. In

any case, a detailed feasibility report and detailed project

report is required to reach to conclusion for

implementation.


Page 5

CHAPTER 2. PARAMETERS & WEIGHTAGES

2.1. TOWNS IN MADHYA PRADESH

As per census 2011, there are 427 towns in Madhya Pradesh out of which, 378 are Urban Local Bodies. Owing

to the large number of ULBs, few assumptions were made to reduce the number of towns for further analysis of

Ring Roads. The assumptions made in this study are discussed below.

2.2. STUDY ASSUMPTIONS

1. Towns with Development Plans: The first assumption made in this study was to consider only such towns of

Madhya Pradesh whose Development Plan is already prepared by Department of Town and Country Planning,

since the Development Plans generally have proposals for Ring Roads and Bypasses. As on March 2020, there

were 96 towns in Madhya Pradesh whose Development Plans were prepared.

2. Towns with more than 1 Lakh Population: The second assumption made in this study was to analyze only

those towns, which have more than 1 Lakh population (based on projected population for 2019). These towns are

urbanizing rapidly and facing the issues associated with increasing population and traffic, hence they have more

requirement for development of Ring Road compared to smaller towns. Following table shows classification of 96

towns (towns whose development plan is prepared) based on population:

Table 8: Table showing classification of towns based on projected population for 2019

S.No. Town Classification No. of Towns

1 Towns with < 10,000 population 5

2 Towns with 10,001 – 20,000 population 8

3 Towns with 20,001 – 50,000 population 20

4 Towns with 50,001 – 1 Lakh population 27

5 Towns with 1 Lakh – 5 Lakh population 31

6 Towns with 5,00,001 – 10 Lakh population 1

7 Towns with > 10 Lakh population 4

There are 36 towns in Madhya Pradesh, which have more than 1 Lakh population as per projected population for

2019. Out of 36 towns, development plan and landuse map was not available for Ashoknagar, Dhar, Shahdol and

Gwalior SADA area, so they were excluded in Ring Road analysis. In subsequent sections, further analysis has

been done for remaining 32 towns which have more than 1 Lakh population and whose Development Plan and

Land Use Map were available for analysis.

Table 9: Table showing list of towns with more than 1 Lakh population

S.No. Division District ULB's Name ULB Type Projected Population 2019

Availability of Development Plan and Landuse Map

1 Bhopal Bhopal Bhopal Municipal Corporation 20,85,933 Available

2 Bhopal Sehore Sehore Municipal Council 1,23,236 Available

3 Bhopal Vidisha Vidisha Municipal Council 1,80,903 Available

4 Chambal Bhind Bhind Municipal Council 2,07,225 Available

5 Chambal Morena Morena Municipal Council 2,29,660 Available

6 Gwalior Gwalior Gwalior Municipal Corporation 12,23,127 Available

7 Gwalior Shivpuri Shivpuri Municipal Council 2,05,271 Available

8 Gwalior Datia Datia Municipal Council 1,12,098 Available

9 Gwalior Guna Guna Municipal Council 2,06,329 Available

10 Hoshangabad Hoshangabad Hoshangabad Municipal Council 1,36,860 Available

11 Hoshangabad Hoshangabad Itarsi Municipal Corporation 1,11,256 Available

12 Hoshangabad Betul Betul Municipal Council 1,17,372 Available


Page 6

13 Indore Indore Indore Municipal Corporation

23,13,500 Available

14 Indore Burhanpur Burhanpur Municipal Corporation 2,33,417 Available

15 Indore Khandwa Khandwa Municipal Corporation 2,24,546 Available

16 Indore Khargone Khargone Municipal Council 1,31,412 Available

17 Jabalpur Jabalpur Jabalpur Municipal Corporation 12,54,745 Available

18 Jabalpur Chhindwara Chhindwara Municipal Council 1,98,636 Available

19 Jabalpur Katni Katni Municipal Corporation 2,51,969 Available

20 Jabalpur Seoni Seoni Municipal Council 1,14,714 Available

21 Rewa Rewa Rewa Municipal Corporation 2,73,359 Available

22 Rewa Satna Satna Municipal Corporation 3,33,144 Available

23 Rewa Singrauli Singrauli Municipal Corporation 2,55,498 Available

24 Sagar Sagar Sagar Municipal Corporation 3,07,854 Available

25 Sagar Chhatarpur Chhatarpur Municipal Council 1,62,611 Available

26 Sagar Damoh Damoh Municipal Council 1,55,976 Available

27 Ujjain Ujjain Ujjain Municipal Corporation 6,03,636 Available

28 Ujjain Dewas Dewas Municipal Corporation 3,31,415 Available

29 Ujjain Ratlam Ratlam Municipal Corporation 2,97,156 Available

30 Ujjain Mandsaur Mandsaur Municipal Council 1,58,807 Available

31 Ujjain Neemuch Neemuch Municipal Council 1,44,620 Available

32 Ujjain Ujjain Nagda Municipal Council 1,16,045 Available

Figure 2: Map showing towns with more than 1 Lakh population in Madhya Pradesh

2.3. STUDY LIMITATIONS

This study had few limitations owing to time constraint (3 months study duration), which are listed below:

This study was primarily intended to be based on data collected from various secondary sources and

stakeholder consultations.

Though it is well, understood, that to reach to a strong justification it requires additional information like traffic

surveys but owing to time constraint, the same was interpreted by taking average vehicle registration data from

RTO offices.


Page 7

Ideally, assessment of land ownership requires superimposition of proposed ring road/bypass alignment as per

development plan on the Khasra map, but in the study it was found that many towns did not have khasra based

landuse maps where such analysis could be done. For the towns which had khasra based landuse map, their

data did not match with the land ownership data available on Madhya Pradesh Land records database. Hence,

land ownership and cost of land acquisition were to be evaluated based on site visit and discussion with Patwari

or Revenue Inspector of given area for the selected town.

2.4. PARAMETERS & WEIGHTAGE

To rank towns in the order of priority, seven parameters were identified which may have an impact on Ring Road development. The identified parameters were also assigned with weightage on the scale of 10 to arrive at final rank of the towns.

Table 10: Table showing list of identified parameters for ranking of towns

S.No. Parameter Weightage (on the scale of 10)

1 Population 0.5

2 Population Growth Rate between 2011-2019 2.0

3 National Highway Availability 2.0

4 Average Annual Vehicle Registration 0.5

5 Economic status of the town – Number of medium and large scale industries 1.0

6 Length of Ring Road/Bypass yet to be developed 2.5

7 Percentage of Ring Road/Bypass left to be constructed out of total proposed length 1.5

Total 10.0

2.4.1. Population of the town

Population of town was considered the primary parameter to categorize the 96 towns into different categories. As

a thumb rule, higher population can generally be related to higher economic activities, higher movement of goods

and traffic, higher developmental activities etc. Therefore, population of town was considered the first parameter

for the study. To assess current scenario of population of towns in Madhya Pradesh, the census 2011 population

was projected for the year 2019. The towns with more than 1 Lakh population were further classified into 5

categories. Highest 5 points were assigned to towns with more than 10 Lakh population i..e. Indore, Bhopal,

Jabalpur and Gwalior and similarly remaining towns were assigned the points based on population category as

following.

Table 11: Table showing points assigned to various population categories

S. No. Population Category Points Number of Towns

1 Greater or equal to 10 Lakh 5 04 (Indore, Bhopal, Jabalpur and Gwalior)

2 5 Lakh to 10 Lakh 4 01 (Ujjain)

3 3 Lakh to 5 Lakh 3 03 (Dewas, Sagar and Satna)

4 2 Lakh to 3 Lakh 2 10

5 1 Lakh to 2 Lakh 1 14

As mentioned above, population is a very crucial parameter for deciding development of Ring Road and

accordingly marks were assigned to towns based on their population. However, it is pertinent to mention here that

towns with ‘Least Level of Difficulties will be the towns with less population’. In bigger towns, the land availability

is limited and cost of land acquisition is also higher which will result in higher project development cost. Moreover,

in large cities, there are multiple agencies and schemes from central government to develop road projects through

Public Private Participation (PPP) mode. Hence, population was assigned low weightage in the study.

2.4.2. Population growth rate registered by the town

The population growth rate measures how fast the size of population is changing. Rapid population growth can

place strain on available infrastructure. This holds true in case of many towns of Madhya Pradesh which are

growing at a fast pace putting high pressure on existing road infrastructure, parking requirement etc. The


Page 8

population growth rate for the towns under consideration was calculated on projected 2019 based on population

for 2011. The rating system for town’s growth rate was categorized into five heads as shown below.

Table 12: Table showing points assigned to various growth rate categories

S. No. Growth Rate (%) Points Number of Towns

1 >=30% 5 04 (Morena, Guna, Indore, Chhatarpur)

2 25% to 30% 4 07 (Bhopal, Gwalior, Chhindwara, Satna, Rewa, Singrauli and Dewas)

3 20% to 25% 3 11

4 15% to 20% 2 07 (Vidisha, Khandwa, Seoni, Katni, Sagar, Neemuch and Jabalpur)

5 <15% 1 03 (Itarsi, Burhanpur and Nagda)

Due to strong reason to consider for ring road development, the population growth rate was assigned higher

weightage of 2.0 in the study.

2.4.3. Proximity to National Highway

One of the criteria to plan a bypass is it’s proximity on the National Highway route. However, it does not have

direct co-relation with the development of ring road, as the purpose of ring road is to decentralize traffic movement

from the existing, heavily congested roads within the city center by providing alternate routes for traffic flows,

which is not impacted by the presence of National Highway in the town.

But, in the study an attempt has been made to select and prioritize such towns where ring roads and bypass

earmarked in the development plans overlaps. In the development plan of a town, if a part of proposed Ring Road

also acts a bypass for the town and if the town is located along National Highway, then there are more chances

that the bypass is either constructed or it will be constructed by NHAI which will eventually reduce the project cost

and increase the financial viability of the project for state government. Considering this aspect, this parameter

was assigned weightage of 2.0.

The towns, which are located on the National Highway, were assigned with five marks and the towns, which are

not located on the National Highway, were assigned zero marks. There are only five towns with more than one

Lakh population in Madhya Pradesh, which are not located on National Highways namely Ujjain, Nagda,

Khandwa, Burhanpur and Khargone.

Table 13: Table showing points assigned for National Highway availability

S. No. Whether located on NH Rating No. of Towns

1 Yes 5 30

2 No 1 06 (Ujjian, Nagda, Khandwa, Burhanpur, Khargone)

Ashoknagar is also not located on NH but it is excluded from

the analysis due to non-availability of its development plan

Figure 3: Map showing towns which do not have National Highway connectivity


Page 9

2.4.4. Average annual vehicle registrations

Number of vehicles registered for a given year for a given town can represent the traffic intensity. Higher the

number of vehicular registrations, higher could be the traffic. Higher the traffic, higher would be the need for ring

road for growing traffic and movement of people. Considering this aspect, vehicular registration data was collected

from RTO office for all the districts of Madhya Pradesh during 2014-2018. Since the RTO maintains vehicular

registration data at district level, for a given town, district level data was corresponded to town level in the same

proportion in which town shares its population w.r.t. district population. Since, this parameter is derived

considering population, its weightage is also kept similar to population weightage i.e. 0.5.

The four most populous cities of Madhya Pradesh have highest no. of vehicle registration annually. Indore,

Bhopal, Jabalpur and Gwalior have average 90,385, 79,430, 29,180 and 26,470 average annual vehicle

registrations respectively. The only city scoring 4 rating is Ujjain followed by Dewas and Ratlam scoring 3. Satna,

Rewa, Sagar, Neemuch and Burhanpur scoring 2 and rest of the towns scoring 1.

Table 14: Table showing points for various categories of average vehicle registrations

2.4.5. Economic Status of the Town - Number of medium and large scale industries

Economic activities in the town have a major impact on the travel and transportation needs of any given town.

Presence of industries in a town can lead to increased vehicular movement. Hence, presence of medium and

large scale industries was considered as one of the parameter for identification of town for development of Ring

Road and it was assigned a weightage of 1.5.

Table 15: Table showing points for presence of medium and large-scale industries

2.4.6. Length of Ring road/Bypass yet to be developed

Out of 32 towns with more than 1 lakh population, few towns were further eliminated which have already

developed 100% Ring Road/Bypass as per the provision of their respective development plans. There are 5 such

towns namely Betul, Sehore, Gwalior, Katni and Satna. Apart from these 5 towns, Indore, Shivpuri, Sagar and

Vidisha were not considered in the analysis as they are already selected under Bharatmala Scheme for

development of Ring Road. Remaining 23 towns were further given rating based on the length of the proposed

ring road/ bypass left to be constructed. The towns with lesser length left to be constructed were given higher

rating and the towns with higher length left to be constructed were giver lower rating. It was assumed that it would

be easier to construct smaller length of ring road/bypass with lower financial implications. Hence, this parameter

was assigned the highest weightage of 2.5.

S. No. No. of vehicles registered annually (Average of 5

years 2014-2018)

Rating Number of Towns

1 >20,000 5 4 (Gwalior, Indore, Jabalpur and

Bhopal)

2 10,000-20,000 4 1 (Ujjain)

3 5,000-10,000 3 2 (Dewas and Ratlam)

4 3,000-5,000 2 5 (Satna, Rewa, Sagar,

Neemuch and Burhanpur)

5 <3,000 1 20

S. No. No. of registered medium and large scale

industries

Rating No. of Towns

1 >25 5 1 (Dewas)

2 15-25 4 4 ( Jabalpur, Bhopal and Ratlam)

3 10-15 3 3 (Chhindwara and Ujjain)

4 15-25 2 6 (Rewa, Guna, Morena and

Khargone)

5 >25 1 12


Page 10

Table 16: Table showing points assigned for various categories of length of ring road/bypass yet to be developed

2.4.7. Percentage of ring road/bypass road yet to be constructed out of total proposed

Another parameter considered for ranking of towns was the percentage of Ring Road/Bypass road left to be

constructed out of total proposed length as per Development Plan. Lower the percentage of Ring Road/Bypass

left to be constructed higher was the rating assigned to it and vice versa. This parameter was assigned weightage

of 1.5. Table 17: Table showing points assigned for various percentage of ring road/bypass yet to be constructed

S.No. Length of Ring Road/Bypass yet to be developed (in kms)

Rating No. of Towns

1 0-5 5 1 (Itarsi)

2 5-10 4 06 (Jabalpur, Dewas, Rewa, Datia, Hoshangabad and Nagda)

3 10-15 3 05 (Ratlam, Guna, Mandsaur, Burhanpur and Damoh)

4 15-20 2 06 (Khargone, Seoni, Singrauli, Chhatarpur, Neemuch and Ujjain)

5 Above 20 1 05 (Bhopal, Morena, Bhind, Khandwa and Chhindwara)

2.5. RANKING MATRIX

A detailed matrix was prepared to consider the towns for development of Ring Road in Madhya Pradesh. Based

on data analysed from the development plans and information collected from Regional Office of NHAI and

MPPWD, few towns were eliminated in the study since these towns have either initiated the construction activities

or is in pipeline of MPPWD. Few towns were eliminated as they have been selected under Bharatmala scheme

for development of Ring Road/Bypass. The remaining towns could be considered according to their weighted

score.

Table 18: Table showing list of towns not considered in the study

Towns which have not been considered in the study since they have already developed ring road/bypass as per the provision of their respective Development Plan

S.No Division District Town Remark

1 Bhopal Sehore Sehore Sehore has already developed 17 Km bypass as per DP and there is no separate proposal for Ring Road

2 Gwalior Gwalior Gwalior Gwalior has already developed 79 Km circular bypass as per DP

3 Hoshangabad

Betul Betul Betul has already developed 13 Km bypass as per DP and there is no separate proposal for Ring Road

4 Jabalpur Katni Katni Katni has already developed 17.8 Km bypass as per DP and there is no separate proposal for Ring Road

5 Rewa Satna Satna Satna has already developed 30 Km circular bypass as per DP

Towns which have not been considered in the study since they are already going to develop ring road/bypass under Bharatmala scheme

S.No Division District Town Remark

6 Indore Indore Indore

Indore is selected under Bharatmala scheme for development of Ring Road

7 Gwalior Shivpuri Shivpuri Shivpuri is selected under Bharatmala scheme for development of Ring Road

S. No. Percentage of ring

road/bypass yet to be

constructed (in Km)

Rating No. of Towns

1 0-20 5 03 (Jabalpur, Rewa and Itarsi)

2 20-40 4 02 (Dewas and Singrauli)

3 40-60 3 06 (Ratlam, Guna, Hoshangabad, Damoh, Mandsaur and

Neemuch)

4 60-80 2 04 (Datia, Vidisha, Chhatarpur, Nagda and Bhind)

5 80-100 1 08 (Bhopal, Ujjain, Seoni, Morena, Chhindwara, Burhanpur,

Khandwa and Khargone)


Page 11

8 Sagar Sagar Sagar Sagar is selected under Bharatmala scheme for development of Bypass

9 Bhopal Vidisha Vidisha Vidisha is selected under Bharatmala scheme for development of Bypass

After eliminating above nine towns, the study recommends following towns should be considered for development

of Ring Road.

S.No. Name of the Town Weighted Score

1 Rewa 40

2 Guna 36

3 Ratlam 35

4 Singrauli 32

5 Damoh 30

6 Mandsaur 30


Page 12

Table 19: Table showing town wise weighted score as per identified parameters

S.No. Name of Town Population Weighted

Score

Growth Rate Weighted

Score

NH Availability Weighted

Score

Registered Vehicle

Weighted Score

Industrial Weighted

Score

Length of RR yet to be developed Weighted

Score

% of RR yet to be developed

Weighted Score

TOTAL WEIGHTED

SCORE

Remarks

1 Dewas 1.5 8 10 1.5 5 10 6 42 NHAI has already awarded work for construction of another bypass which is just parallel to the missing part of proposed Ring Road

2 Jabalpur 2.5 4 10 2.5 4 10 7.5 41 Bids for preparation of DPR & Feasibility Report for Jabalpur Ring Road of about 112 Km. length has been invited at NHAI-HQ, New Delhi.

3 Rewa 1.5 8 10 1 2 10 7.5 40 No proposal by NHAI/PWD

4 Guna 1 10 10 0.5 2 7.5 4.5 36 No proposal by NHAI/PWD

5 Itarsi 0.5 2 10 0.5 3 12.5 7.5 36 No Ring Road is proposed for Itarsi. However, combined bypass for Itarsi & Hoshangabad is under construction, which is 33.5 Km length.

6 Ratlam 1.5 6 10 1.5 4 7.5 4.5 35 No proposal by NHAI/PWD

7 Hoshangabad 0.5 6 10 0.5 1 10 4.5 33 A combined bypass for Itarsi & Hoshangabad is under construction, which is 33.5 Km in length.

8 Singrauli 1.5 8 10 0.5 1 5 6 32 Singrauli is under consideration by PWD for development of Ring Road/Bypass

9 Bhopal 2.5 8 10 2.5 4 2.5 1.5 31 Case dropped due to anticipated high cost of land acquisition

10 Morena 1 6 10 0.5 2 7.5 3 30 Bypass sanctioned under NHAI (DPR already submitted by consultant on 20.08.2018)

11 Damoh 0.5 6 10 0.5 1 7.5 4.5 30 Half of the Ring Road is already constructed in the form of Bypass,


Page 13

remaining half could be developed. Damoh is under consideration by PWD for development of remaining RR

12 Mandsaur 0.5 6 10 0.5 1 7.5 4.5 30 No proposal by NHAI/PWD

13 Datia 0.5 4 10 0.5 1 10.0 3 29 No proposal by NHAI/PWD

14 Chhatarpur 0.5 10 10 0.5 0 5 3 29 NHAI is already constructing 3 bypasses, which will make a ring road for Chhatarpur town.

15 Chhindwara 1 8 10 0.5 3 2.5 1.5 27 No proposal by NHAI/PWD

16 Bhind 1 6 10 0.5 0 2.5 3 23 Bypass sanctioned under NHAI (DPR already submitted by consultant on 20.08.2018).

17 Neemuch 0.5 4 10 1 1 5 1.5 23 No proposal by NHAI/PWD

18 Seoni 0.5 4 10 0.5 0 5 1.5 22 No proposal by NHAI/PWD

19 Ujjain 2 6 0 2 3 5 1.5 20 No proposal by NHAI/PWD

20 Nagda 0.5 2 0 0.5 3 10 3 19 No proposal by NHAI/PWD

21 Khargone 0.5 6 0 0.5 2 5 1.5 16 No proposal by NHAI/PWD

22 Burhanpur 1 2 0 1 1 7.5 1.5 14 No proposal by NHAI/PWD

23 Khandwa 1 4 0 0.5 1 2.5 1.5 11 No proposal by NHAI/PWD


Page 14

CHAPTER 3. TOWNWISE ANALYSIS OF WEIGHTED SCORE

Dewas- Dewas is the headquarter town of Dewas district with a population of 2,89,550 according to Census 2011.

It is an industrialized city and houses a government bank note press. Dewas is situated on NH-86 connecting

Indore and Bhopal.

Remarks - Dewas scored highest weighted score (42/60) for Ring Road development in the study but was not

considered in the final list as NHAI has already initiated the project development work. It was informed during the

site visit that the construction work of the remaining bypass, which is just parallel to the missing part of proposed

Ring Road, is already in progress.

Figure 4: Proposed landuse of Dewas as per Dewas

Development Plan 2031

TOWN NOT CONSIDERED

Parameter wise weighted score of Dewas

S. No. Parameters Value Weighted Score

1 Projected Population 2019 3,73,519 1.5

2 Population Growth Rate 29% 8

3 NH Availability Yes 10

4 Average Number of Vehicle Registered Annually

5110 1.5

5 Number of medium & large scale industries

48 5

6 Length Ring Road/Bypass left to be constructed

6.8 Km 10

7 Percentage of Bypass Ring Road left to be constructed

25.56 6

Total Weighted Score 42

Figure 5: Satellite image of Dewas showing status of Ring Road/Bypass Road

Yet to be developed bypass/ring road (6.8 Km)

Existing bypass/ring road (19.8 Km)


Page 15

Jabalpur- Jabalpur is the headquarter town of Jabalpur district with a population of 10,81,677 as per Census 2011. According to the 2011 census, it is the third-largest urban agglomeration in Madhya Pradesh. The headquarters of the West Central Railway, Madhya Pradesh Electricity Board, Tropical Forest Research Institute (TFRI), and Army headquarters of five states, viz. Madhya Pradesh, Chhattisgarh , Orissa, Bihar and Jharkhand, are all located in Jabalpur.

Remarks - Jabalpur scored second highest weighted score (41/60) for Ring Road development in the study but

was not considered in the study as NHAI has already invited bids for preparation of DPR & Feasibility Report for

Jabalpur Ring Road of about 112 Km length.

Figure 6: Proposed landuse of Jabalpur as per

Jabalpur Development Plan 2031 TOWN NOT CONSIDERED

Parameter wise weighted score of Jabalpur

S. No.

Parameters Value Weighted Score


2 Population Growth Rate 18.2% 4



29180 2.5


17 4


9 Km 10


19.46 7.5


Figure 7: Satellite image of Jabalpur showing status of Ring Road/Bypass Road

Yet to be developed bypass/ring road (9 Km)



Page 16

Rewa- Rewa is the headquarter town of Rewa district with a population of 2,35,654 as per Census 2011. The

Rewa Ultra Mega Solar Power Project is one of the largest single-site solar power plants in India and the world.

Remarks – Rewa received a weighted score of (40/60) and may be considered for Ring Road development based

on the study parameters. As informed by NHAI and MPPWD office, presently, there is no proposal for construction

of Ring Road.

Figure 8: Proposed landuse of Rewa as per Development

Plan 2031

Parameter wise weighted score of Rewa

TOWN MAY BE CONSIDERED

S. No.

Parameters Value Weighted Score

1 Projected Population 2019

3,01,617 1.5




3025 1


6 2


6.8 Km 10


19.4 7.5


Figure 9: Satellite image of Rewa showing status of Ring Road/Bypass Road




Page 17

Itarsi- Itarsi is the headquarter town of Itarsi district with a population of 99,330 as per Census 2011.Itarsi is a

key hub for agricultural goods and is the biggest railway junction in Madhya Pradesh. Rail services from all 4

major metropolitan cities of India namely Mumbai to Calcutta and Delhi to Chennai pass through Itarsi. Itarsi has

large number of agro-based industries and warehouses.

Remarks – Itarsi has a high weighted score of 36/60. 80% of the proposed Ring Road is already under

construction and additionally a combined bypass for Itarsi & Hoshangabad is under construction, which is 33.5

Km length. Hence, the town may be not be considered as already the project is under consideration by NHAI.

Figure 10: Proposed landuse of Itarsi as per Itarsi


Parameter wise weighted score of Itarsi

S.No. Parameters Value Weighted Score



3 NH Availability 5 Km 10


> 3000 0.5


Data not available

3* assumed


4.9 Km 12.5


20.00% 7.5

Total Weighted Score 36 TOWN NOT CONSIDERED

Figure 11: Satellite image of Itarsi showing status of Ring Road/Bypass Road

Yet to be developed bypass/ring road (4.9 km)

Existing bypass/ring road (19.6 km)


Page 18

Guna: Guna is the headquarter town of Guna district with a population of 1,80,935 as per Census 2011. It is strategically located on National Highway 3. It is a famous agricultural town. Though, Guna is very small town it is still an important industrial center.

Remarks - Guna has weighted score of (36/60) and could be considered for Ring Road development. Presently,

there is no proposal by NHAI/PWD for road construction of proposed part of Ring Road.

Figure 12: Proposed landuse for Guna as per Guna


Parameter wise weighted score of Guna

S.No. Parameter Value Weighted Score

1 Population 2019 2,35,258 1

2 Population Growth Rate

30.2% 10


4

Average annual vehicle registration

2600 0.5

5

Number of medium & large scale industries

6 2

6

Length of RR/bypass yet to be constructed

12.5 Km 7.5

7

% of RR/bypass yet to be constructed

51.65 4.5

Total Weighted Score

36


Figure 13: Satellite image of Guna showing status of Ring Road/Bypass Road

Yet to be developed bypass/ring road (12.5 Km) Existing bypass/ring road (11.7 Km)


Page 19

Ratlam- Ratlam is the headquarter town of Ratlam district with a population of 2,64,914 as per Census 2011.

Ratlam is connected to Indore and Neemuch via National Highway 79. This four-lane highway, which runs from

Indore to Chittorgarh to join the Golden Quadrilateral. Ratlam Junction is a major junction on Delhi-Mumbai and

Ajmer-Khandwa Rail routes and rail division of Indian Railways on broad gauge lines on Western Railways Zone.

Ratlam junction is Divisional headquarters of Western Railway Zone. It has several industries, which manufacture

copper wire, plastic ropes, chemicals and artificial oxygen, among other products.

Remarks - Ratlam has high weighted score of 35/60 and could be considered for Ring Road development in the

study. Presently, there is no proposal by NHAI/PWD for road construction of proposed part of Ring Road.

Figure 14: Proposed landuse of Ratlam as per Ratlam


Parameter wise weighted score of Ratlam



3,17,920 1.5




5235 1.5


21 4


14.1 Km 7.5


55.08 4.5



Figure 15: Satellite image of Ratlam showing status of Ring Road/Bypass Road




Page 20

Sagar - Sagar is the headquarter town of Sagar district with a population of 3,70,296 as per Census 2011. It is

located along National Highway 44 and 146. It largely has agricultural based economy low industrial activities.

Remarks - Sagar has weighted score of 32/60. However, Sagar was not considered in the study as Sagar is

already selected under Bharatmala scheme of Government of India for development of Bypass.

Figure 16: : Proposed landuse of Sagar as per Sagar




3,23,976

1.5


18

4



3855

1


2

1


7.5 Km

10


40.54

4.5


32

Parameter wise weighted score of Sagar

TOWN NOT CONSIDERED

Figure 17: Satellite image of Sagar showing status of Ring Road/Bypass Road


Existing bypass/ring road (11 Km)


Page 21

Hoshangabad - Hoshangabad is the headquarter town of Hoshangabad district with a population of 1,17,988 as

per Census 2011. The economy largely depends on agriculture. Hoshangabad is one of the largest producer of

Soya Bean.

Remarks - Hoshangabad has weighted score of 30/60. Half of the proposed Ring Road/Bypass is already

developed but the town was not considered in the study as a combined bypass for Itarsi & Hoshangabad is already

under construction, which is 33.5 Km in length.

Figure 18: Proposed landuse of Hoshangabad as per

Hoshangabad Development Plan 2031

Parameter wise weighted score of Hoshangabad

TOWN NOT CONSIDERED



145220

0.5


23.08

6



2250

0.5


2

1


8.15 Km

10


45.53 4.5


33

Figure 19: Satellite image of Hoshangabad showing status of Ring Road/Bypass Road




Page 22

Singrauli- Singrauli is a city in Singrauli district with a population of 2,20,257 as per Census 2011. It is an

important industrial town of the state. All major companies operating in Singrauli belongs to Indian Energy

Industry. The operations of companies include mining of coal for power generation. In recent past, several private

companies have also joined the league of companies operating in Singrauli.

Major companies operating or coming up at Singrauli are NTPC Limited, Coal India Limited, Reliance Power

Limited, Essar Power Limited, DB Power Limited (1320 MW).

Remarks - Singrauli has weighted score of 32/60 and could be considered for Ring Road development as half of

the proposed Ring Road is already constructed and remaining half needs to be developed. Singrauli is under

consideration by PWD for development of remaining Ring Road.

Figure 20: Proposed landuse of Singrauli as per

Singrauli Development Plan 2031

Parameter wise weighted score of Singrauli




2,76,423 1




2290 0.5


2 1


19.7 Km 5


23.76 6


Figure 21: Satellite image of Singrauli showing status of Ring Road/Bypass Road




Page 23

Bhopal- Bhopal is the headquarter town of Bhopal district with a population of 17,98,218 as per Census 2011. It

is the capital city for the state. It is the 16th largest city in India. It has excellent road and railway connectivity with

other cities in the state. Being the capital city, it has many important offices. It is hub of business, education, and

health care services for many small towns in the state.

It has industrial giant like Bharat Heavy Electrical Limited along with many other small and medium industries.

Mandideep is an industrial suburb of Bhopal. It is located to the south of the city on the NH 12.

Remarks – Bhopal has weighted score of 31/60 but it was not considered for Ring Road development anticipating

very high cost of land acquisition.

Figure 22: Proposed landuse of Bhopal as per Bhopal


Parameter wise weighted score of Bhopal

TOWN NOT CONSIDERED



22,85,933 2.5


27.12% 8



79430 2.5


19 4


45 Km 2.5


90 1.5


31

Figure 23: Satellite image of Bhopal showing status of Ring Road/Bypass Road




Page 24

Morena – Morena is the headquarter town of Morena district with a population of 2,00,483 as per Census 2011.

It is connected by rail and National Highway 3 with Gwalior and Agra. It does not have significant industrial

activities.

Remark: Morena has a weighted score of 30/60 but NHAI has already sanctioned DPR for development of bypass

(DPR already submitted by consultant on 20.08.2018), so the town was not considered for Ring Road

development.

Figure 24: Proposed landuse of Morena as per Morena


Parameter wise weighted score of Morena



2,40,578 1


20.00% 10



2315 0.5


8 2


14.5 Km 7.5


69.21 3


30

TOWN NOT CONSIDERED

Figure 25: Satellite image of Morena showing status of Ring Road/Bypass Road




Page 25

Damoh – Damoh is the headquarter town of Damoh district with a population of 1,39,561 as per Census 2011.

The town does not have any significant medium or large scale industries but has number of small industries such

as weaving, dyeing and pottery making.

Remark: Damoh has weighted score of 30/60 and could be considered for Ring Road development as half of the

proposed Ring Road is already constructed in the form of Bypass and remaining half needs to be developed.

Damoh is under consideration by PWD for development of remaining part of Ring Road.

Figure 26: Proposed landuse of Damoh as per Damoh


Parameter wise weighted score of Damoh







1750 0.5


2 1


11 Km 7.5


42.55 4.5


Figure 27: Satellite image of Damoh showing status of Ring Road/Bypass Road




Page 26

Mandsaur – Mandsaur is the headquarter town of Mandsaur district with a population of 1,41,667 as per Census

2011. The ancient Pashupatinath temple is situated here. Mandsaur is situated on Ajmer-Lebad (Indore) NH-79

as well as Mhow-Neemuch SH-31 4 Lane road. It is industrially backward town.

Remark: Mandsaur has weighted score of 30/60 and could be considered for Ring Road development. Presently,

there is no proposal by NHAI/PWD for road construction of proposed part of Ring Road.

Figure 28: Proposed landuse of Mandsaur as per

Mandsaur Development Plan 2031

Parameter wise weighted score of Mandsaur



1,71,435 0.5




2520 0.5


5 1


13.6 Km 7.5


49.64 4.5



Figure 29: Satellite image of Mandsaur showing status of Ring Road/Bypass Road




Page 27

Datia- Datia is the headquarter town of Datia district with a population of 1,00,284 as per Census 2011. Datia is

best known for the Pitambara Peeth, a famous Shaktipitha located at the entrance of Datia. It is not agriculturally

or industrially rich town.

Remark: Datia has weighted score of 29/60. Presently, there is no proposal by NHAI/PWD for road construction

of proposed part of Ring Road.

Figure 30: Proposed landuse of Datia as per Datia


Parameter wise weighted score of Datia



1,19,338 0.5




1185 0.5


1 1


9 Km 10


77.92 3

Total Weighted Score 29 TOWN MAY BE CONSIDERED

Figure 31: Satellite image of Datia showing status of Ring Road/Bypass Road




Page 28

Chhatarpur- Chhatarpur is the headquarter town of Chhatarpur district with a population of 1,42,128 as per

Census 2011.The city is very strategically located at the intersection of two major National Highways, NH 86 and

NH 75.

Remarks - Chhatarpur has the weighted score of 29/60. NHAI is already constructing three bypasses, which will

make a ring road for the town.

Figure 32: Proposed landuse of Chhatarpur as per

Chhatarpur Development Plan 2031

Parameter wise weighted score of Chhatarpur




3 NH Availability 5 Km 10


1720 0.5


0 0


16.65 Km

5


61.67 3


Figure 33: Satellite image of Chhatarpur showing status of Ring Road/Bypass Road




Page 29

Chhindwara - Chhatarpur is the headquarter town of Chhindwara district with a population of 1,75,052 as per

Census 2011.The city is very strategically located at the intersection of two major National Highways NH 86 and

NH 75. Chhindwara is an industrial town, it is home to brands like Raymond’s and Hindustan Unilever. Apart from

this, Parasia area is known for its coalfields and majority of population in this region is associated with Western

Coalfields Limited for their employment.

Remarks – Chhindwara has weighted score of 27/60. Majority of the proposed Ring Road for the town as per

development plan 2031 needs to be developed.

Figure 34: Proposed landuse of Chhindwara as per

Chhindwara Development Plan 2031

Parameter wise weighted Score of Chhindwara

S.No Parameters Value Weighted Score


2,24,066 1




2875 0.5


10 3


27.14 Km

2.5


87.35 1.5


Figure 35: Satellite image of Chhindwara showing status of Ring Road/Bypass Road




Page 30

Vidisha – Vidisha is the headquarter town of Vidisha district with a population of 1,55,959 as per Census 2011.

It is located on National Highway 146. Vidisha is an agricultural trade centre.

Remarks - Vidisha has weighted score of 27/60. The case of Vidisha was not considered in the study as it is

already selected under Bharatmala scheme of Government of India for development of Bypass.

Figure 36: Proposed landuse of Vidisha as per Vidisha




180903

0.5


16

4



2130

0.5


2

1


11.75 Km

7.5


69.21

3


27

Parameter wise weighted score of Vidisha

TOWN NOT CONSIDERED

Figure 37: Satellite image of Vidisha showing status of Ring Road/Bypass Road




Page 31

Bhind- Bhind is the headquarter town of Bhind district with a population of 1,80,935 as per Census 2011. The

city is located near the important industrial town named Malanpur via NH 92.

Remarks - Bhind has weighted score of 23/60. The town was not considered in the study as it already has partial

Ring Road in the form of Bypass and remaining Bypass is also sanctioned under NHAI (DPR already submitted

by consultant on 20.08.2018).

Figure 38: Proposed landuse of Bhind as per

Bhind Development Plan 2031

Parameter wise weighted Score of Bhind S.No. Parameters Value Weighted

Score

1 Projected Population 2019 2,18,930 1




2015 0.5


0 0


22.25 Km 2.5


70.63 3


Figure 39: Satellite image of Bhind showing status of Ring Road/Bypass Road




Page 32

Neemuch- Neemuch is the headquarter town of Neemuch district with a population of 1,28,561 as per Census

2011. Neemuch is located along National Highway 79.

Remarks – Neemuch has weighted score of 23/60. Almost the entire Ring Road/Bypass proposed in development

plan 2031 needs to be developed and presently there is no such proposal by NHAI/PWD.

Figure 40: Proposed landuse of Neemuch as per

Neemuch Development Plan 2031

Parameter wise weighted score of Neemuch







3085 1


5 1


18.95 Km 5


86.93 1.5


Figure 41: Satellite image of Neemuch showing status of Ring Road/Bypass Road




Page 33

Seoni- Seoni is the headquarter town of Seoni district with a population of 1,02,343 as per Census 2011. It is

located along National Highway 44 (North–South corridor). It is not an industrial town, it act an entry point for

tourist visiting Pench National Park.

Remarks – Seoni has a low weighted score of 22/60. It has a fully developed Ring Road which is actually a

Bypass road but it is located away from the town. The proposed Ring Road for the town as per development plan

2031 needs to be developed.

Figure 42: Proposed landuse of Seoni as per Seoni


Parameter wise weighted score of Seoni






1120 0.5


NA -


16.55 Km

5


100 1.5


Figure 43: Satellite image of Seoni showing status of Ring Road/Bypass Road


Existing bypass/ring road


Page 34

Ujjain- Ujjain is the headquarter town of Ujjain district with a population of 5,15,215 as per Census 2011. It is the

fifth largest city in Madhya Pradesh. It is an important Hindu pilgrimage destination. Ujjian is not located on any

of the National Highway. The Government of Madhya Pradesh has allotted 1,200 acres for the development of

an industrial area on the Dewas-Ujjain Road near Narwar village.

Remarks – Ujjain has weighted score of 20/60. The entire Ring Road/Bypass proposed as per development plan

2031 lies undeveloped. Presently there is no proposal by NHAI/PWD for the development of Ring Road/Bypass

road.

Figure 44: Proposed landuse of Ujjain as per Ujjain


Parameter wise weighted score of Ujjain



6,41,442 2


24.5% 6

3 NH Availability No 0


10530 2


11 3


17.2 Km 5


100 1.5


20


Figure 45: : Satellite image of Ujjain showing status of Ring Road/Bypass Road




Page 35

Nagda - Nagda is an industrial town and became the district in March 2020. The town has a population of 1,00,039

as per Census 2011. Nagda is a major industrial town with a manufacturing unit of Viscose Fiber, a Thermal

Power Plant and a Chemical Plant. Nagda is not located on National Highway.

Remarks – Despite being an industrial town, Nagda has low weighted score of 22/60, as it is not located on any

National Highway. Presently, there is no proposal by NHAI/PWD for road construction of proposed part of Ring

Road.

Figure 46: Proposed landuse of Nagda as per

Nagda Development Plan 2031

Parameter wise weighted score of Nagda







< 3000 0.5


Data not available

3 (assumed)


8.5 Km 10


60.5 3


Figure 47: Satellite image of Nagda showing status of Ring Road/Bypass Road




Page 36

Khargone- Khargone is the headquarter town of Khargone district with a population of 1,16,150 as per Census

2011. Khargone is the famous agricultural mandi town of the region. It is one of biggest cotton producing districts

in India. Several industries are also now developing in the area.

Remarks – Khargone has weighted score of 16/60 since it is not located on any National Highway and the entire

Ring Road/Bypass road proposed as per development plan 2031 lies undeveloped.

Figure 48: Proposed landuse of Khargone as per Khargone


Parameter wise weighted score of Khargone



1,42,399 0.5


22.6% 6

3 NH Availability 0 0


1845 0.5


9 2


15.65 Km

5


100% 1.5


16

LOW WEIGHTED SCORE, TOWN NOT CONSIDERED

Figure 49: Satellite image of Khargone showing status of Ring Road/Bypass Road




Page 37

Burhanpur- Burhanpur is the headquarter town of Burhanpur district with a population of 2,10,886 as per Census

2011. Burhanpur is known for its textile industry. It is not located on any National Highway but is well connected

by rail and road with other cities in the state.

Remarks – Burhanpur has weighted score of 14/60 since it is not located on any National Highway and the entire

Ring Road/Bypass road proposed as per development plan 2031 lies undeveloped. There is no proposal by

NHAI/PWD for development of Ring Road/Bypass road.

Figure 50: Proposed landuse of Burhanpur as per Burhanpur


Parameter wise weighted score of Burhanpur

S.No. Parameter Value Weighted Score


2,33,417 1


10.68% 2



3025 1


4 1


11.65 Km

7.5


100 1.5


14

LOW WEIGHTED SCORE, TOWN NOT CONSIDERED

Figure 51: Satellite image of Burhanpur showing status of Ring Road/Bypass Road




Page 38

Khandwa- Khandwa is the headquarter town of Khandwa district with a population of 2,00,738 as per Census

2011. Khandwa is a major railway junction; the Malwa line connecting Indore with the Deccan meets the main

east–west line from Mumbai to Kolkata. It is not located on any National Highway and does not have any

significant industrial activity.

Remarks - Khandwa has weighted score of 11/60 since it is not located on any National Highway and the entire

Ring Road/Bypass road proposed as per development plan 2031 lies undeveloped. There is no proposal by

NHAI/PWD for development of Ring Road/Bypass road.

Figure 52: Proposed landuse of Khandwa as per Khandwa


Parameter wise weighted score of Khandwa S.No. Parameter Value Weighted

Score


2,37,874 1


18.5 4



2850 0.5


1 1


28.64 Km

2.5


100 1.5

Total Weighted Score 11 LOW WEIGHTED SCORE, TOWN NOT CONSIDERED

Figure 53: Satellite image of Khandwa showing status of Ring Road/Bypass Road




Page 39

Sehore- Sehore is the headquarter town of Sehore district with a population of 1,80,935 as per Census 2011. It

is located on the Bhopal-Indore highway, 38 km away from state capital Bhopal. The proposed Ring Road/Bypass

for the town as per Sehore Development Plan 2031 is already developed. So, the town was considered as

’Eliminated, due to already constructed Ring Road/Bypass’.

Figure 54: Proposed landuse of Sehore as per Sehore Development Plan 2031

Figure 55: Satellite image of Sehore showing status of Ring Road/Bypass Road

Yet to be developed bypass/ring road

Existing bypass/ring road (17 km)


Page 40

Gwalior- Gwalior is the headquarter town of Gwalior district with a population of 10,54,420 as per Census

2011. Gwalior is fairly well connected to other parts of Madhya Pradesh and India by national and state highways.

The proposed North-South Corridor of the Golden Quadrilateral Highway project passes through the city. The

Agra-Bombay National-Highway (NH3) passes through Gwalior, connecting it to Shivpuri on one end and Agra

on the other. Gwalior is surrounded by three industrial areas – Sitholi, Banmore and Malanpur. All three of these

sectors are on NH 75, NH-3 and NH 92 respectively, with Malanpur being the largest.

Remarks - The proposed Ring Road/Bypass for the town as per Gwalior Development Plan 2031 is already

developed. So, the town was considered as ’Eliminated, due to already constructed Ring Road/Bypass’.

Figure 56: Proposed landuse of Gwalior as per Gwalior Development Plan 2031

Figure 57: Satellite image of Gwalior showing status of Ring Road/Bypass Road




Page 41

Betul- Betul is the headquarter town of Betul district with a population of 1,03,330 as per Census 2011. Betul is

serviced by National Highway 46 and National Highway 47, also connecting it with Bhopal and Nagpur.

Remarks - The proposed Ring Road/Bypass for the town as per Betul Development Plan 2031 is already


Figure 59: Satellite image of Betul showing status of Ring Road/Bypass Road



Figure 58: Proposed landuse of Betul as per Betul Development Plan 2031

https://en.wikipedia.org/wiki/Bhopal


Page 42

Katni- Katni is the headquarter town of Katni district with a population of 2,21,883 as per Census 2011. Katni is

an industrial town located along NH-78.

Remarks - The proposed Ring Road/Bypass for the town as per Katni Development Plan 2031 is already


Figure 60: Proposed landuse of Katni as per Katni Development Plan 2031

Figure 61: Satellite image of Katni showing status of Ring Road/Bypass Road




Page 43

Satna- Satna is the headquarter town of Satna district with a population of 2,89,977 as per Census 2011. It is

located along National Highway 75. Satna is in the limestone belts of India. As a result, it contributes around 8%–

9% of India's total cement production. There is an abundance of dolomite and limestone in the area and the city

has many cement factories producing and exporting cement to other parts of the country.

Remarks - The proposed Ring Road/Bypass for the town as per Satna Development Plan 2031 is already

developed with slight change in alignment. So, the town was considered as ’Eliminated, due to already

constructed Ring Road/Bypass’.

Figure 62: Proposed landuse of Satna as per Satna Development Plan 2031

Figure 63: Satellite image of Satna showing status of Ring Road/Bypass Road




Page 44

CHAPTER 4. FINANCIAL PLANNING

4.1. INTRODUCTION

The study explored the possibility of adopting self-financing schemes and financial models to support in

development of ring road and bypasses in selected cities/towns in Madhya Pradesh. The objective of the

government was to adopt models, which uses the available land bank without putting major financial implication

on the government.

4.2. CURRENT SCENARIO

Physical Roads Infrastructure in Madhya Pradesh

The State has national highways of 8,772 km and state highways of 11,389 km as of March 2019.

For the construction of roads through M.P. Road Development Corporation, allocation of US$ 42.92

million has been proposed by the state Government in State Budget 2019-20.

As per State Budget 2019-20, provision of US$ 200 million under Mukhyamantri Gram Sadak Yojana

and that of US$ 28.62 million for State Rural Road Connectivity Scheme, have been made.

Under State Budget 2019-20, Government has allocated INR 2,500 Crore (US$ 357.70 million) for

Pradhan Mantri Gram Sadak Yojana.

Road type Road length (kms)

National highways 8,772

State highways 11,389

Major district roads 22,129

Village roads 23,395

Road length 64,719

Figure 64: Figure showing road construction under PMGSY (in Km)

The state boasts a wide road network of 64,719 kms and has a consistent construction of approximately 5000

kms per year under PMGSY.

5222.45

5081.97

4543.23

5180.92

3006.27

0 1000 2000 3000 4000 5000 6000

2017-18

2016-17

2015-16

2014-15

2013-14


Page 45

4.3. FUTURE OUTLOOK

To further the development of Madhya Pradesh’s economy and make it an economic powerhouse due to its

strategic central location in India, Madhya Pradesh Public Works Department [MPPWD] intend to develop new

Ring roads or bypass in select cities/towns of Madhya Pradesh.

Developing Ring Road and its Challenges

Despite a well laid down legislation for land acquisition, land assembly, R&R policy for determining benefits,

development of ring road projects is often faced with difficulty in project execution on time and within the estimated

costs.

For developing a ring road, multiple stretches of road are required to be acquired. Lack of systematic approach

to acquisition to take place at once for various stretches is a major challenge. The fragmented nature of land

acquisition for ring road raises the following issues:

Legal Issues such as title disputes, share-farming, legal heir, etc. and wrangles led to lack of progress

in land acquisition in majority of areas.

Inefficient compensation determination and its release to affected parties created future complications.

Additionally, change of alignment of ring road several times makes the whole process messy not only to

public agencies but even for public.

To achieve the above vision of the state government, it is imperative to use the available land optimally and extract

additional value from the existing available land pool (developed or undeveloped). However, before discussing

possible ways of intervention, it is useful to note some characteristics of the land both urban and in rural setting.

4.4. LAND ASSEMBLY AND FUNDING TECHNIQUES: AN OVERVIEW

Municipalities play a critical role in planning and investing in urban infrastructure. They assist the state government

in selection of infrastructure projects to be executed at municipality level. Previously, the government and

municipality have used traditional land acquisition techniques for urban development. Off late, due to factors like

limited availability of land, soring land prices due to speculation and hoarding, delay in land acquisition, delay in

environmental and other clearances, government has started

Challenges with Land Assembly Techniques:

Private property owners may be unwilling/ uninterested to sell their land due to lack of understanding, monetary

or non-monetary reasons.

Funding Land Assembly gets challenging because of long term gestation period and lack of demonstrable short-

term revenue stream

Soring land prices due to speculation and hoarding improper land records and imperfect land information system

create the problem of identification.

Inflexible zoning / regulatory environment such as limited time period to get the site assembled, entitled, zoned,

platted and approved

Public opposition, which gains strength in the event of an organized resistance.

Problems like escalation of land acquisition cost, particularly interest burden, due to delay in settlement

Despite the above-mentioned challenges, modern land assembly techniques score brownie points over the

traditional land acquisition method. Due to financial unfeasibility of developmental projects, governments and

municipalities are forced to think of alternative ways of land assembly, which helps to maximize the usage of

government land for developmental purposes.


Page 46

4.5. INNOVATIVE LAND ASSEMBLY TECHNIQUES

Traditional land value capture (LVC) mechanisms, such as Land Readjustment (LR) and Transfer of Development

Rights (TDR) are used to manage urban growth in several countries with different resources, technical capacities

and governance systems. Often, they can be complex to design and implement especially where land

management capacity is poor. To effectively use LR and TDR in implementing land use plans for Disaster Risk

Management (DRM), local governments must improve existing land management capacity by: i) combining LR

and TDR with supporting municipal tools in a `basket of tools’, ii) strengthening municipal capacity in land

administration and work with real estate markets, and iii) supporting community-based organizations.

Basket of Tools

LR and TDR are not `silver bullets for the challenges in public finance and land protection in DRM programs.

Municipal tools can sometimes work at cross-purposes to LR and TDR mechanisms. Local governments must

identify tools that will complement LR and TDR such as, integrating with the master plan and supporting land

management tools, enabling legislation and institutional coordination, and adopt risk resilient land use and

building regulations.

1. Integrating with the Master Plan

LR and TDR are not stand-alone tools but complement other land management tools, such as, land register/

cadaster, land use planning, land and property valuation and taxation. They must be incorporated with city master

plan (as in Brazil, Japan, and the US) for hazard zoning, density management and housing supply (including

rental) and environmental protection plans. TDR programs must designate clear sending areas and receiving

areas that have adequate infrastructure. LR and TDR are opportunities to create compact, dense, well-serviced

neighborhoods and increase overall supply of affordable housing in the city while avoiding development in

hazardous sites. Wipeouts due to hazard buffer zones can be managed by designating no-build zones for eco-

system services for hazard mitigation and amenity values as in Curitiba. In the US, local governments facilitate

TDR to develop greenways. Restoration, rehabilitation and management of mangroves along Vietnam’s coast

reduced substantial disaster risks and provided additional income to coastal communities through aquaculture

products etc. Where local governments lack the capacity to execute large-scale master/ disaster resilience plans,

LR projects can be implemented in an integrated orderly sequence according to the master plan and at a

manageable scale. A TDR program is most effective when used in conjunction with other land management tools

such as zoning, purchase of development rights, land acquisition and development impact fees, land register/

cadaster, property valuation and taxation. Since gentrification due to increased property taxes after

redevelopment is possible, property tax holiday as in Bhuj and Mumbai (India) can ease the impact of higher fees.

2. Enabling Legislation & Institutional Coordination

LVC mechanisms depend on land markets and land markets are not regulated in many countries by appropriate

legislation. LVC works best when there is a strong legal framework. Fragmented, inadequate and complex laws

increase project costs. Instituting legislation that can enable local governments to use LVC mechanisms for quick

recovery after a disaster is paramount. Supporting legislation must enable planning at local level, unlike in India

in the past, where state mandates suppressed local planning possibilities for revising development regulations.

Selective use of eminent domain has worked well to avoid holdouts, as in Kobe and Bhuj. Implementing LR and

TDR can be time consuming and complicated and poor institutional coordination at different levels can delay or

stall LVC projects. Approval procedures for LR and TDR project approvals must be streamlined. In locations

where LR and TDR are planned for increased density, coordination with sector agencies is required to provide

adequate transportation networks, water supply and sewage and other amenities. Where TDR is used to

implement hazard buffer zones extending over several municipalities, inter-jurisdictional cooperation must be

strengthened.

3. Risk resilient land use and building regulations

Disaster reconstruction projects often overlook existing risks. LVC projects are opportunities to review land use

and building regulations and demarcate hazardous pockets, reserve land for emergency shelters and operations

or open spaces for DRR related ecosystem services. In Istanbul, Turkey, LR has been used to provide for public


Page 47

squares, parks, playground, green areas, police/ fire stations and hospitals. LR projects must incorporate

rebuilding using hazard resistant building codes and materials.

4.5.1. Land Readjustment

Land Readjustment (or land pooling / sharing) works on the principle that potential increase in land value after

development will provide incentive to landowners to contribute and pool land for public amenities. LR has been

applied globally to create serviced plots in the periphery, optimize land use through densification, acquire land for

infrastructure projects, regularize tenure, slum upgrading and inner city revitalization apart from post disaster

reconstruction. In an LR project, a portion of land is deducted from all landowners to provide a) amenities, and b)

market sale of surplus plots to recover part or all of development costs. Neighborhood layout is rationalized to

carve space for public amenities such as roads, schools, hospitals and open spaces. Plots are reshaped and

resized to accommodate existing landowners who receive smaller but regular, serviced plots that are equivalent

or greater than the former value. Additional plots for renters and informal residents may be provided. Land use

may be optimized for densification and mixed use. LR projects rely on voluntary or mandatory community

cooperation. LR is a useful tool in post-disaster reconstruction to `build back better’ on safe pockets with hazard-

resilient building regulations. The Earthquakes and Mega Cities Initiative (EMI) promotes LR as a tool to

incorporate DRM in urban development.

Key benefits of LR projects:

continued land ownership

recognition of different land tenure arrangements

stronger consensus and cooperation amongst residents, community organizations, private developers

and the government

bargaining power offered to low-income residents through community consensus prior to project

approval, and

increased municipal revenues through property taxes from serviced land

Key challenges of LR projects:

A number of preconditions have to be met such as

landowners must believe that final profits will justify project and value improvements in neighbourhood

amenities and public infrastructure

land ownership is not scattered, and affected landowners want to stay in the neighbourhood

destruction allows for readjusted plot boundaries and residents are equally impacted and willing to

cooperate; where some houses are not damaged, individuals are likely to not want to lose some of their land for

readjustment project

technical skill is available for designing project incentives

ownership records (cadasters) are updated and reliable, and

potential disputes can be resolved through agreement or legislation

Implementation of LR in India

Gujarat (India)

Locally called Town Planning Schemes (TPS), LR is used as a mechanism for land assembly and plot adjustments

in about 1/3rd of urban projects (Ahmedabad ring road, public spaces in unauthorized and peri-urban

developments) in Gujarat state. LR has been used for rebuilding severely affected urban centers after the 2001

earthquake.

Project Design and Implementation

TPS projects are voluntary and must conform to the master plan. Legislation was established in Maharashtra and

Gujarat states in 1915. Community engagement is not effective. TPS is an elaborate multi-stakeholder exercise


Page 48

with legislative to technical departments involving more than 30 steps. Landowners transfer up to 40% of their

land to the government in return for serviced plots. Only registered landowners are allowed to participate; renters

and informal residents are excluded. Landowners can either build new homes or sell the sites. The government

builds roads and public facilities and reserves a portion of land for sale by auction to recover infrastructure costs.

The process is slow as local governments have no authority to sanction plans, manage land auctions or revise

land use rules and regulations and state government approvals are required.

Bhuj Land Readjustment Project

Objectives: Bhuj town endured severe damages during the 2001 earthquake. In the densely populated inner city,

buildings collapsed on narrow streets/ cul-de-sacs and hindered rescue efforts. TPS was undertaken in the inner

city as part of comprehensive citywide planning initiatives that included significant investments in social amenities

at the periphery and trunk infrastructure to three relocation sites

Actions: TPS was used in eight inner-city sites to optimize density, control non-conforming land uses, ensure

minimum lot size and plot access to roads and basic infrastructure in the inner city. Residents had the option to

relocate voluntarily or participate in the TPS. Many households preferred to move out of the congested walled city

to the well-serviced and well-connected relocation sites in the periphery and the overall number of plots in the TP

schemes reduced by 20%. Voluntary relocation reduced resistance to TPS in the inner city. Neighborhood

committees were formed for micro planning tasks. Eminent domain was used for compulsory surrender of plots

and houses that were either severely damaged or obstructed the TPS layout. Plot access was ensured by

widening streets where buildings had collapsed while maintaining the original street pattern and avoid disturbing

built properties. Wide loop roads connected the walled city to the rest of the urban area and amenities38.

Preparing the new layout was challenging since base maps were lacking, no accurate data was available for

underground utilities and it was difficult to work around standing structures. Absence of updated property records

caused delays in plot transfers. TPS was sensitive to very small plot owners. There were no deductions for plots

< 30sq.m. while plots > 300 sq. had to contribute 35%. Further, to ease the burden on low-income residents, a 5-

year moratorium on property tax was declared. Land use regulations and development controls were revised to

allow uniform height across all wards for seismic resilience.

Bhuj Inner-city Land Readjustment Project

Narrow streets and cul-de-sacs before disaster Wider and continuous streets after LR

Results: The Bhuj TPS project decongested parts of the walled city by ensuing minimum lot sizes and plot

access; but it did not minimize relocation. Although the process was expedited to be completed in half the time

during post-disaster reconstruction, compared to a convention TPS in Gujarat, it cost the government almost a

third more. The significant expansion of serviced land in the periphery along with LR in the walled city appears to

have moderated real estate price increase in the periphery; and the overall supply of safe, serviced and affordable

land sites for the urban poor increased in Bhuj.


Page 49

Lessons from Gujarat Land Readjustment Projects: The projects have been successful given their:

integration with the master plan,

selective use of eminent domain ensures project implementation, and

combination with other LVC tools, such as tax holiday in Bhuj.

Drawbacks include:

Focus on landowners only - renters and informal residents are excluded

Weak community engagement, and

Delays caused by bureaucratic state government procedures for local development.

Figure 65: Figure showing distribution of land post Land Pooling

The method is based on the reassembling of land parcels by a new layout plan together with the development of

new urban infrastructure. Land contribution by each landowner is essential to utilize for the site of newly

established infrastructures, and to cover the project cost fully or partially.

Under land pooling, public infrastructure is provided at a shared cost to the landowners and the public authority.

In the urban context, the process enables the urban authorities to develop new areas by financing the

infrastructure through the increase in land values. Once infrastructure is in place, the land value rises. The

landowners receive a property of at least the same value near their original property after the development of the

area. Thus, the cost recovery mechanism coupled with the absence of purchasing land outright eliminates the

need of the government in making a large up-front investment in infrastructure development. The strategy on the

other hand is to shift the burden to the landowners by inviting them to contribute their land in exchange for a

participating interest in the value created by the development project. The landowners benefit by remaining in the

same area, preventing significant social and emotional issues associated with displacement and relocation. The

public authorities on the other hand are much benefited, as they do not require substantial upfront capital in paying

compensation to the existing landowners.


Page 50

Figure 66: An illustration of segmentation of land under Land Pooling

4.5.2. Transfer of Development Rights

What is a Transfer Development Rights?

TDR (or density transfers / air rights) works on the principle that absolute property rights can be considered as a

`bundle’ of different rights, such as the right to build, to mine, to farm, among others and that these `partial’ rights

are available for market transactions. The concept of severance of rights is used in several countries for programs:

farmland and environmental conservation, urban growth management, transit-oriented development (TOD),

heritage preservation and social housing. The owner of a property with considerable public amenity

(infrastructure, low-income housing etc.) value can trade `development rights from a designated `sending zone’

to a buyer for use in a designated `receiving zone’ resulting in a `transfer of development rights’. The landowner

in the sending zone loses his right to develop but is compensated for the development potential of his land at

market value. The buyer, usually a private developer, is given density bonuses to provide public amenities.

Developers may also trade development rights in the open market. TDR balances `wipeouts for property owners

in preservation areas where land values drop and windfalls for property owners in growth areas where land values

increase. The design of a TDR program can be complex and is based on a city’s comprehensive plan and real

estate market. TDR programs can be mandated or voluntary. Although municipal TDR programs are common,

TDR programs are also planned to guide regional development.

How does Transfer of Development Rights Work

CREATION

There are four elements in successful TDR programs:

1. Designate a preservation zone (Sending Area): Identify target areas that the community desires to protect (i.e. contiguous blocks of productive farmland or sensitive natural resources).

2. Designate an urban growth zone (Receiving Area): Identify target areas in the community where development is desirable (i.e. near businesses, existing urban services, along a transportation corridor).

3. Determine a market for development rights: TDRs only work when a demand exists for development rights. It is important that long-term growth expectations exist for receiving areas to assure landowners in the sending areas that their development rights have value. Adequate incentives must be provided to landowners before they will sell development rights.

4. Define TDR Procedures and Transfer Ratio: TDR procedures include establishing what will be used to determine the number of development credits received (i.e. acres protected, amount of prime agricultural soil, dollar value of the land) and determining how many additional units a developer will receive per credit. Guidelines should also be set up to aid staff in their role as liaison between landowners and developers.

ADMINISTRATION

Establishing a TDR bank, run by a local government, can help the program run smoothly. Instead of developers,

purchasing development rights directly from landowners, the local government acts as a middleman to buy and


Page 51

then sell available development rights. A TDR bank makes the program more predictable and manageable for

landowners and developers.

A well-trained staff person is needed to manage development right transfers either by running the TDR bank, or

by negotiating the transactions between landowners and developers. Staff will need to monitor the market for

development rights and recommend adjustments to their value as needed. Staff also plays a large role in

educating local officials, landowners, and developers about the program. Staff must ensure that the municipality’s

capital improvement program and ordinances continue to support the program as development transfers occur.

Source: Huron River Watershed Council New York City Department of City Planning

Key benefits of TDR projects

Economic equity for the landowners;

Preserved amenity (environmental/ cultural) value of land,

New development guided into designated zones, and

Government can plan for public amenities at minimal cost without land acquisition.

Key challenges for TDR projects

Information on TDR sellers, buyers and prices is not available, and landowners find it difficult to find

buyers (if the prices fluctuate a lot, landowners may speculate and not sell TDRs),

Land market values are high enough for developers to make enough profit from the additional

development they can sell, even after paying for the services the city wants them to provide,

Large public subsidies reduce land market price differentials essential to make TDR viable,

Restricted technical skills available to design the program incentives;

Limited demand for additional density in receiving areas, and

Complex program design and approval procedures.

Report Card: Transfer of Development Rights

Cost Money or staff resources required to implement tool.

C A TDR program will likely require dedicated staff to set up and manage the program. Start-up money

will be needed if a TDR Bank is created. Money to purchase development rights comes from

developers rather than tax money.

Public Acceptance The public’s positive or negative perception of the tool.

B The public likes the fact that money to purchase development rights comes from the private sector,

not taxpayers. Property owners in the receiving area however, may have a problem with the

increased density if existing utilities cannot support it and building design isn‛t accepted.

Political

Acceptance

Politician’s willingness to implement tool.


Page 52

C Local officials approve of the market financing the program. Intergovernmental agreements that

transfer development from one municipality to another must contend with tax-base transfer issues.

Determining appropriate standards and prices for development credits may be difficult.

Equity Fairness to stakeholders regarding who incurs costs and consequences.

A Rural landowners voluntarily sell their development rights and are compensated for them.

Developers get density bonuses for purchasing development rights, so costs are not handed down

to homebuyers.

Administration Level of complexity to manage, maintain, enforce, and monitor the tool.

D TDR is one of the most difficult land management techniques to establish. Administration of TDR

programs is complex and costly and maintaining a market may be difficult.

Scale The geographic scale at which tool is best implemented.

Local to Regional The program can be run on any scale but works best over an area that includes both rural and urban

areas. The scale will also be dependent on the ability of the managing agency or organization to

create a successful program with enough credits to buy and corresponding need for development.

GRADING EXPLANATION

A – Excellent; B - Above Average; C – Average; D - Below Average; F – Failing

Comments and grades were derived from a Delphi process conducted with practicing planners and educators in 2005

TDR in India

TDR has been used in Mumbai since 1991 to supplement finance for infrastructure, slum redevelopment and

heritage preservation. Following the Mumbai program, several Indian cities are adopting TDR, especially for

transportation and slum redevelopment, and to manage disaster risks. Zoning regulations in Mangalore

incorporate TDR to appropriately compensate for private property acquired as part of the GOI-UNDP Urban

Earthquake Vulnerability Reduction Project, a sub-component of the Disaster Risk Management (DRM (program

in 38 cities located in Seismic Zones III, IV and V with a population of half million and above.

Program Design and Implementation

The program, for slum redevelopment, serves as a model in India. It has one coordinating planning agency and

multiple executing agencies that include private developers, public bodies, NGOs and cooperative housing

societies of slum dwellers. The program designates the relatively dense Mumbai CBD (island city) as a sending

area. All TDR generated from plots within the island city are to be used in the suburbs. Suburbs can serve as

sending and receiving areas. TDR generated in the suburbs can be used in the same ward or in another ward

north of the plot. Incentive Floor Space Index (FSI) is offered to cover costs of construction costs and private land,

transit camps, offsite infrastructure, maintenance corpus fund, servicing of loans, and for adequate developer

profits. Incentive FSI varies with land value (lower in high-value island city and higher in the suburbs) and can be

used in the same plot or as TDR in receiving sites, or mortgaged. However, uncontrolled generation of TDR from

the three programs has created a glut in the TDR market several times thereby reducing TDR market price and

making TDR projects financially not viable.

Community organizations play a crucial role in explaining the benefits of the TDR program. Consent of 70% of

slum residents is mandatory. The program is sensitive to the needs of informal residents, renters and particularly

vulnerable sections within the urban poor. All pavement and slum dwellers who establish that their names were

on the electoral roll before a cut-off date are eligible. Women are organized into cooperative self-help groups to

access funds from credit institutions. Older and special needs residents are allotted ground floor units.

Cooperatives of slum dwellers receive leasehold title to the land. Municipal taxes are pegged at 20% to reduce

burden on slum families with a provision to increase them gradually over time. Apart from slum redevelopment,

the TDR program was used to minimize displacement while clearing land of slums for the Mumbai Urban

Transportation Project.

Mumbai TDR in the Coastal Regulation Zone

Objective: The rapidly urbanizing coastline of Mumbai has high-value real estate and large number of slums

located in flood-prone stretches. The 1991 Coastal Regulation Zone (CRZ) under notification by the Ministry of

Environment and Forests controls development along the coast. The CRZ restricts all developments within 500


Page 53

meters of the high tide line. Being flood-prone, the CRZ, especially CRZ II is home to many slum dwellers who

cannot afford safer housing. The Slum TDR was modified to prevent additional development in the CRZ.

Actions: Although the government offers incentive FSI to promote slum redevelopment in less expensive areas,

program imposes restrictions on incentive FSI in the CRZ. TDR is not allowed within and from this zone, making

slum redevelopment with TDR financially not viable. Public share of 51% has been permitted to make it attractive

for private developers, but incentive details are unclear. Government committees have argued for permitting

increase in FSI for slum redevelopment within the CRZ, and to reduce the CRZ in zones with high population

density and built up areas. Revisions to the CRZ have reduced the no-build zone and freed up several slum

clusters for redevelopment.

Results: The state government lacks the funding to enforce the federal government CRZ notification. Violations

are rampant: Navi Mumbai satellite town that was planned to decongest the city was constructed by destroying

mangroves directly in violation of the CRZ. TDR is a tool that has been successful in preserving environmentally

sensitive areas in many countries. In Mumbai, even though it has been used to clear large parcels of land required

for expansion of road and suburban railway network, and metro, monorail and river development projects, its

potential to enforce the CRZ regulations and provide financial incentives to direct development away and relocate

slums from the CRZ has not been explored. Unfortunately, environmentalists consider Slum TDR in the CRZ as

environmentally irresponsible while proponents of slum redevelopment consider it socially irresponsible.

Lessons from Mumbai (India) TDR Program

The Mumbai TDR has been successful as it:

Increased the overall housing stock through incentive FSI in high value lands, even slums,

Legitimized the residency rights of large numbers of pavement and slum dwellers,

Combines tax rebates and deferment along with TDR to make the program more accessible to the urban

poor, and

Allows TDR certificates to be mortgaged by developers, it provides much needed development finance

for private developers who are known to otherwise mix funds from one project to another and delay

deliveries.

TDR in Madhya Pradesh

The Madhya Pradesh government has notified in Madhya Pradesh Gazette, Madhya Pradesh Transferable

Development Rights Rules, 2018 on 20th July 2018. The rules specify the following in detail:

Definition of generating, receiving and influencing area and TDRs.

The formula for determining the amount at which Additional Buildable Area can be purchased from the

implementing agency in the influencing area. The formula goes as:

Amount of Additional Buildable Area to be

purchased for a plot in the Influencing Area (in Rs.)

Collector guideline rate * Buildable Area * 0.5

The formula for calculation of value of entitlement for any area under acquisition for a Public Project for

which the owner will be entitled for TDR is as follows:

Value of Transfer of Development Rights in terms of

Additional Buildable Area (in sqm)

Y * Area surrendered under the Public Project (in sqm)

Y = Multiplication factor as decided by the Government on the recommendation of the Implementing Agency, which

shall not be less than two.

General Terms and Conditions for Issuance of Development Right Certificate

Transfer of Development Right Certificate

Utilization of Transfer Development Rights


Page 54

The formula for calculation of equivalent quantum Transfer of Development Rights to be permitted on

receiving plot shall be governed as under:

A = (Rg/Rr) * B

Where, A= The equivalent quantum Transfer of Development Rights to be permitted on

receiving plot

Where, Rg = Rate in Rs/ sq meter in Generating Area as per collector guideline in generating

area.

Where, Rr = Rate in Rs/ sq meter in Receiving Area as per collector guideline in receiving

area.

Where B = Transfer of Development Rights debited from Development Rights Certificate in sq

m.

Conditions for Utilization of Transfer of Development Rights

Vesting of Land

Development of the online DRC transaction

Cancellation of TDR certificate

4.5.3. Guided Land Development (GLD)

Guided land development (GLD) is a land management technique for guiding the conversion of privately-owned

land parcels in the urban boundary from rural to urban uses through the infrastructure systems. It is undertaken

in the partnership with landowners, who can be participated by donating their land for the better levies. To facilitate

the arc with Infrastructure planning, this process is the best way to achieve the necessary targets.1

It creates a legal/planning framework within which popular (identified/chosen) settlements can proliferate. It seeks

to reinforce the most workable and effective (in) formal land developments by increasing their effectives and

technical standards. 2

GLD schemes arc initiated by the local government. It selects suitable land, and plans for infrastructure development like roads/footpaths, water supply lines and the rights-of-way - in consultation with the local landowners and village heads. Subsequently, an implementation and financing plan is drafted for incremental provision of infrastructure. This plan should enable and partly determine the development of the new settlement. 3

GLD concentrates on providing a cost-efficient layout of roads and basic services on sparsely developed land in urban fringe areas. The residents of the areas, landowners in GLD areas are not compensated for providing land to be used for infrastructural development. The increasing value of their land (caused by the provision of infrastructure) is considered sufficient compensation in itself.

4

Benefits of GLD

The GLD technique is cost-effective since land development is planned, designed, and implemented with the

landowners of the designated area, who donate land for roads and right of way for infrastructure, and public

spaces, as well as pay a betterment levy to meet the costs of the project. The betterment levy is justified because

of the increase in the value of land from the provision of infrastructure and from conversion to urban land us from

rural land use.

As landowners are to donate land, as well as, pay betterment levies, the infrastructure development plan is

prepared using both topographical and land cadastre maps, ensuring that wherever possible roads and

infrastructure follow the existing plot boundaries. To finance the scheme, a loan is initially taken out to build the

1 HTTPS://ENGINEERINGPLANNING.BLOGSPOT.EOM/2016/04/GUIDED-LAND-DEVELOPMENT.HTML 2HTTPS://WWW.IHS.NL/SITES/EORPORATE/FILES/IHS_WP_001_LAND_MANAGEMENT_AND_GUIDED_LAND_DEVELOPMENT_IN_JAKARTA_1991.PDF 3HTTPS://WWW.IHS.NL/SITES/EORPORATE/FILES/IHS_WP_001_LAND_MANAGEMENT_AND_GUIDED_LAND_DEVELOPMENT_IN_JAKARTA_1991.PDF 4HTTPS://WWW.IHS.NL/SITES/EORPORATE/FILES/IHS_WP_001_LAND_MANAGEMENT_AND_GUIDED_LAND_DEVELOPMENT_IN_JAKARTA_1991.PDF

https://engineeringplanning.blogspot.com/2016/04/guided-land-development.html

https://www.ihs.nl/sites/eorporate/files/IHS_WP_001_Land_Management_and_Guided_Land_Development_in_Jakarta_1991.pdf




Page 55

infrastructure, which is paid from betterment levies provided by landowners either on annual installments or in

lump sum upon sale of land.

Individual landowners are to subdivide or service their own lands. In cask of subdivision of land, adherence to

subdivision regulations is strongly imposed in the designated area.

Although quite attractive on paper, GLD is often fraught with difficulties on the ground. First, as with LP/LR

approaches, it requires the consent of landowners, so it cannot be applied in areas with fragmented

landownership. Too many landowners mean that greater time and effort is needed in building consensus. It is

very likely that those landowners who have access to roads will refuse to participate voluntarily. Landowners may

also want to continue the rural use of land.

Second, collection of betterment levies, particularly on an annual basis, may not be acceptable to landowners. Or

even if it is acceptable, they may for various reasons default on the payments. The option of holding a land parcel

as collateral against default of payment may not be feasible. Judicial proceedings in civil cases in most developing

countries take several years to complete. This would mean that the particular parcel of land will be out of the

market until the civil case is settled. Moreover, it may be politically undesirable to repossess lands of small

landowners who are most likely to default.

The advantages and disadvantages of guided land development are in fact very similar to those of land

readjustment and land pooling. The only advantage that guided land development has over land pooling/land

readjustment is that the government does not need to decide on the amount of land to be returned to the

landowners at the end of the project

How does GLD work?

Each Guided Land Development (GLD) project can be seen as a form of compulsory participation and partnership

agreement between the landowners and the local government (planning authority). Generally, the landowners

contribute a portion of their land for financing the cost of the project. The amount of land contribution is proportional

to the expected land value increase due to the implementation of the project. The planning authority provide the

necessary technical expertise for the planning and implementation of the project.

Figure 67: Concept of guided land development in diagram


Page 56

Source: Land Management and Guided Land Development for private residential areas in Dhaka city: A case study of Senpara Parabata

at Mirpur by MD. Rafiul Karim

Key Success Factors

The first and foremost required for GLD to work is, availability of fragmented pieces of non-government

land

It is important to have the consensus and willingness of all landowners to part their land for combined

urban development

To develop the infrastructure, availability of loan and funding from financial institution/ bilateral helps to

cover the initial project cost

Key Challenges

It is challenging to convince all landowners agree to part their land for combined urban land development.

This technique’s suitable is largely limited for land located on the fringes of existing towns with land

commanding good prices


Page 57

Advantages of GLD

It is a very useful technique to increase the supply of land for low-income housing

It improves spontaneous urban settlements by providing public amenities repaid through user charges

and municipal taxes

Use Case in India/Abroad

Haryana, India: The Haryana government has permitted developers to negotiate direct purchase from

farmers for large scale land assembly for urban development where the land parcels are generally located on the

fringes of existing towns and the negotiated prices are three to six times higher than the government rates.

Jakarta, Indonesia: GLD has been backed by Master Plan in Jakarta with development of area of 50

ha for 1,00,000 households.

Summary

In addition to the traditional land acquisition method, government and municipalities have now resorted to

innovative land assembly techniques to overcome the shortcomings of the traditional method. With these newer

methods, government is able to reduce the time and cost of acquisition, eliminate the delays and also shift the

development from highly densely populated areas to less populated areas thus ensuring holistic and sustainable

development with minimal cash outflow.

4.6. LAND FUNDING TECHNIQUES

In addition to land assembly methods, governments may also use alternative and innovative land funding

techniques, which will help governments reduce/ eliminate the finance cost for development of ring roads. Below

are the techniques, which can be used by the government in conjunction to achieve its purpose of minimizing the

cost of land acquisition and other related costs and to maximize the speed of construction and clearances. While

others may be exclusively applied to achieve the purposes of municipalities.

Challenges with Funding Options

Lack of policy in place for such tool to be executed

Changes required in Regulatory Framework with reference to: Land Assembly, Land Management, Land

Use and Development Norms

Negotiations will be lengthy and prolonged

Making all landowners agree to part away their land for developmental purposes is a tedious and difficult

task


Page 58

For re-alignment, master plan will need to be amended including additional work/ rework to be done for

undertaking survey work for re-aligned route

While applying for soft loan past loan servicing history is checked and if there is any default/ delay, it

makes the sanctioning of new loan difficult

A detailed feasibility report regarding use of funds, repayment of loan needs to be prepared to initiate

the discussion for soft loan which may be a time-consuming process

4.6.1. Land Swap Model

What is Land Swap Model?

It is a method by which the government agrees for a land swap deal with a dissenting party on who’s land the

proposed ring road/ bypass or road widening scheme is planned. In this scheme, the landowner hands over

the land to the government free from all encumbrances and accepts another piece of land either by accepting

government land in the near vicinity of the road alignment by simply swapping the land with same value or

by accepting government land somewhere else either in the city or outside the city for a land of same value.

Key Success Factor

It is best suited when the compulsory acquisition is not possible, or it will take lot of time and delays will

hamper completion and escalate costs and,

Alternative piece of land is available for swapping which if done will expedite the process of efficient and

timely infrastructure development.

Key Implementation Challenges

Multiple alternative land pieces may need to be proposed for successful land swap deal

Finding exact match of property for land swap may be difficult and,

In such a scenario, negotiations will be lengthy and prolonged

Advantages of Land Swap Model

No/ minimal changes is required to be made to the existing alignment plan if a suitable land swap deal

is struck

No/ minimal monetary land acquisition cost will be incurred as it is land or land deal

It reduces the number of clearances and delays in construction as there is no dissenting party due to

land or compensation issues

Use Cases in India

Nagpur: Central Jail gave Nagpur Metro possession of 15,326 sqm land inside the jail to construct

metro. Jail will get an alternative land parcel from the govt.

Bihar: The central government has cleared swapping of land between Bihar government and Airports

Authority of India for the expansion and development of Patna airport.

4.6.2. Road Re-Alignment Method (RRM)

Key Success Factors

RRM is best suited when the cost land acquisition is very high

There are delays and litigation due to acquisition of private land

Further delays arise due to environmental clearances or forest/ wildlife/ tribal encroachment

Huge rehabilitation cost is involved to resettle the displaced


Page 59


For re-alignment, master plan will need to be amended

Additional work/ rework will be needed to do the survey of re-aligned route

Advantages of RRM

It encourages use of government parcel

It reduces the land acquisition and other costs

It reduces the number of clearances and delays in construction

It maintains environmental and socioeconomic balance

It helps in stimulating local economy

It maintains economic competitiveness

Use Case in India

Delhi, Mumbai Expressway: The Expressway of 1250 kms had to undergo realignment to reduce the

acquisition cost of rising land prices.

Problem with the expressway

There was rising Land Cost lead to increased land acquisition cost and delay in negotiation

lead to increased construction cost

Huge displacement and rehabilitation cost

Utility shifting clearance and approval

Solution using RRM

The new alignment from Ring Road of Delhi to Jaipur to Alwar to Sawai Madhopur to

Mumbai reduced land acquisition cost by INR 16000 to 20000 Cr

Newer route goes from backward areas with low land acquisition cost and helped in

economy of backward regions by improving infrastructure and poverty alleviation

Benefits of RRM

It helped in reducing land acquisition cost, construction cost arising due to delay in

clearances

The new route ensured it followed sustainable pattern of development and urban

revitalization

It became a means of expanding urban infrastructure with least amount of compulsory land

acquisition from private owners

Finally, it led to speedy and hassle-free construction

Jabalpur- Bhopal four laning: For the four laning of NH, land alignment required for widening was

changed to reduce social impact, as 13% of the land was forestland.

Pathankot- Mandi four laning: For the four laning of NH, NHAI agreed for realignment to avoid

environmental degradation and cutting of hills which is a costly process

4.6.3. Soft Loan from Bilateral/ Multilateral Agencies

What is Soft Loan?

Soft Loans are below-market rate of interest including other concessions to borrowers, such as long

repayment periods or interest holidays

World Bank and other institutions like ADB, NDB provide soft loans to developing countries for the

projects they think are worthwhile


Page 60

It is given for purposes such as infrastructural development of roads, highways, ports, airports, schools,

universities, hospitals, sports facilities etc.

Repayment of such loan can be done through revenue earned by municipality such a toll, municipal

taxes, water charges, user fees

Key Success Factors

Loan is based on the social impact of the developmental activity

If the purpose of seeking loan is developmental such as infrastructural development of roads, highways,

ports, airports, hospitals, schools, universities, sports facilities, there are high chances of loan sanction.


New loan depends upon the past loan servicing history

A detailed feasibility report regarding use of funds, repayment of loan needs to be prepared to initiate

the discussion

Advantages of Soft Loan

It is a below market interest rate loan where repayment comes with a moratorium

Government can collect toll, user charges, municipal taxes to repay the loan

Use Case in India

Madhya Pradesh: Asian Development Bank (ADB) in 2014 granted Rs 6000 Cr loan at 2/3 % interest

for strengthening and building road network in MP.

Chhattisgarh: ADB has granted a $350m loan for the rehabilitation and modernization of state highways

and major district roads.

Maharashtra: ADB has granted a loan of $200m to enhance road infrastructure in Maharashtra to

improve rural roads in 34 districts spanning 2100 km

4.6.4. Air Rights Development

What is Air Rights Development?

Air rights are defined as the ‘right to control, occupy or use vertical space (airspace) above a property, subject to

necessary and reasonable use by neighbors and other persons (such as aircraft). Ownership generally

includes the right to use and develop this space above ground without interference.

A basic definition of ARD is the development of air space above or below a parcel of land’s primary use. In other

words, new ‘land’ is created where the space around an asset is utilized as buildable space. Typically, air-

rights buildings are constructed above existing infrastructure such as roads or railways, or over buildings

such as low-rise shopping centres that may have been developed when space was at less of a premium.

As mentioned previously, the development above/below assets typically involve railways and expressways,

but can include streets, parking lots, canals, or public buildings (i.e. stations, libraries, schools, offices).

Key Success Factors

It is best suited for places with Land scarcity and high density, commercial places

It requires places with open spaces on either side of proposed development

Space available only for compact development pattern


Limited to commercial and high footfalls area

May require re-alignment of road to make it viable


Page 61

Lack of policy in place for such tool to be executed

Cannot be implemented where central govt plans to notify the highway for emergency landing

Advantages of ARD

Stakeholder Benefits

Municipality • Accommodates new growth within existing areas that have constrained land supplies

• Achieves several Smart Growth principles • Increases connectivity of transportation networks • Generates new tax revenues • Generates revenues through land value capture for ARD above municipal assets

Government Agency

(i.e. Transit, Utilities)

• Generates revenues through land value capture • Increases access to service (e.g. increase ridership base) • Decking reduces maintenance costs and increases service reliability

Community Residents • Reconnects surrounding areas • Increases safety of crossing transportation routes • Stimulates growth and revitalizes surrounding areas • Integrated access to employment opportunities • Creates new amenities in the area

Developer • Development opportunity in a desirable area • Easy land acquisition and assembly • High visibility of structures • Proximity to transportation infrastructure

Use Case in India

Smart Railway Stations, India: Government of India has signed MoUs to redevelop 10 stations

leveraging commercial development of land & air space in and around stations

Chennai: Right for the development of air space above 9 stations in MRTS Phase II or in the land

adjoining the stations for commercial exploitation.

Surat: Railway station in Surat is proposed to use utilize Air Rights

Figure 68: Proposed Surat Multi-Modal Transport Hub


Page 62

4.6.5. Tax Incentive Financing (TIF)

What is TIF?

TIF is a popular economic development tool by which the local governments use incremental property tax to fund

the public costs of economic revitalization and growth. It is a tool used across the United States and Europe from

1980’s and is still one of the most used tools for enhancing funds for infrastructure financing.

Tax Increment financing uses increased property taxes that is generated by new development that can

be of urban infrastructure such as underground drainage, water supply or storm water drainage or a hike

in Land Value due to a provision of a state of art construction in a designated “blighted” area.

This increased infrastructure and better facility attract development in form of office buildings, retail

industry or housing development, which would otherwise not take place, which increase the social value

of the area as well creating a job for the people.

IF is a flexible tool as it can be used to: i) Acquire property ii) Provide infrastructure iii) Pay for consultant,

engineering, attorney and other applicable soft costs.

It is part of local planning and it advances comprehensive land use goals.

TIF advances Comprehensive Land Use Goal

How is Tax Increment Financing Used?

The basic notion behind TIF is as follows:

Step 1: The state government passes the Tax Increment Financing Statutes which enables the urban local bodies

across different districts to improve the condition of the infrastructure.

Step 2: The urban local bodies which intend to revitalize the city’s urban infrastructure, determines the

areas/zones/pockets across the city that lack or have deteriorated infrastructure. These pockets are

identified using the “but-for” test.

But-For Test: Before an authority may create a TIF district, the urban local body is required to make a

“but-for” findings that

The development “cannot” occur without TIF assistance

The market value of the TIF development will be higher (after deducting the value of the TIF

initiation) that what would be received on the site if TIF were not used.

Step 3: Once areas/pockets/zones have been determined, the urban local body divided these pockets into

districts, which are then known as Tax Increment Districts or District Improvement Financing.

Step 4: The urban local body then formulates a base valuation of all property in the TIF district, which is then

utilized to determine the amount of incremental property tax values over time.

Step 5: The urban local body may secure the funding of the infrastructure through different means, such as

floating a bond. In most cases from the US, a bond is floated, and repayment is done from the incremental funds

collected.


Page 63

Step 6: Once the infrastructure development comes towards a completion the repayment of the bond starts. The

repayment is a central feature and the main notion, which separates Tax Increment Financing from public debt.

How is Tax Increment Financing used to pay Initial Costs?

When Tax Increment financing is adopted by an urban local body, the main issue, which arises, is how the initial

costs are going to be paid, as the increments shall be received after the development beings or a certain phase

of the same is covered. In this scenario, three financing tools are used to cover these upfront costs, namely:

Bonds: The urban local body may issue municipal bonds to cover up these upfront costs and use increments to

pay for the same. In some cases, it has been observed that the “incremental” funds are received at a much later

stage, due to the nature of the infrastructure provided; the urban local body may issue extra bonds to pay interest

on the bonds until the “increments” begin to be received.

Interfold Loans: In some cases, the authority or city may advance money from its own funds and use the

increments to recover the income used of the urban local body.

Pay-as-you-go Financing: In the case where the urban local body employees a developer in a public

participation mode, the arrangement could be such that the developer would have to pay the entire cost and the

developer is then the “incremental value” is then used to repay for these costs. This type of developer-based

financing is known as “Pay-as-you-go Financing”.

Key Success Factor:

Preferential where there is a possibility of change in land use due to redevelopment

Useful if meets the “but for” test i.e. development would not have taken place “but for” (without) these

expenditures

Key Implementation Challenges:

A detailed “but for” test needs to be done before implementing TIF

Prior to implementing TIF, a forecast of real estate appreciation attributable to TIF implementation needs

to be undertaken

Advantages of TIF

Sustainable sources of growth

Address affordable and social housing needs

Improves infrastructure and environmental conditions through new building practices

Use Case in India/ Abroad

Hyderabad, India: Greater Hyderabad Municipal Corporation (GHMC) has applied TIF to fund capital

improvements via bank loans; these are recovered as annual tax increments accruing from real estate

value appreciation.

Dublin, Ohio, USA: City of Dublin has used TIF as an economic development and financing tool for the

past 25 years to provide key infrastructure funding for the (re) development of targeted economic

development projects

4.6.6. Swiss Challenge Method (SCM)

What is Swiss Challenge Method?

A method of bidding, often used in public projects, in which an interested party initiates a proposal for a

contract or the bid for a project. On receiving such proposal, govt. then makes such project details public

and invites proposals from other interested parties.

On receipt of these bids, the original contractor gets a chance to match the best bid.


Page 64

Govt. in return, will have to reimburse ‘reasonable costs’ incurred by the initial company in preparing the

proposals, if they end up losing the contract

It allows a seller to mix-and-match the features of both an open auction and a closed tender to discover

the best price for an asset

Key success factors

Allows fast track awarding and project implementation

Project gets developed in PPP mode

Government requires private sector to drive and implement the project


By allowing a bidder to initiate an idea and giving him the first right of refusal, SCM can promote

favouritism (corruption) in the award of public projects

Advantages of SCM

Certainty of as at least one willing private partner is available right from the beginning.

Time and cost saving on pre project activities and feasibility studies

Fosters innovation

Source: Madhya Pradesh Infrastructure Development (Swiss Challenge) Guidelines ‐ 2014

Use Case in India

East Coast Railways, India: East Coast Railways has initiated development of 13 railway stations by

through commercial development of spare land/air space in the station using Swiss Challenge Method

Haryana, India: Haryana govt has decided to adopt SCM for auctioning 3,000 acres of land for a $10Bn

industrial park proposed by the Chinese Wanda group

Green Maritime Board, India: Green Maritime Board has opted for SCM route for the sole bid for its

proposed maiden LNG port terminal project.

4.6.7. Sustainable Infrastructure Development Fund (SIDF)

What is Sustainable Infrastructure Development Fund (SIDF)?

It is a method by which the state government creates a Special Purpose Vehicle (SPV), which acts as a land bank

and all the land in the name of the state government and its various departments is then transferred to this SPV.


Page 65

The SPV then acts as a single nodal agency maintaining the record of the government land. All the future

development plans can then be prepared easily after accessing the government land data from the SPV.

Salient Features of the SPV:

SPV will ensure seamless coordination between land allotment, assembly, management, planning and

developmental activities.

SPV will act as institutional mechanism for steering and guiding the process bringing together various

government departments.

Empowered committee on SPV will be the Nodal Authority for sanctioning projects for expenditure out

of SPV’s funds.

The funds of SPV should be invested in suitable fiscal instruments to generate optimum return with

assured safety and liquidity

SPV should submit annual report on the management of land and funds to the government.

Objective of SPV:

To encourage socially and economically efficient allocation of Urban Land so that Urban Development

is done in a resource conserving manner and the magnitude of land used for urban settlements is

optimal.

To make government land available in adequate quantities at the right time and on reasonable prices to

both developmental authorities and individuals

To provide for an effective and efficient institutional mechanism for coordinating the efforts of various

departments and agencies in implementing of developmental activities.

Key Tools and Measures:

Timely transfer of government land to development authorities and allotment of services land and

properties by development authorities.

SPV will allocate land to the development authority for development plans and projects which are

approved by the Empowered Committee

Setting up of Institutional Mechanism

Changes in Regulatory Framework with reference to:

Land Management

Land Assembly

Land Use and Development Norms

Land to be transferred free of cost and on free hold basis for the purpose of urban infrastructure projects

such as roads, parks, drainage, sewerage systems, electricity installation, solid waste management,

transport terminal etc.

75% of the surplus generated by disposal of land on PPP model or auction shall be credited to the SPV

Key Success Factor:

Single Nodal Agency with all government land data in one place

Easy to create future master/development plans

A tool for expediting urban development in declining/ neglected areas of the state

Fosters easier and faster redevelopment of the city and state at large

It will be self-sustaining as it will surplus from disposal of land on PPP model or auction

Key Implementation Challenges:

One-time effort to collate all the government land data under SPV

Will be beneficial for all master plans/development plans prepared after SPV is operational

For master plans/development plans prepared before the SPV is operational, re-alignment will need to

be done which will be time consuming


Page 66

Advantages of SIDF

No need to change the alignment

No monetary land acquisition cost will be incurred

Reduces the number of clearances and delays in construction

Use Case in India

Odisha: Odisha has created a Policy Manual Guidelines on Land Implementation Policy 2015 for optimal

land allotment, assembly, management, planning for developmental activities.

4.7. CONCLUSION

Madhya Pradesh has immense capability to be a developmental hub for India due to its strategic location

advantage of being in central India. The state has strong road network with untanned potential. With the state

government envisioning the development of ring roads, it is imperative for the state to explore the new and

innovative land assembly and funding options to bridge the demand and supply gap in as short as possible. These

techniques are well proven techniques enabling implementing agencies save time, cost and increase their

efficiency by providing the desired results in an efficient manner. These techniques when combined ensures faster

an inorganic growth as compared to traditional and organic growth trajectory.


Page 67

CHAPTER 5. WAYFORWARD

The study has identified towns in Madhya Pradesh, which may be considered for Ring Road development based

on the identified parameters and assigned weightages. However, it is pertinent to mention here that the study

may be considered at incubation stage only and will require other activities to be taken up for reaching to execution

stage. To be more specific, the entire project development cycle may be divided into four stages: -

Stages Few activities [Not exhaustive] *

Initiation / Incubation stage Project Concept /rationale development

Major stakeholder consultations

Approvals from Government

Broad parameters for identifying the project area

Justifications/ case studies for benchmarking

Shortlisting of cities based on few parameters

Planning stage Preparation of tender document for consultant appointment – Eligibility, project cost etc

Detailed Techno economic Feasibility study of shortlisted cities with all survey work

Land availability details

Land acquisition process/ Land clearance report

Environmental clearances/other approvals/NOCs

Recommendations & finalization of cities

Detailed Project Report with design & Specification

Fiscal resource mobilization

Approval on Financial and project from the Government

Execution stage Appointment of contractor/concessionaire & Independent Engineer

Project management unit for project monitoring

Appointment of Supervision Quality Control Consultant (SQC)

Project closure Project review and financial closure

Asset Management

The detailed action plan is enclosed as Annexure 9 for kind perusal. It is highly recommended as a way forward

to conduct detailed Techno – Economic Feasibility Study of the identified towns and develop detailed project

report to further decide on the implementing strategy. The identified towns may not be feasible for construction

due to challenges like land availability, terrain of the land, approvals, financial costing etc. Therefore, the way

forward would be to conduct other relevant study like feasibility study, land availability study, financial costing etc.

before reaching to execution stage.


Page 68

ANNEXURES


Page 69

Annexure 1: Data collection template for Ring Road Development

Atal Bihari Vajpayee Institute of Good Governance and Policy Analysis

Data Collection for selection of towns for Ring Road Development

CITY INFORMATION

S. N.

Data Point Criteria Unit of Measurement

Department Fill up the Details

Details of City Profile and Traffic Data Census

1 Name of the City ULB

2 Population of the city as per 2011 census

Total Population Number ULB

3 Estimated Population for 2019 Total Population growth rate

Percentage ULB

4 City's Livability Index, if available

Livability Index Range ULB

5 USP of the city/City Specialty (pilgrimage, Tourism, Cantonment area, Commerce, Mandi, District HQ etc.)

ULB

6 Status of City Master Plan Available Online/Not Available/ Share link if available online

Town Planning

7 Primary reasons to be considered for ring road to be developed in that city(Decongestion, Economic Growth, Tourism, Part of Master Plan, Area Development or any other(please specify))

ULB

8 Vehicle registration data for last 3 years(PCU for multi axle, trucks and LMV)

No. of multi axle Number RTO

No. of trucks Number RTO

No. of LMV Number RTO

9 Data Collection of Traffic census from MP road development

No. of multi axle Number MPRDC

No. of trucks Number MPRDC

No. of LMV Number MPRDC

10 Data Collection of Traffic census from Rural road development

No. of multi axle Number RRDC

No. of trucks Number RRDC

No. of LMV Number RRDC

11 Data Collection of Traffic census from NHAI/MPRDC/PWD

No. of multi axle Number NHAI

No. of trucks Number NHAI

No. of LMV Number NHAI

Details of Existing By Pass

12 What is the length of existing bypass (in kms)

Length of the bypass Area in Sq km Town Planning Department

13 What is the width of the existing bypass (in meters)

Width of the bypass Area in Sq metre Town Planning Department

14 Distance between existing bypass and nearest NH (in kms)

Distance in km Distance in km Town Planning Department

15 Distance between existing bypass and proposed ring road as per master plan (in kms)



Page 70

Details of Proposed Ring Road Alignment (as per Development Plan)

16 Total proposed length of ring road

Length of the ring road Area in Sq km Town Planning Department

17 Total proposed width of ring road

Width of the ring road Area in Sq metre Town Planning Department

18 Area of land required Total Area of land to be procured

Area in Sq km Town Planning Department

19 Govt Land Parcel available near proposed road (size in sq kms)

Total Area of government land already available near proposed ring road


20 Tentative Private Land to be acquired for construction of proposed ring road (size in sq kms)

Total Area of private land to be acquired near proposed ring road


21 Average Govt. circle rate/ collector guideline rate per square meter near the proposed ring road

Govt. circle rate/ collector guideline rate per sq m for proposed ring road

Average Rate per Sq metre

Town Planning Department

22 Average Agriculture Land Rate (in sq mts)

Govt. circle rate/ collector guideline rate per sq m for agricultural land

Average Rate per Sq metre


23 Distance of proposed ring road from major Mandis/Bazaars


24 Name of Villages adjoining proposed ring road


Details of NH passing through the city

25 How many points does NH pass through the city

ULB

26 How many NHs are adjoining/ abutting the city limits

ULB

27 Total Length of Overlap of NH and By pass

ULB

Details of Industrial and Growth Corridor

28 Number of Existing Large Scale Industries in and around the ULB

Number of existing industries and name of industrial area

Number ULB

29 What are the type of Existing Large Scale Industries

ULB

30 Number of Existing Medium Scale Industries

Number of medium scale industries

Number ULB

31 What are the type of Existing Medium Scale Industries

ULB

32 Number of Existing Small-Scale Industries

Number of small-scale industries

Number ULB

33 What are the type of Existing Small Scale Industries

ULB

34 Number of Proposed Industrial Parks

Number of proposed industries

Number ULB

35 What are the different types of proposed industrial parks

ULB

36 Proximity (in kms) of the proposed ring road (as per master plan) to the existing industrial belt or corridor

ULB


Page 71

37 Size of the total existing industrial area ( in Sq km) in proximity of proposed ring road (as per master plan)

Total Area of existing industrial area

Area in Sq km ULB

Details of Other Key Parameters

38 habitations to be connected with the proposed ring road project

Number of habitation Number ULB

39 Name of villages to be connected with the proposed ring road project

ULB

40 No. of Schools and Colleges to be connected with the proposed ring road project

Number of schools and colleges

Number ULB

41 Name of Schools and Colleges to be connected with the proposed ring road project

ULB

42 No. of tourist centers to be connected with the proposed ring road project

Number of tourist centers

Number ULB

43 Name of tourist centers to be connected with the proposed ring road project

ULB

44 No. of Pilgrimages to be connected with the proposed ring road project

Number of pilgrims centers

Number ULB

45 Name of Pilgrimages to be connected with the proposed ring road project

ULB

Details of Economic, Social and Environmental

46 Key contributor to the city's economic eg: Tourism, Educational Institutions, Defence, Trade etc

ULB

47 Current average travel time (in hours) from the closest 3 major cities

ULB

48 Expected reduction in average travel time (in hours) ) from the closest 3 major cities due to proposed ring road construction

ULB

49

GST/ Tax/Revenue collection data

Amount of tax collected/revenue

Number Revenue Department

Sources of Revenue Details Revenue Department

50 Current annual accident data of the city

Average of last 5 years Number RTO

51 Area of forest land to be acquired, if any (as per the alignment of proposed road as per master plan)

Number of pockets Number Town Planning Department

Size of each pocket Area in Sq km Town Planning Department


Page 72

Annexure 2: Division wise, town wise projected population and population marks

S.No. Division District Town Population

Census 2011 Projected

Population 2019 Population

Marks

1 Bhopal Bhopal Bhopal 17,98,218 22,85,933 5

2 Bhopal Vidisha Vidisha 1,55,951 1,80,903 1

3 Bhopal Sehore Sehore 1,09,118 1,31,941 1

4 Chambal Morena Morena 2,00,482 2,40,578 2

5 Chambal Bhind Bhind 1,80,935 2,18,930 2

6 Gwalior Gwalior Gwalior 10,54,420 13,44,385 5

7 Gwalior Guna Guna 1,80,935 2,35,258 2

8 Gwalior Shivpuri Shivpuri 1,79,977 2,24,750 2

9 Gwalior Datia Datia 1,00,284 1,22,850 1

10 Hoshangabad Hoshangabad Hoshangabad 1,17,988 1,45,220 1

11 Hoshangabad Betul Betul 1,03,330 1,26,062 1

12 Hoshangabad Hoshangabad Itarsi 99,330 1,12,850 1

13 Indore Indore Indore 19,94,397 25,93,652 5

14 Indore Khandwa Khandwa 2,00,738 2,37,874 2

15 Indore Burhanpur Burhanpur 2,10,886 2,33,417 2

16 Indore Khargone Khargone 1,16,150 1,42,399 1

17 Jabalpur Jabalpur Jabalpur 10,81,677 12,78,560 5

18 Jabalpur Katni Katni 2,21,883 2,57,853 2

19 Jabalpur Chhindwara Chhindwara 1,75,052 2,24,066 2

20 Jabalpur Seoni Seoni 1,02,343 1,22,750 1

21 Rewa Satna Satna 2,89,977 3,76,950 3

22 Rewa Rewa Rewa 2,35,654 3,01,617 3

23 Rewa Singrauli Singrauli 2,20,257 2,76,422 2

24 Sagar Sagar Sagar 2,74,556 3,23,976 3

25 Sagar Chhatarpur Chhatarpur 1,42,128 1,96,136 1

26 Sagar Damoh Damoh 1,39,561 1,68,866 1

27 Ujjain Ujjain Ujjain 5,15,215 6,41,442 4

28 Ujjain Dewas Dewas 2,89,550 3,73,519 3

29 Ujjain Ratlam Ratlam 2,64,914 3,17,920 3

30 Ujjain Mandsaur Mandsaur 1,41,667 1,71,435 1

31 Ujjain Neemuch Neemuch 1,28,561 1,49,775 1

32 Ujjain Ujjain Nagda 1,00,039 1,12,045 1

Source: Study Team’s Projection


Page 73

Annexure 3: Division wise, town wise population growth rate and growth rate marks

S.No. Division District Town Population Growth Rate

(in %) Population Growth

Rate Marks

1 Bhopal Bhopal Bhopal 27.12 4

2 Bhopal Sehore Sehore 20.92 3

3 Bhopal Vidisha Vidisha 16.00 2

4 Chambal Morena Morena 20.00 3

5 Chambal Bhind Bhind 21.00 3

6 Gwalior Guna Guna 30.02 5

7 Gwalior Gwalior Gwalior 27.50 4

8 Gwalior Shivpuri Shivpuri 24.88 3

9 Gwalior Datia Datia 22.50 3

10 Hoshangabad Hoshangabad Hoshangabad 23.08 3

11 Hoshangabad Betul Betul 22.00 3

12 Hoshangabad Hoshangabad Itarsi 13.61 1

13 Indore Indore Indore 30.05 5

14 Indore Khargone Khargone 22.60 3

15 Indore Khandwa Khandwa 18.50 2

16 Indore Burhanpur Burhanpur 10.68 1

17 Jabalpur Chhindwara Chhindwara 28.00 4

18 Jabalpur Seoni Seoni 19.94 2

19 Jabalpur Jabalpur Jabalpur 18.20 2

20 Jabalpur Katni Katni 16.21 2

21 Rewa Satna Satna 29.99 4

22 Rewa Rewa Rewa 27.99 4

23 Rewa Singrauli Singrauli 25.50 4

24 Sagar Chhatarpur Chhatarpur 38.00 5

25 Sagar Damoh Damoh 21.00 3

26 Sagar Sagar Sagar 18.00 2

27 Ujjain Dewas Dewas 29.00 4

28 Ujjain Ujjain Ujjain 24.50 3

29 Ujjain Mandsaur Mandsaur 21.01 3

30 Ujjain Ratlam Ratlam 20.01 3

31 Ujjain Neemuch Neemuch 16.50 2

32 Ujjain Ujjain Nagda 12.00 1

Source: Study Team’s Projection


Page 74

Annexure 4: Division wise, town wise NH and NH availability marks

S.No. Division District Town National Highway NH

availability Marks

1 Bhopal Sehore Sehore NH 86 5

2 Bhopal Bhopal Bhopal NH 12, NH 86 5

3 Bhopal Vidisha Vidisha NH 86 5

4 Chambal Morena Morena NH 3 5

5 Chambal Bhind Bhind NH 92 5

6 Gwalior Gwalior Gwalior NH 3, NH 75, NH 92 5

7 Gwalior Shivpuri Shivpuri NH 3, NH 25 5

8 Gwalior Guna Guna NH 3 5

9 Gwalior Datia Datia NH 75 5

10 Hoshangabad Betul Betul NH69 5

11 Hoshangabad Hoshangabad Hoshangabad NH 12, NH 69 5

12 Hoshangabad Hoshangabad Itarsi NH 69 5

13 Indore Indore Indore NH 3

14 Indore Burhanpur Burhanpur NH 6 lies at a distance of 40 km from town

0

15 Indore Khargone Khargone Nil, NH 3 lies at 45 km distance away from the town

0

16 Indore Khandwa Khandwa Nil 0

17 Jabalpur Katni Katni NH 7, NH 78 5

18 Jabalpur Jabalpur Jabalpur NH 7, NH 12A 5

19 Jabalpur Chhindwara Chhindwara NH 26B 5

20 Jabalpur Seoni Seoni AH 43 (NH 7) 5

21 Rewa Satna Satna NH 75 5

22 Rewa Rewa Rewa NH 7 5

23 Rewa Singrauli Singrauli NH 75 5

24 Sagar Sagar Sagar NH 86, NH 26A 5

25 Sagar Damoh Damoh NH 12A 5

26 Sagar Chhatarpur Chhatarpur NH 75 and NH 86 5

27 Ujjain Dewas Dewas NH 3 and NH 86 5

28 Ujjain Ratlam Ratlam NH 79, NH 927 A 5

29 Ujjain Mandsaur Mandsaur NH 79 5

30 Ujjain Ujjain Ujjain Nil, NH 3 lies at a distance of 50 km from city

0

31 Ujjain Neemuch Neemuch NH 79 5

32 Ujjain Ujjain Nagda Nil 0


Page 75

Annexure 5: Length of ring road/bypass yet to be constructed marks

S.No. Division District Town Length of Ring Road/Bypass proposed in DP

Length of Ring Road/Bypass already constructed ( in Km)

Length of Ring Road/Bypass yet to be constructed (in Km)

Length of Ring Road/Bypass yet to be constructed Marks

1 Bhopal Sehore Sehore 17.00 17.00 0 NA

2 Bhopal Bhopal Bhopal 50.00 5.00 45.00 1

3 Chambal Morena Morena 20.95 6.45 14.50 3

4 Chambal Bhind Bhind 31.50 9.25 22.25 1

5 Gwalior Gwalior Gwalior 78.00 78.00 0 NA

6 Gwalior Guna Guna 24.20 11.70 12.50 3

7 Gwalior Datia Datia 11.55 2.55 9.00 4

8 Hoshangabad Betul Betul 13.00 13.00 0 NA

9 Hoshangabad Hoshangabad Hoshangabad 17.90 9.75 8.15 4

10 Hoshangabad Hoshangabad Itarsi 24.50 19.6 4.90 5

11 Indore Burhanpur Burhanpur 11.65 0 11.65 3

12 Indore Khargone Khargone 15.65 0 15.65 2

13 Indore Khandwa Khandwa 28.64 0 28.64 1

14 Jabalpur Katni Katni 17.80 17.80 0 NA

15 Jabalpur Jabalpur Jabalpur 46.25 37.25 9.00 4

16 Jabalpur Chhindwara Chhindwara 31.07 6.22 24.85 1

17 Jabalpur Seoni Seoni 16.55 0 16.55 2

18 Rewa Satna Satna 30.10 30.10 0 NA

19 Rewa Rewa Rewa 35.05 28.25 6.80 4

20 Rewa Singrauli Singrauli 82.9 63.20 19.70 2

21 Sagar Damoh Damoh 25.85 14.85 11.00 3

22 Sagar Chhatarpur Chhatarpur 27.00 10.35 16.65 2

23 Ujjain Dewas Dewas 26.60 19.80 6.80 4

24 Ujjain Ratlam Ratlam 25.60 11.50 14.10 3

25 Ujjain Mandsaur Mandsaur 27.40 13.80 13.60 3

26 Ujjain Ujjain Ujjain 17.20 0 17.20 2

27 Ujjain Neemuch Neemuch 21.80 2.85 18.95 2

28 Ujjain Ujjain Nagda 14.05 5.55 8.50 4

Source: Development Plans of respective towns, Department of Town and Country Planning, Madhya Pradesh


Page 76

Annexure 6: Division wise, town wise marks for % of ring road/bypass road left to be constructed

S.No. Division District Town % of ring road/bypass road

left to be constructed out of

total proposed

% of ring road/bypass road left to be constructed out

of total proposed Marks

1 Bhopal Sehore Sehore 0.00 NA

2 Bhopal Bhopal Bhopal 90.00 1.00

3 Chambal Morena Morena 69.21 2.00

4 Chambal Bhind Bhind 70.63 2.00

5 Gwalior Gwalior Gwalior 0.00 NA

6 Gwalior Guna Guna 51.65 3.00

7 Gwalior Datia Datia 77.92 2.00

8 Hoshangabad Betul Betul 0.00 NA

9 Hoshangabad Hoshangabad Hoshangabad 45.53 3.00

10 Hoshangabad Hoshangabad Itarsi 20.00 5.00

11 Indore Burhanpur Burhanpur 100.00 1.00

12 Indore Khargone Khargone 100.00 1.00

13 Indore Khandwa Khandwa 100.00 1.00

14 Jabalpur Katni Katni 0.00 NA

15 Jabalpur Jabalpur Jabalpur 19.46 5.00

16 Jabalpur Chhindwara Chhindwara 79.98 2.00

17 Jabalpur Seoni Seoni 100.00 1.00

18 Rewa Satna Satna 0.00 NA

19 Rewa Rewa Rewa 19.40 5.00

20 Rewa Singrauli Singrauli 23.76 4.00

21 Sagar Damoh Damoh 42.55 3.00

22 Sagar Chhatarpur Chhatarpur 61.67 2.00

23 Ujjain Dewas Dewas 25.56 4.00

24 Ujjain Ratlam Ratlam 55.08 3.00

25 Ujjain Mandsaur Mandsaur 49.64 3.00

26 Ujjain Ujjain Ujjain 100.00 1.00

27 Ujjain Neemuch Neemuch 86.93 1.00

28 Ujjain Ujjain Nagda 60.50 2.00

Source: Study Team’s Analysis based on development plan and satellite imagery


Page 77

Annexure 7: Division wise, town wise vehicle registration marks

S.No. Division District Town

Average No. of

Registered Vehicles

Annually

Vehicle

Registration

Marks

1 Bhopal Sehore Sehore 1830 1

2 Bhopal Bhopal Bhopal 79430 5

3 Bhopal Vidisha Vidisha 2130 1

4 Chambal Morena Morena 2315 1

5 Chambal Bhind Bhind 2015 1

6 Gwalior Gwalior Gwalior 26470 5

7 Gwalior Shivpuri Shivpuri 2320 1

8 Gwalior Guna Guna 2600 1

9 Gwalior Datia Datia 1185 1

10 Gwalior Ashoknagar Ashoknagar 1090 1

11 Hoshangabad Betul Betul 1520 1

12 Hoshangabad Hoshangabad Hoshangabad 2250 1

13 Hoshangabad Hoshangabad Itarsi <3000 1

14 Indore Indore Indore 90385 5

15 Indore Burhanpur Burhanpur 3025 2

16 Indore Khargone Khargone 1845 1

17 Indore Khandwa Khandwa 2850 1

18 Indore Dhar Dhar 1325 1

19 Jabalpur Katni Katni 2630 1

20 Jabalpur Jabalpur Jabalpur 29180 5

21 Jabalpur Chhindwara Chhindwara 2875 1

22 Jabalpur Seoni Seoni 1120 1

23 Rewa Satna Satna 3495 2

24 Rewa Rewa Rewa 3025 2

25 Rewa Singrauli Singrauli 2290 1

26 Sagar Sagar Sagar 3855 2

27 Sagar Damoh Damoh 1750 1

28 Sagar Chhatarpur Chhatarpur 1720 1

29 Shahdol Shahdol Shahdol 1565 1

30 Ujjain Dewas Dewas 5110 3

31 Ujjain Ratlam Ratlam 5235 3

32 Ujjain Mandsaur Mandsaur 2520 1

33 Ujjain Ujjain Ujjain 10530 4

34 Ujjain Neemuch Neemuch 3085 2

35 Ujjain Ujjain Nagda <3000 1

Source: Department of Road Transport, Madhya Pradesh


Page 78

Annexure 8: Division wise, town wise number of medium and large scale industries marks

S.No. Division District ULB's Name No. of medium and large scale industries

Industrial Activity Marks

1 Bhopal Sehore Sehore NA NA

2 Bhopal Bhopal Bhopal 19 4

3 Chambal Morena Morena 8 2

4 Chambal Bhind Bhind 0 0

5 Gwalior Gwalior Gwalior NA NA

6 Gwalior Guna Guna 6 2

7 Gwalior Datia Datia 1 1

8 Hoshangabad Betul Betul NA NA

9 Hoshangabad Hoshangabad Hoshangabad 2 1

10 Hoshangabad Hoshangabad Itarsi NA 3

11 Indore Burhanpur Burhanpur 4 1

12 Indore Khargone Khargone 9 2

13 Indore Khandwa Khandwa 1 1

14 Jabalpur Katni Katni NA NA

15 Jabalpur Jabalpur Jabalpur 17 4

16 Jabalpur Chhindwara Chhindwara 10 3

17 Jabalpur Seoni Seoni NA NA

18 Rewa Satna Satna NA NA

19 Rewa Rewa Rewa 6 2

20 Rewa Singrauli Singrauli 2 1

21 Sagar Damoh Damoh 2 1

22 Sagar Chhatarpur Chhatarpur 0 0

23 Ujjain Dewas Dewas 48 5

24 Ujjain Ratlam Ratlam 21 4

25 Ujjain Mandsaur Mandsaur 5 1

26 Ujjain Ujjain Ujjain 11 3

27 Ujjain Neemuch Neemuch 5 1

28 Ujjain Ujjain Nagda 0 0

Source: District Industrial Profile (2014-15) , MSME Development Institute, Indore


Page 79

Annexure 8 - Minutes of Meeting – Dewas Site Visit

Project- Selection of cities/towns for ring roads and bypass development in Madhya Pradesh

Place- Dewas, M.P.

Date- 25th February 2020

Time- 11:00 A.M.- 3:00 P.M.

Members in Attendance-

Mr. Arvind Chauhan

Mr. Lakhan Singh (Revenue Inspector)

Mr. Shekhar Solanki (Patwari)

Mr. K.K. Sheikh

Agenda-

Site visit for shortlisting Dewas town for ring road/ bypass development

Findings about Proposed Ring Road/Bypass as per Development Plan for Dewas 2031

The DP 2031 for Dewas has

proposed ring road/bypass as

shown in the map. The road

marked with blue colour in the

map is already constructed but

the road marked in red colour

is yet to be developed. The yet

to be developed road is

approx. 6.8 Km. The site visit

was made to explore the

ownership of land and land

acquisition rate falling under

land development.

The yet to be developed ring road passes through three villages Chandana, Mendki and Nagukhedi

The land falling under the proposed ring road is mostly agricultural. The land owned by the private owners

is 80% whereas the land owned by government is 20%

The land cost ranges from INR 1,76,00,000/hectare (towards the main road) to INR 35,00,000/hectares

(towards the village).

Presently, there is no action plan for development of missing part of ring road/bypass by any authority.

New Finding - Proposed Bypass by National Highway Authority of India

As stated by the authorities NHAI has already appointed a contractor for development of bypass road which is just

parallel to road which is missing part of ring road as per DP 2031. The road proposed by the NHAI is of 15 km

stretch which connects NH-3 to SH-18. It is at a distance of 12 km approximately from the existing settlement. The

distance of proposed bypass from the proposed ring road ranges from 6 km- 12 km.


Page 80

60% of the land falling under the proposed

bypass is under private ownership and

remaining 40% under the government

ownership

The cost of land ranges from 2

Crore/Hectare (towards main road) to 15-

35 Lakhs/Hectare (towards villages)

Presently, NHAI has acquired the land and

the work will start in a month’s time

Site Visit Pictures

Photo from point A Photo from point B Photo from point C

Photo from point D Photo from point E


Page 81

Annexure 9 – Information provided by NHAI, Regional Office, Bhopal

1. S. No. Name of Town Status of Ring Road

1 Ratlam No provisions of Ring Road at present by NHAI.

2 Neemach

3 Mandsaur

4 Dewas

5 Guna

6 Vidisha


1 Itarsi No Ring Road is proposed for Itarsi & Hoshangabad. However, combined bypass for Itarsi & Hoshangabad is under construction which is 33.5 Km length.

2 Hoshangabad


1 Jabalpur Bids for preparation of DPR & Feasibility Report for Jabalpur Ring Road of about 112 Km. length has been invited at NHAI-HQ, New Delhi. DPR Consultant is yet to be appointed.


1 Chhindwara Work of Rehabilitation and Up-gradation to 2-lane with paved shoulders and maintenance of Multai-Chhindwara-Seoni Section of NH-69A and Narsinghpur-Chhindwara-Saoner Section of NH-26B in Madhya Pradesh and Maharashtra including construction and maintenance of Ring Road and Connection Roads in Chhindwara Town has been completed in March, 2015 and currently under O&M Phase.


1 Morena Bypass in Morena Town has been proposed under 6-laning of Piprai to Nirwali Section of NH-3 under Bharatmala Pariyojana.


1 Sagar DPR for Bhopal-Sagar Road is under progress. Which is at Feasibility Stage, in which package-III (Starting near Berkheri @ Chainage 155+700 to Terminating point on NH-26 near Gadhphera @ Chainage 186+393) bypassing the Sagar Town towards left side of Bhopal-Sagar Section of NH-146.


1 Chhatarpur (i) At present on NH-39 i.e. Jhansi-Khajuraho 4 lane project is under implementation with a provision of Nowgaon-Chhatarpur bypass towards East direction, which covers half ring road. (ii)On North-East side another bypass is proposed in the Sagar-Kabrai 4 lane project on NH-34, which is under DPR stage. (iii) Further, the leftover South - West quarter bypass is also proposed by the PWD NH Division-Sagar for development of a two lane highway with paved shoulders, funded by MoRT&H. For this Land Acquisition is also taken up under section-3A of NH Act 1956. These three bypasses connectivity will make a ring road for Chhatarpur town.


1 Damoh No provisions of Ring Road at present by NHAI.

2 Rewa

3 Singrauli


Page 82

Annexure 9: Action Plan

Background

M/s KPMG and AIGGPA have prepared an Action Plan about the whole process and timelines.

Key Stakeholders

S. No

Deliverable / Stages

Description Contents of the deliverable Time T 0=letter

day

A - STAGE – 1 Selection of Consultant

1

Selection of

Consultant based

on QCBS.

Consultant to be

appointed for determining

the most feasible option

Preparation of RFP Document

Assist for Pre-bid meeting, Addendum, Corrigendum

Bid evaluation

Shortlisting of Consultant

T+30

B - STAGE – 2 Deliveries by Consultant 1) Inception Report

2 Inception Report

Inception report includes

the methodology,

development plans, Quality

Assurance

Project Appreciation

Approach Methodology

Task Assignment and Manning Schedule

Performa for data collection

Indicative design standards & cross section

Development Plans

Draft design standards

T+60

2) Feasibility Report

3

Feasibility Report

Feasibility report includes the methodology adopted and various kinds of necessary survey to be undertaken.

Overview of client organization/ activities

Methodology adopted for feasibility study

Socioeconomic profile of the project areas

Indicative design standards, methodologies, and specifications

Traffic surveys and analysis

Reconnaissance survey

Geotechnical Survey

Hydraulic and Hydrological Survey

T+130


Page 83

Materials Survey

Environmental screening/ preliminary environmental assessment

Initial social assessment/ preliminary land acquisition (LA) resettlement plan

Cost estimates

Most feasible ring road option study and Multi criteria Assessment Matrix.

Economic and financial analysis

Strip plan and Alignment

Alignment Options Study

Technical Specifications

Rate Analysis

Cost Estimates

Bill of quantities

3) LA and Clearances Report

4 Land Acquisition and Clearance Report

LA and clearance report includes various types of clearances required for the execution of the project.

Strip Plan: additional details added

Forest Clearance

Wildlife Clearance

Utility Clearances (Electricity, Water, Others)

Railway Clearances

Other clearances

Land Acquisition

T+165

STAGE – 3 1. Selection of Concessionaire

5 Selection of Concessionaire

The consultant shall prepare all required bid documents and technical schedules required for the bidding of the project to select the Concessionaire

Separate documents for each type of contract

Model Concession/Contract Agreements for PPP/ EPC projects,

Pre-bid meeting for the project

Signing of Concession Agreement with respective concessionaire

T+210

2. Detailed Project Report

6 Detailed Project Report

DPR would be used during project implementation by undertaking cost- benefit analysis.

Main Report

Introduction and Project background

Social analysis of the project

Reconnaissance survey

Traffic studies and demand forecast designs

Cost Estimates

Environmental Aspects

Economic and Commercial Analysis

T+315

3. Technical Schedules Report

7

Technical Schedules Report

Technical Schedules Report includes the type of bid documents and mode and terms of project execution.

Bid documents- EPC

Bid documents- BOT/PPP

Bid documents- other, if any

Draft concession agreement

Schedule D: Specifications & standards

T+315

4. Land Possession Report

8 Land Possession Report

It includes the details of the area where land is procured.

Village Level Summary Total private and public land being

acquired Status of disbursement on date of

receipt of land possession certificate Key issues being faced in completing

land acquisition, if any

Update land acquisition tracker with status of Notification

T+395


Page 84

Approach for Selection of 30 cities/towns

Department needs to follow the below mentioned methodology for the selection of 30 cities/towns:

Currently there are 378 ULBs in Madhya Pradesh and out of which 96 cities have master plan in place.

There needs to be a proper selection criteria/methodology to select 30 cities/town for further study and

survey. To ensure right cities/towns are selected, following enumerated steps should be followed:

Data Collection of Traffic census from MP road development, rural road development, NHAI

should be done to understand the current traffic scenario.

A detailed analysis of city’s/town’s master plan should be undertaken to understand the current

and upcoming industrial corridors, current and proposed greenfield and brownfield projects, city’s

current and projected growth, its connectivity with the highways and bypasses. Additionally, a

detailed analysis of future growth potential of cities should be undertaken keeping in mind the

following:

Livability: There are five fundamental aspects of great, livable cities: robust and

complete neighborhoods, accessibility and sustainable mobility, a diverse and resilient

local economy, vibrant public spaces, and affordability.

Industrial Development: Industrialization leads to urbanization by creating economic

growth and job opportunities that draw people to cities. Urbanization typically begins

when a factory or multiple factories are established within a region, thus creating a high

demand for factory labor.

NHAI passing through city: It is an important thing to note and demarcate the area

within the city which overlaps with the NHAI. In such areas city can develop bypasses

and the cost of development is shared with the NHAI thus reducing the burden.

Award Disbursement

Copies of notification published land possession certificate

Conclusions and Recommendations

GIS Map containing digitalized details of land parcels acquired with all relevant details

5. Construction of Ring Road

9 Financial Closure and Construction of Ring Road

Completion of Condition precedent of Authority and Concessionaire

Financial Closure of project

Signing of the Substitution Agreement between Concessionaire, Lender and the Authority

Construction of Road as per DPR submitted by Concessionaire

T+755

STAGE – 4

1. Appointment of Independent Engineer (IE) ( to be appointed after selection of Concessionaire)

10

Submission of Bid documents for Selection of Independent Engineer

RFP and Agreement

General terms of bidding

Criteria for Evaluation

Scope of Independent Engineer (IE)

Role of IE in Development period

Role of IE in Construction period

Reporting schedule

Inspection

Payment Structure and Schedule of Payment

Monthly Progress Report

T+240


Page 85

City Growth Corridors: A city growth corridor consists of two perspectives to develop

a city:

Neighborhood Development: It is done by identifying the potential areas for

development near to an already developed city thus decongesting the main city

and also enabling the nearby areas to grow, flourish and prosper.

Development around Core Strength: Developing a ring road and bypasses

keeping in mind the core strength of the city, say: tourism, IT hub, agriculture,

natural resources will ensure a long term holistic development.

Economic Impact Analysis: To support the aforesaid growth potential analysis, an Economic

Impact Analysis may also be undertaken. This analysis would help identify the key parameters

against which a city’s economic value-added may be assessed. A detailed analysis of the

following parameters may be undertaken:

Current Pucca Road Length

Current Contribution of City Revenue to State Revenue

Average Daily Migration from City to Bigger nearby City.

Current Level of Public Amenities available in the city/town like Sanitation, Water Supply,

Sewerage facilities and Septage management.

A detailed projection of Savings in Accidental Cost, Vehicle Operating Cost (VOC) Savings,

and Passenger Time Savings vis- a vis Social and Environmental Costs should be

undertaken in case a ring road comes up in that city/town.

Current Distance between habitable areas and Schools, Colleges, Hospitals should be

undertaken.

Land Assembly Models

In pursuit of spatial development, the government should not always be expected to spend money, or participate directly in building activities and development programmes. Private sector resources should also be appropriately mobilized for investment in development of urban centers. The role of private sector in the development process has been duly recognized nationally. As a general fiscal policy on resource mobilization, it would be desirable to have a proper mix of public and private sectors participation, both playing a symbiotic role in such a way that the public infrastructure programme is implemented through budgetary sources, while the facilities could be provided through private sector. A joint venture could also be explored where practical. Land Mobilization Land is most essential resource required for infrastructure development and service delivery. To play its role as service provider (/facilitator), the government requires land for developing new infrastructure projects or expansion of old ones to cater the needs of the increasing population. One of the ways government achieves this is through land assembly by from private land owners. Land assembly and development mechanism are undertaken for achieving optimum social use of urban land and to ensure adequate availability of land to public authority and individuals. Public private participation is achieved in land development through various techniques. Land assembly techniques prevent concentration of land in few hands and promote its efficient social and economic allocation. Some of the land assembly techniques also promote flexibility in land utilization in response to changes resulting from growing city. The various mechanisms to assemble and/or develop land are enlisted below:


Page 86

Land Acquisition: “Land Acquisition” means the acquisition of land for some public purpose by a government agency from individual landowners, as authorized by the law, after paying a government-fixed compensation to cover losses incurred by landowners from surrendering their land to the concerned government agency. The land acquisition process can be undertaken by the State or through private initiatives.

Bulk land acquisition method as a State Initiative: In this method, Master Plan is prepared for the entire area for different land uses and various urban activities. Land is developed in accordance to the planning norms for various uses/activities and is disposed-off accordingly. Bulk land is acquired from farmers by the development agency and compensation is paid to farmers/owners based on the provision of prevailing act.

Bulk land acquisition method with Private Initiative: To defray the cost of land acquisition some state governments and ULBs have developed models in which private sector acquire land by directly paying compensation to the affected families. A variety of models are in existence through which land is acquired for planning urban growth with the private partnership. The following alternate methods could be used to make the land acquisition more flexible and responsive to people in order to reduce the burden and conflict between landowner and government.

Private developers could be allowed to acquire land directly from landowners for township development. A joint venture financial model of urban development can be adopted as alternate to land development to fund

the acquisition and provision of facilities in new parcel of land. Separate set of compensations could be decided for acquisition of land for public or private projects.

Land Pooling: The land pooling technique is a mechanism for temporary pooling of different land for a unified planning and thereafter sub-dividing and collecting betterment charges to finance the infrastructure works. In addition, the local authority can secure land free of cost for public purposes and EWS housing after returning part of the developed land to original landowners. The reconstituted plots are allotted to the land owners in proportion to their original land holdings.

Land Reservations: The concept of Accommodation Reservation allows the land owners to develop the sites reserved for an amenity in the development plan using full permissible FSI/FAR on the plot subject to agreeing to entrust and hand over the built-up area of such amenity to the local authority free of all encumbrances and except full FAR/FSI as compensation in lieu thereof. The area utilized for the amenity shall not form part of FAR/FSI calculation. Reservations such as retail markets, dispensaries, etc. can be implemented in this way wherein local authority is not required to acquire the land by incurring expenditure on payment of compensation. In case of road widening and construction of new roads, the local authority can grant additional FSI on 100 % of the area required for road widening or for construction of new roads proposed under the development plan, provided the owner surrenders the land for widening or construction of new roads to the local authority free of all encumbrances and accept the additional FAR/FSI as the compensation in lieu thereof. This mechanism has considerably relieved local authorities from incurring huge expenses for the purpose of acquisition of such lands.

Transferable Development Rights: TDR is a technique of land development, which separates the development potential of a particular parcel of land from it and allows its use elsewhere within the defined zones of the city. It allows the owner to sell the development rights of a particular parcel of land in exchange of another land parcel. This entitlement is over and above the usual FSI available for the receiving plot in accordance with the prevailing laws and regulations, which entitles a landowner to construct additional built-up area on his existing building or vacant land. TDR is taken away from the zone and it is tradable which makes it different from Accommodation reservation. This is also generally used as a technique for redevelopment of inner-city zones and for reconstruction. TDR is a useful tool for re-development of land. However, it has its prospects and consequences as understood from the implementation experience in various cities in India. Hence it should be used carefully.

Transferable Development Rights (TDR): TDRs, primarily used in Greater Mumbai involves separating development rights from the ownership of land. Given the extremely high land prices, the housing supply in Mumbai can be increased and profits multiplied only if more habitable space can be built on less land. TDRs means a development right to transfer the potential of a plot designated for a public purpose in a plan (expressed in terms of total permissible built space calculated on the basis of Floor Space Index or Floor Area Ratio allowable for that plot) for utilization by the owner himself or by way of transfer by him to someone else from the present location to a specified area in the plan, as additional built space over and above the permissible limit in lieu of compensation for the surrender of the concerned plot free from all in cumbrances to the planning and development authority. With TDR, one can sell the rights of development of a specific land with exchange


Page 87

of money to another person. The developer can get additional built-up area to development in the zone of development. In Mumbai, a landowner whose land is acquired gets a TDR or monetary compensation. He can use this in his remaining land, on any other land owned by him or trade TDR in the open market. While the amount of TDR granted is equal to the plot area surrendered; if the amenity for which the plot is intended is also built and handed over free to the municipal corporation by the landowners, an additional TDR to the extent of the built up area of the amenity is allowed. TDRs can however only be used in designated receiving zones. These zones exclude sensitive and congested zones. The Government of Maharashtra extended the concept of TDRs to slum redevelopment schemes. The private developer re-houses the slum-dwellers free of cost in self-contained tenements of 269 sq.ft carpet area in multi-storied buildings. In return, the developer gets to construct a built up area equivalent to that constructed on the balance plot of land previously occupied by the slum and can sell it in the market. While the mechanism effectively reduces the land availability per slum dweller, it provides them formal housing with ownership, better housing conditions and in effect increases the total housing stock. About one lakh slum dwellers have been rehabilitated through such schemes. TDRs can be a viable option only under a stable and growing property market where the value of TDR would be greater than compensation. Extremely high land prices, limited land availability and vertical pattern of city development are the potential factors for implementing the TDRs.

Guided Land Development: The mechanism is used for the conversion of privately- owned land in the urban periphery from rural to urban uses. The approach is seen as a solution for adhoc, uncontrolled urban development in which informal housing and other development occurs with no regard to formal planning. It is also a response to the limited availability of urban land for Economically Weaker Sections (EWS) in urban areas. It is done in partnership with landowners who pay for the cost of servicing their land through donation of land for public infrastructure and payment of a betterment levy. The government can thus select the area for development and provide for the essential infrastructure. This paves the way of the entry of private developers in the area. Unlike the land pooling mechanism, the government need not decide the amount of land to be returned to the landowners at the end of the project. The approach is cost effective as the landowners of the designated area donate land for roads and right of way for infrastructure and public spaces, as well as pay a ‘betterment levy’ to meet the costs. The increase in the value of land due to the provision of infrastructure and conversion of land use from rural to urban justifies the imposition of betterment levy from the landowners. In areas with fragmented landownership, this method may need considerable time for building consensus. There is also a great deal of potential for default of the betterment levies by the land owners. This approach was applied in Chennai, under the World Bank-assisted Tamil Nadu Urban Development Project with Chennai Metropolitan Development Authority (CMDA) as the nodal agency. The Guided Urban Development Scheme in Tamil Nadu was a noteworthy effort to provide for housing supply for the marginalized sections. According to the approach, the private sector developer/land owner affected by the Urban Land Ceiling Act was encouraged to provide serviced sites for the EWSs for exemption from the Act. While acquisition of private land has its cost implications, there are several land based financing mechanisms4 that help use the land values to finance infrastructure development. Given the limited financial capability of the government, this is now becoming an important element of urban infrastructure finance in developing countries especially where cities are growing rapidly. Extensive literature has also developed on unlocking land values for financing infrastructure development. According to a recent Study by McKinsey (2014), that here is no land for affordable housing is a myth and the need is to unlock land at appropriate locations in the cities. The Study highlights six mechanisms that have been used around the world to unlock urban land for affordable housing. A judicious choice of innovative methods of urban land assembly mechanisms along with the financing mechanisms will be critical for achieving urban infrastructure development in general and meeting the housing sector targets in particular.

Fiscal Resource Mobilization

Availability of fiscal resources play an important role in providing quality and seamless social, civic, physical and economic infrastructure services to the public. Municipal finances are critical in initiating many urban and local governance projects, as financial resources’ strategic management plays a vital role in ensuring long-term sustainability of local services and infrastructure.


Page 88

There are diverse options of source finance available for developmental projects these days. These traditional and innovative sources of financing for projects at State and ULB level through funding and revenue sources are detailed below:

Taxes: State government authorises local governments by law, to collect taxes. Taxes are major source of revenue of urban local bodies. Property tax, profession tax and advertisement tax are major sources of revenue in local governments.

Charges and fees: Local bodies levy charges and fees for the services provided to citizens. These charges, for water supply, solid waste management, parking and other such services to cover the cost of undertaking the provision of services.

Grants and Subsidies: Grants and subsidies are generally given by central government to state/ local government or State to local government for development and provision of services to citizens.

Public Private Partnership: PPP is an agreement between public and private entity for providing services or infrastructure to citizens. It helps municipal authorities to shed some of its functions and evolve alternative institutional arrangement for the performance of such functions.

Loans from financial institutions: Public and private organisations come together to pool funds from public and investing it in financial assets. Such loans are for long term.

Funding by Bilateral and Multilateral Agencies: These are developmental agencies which provide soft loans for infrastructural projects. Almost all such loans are backed by sovereign guarantee and take long process to access.

Foreign Direct Investment: FDI is direct investment from company or entity into a foreign country.

Pooled Finance Development Fund (PFDF) Scheme of Government of India: PFDF is meant to provide credit enhancement grants to enable ULBs to access market borrowings to facilitate development of municipal infrastructure.

Municipal Bonds and Debentures: Municipal bonds and debentures are issued by ULBs and Infrastructure Funds, to general public or specific institutional investors to raise finance for developing physical infrastructure.

Deployment of PMU

Department need to establish PMU, This team would act as project support units for MPPWD.

Scope of Project Management Unit (PMU) as per below:

Prioritization of city for undertaking study on Ring road development through PPP ( A&M as per point no 5)

Assist Department in preparation of Tender document for Appointment of Consultant

Assist MPPWD in Review of Feasibility Reports submitted by the consultant

Assistance in approval of Feasibility Report.

Assistance in approval of Project by Directorate of Institutional Finance, Government of Madhya Pradesh

Preparation of Tender Document for appointment of concessionaire with the help of the selected Consultant

Preparation of RFP & draft CA for appointment of Concessionaire for development of the project.

Assist Consultant for Bid process management

Arrange the pre bid meeting on behalf of MPPWD

Prepare corrigendum and addendum for the respective projects.

Facilitating in bid management and post bid management services.

Assist consultant for Preparation of Tender Document for Appointment of Independent Engineer

Arrange the Pre bid Meeting on behalf of MPPWD


Page 89

Facilitating in bid management and post bid management services.

Progress Review of Ring road project by selected Concessionaire, Independent Engineer and ULBs

Address issues, if any, of ULBs and other stakeholders, Concessionaire and Independent Engineer at the time of implementation of project

Finalization of Timeline with the help of Monitoring toolkit of Project.

Guide MPPWD to review financial closure document submitted by Concessionaire.

Assist MPPWD by drafting letters for seeking environmental clearance and other Government approvals.

Assist stakeholders by calculating desired VGF from GoI and GoMP, where needed.

Assist MPPWD on day-to-day correspondences with stakeholders, GoI, ULBs, Concessionaire and Independent Engineer.

Next Steps for implementing the proposed Project

A) Support would be needed from the Department in arranging the following

documents/information: Report of Traffic census from MP road development, rural road development, NHAI

Master Plan of all 96 cities

List of Government Land available near Ring road ,Land data, land records, land use and FSI details to be provided by MPPWD (in enclosed format)

Payment for all survey of site to locate the land boundaries and also the extent of redevelopment work required as well as details of encroachment or any alternative survey cost to be incurred by MPPWD; payments if any to be made in future for cost of land use change or cost for additional FSI or any other amount payable to Development Authority to be paid by MPPWD.

Periodic Reviews with senior officers.

B) Resource Deployment For this work, a dedicated team of up to four resources would be required. This team would act as

PPP support units and would be deployed for 6 months for undertaking a gamut of activities including feasibility studies, tender documentations, followed by for implementation support & coordination with concessionaires and PMC over a period of 16 months. Required resources for PMU as per below:

PPP Expert

Finance Expert

Urban Planner

Senior nodal officer from MPPWD to be appointed to coordinate with the deployed resources

Logistical support for PPP support team (office space, local transport etc.)

The assigned resources will work on a Time and Material (T&M) model wherein they will support MPPWD (the ‘client’) with the ring road project. The team will work under the supervision and strict control of the client. However, the team will not sign any document on behalf of the client (including bid evaluation report).

Selection of Consultant

A consultant would need to be appointed who will assist the Department in undertaking the initial ground work. The

consultant would be expected to conduct a feasibility study which would include at least the following areas:

Background

Current traffic conditions leading to proposals for a [CITY] Ring road /by-pass


Page 90

Status of the current feasibility study

Study of master plan of ( CITY) and realignment of ring road as per availability of Government land

Primary objectives of the feasibility study

To determine the most feasible ring road option for improving conditions for through transit travel around

[CITY]

To secure funding assistance for the proposed by-pass

Secondary objectives of the feasibility study

To reduce traffic congestion within [CITY]

To open up more land for urban development

Potential role of the private sector under PPP arrangements

Structure of the refined feasibility study report

Tender document Appointment of concessioner

Tender document for appointment of IE

The following specific qualifications should be demonstrated in the feasibility study team

Strong team leader with proven management skills in rural and urban road feasibility studies.

Highway design engineering

Urban traffic management

Traffic modeling

Urban land development planning

PPP concession design for road projects

Environmental, social, and cultural heritage impact specialists.

Legal (especially for concessions and impact assessment requirements).


Page 91

References:

1. Saransh Rajeev Jain, Sandeep Verma (August 2018), “Analysis of construction in terms of Sustainability in Sagar city ring road project”, International Research Journal of Engineering and Technology (IRJET), Volume: 05 Issue: 08

2. Various Development Plans prepared by Department of Town and Country Planning, Madhya Pradesh retrieved from

http://mptownplan.nic.in/map.html

3. Ministry of Road and Transport (2017), Bharatmala Pariyojna, retrieved from https://archive.pib.gov.in/documents/rlink/2017/oct/p2017102503.pdf

4. District wise various industrial profiles prepared by MSME Development Institute, Indore

5. Manav Thadani, Karan Kapoor (2019) India State Rankings Survey, Hotelivate

6. Ministry of Urban Development, Government of India (2018), Liveability Standards in Cities

report on selection of 30 cities/towns for ring roads and

Documents