Page 342 - Low Carbon Development in China and India
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70 per cent that gets collected, only 12.45 per cent is treated or 3.2
processed. It is observed that smaller towns, where the main activity
is solid waste management (SWM), spend up to 70 per cent of their
budget on the same. Metropolitan cities, on the other hand, due to
a wider resource base and the responsibility of providing a larger
number of services, spend only around 10 per cent of their budget on
solid waste management. A majority of urban centres, however, spend
5–40 per cent of their budget on solid waste management. This is
approximately between INR 50 to INR 250 (approx. USD 0.83 to
USD 4.17) per capita per year. It is observed that a large proportion of
this expenditure is incurred for salaries and only a limited amount is
spent on operation and maintenance (O&M) and development works.
One of the priority areas within first phase of JNNURM, which
ended in March 2014 and is now being replaced by the Atal Mission for
Rejuvenation and Urban Transformation (AMRUT), was solid waste
management. Since the inception of JNNURM in 2005–06, Indian
cities have witnessed widespread infrastructure development linked
to municipal services. One of the sets of benchmarks established by
the MoUD for Smart Cities also talks about achieving 100 per cent
efficiency in collection and treatment of waste water and sewerage
network. It also ambitiously targets at achieving 100 per cent collection,
segregation, and recycling of solid waste.
Another new initiative with the target to make the country clean
by 2019 is the Swachh Bharat Mission launched by the Government
of India on October 2, 2014. Its specific objectives include elimination
of open defecation, modern and scientific municipal solid waste
management, and eradication of manual scavenging, among others.
The estimated cost of implementation of SBM (Urban) based on
unit and per capita costs for its various components is INR 62,009
crore (approx. USD 10.33 billion). The Government of India’s share,
as per approved funding pattern, amounts to INR 14,623 crore
(approx. USD 2.43 billion). In addition, a minimum additional amount
equivalent to 25 per cent of GoI funding, amounting to INR 4,874 crore
(approx. USD 0.81 billion) shall be contributed by the States as State/
ULB share. The balance fund is proposed to be generated through
various other sources of fund which are, but not limited to:
(a) Private sector participation
(b) Additional resources from State government/ULB
(c) Beneficiary share
(d) User charges
(e) Land leveraging
Chapter 2 Innovative Financing for Low Carbon Development 307
processed. It is observed that smaller towns, where the main activity
is solid waste management (SWM), spend up to 70 per cent of their
budget on the same. Metropolitan cities, on the other hand, due to
a wider resource base and the responsibility of providing a larger
number of services, spend only around 10 per cent of their budget on
solid waste management. A majority of urban centres, however, spend
5–40 per cent of their budget on solid waste management. This is
approximately between INR 50 to INR 250 (approx. USD 0.83 to
USD 4.17) per capita per year. It is observed that a large proportion of
this expenditure is incurred for salaries and only a limited amount is
spent on operation and maintenance (O&M) and development works.
One of the priority areas within first phase of JNNURM, which
ended in March 2014 and is now being replaced by the Atal Mission for
Rejuvenation and Urban Transformation (AMRUT), was solid waste
management. Since the inception of JNNURM in 2005–06, Indian
cities have witnessed widespread infrastructure development linked
to municipal services. One of the sets of benchmarks established by
the MoUD for Smart Cities also talks about achieving 100 per cent
efficiency in collection and treatment of waste water and sewerage
network. It also ambitiously targets at achieving 100 per cent collection,
segregation, and recycling of solid waste.
Another new initiative with the target to make the country clean
by 2019 is the Swachh Bharat Mission launched by the Government
of India on October 2, 2014. Its specific objectives include elimination
of open defecation, modern and scientific municipal solid waste
management, and eradication of manual scavenging, among others.
The estimated cost of implementation of SBM (Urban) based on
unit and per capita costs for its various components is INR 62,009
crore (approx. USD 10.33 billion). The Government of India’s share,
as per approved funding pattern, amounts to INR 14,623 crore
(approx. USD 2.43 billion). In addition, a minimum additional amount
equivalent to 25 per cent of GoI funding, amounting to INR 4,874 crore
(approx. USD 0.81 billion) shall be contributed by the States as State/
ULB share. The balance fund is proposed to be generated through
various other sources of fund which are, but not limited to:
(a) Private sector participation
(b) Additional resources from State government/ULB
(c) Beneficiary share
(d) User charges
(e) Land leveraging
Chapter 2 Innovative Financing for Low Carbon Development 307
