CONTENTS Index List of Boxes ii List of Tables iii List of Figures iv Abbreviations vi Acknowledgements vii Executive Summary viii 1. INTRODUCTION 1 1.1Background 1 1.2 Relevance of Study 1 1.3 Research Questions 2 1.4 Aim & Objectives 3 1.5 Methodology 3 1.6 Scope & Limitations 4 1.7 Report structure 4 2: LITERATURE REVIEW 6 Section A: Urbanization & Governance in India 6 2.1 Introduction 6 2.2 Municipal Governance & Decentralization Initiatives in India 6 2.3 Finances of ULBs 8 Section B: Urban programmes in India 10 2.4 Water & Sanitation Sector allocations under different Five year Plans 10 2.5 Review of Major Urban Infrastructure Schemes 11 Section C: Jawaharlal Nehru National Urban Renewal Mission 12 2.6 Introduction 12 2.7 Implementation of JnNURM Mission Story So Far 14 Section D: Water & Sanitation Sector Reforms under JnNURM 17 2.8 Present Status of Water & Sanitation 17 2.9 Water & Sanitation Reforms 19 3: STATE LEVEL MACRO LEVEL ANALYSIS OF REFORM IMPLEMENTATION MECHANISM 33 Section A- An Introduction to Present Case Study: Andhrapradesh Municipal Administration 33 3.1 Governance & Institutional Arrangements 33 3.2Water Sanitation Scenario in Andhra Pradesh 36 3.3 Composition and Trends in Municipal Finance 38 Section B- Current Development Approaches in Urban, Water & Sanitation Sector 39 3.4 Review of ongoing Programmes in Andhrapradesh 39 Section C-Review of UIDSSMT Component & Reform Implementation Mechanism of Andhrapradesh 45 3.5 JnNURM Sanctioned ULBs & Schemes 45 3.6 Institutional Framework 48 3.7 State Level Initiatives in Implementation of Reforms 51 3.8 Summary of Initiatives and Issues at State Level 56 3.9 Suggestions at State level 58 4: INTRODUCTION TO CASE STUDIES 60 Section A: Mangalgiri Town 60 4.1 Introduction 60 4.2 water & sanitation scenario 62 4.3 Proposed projects under UIDSSMT 64 Section B: Bhongir (Second grade Municipality) 65 4.4 Introduction 65 4.5Water & Sanitation Scenario in town 66 4.6 Proposed projects under UIDSSMT- Investments in Water Supply 68 Section C: Nalgonda (First grade Municipality) 69 4.7 Introduction 69 4.8 Water & Sanitation scenario in town 70 4.9 Proposed projects under UIDSSMT- Investments in Water Supply 71 5. COMPARATIVE ANALYSIS OF THREE URBAN LOCAL BODIES 72 5.1 Financial performance of Water & sanitation Sector 73 5.2 Service Delivery anlaysis 74 Developing common Indicators for Services 74 5.4 Implementation of Reform at ULB level 77 5.5 Steps taken and Issues at ULB Level in Implementation of Reforms 78 5.6 Summary of Key Finding & Steps taken in Implementation of Reforms 80 5.7 Suggestions at ULB level 82 References 84