| Project Detail |
The project will improve the municipal infrastructure and public services for 12 out of 20 urban local bodies (ULBs) along the main national highways in Tripura. In addition, the project will strengthen the capacities of those ULBs for integrated planning, including climate and disaster resilience, project management, operation and maintenance (O&M) of water supply and road, service delivery, and financial sustainability through improved resource mobilization and creditworthiness. The project also aims to upgrade key tourism sites that are accessible from selected project towns and build the capacity of the state tourism agency, the Tripura Tourism Development Corporation Limited (TTDCL), with a 10-year business plan and marketing strategy. This is the first urban project in India that has been prepared with project readiness financing.
Project Name Tripura Urban and Tourism Development Project
Project Number 53276-002
Country / Economy India
Project Status Approved
Project Type / Modality of Assistance Loan
The project will improve the municipal infrastructure and public services for 12 out of 20 urban local bodies (ULBs) along the main national highways in Tripura. In addition, the project will strengthen the capacities of those ULBs for integrated planning, including climate and disaster resilience, project management, operation and maintenance (O&M) of water supply and road, service delivery, and financial sustainability through improved resource mobilization and creditworthiness. The project also aims to upgrade key tourism sites that are accessible from selected project towns and build the capacity of the state tourism agency, the Tripura Tourism Development Corporation Limited (TTDCL), with a 10-year business plan and marketing strategy. This is the first urban project in India that has been prepared with project readiness financing.
Project Rationale and Linkage to Country/Regional Strategy
Aligned with the Government of Indias vision, Tripura has prepared a long-term plan to be a fully developed state by 2047, the 100th year of the countrys independence. The plan identifies a set of 251 cross-sector development indicators and specifically aims at making urban areas more livable, citizen friendly, sustainable, and resilient, and at enhancing the quality of life of its urban inhabitants. The state will also benefit from the Government of Indias support on urban sector policies, capacity-building, urban planning, implementation, and governance. In recent union budgets, the government emphasizes (i) creating walkable, safe, vibrant, and inclusive built environments that enhance livability; (ii) leveraging land use to augment domestic resources; (iii) providing more efficient financing; and (iv) reducing greenhouse gas emissions and implementing sustainable natural resource management to ensure urban development that is environmentally friendly and responsive to climate.
In 2022, about 35% of Indias population lived in urban areas, accounting for 60% of the countrys GDP. Tripuras urbanization increased from 26% in 2011 to 32% in 2022, almost at par with the national average. Inadequate urban infrastructure and services have impeded economic growth in major towns in Tripura. Most of the 20 ULBs (1 municipal corporation, 13 municipal councils, and 6 nagar panchayats [town councils])9 have low institutional capacity and a limited number of technical and financial staff. The Tripura Urban Planning and Development Authority (TUDA), under the Urban Development Department (UDD), is the nodal agency for urban development in the state. In terms of service provision, the average population covered by piped water supply in the 20 ULBs is 42%, which is below the Indian public health standards, and the service levels in the informal settlements are even lower with 36% connected to piped water supply. Water supply is intermittent with a usual duration of 4-6 hours per day. There is no sewerage system outside the capital city of Agartala, and most houses use septic tanks. In terms of financial sustainability, the state issued a water supply tariff notification with a volumetric tariff system in 2019. However, ULBs cannot implement the system as no meters are installed to measure water consumption. Hence, a flat rate tariff of
40 per month per household is currently applied, which is very low compared to the O&M costs. ULB revenue, in accordance with the Fiscal Responsibility and Budget Management Act, 2005 (amended in 2021) of the government of Tripura (GOT), has fixed targets to maintain the financial stability of the state. However, because of coronavirus disease impacts, some targets were revised downwards for FY2021 and FY2022.
The economic development and employment generated through tourism have not sufficiently been realized, primarily because of the constraints of lack of integrated tourism planning and inadequate infrastructure and services for tourists, especially the last-mile connectivity. Tripura has several tourist attractions, including religious pilgrimage sites, palaces, traditional arts, music, and unique handicrafts. However, tourist numbers have been low because of systemic constraints. With about 600,000 tourist arrivals in 2019, Tripura is ranked low at 32nd among Indian states for domestic tourist arrivals and 23rd for foreign tourist arrivals. While Tripura has the highest share of foreign tourist arrivals in the NER (41.4%) and recorded a good growth rate of 8% during 2009-2019, it has high untapped potential to become a major destination for both domestic and foreign tourists. The South Asia Subregional Economic Cooperation recognized the need to promote the subregion as a unique tourism destination and identified "Buddhist circuits" and "ecotourism based on nature and culture" as the comparative tourism assets. In 2021, the Department of Tourism issued a tourism policy which promotes Tripura as a premier tourism destination. The state has the TTDCL as the nodal agency for tourism development. Improving regional tourism circuits across borders requires cooperation with respective state governments to offer smooth travel. It also requires collaboration among various infrastructure departments within the state. The project will enable the TTDCL to work with TUDA for integrated tourism planning, provision of appropriate infrastructure and services, and addressing the systemic constraints to attract more tourists, especially for the premier segments as per the tourism policy.
Impact
(i)Clean and sustainable environment in ULBs achieved (Smart Cities Mission Guidelines)
(ii)Tripuras upgraded destinations attracting more tourists (Tourism Policy 20202025)b |
