Smart City Development - Growth Opportunities in India

This post on ‘The Economic Affairs’ blog presents ideas for creation of economic development for small towns in India. In this case we look for the ways to build & strengthen the economy of Sultanganj, Bhagalpur. Sultanganj has advantage in tourism sector which attracts millions of tourists every year. The small town and a potential smart city has economy dependent on tourism and agriculture. Let us discuss building a vibrant economy based on these areas of strength. This case study can help in building similar cases for small town and smart city development, urban growth in India.

In fact with recent announcement to develop 100 smart cities in India, Sultanganj – Bhagalpur area has the potential to be developed as smart city.
 

The Indian economy is the world's tenth-largest by nominal GDP and third-largest by purchasing power parity (PPP). India is considered one of the fastest-growing economies in the world.

It is considered that Urbanisation is an indication of transformation from traditional economies to modern and progressive one. To achieve a higher and better urbanization one should think about creating and developing small towns in India.

However only 31 percent population lives in urban area. Let us consider case of America, which is world’s largest economy. America has 81 percent of its population living in urban area.

Small towns like Sultanganj can be developed and act as link to the development of rural economy. Emphasis can be on building basic infrastructure, facilitating tourism. Along with this education sector and agro based industries can be encouraged to support in building a sustainable economy. Sultanganj can act as satellite town for growing cities like Bhagalpur. It can also leverage the advantage of proximity with Bhagalpur, the silk city of eastern India. This will lead to creation of a vibrant economy and will achieve the potential of smaller towns like Sultanganj.

Small town growth story can also be developed around one of strength area like tourism. It can slowly scale up in other sectors like silk yarn manufacturing, agro based industries. It is gaining fact worldwide, that micro, small and medium industries are known as the engine of economic growth. MSMEs have the advantage of creating employment at low capital cost. Promotion of micro small and medium enterprises in small towns like Sultanganj can create equitable development.

Background of a small town – Explore ideas to create opportunities

Sultanganj, a small town in India, a Smart City in future….

1.   Sultanganj is a small town in Bihar, India, which has millions of pilgrims, devotees of God Shiva. Few million tourists visit this town every year. This town is known for Lord Shiva’s temple in water  of river Ganga. This ancient temple of Lord Shiva (Ajgabinath Temple) on top of hill at the bed of River Ganga at Sultanganj attracts several millions of pilgrims. Every year pilgrims who take Ganga water (Sacred Ganga Jal) from Sultanganj on their way to pray Lord Shiva in Deoghar (Babadham Temple).

2.  The town is also known to be the ancient place of famous Sage Jahanavi.

3.  Sultanganj is place of great antiquities. The town has contributed to the World’s largest Metal Buddha to the London Museum known as Sultanganj Buddha. Many other antiquities found are preserved in Patna museum. Sultanganj is said to have mythological linkages.

4.  The Vikramshila Gangetic Dolphin Sanctuary is India's only dolphin sanctuary spread over 50 km along the Ganges. This Dolphin sanctuary is located in Bihar's Bhagalpur district. The sanctuary is a 50 km stretch of the Ganges River from Sultanganj to Kahalgaon. The Gangetic dolphin is declared as the National Aquatic Animal of India which is found in Ganga Basin and the Vikramshila Gangetic Dolphin Sanctuary is established near the town (around Bhagalpur).

5.  According to a report from Times of India, Shravani Mela brings business boom, shows that Deoghar does a business of 2500 Crores in 30 days where 50 lakhs devotees visit the temple in Deoghar. Considering if only 30 lakhs tourists come to Sultanganj and spend only one fifth (20%) of what they spend at Deoghar, this could mean a business worth 300 Crores for Sultanganj.

Opportunity

Millions of tourists visit Sultanganj is an opportunity for this small town. In fact it includes international tourists from Nepal, Bhutan and other countries. Local authorities, communities can leverage the advantage of this and build more opportunities around tourism. Later this tourism sector can be used to scale up and create opportunities around other sectors as well.

In the small temple town of Sultanganj, authorities can focus on establishing micro, small and medium enterprises (MSMEs) to create more jobs. The authorities and local communities can build educational institutions to serve the people of this town. A centre for showcasing local arts & handicraft, named Manjusha art can be established. Indian small town, Sultanganj, can leverage the proximity with silk city Bhagalpur and encourage entrepreneurs for Seri culture and silk yarn manufacturing. Since Sultanganj has rural connection it can also develop agro based industries.

Another area of focus could be Aqua and Spiritual Tourism. As India’s only dolphin sanctuary falls under this stretch of Ganga River, local authorities can explore establishing of Aqua Tourism Centre for Dolphins.

Converting any place into a town with business opportunities and creating jobs will be possible if the tourism along with other economic activities is promoted spread over entire year. Building and creating opportunities for economic development of small towns like Sultanganj can focus on following sectors.

1.    Tourist center

2.    Expansion of Educational Institutions

3.    Yoga cum Meditation Centre

4.    Textile Industries / Silk Yarn Manufacturing

5.    Infrastructure

6.    Transport Center

7.    Commercial & Retail Center

8.    Agro Based Industrial Hub & Food Processing Center

9.    Brick, Plywood, Jute & related Industries

10. Aqua Park, Dolphin Watch Centre & Dolphin Theme Park

Challenges

1.    One of the challenges Sultanganj faces is that most of the tourists or 90% of the yearly tourists visit Sultanganj only in the month of Savan (month of July-August) that is mostly for one month.

2.    Has no or very few industries.

3.    Economy is dependent on agriculture and one month fair (Shravani Mela)

 A view of opportunities for economic development of a Smart City

A Chart of various potential investment model and return on Investment (R.O.I.)

Investment potential in Sultanganj and projected Return on Investment

Sr No	Focus Area	Development Model	Target Population / Audience	Investment	Return on Investment (R.O.I.)
1.	Tourism	Public / Private	30 Lakhs or 3 Million Tourists	Low to High	Very High
2.	Aqua Park / Dolphin Watch Center	Public / Private	More than 3 Million Visitors (Can attract International Tourists)	Medium To High	High
3.	Agro Based Industries	Private	Surroundings of Sultanganj covering 0.5 to 1.0 Million People	Medium to High	Medium to High
4.	Yoga  and Meditation Center	NGO & Religious  Bodies, Reputed   Institutions	1 to 3 Million People	Low	Not Applicable
5.	Textile / Silk Yarn Manufacturing	Private	Complements Bhagalpur Silk Industries & can have   same client base as Bhagalpur in addition to 3 million Pilgrims	Medium to High	Medium
6.	Industrial Hub	Private	Local surrounding areas and their economies	Medium	Medium to High
7.	Education Center	Public  Private	Surroundings of Sultanganj covering 0.5 to 1.0 Million People	Medium	Not Applicable
8.	Commercial Hub	Private	1 to 3 million people	High	Very High
9.	Infrastructure	Public / Private	1 to 3 million people	Very High	Very High
These investments may vary from few lakhs [Low] to few Crores [High] and may attract returns accordingly. 1 lakh = 0.1 Million; 1 Million = 10 Lakhs

1. Tourism in Temple Town of Sultanganj

Sultanganj, a growing eastern Indian town, has few million tourists visiting every year, includes international tourists. Sultanganj is also a place of great antiquities. What a better background for developing a town than this which has millions of tourists.

Taking a cue from ex-President Abdul Kalam about developing “Spiritual Tourism”, one can explore to build local economy at Sultanganj and create thousands of jobs. To achieve that, a multiyear tourism plan can be developed by local authority that would include road, transport and infrastructure development.

Let us look at ways that can be achieved to develop Tourism at Sultanganj.

1.    Restoring the beauty of Ajgavinath Temple which used to be surrounded by the holy river Ganges. It will be wonderful gift to the temple town. This will bring back the original beauty of Temple at middle of the Gages river bed and attract more tourists.

2.    Sultanganj is known of its antiquity. Can we think to develop the carvings on the Mountain of Murali Pahad, other exaction sites as tourist visit centres?

3.    Renovation of Palace of King (Krishnagarh Palace) either as museum or a hotel or Palace can be another tourist attraction.

4.    Have Shravani Mela inaugurated by renowned spiritual leaders like Dalai Lama participates in Buddhist functions

5.    Engage management consultants to do a study of Shravani Mela at Sultanganj can help finding innovating ideas for improvement and economic development.

2. Expansion of Educational Center

This temple town Sultanganj is very close to ancient Vikramshila University at Bhagalpur. Local authorities can take initiative to establish few more educational institutes and meditation centre. Initiatives can be taken for investors to open various educational institutions.

1. Establish few more Primary Schools, Middle Schools and High Schools

2. Establish more colleges with UG & PG Courses along with various Management Courses as below

a. CROWD Management (Place caters to Millions of tourists and can serve as practical ground for crowd management courses)

b. Agriculture Management

c. Tourism Management

d. Tourism Promotional and Guide Training Courses

3. ITI college (Industrial Training Institute) with trades like Tailoring, sculpting, Traditional Arts and Craft, Tailoring, Painting and traditional courses like electrical, Mason, Carpentry etc.

4. Agriculture College /Seri culture Development Course to promote Agro, Silk and related industries

5. Promote Manjusha Art and Cultural

6. Dolphin Research Centre (Establish a division of Research Center)

7. Few Study Centres of Bhagalpur University can be opened here

3. Yoga Cum Meditation Centre, Building Spiritual Tourism At Sultanganj

India is also known for its connectivity to spirituality, yoga and meditation.

Sultanganj has been traditionally associated with Jahanu sage, whose ashram was a center of learning and culture. With millions of tourists (read religious devotees) visiting Sultanganj, one can think of having Yoga and Meditation center.

On Ganges Island, Yoga cum Mediation Center can be developed. A branch of renowned Munger’s School of Yoga can be opened. Since there are lots of pilgrims visiting this place a Meditation cum Yoga center would help them learn Yoga and practice spirituality. This can further scale up for health management and naturopathy.

4. Textile & Silk Yarn Manufacturing

Bhagalpur is known as Silk City of Bihar. It is famous for Seri-culture, silk yarn manufacturing known as Tusser Silk. An estimated turnover of businesses in silk cloth is about 100 Crores per annum. Probably Bhagalpur cluster is the second highest in silk fabric production and exports after the Karnataka state (Mysore Silk Industry).

Encouraging and establishing a few Micros and small scale silk yarn manufacturing units in and around Sultanganj can help supplement tourism sector. A modest 10 percentage of silk yarn manufactured from Sultanganj can turn this town into active economic zone. This silk industry can easily find its customers in pilgrims and international tourists. Local authorities can provide additional incentives/ tax breaks for the new and existing textile/handloom units if they set up their units in Sultanganj.

With a target of 3 -5 million tourists they can produce following. 

(a) Bed sheet (b) Clothes for prayer (c) Towel (d) Silk Dress material 

(e) Cotton/Silk Dress materials (f) Tent (g) Carpet (h) Handkerchiefs (i) Other Silk / Cotton Cloths

Offset Printing Press business can flourish by making calendars, God Photos and other reading materials related to spirituality and it can be combined with printings on dress material.

5. Building Infrastructure for Urban Development in Sultanganj

Sultanganj can be developed into hub of commercial activities, retail shopping. Small businesses can flourish with provision of basic infrastructure. Investing into building of better infrastructure, bypass / circular road and other infrastructure can facilitate investment into tourism, agro based industries.

1.    Ensuring basic infrastructure need of the town Sultanganj is addressed. Roads, drainage, pedestrian walk ways are created with smooth flow of traffic during annual Shravani Fair.

2.    Development of circular road by passing the town Sultanganj can ease traffic.

3.    Completion of railway link connecting to Deoghar.

4.    A river front development at Sultanganj can enhance the beauty of this town and can attract international tourists.

5.    A Road Bridge – (1710 Crore Ganga Bridge) over Ganges connecting North-East Bihar can be used as Transport route for Agro and Jute Products.

6.    Build flyovers and bridges as necessary

7.    Construction of ample parking places

8.    Permanent and make shift public conveniences

9.    An Interstate Bus terminus to cater to public and private transport.

10. Develop a Transit Hub for People Moving from Sultanganj.

6. Transport Centre With Tour Packages Originating From Sultanganj

It can be the starting point for Lord Shiva’s Devotees with multiple pilgrim tour packages being offered at various affordability levels and serving as originating point for these Tour Packages.

Develop Sultanganj as Bus / Rail Transport Center connecting Bhagalpur, Munger, Khagaria, Deoghar, Patna and West

Bengal. If possible link this place with International locations like Nepal and Bhutan.

Here is one such idea which tour operators can think of.

Tour Packages

SOMWAR/ Monday Siva Darshan Tour Packages – [Tour Packages]

In fact, tourism authorities can provide a luxury bus services / luxury tour packages which can have a tie up with BABADHAM Temple of Deoghar, Jharkhand State to have a DARSHAN (visits)  on every Monday (SOMWAR – An auspicious day to pray Lord Shiva). The package can work like this. Devotees or Pilgrims can start on Monday morning by taking the sacred Ganga Jal and reach Deoghar same day to offer Ganga Jal on Monday. This bus service can even bring them back on the same day. This way, tour operators can encourage tourists or pilgrims of Lord Siva to visit the town throughout the year instead of only one month of the Year. 

Connectivity for Sultanganj

Sultanganj at present is well connected by road and rail. Recently building of an international airport at Deoghar has been announced. Starting of flight services at Bhagalpur has been in the news. This can be good news for international tourists planning to visit Sultanganj.

·         Rail – Sultanganj is on rail route from Kolkata to Patna and Delhi

·         Road – Sultanganj is connected with National Highway and State Highway

·         Air – Very near to Bhagalpur for air connectivity in future

7. Developing Commercial & Retail Hub With Hotels

Let us study a comparison of business activities of two towns. The following comparison chart shows the potential of commercial activities at Sultanganj. This can trigger a race for establishing residential hotels, shopping complexes etc among investors. This investment in this sector can be channelized for economic development of Sultanganj.

Potential of business which can be done at Sultanganj
Sr. No	Facts / Assumptions about Deoghar	Facts / Assumptions about Sultanganj
1	Deoghar is town with One of the most famous Temple of Lord Shiva. For more details refer Wikipedia http://en.wikipedia.org/wiki/Deoghar	This ancient temple of Lord Shiva, Sultanganj, attracts few millions of pilgrims who take water from here on their way to pray Lord Shiva in Deoghar.
2	Deoghar has 50 Lakhs Devotees visiting the temple in year 2012 as per Times Of India Report	Assume only 30 Lakh Devotees come to Sultanganj as compared to 50 Lakhs or 5 million pilgrims visiting Deoghar
3	Deoghar does a business of 5000 Rs per Devotee and 2500 Crore total as per TOI news report	Assumption of 1000 Rs. Spend per tourist can be equal to 300 Crores in Sultanganj
4	Deoghar does a business of 5000 Rs per Devotee and 2500 Crore total as per TOI news report	Assumption of 2000 Rs. Spend per tourist can be equal to 600 Crores  in Sultanganj
5	Deoghar has around 1000 Hotels and Lodges as per TOI report	No of Hotels in Sultanganj is less than 100 compare to 1000 in Deoghar (Pl. conduct a survey to validate this). In fact the number could be as less as 10 or 20.
	Click the link below for more details on Times of India. http://articles.timesofindia.indiatimes.com/2012-08-01/ranchi/32980084_1_devotees-beggars-deoghar-sp-subodh-prasad The above report from Times Of India provides a good data on economic activities in Deoghar

8. Agro Based Industries and Food Processing Industries in and around Temple town

Sultanganj can take a lead in attracting agro based industries and can act as link between rural and urban development.

A list of sectors listed can come up as this area is rich in agricultural products like maize, corn, rice etc.

·         Agriculture & related Industries

·         Food Processing Zone – Vegetarian Food Processing Unit for 3 Million People will be big hit. Made in Sultanganj can be big selling point among Devotees. 

·         Vegetarian Snacks for Kaanwaria (Pilgrims or tourists)

·         Milk Processing Units

o    (a) Peda/Sweets (b) Ice Cream (c) Butter Milk (d) Kulfi (e) Laddoos

o    Cluster of Sweet/ Chocolate/Bakery/ Prasad making units

·         Cold Storages for Vegetable and other products

·         Maize based food processing Units

·         Corn based food processing Units

·         Rice / Wheat Processing Units

·         Drinking water Unit

9. Brick, Plywood, Jute & Other Industries in Sultanganj

Brick, Plywood & Tiles Industries

Sultanganj and surrounding areas on bank of Ganges has many Kiln Brick industries. Encourage existing Kiln Brick Industries and promote tiles industries for various building construction industries need.

Investors & entrepreneurs can take advantage of existing Kiln Brick industries and convert this place into industrial hub catering to construction industries by producing bricks, tiles and plywood.

Small Scale Industries for following items catering to 3 million pilgrims

(a)Kaanwar (b) Agarbatti (c) Toys(d) Lord Shiva & Gods Idols (Photo Frames) (e) Deepak (f) Candle (g) Water Pot (h) Clothe / Jute Bag

10.    Dolphin Aqua Park & Dolphin Watch Centre  

A Quite Rope Way in and around Ganges – One of its kinds in world

·         One can explore the idea of establishing a study centre, Dolphin watch center and dolphin Swim center, Dolphin show outside or beside the Ganges bank.

·         One can explore the idea of having one Dolphin Rope Way Watch Centre over Ganges, which I am sure this could be one of its kinds in the world. People can watch Dolphin from Ropeway Air Vehicle without disturbing the natural stretch of dolphin sanctuary.

·         It can also establish an Artificial Dolphin Aquatic Park or Bank having offers like Swim with Dolphin and Dolphin Show features, Dolphin Circus. Refer the various links below which can help explore these possibilities.

ohttp://www.oceanpark.com.hk/html/en/park-experience/unique/dolphin.html

o    http://www.discoverycove.com/

o    http://www.marineland.net/

·         To know more about Dolphin shows (Pleas click the links)

o    http://www.youtube.com/watch?v=D8AvEstX_3E

o    http://www.youtube.com/watch?v=BdCtLI5m6UQ

Disclaimer:

The views expressed are of the personal view of author. This blog has references of various website and other related information on Internet.

This post discusses about ·         Economic development for small towns in India. ·         Investment opportunity for creating smart cities in India. ·         Multi-million dollar opportunity to develop smart cities and small towns

French

Ce message traite sur • Le développement économique pour les petites villes en Inde . • Opportunité d'investissement pour la création de villes intelligentes en Inde . • Multi- millions occasion de dollars pour développer les villes intelligentes et les petites villes

Chinese

这篇文章讨论了 •经济发展中的印度小城镇。 •在印度建立智能城市的投资机会。 •多亿美元的机遇，大力发展智能城市和小城镇

German

Dieser Beitrag diskutiert über • Wirtschaftliche Entwicklung für kleine Städte in Indien. • Investieren für die Erstellung von Smart Cities in Indien. • Multi- Millionen-Dollar- Gelegenheit, intelligente Städte und Kleinstädte zu entwickeln

Japanese

この投稿は約議論 ·         インドの小さな町のための経済発展。 ·         インドでスマートシティを作成するための投資の機会。 ·         数百万のスマート都市や小さな町を開発するためのドルの機会

Italian

Questo post discute su • Lo sviluppo economico per le piccole città in India . • Opportunità di investimento per la creazione di città intelligenti in India . • Multi - milioni di dollari opportunità di sviluppare le città intelligenti e piccoli centri

Arabic

تناقش هذه آخر حول • التنمية الاقتصادية للمدن الصغيرة في الهند. • فرصة استثمارية لإنشاء المدن الذكية في الهند. • متعدد مليون فرصة الدولارات لتطوير المدن الذكية و المدن الصغيرة

Russian

Это сообщение обсуждает о • Экономическое развитие для малых городов в Индии . • Инвестиционные возможности для создания интеллектуальных городов в Индии . • Multi- миллион возможность доллар развивать интеллектуальные и малых городах

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Este post discute acerca • El desarrollo económico de las pequeñas ciudades de la India . • Oportunidad de inversión para la creación de ciudades inteligentes en la India . • Multi - millones de dólares oportunidad para desarrollar ciudades inteligentes y ciudades pequeñas

Urdu

اس پوسٹ کے بارے میں بحث بھارت میں چھوٹے شہروں کے لئے اقتصادی ترقی • . • بھارت میں ہوشیار شہروں پیدا کرنے کے لئے سرمایہ کاری کا موقع . ہوشیار شہروں اور چھوٹے شہروں کی ترقی کے لئے • ملٹی ملین ڈالر کے موقع

Swedish

Detta inlägg diskuterar om • Ekonomisk utveckling för små städer i Indien . • Investerings möjlighet för att skapa smarta städer i Indien . • flera miljoner dollar möjlighet att utveckla smarta städer och små städer

Photo Gallery of Sultanganj.