Smart City Development - India (Republication of 2014 Post)

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 (A small town in India). 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 may have the potential to be developed as smart city.
 


Can Future of Sultanganj be like as shown in above Picutre?



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 Economy. 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

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

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).

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 Centre

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 in making a Vibrant Economy

 

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.    This small town in India has no or very few industries.

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

A view of opportunities for economic development for making Sultanganj as 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 Thousands [Low] to few Millions [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.





Keeping in view of 3 -5 millions tourists as potential buyers of following FMCG/PRODUCTS can be manufactured and marketed . 

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

5.    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 /Deoghar 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. Agriculture 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.


  Use of Heavy Machines in Farming 






·   9. Agriculture & Related Industries




·       Food Processing Zone – Vegetarian Food Processing Unit for 3 Million Tourist  will be big hit. 

Made in Sultanganj can be big selling point among Devotees. 






Vegetarian Snacks for Kaanwaria (Pilgrims or tourists)

Milk Processing Units

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




    10. Brick, Plywood, Jute & Other Industries in Sultanganj, Bhagalpur

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 and  Gods' Idols (Photo Frames) (e) Deepak (f) Candle (g) Water Pot (h) Clothe / Jute Bag

11. 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.

O http://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/news on Internet.

The pictures are used for representation purpose only and are taken from free download sites.

 

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