Government of Assam

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Assam Urban Infrastructure Development and Finance Corporation
Department of Housing & Urban Affairs
Government of Assam

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AUIDFCL

AUSP

Project Overview

India is undergoing rapid urbanization, with the urban population projected to reach 38.2% by 2036. However, urban infrastructure in many parts of the country, including Assam, remains inadequate.

Assam has a low urbanization rate of 14.3%, and its urban local bodies (ULBs) face significant challenges:

  • Limited and outdated water supply systems, serving only a fraction of the population.
  • No centralized sewerage systems, and unsafe sanitation practices.
  • Stormwater drainage covers only 30% of urban areas, causing frequent floods.
  • High vulnerability to climate change—more extreme rainfalls, floods, and droughts.
  • Very low municipal revenues and reliance on state grants due to minimal tax collection and user charges.

Recent efforts by the Government of Assam include:

  • Reforms in property tax assessment and collection.
  • Implementation of online payment systems and GIS-based property databases.
  • A 46% increase in tax revenue collection by FY2023 compared to FY2022.

The Assam Urban Sector Development Project (AUSDP) aims to tackle these critical issues by investing in sustainable, inclusive, and climate-resilient urban infrastructure, while supporting reforms for better governance and financial sustainability in ULBs.

Objectives

  • Improve urban infrastructure, especially in water supply and stormwater management.
  • Strengthen institutional capacity and support urban reforms for efficient service delivery.
  • Enhance climate resilience and environmental sustainability in project areas.
  • Empower women and marginalized groups through inclusive development strategies.
  • Establish a robust framework for integrated urban development in Assam.

Progress (as of December 2024)

  • Fact-finding mission conducted by ADB with Government of Assam.
  • Procurement activities initiated; bids published for multiple town water supply systems.
  • DPRs in various stages of preparation and submission.
  • Environmental and social safeguard documentation progressing.
  • Institutional arrangements (PMU & PIUs) being finalized.
  • Property tax reforms implemented, with 46% increase in FY2023 collections.
  • Gender and social inclusion planning in progress, with specific gender targets.

Project Components

  • Climate-Resilient Water Supply Systems
    • 6 water treatment plants (72 MLD capacity) and 800 km of distribution network.
    • Metered connections for ~78,000 households.
    • Real-time monitoring via SCADA and performance-based service contracts.
  • Stormwater Management in Guwahati
    • 8 km flood diversion channel and a 65,000 m³ retention pond.
    • Upgraded pumping stations and drainage networks.
    • Nature-based solutions and early warning systems.
  • Urban Reforms & Institutional Capacity Building
    • Development of Assam State Institute for Urban Development (ASIUD).
    • GIS-based property tax databases and digital service delivery platforms.
    • Capacity development for staff and gender mainstreaming initiatives.