An autonomous research institute under the Ministry of Finance


Norms for Provision of Core Civic Service and Octroi for Andaman & Nicobar Islands

Publication date

Jan, 2007


Report submitted to the Andaman and Nicobar Administration


O. P. Mathur, Kala S. Sridhar


The objectives of the study were to develop norms and standards for core civic services comprising safe drinking water, sanitation, including sewerage, road maintenance and street lights for urban areas; work out financial implications of these norms; and study the existing octroi system in the Andaman and Nicobar Islands and finally recommend specific actions for restructuring the invoice-based octroi. The average consumption of water at the time of the survey was 90 litre per capita daily (LPCD). The results of the household survey (desired 130 LPCD) broadly concur with the ideal supply standard (of 135 LPCD) proposed by the National Commission on Urbanisation for urban areas. Two scenarios for norms regarding PBMC's water supply: increase water supply by 50 LPCD; increase water supply by 100 LPCD are considered. If increases in Operations and Maintenance and establishment expenditure alone were to be financed by user charges, then the increase required in the user charge is an average increase of Rs.73 per month per household (for an extra 50 LPCD) or an increase of Rs.146 per month per household (for an extra 100 LPCD). The recommendations list five proposals for restructuring octroi. The study team found that all proposals for octroi restructuring yield greater net revenue to the PBMC than its net current revenue (for 2004-05) which was Rs.223 million.:

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