Benchmarking for excellence in urban services

The challenges of the urban sector in India are growing rapidly, and government agencies at various levels are taking steps to address the gaps in service delivery. One of the important steps towards this is introduction of appropriate systems for information management, performance monitoring, and benchmarking.

      Benchmarking is now well recognized as an important mechanism for introducing accountability in service delivery.Sustained benchmarking can help Urban Local Bodies (ULBs) and utilities in identifying performance gaps and effecting improvements through the sharing of information and best practices, ultimately resulting in better services to people. Recognizing its importance, the Ministry of Urban Development (MoUD), Government of India constituted a Core Group on Benchmarking under the chairmanship of Joint Secretary (UD), MoUD with the aim of developing a framework for water supply, wastewater management, storm water drainage, solid waste management services and urban transport. This group has finalized a Handbook of Service Level Benchmarks (SLB), which provides (i) a common minimum framework for monitoring and reporting on service level indicators, and (ii) guidelines on how to operationalize this framework in a phased manner.

MoUD has recently released the Handbook of Service Level Benchmarks which it hopes will facilitate a shift in focus in ULBs and utilities from infrastructure creation to delivery of service outcomes. In keeping with its progressive approach to sector reform, Government of India has extended implementation support for the SLB framework in about 26 pilot cities so that they can serve as role models for other cities across the country.

Through the Pilot Initiative, the MoUD made an attempt to address institutional and operational aspects for ensuring long term sustainability of the benchmarking activity. Accordingly, the initiative  encompassed two aspects (1) Collation of performance data using the indicators and methodologies outlined in the SLB Handbook; and (2) Implementation of appropriate management information systems at the city (and if required at the state) level to support provision of this data on an on-going basis.

In addition, the pilot initiative also facilitated development of Performance Improvement Plans using information generated by the benchmarking exercise. By doing so, it was expected that ULBs and utilities will begin to integrate the benchmarking into their decision processes leading to improved quality of planning and project development.

The Pilot initiative covered the critical components of a benchmarking system, namely – data sources, performance indicators, targets and institutional arrangements. It also addressed both, performance monitoring for internal decision making and reporting to higher levels of government and external stakeholders.

There is a general acknowledgement of the prevalent capacity constraints at the ULB level. In order to address the same, MoUD in partnership with other development agencies, proposes to extend technical and financial assistance for training, capacity building, design and implementation of requisite information systems at the city/ULB level.

Mandatory Requirement under 13th Finance Commission

The thirteenth finance commission recommended that the urban local bodies (ULBs) in India accord priority to service delivery and shall put in place benchmarks for essential civic services. As part of this condition, the ULBs should notify every year the standards to be achieved by the end of the next fiscal year and publish the same in the State Gazette.  It also suggested that the ULBs should follow the consultative process of benchmarking as outlined in the Handbook on Service Level Benchmarks of the Ministry of Urban Development, Government of India. 

 The Ministry of Urban Development, Government of India has formulated benchmarks for key performance indicators for water supply, waste water/sanitation, solid waste management and drainage to enable cities to measure and improve their own performance vis-à-vis the benchmarks. It is now well recognized that a sustained process of benchmarking comprising (i) developing comprehensive and disaggregated baseline data on service levels (ii) information system improvement to enhance quality of planning and (iii) performance improvement plans to attain new standards , is critical  to ensure optimal use of investment and to sustain outcomes in service delivery. Benchmarking enables urban local bodies to identify strengths and weaknesses in their own practices and to reach out and learn from the practices of others to achieve excellence in service delivery. It also increases accountability and transparency to citizens.

It is expected that future investment decisions on infrastructure provision will prioritize cities that undertake benchmarking. Further, the performance grant under 13th Finance Commission stipulates that states establish and conform to service level standards for basic services. The process of undertaking benchmarking entails development of institutional capacities and skills.
In the context of the recommendations of the 13th Finance Commissions, the Ministry of Urban Development, GoI proposes to rollout service level benchmarking programme and build capacities across states and ULBs specifically, Municipalities and Municipal Corporations. This would enable the States to access performance grants recommended by the 13th FC. 

As a part of the SLB framework, 28 service level performance indicators were identified covering four basic urban services, viz., Water Supply, Sewerage Management, Solid Waste Management and Storm Water Drainage.