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Economies and Diseconomies-with reference to Bhubaneswar city

Economies and Diseconomies-with reference to Bhubaneswar city

(ABSTRACT)

By

G.N.Bag, Associate Professor (Economics)


Dreams Business School, Cuttack
Sanjay Kumar Jena, Asst. Prof. (Marketing & Strategy)
Innovation Business School, Bhubaneswar
Seba Mohanty, Asst. Prof. (Economics)
Innovation Business School, Bhubaneswar

Seminar paper at National conference


Organised by
Xavier Institution of Management
Bhubaneswar, Odisha
On 14th -16th December, 2010
Economies and Diseconomies-with reference to Bhubaneswar city 1

Abstract

The phenomenon called development is a combination of physical and mental changes. Social

development is the part of such a phenomenan or edifice that constitutes economic, political as

well as social well-being of the populace of the land of course. Physical conditions of people in

fact shape the mental kaleidoscope. The Indian living conditions are distinctly different in the

villages from the towns providing thereby distinct environment in villages which sometimes

stands in contrast to that in the towns. However a sustainable socio-economic development is

sine quo non in the present context of our towns or villages, if at all, we mean a change in the

conditions of people in India at large. Within a span of 60 years, Bhubaneswar, the capital city of

Odisha, situated in the eastern coastal belt of India and south- west of Mahanadi River has been

rated as one of the emerging cities of India. With the economic liberalization policy adopted by

the Govt. of India in the 90’s, Bhubaneswar received large investment in the field of

telecommunication, IT and higher education, particularly Management and Engineering. Retail

and real estate have also emerged as big players. Recent times we have seen a large scale retail

chains such as Reliance, Vishal Mega Mart, and Big Bazar had open outlets in Bhubaneswar.

Large corporate like DLF, Universal and Reliance industries have entered the real estate market

in the city. The presence of economies of scale has undoubtedly, been exploited considerably by

the corporate giants, transport and communication industries in Bhubaneswar. Thus the socio-

economic conditions of people in and around Bhubaneswar city are showing a positive change

called development. Very recently, the BMC confessed that it had no plan to accommodate a

migrant population of the city in its original plan over 10 years ago. The components of

economies of scale such as Technical economies of scale , Marketing economies of scale,

Managerial economies of scale, Financial economies of scale , Network economies of scale


Economies and Diseconomies-with reference to Bhubaneswar city 2

together indeed catapulted Bhubaneswar from a mere town to a city, rated among the best in

India.

Despite its growth the city of Bhubaneswar has a dark spot that stands out solely. A

common refrain can be heard from all cross- section of the society about the public grievances on

safety of soft gender at night, menace of anti- social elements at different time and location, lack

of control over traffic, air and water, lack of coordination between the civic bodies, and lack of

better understanding and tacit rapport between the people and the government for which the

economies of scale slowly heading towards diseconomies of scale in certain areas of activities.

Yes, attempts are being taken to sustain the economic growth by reaping the economies

of scale in patch in the city. But it is also true that we must stretch our leg as per our blanket

allows. A long rope has also an end. Our policy makers must be awaken up to see the ugly realty

of other metropolitan cities and make necessary arrangements for the betterment of

Bhubaneswar by snatching only the economies of scale and prevent the entry of diseconomies of

scale into the life of the inhabitants of Bhubaneswar forthwith.

---------------------------------
Economies and Diseconomies-with reference to Bhubaneswar city 3

Economies and Diseconomies -with reference to

Bhubaneswar City

By
Dr.G.N.Bag, Associate Professor (Economics)
Dreams Business School, Cuttack
Sanjay Kumar Jena, Asst. Prof. (Marketing & Strategy)
Innovation Business School, Bhubaneswar
Seba Mohanty, Asst. Prof. (Economics)
Innovation Business School, Bhubaneswar

Seminar paper at National conference


Organised by
Xavier Institution of Management
Bhubaneswar, Odisha
On 14th -16th December, 2010
Economies and Diseconomies-with reference to Bhubaneswar city 4

Economies and Diseconomies -with reference to Bhubaneswar City

INTRODUCTION

Economic development generally spells out a part of development aspects of human life. Overall

change of human life depends upon economic development combined with socio-cultural

development that indeed catapults human being to a height of desired destination, which is called

Gross Domestic Happiness by the Bhutanist Prime Minister Lyonpo Jigme Thinley in the recent

past.

Social Development is the edifice as well as the end product of life where physical

conditions of human life take refuse. The Indian living conditions are different from the living

conditions of other part of the world altogether. The economic development of Indian people has

been influenced by the socio- cultural life of its people who come from different cultures and

traditions and of course from different faiths at large. However, a sustainable economic

development is imperative and thereby finds a commonalities that have to be inferred through

different programmes and activities which generally occur in the life of Indian people. The

presence of economies of scale has undoubtedly, been exploited by the corporate giants, in the

recent past because of the induction of liberalization policy of India, since 1990. The gamut of

new economic policy of India has been aptly felt and moving undulating towards its length and

breadth.

In the recent years Indian cities have continued to liberalize business regulations

and Bhubaneswar, the capital city of Odisha is not an exception to it. In fact,the elements of

Bhubaneswar economy ranges from agriculture, horticulture sericulture, metal and minerals

sector, engineering and agro-based industries to information technology enabled services as well
Economies and Diseconomies-with reference to Bhubaneswar city 5

as handloom and tourism industry. The city is a home of a number of engineering, medical,

management, pharmaceutical, hotel management, fashion designing and other general colleges.

Retail and real estate have also emerged as big player. Recent times we have seen large scale

retail chains such as Reliance, Vishal Megamart, Big bazaar, Pantaloons, New leaf, Habib’s,

Barista and a number of both national and international brands of retail outlets in the city. Large

corporations like DLF Universal and Reliance Industries have entered the real estate market in

the city. DLF Limited is developing an Infopark spread over an area of 54 acres (220,000 m) in

the city. Expanding its business portfolio the Kolkata based Saraf group, promoters of Forum

Mart shopping mall is constructing another shopping mall named Forum Lifestyle Mall a

550,000 square feet mall in Bhubaneswar with 1,200 car parks.

Moreover the Odisha Government under Odisha Technology Mission initiated a

proposal for further progress of Bhubaneswar. After some rounds of discussion, a memorandum

of understanding was signed as per which “The Housing and Urban Development Department”

of Odisha Government handed the job of preparing “Perspective Plan Vision - 2030” and

“Comprehensive Development Plan for Bhubaneswar-Cuttack Urban Complex” to the

Department of Architecture and Regional Planning of IIT, Kharagpur to make Bhubaneswar a

world class urban center with all major IT and retail outlets. This was done by and large to

contribute to the Bhubaneswar development.

Comprehensive Development Plan has emphasized for development

of new housing colonies and new integrated townships in the extensive development zones.

Bhubaneswar Development Authority (BDA) has taken steps to develop a satellite township over

an area of about 1200 acres in Jagasara, Jagasarapatna and Madanpur mouza of the Bhubaneswar

Development Plan Area (BDPA). To make ecological balance and to provide a green
Economies and Diseconomies-with reference to Bhubaneswar city 6

environment to the citizens of the capital city, BDA maintains large number of parks in the city

including Biju Patnaik park, Indira Gandhi park, Mahatma Gandhi park and Buddha Jayanti park

to name a few. The budget for the year 2010-1011 of BDA has been substantially enhanced to

Rs. 225 crores from the revised estimates of Rs. 107 crores for the financial year 2009-10.

Indeed, Housing and Urban Development strives to bring about both qualitative

and quantitative changes in the living standard of the urban people by putting emphasis on

strengthening urban infrastructure, viz: roads with drain, watersupply and sewerage, efficient

solid waste management, development of public amenities including public park, urban greenery

conservation of water bodies, urban reforms and e-governance, urban planning, provision of

housing in urban area and especially for the urban poor, skill up-gradation and financial support

to the urban poor etc. through different schemes and practices. Bhubaneswar Municipal

Corporation (BMC) has prepared a Detailed Project Report (DPR) for the management of solid

waste in the corporation area with a total project cost of Rs. 23.68 crores and DPR board for

availing central assistance.

It is a matter of fact that drive, ambition, determination and the will to succeed are

the prime motivators for people of Bhubaneswar city. However, the dark spot that is looming

over the horizon of Bhubaneswar city is sure to come, if not now, very soon. The economies of

scale have been stretched up to a point of no return as far as the work and programmes of BDA

and BMC are concerned. “The minimum average cost point can be extended only through

innovation, use of proper technology, and optimum managenment of available human

resources.” These activities call for massive investment in the field of transport and

communication, education, health and social infrastructure. Lately BMC and BDA are striving

just to maintain decorum only and not to make the necessary arrangement to stretch the average
Economies and Diseconomies-with reference to Bhubaneswar city 7

cost curve to its minimum to get the best outcome possible. Candidly speaking, a number of

people in Bhubaneswar live in slums despite its growth. Unless the issue of slum is addressed in

the right earnest, many development-oriented initiatives may not be successful as expected.

Migration from rural areas, especially from northern districts of Andhra Pradesh has led to the

growth of slums which are a major challenge to the city’s growth. The slum dwellers work as

auto rickshaw drivers or small vendors but this is not true for every one. A lot of them are

unemployed and are being drawn in to crime. A common refrain can be heard from all cross-

section of the society about the public grievances on safety of soft gender at night, menace of

anti-social elements at different time and location, lack of control over traffic, air and water, lack

of coordination between the civic bodies, and the lack of understanding and rapport between the

people and the Government for which the economies of scale slowly heading towards

diseconomies of scale in certain areas of activities.

The main problem of the city is transport as the quality and length of

road have not been increased with respect to the rise in number of vehicles and population.

Recently, the BMC confessed that it had no plan to accommodate a migrant population of the

city in its original plan over 10 years ago. The presence of manipulation by the builders,

harassment to farmers for city expansion, land grabing and false registration of land becomes the

part and parcel of Bhubaneswar city.


Economies and Diseconomies-with reference to Bhubaneswar city 8

The economies of yesterday become the diseconomies of today. The Bhubaneswar city is not

exception from the economic theory and its practicability. This can be shown in the following

diagram.

MC
Diseconomies
Y
S2 AC2
P2
AC1 Economies
P1 S1
AC
P
S

N
E

MR AR

O Amount of Developmental Activities and time X


M M1

In the given diagram the shaded area P1PS1S shows benefits (economies) accrues to
Bhubaneswar city because of the expenditure on developmental activities undertaken by BMC,
BDA, other civic bodies and government machinery. Here the average cost curve (AC) is
representing the expenditure involved for developmental activity in Bhubaneswar city. AR
(average revenue) curve represents the benefits (economies) to the city. AR and MR (marginal
revenue) curve slope downwards to the right symbolises a monopolistic market structure because
under the present situation we often see the practicability of this market amid our life. When
Economies and Diseconomies-with reference to Bhubaneswar city 9

expenditure is resting on AC, the benefits (economies) is P 1PS1S.If the developmental activities
will continue further to gain or reap more benefits out of the expenditure incurred till the AC
curve reaches its lowest point called “N”, the city in question will gain no doubt but it may not
sustain it for long as the equilibrium (where MC must cut MR from below (E point) and amount
of developmental activities for the time period (OM) is disturbed and ultimately rest on OM1.
This amount of benefits is not at all good for any society as it is not a stable period and also a
coveted amount of developmental works.
If expenditure is further incurred due to the growth of population and social-economic
amenities and other necessity as seen often in Bhubaneswar city, the AC curve becomes AC 1 and
the benefits cease to accrue altogether as the rate of return upon the expenditure has been reached
a point of saturation. Hence Bhubaneswar city will be in a stage of no gain no loss at this period
of time. Once the expenditure goes further and AC 1 becomes AC2 then the amount of benefits
(economies) accrued previously becomes diseconomies in the form of slum dwellers, presence of
anti-social activities (where soft genders are not safe at all and even peace loving people in
general),migration of people from rural to urban, creation of civic disorder like encroachment of
land, false registration of land, forcefully evicting farmers from their land by the builders with
limited compensation, chaos in the system of administration ,corruption, favouritism and
nepotism in the social order, education with no value-oriented teaching, hospitals with no proper
medicine or care and presence of absentees medical personnels, transport and communication
reaching a point of confusion and disorder with traffic disobedience on the part of people,
misunderstanding between police and general public etc. The shaded area P 2S2P1S1 is shown the
presence of diseconomies in Bhubaneswar city.
Objectives of the Study:
1. To understand the required parameters for developmental activities of civic bodies of
Bhubaneswar city beside Government machinery.
2. To give a thrust to general public about the present scenario of Bhubaneswar and it’s
afterwards and make them aware of the task ahead.
3. To know more about the apathy of Government and other organizations towards the
development of the city.
4. To chalk out a tentative and constructive suggestion ahead and to see the outcome of it
for a sustainable development in the next 50 years of Bhubaneswar city.
Economies and Diseconomies-with reference to Bhubaneswar city 10

5. To make public more vigilant and aware of the gravity of the situation at hand and be
available for self-motivation towards cooperation, contribution, and self-reliance in the
present and the germane context.
6. To prepare young people such as students, teachers, builders, engineers, planners to cast a
spell over the future generation towards development and thereby contribution
accordingly.

Scope of the Study:


1. The present study covers a vast area of analytical explanation and deduction. It includes
different walk of life starting from slum dwellers to rich persons.
2. It also includes socioeconomic infrastructure and their impact towards economic
development of the city of Bhubaneswar.
3. In the field of education, health, sanitation, transport and communication and the
activities of civic bodies are included analytically. However, the scope is widely open for
further research.
Hypotheses
1. The size of population of Bhubaneswar city has no correlation with the quantum of
economic benefits called economies generated by BMC, BDA and governmental agencies.
2. The Govt.policies on the soci-economic life of people does not have positive effect on its
denizen.
3. Method or procedure followed by government and other civic bodies do not have positive
effect on its people.
4. The available infrastructure facilities are not sufficient to reduce poverty of its people.
Methodology:
1. The whole city of Bhubaneswar is taken as the universe of the study. The city of
Bhubaneswar is divided in to four clusters such as east, west, north and south.
2. Keeping in mind, the objectives at hand, a questionnaire is prepared by the interviewer.
In the second strata of the study 200 households has been chosen from each cluster with
the help of random shapling. These 200 households include lower income group, middle
income group and high income group on the basis of income, educational qualification
and profession.
Economies and Diseconomies-with reference to Bhubaneswar city 11

3. Further, in each cluster information was obtained through personal interview.


4. Lastly, with the help of statistical tools such as mean, standard deviation, correlation and
ultimately used t-test to verify the hypotheses and thereafter the conclusion is drawn
about the study.

Constraints:
1. The study is carried out with a good faith, but lack of cooperation from the Bureaucrats,
fluid population and non -availability of house owner/sample people whom our study
based on prevented grossly to arrive at the conclusion.
2. Improper and unorganised transport and communication also plays a role for which
availability of time has been squeezed narrowly.
3. Political affiliation and litigation constrained us to take a limited and available data for
the secondary data in the study.
Economies and Diseconomies-with reference to Bhubaneswar city 12

Data Analysis
East region
Region-1
East-1 West-2 North-3 South-4

200 200 200 200

Responses of the citizen (East region)

1. Do you think BMC is over burden?

Yes No

70% 30%
Economies and Diseconomies-with reference to Bhubaneswar city 13

2. Why BMC is over burden with work?

Growing population Litigation Political pressure All of them Others

28% 12% 13% 32% 15%

3. What is the main task of BMC?

Control of Provide social Act as facilitators Generation of work and Others


traffic amenities fund

12% 35% 20% 25% 8%


Economies and Diseconomies-with reference to Bhubaneswar city 14

From question no 4-8

Sl. Questions Yes(10 No(5


no. point point
rating) rating)

4 Do you believe in the decentralization of BMC 80% 20%

5 BMC is accused of its internal corruptions 90% 10%

6 BMC, in fact requires the support of public for its work 80% 20%

7 BMC and BDA must co-operate with each other, do you believe? 90.5% .5%

8 Are you happy with BMC initiatives? 30% 70%

Responses of west region

1. Do you think BMC is over burden?


Economies and Diseconomies-with reference to Bhubaneswar city 15

Yes No

80% 20%

2. Why BMC is over burden?

Growing Litigation Political All of them Others


population pressure

10% 23% 20% 36% 11%

3. What is the main task of BMC?

Control of traffic Provide social Generation of Act as Others


amenities work and fund facilitators
Economies and Diseconomies-with reference to Bhubaneswar city 16

18% 28% 20% 25% 9%

From question no 4-8 (West region)

Sl no. Questions Yes(10 point No(5 point


rating) rating)

4 Do you believe in the decentralization of BMC 90% 10%

5 BMC is accused of its internal corruptions 80% 20%

6 BMC, in fact requires the support of public for its work 90% 10%

7 BMC and BDA must co-operate with each other, do you believe? 80% 20%

8 Are you happy with BMC initiatives? 20% 80%

Responses of north region

1. Do you think BMC is over burden?


Economies and Diseconomies-with reference to Bhubaneswar city 17

Yes No

90% 10%

2. Why BMC is over burden with work?

Growing Litigation Political All of them Others


population pressure

12% 24% 25% 32% 7%

3. What is the main task of BMC?


Economies and Diseconomies-with reference to Bhubaneswar city 18

Control of traffic Provide social Generation of Act as Others


amenities work and fund facilitators

20% 23% 26% 20% 11%

From question no 4-8

Sl no. Questions Yes(10 point No(5 point


rating) rating)

4 Do you believe in the decentralization of BMC 70% 30%

5 BMC is accused of its internal corruptions 90% 10%

6 BMC, in fact requires the support of public for its work 80% 20%

7 BMC and BDA must co-operate with each other, do you 90% 10%
believe?

8 Are you happy with BMC initiatives? 20% 80%

Responses of south region


Economies and Diseconomies-with reference to Bhubaneswar city 19

1. Do you think BMC is over burden?

Yes No

90% 10%

2. Why BMC is over burden with work?

Growing Litigation Political All of them Others


population pressure

11% 26% 24% 31% 8%

3. What is the main task of BMC?


Economies and Diseconomies-with reference to Bhubaneswar city 20

Control of traffic Provide social Generation of Act as others


amenities work and fund facilitators

25% 20% 16% 24% 15%

From question no 4-8

Sl no. Questions Yes(10 point No(5 point


rating) rating)

4 Do you believe in the decentralization of BMC 60% 40%

5 BMC is accused of its internal corruptions 90% 10%

6 BMC, in fact requires the support of public for its work 70% 30%

7 BMC and BDA must co-operate with each other, do you 80% 20%
believe?

8 Are you happy with BMC initiatives? 20% 80%


Economies and Diseconomies-with reference to Bhubaneswar city 21

Correlation between the responses of different regions citizens

East and west region

Sl no (%) Of Response of (%) of Response


citizen (E) of citizen (W)
E-E (e) W-W(w) e2 w2 e.w

1 8 9 1 1.8 1 3.24 1.8

2 9 8 2 .8 4 .64 1.6

3 8 9.5 1 2.3 1 5.29 2.3

4 9.5 8 2.5 .8 6.25 .64 2

5 .5 1.5 -6.5 -5.7 42.25 32.49 37.05

∑E=35 ∑W=36 ∑ e2 = ∑ w2 = ∑e.w=


54.5 42.3 44.75

E=35/5=7

W =36/5=7.2

r ew = ∑e.w/ √ ∑ e 2 ∑ w 2

=44.75/ √ 54.5×42.3=44.75/ √2305.35 =44.75/48.01=0.93

Here we find that the responses of both the east and west region citizens are positively
correlated.

t-test:

t= r x √n-2/√1-r2

=.93 x√200-2/√1-(.93) 2=16.340

Here the degree of freedom is n-2.where n is the sample size.

Level of significance The tabulated value of t Calculated value of t

5% 1.960 16.340
East and north region
Economies and Diseconomies-with reference to Bhubaneswar city 22

Sl no (%) Of Response of (%) of


citizen (E) Response of
citizen (N) E-E (e) N-N(n) e2 n2 e.n

1 8 7 1 .2 1 .04 .2

2 9 9 2 2.2 4 4.84 4.4

3 8 8.5 1 1.7 1 2.89 1.7

4 9.5 9 2.5 2.2 6.25 4.84 5.5

5 .5 .5 -6.5 -6.3 42.25 39.69 40.95

∑E=35 ∑N=34 ∑ e2 = ∑ n2 = ∑e.n=


54.5 52.3 52.75

E=35/5=7

W =34/5=6.8

r en = ∑e.n/ √ ∑ e 2 ∑ n 2

=52.75/√
√ 54.5×52.3=52.75/√2850.35
√2850.35 =52.75/53.38=0.98

Here we find that the responses of both the east and north region citizens are
positively correlated.

t-test:

t= r x √n-2/√1-r2

=.98 x√200-2/√1-(.98) 2=19.320

Here degree of freedom is n-2., n is the sample size.

Level of significance The tabulated value of t Calculated value of t

5% 1.960 19.320

East and south region


Economies and Diseconomies-with reference to Bhubaneswar city 23

Sl no (%) Of Response of (%) of


citizen (E) Response of
citizen (S) E-E (e) S-S(s) e2 s2 e.s

1 8 6 1 -0.3 1 0.09 -0.3

2 9 9 2 2.7 4 7.29 5.4

3 8 7.5 1 1.2 1 1.44 1.2

4 9.5 8 2.5 1.7 6.25 2.89 4.25

5 .5 1 -6.5 -5.3 42.25 28.09 34.45

∑E=35 ∑S=31.5 ∑ e2 = ∑ s2 = ∑e.s=


54.5 39.8 45

E=35/5=7
S =31.5/5=6.3
r es = ∑e.s/ √ ∑ e 2 ∑ s 2
=45/√
√ 54.5×39.8=45/√2169.1
√2169.1 =45/46.57=0.96
Here we find that the responses of both the east and south region citizens are
positively correlated.
t-test:
t= r x √n-2/√1-r2
=.96 x√200-2/√1-(.96) 2=18.240
Here degree of freedom is n-2.,n is the sample size.

Level of significance The tabulated value of t Calculated value of t

5% 1.960 18.240

West and North region


Economies and Diseconomies-with reference to Bhubaneswar city 24

Sl no (%) of Response (%) of Response of


of citizen (W) citizen (N)
W-W(w) N-N(n) w2 n2 w.n

1 9 7 1.8 .2 3.24 .04 .36

2 8 9 .8 2.2 .64 4.84 1.76

3 9.5 8.5 2.3 1.7 5.29 2.89 3.91

4 8 9 .8 2.2 .64 4.84 1.76

5 1.5 .5 -5.7 -6.3 32.49 39.69 35.91

∑W=36 ∑N=34 ∑ w2 = ∑ n2 = ∑w.n=


42.3 52.3 43.7

W=36/5=7.2
N =34/5=6.8
R wn = ∑wn/ √ ∑ w 2 ∑ n 2
=43.7/√
√ 42.3×52.3=43.7/√2212.29
√2212.29 =43.7/47.03=0.92
Here we find that the responses of both the east and west region citizens are
positively correlated.

t-test:

t= r x √n-2/√1-r2

=.92 x√200-2/√1-(.92) 2=13.020

Here degree of freedom is n-2., n is the sample size.

Level of significance The tabulated value of t Calculated value of t

5% 1.960 13.020
Economies and Diseconomies-with reference to Bhubaneswar city 25

West and south region

Sl no (%) of Response of (%) of Response of


citizen (W) citizen (S)
W-W(w) S-S(s) w2 s2 w.s

1 9 6 1.8 -0.3 3.24 0.09 -.54

2 8 9 .8 2.7 .64 7.29 2.16

3 9.5 7.5 2.3 1.2 5.29 1.44 2.76

4 8 8 .8 1.7 .64 2.89 1.36

5 1.5 1 -5.7 -5.3 32.49 28.09 30.21

∑W=36 ∑S=31.5 ∑ w2 = ∑ s2 = ∑w.s=


42.3 39.8 35.95

W=36/5=7.2
S =31.5/5=6.3
r ws = ∑ws/ √ ∑ w 2 ∑ s 2
=35.95/√
√ 42.3×39.8=35.95/√1683.54
√1683.54 =35.95/41.03=0.87
Here we find that the responses of both the west and south region citizens are
positively correlated.

t-test:

t= r x √n-2/√1-r2

=.87 x√200-2/√1-(.87) 2=24.820

Here degree of freedom is n-2., n is the sample size.

Level of significance The tabulated value of t Calculated value of t

5% 1.960 24.820

North and south region


Economies and Diseconomies-with reference to Bhubaneswar city 26

Sl no (%) of Response of (%) of Response of


citizen (N) citizen(S)
N-N(n) S-S(s) n2 s2 n.s

1 7 6 .2 -0.3 .04 0.09 -.6

2 9 9 2.2 2.7 4.84 7.29 5.94

3 8.5 7.5 1.7 1.2 2.89 1.44 2.04

4 9 8 2.2 1.7 4.84 2.89 3.74

5 .5 1 -6.3 -5.3 39.69 28.09 33.39

∑N=34 ∑S=31.5 ∑ n2 = ∑ s2 = ∑w.s=


52.3 39.8 44.51

N=34/5=6.8
S =31.5/5=6.3
r ns = ∑ns/ √ ∑ n 2 ∑ s 2
=44.51/√
√ 52.3×39.8=44.51/√2081.54
√2081.54 =44.51/45.62=0.97
Here, we find that the responses of both the north and south region citizens are
positively correlated.

t-test:

t= r x √n-2/√1-r2

=.97 x√200-2/√1-(.97) 2=16.140

Here degree of freedom is n-2., n is the sample size.

Level of significance The tabulated value of t Calculated value of t

5% 1.960 16.140

Findings:
Economies and Diseconomies-with reference to Bhubaneswar city 27

1. The given null hypotheses have been rejected as the calculated t- value in each region

(sample area) is greater than tabulated t- value. Hence the conclusion is drawn that the

economic benefits are became diseconomies in the city because of lack of the application

of innovative technologies.

2. The study infact given necessary impetus that enables to understand the modus operandi

of the civil body of Bhubaneswar towards economic and social development of the city.

3. Question no1-3 reveals that BMC is over burden with work because of growing

population, litigation and population pressure. However a few people from different

clusters of the city have different ideas which comprise 8%of the sample.

4. Question no 4-8, reveals that most of the people vouch for the cooperation of BMC and

BDA and decentralization of their work in order to expedite towards developmental

activities.

5. However, the internal corruption and lack of public support in the form of cooperation

put hurdles on its way towards the smooth activities.

6. Lastly, the study reveals that to meet the growing need and grievances of public the

relevant and reasponsible authorities must cultivate the habit of patience and initiate with

public-private partnership oriented work for the city.


Economies and Diseconomies-with reference to Bhubaneswar city 28

Suggestions:

1. Bhubaneswar deserves to be beautiful and a major tourist attraction. With this belief, BMC
and BDA and with the help of Govt machinery must work with people because any type of
developmental work in and around the city needs people participation.
2. To mitigate the impending problem caused by people of lower income group and even some
extend high income group the govt should devise public private partnership plan in different
areas of developmental activities.
3. To strengthen infrastructure development like public amenities must be carried out with
people only .If development is meant for people let people be motivated to execute.
4. Imposing certain rules and regulations related to displacement and resettlement must be
carried out with proper understanding and proper time gap.
5. Employment opportunities must be created with due respect to the potentialities and
capabilities of people at large.
6. Education, health and other social amenities must be far away from politics and corruption.
Economies and Diseconomies-with reference to Bhubaneswar city 29

Bibliography

1. “Odisha economy undergoing structural changes”, Thursday, June 24, 2010,

aamarodisha.blogspot.com

2. Department of Architecture and Regional Planning, IIT, Kharagpur, “Perspective Plan –

VISION 2030 and Comprehensive development Plan for Bhubaneswar – Cuttack Urban

Complex,” – a Concept paper, www.bdabbsr.in

3. Comparative crime figures under 10 major heads (as on 07. 01. 2010),

www.bhubaneswarcuttackpolice.gov.in

4. www.orissa.gov.in

5. www.bdabbsr.in

6. www.bmc.gov.in

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