madhava ram

Tamil Nadu Urban Infrastructure

Financial Services Limited (TNUIFSL)

Final Report Final Report

forfor

City Corporate cum Business PlanCity Corporate cum Business Plan

for for

SE

PT

EM

BE

R 2

009

SE

PT

EM

BE

R 2

009

S T

A G

E

S T

A G

E ��

IVIV

C L

U S

T E

R

C L

U S

T E

R ��

VV

Voyants Solutions Pvt. LtdLevel � 4, �Diamond Dune�323, P.H. Road, Chennai � 600 029Tele: 044 4269 8584 Fax: 044 2668 1180E-mail: [email protected]

Voyants Solutions Pvt. LtdLevel � 4, �Diamond Dune�323, P.H. Road, Chennai � 600 029Tele: 044 4269 8584 Fax: 044 2668 1180E-mail: [email protected]

Submitted by:Submitted by:

for for

MadhavaramMadhavaram TownTown((TiruvallurTiruvallur District)District)

mailto:[email protected]


Final Report City Corporate Cum Business Plan

EXECUTIVE SUMMARY � MADHAVARAM MUNICIPALITY

1. CITY CORPORATE CUM BUSINESS PLAN � CONTEXT and CONTENT

The Tamil Nadu Urban Infrastructure Financial Services (TNUIFSL) aims to assist municipality in

strengthening and improving its financial position for effective capital investment

management and urban service delivery. The CMA and TNUIFSL have initiated the process

of preparing the CCCBP for the municipality to enhance the vision of stakeholders in the

growth of the town. The objective of this study is

1. To assess the present status of infrastructure facilities available in the ULB and to

suggest a comprehensive infrastructure plan with capital investment plan to meet

the future needs.

2. To outline issues in revenue realization in the ULB and suggest measures for revenue

enhancement & financial improvement in the ULB

3. In consultations with Stake holders and Council, suggest Action Plan and FOP to

implement the infrastructure plan.

2. SWOT and VISION

Madhavaram is a special grade municipality located in the northern Suburb of Chennai city

in Tiruvallur District with a total population of 76093. The extent of Madhavaram municipality

is 17.4 sq.km. The latitude and longitude of this town are 13.15° N latitude 80.24° E longitudes

respectively.

Thiruvallur district is one of the fastest developing districts in Tamil Nadu in terms of Industrial

Development. The District has also has 16 Industrial Estates, 16940 Small Scale Industries,

notable among them being food, wood, textile, chemical, engineering, non-metallic and

leather industries. Madhavaram municipality, surrounded by industrial towns acts as the

dormitory town, due to low cost of land & housing and availability of good transport

linkages.

A town level SWOT analysis, with reference to its regional context has been done based on

feedback from stakeholder workshops and analysis of the status of various sectors of the

city.

SWOT Analysis for Madhavaram Municipality

Strength Weakness

Proximity to Chennai and accessibility to

surrounding urban centers

High rate of land conversion due to rapid

urbanization

Part of Chennai Metropolitan Area and Environmental pollution due to untreated

Headquarters of Ponneri Taluk industrial effluents

Located near Red hills, major source water supply

to CMA and Rettai Eri (Minor source) Lack of public utility Infrastructure

Located along Great Northern Trunk Road

connecting the city with Nellore - Kolkata and

other urban nodes Traffic congestion due to encroachments on

road Serves as hub for lorry transport in the city

Presence of 'Central Dairy'- Milk depot

Presence of Industrial estates in & around the town Encroachments on roads and water bodies.

Existence of Directorate of Research of Tamil

Veterinary and Animal Sciences University and

Horticultural Training Centre.

High percentage of slum population

Opportunities Threat

Development of international class connectivity Lack of adequate water supply

Availability of land for future development

High levels of population growth due to

immigration

Establishment of Industrial parks and industrial

estates - TALCO

Threat to water bodies - sand quarrying, lorry

cleaning and Brick Kilns

Effort to enhance city landscape and recreational

spaces

Town requires significant investments in basic

infrastructure

Access for health facilities to Chennai ' the health

capital of the country'

Competing economic activities in the

adjoining areas

Source : Feedback from stakeholders meeting and analysis.

The town of Madhavaram is visualized as �An ideal residential town in the fabric of Chennai

Urban Agglomeration with access to industrial base for sustained economic development �.

Supporting this vision is a set of development objectives, defined along various sectors of

infrastructure. It covers the current status, issues in the sector, likely future demand,

strategies for improvement and identified projects to meet these objectives. The sectors

covered in the report for include water supply, sewerage and sanitation, solid waste

management, storm water drains, street lights, slum improvement and other remunerative

and social projects.

3. CITY INVESTMENT PLAN

The summary of sector-wise investment requirements is given in the following table. The total

investment required would be over Rs.27107.00 lakhs.

Capital Investment Needs for Madhavaram

S.N Projects Estimated cost in

lakhs

1 Water supply Improvement 6000.00

2 Sewerage 5920.00

Phase I 3600.00

Phase II 2320.00

3 Storm water drain 3678.00

4 Solid Waste Management 4823.00

5 Roads and Bus stand 2777.00

6 Street light 100.00

7 Education 282.00

8 Medicare 200.00

9 Public Convenience 60.00

10 Improvement of Parks 299.00

11 Market 230.00

12 Burial ground improvement 24.00

13 Slum 2350.00

14 E-Governance and system improvement in GIS platform 59.00

15 Property mapping 5.00

16 Municipal office building Improvement 100.00

17 Wind mill 200.00

TOTAL 27107.00

4. FINANCIAL PERFORMANCE OF MADHAVARAM MUNICIPALITY

The summary of the financial status of Madhavaram municipality is as follows:

It is observed that the Municipality has shown deficit in only 2 out of the last 6 years.

Prior to depreciation, the Municipality has shown surplus in all the years.

The average current collection efficiency of the municipality is low in case of

property tax with 70% and is very high in case of profession tax and non tax income

@ 95% and 100% respectively.

The broad financial analysis of the Madhavaram Municipality finances reveal that

the Municipality has scope for further increasing its own sources of income and

collection efficiency for servicing the additional borrowings in the future.

The municipality also has very high borrowings at Rs. 609 lacs. But the same is

manageable as the operative margins are very good. The municipality can resort to

further borrowings for new project, which can be serviced from existing revenues and

additional income to be generated.

To summarise, the overall income pattern of the Madhavaram Municipality indicates more

positive features than negative features. The positive trends are on the income side, where

the Municipality has higher growth rate.

5. PROPOSED REFORMS

The proposed mandatory municipal reforms are broadly classified under the heads of:

a. Reforms in resource mobilization

i. Reforms in Taxation

Property mapping - Onetime assessment of all unassessed and under assessed

properties.

Regular and periodic increment of property tax at the rate of 15% every 5 years

ii. Improving revenue from user charges

The Municipal council may assume charge of increase in water charges, to

recover full O&M Cost of water supply and UGSS.

Increase in the connections to at least 85% of total assessments.

Pre-mobilization of deposits for the proposed WS or UGSS project

Implementation of Conservancy fee for SWM for hotels, marriage halls, industries

and other commercial establishments

Revenue Generation from sale of compost and scrap.

iii. Reforms in Energy and Resource efficiency

Conducting energy audits, leak detection studies, Enforce regulations on illegal

tapping of water, Fixing flow control valves and meters.

Provision of energy saving lights and equipments, Privatizin g the maintenance of

street lights to ESCO companies.

iv. Formation of new sustainable revenue sources

The remunerative proposals identified are

Shopping complex at teachers colony (100nos)

Apportionment of revenue from the truck terminus, maintained by the CMDA.

v. Reforms in Audit and Accounting

Timely auditing of accounts - August 30th of next fiscal year

Appointing a private Chartered Accountant as consultant

Publishing audited statement in municipal website - September 30th of next fiscal

year

vi. Regular and mandatory capacity buildings sessions for elected representatives

& municipal officials

6. PROJECT CASH FLOWS AND FOP RESULTS :

The Municipality has deficit prior to depreciation in 17 out of the future 20 years and

the cumulative cash flows are also negative for all the next 20 years.

The full projects investment scenario indicates that Madhavaram Municipality would

end up with a positive cumulative cash deficit of only Rs. 14830 lacs by the end of FY

2028-29 (after 20 years)

On �Full Project Investment Scenario� basis, Madhavaram�s own revenues

(comprising taxes, user charges and other income) could grow from Rs. 385 lacs in FY

2006-07 to Rs. 1812 lacs by FY 2028-29, implying an absolute growth of 19%.

Madhavaram also needs to explore scope for private sector participation for

development of remunerative projects and city beautification projects that have

been identified by Madhavaram.

A comprehensive energy audit is required, given that 70% of its operations and

maintenance expenditure is spent on electricity charges.

7. BORROWING AND INVESTMENT CAPACITY

The borrowing and investment capacities of the town are arrived considering the revenue

income and expenditure under the sustainable scenario, after implementation of the

mandatory reforms proposed in this report.

The investment capacity for the sustainable scenario can be summed up as below:

Summary of Borrowing and Investment Capacity

Description Base case Scenario 1 Sustainable Scenario 2

Borrowing Capacity Rs. 2480.20 lacs -

Investment Capacity (BC/0.04) Rs. 9920.80 lacs -

Investment Requirement - Rs. 27107.00 lacs

Sustainable Investment Capacity % - IC / IR - -

The investment capacity of Madhavaram Municipality on �As is Where Basis� works out to

Rs. 9921 lacs.

The investment capacity of Madhavaram Municipality works to Nil in case of Scenario II

with all projects identified in CCP taken in to consideration.

The same is on account of high capital cost and operation & maintenance on major

projects like water supply, underground sewerage, solid waste management, strom

water drains etc. The higher capital cost results in higher borrowings and annuity,

causing deficit in cash flows.

Both water supply and sewerage are showing cumulative cash deficit of around Rs. 9000

lacs by end of 20 years on account of high operation & maintenance expenses and

annuity.

Based on the above, the Municipality would be in a position to undertake only one

major project and all smaller projects and fully subsidized projects identified in the

priority list of CCP as given below :

Projects Identified for Implementation based on financial position

S.No. Particulars Total Priority Funding By

A Physical Infrastructure Facilities L : G : M

I Water Supply

a) Improvements to Water Supply 6000.00 A 42:50:8

VI Street Lights

a) Proposed new lights 38.00 A 100% ULB

b) Retrofitting & energy saving devices 56.00 A ESCO

c) Solar Lights 6.00 A 0:50:50

B Social Infrastructure Facilities

I Slum Improvement

a) Improvements to Slums 2350.00 A&B 100% Grant

II Education

a) Improvements to Schools 282.00 A&B 100% ULB

III Parks & Playgrounds

a) Improvement of parks 299.00 B&C 0:50:50

IV Burial Ground / Crematorium

a) Improvements to Burial Ground 24.00 B 0:90:10

V Medicare

a) Improvement to maternity centre 200.00 A 0:50:50

VI Public Convenience

a) Public Convenience 60.00 B 0:80:20

VII Market

a) Market Construction 205.00 A 90:0:10

b) Parking Area Development 25.00 A BOLT

C Other Projects

I Other Projects

a) Municipal Office Building Improvement 100.00 B 0:50:50

b) Wind Mill 200.00 B 100% ULB

II E-Governance

a) E-Governance & System Improvement in GIS 59.00 B 0:90:10

b) Property Mapping 5.00 B 100% ULB

Total 9909.00

As regards other major projects like underground sewerage, storm water drains, solid

waste management and roads, more support would be required from the Government

towards major portion of capital cost.

Besides, the Municipality at present derives major source of income from Assigned

Revenue. The Municipality earns around Rs. 350 lacs per annum from Assigned Revenue.

Our financial projections are made on conservative basis by considering only 50% of

existing Assigned Revenue income for future years. But, incase the Municipality

continues to derive Assigned Revenue at the present levels, more projects can be taken

up.

Final Report: Madhavaram Municipality

- i -

Voyants Solutions Private Limited

TTTAAABBBLLLEEE OOOFFF CCCOOONNNTTTEEENNNTTTSSS

111 BBBAAACCCKKKGGGRRROOOUUUNNNDDD AAANNNDDD MMMEEETTTHHHOOODDDOOOLLLOOOGGGIIICCCAAALLL FFFRRRAAAMMMEEEWWWOOORRRKKK OOOFFF TTTHHHEEE SSSTTTUUUDDDYYY ... ... ... ... ... ... ... ... ... 111000 1.1 BACKGROUND ....................................................................................................................... 10 1.2 OBJECTIVES ............................................................................................................................. 10 1.3 SCOPE OF WORK: .................................................................................................................. 10 1.4 STAGE III: DRAFT FINAL STAGE .............................................................................................. 11 1.5 PRESENTATION AND DISCUSSION WITH REVIEW COMMITTEE ......................................... 12 1.5.1 DISCUSSION WITH STAKEHOLDERS ....................................................................................... 13 222 TTTOOOWWWNNN PPPRRROOOFFFIIILLLEEE ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 111444 2.1 MADHAVARAM . . . TOWN PROFILE .................................................................................... 14 2.2 HISTORY OF THE MUNICIPALITY ............................................................................................ 14 2.3 POPULATION CHARACTERISTICS ......................................................................................... 15 2.3.1 POPULATION DISTRIBUTION ................................................................................................... 15 2.3.2 POPULATION GROWTH .......................................................................................................... 16 2.3.3 POPULATION PROJECTIONS ................................................................................................. 16 2.3.4 SLUM POPULATION ................................................................................................................. 16 2.3.5 SEX RATIO ................................................................................................................................. 16 2.3.6 LITERACY .................................................................................................................................. 17 333 EEECCCOOONNNOOOMMMIIICCC DDDEEEVVVEEELLLOOOPPPMMMEEENNNTTT AAANNNDDD PPPHHHYYYSSSIIICCCAAALLL PPPLLLAAANNNNNNIIINNNGGG ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 111888 3.1 URBAN ECONOMIC DEVELOPMENT - SITUATION ANALYSIS. ........................................... 18 3.1.1 OCCUPATIONAL PATTERN ............................................................................................................ 18 3.2 PHYSICAL PLANNING ............................................................................................................. 19 3.2.1 PHYSICAL GROWTH TREND ................................................................................................... 19 3.2.2 LAND USE ANALYSIS ............................................................................................................... 20 3.3 GROWTH MANAGEMENT ISSUES .......................................................................................... 23 444 SSSTTTAAAKKKEEEHHHOOOLLLDDDEEERRRSSS CCCOOONNNSSSUUULLLTTTAAATTTIIIOOONNNSSS ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 222444 4.1 CITY OPINION SURVEY ........................................................................................................... 24 4.2 KEY ISSUES HIGHLIGHTED IN THE CONSULTATION MEETING ............................................ 24 4.2.1 SECTOR PRIORITISATION ........................................................................................................ 24 4.2.1.1 PHYSICAL INFRASTRUCTURE PRIORITY ................................................................................. 25 4.2.1.2 SOCIAL INFRASTRUCTURE PRIORITY: .................................................................................... 25 4.2.1.3 ENVIRONMENTAL ISSUES ....................................................................................................... 26 555 VVVIIISSSIIIOOONNN AAANNNDDD SSSTTTRRRAAATTTEEEGGGIIICCC PPPLLLAAANNN ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 222888 5.1 TOWN LEVEL SWOT ................................................................................................................. 28 5.2 VISION FORMULATION ........................................................................................................... 29 5.3 STRATEGY OPTION FOR ECONOMIC DEVELOPMENT....................................................... 29 666 HHHOOOUUUSSSIIINNNGGG IIINNNCCCLLLUUUDDDIIINNNGGG SSSLLLUUUMMMSSS ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 333333 6.1 EXISTING HOUSING SCENARIO ............................................................................................. 33 6.1.1 HOUSING CONDITION .................................................................................................................. 33 6.2 EXISTING SLUM SCENARIO .................................................................................................... 33 6.2.1 SLUM POPULATION ....................................................................................................................... 33 6.2.2 ISSUES .......................................................................................................................................... 33 6.3 ISSUES ........................................................................................................................................ 34 6.4 PROPOSAL ............................................................................................................................... 34 777 IIINNNSSSTTTIIITTTUUUTTTIIIOOONNNAAALLL FFFRRRAAAMMMEEEWWWOOORRRKKK ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 333555


- ii -


7.1 ELECTED COUNCIL ................................................................................................................. 35 7.2 EXECUTIVE WING .................................................................................................................... 36 7.2.1 GENERAL ADMINISTRATION .......................................................................................................... 36 7.2.2 HEALTH SECTION .......................................................................................................................... 37 7.2.3 ENGINEERING SECTION................................................................................................................. 37 7.2.4 TOWN PLANNING SECTION ........................................................................................................... 37 7.2.5 ACCOUNTS SECTION .................................................................................................................... 37 7.3 CITIZEN�S CHARTER ................................................................................................................. 38 7.4 INFORMATION CENTRE .......................................................................................................... 38 7.5 STAFF STRENGTH POSITION AND VACANCY POSITION .................................................... 38 7.6 ADDITIONAL STAFF REQUIREMENT: ...................................................................................... 40 7.7 INSTITUTIONAL FRAMEWORK FOR SERVICE DELIVERY ...................................................... 40 7.8 ORGANIZATION MANAGEMENT .......................................................................................... 41 888 UUURRRBBBAAANNN IIINNNFFFRRRAAASSSTTTRRRUUUCCCTTTUUURRREEE AAANNNDDD SSSEEERRRVVVIIICCCEEESSS ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 444222 8.1 WATER SUPPLY ........................................................................................................................ 42 8.1.1 EXISTING SCENARIO FOR WATER SUPPLY ........................................................................................ 42 8.1.2 STORAGE AND DISTRIBUTION ......................................................................................................... 44 8.1.3 PERFORMANCE INDICATORS ......................................................................................................... 44 8.1.4 ISSUES .......................................................................................................................................... 44 8.1.5 DEMAND SUPPLY SCENARIO ......................................................................................................... 45 8.1.6 PROPOSAL .................................................................................................................................. 45 8.2 SEWERAGE ............................................................................................................................... 45 8.2.1 SEWERAGE .................................................................................................................................. 45 8.2.2 ISSUES .......................................................................................................................................... 46 8.2.3 PROPOSAL BY MUNICIPALITY ........................................................................................................ 46 8.3 STORM WATER DRAINAGE .................................................................................................... 46 8.3.1 EXISTING CONDITION OF STORM WATER DRAINAGE ...................................................................... 46 8.3.2 PERFORMANCE INDICATORS ......................................................................................................... 47 8.3.3 ISSUES IN STORM WATER DRAINAGE AND HOUSEHOLD DRAINAGE .................................................. 47 8.3.4 PROPOSAL .................................................................................................................................. 47 8.4 SOLID WASTE MANAGEMENT ............................................................................................... 47 8.4.1 EXISTING SITUATION ...................................................................................................................... 47 8.4.2 PRIMARY COLLECTION ................................................................................................................. 48 8.4.3 SECONDARY COLLECTION ........................................................................................................... 49 8.4.4 ISSUES .......................................................................................................................................... 49 8.4.5 PROPOSAL .................................................................................................................................. 50 8.5 STREET LIGHTING ..................................................................................................................... 50 8.5.1 STATUS OF STREET LIGHTING .......................................................................................................... 50 8.5.2 PERFORMANCE INDICATORS ......................................................................................................... 50 8.5.3 ISSUES .......................................................................................................................................... 50 8.5.4 PROPOSAL .................................................................................................................................. 51 8.6 ROAD ....................................................................................................................................... 51 8.6.1 TOWN LEVEL ROAD NETWORK AND HIERARCHY ............................................................................ 51 8.6.2 PARKING ..................................................................................................................................... 51 8.6.3 TRUCK TERMINUS .......................................................................................................................... 52 8.6.4 PERFORMANCE INDICATORS ......................................................................................................... 52


- iii -


8.6.5 PUBLIC TRANSPORT SYSTEM ........................................................................................................... 52 8.6.6 ISSUES .......................................................................................................................................... 52 8.6.7 PROPOSALS ................................................................................................................................. 52 8.7 SOCIAL INFRASTRUCTURE FACILITIES ................................................................................... 53 8.7.1 EDUCATIONAL FACILITIES .............................................................................................................. 53 8.7.2 EXISTING SCENARIO IN EDUCATIONAL FACILITIES ............................................................................ 53 8.7.3 ISSUES IN EDUCATIONAL SECTOR ................................................................................................... 53 8.7.4 PROPOSAL .................................................................................................................................. 53 8.7.5 HEALTH FACILITIES ........................................................................................................................ 53 8.7.6 ISSUES .......................................................................................................................................... 54 8.7.7 PROPOSAL .................................................................................................................................. 54 8.7.8 PUBLIC CONVENIENCE ................................................................................................................. 54 8.7.9 PROPOSAL .................................................................................................................................. 55 8.7.10 MARKET FACILITIES........................................................................................................................ 55 8.7.11 BURIAL GROUND .......................................................................................................................... 56 8.7.12 ISSUES .......................................................................................................................................... 56 8.7.13 PROPOSAL .................................................................................................................................. 56 8.7.14 PARKS AND PLAYGROUND FACILITIES ............................................................................................. 56 8.7.15 PROPOSAL .................................................................................................................................. 57 999 MMMUUUNNNIIICCCIIIPPPAAALLL FFFIIINNNAAANNNCCCEEE ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 555888 9.1 OVERVIEW ............................................................................................................................... 58 9.2 GENERAL DETAILS ................................................................................................................... 58 9.3 RECEIPTS ................................................................................................................................... 58 9.3.1 PROPERTY TAX ............................................................................................................................. 58 9.3.2 PROFESSION TAX .......................................................................................................................... 60 9.3.3 ASSIGNED REVENUES .................................................................................................................... 61 9.3.4 REVENUE DEVOLUTION FUNDS IN AID OF REVENUE EXPENDITURE ...................................................... 62 9.3.5 WATER CHARGES ........................................................................................................................ 62 9.3.6 DRAINAGE CHARGES................................................................................................................... 63 9.3.7 SERVICE CHARGES & FEES ........................................................................................................... 63 9.3.8 INCOME FROM PROPERTIES & OTHER INCOME............................................................................... 63 9.4 EXPENDITURE ........................................................................................................................... 64 9.4.1 ESTABLISHMENT EXPENSES ............................................................................................................. 64 9.4.2 O&M EXPENSES � WATER SUPPLY ................................................................................................ 65 9.4.3 O&M EXPENSES � STREET LIGHTS & OTHERS .................................................................................. 65 9.4.4 ADMINISTRATION & OTHER EXPENSES ............................................................................................ 66 9.5 SUMMARY OF FINANCES ....................................................................................................... 66 9.6 KEY FINANCIAL INDICATORS ................................................................................................ 70 9.7 MEASURES TO BE TAKEN FOR IMPROVING COLLECTION EFFICIENCY ............................ 72 111000 CCCAAAPPPIIITTTAAALLL IIINNNVVVEEESSSTTTMMMEEENNNTTT NNNEEEEEEDDDSSS FFFOOORRR IIIDDDEEENNNTTTIIIFFFIIIEEEDDD PPPRRROOOJJJEEECCCTTTSSS ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 777555 10.1 PHYSICAL INFRASTRUCTURE - IMPROVEMENT NEEDS ...................................................... 75 10.1.1 WATER SUPPLY:............................................................................................................................ 75 10.1.2 SEWERAGE SYSTEM ....................................................................................................................... 76 10.1.3 STORM WATER DRAINAGE ............................................................................................................ 76 10.1.4 SOLID WASTE MANAGEMENT ....................................................................................................... 77 10.1.5 STREET LIGHT ................................................................................................................................ 79


- iv -


10.1.6 ROADS AND TRANSPORTATION ...................................................................................................... 80 10.1.7 EDUCATIONAL INSTITUTIONS .......................................................................................................... 81 10.1.8 HEALTH FACILITIES ........................................................................................................................ 81 10.1.9 PUBLIC CONVENIENCE ................................................................................................................. 83 10.1.10 PARKS AND PLAY GROUND .......................................................................................................... 83 10.1.11 MARKET ...................................................................................................................................... 84 10.1.12 BURIAL GROUND DEVELOPMENT .................................................................................................. 85 10.1.13 SLUM IMPROVEMENT .................................................................................................................... 85 10.1.14 SYSTEM IMPROVEMENT GIS PLATFORM .......................................................................................... 86 10.2 OTHER PROJECTS .................................................................................................................... 86 10.3 OTHER DEPARTMENT PROJECTS ........................................................................................... 87 10.4 PROPOSED UNDER CDP FOR CHENNAI METROPOLITAN AREA ..................................... 88 10.5 SUMMARY OF CAPITAL INVESTMENTS ................................................................................. 89 111111 RRRIIISSSKKK AAANNNDDD MMMIIITTTIIIGGGAAATTTIIIOOONNN MMMEEEAAASSSUUURRREEESSS ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 999111 11.1 PROJECT RISK AND MITIGATION MEASURES ...................................................................... 91 111222 RRREEEFFFOOORRRMMMSSS AAANNNDDD AAACCCTTTIIIOOONNN PPPLLLAAANNN ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 999555 12.1 PRESENT SCENARIO IN URBAN REFORMS ........................................................................... 95 12.2 PROPOSED INTERVENTIONS AT STATE LEVEL ...................................................................... 96 12.3 PROPOSED INTERVENTION AT MUNICIPAL LEVEL ............................................................ 102 12.3.1 REFORMS IN RESOURCE MOBILISATION ........................................................................................ 102 12.3.2 ACTION PLAN : IMPROVING REVENUE FROM OWN SOURCES ........................................................ 102 12.3.3 ACTION PLAN : IMPROVING REVENUE FROM USER CHARGES ........................................................ 104 12.3.4 ACTION PLAN: FORMATION OF NEW SUSTAINABLE REVENUE BASES ................................................ 105 12.3.5 ACTION PLAN: PRIVATISATION INITIATIVES .................................................................................... 107 12.3.6 ACTION PLAN: ENERGY & RESOURCE EFFICIENCY ........................................................................ 108 12.3.7 ACTION PLAN: COMPUTERIZATION AND E-GOVERNANCE............................................................. 111 12.3.8 ACTION PLAN: ACCOUNTS AND AUDITING ................................................................................. 112 12.3.9 ACTION PLAN: INSTITUTIONAL MANAGEMENT .............................................................................. 112 12.3.10 A. CAPACITY BUILDING FOR ELECTED REPRESENTATIVES AND COMMITTEE MEMBERS ...................... 113 12.3.11 B. CAPACITY BUILDING FOR ULB STAFF ....................................................................................... 114 12.3.12 REFORMS IN MUNICIPAL SERVICE DELIVERY ................................................................................. 117 111333 AAASSSSSSEEETTT MMMAAANNNAAAGGGEEEMMMEEENNNTTT PPPLLLAAANNN ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 111111888 13.1 ACTIVITIES OF ASSET MANAGEMENT PLAN (AMP) .......................................................... 118 13.2 INFRASTRUCTURE ASSETS ..................................................................................................... 119 13.2.1 MOVABLE AND IMMOVABLE ASSETS ............................................................................................ 119 13.3 PRIORITY ASSET MANAGEMENT OPTIONS......................................................................... 120 13.4 PROPOSED NEW ASSETS ...................................................................................................... 121 111444 FFFIIINNNAAANNNCCCIIIAAALLL AAANNNDDD OOOPPPEEERRRAAATTTIIINNNGGG PPPLLLAAANNN ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 111222333 14.1 CAPITAL INVESTMENT PLAN ................................................................................................ 123 14.2 OTHER PROJECTS AND ON GOING PROJECTS ............................................................... 125 14.3 MEANS OF FINANCE ............................................................................................................ 126 14.4 FINANCIAL SUSTAINABILITY ................................................................................................. 132 14.5 BASIC ASSUMPTIONS FOR PROJECTIONS : ....................................................................... 132 14.5.1 INCOME .................................................................................................................................... 133 14.5.2 EXPENDITURE ............................................................................................................................. 138 14.5.3 COLLECTIONS ............................................................................................................................ 140


- v -


14.6 ANNUITY FACTOR ................................................................................................................. 141 14.7 PROJECT CASH FLOWS AND FOP RESULTS : .................................................................... 141 14.8 IMPACT OF POTENTIAL IMPROVEMENTS ........................................................................... 149 14.9 SCENARIO I - ESTIMATION OF INVESTMENT CAPACITY ON AS IS WHERE BASIS ......... 150 14.10 SCENARIO II - ESTIMATION OF BORROWING AND INVESTMENT CAPACITY WITH

PROJECTS .............................................................................................................................. 150 14.11 KEY INDICATORS OF SCENARIO II ...................................................................................... 151 14.12 INFERENCE ............................................................................................................................. 151 AAANNNNNNEEEXXXUUURRREEE ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 111555444


- vi -


LLLIIISSSTTT OOOFFF FFFIIIGGGUUURRREEESSS

Figure 2-1: Regional Setting of Madhavaram Municipality ............................................................. 15

Figure 3-1: Growth Direction .................................................................................................................. 20

Figure 3-2: CMA � Existing Land use 2006 - Madhavaram............................................................... 21

Figure 3-3: Proposed Land use 2026 - Madhavaram ....................................................................... 21

Figure 3-4: Town Map � Madhavaram municipality ......................................................................... 22

Figure 4-1: Priorities for Physical Infrastructure .................................................................................... 25

Figure 4-2: Priorities for Social Infrastructure........................................................................................ 26

Figure 4-3: Priorities for Environmental Protection ............................................................................. 27

Figure 6-1: Housing Condition ............................................................................................................... 33

Figure 7-1: Organisational structure of Madhavaram Municipality ............................................... 36

Figure 8-1: Water Supply Layout in Madhavaram Municipality ..................................................... 43


- vii -


LLLIIISSSTTT OOOFFF TTTAAABBBLLLEEESSS

Table 2-1: Urban Population Share in the Town and the Region ................................................... 16

Table 2-2: Population Growth in Madhavaram Municipality.......................................................... 16

Table 2-3: Population projection .......................................................................................................... 16

Table 2-4: Comparative Sex Ratio........................................................................................................ 17

Table 2-5: Comparative Literacy .......................................................................................................... 17

Table 3-1: Work Force Participation Ratio in Madhavaram Town ................................................. 18

Table 3-2: classification of Main Workers in Madhavaram Town ................................................... 19

Table 5-1: Town level SWOT ................................................................................................................... 28

Table 7-1: Staff Strength and Additional Staff Requirement ........................................................... 38

Table 7-2: Additional Staff Requirement ............................................................................................. 40

Table 7-3: Institutional Framework for Urban Service Delivery ........................................................ 40

Table 8-1: General details of Water Supply ........................................................................................ 42

Table 8-2: Demand supply gap for project population ................................................................... 45

Table 8-3: Status of UGSS proposals ..................................................................................................... 46

Table 8-4 � Existing Strom water Condition ......................................................................................... 47

Table 8-5 � SWM-General details .......................................................................................................... 47

Table 8-6 � Sources of Waste Generation .......................................................................................... 48

Table 8-7: Solid Waste Collection in Madhavaram Town ............................................................... 49

Table 8-8: Existing Street Light and energy consumption ................................................................ 50

Table 8-9: Types of Roads in Madhavaram Municipality ................................................................. 51

Table 8-10: Existing Educational facilities in Madhavaram Town ................................................... 53

Table 8-11: Classification of modes of sanitary waste disposal by type ....................................... 54

Table 8-12: Existing public toilets facilities ........................................................................................... 55

Table 8-13: Existing park and open space ......................................................................................... 56

Table 9-1: Property Tax Components .................................................................................................. 59

Table 9-2: Property Tax Assessments .................................................................................................... 59

Table 9-3: Property Tax � Growth during last 6 years ........................................................................ 59

Table 9-4: Property Tax � Demand Collection % (Rs. in lacs) .......................................................... 59

Table 9-5: Profession Tax � Growth during last 6 years ..................................................................... 60

Table 9-6: Profession Tax � Demand Collection % (Rs. in lacs) ....................................................... 60

Table 9-7: Assigned Revenue � Growth & % of Total Income (Rs. in lacs) .................................... 61

Table 9-8: Devolution Fund � Growth & % of Total Income (Rs. in lacs) ........................................ 62

Table 9-9: Salary of Employers ............................................................................................................... 63

Table 9-10: Service Charges & Fees � Growth & % of Total Income (Rs. in lacs) ........................ 63

Table 9-11: Income from Properties & Other Income � Growth & % of Total Income (Rs. in

lacs) ............................................................................................................................................................ 64

Table 9-12: Non Tax Income � Demand Collection % (Rs. in lacs) ................................................. 64

Table 9-13: Establishment Expenses � Growth & % of Total Expenditure (Rs. in lacs) ................. 65

Table 9-14: O&M Expenses (Water Supply) � Growth & % of Total Expenditure (Rs. in lacs) .... 65

Table 9-15: O&M Expenses (Street Lights & Others) � Growth & % of Total Expt (Rs. in lacs) .... 66

Table 9-16: Administration Expenses � Growth & % of Total Expenditure (Rs. in lacs) ................ 66

Table 9-17: Summary of Finances for last 6 years (Rs. in lacs) ......................................................... 66

Table 9-18: Head-wise Income & Expenditure for last 6 years (Rs. in lacs)................................... 67

Table 9-19: Borrowings of the Municipality (Rs. in lacs) .................................................................... 68


- viii -


Table 9-20: Status of Contributions & Grants ...................................................................................... 69

Table 9-21: Resource Mobilisation Indicators ..................................................................................... 70

Table 9-22: Fund Application Indicators ............................................................................................. 71

Table 9-23: Liability Management Indicators ..................................................................................... 71

Table 9-24: Financial Performance Indicators ................................................................................... 72

Table 9-25: Efficiency Indicators ........................................................................................................... 72

Table 10-1: Graded tariff structure - UGSS .......................................................................................... 76

Table 10-2: Capital Investment Needs for the Storm Water Drains ............................................... 77

Table 10-3: Capital Investment Needs for the Solid Waste Management .................................. 78

Table 10-4: Capital Investment Needs for the Street Light .............................................................. 79

Table 10-5: Capital Investment Needs for the Road and Transportation..................................... 80

Table 10-6: Capital Investment Needs for the Educational Institutions ........................................ 81

Table 10-7: Capital Investment Needs for the Maternity center .................................................... 82

Table 10-8: Capital Investment Needs for Public Conveniences .................................................. 83

Table 10-9: Capital Investment Needs for the Parks and Play Grounds ....................................... 83

Table 10-10: Capital Investment Needs for Market .......................................................................... 84

Table 10-11: Capital Investment Needs for Burial Ground Development .................................... 85

Table 10-12: Capital Investment Needs for Slum Improvement ..................................................... 85

Table 10-13: Capital Investment Needs for System Improvement and e-Governance ............ 86

Table 10-14: Capital Investment Needs for Other projects ............................................................. 87

Table 10-15: Projects to be taken by other departments ................................................................ 88

Table 10-16: Summary of Investment plan � Chennai Metropolitan Area ................................... 88

Table 10-17: Summary of Capital Investment .................................................................................... 89

Table 11-1: As per the Guidelines on Environmental & Social Concerns of CCCBP projects �

Madhavaram .............................................................................................................................................. 91

Table 12-1: Road Map - Improving revenue from own sources ................................................... 104

Table 12-2: Road Map improving revenue from user charges ..................................................... 105

Table 12-3: Road Map for Formation of new sustainable revenue bases ................................. 106

Table 12-4: Road Map for Privatization initiatives ............................................................................ 108

Table 12-5: Road Map for Energy and Resource efficiency ......................................................... 109

Table 12-6: Central and state government incentives .................................................................. 110

Table 12-7: Wind Energy Generator project details - Abstract .................................................... 110

Table 12-8: Road Map for Computerization and E-Governance ................................................ 112

Table 12-9: Road Map for Accounts & auditing and Industrial Management ......................... 113

Table 12-10: Technical Assistance for Elected representatives .................................................... 113

Table 12-11: Technical Assistance for ULB staff ................................................................................ 114

Table 12-12: Road map for implementation of all projects .......................................................... 116

Table 12-13: Road map Reform Agenda Municipal Service Delivery ........................................ 117

Table 13-1: Land Assets � Proposed use ............................................................................................ 120

Table 13-2: Income from Proposed new Projects ........................................................................... 121

Table 13-3: New Assets for the year -2009-10 to 2013 -14 .............................................................. 122

Table 14-1: Projects to be executed by the Municipality .............................................................. 123

Table 14-2: Projects to be executed by Other Agencies .............................................................. 125

Table 14-3:Projects under Implementation by the Municipality .................................................. 126

Table 14-4: Multi Year Investment Plan and Means of Finance ................................................... 127

Table 14-5: Consolidated Means of Finance .................................................................................. 131


- ix -


Table 14-6: Ratio of Property tax ........................................................................................................ 133

Table 14-7: Water supply Charges � Existing .................................................................................... 134

Table 14-8: House Service Connections � Percentage .................................................................. 135

Table 14-9: Sewage Charges .............................................................................................................. 136

Table 14-10: Assumptions - Increase in Expenditure ....................................................................... 138

Table 14-11: Assumptions � O&M ....................................................................................................... 138

Table 14-12: Assumptions � Provision of doubtful debts ................................................................. 140

Table 14-13: Assumptions � Property tax collection ........................................................................ 140

Table 14-14: Assumptions � Profession tax ........................................................................................ 140

Table 14-15: Assumptions � Other Non Tax Income ........................................................................ 140

Table 14-16: Assumptions � Water Charges ..................................................................................... 140

Table 14-17: Assumptions � Drainage Charges ............................................................................... 141

Table 14-18: Terms of Loan Funding for Proposed Investments .................................................... 141

Table 14-19: Consolidated Income & Expenditure for next 20 years (up to FY 2028-29)......... 143

Table 14-20: Consolidated Balance Sheet for next 20 years (up to FY 2028 � 29) .................... 145

Table 14-21: Key Indicators .................................................................................................................. 151

Chapter - 1 Final Report: Madhavaram Municipality

- 10 -


111 BBBAAACCCKKKGGGRRROOOUUUNNNDDD AAANNNDDD MMMEEETTTHHHOOODDDOOOLLLOOOGGGIIICCCAAALLL FFFRRRAAAMMMEEEWWWOOORRRKKK OOOFFF TTTHHHEEE SSSTTTUUUDDDYYY

1.1 BACKGROUND

The Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) aims to assist

Madhavaram Municipality in strengthening and improving its financial position for

effective capital investment management and urban service delivery. The

municipality has good potential for immediate implementation of financial reforms

for which it is essential to formulate a City Corporate Cum Business Plan (CCCBP).

The CMA and TNUIFSL have initiated the process of preparing CCCBP for the

municipality with the vision of stakeholders growth of the town.

1.2 OBJECTIVES

The objective of this exercise is to visualise the town in the next 25 -30 years and

1. Define the growth direction and service up-gradations in relation to the

activity mix / growth;

2. Assess the demand for the projects specified by the ULB, and come out with

gap in services with respect to the vision;

3. Broadly outline the infrastructure needs;

4. Define specific rehabilitation of infrastructure and capital improvement needs

with regard to provision of infrastructure in slums and other areas;

5. Indicate the priority of projects

6. Define revenue enhancement and revenue management improvements

required to sustain the rehabilitation proposed;

7. Suggest reforms required in local administration and service delivery including

public private partnership in infrastructure development

8. Suggest Measures to address common growth and infrastructure issues and to

promote integrated development

1.3 SCOPE OF WORK:

The scope of work covers the following:

1. To assess the demand for the Projects listed out by these municipalities.

2. Financial Assessment of the ULBS- an assessment of the ULB finances for the past

5 years, in terms of sources and uses of funds, base and basis of levy, revision

history and impacts, state assignment and transfer-base and basis of transfer

and its predictability; use of funds outstanding liabilities (loans, power dues,

pension etc) and a review of revenue and service management

arrangements. Levels of service and quality of municipal services in both poor


- 11 -


and non-poor localities. Staffing and management arrangements in delivery of

services.

3. Outline issues in revenue realisation, quality of existing assets in relation to

service levels and coverage and institutional constraints. Develop quick

indicators of performance, based on the following:

Current coverage and additional population during medium term (10 years)

Unit cost indicates city level investment requirements for Up-gradation of

city wide infrastructures.

To improve service coverage and asset quality

Define priority assets and indicative costs of rehabilitation

Conduct fiscal impact analysis of investments: life-cycle of O&M costs,

revenues from project and costs/impacts on finances and of not doing the

project.

Explore funding options for rehabilitation facilities.

4. Prepare a financial and operating plan (FOP). The FOP in the medium time frame

works for the ULBs and shall present the following.

A. Areas of reduction in expenditure

Energy audit resulting in savings energy.

Leak detection resulting either in connection or in the tariff (or)

Privatizing the MSW collection and identifying a BoT operator for eliminating,

composting etc, items of revenue can be identified.

Laying of cement concrete road /Fly ash and savings on a maintenance cost

resulting in increasing operating surplus.

Water recycling /refuse

Rejuvenation of tanks and reduction of cost/liters of water produced

Privatization & options for raising revenue

C. Options for increasing the revenues through non traditional methods

Land development for raising revenues

Suggestions for improvement of revenues.

5 Prepare a draft Memorandum of Association (MoA) between ULB and TNUIFSL.

The MoA will act as the base line (based on the situation Analysis) and the

Performance Benchmarks to be monitored along with other financial targets

and outputs from the financial and operating plan.

5. Initiate consultations with council and local stakeholders on the priorities

redefine priorities.

6. Finalize Action plan for the city, with a resolution from the council on the

priorities and commitment to implement revenue and management

improvement measures.

1.4 STAGE III: DRAFT FINAL STAGE

Under this stage of City Corporate cum Business Plan has two tasks.

1. In the First Task, Financial and Operating Plan (FOP) will be prepared outlining


- 12 -


the revenue enhancement measures required to sustain proposed

investments after accounting for O&M and debt servicing requirements.

Suggest suitable actions for project sizing and/or project implementation and

action plan to sustain investments based on capital investment needs listed

above. It will also suggest suitable actions for project sizing and/or project

implementation and action plans to sustain investments based on the capital

investment needs.

2. In the 2nd Task Draft MoA between ULB and TNUIFSL will be prepared.

The final stage would incorporate the Municipal Council resolution passed by the

Municipal Council to effectively implement the proposed urban reforms in the

CCCBP.

1.5 PRESENTATION AND DISCUSSION WITH REVIEW COMMITTEE

The review meeting for Revised Draft Final Report was held on 24th June 2009 at the

office of TNUIFSL. The minutes of the meeting and the consultants reply are given

below:

COMMON POINTS

1. To correct the grade of the ULBs as revised by the Government.

The grades of the Municipalities have been updated as per the latest revisions.

2. To highlight the requirement of capital / revenue grant to implement and

operate all the new schemes.

The actual requirement of capital / revenue grant for each town along with the

funding pattern has been clearly indicated in section 14.1& 14.3 of chapter14.

3. To indicate following in the executive summary of the report

a) List of projects under the sustainable scenario along with the year wise

phasing of the projects identified.

b) The assumption made on the means of finance.

The list of projects, year wise phasing and the assumptions made on the means of

finance have been added in the executive summary under the table � Projects

Identified for implementation based on financial position� in the executive

summaries.


- 13 -


TOWN SPECIFIC COMMENT

Madhavaram

The consultants were requested to revise the assumptions on means of

finance in accordance with JNNURM norms and revise the FOP

accordingly.

The means of Finance for Madhavaram have been revised as per JnNURM

scheme. The assumptions are give in the table �Projects Identified for

implementation based on financial position� in the executive summary.

The minutes of meeting for review committee held during this period of study is given

in Annexure I d.

1.5.1 DISCUSSION WITH STAKEHOLDERS

The Stakeholder meeting was arranged with Municipal chairman, Vice Chairman,

commissioner, Councillors and NGO�s of the project town. A base plan was

prepared for the visit to the project towns during the month of October �08. The

objective of the stack holder meeting was to discuss about the needs of CCCBP

and to highlight the basic issues on infrastructure such as water supply, sewerage,

drainage, roads, social infra structures, etc.

Stakeholder�s Meeting

Further, in order to collect ward wise issues, proformae were distributed during the

meetings and the councillors and NGO�s were requested to mention the issues on

physical and social infrastructure. Based on the issues mentioned in the proformae

and discussion with the Municipal Chairman, Vice Chairman, Commissioner,

Councillors, NGO�s and Engineers, infrastructure requirements for the present and

future were arrived. Accordingly proposals have been formulated which is given in

the following chapters.


- 14 -


222 TTTOOOWWWNNN PPPRRROOOFFFIIILLLEEE

2.1 MADHAVARAM . . . TOWN PROFILE

Madhavaram is a special grade municipality located in the northern Suburb of

Chennai city in Thiruvallur District with a total population of 76093. The extent of

Madhavaram municipality is 17.4 sq.km and was formed in the year 1970.

The �Madhavaram Milk Dairy �, at Madhavaram is the first state owned co-operative

milk producing unit of �Aavin�. The town has a University for Animal Husbandry and

Veterinary Sciences, Horticulture Centre and Palm center within its limits.

Madhavaram municipality is geographically located at 13.15° N Latitude 80.24° E

Longitude.

This Municipality has 30 wards. Madhavaram is the head quarters of Ponneri Taluk.

The average elevation of the town is 13 metres (42 feet) above MSL.

The nearest Airport is at Chennai situated at a distance 25 km from the town.

2.2 HISTORY OF THE MUNICIPALITY

As per G.O Ms 2394 RDRLA dt 19.11.1970 Madhavaram panchayat was constituted

into 3rd grade township, and then Upgraded to 2nd grade municipality vide G.O

M.S.114 Municipal Administration and Water supply department dt 31.05.1994 and

further upgraded from 2nd Grade Municipality to 1st Grade Municipality w.e.f

22.05.1998. The Madhavaram Municipality was upgraded as special grade

municipality as per G.O (MS) No 238 dt 2.12.2008.


- 15 -


Figure 2-1: Regional Setting of Madhavaram Municipality

Source: Maps of India

2.3 POPULATION CHARACTERISTICS

2.3.1 POPULATION DISTRIBUTION

The Table 2.1 shows the distribution of population in Tamil Nadu, Tiruvallur District and

the town.


- 16 -


Table 2-1: Urban Population Share in the Town and the Region

NAME Total Population % Distribution of Urban Population

w.r.t District

Tamil Nadu Urban 27,483,998 -

Tiruvallur District 27,38,866 100

Tiruvallur District Urban 14,92,034 54.48

Madhavaram (M) 76,093 2.78 Source: Primary Census Abstract of Tamil Nadu, Census of India - 2001

2.3.2 POPULATION GROWTH

The town�s population growth rate is uniform over past three decades. The table

below shows the decadal population growth of Madhavaram municipality from

1971 to 2001.

Table 2-2: Population Growth in Madhavaram Municipality

Census Year Population Variation Growth rate in %

1971 21054

1981 32767 11713 5.56

1991 49,256 16489 5.03

2001 76,793 27537 5.59 Source: Compiled from Master Plan, Madhavaram, 1990

Primary Census Abstract of Tamil Nadu, Census of India � 2001

2.3.3 POPULATION PROJECTIONS

Based on the growth rate for the past few decades, the future population of the

town has been projected and given in the table below

Table 2-3: Population projection

Year Population Growth Rate in%

2011 90306

2021 104803 1.60

2031 125090 1.93

2041 140000 1.19

Source: Estimated

2.3.4 SLUM POPULATION

Madhavaram Town has 19 Slum settlements and the total population living in these

slums is 15,867 i.e. 19% of total population of Madhavaram town lives in slum areas.

2.3.5 SEX RATIO

Sex ratio in Madhavaram municipality is 957 females per 1000 males. The

comparative statement of district, sate and town sex ratio are given in the table

below:


- 17 -


Table 2-4: Comparative Sex Ratio

NAME Sex Ratio Sex Ratio 0-6 Sex Ratio SC Sex Ratio ST

Tamil Nadu 987 942 999 980

Tamil Nadu Urban 982 955 1001 997

Tiruvallur District 971 957 994 1005

Tiruvallur District Urban 952 955 979 1033

Madhavaram (M) 957 966 1008 1133

Source: Compiled from Primary Census Abstract, Census of India-1991, 2001

2.3.6 LITERACY

Literacy is one of the important social indicators for development. There are total of

57,332 literates in the Madhavaram Town. The literacy rate is 85.04%, as compared to

district urban literacy rate of 84.98% in 2001 census. The reason for higher literacy rate

might be because of the availability of educational facilities nearby.

Table 2-5: Comparative Literacy

NAME Literacy Rate

Total Male Female

Tamil Nadu 73.45 82.42 64.43

Tamil Nadu Urban 82.53 88.97 75.99

Tiruvallur District 76.94 85.26 68.39

Tiruvallur District Urban 84.98 91.12 78.53

Madhavaram (M) 85.04 91.03 78.78



- 18 -


333 EEECCCOOONNNOOOMMMIIICCC DDDEEEVVVEEELLLOOOPPPMMMEEENNNTTT AAANNNDDD PPPHHHYYYSSSIIICCCAAALLL PPPLLLAAANNNNNNIIINNNGGG

3.1 URBAN ECONOMIC DEVELOPMENT - SITUATION ANALYSIS.

Thiruvallur district is one of the fastest developing districts in Tamil Nadu in terms of

Industrial Development. The district has many leading industries like Madras

Refineries, Madras Fertilizers, Manali Petro Chemicals, MRF, Ashok Leyland, TI Cycles,

Britannia India Ltd, Parry India Ltd and Hindustan Motors.

Glass, rubber, plastics and ceramic industries are located at also Thiruvallur district

and Gummidipoondi around Chennai. It also boasts of the Ennore Thermal Power

Station and the Avadi Tank Factory. A cluster of chemical industries is located at

Manali and Ambattur, west of Madhavaram municipality, housing multi-product

industries providing direct and indirect employment opportunities to thousands of

people. The District has also has 16 Industrial Estates, 16940 Small Scale Industries,

notable among them being food, wood, textile, chemical, engineering, non-

metallic and leather industries.

Madhavaram acts as the dormitory town to the surrounding industrial clusters, due to

low cost of land & housing and availability of good transport linkages. Madhavaram

is also as the stop gap for more than 5,000 trucks to Chennai, Airport and Ennore sea

ports from the surrounding export zones.

3.1.1 Occupational Pattern

According to 2001 census, the work force participation rate in Madhavaram town is

32%. Out of 24,228 total workers, 21,314 are main workers and 2,914 are marginal

workers. The percentage of main workers and marginal workers accounts for 88%

and 12% of the total workforce. Table 3.1 and 3.2 shows the work force participation

ratio and Occupation pattern in the town.

Table 3-1: Work Force Participation Ratio in Madhavaram Town

Name Total

Population

Total

Workers

WFPR % Main

Workers

% Marginal

Workers

Tamil Nadu 62405679 27878282 44.67 85.22 14.78

Tamil Nadu Urban 27483998 10318514 37.54 91.75 8.25

Tiruvallur District 2754756 1037097 37.65 82.06 17.94

Tiruvallur District Urban 1500082 503633 33.57 89.79 10.21

Madhavaram (M) 76093 24228 31.84 87.97 12.03


Out of the main workforce about 1% of population are cultivators, 0.71% is

agricultural labourers and 1.5% of workers are engaged in household industries. The

remaining 97% workers are included in �other workers� category.


- 19 -


Table 3-2: classification of Main Workers in Madhavaram Town

Name Main

Worker

Cultivators Agricultura

l Laborers

Workers in

Household Industry

Other

Workers

Tamil Nadu 23757783 19.95 25.52 5.31 49.23

Tamil Nadu Urban 9467240 3.41 9.11 6.05 81.43

Tiruvallur District 850994 9.30 18.66 4.64 67.39

Tiruvallur District Urban 452231 1.30 2.17 3.86 92.67

Madhavaram (M) 21314 1.02 0.71 1.56 96.71

Source: Compiled from Primary Census Abstract, Census of India 2001(All the figures in column 3-6 are in percentage)

3.2 PHYSICAL PLANNING

3.2.1 PHYSICAL GROWTH TREND

Chennai is a major manufacturing centre in India. It has a diversified economic base

driven primarily by the automobile, Information technology and service industries.

The Chennai Port and Ennore Port contribute greatly to its economic importance.

Madhavaram lies in the northern suburb of Chennai, surrounded by the industrial

zone and acts as a transit zone for the truck movement, as it lies on the NH-5

connecting the industrial towns of North Tamil Nadu and South Andhra Pradesh. Thus

the town gains importance owing to its proximity to Chennai and strategic location

of the National Highway

The major arterials in the town connecting to various urban nodes are Erukkancheri

High Road � NH 5, Perambur High Road, Jawaharlal Nehru Road, Madhavaram High

Road

The connectivity to surrounding urban nodes, town environment, land cost and

employment opportunities determine the push and pull factor of the town.

Residential growth prevails along the main roads linking the town with Chennai city,

Korattur, Vyasarpadi and Ennore. The major growth directions of the town are

towards south, west, northeast and northwest.

Although the Rettai Eri forms a physical barrier for growth in northwest direction, the

NH-5 connecting Chennai with Nellore, Kolkata and other urban nodes forms the

main artery of this town. The commercial establishments have randomly developed

along major roads and in the bus stand area.


- 20 -


Figure 3-1: Growth Direction

3.2.2 LAND USE ANALYSIS

Madhavaram forms part of the Chennai Metropolitan area and was promoted by

the State Govt as an industrial and residential suburb for Chennai north Under MUDP-

I (1977-92), MUDP-II (1983-87) and TNUDP (1988-95).

The enlarged existing and proposed land use map of Madhavaram Area from the

CMA second Master Plan is given in fig 3.2 and 3.3. The proposed land use pattern

shows the rapid urbanization and spreading industrial developments in

Madhavaram town. The area under wetlands and open spaces has completely

been transformed to residential and mixed residential area in the proposed land use.

Transformation of wetlands, encroachment on water bodies and natural drains are

the effects of rapid aurbanization.


- 21 -


Figure 3-2: CMA � Existing Land use 2006 - Madhavaram

Figure 3-3: Proposed Land use 2026 - Madhavaram

Source: Second master plan � CMA

MADHAVARAM


- 22 -


Figure 3-4: Town Map � Madhavaram municipality


- 23 -


3.3 GROWTH MANAGEMENT ISSUES

Need to conserve water bodies

The Rettai eri, a water sub source for CMWSSB located at Madhavaram, also

serves as the recharge system for underground aquifers and flood

accommodators during monsoon. The major issues related to Rettai Eri are

encroachment upon the natural drainage system and catchment areas. A

perimeter of about 300 m surrounding the water body is rich in bio diversity and

needs to be preserved, as it forms a part of the Rettai Eri- Manali wetlands.

This could also serve as an Bio-Eco park for the North Chennai area, which

critically lacks recreational spaces.Effective tie-ups of professionals, including

ecologists, hydrologists, economists, watershed management specialists,

planners and decision makers is to be linked with local expertise for effective

environmental management of wetlands and the Rettai eri .

Need for infrastructural improvements

The upcoming industrial developments, development of MAP region and the

existing regional linkages would further boost the economic development of

the region. This will lead to the rapid increase in migrated population to

Madhavaram. Necessary basic infrastructure facilities including good quality

affordable housing, health, education and recreational facilities need to be

provided to achieve a better standard of living.

Strengthening of municipal revenue resource

The connectivity to port and industrial clusters, and the presence of Truck

terminus within the limit has gained the name as �Transit hub for truck

transportation�. Reforms for revenue enhancement need to be under taken by

the urban local body to generate revenue from the CMDA owned truck

terminus and other private players in this area. The modalities are addressed in

detail under Reform Agenda section of Chapter-12.

Need for guided development for a sustained economic growth

Madhavaram at present is a residential town for the surrounding industrial

centers. The transformation of wetlands into mixed land use will be fast in future

years causing congestion and unsafe environmental conditions. Thus guided

development and regular monitoring of upcoming developments are the key

factors in providing safe and healthy environment to live in.


- 24 -


444 SSSTTTAAAKKKEEEHHHOOOLLLDDDEEERRRSSS CCCOOONNNSSSUUULLLTTTAAATTTIIIOOONNNSSS The purpose of stakeholder consultation is to provide an opportunity for stakeholders

to involve in the development plan for the city. The planning process need to be a

consultative one, with stakeholders representing a wide spectrum of interests taking

part in the discussions and dialogue leading to the formulation of a vision and

development objectives, identification of priority sectors and projects.

4.1 CITY OPINION SURVEY

The CCCBP consultants conducted city opinion surveys in 2 phases: first in the

inception stage and second in the interim stage to get the views of the stakeholders

of the Municipality. The rationale behind conducting surveys in two phases was to

evolve a broad vision for municipality considering the problems, prospects,

aspirations, and vision of different sections of the society. The initial finding of the

surveys conducted was included in the inception report. The detailed survey,

analysis and findings (First & second stake holder�s consultation) are detailed out in

the sections below:

4.2 KEY ISSUES HIGHLIGHTED IN THE CONSULTATION MEETING

The issues highlighted by the elected representatives and administrative staff are

summarized as under:

1. The water bodies in the town are not maintained. Desilting of Retteri is

needed.

2. Removal of encroachments on major roads to ease congestion

3. Improvement to the existing burial ground facilities

4. The Bus stand needs up-gradation. The Bus service facilities within the

Municipal area and to other areas of the town are inadequate

5. Inadequate water supply to some areas of the town.

6. Development of parks and play fields in park open spaces

7. Lack of UGD in the town.

8. Proper disposal for storm water need to be done

9. Municipality lacks in the infrastructure facilities in Schools.

4.2.1 SECTOR PRIORITISATION

Projects identified in the City Development Plan cannot be taken at one step for

implementation due to constraints like finance, institutional capabilities etc. Thus,

phasing of the projects based on stakeholder�s priority would be a viable option for

implementing projects. During City Opinion Surveys, Stakeholders have been asked

to priorities the sectors pertaining to Physical infrastructure, Social Infrastructure and

Environment and is presented in a scale of 0-100* scores.


- 25 -


4.2.1.1 PHYSICAL INFRASTRUCTURE PRIORITY

Based on City Opinion Survey findings, Stakeholders have given priority to the

sectors related to Physical infrastructure on the following order:

Under Ground Drainage

Drinking Water Supply

Road Network

Storm Water Drainage

Parking

Solid Waste Disposal

Street lighting

Transport

Source: From Stake Holder�s Survey

*Sector is highly prioritized by the Stakeholders if it gets 100 score and least prioritized

if it gets 0 score.

4.2.1.2 SOCIAL INFRASTRUCTURE PRIORITY:


sectors related to Social infrastructure on the following order:

Schools and Colleges

Health facilities

Parks, Playfields

Public transport

Market

Public Toilet

Community hall

Figure 4-1: Priorities for Physical Infrastructure

50

60

70

60

80

100

90

80

0

20

40

60

80

100

120

Transport Street

Lighting

Parking

Facilities

Solid

waste

Disposal

Strom

Water

Drainage

UGD Drinking

Water

Road


- 26 -


Figure 4-2: Priorities for Social Infrastructure


Since the town lacks basic infrastructure facilities like adequate treated water,

sewerage and sanitation, Solid Waste treatment plant, etc. citizens of Madhavaram

are susceptible to various health hazards. Hence, they have insisted Health facilities

as one of their high priority sector.

4.2.1.3 ENVIRONMENTAL ISSUES


Environmental Issues on the following order:

River/Lake

Water Pollution

Open drainage

Land Pollution

Air pollution

Noise Pollution

60

40

80

40

90 90

75

0

10

20

30

40

50

60

70

80

90

100

Market Public

Toilet

Parks

and

Recreation

Community

Hall

Health

Facilities

Schools

and

Colleges

Public

Transport


- 27 -


Figure 4-3: Priorities for Environmental Protection


65

0

25

80

10

100

0

20

40

60

80

100

120

Open

Drain

Noise

Pollution

Land

Pollution

Water

Pollution

Air

Pollution

River


- 28 -


555 VVVIIISSSIIIOOONNN AAANNNDDD SSSTTTRRRAAATTTEEEGGGIIICCC PPPLLLAAANNN A vision statement is a primary step to where a town wishes to be in 25-30 years as its

preferred future. It is a realistic and reliable statement, reflects the competitive

advantages, preferences & values of city dwellers, physical characteristics, historic

and cultural characteristics and relation to regional and local economies. Vision

gives a sense of direction and purpose to the plan, focus on and encourage

creative solutions in an open manner building in interest and commitment.

One of the key steps involved in the formulation of vision is the SWOT analysis, which

is based on stakeholder feedback and expert analysis of the town.

5.1 TOWN LEVEL SWOT

The town specific SWOT for Madhavaram Municipality with reference to its regional

context is given in the table below:

Table 5-1: Town level SWOT

Strength Weakness

Proximity to Chennai and accessibility to

surrounding urban centers

High rate of land conversion due to rapid

urbanization

Part of Chennai Metropolitan Area and

Headquarters of Ponneri Taluk

Environmental pollution due to untreated

industrial effluents

Located near Red hills, major source water

supply to CMA and Rettai Eri (Minor source) Lack of public utility Infrastructure

Located along Great Northern Trunk Road

connecting the city with Nellore - Kolkata and

other urban nodes Traffic congestion due to encroachments on

road Serves as hub for lorry transport in the city

Presence of 'Central Dairy'- Milk depot

Presence of Industrial estates in & around the

town Encroachments on roads and water bodies.

Existence of Directorate of Research of Tamil

Veterinary and Animal Sciences University

and Horticultural Training Centre.

High percentage of slum population

Opportunities Threat

Development of international class

connectivity Lack of adequate water supply

Availability of land for future development

High levels of population growth due to

immigration

Establishment of Industrial parks and industrial

estates - TALCO

Threat to water bodies - sand quarrying, lorry

cleaning and Brick Kilns

Effort to enhance city landscape and

recreational spaces

Town requires significant investments in basic

infrastructure


- 29 -


Access for health facilities to Chennai ' the

health capital of the country'

Competing economic activities in the

adjoining areas

5.2 VISION FORMULATION

Vision statement for the town is arrived based on the feed backs received from the

stake holders, regional growth opportunities and expert survey of the municipal

services for the perspective year of 2030. Vision forms an essential step in building a

physical and Socio-economic development strategy.

The Madhavaram municipality is envisioned as �An ideal residential town in the

fabric of Chennai Urban Agglomeration with access to industrial base for sustained

economic development �

However to achieve this vision and to translate it into Strategies and Projects, the

mission statements are evolved.

Mission 1:

To achieve a Sustainable Environment by 2015 so as to prepare Madhavaram as

competing City for induced investments

Mission 2 :

To develop identified areas both in as well as outside the town limit, the following

action areas are required to achieve the above mentioned mission.

Improved level of Urban service delivery

Regulating Physical Growth

Strengthening Municipal finance

Improving Urban environment

Strengthening the Ulb and Improving Urban governance practices.

Improved Transport Infrastructure

5.3 STRATEGY OPTION FOR ECONOMIC DEVELOPMENT

Chennai, the fourth largest metropolis in India is the focus of economic, social and

cultural development. Government has been considering declaring the areas

adjoining the CMA as a Region comprising parts of Thiruvallur and Kancheepuram

Districts for preparing Regional Plan, considering the developments coming up in

the Kelambakkam-Tiruporur, Orgadam-Sriperumbudur and Gummidipoondi-Ponneri

areas. Madhavaram lies in the Gummidipoondi-Ponneri area. The economic

development strategies to harvest the proposed development initiatives for the

town is as follows

1. Benefit from the proximity to Chennai City to generate employment

opportunities and Socio - economic development.


- 30 -


Madhavaram municipality is situated in the northern suburb of Chennai City

and forms a part of Chennai Metropolitan Area. The Development of Chennai

- Manali - Ennore Corridor linking to Ennore Port and the Great Northern Trunk

Road connecting the city with Nellore and Kolkata further adds the base for

development.

2. Strengthening the regional linkages � MRTS connectivity

The municipality serves as service center to the city due to the presence of

Madhavaram Central Dairy which supplies milk to the city and the truck

terminal that serves as a hub for lorry transport in the city. Madhavaram being

a part of Chennai urban agglomeration, the road and rail linkages need to be

strengthened. These regional linkages will further boost up the economic

growth directly and indirectly.

3. Good quality services, housing and recreational areas � Neighborhood town

The spiraling scope for industrial development in the region will create high

demand on infrastructure services, housing and recreational facilities.

Madhavaram serves as a residential neighborhood. Improving the service

sector such as local body services, health, education and recreational

facilities, establishment of regional linkages would not only increase the

employment opportunities but also improve standards of living in this suburb.

4. Build on the industrial base to create further scope for development.

To strengthen the economic base of the region, promotion of industries is an

indispensable requirement. Therefore, the following efforts may be initiated to

stimulate industrial development.

Establishment of Warehouses

Establishment of industrial parks and SEZs in the region

Guidance through research and training institutes

Establishment of Industrial Estates

Development of IT/ITES parks

a. Establishment of Warehouses

Chennai has been gradually emerging as a key warehousing hub in the south due

to strong infrastructural support, good connectivity and presence of ports.

Moreover, land parcels are available in the suburbs and peripheral areas at

competitive prices. The NH-4 which links Chennai to the western cities like Bangaluru

and Mumbai has become the source of warehousing operation in the state. The

northern areas of the city like Madhavaram and Red Hills which connect the cities

to Hyderabad and Kolkata in the east have also grown in prominence in

warehousing. The traditional warehousing centres in Red Hills and Madhavaram,


- 31 -


which are well linked to the ports has amble potential for establishment of

warehouses.

b. Establishment of industrial parks and SEZs in the region

Traditionally, North Chennai has been the centre for industrial investment.

Development of SEZs and Industrial parks in this region abutting NH 5 will generate

more �blue collar� jobs in line with the potential assessed for the area.

c. Guidance through research and training institutes

Numbers of unskilled and semi-skilled workers are bound to rapidly increase due to

migration from rural areas and saturation of agriculture sector. Therefore, vocational

educational institutions in the CMA have to be strengthened and reoriented to

meet the market demand.

c. Establishment of Industrial Estates

Small-scale industrial sector is a powerful tool to generate more industrial

employment. Therefore, infrastructure facilities may be upgraded for industrial

estates and relief measures can be initiated to rehabilitate viable sick units. The

system of common application form and the single window clearance can be

extended to small-scale industries.

Action has been initiated by SIDCO to establish Flatted Factory Blocks in

Madhavaram. [�Flatted factory� means a premises having group of non-hazardous

small industrial units having not more than 50 workers. These units may be located in

multi-storeyed buildings]. Development of flatted factories and industrial clusters will

further generate employment.

d. Development of IT/ITES parks

The Real estate investors who have focused on the southern part of Chennai started

looking at opportunities in the north of the city due to the low land cost. Several

IT/ITES companies have set up operations in the North Chennai suburb. Providing a

conducive environment needed for multi nationals to set up shops would facilitate

the development in the region.

5. Effort to Conserve Natural Environment

The Manali-Madhavaram jheel ecosystem is listed in the Directory of

Wetlands published by World Wildlife Fund (WWF). The Madhavaram jheel is

situated near the Manali jheel covering an area of 30 acres. It has patches of

floating vegetation: lily, wetland rushes and islands of grasses.

The iheels harbour native fish such as tilapia, freshwater gastropod,

applesnail, insects such as dragonfly, damselfly, pond skater, diving beetle

and keelback water snakes. Birds like pheasant-tailed jacanas, sandpipers,


- 32 -


snipes, stints, stilts, lapwings, plovers, terns, gulls, moorhen, dabchick, snake

bird or darter, winter-visiting waders and wagtails, ducks like the whistling teal,

cotton teal and the migratory garganey teal, three different species of

bittern, egret and raptors like osprey and the marsh harrier are found in the

Madhavaram jheel.

Household Sewage and the Effluents from Madhavaram Dairy cause oxygen

depletion in the water leading to fish mortality. Due to silting, the storage

capacity of both the jheels has reduced. The lack of comprehensive wetland

policy, Master plan, unplanned urbanization and growing population has

taken their toll on wetlands. Hence, comprehensive approach is needed to

conserve the wetland natural environment in the town.


- 33 -


666 HHHOOOUUUSSSIIINNNGGG IIINNNCCCLLLUUUDDDIIINNNGGG SSSLLLUUUMMMSSS

6.1 EXISTING HOUSING SCENARIO

6.1.1 Housing Condition

The Town has 15,875 residential units of which 11.77% residential units are temporary

and 78.48% accounts for Permanent Structures (See Figure 6.1) as per the Census

2001 data on Housing and Housing amenities

Temporary11.77Semi-

Permanent9.75

Permanent78.48

Figure 6-1: Housing Condition

Source: Compiled from Housing and Household amenities census, Census of India, 2001

6.2 EXISTING SLUM SCENARIO

6.2.1 Slum Population

There are 19 slums in the town and 19% of the total population (15867 persons) lives in

slums.

6.2.2 Issues

Lack of basic services leads to open defecation and garbage disposal within

the municipal limits

Lack of awareness among slum dwellers regarding health and hygiene

Increasing informal settlements on public lands by low income in-migrants due

to unaffordable land supply within municipal limits

Increasing inadequate serviced land for housing within municipal limits

Lack of wastewater discharge coarse to discharge the wastewater of

municipality, the slum lying in low lying area


- 34 -


6.3 ISSUES

Due to improper monitoring and implementation of development regulation

more than one-third of the town population lives in slums (36.94% of the total

population live in slums)

Lack of basic services leads to open defecation and garbage disposal within

the municipal limits

Lack of awareness among slum dwellers regarding health and hygiene

Increasing informal settlements on public lands by low income in-migrants due

o unaffordable land supply within municipal limits

Increasing inadequate serviced land for housing within municipal limits

Lack of awareness regarding health and hygiene

Lack of wastewater discharge coarse to discharge the wastewater of

municipality, the slum lying in low lying area

6.4 PROPOSAL

The additional proposals identified are detailed out in chapter 10.

Chapter � 7 Final report: Madhavaram Municipality

- 35 -


777 IIINNNSSSTTTIIITTTUUUTTTIIIOOONNNAAALLL FFFRRRAAAMMMEEEWWWOOORRRKKK

In order to give effect to the provisions of 74th CAA, the municipal structure was

revised to include elected council to the already existing administrative setup. For

this purpose elections were held in every municipality under the new act once in

every 5 year. The organizational structure of the Madhavaram Municipality generally

consists of Elected Council and Executive wing.

7.1 ELECTED COUNCIL

The Elected Council, the political wing consists of 30 elected councilors. Each

Councilor represents one electoral ward. The Councilors in turn elect the

Chairperson as head of the Municipal Council. The chairman is the head of the

municipal council and he is assisted by vice chairman.

To assist the council in its functioning, the following 4 administrative committees

have been constituted namely:

Appointment committee

Agreement/Contract Committee

Taxation Appeal Committee

Local Planning Authority

The committees consists of the Chairman, the Municipal Commissioner and elected

Councilors as members. Appointment Committee is a statutory committee, and the

Chairman of the Municipality is also the Chairman of the committee. The

Committee is responsible for making appointments for posts which fall under the

purview of the Appointing Committee. Contract Committee is another statutory

committee and quotation of works is finalized by the Contract Committee. The

Taxation Appeal Committee is responsible for hearing of appeals of the tax items.

The Council is the decision making as well as policy making body.


- 36 -


Figure 7-1: Organisational structure of Madhavaram Municipality

7.2 EXECUTIVE WING

The executive wing is responsible for the Municipal operations and maintenance.

The Commissioner is the administrative head of the executive wing and is supported

mainly by 5 department heads in the Municipal operation and maintenance. The

organization structure of the Municipality comprises of 5 functional departments

namely,

1. General Administration

2. Engineering and Water Supply Department

3. Accounts Department

4. Public Health Department, and

Town Planning Department

7.2.1 General Administration

The municipal commissioner is the executive head of the ULB. He is supported by

department head like, Municipal Engineer, Town Planning Officer and Manager.

Manager is the head of the General Administration next to Commissioner and he is

responsible for general supervision and Administration of Office. The Administrative

wing looks after general administration of the Municipality including establishment

matters such as appointments, pay and allowances etc., correspondence with

Government and other departments, public relations, redressing of public

MADHAVARAM MUNICIPALITY

Executive Body

Commissioner

GENERAL: Financial Administration and Budget & Accounts

ENGINEERING: Water Supply, Road laying and Street lights

REVENUE: Tax & Non Tax Collection

PUBLIC HEALTH: Sanitation, Drainage Public Health, Birth & death registration

TOWN PLANNING: Planning, Designing and Approval

Elected Body

Chairman

Vice Chairman

Ward Councilor


- 37 -


grievances, legal matters and lawsuits and all matters related to office

administration. All establishment matters are dealt with in the General Administration

7.2.2 Health Section

The Municipal Sanitary officer is the overall in-charge of the Health Section. He looks

after the prevention of Food Adulteration, conservatory work including sweeping of

Streets maintenance of Drainage, controlling of epidemic diseases, ensuring of

license to D&O trades, Birth and Death Registration, issuing birth and death

certificate and also responsible for removing of dead animals and stray animals. The

Sanitary Supervisor and Sanitary Workers are assisting the Municipal Health Officer.

The Municipal Health Officer is also responsible for solid waste management.

7.2.3 Engineering Section

The Municipal Engineer is the over-all in-charge of Engineering Section. Municipal

Engineer will control the Assistant Engineer, Technical Assistant, Road Mazdoor,

Electrical Superintendent, Wireman, Helper and Fitter working in the section. The

Municipal Engineer looks after the maintenance of Street lights, Road laying,

construction of building, drainage, maintenance of parks, head works and

municipal vehicles. The other subordinate officers are assisting the Engineer to look

after the above work.

7.2.4 Town Planning Section

In Madhavaram Municipality, the Town Planning Officer is the over all in-charge of

the section. He looks after the work of preparation of Master Plan, maintaining the

land use as per the approved master plan, Licensing of plan building, booking of

unauthorized construction, approval of lay out in the town limit, controlling and

removing the encroachment in the town. The Town Planning Inspector will assist the

Town Planning Officer in the planning of future development of the town and allied

works.

7.2.5 Accounts Section

The Accounts section is included in General Section. The Accountant is the Head of

the wing and controlling financial matters. It involves into preparation of Budget

discipline and Actual based Accounting System.

The Revenue section is headed by the Revenue Inspector and the inspector is

supported by Bill Collectors with the task collection of taxes and Non-taxes and is

held responsible for the entire collection of Revenue.


- 38 -


7.3 CITIZEN�S CHARTER

As per the directions of the Government of Tamil Nadu, the Municipality has

published its �Citizens Charter� during 1998 to bring ULBs functioning closer to the

people. The main focus of this charter is to introduce transparency, responsibility

and user friendliness in its service provision and maintenance. The objectives of this

chapter are to:

Provide fast and quality services to citizens

Inform the public about time limits to address the problems

To provide transparency in administration

7.4 INFORMATION CENTRE

In order to provide all the relevant information to the town citizens, the Municipal

Office has a reception cum information centre which also supplies various forms

required by public to submit applications to the ULB. This reduces the time required

on the part of the public and also provides information needed by the people on

the spot.

7.5 STAFF STRENGTH POSITION AND VACANCY POSITION

As of now, there are 206 personnels are working in various sections of the

municipality against the sanctioned strength of 264 post. There are 58 vacancies in

the 264 proposed norms strength of the Madhavaram Municipality. Public health

staff including sanitary workers constituted 82% of the total staff strength of the

municipal. The details are given in the table below.

Table 7-1: Staff Strength and Additional Staff Requirement

Sl.

No Name of the Post (Service wise)

Sanctioned Staff

strength

Present staff

strength

General section

1 Manager 1 1

2 Revenue Officer 1 0

3 Accounts officer (A.D. in the cadre of LF

Accounts) 0 0

4 Accountant 1 1

5 Assistant Accountant 2 2

6 Assistants 2 1

7 Revenue Inspector 1 1

8 Market Superintendent 1 0

9 Junior Assistant 8 6

10 Cashier 1 0

11 Typist 2 1

12 Revenue Assistant (Bill Collector) 10 4


- 39 -


Sl.


Sanctioned Staff

strength

Present staff

strength

13 Store Keeper 0 0

14 Record Clerk 1 1

15 Office Assistant 8 3

16 Community Organiser 1 1

17 Assistant Organiser 1 1

18 Data Entry Operator 1 1

19 Night Watchman (Office) 2 1

Total 44 25

Engineering Section

1 Municipal Engineer Gr-I 1 1

2 Assistant Engineer / Junior Engineer (Public

Works / Water Supply) 2 0

3 Draughtsman 1 1

4 Work Inspector 1 1

5 Tap Inspector 1 0

6 Driver 3 3

7 Wire man 4 4

8 Helper 4 4

Total 17 14

Health Services

1 Sanitary Officer 1 1

2 Health Visitor 2 1

3 Sanitary Inspector 3 3

Total 6 5

Health Service (Non Centralized)

1 Maternity Assistant (Material & Child Health) 3 1

2 Field Assistant 1 0

3 Driver (Lorry, Motor or Tractor) 5 9

4 Sanitary Supervisor 6 7

5 Public Health Peon 1 0

6 Ayah (Maternity and Child health) 3 1

7 Sanitary Workers (All type) 164 131

8 Clerk 1 1

9 Multipurpose Health worker 5 5

10 Helper 3 3

Total 192 158

Maternity Centre , General Dispensary, Ayurvedic / Siddha Dispensary

1 Medical Officer 2 2

2 Pharamacist 0 0

3 FNA/MNA 0 0

4 Night Watchman 0 0

5 Sanitary Worker 0 0


- 40 -


Sl.


Sanctioned Staff

strength

Present staff

strength

Total 2 2

Town Planning Section

1 Town Planning Officer Grade - II 1 0

2 Town Planning Inspector 1 1

3 Chainman 1 1

Total 3 2

Total 264 206

7.6 ADDITIONAL STAFF REQUIREMENT:

Taking into consideration of the implementation of the proposed projects under the

City Corporate cum Business Plan, the vacant posts in Engineering Section, Public

Health Section, and Town Planning Section need to be filled up expediously.

In view of appointing Project Management Consultant for the proposed water

supply and UGSS projects, Privatization of Solid Waste Management and

Maintenance of street lights through ESCO/ Private agency, the various sections of

the municipality need to be strengthened with the following personnel:

Table 7-2: Additional Staff Requirement

Sl No Name of the Post Section No. of Personnel

1 Accountant for Infrastructure project General 1

Office Assistant General 1

2 Revenue Inspector General 1

3 Assistant Engineer/ Junior Engineer

(WS, UGSS, UIDSSMT & IHSDP Projects)

Engineering 2

Maternity Assistant Public health 1

4 Overseers (UIDSSMT & IHSDP Projects) Engineering 1

Town planning officer Town planning 1

Total 8

Source: Analysis and discussions with Municipal officials

7.7 INSTITUTIONAL FRAMEWORK FOR SERVICE DELIVERY

The responsibility for good governance and management is vested with the urban

local body. Although, the ULB is responsible for overall development of the

municipality including provision and maintenance of services, there are other

agencies responsible for planning, development and provision of specific services.

Such key stakeholders include:

Table 7-3: Institutional Framework for Urban Service Delivery

S.No Services Planning and design Implementing

agency

1 Master plan preparation and

Updation

DTCP Municipality


- 41 -


S.No Services Planning and design Implementing

agency

2 Water Supply TWAD TWAD

3 Sewerage TWAD TWAD

4 Drainage ULB ULB

5 Solid waste Management ULB/CMA/TNUIFSL ULB

6 Roads and Highways Highways dept /

Municipality

Highways dept /

Municipality

7 Bridges and water bodies Municipality /

CMA/PWD

Municipality / PWD

8 Street Lighting Municipality/TNUIFSL Municipality

9 Parks and playfields Municipality Municipality

10 Health and Education GoTN / Municipality GoTN / Municipality

11 Slum Development Municipality/ TNSCB Municipality

12 Environmental protection TNPCB

7.8 ORGANIZATION MANAGEMENT

As been seen from various sections of the report particularly relating to service

deliveries, there are gaps of various sizes which result in a shortage in the delivery

system. This could be overcome by certain specific options:

In most of the service sections of the Municipality, there are vacancies which

could be filled up. This alone may not ensure a totally satisfactory system

delivery of the services as it requires an efficient personnel management

especially assigning the right work to the right person in a time frame.

The organization and delivery mechanism in some of the important

personnel intensive service sectors have to be modernized. To mention the

important few relate to solid waste management, where large no. of workers

and staff are involved, could be decentralized resorting to localized and

more efficient composting and Landfill system. This could be assigned to

NGOs, voluntary organizations or even the respective resident associations in

the various colonies. This is a remunerative venture as is proved in many

places. This process not only will significantly reduce the burden of the

Municipality in engaging workers and staff but also will improve its resource

position either through substantial reduction in a cost of solid waste

management and / or could improve in the resource position as a

remunerative venture.

Tamil Nadu Urban Development department has identified Landfill site

through GIS in combination with 2 or more municipality as a centralized

disposal of solid waste. This seems to reduce the cost of solid waste

management for each municipality.

Privatizing the operation and maintenance of water supply, collection of

taxes and fees and maintenance of public assets particularly sanitary and

public health units is a well known option. This also could be taken up as joint

venture between urban local body and private sector.


- 42 -


888 UUURRRBBBAAANNN IIINNNFFFRRRAAASSSTTTRRRUUUCCCTTTUUURRREEE AAANNNDDD SSSEEERRRVVVIIICCCEEESSS

8.1 WATER SUPPLY

8.1.1 Existing Scenario for Water Supply

The main sources of water supply in the municipality are the surface water supplied

by CMWSSB and ground water sources located within the municipal limits. The

general details of water supply in the town are given below:

Table 8-1: General details of Water Supply

Sources of ULB

Puzhal Eri - CMWSSB

deep bore wells - 485 nos

open wells - 60 nos

Population (2001) 76093

Present population(2009) 83120

Area of the town 17.4 sq.km

Supply per day 50.86 LL

Requirement per head 135 lpcd

Supply per head 61.20 lpcd

Frequency of water supply Daily - 3 hrs

Number of power pumps 28

Number of public fountains 1505

Number of hand pumps 10

Storage:

Number of OHT�s and capacity

(non-potable water)

28 nos and 15.30 LL

60000 litre capacity � 25 nos


HDPE tanks

233 nos and 3.98 LL


2000 liter capacity � 165 nos

Distribution:

Length of pumping mains 4.5 km

Length of Distribution main 45.85 km

Total number of assessments 15000

No. of HSC�s 1300

Domestic connections 1300

Non Domestic connections 0


- 43 -


Figure 8-1: Water Supply Layout in Madhavaram Municipality


- 44 -


8.1.2 Storage and Distribution

The total quantity of supply is 50.86 LL , with 43.86 LL from local sources and 7 LL from

CMWSSB. The town has 28 OHTs (non-potable water) and 233 HDPE tanks through

which the water is supplied. The total storage capacity including the HDPE tanks is

19.28 LL.

The water from CMWSSB and local sources are distributed to the town through OHTs,

tanker lorries, public fountains, house service connections etc.

8.1.3 Performance Indicators

Attributes Components Indicator Formula Value unit

Service

Level

Service

Delivery

Water supply

per day

Total supply to the

city per day / total

population of the

city

61.20 Liters per

capita per

day

Average

hours of

supply per

day

Hours of supply on

supply day /

number of days

between two

supply day

3 Hours

HSC

coverage

Existing House

Service

Connections /

Total property

assessments

8.6 Percent

Storage

capacity

Storage

capacity

w.r.t.

demand

(Total storage

capacity(ML)/Total

water supplied

(MLD)* 100

14.43 Percent

8.1.4 Issues

1. Low coverage of House Service Connections (8.6%)

2. Increasing demand supply gap due to lack of additional water source.

3. Exploitation of ground water sources may lead deterioration on quantity and

quality.

4. Inadequacy to meet the requirement of UGSS at 135 lpcd.

5. Inadequate storage capacity for the current demand.


- 45 -


6. High Operation and maintenance cost and low cost recovery from the existing

WS system.

8.1.5 Demand Supply Scenario

The demand for water supply in the base, intermediate and ultimate period is given

in table below.

Table 8-2: Demand supply gap for project population

Year 2009

(Base year)

2024

(Intermediate year)

2039

(Ultimate Year)

Population 83120 145000 180000

Per Capita (lpcd) 135 150 150

Demand (LLD) 112.21 217.50 270.00

Supply of Water

(LLD) 50.86 50.86 50.86

Gap (LLD) 61.35 166.64 219.14

Source: CMWSSB DPR and calculations

Water Demand:

The intermediate and ultimate demand for water supply is 217.50 LL and 270 LL. As

per CPHEEO norms the current demand is calculated at the rate of135 lpcd and as

Madhavaram is proposed to be a part of the corporation, the intermediate and

ultimate demand is calculated at the rate of 150 lpcd.

Storage demand:

As the current year demand is 112 LLD at 135 lpcd, the existing storage capacity

works out to 14%, which is inadequate.

8.1.6 Proposal

The proposal for water supply is given in chapter 10.

8.2 SEWERAGE

8.2.1 Sewerage

At present, Madhavaram municipality does not have a Sewerage network. The

disposal from individual assessments are through individual septic tanks. The sullage is

let out into the open drains or low lying lands nearby. As the municipality has

population over 80000 and is covered under the Chennai metropolitan area, UGSS

to this town is an immediate necessity.


- 46 -


8.2.2 Issues

Absence of sewerage system and inadequate sanitation facilities.

Threat to water bodies and low lying lands due to untreated disposal and

stagnation of domestic waste .

8.2.3 Proposal By Municipality

The town has been divided into 4 packages for the provision of UGSS for the DPR

prepared by Wilbur Smith Associates for Phase -1. The status of UGSS proposal is as

follows

Table 8-3: Status of UGSS proposals

Description Status

PHASE I

Package 1 Under execution

Package II & IV Work order issued

Package III Tendering in progress

PHASE II(uncovered areas) DPR under preparation

The proposal for sewage and sanitation including the public conveniences are given

in chapter 10.

8.3 STORM WATER DRAINAGE

8.3.1 Existing Condition of Storm Water Drainage

Madhavaram Municipality has 24.52 km of open pucca storm water drains.

According to the existing terrain, the storm water from the eastern part and central

part of the town drains to Madhavaram Eri. During monsoon, the surplus water from


- 47 -


Retteri reaches the sea through Thanikachalam canal (connecting canal to

Buckingham Canal) via Madhavaram which is causing inundation. The details of

road length and existing drains are given below:

Table 8-4 � Existing Strom water Condition

S.No Description Length in km

1 Total length of roads and streets 127.17

2 Length of existing Drain 24.52


Service level Indicator Normative

Standard Existing status

Percentage of road length with storm water

drains 130% 20%

8.3.3 Issues in Storm Water Drainage and Household Drainage

Absence of comprehensive drainage system.

Water stagnation is increasing due to dumping of household waste into the

drains

Stagnation of water during monsoon causes damage to private and public

property.

Inadequate storm water drainage coverage.

Inadequate trunk drains leading to the major water bodies in the

surroundings.

8.3.4 Proposal

The proposal for storm water drainage system for horizon year is given in chapter 10.

8.4 SOLID WASTE MANAGEMENT

8.4.1 Existing situation

The daily average waste generation in Madhavaram municipality is 52 Metric Tonnes

(MT) which works out to 625 grams per capita per day. The salient features of the

solid waste management in Madhavaram municipality are given below:

Table 8-5 � SWM-General details

S.No Description units Numbers

1 Total Solid waste Generation MT 52


- 48 -


2 Collection efficiency % 90

3 Number of wards privatized Nos 15

4 Per Capita Waste generation grams 625

Primary Collection

5 Number of Tricycles Nos 36

6 Number of tricycle bins Nos 270

Secondary Collection

7 Number of Dumper placer bins Nos 45

8 Number of Compactor bins Nos 40

9 Dumper placer lorries Nos 2

10 Compactor lorry Nos 1

11 Mini lorries Nos 3

12 Power tillers Nos 2

Source: Madhavaram municipality

Out of the total waste collected, 54% of the waste is generated from residential, 8%

of the waste is generated from street sweeping, 31% waste from commercial

establishments and institutions. About 2% of waste is generated from Hospital (bio-

medical waste) and pathology lab.

Table 8-6 � Sources of Waste Generation

S. No Category Source Percentage

1 Domestic waste Residential Houses 54

2 Trade waste

Trader, Hawker, shops, markets, offices

Marriage halls, commercial houses,

hotels

31

3 Clinical waste Hospitals and Nursing Homes 2

4 Other waste

including Industrial

waste

Drain silt, building activity waste, street

Sweeping, waste from Industries etc.,

13

Source: Madhavaram Municipality, 2007

8.4.2 Primary Collection

The solid waste generated is collected door to door through tricycles with

segregation bins for source segregation of waste. The door to door collection is


- 49 -


privatized in 15 wards. There are about 85 container bins (dumper placer bins and

compactor bins) which are placed at various locations of the town.

8.4.3 Secondary Collection

The waste collected in the dumper placer

and compactor bins are transferred to the

compost yard through dumper placer lorries,

compactor lorry and mini lorries. At present

the waste collected is dumped in the

dumping yard located at Kilburn Nagar (3.66

acres).

Table 8-7: Solid Waste Collection in Madhavaram Town

Type of Practices Availability Practice Duration

Yes No Daily Half

Weekly

Weekly

House-to-house waste collection

Central collection

Street sweeping and collection of

sweeping wastes

Secondary Segregation

Desilting of storm water drains

Desilting of service drains

Secondary waste collection

Transportation of wastes

Disposal of wastes Source: Public Health Department, Madhavaram Municipality, 2006-07

8.4.4 Issues

Uncontrolled littering along main roads & streets.

Absence of effective public participation in segregation of recyclable waste

Lack of adequate infrastructure in compost yard

Kilburn Nagar Compost Yard


- 50 -


Inadequate vehicles for secondary collection.

Inadequate tricycles for primary collection

Absence of scientific treatment and disposal of garbage

8.4.5 Proposal

The proposal for solid waste management for the horizon year 2039 is given in the

chapter 10.

8.5 STREET LIGHTING

8.5.1 Status of Street Lighting

There are 4680 nos. of street lights in Madhavaram municipality of which tube lights

constitutes 84% and the sodium lamps 16%.

The average distance between street lights is 29 meter against the standard norms

of 30m. However, the distance between the street light poles on all the roads varies

from 20m to 40m.

Table 8-8: Existing Street Light and energy consumption

Sl. No Existing Light details Numbers % distribution Consumption in w

1 Tube lights (40w) 3942 84 216810

Sodium Vapour lamp (250w) 738 16 208116

TOTAL 4680 100% 424926

Per hour consumption 424926 W or 424.926 kW/hr

No of Timer switches required 110

No.of timer switches

available 60

Source: Analysis and calculations


Components Indicator Formula Value

Street light

Coverage

Number of street

light per km of road

length

Number of street lights /total

road length in km

29

8.5.3 Issues

Lights mounted on electricity poles which are relatively shorter in height and

restrict the spread of light to a limited area.

Narrow paths where these poles become hindrance to traffic

Absence of energy efficient techniques in street lighting.

Required high mass light at the junction of GNT & MRH road.


- 51 -


8.5.4 Proposal

The proposal for improving street light facilities is given in chapter 10.

8.6 ROAD

Madhavaram lies on the NH-5 in the northern suburb of Chennai, connecting the

industrial towns of North Tamil Nadu and South Andhra Pradesh.

The major road network in the town connecting to various urban nodes are

Erukkancheri High Road � NH 5, Perambur High Road, Jawaharlal Nehru Road,

Madhavaram High Road.

8.6.1 Town Level Road Network and Hierarchy

The circulation roads in the town are

maintained by the municipality and partly by

Highways Department. The total length of

road network in the town is 127.17 km. The

category of the roads maintained by the

municipality is given in table below:

Table 8-9: Types of Roads in Madhavaram Municipality

S. No. Type of Roads Length in

km

Percentage

1 Highways 10.00 -

Municipal roads

2 B.T. Roads 101.08 79.50

3 C.C. Roads 5.31 4.20

4 WBM Roads 16.79 13.20

5 Earthen 3.99 3.10

Total municipal road length 127.17 100%

Total road length in the town 137.17

Source: Madhavaram Municipality

8.6.2 Parking

There is no authorized parking area in the town. The private vehicles such as auto-

rickshaws, four wheelers especially trucks, two wheelers are generally parked on

road intersection or along the road sides leading to congestion and reducing the

carrying capacity of the roads.


- 52 -


8.6.3 Truck Terminus

The truck terminus existing in the town is maintained by the Chennai Metropolitan

Development Authority over an extent of 100 acres located near the junction of 100

feet Road and the GNT Road, with easy access to Chennai city, Port and Railways.


Indicator Formula Benchmark Current

status

Road Density Road length /total area of the

town

10-15

km/sq.km

7.8 km/sq.km

Per capita road

length

Total road length / total

population

1.75 m 1.65 m

Percentage of

surfaced roads

Surfaced roads / total road

length

100% 83%

8.6.5 Public Transport System

The bus transport is being operated and maintained by Metropolitan Transport

Corporation (MTC). There are eight buses that ply through the town which connects

the town with other areas in the city and its suburbs. There is no railway line passing

through Madhavaram, residents normally go to Perambur (nearest railway station) to

travel in trains.

However para-transit modes like auto rickshaws are available for intra town

movement. There are approximately 125 auto rickshaws in the town. There are no

authorised parking spaces for auto rickshaws.

8.6.6 Issues

Inadequate coverage of surfaced roads

Absence of traffic signals in the town

Absence of Foot paths for pedestrian movement

Narrow roads creates heavy traffic in GNT road

Inadequate storm water drainage facilities on both sides of roads

Road margins are encroached by illegal parking and informal acivities

8.6.7 Proposals

Proposal for the upgradation of roads, widening, and improvement to road

geometry is given in chapter 10.


- 53 -


8.7 SOCIAL INFRASTRUCTURE FACILITIES

8.7.1 Educational Facilities

8.7.2 Existing Scenario in Educational Facilities

There are 23 schools in the town of which 6 elementary schools maintained by the

municipality. In addition to this, a teachers training Institute as well as 2 colleges

exists in the town for higher education.

Table 8-10: Existing Educational facilities in Madhavaram Town

Particulars No. of

Institutions

Elementary 11

Upper primary 1

Secondary school 4

Higher secondary 7

Total 23

Source: www.schools.tn.nic.in, Department of school Education

The key issues identified in the educational institutions are inadequate buildings in

the campuses, poor maintenance of buildings, insufficient sanitation facilities, play

materials and furniture etc.

8.7.3 Issues in Educational Sector

Poor infrastructure facilities in the elementary schools.

Inadequate class rooms, water supply and toilet facilities in Rajaji Nagar

school and Pal Pannai school

Lakshmipuram middle and higher secondary schools required computer

facilities, sanitation and water facilities.

No adequate space for greeneries open spaces in schools

8.7.4 Proposal

The Proposal for improvement of existing school buildings and other facilities are

given in chapter 10.

8.7.5 Health Facilities

The municipality maintains one maternity centre located at Swamy nagar. In

addition to this, the town has 3 private hospitals, 1 Government Peripheral hospital

http://www.schools.tn.nic.in,


- 54 -


and 4 private nursing homes functioning within the town meeting the health

demand of the town population.

The capacity of the Municipal Hospital is 25 beds.

8.7.6 Issues

Inadequate bed strength

Inadequate medical facilities

Inadequate infrastructure facilities

Inadequate space for hospital environment

Inadequate and unserviceable surgical instruments

Need to strengthen and improve the delivery of health care services

Required modern technologies for operation facilities

8.7.7 Proposal

The proposal for improvement for medical facilities is given in chapter 10.

8.7.8 Public Convenience

As per the municipal records more than 5000 houses have water closet and the

remaining houses do not have a safe sanitation facility.

From the Census data on Household and Housing Amenities, it is evident that about

68.37% of households have access to safe mode of sanitary disposal i.e. by the

means of Septic tanks and Pit latrines. However, about 31.63% of households do not

have access to safe mode of sanitation.

Table 8-11: Classification of modes of sanitary waste disposal by type

Facility by Type Households Percentage Mode

Safe mode of disposal Pit latrine 6228 39.23

68.37 Water closet 4626 29.14

Unsafe mode of

disposal

Other latrine 2288 14.41 31.63

No latrine 2733 17.22

Total Households 15875 100 100

Source: compiled from Household and Housing Amenities Census, Census of India 2001

Apart from this, Madhavaram municipality is maintaining 19 public toilets in different

areas of the town, which includes 3 ISP Toilets, 10 Vambay Toilets and 6 Public Toilets.

The public conveniences constructed under Integrated Sanitation Programme (ISP)

and VAMBAY Scheme has been handed over to Community Development Society

(Self Help Groups) for maintenance. The details of the public conveniences in the

town are given in the table below.


- 55 -


Table 8-12: Existing public toilets facilities

S. No Location of public

conveniences

Total Number of

seats

1 Laksmipuram 4

2 Vinayakapuram Burial ground

road

6

3 MGR Nagar Madura

Mettupalayam

6

4 Periyar Nagar 6

5 Ponniyamman Medu 6

6 Calcutta shop 6

7 Thiruvalluvar street 6

8 Kannapiran koil street 1 6

9 Kannapiran koil street 2 6

10 Udaiyar Thottam 1 8

11 Udaiyar Thottam 2 6

12 Udaiyar Thottam Pandiyan

street

6

13 Thattankulam road 8

14 Moolachatram 6

15 Idaima Nagar 6

16 Mandaiveli Telugu Colony 6

17 Mandaveli MGR street 6

18 Bharathiyar street 10

19 Eswaran koil street 10

Total number of seats 124

8.7.9 Proposal

The proposal for improvement for public conveniences is given in chapter 10.

8.7.10 Market facilities

The town has no market within its limits. The market demand of the town is met by

the retail shops and informal vendors within the town. The municipality intends to

purchase 2 acres of land from Tamil Nadu State Palmgur & Fibre Marketing Co-

operative federation Ltd for the purpose of developing market. The land will be

utilized for development of modern market complex with parking facilities. The

proposals are detailed out in chapter 10.


- 56 -


8.7.11 Burial ground

At present, municipality has eight burial grounds. At mandhaveli burial ground

installation of gasifier is under progress with a cost of Rs. 43 lacs.

8.7.12 Issues

Eerie and unkempt atmosphere of burial grounds.

Absence of approach roads and compound walls

8.7.13 Proposal

The proposal for Burial ground facilities are given in chapter 10.

8.7.14 Parks and playground facilities

The town has parks and open spaces within the municipality limit, in which only one

park (bank Colony Park) is provided with basic facilities. The issues identified are

Lack of maintenance

Absence of recreational facilities in all parks

Absence of basic facilities like water supply, lighting, public conveniences etc

The existing parks and open spaces vested with the municipality is given in the table

below

Table 8-13: Existing park and open space

S.No Location purpose Area (sq.m)

1 Teachers colony park 1367

2 KKR Nagar Park, vacant 1668

3 Secretariat colony Park, vacant 1260

4 Sivasakthi nagar Park, vacant 1348

5 Secretariat colony Park, vacant 1432

6 Deenadayalu nagar Park, vacant 1668

7 Roja nagar Park, vacant 1400

8 MBTT complex Park, vacant 872

9 Thanikachalam nagar (S.No 1220) Public purpose,

vacant

1345

10 Thanikachalam nagar (S.No 1186) Public purpose,

vacant

1345

11 Thanikachalam nagar (S.No 1184/1&2,

1229/1,2a,2b,2c))

Public purpose,

vacant

1345

12 Thanikachalam Nagar LPDM/DDTP

248/72

Public purpose,

vacant

1345

13 Moolachatram, Madhavaram , PPD/LO Park, vacant 285


- 57 -


14 Majestic colony PPD/LONo 17/89 Park, vacant 1114.8

15 Pukraj Nagar, LPDM/DDTP No 57/69 Park, vacant 1400

16 Periya Sekkadu, Madhavaram, PPD/LO

No 12/9

Park, vacant 1150

17 Jayalakshmi Garden, LPDM/DDTP Park, vacant 1200

18 K.K.R.Garden, PPD/LO Park, vacant 1380

19 Metha Nagar, LPDM/DDTP 127/71 Park, vacant 1500

20 Bharathi St. LPDM/DDTP Park, vacant 455

21 Vivekananda Govt. Servants Co- op

society PPD/LO

Park, vacant 1088

22 Kumaran St. Periya sekkadu CMDA

PPD/Lo

Park, vacant 236

23 Madhavaram, Perambur Co-Op Society

Layout

Park, vacant 409

24 Madhavaram, Perambur Co-Op Society

Layout

Park, vacant 784

25 M.G.R Nagar Park, vacant 1535

26 Thanikachalam Nagar Public purpose,

vacant

1240

27 Thanikachalam Nagar Public purpose

OHT

1696

Total area 32293.8

3.23 hectares

8.7.15 Proposal

The proposed projects for parks improvement are given in chapter 10.

Chapter �9 Final Report: Madhavaram Municipality

- 58 -


999 MMMUUUNNNIIICCCIIIPPPAAALLL FFFIIINNNAAANNNCCCEEE

9.1 OVERVIEW

Madhavaram Municipality maintains a municipal fund for managing the finances of

the Municipality. The accounts of the municipal fund were maintained on cash

based single entry system till the year 1999-2000. From 1.4.2000 onwards, accrual

based double entry book keeping system was implemented. The Municipality

maintains accounts separately for General Fund, Water Supply and Sewerage Fund

and Education Fund.

This Section contains a description of the municipal finances, the sources and uses

of funds, and an assessment of municipal finances based on important financial

indicators.

9.2 GENERAL DETAILS

Madhavaram is located at Thiruvallur District and the total population as per 2001

census is 76793 Nos. The urban poor comprise about 48% of the total population.

The total number of slums is 19 Nos. with total slum population of 37200 nos, which

aggregates to 48% of total population.

It is a Grade I municipality.

9.3 RECEIPTS

Receipts under the Revenue Account include taxes and fees, grants, water &

sewerage charges, income from properties, service charges charges & fees and

other income.

9.3.1 Property Tax

Property Tax is the single largest tax revenue source and accounts for around 27% of

the total revenue. This tax is levied on residential, commercial, industrial and vacant

lands. The property tax is levied on the basis of Annual Rental Value of the property.

The property tax is levied on the annual value of the property, which is determined

on the basis of gross rent at which the property can be reasonably expected to be

let out.

The Municipality currently charges property tax @ 12.5% per annum on the basis of

Annual Rental Value. The components of property tax are as below :


- 59 -


Table 9-1: Property Tax Components

Particulars % (Per Annum)

General 3%

Scavenging 2.5%

Lighting 2%

Water Tax )

Sewerage Tax ) 2.5%

Education 2.5%

Total 12.5%

The total number of property tax assessments is 12773 Nos. the breakup of which is

as below :

Table 9-2: Property Tax Assessments

Particulars Nos.

Domestic 10803

Commercial 1418

Industrial 157

State Government Properties 395

Public Sector Undertakings -

Total 12773

The last revision of Property Tax was carried out on 01.10.1998.

The total property tax collections during the last 6 years ended 2006-07 is as below :

Table 9-3: Property Tax � Growth during last 6 years

Year Rs. in lacs % Growth Rate

2001-02 171.99 -

2002-03 175.73 2.17%

2003-04 200.83 14.28%

2004-05 222.20 10.64%

2005-06 222.20 0.00%

2006-07 268.30 20.75%

It may be observed from the above that the average property tax collection is

around Rs. 225 lacs per annum and average growth over the years is around 10%. It

accounts for around 27% of total income.

The demand and collection of property tax over the last 6 years is as below :

Table 9-4: Property Tax � Demand Collection % (Rs. in lacs)

Property Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Demand

- Current 184.80 174.83 196.59 236.36 239.81 396.80

- Arrears 252.79 202.78 58.05 274.36 294.23 240.93


- 60 -


Property Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Total 437.39 377.61 254.64 510.61 534.04 637.73

Collection

- Current 90.87 157.34 186.76 144.39 141.53 297.60

- Arrears 107.98 162.22 46.44 102.13 85.32 144.56

Total 198.85 319.56 233.70 246.52 226.85 442.16

Collection %

- Current 49% 90% 95% 61% 59% 75%

- Arrears 43% 80% 80% 37% 29% 60%

Total 45% 85% 92% 48% 42% 69%

The current collection performance of property tax is poor at around 70% and the

arrears collection performance is around 50%.

9.3.2 Profession Tax

Profession Tax is another source of revenue to ULB. Profession tax is a tax deducted

from the salaries of the employees falling with in the Municipality and is collected

from all registered organizations, companies or firms, public or private, individuals

and State & Central Government Departments. Currently profession tax is deducted

on a slab basis.

The total number of profession tax assessments is 1081 Nos., out of which state /

central / quasi Govt. employees comprise 494 Nos., traders / self employed

professionals 333 Nos, private employers / companies 30 Nos. and private

employees 224 Nos. The last revision of profession tax was in 1.10.2003.

During the last 6 years, it has increased from Rs. 7 lacs to Rs. 13 lacs. It accounts for

around 2% of the total revenue. The profession tax for the last 6 years is as below:

Table 9-5: Profession Tax � Growth during last 6 years

Year Rs. in lacs % Growth

2001-02 14.06 -

2002-03 14.10 0.28%

2003-04 16.99 20.50%

2004-05 19.13 12.60%

2005-06 20.66 8.00%

2006-07 19.29 (6.63%)

The demand and collection of profession tax over the last 6 years is as below :

Table 9-6: Profession Tax � Demand Collection % (Rs. in lacs)

Profession Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Demand

- Current 14.06 14.10 13.56 19.13 20.66 25.00

- Arrears 25.82 25.82 25.82 11.02 13.24 4.83


- 61 -


Profession Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Total 39.88 39.92 39.38 30.15 33.90 29.83

Collection

- Current 14.06 14.10 13.56 16.92 18.79 18.75

- Arrears - - 17.03 - 0.75 2.90

Total 14.06 14.10 30.59 16.92 19.54 21.65

Collection %

- Current 100% 100% 100% 100% 91% 75%

- Arrears 0% 0% 66% 0% 6% 60%

Total 35% 35% 78% 56% 58% 73%

The Municipality has average current collection performance of 95% and the

arrears collection performance is very low at around 40%.

9.3.3 Assigned Revenues

This item head comprises of income from Government of Tamil Nadu (GoTN) / State

transfers of municipal income collected by the state line department. Transfers are

in the form of municipality�s share of taxes levied and collected by GoTN from

establishments / operations within municipal limits.

Surcharge on transfer of immovable properties and entertainment tax are the major

items on which these revenues are realized by municipality.

This income varies from year to year. The items under this category accounted for

nearly 35% of the total municipal revenue. The assigned revenue for the last 6 years

is as below:

Table 9-7: Assigned Revenue � Growth & % of Total Income (Rs. in lacs)

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Assigned Revenue

Duty on transfer of

property

191.43 98.66 318.09 331.21 205.89 334.65

Entertainment Tax - - - - - -

Total 191.43 98.66 318.09 331.21 205.89 334.65

% of Total Income 36.63% 18.98% 39.05% 39.72% 24.86% 34.73%

% Growth - (48.46%) 222.41% 4.12% (37.84%) 62.54%

It may be observed that Assigned Revenue has increased @ 30% p.a. over the

years, though it has fallen down in 2006-07. In case of entertainment tax, the

Commercial Department collects entertainment tax from cinema halls functioning

within municipal limit. The CT Department transfers 90% of total tax collection to

municipality and retains 10% towards management charges. But Madhavaram


- 62 -


Municipality does not have any theatres and there is no income from entertainment

tax.

9.3.4 Revenue Devolution Funds in aid of revenue expenditure

Grants in aid of revenue expenditure got boosted up following the 74th CAA and

the same is reflected in the Municipality Revenue. The item mainly comprises

revenue grants and compensations from State Government under various heads.

The regular grants include the SFC grants and others include aid grants, grants for

services like roads, buildings, maternity and child welfare, public health,

contributions for elementary and secondary schools and etc. Grants which are for

specific purposes are adhoc in nature.

This income varies from year to year. The items under this category accounted for

nearly 20% of the total municipal revenue. The assigned revenue for the last 6 years

is as below:

Table 9-8: Devolution Fund � Growth & % of Total Income (Rs. in lacs)

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Devolution Fund 70.96 138.84 181.06 140.82 208.08 197.26

Total 70.96 138.84 181.06 140.82 208.08 197.26

% of Total Income 13.58% 26.70% 22.23% 16.89% 25.12% 20.47%

% Growth - 95.66% 30.41% (22.22%) 47.76% (5.20%)

As per SFC recommendation, 12% of state revenue under Pool B is transferred to

each local body based on formula recommended by SFC. The fluctuation in SFC

grant is due to delay and deduction at source.

9.3.5 Water Charges

There is no protected water supply scheme in this Municipality. No there are no

house service connections and no water charges is being collected.

There are about 1020 public fountains. Besides the Municipality has 31 over head

tanks with capacity of 43000 Litres. The Municipality has 3 own and 4 hired vehicles

for supply of water with rated capacity of 58000 Litres.

The Municipality is in the process of implementation of water supply project at

Thanikachalam Nagar at a cost of Rs. 325 crores. Metro Water is the implementation

Agency.


- 63 -


9.3.6 Drainage Charges

The Municipality does not have protected under ground drainage scheme and no

sewerage charges is being collected from the residents.

The Municipality has privatized certain services like public health, street light etc. The

number of staff rendered surplus due to privatization is 53 Nos. The cost savings due

to privatization is as below :

Table 9-9: Salary of Employers

Particulars Salary

In staff salaries Rs. 286000/- per month

In pension / DCRG Commitment Rs. 73000/- per month

Operation & Maintenance Expenditure Rs. 586000/- per month.

9.3.7 Service Charges & Fees

The Municipality receives service charges and fees in the form of trade license fees,

building license fees, fees for bays in bus etc. The income in the form of service

charges and fees received during the last 6 years is as below:

Table 9-10: Service Charges & Fees � Growth & % of Total Income (Rs. in lacs)

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Service Charges &

Fees

12.74 21.34 24.24 22.87 37.18 56.85

Total 12.74 21.34 24.24 22.87 37.18 56.85

% of Total Income 2.44% 4.10% 2.98% 2.74% 4.49% 5.90%

% Growth - 67.50% 13.59% (5.65%) 62.57% 52.90%

It may be observed that service charges & fees accounts for around 4-5% of the

total income. There has been growth of around 40% over the last 6 years.

9.3.8 Income from Properties & Other Income

The Municipality receives income by way of market fees � daily market, lease of

land, rent on shopping complex & buildings, rent on bunk stalls, fees on pay & use

toilets etc.

Other income comprises interest from bank & investments, deposits lapsed, income

from cable TV operations, project overhead expenses and interest apportioned,

misc. recoveries and other income.

The income from properties and other income received during the last 6 years is as

below :


- 64 -


Table 9-11: Income from Properties & Other Income � Growth & % of Total Income (Rs. in lacs)

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Income from

Properties and

other income

54.96 70.00 72.86 96.93 127.23 79.89

Total 54.96 70.00 72.86 96.93 127.23 79.89

% of Total Income 10.52% 13.46% 8.95% 11.62% 15.36% 8.29%

% Growth - 27.37% 4.09% 33.04% 31.26% (37.21%)

It may be observed that income from properties and other income together

accounts for around 10% of total income and the same has shown growth rate of

10% over the last 6 years.

The demand collection balance statement of income from properties and other

income for the last 6 years is as below :

Table 9-12: Non Tax Income � Demand Collection % (Rs. in lacs)

Other Income 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Demand

- Current 327.50 411.21 424.37 468.90 503.41 610.00

- Arrears 131.38 - - 0.51 0.51 -

Total 458.88 411.21 424.37 469.41 503.92 610.00

Collection

- Current 125.58 411.21 424.37 468.90 503.36 610.00

- Arrears 72.60 - - - - -

Total 198.18 411.21 424.37 468.90 503.36 610.00

Collection %

- Current 38% 100% 100% 100% 100% 100%

- Arrears 58% - - 0% 0% -

Total 43% 100% 100% 100% 100% 100%

On the average, the total current collection performance of other income is very

good @ 100% and the arrears collection amount is very negligible. The arrears

collection performance needs to be improved.

9.4 EXPENDITURE

The revenue expenses mainly comprises of establishment charges, power charges

for street lighting, water supply, repairs & maintenance and other revenue expenses

on account of maintenance of roads, public health etc.

9.4.1 Establishment Expenses

The major revenue expenditure incurred by the Municipality is establishment

expenses comprising personnel cost and terminal benefits. The details of

establishment expenses for the last 6 years is as below :


- 65 -


Table 9-13: Establishment Expenses � Growth & % of Total Expenditure (Rs. in lacs)

Estb Expenses 2001-

02 2002-03 2003-04 2004-05 2005-06 2006-07

Personnel � Salaries 126.51 124.61 135.71 143.19 137.98 170.67

Terminal &

Retirement Benefits

11.15 21.90 16.91 17.67 1.67 13.81

Total 137.66 146.51 152.62 160.86 139.65 184.48

% of Total Expt 33.79% 28.01% 28.98% 29.14% 16.57% 22.44%

% Growth - 6.43% 4.17% 5.40% (13.19%) 32.10%

The establishment expenses constitute around Rs. 160 lacs per annum and accounts

for around 28% of the total expenditure.

9.4.2 O&M Expenses � Water Supply

The next major share of expenditure goes for water supply and drainage works. The

same accounts for around 8% of the total expenditure.

O&M expenses on account of water supply comprises power charges of head

works, pumping stations and booster stations, maintenance expenses for water

supply works, vehicle maintenance etc. The O&M expenses on account of water

supply for the last 6 years is as below :

Table 9-14: O&M Expenses (Water Supply) � Growth & % of Total Expenditure (Rs. in lacs)

O&M - Water

Supply 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Hire Charges 19.30 29.00 35.03 - 47.73 40.26

Maintenance Exps 11.03 11.07 12.94 - 18.55 15.02

Vehicle Maint. 2.28 2.57 - - - -

Others - 1.89 0.03 - - 1.30

Total 32.61 44.53 48.00 - 66.28 56.58

% of Total Expt 8.01% 8.51% 9.12% 0% 7.87% 6.88%

% Growth 36.55% 7.79% (100%) 100% (14.63%)

The O&M Expenses � water supply constitutes around Rs. 50-60 lacs per annum and

the main component of the same is hire charges. The O&M water supply has grown

on an average by 12%, though it has marginally reduced in 2006-07.

9.4.3 O&M Expenses � Street Lights & Others

The O&M expenses on account of street lights and others comprises power &

maintenance charges on street lights & buildings, sanitary & conservancy expenses,

vehicle maintenance, repairs & maintenance � buildings, roads and others. The

expenses on account of street lights & others for the last 6 years is as below:


- 66 -


Table 9-15: O&M Expenses (Street Lights & Others) � Growth & % of Total Expt (Rs. in lacs)

O&M � Street Lights

& Others 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Operative

Expenses

27.70 46.45 88.66 66.75 120.49 146.52

Repairs &

Maintenance

22.36 19.15 16.71 18.49 25.15 25.65

Total 50.06 65.60 105.37 85.24 145.64 172.17

% of Total Expt 12.29% 12.54% 20.01% 15.44% 17.29% 20.94%

% Growth - 31.04% 60.63% (19.10%) 70.86% 18.22%

The O&M expenses � street lights and others constitute around Rs. 150 lacs per

annum and accounts for 18% of total expenditure. The same has been growing @

45% p.a.

9.4.4 Administration & Other Expenses

Besides establishment and O&M expenses, administration expenses form the major

part of revenue expenditure. The summary of administration expenditure over the

last 6 years is given below :

Table 9-16: Administration Expenses � Growth & % of Total Expenditure (Rs. in lacs)

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Administration

Expenses

9.80 9.87 11.82 18.70 16.36 20.16

Total 9.80 9.87 11.82 18.70 16.36 20.16

% of Total Expt 2.41% 1.89% 2.24% 3.39% 1.94% 2.45%

% Growth - 0.71% 19.76% 58.21% (12.51%) 23.23%

The administration expenses comprise around 3% of the total expenditure and on

an average constitute Rs. 18-20 lacs per annum.

9.5 SUMMARY OF FINANCES

We summarise below the finances of Madhavaram Municipality for the last 6 years:

Table 9-17: Summary of Finances for last 6 years (Rs. in lacs)

Audited Unaudited

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Income 522.60 519.93 814.51 833.88 828.20 963.49

Expenditure 235.76 268.49 319.47 266.82 368.39 437.40

Surplus before Int &

Depreciation 286.84 251.44 495.04 567.06 459.81 526.09

Finance Charges 39.31 106.42 66.38 38.06 39.26 59.33

Surplus / (Deficit) 247.53 145.02 428.66 529.00 420.55 466.76


- 67 -


Audited Unaudited

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

before

Depreciation

Depreciation 132.27 148.23 140.72 247.11 434.89 325.42

Net Surplus /

(Deficit) 115.26 (3.21) 287.94 281.89 (14.34) 141.34

Note:

The real autonomy of any organisation depends on its financial autonomy. Weak

tax base, inadequate tariff level and poor collection performance have continued

to be the salient features of local bodies in India.

In the case of Madhavaram Municipality, it is observed that the Municipality

has shown deficit in only 2 out of the last 6 years. Prior to depreciation, the

Municipality has shown surplus in all the years.

Thus the deficit incurred by the Municipality is mainly on account of

depreciation, which has increased almost 3 times from Rs. 132 lacs to Rs. 325

lacs over the last 5 years. With the existing finances, the Municipality should

be in a position to take up new projects. Besides, the Municipality needs to

undertake lot of fiscal reforms and full leverage of its assets over the next few

years to improve its financial strength.

The summary of finances of the Municipality under the broad heads of

income and expenditure for the last 6 years is as below :

Table 9-18: Head-wise Income & Expenditure for last 6 years (Rs. in lacs)

Audited Unaudited

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Income

Property Tax 171.99 175.73 200.83 222.20 222.20 268.30

Profession Tax 14.06 14.10 16.99 19.13 20.66 19.29

Water & Drainage - - - - - -

Assigned Revenue 191.43 98.66 318.09 331.21 208.59 334.65

Devolution Fund 70.96 138.84 181.06 140.82 208.08 197.26

Serv. Chgs & Fees 16.69 21.59 24.29 22.87 40.63 62.08

Grants & Cont. 2.51 1.01 0.39 0.72 0.81 2.02

Sale & Hire Chgs 0.00 0.00 0.00 0.00 0.00 0.00

Other Income 54.96 70.00 72.86 96.93 127.23 79.89

Total Income 522.60 519.93 814.51 833.88 828.20 963.49

Expenditure

Personnel Cost 126.51 124.61 135.71 143.19 137.98 170.67

Terminal Benefits 11.15 21.90 16.91 17.67 1.67 13.81

O&M�Street Lights 27.70 46.45 88.66 66.75 120.49 146.52


- 68 -


Audited Unaudited

Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

O&M � Water 19.30 29.00 35.03 - 47.73 40.26

Repairs & Maint. 35.68 34.68 29.68 18.49 43.70 41.97

Programme Exps 5.62 1.98 1.66 2.02 0.46 4.01

Administrative Exp 9.80 9.87 11.82 18.70 16.36 20.16

Finance Expenses 39.31 106.42 66.38 38.06 39.26 59.33

Depreciation 132.27 148.23 140.72 247.11 434.89 325.42

Total Expenditure 407.34 523.14 526.57 551.99 842.54 822.15

Surplus / (Deficit) 115.26 (3.21) 287.94 281.89 (14.34) 141.34

It may be observed that the deficit incurred by the Municipality in 2 years is

mainly on account of depreciation, which has been increasing over the years.

The own Income of the Municipality comprising property tax, profession tax,

water charges, service charges and non tax income have increased over the

years. But the growth in Grants Income from Government comprising Assigned

Revenue, Devolution Funds and Grants is much higher than the growth in Own

Income.

The assigned revenue of the municipality has increased by around 30% p.a.

over the last 6 years and comprises 35% of total income. Devolution Fund, which

accounts for 20% of the total revenue has increased by around 25% over the

last 6 years.

The municipality�s own revenue comprises property tax, profession tax, water

charges and income from properties have all shown growth of around 10-15%

over the last 6 years. The growth significant considering the fact that there is

there is no change in the rates for the last 5 years.

The total accumulated surplus of the Municipality as on 31st March 2007 stands

at Rs. 3789 lacs. As against the same, the total fixed assets comprising land,

buildings, plant & machinery, vehicles etc. stands at Rs. 1451 lacs. Out of the

total fixed assets, the value of land is only Rs. 144 lacs.

The total loans of the Municipality as on 31st March 2007 stands as below :

Table 9-19: Borrowings of the Municipality (Rs. in lacs)

Loan from Purpose Rate of Interest O/s as on 31.3.07

TUFIDCO Loan Water Supply & Others 13.50% 257.13

TNUDF Loan Water Supply & Others 13.50% 352.24

Total 609.37

As against the same, the contribution by Municipality, contribution by

Government and Grants from Government as on 31st March 2007 stands as

below :


- 69 -


Table 9-20: Status of Contributions & Grants

Particulars Rs. in lacs

Contribution by Municipality 380.37

Grants from Government 227.77

Total 608.14

It is observed from the above that around 50% of the fixed assets excluding

Land have been funded by means of Contribution and Grants from

Government over the years and the balance 50% from Loans.

The average current collection efficiency of the municipality is low in case of

property tax with 70% and is very high in case of profession tax and non tax

income @ 95% and 100% respectively.

Though the Municipality falls next to Chennai Corporation it is surprising to note

that the Municipality does not have protected water supply scheme and under

ground drainage scheme. This points out to the lack of municipal infrastructure

and services provided.

The broad financial analysis of the Madhavaram Municipality finances reveal

that the Municipality has scope for further increasing its own sources of income

and collection efficiency for servicing the additional borrowings in the future.

To summaries, the overall income pattern of the Madhavaram Municipality

indicates more positive features than negative features. The positive trends are

on the income side, where the Municipality has higher growth rate.

The operating ratio of the Municipality is low at 52%, which shows the ability the

capability of the Municipality to service additional borrowings.

The income from Assigned Revenue is high and accounts for around 35% - 40%

of total income. Thus the municipality receives high income from Government

from stamp duty income.

The collection performance of the Municipality is good with 70% in case of

property tax, 95% for profession tax and 100% for non tax income.

But the municipality also has very high borrowings at Rs. 609 lacs. But the same is

manageable as the operative margins are very good. The municipality can

resort to further borrowings for new project, which can be serviced from existing

revenues and additional income to be generated.


- 70 -


On the negative side, the non tax income is also low compared to other heads

of income and the Municipality should look in to ways and means for increasing

non tax income. Therefore the municipality has to look at various mechanisms to

improve its scope of own income to service the additional borrowings in the

coming years.

With more effective management of resources, there is scope for further

enhancing credit worthiness and revenues of the Municipality.

No major variations in income and expenditure during the past few years is

observed except for the following :

Income

There has been an increase in revenue from Assigned Revenue by Rs. 100 �150 lacs

from 2003-04 onwards. The same is due to increase in surcharge on stamp duty on

account of the fact that the land value has increased by several times during the

last few years.

9.6 KEY FINANCIAL INDICATORS

A set of key financial indicators has been derived using the financial data procured

from the Municipality for the assessment period. These indicators are used to assess

the municipal performance with regards to resource mobilization, fund utilization,

financial performance and collection efficiencies.

a) Resource Mobilisation Indicators

These indicators summaries the performance of the Municipality with regards

sources of funds. Madhavaram Municipality derives about 45 percent of its revenue

income from own sources, while grants account for just about 55 percent of the

revenue income.

Table 9-21: Resource Mobilisation Indicators

Indicators Value

Per Capital Income Rs. 1109/- p.a.

Share of Own Sources in Total Revenue Income 44.58%

Share of Property Tax in Total Revenue Income 27.85%

Share of Revenue Grants & Subsidies in Total Revenue Income 55.41%

Growth in Revenue Income 16.87% p.a.

Growth of Own Sources of Revenue Income 13.34% p.a.

Per Capital Own Income Rs. 494/- p.a.

b) Fund Application Indicators

These indicators are a measure to ascertain the utilization from the municipal fund.

Around 24% of the revenue expenditure is spent on establishment heads, around

28% for municipal assets and services, leaving around 48% for debt servicing and


- 71 -


administration expenses. Establishment expenditure accounts for about 20% of the

total revenue generated by the municipality.

Table 9-22: Fund Application Indicators

Indicators Value

Per Capita Expenditure Rs. 946/- p.a.

Share of Establishment Expenses in Total Revenue Expenditure 22.44%

Share of O&M Expenditure in Total Revenue Expenditure 27.82%

Share of Establishment Expenditure to Total Revenue Income 19.14%

Growth in Establishment Expenditure 6.80% p.a.

Growth in O&M Expenditure 35.33% p.a.

Growth in Total Revenue Expenditure 20.37% p.a.

c) Liability Management Indicators

These indicators are a measure to ascertain the utilization from the municipal fund

regarding debt servicing. The ratio of debt servicing to revenue income is at 18.31%

during the assessment period. The per capita average debt outstanding is very high

at Rs. 701/- and the per capita outstanding debt to property tax demand is around

227% of the property tax demand for the current year.

Table 9-23: Liability Management Indicators

Indicators Value

Per Capita Liability

- Outstanding Debt per Capita Rs. 701/-

- Outstanding Non Debt Liability per Capita -

- Total Outstanding Liability per Capita Rs. 701/-

As a proportion of Property Tax Current Demand

- Outstanding Debt as % of Property Tax Demand 227%

- Outstanding Non Debt Liability as % of Property Tax Demand -

- Total Outstanding Liability as % of Property Tax Demand 227%

As a proportion of Property Tax Own Revenue Income

- Outstanding Debt as % of Own Revenue Sources 163%

- Outstanding Non Debt Liability as % of Own Revenue Sources -

- Total Outstanding Liability as % of Own Revenue Sources 163%

Non Debt Liability as % of Total Liability -

Debt Servicing Ratio 18.31%

d) Overall Financial Performance Indicators

These indicators are a measure to assess the overall financial performance of the

Municipality with regards operational performance and effective growth in revenue

income and expenditure.

The average operating ratio during the assessment period is at 52%. The indicators

of growth in per capita income and expenditure item heads indicate the effective

growth, giving a performance measure relative to the growing population.

Madhavaram Municipality has demonstrated 12.59% annual growth in per capita

revenue income during the assessment period, while the per capita revenue


- 72 -


expenditure has grown at a negative CAGR of 15.68% during the corresponding

period, which indicates that the growth in expenditure is higher than income.

Table 9-24: Financial Performance Indicators

Indicators Value

Operating Ratio 51.56%

Growth in Per Capita Own Revenue 9.47% p.a.

Growth in Per Capita Grant 15.63% p.a.

Growth in Per Capita Total Revenue Income 12.59% p.a.

Growth in Per Capital Establishment Expenditure 3.69% p.a.

Growth in Per Capita O&M Expenditure 28.91% p.a.

Growth in Per Capita Revenue Expenditure 15.68% p.a.

e) Efficiency Indicators

These indicators are essentially a measure to assess municipal efficiency with

regards revenue base coverage and utilization. Madhavaram Municipality has low

collection performance both with regards property tax (70%). It is extremely good

with respect to Profession Tax and Non Tax Income (95% and 100% respectively). The

average population per residential assessment at 7.11 persons indicates that the

property tax base has a low coverage.

Table 9-25: Efficiency Indicators

Indicators Value

Tax Collection Performance (Current)

- Property Tax 70%

- Profession Tax 95%

- Water Charges -

- Non Tax Income 100%

No. of Property Tax Assessments per Tax Collection Staff 2555 Nos.

Property Tax Demand per Assessment Rs. 1347/- p.a.

No. of Municipal Staff per 1000 Population 3.00 Nos.

Annual Revenue (Own Source) per Municipal Staff Rs. 1.12 Lakh p.a.

Population per Residential Property Tax Assessment 7.11 persons

Note:

The detailed financials of Madhavaram Municipality comprising Income &

Expenditure Statement, Balance Sheet, Demand Collection Balance Statement,

Growth in Income and Key Indicators for the last 6 years are given as Annexure.

9.7 MEASURES TO BE TAKEN FOR IMPROVING COLLECTION EFFICIENCY

The average collection efficiencies under the various heads of revenue work out as

below:


- 73 -


Particulars Current Arrears

Property Tax 71.55% 54.82%

Profession Tax 92.40% 21.94%

Water Charges - -

Other Fees 89.72% 9.21%

The Municipality has good collection efficiency with respect to Profession Tax and

Other Income and average collection efficiency with respect to property tax. The

Municipality does not have protected water supply scheme and hence no water

charges is collected.

Implement door-to-door collection mechanism, whereby property tax and

water charges are collected from every household by the municipality staff. A

separate collection team to be formed for this purpose, which will visit all the

households and collect tax. A mobile collection van has been provided for this

purpose in the FOP, which will help the staff in collection mechanism.

Launch a focused drive on existing arrears.

Conduct one time settlement scheme for old arrears and incentivise payments

through marginal rebates for arrears > 5 years.

Implement payment due date along with a 90 day grace period during which

payments would involve a nominal interest payment.

Payments beyond the grace period should include a steep penal charge to

encourage payments on time.

Work with GoTN to moot creation of a special tribunal for speedy disposal of

properties under litigation.

In case of disputed property tax, the assessor should first pay the tax under

protest as in the case of excise or customs and then take necessary legal

course. The Act should be modified in such a way that no legal recourse should

be available to the assessor without paying the tax under protest.

The billing mechanism, accounts and DCB Register should be fully

computerized. This will help the Municipality in providing ready information on

defaults and help in speedy recovery process.

With regard to improvement in collection efficiency of water charges, the

Municipality should first improve the service levels. The Municipality should


- 74 -


conduct a survey on the present service levels and identify places where

service levels are good. The Municipality should then do a focused drive on

these blocks with good service levels and implement various collection

measures given above.

The Municipality may also consider implementation of late payment fines and in

case of extreme overdue situations, disconnecting supply.

As regards blocks with low service levels, the Municipality should improve the

service levels and effect various measures to improve the service levels. Only

with improvement in service levels, the collection efficiencies can be improved.

As regards Other Fees, which basically comprises rent / lease from various assets

of the Municipality, the Municipality should send eviction notices to the

defaulters. Unlike property tax and water charges, the Municipality can enforce

eviction of defaulters.

Chapter � 10 Final Report: Madhavaram Municipality

- 75 -


111000 CCCAAAPPPIIITTTAAALLL IIINNNVVVEEESSSTTTMMMEEENNNTTT NNNEEEEEEDDDSSS FFFOOORRR IIIDDDEEENNNTTTIIIFFFIIIEEEDDD PPPRRROOOJJJEEECCCTTTSSS

All the projects relating to urban infrastructure, urban growth and development

have been identified through a conscious participatory process. The projects are in

the form of improvements and, extension of the existing services and facilities such

that the present inadequacies as per the norms and standards are made up and, in

addition meet the requirements of the projected population of the town during the

perspective period of plan.

Each project component, as identified has been verified in the field of their suitability

and feasibility in terms of location, coverage and adequacy and finalized with

intensive consultation with the office of the municipality and as suggested and

recommended in the review meetings of the previous stage of this exercise in the

office of TNUIFSL. The projects thus finalized and firmed up are detailed out in their

present status, gaps, projected requirements, cost estimates, capital needs, funding

pattern etc in the following section. These projects have been prioritized as

warranted in their importance over the implementation time frame.

The Sector wise projects and breakup of the investment are as follows

10.1 PHYSICAL INFRASTRUCTURE - IMPROVEMENT NEEDS

In chapter - 8 we had discussed about the existing situation and issues in the physical

Infrastructure sector. The improvement needs and the proposals identified for the

improvement of physical and social infrastructure are given in the chapter below.

10.1.1 Water Supply:

The DPR for water supply is under preparation by CMWSSB, and the proposals

identified will meet the intermediate and ultimate water supply demand. The project

components covered under the DPR proposals are

Source Augmentation

Laying of distribution lines and pumping mains

Pumping machineries and equipments

Rehabilitation of existing distribution network

Construction of 7 OHTs at various locations

Construction of treatment plant of 11.25 mld capacity

In addition to these, it is proposed to conduct energy audit studies and fixing of bulk

water meters at pumping mains, service reservoirs and water intensive assessments.

The capital cost of the water supply improvement projects identified by the CMWSSB

is estimated as Rs.6000.00 lakhs (including the cost escalation during tender

process).


- 76 -


10.1.2 Sewerage System

The implementation of UGSS for Madhavaram municipality is divided into 2 phases.

The salient features of the UGSS proposal are:

Total number of sewerage zones - 8 nos

Total length of sewer main proposed - 127.17 km

Number of pumping stations proposed - 15 nos

The sewage collected from the town will be pumped to Kodungaiyur Sewage

Treatment Plant maintained by CMWSSB. The recommended graded tariff structure

for the proposed UGSS is as follows:

Table 10-1: Graded tariff structure - UGSS

Domestic

Area in Sq. ft. Tariff in Rs. Deposit in Rs.

<500 70.00 5000.00

501-1200 90.00 7000.00

1201-2400 100.00 9000.00

>2400 120.00 9000.00

Weighted Average 73.00 5300.00

Commercial

Area in Sq. ft. Tariff in Rs. Deposit in Rs.

<500 150.00 15000.00

501-1200 150.00 15000.00

1201-2400 150.00 15000.00

>2400 150.00 15000.00

Weighted Average 150.00 15000.00

Source: Municipal Administration & Water Supply [MA3 (2)] Department, G.O. (3D) No.20, Dated: 4.9.2006

The total estimated cost of the UGSS for phase I was Rs.3600.00 lakhs. It is proposed to

take up the uncovered areas (9 wards) as phase II. The total capital cost required for

the implementation of UGSS including phase II will be Rs.5920.00 lakhs.

10.1.3 Storm Water Drainage

The existing drainage network of Madhavaram consists of tanks and manmade

drainage system (Storm water drains). The current coverage of drains to the road

length is 20% against the normative standard of 130%. Hence the proposals aim to

increase the service levels in terms of coverage to achieve 130% of total road

length.

Proposals

Thus the identified project components under storm water drains are preparation of

comprehensive drainage master plan, upgradation and maintenance of existing


- 77 -


drains, construction of new pucca closed drains. The details of the proposals are

given in the table below:

Table 10-2: Capital Investment Needs for the Storm Water Drains

S. N Project Description Cost - Rs. In Lacs

Drainage Construction and Improvement

1 Preparation of comprehensive drainage master plan 3.00

2 Construction of new pucca closed drains including trunk drains

(141 km) 3525.00

3 Upgradation and maintenance of Existing drains 150.00

Total 3678.00

Annual operation and maintenance cost 105.75

Therefore, the total capital cost towards Storm Water Drains is Rs.3678.00 lakhs.

10.1.4 Solid Waste Management

Since the population density has been increasing in the municipality, the waste

generation at the 20th year is estimated at 130 MT.

Objective:

The objective of solid waste management is to reduce the quantity of solid waste

disposed into land by recovery of materials and energy form the waste. This in turn

results in lesser requirement of raw material and energy as inputs for technological

processes.

1. The municipality must focus on revenue enhancement by privatizing of waste

management of the following components:

a) Primary collection

b) Transfer to collection points

c) Transfer to compost yard

d) Segregation of waste and option of

i. Selling scraps/recyclable waste.

ii. Treatment of biodegradable waste

iii. Transfer to identified regional land fill sites

e) Compost yard management and sale of manure.

2. The management of biodegradable waste as a revenue generating activity

may involve, production of manure from composting. Windrows composting is

an established technology for dealing with bio degradable waste, which is

the suggested option for this Municipality. The necessary infrastructure is given

in the proposals.

3. Conducting IEC campaigns to facilitate effective waste segregation at

source and proper disposal.


- 78 -


4. Implementing collection of conservancy fee for primary collection of waste

and levy on commercial and industrial establishments.

5. Involvement of voluntary agencies, SHGs in the various components of solid

waste management on BOT, BOOT basis.

6. Need to organize the rag pickers into waste-management

associations/groups under the supervision of the urban local body and the

relevant residents� associations or market associations.

Integrated Solid waste management Plan

An Integrated Solid waste management Plan need to be evolved which outlines the

vision, goals and strategies environmentally friendly and sustainable waste

management system with complete safe disposal facilities by putting in place waste

reduction and recovery mechanisms.

Proposals

The area requirement for land fill site and compost yard is calculated based on the

generation trends and sustainable waste management practices. Site for Compost

yard is identified at Thiruvottiyur (72 acres), which is planned to be a common

compost yard for Kathivakkam, Thiruvottiyur, Manali and Madhavaram

municipalities. The regional sanitary landfill have been identified near Manali,

Sadaiyarkuppam village, and the estimated cost for the development of sanitary

landfill is presented in table the below:

Table 10-3: Capital Investment Needs for the Solid Waste Management

Sl.No Project Description Cost in lakhs

1 Preparation of Integrated solid Waste Management 7.00

2

Small vehicles with containers for door to door collection @ 240 litres

capacity (144 nos) 22.00

3 Community bins @ 1100 litres capacity (45 nos) 8.00

4 Tipper Lorries (2nos) 20.00

5 Auto tippers for narrow lanes (10 nos) 20.00

6 Purchase of compactor bins (51 nos) 26.00

7 Purchase of compactor lorry (1 no) 38.00

8 Closed dumper placer container for 2.5 cu.m capacity (4 nos) 2.00

9 purchase of Dumper placer vehicles ( 3 nos) 50.00

10 Land cost for the new compost yard at Thiruvottiyur - 20 acres (long term) 1655.00

11

Proportionate cost for provision of infrastructure facilities and

development of new compost yard 1050.00

12 Land Cost for Regional landfill site - 7 acres ( long term) 1200.00

11 Proportionate cost for development of regional land fill site (7 acres) 700.00

12 IEC activities 25.00

Total 4823.00

Annual Operation and Maintenance Cost 98.05


- 79 -


*-No rational decisions on municipal solid wastes system are possible until data of

composition and quantity of solid waste are available. The method and capacity of

storage, the correct type of collection vehicle, the optimum size of crew and the

frequency of collection depend mainly on volume and density of wastes. Climate

also has some influence.

Therefore, the total investment required for improvement in Solid Waste

Management is Rs.4823.00 lakhs.

10.1.5 Street Light

The average distance between the street lights in Madhavaram municipality is

about 29m against the normative standard of 30m. For better illumination, lights

without poles need to be provided with poles with required height. The strategic

intervention in this sector is optimizing the number of lamp posts, optimizing the

average space between lamp posts and minimizing the power consumption

charges.

Further to improve the operation and maintenance of street lighting, it is

recommended to take innovative ideas in cost reduction and energy saving

measures. To reduce the high energy consumption, new technology lights and

mechanisms such as T5, T8, solar lights and timer switches to be introduced.

Proposals

The components identified for improvement of street lighting are

Retrofitting of Tube lights into T5 and T8 lamps.

Installation of automatic timer switches

The proposals for the street light improvement is given in the table below

Table 10-4: Capital Investment Needs for the Street Light

S.No Description Amount

Rs in Lacs

1 Provision of Mini High Mast Lights

Junction of MRH Road and Thattankulam Road 6.00

Junction of GNT Road and MRH Road at Moolakkadai 6.00

Bus Stand 6.00

2 Installation of automatic Timer Switches (60 nos) 2.00

3 Retrofitting of existing tube lights with T5 lights in phases (3942 nos) 48.00

4 Retrofitting of SVL lamps to T8 as per requirement including light fittings

(200 nos) 6.00

5 Electricals Fittings and lamp posts 20.00

6 Installation of solar lights (trial basis � 20 nos) 6.00

Total 100.00



- 80 -


Therefore, the total investment required for the improvement of street lighting in

Madhavaram municipality is Rs.100.00 lakhs.

10.1.6 Roads and transportation

The town has 17% of unsurfaced roads, which need to be surfaced. The new roads in

the newly developing areas need to be surfaced and should be provided with good

connectivity. In addition to this, all the existing BT roads need to be periodically

resurfaced. To regulate the illegal parking, specific parking areas need to be

provided with traffic markings to show parking areas and no parking areas.

In the light of new sewerage scheme, the construction of new roads, upgrading of

existing roads, resurfacing of roads etc., will be delayed by a few years for the area

covered under the sewerage scheme and water supply scheme.

Proposals

The proposals identified for road improvement is given in the table below

Table 10-5: Capital Investment Needs for the Road and Transportation

S. No Description Amount in

Rs lacs

1 Road Widening

Widening of internal circulation roads(Nachariamman street, New

Aliyar street II nd, Hasan street, Lane ) and road dividents 95.00

2 Road upgradation

W.B.M. Roads to BT (10 km) 200.00

W.B.M. Roads to BT (6.79 km) 170.00

Earthen Roads To CC (4 km) 100.00

3 Road Improvement

Relaying of B T road after UGD (101.08 km) 1516.00

Relaying CC road after UGD (5.31 km) 133.00

4 Road Junction improvement

Public Road, Near municipality office, at state highway junction. 50.00

5 Road Geometry Improvement � Pedestrian pathways, medians,

signages 125.00

6 New roads

Formation of new BT roads (6 km) 138.00

Formation of new CC roads (10 km) 250.00

Total 2777.00

Annual Operation and Maintenance cost 19.40

Therefore, the total capital investment required - for the improvement of roads in



- 81 -


10.1.7 Educational Institutions

It is proposed for the improvement of exiting old buildings, water facilities, toilet

facilities, computers for elementary schools. The details of the proposals are given

below

Table 10-6: Capital Investment Needs for the Educational Institutions

S. No. Description Amount in Rs Lacs

1 Elementary Schools

Construction of new buildings at the 6 schools 252.00

Improvement of basic facilities at the 6 schools 30.00

Total 282.00

Therefore, the total capital investment required for the improvement of schools in


10.1.8 Health Facilities

Though the coverage of health services in urban areas is much better than the rural,

inadequate service delivery of drinking water and sanitation and the high

population density in the slums leads to rapid spread of infections. Thus, even though

there is a concentration of health care facilities in urban areas, the urban poor lack

access to such facilities.

Government of India has launched National Urban Health Mission (NUHM) which

aims to meet the needs of the urban poor, particularly the slum dwellers. This will be

done by investing in high-caliber health professionals, appropriate technology

through PPP, and health insurance for urban poor.

NUHM would ensure the following

Resources for addressing the health problems in urban areas, especially

among urban poor.

Need based city specific urban health care system to meet the diverse health

needs of the urban poor and other vulnerable sections.

Partnership with community for a more proactive involvement in planning,

implementation, and monitoring of health activities.

Institutional mechanism and management systems to meet the health-related

challenges of a rapidly growing urban population.

Framework for partnerships with NGOs, charitable hospitals, and other

stakeholders.

Two-tier system of risk pooling: (i) women�s Mahila Arogya Samiti to fulfil urgent

hard-cash needs for treatments; (ii) a Health Insurance Scheme for enabling

urban poor to meet medical treatment needs.


- 82 -


The strategies identified for the improvement of the municipal health facilities are

Improvement of the existing health care system

Provision of a Primary Urban Health centers (PUHC) of 25 bedded capacity

with necessary infrastructure facilities.

Community participation in planning, implementation and monitoring health

activities

Channelizing involvement of Public & private sector in municipal health care

systems

Appointment of adequate human resources for addressing the health

problems in urban areas

Encourage community risk pooling - Providing financial protection to the poor

during hospitalization through revolving funds managed by SHGs.

Capacity building and Awareness programmes

Proposals

Therefore the proposals identified for the improvement of health facilities in

Madhavaram municipality is

Improvement to existing maternity center with necessary infrastructure

facilities

Provision of Primary Urban Health center (PUHC) with necessary infrastructure

facilities - Short term

Provision of Primary Urban Health center (PUHC) with 25 beds at CMDA site

with necessary infrastructure facilities - Medium term

IEC activities

The capital investment required for the identified projects is given in the table below

Table 10-7: Capital Investment Needs for the Maternity center

S.

No. Description

Amount in Rs

Lacs

1 Upgradation of facilities and additional building to existing

Maternity centre 25.00

2 Construction of Primary urban Health center (PUHC) with 25

beds at Lakshmipuram with necessary infrastructure facilities 150.00

3 IEC activities 25.00

Total 200.00

Annual Operation and Maintenance 5.40

Therefore, the total capital investment required for the improvement of health

facilities in Madhavaram municipality is Rs.200.00 lakhs.


- 83 -


10.1.9 Public convenience

The municipality maintains 19 public toilets in the town, with 124 seats. The existing

toilet seats available are about 1 per 128 persons against the normative standard of

1seat per 50 persons. Considering that under BSUP individual arrangements would be

provided, public toilets are necessary at public areas like bus stands and markets

only.

The existing public facilities are in need of repair works. The details are as given

below:

Table 10-8: Capital Investment Needs for Public Conveniences

S. No. Description Amount in Rs Lacs

1 Repair and Maintenence of exisiting toilets (19 nos) 60.00

Total 60.00


The capital cost required for the maintenance of existing toilets and construction of

new toilets is Rs.60.00 lakhs.

10.1.10 Parks and Play Ground

Open spaces in the town are the lung spaces for that town. Maintenance of

greeneries and provision of basic facilities will greatly improve the quality and usage

of areas delineated under parks and open spaces. The maintenance of the parks

and roadside gardens may be entrusted to interested voluntary agencies, resident

associations on private participation/donation.

According to UDPFI guidelines, the minimum space requirement for providing parks

and recreational spaces is 1 to 1.2 hectares per 1000 population. The total municipal

open spaces in the town accounts to 3.23 ha. which works out to 1 ha per 25000

population, which is grossly inadequate.

Proposals

The proposals identified for the open spaces and parks in the town is given in the

table below

Table 10-9: Capital Investment Needs for the Parks and Play Grounds

S. No. Description Amount in Rs

1

Provision of basic facilities like compound wall,

pathways, hard and soft landscaping,

recreational facilities and basic amenities

KKR Nagar 12.00

Secretariat colony 10.00

Secretariat colony 15.00


- 84 -


S. No. Description Amount in Rs

Roja nagar 13.00

MBTT complex 9.00

Thanikachalam nagar (S.No 1220) 15.00

Thanikachalam nagar (S.No 1184/1&2,

1229/1,2a,2b,2c)) 15.00

Moolachatram, Madhavaram , PPD/LO 11.00

Majestic colony PPD/LONo 17/89 11.00

Pukraj Nagar, LPDM/DDTP No 57/69 14.00

Periya Sekkadu, Madhavaram, PPD/LO No 12/9 14.00

Jayalakshmi Garden, LPDM/DDTP 13.00

K.K.R.Garden, PPD/LO 10.00

Metha Nagar, LPDM/DDTP 127/71 14.00

Bharathi St. LPDM/DDTP 7.00

Vivekananda Govt. Servants Co- op society

PPD/LO 12.00

Kumaran St. Periya sekkadu CMDA PPD/Lo 5.00

Madhavaram, Perambur Co-Op Society Layout 7.00

Madhavaram, Perambur Co-Op Society Layout 9.00

Thanikachalam Nagar 14.00

Thanikachalam Nagar 18.00

2 Provision of landscaping, play materials and basic

amenities

Teachers colony 10.00

Deenadayalu nagar 11.00

Thanikachalam nagar (S.No 1186) 10.00

Thanikachalam Nagar LPDM/DDTP 248/72 10.00

M.G.R Nagar 10.00

Total 299.00

Annual Operation and maintenance 5.98

Therefore, the total capital investment required for the improvement of parks and

play grounds in Madhavaram municipality is Rs.299.00 lakhs.

10.1.11 Market

Construction of modern market complex with parking facilities is proposed in the

land to be purchased from the Tamil Nadu State Palmgur & Fibre Marketing Co-

operative federation Ltd. The details of the proposals are given in the table below:

Table 10-10: Capital Investment Needs for Market

S.No Description Rs. in lakhs

1 Construction of stalls (125 nos ) and shops (75 nos) 175.00

2 Provision of drains, water supply arrangements, lighting 25.00


- 85 -


facilities, public conveniences

3 Contingencies and other unforeseen charges 5.00

4 Development of Parking space (1 acre) 25.00

Total Rs.230.00 lakhs


Therefore, the total capital investment required for the market complex in


10.1.12 Burial Ground Development

The existing burial grounds need the compound wall, prayer hall, security room,

water supply and adequate lighting facility. One Burial ground at Lakshmipuram only

need gasifier crematorium.

Table 10-11: Capital Investment Needs for Burial Ground Development

S.No Description Amount in Rs Lacs

1 Maintenance of Existing Burial Grounds (8 nos) 24.00

Total 24.00


10.1.13 Slum Improvement

Access of slum population to basic services is a key indicator of the quality of life in

slums in particular and the city in general. The slums population does not have

individual service connections and depend upon public taps. Basic infrastructure

facilities in the slum are inadequate and need to be strengthened.

About 433 housing units have been completed under BSUP recently. The capital cost

for the Slum Improvement proposal identified is given in the table below

Table 10-12: Capital Investment Needs for Slum Improvement

S.No Component Amount in lakhs

1 Construction of new housing units

(1427 units)

2150.00

2 Improvement of infrastructure facilities

� roads, drains, sewerage facilities,

lighting etc

200.00

Total 2350.00


Therefore, the total capital investment required for the improvement of slums in



- 86 -


10.1.14 System Improvement GIS Platform

Till date there is no entirely dependable and realistic database for the town, in form

of topography, updated base map, assessment of properties in their location, size,

use and intensity, assets � lands and structures in their location, status, extent and

quality, topography, land parcels by town survey, numbers and sub divisions and so

on. All these can be updated with cent percent precision using high resolution

satellite imageries supplemented by cent percent primary survey. All these with

spatial and non-spatial data can be had on a GIS format which, on a click at any

features or site on the town map will provide the entire details including the

description of the features / address of the owner including tax paid etc. This is a

onetime comprehensive exercise to include the updated town map with town

survey, land parcels, structures, service network, assets with the relevant details and

description on a GIS format.

Property Mapping

Property taxes are the major source of revenue of ULBs in India. However, in most

cities, not all properties are assessed, records are not updated regularly, and tax

collection is far from satisfactory. ULBs can increase revenue by improving property

inventories, record management, public awareness and participation, and tax

collection.

As a first step, the municipality may initiate a door to door survey of all existing

properties, with details on size & built up area of the property, present use, number of

households, houses, size of families, etc. which would form a database for GIS

projects. At the rate of Rs.30.00 per property (including secondary works), the

estimated cost for the project would be Rs.5.00 lakhs. This would also aid in

identifying unassessed and under assessed properties, rationalization of property tax

etc.

Table 10-13: Capital Investment Needs for System Improvement and e-Governance

S.No Description Amount Rs.in Lakhs

GIS Mapping for Comprehensive Property Database 34.00

Property mapping 5.00

Software, Hardware & Networking for Municipality 25.00

Total 64.00

Annual operation and maintenance 1.92

Therefore, the total capital investment required is Rs.64.00 lakhs.

10.2 OTHER PROJECTS

a. Improvement to municipal office building


- 87 -


The municipality has proposed to improve the existing municipal office building. The

details of the proposals identified under other projects are given in the table below:

Table 10-14: Capital Investment Needs for Other projects

S.No Description Amount Rs.in Lakhs

1 Improvement of municipal office building 100.00

Total 100.00

Annual operation and maintenance 3.00

Therefore, the total capital investment required for the other projects is Rs.100.00

lakhs.

b. Wind mills

Madhavaram Municipality has considered the idea of commissioning windmills at

wind potential sites. There are 41 potential locations identified in 8 districts in Tamil

Nadu through wind resource surveys.

As the electricity from the windmill could be sold to Tamil Nadu Electricity Board, it

proves to be an attractive revenue source. Taking sufficient land on lease or

obtaining permission for using waste land in the zone or purchasing land by the

municipality, the wind generator can be installed and the power can be generated.

Special features

(i) Wind Electric Generators can be installed only at specific locations with adequate

wind potential as notified by the Government based on studies.

(ii) Available in various capacity ranges from 225 KW to 1650 KW

(iv) Wind Electric Generator of 250 KW can generate 4.5 lakhs to 5 lakhs units of

electricity per annum depending upon the wind potential of the area.

(v) 250 kW WEG requires 1 to 1.3 acres and 1650 kW WEG requires 3 to 3.5 acres of

land

The capital investment required for the installation of one wind mill at the wind

potential site will be Rs.200.00 lakhs excluding the land cost. The annual operation

and maintenance cost will be Rs.2.50 lakhs.

10.3 OTHER DEPARTMENT PROJECTS

1. Required PWD channel for 10 km long from Retteri through redhills by pass

road to kodungaiur, which should be connected to Buckinghum canal in order to

avoid flooding during rainy seasons.

2. Required improvement to existing PWD channel by increasing the height of

channel for 2 ft from Retteri through thanigachalam nagar upto moolakadai.


- 88 -


Table 10-15: Projects to be taken by other departments

S.No Project Description Nodal Agency Cost (Rs.in

lakhs)-

Regional Level

1 Preparation and implementation of

Integrated Water Resources Management

Plan - Rettai Eri

DTCP / CMA, TNUIFSL 150.00

2

Expedition of MAP Region Development

study

CII (coordinating

DTCP,CMDA, CMA, TNRDC,

PWD, TNUIFSL-encouraging

PPPs, NHAI)

Study

under

progress

3 Preparation of Regional Traffic Operational

and Management Plan

NHAI 5.00

4 Development of Chennai - Manali - Ennore

Corridor linking to Ennore Port and the

Great Northern Trunk Road

TIDCO(coordinating

DTCP,CMA,TNRDC,

TNUIFSL/IL&FS, NHAI)

Study

under

progress

5 Feasibility Study for extension of metro rail

between Chennai and Madhavaram

Railway Authority 12.00

6 Setting up of Resource center for

Technology and Efficiency upgradation of

industrial skills

TIDCO / Technical

Educational institutions and

industries

10.00

Town Level

7 Feasibility study for construction of channel

for 10 km long from Retteri through redhills

bypass road to kodungaiur, connecting

Buckinghum canal in order to avoid

flooding during rainy seasons.

Water Resources

Department, GoTN/ NGO

10.00

8 Improvement to existing PWD channel by

increasing the height of channel for 2 ft

from Retteri through Thanigachalam nagar

upto moolakadai.

Water Resources

Department, GoTN/ NGO

60.00

9 Esco Study CMA/TNUIFSL, Municipality 1.00

10 Awareness campaign for NGOs on their

roles and responsibilities in community

development

Municipality 5.00

10.4 PROPOSED UNDER CDP FOR CHENNAI METROPOLITAN AREA

The Chennai Metropolitan Development Plan includes the infrastructure

requirements for the Chennai City, 16 Municipal areas, 20 Town Panchayats and 214

village Panchayats and 10 Panchayat unions which lie within Chennai Metropolitan

Area. The sector wise details of the proposals are given in Annexure X. The summary

of the Investment Plan is given in the table below.

Table 10-16: Summary of Investment plan � Chennai Metropolitan Area

S.No Component Total cost

Rs. in crores

JNNURM

GOI GOTN IR/IF

1 Water Supply 6321.00 2212.35 948.15 3160.50

2 Sewerage 2299.00 804.65 344.85 1149.50


- 89 -


3 Solid Waste Management 847.80 296.73 127.17 423.90

4 Storm Water Drainage 1423.88 498.36 213.58 711.94

5 Transportation 17254.08 6038.93 2588.11 8627.04

6 Mass Rapid Transit System 600.00 210.00 90.00 300.00

7 Metro rail (45 km) 7000.00 2450.00 1050.00 3500.00

8 Parking lots and spaces 43.85 15.35 6.58 21.92

9 Heritage and Recreation 103.08 36.08 15.46 51.54

10 Satellite Town Development 5000.00 1750.00 750.00 2500.00

Total 40892.69 14312.45 6133.90 20446.34

11 Urban Basic services for poor 3887.23 1943.61 1943.62

Grand Total 44779.92 16256.06 28523.86

Source: CDP, Chennai

10.5 SUMMARY OF CAPITAL INVESTMENTS

The capital Investment for Madhavaram Municipality has been detailed out in the

previous sections. The summary of the capital investment and phasing of investment

is detailed in the table below:

Table 10-17: Summary of Capital Investment

S.N Projects Estimated

cost in lakhs

Year I Year II Year III Year IV Year V

1 Water supply 6000.00 3600.00 2400.00

2 Sewerage 5920.00

Phase I 3600.00 3600.00

Phase II 2320.00 1500.00 820.00

3 Storm Water Drain 3678.00

Preparation of

comprehensive drainage

master plan

3.00

3.00

Construction of pucca

closed drains including

trunk drains (140 km)

3525.00 1470.00 1060.00 995.00

Upgradation and

maintenance of Existing

drains

150.00

50.00 100.00


Preparation of Integrated

solid Waste Management 7.00

7.00

Vehicles & equipments for

primary and secondary

collection

211.00

70.00 126.00 5.00 5.00 5.00

Land cost for Compost

yard 1655.00

1655.00


- 90 -


Land cost for regional

land fill site 1200.00

1200.00

Land fill site & compost

yard development 1750.00

1050.00 700.00

5 Roads 2777.00

Road improvement,

upgradation and 2389.00

565.00 795.00 680.00 349.00

Proposed new roads 388.00 188.00 200.00


Proposed new lights,

fittings & posts 38.00

25.00 13.00

Retrofitting existing lights &

energy saving devices 56.00

35.00 21.00

Solar lights 6.00 6.00

7 Education 282.00 130.00 152.00

8 Medicare 200.00 180.00 5.00 5.00 5.00 5.00

9 Public Convenience 60.00 10.00 25.00 25.00

10 Improvement of Parks 299.00 74.00 100.00 65.00 60.00

11 Market 230.00

Maket construction 205.00 50.00 155.00

Parking area

development 25.00

25.00

12 Burial ground 24.00 10.00 14.00

13 Slum 2350.00 850.00 765.00 735.00

14

E-Governance and

system improvement in

GIS platform

59.00

25.00 34.00

15 Property mapping 5.00 5.00

16 Municipal office building

Improvement 100.00

75.00 25.00

17 Wind mill Installation 200.00 200.00

TOTAL 27107.00 4112.00 9072.00 8737.00 3538.00 1648.00

Chapter � 11 Final Report: Madhavaram municipality

- 91 -


111111 RRRIIISSSKKK AAANNNDDD MMMIIITTTIIIGGGAAATTTIIIOOONNN MMMEEEAAASSSUUURRREEESSS

11.1 PROJECT RISK AND MITIGATION MEASURES

Risk is an integral ingredient in any project venture. Projects without risk are not

heard to have met with great success. Particularly the project package such as this

for a Municipal body has multi-various risks as it is mainly with the public of different

attitudes, background, profession and traits. As such the local bodies are facing

problems of complex nature even in carrying out their rightful functions and duties.

The project risks identified are addressed below

1. Environmental risks*

2. Social risks*

3. Site risks

4. Implementation risks

5. O&M risks

6. Financial risks

7. Market risks

8. Risks due to Natural disasters

9. Risks in private participation

Though the projects identified under the CCCBP do not mostly constitute as sensitive

environmental components, but come under various degrees of environmental

concerns. The identified projects are categorized under the environmental concerns

relating to E1, E2, E3 and Based on the Project Affected Area (PAP) and the level of

social impact as S1, S2 and S3.

Table 11-1: As per the Guidelines on Environmental & Social Concerns of CCCBP projects � Madhavaram

No. Project Items Environmental

Category Social Category

1 Water Supply E2 & E3 S2

2 Sewerage System E2 S1

3 Storm Water Drains E2 S2

4 Solid Waste Management E1 & E2 S2

5 Roads E2 S3

6 Street Lights E3 S3

7 Parks and Playgrounds E3 S2

8 Burial Grounds E2 S2

9 Public Convenience E2 S3

10 Medicare E2 S2

11 Slum improvement E3 S1

12 Market E2 S2


- 92 -


13 GIS database E3 S3

14 E-governance E3 S3

Note:

� E1 projects relate to those where major environmental impacts are foreseen warranting

Environmental Assessment Report (EAR).

� E2 projects are moderate in environmental concerns.

� In E3 projects, no environmental issues are foreseen

� S1 projects will affect 200 people or more.

� S2 projects are those where no PAP is physically displaced and less than 10% of the productive

assets are lost.

� In S3 projects, no household will be affected.

The risks involved in the identified projects and the mitigation measures are given in

the table below

Each of the above categories are detailed out in the table below:

Category Mitigate measures

Site risks

Land interests and land acquisition

Providing all land related information to the

contractor

Resistance from public

Community consultations to ensure least resistance

from local population

Delay due to statutory approvals

Interfacing with all concerned departments to

ensure land approvals or reduce bottlenecks

Un-suitable site conditions.

Careful site selection after detailed investigation of

site history and characteristics

Environmental issues

Addressing all related environmental issues before

the bid process , including impact assessments

Implementation risks

Risks related to design ,construction and commissioning the projects such as:

Design flaws

Review of proposed design by Government,

parstatal agencies.

Ensure correction of design and construction

defects before commencing service delivery

Non - availability of suitable contractor

due to the simultaneous execution of

similar project in many ULBs near by.

Consolidating contract packages and calling

tender at state level or National level.

Short listing of potential contractors at regional

level and Tendering the contract in a planned


- 93 -


manner.

Time and cost over runs

Proper specification of project outputs and core

services to be delivered.

Defaulting in meeting dead lines in

construction and commissioning

Linking contracting services to key performance

indicators and in turn to the payment schedule

Ensuring service delivery

Independent commissioning tester to ensure

delivery of the required performance.

O&M risk

Increase in predicted operating costs Address future service delivery demands also

Impact of design flaws & defective

construction, deterioration of

performance standards

Operating guarantees/performance bonds to

ensure service continuity and compensation for

default

Technologically outmoded practices

Inbuilt options for upgrading technology as the

contract term proceeds

Inherent defects of the system

Escrow mechanisms to ensure protected cash

flows and enforce during service/operational

default

Defaults from designer, builder and

operators

Termination rights in case of insufficient

delivery/break down in service provision

Financial risks

Funding uncertainties

Ensuring project structure, in-built contractual

provisions and foreseeing risks make the project

bankable, addressing lender related issues.

Cost escalation

Mitigate risks arising from inflation, interest rates,

foreign exchange rates etc.

Delays in financial closure of the project

Avoid looking for the lowest cost bid- base

selection upon financially sound structure and

business plan

Market risks

General economic down turn

Quantify demand, providing demand related

information at the bid stage

Changes in Government policies,

Shift in industry focus

Initiate feasibility studies, demand forecasting,

sensitivity analysis.

Change in target-market competition Incentives to stimulate end-users


- 94 -


Risks from Natural disasters

Floods, Cyclones, Earth quakes, Tsunami

Minimize impacts through appropriate insurances

to transfer risk to insurer

Insurance coverage

Regularly review insurance policies to ensure

effective and adequate coverage

Interruption in Service delivery

Appropriate action plans for temporary service

arrangements

Risks in Private sector participation

Project initiation

Specify desired project outcomes, taking into

account Govt. policies

Private operator

Ensure sound financing pattern or the model on

which the private sector has based its

participation

Lack of service delivery

Ensure Government rights to take over some or all

of the sub-contracts of the private party in case of

its failure to perform.

Inadequate capabilities for legal and

technical issues

Contingency plans for continuation of core or

ancillary services

Ensure and technical legal ability to contract with

private party

Delays due to statutory approvals

Identify and facilitate Govt. approvals-related to

planning, environment etc

Delays due to land acquisition

Anticipate ,identify and resolve land tenure issues-

Acquisition , title, encroachments, usage of land

Unforeseen risks to private operator

Insurances to cover aspects like owner�s liability,

asset risks, business interruption, some policy risks,

natural disaster.

Technically out dated mechanisms

Incentives to private sector to incorporate latest

technology by making the design consultant,

builder and the operator part of the OWG


- 95 -


111222 RRREEEFFFOOORRRMMMSSS AAANNNDDD AAACCCTTTIIIOOONNN PPPLLLAAANNN A City Corporate cum Business Plan (CCCBP) is essentially a road map to achieve a

set of development objectives within a specific period. This CCCBP has identified

gaps in municipal service delivery and institutional management, ascertained by

expert analysis and stakeholder feedback. The proposed interventions for the

Municipality are in the form of reforms, action plans and strategies to achieve the

same.

Strategies and Action Plans are the elements which bridge the gap between the

Proposed Reforms and implementation. The following sections detail out the

strategies and Action Plan plans for the proposed Reforms and interventions in the

areas of revenue enhancement, privatization, computerization initiatives, energy

efficiency and municipal service delivery.

12.1 PRESENT SCENARIO IN URBAN REFORMS

�Reforms and change are critical elements in development process; they become

more significant in urban development in the context of growth of towns and

consequent pressure on infrastructure and services, growth of poverty, etc. This is

compounded by institutional constraints like in capacity, fragmented structures,

functional overlaps and outdated processes and procedures. In addition, there has

been a paradigm shift in governance from the traditional top-down model. As a

result governance reforms have become imperative for efficient delivery of services,

provision and maintenance of infrastructure and to provide efficient and responsive

governance to the people. Recognizing the significance of reforms to provide

efficient and effective governance, the State Govt. has initiated and implementing

several urban sector reforms during the last few years.

The following are the key reforms implemented by the GoTN :

1. Devolution of funds: 3.5% of State�s total tax revenue passed on to urban local

bodies.

2. State Finance Commissions: Three consecutive state finance commissions

were setup for recommendations to Government.

3. Setting up of TNUDF: A successful private-public partnership initiative to tap

the capital market.

4. Accrual Based Accounting System: The new accounting system has been

implemented in all the urban local bodies.

5. Computerization and E-governance of select Municipal functions have been

successfully implemented in all urban local bodies.

6. Urban indicators: Performance assessment of ULBs initiated by CMA


- 96 -


7. Revision of Property tax : With effect from April 1.2008, subject to a maximum

of 1.25 times the existing tax structure.

8. Debt monitoring cell: It has been established with office of CMA with the

objective of collecting financial information on individual ULBs, assisting them

in making realistic financial projections and facilitating the Urban Local Bodies

to access the Capital Markets by information dissemination from CMA office.

9. GIS for 5 urban local bodies: Consultancy for Preparation of Property

mapping and Utility Mapping for Madurai, Coimbatore and Tiruchirappalli

Corporations and Rajapalayam & Gobichettipalayam Municipalities has

been initiated as a pilot project by the office of CMA.

10. ESCO Studies: TNUIFSL initiative for the Implementation of energy efficiency in

Water pumping and Street lighting systems under performance contract.

11. Right to Information Act, GoI : An Act to provide for setting out the practical

regime of right to information for citizens to secure access to information

under the control of public authorities, in order to promote transparency and

accountability in the working of every public authority.

12. Preparation of Human Development report for 5 Municipal Corporations under

TNUDP-III, Commissionerate of Municipal Administration- to identify the

strengths and weaknesses of each urban local body on the appropriate

parameters. This would enable them to propose and implement schemes to

overcome the shortcomings and improve the quality of life of their residents.

12.2 PROPOSED INTERVENTIONS AT STATE LEVEL

a. Property Tax

Implement a framework law for disputed properties, so that the assessees pay the

tax first and then carry out necessary litigation as in Central Govt. Depts.

b. Community participation law

Enacting the �Community Participation Law� that will make it mandatory for the

government and its agencies to get the view of citizens, mainly residents� welfare

associations and other citizens� groups, before starting any project.

c. Initiatives in Private Participation

a. Need for a policy frame work

Although the GoTN has not initiated the PPP policy, a clear policy to define the use

of PPPs, the basis for their use, provides political commitment and support for the

program. This could be vital particularly in the early years of PPP ventures. The main

points that may be addressed in the PPP policy are as listed below:


- 97 -


The Policy must stress on PPPs as a provider of better services to the urban

masses and not a tool to attract private investors to supplement Government

deficits.

The policy can provide clarity on other aspects, such as the approach

towards risk transfer, procurement, financing, and the need for transparency.

It should also encourage the discussion of key issues among different

stakeholders, for a better understanding of the main characteristics of PPPs,

their advantages, and their drawbacks. This would ensure a win-win situation

for both public and private sectors.

b. Need for a legal framework

At the National level, PPP law has been implemented in Gujarat, Andhra Pradesh

and Punjab. In Tamil Nadu, sector specific amendments have been used to

facilitate PPPs as in the case of Karur toll bridge wherein the �TN State Toll Act� was

amended to facilitate ULB to enter into BoT contract.

However, a PPP law would be beneficial in consolidating relevant legal provisions

into one, and legislating the process of procurement, development and regulation

of PPP projects, dispute settlements, which can be better enforced by law.

This is especially important at the ULB/ Regional levels where the techno-legal

capabilities might not be as good as at the State/ Central level. A model law at the

Central level or the existing laws in Gujarat, Andhra Pradesh and Punjab would serve

as base for GoTN.

c. Need for strengthening the institutional framework.

The PPP cell at the State level is a GoTN venture. To improve the turnaround in the

number of projects, expertise at TNUIFSL may be roped in for providing consultancy

services for PPP projects. A Regional PPP cell constituting authorities from GoTN,

TNUIFSL and Financial Institutions may be constituted, the expenses on which can be

borne by project basis. Alternatively, Private consultants could be appointed for

project structuring and PMC for specialised projects as in the case of TNHB JV

projects.

A single window approach system at the State or Regional levels through agencies

such as TNUIFSL for technical and contractual guidance for the ULBs aspiring to

execute the projects identified would also address the need for techno-legal

guidance for projects. After the first few projects, Regional authorities and the

executive heads of the ULBs (champions) would have gained considerable

knowledge which could be disseminated to the others. Constant transfer of

administrative �champions� also weaken reform initiatives.

Empanelling private investors and consultants for each sector, based on past

experience, size of the projects and PPP modality would also facilitate policy makers

to identify availability or gaps in the various sectors of urban infrastructure.


- 98 -


d. Information dissemination

At the central and bureaucratic levels, PPP workshops and seminars have been

conducted by the World Bank, ADB and the Department of Economic affairs. But

there has been little trickle down of information to the authorities in need of

information such as ULB officials, authorities of line agencies etc.

The first step in information dissemination could be setting up a publicly-accessible

database on PPPs at the state, regional and local levels to contain information on

o Contract design for various sectors

o Procedures for identifying, procuring and managing PPPs

o Transfer of risks

o Various PPP models

o Analysis of successes and failures

o Case studies of success models with regular performance updates

o Empanelled list of private operators under various sectors and models

at the National and State level.

o Regular updates form resource centres and personnel , on line paper

publications,

o Information on successful contractor, progress of awarded projects

and mile stones achieved.

o Sector toolkits can be developed once sufficient sector experience

has been achieved.

e. Need for Political consensus

Stable political consensus at state and Ulb levels from the EOI stage till the Financial

Closure of the project is one of the main factors that would determine the success of

PPP projects. In the case Tamil Nadu, the success of every PPP project will account

for creating conducive environment for prospective private investors.

f. Addressing size based constraints

Although projects of considerable size only are viable under PPP, clustering of similar

projects in the region would overcome this challenge faced by many small and

medium Towns in Tamil Nadu. A good example would be the WSPF under which WS

/ UGSS projects for 14 Municipalities have been clubbed to build a common

resource base.

g. Strategies for identifying PPP projects.

Step-1

From the compiled list of priority projects across all ULBs, investigate each

project sector wise and size wise for viability under PPP option.


- 99 -


Step-2

Analyze and compare against EPC projects for the benefits in terms of time,

cost, technology options and PPP model applicable. The more

advantageous option for the particular sector / project to be finalised.

Step -3

The projects selected under PPP ventures to be listed down and cross

referenced with the availability of private investors in a particular sector.

Unbundling of services would facilitate bridging any gaps in the availability of

private players and also would facilitate local firms in bidding for the project,

thus increasing competition.


- 100 -


Base source: www.pppinindia.com Organization chart of PPP Cell

http://www.pppinindia.com


- 101 -


Infrastructural projects:

Water supply project

1. As regards water supply projects, the consultant proposes using available

local sources (surface water) in lieu of capital intensive projects from far off

sources. The enforcement of RWH in all buildings is a commendable initiative,

which has proven successful in improving the quality and quantity of ground

water table according to a recent study. Rejuvenation and protection of

water bodies and recycling, reuse of water is also a major issue to be

addressed in this regard. Participation of SHGS, voluntary organizations,

resident welfare associations need to be sought.

UGSS project

1. Highly engineered and mechanized conventional sewage treatments require

large Capital Investments, demand high maintenance costs and are not

feasible for the developing countries like ours. Capital intensive and highly

technological waste disposal solutions, utilizing indiscriminate collection and

large-scale disposal, do not consider the value of recovering organic waste

resources and do not promote recycling. The land required for the disposal of

treated wastewater in the conventional treatment systems is not readily

available. Alternative treatment systems like Root zone treatment methods

could be used.

2. GoTN may also encourage recycle of water, to meet requisite standards

rather than let them out into streams or sewage farms. This will not only

promote water recycling , but also resource recovery of minerals.

Integrated Water Resources Management Plan (IWRM) � The solution.

As a general rule, in the past with smaller populations, less intense economic

activity and with less affluent societies demanding much less water, supply of the

resource was usually much greater than demand for it. In such circumstances

water for agriculture, for industry, for domestic and all other uses could be

managed separately there being sufficient water to accommodate all needs

and there being little competition between uses and between users.

As populations have grown, as food production has increased, as economic

activity has developed and as societies have become more affluent, so

demand for water has burgeoned. The traditional fragmented or purely sectoral

approach is no longer viable and a more holistic approach is essential. This is the

rationale for the Integrated Water Resources Management (IWRM) approach

that has now been accepted internationally as the way forward for efficient and


- 102 -


sustainable development and management of the world�s limited water

resources and for coping with conflicting demands.

�IWRM is defined as a process that promotes the coordinated development and

management of water, land and related resources, in order to maximize the

resultant economic and social welfare in an equitable manner without

compromising the sustainability of vital ecosystems�.

Source: Status Report on Integrated Water Resources Management and Water

Efficiency Plans � UN water report.

12.3 PROPOSED INTERVENTION AT MUNICIPAL LEVEL

The Proposed Municipal intervention is broadly categorized under the heads of:

1. Reforms in Resource Mobilisation

2. Privatisation Initiatives

3. Energy & resource efficiency

4. Computerization and E-governance

5. Accounts and Auditing

6. Institutional Management

7. Municipal service delivery

12.3.1 Reforms in Resource Mobilisation

In an environment in which business activity is booming and urban infrastructure

threatens to become a constraint to growth, the municipalities are faced with an

unprecedented need to find substantial resources for development, and an

unprecedented opportunity to raise the same. The various options for enhancement

of Municipal revenue based is discussed below:

1. Improving revenue from own sources

2. Improving revenue from user charges

3. Formation of new sustainable revenue bases

12.3.2 Action Plan : Improving revenue from own sources

Strategy options :

i. Property and Profession tax

1. Expanding Property tax and Profession tax base.

Onetime assessment of all unassessed and under assessed properties. This

would increase the property tax revenue base by 20-30%. The project could

be taken up as a door �to �door survey of all existing properties, with details

on


- 103 -


1. Size & built up area of the property

2. Present use - residential, commercial, industrial or vacant.

3. Number of households, houses, size of families, etc.

Street naming and property numbering already undertaken by Govt. of Tamil

Nadu needs to be linked to this to streamline the study. At the rate of Rs.30.00

per property, the estimated cost for the project would be about Rs.5.00 lakhs.

Property mapping would form a database for GIS projects (Land use and

Utility Mapping), which is a long term project and in the rationalization of tax

structure. The participation of the SHGs, (youth and women) could be utilized

for the purpose.

Identifying and including omitted Profession tax assesses - This project is to be

linked to the property mapping exercise. An improvement of 20-30% on the

existing tax base could be expected.

2. Rebates on Property tax:

Most of the collections take place during the last quarter of the year. This

results in poor collection efficiency, wherein the ULB ends up collecting much

less taxes than the tax demand raised. The option of providing rebates upto

10% for �early birds� paying the tax during the 1st and 2nd quarter could be

explored. This would ensure timely spending on capital and operating

expenditure and efficient tax management systems.

3. Regular and periodic increment of property tax at 15% every 5 years.

4. Mobilizing a �Fast Track Litigation Campaign� to settle disputes on

properties.

5. Levying Vacant Land Tax as per the recommendations of Third State

Finance Commission. Empowering the municipality to convert non-

claimed lands to socially benefiting uses.

ii. Profession Tax Reform

Revising the profession tax based on the Third State Finance Commission

recommendations.

iii Regularization of unapproved construction

Regularization fees for unapproved constructions at the rate of 5 times the

existing building license fee.


- 104 -


Table 12-1: Road Map - Improving revenue from own sources

Sl.No Reforms Year of Implementation

Year 1 Year 2 Year 3 Year 4 Year 5

1 Property tax Reform

i Property Mapping √

ii Rebates on Property tax √

iii Regular and periodic

increment of property tax √

iv Mobilizing a �Fast Track

Litigation Campaign�

√

v Levying Vacant Land Tax √

2 Regularization of unapproved

construction √

12.3.3 Action Plan : Improving revenue from user charges

Strategy options

i. Water supply and UGSS

Approval of the Municipal council for the proposed tariff and deposit

structure to enhance the public contribution and meet the entire O&M cost.

Increase in the penetration of connections to at least 85% of total

assessments. This backed by higher collection efficiency and enforced

leakage losses (less than 15%) would further improve service delivery.

Levy Reasonable User Charges to recover full O&M Cost of water supply and

UGSS.

Implementation of graded tariff structure (UGSS) for domestic and non-

domestic connections. This needs to be linked to property mapping project

and type of assessment to be ensured.

Mandatory mobilisation of deposits for Capital intensive WS or UGSS projects

during pre-construction stage of the project.

ii. Solid Waste Management

Approval of the Municipal council for the proposed Solid waste conservancy

charges for commercial and industrial establishments during the base year

and after 5 years for domestic assessments.

For implementing collection of conservancy fee for Solid waste Management

.The proposed tariff structure is given below:

Domestic - Rs.5 per month.(medium term plan)

Commercial - Rs.10 per ton.

Industrial - Rs.15 per ton.

Bio-medical - Collected by IMA.


- 105 -


Privatisation of collection, transfer, construction and management of

compost yard and compost production. This would reduce the O&M

expenses of Municipality on SWM by 30 to 40%.

Revenue generation from selling scrap after segregation at secondary

collection point or compost yard at Rs.10 -Rs.15 per kg.

Revenue Generation from sale of compost at the rate of Rs.1000 per tonne as

bulk supply to nearby agricultural areas. Incidentally, the manure generated

from Municipal garbage is found to be richer in NPK values compared to the

one available in the market. This has resulted in producing better yield of

agricultural products both in quantity and quality.

Table 12-2: Road Map improving revenue from user charges

Sl.No Reforms

Year of Implementation


1 Water Supply and UGSS

i Increasing deposit and tariff √

ii Graded tariff for UGSS √

iii Pre mobilization of deposits √

2 Solid Waste Management

i

Collection of conservancy fee for

Commercial and Industrial

Establishments √

ii Collection of conservancy fee for

Domestic assessments

√

12.3.4 Action Plan: Formation of new sustainable revenue bases

Strategy options

i. Remunerative projects

To improve the revenue base of the municipality, following are the remunerative

proposals identified.

Modern market complex with parking facilities at the Tamil Nadu State

Palmgur & Fibre Marketing Co-operative federation Ltd site.

Installation of wind mill

The above projects may be initiated after pre-mobilisation of deposits from

beneficiaries to meet atleast 80% of total capital cost. This would not only ensure

own revenue generation for the Municipality, but also the demand for the proposed

project

Apportionment of revenue from the truck terminus, maintained by the CMDA.


- 106 -


ii. Parking Regularisation Plan

Enforcing no-parking zones and identification of possible parking areas with the

involvement of stakeholders would be the first step in mitigating congestion in the

central areas of the town. Preparation of inventory for all roadside parking areas.

Initiating time based pay and park facilities for vehicles. Appropriate rent structure

from auto stands, LCV and heavy vehicles parking would also improve income

generation.

The proposed parking fee structure is:

Bicycles - no tax

Two wheelers - Rs.2.00

Light Vehicles - Rs.5.00

Heavy Vehicles - Rs.10.00

iii Advertisement Regularisation Plan

Identifying strategic locations such as bus shelters, road medians, for hoardings and

poster places in Municipal area and levying advertisement tax at the rate of Rs.25

per sq. ft per annum.

To prepare an inventory of advertisement spaces within their limits with size and type

.Auctioning the entire rights to a single bidder on an annual basis is suggested. The

initiative of GoTN to remove hoardings and encroachments is a welcome step to

regularize the advertisements and hoardings.

iv. Collection of Annual Tract rent

From cable T.V operators - (Rs.3.00 per running metre)

From Telecommunication service providers - (Rs.5.00 per running metre)

The urban local body may be empowered to collect the security deposits at

Rs.10,000 per operator and revise the tract rent every three years. The collection of

tract rent and deposits can be handed over to Youth SHGs.

Table 12-3: Road Map for Formation of new sustainable revenue bases



1 Formation of new sustainable revenue bases

i

Premobilization of deposits for

construction of shopping complex at

teachers colony √

ii Parking Regularization

iii Advertisement Regularization √

iv Collection of Annual tract rent √


- 107 -


12.3.5 Action Plan: Privatisation Initiatives

The present areas of privatization of the functions of the ULB in Tamil Nadu are

i. Solid waste management- all components.

ii. O&M of street lights.

iii. O&M of water supply distribution.

iv. AMC of public and pay & use toilet facilities.

v. Parks and parking lots Maintenance and user charges collection.

The GoTN states that this list is indicative and ULBs are free to explore more options.

This would not only save the O&M expenses, but also indirectly in pension and

gratuities. The various strategy options are discussed below:

Strategy options

1. Privatisation of Collection mechanism

Providing a computer fitted mobile van with online access to municipal

database for spot billing and collection of all taxes. Performance based

incentives can be given to the private operators at the rate of 5% of total

collection .The support of the Youth / Women SHGs or fan clubs can be sought

for the purpose of collection with adequate sensitization programmes.

2. Improving community participation by organizing Public awareness

campaigns and Training of Tax Inspectors, to improve the �willingness to pay�

of the users. The aid of SHGs, fan clubs, media could be utilized for the

purpose. The following are the various avenues of revenue, the collection of

which could be privatized.

1. Property tax

2. Profession tax

3. Water - Deposits and tariff

4. UGSS- Deposits and tariff

5. Advertisement spaces /rights as a single contract

6. Parking areas

7. Solid waste conservancy fees(Domestic and non-domestic)

3. Privatisation of Operation and Maintenance of the entire Water Supply and

Distribution System.

4. Privatisation of operation and maintenance of the UGSS.

5. Privatisation of Solid waste management (Discussed indetail under Improving

revenue from user charges)

6. Privatisation of O&M of street lights & pumping machinery(detailed out in

Action plan for energy & resource efficiency)


- 108 -


7. Repair and maintenance of major Municipal roads for 3 years from the period

of laying.

8. Option of BOT, BOOT for parks & play grounds by implementing user charges

for areas more than 5000 sft .

9. Option of converting public toilets to pay & use type and privatization of

O&M.

10. Private participation in medical infrastructure like RCHP, maternity homes and

adoption of premium and free facility programme in return for improved

medical facility.

Table 12-4: Road Map for Privatization initiatives

Sl.No Reforms


Year

1

Year

2

Year

3

Year

4

Year

5

1 Privatization of Operation and Maintenance

i water supply and Distributionsystem √

ii Sewer network & STP √

iii street lights √

iv AMC of Public and pay % use toilet

facilities √

v Parks and parking lots Maintenance

and user charges collections

2 Privatisation options in Solid Waste

Management

Privatization of Door to door collection of

solid waste √

Compost yard management & sale of

compost & scrap √

3 Privatization of Collection mechanism

Spot billing and tax collection using mobile

van √

4 Formation and sensitisation of youth &

women SHGs √

5 Public awareness campaign for improving

tax collection (IEC) √

12.3.6 Action Plan: Energy & resource efficiency

Strategy options

Conducting energy audits for water pumping machinery and street lights.

Conducting leak detection studies, if transmission losses are more than 15%.

All Head works and service reservoirs may be fitted with bulk water meter to

assess the loss due to non revenue water and unaccounted water.

Enforce regulations on illegal tapping of water.

Fixing flow control valves and meters for all water service connections.


- 109 -


Provision of energy saving lights, and equipments like dimmer and timer

switches to reduce energy consumption.

Privatizing the maintenance of street lights to ESCO companies.

Street lights

TNUIFSL has initiated the preparation of Energy Saving Company(ESCO) studies

for energy efficiency in the O&M of street lights and pumping machinery for

select Municipalities throughout Tamil Nadu. ESCOs provide comprehensive

services - encompassing audits for energy saving performance, design &

implementation of conservation measures, maintenance, operation and

management of the introduced facilities and procurement of project funds.

ESCOs conduct retrofitting for energy conservation without damaging the

environment. The ESCO will guarantee the savings that would meet or exceed

the annual payments to cover up the entire project costs usually a period of 5 to

10 years. The savings can be shared proportionately with the institution for which

the project is designed and implemented for.

The salient features of performance contracting for energy savings through ESCO

based business model are as under:

2. 'Nil' investment by customer.

3. ESCO to identify Energy Efficient Measures (EEMs) to replace / modify existing

in efficient systems.

4. ESCO supplies, installs and maintains the Energy Efficient Measures (EEMs)

during the contract period.

5. Contract period could be 3-5 years or as mutually agreed upon.

6. Energy saving is shared between ESCO and customer as per agreed terms.

Total project cost is funded by ESCO. The O & M expenses will be met by the

Municipality.

7. Guarantee Energy savings and recover its investment including interest &

other costs out of generated energy savings.

Table 12-5: Road Map for Energy and Resource efficiency

Sl.No Reforms


Year 1 Year 2 Year 3 Year

4 Year 5

1 Energy audit

i Leak detection study √

ii Fixing of bulk water meter √

iii

Fixing flow control values and

meters √

iv

Implementing energy saving

measures on street lights and

pumping machineries (ESCo) √


- 110 -


Wind Mills

A Wind Electric Generator is a mini power plant which generates electricity from

wind energy. There are 41 potential locations identified in 8 districts in Tamil Nadu

through wind resource surveys.

The wind power generated can be:

i. Used for captive use through wheeling using the power grid of the

concerned state electricity board.

ii. Can be directly sold to the State Electricity Board

Government of India and state governments have developed suitable policies and

guidelines for providing technical help, financial support and various other

incentives for development of wind power in the country. The various incentives that

are being provided by the central and the state governments are as per the details

given below:

Table 12-6: Central and state government incentives

From Central Government From State Governments

Income Tax Holiday Energy buyback, power wheeling and banking

facilities

Accelerated Depreciation Sales tax concession benefits

Concessional Custom Duty/ Duty Free

Import

Electricity tax exemption

Capital/ Interest Subsidy Demand cut concession offered to industrial

consumers who establish power generating units

from renewable energy sources

Capital Subsidy

The abstract of the wind energy generator project details are given in the table

below.

Table 12-7: Wind Energy Generator project details - Abstract

Description Units Values

Capacity of WEG kw 250

No. of WEG No. 1

Land requirement acres 1 to 1.3

Total power generation capacity of WEG KW 250

Number of days in year No. 335

no. of hrs / day No. 24

Total wind energy generation in kwh 2010000

Plant Load factor (PLF) capacity of the installed machine

(standard)

%

24%

Actual Energy generation capacity kwh 482400

Net salable units less transmission losses kwh 482400

Sale price of electrical energy (Rs/unit) 2.5


- 111 -


Total sales of wind energy generated (Rs in lakhs) 12.06

Total Expenditure assumed (insurance/Admin/O&M) (Rs in lakhs) 2.5

The cost�benefit analysis for the investment on installation of Wind Energy

Generators for generation of wind power at 250 KW capacity have been analyzed (

given in annexure XII-b) and considering the financial capabilities of the

Municipality a 250 KW WEG is proposed at an estimated cost of Rs.200.00 lakhs

including the land cost.

The land requirement for a 250 kW windmill varies from 1 to 1.3 acres. The wind

potential sites at Coimbatore belt or Thenkasi belt or Theni have been considered for

the case.

The projected net saleable units less transmission losses works out to 4.82 lakh units

(KW), at the rate of Rs.2.50 per unit. The revenue generated per annum would be

Rs.12.00 lakhs and the O&M expenditure would be Rs.2.50 lakhs. This would be an

additional source of sustainable revenue base for the Municipality.

12.3.7 Action plan: Computerization and E-governance

Strategy options

1. Launch data warehousing on a large scale, which would avoid cross-

reference to paper record, which are time consuming and also preservation

of paper media, which occupies space, could be avoided.

2. Computerization of bill payment and facilitation of on line payments

3. Computerisation of registration of land records within Municipal limit

4. Digitisation of Birth and death certificates for the past 30 years

5. Property Mapping to be computerised and details on area, year of

construction, type of assessment to be computerized to facilitate calculation

of property tax.

6. Administration and issue of trade licenses to be on line, including payment

and reconciliation of license fee.

7. Computerization of birth and death certificates and on line issue of

certificates.

8. Computerization of public grievances and Redressal mechanism

9. Introduction of asset management system for all available land and building

assets of the Municipality

10. On-line submission of building plans and approval.

11. Track O&M of assets and their replacement

12. E-tendering processes.

The above proposal can be taken up after giving sufficient training to Municipal

staff in hard ware and software.


- 112 -


Table 12-8: Road Map for Computerization and E-Governance

Sl.No Reforms


Year

1

Year

2

Year

3

Year

4

Year

5

1 Computerization and E-governance

i

Digitizing municipal records (past 30

years) √

ii On-line bill payment √

iii Registration of Land records √

iv

Digitization of old Birth and death

certificates √

v

On-line issue of Birth and Death

certificates

vi Property Mapping √

vii on-line Issue of trade license √

viii Online submission of building plans √

ix E-tendering √

12.3.8 Action Plan: Accounts and Auditing

A Consultant committee of chartered accountants having experience in

municipal accounting should be constituted to provide training to the Municipal

employees.

Timely Auditing should be performed with the use of private Chartered

Accountants for routine audit and local audit to carry out proprietary audit.

Closing all Auditing before September 30 of the next financial year and

publishing the audited statement on the website.

12.3.9 Action Plan: Institutional Management

The constant change in urban sector in the context of reforms results in the need for

continuous upgradation of the skills and knowledge of the ULB staff. TNUDP III has

initiated the process of providing the required training to the staff during the current

planning period. It is essential that the training process becomes a sustainable one

with the introduction of an institutional framework which would ensure that the

training is provided in a continuous manner.

Training programmes need to be evolved depending upon whether they are

Elected Representatives, Senior level officers, Middle level officers and staff in

various sections of the ULBs. Training of public representatives and staff of ULBs will

not only improve their skills but also exposes modern/scientific technological

advancement in engineering, management and inter personal communication.


- 113 -


The categorization of training is based upon the position at various levels focusing

primarily of managerial aspects, technical knowledge, skills and management tasks

and awareness about responsibilities.

Table 12-9: Road Map for Accounts & auditing and Industrial Management



1 Accounts and Auditing with charted accountant

I

Appointing private charted accountant

consultant √

Ii Closing of audit and accounts (Sept 30th) √

iii

Online publication of audited statement

(Oct 30th) √

2 Institutional Management

i

Capacity Building for Elected

Representatives

ii Capacity Building for ULB staffs

Strategy options

12.3.10 A. Capacity Building for Elected Representatives and Committee members

The details of the various training requirements for elected representatives and

Committee members are presented below.

Table 12-10: Technical Assistance for Elected representatives

Category Identified Training areas

Elected representatives Visioning, goal setting, Planning

Urban Governance, Management and Planning

Social management and urban poor management

Financial and cost management

Budget preparation

Tender procedure

Training in interpretation of various laws, rules, regulations and

statutes that ULB is bound by

E - Governance

Redressal of public grievances

Environment management

JNNURM, UIDSSMT, IHSDP, IHSDP & BSUP

City Corporate Plan, Urban Development plans (Master plans,

DDPs)

Solid waste management.

Disaster management

Managerial development and effectiveness

Public relations and Human resource development.

Crisis management and Stress management

Personality development and Motivation skill development

Written and Oral Communication skills


- 114 -



Committee members Tax appeal committee: tax assessment methods; interpretation

of various laws, rules, regulations and statutes

Contracts committee: procurement procedures; interpretation

of various laws, rules, regulations and statutes

Appointment committee: Interviewing skill and techniques

12.3.11 B. Capacity Building for ULB staff

The training areas identified for ULB staff in all position is classified as functional,

managerial & behavior and attitude in short, medium and long term training. The

details of the various training requirements for ULB staff are presented below.

Table 12-11: Technical Assistance for ULB staff


Senior Management Staff People management skills

Motivation and Interpersonal skills

Leadership and Public relations

Attitudes � both personal and organizational

Team Building, Human resource development

Goal setting, Budgeting

Written and Oral Communication skills

Effective use of computers especially for managerial decision

making

Proper interpretation and effective use of MIS reports

Decision support systems


statutes

Time management, Stress management

Change management

Effective urban management

Management principles, Managerial development and

effectiveness

Interviewing skills

Social management and urban poor management

Citizen grievance handling

Project appraisal, Project Management and project financing

Contract management, Bid management, Costing

Procurement procedures

Pricing and tariffs/taxation methodologies

Operations research

Quality control

Public private partnerships and opportunities for ULB in the

same

Reforms at the ULB level

Financial and cost management

Environment management

Disaster management

Solid waste management

Systems management (improving citizen service and ULB

efficiency)

Strategic urban planning


- 115 -



Performance management system and key result areas.

Supervisory Staff Motivation and Interpersonal skill development

Effective use of computers


statutes

Training for development of a positive attitude

Citizen handling and grievance handling

Managing urban poor, education and health services

Implementation skills

Training in developing a Performance Management Systems

(PMS) and key Result Areas (KRA)

Training for Operational

staff

Functional skills required in their respective function

- Training in office Procedures

- Training in computers

- Training in team work

Training in general office administration and management

- Training in effective servicing

- Training in communication

- Training in equipment usage Source: CMA Records.


- 116 -


Table 12-12: Road map for implementation of all projects

S.N Projects Implementing Agency Year 1 Year 2 Year 3 Year 4 Year 5

I Water supply CMWSSB

II Under Ground Drainage system CMWSSB

Phase I

Phase II

III Strom water Drain Municipality

V Solid Waste Management

Municipality / private

operator

Vehicles & equipments - Primary & secondary

Collection

Land for regional Landfill site & compost yard

Land fill site and compost yard development

V Roads

Municipality

Roads and junction Improvement

New roads

VI Street light ESCO/ Municipality

VII Slum Municipality

VIII Education

Municipality

IX Health

X Parks improvement

XI Market complex

XII Public Convenience

XIII Burial Ground improvement

XIV E-Governance

XV GIS Mapping

Property Mapping

GIS Database

XVI Municipal Office building improvement

XVII Wind mill Installation Municipality

Source: Analysis and calculations


- 117 -


12.3.12 Reforms in Municipal Service Delivery

The reform agenda for municipal service delivery is given in the following table

Table 12-13: Road map Reform Agenda Municipal Service Delivery

Sector Particulars Benchmark

considered Existing

Target

Year 1 Year

2

Year

3 Year 4 Year 5

After 5

years

WAETR SUPPLY

Net Supply per capita 135 lpcd 61.20 61

Project

Implementatio

n

135lpcd 135 lpcd

HSCs - % of assessed

properties ≥85% 8.6 25 60 85

85% ≥85%

Frequency of Supply - Hours

per day 24x7 hours

3 hrs

daily Period of implementation

24x7

SEWERAGE

SYSTEM

HSC coverage ≥85% Nil

Period of

implementation

85% ≥85%

Coverage of UGSS network -

% of road length 100% Nil

100% 100%

SOLID WASTE

MANAGEMENT

Availability of Composting

facility

100%

available

Not

Availabl

e Period of

implementation

100% available 100%

available

Collection efficiency 100% 90%

100% 100%

ROADS,

STORM WATER

DRAIN, STREET

LIGHTS

Surfaced roads- % of total

road length 100% 83% Period of implementation 100%

Storm water drains - % of

total road length 130% 20% Period of implementation

130% 130%

Average spacing between

Street lights 30m 29m Period of implementation

30m 30m

Source: Analysis and research

Chapter � 1 3 Final Report: Madhavaram Municipality

- 118 -


111333 AAASSSSSSEEETTT MMMAAANNNAAAGGGEEEMMMEEENNNTTT PPPLLLAAANNN All the assets developed, operated and maintained by the Municipality are termed

as municipal assets and comprise roads, bridges, culvert, water supply & distribution

system, UGSS network, STPs, drains, and street lights. Municipal Assets also includes

social infrastructure assets such as municipal owned schools, hospitals, parks and

playgrounds, community halls, shopping complexes, stadium, and vacant lands.

Municipal assets are normally classified into movable and immovable assets.

Immovable assets attain importance as indicators for the financial worth which

would help in its borrowing capacity and credit worthiness of Madhavaram

Municipality.

The management of assets in the local bodies is at the initial stage where, only the

assets are listed and status is described. Invariably, in all the cases, the management

component is missing as to the techniques and methods of managing the assets

either in improving their state and value or in sustaining them with a growth motive.

There is hardly any case where a local body has made use of its immovable assets

for raising loans or improving its borrowing capacity. It requires an overall approach

outlining the alternative options of maintaining and managing the assets in a

worthwhile mode.

13.1 ACTIVITIES OF ASSET MANAGEMENT PLAN (AMP)

The Asset Management Plan for Madhavaram Municipality would comprise the

following 5 steps as explained below:

1. Asset identification

All movable and immovable equipments, immovable municipal properties, assets of

Municipality that have been developed, handed over or acquired over time from

various sources and departments have to be identified and traced. This would

include the detection of unrecorded infrastructure facilities and properties; scrutiny

of records, land registers and land surveys, etc.

2. Audit and reconciliation of records

The Municipality should record all movable and immovable municipal properties

and assets and infrastructure facilities. Maps and master plans should be

crosschecked and an infrastructure facilities audit should be prepared or updated (if

already existing). Current asset values should be assigned based on a �condition-

survey� of the infrastructure facilities.

Land and property records should be crosschecked and municipal registers to be

updated to include previously undetected land, properties and development. A

comprehensive list of municipal land, properties and development should be

compiled with approximate assigned.


- 119 -


3. Assessment of Remunerative potential

Municipality should review the existing revenue earning potential of all its assets. New

projects or initiatives should be taken to maximize the revenue earning potential of

assets including infrastructure facilities. The intangible benefits of social facilities also

need to be considered in the process.

4. Digitisation of asset register

Focus should be placed on designing, testing and installing a database

management system for municipal assets. All data, once complied should be

classified on the basis of sector specific infrastructure facilities, land and properties.

Specific software should be customized to suit local requirements and data should

be translated into specified formats.

5. Training in database management

Training is the most important part of an asset management plan. Training should

emphasize methods of simplified updation of data, and methods of monitoring and

follow-up relating to infrastructure facilities management, land use, litigation,

encroachment, values, expenditure and revenue flows.

13.2 INFRASTRUCTURE ASSETS

Infrastructure Assets will include all movable and immovable equipments and

properties including water supply, drainage, sewerage, solid waste management,

roads, street lighting etc. Unlike other assets of the municipality, these assets undergo

constant use, wear and tear, addition, repair etc. This correspondingly changes their

values and hence a constant value updating is necessary.

13.2.1 Movable and immovable assets

Water Supply

Bore wells with Hand pumps - 395 nos

Bore wells with power pump - 28 nos

H.S.C.s - 260 nos

OHTSs - 28 nos

Distribution line - 75.8 km

HDPE - 233 nos

Public Convenience

Public Toilet unit - 9 nos

ISP toilet - 3 nos

Vambay toilet - 10 nos

Storm Water Drains

Total existing Drain - 24.52 km


- 120 -


Solid Waste Management

Mini Trucks - 3 nos

Tricycle - 60 nos

Twin dumper placer - 1 nos

JCB - 1 nos

Roads

B T Road - 101.08 km

C C Road - 5.31 km

W B M Road - 16.79 km

Earthen Road - 3.99 km

Street Lightings

Tube Lights - 3942 nos

Sodium Vapour lamps - 738 nos

Parks & Play fields

Municipality parks - 11 nos

Burial Grounds

No. of burial grounds - 8 nos

Education

Middle school - 2 nos

Higher secondary school - 3 nos

Medicare

Maternity center - 1 nos

13.3 PRIORITY ASSET MANAGEMENT OPTIONS

There are remunerative and non-remunerative assets of the municipality on which

the municipality incur considerable expenditure for operation and maintenance. The

commercial complexes in the town, Shops in the bus stand, Markets, Slaughterhouse,

Pay and Use toilets, etc are all remunerative. Non-remunerative assets of the

municipality are the burial ground, public toilets, compost yard, parks and playfields

etc,. The list of land assets are given in the table below:

Table 13-1: Land Assets � Proposed use

S.No Location Present use Proposed use

1 26 open spaces within

municipal limits

Not efficiently used

Parks

2

Lakshmipuram Vacant land

Primary Urban health

center

3

Tamil Nadu State Palmgur &

Fibre Marketing Co-operative

federation Ltd. campus

Not in use Modern market Complex

Source: Survey, Analysis and discussion with municipal officials


- 121 -


Table 13-2: Income from Proposed new Projects

S.No Description Income (Rs.in lakhs)

1 Market complex (stalls and shops) 90.00

2 Parking at market complex 5.00

3 Slaughter House 4.00

4 Wind mill 5.00

The suggestions for the improvement of land asset management are listed below:

1. Create land asset register listing all Municipal properties with the following

data:

Survey number

Location

Ownership data

Date of acquisition

Extent in Sq.m

Present status

Rate per sq.m

2. Establishment of GIS inventory for Municipality lands.

3. Removal of encroachments on Municipal lands.

4. Alternatively, levy of rent on Encroached Municipal lands.

5. Use of land assets for borrowing loans from capital market.

6. Identifying the most remunerative activity by Public Private Participation, BOT,

BOLT, BOOT initiatives.

7. Lease or rent out of land parcels for a specific period of time.

8. Asset creation by acquiring lands in peri-urban areas.

13.4 PROPOSED NEW ASSETS

Since every year there is an addition to such assets, an indication of the values is a

must in calculating the present values and also projecting to the future. In the

absence of any trend, the values of the structural assets have become difficult to be

computed. However, the values of the proposed projects in the form of assets both

for structural elements and certain movable items are indicated in the statement.

The assets creation by way of the projects proposed under CCCBP for

implementation in the years to come are indicated with the capital investment

values as in table below:


- 122 -


Table 13-3: New Assets for the year -2009-10 to 2013 -14

S.N Projects Estimated cost in

lakhs

1 Water supply Improvement 6000.00

2 Sewerage 5920.00

3 Storm water drain 3678.00


5 Roads and Bus stand 2777.00

Road improvement, upgradation and widening 2389.00

Proposed new roads 388.00


7 Education 282.00

8 Medicare 200.00

9 Public Convenience 60.00

10 Improvement of Parks 299.00

11 Market complex 230.00

12 Burial ground improvement 24.00

13 Slum 2350.00

14 E-Governance and system improvement in GIS

platform 59.00

15 Property mapping 5.00

16 Municipal office building Improvement 100.00

17 Wind mill 200.00

TOTAL 27107.00


- 123 -


111444 FFFIIINNNAAANNNCCCIIIAAALLL AAANNNDDD OOOPPPEEERRRAAATTTIIINNNGGG PPPLLLAAANNN

14.1 CAPITAL INVESTMENT PLAN

The proposed projects for Madhavaram Municipality taking in to account its

resources and the existing shortfall in services are given below. The projects have

been phased out taking in to account the time-span required for implementation of

the project and the availability of the funds (loans, grants and municipality�s own

resources) for the same.

Table 14-1: Projects to be executed by the Municipality

S.No. Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 Total

A

Physical Infrastructure

Facilities

I Water Supply

a)

Improvements to

Water Supply - 3600.00 2400.00 - - 6000.00

II Sewerage & Sanitation

a) Phase I 3600.00 - - - - 3600.00

b) Phase II - 1500.00 820.00 - - 2320.00

III Strom Water Drains

a)

Preparation of

Comprehensive

Drainage Master Plan - 3.00 - - - 3.00

b)

Construction of new

pucca closed drains

including

trunk drains (140 km) - - 1470.00 1060.00 995.00 3525.00

c)

Upgradation and

maintenance of

existing drains - - 50.00 100.00 - 150.00

IV

Solid Waste

Management

a)

Preparation of

Integrated Solid Waste

Management 7.00 - - - - 7.00

b)

Vehicles and

equipments for

primary and

secondary collection 70.00 126.00 5.00 5.00 5.00 211.00

c)

Land cost for compost

yard - 1655.00 - - - 1655.00


- 124 -


d)

Land cost for regional

land fill site - - 1200.00 - - 1200.00

e)

Land fill site & compost

yard development - - 1050.00 700.00 - 1750.00

V Roads

a)

Roads improvement,

upgradation &

widening - 565.00 795.00 680.00 349.00 2389.00

b) Proposed New Roads - - - 188.00 200.00 388.00

VI Street Lights

a) Proposed new lights - 25.00 13.00 - - 38.00

b)

Retrofitting & energy

saving devices 35.00 21.00 - - - 56.00

c) Solar Lights - 6.00 - - - 6.00

B

Social Infrastructure

Facilities

I Slum Improvement

a) Improvements to Slums - 850.00 765.00 735.00 - 2350.00

II Education

a)

Improvements to

Schools 130.00 152.00 - - - 282.00


a)

Improvement of parks,

construction of

compound wall - 74.00 100.00 65.00 60.00 299.00

for play ground & play

equipments

IV

Burial Ground /

Crematorium

a)

Improvements to Burial

Ground - 10.00 14.00 - - 24.00

V Medicare

a)

Improvement to

maternity centre 180.00 5.00 5.00 5.00 5.00 200.00


a) Public Convenience 10.00 25.00 25.00 - - 60.00

VII Market

a) Market Construction 50.00 155.00 - - - 205.00

b)

Parking Area

Development 25.00 - - - - 25.00

C Other Projects

I Other Projects

a)

Municipal Office

Building Improvement - 75.00 25.00 - - 100.00


- 125 -


b) Wind Mill - 200.00 - - - 200.00

II E-Governance

a)

E-Governance &

System Improvement

in GIS Platform - 25.00 - - 34.00 59.00

b) Property Mapping 5.00 - - - - 5.00

Total 4112.00 9072.00 8737.00 3538.00 1648.00 27107.00

The initial building blocks of the Corporate Plan are the �elements� required to

sustain the town�s growth; public utility, urban environment, economic and social

development, land use and transportation, municipal resources, urban governance

and capital facilities. The projects in the plan were developed through a

consultative process carried out between the Local Body Officials, Council Staff and

Elected Officials, Public Interest Groups, Project Stakeholders and the local citizens.

The projects have been prioritized in the following order :

a) Water Supply

b) Sewerage and Sanitation

c) Solid Waste Management

d) Storm Water Drains

e) Urban Service for Poor (Slum Upgradation)

f) Roads, traffic and transportation

g) Street Lighting

14.2 OTHER PROJECTS AND ON GOING PROJECTS

The details of projects identified to be executed by other departments / agencies

and the ongoing projects that are being executed by the Municipality are given

below :

Table 14-2: Projects to be executed by Other Agencies

S.No Particulars Total Funding By

I Regional Level 150.00 DTCP / CMA, TNUIFSL

a) Preparation & implementation of integrated

waterbodies restoration and Mgmt Plan -

Rettai Eri

b) Expedition of MAP Region Development Study CII co-ordinating DTCP,

Study under CMDA, CMA, TNRDC,

progress PWD, TNUIFSL -

encouraging PPPs, NHAI)

c) Preparation of Regional Traffic Operational 5.00 NHAI


- 126 -


and Management Plan

d) Development of Chennai - Manali - Ennore Study TIDCO (coordinating

Corridor linking to Ennore Port and the under DTCP,CMA,TNRDC,

Great Northern Trunk Road progress TNUIFSL / ILFS, NHAI)

e) Feasibility Study for extension of Metro 12.00 Railway Authority

Rail between Chennai and Madhavaram

f) Setting up of Resource Center for 10.00 TIDCO / Tech Educational

Technology and Efficiency upgradation Institutions & Industries

of industrial skills

II Town Level

a) Feasibility study for construction of 10.00 Water Resources Dept,

channel for 10 Km long from Retteri GoTN / NGO

through Red Hills bypass road to

Kodungaiyur, connecting Buckinghum

canal in order to avoid flooding during

rainy seasons.

b) Improvement of existing PWD channel by 60.00 Water Resources Dept,

increasing the height of channel for 2ft GoTN / NGO

from Retteri through Tahnigachalam Nagar

upto Moolakadai

c) Awareness Campaign for NGOs on their 5.00 Municipality

roles and responsibilities in community

development

Total 252.00

Table 14-3:Projects under Implementation by the Municipality

S.No Particulars

Total

Cost Loan Grant

Mun

Cout. Funding By

a) Laying of BT Roads 10.00 - 10.00 - 100% Grant

b) Construction of SWD 61.00 - 61.00 - 100% Grant

Total 71.00 0.00 71.00 0.00

14.3 MEANS OF FINANCE

The means of finance for each individual project identified taking in to account

whether the same is remunerative or non-remunerative and the availability of

Grants from various sources is given below:


- 127 -


Table 14-4: Multi Year Investment Plan and Means of Finance

Multi Year Investment Plan

S.No. Particulars

2009-

10

2010-

11

2011-

12

2012-

13

2013-

14 Total

A

Physical Infrastructure

Facilities

1 Water Supply

Total Project Cost - 3600.00 2400.00 - - 6000.00

Add : Price Inflation @ 7% 0.00 521.64 540.10 0.00 0.00 1061.74

Total 0.00 4121.64 2940.10 0.00 0.00 7061.74

Means of Finance

TNUIFSL Loan 0.00 1731.09 1234.84 0.00 0.00 2965.93

Grant 0.00 2060.82 1470.05 0.00 0.00 3530.87

Municipality Own Funds 0.00 329.73 235.21 0.00 0.00 564.94

Total 0.00 4121.64 2940.10 0.00 0.00 7061.74

2a Sewerage - Phase I

Total Project Cost 3600.00 - - - - 3600.00


Total 3852.00 0.00 0.00 0.00 0.00 3852.00

Means of Finance

TNUIFSL Loan 1540.80 0.00 0.00 0.00 0.00 1540.80

Grant 1926.00 0.00 0.00 0.00 0.00 1926.00


Total 3852.00 0.00 0.00 0.00 0.00 3852.00

2b Sewerage - Phase II



Total 0.00 1717.35 1004.54 0.00 0.00 2721.89

Means of Finance

TNUIFSL Loan 0.00 601.07 351.59 0.00 0.00 952.66

Grant 0.00 858.68 502.27 0.00 0.00 1360.94


Total 0.00 1717.35 1004.54 0.00 0.00 2721.89

3a

SWD - Comprehensive

Drainage Master Plan

Total Project Cost - 3.00 - - - 3.00


Total 0.00 3.43 0.00 0.00 0.00 3.43

Means of Finance


Total 0.00 3.43 0.00 0.00 0.00 3.43

3b SWD - New Pucca Drains

Total Project Cost - - 1470.00 1060.00 995.00 3525.00


Total 0.00 0.00 1800.81 1389.44 1395.54 4585.80

Means of Finance

TNUIFSL Loan 0.00 0.00 720.33 555.78 558.22 1834.32

Grant 0.00 0.00 900.41 694.72 697.77 2292.90


Total 0.00 0.00 1800.81 1389.44 1395.54 4585.80


- 128 -


3C

SWD - Upgradation of

Existing Drains

Total Project Cost - - 50.00 100.00 - 150.00


Total 0.00 0.00 61.25 131.08 0.00 192.33

Means of Finance

TNUIFSL Loan 0.00 0.00 24.50 52.43 0.00 76.93

Grant 0.00 0.00 30.63 65.54 0.00 96.17


Total 0.00 0.00 61.25 131.08 0.00 192.33

4A

SWM - Integrated Solid

Waste Mgmt



Total 7.49 0.00 0.00 0.00 0.00 7.49

Means of Finance


Total 7.49 0.00 0.00 0.00 0.00 7.49

4B

SWM - Primary &

Secondary Collection

Total Project Cost 70.00 126.00 5.00 5.00 5.00 211.00


Total 74.90 144.26 6.13 6.55 7.01 238.85

Means of Finance

TNUIFSL Loan 29.96 57.70 2.45 2.62 2.81 95.54

Grant 37.45 72.13 3.06 3.28 3.51 119.42


Total 74.90 144.26 6.13 6.55 7.01 238.85

4C

SWM - Land cost for

Compost Yard



Total 0.00 1894.81 0.00 0.00 0.00 1894.81

Means of Finance


Total 0.00 1894.81 0.00 0.00 0.00 1894.81

4D

SWM - Land cost for

Regional Land fill site

Total Project Cost - - 1200.00 - - 1200.00


Total 0.00 0.00 1470.05 0.00 0.00 1470.05

Means of Finance


Total 0.00 0.00 1470.05 0.00 0.00 1470.05

4E

SWM - Land fill site &

compost yard devt

Total Project Cost - - 1050.00 700.00 - 1750.00


Total 0.00 0.00 1286.30 917.56 0.00 2203.85

Means of Finance

TNUIFSL Loan 0.00 0.00 514.52 367.02 0.00 881.54


- 129 -


Grant 0.00 0.00 643.15 458.78 0.00 1101.93


Total 0.00 0.00 1286.30 917.56 0.00 2203.85

5A Roads - Improvements

Total Project Cost - 565.00 795.00 680.00 349.00 2389.00


Total 0.00 646.87 973.91 891.34 489.49 3001.61

Means of Finance

TNUIFSL Loan 0.00 258.75 389.56 356.54 195.80 1200.64

Grant 0.00 323.43 486.95 445.67 244.75 1500.80


Total 0.00 646.87 973.91 891.34 489.49 3001.61

5B

Roads - Proposed New

Roads

Total Project Cost - - - 188.00 200.00 388.00


Total 0.00 0.00 0.00 246.43 280.51 526.94

Means of Finance

Grant 0.00 0.00 0.00 123.21 140.26 263.47


Total 0.00 0.00 0.00 246.43 280.51 526.94

6A Street Lights - New



Total 0.00 28.62 15.93 0.00 0.00 44.55

Means of Finance


Total 0.00 28.62 15.93 0.00 0.00 44.55

6B

Street Lights - Retrofitting

& Energy Saving

Total Project Cost 35.00 21.00 - - - 56.00


Total 37.45 24.04 0.00 0.00 0.00 61.49

Means of Finance

ESCO 37.45 24.04 0.00 0.00 0.00 61.49

Total 37.45 24.04 0.00 0.00 0.00 61.49

6C Solar Lights



Total 0.00 6.87 0.00 0.00 0.00 6.87

Means of Finance

Grant 0.00 3.43 0.00 0.00 0.00 3.43


Total 0.00 6.87 0.00 0.00 0.00 6.87

B

Social Infrastructure

Facilities

1 Slum Improvement

Total Project Cost - 850.00 765.00 735.00 - 2350.00


Total 0.00 973.17 937.16 963.44 0.00 2873.76

Means of Finance


- 130 -


Grant 0.00 973.17 937.16 963.44 0.00 2873.76

Total 0.00 973.17 937.16 963.44 0.00 2873.76

2 Education



Total 139.10 174.02 0.00 0.00 0.00 313.12

Means of Finance


Total 139.10 174.02 0.00 0.00 0.00 313.12

3 Parks & Playgrounds

Total Project Cost - 74.00 100.00 65.00 60.00 299.00


Total 0.00 84.72 122.50 85.20 84.15 376.58

Means of Finance

Grant 0.00 42.36 61.25 42.60 42.08 188.29


Total 0.00 84.72 122.50 85.20 84.15 376.58

4

Burial Ground -

Improvements



Total 0.00 11.45 17.15 0.00 0.00 28.60

Means of Finance

Grant 0.00 10.30 15.44 0.00 0.00 25.74


Total 0.00 11.45 17.15 0.00 0.00 28.60

5 Medicare



Total 192.60 5.72 6.13 6.55 7.01 218.02

Means of Finance

Grant 96.30 2.86 3.06 3.28 3.51 109.01


Total 192.60 5.72 6.13 6.55 7.01 218.02

6 Public Convenience

Total Project Cost 10.00 25.00 25.00 - - 60.00


Total 10.70 28.62 30.63 0.00 0.00 69.95

Means of Finance

Grant 8.56 22.90 24.50 0.00 0.00 55.96


Total 10.70 28.62 30.63 0.00 0.00 69.95

7A Market Construction



Total 53.50 177.46 0.00 0.00 0.00 230.96

Means of Finance

TNUIFSL Loan 48.15 159.71 0.00 0.00 0.00 207.86


Total 53.50 177.46 0.00 0.00 0.00 230.96

7B Parking Area


- 131 -


Development



Total 26.75 0.00 0.00 0.00 0.00 26.75

Means of Finance

BOLT 26.75 0.00 0.00 0.00 0.00 26.75

Total 26.75 0.00 0.00 0.00 0.00 26.75

C Other Projects

1a

Municipal Office Building

Improvement



Total 0.00 85.87 30.63 0.00 0.00 116.49

Means of Finance

TNUIFSL Loan 0.00 42.93 15.31 0.00 0.00 58.25


Total 0.00 85.87 30.63 0.00 0.00 116.49

1b Wind Mill



Total 0.00 228.98 0.00 0.00 0.00 228.98

Means of Finance


Total 0.00 228.98 0.00 0.00 0.00 228.98

2a E-Governance

Total Project Cost - 25.00 - - 34.00 59.00


Total 0.00 28.62 0.00 0.00 47.69 76.31

Means of Finance

Grant 0.00 25.76 0.00 0.00 42.92 68.68

Municiplaity Own Funds 0.00 2.86 0.00 0.00 4.77

Total 0.00 28.62 0.00 0.00 47.69 68.68

2b Property Mapping



Total 5.35 0.00 0.00 0.00 0.00 5.35

Means of Finance


Total 5.35 0.00 0.00 0.00 0.00 5.35

The consolidated �Means of Finance� for all the projects put-together is summarized

below :

Table 14-5: Consolidated Means of Finance

Multi Year Investment Plan

S.No. Particulars

2009-

10 2010-11 2011-12

2012-

13

2013-

14 Total

I Project Cost


Add : Price Inflation @ 287.84 1314.53 1966.20 1099.60 663.41 5331.58


- 132 -


7%

Total 4399.84 10386.53 10703.20 4637.60 2311.41 32438.58

II Means of Finance


(including Deposits from

Public)

Grant 2068.31 4395.84 5077.93 2800.52 1174.78 15517.37

TNUIFSL Loan 1618.91 2851.26 3253.10 1334.39 756.82 9814.48

BOOT / Private Sector 64.20 24.04 0.00 0.00 0.00 88.24

Total 4399.84 10386.53 10703.20 4637.60 2311.41 32438.58

14.4 FINANCIAL SUSTAINABILITY

The sustainability analysis assumes that the Municipality will carry out reforms

indicated as assumptions for financial projections. A Financial and Operating Plan

(FOP) prepared which evaluates the Municipality Fund status for the Full Project

scenario.

The FOP is a cash flow stream of the ULB based on the regular Municipality

revenues, expenditures and applicability of surplus funds to support project

sustainability. The FOP horizon is determined to assess the impact of full debt

servicing liability resulting from the borrowings to meet the identified interventions.

The proposed capital investments are phased over 5 years investment from FY 2009-

10 to FY 2013-14.

The full project investment scenario is based on all the proposed investments

identified for Madhavaram Municipality and the requirement for upgrading the

town�s infrastructure is estimated and phased based on the construction activity.

Implications of this investment in terms of external borrowings required, resultant

debt service commitment and additional operation and maintenance expenditure

are worked out to ascertain sub-project cash flows. Revenue surpluses of the existing

operations are applied to the sub-project cash flows emerging from full project

investments � the Municipality fund net surpluses indicates the ULB�s ability to sustain

full investments.

FY 2009-10 is taken as the base year and FY 2028-29 is assumed as the reference

year (20 years) to determine the net surpluses and whether the Municipality

maintains a debt / revenue surplus ratio as an indication of the ULB�s ability to

sustain investments.

14.5 BASIC ASSUMPTIONS FOR PROJECTIONS :

The FOP is based on a whole range of assumptions related to income and

expenditure. These are critical to ascertain the investment sustenance and would


- 133 -


also provide a tool to test certain specific policy decisions regarding revenue and

expenditure drivers on the overall Municipality fiscal situation. This section

elucidated the key assumptions adopted for the FOP scenario.

The growth rates for the various heads of income and expenditure have been

arrived based on the past growth rates and the future estimated population growth.

Improvements to the existing current and arrears collection percentages have been

assumed for the various revenues directly collected by the Municipality, which

implies that the Municipality would have to improve its collection mechanism to

sustain full investments.

Given below are the various assumptions forming part of the FOP workings :

14.5.1 Income

a) Property Tax

The population of Madhavaram Municipality is estimated to grow at around 2.5%

p.a. Based on the same Property Tax Revenue are assumed to increase @ 2% per

annum. The last revision of Property Tax was carried out on 1-10-98 and it is assumed

that the next revision will be carried out in the current year. It is assumed that there

will be an increase of 20% due to revision in 2008-09 & that revision would be done @

15% every 5 years.

It has also been established as per the Survey in 2002 that around 27% of the

properties are unassessed and further 20-25% of the properties are unassessed.

Considering the above, it is assumed that the same shall be set right and together

these shall contribute to increase in property tax revenue by 10% from next year viz.

2009-10 on account of property mapping.

The Property Tax income is divided between Revenue, Water Supply and Education

Fund in the following ratio:

Table 14-6: Ratio of Property tax

Per Annum

General 3.000% )

Scavanging 2.500% )

Revenue & Capital

Fund

Lighting 2.000% )

Water Tax 2.500% } Water Supply & Drainage Fund

Drainage - }

Education 2.500% ]

Education

Fund

Total 12.500%


- 134 -


b) Profession tax

Income from Profession Tax is assumed to increase @ 3% per annum. The Profession

Tax was last revised on 1.10.2003 and the next revision is due in 2008-09. It is assumed

that every revision would contribute to 15% increase

Besides, the profession tax base would be increased by carrying out survey in 2010-

11. It is assumed that the survey would increase the profession tax base by 20% in

2010-11.

c) Assigned revenue

Assigned Revenue comprises Entertainment Tax and Surcharge on Stamp Duty. It is

assumed the same shall increase as under :

Duty on Transfer of Property : 5%

Entertainment Tax : Nil

d) Devolution Fund

Devolution Fund is also assumed to increase by 7.5% per annum

e) Service charges and fees

Service Charges and Fees are assumed to increase @ 5% per annum

f) Grant and Contribution

No Grant has been assumed in the financial projections.

g) Sales and Hire charges

Nil income assumed from Sales & Hire Charges.

h) Other Income

Other Income comprising basically fees and other rental income are assumed to

increase @ 5% per annum.

i) Water Supply Charges

The present connection charges/deposit and tariff for water are as below :

Table 14-7: Water supply Charges � Existing

Type of service connections Connection Tariff

Residential Rs. 5000 Rs.75.00 Per month

Commercial Rs. 5000 Rs.75.00 per month

Industrial Rs. 5000 Rs.75.00 per month


- 135 -


It is assumed that after completion of water supply improvements work, the house

service connections will be equal to 80% of property tax assessments.

The water charges shall be revised as below :

Residential - Rs.100.00 p.m

Commercial � Rs.400.00 p.m

Industrial - Rs. 500.00 p.m.

It is also assumed that the water connection charges shall be revised as under :

Residential - Rs.8000

Commercial - Rs.10000

Industrial - Rs.15000

It is assumed that water charges shall be increased as below every 5 years :

Residential - Rs. 25.00 p.m

Commercial & industrial � Rs.50.00 p.m

It is assumed that water connection charges shall increase every 5 years as below :

Residential - Rs.1000

Commercial & industrial � Rs.2000

The house service connection as % of property tax assessments is as below:

Table 14-8: House Service Connections � Percentage

Year 2004-05 Property tax assessments

House service

connections %

Residential 10803 4200 39%

Commercial 1813 - 0%

Industrial & Govt. 157 - 0%

The improvements in water supply shall result in increase in operation &

maintenance by Rs.300 lakhs per annum and the same shall increase @ 5% per

annum

j) Drainage Charges

The Municipality does not have Under Ground Sewerage System. A new

underground sewerage system is proposed to be built at a cost of Rs. 5920 lakhs. The

implementation period is 3 years starting from 2010-11 to 2012-13. On completion of

the scheme, it is assumed that around 90% of the property tax assessments would

have sewerage connection. It is assumed that the scheme shall be completed as

below :


- 136 -


2010-11 Phase I � 100%

2011-12 Phase II � 60%

2012-13 Phase II � 60%

The Deposits and Charges shall be collected accordingly.

It is assumed that the sewerage charges will be collected as below :

Table 14-9: Sewage Charges

Assessments Deposits (in Rs) Tariff (in Rs)

Residential 6000 75

Commercial 15000 300

Industrial 15000 450

The new connection charges and tariff have been taken on average basis. It is

assumed that the drainage charges shall be increased every 5 years as below :

Residential - Rs.25/--

Commercial & industrial � Rs. 50/-

It is assumed that the connection charges shall be increased every 5 years as below

:

Residential - Rs.1000/-

Commercial � Rs.2000/-

Industrial - Rs.3000/-

The O&M charges shall be Rs.296 lakhs per annum and the same shall increase @ 5%

per annum.

k) Solid waste Management

It has been estimated that solid waste generation per day shall be around 50 MTs.

1/3rd out of the same shall comprise Bio-degradable waste and the manure

generation would be 1/3rd of the same. Thus the estimated saleable manure

generation per day would be 5.56 MTs. The same shall increase @ 5% per annum.

The revenue from solid waste disposal shall be Rs.1000.00 per MT. The same shall

increase by Rs.100.00 every 5 years. The number of assets covered by solid waste

management scheme shall be equal to 70% of property tax assessments. The

conservancy fees collected shall be as below to be collected after 10 years :

Domestic - Rs.25.00 per month

Commercial - Rs.40.00 per month

Industrial/Government - Rs.50.00 per month

The same shall increase as below every 5 years ;


- 137 -


Domestic - Rs.10.00/-

Commercial/ Industrial/Government - Rs.20.00/-

The cost of the scheme is Rs. 4823 lakhs and the O&M cost shall be equal to around

Rs. 98.05 lacs per annum. The same shall increase @ 5% per annum.

l) Truck Terminal

The Truck Terminal at Madhavaram Municipality has approximately around 200

parking lots. At present the entire revenue from the same goes to CMDA and the

Municipality does not received any income.

A surcharge of Rs. 2/- per truck per day is proposed to raise additional income to

the Municipality for the infrastructure facilities provided. The same shall increase @

15% every 3 years.

m) Remunerative Projects

A Market shall be constructed at a cost of Rs. 205 lacs.

The total number of shops and rental income shall be as below :

Particulars Nos. Rent per Month Deposit

Stalls 125 Rs. 3000/- Rs. 50000/-

Shops 75 Rs. 6000/- Rs.100000/-

The rent shall increase @ 15% every 3 years.

Besides, parking area shall be developed near the Market at a cost of Rs. 25 lacs.

The income from the same shall be as below :

Particulars Parking Nos. Rent per Annum

Four Wheelers 100 Rs. 5 lacs

Two Wheelers 200 Rs. 5 lacs

The annual O&M charges shall be equal to Rs. 6.90 lacs and the same shall increase

@ 5% per annum.

n) Slaughter House & Gasifier Crematorium

The income from Slaughter House shall be Rs. 4 lacs per annum. The expenses of

Slaughter House shall be Rs. 2 lacs per annum. Both shall increase @ 5% per annum.

The income from Burial Ground shall be Rs. 1.2 lacs per annum. The expenses of

Burial Ground shall be Rs. 0.72 lacs per annum. Both shall increase @ 5% per annum.


- 138 -


o) Wind Mill

The annum income from Wind Mill is estimated at Rs. 5 lacs per annum and the

same shall increase by 15% every 3 years.

The annual operation & maintenance charges shall be equal to Rs. 2.50 lacs and

the same shall increase @ 5% per annum.

p) Advertisements

Bill Boards would be put at 50 places through out the Municipality. Rent shall be

earned @ Rs.500.00 per Bill board per month. The rent shall increase @ Rs. 100/-

every 3 years.

Besides, advertisement at Parks shall fetch revenue of Rs. 5 lacs per annum and the

same shall increase @ 15% every 3 years.

q) Parking Fees

Parking Lots would be developed and income from parking is estimated at Rs.5.00

lakhs per annum. The same would increase @ 3% per annum.

14.5.2 Expenditure

a) Increase in Expenditure

The expenses are assumed to increase as under :

Table 14-10: Assumptions - Increase in Expenditure

Personnel Cost � Salaries 5.00%

Personnel Cost � Others 5.00%

Terminal & Retirement Benefits 5.00%

Operative Expenses 7.50%

Repairs & Maintenance 5.00%

Program Expenses 2.50%

Administrative Expenses 5.00%

b) Operation and Maintenance

The additional operation & maintenance expenses to be incurred are as below:

Table 14-11: Assumptions � O&M

Ongoing Projects Rs. in lakhs

Roads 0.50

Strom Water Drains 3.05

New Projects (other than Sewerage & Water supply) Rs. in lakhs

Strom Water Drains 176.25

Solid Waste Management 98.05


- 139 -


Roads 19.40

Street Lights 5.00

Slum Development 28.20

Education - School 8.46

Maternity Center 6.00

Improvement to Parks 8.97

Market 6.90

Public Convenience 1.80

Burial Ground 0.72

Municipal Office Building 3.00

E-Governance & Property Mapping 1.92

Wind Mill 2.50

Total 370.72

The same shall increase @ 5% per annum.

c) Power charges

There will be a savings of around 40% in power charges due to installation of energy

saving lights. As the same will be installed by private players, the savings in power

charges have been factored in the financial projections after 15 years. It is assumed

that the savings in power charges would be utilised towards returns of the private

player towards capital cost and interest.

d) Interest

Interest on loan have been provided based on the sanction rate for each loan.

Repayment of loans are based on the repayment schedule of each loan.

Sewerage & Water Supply Loan

It is assumed that all new loan shall carry interest rate of 9.5% per annum.

The loan from TNUIFSL shall be repaid over a period of 20 years with 5 years

moratorium.

Other Projects Loan

It is assumed that all new loan shall carry interest rate of 9.5% per annum.

The loan from TNUIFSL shall be repaid over a period of 10 years with 2 years

moratorium.

e) Depreciation

Depreciation is provided based on the rates adopted by the Municipality for

previous years.

f) Provision of doubtful debts

Doubtful debts have been provided as under :


- 140 -


Table 14-12: Assumptions � Provision of doubtful debts

Provision for Doubtful Debts is assumed @ 2% on total revenue for Revenue Fund

Provision for Doubtful Debts is assumed @ 1% on total revenue for Water Fund

Provision for Doubtful Debts is assumed @ 0%

on total revenue for Education

Fund

14.5.3 Collections

a) Property tax

Table 14-13: Assumptions � Property tax collection

The current property tax collection is 72% The same shall improve to 95%

over the next 5 years.

The arrears property tax collection is 55% The same shall improve to 70%


b) Profession tax

Table 14-14: Assumptions � Profession tax

The current profession tax collection is 92% The same shall improve to 97%


The arrears profession tax collection is 22% The same shall improve to 60%


c) Other Non Tax Income

Table 14-15: Assumptions � Other Non Tax Income

The current rental / lease collection is 90% The same shall be 97%


The arrears collection % of rent /

lease is over the next 5 years. 9% The same shall improve to 50%

d) Water Charges

Table 14-16: Assumptions � Water Charges

The current water charges collection is Nil The same shall improve to 80%


The arrears water charges collection is

over the next 5 years. Nil The same shall improve to 60%


- 141 -


e) Drainage Charges

Table 14-17: Assumptions � Drainage Charges

The current drainage collection is Nil The same shall be 80%


The arrears drainage collection is Nil The same shall be 60%


f) Other income

The collection % of all other income is taken at 100%

g) Others

The collection % of all other items of income is taken at 100%

14.6 ANNUITY FACTOR

The Annuity Factor for the new loans works out as under :

Table 14-18: Terms of Loan Funding for Proposed Investments

Tenor 20 years 10 years

Interest Rate 9.50% 9.50

Repayment Period 15 years 8 years

Moratorium 5 years 2 years

Repayment Factor 0.13 0.18

Conversion Factor Calculation

a. Rate of Interest 9.5% 9.5%

b. Repayment Period 15 8

c. Loan Amount 17.00 14.00

Conversion Factor 2.17 2.58

Total Conversion Factor 4.75

Note : Water Supply & Sewerage Loan works out to 17% of total project cost

identified. Other Loans works out to 14% of total project cost identified.

14.7 PROJECT CASH FLOWS AND FOP RESULTS :

Detailed cash flows are worked out for each of the sub projects based on the

assumptions with regards investment phasing, financing pattern, additional

operation and maintenance expenditure and additional income out to proposed

capital investments for the full project scenario. The net project cash flows are then

loaded on the existing revenues to test their impact on the overall Municipality fiscal

situation.


- 142 -


a) Income and Expenditure projections

Table 14.19 captures the Income and Expenditure projections for the next 20 years

with potential improvements and borrowings :


- 143 - Voyants Solutions Private Limited

Table 14-19: Consolidated Income & Expenditure for next 20 years (up to FY 2028-29)

S.No Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

I Income

a) Property Tax 220.42 242.46 247.31 252.26 290.09 295.90 301.81 307.85 314.01 361.11 368.33

b) Other Taxes 23.53 28.24 29.09 29.96 34.46 35.49 36.55 37.65 38.78 44.60 45.93

c) Assigned Revenue 173.64 182.33 191.44 201.01 211.07 221.62 232.70 244.33 256.55 269.38 282.85

d) Devolution Fund 245.06 263.43 283.19 304.43 327.26 351.81 378.19 406.56 437.05 469.83 505.07

e) Service Charges & Fees 75.28 77.64 209.71 214.85 430.57 522.11 533.85 601.41 614.86 686.42 701.72

f) Grants & Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

g) Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

h) Other Income 47.61 51.39 53.89 160.51 177.68 209.29 229.30 235.51 240.36 263.37 311.41

Total Income 785.54 845.48 1014.63 1163.03 1471.12 1636.22 1712.41 1833.32 1901.60 2094.71 2215.30

II Expenditure

a) Personnel Salaries Cost 169.40 177.87 178.81 187.75 197.14 206.99 217.34 228.21 239.62 251.60 264.18

b) Personnel Cost - Others 1.33 1.40 1.47 1.54 1.62 1.70 1.78 1.87 1.97 2.07 2.17

b) Terminal & Ret Benefits 38.17 40.08 42.08 44.18 46.39 48.71 51.15 53.70 56.39 59.21 62.17

c) Operating Expenses 222.52 328.07 616.00 736.54 1259.14 1329.41 1403.74 1482.38 1565.58 1653.62 1746.80

d) Repairs & Maintenance 30.92 32.46 34.08 35.79 37.58 39.46 41.43 43.50 45.68 47.96 50.36

e) Program Expenses 0.50 0.51 0.52 0.53 0.55 0.56 0.57 0.59 0.60 0.62 0.63

f) Administration Expenses 17.86 18.75 19.69 20.67 21.71 22.79 23.93 25.13 26.38 27.70 29.09

g) Finance Expenses 212.15 477.74 782.03 901.37 953.75 910.12 840.84 758.23 673.32 590.09 506.69

h) Depreciation 137.29 199.32 512.90 1136.25 1760.64 2071.18 1941.73 1597.46 1344.41 1153.96 1007.37

Total Expenditure 830.12 1276.18 2187.58 3064.62 4278.51 4630.92 4522.52 4191.06 3953.95 3786.83 3669.45

Surplus / (Deficit) (44.58) (430.70) (1172.96) (1901.60) (2807.39) (2994.70) (2810.11) (2357.75) (2052.34) (1692.12) (1454.15)

Profit before Depreciation 92.71 -231.38 -660.06 -765.35 -1046.75 -923.53 -868.38 -760.29 -707.93 -538.16 -446.78



S.No Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31

I Income

a) Property Tax 375.70 383.21 390.88 449.51 458.50 467.67 477.02 486.56 559.55 570.74 582.15

b) Other Taxes 47.31 48.73 50.19 57.72 59.46 61.24 63.08 64.97 74.71 76.95 79.26

c) Assigned Revenue 296.99 311.84 327.43 343.80 360.99 379.04 397.99 417.89 438.79 460.73 483.76

d) Devolution Fund 542.95 583.67 627.44 674.50 725.09 779.47 837.93 900.78 968.33 1040.96 1119.03

e) Service Charges & Fees 717.39 794.78 812.49 894.43 914.32 934.70 1023.30 1046.08 1139.85 1165.20 1191.19

f) Grants & Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

g) Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

h) Other Income 317.88 345.27 354.25 361.64 416.50 427.24 436.26 472.97 485.14 521.82 564.59

Total Income 2298.22 2467.51 2562.69 2781.61 2934.85 3049.37 3235.58 3389.24 3666.38 3836.40 4019.99

II Expenditure

a) Personnel Salaries Cost 277.39 291.26 305.82 321.11 337.17 354.03 371.73 390.32 409.83 430.32 451.84

b) Personnel Cost - Others 2.28 2.39 2.51 2.64 2.77 2.91 3.05 3.20 3.36 3.53 3.71

b) Terminal & Ret Benefits 65.28 68.54 71.97 75.57 79.35 83.31 87.48 91.85 96.45 101.27 106.33

c) Operating Expenses 1845.42 1949.82 2060.35 2177.38 2235.04 2361.33 2495.03 2636.58 2786.47 2945.21 3113.35

d) Repairs & Maintenance 52.88 55.52 58.30 61.21 64.27 67.49 70.86 74.40 78.12 82.03 86.13

e) Program Expenses 0.65 0.67 0.68 0.70 0.72 0.74 0.75 0.77 0.79 0.81 0.83

f) Administration Expenses 30.54 32.07 33.67 35.36 37.12 38.98 40.93 42.98 45.13 47.38 49.75

g) Finance Expenses 426.08 359.58 310.02 274.41 242.92 210.65 179.16 147.68 117.60 91.33 77.60

h) Depreciation 892.15 799.86 724.63 662.35 610.05 565.55 527.23 493.88 464.55 438.52 415.21

Total Expenditure 3592.67 3559.70 3567.95 3610.73 3609.39 3684.98 3776.22 3881.67 4002.31 4140.41 4304.75

Surplus / (Deficit) (1294.45) (1092.20) (1005.26) (829.12) (674.54) (635.61) (540.64) (492.42) (335.93) (304.00) (284.77)

Profit before

Depreciation -402.30 -292.34 -280.63 -166.77 -64.50 -70.06 -13.40 1.46 128.63 134.52 130.45

It may be observed from the above table that the Municipality has deficit prior to depreciation in 17 out of the future 20

years and the cumulative cash flows are also negative for all the next 20 years.



b) Balance Sheet

Table 14-20: Consolidated Balance Sheet for next 20 years (up to FY 2028 � 29)

S.No Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

I Liabilities

a) Liabilities

Loans 421.79 1980.45 4771.45 7954.53 9154.01 9567.59 8954.83 8091.99 7183.65 6275.30 5366.96

Contn from Municipal

Fund 648.42 3763.81 6135.98 6638.67 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48

Contribution from

Government 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37

Grant 2367.08 6762.92 11840.85 14641.36 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14

Accumulated

Depreciation 2605.37 2804.68 3317.58 4453.83 6214.47 8285.64 10227.38 11824.84 13169.25 14323.21 15330.58

b) Current Liabilities

Tender Deposits 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50

Deposits Others 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Deposit - IPPV Account 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Deposit on Water Conn 10.88 14.63 38.36 65.75 311.64 363.87 389.67 415.99 442.84 474.00 505.78

Deposit on Sewerage 0.00 82.40 72.63 57.88 198.97 345.35 368.13 395.03 422.47 450.46 479.00

Library Cess Payable 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38

Accounts Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Advance colln of

Property Tax 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40

Other paybles 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Outstandings 12.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00

Rec from staff bills

payable 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50

Prov for Doubtful

collection 78.34 93.34 110.40 130.36 154.12 180.24 207.76 237.00 267.47 300.81 336.40

Inter Funds Transfer 815.83 815.83 815.83 815.83 815.83 815.83 815.83 815.83 815.83 815.83 815.83

c) Accumulated Surplus 1390.59 959.89 -213.07 -2114.67 -4922.06 -7916.76 -10726.87 -13084.62 -15136.96 -16829.08 -18283.23

Total 8890.45 17831.11 27444.16 33198.71 35317.76 35033.55 33629.51 32089.84 30559.31 29206.30 27948.09



S.No Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31

I Liabilities

a) Liabilities

Loans 4468.37 3634.68 3009.32 2550.76 2186.80 1822.84 1458.88 1094.92 730.96 367.00 105.76

Contn from Municipal

Fund 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48 7018.48

Contribution from

Government 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37 380.37

Grant 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14 15816.14

Accumulated

Depreciation 16222.73 17022.59 17747.22 18409.57 19019.62 19585.16 20112.39 20606.28 21070.83 21509.35 21924.57


Tender Deposits 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50 81.50

Deposits Others 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Deposit - IPPV Account 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Deposit on Water

Connections 538.20 571.26 604.99 643.56 682.91 723.04 763.97 805.72 852.91 901.04 950.14

Deposit on Sewerage 508.12 541.87 576.30 611.41 647.23 683.76 725.49 768.06 811.48 855.77 900.95

Library Cess Payable 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38 41.38

Accounts Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Adv collection of

Property Tax 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.40

Other paybles 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Outstandings 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 32.00 33.00

Rec from staff bills

payable 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50

Prov for Doubtful

collection 373.47 413.14 454.51 499.12 546.57 596.09 648.42 703.58 762.94 825.42 891.28


c) Accumulated Surplus

-

19577.68

-

20669.88

-

21675.15

-

22504.27

-

23178.81

-

23814.42

-

24355.05

-

24847.48

-

25183.40

-

25487.41

-

25772.17

Total 26746.82 25728.26 24932.80 24426.76 24121.92 23815.07 23573.71 23351.68 23267.32 23193.78 23224.13



S.No Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

II Assets

a) Fixed Assets 3859.91 8259.75 18646.28 29349.48 33987.08 36298.49 36298.49 36298.49 36298.49 36298.49 36298.49

b) Current Assets

Stock 3.50 4.50 5.50 6.50 7.50 8.50 9.50 10.50 11.50 12.50 13.50

Property Tax Rec - Current 28.65 21.82 12.37 12.61 14.50 14.79 15.09 15.39 15.70 18.06 18.42

Property Tax Rec - Arrears 68.41 49.18 36.58 23.34 19.61 20.39 20.91 21.36 21.80 22.24 24.73

Profession Tax Rec - Current 0.71 0.85 0.87 0.90 1.03 1.06 1.10 1.13 1.16 1.34 1.38

Profession Tax Rec - Arrears 5.18 3.30 2.17 1.74 1.59 1.67 1.73 1.79 1.85 1.90 2.10

Rental Income - Current 0.00 0.04 0.04 3.01 3.02 3.02 3.46 3.47 3.47 3.98 3.99

Rental Income - Arrears 0.00 0.00 0.04 0.06 3.04 4.54 5.29 6.11 6.53 6.73 7.35

Water Charges - Current 8.33 8.46 8.60 8.74 50.96 54.57 55.66 56.77 57.91 70.62 72.03

Water Charges - Arrears 11.42 12.89 13.62 14.04 14.35 56.70 77.25 86.56 91.39 94.46 108.41

Sewerage Charges -

Current 0.00 0.00 25.92 26.44 26.97 41.27 42.09 54.04 55.12 56.22 57.35

Sewerage Charges - Arrears 0.00 0.00 0.00 25.92 36.81 41.70 57.94 65.27 80.15 87.18 91.09

Licence fees Rec - Arrears 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Specific Grant Receivable 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76

Deposits Recoverable 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

Staff Advance Recoverable 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00

Adv to Suppliers & Conts 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Other Adv � Recoverable 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00

Advance to TWAD Board 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50

Funds Transfer 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12

Int due on Investments & FD 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30


Others 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50

c) Cash & Bank Balances 3835.30 8401.28 7623.13 2656.87 82.23 -2582.19 -4028.05 -5600.08 -7154.79 -8536.47 -9819.78

Total 8890.45 17831.11 27444.16 33198.71 35317.76 35033.55 33629.51 32089.84 30559.31 29206.30 27948.09



S.No Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31

II Assets

a) Fixed Assets 36298.49 36298.49 36298.49 36298.49 36298.49 36298.49 36298.49 36298.49 36298.49 36298.49 36298.49

b) Current Assets

Stock 14.50 15.50 16.50 17.50 18.50 19.50 20.50 21.50 22.50 23.50 24.50

Property Tax Rec - Current 18.78 19.16 19.54 22.48 22.92 23.38 23.85 24.33 27.98 28.54 29.11

Property Tax Rec - Arrears 25.83 26.54 27.12 27.68 30.78 32.16 33.03 33.76 34.46 38.31 40.03

Profession Tax Rec - Current 1.42 1.46 1.51 1.73 1.78 1.84 1.89 1.95 2.24 2.31 2.38

Profession Tax Rec - Arrears 2.22 2.31 2.38 2.46 2.72 2.87 2.99 3.09 3.18 3.51 3.71

Rental Income - Current 3.99 4.58 4.59 4.59 5.27 5.28 5.28 6.06 6.07 6.07 6.97

Rental Income - Arrears 7.67 7.83 8.49 8.84 9.01 9.77 10.17 10.36 11.24 11.69 11.92

Water Charges - Current 73.47 74.94 76.44 90.73 92.54 94.39 96.28 98.21 114.26 116.54 118.87

Water Charges - Arrears 115.39 119.63 122.79 125.56 140.95 148.92 153.96 157.87 161.35 178.80 188.06

Sewerage Charges - Current 58.49 71.93 73.37 74.83 76.33 77.86 92.95 94.81 96.71 98.64 100.61

Sewerage Charges - Arrears 93.79 96.01 110.33 117.50 121.83 125.06 127.88 144.10 152.45 157.69 161.72

Licence fees Rec - Arrears 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Specific Grant Receivable 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76

Deposits Recoverable 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

Staff Advance Recoverable 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00

Adv to Suppliers & Conts 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Other Advances � Rec 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00

Advance to TWAD Board 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50 186.50

Funds Transfer 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12 677.12

Int due on Investments & FD 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30


Others 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50

c) Cash & Bank Balances

-

11036.27

-

12079.14

-

12897.80

-

13434.66

-

13768.24

-

14093.49

-

14362.60

-

14611.87

-

14732.64

-

14839.35

-

14831.27

Total 26746.82 25728.26 24932.80 24426.76 24121.92 23815.07 23573.71 23351.68 23267.32 23193.78 23224.13

The full projects investment scenario indicates that Madhavaram Municipality would end up with a positive cumulative

cash deficit of only Rs. 14830 lacs by the end of FY 2028-29 (after 20 years)


- 149 -


14.8 IMPACT OF POTENTIAL IMPROVEMENTS

Madhavaram�s ability to improve on its financial performance hinges primarily on its

ability to sustain and improve on the revenue growth noticeable in recent years.

Specific interventions with respect to revenue realization and cost management are

detailed in Section � of the report. On �Full Project Investment Scenario� basis,

Madhavaram�s own revenues (comprising taxes, user charges and other income)

could grow from Rs. 385 lacs in FY 2006-07 to Rs. 1812 lacs by FY 2028-29, implying an

absolute growth of 19%. Madhavaram has vast potential for increasing its own

income given the growth achieved in the last few years. Areas for revenue

enhancement in own revenue include :

Property Tax � through an enhanced revision in ARV, widening assessee base

and closer scrutiny. Besides periodic increase (every 5 years) in property tax

rates.

Professional Tax � sustaining a higher assessment growth.

User Charges � periodic increases in user charges for water connections and

sewerage connections. The Municipality could generate additional Rs. 700 lacs

of income per annum by FY 2028-29 by providing water connections to 80% of

property tax assessments and sewerage connections to 70% of property tax

assessments.

Madhavaram also needs to explore scope for private sector participation for

development of remunerative projects and city beautification projects that have

been identified by Madhavaram.

While there is potential for expenditure control in certain areas (as in the case of

energy costs and leakage in water supply), the focus of cost management should

be to shift expenditure from administration to better asset management and service

levels. We have not factored in any cost reduction in the FOP and have assumed

that any savings generated from cost reduction would go into augmenting service

levels and better asset management.

A comprehensive energy audit is required, given that 70% of its operations and

maintenance expenditure is spent on electricity charges. Plugging leakage in the

water supply network and installation of timers and energy savers on the street light

network are important interventions needed in the context of Madhavaram�s high

power costs.


- 150 -


14.9 SCENARIO I - ESTIMATION OF INVESTMENT CAPACITY ON AS IS WHERE BASIS

We carried out the exercise of arriving at the Investment and Borrowing Capacity

on as is where basis without any financial reforms being carried out and no new

projects taken in to consideration. The borrowing capacity has been arrived by

taking the NPV over the next 20 years on the minimum of the following:

30% of revenue projections

Primary Operating Surplus (Surplus before Interest & Depreciation)

The investment capacity has been arrived @ of 4 times the borrowing capacity

assuming that loans constitute 25% of total investment requirement.

In such a scenario, the Investment and Borrowing Capacity works out as below :


Borrowing Capacity Rs. 2480.20 lacs

Investment Capacity (BC x 4 times) Rs. 9920.80 lacs

14.10 SCENARIO II - ESTIMATION OF BORROWING AND INVESTMENT CAPACITY WITH

PROJECTS

In Scenario II, the financial projections have been worked out for the next 30 years,

by taking in to consideration all the projects identified in CCP. Future income and

expenditure of these individual projects have been worked out and then

consolidated to arrive at the Municipality�s cash flows for the next 30 years. The

financial projections for the next 20 years have been taken to arrive at the

Borrowing and Investment capacity. We have arrived at the borrowing capacity of

Madhavaram Municipality on the minimum of the following :

30% of revenue projections

50% of Primary Operating Surplus less Debt Service

The overall financing mix has been arrived to include 31% Loans, 47% Grants and

22% own funds. The repayment period of loans has been taken at 5+15 years for

Sewerage and Water Supply Loans and 2+8 years for other project loans. The above

factors have been taken in to account for arriving at the Annuity Factor, which has

been applied on the lowest of the above to arrive at the overall borrowing

capacity and investment capacity.


Borrowing Capacity -

Investment Capacity (BC/0.31) -


- 151 -


Investment Requirement Rs. 27107 lacs

Sustainable Investment Capacity % - IC / IR -

At an aggregate level, assuming loans to be equivalent to 31% of investment,

sustainable investment capacity works out to Nil.

14.11 KEY INDICATORS OF SCENARIO II

The key Indictors of the Municipality based on the financial projections works out as

below :

Table 14-21: Key Indicators

Minimum Maximum Average

Existing (2001-02 to 2006-07)

Operating Ratio 0.49 0.72 0.56

Debt Service Ratio 6% 25% 15%

Category 1

Short Term (2009-10 to 2013-14)



Category 3

Long Term (2009-10 to 2028-29)



Category 3

Note : 1 � Financially Sound; 2 � Financially Fragile; 3 � Financially Insolvent

It may be observed that the Municipality financials are poor in the long run with

Operating Ratio > 1 at 1.25 and Debt Service Ratio > 30% at 45%, due to higher

borrowings considered in our projections.

14.12 INFERENCE

The investment capacity of Madhavaram Municipality on �As is Where Basis�

works out to Rs. 9921 lacs.

The investment capacity of Madhavaram Municipality works to Nil in case of

Scenario II with all projects identified in CCP taken in to consideration.

The same is on account of high capital cost and operation & maintenance on

major projects like water supply, underground sewerage, solid waste

management, strom water drains etc. The higher capital cost results in higher

borrowings and annuity, causing deficit in cash flows.


- 152 -


Both water supply and sewerage are showing cumulative cash deficit of around

Rs. 9000 lacs by end of 20 years on account of high operation & maintenance

expenses and annuity.

Based on the above, the Municipality would be in a position to undertake only

one major project and all smaller projects and fully subsidized projects identified

in the priority list of CCP as given below :

S.No. Particulars Total Priority Funding By

A Physical Infrastructure Facilities L : G : M

I Water Supply

a) Improvements to Water Supply 6000.00 A 42:50:8

VI Street Lights

a) Proposed new lights 38.00 A 100% ULB

b) Retrofitting & energy saving devices 56.00 A ESCO

c) Solar Lights 6.00 A 0:50:50

B Social Infrastructure Facilities

I Slum Improvement

a) Improvements to Slums 2350.00 A&B 100% Grant

II Education

a) Improvements to Schools 282.00 A&B 100% ULB


a)

Improvement of parks, construction of

compound wall 299.00 B&C 0:50:50

for play ground & play equipments

IV Burial Ground / Crematorium

a) Improvements to Burial Ground 24.00 B 0:90:10

V Medicare

a) Improvement to maternity centre 200.00 A 0:50:50


a) Public Convenience 60.00 B 0:80:20

VII Market

a) Market Construction 205.00 A 90:0:10

b) Parking Area Development 25.00 A BOLT

C Other Projects

I Other Projects

a) Municipal Office Building Improvement 100.00 B 0:50:50

b) Wind Mill 200.00 B 100% ULB

II E-Governance

a)

E-Governance & System Improvement in GIS

Platform 59.00 B 0:90:10

b) Property Mapping 5.00 B 100% ULB

Total 9909.00


- 153 -


As regards other major projects like underground sewerage, storm water drains,

solid waste management and roads, more support would be required from the

Government towards major portion of capital cost.

Besides, the Municipality at present derives major source of income from

Assigned Revenue. The Municipality earns around Rs. 350 lacs per annum from

Assigned Revenue. Our financial projections are made on conservative basis by

considering only 50% of existing Assigned Revenue income for future years. But,

incase the Municipality continues to derive Assigned Revenue at the present

levels, more projects can be taken up.

Annexure Final Report: Madhavaram Municipality

- 154 -


AAAnnnnnneeexxxuuurrreee

Annexure I - a : Minutes of Meeting: Stakeholders� Workshop - Madhavaram

Date of Workshop : January 21, 2008

Time (Opening) : 04:00 PM

Time (Closing) : 06:30 PM

Sl.NO PERSON NAME DESIGNATION CONTACT NO

01 Mrs.Vijayalaksmi Municipal Commissioner 9442330521

02 Mr.Jayaseelan Municipal Engineer 9445030606

03 Thiru. D. Shanmugam Chairman 044-2556834

04 Mr. S. Sudharsanam Vice � chairman 9382708340

04 Mr. Kumar Town Planning Inspector

05 S. Manoharan Councilor

06 P. Lalitha Councilor

07 E. Chandrasekaran Councilor

08 L. Radhika Councilor

09 G. Thukkaram Councilor

10 V. Deivayanai Councilor

11 J. Geetha Councilor

12 D. Dhakshinamoorthy Councilor

13 M. Ramani Councilor

14 S. Sudharsanam Councilor

15 D. Munusamy Councilor

16 T. Ramakrishnan Councilor

17 K. Kavitha Councilor

18 B. Loganathan Councilor

19 M. Karpagam Councilor

20 P. Raman Councilor

21 C.K. Gopal Councilor

22 J. Saral Paulraj Councilor

23 V. Vinayagi Councilor

24 A. Sujatha Councilor

25 E. Santhi Councilor

26 R. Poovaraghavan Councilor

27 S. Thirunavukkarasu Councilor

28 G. Duraisamy Councilor

29 D. Shanmugam Councilor

30 L.G. Selvam Councilor

31 M. Vairavan Councilor


- 155 -



32 P. Sankar Councilor

33 T. Velayudham Councilor

34 S. Udayakumar Councilor

The stakeholders� workshop started at 04:00 PM on Monday, January 21, 2008 in the

Conference Hall of the Municipality. The workshop was chaired by Chairman � Thiru.

D. Shanmugam. In his opening speech, Thiru. D. Shanmugam briefed the

stakeholders about the objectives of the project and the workshop. The

Commissioner Incharge of The Municipality Mrs.Vijayalaksmi presented his view on

the City Corporate cum Business Plan. Vice � Chairman Mr. S. Sudharsanam

presented the Works under taken by the municipality in the recent year. After that

Municipal Engineer Mr. Ashok Kumar presented the status of the projects and the

proposed project by the municipality. Mr. Sanjeet Ahlawat (Manager, Voyants

Solutions Private Limited) briefed about the work completed by the consultant for

the City Corporate cum Business Plan. After that Mr. P. M. Saravanan & Mr.

Sathiyaraj presented the brief status, problem and issues relating to urban basic

services an infrastructure in Madhavaram. And after this presentation, the

stakeholders were asked to give their suggestions/ comments in three parts. In first

part, the consultants invited comments on the contents of the presentation. In the

second part stakeholders were invited to present the problems of the city which are

hindrances to the development. In the last section of the workshop, stakeholders

were asked to suggest the projects required for the integrated development of

Madhavaram.

The Suggestions:

The suggestions given by the various stakeholders are presented below:

Thiru. D. Shanmugam, Chairman

Need town growth Improvement

Town roads are encroached by the people so they should be fined and need

widenening for congestion free traffic.

The existing parks need improvements.

There is need to upgrade the basic infrastructure of the municipality in terms of

water supply, sewerage and drainage.

Mr. S. Sudharsanam, Vice Chairman

There is a need to develop infrastructure in the town as the existing infrastructure

is old enough to lay new infrastructure then to repair the existing

Town improving arrangements

To Improve community hall

Proper infrastructure should be provided for schools


- 156 -


Mrs.Vijayalaksmi, Commissioner Incharge

City needs delimitation of boundaries and need to merge the existing villages

and there is a need to prepare a master plan for the upcoming notified areas after

that to regularize the development

There is a need to replace the old infrastructure of the town.

Mr.Ashok Kumar, Municipal Engineer

Town need delimitation as there is no scope of development in the existing

municipal limits

Source of water supply are insufficient and there is a proposed scheme for water

supply from metro water


widening for congestion free traffic.

There is a need to develop the bus stand.

New parks and play grounds need to be developed.

Drainage services need to improve to make good use of Rain Water Harvesting.

Required CFE light to reduce the power consumption.

Mrs. V. Deivayanai Councillor, Ward No - 6

Required cement concrete road

Renovation of existing drainage at back of the government school

Improvement is required in all parks

Required desilting of open drains

Mrs. M. Ramani Councillor, Ward No �9

Toilet in bus stand is in poor condition

No seating arrangement in bus stand

Required bus bay and shelter in bus stand

Need water supply regularly

Mr. T. Ramakrishnan Councillor, Ward No - 12

Public toilet buildings need renovation

Required cement concrete road for all roads

Need Under ground drainage system

Need proper facilities to drain rain water

Mr. B. Loganathan Councillor, Ward No - 14

Need building and other facilities for municipal schools

Required regular water supply through house connection

Under ground sewage system

Mr. J. Saral Paulraj Councillor, Ward No - 18

Required drainage renovation

Street light poles are damaged


Mrs. E. Santhi Councillor, Ward No - 21

Public toilets are required at some places

All the tube lights should be changed to sodium vapour light


- 157 -


No light and water supply arrangement in burial ground

Improvement in basic needs and infrastructure is required in bus stand

Required proper drainage for rain water

Mr. L.G. Selvam Councillor, Ward No � 26

Under ground drainage system is required

Pumping station is required at reserved area in teachers colony

Road improvement is required in all the wards

Required higher secondary and elementary school

Required noon-meals center

More street light facilities are required

Mr. M. Vairavan Councillor, Ward No - 27

Required under ground drainage

Required treated water from metro

Required storm water drainage system for all wards

Road widening is required

No road, burial shed and compound wall for burial ground in this ward

These are some of the suggestions provided by the key person of the municipality,

the major focus was to develop infrastructure in the town and it should be done is a

systematic way. The basic infrastructure should be provided to every people and

the nominal charges should be applied on the available so that the people can

pay it. After the discussion Chairman and municipal engineer thanked all the

councilors and key people who attend the discussion. The consultant distributed the

formats to each of the person present in the meeting to take individuals view and

priority of infrastructure development and to note down the suggestion and briefed

the survey format and after the stakeholders finished the filling of survey formats Mr.

Sathiyaraj thanked all the people attended the Stakeholders� Workshop

Annexure I - b: Minutes of Meeting: Stakeholders� Workshop - Madhavaram

Date of Workshop : November 20, 2008

Time (Opening) : 11:00 AM

Time (Closing) : 01:30 PM


01 Mrs.Vijayalaksmi Municipal Commissioner 9442330521

02 Mr.Jayaseelan Municipal Engineer 9445030606

03 Thiru. D. Shanmugam Chairman 044-2556834

04 Mr. S. Sudharsanam Vice � chairman 9382708340

05 Mr. Kumar Town Planning Inspector

06 S. Manoharan Councilor 9382811045

07 P. Lalitha Councilor 9940065329

08 E. Chandrasekaran Councilor


- 158 -



09 V. Deivayanai Councilor 9841912197

10 G. Thukkaram Councilor

11 J. Geetha Councilor 9940326282

12 D. Dhakshinamoorthy Councilor

13 D. Munusamy Councilor

14 T. Ramakrishnan Councilor

15 B. Loganathan Councilor

16 P. Raman Councilor 9840235538

17 C.K. Gopal Councilor

18 S. Ponraj President, Association

of Teachers colony 9444411198

18 Sp. Subananthan Treasurer, Association

of Teachers colony

19 A. Sujatha Councilor 9444120390

20 E. Santhi Councilor 9940363319

21 P. Gurumoorthy Civic Association

22 P. Ramaswamy Civic Association

23 G. Duraisamy Councilor

24 L.G. Selvam Councilor

25 M. Vairavan Councilor 25531414

26 P. Sankar Councilor 9841625253

27 T. Velayudham Councilor

28 S. Udayakumar Councilor

The stakeholders� workshop started at 11:00 AM on Thursday, November 20, 2008 in

the Conference Hall of the Municipality. The workshop was chaired by Chairman �

Thiru. D. Shanmugam. In his opening speech, Thiru. D. Shanmugam briefed the

stakeholders about the objectives of the project and the workshop. The Municipal

Engineer Mr. Jayseilan presented his view on the City Corporate cum Business Plan.

Vice � Chairman Mr. S. Sudharsanam presented the Works under taken by the

municipality in the recent year. Miss. G Gajalakshmi (Assist. Manager, Voyants

Solutions Private Limited) briefed about the work completed by the consultant for

the City Corporate cum Business Plan and the brief status, problem and issues

relating to urban basic services an infrastructure in Madhavaram. And after this

presentation, the stakeholders were asked to give their suggestions/ comments in

three parts. In first part, the consultants invited comments on the contents of the

presentation. In the second part stakeholders were invited to present the problems

of the city which are hindrances to the development. In the last section of the

workshop, stakeholders were asked to suggest the projects required for the

integrated development of Madhavaram. Other department Engineers and


- 159 -


managers have been called for giving any new and proposed projects required for

the development which are to be executed by other departments like PWD, TWAD

board and Traders.

The Suggestions:

The suggestions given by the various stakeholders are presented below:

Thiru. D. Shanmugam, Chairman

Need town growth Improvement

There is need to upgrade the basic infrastructure of the municipality in terms of

water supply, sewerage and drainage.

Mr. S. Sudharsanam, Vice Chairman

There is a need to develop infrastructure in the town as the existing infrastructure

is old enough to lay new infrastructure then to repair the existing

Town improving arrangements

To Improve bus stand

Proper infrastructure should be provided for schools

Mrs.Vijayalaksmi, Commissioner Incharge

City needs delimitation of boundaries and need to merge the existing villages

and there is a need to prepare a master plan for the upcoming notified areas after

that to regularize the development

Mr. Jayeseilan, Municipal Engineer

Source of water supply are insufficient and there is a proposed scheme for water

supply from metro water


widening for congestion free traffic.

Upgradation of bus stand is required.

New parks and play grounds need to be developed.

Kulam improvement is required for Rain Water Harvesting.

Required CFE light to reduce the power consumption.

Mrs.V. Deivayanai Councillor, Ward No - 6

Required cement concrete road

Renovation of existing drainage at back of the government school


No seating arrangement in bus stand

Required bus bay and shelter in bus stand

Need water supply regularly

Mr.T. Ramakrishnan Councillor, Ward No - 12

Public toilet buildings need renovation

Required cement concrete road for all roads

Need Under ground drainage system

Need proper facilities to drain rain water

Mr.B. Loganathan Councillor, Ward No - 14

Need building and other facilities for municipal schools


- 160 -


Required regular water supply through house connection

Under ground sewage system

Mr.S. Ponraj, President, Teachers colony Association

Required drainage renovation

Street light poles are damaged


Required Engineering college

Road divider is required

Mrs.E. Santhi Councillor, Ward No - 21

Public toilets are required at some places

All the tube lights should be changed to sodium vapour light

No light and water supply arrangement in burial ground

Improvement in basic needs and infrastructure is required in bus stand

Required proper drainage for rain water

Required polytechnic

Mrs.J. Geetha, Councillor, Ward No � 7

Under ground drainage system is required

Pumping station is required at reserved area in teachers colony

Road improvement is required in all the wards

Required higher secondary and elementary school

Required noon-meals center

More street light facilities are required

Mr.M. Vairavan Councillor, Ward No - 27

Required under ground drainage

Required treated water from metro

Required storm water drainage system for all wards

Road widening is required

No road, burial shed and compound wall for burial ground in this ward

Mrs.A. Sujatha Councillor, Ward No - 20

Medimix road widening

IT Industries are required at palpannai area where vacant land are available.

Road should be linked with railway lines.

Mr.S. Manoharan Councillor, Ward No � 1

Cable trench is required along the road sides.

Drinking water is having oil floating

Required National bank

Storm water drains should be desilted

Required treatment plant at Vattamani kulam

Kulam development is required for house constructions

These are some of the suggestions provided by the key person of the municipality,

the major focus was to develop infrastructure in the town and it should be done is a


- 161 -


systematic way. The basic infrastructure should be provided to every people and

the nominal charges should be applied on the available so that the people can

pay it. After the discussion with Chairman and municipal engineer thanked all the

councilors and key people who attend the discussion. The consultant distributed the

formats to each of the person present in the meeting to take individuals view/issues,

to know any required new or proposed projects for the development of

municipality, priority of infrastructure development and to note down the suggestion

and briefed the survey format and after the stakeholders finished the filling of survey

formats Miss. Gajalakshmi thanked all the peoples attended the Stakeholders�

Workshop.

Annexure I � c : Draft Memorandum Of Agreement

This Agreement is made on this ___________________ day of ____________

(Month), 2009 (year) between Tamil Nadu Urban Infrastructure Financial Services

Limited (referred to as TNUIFSL) and the Madhavaram Municipality (referred to as

ULB)

1. This agreement follows the completion of the City Corporate Plan cum

Business Plan (CCP-BP) prepared for the ULB with assistance from Grant Fund

managed by TNUIFSL. A Vision Plan exercise was conducted by the ULB to identify

specific projects required to be developed, and certain projects were identified in

the Vision Plan have been taken through the next steps in terms of preparation of

detailed project reports and implementation, there was a felt need among

stakeholders to draw a comprehensive CCP-BP, taking into account a holistic

perspective of the city/town�s current status and gaps. It was to address this need

that the CCP-BP exercise was conducted. The objectives of the CCP-BP exercise

were to:

Define the growth directions and service up-gradations in relation to the

activity mix / growth

Assess demand for projects specified by the ULBs and gap in services

Outline the infrastructure needs;

Define specific rehabilitation and capital improvement needs with regard to

priority city infrastructure in slums and other areas

Identify measures for revenue enhancement and cost reduction required to

sustain the proposed investments

Identify reforms required in local administration and service delivery and

policy interventions

List out changes required at the local level to improve O&M and better asset

management


- 162 -


2. The study will be completed in June 2009 and the municipal council

passed a resolution adopting the report for implementation on-------------- (Date).

3. This agreement is being entered into between TNUIFSL and the ULB for

TNUIFSL�s assistance in:

(a) Developing and financing projects identified as part of the Capital

Investment Program (CIP) of the CCP and

b) Monitoring the implementation of a reform agenda required to improve

municipal management and to carryout implementation of projects identified in a

sustainable manner.

4. The guide lines of this MOA are listed below:

i. The Madhavaram municipal council agrees to implement the reform

agenda as per the targets recommended in the CCP-BP report. A summary of the

reform agenda in terms of existing status and norms/targets is enclosed in Annexure

III. The reform agenda outlined focuses on those reforms are to be carried out at the

ULB level.

ii. The Madhavaram municipal council will provide a half-yearly update

report to TNUIFSL on the status of the implementation of the reform agenda. TNUIFSL

shall provide a standardised format for reporting this information.

iii. In case there is any delay in the implementation of the reforms agenda by

ULB due to circumstances beyond its control, the decision on the matter of

extension of time for the achievement of targets shall be fixed based on

consultations between TNUIFSL and the ULB

iv. TNUIFSL shall also assist the ULB in preparing DPRs for a set of projects jointly

identified by TNUIFSL and the ULB, based on the Capital Investment Plan (CIP),

prepared as part of the CCP-BP report.

vi. TNUIFSL would subsequently assist in structuring and financing projects

identified earlier through combination of Loan and Grants along with ULB own

funds. The sanction and disbursement of loans and grants from TNUIFSL shall be in

conformance with the lending policies and guidelines of Loan and Grant Funds

under its management and due appraisal of the ULB and the projects by TNUIFSL

5. The council agrees to the following points:

i. Issues presented in the project report and to agree to follow all directions of

CMA/GOTN/TNUIFSL towards execution of the project.


- 163 -


ii. Draw the loan part for the execution of the works and repay the loan with

the applicable interest

iii. Open a joint account with the Concerned Authority and agree to deposit

the ULB�s share every quarter (-- % of the cost of the tendered works), failing which

to abide by action of CMA/GOTN/ TNUIFSL

iv. Conform to the subsequent change, if any, in the loan-grant composition

made by GoTN

6. Undertake the following reforms during the financial year 2009-10 and to improve

during the loan period to achieve the target set for every year:

i. Listing of assets of the ULB and maximizing efficient use of the same,

revenue generation from municipal properties through improved collection of land

revenue /lease to at least of 90 per cent of demand.

ii. Listing of all trade activities and improving collection of trade license fee to

at least 90 per cent of demand.

iii. Revising water tariff as per the G.O------, identification/ regularization of un-

authorized water connections, improved collection of at least 80 per cent of water

tariff.

iv. Imposing solid waste management cess /fees

v. Increasing coverage with respect to property tax collection i.e. bringing

at least 90 per cent properties into the tax net, increasing collection efficiency

and ensuring arrear collection of at least 90 per cent of current demand for

property tax.

vi. Computerizing municipal systems and procedures

vii. Undertake public awareness through ward-level consultation meetings,

with NGO involvement, improving the image of the ULB and generating confidence

among citizens regarding the ability of the ULB to deliver quality services

ix. Acquire land, free from all encumbrances / encroachments, required for

all identified projects before project loan effectiveness


- 164 -


x. Solve all problems (like agitation) during construction activity and to ensure

timely completion of the work as per schedule

xi. Offer necessary co-operation/coordination with consultants, NGOs and

various other agencies involved in implementation of the project

xii. Undertake full responsibility, in respect of civil works, for quality assurance

and joint measurement of completed works and to assure full co-operation and co-

ordination and to agree to all pre-qualification requirements and bidding

procedures of World Bank and to impose penalty, if any, from the first bill itself;

xiii. Undertake that no variation order without citing reasons for variation as

well as working out the time and financial implications, will be issued subsequent to

tendering without prior approval of TNUIFSL

xiv. Carryout the all the directions of CMA/GoTN/TNUIFSL.

Finally, the Council agrees to bind itself to these terms, which would form part of

future agreement with GoTN/TNUIFSL, and further resolve to authorize the

Commissioner/Chief Executive Officer to take necessary action to get the above

mentioned infrastructure facilities to this town. The Council further agrees to

authorize the Commissioner and Chairman to sign the loan agreement with TNUIFSL.

SIGNATORIES:

Place:

Date:

Managing Director and CEO, TNUIFSL

Chairman, ULB Council

Commissioner, ULB


- 165 -


Annexure I � d : Minutes of Meeting

Minutes of Meeting on Revised Draft Final Report submitted by M/s Voyants Solution

Pvt. Ltd. for City Corporate Plan cum Business Plan study for Cluster V covering Arcot,

Gudiyatham, Ranipet, Tirupattur, Vaniyambadi and Walajapet, Municipalities held

on 23.6.2009 and for Ambur, Arakonam Arani, Thiruvathipuram and Madhavaram

Municipalities held on 24.06.2009 at the office of TNUIFSL.

Members Present � List enclosed

The consultants were requested to address the following:

1. To correct the grade of the ULBs as revised by the Government.

2. To highlight the requirement of capital / revenue grant to implement and

operate all the new schemes.

3. To indicate following in the executive summary of the report

c) List of projects under the sustainable scenario along with the year wise

phasing of the projects identified.

d) The assumption made on the means of finance.

Town specific comments

Ranipet

The consultants were requested to

Address the requirement of staff quarters and indicate the same as a project

in CIP in consultation with the ULB.

Update the details on the Bus Stand project at Muthukadai adjoining Pinji

Lake in consultation with the ULB.

Highlight the impact on discharge of polluted water in to Palar river.

Thiruvathipuram

The consultants were requested to

Update the details on the assets in consultation with the ULB.

Revise the Bus Stand improvement project in consultation with the ULB


- 166 -


Madhavaram

The consultants were requested to revise the assumptions on means of

finance in accordance with JNNURM norms and revise the FOP

accordingly.

The consultants were requested to address the above points and include in final

report. The revised draft final reports for CCCBP are approved.


- 167 -


Annexure IX - a: Revenue and Capital Fund � Income (Rs. In lacs)

S.No. Particulars Audited Unaudited

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

I Income

a) Property Tax

Property Tax for General Purpose 102.36 105.19 120.07 130.70 132.75 160.98

Excess Remittance - Revenue Items 0.47 - - - - -

b) Other Taxes

Profession Tax 14.06 14.10 16.99 19.13 20.66 19.29

c) Assigned Revenue

Duty on Transfer of Property 191.43 98.66 318.09 331.21 208.59 334.65

d) Devolution Fund 70.96 138.84 181.06 140.82 208.08 197.26

e) Service Charges & Fees

Trade Licence Fees 2.59 2.70 2.84 2.67 3.99 3.02

Licence Fees Under PFA Act 0.07 0.06 0.07 0.06 0.06 0.06

Building Licence Fees 6.28 8.00 13.34 12.79 21.23 18.14

Copy Application Fees 2.03 0.16 2.10 0.80 0.61 0.48

Subdivision fees 0.17 - - 2.68 4.10 -

Other Fees 1.60 10.42 5.89 3.87 7.19 35.15

f) Grants & Contribution

Grants for Schemes Implementation 0.64 1.01 0.39 - 0.81 2.02

Others Grant 1.87 - - 0.72 - -

g) Sale & Hire Charges - - - - - -

h) Other Income

Development Charges - - - - - 3.31

Road Cut Restoration Charges 12.72 12.24 0.95 1.93 10.57 5.41

Road formation charges 4.25 3.52 6.36 7.93 9.89

Other Income 10.54 7.49 12.48 2.36 6.37 4.43

Miscellaneous Recoveries 0.90 1.11 0.83 4.23 0.80 0.67

Project Overhead Appr - Expenses 4.22 28.26 35.07 41.52 18.54 22.36

Project Overhead Appr - Interest - - - - 42.46 -

Interest from Banks 0.21 1.75 4.85 4.25 1.43 9.54

Interest from Investments 0.09 0.09 7.50 12.66 0.17

I.P.P.V.Grant 9.90 10.17 9.58 10.23 10.78 11.27

Cable T.V. fees 0.17 2.45 0.15 - 0.70 -

Deposit Lapsed & Forfeited 6.98 - - 9.28 - -

Others - 0.01 0.01 0.02 0.01 1.26

Total Income 444.42 446.23 731.21 734.70 722.28 829.47


- 168 -


Annexure IX - b: Revenue and Capital Fund � Expenditure(Rs. In lacs)

S.No. Particulars

Audited Unaudited

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

II Expenditure

a) Personnel Cost - Salaries

Pay and Allowances 123.49 120.50 129.47 141.35 130.81 162.46

b) Personnel Cost - Others

Supply of Uniform 0.78 1.65 1.18 1.84 0.94 1.15

c) Terminal & Retirement Benefits

Pension 6.93 6.76 8.40 4.47 27.06 -

Commutation of Pension 2.70 6.26 7.03 1.89 - -

SPF & Gratituity 0.15 0.71 0.24 - 0.43 0.15

GIS Management contribution 1.24 1.24 1.24 1.24 1.24

Pension contribution 0.13 3.23 - 10.07 - 12.54

Others - 3.21 - - - 1.12

d) Operating Expenses

Wages 5.51 5.59 6.23 5.89 5.93 -

Power Charges for Street lights 6.96 24.91 42.73 5.66 37.53 48.46

Maintenance - Street Lights 10.28 12.32 17.31 17.64 22.77 34.57

Sanitary expenses & materials 2.84 2.29 22.39 37.56 7.23 15.04

Rent of Building 2.11 1.34 - - - -

Privatisation of Sanitary works - - - - 47.03 48.45

e) Repairs & Maintenance

Light Vehicle Maintenance 1.62 1.13 1.09 0.24 1.42 1.02

Heavy Vehilce Maintenance 11.25 9.04 14.86 16.38 22.87 18.57

Repairs & Maintenance - Buildings 0.62 1.73 - - 0.16 0.74

Repairs & Maintenance - Roads 7.60 5.74 - 1.79 0.55 1.78

Repairs & Maintenance - Drainage & Culv. 1.03 1.45 0.76 0.08 0.15 3.04

Repairs & Maintenance - Others 0.24 0.06 - - - 0.50

f) Programme Expenses

Election Expenses 3.65 - - 0.04 0.06 4.01

Others 1.97 1.98 1.66 1.98 0.40 -

g) Administration Expenses

Telephone Charges 1.11 1.14 1.31 2.59 2.97 3.12

Legal Expenses 0.07 0.15 0.32 0.57 0.05 0.18

Stationery & Printing 1.81 3.96 5.70 3.88 4.90 10.30

Travel Expenses 0.16 0.12 0.27 0.21 0.19 0.31

Computer Operating Expenses - 0.26 0.27 0.42 1.70 0.80

Postage & Telegram 0.15 0.06 0.10 0.12 0.11 0.18


- 169 -


S.No. Particulars

Audited Unaudited

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Advertisement 0.09 0.50 0.80 0.93 2.63 0.55

Electricity - Office Building 1.15 - - 0.53 0.65 0.55

Contributions 3.66 0.75 1.16 7.48 0.96 0.90

Sitting Fees for Councillors 1.08 1.08 0.99 1.08 0.96 0.90

Others 0.52 1.85 0.90 0.89 1.24 2.22

h) Finance Expenses

Provision for Doubtfull collection 5.88 4.87 3.13 5.39 0.67 8.79

Interest on Loans / Ways Means Adv / OD 29.68 39.89 26.93 20.15 25.22 32.13

Irrecoverable Revenue Items - Written off - 32.50 16.87 5.10 - -

Audit Fees 0.32 0.31 0.65 0.62 0.65 0.65

Others 0.30 0.34 0.23 0.22 3.05 1.43

I) Depreciation 123.68 136.41 128.05 243.17 407.61 303.69

Total Expenses 360.76 435.33 442.27 541.47 760.14 720.30

Surplus / (Deficit) for the year 83.66 10.90 288.94 193.23 (37.86) 109.17

Annexure IX - c: Water Supply and Drainage Fund(Rs. In lacs)

S.No. Particulars Audited Unaudit

ed 2001-

02 2002-03 2003-04

2004-05 2005-06 2006-07

I Income

a) Property Tax

Water Supply & Drainage Tax 33.51 34.64 38.65 45.75 43.31 53.66

Excess Remittance 0.16 - - - - -

b) Service Charges & Fees

Initial amount for WSNSC 3.95 0.25 0.05 - 3.45 4.05

Income for giving new water connections - - - - - 1.18

c) Other Income

Other Income - - - - 0.06 0.19

Project Overhead Appr - Expenses 2.94 1.12 1.81 0.55 5.59 15.39

Interest from Banks & Investment - 0.10 0.15 3.29 0.06 0.23

Total Income 40.56 36.11 40.66 49.59 52.47 74.70

II Expenditure

a) Personnel Salaries Cost

Pay and Allowances 2.24 2.46 5.06 - 6.23 7.06

b) Operating Expenses


- 170 -


S.No. Particulars Audited Unaudit

ed 2001-

02 2002-03 2003-04

2004-05 2005-06 2006-07

Hire Charges for Supply of water 19.30 29.00 35.03 - 47.73 40.26

c) Repairs & Maintenance

Heavy Vehilce Maintenance 2.28 2.57 - - - -

Maintenance exps for water supply works 11.03 11.07 12.94 - 18.55 15.02

Water cess - 1.89 0.03 - - 1.30

d) Administration Expenses

Printing & Stationery - - - - - 0.15

e) Finance Expenses

Provision for doubtful collection 1.56 0.98 1.04 1.59 0.20 1.49

Interest on Loan, ways & means - 4.89 16.49 1.70 9.27 8.98

Irrecoverable revenue items w/off - 10.83 - - - -

Bank charges 0.01 - - - - -

f) Depreciation 7.68 9.94 10.88 1.97 23.69 21.73

Total Expenses 44.10 73.63 81.47 5.26 105.67 95.99

Surplus / (Deficit) for the year (3.54) (37.52) (40.81) 44.33 (53.20) (21.29)

Annexure IX - d: Education Fund (Rs. In lacs)

S.No Particulars Audited Unaudited

2001-02 2002-03 2003-04 2004-0 2005-06 2006-07

I Income

a) Property Tax

Education Tax 35.33 35.90 42.11 45.75 46.14 53.66

Excess Collection 0.16 - - - - -

b) Other Income

Interest from Bank & Investment - 0.64 0.53 3.29 3.57 3.43

Project Overhead Appr - Expenses 2.13 1.05 - 0.55 3.74 2.23

Total Income 37.62 37.59 42.64 49.59 53.45 59.32

II Expenditure

a) Terminal & Retirement Benefits

SPF cum Gratuity - 0.49 - - - -

b) Repairs & Maintenance


- 171 -


Maintenance of School Building 0.01 - - - - -

c) Finance Expenses

Provision for doubtful collection 1.56 0.98 1.04 1.59 0.20 1.49

Irrecoverable revenue - written off

- 10.83 - 1.70 - 4.37

d) Depreciation 0.91 1.88 1.79 1.97 3.59 -

Total Expenses 2.48 14.18 2.83 5.26 3.79 5.86

Surplus / (Deficit) for the year 35.14 23.41 39.81 44.33 49.66 53.46


- 172 -


Annexure IX - e: Summary of Income and Expenditure Accounts (Rs.in lacs.)

S.No

Particulars

Audited Unaudited

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'ta

ry Total

Capital Supply Education Capital Supply Education Capital Supply Education Capital Supply Education Capital Suppl

y Educati

on Capital Supply Education

I Income

a) Property Tax 102.83 33.67 35.49 171.99 105.19 34.64 35.90 175.73 120.07 38.65 42.11 200.83 130.70 45.75 45.75 222.20 132.75 43.31 46.14 222.20 160.98 53.66 53.66 268.30

b) Other Taxes 14.06 - - 14.06 14.10 - - 14.10 16.99 - - 16.99 19.13 - - 19.13 20.66 - - 20.66 19.29 - - 19.29

c) Assigned Revenue

191.43 - - 191.43 98.66 - - 98.66 318.09 - - 318.09 331.21 - - 331.21 208.59 - - 208.59 334.65 - - 334.65

d) Devolution Fund 70.96 - - 70.96 138.84 - - 138.84 181.06 - - 181.06 140.82 - - 140.82 208.08 - - 208.08 197.26 - - 197.26


12.74 3.95 - 16.69 21.34 0.25 - 21.59 24.24 0.05 - 24.29 22.87 0.00 - 22.87 37.18 3.45 - 40.63 56.85 5.23 - 62.08

f) Grants & Contribution 2.51 - - 2.51 1.01 - - 1.01 0.39 - - 0.39 0.72 - - 0.72 0.81 - - 0.81 2.02 - - 2.02

g) Sale & Hire Charges 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00

h) Other Income 49.89 2.94 2.13 54.96 67.09 1.22 1.69 70.00 70.37 1.96 0.53 72.86 89.25 3.84 3.84 96.93 114.21 5.71 7.31 127.23 58.42 15.81 5.66 79.89

Total Income 444.42 40.56 37.62 522.60 446.23 36.11 37.59 519.93 731.21 40.66 42.64 814.51 734.70 49.59 49.59 833.88 722.28 52.47 53.45 828.20 829.47 74.70 59.32 963.49

II Expenditure

a) Personnel Cost - Salaries 123.49 2.24 - 125.73 120.50 2.46 - 122.96 129.47 5.06 - 134.53 141.35 0.00 - 141.35 130.81 6.23 - 137.04 162.46 7.06 - 169.52

b) Personnel Cost - Others 0.78 - - 0.78 1.65 - - 1.65 1.18 - - 1.18 1.84 - - 1.84 0.94 - - 0.94 1.15 - - 1.15

c) Terminal & Retirement Benefits

11.15 - 0.00 11.15 21.41 - 0.49 21.90 16.91 - 0.00 16.91 17.67 - 0.00 17.67 1.67 - 0.00 1.67 13.81 - 0.00 13.81

d) Operative Expenses

27.70 19.30 - 47.00 46.45 29.00 - 75.45 88.66 35.03 - 123.69 66.75 0.00 - 66.75 120.49 47.73 - 168.22 146.52 40.26 - 186.78

e) Repairs & Maintenance 22.36 13.31 0.01 35.68 19.15 15.53 0.00 34.68 16.71 12.97 0.00 29.68 18.49 0.00 0.00 18.49 25.15 18.55 0.00 43.70 25.65 16.32 0.00 41.97

f) Programme Expenses

5.62 - - 5.62 1.98 - - 1.98 1.66 - - 1.66 2.02 - - 2.02 0.46 - - 0.46 4.01 - - 4.01

g) Admnistrative Expenses 9.80 0.00 - 9.80 9.87 0.00 - 9.87 11.82 0.00 - 11.82 18.70 0.00 - 18.70 16.36 0.00 - 16.36 20.01 0.15 - 20.16

h) Finance Expenses

36.18 1.57 1.56 39.31 77.91 16.70 11.81 106.42 47.81 17.53 1.04 66.38 31.48 3.29 3.29 38.06 29.59 9.47 0.20 39.26 43.00 10.47 5.86 59.33

I) Depreciation 123.68 7.68 0.91 132.27 136.41 9.94 1.88 148.23 128.05 10.88 1.79 140.72 243.17 1.97 1.97 247.11 407.61 23.69 3.59 434.89 303.69 21.73 0.00 325.42

Total Expenditure 360.76 44.10 2.48 407.34 435.33 73.63 14.18 523.14 442.27 81.47 2.83 526.57 541.47 5.26 5.26 551.99 733.08 105.6

7 3.79 842.54 720.30 95.99 5.86 822.15

Surplus / (Deficit) 83.66 (3.54) 35.14 115.26 10.90 (37.52) 23.41 (3.21) 288.94 (40.81) 39.81 287.94 193.23 44.33 44.33 281.89 (10.80) (53.20

) 49.66 (14.34) 109.17 (21.29) 53.46 141.34


- 173 -


Annexure IX - f: Summary of Income and Expenditure Accounts in Percentage (Rs. In lacs)

S.No

Particulars

Audited Unaudited

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Rev & Capital

Water Supply

Elem'tary Education

Total

Rev & Capital

Water Supply

Elem'tary Education

Total

Rev & Capital

Water Supply

Elem'tary Education

Total

Rev & Capital

Water Supply

Elem'tary Education

Total

Rev & Capital

Water Supply

Elem'tary Education

Total

Rev & Capital

Water Supply

Elem'tary Education

Total

I Income (% of Total Income)

a) Property Tax 23% 83% 94% 33% 24% 96% 96% 34% 16% 95% 99% 25% 18% 92% 92% 27% 18% 83% 86% 27% 19% 72% 90% 28%

b) Other Taxes 3% - - 3% 3% - - 3% 2% - - 2% 3% - - 2% 3% - - 2% 2% - - 2%

c) Assigned Revenue 43% - - 37% 22% - - 19% 44% - - 39% 45% - - 40% 29% - - 25% 40% - - 35%

d) Devolution Fund 16% - - 14% 31% - - 27% 25% - - 22% 19% - - 17% 29% - - 25% 24% - - 20%

e) Service Charges & Fees 3% 10% - 3% 5% 1% - 4% 3% 0% - 3% 3% 0% - 3% 5% 7% - 5% 7% 7% - 6%

f) Grants & Contribution 1% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0%

g) Sale & Hire Charges 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0%

h) Other Income 11% 7% 6% 11% 15% 3% 4% 13% 10% 5% 1% 9% 12% 8% 8% 12% 16% 11% 14% 15% 7% 21% 10% 8%

Total Income 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

II Expenditure (% of Total Expt)

a) Personnel Cost � Salaries 34% 5% - 31% 28% 3% - 24% 29% 6% - 26% 26% 0% - 26% 18% 6% - 16% 23% 7% - 21%

b) Personnel Cost � Others 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0%

c) Terminal & Retirement Benefits 3% - 0% 3% 5% - 3% 4% 4% - 0% 3% 3% - 0% 3% 0% - 0% 0% 2% - 0% 2%

d) Operative Expenses 8% 44% - 12% 11% 39% - 14% 20% 43% - 23% 12% 0% - 12% 16% 45% - 20% 20% 42% - 23%

e) Repairs & Maintenance 6% 30% 0% 9% 4% 21% 0% 7% 4% 16% 0% 6% 3% 0% 0% 3% 3% 18% 0% 5% 4% 17% 0% 5%

f) Programme Expenses 2% - - 1% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 1% - - 0%

g) Admnistrative Expenses 3% 0% - 2% 2% 0% - 2% 3% 0% - 2% 3% 0% - 3% 2% 0% - 2% 3% 0% - 2%

h) Finance Expenses 10% 4% 63% 10% 18% 23% 83% 20% 11% 22% 37% 13% 6% 63% 63% 7% 4% 9% 5% 5% 6% 11% 100% 7%

I) Depreciation 34% 17% 37% 32% 31% 13% 13% 28% 29% 13% 63% 27% 45% 37% 37% 45% 56% 22% 95% 52% 42% 23% 0% 40%

Total Expenditure 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Surplus / (Deficit) (% of Total Income) 19% -9% 93% 22% 2% -104% 62% -1% 40% -100% 93% 35% 26% 89% 89% 34% -1% -101% 93% -2% 13% -29% 90% 15%


- 174 -


Annexure IX - g: Growth in Revenue and Cost for Last 5 Years

S.No

Particulars

2002-03

2003-04

2004-05

2005-06

2006-07

Simple Average

Comp. Average

I Income

a) Property Tax 2.17% 14.28% 10.64% 0.00% 20.75% 9.57% 11.20%

b) Other Taxes 0.28% 20.50% 12.60% 8.00% -6.63% 6.95% 7.44%

c) Assigned Revenue

- Duty on Transfer of Property

-48.46% 222.41% 4.12%

-37.02%

60.43% 40.30% 14.96%

- Entertainment Tax - - - - - 0.00% -

d) Devolution Fund 95.66% 30.41% -22.22% 47.76% -5.20% 29.28% 35.60%


- Water Charges - - - - - 0.00% -

- Water Connection Charges

-93.67% -80.00%

-100.00

% - 51.59

% -44.42% 6.48%

- Others 67.50% 13.59% -5.65% 62.57% 52.90% 38.18% 69.25%

f) Grants & Contribution -59.76% -61.39% 84.62% 12.50% 149.38% 25.07% -3.90%

g) Sale & Hire Charges - - - - - 0.00% -

h) Other Income 27.37% 4.09% 33.04% 31.26% -

37.21%

11.71% 9.07%

II Expenditure

a) Personnel Cost - Salaries -2.20% 9.41% 5.07% -3.05% 23.70% 6.59% 6.97%

b) Personnel Cost - Others 111.54%

-28.48% 55.93% -48.91%

22.34%

22.48% 9.49%

c) Terminal & Retirement Benefits 96.41% -22.79% 4.49% -

90.55% 726.95

% 142.90% 4.77%

d) Operative Expenses 60.53% 63.94% -

46.03% 152.01

% 11.03

% 48.30% 59.48%

e) Repairs & Maintenance -2.80% -14.42% -37.70%

136.34% -3.96% 15.49% 3.53%

f) Program Expenses -64.77% -16.16% 21.69% -

77.23% 771.74

% 127.05% -5.73%

g) Administrative Expenses 0.71% 19.76% 58.21% -12.51%

23.23%

17.88% 21.14%

h) Finance Expenses 170.72% -37.62% -

42.66% 3.15% 51.12% 28.94% 10.19%

I) Depreciation 12.07% -5.07% 75.60% 75.99% -

25.17%

26.68% 29.21%


- 175 -


Annexure IX - h: Revenue and Capital Fund Balance Sheet (Rs. in lacs)

S.No Particulars Audited Unaudited 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

I Liabilities a) Liabilities Loan from TUFIDCO 20.68 11.04 9.71 60.3 269.34 250.32 Loan from TNUDF 221.55 212.97 203.86 193.39 177.44 165.68 Contribution from Government 59.87 133.66 199.63 259.36 361.00 361.01 Grant from Government 26.99 28.31 27.66 98.34 115.32 227.77 Accumulated Depreciation 611.71 748.12 876.18 1119.33 1526.95 1830.65

b) Current Liabilities Tender Deposits 27.29 28.53 40.53 40.57 57.41 71.87 Deposits Others 108.25 104.53 108.18 10.00 10.00 10.00 Deposit - IPPV Account 10.00 3.74 - 3.59 3.65 - Library Cess Payable 49.37 60.08 63.55 73.47 69.85 41.38 Accounts Payable 4.68 2.24 - - - -

Advance collection of Property Tax - 1.48 1.48 4.09 4.08 4.08

Other paybles - 11.75 3.80 0.30 1.92 10.49 Outstandings 24.84 7.85 11.98 8.63 12.80 -

Recoveries from staff bills payable 4.91 5.67 6.82 3.7 4.53 5.82

Provision for Doubtful collection 38.51 31.22 34.35 19.42 20.09 29.03

Inter Funds Transfer 37.84 38.87 53.27 68.76 87.43 119.79 c) Accumulated Surplus 624.36 547.03 847.25 1073.97 1056.86 1166.03 Total 1870.85 1977.09 2488.25 3037.22 3778.67 4293.92 II Assets a) Fixed Assets Land 179.44 64.50 64.50 64.50 64.50 64.50 Buildings 82.98 191.09 227.37 298.17 366.11 396.39 Bridges & Culverts 42.83 42.83 42.83 42.83 42.83 - Roads & Pavements 550.31 686.10 785.46 1069.22 1434.93 1612.39 Tools & Plant 1.12 4.85 4.85 9.87 16.42 23.68

Strom Water Drains,Open drains & Culverts

168.86 182.57 360.09 395.53 479.33 565.99

Heavy & Light Vehicles 60.66 66.42 67.53 72.05 134.60 147.17 Furniture & Fixtures 10.85 14.16 15.53 20.97 21.29 22.51 Projects in Progress 22.78 1.69 - - - 38.00 Electrical Instalation 29.20 32.19 32.19 32.19 44.92 54.93 Instruments in Hospital 0.32 0.32 0.32 0.32 0.32 0.32

b) Current Assets Stock 4.94 3.55 1.67 0.52 0.45 0.62

Property Tax Recoverable - Current 52.18 42.95 - 51.04 54.60 60.01

Property Tax Recoverable - Arrears 80.60 76.33 138.82 90.73 116.22 113.19

Profession Tax Recoverable - Current - - - 2.22 1.87 0.37

Profession Tax Recoverable - Arrears 25.83 25.82 11.02 11.02 12.49 12.02

Licence fees Recoverable - Arrears 0.51 0.51 0.51 0.51 0.51 0.51

Specific Grant Receivable 260.22 69.14 69.74 69.94 80.72 70.76 Deposits Recoverable - 0.24 0.24 0.24 0.24 0.24 Staff Advance Recoverable - - - - 5.25 4.51


- 176 -


S.No Particulars Audited Unaudited 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Advance to Suppliers & Contractors 4.43 4.43 4.43 0.91 0.91 0.91

Other Advances - Recoverable 152.68 132.00 132.51 4.22 2.45 2.37

Funds Transfer 75.53 165.48 275.74 414.68 619.07 677.12

Interest due on Investments & Fixed deposits

- 0.09 0.19 6.10 5.79 7.51

Others 1.60 2.85 2.85 2.88 - - c) Cash & Bank Balances Cash on Hand - - - 0.92 0.45 0.77 Banks Accounts 62.98 148.89 181.77 87.55 82.40 275.13 Fixed Deposits - 18.09 68.09 288.09 190.00 142.00 Total 1870.85 1977.09 2488.25 3037.22 3778.67 4293.92

Annexure IX - i: Water Supply and Drainage Fund Balance Sheet (Rs. in lacs)

S.No

Particulars Audited Unaudited 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

I Liabilities a) Liabilities

Contribution from Government

- - 2.00 19.35 19.35 19.36

Loan from TNUDF - 166.50 159.45 159.45 151.79 186.56

Loan from TUFIDCO 43.39 36.19 28.99 18.76 12.38 6.81

Accumulated Depreciation 85.92 95.86 106.75 130.67 154.37 176.10


Reserve for Doubtful Collof Revitems

5.97 3.28 4.32 3.42 3.610 5.100

Tender Deposit 0.11 0.22 0.41 1.42 3.22 3.75 Outstandings 0.51 0.03 - - - -

Advance collection of Property Tax

- 0.44 0.44 1.20 1.20 1.20

Inter Funds Transfer 75.58 165.58 276.24 415.19 619.58 696.04

c) Accumulated Surplus/Deficit

58.89 11.33 (26.86) (71.20) (119.16

) (140.45)

Total 270.37 479.43 551.74 678.26 846.34 954.47 II Assets a) Fixed Assets

Land 35.21 13.99 13.99 13.99 13.99 13.99

Buildings 24.77 24.77 24.77 25.16 25.16 32.17

Heavy & Light Vehicles 13.50 13.88 14.38 14.38 14.38 14.38 Tools & Plant 11.11 13.26 17.69 22.23 29.03 34.44

Water Supply Head works,OHT etc

14.43 37.04 65.25 70.86 169.57 202.04

Ground Water & Bore well 35.71 55.91 76.45 147.09 193.06 197.10

Water Supply Pipelines 9.78 9.78 17.80 57.13 71.72 89.59

Hand Pump 70.12 70.12 70.12 71.46 72.57 106.41

b) Current Assets

Stock on Hand 2.24 2.15 1.66 0.36 - 0.32


- 177 -


WSD Tax Receivable - Current

17.40 14.32 - 17.01 18.20 20.01

WSD Tax Receivable - Arrears

26.82 25.40 46.23 30.20 38.69 37.68

Advance to TWAD Board - 186.50 186.50 186.50 186.50 186.50

Interest due on Investment - 0.09 - 0.57 0.12 0.07


Cash on Hand - - - 0.25 0.10 0.23

WSD Fund - Bank Accounts 9.28 4.21 6.40 5.57 2.75 9.04 Fixed Deposit - 8.00 10.50 15.50 10.50 10.50

Total 270.37 479.42 551.74 678.26 846.34 954.47

Annexure IX - j: Education Fund Balance sheet (Rs. in lacs)

S.No Particulars Audited Unaudited

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

I Liabilities a) Liabilities Accumulated Depreciation 11.13 13.02 14.80 16.78 20.37 24.74

b) Current Liabilities Tender Deposit 0.07 0.17 0.17 0.22 0.98 1.21

Advance collection of Property Tax

- 0.44 0.44 1.20 1.20 1.20

Provision for dobtfuldebts 5.98 3.42 4.47 3.27 3.47 4.96 Outstandings 0.31 0.04 0.04 - - - Deposits - Others 6.03 5.66 5.66 - - -

c) Accumulated Surplus/(Deficit) 175.60 217.59 258.55 312.26 372.40 425.86

Total 199.12 240.34 284.13 333.73 398.42 457.97 II Assets a) Fixed Assets Land 65.51 65.51 65.51 65.51 65.51 65.51 Buildings 38.12 48.76 48.76 54.31 92.10 107.84

b) Current Assets

Education Tax Rec - Current 17.39 14.32 17.35 17.01 18.20 20.00

Education Tax Rec - Arrears 26.96 25.53 29.02 30.34 38.83 37.82

Inter Fund Transfer 37.89 38.99 53.78 69.26 86.46 116.85 Other Advances 0.48 0.48 0.48 - - - Accrued Interest - 0.63 - 0.53 1.07 2.30 Others - - - - - 0.17

d) Cash & Bank Balances Cash on Hand - - - 0.27 0.10 0.23 Bank A/cs 12.77 11.12 2.23 9.50 9.15 20.25 Fixed Deposit - 35.00 67.00 87.00 87.00 87.00 Total 199.12 240.34 284.13 333.73 398.42 457.97


- 178 -


Annexure IX - k: Summary of Balance sheet (Rs. in lacs)

S.No Particulars

Audited Unaudited

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Rev & Capital

Water Supply

Elem'tary Education Total Rev &

Capital Water Supply







Elem'tary Total Rev & Capital

Water Supply

Elem'tary Education Total

Education

I Liabilities

a) Grants / Contribution 329.09 43.39 - 372.48 385.98 202.69 - 588.67 440.86 190.44 - 631.30 611.39 197.56 - 808.95 923.10 183.52 - 1106.62 1004.78 212.73 - 1217.51

b) Accumulated Depreciation 611.71 85.92 11.13 708.76 748.12 95.86 13.02 857.00 876.18 106.75 14.80 997.73 1119.33 130.67 16.78 1266.78 1526.95 154.37 20.37 1701.69 1830.65 176.10 24.74 2031.49

c) Current Liabilities 305.69 82.17 12.39 400.25 295.96 169.55 9.73 475.24 323.96 281.41 10.78 616.15 232.53 421.23 4.69 658.45 271.76 627.61 5.65 905.02 292.46 706.09 7.37 1005.92

d) Net Surplus 624.36 58.89 175.60 858.85 547.03 11.33 217.59 775.95 847.25 (26.86) 258.55 1078.94 1073.97 (71.20) 312.26 1315.03 1056.86 (119.16) 372.40 1310.10 1166.03 (140.45) 425.86 1451.44

Total Liabilities 1870.85 270.37 199.12 2340.34 1977.09 479.43 240.34 2696.86 2488.25 551.74 284.13 3324.12 3037.22 678.26 333.73 4049.21 3778.67 846.34 398.42 5023.43 4293.92 954.47 457.97 5706.36

II Assets

a) Fixed Assets 1149.35 214.63 103.63 1467.61 1286.72 238.75 114.27 1639.74 1600.67 300.45 114.27 2015.39 2005.65 722.75 119.82 2848.22 2605.25 589.48 157.61 3352.34 2925.88 690.12 173.35 3789.35

b) Current Assets

658.52 46.46 82.72 787.70 523.39 228.46 79.95 831.80 637.72 234.39 100.63 972.74 655.01 234.39 117.14 1006.54 900.57 243.51 144.56 1288.64 950.14 244.58 177.14 1371.86


62.98 9.28 12.77 85.03 166.98 12.21 46.12 225.31 249.86 16.90 69.23 335.99 376.56 21.32 96.77 494.65 272.85 13.35 96.25 382.45 417.90 19.77 107.48 545.15

Total Assets 1870.85 270.37 199.12 2340.34 1977.09 479.42 240.34 2696.86 2488.25 551.74 284.13 3324.12 3037.22 978.46 333.73 4349.41 3778.67 846.34 398.42 5023.43 4293.92 954.47 457.97 5706.36


- 179 -


Annexure IX - l: Demand Collection Balance Statement (Rs.in lacs)

S.No

Particulars

Demand Collection Collection %

Arrears

Current Total Arrear

s Curre

nt Total Arrears

Current Total

A 2006-07

I Tax Income

a) Property Tax 240.93 396.80 637.73 144.56 297.60 442.16 60% 75% 69%

b) Profession Tax 4.83 25.00 29.83 2.90 18.75 21.65 60% 75% 73%

Total Tax Income 245.76 421.80 667.56 147.46 316.35 463.81 60% 75% 69%

II Non Tax Income

a) Water Charges 0.00 0.00 0.00 0.00 0.00 0.00 - - -

b) Other Fees 0.00 610.00 610.00 0.00 610.00 610.00 - 100%

100%

Total Non Tax Income 0.00 610.00 610.00 0.00 610.00 610.00 - 100

% 100%

III Total Tax & Non Tax Income 245.76 1031.8

0 1277.5

6 147.46 926.35 1073.81 60% 90% 84%

S.No

Particulars


ArrearsCurrent Total ArrearsCurrent Total ArrearsCurrent Total

B 2005-06

I Tax Income

a) Property Tax 294.23 239.81 534.04 85.32 141.53 226.85 29% 59% 42%

b) Profession Tax 13.24 20.66 33.90 0.75 18.79 19.54 6% 91% 58%

Total Tax Income 307.47 260.47 567.94 86.07 160.32 246.39 28% 62% 43%

II Non Tax Income

a) Water Charges 0.00 0.00 0.00 0.00 0.00 0.00 - - -

b) Other Fees 0.51 503.41 503.92 0.00 503.36 503.36 0% 100% 100%

Total Non Tax Income 0.51 503.41 503.92 0.00 503.36 503.36 0% 100% 100%

III Total Tax & Non Tax Income 307.98 763.88 1071.86 86.07 663.68 749.75 28% 87% 70%


- 180 -


S.No

Particulars


Arrears


s Curren

t Total Arrears Current Total

C 2004-05

I Tax Income

a) Property Tax 274.36 236.25 510.61

102.13 144.39 246.52 37% 61% 48%

b) Profession Tax 11.02 19.13 30.15 0.00 16.92 16.92 0% 88% 56%

Total Tax Income 285.38 255.38 540.7

6 102.13 161.31 263.44 36% 63% 49%

II Non Tax Income

a) Water Charges 0.00 0.00 0.00 0.00 0.00 0.00 - - -

b) Other Fees 0.51 468.90 469.4

1 0.00 468.90 468.90 0% 100%

100%

Total Non Tax Income 0.51 468.90 469.4

1 0.00 468.90 468.90 0% 100%

100%

III Total Tax & Non Tax Income

285.89 724.28 1010.17 102.13 630.21 732.34 36% 87% 72%

S.No

Particulars


Arrears


s Curren

t Total Arrears Current Total

D 2003-04

I Tax Income

a) Property Tax 58.05 196.59 254.64 46.44 186.76 233.20 80% 95% 92%

b) Profession Tax 25.82 13.56 39.38 17.03 13.56 30.59 66% 100% 78%

Total Tax Income 83.87 210.15 294.02 63.47 200.32 263.79 76% 95% 90%

II Non Tax Income

a) Water Charges 0.00 0.00 0.00 0.00 0.00 0.00 - - -

b) Other Fees 0.00 424.37 424.37 0.00 424.37 424.37 - 100% 100%

Total Non Tax Income 0.00 424.37 424.37 0.00 424.37 424.37 - 100% 100%


83.87 634.52 718.39 63.47 624.69 688.16 76% 98% 96%


- 181 -


S.No

Particulars


Arrears


s Curre

nt Total Arrears

Current

Total

E 2002-03

I Tax Income

a) Property Tax 202.78 174.83 377.61 162.22 157.34 319.56 80% 90% 85%

b) Profession Tax 25.82 14.10 39.92 0.00 14.10 14.10 0% 100% 35%

Total Tax Income 228.60 188.93 417.53 162.22 171.44 333.66 71% 91% 80%

II Non Tax Income

a) Water Charges 0.00 0.00 0.00 0.00 0.00 0.00 - - -

b) Other Fees 0.00 411.21 411.21 0.00 411.21 411.21 - 100% 100%

Total Non Tax Income 0.00 411.21 411.21 0.00 411.21 411.21 - 100% 100

%


228.60 600.14 828.74 162.22 582.65 744.87 71% 97% 90%

S.No

Particulars

Demand Collection Collection % Arrear

s Curren

t Total Arrears


s Current Total

F 2001-02

I Tax Income

a) Property Tax 252.79 184.80 437.59 107.98 90.87 198.85 43% 49% 45%

b) Profession Tax 25.82 14.06 39.88 0.00 14.06 14.06 0% 100% 35%

Total Tax Income 278.61 198.86 477.47 107.98 104.93 212.91 39% 53% 45%

II Non Tax Income

a) Water Charges 0.00 0.00 0.00 0.00 0.00 0.00 - - -

b) Other Fees 131.38 327.50 458.88 72.60 125.58 198.18 55% 38% 43%

Total Non Tax Income

131.38 327.50 458.88 72.60 125.58 198.18 55% 38% 43%


409.99 526.36 936.35 180.58 230.51 411.09 44% 44% 44%


- 182 -


Annexure IX - m: Key Financial Indicators

S.No Indicators Value Unit

A Resource Mobilization

1 Per Capita Income 1109 Rs. p.a

2 Sources of Funds

a) Share of Own Sources in Total Revenue Income (RI) 44.58 %

b) Share of Property Tax in Total Revenue Income 27.85 %

c) Share of Revenue Grants & Subsidies in Total RI 55.41 %

3 Growth in Revenue Income 16.87 % p.a.

4 Growth in Own Sources of Revenue Income 13.34 %

5 Per Capita Own Income 494 Rs. p.a

B Fund Application

1 Per Capita Expenditure 946 Rs. p.a

2 Uses of Funds

a) Share of Establishment Expenditure in Total RE 22.44 %

b) Share of O&M Expenditure in Total Revenue Expenditure 27.82 %

c) Share of Establishment Expenditure to Total RI 19.14 %

3 Growth in Establishment Expenditure 6.80 %

4 Growth in O&M Expenditure 35.33 %

5 Growth in Total Revenue Expenditure 20.37 % p.a.

C Liability Management

1 Per Capita Liability

a) Outstanding debt per Capita 701 Rs.

b) Outstanding Non-Debt Liability per Capita - Rs.

c) Total Outstanding Liability Per Capita 701 Rs.

2 As a Proportion of Property Tax Current Demand

a) Outstanding Debt as % of P.T Demand 227 %

b) Outstanding Non-Debt Liability as % of P.T Demand -

c) Total Outstanding Liability as % of P.T Demand 227 %

3 As a Proportion of Property Tax Own Revenue Income

a) Outstanding Debt as % of Own Revenue Sources 163 %


- 183 -


S.No Indicators Value Unit

b) O/s Non-Debt Liability as % of Own Revenue Sources -

c) Total Outstanding Liability as % Own Revenue Sources 163 %

4 Non-Debt Liability as % of Total Liability -

5 Debt Servicing Ratio (D/S Revenue Income) 18.31 %

D Performance Indicators

1 Operating Ratio 51.56 %

2 Growth in Per Capita Own Income 9.47 %

3 Growth in Per Capita Grant 15.63 %

4 Growth in Per Capita Total Revenue Income 12.59 %

5 Growth in Per Capita Establishment Expenditure 3.69 %

6 Growth in Per Capita O&M Expenditure 28.91 %

7 Growth in Per Capita Revenue Expenditure 15.68 %

E Efficiency Indicators

1 Tax Collection Performance (Current)

a) Property Tax 70 %

b) Profession Tax 95 %

c) Water Charges - %

d) Non Tax Income 100 %

2 No of P.T Assessment per Tax Collection Staff 2555 Nos.

3 Property Tax Demand per Assessment 1347/- Rs. p.a.

4 No. of Municipal Staff per 1000 Population 3.00 Nos.

5 Annual Revenue (Own Source) per Municipal Staff 1.12 Rs.lakh p.a.

6 Population per Residential P.T Assessment 7.11 persons

Annexure IX - n: Status of Loans as on 31.03.2007

S.No Particulars Loan

Taken Date of Credit

Loan O/s as 0n 31.3.2006

Amount Repaid Balance as 0n 31.3.2007

Principal

Interest Total

I TUFIDCO Schemes

a) Roads, Drains 16.00 July 1999 12.36 0.99 0.39 1.38 11.37

b) Water Supply 59.59 July 1999 43.39 5.40 2.48 7.88 37.99


- 184 -


c) Shelter Upgradation 31.31 1991 4.79 3.20 0.36 3.56 1.59

Total 106.90 60.54 9.59 3.23 12.82 50.95

II TNUIFSL Schemes a) Roads 60.00 April 1997 54.15 4.14 14.94 19.08 50.01

b) Solid Waste Management 15.00 April 1997 13.54 1.47 5.03 6.50 12.07

c) Storm Water Drains 60.00 April 1997 54.16 3.26 12.35 15.61 50.90

d) Street Lights 15.00 April 1997 13.54 1.47 5.03 6.50 12.07

e) Burial Ground 7.94 December 1990

3.85 0.75 0.41 1.16 3.10

f) Special Road Works 65.00 2000 65.00 - - 0.00 65.00

g) Water Supply 166.50 2000 166.50 - - 0.00 166.50

h) Roads 17.66 December

1991 8.85 1.86 1.12 2.98 6.99

Total 407.10 379.59 12.95 38.88 51.83 366.64 Net Total 514.00 440.13 22.54 42.11 64.65 417.59


- 185 -


Annexure X : Infrastructure Investment for CMA

A. Chennai Metropolitan Development Plan (CMDP)

The major objectives of the Plan are:

i. to identify the infrastructure needs in each sector and work out the projects

accordingly;

ii. to identify the quantum of finance for execution of these projects;

iii. to identify the source of finance;

iv. to prioritize the projects by working out the annual programme, medium term

programmes and long term programmes;

The Investment Program has been categorized into 3 categories viz. annual,

medium and long-term projects. The projects that need immediate investment have

been included in the annual program. The projects which have to be executed to

fulfill the infrastructure requirements in the medium term have been included in the

medium term programmes. Projects which require heavy investments with long

gestation periods have been included in the long term programmes.


- 186 -


B. Jawaharlal Nehru Urban Renewal Mission (JN-NURM)

The Government of India in 2005 has introduced the scheme called Jawaharlal

Nehru Urban Renewal Mission (JN-NURM) to encourage reforms driven, fast tract

planned development of identified cities with a focus on efficiency in urban

infrastructure / service delivery mechanisms, community participation and

accountability of urban local bodies towards citizens.


- 187 -


The Mission objectives are to ensure the following in the urban sector including the

basic services to urban poor:

a) Integrated development of infrastructure services in cities covered under the

Mission.

b) Establish linkages between asset creations and asset management for long

term project sustainability.

c) Ensure adequate funds to fulfill deficiencies in the urban infrastructural

services

d) Planned development of identified cities including peri urban areas, out

growths and urban corridors leading to dispersed urbanisation.

e) Scale up delivery of civic amenities and provision of utilities with emphasis on

universal access to urban poor.

f) Special focus on urban renewal program for the old city areas to reduce

congestion.

g) Provision of basic services to urban poor including security of tenure at

affordable prices, improved housing, water supply and sanitation and

ensuring delivery of other already existing universal services of the

Government for education, health and social security.

The Mission strategy includes preparing perspective plan called as City

Development Plan (CDP), preparing projects, leveraging of funds and incorporating

private sector efficiencies. The duration of the Mission is 7 years beginning from the

year 2005-06. The nodal agency for the State of Tamilnadu is TUFIDCO and the

concerned department at Government of Tamilnadu is Municipal Administration

and Water Supply. Chennai is one of the identified cities for Government of India

assistance under JN-NURM. To comply with the prerequisite of preparation of CDP,

the City development plan for Chennai as called as �Development Plan for Chennai

Metropolitan Area� was prepared and Government of India�s approval obtained.

Capital investment plan for the various sector proposed under JN-NURM are given

below.

Water Supply

The proposed investments for water supply projects for CMA is of the order of Rs.

6,321.00 Crores and the break up is presented in Table below


- 188 -


Sewerage The proposed investments for sewerage projects for entire CMA is of the order of Rs. 2,299.00 Crores and the break up is presented in Table below


- 189 -


Storm Water Drainage

The proposed investments for storm water drainage, macro drainage for CMA and

renovation of lakes is estimated Rs. 1,423.85 Crores and the break up is presented in

Table below

Solid Waste Management

The proposed investments towards solid waste management sector for CMA is of

the order of Rs. 847.81 Crores. The break up is presented in Table below

Traffic and Transportation

The proposed investments for traffic and transportation for CMA is of the order of Rs.

24,854.08 Crores. The break up is presented in Table below


- 190 -


Heritage and Recreation

The proposed investment towards Heritage and recreation projects is estimated Rs.

103.08 Crores and the break up is presented in Table below

Urban Basic Services for Poor

The proposed investments for urban poor population for entire CMA are estimated

Rs. 3,887.23 crore for the next seven years and break up is illustrated in Table below.


- 191 -


Parking Lots and Spaces

The proposed investment for civic amenities in CMA is estimated Rs. 43.85 Crores

and the break up is presented in Table below.

The total estimated cost of the projects for proposed is Rs. 44,779.92 Crores. The

summary of investments is given in the table below.


- 192 -


Annexure XII-a : Institutes in Tamil Nadu Providing Training Programs

The list of local training institutes (Other than the in �house institutes) is as follows;

S.N Name of

Institute

Contact Details Courses offered

1 Dr. Ambedkar

Institute of

Productivity

(Training

Institute of

National

Productivity

Council)

6, SIDCO Industrial Estate,

Ambattur, Chennai � 600 098

Ph: 044-2625 3144

Fax:044-2625 3122

Email: [email protected]

Human Resource related (e.g Problem

Solving Techniques, Leadership & Team

Building, Human Resource

Management, etc)

Engineering Courses (e.g. Total

Productive maintenance, Municipal

Solid Waste Management etc)

Environmental related courses (e.g.

Environmental impact assessment, Air

Pollution Management, etc)

Other courses e.g. Managing

Information Resources, ISO courses, etc.

Hazardous waste characterization and

disposal

2 Environmental

Training

Institute

76, Anna Salai, Guindy Chennai

� 600 032

Ph : 044-2235 3134/3159

Email:

[email protected]

Natural Disaster Management

Environmental Management, Hazard

Prevention methods

Avoidance of Pollution and

maintenance of good environment

3 Institution of

Road Transport

100 feet road, Taramani

Chennai � 600 113

Ph:044-22541730/1761

Fax:044-2254 1761

Email : [email protected]

Web: www.tn.nic.in/transport

Traffic Congestion Control

Traffic Control and Best Practices

4 Institution of

Labor Studies

3, Kamarajar Salai,

Chennai � 600 005

Ph: 044 -2844 0102/5778

Fax: 044-28440966

Labor Laws

Various national and state acts

Personnel and Industrial Acts

Personnel and Industrial Management

5 Institute of

Water Studies

Taramani, Chennai � 600 113

Ph: 044-22541580

Fax:044-2254 2360

Water Supply maintenance and

management

Computerized design of water supply

Water and Waste Water treatment

6 Institute of

Public Health

Poonamallee,

Chennai � 600 056

Ph: 044 2627 2062

Fax: 044-24335075

Public Health Reforms

Preventive measures to maintain

Public Health

Reproductive and Child Health

Induction Training to medical

Practitioners

Municipal Health Administration

Public Health Act

Malaria Control, Mosquito control

Prevention of Epidemics and Endemics



http://www.tn.nic.in/transport


- 193 -


Annexure XII-b : Installation of Wind Energy Generators

Installation of Wind Energy Generators for Commercial use of wind power

Detailed Project Cost

Installed capacity: 1.00 MW

(Rs. Lakh)

S.No. Description Rate/unit (Rs.Lakh)

Qty. or no. of units Amount

1 Purchase of land, land development and fencing charges

Lump sum amount

4.00 acres 4.00

2 Supply of WEG of 250 kW capacity each

100.00 4 400.00

3 Packaging , handling, loading , transportation, unloading and insurance cover till erection of WEGs

1.00 4 4.00

4 Foundation and other civil structures 3.00 4 12.00

5 Electrical and Transformers 33 KV 4.50 4 18.00

6 Erection and Commissioning 3.00 4 12.00

7 Other project cost including charges for infrastructure development @ Rs. 25.00 Lakh per MW for 1.00 MW

25.00 1 25.00

8

Cost of 33 KV OHT Line ( External and internal) 0.15 KM assumed approx. @ Rs. 6.50 lakh per KM or as actual

0.98

9 Total 475.98

Project on Installation of Wind Energy Generators for commercial production of wind power


Techno-economic parameters

(Amt. Rs)

S.N Parameters Value Remarks

1 Total Installed Capacity 1000 kW

2 No. of Machines 4 nos.

3 Wind Energy generation capacity of each machine 250 kW

4 TFO Rs. 47597500

5 Margin Money Rs. 11899375

6 % of TFO 25 %

7 Bank loan Rs. 35698125

8 % of TFO 75 %

9 RoI to be charged by financing bank on term loan 12% p.a.

10 Repayment period of term loan 5 year


- 194 -


11 Moratorium period 0 year

12 Annual Insurance Charges (Rs./annum) Rs. 300000 p.a.

throughout the economic life period of the WEG

13 Annual Administrative charges (Rs./annum) 250000

14 Depreciation rate 10% on civil structures 25%

of capital investment in Plant and Machiney on yearly basis WDV method

15 Operation and maintenance charges (Rs/unit/annum) 175000

16 Sales Tax benefit 16.67% p.a.

Sales Tax benefit only in case of direct sale of electrical power generated to SEB as per PPA arrangements.

6 equal installments over a period of 6 years (1/6th of the qualifying investment amount every year less cost of land and land development charges) at min. PLFof 12%

17 Transfer benefit ( in the event of 3rd party sale of power generated) 60% of total sales tax benefit per annum

18 Capital Subsidy 30%

( being 30% of the fixed capital investment; max. being Rs. 20,00,000 per wind farm with min. PLF of 12%)

19

Wheeling charges for 3rd party sale of energy generated in percentage of energy available to SEB for wheeling 2%

20 Tariff Rates of SEB for purchasing power from the power generators in Rs./ kWh 2.25

21

Sale price of electrical energy to industrial and commercial establishments wherein wheeling is allowed in Rs. / kWh of electrical energy generated. 4

22 Transmission losses

0% for 1st 3 years and 1% thereafter if the grid is 1%

available within a distance of 200 kms else 10% from 4th year of operation

23 Plant Load Factor (PLF) 29%

24 No. of days for which wind energy generation has 335

been considered per year in days

25 No. of days in a year the power grid is off for 30

repair and maintenance

26 No. of hours per day for which wind power 24 hrs

generation has been considerd (hr/day)

27 Income Tax payable

28 1st to 5th year of operation 0%

29 6th year to 10th year of operation 36.80%

30 11th year of operation onwards 36.80%


- 195 -


Calculation of Sale and Sales Tax Benefit


(Rs. Lakh)

S.N

Sale of Electricity ( Year wise) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

1 Capacityof WEG in kW 250 250 250 250 250 250 250 250 250 250

2 No. of WEG 4 4 4 4 4 4 4 4 4 4

3 Total power generation capacity of WEGs in kW

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

4 No. of days in year 335 335 335 335 335 335 335 335 335 335

5 No. of hours/day 24 24 24 24 24 24 24 24 24 24

6 Total installed wind energy generation capacity in kwh

8040000 8040000 8040000 8040000 8040000 8040000 8040000 8040000 8040000 8040000

7 PLF capacity of the installed machines (average)

29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00%

8 Actual energy generation capacity (kwh) 2331600 2331600 2331600 2331600 2331600 2331600 2331600 2331600 2331600 2331600

9 Net salable units generated less transmission losses 2331600 2331600 2331600 2308284 2308284 2308284 2308284 2308284 2308284 2308284

PLF of Capacity factor 0 0 0 0 0 0 0 0 0 0

10

@ 0% for year 1 to year 3 of operation; @1% from year 4 of operation onwards

11 Net salable units available for wheeling less wheeling losses @2%

2331600 2331600 2331600 2308284 2308284 2308284 2308284 2308284 2308284 2308284

12 Sale price of electrical energy (Rs/ unit ) or (Rs/ kwh)

2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25

Total sales realization of wind energy generated 5246100 5246100 5246100 5193639 5193639 5193639 5193639 5193639 5193639 5193639

13 Total sales realization (Rs. Lakhs)

52.46 52.46 52.46 51.94 51.94 51.94 51.94 51.94 51.94 51.94

14 Sales Tax benefit 78.68 78.68 78.68 78.68 78.68 78.68

6 equal installments over a period of 6 years (1/6th of the qualifying investment amount every year less cost of land and land development charges) at min. PLFof 12%.

Income and Expenditure Statement


( Rs. Lakh)

S.N Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

1 Income from sale of electricity sans wheeling losses

52.461 52.461 52.461 51.936 51.936 51.936 51.936 51.936 51.936 51.936

2 Other income

2.a. Sales tax benefit 78.678 78.678 78.678 78.678 78.678 78.678 0.000 0.000 0.000 0.000


- 196 -


for 6 years

3 Total income 131.139 131.139 131.139 130.615 130.615 130.615 51.936 51.936 51.936 51.936

4 Expenditure

5 Insurance charges 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000

6 Administrative Expenses 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500

7 Operation and maintenance charges

7.000 7.000 7.000 7.000 7.000 7.000 7.000 7.000 7.000 7.000

8 Total Expenditure 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500

9 Gross Operational Profit

118.639 118.639 118.639 118.115 118.115 118.115 39.436 39.436 39.436 39.43

Profitability statement


(Rs. Lakh)

S.N Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

1 Gross Profit ( PBDIT) 118.639 118.639 118.639 118.115 118.115 118.115 39.436 39.436 39.436 39.436

2 Depreciation 109.944 82.638 62.140 46.751 35.195 26.514 19.992 15.089 11.403 8.630

3

Profit after depreciation but before interest and taxes

8.695 36.001 56.499 71.364 82.920 91.601 19.445 24.347 28.033 30.806

4 Interest on term loan 42.838 34.270 25.703 17.135 8.568 0.000 0.000 0.000 0.000 0.000

5 Profit after depreciation and interest but before tax

-34.142 1.731 30.796 54.228 74.353 91.601 19.445 24.347 28.033 30.806

6 Provision for taxation 0.000 0.000 0.000 0.000 0.000 33.709 7.156 8.960 10.316 11.337

7 Profit after depreciation, interest and taxes (PAT)

-34.142 1.731 30.796 54.228 74.353 57.892 12.289 15.387 17.717 19.470

8 Add back

9 Depreciation 109.944 84.369 92.937 100.980 109.547 84.406 32.281 30.477 29.120 28.100


11 Surplus available for repayment

118.639 120.370 149.435 172.343 192.467 142.297 44.570 45.864 46.837 47.569

12 Calculation for debt service coverage ratio

13 Coverage available 118.639 120.370 149.435 172.343 192.467 142.297 44.570 45.864 46.837 47.569

14 Calculation for debt to be repaid

15 Principal amount of term loan

71.396 71.396 71.396 71.396 71.40 0.000 0.000 0.000 0.000 0.000


17 Total debt 114.234 105.666 97.099 88.531 79.964 0.000 0.000 0.000 0.000 0.000

18 DSCR 1.039 1.139 1.539 1.947 2.407 0.000 0.000 0.000 0.000 0.000


- 197 -


19 Value 1 1 1 1 1 0 0 0 0 0

20 Avg. DSCR 1.61 :1

21 Weighted DSCR 2.23 : 1

Schedule for calculation of depreciation


(Rs. Lakh)

Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Civil Structures

Opening value of civil structures

12.000 10.800 9.720 8.748 7.873 7.086 6.377 5.740 5.166 4.649

Annual depreciation 1.200 1.080 0.972 0.875 0.787 0.709 0.638 0.574 0.517 0.465

Book Value 10.800 9.720 8.748 7.873 7.086 6.377 5.740 5.166 4.649 4.184

Plant and machinery and electricals

Opening value of plant and machinery and electricals

434.975 326.231 244.673 183.505 137.629 103.222 77.416 58.062 43.547 32.660

Annual depreciation 108.744 81.558 61.168 45.876 34.407 25.805 19.354 14.516 10.887 8.165

Book Value 326.231 244.673 183.505 137.629 103.222 77.416 58.062 43.547 32.660 24.495

Total annual depreciation 109.944 82.638 62.140 46.751 35.195 26.514 19.992 15.089 11.403 8.630

Residual value 12.814

Repayment schedule


(Rs. Lakh)

Repayment

Year Year No.

Loan o/s. at the beginning of the year

Gross surplus available

Principal Interest Total outgo

Loan o/s at the end of the year

Net surplus available

DSCR Value Avg. DSCR

Equal Annual Installment

Year 1 356.981 118.639 71.396 42.838 114.234 285.585 4.405 1.04 1 1.61 71.39625

Year 2 285.585 120.370 71.396 34.270 105.666 214.189 14.704 1.14 1

Year 3 214.189 149.435 71.396 25.703 97.099 142.793 52.337 1.54 1

Year 4 142.793 172.343 71.396 17.135 88.531 71.396 83.812 1.95 1

Year 5 71.396 192.467 71.396 8.568 79.964 0.000 112.503 2.41 1

Year 6 0.000

Total 8.07 5

Year 8 0.000 71.396 0.000 71.396 -71.396 0.00 0


- 198 -


Calculation of IRR, BCR and NPW


(Rs. Lakh)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

1 Capital Cost 475.975 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

2 Recurring Cost 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500

3 Total Cost 488.475 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500

4 Benefits (net tax) 131.139 131.139 131.139 130.615 130.615 96.906 44.781 42.977 41.620 40.600

5 Book Value 12.814

6 Total benefits 131.139 131.139 131.139 130.615 130.615 96.906 44.781 42.977 41.620 53.414

7 Net Benefits -357.336 118.639 118.639 118.115 118.115 84.406 32.281 30.477 29.120 40.914

8 Discounting Factor 15.00% p.a.

9 NPW @ 15% D.F.

333.369 Lakh

10 BCR 1.55 :1

11 IRR 21.92%


- 199 -


Annexure XIII - a: Details of Depreciation Statement for Assets as on 31.03.2007 - Revenue

(Rs. in lacs)

S.No. Item Gross Block Depreciation Net Block

1 Land 64.50 - 64.50

2 Buildings 396.39 80.44 315.95

3 Subway & Causeways 0.00 - 0.00

4 Bridges & Flyovers 0.00 - 0.00

5 Drains 521.70 312.93 208.77

6 Culverts 44.29 38.34 5.95

7 Heavy Vehicles 125.68 119.27 6.41

8 Light Vehicles 17.01 15.19 1.82

9 Other Vehicles 4.47 2.84 1.63

10 Furniture, Fixtures & Office Equipments 22.51 15.72 6.79

11 Electrical Installation Lamps 54.93 35.20 19.73

12 Electrical Installation Others 0.00 - 0.00

13 Tools & Plant 23.68 10.26 13.42

14 CC Roads & Payments 102.16 64.59 37.57

15 BT Roads 1469.17 1100.30 368.87

16 Other Roads 40.61 35.25 5.36

17 Project in Progress 38.00 - 38.00

18 Project in Progress - Grants 0.00 - 0.00

18 Ground water & Bore well 0.00 - 0.00

20 Hand Pumps 0.00 - 0.00

21 Instruments in Hospital 0.32 0.32 0.00

Total 2925.42 1830.65 1094.77


- 200 -


Annexure XIII - b: Details of Depreciation Statement for Assets as on 31.03.2007 � Water

Supply (Rs. in Lacs)

S.No. Item Gross Block Depreciation Net Block

1 Land 13.99 - 13.99

2 Buildings 32.17 10.19 21.98

3 Heavy Vehicles 14.38 14.38 0.00

4 Light Vehicles 0.00 - 0.00

5 Electrical Installation 0.00 - 0.00

6 Tools & Plant 34.44 17.00 17.44

7 Public Fountains 0.00 - 0.00

8 Water Supply Head works, OHT etc. 202.04 31.57 170.47

9 Deep Bore Wells / Ground Water Well 197.10 51.45 145.65

10 Hand Pumps - India Mark II 106.41 40.21 66.20

11 Water Supply Pipe lines 89.59 11.30 78.29


13 Projects in Progress - Govt. Grants 0.00 - 0.00

Total 690.12 176.10 514.02

Annexure XIII - c: Details of Depreciation Statement for Assets as on 31.03.2007 - Education

(Rs. in Lacs)

S.No Item Gross Block Depreciation Net Block

1 Land 65.51 - 65.51

2 Buildings 107.84 24.74 83.10

3 Furnitures, Fixtures & Office Equipments 0.00 - 0.00


5 Project in Progress - Govt.grant 0.00 - 0.00

Total 173.35 24.74 148.61

madhava ram

Documents

business plan context

g e s t

action plan

vision madhavaram

capital investment plan

u s t e r c

business plancity corporate

e longitudes