Madhava Ram

Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL)
Final Report
for
City Corporate cum Business Plan
S T A G E IV CLUSTERV
Submitted by:
for
Madhavaram Town
(Tiruvallur District)
SEPTEMBER 2009
Voyants Solutions Pvt. Ltd

Level 4, Diamond Dune 323, P.H. Road, Chennai 600 029 Tele: 044 4269 8584 Fax: 044 2668 1180 E-mail: vsplchennai@voyants.in
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 Proximity to Chennai and accessibility to Weakness High rate of land conversion due to rapid urbanization Area and Environmental pollution due to untreated
surrounding urban centers Part of Chennai Metropolitan
Headquarters of Ponneri Taluk Located near Red hills, major source water supply to CMA and Rettai Eri (Minor source) Located along Great Northern Trunk Road
industrial effluents
Lack of public utility Infrastructure
connecting the city with Nellore - Kolkata and Traffic congestion due to encroachments on other urban nodes road Serves as hub for lorry transport in the city Presence of 'Central Dairy'- Milk depot Presence of Industrial estates in & around the town Existence of Directorate of Research of Tamil Veterinary and Animal Sciences University and Horticultural Training Centre. Opportunities Development of international class connectivity Threat Lack of adequate water supply High levels of population growth due to Availability of land for future development Establishment of Industrial parks and industrial estates - TALCO Effort to enhance city landscape and recreational spaces Access for health facilities to Chennai ' the health capital of the country'
Source : Feedback from stakeholders meeting and analysis.
Encroachments on roads and water bodies.
High percentage of slum population
immigration Threat to water bodies - sand quarrying, lorry cleaning and Brick Kilns Town requires significant investments in basic infrastructure Competing economic activities in the
adjoining areas
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
Estimated cost in S.N 1 2 Projects lakhs

Water supply Improvement Sewerage Phase I Phase II
6000.00 5920.00 3600.00 2320.00 3678.00 4823.00 2777.00 100.00 282.00 200.00 60.00 299.00 230.00 24.00 2350.00 59.00 5.00 100.00 200.00
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Storm water drain Solid Waste Management Roads and Bus stand Street light Education Medicare Public Convenience Improvement of Parks Market Burial ground improvement Slum E-Governance and system improvement in GIS platform Property mapping Municipal office building Improvement Wind mill
TOTAL
27107.00
4.
FINANCIAL PERFORMANCE 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. 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
The summary of the financial status of Madhavaram municipality is as follows:
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. i. Reforms in resource mobilization 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, Madhavarams 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 Borrowing Capacity Investment Capacity (BC/0.04) Investment Requirement Sustainable Investment Capacity % - IC / IR Base case Scenario 1 Rs. 2480.20 lacs Rs. 9920.80 lacs Sustainable Scenario 2 Rs. 27107.00 lacs -
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 Particulars Total Priority Funding By Physical Infrastructure Facilities L:G:M Water Supply Improvements to Water Supply 6000.00 A 42:50:8 Street Lights Proposed new lights 38.00 A 100% ULB Retrofitting & energy saving devices 56.00 A ESCO Solar Lights 6.00 A 0:50:50 Social Infrastructure Facilities Slum Improvement Improvements to Slums 2350.00 A&B 100% Grant Education Improvements to Schools 282.00 A&B 100% ULB Parks & Playgrounds Improvement of parks 299.00 B&C 0:50:50 Burial Ground / Crematorium Improvements to Burial Ground 24.00 B 0:90:10 Medicare Improvement to maternity centre 200.00 A 0:50:50 Public Convenience Public Convenience 60.00 B 0:80:20 Market Market Construction 205.00 A 90:0:10 Parking Area Development 25.00 A BOLT Other Projects Other Projects Municipal Office Building Improvement 100.00 B 0:50:50 Wind Mill 200.00 B 100% ULB E-Governance E-Governance & System Improvement in GIS 59.00 B 0:90:10 Property Mapping 5.00 B 100% ULB Total 9909.00
S.No. A I a) VI a) b) c) B I a) II a) III a) IV a) V a) VI a) VII a) b) C I a) b) II a) b)
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
T T AB LE OF FC ON NT TE EN S TA BL EO CO NT TS 1 1 1.1 1.2 1.3 1.4 1.5 1.5.1 2 2 B O B CK GR RO UN ND DA N D ME TH HO DO OL OG AL FR A EW OR RK TH ST Y ............... 1 10 BA AC KG OU AN ND DM ET OD L GI IC CA LF RA AM ME WO KO OF FT HE ES TU UD DY 0 BACKGROUND ....................................................................................................................... 10 OBJECTIVES ............................................................................................................................. 10 SCOPE OF WORK: .................................................................................................................. 10 STAGE III: DRAFT FINAL STAGE .............................................................................................. 11 PRESENTATION AND DISCUSSION WITH REVIEW COMMITTEE ......................................... 12 DISCUSSION WITH STAKEHOLDERS ....................................................................................... 13 T O T OW W PR RO E........................................................................................................................................................................... 1 14 T WN NP OF FI IL LE 4
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 3 E H E O IC CD D VE LO PM EN AN HY YS AL PL NN NI IN NG G.......................................................... 1 18 3 EC CO ON NO OM MI DE EV EL OP ME NT TA ND DP P SI IC CA LP LA AN 8 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 4 S D T A S TA AK HO OL L DE E S CO T AT 24 4 ST KE EH L ER RS SC ON NS SU UL L T TI IO ON NS S ................................................................................................................... 2 4 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 5 V V NA ND DS ST TR AT GI IC CP P LA AN N 28 5 VI IS SI IO ON AN RA TE EG PL N................................................................................................................................ 2 8 5.1 TOWN LEVEL SWOT ................................................................................................................. 28 5.2 VISION FORMULATION ........................................................................................................... 29 5.3 STRATEGY OPTION FOR ECONOMIC DEVELOPMENT....................................................... 29 6 H O H O LU IN NG GS SL S .................................................................................................................................. 3 33 6 H OU US SI IN NG GI IN NC CL UD DI LU UM MS 3 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 7 I N I N TI IT TU TI NA AL L AM EW RK K 35 7 I NS ST UT IO ON LF FR RA ME WO OR K................................................................................................................................................................ 3 5
-iVoyants Solutions Private Limited
7.1 7.2 7.2.1 7.2.2 7.2.3 7.2.4 7.2.5 7.3 7.4 7.5 7.6 7.7 7.8 8 8 8.1 8.1.1 8.1.2 8.1.3 8.1.4 8.1.5 8.1.6 8.2 8.2.1 8.2.2 8.2.3 8.3 8.3.1 8.3.2 8.3.3 8.3.4 8.4 8.4.1 8.4.2 8.4.3 8.4.4 8.4.5 8.5 8.5.1 8.5.2 8.5.3 8.5.4 8.6 8.6.1 8.6.2 8.6.3 8.6.4
ELECTED COUNCIL ................................................................................................................. 35 EXECUTIVE WING .................................................................................................................... 36 GENERAL ADMINISTRATION .......................................................................................................... 36 HEALTH SECTION .......................................................................................................................... 37 ENGINEERING SECTION................................................................................................................. 37 TOWN PLANNING SECTION ........................................................................................................... 37 ACCOUNTS SECTION .................................................................................................................... 37 CITIZENS CHARTER ................................................................................................................. 38 INFORMATION CENTRE .......................................................................................................... 38 STAFF STRENGTH POSITION AND VACANCY POSITION .................................................... 38 ADDITIONAL STAFF REQUIREMENT: ...................................................................................... 40 INSTITUTIONAL FRAMEWORK FOR SERVICE DELIVERY ...................................................... 40 ORGANIZATION MANAGEMENT .......................................................................................... 41 U U R BA A RA ST TR RU TU EA ND DS RV IC CE S ............................................................................................. 4 42 UR RB AN NI IN NF FR AS UC CT UR RE AN SE ER VI ES 2 WATER SUPPLY ........................................................................................................................ 42 EXISTING SCENARIO FOR WATER SUPPLY........................................................................................ 42 STORAGE AND DISTRIBUTION ......................................................................................................... 44 PERFORMANCE INDICATORS ......................................................................................................... 44 ISSUES .......................................................................................................................................... 44 DEMAND SUPPLY SCENARIO ......................................................................................................... 45 PROPOSAL .................................................................................................................................. 45 SEWERAGE ............................................................................................................................... 45 SEWERAGE .................................................................................................................................. 45 ISSUES .......................................................................................................................................... 46 PROPOSAL BY M UNICIPALITY ........................................................................................................ 46 STORM WATER DRAINAGE .................................................................................................... 46 EXISTING CONDITION OF STORM WATER DRAINAGE ...................................................................... 46 PERFORMANCE INDICATORS ......................................................................................................... 47 ISSUES IN STORM WATER DRAINAGE AND HOUSEHOLD DRAINAGE .................................................. 47 PROPOSAL .................................................................................................................................. 47 SOLID WASTE MANAGEMENT ............................................................................................... 47 EXISTING SITUATION ...................................................................................................................... 47 PRIMARY COLLECTION ................................................................................................................. 48 SECONDARY COLLECTION ........................................................................................................... 49 ISSUES .......................................................................................................................................... 49 PROPOSAL .................................................................................................................................. 50 STREET LIGHTING ..................................................................................................................... 50 STATUS OF STREET LIGHTING .......................................................................................................... 50 PERFORMANCE INDICATORS ......................................................................................................... 50 ISSUES .......................................................................................................................................... 50 PROPOSAL .................................................................................................................................. 51 ROAD ....................................................................................................................................... 51 TOWN LEVEL ROAD NETWORK AND HIERARCHY ............................................................................ 51 PARKING ..................................................................................................................................... 51 TRUCK TERMINUS .......................................................................................................................... 52 PERFORMANCE INDICATORS ......................................................................................................... 52
- ii Voyants Solutions Private Limited
8.6.5 8.6.6 8.6.7 8.7 8.7.1 8.7.2 8.7.3 8.7.4 8.7.5 8.7.6 8.7.7 8.7.8 8.7.9 8.7.10 8.7.11 8.7.12 8.7.13 8.7.14 8.7.15 9 9 9.1 9.2 9.3 9.3.1 9.3.2 9.3.3 9.3.4 9.3.5 9.3.6 9.3.7 9.3.8 9.4 9.4.1 9.4.2 9.4.3 9.4.4 9.5 9.6 9.7 1 0 10 10.1 10.1.1 10.1.2 10.1.3 10.1.4 10.1.5
PUBLIC TRANSPORT SYSTEM........................................................................................................... 52 ISSUES .......................................................................................................................................... 52 PROPOSALS ................................................................................................................................. 52 SOCIAL INFRASTRUCTURE FACILITIES ................................................................................... 53 EDUCATIONAL FACILITIES .............................................................................................................. 53 EXISTING SCENARIO IN EDUCATIONAL FACILITIES ............................................................................ 53 ISSUES IN EDUCATIONAL SECTOR ................................................................................................... 53 PROPOSAL .................................................................................................................................. 53 HEALTH FACILITIES ........................................................................................................................ 53 ISSUES .......................................................................................................................................... 54 PROPOSAL .................................................................................................................................. 54 PUBLIC CONVENIENCE ................................................................................................................. 54 PROPOSAL .................................................................................................................................. 55 M ARKET FACILITIES........................................................................................................................ 55 BURIAL GROUND .......................................................................................................................... 56 ISSUES .......................................................................................................................................... 56 PROPOSAL .................................................................................................................................. 56 PARKS AND PLAYGROUND FACILITIES ............................................................................................. 56 PROPOSAL .................................................................................................................................. 57 M P M I P AL FI NC C 58 MU UN NI IC CI I PA LF IN NA AN CE E.......................................................................................................................................................... 5 8 OVERVIEW ............................................................................................................................... 58 GENERAL DETAILS ................................................................................................................... 58 RECEIPTS ................................................................................................................................... 58 PROPERTY TAX ............................................................................................................................. 58 PROFESSION TAX .......................................................................................................................... 60 ASSIGNED REVENUES.................................................................................................................... 61 REVENUE DEVOLUTION FUNDS IN AID OF REVENUE EXPENDITURE ...................................................... 62 WATER CHARGES ........................................................................................................................ 62 DRAINAGE CHARGES................................................................................................................... 63 SERVICE CHARGES & FEES ........................................................................................................... 63 INCOME FROM PROPERTIES & OTHER INCOME............................................................................... 63 EXPENDITURE ........................................................................................................................... 64 ESTABLISHMENT EXPENSES ............................................................................................................. 64 O&M EXPENSES WATER SUPPLY ................................................................................................ 65 O&M EXPENSES STREET LIGHTS & OTHERS .................................................................................. 65 ADMINISTRATION & OTHER EXPENSES ............................................................................................ 66 SUMMARY OF FINANCES ....................................................................................................... 66 KEY FINANCIAL INDICATORS ................................................................................................ 70 MEASURES TO BE TAKEN FOR IMPROVING COLLECTION EFFICIENCY ............................ 72 C O I R C PI IT TA LI ES EN N T E SF O EN IF FI IE ED P RO EC TS 75 CA AP AL IN NV VE ST TM ME NT TN NE EE ED DS F OR RI ID DE NT T DP P OJ JE CT S............................................. 7 5 PHYSICAL INFRASTRUCTURE - IMPROVEMENT NEEDS ...................................................... 75 WATER SUPPLY:............................................................................................................................ 75 SEWERAGE SYSTEM....................................................................................................................... 76 STORM WATER DRAINAGE ............................................................................................................ 76 SOLID WASTE M ANAGEMENT ....................................................................................................... 77 STREET LIGHT ................................................................................................................................ 79
- iii Voyants Solutions Private Limited
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 M ARKET ...................................................................................................................................... 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 1 1 R I R ND DM MI IG GA TI NM EA SU UR RE S................................................................................................................... 9 91 11 RI IS SK KA AN IT T AT IO ON ME AS ES 1 11.1 PROJECT RISK AND MITIGATION MEASURES ...................................................................... 91 1 R 2 R FO OR RM SA ND DA AC TI IO ON NP AN 95 12 RE EF MS AN CT PL LA N................................................................................................................................... 9 5 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 M ANAGEMENT .............................................................................. 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 M UNICIPAL SERVICE DELIVERY ................................................................................. 117 1 A 3 A TM AN GE EM EN PL N ......................................................................................................................................1 11 18 13 AS SS SE ET MA NA AG ME NT TP LA AN 8 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 1 4 F F IN NA AN IA AL AN RA TI LA AN 12 23 14 FI NC CI LA ND DO OP PE ER AT IN NG GP PL N..................................................................................................................1 3 14.1 14.2 14.3 14.4 14.5 14.5.1 14.5.2 14.5.3 CAPITAL INVESTMENT PLAN ................................................................................................ 123 OTHER PROJECTS AND ON GOING PROJECTS ............................................................... 125 MEANS OF FINANCE ............................................................................................................ 126 FINANCIAL SUSTAINABILITY ................................................................................................. 132 BASIC ASSUMPTIONS FOR PROJECTIONS : ....................................................................... 132 INCOME .................................................................................................................................... 133 EXPENDITURE ............................................................................................................................. 138 COLLECTIONS ............................................................................................................................ 140
- iv Voyants Solutions Private Limited
ANNUITY FACTOR ................................................................................................................. 141 PROJECT CASH FLOWS AND FOP RESULTS : .................................................................... 141 IMPACT OF POTENTIAL IMPROVEMENTS ........................................................................... 149 SCENARIO I - ESTIMATION OF INVESTMENT CAPACITY ON AS IS WHERE BASIS ......... 150 SCENARIO II - ESTIMATION OF BORROWING AND INVESTMENT CAPACITY WITH PROJECTS .............................................................................................................................. 150 14.11 KEY INDICATORS OF SCENARIO II ...................................................................................... 151 14.12 INFERENCE ............................................................................................................................. 151 A U NN NE EX U E .........................................................................................................................................................................................................1 15 54 AN X UR RE 4
14.6 14.7 14.8 14.9 14.10
-vVoyants Solutions Private Limited
L LI OF FF ES IS ST TO FI IG GU UR RE S
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
- vi Voyants Solutions Private Limited
L LIIS TO OF TA AB S ST FT BL LE ES 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
- vii Voyants Solutions Private Limited
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
- viii Voyants Solutions Private Limited
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
- ix Voyants Solutions Private Limited
Chapter - 1
B A BA AC CK KG GR RO OU UN ND D AN ND D F FR RA AM ME EW WO OR RK KO OF FT TH HE ES ST TU UD DY Y
M ME ET TH HO OD DO OL LO OG GIIC CA AL L
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
- 10 Voyants Solutions Private Limited
Chapter - 1
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
Chapter - 1
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.
Chapter - 1
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 NGOs 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.
Stakeholders Meeting Further, in order to collect ward wise issues, proformae were distributed during the meetings and the councillors and NGOs 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, NGOs and Engineers, infrastructure requirements for the present and future were arrived. Accordingly proposals have been formulated which is given in the following chapters.
Chapter - 2
T TO OW WN NP PR RO OF FIIL LE E
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.
Chapter - 2
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.
Chapter - 2
Final Report: Madhavaram Municipality Table 2-1: Urban Population Share in the Town and the Region NAME Total Population 27,483,998 27,38,866 14,92,034 76,093 % Distribution of Urban Population w.r.t District 100 54.48 2.78
Tamil Nadu Urban Tiruvallur District Tiruvallur District Urban Madhavaram (M)
Source: Primary Census Abstract of Tamil Nadu, Census of India - 2001
2.3.2 POPULATION GROWTH

The towns 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 1971 1981 1991 2001 Population 21054 32767 49,256 76,793 Variation 11713 16489 27537 Growth rate in % 5.56 5.03 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 2011 2021 2031 2041
Source: Estimated
Population 90306 104803 125090 140000
Growth Rate in% 1.60 1.93 1.19
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:
Chapter - 2
Final Report: Madhavaram Municipality Table 2-4: Comparative Sex Ratio NAME Sex Ratio 987 982 971 952 957 Sex Ratio 0-6 942 955 957 955 966 Sex Ratio SC 999 1001 994 979 1008 Sex Ratio ST 980 997 1005 1033 1133
Tamil Nadu Tamil Nadu Urban Tiruvallur District Tiruvallur District Urban Madhavaram (M)
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 Literacy Rate NAME Total Tamil Nadu Tamil Nadu Urban Tiruvallur District Tiruvallur District Urban Madhavaram (M) 73.45 82.53 76.94 84.98 85.04 Male 82.42 88.97 85.26 91.12 91.03 Female 64.43 75.99 68.39 78.53 78.78
Chapter - 3
E EC CO ON NO OM MIIC C P PL LA AN NN NIIN NG G
D DE EV VE EL LO OP PM ME EN NT T
A AN ND D
P PH HY YS SIIC CA AL L
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, nonmetallic 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 Tamil Nadu Tamil Nadu Urban Tiruvallur District Tiruvallur District Urban Madhavaram (M) Total Population 62405679 27483998 2754756 1500082 76093 Total Workers 27878282 10318514 1037097 503633 24228 WFPR 44.67 37.54 37.65 33.57 31.84 % Main Workers 85.22 91.75 82.06 89.79 87.97 % Marginal Workers 14.78 8.25 17.94 10.21 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.
Chapter - 3
Final Report: Madhavaram Municipality Table 3-2: classification of Main Workers in Madhavaram Town Name Main Worker 23757783 9467240 850994 452231 21314 Cultivators 19.95 3.41 9.30 1.30 1.02 Agricultura l Laborers 25.52 9.11 18.66 2.17 0.71 Workers in Household Industry 5.31 6.05 4.64 3.86 1.56 Other Workers 49.23 81.43 67.39 92.67 96.71
Tamil Nadu Tamil Nadu Urban Tiruvallur District Tiruvallur District Urban Madhavaram (M)
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.
Chapter - 3
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 MUDPI (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.
Chapter - 3
Figure 3-2: CMA Existing Land use 2006 - Madhavaram
MADHAVARAM
Figure 3-3: Proposed Land use 2026 - Madhavaram

Source: Second master plan CMA
Chapter - 3
Figure 3-4: Town Map Madhavaram municipality
Chapter - 3
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.
Chapter - 4
S T ST TA AK KE EH HO OL LD DE ER RS SC CO ON NS SU UL LT TA A TIIO ON NS S
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 holders 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 stakeholders 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.
Chapter - 4
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 Holders Survey
120 100 100 80 80 70 60 60 40 20 0 UGD Transport Street Parking Solid Strom Lighting Facilities waste Water Disposal Drainage Drinking Road Water 50 60 90 80
Figure 4-1: Priorities for Physical Infrastructure
*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:
Based on City Opinion Survey findings, Stakeholders have given priority to the sectors related to Social infrastructure on the following order: Schools and Colleges Health facilities Parks, Playfields Public transport Market Public Toilet Community hall
Chapter - 4
100 90 90 80 80 70 60 60 50 40 40 30 20 10 0 Market Public Toilet Parks Community Health Schools Public and Hall Transport Facilities and Recreation Colleges 40 75 90
Figure 4-2: Priorities for Social Infrastructure

Source: From Stake Holders Survey
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
Based on City Opinion Survey findings, Stakeholders have given priority to the Environmental Issues on the following order: River/Lake Water Pollution Open drainage Land Pollution Air pollution Noise Pollution
Chapter - 4
120 100 80 65 60 40 25 20 10 0 0 Open Drain Noise Pollution Land Pollution Water Pollution Air Pollution River 80 100
Figure 4-3: Priorities for Environmental Protection
Source: From Stake Holders Survey
Chapter - 5
V T VIIS SIIO ON NA AN ND DS ST TR RA A TE EG GIIC CP PL LA AN N
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 Proximity to Chennai and accessibility to surrounding urban centers Part of Chennai Metropolitan Area and Headquarters of Ponneri Taluk Located near Red hills, major source water supply to CMA and Rettai Eri (Minor source) Located along Great Northern Trunk Road connecting the city with Nellore - Kolkata and other urban nodes Serves as hub for lorry transport in the city Presence of 'Central Dairy'- Milk depot Presence of Industrial estates in & around the town Existence of Directorate of Research of Tamil Veterinary and Animal Sciences University and Horticultural Training Centre. Opportunities Development connectivity of international class Lack of adequate water supply High levels of population growth due to immigration Threat to water bodies - sand quarrying, lorry cleaning and Brick Kilns Town requires significant investments in basic infrastructure Encroachments on roads and water bodies. High percentage of slum population Threat Weakness High rate of land conversion due to rapid urbanization Environmental pollution due to untreated industrial effluents Lack of public utility Infrastructure
Traffic congestion due to encroachments on road
Availability of land for future development Establishment of Industrial parks and industrial estates - TALCO Effort to enhance recreational spaces city landscape and
Chapter - 5 Access for health facilities to Chennai ' the health capital of the country'
Final Report: Madhavaram Municipality Competing economic adjoining areas activities in the
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.
Chapter - 5
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. 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. 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
3.
4.
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,
Chapter - 5
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,
Chapter - 5
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.
Chapter - 6
6
6.1
H HO OU US SIIN NG G IIN NC CL LU UD DIIN NG GS SL LU UM MS S

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
SemiPermanent 9.75
Temporary 11.77
Permanent 78.48
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
Chapter - 6
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
IIN NS ST TIIT TU UT TIIO ON NA AL LF FR RA AM ME EW WO OR RK K
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.
Chapter 7
MADHAVARAM MUNICIPALITY
Executive Body
Elected Body
Commissioner
Chairman
GENERAL: Financial Administration and Budget & Accounts
ENGINEERING: Water Supply, Road laying and Street lights
Vice Chairman
PUBLIC HEALTH: Sanitation, Drainage Public Health,
REVENUE: Tax & Non Tax Collection
Ward Councilor
Birth & death registration TOWN PLANNING: Planning, Designing and Approval
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
Chapter 7
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.
Chapter 7
7.3
CITIZENS 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 1 2 3 4 5 6 7 8 9 10 11 12 Name of the Post (Service wise) General section Manager Revenue Officer Accounts officer (A.D. in the cadre of LF Accounts) Accountant Assistant Accountant Assistants Revenue Inspector Market Superintendent Junior Assistant Cashier Typist Revenue Assistant (Bill Collector) 1 1 0 1 2 2 1 1 8 1 2 10 1 0 0 1 2 1 1 0 6 0 1 4 Sanctioned Staff strength Present staff strength
Chapter 7 Sl. No 13 14 15 16 17 18 19
Final report: Madhavaram Municipality Sanctioned Staff strength 0 1 8 1 1 1 2 44 Engineering Section 1 2 1 1 1 3 4 4 17 Health Services 1 2 3 6 Health Service (Non Centralized) 3 1 5 6 1 3 164 1 5 3 192 2 0 0 0 0 Present staff strength 0 1 3 1 1 1 1 25 1 0 1 1 0 3 4 4 14 1 1 3 5 1 0 9 7 0 1 131 1 5 3 158 2 0 0 0 0
Name of the Post (Service wise) Store Keeper Record Clerk Office Assistant Community Organiser Assistant Organiser Data Entry Operator Night Watchman (Office) Total
1 2 3 4 5 6 7 8
Municipal Engineer Gr-I Assistant Engineer / Junior Engineer (Public Works / Water Supply) Draughtsman Work Inspector Tap Inspector Driver Wire man Helper Total
1 2 3
Sanitary Officer Health Visitor Sanitary Inspector Total
1 2 3 4 5 6 7 8 9 10
Maternity Assistant (Material & Child Health) Field Assistant Driver (Lorry, Motor or Tractor) Sanitary Supervisor Public Health Peon Ayah (Maternity and Child health) Sanitary Workers (All type) Clerk Multipurpose Health worker Helper Total
Maternity Centre , General Dispensary, Ayurvedic / Siddha Dispensary 1 2 3 4 5 Medical Officer Pharamacist FNA/MNA Night Watchman Sanitary Worker
Chapter 7 Sl. No
Final report: Madhavaram Municipality Sanctioned Staff strength 2 Town Planning Section 1 1 1 3 Total 264 Present staff strength 2 0 1 1 2 206
Name of the Post (Service wise) Total
1 2 3
Town Planning Officer Grade - II Town Planning Inspector Chainman Total
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 1 2 3 Name of the Post Accountant for Infrastructure project Office Assistant Revenue Inspector Assistant Engineer/ Junior Engineer (WS, UGSS, UIDSSMT & IHSDP Projects) Maternity Assistant Overseers (UIDSSMT & IHSDP Projects) Town planning officer Total Section General General General Engineering Public health Engineering Town planning No. of Personnel 1 1 1 2 1 1 1 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 1 Services Master plan Updation preparation and Planning and design DTCP Implementing agency Municipality
Chapter 7 S.No 2 3 4 5 6 7 8 9 10 11 12 Services Water Supply Sewerage Drainage Solid waste Management Roads and Highways Bridges and water bodies Street Lighting Parks and playfields Health and Education Slum Development Environmental protection
Final report: Madhavaram Municipality Planning and design TWAD TWAD ULB ULB/CMA/TNUIFSL Highways dept / Municipality Municipality / CMA/PWD Municipality/TNUIFSL Municipality GoTN / Municipality Municipality/ TNSCB TNPCB Implementing agency TWAD TWAD ULB ULB Highways dept Municipality Municipality / PWD Municipality Municipality GoTN / Municipality Municipality
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.
Chapter 8
8
8.1
U UR RB BA AN N IIN NF FR RA AS ST TR RU UC CT TU UR RE EA AN ND DS SE ER RV VIIC CE ES S
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 Population (2001) Present population(2009) Area of the town Supply per day Requirement per head Supply per head Frequency of water supply Number of power pumps Number of public fountains Number of hand pumps Storage: Number of OHTs and capacity (non-potable water)
Puzhal Eri - CMWSSB deep bore wells - 485 nos open wells - 60 nos 76093 83120 17.4 sq.km 50.86 LL 135 lpcd 61.20 lpcd Daily - 3 hrs 28 1505 10
28 nos and 15.30 LL 60000 litre capacity 25 nos 10000 litre capacity 3 nos 233 nos and 3.98 LL 1000 litre capacity 68 nos 2000 liter capacity 165 nos
HDPE tanks Distribution: Length of pumping mains Length of Distribution main Total number of assessments No. of HSCs Domestic connections Non Domestic connections
4.5 km 45.85 km 15000 1300 1300 0
Chapter 8
Figure 8-1: Water Supply Layout in Madhavaram Municipality
Chapter 8
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 Service Level Service Delivery
Formula
Value
unit Liters per capita per day Hours
Water supply Total supply to the 61.20 per day city per day / total population of the city Average Hours of supply on 3 hours of supply day / supply per number of days day between two supply day HSC coverage Existing House 8.6 Service Connections / Total property assessments (Total storage 14.43 capacity(ML)/Total water supplied (MLD)* 100
Percent
Storage capacity
Storage capacity w.r.t. demand
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.
Chapter 8
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 Population Per Capita (lpcd) Demand (LLD) Supply of Water (LLD) Gap (LLD)
2009 (Base year) 83120 135 112.21 50.86 61.35
2024 (Intermediate year) 145000 150 217.50 50.86 166.64
2039 (Ultimate Year) 180000 150 270.00 50.86 219.14
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.
Chapter 8
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 . Proposal By Municipality
8.2.3
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 PHASE I Package 1 Package II & IV Package III PHASE II(uncovered areas)
Status Under execution Work order issued Tendering in progress 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
Chapter 8
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 1 2 Description Total length of roads and streets Length of existing Drain Length in km 127.17 24.52
8.3.2
Performance Indicators Normative Standard
Service level Indicator
Existing status 20%
Percentage of road length with storm water 130% drains
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. Proposal
8.3.4
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 1 Description Total Solid waste Generation units MT Numbers 52
Chapter 8
2 3 4
Collection efficiency Number of wards privatized Per Capita Waste generation Primary Collection
% Nos grams
90 15 625
5 6
Number of Tricycles Number of tricycle bins Secondary Collection
Nos Nos
36 270
7 8 9 10 11 12
Number of Dumper placer bins Number of Compactor bins Dumper placer lorries Compactor lorry Mini lorries Power tillers
Nos Nos Nos Nos Nos Nos
45 40 2 1 3 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 (biomedical waste) and pathology lab.
Table 8-6 Sources of Waste Generation
S. No 1 2
Category Domestic waste Trade waste
Source Residential Houses
Percentage 54
Trader, Hawker, shops, markets, offices 31 Marriage halls, commercial houses, hotels Hospitals and Nursing Homes 2 waste Drain silt, building activity waste, street 13 Industrial Sweeping, waste from Industries etc.,
3 4
Clinical waste Other including waste
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
Chapter 8
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 Yes No Practice Duration 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
Kilburn Nagar Compost Yard
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
Chapter 8
8.4.5
Inadequate vehicles for secondary collection. Inadequate tricycles for primary collection Absence of scientific treatment and disposal of garbage 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
Tube lights (40w) Sodium Vapour lamp (250w) TOTAL Per hour consumption No of Timer switches required No.of timer switches available
3942 738 4680
84 16 100% 424926 W or 424.926 kW/hr 110 60
216810 208116 424926
Source: Analysis and calculations
8.5.2
Performance Indicators Indicator Formula Value 29
Components
Street light Number of street Number of street lights /total light per km of road road length in km Coverage length
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.
Chapter 8
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. 1 2 3 4 5
Type of Roads Highways Municipal roads B.T. Roads C.C. Roads WBM Roads Earthen Total municipal road length Total road length in the town
Length km 10.00 101.08 5.31 16.79 3.99 127.17 137.17
in Percentage 79.50 4.20 13.20 3.10 100%
Source: Madhavaram Municipality
8.6.2
Parking
There is no authorized parking area in the town. The private vehicles such as autorickshaws, 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.
Chapter 8
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. 8.6.4 Performance Indicators Benchmark Indicator Road Density Per capita length Formula Road length /total area of the town road Total road population length / total 10-15 km/sq.km 1.75 m 100% Current status 7.8 km/sq.km 1.65 m 83%
Percentage surfaced roads
of Surfaced roads / total road length
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 8.6.7 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 Proposals
Proposal for the upgradation of roads, widening, and improvement to road geometry is given in chapter 10.
Chapter 8
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 Elementary Upper primary Secondary school Higher secondary Total
No. Institutions 11 1 4 7 23
of
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 8.7.4 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 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
Chapter 8
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 8.7.7 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 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 Pit latrine Safe mode of disposal Water closet Unsafe disposal mode of Other latrine No latrine
Households 6228 4626 2288 2733 15875
Percentage 39.23 29.14 14.41
Mode 68.37 31.63
17.22 100 100
Total Households
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.
Chapter 8
Final report: Madhavaram Municipality Table 8-12: Existing public toilets facilities
S. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Location conveniences Laksmipuram
of
public Total Number seats 4 6 6 6 6 6 6 6 6 8 6 Pandiyan 6 8 6 6 6 6 10 10 124
of
Vinayakapuram Burial ground road MGR Nagar Mettupalayam Periyar Nagar Ponniyamman Medu Calcutta shop Thiruvalluvar street Kannapiran koil street 1 Kannapiran koil street 2 Udaiyar Thottam 1 Udaiyar Thottam 2 Udaiyar street Thottam Madura
Thattankulam road Moolachatram Idaima Nagar Mandaiveli Telugu Colony Mandaveli MGR street Bharathiyar street Eswaran koil street Total number of seats
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 Cooperative 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.
Chapter 8
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 8.7.13 Issues Eerie and unkempt atmosphere of burial grounds. Absence of approach roads and compound walls 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 1 2 3 4 5 6 7 8 9 10 11 12 13
Location Teachers colony KKR Nagar Secretariat colony Sivasakthi nagar Secretariat colony Deenadayalu nagar Roja nagar MBTT complex Thanikachalam nagar (S.No 1220) Thanikachalam nagar (S.No 1186)
purpose park Park, vacant Park, vacant Park, vacant Park, vacant Park, vacant Park, vacant Park, vacant Public vacant Public vacant
Area (sq.m) 1367 1668 1260 1348 1432 1668 1400 872
purpose, 1345 purpose, 1345 purpose, 1345 purpose, 1345 285
Thanikachalam nagar (S.No 1184/1&2, Public 1229/1,2a,2b,2c)) vacant Thanikachalam 248/72 Nagar LPDM/DDTP Public vacant
Moolachatram, Madhavaram , PPD/LO
Park, vacant
Chapter 8
14 15 16 17 18 19 20 21 22 23 24 25 26 27
Majestic colony PPD/LONo 17/89 Pukraj Nagar, LPDM/DDTP No 57/69
Park, vacant Park, vacant
1114.8 1400 1150 1200 1380 1500 455 1088 236 409 784 1535
Periya Sekkadu, Madhavaram, PPD/LO Park, vacant No 12/9 Jayalakshmi Garden, LPDM/DDTP K.K.R.Garden, PPD/LO Metha Nagar, LPDM/DDTP 127/71 Bharathi St. LPDM/DDTP Park, vacant Park, vacant Park, vacant Park, vacant
Vivekananda Govt. Servants Co- op Park, vacant society PPD/LO Kumaran St. Periya sekkadu CMDA Park, vacant PPD/Lo Madhavaram, Perambur Co-Op Society Park, vacant Layout Madhavaram, Perambur Co-Op Society Park, vacant Layout M.G.R Nagar Thanikachalam Nagar Thanikachalam Nagar Total area Park, vacant Public vacant Public OHT
purpose, 1240 purpose 1696 32293.8 3.23 hectares
8.7.15
Proposal
The proposed projects for parks improvement are given in chapter 10.
Chapter 9
9
9.1
M MU UN NIIC CIIP PA AL LF FIIN NA AN NC CE E

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 :
Chapter 9
Final Report: Madhavaram Municipality Table 9-1: Property Tax Components
Particulars General Scavenging Lighting Water Tax Sewerage Tax Education Total ) )
% (Per Annum) 3% 2.5% 2% 2.5% 2.5% 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 Domestic Commercial Industrial State Government Properties Public Sector Undertakings Total Nos. 10803 1418 157 395 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 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Rs. in lacs 171.99 175.73 200.83 222.20 222.20 268.30 % Growth Rate 2.17% 14.28% 10.64% 0.00% 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 Demand - Current - Arrears 184.80 252.79 174.83 202.78 196.59 58.05 236.36 274.36 239.81 294.23 396.80 240.93 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Chapter 9 Property Tax Total Collection - Current - Arrears Total Collection % - Current - Arrears Total 49% 43% 45% 90% 80% 85% 95% 80% 92% 90.87 107.98 198.85 157.34 162.22 319.56 186.76 46.44 233.70 2001-02 437.39 2002-03 377.61 2003-04 254.64
Final Report: Madhavaram Municipality 2004-05 510.61 144.39 102.13 246.52 61% 37% 48% 2005-06 534.04 141.53 85.32 226.85 59% 29% 42% 2006-07 637.73 297.60 144.56 442.16 75% 60% 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 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Rs. in lacs 14.06 14.10 16.99 19.13 20.66 19.29 % Growth 0.28% 20.50% 12.60% 8.00% (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 Demand - Current - Arrears 14.06 25.82 14.10 25.82 13.56 25.82 19.13 11.02 20.66 13.24 25.00 4.83 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Chapter 9 Profession Tax Total Collection - Current - Arrears Total Collection % - Current - Arrears Total 100% 0% 35% 100% 0% 35% 100% 66% 78% 14.06 14.06 14.10 14.10 13.56 17.03 30.59 2001-02 39.88 2002-03 39.92 2003-04 39.38
Final Report: Madhavaram Municipality 2004-05 30.15 16.92 16.92 100% 0% 56% 2005-06 33.90 18.79 0.75 19.54 91% 6% 58% 2006-07 29.83 18.75 2.90 21.65 75% 60% 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 municipalitys 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 Assigned Revenue Duty on transfer of property Entertainment Tax Total % of Total Income % Growth 191.43 36.63% 98.66 18.98% (48.46%) 318.09 39.05% 222.41% 331.21 39.72% 4.12% 205.89 24.86% (37.84%) 334.65 34.73% 62.54% 191.43 98.66 318.09 331.21 205.89 334.65 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
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
Chapter 9
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 Devolution Fund Total % of Total Income % Growth 2001-02 70.96 70.96 13.58% 2002-03 138.84 138.84 26.70% 95.66% 2003-04 181.06 181.06 22.23% 30.41% 2004-05 140.82 140.82 16.89% (22.22%) 2005-06 208.08 208.08 25.12% 47.76% 2006-07 197.26 197.26 20.47% (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.
Chapter 9
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 In staff salaries In pension / DCRG Commitment Operation & Maintenance Expenditure Salary Rs. 286000/- per month Rs. 73000/- per month 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 Service Charges & Fees Total % of Total Income % Growth 2001-02 12.74 12.74 2.44% 2002-03 21.34 21.34 4.10% 67.50% 2003-04 24.24 24.24 2.98% 13.59% 2004-05 22.87 22.87 2.74% (5.65%) 2005-06 37.18 37.18 4.49% 62.57% 2006-07 56.85 56.85 5.90% 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 :
Chapter 9
Table 9-11: Income from Properties & Other Income Growth & % of Total Income (Rs. in lacs) Particulars Income from Properties and other income Total % of Total Income % Growth 2001-02 54.96 2002-03 70.00 2003-04 72.86 2004-05 96.93 2005-06 127.23 2006-07 79.89
54.96 10.52% -
70.00 13.46% 27.37%
72.86 8.95% 4.09%
96.93 11.62% 33.04%
127.23 15.36% 31.26%
79.89 8.29% (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 Demand - Current - Arrears Total Collection - Current - Arrears Total Collection % - Current - Arrears Total 38% 58% 43% 100% 100% 100% 100% 100% 0% 100% 100% 0% 100% 100% 100% 125.58 72.60 198.18 411.21 411.21 424.37 424.37 468.90 468.90 503.36 503.36 610.00 610.00 327.50 131.38 458.88 411.21 411.21 424.37 424.37 468.90 0.51 469.41 503.41 0.51 503.92 610.00 610.00 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
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 :
Chapter 9
Table 9-13: Establishment Expenses Growth & % of Total Expenditure (Rs. in lacs) Estb Expenses Personnel Salaries Terminal & Retirement Benefits Total % of Total Expt % Growth 200102 126.51 11.15 137.66 33.79% 2002-03 124.61 21.90 146.51 28.01% 6.43% 2003-04 135.71 16.91 152.62 28.98% 4.17% 2004-05 143.19 17.67 160.86 29.14% 5.40% 2005-06 137.98 1.67 139.65 16.57% (13.19%) 2006-07 170.67 13.81 184.48 22.44% 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 Hire Charges Maintenance Exps Vehicle Maint. Others Total % of Total Expt % Growth 2001-02 19.30 11.03 2.28 32.61 8.01% 2002-03 29.00 11.07 2.57 1.89 44.53 8.51% 36.55% 2003-04 35.03 12.94 0.03 48.00 9.12% 7.79% 2004-05 0% (100%) 2005-06 47.73 18.55 66.28 7.87% 100% 2006-07 40.26 15.02 1.30 56.58 6.88% (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:
Chapter 9
Table 9-15: O&M Expenses (Street Lights & Others) Growth & % of Total Expt (Rs. in lacs) O&M Street Lights & Others Operative Expenses Repairs Maintenance Total % of Total Expt % Growth & 2001-02 27.70 22.36 50.06 12.29% 2002-03 46.45 19.15 65.60 12.54% 31.04% 2003-04 88.66 16.71 105.37 20.01% 60.63% 2004-05 66.75 18.49 85.24 15.44% (19.10%) 2005-06 120.49 25.15 145.64 17.29% 70.86% 2006-07 146.52 25.65 172.17 20.94% 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 Administration Expenses Total % of Total Expt % Growth 2001-02 9.80 9.80 2.41% 2002-03 9.87 9.87 1.89% 0.71% 2003-04 11.82 11.82 2.24% 19.76% 2004-05 18.70 18.70 3.39% 58.21% 2005-06 16.36 16.36 1.94% (12.51%) 2006-07 20.16 20.16 2.45% 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 Particulars Income Expenditure Surplus before Int & Depreciation Finance Charges Surplus / (Deficit) 2001-02 522.60 235.76 286.84 39.31 247.53 2002-03 519.93 268.49 251.44 106.42 145.02 2003-04 814.51 319.47 495.04 66.38 428.66 2004-05 833.88 266.82 567.06 38.06 529.00 2005-06 828.20 368.39 459.81 39.26 420.55 Unaudited 2006-07 963.49 437.40 526.09 59.33 466.76
Chapter 9 Audited Particulars before Depreciation Depreciation Net Surplus (Deficit) / 115.26 (3.21) 287.94 132.27 148.23 140.72 2001-02 2002-03 2003-04
Final Report: Madhavaram Municipality Unaudited 2004-05 2005-06 2006-07
247.11 281.89
434.89 (14.34)
325.42 141.34
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 Particulars Income Property Tax Profession Tax Water & Drainage Assigned Revenue Devolution Fund Serv. Chgs & Fees Grants & Cont. Sale & Hire Chgs Other Income Total Income Expenditure Personnel Cost Terminal Benefits O&MStreet Lights 126.51 11.15 27.70 124.61 21.90 46.45 135.71 16.91 88.66 143.19 17.67 66.75 137.98 1.67 120.49 170.67 13.81 146.52 171.99 14.06 191.43 70.96 16.69 2.51 0.00 54.96 522.60 175.73 14.10 98.66 138.84 21.59 1.01 0.00 70.00 519.93 200.83 16.99 318.09 181.06 24.29 0.39 0.00 72.86 814.51 222.20 19.13 331.21 140.82 22.87 0.72 0.00 96.93 833.88 222.20 20.66 208.59 208.08 40.63 0.81 0.00 127.23 828.20 268.30 19.29 334.65 197.26 62.08 2.02 0.00 79.89 963.49 2001-02 2002-03 2003-04 2004-05 2005-06 Unaudited 2006-07
Chapter 9 Audited Particulars O&M Water Repairs & Maint. Programme Exps Administrative Exp Finance Expenses Depreciation Total Expenditure Surplus / (Deficit) 2001-02 19.30 35.68 5.62 9.80 39.31 132.27 407.34 115.26 2002-03 29.00 34.68 1.98 9.87 106.42 148.23 523.14 (3.21) 2003-04 35.03 29.68 1.66 11.82 66.38 140.72 526.57 287.94
Final Report: Madhavaram Municipality Unaudited 2004-05 18.49 2.02 18.70 38.06 247.11 551.99 281.89 2005-06 47.73 43.70 0.46 16.36 39.26 434.89 842.54 (14.34) 2006-07 40.26 41.97 4.01 20.16 59.33 325.42 822.15 141.34
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 municipalitys 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 TUFIDCO Loan TNUDF Loan Total Purpose Water Supply & Others Water Supply & Others Rate of Interest 13.50% 13.50% O/s as on 31.3.07 257.13 352.24 609.37
As against the same, the contribution by Municipality, contribution by Government and Grants from Government as on 31st March 2007 stands as below :
Chapter 9
Final Report: Madhavaram Municipality Table 9-20: Status of Contributions & Grants
Particulars Contribution by Municipality Grants from Government Total
Rs. in lacs 380.37 227.77 608.14
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.
Chapter 9
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 Per Capital Income Share of Own Sources in Total Revenue Income Share of Property Tax in Total Revenue Income Share of Revenue Grants & Subsidies in Total Revenue Income Growth in Revenue Income Growth of Own Sources of Revenue Income Per Capital Own Income Value Rs. 1109/- p.a. 44.58% 27.85% 55.41% 16.87% p.a. 13.34% p.a. 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
Chapter 9
administration expenses. Establishment expenditure accounts for about 20% of the total revenue generated by the municipality.
Table 9-22: Fund Application Indicators Indicators Per Capita Expenditure Share of Establishment Expenses in Total Revenue Expenditure Share of O&M Expenditure in Total Revenue Expenditure Share of Establishment Expenditure to Total Revenue Income Growth in Establishment Expenditure Growth in O&M Expenditure Growth in Total Revenue Expenditure Value Rs. 946/- p.a. 22.44% 27.82% 19.14% 6.80% p.a. 35.33% p.a. 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 Per Capita Liability - Outstanding Debt per Capita - Outstanding Non Debt Liability per Capita - Total Outstanding Liability per Capita As a proportion of Property Tax Current Demand - Outstanding Debt as % of Property Tax Demand - Outstanding Non Debt Liability as % of Property Tax Demand - Total Outstanding Liability as % of Property Tax Demand As a proportion of Property Tax Own Revenue Income - Outstanding Debt as % of Own Revenue Sources - Outstanding Non Debt Liability as % of Own Revenue Sources - Total Outstanding Liability as % of Own Revenue Sources Non Debt Liability as % of Total Liability Debt Servicing Ratio Value Rs. 701/Rs. 701/227% 227% 163% 163% 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
Chapter 9
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 Operating Ratio Growth in Per Capita Own Revenue Growth in Per Capita Grant Growth in Per Capita Total Revenue Income Growth in Per Capital Establishment Expenditure Growth in Per Capita O&M Expenditure Growth in Per Capita Revenue Expenditure Value 51.56% 9.47% p.a. 15.63% p.a. 12.59% p.a. 3.69% p.a. 28.91% p.a. 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 Tax Collection Performance (Current) - Property Tax - Profession Tax - Water Charges - Non Tax Income No. of Property Tax Assessments per Tax Collection Staff Property Tax Demand per Assessment No. of Municipal Staff per 1000 Population Annual Revenue (Own Source) per Municipal Staff Population per Residential Property Tax Assessment 70% 95% 100% 2555 Nos. Rs. 1347/- p.a. 3.00 Nos. Rs. 1.12 Lakh p.a. 7.11 persons Value
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:
Chapter 9
Particulars Property Tax Profession Tax Water Charges Other Fees
Current 71.55% 92.40% 89.72%
Arrears 54.82% 21.94% 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
Chapter 9
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
10
C CA AP PIIT TA AL L IIN NV VE ES ST TM ME EN NT T N NE EE ED DS S F FO OR R IID DE EN NT TIIF FIIE ED D P PR RO OJ JE EC CT TS S
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).
Chapter 10
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. <500 501-1200 1201-2400 >2400 Weighted Average Area in Sq. ft. <500 501-1200 1201-2400 >2400 Weighted Average Tariff in Rs. 70.00 90.00 100.00 120.00 73.00 Commercial Tariff in Rs. 150.00 150.00 150.00 150.00 150.00 Deposit in Rs. 15000.00 15000.00 15000.00 15000.00 15000.00 Deposit in Rs. 5000.00 7000.00 9000.00 9000.00 5300.00
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
Chapter 10
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 1 2 3 Project Description Drainage Construction and Improvement Preparation of comprehensive drainage master plan Construction of new pucca closed drains including trunk drains (141 km) Upgradation and maintenance of Existing drains Total Annual operation and maintenance cost 3.00 3525.00 150.00 3678.00 105.75 Cost - Rs. In Lacs
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.
Chapter 10
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 1 2 3 4 5 6 7 8 9 10 11 12 11 12 Project Description Preparation of Integrated solid Waste Management Small vehicles with containers for door to door collection @ 240 litres capacity (144 nos) Community bins @ 1100 litres capacity (45 nos) Tipper Lorries (2nos) Auto tippers for narrow lanes (10 nos) Purchase of compactor bins (51 nos) Purchase of compactor lorry (1 no) Closed dumper placer container for 2.5 cu.m capacity (4 nos) purchase of Dumper placer vehicles ( 3 nos) Land cost for the new compost yard at Thiruvottiyur - 20 acres (long term) Proportionate cost for provision of infrastructure facilities and development of new compost yard Land Cost for Regional landfill site - 7 acres ( long term) Proportionate cost for development of regional land fill site (7 acres) IEC activities Total Annual Operation and Maintenance Cost Cost in lakhs 7.00 22.00 8.00 20.00 20.00 26.00 38.00 2.00 50.00 1655.00 1050.00 1200.00 700.00 25.00 4823.00 98.05
Chapter 10
*-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 1 Description Provision of Mini High Mast Lights Junction of MRH Road and Thattankulam Road Junction of GNT Road and MRH Road at Moolakkadai Bus Stand 2 3 4 5 6 Installation of automatic Timer Switches (60 nos) Retrofitting of existing tube lights with T5 lights in phases (3942 nos) Retrofitting of SVL lamps to T8 as per requirement including light fittings (200 nos) Electricals Fittings and lamp posts Installation of solar lights (trial basis 20 nos) Total Annual operation and maintenance cost 6.00 6.00 6.00 2.00 48.00 6.00 20.00 6.00 100.00 5.00 Amount Rs in Lacs
Chapter 10
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 1 Description Road Widening Widening of internal circulation roads(Nachariamman street, New Aliyar street II nd, Hasan street, Lane ) and road dividents 2 Road upgradation W.B.M. Roads to BT (10 km) W.B.M. Roads to BT (6.79 km) Earthen Roads To CC (4 km) 3 Road Improvement Relaying of B T road after UGD (101.08 km) Relaying CC road after UGD (5.31 km) 4 Road Junction improvement Public Road, Near municipality office, at state highway junction. 5 6 Road Geometry Improvement Pedestrian pathways, medians, signages New roads Formation of new BT roads (6 km) Formation of new CC roads (10 km) Total Annual Operation and Maintenance cost 138.00 250.00 2777.00 19.40 50.00 125.00 1516.00 133.00 200.00 170.00 100.00 95.00 Amount Rs lacs in
Therefore, the total capital investment required - for the improvement of roads in Madhavaram municipality is Rs.2777.00 lakhs.
Chapter 10
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. 1 Description Elementary Schools Construction of new buildings at the 6 schools Improvement of basic facilities at the 6 schools Total 252.00 30.00 282.00 Amount in Rs Lacs
Therefore, the total capital investment required for the improvement of schools in Madhavaram municipality is Rs.282.00 lakhs. 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) womens 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.
Chapter 10
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. 1 2 3 Description Upgradation of facilities and additional building to existing Maternity centre Construction of Primary urban Health center (PUHC) with 25 beds at Lakshmipuram with necessary infrastructure facilities IEC activities Total Annual Operation and Maintenance Amount Lacs in Rs
25.00
150.00 25.00 200.00 5.40
Therefore, the total capital investment required for the improvement of health facilities in Madhavaram municipality is Rs.200.00 lakhs.
Chapter 10
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. 1 Description Repair and Maintenence of exisiting toilets (19 nos) Total Annual operation and maintenance cost Amount in Rs Lacs 60.00 60.00 1.80
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. 1 Description Provision of basic facilities like compound wall, pathways, hard and soft landscaping, recreational facilities and basic amenities KKR Nagar Secretariat colony Secretariat colony 12.00 10.00 15.00 Amount in Rs
Chapter 10 S. No. Description Roja nagar MBTT complex Thanikachalam nagar (S.No 1220) Thanikachalam nagar 1229/1,2a,2b,2c)) (S.No
Final Report: Madhavaram Municipality Amount in Rs 13.00 9.00 15.00 1184/1&2, 15.00 11.00 11.00 14.00 14.00 13.00 10.00 14.00 7.00 12.00 5.00 7.00 9.00 14.00 18.00
Moolachatram, Madhavaram , PPD/LO Majestic colony PPD/LONo 17/89 Pukraj Nagar, LPDM/DDTP No 57/69 Periya Sekkadu, Madhavaram, PPD/LO No 12/9 Jayalakshmi Garden, LPDM/DDTP K.K.R.Garden, PPD/LO Metha Nagar, LPDM/DDTP 127/71 Bharathi St. LPDM/DDTP Vivekananda Govt. Servants Co- op society PPD/LO Kumaran St. Periya sekkadu CMDA PPD/Lo Madhavaram, Perambur Co-Op Society Layout Madhavaram, Perambur Co-Op Society Layout Thanikachalam Nagar Thanikachalam Nagar 2 Provision of landscaping, play materials and basic amenities Teachers colony Deenadayalu nagar Thanikachalam nagar (S.No 1186) Thanikachalam Nagar LPDM/DDTP 248/72 M.G.R Nagar Total Annual Operation and maintenance
10.00 11.00 10.00 10.00 10.00 299.00 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 Cooperative federation Ltd. The details of the proposals are given in the table below:
Table 10-10: Capital Investment Needs for Market S.No 1 2 Description Construction of stalls (125 nos ) and shops (75 nos) Provision of drains, water supply arrangements, lighting Rs. in lakhs 175.00 25.00
Chapter 10 facilities, public conveniences 3 4 Contingencies and other unforeseen charges Development of Parking space (1 acre) Total Annual Operation and maintenance
5.00 25.00 Rs.230.00 lakhs 6.15
Therefore, the total capital investment required for the market complex in Madhavaram municipality is Rs.230.00 lakhs. 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 1 Description Maintenance of Existing Burial Grounds (8 nos) Total Annual Operation and maintenance Amount in Rs Lacs 24.00 24.00 0.72
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 1 2 Component Construction of new housing units (1427 units) Improvement of infrastructure facilities roads, drains, sewerage facilities, lighting etc Total Annual Operation and maintenance Amount in lakhs 2150.00 200.00
2350.00 28.20
Therefore, the total capital investment required for the improvement of slums in Madhavaram municipality is Rs.2350.00 lakhs.
Chapter 10
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 GIS Mapping for Comprehensive Property Database Property mapping Software, Hardware & Networking for Municipality Total Annual operation and maintenance Amount Rs.in Lakhs 34.00 5.00 25.00 64.00 1.92
Therefore, the total capital investment required is Rs.64.00 lakhs. 10.2 OTHER PROJECTS
a. Improvement to municipal office building
Chapter 10
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 1 Description Improvement of municipal office building Total Annual operation and maintenance Amount Rs.in Lakhs 100.00 100.00 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.
Chapter 10
Final Report: Madhavaram Municipality Table 10-15: Projects to be taken by other departments
S.No
Project Description Regional Level Preparation and implementation of Integrated Water Resources Management Plan - Rettai Eri Expedition of MAP Region Development study
Nodal Agency
Cost (Rs.in lakhs)150.00
DTCP / CMA, TNUIFSL
3 4
5 6
9 10
Preparation of Regional Traffic Operational and Management Plan Development of Chennai - Manali - Ennore Corridor linking to Ennore Port and the Great Northern Trunk Road Feasibility Study for extension of metro rail between Chennai and Madhavaram Setting up of Resource center for Technology and Efficiency upgradation of industrial skills Town Level 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. Improvement to existing PWD channel by increasing the height of channel for 2 ft from Retteri through Thanigachalam nagar upto moolakadai. Esco Study Awareness campaign for NGOs on their roles and responsibilities in community development
CII (coordinating DTCP,CMDA, CMA, TNRDC, PWD, TNUIFSL-encouraging PPPs, NHAI) NHAI TIDCO(coordinating DTCP,CMA,TNRDC, TNUIFSL/IL&FS, NHAI) Railway Authority TIDCO / Technical Educational institutions and industries Water Resources Department, GoTN/ NGO
Study under progress 5.00 Study under progress 12.00 10.00
10.00
Water Resources Department, GoTN/ NGO
60.00
CMA/TNUIFSL, Municipality Municipality
1.00 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 1 2 Component Water Supply Sewerage Total cost Rs. in crores 6321.00 2299.00 JNNURM GOI 2212.35 804.65 GOTN 948.15 344.85 IR/IF 3160.50 1149.50
Chapter 10 3 4 5 6 7 8 9 10 11 Solid Waste Management Storm Water Drainage Transportation Mass Rapid Transit System Metro rail (45 km) Parking lots and spaces Heritage and Recreation Satellite Town Development Total Urban Basic services for poor Grand Total
Source: CDP, Chennai
Final Report: Madhavaram Municipality 847.80 1423.88 17254.08 600.00 7000.00 43.85 103.08 5000.00 40892.69 3887.23 44779.92 296.73 498.36 6038.93 210.00 2450.00 15.35 36.08 1750.00 14312.45 1943.61 16256.06 127.17 213.58 2588.11 90.00 1050.00 6.58 15.46 750.00 6133.90 423.90 711.94 8627.04 300.00 3500.00 21.92 51.54 2500.00 20446.34 1943.62 28523.86
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 1 2 Projects Water supply Sewerage Phase I Phase II Storm Water Drain Preparation of comprehensive drainage master plan Construction of pucca closed drains including trunk drains (140 km) and Upgradation maintenance of Existing drains 4 Solid Waste Management Preparation of Integrated solid Waste Management Vehicles & equipments for primary and secondary collection Land cost for Compost yard Estimated cost in lakhs 6000.00 5920.00 3600.00 2320.00 3678.00 3.00 3.00 3525.00 1470.00 1060.00 995.00
Year I
Year II 3600.00
Year III 2400.00
Year IV
Year V
3600.00 1500.00 820.00
150.00 50.00 4823.00 7.00 7.00 211.00 70.00 1655.00 126.00 1655.00 5.00 5.00 5.00 100.00
Chapter 10 Land cost land fill site for regional 1200.00
1200.00 1750.00 1050.00 2777.00 2389.00 565.00 388.00 100.00 lights, 38.00 25.00 56.00 35.00 21.00 6.00 152.00 5.00 25.00 74.00 155.00 6.00 282.00 200.00 60.00 299.00 230.00 205.00 area 25.00 25.00 ground 24.00 2350.00 59.00 25.00 5.00 100.00 75.00 200.00 27107.00 4112.00 200.00 9072.00 8737.00 3538.00 1648.00 25.00 5.00 34.00 10.00 850.00 14.00 765.00 735.00 13.00 795.00 680.00 188.00 349.00 200.00 700.00
Land fill site & compost yard development 5 Roads Road improvement, upgradation and Proposed new roads 6 Street light Proposed new fittings & posts
Retrofitting existing lights & energy saving devices Solar lights Education Medicare Public Convenience Improvement of Parks Market Maket construction Parking development 12 13 14 Burial Slum
7 8 9 10 11
130.00 180.00 10.00
5.00 25.00 100.00
5.00 65.00
5.00 60.00
50.00
E-Governance and system improvement in GIS platform Property mapping Municipal office building Improvement Wind mill Installation TOTAL
15 16 17
Chapter 11
Final Report: Madhavaram municipality
11
11.1
R T RIIS SK KA AN ND DM MIIT TIIG GA A TIIO ON NM ME EA AS SU UR RE ES S
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. 1 2 3 4 5 6 7 8 9 10 11 12 Project Items Water Supply Sewerage System Storm Water Drains Solid Waste Management Roads Street Lights Parks and Playgrounds Burial Grounds Public Convenience Medicare Slum improvement Market Environmental Category E2 & E3 E2 E2 E1 & E2 E2 E3 E3 E2 E2 E2 E3 E2 Social Category S2 S1 S2 S2 S3 S3 S2 S2 S3 S2 S1 S2
Chapter 11
13 14
GIS database E-governance
E3 E3
S3 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 Site risks
Mitigate measures
Land interests and land acquisition
Providing all land related information to the contractor Community consultations to ensure least resistance from local population Interfacing with all concerned departments to ensure land approvals or reduce bottlenecks Careful site selection after detailed investigation of site history and characteristics Addressing all related environmental issues before the bid process , including impact assessments
Resistance from public
Delay due to statutory approvals
Un-suitable site conditions.
Environmental issues
Implementation risks Risks related to design ,construction and commissioning the projects such as: Review of proposed design by Government, parstatal agencies. Ensure correction of design and construction defects before commencing service delivery 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
Design flaws
Non - availability of suitable contractor due to the simultaneous execution of similar project in many ULBs near by.
Chapter 11
manner. Proper specification of project outputs and core services to be delivered. Linking contracting services to key performance indicators and in turn to the payment schedule Independent commissioning tester to ensure delivery of the required performance. O&M risk Increase in predicted operating costs Impact of design flaws & defective construction, deterioration of performance standards Address future service delivery demands also Operating guarantees/performance bonds to ensure service continuity and compensation for default Inbuilt options for upgrading technology as the contract term proceeds Escrow mechanisms to ensure protected cash flows and enforce during service/operational default Termination rights in case of insufficient delivery/break down in service provision Financial risks Ensuring project structure, in-built contractual provisions and foreseeing risks make the project bankable, addressing lender related issues. Mitigate risks arising from inflation, interest rates, foreign exchange rates etc. Avoid looking for the lowest cost bid- base selection upon financially sound structure and business plan Market risks Quantify demand, providing demand related information at the bid stage Initiate feasibility studies, demand forecasting, sensitivity analysis. Incentives to stimulate end-users
Time and cost over runs Defaulting in meeting dead lines in construction and commissioning
Ensuring service delivery
Technologically outmoded practices
Inherent defects of the system Defaults from designer, builder and operators
Funding uncertainties
Cost escalation
Delays in financial closure of the project
General economic down turn Changes in Government policies, Shift in industry focus Change in target-market competition
Chapter 11
Risks from Natural disasters Minimize impacts through appropriate insurances to transfer risk to insurer Regularly review insurance policies to ensure effective and adequate coverage Appropriate action plans for temporary service arrangements
Floods, Cyclones, Earth quakes, Tsunami
Insurance coverage
Interruption in Service delivery
Risks in Private sector participation Specify desired project outcomes, taking into account Govt. policies Ensure sound financing pattern or the model on which the private sector has based its participation Ensure Government rights to take over some or all of the sub-contracts of the private party in case of its failure to perform. Contingency plans for continuation of core or ancillary services Ensure and technical legal ability to contract with private party Identify and facilitate Govt. approvals-related to planning, environment etc Anticipate ,identify and resolve land tenure issuesAcquisition , title, encroachments, usage of land Insurances to cover aspects like owners liability, asset risks, business interruption, some policy risks, natural disaster. Incentives to private sector to incorporate latest technology by making the design consultant, builder and the operator part of the OWG
Project initiation
Private operator
Lack of service delivery Inadequate capabilities for legal and technical issues
Delays due to statutory approvals
Delays due to land acquisition
Unforeseen risks to private operator
Technically out dated mechanisms
Chapter 12
12
R RE EF FO OR RM MS SA AN ND DA AC CT TIIO ON NP PL LA AN N
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 States 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
Chapter 12
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 a. PROPOSED INTERVENTIONS AT STATE LEVEL 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:
Chapter 12
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.
Chapter 12
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.
Chapter 12
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.
Chapter 12
Base source: www.pppinindia.com
Organization chart of PPP Cell
Chapter 12
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
Chapter 12
sustainable development and management of the worlds 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
Chapter 12
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. 4. 5. Regular and periodic increment of property tax at 15% every 5 years. Mobilizing a Fast Track Litigation Campaign to settle disputes on properties. Levying Vacant Land Tax as per the recommendations of Third State Finance Commission. Empowering the municipality to convert nonclaimed lands to socially benefiting uses.
ii.
Profession Tax Reform Revising the profession tax based on the Third State Finance Commission recommendations. Regularization of unapproved construction Regularization fees for unapproved constructions at the rate of 5 times the existing building license fee.
iii
Chapter 12
Table 12-1: Road Map - Improving revenue from own sources Year of Implementation Sl.No 1 Reforms Year 1 Property tax Reform i ii iii iv v 2 Property Mapping Rebates on Property tax Regular and periodic increment of property tax Fast Track Mobilizing a Litigation Campaign Levying Vacant Land Tax of unapproved Year 2 Year 3 Year 4 Year 5
Regularization 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 nondomestic 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.
Chapter 12
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 Year of Implementation
Sl.No 1
Reforms Year 1 Water Supply and UGSS i ii iii Increasing deposit and tariff Graded tariff for UGSS Pre mobilization of deposits Year 2 Year 3 Year 4 Year 5
Solid Waste Management i Collection of conservancy fee for Commercial and Industrial Establishments Collection of conservancy fee for Domestic assessments
ii
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.
Chapter 12
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 Year of Implementation Sl.No 1 Reforms Year 1 Formation of new sustainable revenue bases Premobilization of deposits construction of shopping complex teachers colony Parking Regularization Advertisement Regularization Collection of Annual tract rent for at Year 2 Year 3 Year 4 Year 5
i ii iii iv
Chapter 12
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)
Chapter 12
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 Year of Implementation Sl.No Reforms Year 1 Year 2 Year 3 Year 4 Year 5
Privatization of Operation and Maintenance i ii iii water supply and Distributionsystem Sewer network & STP street lights
AMC of Public and pay % use toilet iv facilities Parks and parking lots Maintenance v and user charges collections Privatisation options in Solid Waste Management Privatization of Door to door collection of solid waste Compost yard management & sale of compost & scrap Privatization of Collection mechanism Spot billing and tax collection using mobile van Formation and sensitisation of youth & women SHGs Public awareness campaign for improving tax collection (IEC)
4 5
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.
Chapter 12
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 Year of Implementation Year Year 2 Year 3 4
Sl.No
Reforms Year 1
Year 5
Energy audit i ii iii Leak detection study Fixing of bulk water meter Fixing flow control values and meters Implementing energy saving measures on street lights and pumping machineries (ESCo)
iv
Chapter 12
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 Income Tax Holiday Accelerated Depreciation Concessional Custom Duty/ Duty Free Import Capital/ Interest Subsidy From State Governments Energy buyback, power wheeling and banking facilities Sales tax concession benefits Electricity tax exemption 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 Capacity of WEG No. of WEG Land requirement Total power generation capacity of WEG Number of days in year no. of hrs / day Total wind energy generation in Plant Load factor (PLF) capacity of the installed machine (standard) Actual Energy generation capacity Net salable units less transmission losses Sale price of electrical energy Units kw No. acres KW No. No. kwh % 24% kwh kwh (Rs/unit) 482400 482400 2.5 Values 250 1 1 to 1.3 250 335 24 2010000
Chapter 12
Total sales of wind energy generated Total Expenditure assumed (insurance/Admin/O&M)
(Rs in lakhs) (Rs in lakhs)
12.06 2.5
The costbenefit 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 crossreference 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.
Chapter 12
Table 12-8: Road Map for Computerization and E-Governance Year of Implementation Year Year Year 2 3 4
Sl.No
Reforms
Year 1
Year 5
Computerization and E-governance i ii iii iv v vi vii viii ix Digitizing municipal records (past 30 years) On-line bill payment Registration of Land records Digitization of old Birth and death certificates On-line issue of Birth and Death certificates Property Mapping on-line Issue of trade license Online submission of building plans 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.
Chapter 12
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 Year of Implementation Sl.No 1 Reforms Year 1 Accounts and Auditing with charted accountant I Ii iii 2 Appointing private charted accountant consultant Closing of audit and accounts (Sept 30th) Online publication of audited statement (Oct 30th) Capacity Building Representatives for Elected Year 2 Year 3 Year 4 Year 5
Institutional Management i 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 Elected representatives Identified Training areas 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
Chapter 12
Category Committee members
Identified Training areas 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 Category Senior Management Staff Identified Training areas 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 Training in interpretation of various laws, rules, regulations and 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
Chapter 12
Category
Identified Training areas Performance management system and key result areas. Motivation and Interpersonal skill development Effective use of computers Training in interpretation of various laws, rules, regulations and 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) 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
Supervisory Staff
Training for Operational staff
Source: CMA Records.
Chapter 12
Table 12-12: Road map for implementation of all projects S.N I II Projects Water supply Under Ground Drainage system Phase I Phase II Strom water Drain Solid Waste Management Vehicles & equipments - Primary & secondary Collection Land for regional Landfill site & compost yard Land fill site and compost yard development Roads Roads and junction Improvement New roads Street light Slum Education Health Parks improvement Market complex Public Convenience Burial Ground improvement E-Governance GIS Mapping Property Mapping GIS Database Municipal Office building improvement Wind mill Installation Municipality Municipality Implementing Agency CMWSSB CMWSSB Year 1 Year 2 Year 3 Year 4 Year 5
III V
Municipality
Municipality operator
private
Municipality ESCO/ Municipality Municipality
VI VII VIII IX X XI XII XIII XIV XV
XVI XVII
Source: Analysis and calculations
Chapter 12
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 Benchmark considered Target Existing Year 1 61 Year Year 2 3 Project Implementatio n 60 85 Year 4 135lpcd Year 5 After years 135 lpcd 5
Sector
Particulars
Net Supply per capita HSCs - % of assessed properties Frequency of Supply - Hours per day HSC coverage SEWERAGE SYSTEM Coverage of UGSS network % of road length Availability of facility Composting
135 lpcd
61.20
WAETR SUPPLY
85%
8.6 3 hrs daily Nil
25
85%
85%
24x7 hours 85%
Period of implementation
24x7 85%
85% Period of implementation Nil 100%
100% 100% available 100% 100% 130%
100% 100% available 100% 100% 130% 130%
SOLID WASTE MANAGEMENT
Not Availabl e 90% 83% 20%
100% available Period of implementation 100% Period of implementation Period of implementation
Collection efficiency Surfaced roads- % of total road length ROADS, STORM WATER DRAIN, STREET LIGHTS Storm water drains - % of total road length Average spacing between Street lights
30m
29m
Period of implementation
30m
30m
Source: Analysis and research
Chapter 1 3
13
A AS SS SE ET TM MA AN NA AG GE EM ME EN NT TP PL LA AN N
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 conditionsurvey 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.
Chapter 1 3
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 Bore wells with power pump H.S.C.s OHTSs Distribution line HDPE Public Convenience Public Toilet unit ISP toilet Vambay toilet Storm Water Drains Total existing Drain
395 28 260 28 75.8 233
nos nos nos nos km nos
9 3 10
nos nos nos
24.52 km
Chapter 1 3
Solid Waste Management Mini Trucks Tricycle Twin dumper placer JCB Roads B T Road C C Road W B M Road Earthen Road Street Lightings Tube Lights Sodium Vapour lamps Parks & Play fields Municipality parks Burial Grounds No. of burial grounds Education Middle school Higher secondary school Medicare Maternity center 13.3
3 60 1 1
nos nos nos nos
101.08 km 5.31 km 16.79 km 3.99 km 3942 738 nos nos
11
nos
nos
2 3 1
nos nos nos
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:
S.No 1 2 Table 13-1: Land Assets Proposed use Location Present use Proposed use 26 open spaces within municipal limits Not efficiently used Parks Primary Urban health Lakshmipuram Vacant land center Tamil Nadu State Palmgur & Fibre Marketing Co-operative Not in use Modern market Complex federation Ltd. campus
Source: Survey, Analysis and discussion with municipal officials
Chapter 1 3
Table 13-2: Income from Proposed new Projects
S.No 1 2 3 4
Description Market complex (stalls and shops) Parking at market complex Slaughter House Wind mill
Income (Rs.in lakhs) 90.00 5.00 4.00 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:
Chapter 1 3
Table 13-3: New Assets for the year -2009-10 to 2013 -14
S.N
Projects
Estimated cost in lakhs 6000.00 5920.00 3678.00 4823.00 2777.00 2389.00 388.00 100.00 282.00 200.00 60.00 299.00 230.00 24.00 2350.00 59.00 5.00 100.00 200.00 27107.00
1 2 3 4 5
Water supply Improvement Sewerage Storm water drain Solid Waste Management Roads and Bus stand Road improvement, upgradation and widening Proposed new roads
6 7 8 9 10 11 12 13 14 15 16 17
Street light Education Medicare Public Convenience Improvement of Parks Market complex Burial ground improvement Slum E-Governance and system improvement in GIS platform Property mapping Municipal office building Improvement Wind mill TOTAL
Chapter 14
14
14.1
F T FIIN NA AN NC CIIA AL LA AN ND DO OP PE ER RA A TIIN NG GP PL LA AN N
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 municipalitys own resources) for the same.
Table 14-1: Projects to be executed by the Municipality S.No. A I a) II a) b) III Particulars Physical Infrastructure Facilities Water Supply Improvements Water Supply Phase I Phase II Strom Water Drains Preparation of Comprehensive Drainage Master Plan Construction of new pucca closed drains including trunk drains (140 km) Upgradation maintenance existing drains Solid Management and of Waste 50.00 100.00 150.00 1470.00 1060.00 995.00 3525.00 to 3600.00 3600.00 1500.00 2400.00 820.00 6000.00 3600.00 2320.00 2010-11 2011-12 2012-13 2013-14 2014-15 Total
Sewerage & Sanitation
a)
3.00
3.00
b)
c) IV
a)
Preparation of Integrated Solid Waste Management Vehicles equipments primary and and for
7.00
7.00
b)
secondary collection c) Land cost for compost yard
70.00 -
126.00 1655.00
5.00 -
5.00 -
5.00 -
211.00 1655.00
Chapter 14
d) e) V
Land cost for regional land fill site Land fill site & compost yard development Roads Roads improvement, upgradation & widening Proposed New Roads Street Lights Proposed new lights Retrofitting & energy saving devices Solar Lights Social Infrastructure Facilities Slum Improvement Improvements to Slums Education Improvements Schools Parks & Playgrounds Improvement of parks, construction of compound wall for play ground & play equipments to
1200.00 1050.00
700.00
1200.00 1750.00
a) b) VI a) b) c) B I a) II a) III
35.00 -
565.00 25.00 21.00 6.00
795.00 13.00 -
680.00 188.00 -
349.00 200.00 -
2389.00 388.00 38.00 56.00 6.00
850.00
765.00
735.00
2350.00
130.00
152.00
282.00
a)
74.00
100.00
65.00
60.00
299.00
IV a) V a) VI a) VII a) b) C I a)
Burial Ground Crematorium
Improvements to Burial Ground Medicare Improvement maternity centre Public Convenience Public Convenience Market Market Construction Parking Development Other Projects Other Projects Municipal Office Building Improvement Area to
10.00
14.00
24.00
180.00 10.00 50.00 25.00
5.00 25.00 155.00 -
5.00 25.00 -
5.00 -
5.00 -
200.00 60.00 205.00 25.00
75.00
25.00
100.00
Chapter 14
b) II
Wind Mill E-Governance E-Governance & System Improvement in GIS Platform Property Mapping Total
200.00
200.00
a) b)
5.00 4112.00
25.00 9072.00
8737.00
3538.00
34.00 1648.00
59.00 5.00 27107.00
The initial building blocks of the Corporate Plan are the elements required to sustain the towns 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) b) c) d) e) f) g) Water Supply Sewerage and Sanitation Solid Waste Management Storm Water Drains Urban Service for Poor (Slum Upgradation) Roads, traffic and transportation 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 I a) Regional Level Preparation & implementation of integrated waterbodies restoration and Mgmt Plan Rettai Eri b) Expedition of MAP Region Development Study Study under progress CII co-ordinating DTCP, CMDA, CMA, TNRDC, PWD, TNUIFSL encouraging PPPs, NHAI) c) Preparation of Regional Traffic Operational 5.00 NHAI Total 150.00 Funding By DTCP / CMA, TNUIFSL
Chapter 14
and Management Plan d) Development of Chennai - Manali - Ennore Corridor linking to Ennore Port and the Great Northern Trunk Road e) Feasibility Study for extension of Metro Rail between Chennai and Madhavaram f) Setting up of Resource Center for Technology and Efficiency upgradation of industrial skills II a) Town Level Feasibility study for construction of channel for 10 Km long from Retteri 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 increasing the height of channel for 2ft from Retteri through Tahnigachalam Nagar upto Moolakadai c) Awareness Campaign for NGOs on their roles and responsibilities in community development Total 252.00 5.00 Municipality 60.00 Water Resources Dept, GoTN / NGO 10.00 Water Resources Dept, GoTN / NGO 10.00 TIDCO / Tech Educational Institutions & Industries Study under progress 12.00 TIDCO (coordinating DTCP,CMA,TNRDC, TNUIFSL / ILFS, NHAI) Railway Authority
Table 14-3:Projects under Implementation by the Municipality Total Cost 10.00 61.00 71.00 Mun Cout. 0.00
S.No a) b)
Particulars Laying of BT Roads Construction of SWD Total
Loan 0.00
Grant 10.00 61.00 71.00
Funding By 100% Grant 100% Grant
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:
Chapter 14
Table 14-4: Multi Year Investment Plan and Means of Finance Multi Year Investment Plan 20102011201211 12 13
S.No. A 1
2a
2b
3a
3b
Particulars Physical Infrastructure Facilities Water Supply Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Grant Municipality Own Funds Total Sewerage - Phase I Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Grant Municipality Own Funds Total Sewerage - Phase II Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Grant Municipality Own Funds Total SWD - Comprehensive Drainage Master Plan Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total SWD - New Pucca Drains Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Grant Municipality Own Funds Total
200910
201314
Total
0.00 0.00 0.00 0.00 0.00 0.00 3600.00 252.00 3852.00 1540.80 1926.00 385.20 3852.00 0.00 0.00 0.00 0.00 0.00 0.00
3600.00 521.64 4121.64 1731.09 2060.82 329.73 4121.64 0.00 0.00 0.00 0.00 0.00 0.00 1500.00 217.35 1717.35 601.07 858.68 257.60 1717.35
2400.00 540.10 2940.10 1234.84 1470.05 235.21 2940.10 0.00 0.00 0.00 0.00 0.00 0.00 820.00 184.54 1004.54 351.59 502.27 150.68 1004.54
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6000.00 1061.74 7061.74 2965.93 3530.87 564.94 7061.74 3600.00 252.00 3852.00 1540.80 1926.00 385.20 3852.00 2320.00 401.89 2721.89 952.66 1360.94 408.28 2721.89
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.00 0.43 3.43 3.43 3.43 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 1470.00 330.81 1800.81 720.33 900.41 180.08 1800.81
0.00 0.00 0.00 0.00 1060.00 329.44 1389.44 555.78 694.72 138.94 1389.44
0.00 0.00 0.00 0.00 995.00 400.54 1395.54 558.22 697.77 139.55 1395.54
3.00 0.43 3.43 3.43 3.43 3525.00 1060.80 4585.80 1834.32 2292.90 458.58 4585.80
Chapter 14
3C
4A
4B
4C
4D
4E
SWD - Upgradation of Existing Drains Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Grant Municipality Own Funds Total SWM - Integrated Solid Waste Mgmt Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total SWM Primary & Secondary Collection Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Grant Municipality Own Funds Total SWM - Land cost for Compost Yard Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total SWM - Land cost for Regional Land fill site Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total SWM - Land fill site & compost yard devt Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
50.00 11.25 61.25 24.50 30.63 6.13 61.25
100.00 31.08 131.08 52.43 65.54 13.11 131.08
0.00 0.00 0.00 0.00 0.00 0.00
150.00 42.33 192.33 76.93 96.17 19.23 192.33
7.00 0.49 7.49 7.49 7.49
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
7.00 0.49 7.49 7.49 7.49
70.00 4.90 74.90 29.96 37.45 7.49 74.90
126.00 18.26 144.26 57.70 72.13 14.43 144.26
5.00 1.13 6.13 2.45 3.06 0.61 6.13
5.00 1.55 6.55 2.62 3.28 0.66 6.55
5.00 2.01 7.01 2.81 3.51 0.70 7.01
211.00 27.85 238.85 95.54 119.42 23.88 238.85
0.00 0.00 0.00 0.00
1655.00 239.81 1894.81 1894.81 1894.81
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
1655.00 239.81 1894.81 1894.81 1894.81
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
1200.00 270.05 1470.05 1470.05 1470.05
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
1200.00 270.05 1470.05 1470.05 1470.05
0.00 0.00 0.00
0.00 0.00 0.00
1050.00 236.30 1286.30 514.52
700.00 217.56 917.56 367.02
0.00 0.00 0.00
1750.00 453.85 2203.85 881.54
Chapter 14
5A
5B
6A
6B
6C
B 1
Grant Municipality Own Funds Total Roads - Improvements Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Grant Municipality Own Funds Total Roads - Proposed New Roads Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Grant Municipality Own Funds Total Street Lights - New Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total Street Lights - Retrofitting & Energy Saving Total Project Cost Add : Price Inflation @ 7% Total Means of Finance ESCO Total Solar Lights Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Grant Municipality Own Funds Total Social Infrastructure Facilities Slum Improvement Total Project Cost Add : Price Inflation @ 7% Total Means of Finance
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 565.00 81.87 646.87 258.75 323.43 64.69 646.87
643.15 128.63 1286.30 795.00 178.91 973.91 389.56 486.95 97.39 973.91
458.78 91.76 917.56 680.00 211.34 891.34 356.54 445.67 89.13 891.34
0.00 0.00 0.00 349.00 140.49 489.49 195.80 244.75 48.95 489.49
1101.93 220.39 2203.85 2389.00 612.61 3001.61 1200.64 1500.80 300.16 3001.61
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 25.00 3.62 28.62 28.62 28.62
0.00 0.00 0.00 0.00 0.00 13.00 2.93 15.93 15.93 15.93
188.00 58.43 246.43 123.21 123.21 246.43 0.00 0.00 0.00 0.00
200.00 80.51 280.51 140.26 140.26 280.51 0.00 0.00 0.00 0.00
388.00 138.94 526.94 263.47 263.47 526.94 38.00 6.55 44.55 44.55 44.55
35.00 2.45 37.45 37.45 37.45 0.00 0.00 0.00 0.00 0.00
21.00 3.04 24.04 24.04 24.04 6.00 0.87 6.87 3.43 3.43 6.87
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
56.00 5.49 61.49 61.49 61.49 6.00 0.87 6.87 3.43 3.43 6.87
0.00 0.00
850.00 123.17 973.17
765.00 172.16 937.16
735.00 228.44 963.44
0.00 0.00
2350.00 523.76 2873.76
Chapter 14
7A
7B
Grant Total Education Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total Parks & Playgrounds Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Grant Municipality Own Funds Total Burial Ground Improvements Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Grant Municipality Own Funds Total Medicare Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Grant Municipality Own Funds Total Public Convenience Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Grant Municipality Own Funds Total Market Construction Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Municipality Own Funds Total Parking Area
0.00 0.00 130.00 9.10 139.10 139.10 139.10 0.00 0.00 0.00 0.00 0.00
973.17 973.17 152.00 22.02 174.02 174.02 174.02 74.00 10.72 84.72 42.36 42.36 84.72
937.16 937.16 0.00 0.00 0.00 0.00 100.00 22.50 122.50 61.25 61.25 122.50
963.44 963.44 0.00 0.00 0.00 0.00 65.00 20.20 85.20 42.60 42.60 85.20
0.00 0.00 0.00 0.00 0.00 0.00 60.00 24.15 84.15 42.08 42.08 84.15
2873.76 2873.76 282.00 31.12 313.12 313.12 313.12 299.00 77.58 376.58 188.29 188.29 376.58
0.00 0.00 0.00 0.00 0.00 180.00 12.60 192.60 96.30 96.30 192.60 10.00 0.70 10.70 8.56 2.14 10.70 50.00 3.50 53.50 48.15 5.35 53.50
10.00 1.45 11.45 10.30 1.14 11.45 5.00 0.72 5.72 2.86 2.86 5.72 25.00 3.62 28.62 22.90 5.72 28.62 155.00 22.46 177.46 159.71 17.75 177.46
14.00 3.15 17.15 15.44 1.72 17.15 5.00 1.13 6.13 3.06 3.06 6.13 25.00 5.63 30.63 24.50 6.13 30.63 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 5.00 1.55 6.55 3.28 3.28 6.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 5.00 2.01 7.01 3.51 3.51 7.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
24.00 4.60 28.60 25.74 2.86 28.60 200.00 18.02 218.02 109.01 109.01 218.02 60.00 9.95 69.95 55.96 13.99 69.95 205.00 25.96 230.96 207.86 23.10 230.96
Chapter 14
C 1a
1b
2a
2b
Development Total Project Cost Add : Price Inflation @ 7% Total Means of Finance BOLT Total Other Projects Municipal Office Building Improvement Total Project Cost Add : Price Inflation @ 7% Total Means of Finance TNUIFSL Loan Municipality Own Funds Total Wind Mill Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total E-Governance Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Grant Municiplaity Own Funds Total Property Mapping Total Project Cost Add : Price Inflation @ 7% Total Means of Finance Municipality Own Funds Total
25.00 1.75 26.75 26.75 26.75
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
25.00 1.75 26.75 26.75 26.75
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 0.35 5.35 5.35 5.35
75.00 10.87 85.87 42.93 42.93 85.87 200.00 28.98 228.98 228.98 228.98 25.00 3.62 28.62 25.76 2.86 28.62 0.00 0.00 0.00 0.00
25.00 5.63 30.63 15.31 15.31 30.63 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 34.00 13.69 47.69 42.92 4.77 47.69 0.00 0.00 0.00 0.00
100.00 16.49 116.49 58.25 58.25 116.49 200.00 28.98 228.98 228.98 228.98 59.00 17.31 76.31 68.68 68.68 5.00 0.35 5.35 5.35 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 20122010-11 2011-12 13 9072.00 1314.53 8737.00 1966.20 3538.00 1099.60
S.No. I
Particulars Project Cost Total Project Cost Add : Price Inflation @
200910 4112.00 287.84
201314 1648.00 663.41
Total 27107.00 5331.58
Chapter 14
II
7% Total Means of Finance Municipality Own Funds (including Deposits from Public) Grant TNUIFSL Loan BOOT / Private Sector Total
4399.84 648.42
10386.53 3115.39
10703.20 2372.17
4637.60 502.69
2311.41 379.81
32438.58 7018.48
2068.31 1618.91 64.20 4399.84
4395.84 2851.26 24.04 10386.53
5077.93 3253.10 0.00 10703.20
2800.52 1334.39 0.00 4637.60
1174.78 756.82 0.00 2311.41
15517.37 9814.48 88.24 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 200910 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 towns 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 ULBs 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 ULBs 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
Chapter 14
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 Scavanging Lighting Water Tax Drainage Education Total 3.000% 2.500% 2.000% ) ) ) Revenue & Capital Fund Water Supply & Drainage Fund Education Fund
2.500% } - } 2.500% 12.500% ]
Chapter 14
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 201011. 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 Residential Commercial Industrial Connection Rs. 5000 Rs. 5000 Rs. 5000 Tariff Rs.75.00 Rs.75.00 Rs.75.00 Per month per month per month
Chapter 14
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 House service connections 4200 -
Year 2004-05 Residential Commercial Industrial & Govt.
Property tax assessments 10803 1813 157
% 39% 0% 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 :
Chapter 14
2010-11 2011-12 2012-13
Phase I 100% Phase II 60% 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 Residential Commercial Industrial Deposits (in Rs) 6000 15000 15000 Tariff (in Rs) 75 300 450
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 ;
Chapter 14
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 Stalls Shops Nos. 125 75 Rent per Month Rs. 3000/Rs. 6000/Deposit Rs. 50000/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 Four Wheelers Two Wheelers Parking Nos. 100 200 Rent per Annum Rs. 5 lacs 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.
Chapter 14
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 Personnel Cost Others Terminal & Retirement Benefits Operative Expenses Repairs & Maintenance Program Expenses Administrative Expenses 5.00% 5.00% 5.00% 7.50% 5.00% 2.50% 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 Roads Strom Water Drains New Projects (other than Sewerage & Water supply) Strom Water Drains Solid Waste Management Rs. in lakhs 0.50 3.05 Rs. in lakhs 176.25 98.05
Chapter 14
Roads Street Lights Slum Development Education - School Maternity Center Improvement to Parks Market Public Convenience Burial Ground Municipal Office Building E-Governance & Property Mapping Wind Mill Total
19.40 5.00 28.20 8.46 6.00 8.97 6.90 1.80 0.72 3.00 1.92 2.50 370.72
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 :
Chapter 14
Table 14-12: Assumptions Provision of doubtful debts Provision for Doubtful Debts is assumed @ Provision for Doubtful Debts is assumed @ Provision for Doubtful Debts is assumed @ 2% 1% 0% on total revenue for Revenue Fund on total revenue for Water Fund 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 over the next 5 years. The arrears property tax collection is over the next 5 years. 72% 55% The same shall improve to The same shall improve to 95% 70%
b) Profession tax
Table 14-14: Assumptions Profession tax The current profession tax collection is over the next 5 years. The arrears profession tax collection is over the next 5 years. 92% 22% The same shall improve to The same shall improve to 97% 60%
c) Other Non Tax Income

Table 14-15: Assumptions Other Non Tax Income The current rental / lease collection is over the next 5 years. The arrears collection % of rent / lease is over the next 5 years. 90% The same shall be 97%
9%
The same shall improve to
50%
d) Water Charges
Table 14-16: Assumptions Water Charges The current water charges collection is over the next 5 years. The arrears water charges collection is over the next 5 years. Nil The same shall improve to 80%
Nil
The same shall improve to
60%
Chapter 14
e) Drainage Charges
Table 14-17: Assumptions Drainage Charges The current drainage collection is over the next 5 years. The arrears drainage collection is over the next 5 years. Nil Nil The same shall be The same shall be 80% 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 Interest Rate Repayment Period Moratorium Repayment Factor Conversion Factor Calculation a. Rate of Interest b. Repayment Period c. Loan Amount Conversion Factor Total Conversion Factor 9.5% 15 17.00 2.17 4.75 9.5% 8 14.00 2.58 20 years 9.50% 15 years 5 years 0.13 10 years 9.50 8 years 2 years 0.18
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.
Chapter 14
a)
Income and Expenditure projections
Table 14.19 captures the Income and Expenditure projections for the next 20 years with potential improvements and borrowings :
Chapter 14
Table 14-19: Consolidated Income & Expenditure for next 20 years (up to FY 2028-29)
S.No I a) b) c) d) e) f) g) h) Particulars Income Property Tax Other Taxes Assigned Revenue Devolution Fund Service Charges & Fees Grants & Contribution Sale & Hire Charges Other Income Total Income II a) b) b) c) d) e) f) g) h) Expenditure Personnel Salaries Cost Personnel Cost - Others Terminal & Ret Benefits Operating Expenses Repairs & Maintenance Program Expenses Administration Expenses Finance Expenses Depreciation Total Expenditure Surplus / (Deficit) Profit before Depreciation 169.40 1.33 38.17 222.52 30.92 0.50 17.86 212.15 137.29 830.12 (44.58) 92.71 177.87 1.40 40.08 328.07 32.46 0.51 18.75 477.74 199.32 1276.18 (430.70) -231.38 178.81 1.47 42.08 616.00 34.08 0.52 19.69 782.03 512.90 2187.58 (1172.96) -660.06 187.75 1.54 44.18 736.54 35.79 0.53 20.67 901.37 1136.25 3064.62 (1901.60) -765.35 197.14 1.62 46.39 1259.14 37.58 0.55 21.71 953.75 1760.64 4278.51 (2807.39) -1046.75 206.99 1.70 48.71 1329.41 39.46 0.56 22.79 910.12 2071.18 4630.92 (2994.70) -923.53 217.34 1.78 51.15 1403.74 41.43 0.57 23.93 840.84 1941.73 4522.52 (2810.11) -868.38 228.21 1.87 53.70 1482.38 43.50 0.59 25.13 758.23 1597.46 4191.06 (2357.75) -760.29 239.62 1.97 56.39 1565.58 45.68 0.60 26.38 673.32 1344.41 3953.95 (2052.34) -707.93 251.60 2.07 59.21 1653.62 47.96 0.62 27.70 590.09 1153.96 3786.83 (1692.12) -538.16 264.18 2.17 62.17 1746.80 50.36 0.63 29.09 506.69 1007.37 3669.45 (1454.15) -446.78 220.42 23.53 173.64 245.06 75.28 0.00 0.00 47.61 785.54 242.46 28.24 182.33 263.43 77.64 0.00 0.00 51.39 845.48 247.31 29.09 191.44 283.19 209.71 0.00 0.00 53.89 1014.63 252.26 29.96 201.01 304.43 214.85 0.00 0.00 160.51 1163.03 290.09 34.46 211.07 327.26 430.57 0.00 0.00 177.68 1471.12 295.90 35.49 221.62 351.81 522.11 0.00 0.00 209.29 1636.22 301.81 36.55 232.70 378.19 533.85 0.00 0.00 229.30 1712.41 307.85 37.65 244.33 406.56 601.41 0.00 0.00 235.51 1833.32 314.01 38.78 256.55 437.05 614.86 0.00 0.00 240.36 1901.60 361.11 44.60 269.38 469.83 686.42 0.00 0.00 263.37 2094.71 368.33 45.93 282.85 505.07 701.72 0.00 0.00 311.41 2215.30 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Chapter 14
S.No I a) b) c) d) e) f) g) h) II a) b) b) c) d) e) f) g) h)
Particulars Income Property Tax Other Taxes Assigned Revenue Devolution Fund Service Charges & Fees Grants & Contribution Sale & Hire Charges Other Income Total Income Expenditure Personnel Salaries Cost Personnel Cost - Others Terminal & Ret Benefits Operating Expenses Repairs & Maintenance Program Expenses Administration Expenses Finance Expenses Depreciation Total Expenditure Surplus / (Deficit) Profit Depreciation before
2020-21 375.70 47.31 296.99 542.95 717.39 0.00 0.00 317.88 2298.22 277.39 2.28 65.28 1845.42 52.88 0.65 30.54 426.08 892.15 3592.67 (1294.45) -402.30
2021-22 383.21 48.73 311.84 583.67 794.78 0.00 0.00 345.27 2467.51 291.26 2.39 68.54 1949.82 55.52 0.67 32.07 359.58 799.86 3559.70 (1092.20) -292.34
2022-23 390.88 50.19 327.43 627.44 812.49 0.00 0.00 354.25 2562.69 305.82 2.51 71.97 2060.35 58.30 0.68 33.67 310.02 724.63 3567.95 (1005.26) -280.63
2023-24 449.51 57.72 343.80 674.50 894.43 0.00 0.00 361.64 2781.61 321.11 2.64 75.57 2177.38 61.21 0.70 35.36 274.41 662.35 3610.73 (829.12) -166.77
2024-25 458.50 59.46 360.99 725.09 914.32 0.00 0.00 416.50 2934.85 337.17 2.77 79.35 2235.04 64.27 0.72 37.12 242.92 610.05 3609.39 (674.54) -64.50
2025-26 467.67 61.24 379.04 779.47 934.70 0.00 0.00 427.24 3049.37 354.03 2.91 83.31 2361.33 67.49 0.74 38.98 210.65 565.55 3684.98 (635.61) -70.06
2026-27 477.02 63.08 397.99 837.93 1023.30 0.00 0.00 436.26 3235.58 371.73 3.05 87.48 2495.03 70.86 0.75 40.93 179.16 527.23 3776.22 (540.64) -13.40
2027-28 486.56 64.97 417.89 900.78 1046.08 0.00 0.00 472.97 3389.24 390.32 3.20 91.85 2636.58 74.40 0.77 42.98 147.68 493.88 3881.67 (492.42) 1.46
2028-29 559.55 74.71 438.79 968.33 1139.85 0.00 0.00 485.14 3666.38 409.83 3.36 96.45 2786.47 78.12 0.79 45.13 117.60 464.55 4002.31 (335.93) 128.63
2029-30 570.74 76.95 460.73 1040.96 1165.20 0.00 0.00 521.82 3836.40 430.32 3.53 101.27 2945.21 82.03 0.81 47.38 91.33 438.52 4140.41 (304.00) 134.52
2030-31 582.15 79.26 483.76 1119.03 1191.19 0.00 0.00 564.59 4019.99 451.84 3.71 106.33 3113.35 86.13 0.83 49.75 77.60 415.21 4304.75 (284.77) 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.
Chapter 14
b)
Balance Sheet
Table 14-20: Consolidated Balance Sheet for next 20 years (up to FY 2028 29)
S.No I a)
Particulars Liabilities Liabilities Loans Contn Fund from Municipal
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
421.79 648.42 from 380.37 2367.08 2605.37 81.50 10.00 0.00 10.88 0.00 41.38 0.00 of 7.40 12.00 12.00 staff bills 7.50 Doubtful 78.34 815.83 1390.59 8890.45
1980.45 3763.81 380.37 6762.92 2804.68 81.50 10.00 0.00 14.63 82.40 41.38 0.00 7.40 12.00 13.00 7.50 93.34 815.83 959.89 17831.11
4771.45 6135.98 380.37 11840.85 3317.58 81.50 10.00 0.00 38.36 72.63 41.38 0.00 7.40 12.00 14.00 7.50 110.40 815.83 -213.07 27444.16
7954.53 6638.67 380.37 14641.36 4453.83 81.50 10.00 0.00 65.75 57.88 41.38 0.00 7.40 12.00 15.00 7.50 130.36 815.83 -2114.67 33198.71
9154.01 7018.48 380.37 15816.14 6214.47 81.50 10.00 0.00 311.64 198.97 41.38 0.00 7.40 12.00 16.00 7.50 154.12 815.83 -4922.06 35317.76
9567.59 7018.48 380.37 15816.14 8285.64 81.50 10.00 0.00 363.87 345.35 41.38 0.00 7.40 12.00 17.00 7.50 180.24 815.83 -7916.76 35033.55
8954.83 7018.48 380.37 15816.14 10227.38 81.50 10.00 0.00 389.67 368.13 41.38 0.00 7.40 12.00 18.00 7.50 207.76 815.83 -10726.87 33629.51
8091.99 7018.48 380.37 15816.14 11824.84 81.50 10.00 0.00 415.99 395.03 41.38 0.00 7.40 12.00 19.00 7.50 237.00 815.83 -13084.62 32089.84
7183.65 7018.48 380.37 15816.14 13169.25 81.50 10.00 0.00 442.84 422.47 41.38 0.00 7.40 12.00 20.00 7.50 267.47 815.83 -15136.96 30559.31
6275.30 7018.48 380.37 15816.14 14323.21 81.50 10.00 0.00 474.00 450.46 41.38 0.00 7.40 12.00 21.00 7.50 300.81 815.83 -16829.08 29206.30
5366.96 7018.48 380.37 15816.14 15330.58 81.50 10.00 0.00 505.78 479.00 41.38 0.00 7.40 12.00 22.00 7.50 336.40 815.83 -18283.23 27948.09
Contribution Government Grant Accumulated Depreciation b) Current Liabilities Tender Deposits Deposits Others
Deposit - IPPV Account Deposit on Water Conn Deposit on Sewerage Library Cess Payable Accounts Payable Advance colln Property Tax Other paybles Outstandings Rec from payable Prov for collection c)
Inter Funds Transfer Accumulated Surplus Total
Chapter 14
S.No I a)
Particulars Liabilities Liabilities Loans Contn Fund from Municipal
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
2030-31
4468.37 7018.48 from 380.37 15816.14 16222.73 81.50 10.00 0.00 538.20 508.12 41.38 0.00 of 7.40 12.00 23.00 staff bills 7.50 Doubtful 373.47 815.83 19577.68 26746.82 Water
3634.68 7018.48 380.37 15816.14 17022.59 81.50 10.00 0.00 571.26 541.87 41.38 0.00 7.40 12.00 24.00 7.50 413.14 815.83 20669.88 25728.26
3009.32 7018.48 380.37 15816.14 17747.22 81.50 10.00 0.00 604.99 576.30 41.38 0.00 7.40 12.00 25.00 7.50 454.51 815.83 21675.15 24932.80
2550.76 7018.48 380.37 15816.14 18409.57 81.50 10.00 0.00 643.56 611.41 41.38 0.00 7.40 12.00 26.00 7.50 499.12 815.83 22504.27 24426.76
2186.80 7018.48 380.37 15816.14 19019.62 81.50 10.00 0.00 682.91 647.23 41.38 0.00 7.40 12.00 27.00 7.50 546.57 815.83 23178.81 24121.92
1822.84 7018.48 380.37 15816.14 19585.16 81.50 10.00 0.00 723.04 683.76 41.38 0.00 7.40 12.00 28.00 7.50 596.09 815.83 23814.42 23815.07
1458.88 7018.48 380.37 15816.14 20112.39 81.50 10.00 0.00 763.97 725.49 41.38 0.00 7.40 12.00 29.00 7.50 648.42 815.83 24355.05 23573.71
1094.92 7018.48 380.37 15816.14 20606.28 81.50 10.00 0.00 805.72 768.06 41.38 0.00 7.40 12.00 30.00 7.50 703.58 815.83 24847.48 23351.68
730.96 7018.48 380.37 15816.14 21070.83 81.50 10.00 0.00 852.91 811.48 41.38 0.00 7.40 12.00 31.00 7.50 762.94 815.83 25183.40 23267.32
367.00 7018.48 380.37 15816.14 21509.35 81.50 10.00 0.00 901.04 855.77 41.38 0.00 7.40 12.00 32.00 7.50 825.42 815.83 25487.41 23193.78
105.76 7018.48 380.37 15816.14 21924.57 81.50 10.00 0.00 950.14 900.95 41.38 0.00 7.40 12.00 33.00 7.50 891.28 815.83 25772.17 23224.13
Contribution Government Grant Accumulated Depreciation b) Current Liabilities Tender Deposits Deposits Others
Deposit - IPPV Account Deposit on Connections
Deposit on Sewerage Library Cess Payable Accounts Payable Adv collection Property Tax Other paybles Outstandings Rec from payable Prov for collection
Inter Funds Transfer c) Accumulated Surplus Total
Chapter 14
S.No II a) b)
Particulars Assets Fixed Assets Current Assets Stock Property Tax Rec - Current Property Tax Rec - Arrears Profession Tax Rec - Current Profession Tax Rec - Arrears Rental Income - Current Rental Income - Arrears Water Charges - Current Water Charges - Arrears Sewerage Current Charges -
2009-10 3859.91 3.50 28.65 68.41 0.71 5.18 0.00 0.00 8.33 11.42 0.00 0.00 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 3835.30 8890.45
2010-11 8259.75 4.50 21.82 49.18 0.85 3.30 0.04 0.00 8.46 12.89 0.00 0.00 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 8401.28 17831.11
2011-12 18646.28 5.50 12.37 36.58 0.87 2.17 0.04 0.04 8.60 13.62 25.92 0.00 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 7623.13 27444.16
2012-13 29349.48 6.50 12.61 23.34 0.90 1.74 3.01 0.06 8.74 14.04 26.44 25.92 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 2656.87 33198.71
2013-14 33987.08 7.50 14.50 19.61 1.03 1.59 3.02 3.04 50.96 14.35 26.97 36.81 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 82.23 35317.76
2014-15 36298.49 8.50 14.79 20.39 1.06 1.67 3.02 4.54 54.57 56.70 41.27 41.70 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 -2582.19 35033.55
2015-16 36298.49 9.50 15.09 20.91 1.10 1.73 3.46 5.29 55.66 77.25 42.09 57.94 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 -4028.05 33629.51
2016-17 36298.49 10.50 15.39 21.36 1.13 1.79 3.47 6.11 56.77 86.56 54.04 65.27 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 -5600.08 32089.84
2017-18 36298.49 11.50 15.70 21.80 1.16 1.85 3.47 6.53 57.91 91.39 55.12 80.15 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 -7154.79 30559.31
2018-19 36298.49 12.50 18.06 22.24 1.34 1.90 3.98 6.73 70.62 94.46 56.22 87.18 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 -8536.47 29206.30
2019-20 36298.49 13.50 18.42 24.73 1.38 2.10 3.99 7.35 72.03 108.41 57.35 91.09 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 -9819.78 27948.09
Sewerage Charges - Arrears Licence fees Rec - Arrears Specific Grant Receivable Deposits Recoverable Staff Advance Recoverable Adv to Suppliers & Conts Other Adv Recoverable Advance to TWAD Board Funds Transfer Int due on Investments & FD Inter Funds Transfer Others c) Cash & Bank Balances Total
Chapter 14
S.No II a) b)
Particulars Assets Fixed Assets Current Assets Stock Property Tax Rec - Current Property Tax Rec - Arrears Profession Tax Rec - Current Profession Tax Rec - Arrears Rental Income - Current Rental Income - Arrears Water Charges - Current Water Charges - Arrears Sewerage Charges - Current Sewerage Charges - Arrears Licence fees Rec - Arrears Specific Grant Receivable Deposits Recoverable Staff Advance Recoverable Adv to Suppliers & Conts Other Advances Rec Advance to TWAD Board Funds Transfer Int due on Investments & FD Inter Funds Transfer Others
2020-21 36298.49 14.50 18.78 25.83 1.42 2.22 3.99 7.67 73.47 115.39 58.49 93.79 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 11036.27 26746.82
2021-22 36298.49 15.50 19.16 26.54 1.46 2.31 4.58 7.83 74.94 119.63 71.93 96.01 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 12079.14 25728.26
2022-23 36298.49 16.50 19.54 27.12 1.51 2.38 4.59 8.49 76.44 122.79 73.37 110.33 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 12897.80 24932.80
2023-24 36298.49 17.50 22.48 27.68 1.73 2.46 4.59 8.84 90.73 125.56 74.83 117.50 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 13434.66 24426.76
2024-25 36298.49 18.50 22.92 30.78 1.78 2.72 5.27 9.01 92.54 140.95 76.33 121.83 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 13768.24 24121.92
2025-26 36298.49 19.50 23.38 32.16 1.84 2.87 5.28 9.77 94.39 148.92 77.86 125.06 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 14093.49 23815.07
2026-27 36298.49 20.50 23.85 33.03 1.89 2.99 5.28 10.17 96.28 153.96 92.95 127.88 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 14362.60 23573.71
2027-28 36298.49 21.50 24.33 33.76 1.95 3.09 6.06 10.36 98.21 157.87 94.81 144.10 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 14611.87 23351.68
2028-29 36298.49 22.50 27.98 34.46 2.24 3.18 6.07 11.24 114.26 161.35 96.71 152.45 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 14732.64 23267.32
2029-30 36298.49 23.50 28.54 38.31 2.31 3.51 6.07 11.69 116.54 178.80 98.64 157.69 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 14839.35 23193.78
2030-31 36298.49 24.50 29.11 40.03 2.38 3.71 6.97 11.92 118.87 188.06 100.61 161.72 0.51 70.76 0.50 5.00 1.00 3.00 186.50 677.12 2.30 116.85 5.50 14831.27 23224.13
c)
Cash & Bank Balances Total
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)
Chapter 14
14.8
IMPACT OF POTENTIAL IMPROVEMENTS
Madhavarams 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, Madhavarams 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 Madhavarams high power costs.
Chapter 14
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 :
Summary of Borrowing and Investment Capacity Borrowing Capacity Investment Capacity (BC x 4 times) Rs. 2480.20 lacs 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 Municipalitys 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.
Summary of Borrowing and Investment Capacity Borrowing Capacity Investment Capacity (BC/0.31) -
Chapter 14 Investment Requirement Sustainable Investment Capacity % - IC / IR
Final Report: Madhavaram Municipality Rs. 27107 lacs -
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 Existing (2001-02 to 2006-07) Operating Ratio Debt Service Ratio Category Short Term (2009-10 to 2013-14) Operating Ratio Debt Service Ratio Category Long Term (2009-10 to 2028-29) Operating Ratio Debt Service Ratio Category 0.96 12% 1.71 88% 1.25 45% 3 1.27 13% 1.71 62% 1.57 40% 3 0.49 6% 0.72 25% 0.56 15% 1 Average
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.
Chapter 14
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. A I a) VI a) b) c) B I a) II a) III a) IV a) V a) VI a) VII a) b) C I a) b) II a) b) Particulars Physical Infrastructure Facilities Water Supply Improvements to Water Supply Street Lights Proposed new lights Retrofitting & energy saving devices Solar Lights Social Infrastructure Facilities Slum Improvement Improvements to Slums Education Improvements to Schools Parks & Playgrounds Improvement of compound wall parks, construction of 299.00 B&C 0:50:50 282.00 A&B 100% ULB 2350.00 A&B 100% Grant 38.00 56.00 6.00 A A A 100% ULB ESCO 0:50:50 6000.00 A 42:50:8 Total Priority Funding By L:G:M
for play ground & play equipments Burial Ground / Crematorium Improvements to Burial Ground Medicare Improvement to maternity centre Public Convenience Public Convenience Market Market Construction Parking Area Development Other Projects Other Projects Municipal Office Building Improvement Wind Mill E-Governance E-Governance & System Improvement in GIS Platform Property Mapping Total 59.00 5.00 9909.00 B B 0:90:10 100% ULB 100.00 200.00 B B 0:50:50 100% ULB 205.00 25.00 A A 90:0:10 BOLT 60.00 B 0:80:20 200.00 A 0:50:50 24.00 B 0:90:10
Chapter 14
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
A An nn ne ex xu ur re e
Annexure I - a : Minutes of Meeting: Stakeholders Workshop - Madhavaram Date of Workshop Time (Opening) Time (Closing) Sl.NO 01 02 03 04 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 : : : January 21, 2008 04:00 PM 06:30 PM DESIGNATION CONTACT NO
PERSON NAME
Mrs.Vijayalaksmi Mr.Jayaseelan Thiru. D. Shanmugam Mr. S. Sudharsanam Mr. Kumar S. Manoharan P. Lalitha E. Chandrasekaran L. Radhika G. Thukkaram V. Deivayanai J. Geetha D. Dhakshinamoorthy M. Ramani S. Sudharsanam D. Munusamy T. Ramakrishnan K. Kavitha B. Loganathan M. Karpagam P. Raman C.K. Gopal J. Saral Paulraj V. Vinayagi A. Sujatha E. Santhi R. Poovaraghavan S. Thirunavukkarasu G. Duraisamy D. Shanmugam L.G. Selvam M. Vairavan
Municipal Commissioner Municipal Engineer Chairman Vice chairman Town Planning Inspector Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor
9442330521 9445030606 044-2556834 9382708340
Annexure Sl.NO 32 33 34 PERSON NAME DESIGNATION
Final Report: Madhavaram Municipality CONTACT NO
P. Sankar T. Velayudham S. Udayakumar
Councilor Councilor 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
Annexure
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 Town roads are encroached by the people so they should be fined and need 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 Improvement is required in all parks 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
Annexure
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 Time (Opening) Time (Closing) Sl.NO 01 02 03 04 05 06 07 08 : : : November 20, 2008 11:00 AM 01:30 PM DESIGNATION CONTACT NO
PERSON NAME
Mrs.Vijayalaksmi Mr.Jayaseelan Thiru. D. Shanmugam Mr. S. Sudharsanam Mr. Kumar S. Manoharan P. Lalitha E. Chandrasekaran
Municipal Commissioner Municipal Engineer Chairman Vice chairman Town Planning Inspector Councilor Councilor Councilor
9442330521 9445030606 044-2556834 9382708340 9382811045 9940065329
Annexure Sl.NO 09 10 11 12 13 14 15 16 17 18 PERSON NAME DESIGNATION
Final Report: Madhavaram Municipality CONTACT NO
V. Deivayanai G. Thukkaram J. Geetha D. Dhakshinamoorthy D. Munusamy T. Ramakrishnan B. Loganathan P. Raman C.K. Gopal S. Ponraj Sp. Subananthan A. Sujatha E. Santhi P. Gurumoorthy P. Ramaswamy G. Duraisamy L.G. Selvam M. Vairavan P. Sankar T. Velayudham S. Udayakumar
Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor Councilor President, Association of Teachers colony Treasurer, Association of Teachers colony Councilor Councilor Civic Association Civic Association Councilor Councilor Councilor Councilor Councilor Councilor
9841912197 9940326282
9840235538
9444411198
18 19 20 21 22 23 24 25 26 27 28
9444120390 9940363319
25531414 9841625253
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
Annexure
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 Town roads are encroached by the people so they should be fined and need 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 Improvement is required in all parks 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
Annexure
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 Improvement is required in all parks 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
Annexure
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/towns 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
Annexure
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 TNUIFSLs 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.
Annexure
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 ULBs 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 unauthorized 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
Annexure
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 coordination 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
Annexure
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
Annexure
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.
Annexure
Annexure IX - a: Revenue and Capital Fund Income (Rs. In lacs) S.No. Particulars I a) Income Property Tax Property Tax for General Purpose Excess Remittance - Revenue Items b) Other Taxes Profession Tax c) Assigned Revenue Duty on Transfer of Property d) e) Devolution Fund Service Charges & Fees Trade Licence Fees Licence Fees Under PFA Act Building Licence Fees Copy Application Fees Subdivision fees Other Fees f) Grants & Contribution Grants for Schemes Implementation Others Grant g) h) Sale & Hire Charges Other Income Development Charges Road Cut Restoration Charges Road formation charges Other Income Miscellaneous Recoveries Project Overhead Appr - Expenses Project Overhead Appr - Interest Interest from Banks Interest from Investments I.P.P.V.Grant Cable T.V. fees Deposit Lapsed & Forfeited Others Total Income 9.90 0.17 6.98 444.42 12.72 4.25 10.54 0.90 4.22 0.21 12.24 3.52 7.49 1.11 28.26 1.75 0.09 10.17 2.45 0.01 446.23 0.95 6.36 12.48 0.83 35.07 4.85 0.09 9.58 0.15 0.01 731.21 1.93 7.93 2.36 4.23 41.52 4.25 7.50 10.23 9.28 0.02 734.70 10.57 9.89 6.37 0.80 18.54 42.46 1.43 12.66 10.78 0.70 0.01 722.28 4.43 0.67 22.36 9.54 0.17 11.27 1.26 829.47 3.31 5.41 0.64 1.87 1.01 0.39 0.72 0.81 2.02 2.59 0.07 6.28 2.03 0.17 1.60 2.70 0.06 8.00 0.16 10.42 2.84 0.07 13.34 2.10 5.89 2.67 0.06 12.79 0.80 2.68 3.87 3.99 0.06 21.23 0.61 4.10 7.19 3.02 0.06 18.14 0.48 35.15 191.43 70.96 98.66 138.84 318.09 181.06 331.21 140.82 208.59 208.08 334.65 197.26 14.06 14.10 16.99 19.13 20.66 19.29 102.36 0.47 105.19 120.07 130.70 132.75 160.98 Audited 2001-02 2002-03 2003-04 2004-05 2005-06 Unaudited 2006-07
Annexure
Annexure IX - b: Revenue and Capital Fund Expenditure(Rs. In lacs) S.No Particulars . II a) b) c) Expenditure Personnel Cost - Salaries Pay and Allowances Personnel Cost - Others Supply of Uniform Terminal & Retirement Benefits Pension Commutation of Pension SPF & Gratituity GIS Management contribution Pension contribution Others d) Operating Expenses Wages Power Charges for Street lights Maintenance - Street Lights Sanitary expenses & materials Rent of Building Privatisation of Sanitary works e) Repairs & Maintenance Light Vehicle Maintenance Heavy Vehilce Maintenance Repairs & Maintenance - Buildings Repairs & Maintenance - Roads Repairs & Maintenance - Drainage & Culv. Repairs & Maintenance - Others f) Programme Expenses Election Expenses Others g) Administration Expenses Telephone Charges Legal Expenses Stationery & Printing Travel Expenses Computer Operating Expenses Postage & Telegram 1.11 0.07 1.81 0.16 0.15 1.14 0.15 3.96 0.12 0.26 0.06 1.31 0.32 5.70 0.27 0.27 0.10 2.59 0.57 3.88 0.21 0.42 0.12 2.97 0.05 4.90 0.19 1.70 0.11 3.12 0.18 10.30 0.31 0.80 0.18 3.65 1.97 1.98 1.66 0.04 1.98 0.06 0.40 4.01 1.62 11.25 0.62 7.60 1.03 0.24 1.13 9.04 1.73 5.74 1.45 0.06 1.09 14.86 0.76 0.24 16.38 1.79 0.08 1.42 22.87 0.16 0.55 0.15 1.02 18.57 0.74 1.78 3.04 0.50 5.51 6.96 10.28 2.84 2.11 5.59 24.91 12.32 2.29 1.34 6.23 42.73 17.31 22.39 5.89 5.66 17.64 37.56 5.93 37.53 22.77 7.23 47.03 48.46 34.57 15.04 48.45 6.93 2.70 0.15 1.24 0.13 6.76 6.26 0.71 1.24 3.23 3.21 8.40 7.03 0.24 1.24 4.47 1.89 1.24 10.07 27.06 0.43 1.24 12.54 1.12 0.15 0.78 1.65 1.18 1.84 0.94 1.15 123.49 120.50 129.47 141.35 130.81 162.46 Audited 2001-02 2002-03 2003-04 2004-05 2005-06 Unaudite d 2006-07
Annexure Audited 2001-02 0.09 1.15 3.66 1.08 0.52 5.88 29.68 0.32 0.30 123.68 360.76 83.66 2002-03 0.50 0.75 1.08 1.85 4.87 39.89 32.50 0.31 0.34 136.41 435.33 10.90
Final Report: Madhavaram Municipality Unaudite d 2006-07 0.55 0.55 0.90 0.90 2.22 8.79 32.13 0.65 1.43 303.69 720.30 109.17
S.No Particulars . Advertisement Electricity - Office Building Contributions Sitting Fees for Councillors Others h) Finance Expenses Provision for Doubtfull collection Interest on Loans / Ways Means Adv / OD Irrecoverable Revenue Items Written off Audit Fees Others I) Depreciation Total Expenses Surplus / (Deficit) for the year
2003-04 0.80 1.16 0.99 0.90 3.13 26.93 16.87 0.65 0.23 128.05 442.27 288.94
2004-05 0.93 0.53 7.48 1.08 0.89 5.39 20.15 5.10 0.62 0.22 243.17 541.47 193.23
2005-06 2.63 0.65 0.96 0.96 1.24 0.67 25.22 0.65 3.05 407.61 760.14 (37.86)
Annexure IX - c: Water Supply and Drainage Fund(Rs. In lacs) Audited S.No. Particulars I a) Income Property Tax Water Supply & Drainage Tax Excess Remittance b) Service Charges & Fees Initial amount for WSNSC Income for giving new water connections c) Other Income Other Income Project Overhead Appr - Expenses Interest from Banks & Investment Total Income II a) Expenditure Personnel Salaries Cost Pay and Allowances b) Operating Expenses 2.24 2.46 5.06 6.23 7.06 2.94 40.56 1.12 0.10 36.11 1.81 0.15 40.66 0.55 3.29 49.59 0.06 5.59 0.06 52.47 0.19 15.39 0.23 74.70 3.95 0.25 0.05 3.45 4.05 1.18 33.51 0.16 34.64 38.65 45.75 43.31 53.66 200102 2002-03 200304 200405 2005-06 Unaudit ed 2006-07
Annexure Audited S.No. Particulars Hire Charges for Supply of water c) Repairs & Maintenance Heavy Vehilce Maintenance Maintenance exps for water supply works Water cess d) Administration Expenses Printing & Stationery e) Finance Expenses Provision for doubtful collection Interest on Loan, ways & means Irrecoverable revenue items w/off Bank charges f) Depreciation Total Expenses 1.56 0.01 7.68 44.10 0.98 4.89 10.83 9.94 73.63 2.28 11.03 2.57 11.07 1.89 200102 19.30 2002-03 29.00
Final Report: Madhavaram Municipality Unaudit ed 200304 35.03 200405 2005-06 47.73 2006-07 40.26
12.94 0.03
18.55 -
15.02 1.30
0.15
1.04 16.49 10.88 81.47
1.59 1.70 1.97 5.26
0.20 9.27 23.69 105.67
1.49 8.98 21.73 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) Audited S.No Particulars 2001-02 I a) Income Property Tax Education Tax Excess Collection b) Other Income Interest from Bank & Investment Project Overhead Appr Expenses Total Income II a) Expenditure Terminal & Retirement Benefits SPF cum Gratuity b) Repairs & Maintenance 0.49 2.13 37.62 0.64 1.05 37.59 0.53 42.64 3.29 0.55 49.59 3.57 3.74 53.45 3.43 2.23 59.32 35.33 0.16 35.90 42.11 45.75 46.14 53.66 2002-03 2003-04 2004-0 2005-06 2006-07 Unaudited
Annexure Maintenance of School Building c) Finance Expenses Provision for doubtful collection Irrecoverable revenue written off d) Depreciation Total Expenses Surplus / (Deficit) for the year 1.56 0.91 2.48 35.14 0.98 10.83 1.88 14.18 23.41 1.04 1.79 2.83 39.81 0.01 -
Final Report: Madhavaram Municipality -
1.59 1.70 1.97 5.26 44.33
0.20 3.59 3.79 49.66
1.49 4.37 5.86 53.46
Annexure
Annexure IX - e: Summary of Income and Expenditure Accounts (Rs.in lacs.)

Audited 2001-02 S.No Particulars Rev & Capital I a) b) c) d) e) f) g) h) Income Property Tax Other Taxes Assigned Revenue Devolution Fund Service Charges & Fees Grants & Contribution Sale & Hire Charges Other Income 102.83 14.06 191.43 70.96 12.74 2.51 0.00 49.89 33.67 3.95 2.94 35.49 2.13 171.99 14.06 191.43 70.96 16.69 2.51 0.00 54.96 105.19 14.10 98.66 138.84 21.34 1.01 0.00 67.09 34.64 0.25 1.22 35.90 1.69 175.73 14.10 98.66 138.84 21.59 1.01 0.00 70.00 120.07 16.99 318.09 181.06 24.24 0.39 0.00 70.37 38.65 0.05 1.96 42.11 0.53 200.83 16.99 318.09 181.06 24.29 0.39 0.00 72.86 130.70 19.13 331.21 140.82 22.87 0.72 0.00 89.25 45.75 0.00 3.84 45.75 3.84 222.20 19.13 331.21 140.82 22.87 0.72 0.00 96.93 132.75 20.66 208.59 208.08 37.18 0.81 0.00 114.21 43.31 3.45 5.71 46.14 7.31 222.20 20.66 208.59 208.08 40.63 0.81 0.00 127.23 160.98 19.29 334.65 197.26 56.85 2.02 0.00 58.42 53.66 5.23 15.81 53.66 5.66 268.30 19.29 334.65 197.26 62.08 2.02 0.00 79.89 Water Supply Elem'tary Education Total Rev & Capital 2002-03 Water Supply Elem'tary Education Total Rev & Capital 2003-04 Water Supply Elem'tary Education Total Rev & Capital 2004-05 Water Supply Elem'tary Educatio n Total Rev & Capital 2005-06 Water Suppl y Elem'tar y Educati on Total Rev & Capital Unaudited 2006-07 Water Supply Elem'ta ry Educati on Total
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 a) b) c) d) e) f) g) h) I)
Expenditure Personnel Cost - Salaries Personnel Cost - Others Terminal & Retirement Benefits Operative Expenses Repairs & Maintenance Programme Expenses Admnistrative Expenses Finance Expenses Depreciation 123.49 0.78 11.15 27.70 22.36 5.62 9.80 36.18 123.68 2.24 19.30 13.31 0.00 1.57 7.68 0.00 0.01 1.56 0.91 125.73 0.78 11.15 47.00 35.68 5.62 9.80 39.31 132.27 120.50 1.65 21.41 46.45 19.15 1.98 9.87 77.91 136.41 2.46 29.00 15.53 0.00 16.70 9.94 0.49 0.00 11.81 1.88 122.96 1.65 21.90 75.45 34.68 1.98 9.87 106.42 148.23 129.47 1.18 16.91 88.66 16.71 1.66 11.82 47.81 128.05 5.06 35.03 12.97 0.00 17.53 10.88 0.00 0.00 1.04 1.79 134.53 1.18 16.91 123.69 29.68 1.66 11.82 66.38 140.72 141.35 1.84 17.67 66.75 18.49 2.02 18.70 31.48 243.17 0.00 0.00 0.00 0.00 3.29 1.97 0.00 0.00 3.29 1.97 141.35 1.84 17.67 66.75 18.49 2.02 18.70 38.06 247.11 130.81 0.94 1.67 120.49 25.15 0.46 16.36 29.59 407.61 6.23 47.73 18.55 0.00 9.47 23.69 0.00 0.00 0.20 3.59 137.04 0.94 1.67 168.22 43.70 0.46 16.36 39.26 434.89 162.46 1.15 13.81 146.52 25.65 4.01 20.01 43.00 303.69 7.06 40.26 16.32 0.15 10.47 21.73 0.00 0.00 5.86 0.00 169.52 1.15 13.81 186.78 41.97 4.01 20.16 59.33 325.42
Total Expenditure Surplus / (Deficit)
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 (53.20 )
3.79
842.54
720.30
95.99
5.86
822.15
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)
49.66
(14.34)
109.17
(21.29)
53.46
141.34
Annexure
Annexure IX - f: Summary of Income and Expenditure Accounts in Percentage (Rs. In lacs)

Audited S.No Particulars Rev & Capital 2001-02 Water Supply Elem'tary Education Total Rev & Capital 2002-03 Water Supply Elem'tary Education Total Rev & Capital 2003-04 Water Supply Elem'tary Education Total Rev & Capital 2004-05 Water Supply Elem'tary Education Total Rev & Capital 2005-06 Water Supply Elem'tary Education Total Rev & Capital Unaudited 2006-07 Water Supply Elem'tary Education Total
Income (% of Total Income)
a) b) c) d) e) f) g) h)
Property Tax Other Taxes Assigned Revenue Devolution Fund Service Charges & Fees Grants & Contribution Sale & Hire Charges Other Income
23% 3% 43% 16% 3% 1% 0% 11%
83% 10% 7%
94% 6%
33% 3% 37% 14% 3% 0% 0% 11%
24% 3% 22% 31% 5% 0% 0% 15%
96% 1% 3%
96% 4%
34% 3% 19% 27% 4% 0% 0% 13%
16% 2% 44% 25% 3% 0% 0% 10%
95% 0% 5%
99% 1%
25% 2% 39% 22% 3% 0% 0% 9%
18% 3% 45% 19% 3% 0% 0% 12%
92% 0% 8%
92% 8%
27% 2% 40% 17% 3% 0% 0% 12%
18% 3% 29% 29% 5% 0% 0% 16%
83% 7% 11%
86% 14%
27% 2% 25% 25% 5% 0% 0% 15%
19% 2% 40% 24% 7% 0% 0% 7%
72% 7% 21%
90% 10%
28% 2% 35% 20% 6% 0% 0% 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) b) c) d) e) f) g) h) I)
Personnel Cost Salaries Personnel Cost Others Terminal & Retirement Benefits Operative Expenses Repairs & Maintenance Programme Expenses Admnistrative Expenses Finance Expenses Depreciation
34% 0% 3% 8% 6% 2% 3% 10% 34%
5% 44% 30% 0% 4% 17%
0% 0% 63% 37%
31% 0% 3% 12% 9% 1% 2% 10% 32%
28% 0% 5% 11% 4% 0% 2% 18% 31%
3% 39% 21% 0% 23% 13%
3% 0% 83% 13%
24% 0% 4% 14% 7% 0% 2% 20% 28%
29% 0% 4% 20% 4% 0% 3% 11% 29%
6% 43% 16% 0% 22% 13%
0% 0% 37% 63%
26% 0% 3% 23% 6% 0% 2% 13% 27%
26% 0% 3% 12% 3% 0% 3% 6% 45%
0% 0% 0% 0% 63% 37%
0% 0% 63% 37%
26% 0% 3% 12% 3% 0% 3% 7% 45%
18% 0% 0% 16% 3% 0% 2% 4% 56%
6% 45% 18% 0% 9% 22%
0% 0% 5% 95%
16% 0% 0% 20% 5% 0% 2% 5% 52%
23% 0% 2% 20% 4% 1% 3% 6% 42%
7% 42% 17% 0% 11% 23%
0% 0% 100% 0%
21% 0% 2% 23% 5% 0% 2% 7% 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%
Annexure
Annexure IX - g: Growth in Revenue and Cost for Last 5 Years S.N o 200405 200506 200607
Particulars
2002-03
2003-04
Simple Average
Comp. Average
I a) b) c)
Income Property Tax Other Taxes Assigned Revenue - Duty on Transfer of Property - Entertainment Tax 48.46% 95.66% 222.41% 30.41% 4.12% 22.22% 37.02% 47.76% 60.43 % -5.20% 40.30% 0.00% 29.28% 14.96% 35.60% 2.17% 0.28% 14.28% 20.50% 10.64% 12.60% 0.00% 8.00% 20.75 % -6.63% 9.57% 6.95% 11.20% 7.44%
d) e)
Devolution Fund Service Charges & Fees - Water Charges - Water Connection Charges - Others
93.67% 67.50% -59.76% 27.37%
-80.00% 13.59% -61.39% 4.09%
100.00 % -5.65% 84.62% 33.04%
62.57% 12.50% 31.26%
51.59 % 52.90 % 149.38 % 37.21 %
0.00% -44.42% 38.18% 25.07% 0.00% 11.71%
6.48% 69.25% -3.90% 9.07%
f) g) h)
Grants & Contribution Sale & Hire Charges Other Income
II a) b) c) d) e) f) g) h) I)
Expenditure Personnel Cost - Salaries Personnel Cost - Others Terminal & Retirement Benefits Operative Expenses Repairs & Maintenance Program Expenses Administrative Expenses Finance Expenses Depreciation -2.20% 111.54 % 96.41% 60.53% -2.80% 64.77% 0.71% 170.72 % 12.07% 9.41% -28.48% -22.79% 63.94% -14.42% -16.16% 19.76% -37.62% -5.07% 5.07% 55.93% 4.49% 46.03% 37.70% 21.69% 58.21% 42.66% 75.60% -3.05% 48.91% 90.55% 152.01 % 136.34 % 77.23% 12.51% 3.15% 75.99% 23.70 % 22.34 % 726.95 % 11.03 % -3.96% 771.74 % 23.23 % 51.12 % 25.17 % 6.59% 22.48% 142.90% 48.30% 15.49% 127.05% 17.88% 28.94% 26.68% 6.97% 9.49% 4.77% 59.48% 3.53% -5.73% 21.14% 10.19% 29.21%
Annexure
Final Report: Madhavaram Municipality Annexure IX - h: Revenue and Capital Fund Balance Sheet (Rs. in lacs)
S.No I a)
Particulars Liabilities Liabilities Loan from TUFIDCO Loan from TNUDF Contribution from Government Grant from Government Accumulated Depreciation Current Liabilities Tender Deposits Deposits Others Deposit - IPPV Account Library Cess Payable Accounts Payable Advance collection of Property Tax Other paybles Outstandings Recoveries from staff bills payable Provision for Doubtful collection Inter Funds Transfer Accumulated Surplus Total Assets Fixed Assets Land Buildings Bridges & Culverts Roads & Pavements Tools & Plant Strom Water Drains,Open drains & Culverts Heavy & Light Vehicles Furniture & Fixtures Projects in Progress Electrical Instalation Instruments in Hospital Current Assets Stock Property Tax Recoverable Current Property Tax Recoverable Arrears Profession Tax Recoverable Current Profession Tax Recoverable Arrears Licence fees Recoverable Arrears Specific Grant Receivable Deposits Recoverable Staff Advance Recoverable
Audited 2001-02
2002-03
2003-04
2004-05
2005-06
Unaudited 2006-07
20.68 221.55 59.87 26.99 611.71 27.29 108.25 10.00 49.37 4.68 24.84 4.91 38.51 37.84 624.36 1870.85
11.04 212.97 133.66 28.31 748.12 28.53 104.53 3.74 60.08 2.24 1.48 11.75 7.85 5.67 31.22 38.87 547.03 1977.09
9.71 203.86 199.63 27.66 876.18 40.53 108.18 63.55 1.48 3.80 11.98 6.82 34.35 53.27 847.25 2488.25
60.3 193.39 259.36 98.34 1119.33 40.57 10.00 3.59 73.47 4.09 0.30 8.63 3.7 19.42 68.76 1073.97 3037.22
269.34 177.44 361.00 115.32 1526.95 57.41 10.00 3.65 69.85 4.08 1.92 12.80 4.53 20.09 87.43 1056.86 3778.67
250.32 165.68 361.01 227.77 1830.65 71.87 10.00 41.38 4.08 10.49 5.82 29.03 119.79 1166.03 4293.92
b)
c) II a)
179.44 82.98 42.83 550.31 1.12 168.86 60.66 10.85 22.78 29.20 0.32 4.94 52.18 80.60 25.83 0.51 260.22 -
64.50 191.09 42.83 686.10 4.85 182.57 66.42 14.16 1.69 32.19 0.32 3.55 42.95 76.33 25.82 0.51 69.14 0.24 -
64.50 227.37 42.83 785.46 4.85 360.09 67.53 15.53 32.19 0.32 1.67 138.82 11.02 0.51 69.74 0.24 -
64.50 298.17 42.83 1069.22 9.87 395.53 72.05 20.97 32.19 0.32 0.52 51.04 90.73 2.22 11.02 0.51 69.94 0.24 -
64.50 366.11 42.83 1434.93 16.42 479.33 134.60 21.29 44.92 0.32 0.45 54.60 116.22 1.87 12.49 0.51 80.72 0.24 5.25
64.50 396.39 1612.39 23.68 565.99 147.17 22.51 38.00 54.93 0.32 0.62 60.01 113.19 0.37 12.02 0.51 70.76 0.24 4.51
b)
Annexure S.No Particulars Advance to Suppliers & Contractors Other Advances Recoverable Funds Transfer Interest due on Investments & Fixed deposits Others Cash & Bank Balances Cash on Hand Banks Accounts Fixed Deposits Total Audited 2001-02 4.43 152.68 75.53 1.60 62.98 1870.85
Final Report: Madhavaram Municipality Unaudited 2006-07 0.91 2.37 677.12 7.51 0.77 275.13 142.00 4293.92
2002-03 4.43 132.00 165.48 0.09 2.85 148.89 18.09 1977.09
2003-04 4.43 132.51 275.74 0.19 2.85 181.77 68.09 2488.25
2004-05 0.91 4.22 414.68 6.10 2.88 0.92 87.55 288.09 3037.22
2005-06 0.91 2.45 619.07 5.79 0.45 82.40 190.00 3778.67
c)
Annexure IX - i: Water Supply and Drainage Fund Balance Sheet (Rs. in lacs) S.N o I a) Particulars Liabilities Liabilities Contribution from Government Loan from TNUDF Loan from TUFIDCO Accumulated Depreciation Current Liabilities Reserve for Doubtful Collof Revitems Tender Deposit Outstandings Advance collection of Property Tax Inter Funds Transfer Accumulated Surplus/Deficit Total Assets Fixed Assets Land Buildings Heavy & Light Vehicles Tools & Plant Water Supply Head works,OHT etc Ground Water & Bore well Water Supply Pipelines Hand Pump Current Assets Stock on Hand Audited 2001-02 2002-03 2003-04 2004-05 2005-06 Unaudited 2006-07
43.39 85.92
166.50 36.19 95.86
2.00 159.45 28.99 106.75
19.35 159.45 18.76 130.67
19.35 151.79 12.38 154.37
19.36 186.56 6.81 176.10
b)
5.97 0.11 0.51 75.58 58.89 270.37
3.28 0.22 0.03 0.44 165.58 11.33 479.43
4.32 0.41 0.44 276.24 (26.86) 551.74
3.42 1.42 1.20 415.19 (71.20) 678.26
3.610 3.22 1.20 619.58 (119.16 ) 846.34
5.100 3.75 1.20 696.04 (140.45) 954.47
c)
II a)
35.21 24.77 13.50 11.11 14.43 35.71 9.78 70.12 2.24
13.99 24.77 13.88 13.26 37.04 55.91 9.78 70.12 2.15
13.99 24.77 14.38 17.69 65.25 76.45 17.80 70.12 1.66
13.99 25.16 14.38 22.23 70.86 147.09 57.13 71.46 0.36
13.99 25.16 14.38 29.03 169.57 193.06 71.72 72.57 -
13.99 32.17 14.38 34.44 202.04 197.10 89.59 106.41 0.32
b)
Annexure WSD Tax Receivable Current WSD Tax Receivable Arrears Advance to TWAD Board Interest due on Investment Cash & Bank Balances Cash on Hand WSD Fund - Bank Accounts Fixed Deposit Total
17.40 26.82 9.28 270.37
14.32 25.40 186.50 0.09 4.21 8.00 479.42
46.23 186.50 6.40 10.50 551.74
17.01 30.20 186.50 0.57 0.25 5.57 15.50 678.26
18.20 38.69 186.50 0.12 0.10 2.75 10.50 846.34
20.01 37.68 186.50 0.07 0.23 9.04 10.50 954.47
c)
Annexure IX - j: Education Fund Balance sheet (Rs. in lacs) Audited S.No I a) b) Particulars Liabilities Liabilities Accumulated Depreciation Current Liabilities Tender Deposit Advance collection of Property Tax Provision for dobtfuldebts Outstandings Deposits - Others Accumulated Surplus/(Deficit) Total Assets Fixed Assets Land Buildings Current Assets Education Tax Rec Current Education Tax Rec Arrears Inter Fund Transfer Other Advances Accrued Interest Others Cash & Bank Balances Cash on Hand Bank A/cs Fixed Deposit Total 2001-02 2002-03 2003-04 2004-05 200506 Unaudited 2006-07
11.13 0.07 5.98 0.31 6.03 175.60 199.12
13.02 0.17 0.44 3.42 0.04 5.66 217.59 240.34
14.80 0.17 0.44 4.47 0.04 5.66 258.55 284.13
16.78 0.22 1.20 3.27 312.26 333.73
20.37 0.98 1.20 3.47 372.40 398.42
24.74 1.21 1.20 4.96 425.86 457.97
c) II a)
65.51 38.12 17.39 26.96 37.89 0.48 12.77 199.12
65.51 48.76 14.32 25.53 38.99 0.48 0.63 11.12 35.00 240.34
65.51 48.76 17.35 29.02 53.78 0.48 2.23 67.00 284.13
65.51 54.31 17.01 30.34 69.26 0.53 0.27 9.50 87.00 333.73
65.51 92.10 18.20 38.83 86.46 1.07 0.10 9.15 87.00 398.42
65.51 107.84 20.00 37.82 116.85 2.30 0.17 0.23 20.25 87.00 457.97
b)
d)
Annexure Annexure IX - k: Summary of Balance sheet (Rs. in lacs)

Audited 2001-02 S.No Particulars 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 2002-03 2003-04 2004-05 2005-06
Unaudited 2006-07 Total
Rev & Capital
Water Supply
Elem'tary Education
Total
Liabilities
a) b) c) d)
Grants / Contribution Accumulated Depreciation Current Liabilities Net Surplus
329.09 611.71 305.69 624.36
43.39 85.92 82.17 58.89
11.13 12.39 175.60
372.48 708.76 400.25 858.85
385.98 748.12 295.96 547.03
202.69 95.86 169.55 11.33
13.02 9.73 217.59
588.67 857.00 475.24 775.95
440.86 876.18 323.96 847.25
190.44 106.75 281.41 (26.86)
14.80 10.78 258.55
631.30 997.73 616.15 1078.94
611.39 1119.33 232.53 1073.97
197.56 130.67 421.23 (71.20)
16.78 4.69 312.26
808.95 1266.78 658.45 1315.03
923.10 1526.95 271.76 1056.86
183.52 154.37 627.61 (119.16)
20.37 5.65 372.40
1106.62 1701.69 905.02 1310.10
1004.78 1830.65 292.46 1166.03
212.73 176.10 706.09 (140.45)
24.74 7.37 425.86
1217.51 2031.49 1005.92 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 a) b) c)
Assets Fixed Assets Current Assets Cash & Bank Balances 1149.35 658.52 62.98 214.63 46.46 9.28 103.63 82.72 12.77 1467.61 787.70 85.03 1286.72 523.39 166.98 238.75 228.46 12.21 114.27 79.95 46.12 1639.74 831.80 225.31 1600.67 637.72 249.86 300.45 234.39 16.90 114.27 100.63 69.23 2015.39 972.74 335.99 2005.65 655.01 376.56 722.75 234.39 21.32 119.82 117.14 96.77 2848.22 1006.54 494.65 2605.25 900.57 272.85 589.48 243.51 13.35 157.61 144.56 96.25 3352.34 1288.64 382.45 2925.88 950.14 417.90 690.12 244.58 19.77 173.35 177.14 107.48 3789.35 1371.86 545.15
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
Annexure
Final Report: Madhavaram Municipality Annexure IX - l: Demand Collection Balance Statement (Rs.in lacs)
S.No
Particulars Arrear s
Demand Curren t Total Arrear s
Collection Curre nt Total
Collection % Arre ars Curr ent Total
A I a) b)
2006-07 Tax Income Property Tax Profession Tax 240.93 4.83 396.80 25.00 637.73 29.83 144.56 2.90 297.60 18.75 442.16 21.65 60% 60% 75% 75% 69% 73%
Total Tax Income II a) b) Non Tax Income Water Charges Other Fees Total Non Tax Income Total Tax & Non Tax Income
245.76
421.80
667.56
147.46
316.35
463.81
60%
75%
69%
0.00 0.00 0.00 245.76
0.00 610.00 610.00 1031.8 0
0.00 610.00 610.00 1277.5 6
0.00 0.00 0.00 147.46
0.00 610.00 610.00 926.35
0.00 610.00 610.00 1073.81
60%
100 % 100 % 90%
100% 100% 84%
III
S.No Particulars B 2005-06 I Tax Income
Demand
Collection
Collection %
ArrearsCurrent Total ArrearsCurrent Total ArrearsCurrent Total
a) Property Tax b) Profession Tax Total Tax Income
294.23 239.81 534.04 85.32 141.53 226.85 29% 13.24 20.66 33.90 0.75 18.79 19.54 6%
59% 91% 62%
42% 58% 43%
307.47 260.47 567.94 86.07 160.32 246.39 28%
II Non Tax Income a) Water Charges b) Other Fees Total Non Tax Income 0.00 0.51 0.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0% 0% -
503.41 503.92 503.41 503.92
503.36 503.36 503.36 503.36
100% 100% 100% 100% 87% 70%
III Total Tax & Non Tax Income 307.98 763.88 1071.86 86.07 663.68 749.75 28%
Annexure
S.N o C I a) b)
Particulars Arrear s 2004-05 Tax Income Property Tax Profession Tax Total Tax Income Non Tax Income Water Charges Other Fees Total Non Tax Income Total Tax & Non Tax Income 274.36 11.02 285.38
Demand Curren t Total Arrear s
Collection Curren t Total
Collecti on % Arrears Curr ent Total
236.25 19.13 255.38
510.6 1 30.15 540.7 6
102.13 0.00 102.13
144.39 16.92 161.31
246.52 16.92 263.44
37% 0% 36%
61% 88% 63%
48% 56% 49%
II a) b)
0.00 0.51 0.51 285.89
0.00 468.90 468.90 724.28
0.00 469.4 1 469.4 1 1010. 17
0.00 0.00 0.00 102.13
0.00 468.90 468.90 630.21
0.00 468.90 468.90 732.34
0% 0% 36%
100 % 100 % 87%
100 % 100 % 72%
III
S.N o D I a) b)
Particulars
Demand Arrear s Curren t Total
Collection Arrear s Curren t Total
Collection % Arrear s Current Total
2003-04 Tax Income Property Tax Profession Tax Total Tax Income Non Tax Income Water Charges Other Fees Total Non Tax Income Total Tax & Non Tax Income 58.05 25.82 83.87 196.59 13.56 210.15 254.64 39.38 294.02 46.44 17.03 63.47 186.76 13.56 200.32 233.20 30.59 263.79 80% 66% 76% 95% 100% 95% 92% 78% 90%
II a) b)
0.00 0.00 0.00 83.87
0.00 424.37 424.37 634.52
0.00 424.37 424.37 718.39
0.00 0.00 0.00 63.47
0.00 424.37 424.37 624.69
0.00 424.37 424.37 688.16
76%
100% 100% 98%
100% 100% 96%
III
Annexure
Demand S.No Particulars Arrear s E I a) b) 2002-03 Tax Income Property Tax Profession Tax Total Tax Income Non Tax Income Water Charges Other Fees Total Non Tax Income Total Tax & Non Tax Income 202.78 25.82 228.60 174.83 14.10 188.93 377.61 39.92 417.53 Curren t Total
Collection Arrear s Curre nt Total
Collection % Arrea rs Curre nt Tot al
162.22 0.00 162.22
157.34 14.10 171.44
319.56 14.10 333.66
80% 0% 71%
90% 100% 91%
85% 35% 80%
II a) b)
0.00 0.00 0.00 228.60
0.00 411.21 411.21 600.14
0.00 411.21 411.21 828.74
0.00 0.00 0.00 162.22
0.00 411.21 411.21 582.65
0.00 411.21 411.21 744.87
71%
100% 100% 97%
100 % 100 % 90%
III
S.N o F I a) b)
Particulars
Demand Arrear Curren s t
Total
Collection Arrear Curren s t
Total
Collection % Arrear Current s
Total
2001-02 Tax Income Property Tax Profession Tax Total Tax Income Non Tax Income Water Charges Other Fees Total Non Tax Income Total Tax & Non Tax Income
252.79 25.82
184.80 14.06
437.59 39.88
107.98 0.00
90.87 14.06
198.85 14.06
43% 0%
49% 100%
45% 35%
278.61
198.86
477.47
107.98
104.93
212.91
39%
53%
45%
II
a) b)
0.00 131.38 131.38
0.00 327.50 327.50
0.00 458.88 458.88
0.00 72.60 72.60
0.00 125.58 125.58
0.00 198.18 198.18
55% 55%
38% 38%
43% 43%
III
409.99
526.36
936.35
180.58
230.51
411.09
44%
44%
44%
Annexure
Final Report: Madhavaram Municipality Annexure IX - m: Key Financial Indicators
S.No A 1 2
Indicators Resource Mobilization Per Capita Income Sources of Funds a) b) c) Share of Own Sources in Total Revenue Income (RI) Share of Property Tax in Total Revenue Income Share of Revenue Grants & Subsidies in Total RI
Value
Unit
1109
Rs. p.a
44.58 27.85 55.41 16.87 13.34 494
% % % % p.a. % Rs. p.a
3 4 5
Growth in Revenue Income Growth in Own Sources of Revenue Income Per Capita Own Income
B 1 2
Fund Application Per Capita Expenditure Uses of Funds a) b) c) Share of Establishment Expenditure in Total RE Share of O&M Expenditure in Total Revenue Expenditure Share of Establishment Expenditure to Total RI 22.44 27.82 19.14 6.80 35.33 20.37 % % % % % % p.a. 946 Rs. p.a
3 4 5
Growth in Establishment Expenditure Growth in O&M Expenditure Growth in Total Revenue Expenditure
C 1
Liability Management Per Capita Liability a) b) c) Outstanding debt per Capita Outstanding Non-Debt Liability per Capita Total Outstanding Liability Per Capita 701 701 Rs. Rs. Rs.
As a Proportion of Property Tax Current Demand a) b) c) Outstanding Debt as % of P.T Demand Outstanding Non-Debt Liability as % of P.T Demand Total Outstanding Liability as % of P.T Demand 227 227 % %
As a Proportion of Property Tax Own Revenue Income a) Outstanding Debt as % of Own Revenue Sources 163 %
Annexure S.No
Final Report: Madhavaram Municipality Value 163 18.31 % % Unit
Indicators b) c) O/s Non-Debt Liability as % of Own Revenue Sources Total Outstanding Liability as % Own Revenue Sources
4 5
Non-Debt Liability as % of Total Liability Debt Servicing Ratio (D/S Revenue Income)
D 1 2 3 4 5 6 7
Performance Indicators Operating Ratio Growth in Per Capita Own Income Growth in Per Capita Grant Growth in Per Capita Total Revenue Income Growth in Per Capita Establishment Expenditure Growth in Per Capita O&M Expenditure Growth in Per Capita Revenue Expenditure 51.56 9.47 15.63 12.59 3.69 28.91 15.68 % % % % % % %
E 1
Efficiency Indicators Tax Collection Performance (Current) a) b) c) d) Property Tax Profession Tax Water Charges Non Tax Income 70 95 100 2555 1347/3.00 1.12 7.11 % % % % Nos. Rs. p.a. Nos. Rs.lakh p.a. persons
2 3 4 5 6
No of P.T Assessment per Tax Collection Staff Property Tax Demand per Assessment No. of Municipal Staff per 1000 Population Annual Revenue (Own Source) per Municipal Staff Population per Residential P.T Assessment
Annexure IX - n: Status of Loans as on 31.03.2007 S.N Particulars o I a) b) Loan Taken Date Credit of Loan O/s as 0n 31.3.2006 Amount Repaid Princip al Intere st Total Balance as 0n 31.3.2007
TUFIDCO Schemes Roads, Drains Water Supply 16.00 59.59 July 1999 July 1999 12.36 43.39 0.99 5.40 0.39 2.48 1.38 7.88 11.37 37.99
Annexure
c)
Shelter Upgradation
31.31
1991
4.79 60.54
3.20 9.59 4.14 1.47 3.26 1.47 0.75 1.86 12.95 22.54
0.36 3.23 14.94 5.03 12.35 5.03 0.41 1.12 38.88 42.11
3.56 12.82 19.08 6.50 15.61 6.50 1.16 0.00 0.00 2.98 51.83 64.65
1.59 50.95 50.01 12.07 50.90 12.07 3.10 65.00 166.50 6.99 366.64 417.59
II a) b) c) d) e) f) g) h)
Total 106.90 TNUIFSL Schemes Roads 60.00 Solid Waste 15.00 Management Storm Water 60.00 Drains Street Lights Burial Ground Special Road Works Water Supply Roads Total Net Total 15.00 7.94 65.00 166.50 17.66 407.10 514.00
April 1997 April 1997 April 1997 April 1997 December 1990 2000 2000 December 1991
54.15 13.54 54.16 13.54 3.85 65.00 166.50 8.85 379.59 440.13
Annexure
Final Report: Madhavaram Municipality 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.
Annexure
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.
Annexure
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 Indias 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
Annexure
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
Annexure
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
Annexure
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.
Annexure
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.
Annexure
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 1 Name of Institute Dr. Ambedkar Institute of Productivity (Training Institute of National Productivity Council) Contact Details 6, SIDCO Industrial Estate, Ambattur, Chennai 600 098 Ph: 044-2625 3144 Fax:044-2625 3122 Email: npc-chennai@eth.net Courses offered 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 Natural Disaster Management Environmental Management, Hazard Prevention methods Avoidance of Pollution and maintenance of good environment Traffic Congestion Control Traffic Control and Best Practices
Environmental Training Institute
Institution of Road Transport
Institution of Labor Studies
Institute of Water Studies
76, Anna Salai, Guindy Chennai 600 032 Ph : 044-2235 3134/3159 Email: tnpceti@gias.md01.vsnl.net.in 100 feet road, Taramani Chennai 600 113 Ph:044-22541730/1761 Fax:044-2254 1761 Email : irt.taramani@vsnl.net Web: www.tn.nic.in/transport 3, Kamarajar Salai, Chennai 600 005 Ph: 044 -2844 0102/5778 Fax: 044-28440966 Taramani, Chennai 600 113 Ph: 044-22541580 Fax:044-2254 2360 Poonamallee, Chennai 600 056 Ph: 044 2627 2062 Fax: 044-24335075
Institute of Public Health
Labor Laws Various national and state acts Personnel and Industrial Acts Personnel and Industrial Management Water Supply maintenance and management Computerized design of water supply Water and Waste Water treatment 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
Annexure
Final Report: Madhavaram Municipality 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 1 2 3 4 5 6 7 Rate/unit (Rs.Lakh) sum Qty. or no. of Amount units 4.00 acres 4 4 4 4 4 1 4.00 400.00 4.00 12.00 18.00 12.00 25.00
Purchase of land, land development Lump and fencing charges amount Supply of WEG of 250 kW capacity 100.00 each Packaging , handling, loading , transportation, unloading and 1.00 insurance cover till erection of WEGs Foundation and other civil structures 3.00 Electrical and Transformers 33 KV Erection and Commissioning 4.50 3.00
Other project cost including charges for infrastructure development @ Rs. 25.00 25.00 Lakh per MW for 1.00 MW Cost of 33 KV OHT Line ( External and internal) 0.15 KM assumed approx. @ Rs. 6.50 lakh per KM or as actual Total
8 9
0.98 475.98
Project on Installation of Wind Energy Generators for commercial production of wind power Installed capacity: 1.00 MW Techno-economic parameters (Amt. Rs) S.N Parameters 1 Total Installed Capacity 2 No. of Machines 3 Wind Energy generation capacity of each machine 4 TFO 5 Margin Money 6 % of TFO 7 Bank loan 8 % of TFO 9 RoI to be charged by financing bank on term loan 10 Repayment period of term loan Rs. Rs. Rs. Value Remarks 1000 kW 4 nos. 250 kW 47597500 11899375 25 % 35698125 75 % 12% p.a. 5 year
Annexure 11 Moratorium period 12 Annual Insurance Charges (Rs./annum) 13 Annual Administrative charges (Rs./annum) Rs.
Final Report: Madhavaram Municipality 0 year 300000 p.a. throughout the economic life period of the WEG 250000 of capital investment in Plant and Machiney on yearly basis WDV 25% method
14 Depreciation rate 16 Sales Tax benefit
on civil 10% structures 175000 16.67% p.a.
15 Operation and maintenance charges (Rs/unit/annum)
6 equal installments over a period of 6 years Sales Tax benefit only in case of direct sale of (1/6th of the qualifying investment amount every electrical power generated to SEB as per PPA year less cost of land and land development arrangements. charges) at min. PLFof 12% Transfer benefit ( in the event of 3rd party sale of 17 power generated) 18 Capital Subsidy 60% of total sales tax benefit per annum 30% ( being 30% of the fixed capital investment; max. being Rs. 20,00,000 per wind farm with min. PLF of 12%) Wheeling charges for 3rd party sale of energy generated in percentage of energy available to SEB for 19 wheeling Tariff Rates of SEB for purchasing power from the 20 power generators in Rs./ kWh Sale price of electrical energy to industrial and commercial establishments wherein wheeling is 21 allowed in Rs. / kWh of electrical energy generated. 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) 24 No. of days for which wind energy generation has been considered per year in days 25 No. of days in a year the power grid is off for repair and maintenance 26 No. of hours per day for which wind power generation has been considerd (hr/day) 27 Income Tax payable 28 1st to 5th year of operation 29 6th year to 10th year of operation 30 11th year of operation onwards 0% 36.80% 36.80% 24 hrs 30 29% 335
2% 2.25
Annexure Calculation of Sale and Sales Tax Benefit Installed capacity: 1.00 MW
(Rs. Lakh) S. Sale of Electricity ( Year Year 1 N wise) 1 2 3 4 5 6 7 8 9 Capacityof WEG in kW No. of WEG 250 4 Year 2 250 4 1000 335 24 Year 3 250 4 1000 335 24 Year 4 250 4 1000 335 24 Year 5 250 4 1000 335 24 Year 6 250 4 1000 335 24 Year 7 250 4 1000 335 24 Year 8 250 4 1000 335 24 Year 9 250 4 1000 335 24 Year 10 250 4 1000 335 24
Total power generation 1000 capacity of WEGs in kW No. of days in year No. of hours/day 335 24
Total installed wind energy 8040000 8040000 8040000 8040000 8040000 8040000 8040000 8040000 8040000 8040000 generation capacity in kwh PLF capacity installed (average) of the machines 29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00% 29.00%
Actual energy generation 2331600 2331600 2331600 2331600 2331600 2331600 2331600 2331600 2331600 2331600 capacity (kwh) Net salable units generated 2331600 2331600 2331600 2308284 2308284 2308284 2308284 2308284 2308284 2308284 less transmission losses PLF of Capacity factor 0 0 0 0 0 0 0 0 0 0
@ 0% for year 1 to year 3 of operation; @1% from 10 year 4 of operation onwards Net salable units available 11 for wheeling less wheeling 2331600 2331600 2331600 2308284 2308284 2308284 2308284 2308284 2308284 2308284 losses @2% Sale price of electrical 12 energy (Rs/ unit ) or (Rs/ 2.25 kwh) 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25
Total sales realization of 5246100 5246100 5246100 5193639 5193639 5193639 5193639 5193639 5193639 5193639 wind energy generated 13 Total sales realization (Rs. 52.46 Lakhs) 78.68 52.46 78.68 52.46 78.68 51.94 78.68 51.94 78.68 51.94 78.68 51.94 51.94 51.94 51.94
14 Sales Tax benefit
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 Installed capacity: 1.00 MW

( Rs. Lakh) S.N Particulars 1 2 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income from sale of electricity sans 52.461 52.461 52.461 51.936 51.936 51.936 51.936 51.936 51.936 51.936 wheeling losses Other income 0.000 0.000 0.000
2.a. Sales tax benefit 78.678 78.678 78.678 78.678 78.678 78.678 0.000
Annexure
for 6 years 3 4 5 6 7 8 9 Total income Expenditure Insurance charges 3.000 Administrative Expenses Operation maintenance charges and 7.000 7.000 7.000 7.000 7.000 7.000 2.500 3.000 2.500 3.000 2.500 3.000 2.500 3.000 2.500 3.000 2.500
131.139 131.139 131.139 130.615 130.615 130.615 51.936 51.936 51.936 51.936 3.000 2.500 7.000 3.000 2.500 7.000 3.000 2.500 7.000 3.000 2.500 7.000
Total Expenditure
12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500
Gross Operational 118.639 118.639 118.639 118.115 118.115 118.115 39.436 39.436 39.436 39.43 Profit
Profitability statement Installed capacity: 1.00 MW

(Rs. Lakh) S.N Particulars 1 2 3 4 5 6 7 8 9 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Profit ( PBDIT) 118.639 118.639 118.639 118.115 118.115 118.115 39.436 39.436 39.436 39.436 Depreciation 109.944 82.638 62.140 46.751 35.195 26.514 19.992 15.089 11.403 8.630 36.001 56.499 71.364 82.920 91.601 19.445 24.347 28.033 30.806 0.000 0.000 0.000 0.000 0.000 Profit after depreciation but 8.695 before interest and taxes Interest on term loan
42.838 34.270 25.703 17.135 8.568
Profit after depreciation and -34.142 1.731 interest but before tax Provision for taxation 0.000 0.000 Profit after depreciation, interest -34.142 1.731 and taxes (PAT) Add back Depreciation
30.796 54.228 74.353 91.601 19.445 24.347 28.033 30.806 0.000 0.000 0.000 33.709 7.156 8.960 10.316 11.337
30.796 54.228 74.353 57.892 12.289 15.387 17.717 19.470
109.944 84.369 92.937 100.980 109.547 84.406 32.281 30.477 29.120 28.100 42.838 34.270 25.703 17.135 8.568 0.000 0.000 0.000 0.000 0.000
10 Interest on term loan
Surplus available for 11 118.639 120.370 149.435 172.343 192.467 142.297 44.570 45.864 46.837 47.569 repayment 12 Calculation for debt service coverage ratio 118.639 120.370 149.435 172.343 192.467 142.297 44.570 45.864 46.837 47.569
13 Coverage available Calculation for debt to 14 be repaid 15 Principal amount term loan of
71.396 71.396 71.396 71.396 71.40 42.838 34.270 25.703 17.14 1.039 1.139 1.539 1.947 8.568 2.407
0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
16 Interest on term loan 17 Total debt 18 DSCR
114.234 105.666 97.099 88.531 79.964 0.000
Annexure
19 Value 20 Avg. DSCR 21 Weighted DSCR 1 1.61 2.23 1 :1 :1 1 1 1 0

0 0 0 0
Schedule for calculation of depreciation Installed capacity: 1.00 MW

(Rs. Lakh) Particulars Civil Structures Opening value of civil 12.000 10.800 structures Annual depreciation Book Value Plant and machinery and electricals Opening value of plant and machinery and 434.975 326.231 244.673 183.505 137.629 103.222 77.416 58.062 43.547 32.660 electricals Annual depreciation Book Value Total depreciation Residual value annual 108.744 81.558 61.168 45.876 34.407 25.805 19.354 14.516 10.887 8.165 326.231 244.673 183.505 137.629 103.222 77.416 58.062 43.547 32.660 24.495 109.944 82.638 62.140 46.751 35.195 26.514 19.992 15.089 11.403 8.630 12.814 1.200 1.080 10.800 9.720 9.720 0.972 8.748 8.748 0.875 7.873 7.873 0.787 7.086 7.086 0.709 6.377 6.377 0.638 5.740 5.740 0.574 5.166 5.166 0.517 4.649 4.649 0.465 4.184 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Repayment schedule Installed capacity: 1.00 MW

(Rs. Lakh) Repayment Loan o/s. at the Gross Year Total Year beginning surplus Principal Interest No. outgo of the available year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 8 356.981 285.585 214.189 142.793 71.396 0.000 Total 0.000 71.396 0.000 71.396 -71.396 8.07 0.00 5 0 118.639 71.396 120.370 71.396 149.435 71.396 172.343 71.396 192.467 71.396 Loan o/s at Net Equal Avg. the end surplus DSCR Value Annual DSCR of the available Installment year 1.04 1.14 1.54 1.95 1 1.61 1 1 1 1 71.39625
42.838 114.234 285.585 4.405 34.270 105.666 214.189 14.704 25.703 97.099 142.793 52.337 17.135 88.531 71.396 83.812 8.568 79.964 0.000
112.503 2.41
Annexure Calculation of IRR, BCR and NPW Installed capacity: 1.00 MW
(Rs. Lakh) S.No. Particulars 1 2 3 4 5 6 7 8 9 10 11 Capital Cost Total Cost Benefits tax) Book Value Total benefits Net Benefits Discounting Factor (net Year 1 Year 2 Year 3 0.000 Year 4 0.000 Year 5 0.000 Year 6 0.000 Year 7 0.000 Year 8 0.000 Year 9 0.000 Year 10 0.000 475.975 0.000
Recurring Cost 12.500
12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500
488.475 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 12.500 131.139 131.139 131.139 130.615 130.615 96.906 44.781 42.977 41.620 40.600 12.814 131.139 131.139 131.139 130.615 130.615 96.906 44.781 42.977 41.620 53.414 118.639 118.639 118.115 118.115 84.406 32.281 30.477 29.120 40.914 357.336 15.00% p.a.
NPW @ 15% 333.369 Lakh D.F. BCR IRR 1.55 21.92% :1
Annexure
Annexure XIII - a: Details of Depreciation Statement for Assets as on 31.03.2007 - Revenue (Rs. in lacs)
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 20 21
Item Land Buildings Subway & Causeways Bridges & Flyovers Drains Culverts Heavy Vehicles Light Vehicles Other Vehicles Furniture, Fixtures & Office Equipments Electrical Installation Lamps Electrical Installation Others Tools & Plant CC Roads & Payments BT Roads Other Roads Project in Progress Project in Progress - Grants Ground water & Bore well Hand Pumps Instruments in Hospital Total
Gross Block 64.50 396.39 0.00 0.00 521.70 44.29 125.68 17.01 4.47 22.51 54.93 0.00 23.68 102.16 1469.17 40.61 38.00 0.00 0.00 0.00 0.32 2925.42
Depreciation 80.44 312.93 38.34 119.27 15.19 2.84 15.72 35.20 10.26 64.59 1100.30 35.25 0.32 1830.65
Net Block 64.50 315.95 0.00 0.00 208.77 5.95 6.41 1.82 1.63 6.79 19.73 0.00 13.42 37.57 368.87 5.36 38.00 0.00 0.00 0.00 0.00 1094.77
Annexure
Annexure XIII - b: Details of Depreciation Statement for Assets as on 31.03.2007 Water Supply (Rs. in Lacs) S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Item Land Buildings Heavy Vehicles Light Vehicles Electrical Installation Tools & Plant Public Fountains Water Supply Head works, OHT etc. Deep Bore Wells / Ground Water Well Hand Pumps - India Mark II Water Supply Pipe lines Project in Progress Projects in Progress - Govt. Grants Total Gross Block 13.99 32.17 14.38 0.00 0.00 34.44 0.00 202.04 197.10 106.41 89.59 0.00 0.00 690.12 Depreciation 10.19 14.38 17.00 31.57 51.45 40.21 11.30 176.10 Net Block 13.99 21.98 0.00 0.00 0.00 17.44 0.00 170.47 145.65 66.20 78.29 0.00 0.00 514.02
Annexure XIII - c: Details of Depreciation Statement for Assets as on 31.03.2007 - Education (Rs. in Lacs) S.No 1 2 3 4 5 Item Land Buildings Furnitures, Fixtures & Office Equipments Project in Progress Project in Progress - Govt.grant Total Gross Block 65.51 107.84 0.00 0.00 0.00 173.35 Depreciation 24.74 24.74 Net Block 65.51 83.10 0.00 0.00 0.00 148.61

Madhava Ram

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Madhava Ram

Uploaded by

Copyright:

Available Formats

Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL)

City Corporate cum Business Plan

Voyants Solutions Pvt. Ltd

Final Report City Corporate Cum Business Plan

EXECUTIVE SUMMARY MADHAVARAM MUNICIPALITY

SWOT and VISION

surrounding urban centers Part of Chennai Metropolitan

Lack of public utility Infrastructure

Encroachments on roads and water bodies.

High percentage of slum population

3. CITY INVESTMENT PLAN

Capital Investment Needs for Madhavaram

Estimated cost in S.N 1 2 Projects lakhs

FINANCIAL PERFORMANCE OF MADHAVARAM MUNICIPALITY

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

Summary of Borrowing and Investment Capacity

S.No. A I a) VI a) b) c) B I a) II a) III a) IV a) V a) VI a) VII a) b) C I a) b) II a) b)

Final Report: Madhavaram Municipality

-iVoyants Solutions Private Limited

Final Report: Madhavaram Municipality

- ii Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

- iii Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

- iv Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

14.6 14.7 14.8 14.9 14.10

-vVoyants Solutions Private Limited

Final Report: Madhavaram Municipality

- vi Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

- vii Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

- viii Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

- ix Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

1.3 SCOPE OF WORK:

- 10 Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

1.4 STAGE III: DRAFT FINAL STAGE

- 11 Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

1.5 PRESENTATION AND DISCUSSION WITH REVIEW COMMITTEE

- 12 Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

1.5.1 DISCUSSION WITH STAKEHOLDERS

- 13 Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

2.1 MADHAVARAM . . . TOWN PROFILE

2.2 HISTORY OF THE MUNICIPALITY

- 14 Voyants Solutions Private Limited

Final Report: Madhavaram Municipality

Figure 2-1: Regional Setting of Madhavaram Municipality

2.3 POPULATION CHARACTERISTICS 2.3.1 POPULATION DISTRIBUTION

- 15 Voyants Solutions Private Limited

Source: Primary Census Abstract of Tamil Nadu, Census of India - 2001

2.3.2 POPULATION GROWTH

2.3.3 POPULATION PROJECTIONS

Population 90306 104803 125090 140000

Growth Rate in% 1.60 1.93 1.19

2.3.4 SLUM POPULATION

2.3.5 SEX RATIO