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CITY DEVELOPMENT PLAN

VELLAKOIL MUNICIPALITY

Final ReportpAugust 2009

Submitted toThe Commissionerate of M nicipal

Submitted bySMEC (I di ) P t LtdThe Commissionerate of Municipal

Administration6th Floor, Ezhilagam Annex BuildingChepauk, Chennai – 600 005

SMEC (India) Pvt. Ltd.No. 11/6, 18th East Street,ThiruvanmiyurChennai – 600 041

CITY DEVELOPMENT PLAN

VELLAKOIL MUNICIPALITY

Final Report

December 2009

Submitted to Submitted by The Commissonerate of Municipal Administration SMEC (India)Pvt. Ltd 6th Floor, Ezhilagam Anex Building No.11/6,18 th East Street, Chepauk, Chennai‐600 005 Thiruvanmiyur,

Chennai‐600 041

Final Report City Development Plan for Vellakoil Municipality

CITY DEVELOPMENT PLAN - VELLAKOIL MUNICIPALITY EXECUTIVE SUMMARY

1. CITY DEVELOPMENT PLAN – CONTEXT and CONTENT The Commissioner of Municipal Administration (CMA), Government of Tamil Nadu, under the Third Tamil Nadu Urban Development Programme (TNUDP III) has taken effective steps to assist the Urban Local Bodies (ULBs) in the State, particularly the Grade III municipalities to strengthen and improve the financial position for effective capital investment management and service delivery to the public. These ULBs spread over the State, are service centres to the surrounding rural areas, offering marketing, physical and social infrastructure facilities. These centres have potential for future growth, and therefore, it is essential to formulate a City Development Plan (CDP) for these urban centres and immediate implementation of reforms in these ULBs for better management. In this regard, the CMA has appointed SMEC India Pvt. Ltd as Consultants for preparing a comprehensive City Development Plan (CDP) for four of the Grade III Municipal Towns in the Thanjavur region. 2. SWOT and VISION Vellakoil, a Grade III Municipality in Tiruppur district is located at a distance of 48 km, east of Coimbatore and 60km, south of Erode town. The area of the town is 64.75 sq.km and the population is 34,438 as per census 2001. The latitude and longitude of this town are 8º36’’41’’N and 78º3 ‘’30’’E respectively. It is well connected by road to the surrounding urban centres. Vellakoil municipality is a prominent commercial center for agro products like oil, vanaspathy and textiles. The town and its surroundings has high concentration of power loom & handloom weaving, textile processing units, rice milling, edible oil expelling units, paper products and basic metal products industries etc. The City Development Plan is a tool which adapts a participative approach to planning, and implementing projects as stakeholder workshops; involving users, elected councillors, line agencies, private organizations, NGOs and CBOs. Some of the core issues which emerged during interaction with stakeholders include provision of adequate and quality water supply to all the residents of the city, improvement in solid waste management and sewerage systems in the town (both currently impacting the physical environment in a negative manner), rejuvenation of water bodies, and road improvement and improving the financial and technical capacity of the municipal body. 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 Vellakoil Municipality STRENGTH WEAKNESS

Access to Erode, a major node for textile, leather & agriculture, timber based industries

Crippling Environmental pollution to odais & agricultural hinterland

Good connectivity with nearby Urban centres Absence of recreational facilities Nh-67 bisecting the town Need to expedite infrastructure improvements Perennial source of water from River Cauvery Inadequate social infrastructure facilities High Urban literacy rate at 75% Extensive Municipal area – Increased demand for

penetration of Municipal services Fertile agricultural hinterland Excellent industrial base of textile, bricks, agro based timber & leather Absence of rail connectivity

OPPORTUNITIES THREATS Availability of land for future development Rising land and labour costs Co-operative mindset of community. Increased Environmental regulations & falling margins Access to Higher Educational Institutions Low skill, low technology manufacturing units Opposition to leather based industries /brick industries

Source : Feedback from stakeholders meeting and analysis.


The town of Vellakoil is visualized as “An clean and green town; economically self sustaining, with access to physical and social infrastructure”.

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 CDP for Vellakoil 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 and prioritisation is given in the following table. The total investment required would be over Rs. 9018.42 lakhs.

Capital Investment Needs for Vellakoil S.N Physical Infrastructure facilities Amount

( in lakhs) 1 Water Supply 1199.12 2 Sewerage System 3300.00 3 Storm Water Drains 300.00 4 Solid Waste management 800.00 5 Roads 2043.00 7 Bus Shelter 10.00 8 Street Lights 182.00 9 Slum Improvement 709.00 10 Parks and Play Fields 20.00 11 Market 150.00 12 Public Convenience 35.00 13 Burial Ground 100.00 14 E-Governance 16.00 15 Urban Greenery 10.00 16 Other Projects 100.00 17 Updation of Database on GIS Platform 4000 18 Property Mapping 4.30 Total 9018.42

4. FINANCIAL PERFORMANCE OF VELLAKOIL MUNICIPALITY The summary of the financial status of Vellakoil municipality is as follows:

• In the case of Vellakoil Municipality, it is observed that the Municipality has shown net deficit in all the 5 years. Prior to depreciation, the Municipality has shown surplus in 4 out of the last 5 years except 2006-07. Thus the Municipality has earned cash surplus in 4 years.

• The average current collection efficiency of the municipality is very good as compared as to other municipalities in the district in case of all the sources of income and is around 95% - 100%. The arrears collection performance in respect of Property Tax and Other Income needs to be improved.

• The broad financial analysis of the Vellakoil Municipality finances reveal that the Municipality has to gradually increase its own sources of income and collection efficiency for servicing the additional borrowings in the future.

• The Municipality’s borrowings are high at Rs. 236 lakhs compared to its income. This may result high debt service in future years. So the Municipality’s capacity to borrow further funds depends on its capacity to increase its revenues.

To summarise, the overall income pattern of Vellakovil Municipality indicates both positive and negative features. The positive trends are on the income side, where the Municipality has higher growth rate and good collection performance.


5. PROPOSED REFORMS IN URBAN MANAGEMENT In the Final Report a detailed action plan and implementation schedule to aid the effective execution of the business plan would be furnished. Achieving the set objectives would require a high degree of commitment from the municipality and active support of the council and the state government.

• The municipality will be expected to adopt measures to improve property tax base, ensure operational efficiency in street lighting and water supply, computerisation of Municipal functions, introduce charges for SWM, timely auditing and online publishing of account statements , asset management plan , capacity building initiatives in the engineering, health and accounts sections.

• The Municipal council may assume charge of increase in water charges, removal of public fountains, privatisation initiatives, and premobilisation of deposits, parking / advertisement regularisation plan and execution of property mapping exercise. The council would also be required to include charges for SWM (non-domestic) and regularise unauthorised layouts.

• The expectations from the State Government are fast track litigation for disputed properties, enacting Community Participation law, facilitating private participation in investments, ensuring transparency in accounting and creating public awareness on the roles and responsibilities of the citizens.

6. ESTIMATION OF 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 Scenario I Scenario II Scenario IIIBorrowing Capacity Rs. 373.26lacs Rs. 744.13 lacs Rs. 937.48 lacs Investment Capacity Rs. 1493.02 lacs Rs. 4134.08 lacs Rs. 5208.24 lacs Investment Requirement - Rs. 9018.12 lacs Rs. 9018.12 lacs Sustainable investment capacity % - IC / IR - 46% 57.75% Scenario I - Estimation of Investment Capacity on as is where basis Scenario II - Estimation of Investment Capacity with Projects & Growth Rate of 7.5% for Devolution Funds Scenario III - Estimation of Investment Capacity with Projects & Growth Rate of 10% for Devolution Funds. 7. INFERENCE

The investment capacity of Vellakoil Municipality on ‘As is Where Basis’ works out to Rs. 1493 lacs.

The investment capacity of Vellakoil Municipality works to 46% in case of Scenario II (Growth Rate of Devolution Funds assumed @ 7.5% p.a.) and 58% in case of Scenario III (Growth Rate of Devolution Funds assumed @ 10% p.a.).

In value terms the investment capacity works out to Rs. 4135 lacs under Scenario II and Rs. 5210 lacs under Scenario III.

It may be observed that the investment capacity has improved with the introduction of new projects as compared to ‘As is Where Basis’ scenario. The same is on account of the fact that the Municipality has large number of commercial and industrial assessments, which are presently untapped on account of water and sewerage connections.

Thus it can be inferred that the investment capacity of the Municipality is around 46% of the total investment requirement.


Based on the above, it can be inferred that the Municipality can take up only the small projects, where the funding is mostly by way of Grants as given below :

S.No. Particulars Total Priority Funding ByA Physical Infrastructure Facilities L : G : OI Water Supply

a) Improvements to Water Supply 1199.20 A 0:90:10 II Sewerage & Sanitation a) New Underground Sewerage Scheme 3300.00 A 37:35;28 Total 4499.20

The above two projects can be taken up by the Municipality as there are large number of commercial and industrial assessments and on stand alone basis these projects are viable at the funding pattern given above.

Besides the above, the following other small projects can be taken up, where the funding pattern is mainly by way of grants and deposit mobilization :

Priority projects suggested under CDP S.No. Particulars Total Priority Funding By

A Physical Infrastructure Facilities L : G : O I Strom Water Drains

a) Construction of new drains and providing mesh covers 300.00 A 0:90:10 II Bus Shelter a) Construction of New Bus Shelter 10.00 A 100% Grant III Street Lights a) High mast lights at Old & New Bus Stand 14.00 A 100% Grant b) Retrofitting and energy saving devices 23.00 A ESCO c) Central Median lights at main roads for 3Km 45.00 A 0:90:10 B Social Infrastructure Facilities I Slum Improvements

a) Improvement to Slums 709.00 B 100% Grant II Market a) Construction of Daily Market 75.00 A 100% ULB b) Construction of Weekly Market 75.00 A 100% ULB C Other Projects I Remunerative Projects

a) Commercial Building (G+2) at Erode Road near 50.00 A 100% ULB Bus Stand II E-Governance a) E-Governance 16.00 A 100% Grantb) Updation of Database on GIS 40.00 C 0:90:10 c) Property Mapping 4.30 A 100% ULB Total 1361.30

As regards other projects with large financial cost, the Municipality would require more support

from the Government towards both capital cost and operation & maintenance expenses. Thus it would be possible to take up those projects if more support is provided by the Government and by improving own sources of income.

Abbreviation and Acronyms

ANM : Auxiliary Nurse Midwife AMT : Anna Marumalarchi Thittam BOT : Build, Operate and Transfer BPL : Below Poverty Line BSUP : Basic Services for Urban Poor CAA : Constitution Amendment Act CAGR : Compounded Annual Growth Rate CC : Cement Concrete CCP : City Corporate Plan CBED : Community Based Energy Development CDP : City Development Plan CETP : Common Effluent Treatment Plant CFC : Central Finance Commission CIP : Capital Investment Plan CPHEEO : Central Public Health & Environmental Engineering Organization CPM : Consultative Process Meeting D&O : Dangerous and Offensive Trade DFR : Draft Final Report DPR : Detailed Project Report: EAR : Environmental Assessment Report ECR : East Coast Road ESF : Environmental and Social Framework ETRP : Emergency Tsunami Reconstruction Project FY : Financial Year FOP : Financial Operating Plan GLR : Ground Level Reservoir G.S.T Road : Grand South Trunk Road Gm : Grams GoTN : Government of Tamil Nadu Ha : Hectares HP : Horse Power HSC : House Service Connection IHSDP : Integrated Housing & Slum Development Programme IPT : Intermediate Public Transport ISP : Integrated Sanitation program IUDP : Integrated Urban Development Project JNNURM : Jawaharlal Nehru National Urban Renewal Mission Kg : Kilogram Km : Kilometer LAP : Local Assistance Programme

LCS : Low Cost Sanitation Ll : Lakh Litres LPA : Local Planning Area Lpcd : Liters Per Capital per day M : Metres MIAM : Municipal Infrastructure Asset Management ML : Million Litres MLD : Million Litres per day MSW : Municipal Solid Waste NGO : Non Governmental Organisation NH : National Highway Nos : Numbers OHT : Over Head Tank O&M : Operation and Maintenance PAP : Project Affected Persons PHC : Primary Health Center PPI : Pulse Polio Immunization PPP : Public Private Partnership PWD : Public Works Department SFC : State Finance Commission SH : State Highway SHG : Self Help Group Sq.km : Square Kilometers SST : Summer Storage Tank STP : Sewage Treatment Plant SWM : Solid Waste Management TEAP : Tsunami Emergency Assistance Project TNEB : Tamil Nadu Electricity Board TNRDC : Tamil Nadu Road Development Corporation TNSCB : Tamil Nadu Slum Clearance Board TNUDP : Tamil Nadu Urban Development Project TNUIFSL : Tamil Nadu Urban Infrastructure Financial Service Limited TPD : Tonnes Per Day TUFIDCO : Tamil Nadu Urban Finance and Infrastructure Development Corporation TWAD : Tamil Nadu Water Supply and Drainage Board UA : Urban Area UGD : Under Ground Drainage UIDSSMT : Urban Infrastructure Development Scheme for Small & Medium Towns ULB : Urban Local Body VAMBAY : Valmiki Ambedkar Awas Yojana WBM : Water Bound Macadem WSP : Waste Stabilization Pond WTP : Water Treatment Plant

EXECUTIVE SUMMARY COUNCIL RESOLUTIONABBREVIATIONS AND ACRONYMS

1 CONTEXT, CONCEPT AND CONTENTS OF CITY DEVELOPMENT PLAN1.1 Context of the Study 11.2 Objectives 11.3 Revice Meeting for Dtaft Final Reports 1

2 TOWN PROFILE, PHYSICAL PLANNING AND GROWTH MANAGEMENT 42.1 Regional Setting 42.2 Physical Features 42.3 Climate and Rainfall 42.4 History of the Municipality 42.5 Demographic Features 4

2.5.1 Population and its Growth 42.5.2 Population projection 62.5.3 Sex ration and literacy 7

2.6 Occupational Pattern 72.7 Physical Planning and growth management issues 82.8 Growth Management issues and solution initiatives 8

3 VISION AND STRATEGIES FOR ECONOMIC DEVELOPMENT 93.1 Stakeholders workshop and Vision statement 93.2 SWOT Analysis 93.3 Vision for Vellakoil Town 93.4 Strategies for Economic Development 103.5 Urban Infrastructure 11

3.5.1 Sector wise Vision 113.6 Performance and Demand Assessment 123.7 Strategies for Poverty Reduction and Slum Upgradation 14

4 ORGANISATIONAL STRUCTURE 154.1 Elected Body 15

Executive Wing 154.2.1 General Administration 154.2.2 Engineering Department 164.2.3 Accounts Department 164.2.4 Public Health Department 164.2.5 Town Planning Department 16

4.3 Staff Strength Position and vacancy position 164.4 Issues in Human Resource 184.5 Organisation Management 18

5 INFRASTRUCTURE STATUS AND NEEDS ASSESSMENT 195.1 Physical Infrastructure 19

5.1.1 Water Supply 195.1.2 Sewerage 215.1.3 Storm Water Drains 215.1.4 Improvement to water bodies 225.1.5 Soild Waste Management 235.1.6 Roads 255.1.7 Bus Stand 275.1.8 Bus Shelter 275.1.9 Street Lights 27

CONTENT

5.2 Social Infrastructure 295.2.1 Slum Improvement 295.2.2 Parks and Play fields 305.2.3 Market 315.2.4 Public Convenience 315.2.5 Slaughter House 315.2.6 Burial Ground 315.2.7 E-Governance 325.2.8 Urban Greenary 32

5.3 Other Projects 325.3.1 Updation of Database On GIS Platform 32

5.4 Proposals to be implemented by other Agencies 335.5 Capital Investment Plan 34

6 REFORMS AND ACTION PLAN FOR PROJECT IMPLEMENTATION 366.1 Present Scenario in Urban Reforms 366.2 Proposed Interventions at state level 376.3 Proposed Interventions at Municipal level 38

6.3.1 Reforms In Resource Mobilisation 396.3.2 Privatisation Initiatives 426.3.3 Energy and Resource efficiency 446.3.4 Computerisation and E-governance 456.3.5 Accounts and auditing 466.3.6 Institutional Management 466.3.7 Reforms in Municipal Service Delivery 51

7 ASSETS MANAGEMENT 527.1 Activities of Asset Management Plan (AMP) 527.2 Priority asset management options 537.3 Land Assets 547.4 Management Options for land assets 557.5 Proposed New Assets 55

8 FINANCIAL OPERATING PLAN 578.1 Capital Investment Plan 578.2 Other Projects and on going projects 598.3 Means of Finance 608.4 Financial Sustainability 658.5 Basic Assumptions for Projections 65

8.5.1 Income 668.5.2 Expenditure 718.5.3 Collections 728.5.4 Annuity Factor 73

8.6 Project Cash Flows and FOP Results 738.7 Impact of Potential Improvements 818.8 Estimation of Investment Capacity 818.9 Key Indicators 83

8.10 Inference 83

9 PUBLIC CONSULTATION PROCESS 86

2.1 Population and growth 42.2 Comparative statement of projected population 72.3 Occupational Pattern - 2001 73.1 SWOT Analysis 93.2 Sector wise vision for the key Infrastructure 113.3 Performance Indicators for key Municipal Services 123.4 Demand for Municipal Services 134.1 Staff Strength 174.2 Additional Staff Required 185.1 Details of OHTs 205.2 Water Tariff-Deposit Details 205.3 Demand & Supply in Water Supply - Projection 205.4 Storm water Drains - proposals 225.5 Solid Waste management – Proposals* 255.6 Category of roads 265.7 Road improvement - Proposals 265.8 Existing street lights and energy consumption 275.9 Street lights - Proposals 28

5.10 Location of Existing Slum Areas 295.11 Details of Existing Slum Areas 295.12 Slum - Proposals 305.13 Market - proposals 315.14 Proposals to be implemented by other Agencies 335.15 Capital Investment Programme 34

6.1 Road map – Environmental Improvement 396.2 Road Map - Improving revenue from own sources 406.3 Road Map Improving revenue from user charges 416.4 Road Map for Formation of new sustainable revenue bases 426.5 Road Map for Privatization initiatives 446.6 Road Map for Energy and Resource efficiency 456.7 Road map for Computerization and E-Governance 466.8 Technical Assistance for Elected representatives 476.9 Technical Assistance for ULB staff 48

6.10 Road map for Accounts & auditing and Institutional Management 496.11 Road Map For Implementation Of All Projects 506.12 Reform Agenda - Municipal Service Delivery 51

7.1 Priority Municipal Assets – Vellakoil Municipality 537.2 Proposed Use – Land Asset 547.3 New Assets for the year - 2010 to 2015 558.1 Projects to be executed by the Municipality 578.2 Projects to be executed by Other Agencies 598.3 Projects under Implementation by the Municipality 598.4 Multi Year Investment Plan and Means of Finance 608.5 Consolidated Means of Finance 658.6 Ratio of Property tax 668.7 Water supply Charges - Existing 678.8 House Service Connections - Percentage 688.9 Sewage Charges 68

8.10 Increase in Tariff - Sewage Charges 698.11 Increase in Deposit - Sewage Charges 698.12 Assumptions - Increase in Expenditure 718.13 Assumptions – O&M 718.14 Assumptions – Provision of doubtful debts 728.15 Assumptions – Property tax collection 728.16 Assumptions – Profession tax 728.17 Assumptions – Other Non Tax Income 728.18 Assumptions – Water Charges 728.19 Assumptions – Drainage Charges 738.20 Terms of Loan Funding for Proposed Investments 73

TABLES

8.21 Consolidated Income & Expenditure for next 20 years (up to FY 2028-29) 748.22 Consolidated Balance Sheet for next 20 years (up to FY 2028 – 29) 768.23 Summary of Borrowing and Investment Capacity - Scenario I 828.24 Summary of Borrowing and Investment Capacity - Scenario II 828.25 Summary of Borrowing and Investment Capacity - Scenario III 838.26 Key Indicators 838.27 Priority Projects suggested under CDP 84

8.27a Priority Projects suggested under CDP through Grants and Deposits 849.1 Major issues and solution initiatives 879.2 Minutes of the consultative process meeting 87

2.1 Occupational Pattern of Vellakoil -2001 74.1 Status of Municipal Staff Strength 174.2 Organisational structure of Vellakoil Municipality 175.1 Functional Elements of a Municipal Solid Waste Management System 24

2.1 Regional setting of the Town 52.2 Town Map - Vellakoil Municipality 6

1 Minutes of Meeting2 Population Projection3 Finance Working Sheets4 Urban Indicators

FIGURES

MAPS

ANNEXURES

City Development Plan for Vellakoil Municipality SMEC India Pvt Ltd Final Report TNUDP III

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1 CONTEXT, CONCEPT AND CONTENTS OF CITY DEVELOPMENT PLAN

1.1 CONTEXT OF THE STUDY The Commissioner of Municipal Administration (CMA), Government of Tamil Nadu, under the Third Tamil Nadu Urban Development Programme (TNUDP III) has taken effective steps to assist the Urban Local Bodies (ULBs) in the State, particularly the Grade III municipalities to strengthen and improve the financial position for effective capital investment management, and service delivery to the public. These ULBs spread over the State, are service centres to the surrounding rural areas, offering marketing, physical and social infrastructure facilities. These centres have a good potential for future growth, and therefore, it is essential to formulate a City Development Plan (CDP) for these urban centres and immediate implementation of reforms in these ULBs for better management. The CMA has begun the process of capacity building in these ULBs to enhance their performance. In this regard, the CMA has appointed Consultants for preparing comprehensive City Development Plan (CDP) for each of the Grade III Municipal Towns. 1.2 OBJECTIVES The objectives of the study include:

• Defining the directions of growth of the town, and up gradation of services relevant to economic activities and development.

• Examination of the need for the projects identified by the Urban Local Bodies, and assessment of the demand in terms of gaps either as deficiency or as excess.

• Studying the status of essential urban infrastructural services and outlining broadly the needs.

• Defining specific rehabilitation and capital improvement needs of infrastructural facilities and services in all parts of the urban areas including slums.

• Analysis of improvement techniques and methods to enhance the local bodies’ resource positions and improve the management system that would sustain the proposed rehabilitation programmes.

• Identification of reforms required in administration and service delivery system of the urban local body.

• Studying improvements / changes required in the ULB setup to improve the O&M of assets.

• Identifying measures to address overall growth measures including service needs in a sustainable mode.

1.3 REVIEW MEETING FOR DRAFT FINAL REPORTS On the review of the Final reports (Stage-IV) held at the RDMA office, Tiruppur on 10.11.09 for the towns of Kasipalayam, Surampatti, Veerappanchatram, Periyasemur and Vellakoil Municipalities, the Review Committee indicated certain remarks in the minutes of the meeting, and the Consultant’s updations are presented below:


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The consultants were asked to:

S.N Points raised in the minutes of meeting Reply / Remarks Vellakoil Municipality

1. The cost and funding pattern for water supply improvement scheme

has to be revised to Rs.1199.12 lakhs (Grant – Rs.852.35 lakhs,

TUFIDCO Loan –Rs.300 lakhs and ULB contribution – Rs.46.77

lakhs). The O&M cost to be revised to Rs.49 lakhs.

Since done. Refer chapter 5, section 5.1.2

2. Vellakoil Municipality has been annexed to Tiruppur District and the

same needs to be updated in the report.

Since updated.

3. The Proposed cost for the construction of commercial building near

Bus stand has to be revised to Rs.100 lakhs.

Since done. The revised cost has been given under chapter 5, section 5.3

4. The Weekly Market has to be given as Weekly Market/Shandy. Since done.

Common Points 1. The proposed years under CIP need to changed to 2010-11 to 2014-

15 or as Years 1 to 5.

Since done.


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Road map for City Development Plan

The Table given below presents the stages and contents under each stage of the presentation of the CDP.

Stage I Inception Report

Stage II Interim Report

Stage III Draft Final Report

Stage IV Final Report

Town reconnaissance and

Data collection.

Consultations and Analysis

Finalisation of

Capital Investment Programme (CIP)

FOP and Adoption by Council

Modules : - Strategic vision - Development objectives - Methodology

Modules : - Demand assessment - Municipal Fiscal status - Investment needs - Stake holder consultation

Modules : - Strategic plan

- Capital Investment Need(CIN)

-Priority Asset management

Modules: - FOP - Draft MOA - Policy interventions - Technical Assistance

Present stage


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2 TOWN PROFILE, PHYSICAL PLANNING AND GROWTH MANAGEMENT

2.1 REGIONAL SETTING Vellakoil, a Grade III Municipality in Tiruppur district is located at a distance of 48 km, east of Coimbatore and 60km, south of Erode town. The area of the town is 64.75 sq.km and the population is 34,438 as per census 2001. The latitude and longitude of this town are 8º36’’41’’N and 78º3 ‘’30’’E respectively. It is well connected by road to the surrounding urban centres. Vellakoil municipality is a prominent commercial center for oil and vanaspathy. The regional setting of the town and the town map is shown in Map 2.1 and 2.2. 2.2 PHYSICAL FEATURES Vellakoil is situated on Coimbatore – Thiruchirapalli NH-67. The major arterials from the town are the Thiruchirapalli – Coimbatore road running west to east, Erode – Tharapuram road & Moolanur road. The general gradient of the town slopes from North to South. The major soil found in this region is Black soil. The ground water table varies from 50m to 200m. 2.3 CLIMATE AND RAINFALL The town and the surrounding region have a sub- tropical climate with temperatures varying from 28 to 36ºC. Rainfall is intermittent, irregular and usually heavy during the southwest monsoon. The average annual rainfall ranges between 700-800 mm. 2.4 HISTORY OF THE MUNICIPALITY Vellakoil was constituted as village panchayat during 1938 , upgraded to town panchayat in 1977 and as Third Grade municipality in 2004. There are 21 wards in the Municipality. 2.5 DEMOGRAPHIC FEATURES 2.5.1 Population and its Growth Vellakoil population has grown in the past decade. As per the 2001 census, the town registered a population of 34438. The population growth rate of the town is19.3% during the period 1991-2001.

Table 2.1 Population and growth. Source: Census of India.

Year Population of Vellakoil Growth rate1991 28,878 - 2001 34,438 19.3


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Map 2.1 Regional setting of the Town


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SIVANATHAPURAM

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THIRUMANGALAM

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9

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RAJIV NAGAR

VAIYAPURI NAGAR

ARIVOLI NAGAR

MADAMEDU

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MANJAANGADU

ARUN CRUSHER

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CHERAN NAGAR

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NNW

SW

NE

SE

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W

Map 2.2 Town Map – Vellakoil Municipality

2.5.2 Population projection Based on the growth rate for the past two decades, the future population of the town has been projected using various methods and are tabulated as below:

1. Arithmetical Increase Method 2. Geometric Increase Method 3. Incremental Increase Method 4. Method of least square


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Table 2.2 Comparative statement of projected population

Sl. no. Method Projected Population for Vellakoil

2010 2025 20401 Arithmetical Increase 52208 72516 92823 2 Geometrical increase 51620 81873 112132 3 Incremental Increase 53348 94325 156681 4 Method of Least Squares 49605 67605 85605

Source: Analysis and calculations After a detailed analysis and comparison of each method, Geometrical increase method is found to be suitable and the population projections are based on the same. The details are given in Annexure-2. Therefore, the projected population for Vellakoil town is:

1. Base year 2010 - 52,702 2. Intermediate year 2025 - 88,836 3. Ultimate year 2040 - 1,46,349

2.5.3 Sex ratio and literacy The sex ratio in the town is 964 and the literacy rate is 75% higher than the national average of 59.5%. 2.6 OCCUPATIONAL PATTERN The work force participation of the town is 19,737 in 2001.As per the census 2001; more than 80% of the work force is involved in the tertiary sector. The sector wise distribution of the work force is depicted in the table below:

Table 2.3 Occupational Pattern, 2001 Category of Workers Total % to

Population % to Total work

force Total workers 19,737 57 - Primary sector 1,526 4 8 Secondary sector 1,252 4 6 Tertiary sector 16,959 49 86 Non-workers 14,701 43 -

Source: Census of India 2001.

Fig: 2.1 Occupational pattern of Vellakoil -2001


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2.7 PHYSICAL PLANNING AND GROWTH MANAGEMENT ISSUES The existing developmental issues and future potential are addressed below: The major arterials connecting the town to the surrounding urban centres are:

• Coimbatore – Thiruchirapalli National Highway • Erode – Tharapuram road • Moolanur road

The Coimbatore – Thiruchirapalli road is one of the major road, running west to east connecting the town to major urban centres. The town has no railway connectivity. The nearest railway stations are in Erode, Karur and Tiruppur. The nearest Airports are at Coimbatore (88km) & Trichy (117km) The Major industrial activities in the town are hand loom and power loom, spinning mills, oil mills and brick manufacturing. Vellakoil is one of the major marketing centers for sunflower oil. Land use Pattern The land use pattern for Vellakoil is followed by the major activity areas in the Town. Commercial areas are mainly located along the major roads such as Erode road, Coimbatore Road, Trichy Road are radiates out from the centre of the town where the bus stand is located. The major developments are seen on the north along Erode road and on the west along Coimbatore Road, south along Moolanur and Tharapuram Road and east along Karur and Trichy road. More than 50 % of the land in the town constitutes undeveloped area comprising of lands under agricultural, unused vacant lands and waste lands. a. Residential Residential development has almost spread over the entire municipal area. The density varies from high to low from the centre of the town. b. Commercial and Industrial The main commercial areas are located along the major road network. Weekly Market is located near the bus stand in about 3 acres of land. The oil extracting industries and power loom/handloom industries are sporadically distributed in the town. 2.8 GROWTH MANAGEMENT ISSUES AND SOLUTION INITIATIVES Need to strengthen Municipal Revenue base

• Low levels of revenue generation of Municipality leading to poor service delivery. The reforms to be under taken by the urban local body will be addressed in detail in the list of Reform Agenda suggested in the CDP.

Need for guided development for a sustained economic growth • The town has vast land for future development. But at present the industrial developments

are sporadically distributed over the town. There is mixed land use in the town area causing congestion and unsafe environmental conditions.

• Thus, there is an immediate need for Master Plan and Detailed Development Plans for sustained economic growth and safe environment to live in.

Need for Railway connectivity • Discontinued Railway connectivity directly affecting the town’s economy.

Need land for future development

• Inadequate municipal owned vacant land for implementing social, physical infrastructure facilities and remunerative developments.


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3 VISION AND STRATEGIES FOR ECONOMIC DEVELOPMENT

3.1 STAKEHOLDERS WORKSHOP AND VISION STATEMENT The City Development Plan is a tool which adapts a participative approach in planning and implementing projects involving users, elected councilors, line agencies, private organizations, NGOs and CBOs. In this process, residents of various sections of the communities in the town were enquired into at random during reconnaissance survey and visits to all the sites of the projects identified by the Municipality and also otherwise suggested by the elders. The broad purpose of public participation is to involve the stakeholders in the development plan for the city. The Vision Statement has been firmed up based on the feed backs received from the stake holders and expert survey of the municipal services for the perspective year of 2030.The analysis and findings of the study are based on secondary data collected from respective departments and during the course of the study, data gaps if any were supplemented through primary survey. A detailed analysis to find out the existing status of each admissible sector, cross-referring the norms and standards, demand and gaps based on present and future service requirements is done. A SWOT analysis was done based on the data collected on the resources and consultation with the stake holders in the following section. Accordingly, interventions are suggested. 3.2 SWOT ANALYSIS

Table 3.1 SWOT Analysis STRENGTH WEAKNESS

Access to Erode, a major node for textile, leather & agriculture, timber based industries

Crippling Environmental pollution to odais & agricultural hinterland

Good connectivity with nearby Urban centres Absence of recreational facilities Nh-67 bisecting the town Need to expedite infrastructure improvements Perennial source of water from River Cauvery Inadequate social infrastructure facilities High Urban literacy rate at 75% Extensive Municipal area – Increased demand for

penetration of Municipal services Fertile agricultural hinterland Excellent industrial base of textile, bricks, agro based timber & leather

Absence of rail connectivity

OPPORTUNITIES THREATS Availability of land for future development Rising land and labour costs Co-operative mindset of community. Increased Environmental regulations & falling margins Access to Higher Educational Institutions Low skill, low technology manufacturing units Opposition to leather based industries /brick industries

Source: Feedback from stakeholders meeting and analysis. 3.3. VISION FOR VELLAKOIL TOWN Vellakovil town is a major commercial centre for agro products and textiles. Based on the feed backs from stakeholder workshops and analysis of the town the vision statement for the town of VELLAKOIL is framed as


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“An clean and green town; economically self sustaining, with access to physical and social infrastructure”. 3.4 STRATEGIES FOR ECONOMIC DEVELOPMENT The district has high concentration of power loom & handloom weaving, textile processing units, rice milling, edible oil expelling units, paper products and basic metal products industries etc. 1. Benefit from the proximity to Erode and Tiruppur to generate further employment

opportunities and economic development. Vellakoil is strategically located between Erode and Tiruppur, on the National Highway to Trichy .Thus there is a scope for further development of knitwear and readymade garments, especially for export oriented units. Provision of marketing centers, adequate housing, basic infrastructure facilities, medical, educational and recreational facilities would enhance overall growth of the town. 2. Build on the industrial base to create further scope for development.

a. Establishment of industrial estates b. Development of food processing industries c. Establishment of industrial parks and SEZs d. Guidance through research and training institutes e. Implementing Development centers and schemes for industrial and social

development

a. Establishment of industrial estates There are 5 industrial estates in this district promoted by official agencies namely SIDCO Industrial Estate- Erode, SIDCO Industrial Estate -Dharapuram, SIDCO Industrial Estate -Nanjai Uthukuli, TAHDCO Industrial Estate -Perundurai, Perundurai Industrial Estate.The proposed Industrial estates in the region are SIDCO Industrial Estate -Rasathivalasu, SIDCO Industrial Estate Vadamugam -Kangayampalayam, SIDCO Industrial Estate -Chennimalai. As the SIPCOT Industrial Growth centre is at Perundurai providing all the necessary infrastructure facilities. There is a good scope for setting up industries like Textile Processing, Leather, Chemical, Engineering, Electrical & Electronics Industries. The Cabinet Committee on Economic Affairs gave its approval to the implementation of the Comprehensive Power loom Cluster Development Scheme at Erode (Tamil Nadu) as a Central Sector Plan Scheme with a budget provision of Rs.70 crore. The implementation of the Scheme will benefit the weavers in developing / diversifying new designs and products, their skill up-gradation, up-gradation of their looms, providing a suitable workplace, market support etc. to improve their earnings and socio-economic conditions.

b. Development of Food Processing Industries There is ample scope for development of Food Processing Industries in the district. Availability of technology and training is a problem for the aspiring entrepreneurs. Hence there is need for


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Food Technology & Training centre under the guidance of CFTRI, Mysore, in this district is recommended by the Industrial Potential Survey Report- Erode 2001 – 2002.

c. Establishment of Industrial parks and SEZs Establishment of Garment Park in the region will support the industrial activity as Tiruppur is near to the town. Establishing Special Economic Zones (SEZs) for textile and agro products in the region will enhance the economy of the region.

d. Implementing Development centers and schemes for industrial and social

development To develop handloom sector both Central & State Government are implementing various schemes through the office of the Assistant Director (Handloom & Textiles) at Erode. The schemes are

• Handloom Development Centre • Project Package Scheme • Help Package Scheme • Housing scheme for weavers • Export Package scheme

To increase the productivity of power loom, the Government has introduced the Technology Upgratation Fund Scheme (TUFS) for undertaking modernization of textile industry. Utilisation of this fund will meet the requirement of power loom textile industry. By implementing export package scheme and help package schemes, the edible oil units may be further encouraged in production and marketing.

3.5 URBAN INFRASTRUCTURE Infrastructure provision is perceived to have a significant impact on health, reducing incidence of illnesses which are related to an unhygienic living environment. Thus, infrastructure plays an inevitable role in the economic development and social well being of the town. 3.5.1 Sector wise Vision The sector wise vision for the key infrastructure services are as given in the table below:

Table 3.2 Sector wise vision for the key Infrastructure S.n Sector Vision statement 1 Water Supply To check wastage and pilferage of water

To generzate more revenue for efficient operation & maintenance of the system and to supplement the capital works, in order to render the delivery of the service self sustaining over a period of time.

2 Sewerage and sanitation

To provide coverage of the sewerage facilities or LCS measures for slum areas.

To maintain high level of environmental hygiene generally in the town and particularly the cleanliness of the water bodies


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3 Storm water drainage and improvement to water bodies

To improve condition of storm water drains to handle run off water and prevent water stagnation.

Rejuvenate water bodies and improve recharge of ground water. To provide Rain Water Harvesting to improve the quality and quantity of Ground water.

4 Solid Waste management

To provide a litter free town for the healthy living of the public. To minimize the O&M expenditure of SWM To involve private organizations to the extent possible

5 Roads and Streets To provide safe, comfortable and speedy circulation network for the residents and traffic

To relieve congestion by adopting a traffic management plan To channelise by-passable traffic through arteries outside the town limit.

6 Street lighting To provide sufficient illumination to the town, for safety of the people and to adequately cope with the requirements of traffic.

To optimize the use of electricity by adapting energy efficient technology 7 Educational

Institutions To Provide comfortable conducive physical infrastructure and sound environment for the learning process

8 Medicare To make quality preventive and curative care available and accessible to the Public.

To support people for healthy living and environment. 3.6 PERFORMANCE AND DEMAND ASSESSMENT To assess the indicators of performance in each sector of infrastructure, the existing levels of key Municipal services is benchmarked against their norms and standards to arrive at performance assessment index .The norms and standards are based on SFC recommendation, Planning Commission recommendation, UDPFI guidelines, CPHEEO manual, best practices etc. The demand assessment for projects is arrived from the Stake holder consultative meetings, discussions with officials, field visits and service analysis. The improvement needs proposed are based on the demand and performance assessments with reference to short term and long term proposals for each sector. The Performance assessment index for the existing status against the norms and standards for water supply, sewerage, drainage, solid waste, street lighting and social facilities are illustrated in the table below:

Table: 3.3 Performance Indicators for key Municipal Services Sl No

Service Indicators Unit Normative Standard

Current Status

Performance of Key Water Supply Service Indicators 1 Daily per capita supply lpcd 135 70 2 Roads covered with distribution network Percent >100 96 3 Storage Capacity with respect to supply Percent 33 45 4 Property tax assessments covered by service connections Percent 85 27 5 Proportion of non – domestic service connections Percent >5.00 2.5 Performance of Key Sewerage and Sanitation Service Indicators 6 Roads covered by UGD network Percent 100 - 7 Sewage contribution lpcd 100 - 9 Assessment having access to UGD facility Percent 85 -


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10 Population covered by UGD Percent 85 - Performance of Key Storm water Drainage Service Indicators 11 Road length covered with storm water drainage Percent 130 11 Performance of Key Solid Waste Management Service Indicators 12 Estimated waste generation Grams /

capita/ day 400 300

13 Waste collected as per the estimate of ULB (w.r.t. waste generation)

Percent 100 85

Performance of Key Road Service indicators 14 Road density Km/sq.km 10-15 2.7 15 Per capita road length meters 1.75 3.5 16 Proportion of surfaced roads Percent 100 67 Performance of Key Street Lighting Service indicators 17 Spacing between lamp posts meters 30 87 18 Proportion of fluorescent lamps (tube lights) w.r.t. total fixtures Percent ≥80 89 19 Proportion of high power fixtures w.r.t. total fixtures Percent ≤20 11 Performance of Key indicators for Slums 20 Proportion of slum population to total city population Percent <10 16 Source: Municipal Records and analysis.

From the above table, the gap in each infrastructure service is identified after comparison with the benchmarks and standards. The future demand for physical and social infrastructure calculated based on benchmarks and standards is given in the table below

Table: 3.4 Demand for Municipal Services Description Units 2010 2015 2025 2040

Population Nos 51620 57325 81873 112132Water Supply Per Capita supply @ 135 liters ML 6.97 7.74 11.05 15.14Requirement of Distribution line @ >100% to road length km 77.43 85.99 122.81 168.20Under Ground Sewerage System Network coverage @ 100% to road length km 77.43 85.99 122.81 168.20Storm Water Drains Requirement @ 130% to road length km 101 112 160 219Solid Waste Management Waste generation at 300 gms TPD 15.49 17.20 28.66 39.25Compost yard area requirement @ 1 acre per 10000 pop Acres 5 6 8 11Roads Road requirement with benchmark @ 1.5 to 2 m per capita road length km 77.43 85.99 122.81 168.20Street Lights

Requirement @ 30 m gap between street lights Nos 2581 2866 4094 5607Parks and Open spaces

Requirement @1.0 to 1.2 hectare per 1000 population Acres 127.5 141.59 202.23 276.97Community Hall and Library Requirement @ 1 per 15000 population (2000 sq.m) Nos 3 4 5 7

Source: Analysis and calculations


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The chapters that follow propose projects needed to ensure efficient delivery of the services. 3.7 STRATEGIES FOR POVERTY REDUCTION AND SLUM UPGRADATION Towards Building Successful Slum-Upgrading Strategies

• Youth groups can be very effective. Youth SHGs can be encouraged and made active participants in developmental activities. Unlike Women SHGs, which are formed originally for social empowerment, Youth SHGs can aim at both economic empowerment and social empowerment as the primary focus. The focus can be on skill training for increasing their employability and promotion of economic activities. Group formation: The SHGs can be formed with unemployed youth in the age group of 18 to 35 years. Each group may comprise 10 to 20 members drawn from the below poverty line population. Youth SHGs can be beneficial in the following ways • To engage the communities in development activities through a dialogue with the active participation of the youth (men and women) with a sense of commitment and integrity • To equip the youth by building their skills, capacity and capability in managing development, so that, they can help build the capacity of the citizens to manage the affairs of the community on their own.

• Infrastructure provision Infrastructure provision brings indirect social and economic development, particularly for women. Improved infrastructure reduces women’s work burden and gives them more time, increased space allows for more home-based economic activity, and lighting and better road coverage increase mobility and security at night. Infrastructure provision is perceived to have a significant impact on health, reducing incidence of illnesses which are related to an unhygienic living environment.

• Community halls are valuable for project work as well as for private and public social activities, however, halls are prone to capture and maintenance can be a problem. They can also be used as location for health camps, balwadis (pre-schools), vocational training and neighborhood committee meetings. They can be used by the community for a variety of occasion such as religious ceremonies, marriages, political meetings etc. conflicts over use and maintenance are common, and control over the hall give some individuals power in the community.

• Balwadis (pre-schools) and Schools Both these institutions benefit poor and working families, especially working mothers. If timings of balwadis are appropriate, then they have a positive effect on the lives of working women, freeing them of childcare and giving more time to women to do paid as well as non-paid work.

• Medical facilities Frequent illnesses and consequent break from work is a major factor that costs the time and money of the low income group. The availability and accessibility to medical facilities as necessary needs to be addressed as a priority issue.

City Development Plan for Vellakoil Municipality SMEC India Pvt Ltd Final report TNUDP III

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The organisational structure of the Vellakoil Municipality generally consists of administrative and executive wings. 4.1 ELECTED BODY The Municipal Council, the political wing of the Vellakoil Municipality consists of 21 elected councilors. Each Councilor represents one electoral ward. The Councilors in turn elect the Chairman as head of the Municipal Council. Administrative wing The administrative wing gives overall guidance to the municipal functions through set of committees. Three committees have been formed namely, Appointment Committee, Contract Committee and Taxation and Appeal committee consisting 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. 4.2 EXECUTIVE WING The executive wing is responsible for the Municipal operations and maintenance. The Executive Officer 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 5. Town Planning Department

4.2.1 General Administration Vellakoil Municipality is a Grade Three Municipality. The Manager is the head of Administration, next to the Commissioner in the section of General Administration, and he is responsible for general supervision and administration of the Office. All establishment matters are dealt by the General Administration Section. Manager Manager is the Head of General Section. His duty includes general supervision of the ministerial staff, and maintenance of discipline in the office premises, ' and to sign receipts for all remittances made in the Municipal Treasury to acknowledge registered tapals, Money orders etc on behalf of the Commissioner. The Manager is the custodian of the cash collected by daily-checking of Chitta and

4ORGANISATIONAL STRUCTURE


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Cash and Petty cash, payment advance etc, and for the administration report by way of Annual Inspection of the office, checking of Personal Registers of all staff and subsidiary registers in respect of all the sections. All papers are routed through the Manager to the commissioner except the Engineering section and the Health section. All matters relating, to the Establishment including public health, maintenance of Increment & Punishment registers, maintenance of service registers, register of Probationers; maintenance of temporary and permanent post sanction register, Pension & Gratuity for all Establishment Audit Register, issue of Office order, common office order book, maintenance of stock file, maintenance of personal register & audit objection register etc are looked up by the Manager. 4.2.2 Engineering Department The Municipal Engineer is the over-all in-charge of Engineering Section. The Municipal Engineer is controlling the Overseer, Work Inspector, and Road Mazdoor, Water works Superintendent, Wiremen, Helper and Fitter working in the section. The Municipal Engineer looks after the maintenance of roads, street lights, road laying, and 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 works. 4.2.3 Accounts Department The Account Section is included in the General Section. The Accountant is the Head of the Wing controlling financial matters. It involves preparation of Budget and looks after the Accrual based Accounting System. 4.2.4 Public Health Department Sanitary Officer is the overall in-charge of the Health Section. He looks after conservancy, sweeping streets, maintenance of drainage, controlling of epidemic diseases, ensuring of license to D&O trades, Birth and Death Registration and issuing of certificate to birth and death registration. Sanitary Inspector, Sanitary Supervisor and Sanitary Workers are assisting the Sanitary Officer. The Sanitary Officer is held responsible for the solid waste management. Pulse Polio Immunization camps are conducted every year under the section. 4.2.5 Town Planning Department Town Planning Officer/Inspector is over all in-charge of the section. He looks after the work of preparation of Master Plan, Detailed Development Plan and maintains the land use registers as per the approved zoning uses. He is also responsible for licensing of plan approved, booking of unauthorized construction, approval of lay out plans with in the town limit, controlling and removing the encroachment in the town. The Town Planning Inspector helps in planning the future development of the town and allied works. 4.3 STAFF STRENGTH POSITION AND VACANCY POSITION As of now, there is 136 vacancies in the 177 sanctioned strength of the Municipal office. The vacancies are mostly under the Sanitation section.


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Table 4.1 Staff Strength S. No

Name of the department

Sanctioned strength

Working strength

No. of post Vacant

1 General Section 7 7 -2 Engineering Section 9 8 13 Public Health Section 28 28 - Total 44 43 1

Source: Vellakoil Municipality, 2008.

Fig 4.1 Status of Municipal Staff Strength

Fig 4.2 Organisational structure of Vellakoil Municipality

Vellakoil MUNIC IPALITY

E X E CUTIV E BODY E L ECT E D BODY

Ex ecu tiv e Off icer Ch air m an

Engine e ring s ta ff

P ublic Healt h staff

Adm in ist ra tion/Re ven ue St aff

V ice Ch air m an an d war d Co un cilo rs

P ro jec t App ro va ls

Wa ter S u pp ly Dra ins Roa ds

S tr eet ligh ts

S olid wa ste , Drai nag e, Bir th & Dea th

Reg ist rat ion

Off ice Ad m in istr at io n Acc ou nt s

Ta x Colle ctio n


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4.4 ISSUES IN HUMAN RESOURCE Out of the Sanctioned posts of 44, in all sections of the Municipality, 1 post is vacant. Considering the present and proposed quantum of work in the municipality, the vacant posts in Engineering Section, Public Health Section need to be filled up expediously. In view Privatization of Solid Waste Management and Maintenance of street lights through ESCO/ Private agency, implementation of proposed improvements in infrastructure, the various sections of the municipality need to be strengthened with the following personnel:

Table 4.2 Additional Staff Required S No Name of the Post Section No. of Personnel

1 Accounts officer General 1 2 Data Entry Operator General 1 3 Revenue Inspector General 1 4 Municipal Engineer Engineering 1 5 Supervisors Engineering 1 6 Overseers Engineering 1 7 Public health Engineer Public Health 1 8 Town Planning Officer Town Planning 1 Total 8

Source: Analysis and discussions with Municipal officials Besides appointing the additional staff, the existing staff in the Administrative, Engineering, Public Health, and Town Planning sections of the municipality needs to be given training in their respective field periodically towards capacity building to take up new assignments. 4.5 ORGANIZATION MANAGEMENT As may be 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 over come by certain specific options: In most of the service sections of the Municipality, there are only a few vacancies which could be filled up. A totally satisfactory system delivery of the services would require an efficient personnel management system.

• 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 number of workers and staff are involved, could be privatized. Scientific solid waste management need to 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.

• Privatizing the repair 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.


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5 INFRASTRUCTURE STATUS AND NEEDS ASSESSMENT

5.1 PHYSICAL INFRASTRUCTURE

5.1.1 WATER SUPPLY

i) Existing Status a. Source and headworks: Vellakoil municipality is provided with water supply from River Amaravathy and from the Muthur-Kangeyam CWSS with River Cauvery as source. Since the flow in River Amaravathy is non-perennial, water supply from this source is not dependable.

Indicators for Water supplyPopulation (Census 2001) 34,438 Present population 49,500 Total area of the town 64.75 sq.km Total no. of wards 21 Source Water supplied 30 Ll Length of distribution system 168 km Rate of supply 70 lpcd Storage No. of OHTs and total capacity 6 and 13.50 Ll Frequency of supply Once in 4 days, for 3 hrs Distribution No. of open wells 56 No. of Hand pumps 136 No. of power pumps 76 No. of public fountains 471 Total no. of service connections 4012 Domestic connections 3910 Commercial 57 Industrial 45

Muthur-Kangeyam Combined Water Supply Scheme The Muthur-Kangeyam CWSS covers 994 rural habitations, 2 municipalities and 7 town panchayats. The water requirement for Vellakoil municipality is being pumped from Metukadai sump. The present level of supply from Amaravathi scheme and Muthur-Kangeyam CWSS is 0.5 and 2.5 MLD respectively. Due to the rate of increase in population, the Muthur-Kangayam CWSS is inadequate to meet the water demand. Formulating a new scheme for additional requirement of Vellakoil municipality, Kangayam Town Panchayat, omitted rural habitations and enhancing supply to 994 rural beneficiaries will cause overlapping and duplication of pipeline for the entire project area. Hence it is proposed to de-link Vellakoil Municipality and Kangayam Town Panchayat from the existing scheme and a separate CWSS is prepared for Vellakoil municipality and Kangayam Town Panchayat.


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b. Service Reservoirs There are totally 6 over head tanks in the town. The details of the Over head tanks are shown in Table 5.1.

Table 5.1 Details of OHTs S.No Location of OHT Capacity (Lakh litres) 1 Salavaiyalar colony 1.00 2 Natesan nagar 4.00 3 Uppupalayam 3.50 4 Municipal office 2.00 5 Theethampalayam 1.50 6 Sivananthapuram 1.50 Total 13.50

Source: Vellakoil Municipality c. Distribution system The total length of the existing distribution system is 168 km against a total length of roads 174.50 km. d. Water Tariff The monthly tariff and deposits collected for water supply is as follows:

Table No. 5.2: Water Tariff-Deposit Details Type of connection Deposit amount (in Rs) Flat rate /month (in Rs)Domestic 3000.00 65.00 Commercial 6000.00 115.00 Industrial 6000.00 105.00

Source: Vellakoil Municipality ii) Water Supply Demand The population of the town is projected for the intermediate and ultimate years. The projected water demand is given in table 5.3

Table 5.3 Demand & Supply in Water Supply - Projection

Year Population Supply in MLD

Demand @ 135 lpcd

Gap in MLD

Floating population

Floating population demand at 20 lpcd

2001 34438 3.0 4.65 1.65 - - 2010 51620 3.0 6.96 3.96 10000 0.20 2025 81873 3.0 11.05 8.05 13000 0.26 2040 112132 3.0 15.14 12.14 17000 0.34

Source: Municipal records, Analysis and calculation The present floating population is taken as 10000. The annual increase of 2% is taken for calculating the projection. The per capita supply of 20 lpcd is proposed for floating population. The demand of water supply for the above period is calculated at 135 lpcd.

iii) Demand Assessment The water supply improvement scheme has been prepared by TWAD Board which is awaiting fund release from Government of India. The issues in water supply are identified and remedial


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measures have been suggested. The water supply demand calculated by the TWAD Board for the intermediate population (2024) is 6.1 MLD and Ultimate year (2039) is 7.32 MLD. The town is experiencing high population growth as the town has a high potential for industrial growth. Therefore, the total demand of water supply calculated for intermediate period is 8.31 MLD and ultimate period is 12.48 MLD. The present storage capacity of the service reservoirs is of 13.5 Ll. Therefore the storage requirement will be 12.48/3 = 4.16 MLD < 1.35 MLD (existing). Hence, additional storage of 1.42 ML is required for intermediate period and 2.81 ML, required for the ultimate period. iv) Proposals The source proposed for this project is River Cauvery near Kodumudi. The proposed head works will be located just on the upstream of the existing headworks of Muthur-Kangeyam CWSS. It is proposed to draw 6.11 MLD for the intermediate stage and 7.32 MLD for the ultimate stage for Vellakoil alone. The salient features of the proposal are the head works, pump sets, raw water pumping main, treatment plant, clear water reservoir, clear water pump sets, pump house, Booster station, Laying of distribution system (feeder mains only) for 23 km and Construction of 4 OHTs at Melagoundanpalayam colony (1Ll), Muthur road (5Ll), Sivanathapuram (3 Ll) and Pudur road (2 Ll). The per capita cost for this project is Rs.2926.00 and the cost per 1000 liters is Rs.8.05 (schedule of rates 2007-08 + 10% price escalation). The installation cost of the water supply improvement scheme is Rs.1199.12 lakhs. The Annual Maintenance cost is Rs.49.00 lakhs. 5.1.2 SEWERAGE

i) Existing Status The town does not have an Under Ground Sewerage System. Disposal of the sewage is normally by way of individual facilities and the sullage is through the open drains. The main mode of individual disposal in the town is through septic tanks, low cost sanitation units and through public / community toilets. ii) Demand Assessment In order to improve the sanitation in the town, Under Ground Sewerage System is necessary with treatment facilities at terminal points. iii) Proposals The field survey for UGSS has been done by TWAD Board. Identification STP site is in progress. The total estimated cost of the proposed Under Ground Sewerage System for Vellakoil municipality is Rs.3300.00 lakhs. The Operation and Maintenance cost will be is Rs. 82.00 lakhs. 5.1.3 STORM WATER DRAINS

i) Existing Status Vellakoil municipality has provided open storm water drains for a length of 19 km. The total length of the existing road length in the town is about 174.50 km. The percentage coverage of storm water drains is about 11%.


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At present, storm water drains carry the sullage and rain water which is ultimately let into the PAP channel (Parampikulam Aazhiyar Program) and Kurukampalayam Pirivu (proposed STP site) without any treatment. This imposes health and environmental hazard to the natural water system and needs to be addressed through a proper treatment and disposal facilities. ii) Issues The main issues persisting in the town due to the absence of a storm water drainage system are summarized as follows:-

• Open drains creating unhygienic conditions • Absence of Under Ground Drainage System in the town • Water stagnation in low lying areas during rainy season

iii) Demand Assessment The residential areas of the town are provided with open drains. The town area is 64.75 sq.km and about 75% of land are undeveloped, agricultural lands or barren lands. The storm water is carried by the natural drain network in these areas emptying into the channels. Absence of UGSS and storm water drains in the residential areas of the town are the major causes of land and water pollution. This situation degrades the environment by emanation of foul smell and unhealthy conditions due to stagnation at a number of points. iv) Proposals Proposals by consultants

To develop a Comprehensive Drainage Master Plan channelizing the runoff along the natural contours so as to cover the entire town and implement in phases.

Measures to be taken to improve, upgrade and clean the existing natural and man made storm water drains to the required functional level with the involvement of local community to ensure sustainable operation

Provision of new drains in newly developing areas

Table 5.4 Storm water Drains - proposals S.No Description Capital Investment

in lakhs 1 Preparation of Comprehensive Drainage Master Plan 3.00 2 Provision of new drains including newly developing area (15 km) 240.00 3 Rejuvenation of entire existing drain network (19 km) 57.00 Total 300.00 Annual O & M 4.50

Source: Analysis and discussions with municipal officials Therefore, the total investment required for the improvement of storm water drains (short term) is Rs.300.00 lakhs. The rest of the road length will be covered in the long term plan. 5.1.4 IMPROVEMENT TO WATER BODIES

i) Existing Status There is no water body in the town maintained by the municipality. The PAP channel is the manmade channel maintained by the PWD.


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5.1.5 SOLID WASTE MANAGEMENT

i) Existing status Vellakoil Municipality generates 14 MT of solid waste. Out of 21 wards, 8 wards in the town are privatized (SHG) for solid waste collection. The solid waste generated in the town is collected and segregated at source and dumped in the compost yard (3.50 acres) at Soriyankinathupalayam. An income of Rs.1000 per annum is generated through selling of the segregated recyclable waste. The details on solid waste management are given below: Total waste generation per day - 14 MT Frequency of collection - daily Collection efficiency - 85% (12 MT) Collection points - 40 Push cart - 49 Tri cycle - 5 Tipper Lorries - 2 Tractor - 1 Power tillers - 2 ii) Issues

• Absence of scientific waste management and disposal • Inadequate sanitary workers and supervisors – of the 159 sanctioned sanitary workers,

only 24 workers are available. • The existing compost yard is not provided with adequate infrastructure facilities • Easy access and availability of open lands has led to negligent dumping and unsanitary

conditions.

iii) Demand Assessment Currently, 14 MT of solid waste is generated with a per capita waste generation of 300 grams per day. In future years assuming the per capita generation of solid waste in the town at 400 gm/day, there will be corresponding addition of 30% to 40% in solid waste generation. Solid Waste Management is one of the principal sectors of expenditure in Urban Local Bodies. Hence, there is a need for scientific management of solid waste to cope with future demand. Of the Municipal waste in Tamil Nadu, 40 - 60% of the waste is biodegradable. Of this, on conversion, nearly 30% by weight forms the manure. Incidentally, the manure generated from Municipal waste 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. iv) Proposals The improvements proposed towards solid waste management are as follows. Integrated Solid Waste Management is the application of suitable techniques, technologies and management programs covering all types of solid wastes from all sources to achieve the twin objectives of waste reduction and effective management of waste still produced after waste reduction. Municipal solid waste management involves the application of Integrated Solid Waste Management to Municipal waste.


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The activities associated with the management of municipal solid wastes from the point of generation to final disposal can be grouped into the six functional elements:

a. Waste generation b. Waste handling and sorting, storing c. Collection d. Sorting, processing and transformation e. Transfer and transport f. Disposal

The inter-relationship between the functional elements is given in Fig 5.1

Fig 5.1 Functional Elements of a Municipal Solid Waste Management System

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,


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production of manure from composting. Wind rows 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.

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.

The CDP proposals based on analysis, discussion with Municipal officials and norms is given in the table below:

Table 5.5 Solid Waste management – Proposals* Sl. No Project details Cost in lakhs

1 Small vehicle with containers for door to door collection @ 160 litres capacity (220 Nos) 25.00

2 Dumper placer vehicle (2 nos) 15.003 Purchase of land for additional Compost yard (2.50 acres) 250.00

4

Improvements for existing and new compost yard - with one side compound wall, segregation sheds, internal roads and machineries for preparation of compost 200.00

5 Proportionate cost for regional land fill site 300.006 IEC activities 10.00

Total 800.00Annual Operation and Maintenance cost 6.25

Source: Analysis and calculations Therefore, the total investment required for improvement in Solid Waste Management is Rs.800.00.00 lakhs. *-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. 5.1.6 ROADS

i) Existing status The major roads connecting the town to the surrounding urban centers are:

• Coimbatore – Thiruchirapalli National Highway • Erode – Tharapuram road • Moolanur road


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The details of the municipal roads is given in table 5.6

Table 5.6 Category of roads Category Length in km % to total length

National Highway 5.00 - Municipal Roads CC Roads 10.36 6 BT Roads 106.88 61 Earthen Road / WBM 57.26 33 Total Length of Municipal Roads 174.50 100

Source: Vellakoil Municipality ii) Issues

• 33% of the total Municipal roads are earthen and WBM roads • Differential settlements and potholed surfaces on the existing BT roads • Encroachments on main roads • Unorganized parking along main roads • Absence of traffic management plan- with demarcated pedestrian corridors, medians,

signals and traffic islands iii) Demand Assessment The circulation network forms basic network of the town to move, to interact, and interlink the residentials, the work places, and other activity centers. A good road network is a necessity not only for growth and development of habitats, but also to sustain it in a progressive mode. The access roads in extension areas and the link roads, widening of major roads proposed in the DDPs need to be provided. iv) Proposals The town has 33% earthen road which should be upgraded to BT surface. Apart from this, the access roads in extension areas need to be covered. The projects proposed for the road improvement in Vellakoil town is as follows.

Table 5.7 Road improvement - Proposals S.no Particulars Rs.in lakhs

1 Upgradation of earthen road to BT (57 km) 1197.00 2 Restoration of existing BT roads (106 km) 636.00 3 Provision of medians (3km) 30.00 4 Improvements to road geometry – provision of

medians, traffic islands, Signals, signages etc 30.00

5 Pedestrian platform along main roads 50.00 6 Widening of main roads and link roads 100.00

Total Rs.2043.00 lakhs O&M 22.00

Source: Analysis and discussions with municipal officials

Therefore, the total investment required for the road improvement is Rs.2043.00 lakhs.


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5.1.7 BUS STAND

i) Existing Status The town has a C class bus stand in an extent of 1 acre, within its limits maintained by the municipality. About 250 buses per day arrive in this bus stand. The municipality bus stand complex has 8 shops. ii) Issues

• The flooring is damaged with differential settlements • Inadequate waiting sheds for passengers. • Inadequate space for buses • Inadequate space for parking of two wheelers • Inadequate water and toilet facilities

iii) Proposals In order to bring the bus stand to effective functioning, the cooperation from the private and government bus operators, drivers and conductors and the public is necessary. The proposed expansion of bus stand with basic facilities work is under progress. 5.1.8 BUS SHELTER The 6 bus stops in the town are provided with bus shelters. The construction of bus shelter at Old bus stand area for Rs.5.00 lakhs under MLA fund is in progress. New bus shelters (5 nos) are proposed to be constructed at Erode road – Arivoli Nagar stop, Trichy -Coimbatore main road – opp. to municipal office, Karattupalayam Pirivu, Madamedu piruvu (Mulanoor road), Theethampalyam at a cost of Rs.10.00 lakhs. It is also proposed to restore the existing bus shelters and provide space for information boards, space for advertisement and hoardings in the bus shelters which will generate revenue for the Municipality. The provision of bus shelters can be done with the help of NGOs and community organisations, industries etc. 5.1.9 STREET LIGHTS i) Existing status The town is lit by 1986 street lights of which 89% of lights constitute tube light. About 40 number of timer switches are provided covering all street lights to minimize the energy consumption. The break-up details of the street lights in the town are as follows

Table 5.8 Existing street lights and energy consumption S.No Existing Light details Numbers Percentage distribution Consumption in w

1 Tube lights (40w) 1777 89 97735 2 Sodium Vapour lamp (250w) 205 10 57810 3 High Mast lights 4 1 -

Total 1986 155545 Per hour consumption 155545 W or (excluding high mast)

155.545 kW/hr No of timer switches required 60

Source: Municipal records, Analysis and calculations Therefore, the present level of energy consumption of street lights in Vellakoil Municipality is 664643 KW. i.e. Rs.23.26 lakhs per year on an average.


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ii) Proposals Proposals under CDP An Energy Service Company (ESCO) identifies and evaluates energy saving opportunities in industrial units, commercial complexes, hospitals, municipalities, buildings and utilities by using energy audit tools and recommends a package of improvements that can pay for itself through the resultant savings. ESCOs provide their clients with 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:

1. 'Nil' investment by customer. 2. ESCO to identify Energy Efficient Measures (EEMs) to replace / modify existing in

efficient systems. 3. ESCO supplies, installs and maintains the Energy Efficient Measures (EEMs) during the

contract period. 4. Contract period could be 3-5 years or as mutually agreed upon. 5. 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. 6. Guarantee Energy savings and recover its investment including interest & other costs out

of generated energy savings. Proposals by ULB The components suggested for improvements of street lights are

• Retrofitting of tube lights • Provision of new street lights • Provision of High mast lights at

o Old bus stand o Bus stand

Table 5.9 Street lights - Proposals S. No Description units Rs. in lakhs

1 High mast lights at old bus stand and bus stand 2 14.00 2 Installation of street lights with poles ( T5 lamps ) 28 4.00 3 New street lights (SV lamps) 66 8.00 4 New street lights for newly developing areas 700 90.00 5 Central median lights at main roads for 3 km 100 45.00 6 Provision of timer switches 20 2.00 7 Retrofitting existing tube lights 1777 18.00 8 Retrofitting existing SV lamps with energy efficient lights 62 1.00

Total 182.00 Annual O&M cost 5.00

Source: Analysis and discussions with municipal officials


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Therefore, the total cost required for the street light improvements (short term) including the energy saving proposals is Rs.182.00 lakhs. 5.2 SOCIAL INFRASTRUCTURE

5.2.1 SLUM IMPROVEMENT i) Existing status The town has 16 slums with a total population of 7766 (6741+1025) which is about 16% of the total population. The details of the slums are given in table below.

Table 5.10: Location of Existing Slum Areas

S.No Name of Slum Notified /un notified Total No. of House Population1. Soriyankinathupalayam Notified 206 827 2. Semmandemapalayam Notified 59 237 3. Karattupalayam Notified 60 225 4. Pullachellipalayam Notified 61 276 5. Thaneerpanthal Notified 75 301 6. Uppupalayam Notified 198 794 7. Kallankattuvalasu Notified 81 326 8. Reddivalasu Notified 65 262 9. M.G.R.Nagar Notified 79 316 10. Arivolzi Nagar Notified 70 281 11. Indhira Nagar Notified 170 770 12. Katcherivalasu Notified 86 442 13. Theethampalayam Notified 84 379 14. Agalarapalayampudur Notified 133 601 15. Velagoundempalayam Notified 103 413 16. Kadaiyuranvalasu Notified 72 291

Total 1602 6741Source: Vellakoil Municipality In addition to this the unapproved slums developed in recent years covers a population of about 1025. The details of the unapproved slums are as follows

Table 5.11: Details of Existing Slum Areas S. No Name Of The Slum No. of Households Total population

1 Viraguthoppu 40 200 2 Patchapali 30 160 3 Nachipalayam 20 70 4 Ganapathipalayam 20 100 5 Subramaniyagoundenvalasu 10 25 6 Cheran Nagar 50 220 7 LKC nagar west side 60 250

TOTAL 230 1025 Source: Vellakoil Municipality


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Upgradation of slums rejuvenates the existing community with minimum disruption and loss of physical and social assets. It also involves the improvement of access roads and community facilities. Slum improvement consists of physical, social, economic, organizational and environmental improvements undertaken cooperatively and locally among citizens, community groups, businesses and local authorities. Damaged roads, inadequate and damaged storm water drains, inadequate street lights and poor housing conditions are the issues identified in the slum areas. ii) Proposals It is proposed to improve the slums with provision of housing units and infrastructure facilities under IHSDP. The details of the proposals are given below

Table 5.12: Slum - Proposals S. No Description Numbers Rs.in lakhs

1 Shelter 599.00 Nos 479.20 2 BT Road 6.712 k.m 76.40 3 C.C Road 0.510 k.m 4.50 4 Drain 6.213K.m 73.80 5 Culvert 10Nos 6.25 6 Retaining Wall 0.014k.m 0.75 7 Extension of Pipe Line 2.500k.m 3.30 8 Erecting of Motor 6 Nos 6.00 9 Bore Well 8 Nos 4.80

10 Street Light 90 Nos 18.00 11 Toilet Block 6 Nos 36.00

Total 709.00 Source: Vellakoil Municipality The total investment required for slum improvement is Rs.709.00 lakhs. 5.2.2 PARKS AND PLAY FIELDS i) Existing status Municipality maintains one Children Park (G.K.Moopanar Park – 25 cents) located at Seerangarayagoundan valasu road. The park is provided with basic facilities. ii) Issues

• Absence of recreational facilities • Lack of maintenance

iii) Proposals The town has no approved layout open spaces to develop parks. The municipality should ensure the approved layout open spaces for park usage in future. Therefore it is proposed to develop and maintain the existing park with good landscaping, seating arrangements and play materials at a cost of Rs.20.00 lakhs.


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5.2.3 MARKET i) Existing status The municipality maintains a weekly market which is located behind the bus stand in an extent of 3 acres. The market supplies groceries and vegetables to fulfill the daily needs of the local people. The daily market in this town lacks basic facilities and the shops are functioning in makeshift arrangements. The market needs to be improved with modern facilities. ii) Proposals It is proposed to construct a modern daily market complex and weekly market within the available 3 acres of land.

Table 5.13: Market - proposals S.No Description Rs. in lakhs1 Construction of Daily market with stalls, basic facilities such as water supply,

sanitation, solid waste disposal and collection, loading, unloading etc 75.00

2 Construction of weekly market / shandy with stalls, basic facilties such as water supply, sanitation, solid waste disposal and collection, loading, unloading etc

75.00

Total Rs.150.00 lakhs O&M cost 3.00

Source: Analysis and discussion with municipal officials

Therefore the total cost required for market improvement is Rs.150.00 lakhs. 5.2.4 PUBLIC CONVENIENCE The town has 6 public toilets located in the following areas:

• Thiruvalluvar nagar • Indhira nagar • Amman koil street • Dharapuram road • Bus stand • Veerakumar nagar

The local body has proposed for the construction of 8 VAMBAY toilets at Agalarapalayam Puthur, Uppupalayam, Kumaravalasu, MGR nagar, Arivoli Nagar, Karattupalayam, Thaneer Panthal area in addition to the existing ones. The total investment required is Rs.35.00 lakhs. 5.2.5 SLAUGHTER HOUSE At present there is no slaughter house in this municipality. A slaughter house is proposed by the municipality within the market and the work is under progress. 5.2.6 BURIAL GROUND The town has 2 number of burial ground maintained by the municipality. The burial grounds are provided with compound wall, shed and basic facilities. The municipality has proposed for installation of gasifier unit at a cost of Rs.100.00 lakhs.


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5.2.7 E-GOVERNANCE i. Existing Status E-governance is aimed to provide on-line citizen services, information to all hierarchies and monitor the performances. It is in practice that citizens are approaching the respective urban local bodies to pay their revenues, get certificates, approvals for construction of Building etc. By adopting E-governance, the above activities are simplified and made possible at their Information and Facilitation counter in the Municipality. By E-governance, the services of Vellakoil Municipality will be made easy, transparent, accountable and quick. The citizens may be informed about their dues and thus the revenue generation will be faster and easier. The modules online in this town are 6 and the rest of the modules will be made online shortly. Modules online – 6 (Property tax, Water tax, Professional tax, Salary, FAS, Birth and death) ii) Proposals It is proposed to provide 4 Seva centers at Booster house Moolanoor road, Natesan nagar, Erode road (near bus stand) and at municipal office. The total cost required is Rs.16.00 lakhs. 5.2.8 URBAN GREENARY The main roads, residential avenues need to be provided with trees. It is proposed to provide 2000 number of saplings/treelings planted along main roads. Private participation and involvement of SHGs and NGOs can make this task a success. The total investment required is Rs.10.00 lakhs. The annual Operation and maintenance cost is Rs.10000. 5.3 OTHER PROJECTS The municipality has a community hall at Salavaiyalar colony and a shopping complex at Theerthampalayam with 4 shops. Construction of commercial building with an area of 5000 sq.ft at Erode road near the bus stand is proposed by the municipality. The demand for the commercial building may be assessed by the municipality. The cost required to implement the project is Rs.100.00 lakhs. 5.3.1 UPDATION OF DATABASE ON GIS PLATFORM There is no realistic database for the town, in the 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 or aerial photographs. All these with spatial and non-spatial data can be had on a GIS format which, on a click at any feature or site on the town map will provide the entire details including the description of the feature / 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. In this ultra modern age, with high-tech interventions, this is considered a must for easy, efficient and flawless governance, administration and functional operation from local body level to the government level.


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This project may cost about Rs. 40.00 lakhs including the cost of high resolution satellite imageries. This entire amount may be obtained as grants from the government and it will take maximum one year for completion. a. 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.10.00 per property, the estimated cost for the project would be Rs.4.30 lakhs. This would also aid in identifying unassessed and under assessed properties, rationalization of property tax etc. 5.4 PROPOSALS TO BE IMPLEMENTED BY OTHER AGENCIES To make use of the inherent potential of the resources in the town, there are certain proposals which can be implemented by other agencies. Implementation of these proposals will enhance the development of the town. The proposals are put forward visualizing the optimal utilization of the resources available in and around the town.

Table 5.14 Proposals to be implemented by other Agencies Sl. No Proposals Nodal agency

1 Regional Development plan DTCP

2 Preparation of Integrated Solid waste Management Action Plan

CMA/TNUIFSL

3 Preparation of Integrated Traffic management Plan Erode Corporation

4 Provision and up-gradation of Health facilities Panchayat Union/ Health

and Family Welfare Department

5 ESCo Studies CMA/TNUIFSL

6 Awareness creation campaign for NGOs for – E governance, UGSS, Water Supply, Solid Waste Management and tax collection

Erode Corporation/RDMA,Tiruppur.


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5.5 CAPITAL INVESTMENT PLAN The capital Investment for Vellakoil Municipality under CDP has been detailed out in the previous sections. The projects include major infrastructural projects initiated by the State government recently for water supply and drainage and, medium and small projects by way of meeting the long felt needs to provide comfortable living environment to the citizens of the town. In all, 16 capital projects are proposed of which 7 relate to provision of physical infrastructural facilities and, the rest relate to social infrastructure and commercial ventures. The capital investment plan is detailed in the table below: The year wise investment plan and prioritizations of all the projects included in the CDP are given in the table shown below:

Table 5.15 Capital Investment Programme

S.No Project Description Estimated capital

cost (in lakhs) Year I Year II Year III Year IV Year V Medium Term 2025

Long term 2040

1 Water Supply 1199.12 1199.12 - - - - 825.00 2550.00 2 Sewerage System 3300.00 - 1500.00 1800.00 - - 1190.00 4105.00 3 Storm Water Drains 300.00 - 60.00 80.00 100.00 60.00 5848.00 5100.00 4 Solid Waste management 800.00 300.00 600.00

a Land cost for compost yard and regional land fill

550.00 250.00 300.00

b Improvements for existing and new compost yard

200.00 200.00

c Vehicles and equipments 50.00 25.00 25.00 5 Roads 2043.00 0.00 3923.00

a Upgradation & restoration of roads 1833.00 90.00 450.00 657.00 336.00 300.00 b Improvements to road geometry 110.00 50.00 60.00 c Widening of main & link roads 100.00 70.00 30.00

6 Bus Shelter 10.00 6.00 4.00 - - - 0.00 0.00 7 Street Lights 182.00 - - 255.00 653.00 High mast lights at old bus stand and bus

stand 14.00 7.00 7.00


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Installation of street lights & fittings 100.00 10.00 30.00 30.00 30.00 Retrofitting & energy saving devices 23.00 23.00 Central median lights for 3 km 45.00 40.00 5.00 8 Slum Improvement 709.00 - 375.00 150.00 113.00 71.00 0.00 0.00 9 Parks and Play Fields 20.00 - - - - 20.00 0.00 0.00 10 Market 150.00 0.00 0.00

a Construction of Daily market 75.00 75.00 b Construction of weekly market 75.00 75.00

11 Public Convenience 35.00 15.00 15.00 5.00 - - 0.00 0.00 12 Burial Ground 100.00 - 100.00 - - - 0.00 0.00 13 E-Governance 16.00 8.00 8.00 - - - 50.00 75.00 14 Urban Greenery 10.00 - - - - 10.00 25.00 50.00 15 Other Projects - Commercial building at

Erode road near bus stand 100.00 100.00

16 Updation of Database - GIS 40.00 - - - - 40.00 0.00 200.00 17 Property Mapping 4.30 4.30 - - - - 3.00 8.00 Total 9018.42 1404.42 3067.00 3377.00 639.00 531.00 8496.00 17264.00

The total capital investment required for the implementation of the identified projects in Vellakoil municipality is estimated at Rs.9018.12 lakhs,


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6 REFORMS AND ACTION PLAN FOR PROJECT IMPLEMENTATION

A City Development Plan (CDP) is essentially a road map to achieve a set of development objectives within a specific period. This CDP has identified gaps in municipal service delivery and institutional management, ascertained by 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. 6.1 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 and GoI :

1. Devolution of funds: 3.5% of State’s total tax revenue passed on to urban local bodies. 2. State Finance Commissions: Three consecutive state finance commissions were

setup for recommendations to Government. 3. Setting up of TNUDF: A successful private-public partnership initiative to tap the capital

market. 4. Accrual Based Accounting System: The new accounting system has been

implemented in all the urban local bodies. 5. Computerization and E-governance of select Municipal functions have been

successfully implemented in all urban local bodies. 6. Urban indicators: Performance assessment of ULBs initiated by the CMA, Government

of Tamil Nadu. 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.


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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. The Public Disclosure Law: To reduce the workload of public officials increased due to additional responsibility of responding to RTI requests, the public disclosure law will require that information be published voluntarily by public authorities. This will significantly reduce the number of routine RTI requests. The Public Disclosure Law will complement the RTI Act. The Disclosure Law will provide for commonly requested information on a regular basis and the RTI Act may be used for more specific information.

6.2 PROPOSED INTERVENTIONS AT STATE LEVEL

a. Property Tax Implement a framework law for disputed properties, so that the assessees pay the tax first and then carry out necessary litigation as in Central Govt. Depts. b. Community participation law Enacting the “Community Participation Law” that will make it mandatory for the government and its agencies to get the view of citizens, mainly residents’ welfare associations and other citizens’ groups, before starting any project. c. Initiatives in Private Participation In Tamil Nadu, PPP has been identified as a modality for development and the PPP cell has been formulated as the nodal agency to guide the various Govt. Agencies such as CMDA, TNSCB,TNAMB . The processes such as vetting of RFQ/RFP, Project preparation ,Procurement of private operator , Approvals etc are being handled by the cell at present. The cell has also prepared training materials, presentations/handouts, compiled case studies etc, which are given as a part of capacity building Content for web hosting developed pending approval by Go TN. The way forward

1. Information dissemination to public sector agencies and various ULBs through websites of the ULBs and CMA and organizing workshops with the aid of Anna Institute of Management, TNIUS, Council of Indian Industries etc.


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2. A database consisting of model bid documents, success models, sector wise PPP consultants and operators can also be formulated.

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 treatment requires large Capital

Investment; demand high maintenance costs are not feasible for the developing countries like India. 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 in and around urban area. 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.

6.3 PROPOSED INTERVENTION AT MUNICIPAL LEVEL The Proposed Municipal intervention is broadly categorized under the heads of:

1. Strategies for Environmental Improvement 2. Reforms in Resource Mobilisation 3. Privatisation Initiatives 4. Energy & resource efficiency 5. Computerization and E-governance 6. Accounts and Auditing 7. Institutional Management 8. Municipal service delivery

Strategies for Environmental Improvement It includes the following:


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• Formation of Sustained Economic Development Organisation • Regular monitoring and stringent enforcement of Pollution control regulations on the

industries utilising the existing CETPs. • Initiate a ‘Pollution remediation Pooled fund for Tiruppur region‘ on the lines of

AMBURTEC and VANITEC - A public-private partnership initiative, with contributions from Industrial establishments, Govt. and funding agencies.

• Launch intensive water recharge activities to surface water bodies including open wells, Ooranis, odais and eris, to improve water quality and quantity in this region.

Table 6.1Road map – Environmental Improvement

S.N Reforms Year of Implementation

Year 1 Year 2 Year 3 Year 4 Year 5

1 Business Plan for Industrial remediation measures

2 Implementation of Industrial remediation measures

3 Intensive water recharge activities

4 Enforcement of Pollution control regulations

6.3.1 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

6.3.1.1 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. The project could be taken up as a door –to –door survey of all existing properties, with details on

1. Size & built up area of the property 2. Present use - residential, commercial, industrial or vacant.

Street naming and property numbering already undertaken by Govt. of Tamil Nadu needs to be linked to this to streamline the study. 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 issue omission of profession tax assesses within Municipal limits would also be


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addressed in this project. The participation of the SHGs, (youth and women) could be utilized for the purpose.

2. Rebates on tax: Most of the collections take place during the last quarter of the year. This results in poor collection efficiency, wherein the ULB ends up collecting much less taxes than the tax demand raised. The option of providing rebates upto 10% for ‘early birds’ paying the tax during the 1st and 2nd quarter could be explored. This would ensure timely spending on capital and operating expenditure and efficient tax management systems. 3. Regular and periodic increment of property tax at 15% every 5 years. 4. Levy of penalty on unauthorised construction until regularization and approval.

ii. Sustainable amendments regarding the above aspects may be considered.

Identifying and including omitted Profession tax assessees. This project is to be linked to the property mapping exercise. An improvement of 20-30% on the existing tax base could be expected.

Table 6.2 Road Map - Improving revenue from own sources



1

Property tax Reform i Property Mapping ii Rebates on Property tax iii Regular and periodic increment of property tax

2 Levy of penalty on unauthorised construction.

3 Reassessment of omitted Professional tax assessees

6.3.1.2 Improving Revenue from User Charges Strategy options i. Water supply and UGSS

Fixing of bulk water meter at apartment complexes, commercial , industrial , hospitals, marriage halls and educational institutions.

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 House Service Connections to at least 85% of the 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.


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Implementation of graded tariff structure (UGSS) for domestic and non-domestic connections. This needs to be linked to property mapping project and type of assessment to be ensured.

Mandatory Mobilization of deposits for Capital intensive WS or UGSS projects during pre-construction stage of the project.

Regular and periodic increase in tariff and deposit structure every 5 years.

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:

• Commercial - Rs.10 per ton. • Industrial - Rs.15 per ton. • Bio-medical - Collected by IMA.

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 �one 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 6.3 Road Map Improving revenue from user charges

S.N Reforms Year of Implementation Year 1 Year 2 Year 3 Year 4 Year 5

1

Water Supply and UGSS i Increasing deposit and tariff ii Graded tariff for UGSS iii Pre mobilization of deposits

2 Solid Waste Management

ii

Collection of conservancy fee for Commercial and Industrial Establishments

iii

Collection of conservancy fee for Domestic assessments


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6.3.1.3 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 within municipal area.

• Construction of Commercial building at Erode road near bus stand

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 area within the town. Initiating time based pay and park facilities for vehicles. Appropriate rent structure from light carriage vehicles and heavy vehicles parking would also improve income generation. The proposed parking fee structure is:

◊ Two wheelers - Rs.2.00 per day ◊ Light Vehicles - Rs.5.00 per day ◊ Heavy Vehicles - Rs.10.00 per day

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

Table 6.4 Road Map for Formation of new sustainable revenue bases


1 Formation of new sustainable revenue bases i Remunerative Projects

a. Premobilization of deposit for commercial building at Erode Road near bus stand

ii Parking Regularization

iii Advertisement Regularization

6.3.2 Action Plan: Privatisation Initiatives The areas of privatization of the functions of the ULB in Tamil Nadu are

i. Solid waste management


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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 the above list is indicative and the 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 presented 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 in detail 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) 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.


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Table 6.5 Road Map for Privatization initiatives


1 Privatization of Operation and Maintenance i Water supply and Distribution system ii Sewer network & STP iv Street lights vi AMC of Public and pay % use toilet facilities

vii

Parks and parking lots Maintenance and user charges collections

2 Privatisation options in Solid Waste Management

Privatization of Door to door collection of solid waste

Compost yard management & sale of compost & scrap

3 Privatization of Collection mechanism Spot billing and tax collection using mobile van

4 Formation and sensitisation of youth & women SHGs

5 Public awareness campaign for improving tax collection (IEC)

6.3.3 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. 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 study of Energy Saving Company (ESCO) 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


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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:

1 'Nil' investment by customer / ULB. 2. ESCO to identify Energy Efficient Measures (EEMs) to replace / modify existing in

efficient systems. 3. ESCO supplies, installs and maintains the Energy Efficient Measures (EEMs) during the

contract period. 4. Contract period could be 3-5 years or as mutually agreed upon. 5. 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. 6. Guarantee Energy savings and recover its investment including interest & other costs

out of generated energy savings.

Table 6.6 Road Map for Energy and Resource efficiency


Year 1 Year 2

Year 3

Year 4

Year 5

1 Energy audit i Leak detection study ii Fixing of bulk water meter iii Fixing flow control values and meters

iv

Implementing energy saving measures on street lights and pumping machineries (ESCo)

6.3.4 Action Plan: Computerization and E-Governance Strategy options

1. Launch data warehousing on a large scale, which would avoid cross-reference to paper record, which are time consuming and also preservation of paper media, which occupies space, could be avoided.

2. Computerization of bill payment and facilitation of on line payments 3. Computerisation of registration of land records within Municipal limit 4. Digitisation of Birth and death certificates for the past 30 years 5. Property Mapping to be computerised and details on area, year of construction, type of

assessment to be computerized to facilitate calculation of property tax. 6. Administration and issue of trade licenses to be on line, including payment and

reconciliation of license fee. 7. Computerization of birth and death certificates and on line issue of certificates. 8. Computerization of public grievances and Redressal mechanism


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9. Introduction of Asset Management System for all the available land and building assets available with 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.

Table 6.7 Road map for Computerization and E-Governance


1 Computerization and E-governance i Digitizing municipal records (past 30 years) ii On-line bill payment iii Registration of Land records iv Digitization of old Birth and death certificates

v On-line issue of Birth and Death certificates

vi Property Mapping vii on-line Issue of trade license viii Online submission of building plans ix E-tendering

6.3.5 Action Plan: Accounts and Auditing

A Consultant committee of chartered accountants, consultants 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.

6.3.6 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


47

also exposes modern/scientific technological advancement in engineering, management and inter personal communication. 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.

Strategy options 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 6.8 Technical Assistance for Elected representatives

Category Identified Training areas Elected representatives • Visioning, goal setting, Planning

• Urban Governance, Management and Planning • Social management and Management of Urban Poor • 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 & 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

Committee members • Tax appeal committee: tax assessment methods; interpretation of various laws, rules, regulations and statutes

• Contracts committee: procurement procedures; interpretation of various laws, rules, regulations and statutes

• Appointment committee: Interviewing skill and techniques


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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 6.9 Technical Assistance for ULB staff

Category Identified Training areas Senior Management Staff • People management skills

• Motivation and Interpersonal skills • Leadership and Public relations • Attitudes – both personal and organizational • Team Building, Human resource development • Goal setting, Budgeting • Written and Oral Communication skills • Effective use of computers especially for managerial decision

making • Proper interpretation and effective use of MIS reports • Decision support systems • 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 • Performance management system and key result areas.

Supervisory Staff • Motivation and Interpersonal skill development


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• 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) Training for Operational staff

• Functional skills required in their respective function - Training in office Procedures - Training in computers - Training in team work

• Training in general office administration and management - Training in effective servicing - Training in communication - Training in equipment usage

Source: CMA Records.

Table 6.10 Road map for Accounts & auditing and Institutional Management Sl.N

o Reforms Year of Implementation


1 Accounts and Auditing with charted accountant

I Appointing private charted accountant consultant

Ii Closing of audit and accounts (Sept 30th)

iii Online publication of audited statement (Oct 30th)

2 Institutional Management

i

Capacity Building for Elected Representatives

ii Capacity Building for ULB staffs


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Table 6.11 Road Map for Implementation of all Projects

S.N Project Items Implementing Agency

Funding pattern

Amount (in

lakhs)

Short term (Rs. In lakhs)

(G:L:M) Year 1 Year 2 Year 3 Year 4 Year 51 Water Supply TWAD Board 71:25:4 1199.12 1199.122 Under Ground Sewerage System TWAD Board 35:37:28 3300.00 1500.00 1800.003 Storm Water drains Municipality 90:00:10 300.00 60.00 80.00 100.00 60.00 5 Solid Waste management 800.00 a Land cost for compost yard and regional land fill

Municipality 100:0:0 550.00 250.00 300.00

b Improvements for existing and new compost yard 0:0:100 200.00 200.00 c Vehicles and equipments 50:00:50 50.00 25.00 25.00 6 Roads 2043.00 a Upgradation and restoration of roads

Municipality 90:00:10 1833.00 90.00 450.00 657.00 336.00 300.00

b Improvements to road geometry 110.00 50.00 60.00 c Widening of main roads and link roads 100.00 70.00 30.00 7 Bus Shelter Pvt. Operator 100% private 10.00 6.00 4.00 8 Street lights 182.00

High mast lights at old bus stand and bus stand Municipality

100:00:00 14.00 7.00 7.00 Installation of street lights and fittings 50:00:50 100.00 10.00 30.00 30.00 30.00 Central median lights at main roads for 3km 90:00:10 45.00 40.00 5.00 Retrofitting and energy saving devices Pvt. Operator 100% private 23.00 23.00

9 Slum improvement Municipality 100:0:0 709.00 375.00 150.00 113.00 71.00 10 Parks and Playfields Municipality 70:00:30 20.00 20.00 11 Market 150.00

Construction of Daily market Municipality 0:0:100 75.00 75.00 Construction of weekly market 75.00 75.00

10 Public Convenience Municipality 50:00:50 35.00 15.00 15.00 5.00 12 Burial ground Municipality 50:00:50 100.00 100.00 13 E-Governance Municipality 100:0:0 16.00 8.00 8.00 14 Urban Greenery Pvt. Operator 100% private 10.00 10.00 15 Other Projects 100.00 a commercial building at Erode road near bus stand Municipality 00:90:10 100.00 100.00 16 Updation of Database On GIS Municipality 90:00:10 40.00 40.00 17 Property mapping Municipality 0:0:100 4.30 4.30 Note: G:L:M – Grants : Loan : Municipal Own Fund


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6.3.7 REFORMS IN MUNICIPAL SERVICE DELIVERY The reform agenda for municipal service delivery is given in the following table

Table 6.12 Reform Agenda - Municipal Service Delivery

Sector Particulars Benchmark considered Existing

Target Outcome After 5 years Year 1 Year 2 Year 3 Year 4 Year 5

WAETR SUPPLY

Net Supply per capita 135 lpcd 70 lpcd Period of

Implementatio

n

135 lpcd

HSCs - % of assessed properties

≥85% 29% ≥85%

Frequency of Supply - Hours per day

24x7 hours Once in 4 days

- - - - 24x7

SEWERAGE SYSTEM

HSC coverage ≥85% Nil - Period of

Implementation

≥85%

Coverage of UGSS network - % of road length

100% Nil - 100%

SOLID WASTE MANAGEMENT

Availability of Composting facility

100% available

Available

Period of Implementation

100% available

Collection efficiency 100% 85% 100%

ROADS, STORM

WATER DRAIN, STREET LIGHTS

Surfaced roads- % of total road length

100% 67% Period of Implementation 100%

Storm water drains - % of total road length

130% 11% - Period of Implementation

Average spacing between Street lights

30 m 88 m Period of Implementation 30m

Source: Analysis and research


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7 ASSETS MANAGEMENT PLAN

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 Vellakoil 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. 7.1 ACTIVITIES OF ASSET MANAGEMENT PLAN (AMP) The Asset Management Plan for Vellakoil Municipality would comprise the following 5 steps as explained below: 1. Asset identification All movable and immovable equipments, immovable municipal properties, assets of Municipality that have been developed, handed over or acquired over time from various sources and departments have to be identified and traced. This would include the detection of unrecorded infrastructure facilities and properties; scrutiny of records, land registers and land surveys, etc. 2. Audit and reconciliation of records The Municipality should record all movable and immovable municipal properties and assets and infrastructure facilities. Maps and master plans should be crosschecked and an infrastructure facilities audit should be prepared or updated (if already existing). Current asset values should be assigned based on a ‘condition-survey’ of the infrastructure facilities. Land and property records should be crosschecked and municipal registers to be updated to include previously undetected land, properties and development. A comprehensive list of municipal land, properties and development should be compiled with approximate assigned.


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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. 7.2 PRIORITY ASSET MANAGEMENT OPTIONS There are remunerative and non-remunerative assets of the municipality on which the municipality incur considerable expenditure for operation and maintenance. The commercial complexes in the town, Shops in the bus stand, Markets, Slaughterhouse, Pay and Use toilets, etc are all remunerative. Non-remunerative assets of the municipality are the burial ground, public toilets, compost yard, parks and playfields etc,. The list of land assets are given in the table below:

Table 7.1 Priority Municipal Assets – Vellakoil Municipality

Sl. No Name of the Asset

Revenue Income from the asset

(2006-07)

Revenue Expenditure on the Asset during

(2006-07)

Suggested Improvement options

1 Water supply & distribution system

27.84 Lakhs 44.84 Lakhs Leak detection study Esco Study

2 Drainage Nil 6.80 Lakhs Improvement of SW network & rain water harvest. Proposed UGSS to improve environment and revenue to Municipality.

3 Pay and use Toilet 1.38 Lakhs Nil Privatisation of maintenance through SHGs

4 Street lights Nil 24.69 Lakhs Esco Study, -Energy efficiency & man power optimization


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5 Markets 6.86 Lakhs Nil Proposed new market with basic facilities

6 Commercial complexes 2.32 Lakhs Nil - 7 Bus stand 3.25 Lakhs Nil Proposed expansion of

bus stand with the provision of basic facilities

8 Two / four wheeler parking areas

1.01 Lakhs Nil Proposed renovation of existing parking area.

9 Water Connection Charges

0.86 Lakhs 14.33 Lakhs Proposed new scheme to improve coverage of service connections

7.3 LAND ASSETS The land varies in its value from location to location and time to time as per the weight age of the area arrived at based on various factors. It is invariably found that, the value of the municipal land varies substantially from that of the adjacent private land for obvious reasons. These differences need a practical moderation to estimate the true credit worthiness of the local body. The rate of increase of the Municipal land in its value, vis-à-vis that of the adjacent private land at the various locations will be useful in drawing up a reasonable assets management technique. The proposals for efficient utilization of land assets are given in the table below:

Table 7.2 Proposed Use – Land Asset Sl. No Location of Land Asset Present Use Proposed Use 1 Ayyasamay colony Vacant land Over Head Tank 2 Udaiyar colony Vacant land Over Head Tank 3 Tiruppur road Vacant land Over Head Tank 4 Agalarapalayam Vacant land Sanitary complex 5 Puthur Vacant land Sanitary complex 6 Uppupalayam Vacant land Sanitary complex 7 Soriankinathupalayam Vacant land Sanitary complex 8 Kumaravalasu Vacant land Sanitary complex 9 MGR nagar Vacant land Sanitary complex 10 Arivoli nagar Vacant land Sanitary complex 11 Karattupalayam Vacant land Sanitary complex 12 Thanner Panthal area Vacant land Sanitary complex 13 Market area Weekly market Slaughter house 14 Booster house Moonoor road - Seva center 15 Natesan Nagar - Seva center 16 Erode road (near bus stand) - Seva center 17 At municipal office Administrative use Seva center


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7.4 MANAGEMENT OPTIONS FOR LAND ASSETS The foregoing account of the movable and immovable assets of the Municipality includes basically lands, parts of which are occupied by construction of structures for various uses. The structural elements in the form of buildings including OHTs, flow elements relating to essential services such as water supply, drainage, UGD, street lights and the like are designed with a design life time. The lands however as a base have no such limiting factor in terms of time. Thus the super structures and the constructed elements below the ground are depreciating in their values as they age. But the land assets both constructed and un-constructed keep appreciating in the standard and market values. In fact, the rate of appreciation of the lands is of great significance from the point of worthiness of the concerned local body and, it is invariably much faster in its appreciating value compared to the rate of depreciation of structures imposed on them. Also, the rate of depreciation standardized for various items of the structures is much more than the actual while taking into consideration the life time of such structures till the point of their condemnation. Generally, the assets of the local body, particularly the lands are rarely maintained and their values in the management of the resources of the local body are little considered. There must be a scientific approach town wise to evolve a dynamic model of the changing values of the assets both in terms of appreciation and depreciation from time to time, particularly when sizable developments take place. It is important to keep in view that as per the objectives of the devolution of functions and powers to the urban local bodies under the 74th Constitutional Amendment Act, the value of the lands and properties are necessarily to be assessed depending on their location, land use and intensity of development over a time scale. In order to systemize the highly dynamic factor of values of the properties under local body, it is essential for an efficient management of the total assets owned by local body. The suggestions for the improvement of land asset management are listed below:

1. Implementation of Asset Management Plan 2. Establishment of GIS inventory mapping for Municipality owned lands. 3. Use of land assets for borrowing loans from capital market. 4. Identifying the most remunerative activity by public–private participation, BOT, BOOT

initiatives. 5. Removal of encroachments on Municipal land parcels. 6. Explore possibilities of acquiring additional land parcels for future requirements

7.5 PROPOSED NEW ASSETS 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

Table 7.3 New Assets for the year - 2010 to 2015 S.N Physical Infrastructure facilities Amount

( in lakhs)1 Water Supply 1199.122 Sewerage System 3300.003 Storm Water Drains 300.00


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4 Solid Waste management 800.005 Roads 2043.007 Bus Shelter 10.008 Street Lights 182.009 Slum Improvement 709.0010 Parks and Play Fields 20.0011 Market 150.0012 Public Convenience 35.0013 Burial Ground 100.0014 E-Governance 16.0015 Urban Greenery 10.0016 Other Projects 100.0017 Updation of Database on GIS Platform 400018 Property Mapping 4.30 Total 9018.42

Source: Analysis and calculation All these assets are elements that drive the business plan and ensure the timely availability of resources to sustain the assets in an acceptable condition for better service delivery. In addition to increasing the revenue potential, it is equally important to manage the assets in terms of their maintenance and rehabilitation. This would ensure reducing costs, improving reliability, and ensuring sustainability. Hence it is imperative for the municipality to have a highly simplified approach with a long-term schedule of delivery of actions and a set of short-term measures.


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8 FINANCIAL OPERATING PLAN

8.1 CAPITAL INVESTMENT PLAN The proposed projects for Vellakoil Municipality taking in to account its resources and the existing shortfall in services are given below. The projects have been phased out taking in to account the time-span required for implementation of the project and the availability of the funds (loans, grants and municipality’s own resources) for the same.

Table 8.1 Projects to be executed by the Municipality S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total

A Physical Infrastructure Facilities I Water Supply

a) Improvements to Water Supply 1199.12 - - - - 1199.12II Sewerage & Sanitation a) New Underground Sewerage Scheme - 1500.00 1800.00 - - 3300.00III Strom Water Drains

a) Construction of new drains and providing mesh covers - 60.00 80.00 100.00 60.00 300.00

IV Solid Waste Management a) Cost of land fill site and compost yard - 250.00 300.00 - - 550.00

b) Land fill site & compost yard development - - 200.00 - - 200.00

c) Vehicles & equipment for primary & secondary colln 25.00 25.00 - - - 50.00

V Roads a) Upgradation and Restoration of Roads 90.00 450.00 657.00 336.00 300.00 1833.00b) Improvements to Road Geometry - - 50.00 60.00 - 110.00

c) Widening of Main Roads and Link Roads - 70.00 30.00 - - 100.00

VI Bus Shelter a) Construction of New Bus Shelter 6.00 4.00 - - - 10.00 VII Street Lights

a) High mast lights at Old & New Bus Stand 7.00 7.00 - - - 14.00

b) Installation of Street Lights & Fittings 10.00 - 30.00 30.00 30.00 100.00 c) Retrofitting and energy saving devices - 23.00 - - - 23.00

d) Central Median lights at main roads for 3Km 40.00 5.00 - - - 45.00

B Social Infrastructure Facilities


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I Slum Improvements a) Improvement to Slums - 375.00 150.00 113.00 71.00 709.00 II Parks & Playgrounds

a) Improvement of parks, construction of compound wall - - - - 20.00 20.00

for play ground & play equipments III Market a) Construction of Daily Market - 75.00 - - - 75.00 b) Construction of Weekly Market - - 75.00 - - 75.00 IV Burial Ground / Crematorium a) Burial Ground with Gasifier - 100.00 - - - 100.00 V Public Convenience a) Improvement to Public Convenience 15.00 15.00 5.00 - - 35.00 C Other Projects I Remunerative Projects

a) Commercial Building (G+2) at Erode Road near - 100.00 - - - 100.00

Bus Stand II Urban Greenary a) Planting New Trees - - - - 10.00 10.00 III E-Governance a) E-Governance 8.00 8.00 - - - 16.00 b) Updation of Database on GIS - - - - 40.00 40.00 c) Property Mapping 4.30 - - - - 4.30 Total 1404.42 3067.00 3377.00 639.00 531.00 9018.42

The initial building blocks of the Corporate Plan are the ‘elements’ required to sustain the town’s growth; public utility, urban environment, economic and social development, land use and transportation, municipal resources, urban governance and capital facilities. The projects in the plan were developed through a consultative process carried out between the Local Body Officials, Council Staff and Elected Officials, Public Interest Groups, Project Stakeholders and the local citizens. The projects have been prioritized in the following order : a) Water Supply b) Sewerage and Sanitation c) Solid Waste Management d) Storm Water Drains e) Urban Service for Poor (Slum Upgradation) f) Roads, traffic and transportation g) Street Lighting


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8.2 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 8.2 Projects to be executed by Other Agencies

S.No Particulars Total Funding By I Regional Level

a) District Regional Development Plan 10.00 DTCP b) Improvement to Odais and Canals - PWD Department c)

Preparation of Integrated Solid Waste Management Action Plan

2.00

CMA / TNUIFSL

d)

Preparation of Integrated Traffic Management Plan

2.00

Erode Corporation

II Town Level a)

Provision and upgradation of Health Facilities

-

Education Department Dept of Tamilnadu

b) ESCO Studies 2.00 CMA / TNUIFSL,

c)

Awareness creation campaign for NGOs for - E Governance, UGSS, Water Supply, Solid Waste Management and Tax Collection

3.00

Erode Corporation /

RDMA, Tiruppur

Total 19.00

Table 8.3 Projects under Implementation by the Municipality

S.N

Particulars

Total Cost

Loan

Grant

Mun Cont.

Funding By

1

Providing Cement Concrete Road to Bus Stand

50.00 -

25.00

20.00

SFC Infrastructure Gap Filling Fund (2007-08)

2

Construction of additional first Floor building at Municipal Office

25.00 -

25.00

-


3

Construction of Modern Slaughter House

25.00 -

10.00

15.00


4 Improvement to Bus Stand

85.00 -

51.00

34.00


Total 185.00 0.00 111.00 74.00


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8.3 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

Table 8.4 Multi Year Investment Plan and Means of Finance Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total

A Physical Infrastructure Facilities 1 Water Supply Total Project Cost 1199.12 - - - - 1199.12

Add : Price Inflation @ 7% 83.94 0.00 0.00 0.00 0.00 83.94 Total 1283.06 0.00 0.00 0.00 0.00 1283.06

Means of Finance TNUIFSL Loan 320.76 0.00 0.00 0.00 0.00 320.76 Grant 910.97 0.00 0.00 0.00 0.00 910.97 Municipality Own Funds 51.32 0.00 0.00 0.00 0.00 51.32 Total 1283.06 0.00 0.00 0.00 0.00 1283.062 Sewerage Total Project Cost - 1500.00 1800.00 - - 3300.00


Means of Finance TNUIFSL Loan 0.00 635.42 815.88 0.00 0.00 1451.30 Grant 0.00 601.07 771.78 0.00 0.00 1372.85 Municipality Own Funds 0.00 480.86 617.42 0.00 0.00 1098.28 Total 0.00 1717.35 2205.08 0.00 0.00 3922.433 Storm Water Drains Total Project Cost - 60.00 80.00 100.00 60.00 300.00


Means of Finance Grant 0.00 61.82 88.20 117.97 75.74 343.74 Municipality Own Funds 0.00 6.87 9.80 13.11 8.42 38.19 Total 0.00 68.69 98.00 131.08 84.15 381.93

4A SWM - Cost of land fill site Total Project Cost - 250.00 300.00 - - 550.00


Means of Finance Grant 0.00 286.23 367.51 0.00 0.00 653.74 Total 0.00 286.23 367.51 0.00 0.00 653.74


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4B SWM - Land fill site & compost yard devt

Total Project Cost - - 200.00 - - 200.00 Add : Price Inflation @ 7% 0.00 0.00 45.01 0.00 0.00 45.01 Total 0.00 0.00 245.01 0.00 0.00 245.01

Means of Finance Municipality Own Funds 0.00 0.00 245.01 0.00 0.00 245.01 Total 0.00 0.00 245.01 0.00 0.00 245.01

4C SWM - Vehicles & Equipments Total Project Cost 25.00 25.00 - - - 50.00



5A Roads - Upgradation & Restoration Total Project Cost 90.00 450.00 657.00 336.00 300.00 1833.00



5B Roads - Improvements to Road Geometry

Total Project Cost - - 50.00 60.00 - 110.00 Add : Price Inflation @ 7% 0.00 0.00 11.25 18.65 0.00 29.90 Total 0.00 0.00 61.25 78.65 0.00 139.90


5C Roads - Widening Total Project Cost - 70.00 30.00 - - 100.00




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6 Bus Shelter Total Project Cost 6.00 4.00 - - - 10.00



7A Street Lights - High Mast Lights Total Project Cost 7.00 7.00 - - - 14.00



7B Street Lights - Street Lights & Fittings Total Project Cost 10.00 - 30.00 30.00 30.00 100.00


Means of Finance Grant 5.35 0.00 18.38 19.66 21.04 64.43 Municiplaity Own Funds 5.35 0.00 18.38 19.66 21.04 64.43 Total 10.70 0.00 36.75 39.32 42.08 128.85

7C Street Lights - Retrofitting of Lights Total Project Cost - 23.00 - - - 23.00


Means of Finance ESCO 0.00 26.33 0.00 0.00 0.00 26.33 Total 0.00 26.33 0.00 0.00 0.00 26.33

7D Street Lights - Central Median Lights Total Project Cost 40.00 5.00 - - - 45.00


Means of Finance Grant 38.52 5.15 0.00 0.00 0.00 43.67 Municiplaity Own Funds 4.28 0.57 0.00 0.00 0.00 4.85 Total 42.80 5.72 0.00 0.00 0.00 48.52 B Social Infrastructure Facilities 1 Slum Improvements Total Project Cost - 375.00 150.00 113.00 71.00 709.00

Add : Price Inflation @ 7% 0.00 54.34 33.76 35.12 28.58 151.80


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Total 0.00 429.34 183.76 148.12 99.58 860.80 Means of Finance Grant 0.00 429.34 183.76 148.12 99.58 860.80 Total 0.00 429.34 183.76 148.12 99.58 860.80 2 Parks & Playgrounds Total Project Cost - - - - 20.00 20.00



3A Market - Daily Market Total Project Cost - 75.00 - - - 75.00



3B Market - Weekly Market Total Project Cost - - 75.00 - - 75.00


Means of Finance Municipality Own Funds 0.00 0.00 91.88 0.00 0.00 91.88 Total 0.00 0.00 91.88 0.00 0.00 91.88 4 Burial Ground with Gasifier Total Project Cost - 100.00 - - - 100.00


Means of Finance Grant 0.00 57.25 0.00 0.00 0.00 57.25 Municipality Own Funds 0.00 57.25 0.00 0.00 0.00 57.25 Total 0.00 114.49 0.00 0.00 0.00 114.49 5 Public Convenience Total Project Cost 15.00 15.00 5.00 - - 35.00


Means of Finance Grant 8.03 8.59 3.06 0.00 0.00 19.67 Municipality Own Funds 8.03 8.59 3.06 0.00 0.00 19.67


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Total 16.05 17.17 6.13 0.00 0.00 39.35 C Other Projects 1 Commercial Building Total Project Cost - 100.00 - - - 100.00


Means of Finance Loan 0.00 103.04 0.00 0.00 0.00 103.04 Municipality Own Funds 0.00 11.45 0.00 0.00 0.00 11.45 Total 0.00 114.49 0.00 0.00 0.00 114.49 2 Urban Greenary Total Project Cost - - - - 10.00 10.00



3A E-Governance Total Project Cost 8.00 8.00 - - - 16.00



3B GIS Mapping Total Project Cost - - - - 40.00 40.00



3C Property Mapping Total Project Cost 4.30 - - - - 4.30



The consolidated ‘Means of Finance’ for all the projects put-together is summarized below :


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Table8.5 Consolidated Means of Finance Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total

I Project Cost Total Project Cost 1404.42 3067.00 3377.00 639.00 531.00 9018.42


II Means of Finance Municipality Own Funds

(including Deposits from Public)96.58 725.29 1075.83 84.68 85.56 2067.94

Grant 1085.38 2021.32 2245.26 752.92 659.20 6764.08 TNUIFSL Loan 320.76 738.46 815.88 0.00 0.00 1875.10 BOOT / Private Sector 0.00 26.33 0.00 0.00 0.00 26.33 Total 1502.73 3511.41 4136.97 837.60 744.75 10733.46

8.4 FINANCIAL SUSTAINABILITY The sustainability analysis assumes that the Municipality will carry out reforms indicated as assumptions for financial projections. A Financial and Operating Plan (FOP) prepared which evaluates the Municipality Fund status for the Full Project scenario. The FOP is a cash flow stream of the ULB based on the regular Municipality revenues, expenditures and applicability of surplus funds to support project sustainability. The FOP horizon is determined to assess the impact of full debt servicing liability resulting from the borrowings to meet the identified interventions. The proposed capital investments are phased over 5 years investment from FY 2009-10 to FY 2013-14. The full project investment scenario is based on all the proposed investments identified for Vellakoil Municipality and the requirement for upgrading the town’s infrastructure is estimated and phased based on the construction activity. Implications of this investment in terms of external borrowings required, resultant debt service commitment and additional operation and maintenance expenditure are worked out to ascertain sub-project cash flows. Revenue surpluses of the existing operations are applied to the sub-project cash flows emerging from full project investments – the Municipality fund net surpluses indicates the ULB’s ability to sustain full investments. FY 2009-10 is taken as the base year and FY 2028-29 is assumed as the reference year (20 years) to determine the net surpluses and whether the Municipality maintains a debt / revenue surplus ratio as an indication of the ULB’s ability to sustain investments. 8.5 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 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.


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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 :

8.5.1 INCOME a) Property Tax The population of Vellakoil Municipality is estimated to grow at around 2.5% p.a. Based on the same Property Tax Revenue are assumed to increase @ 2.5% 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 25% 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 20% from next year viz. 2009-10, after completion of GIS mapping. The Property Tax income is divided between Revenue, Water Supply and Education Fund in the following ratio:

Table: 8.6 Ratio of Property tax

Description Per AnnumGeneral 4.000%Scavanging 2.000% Revenue & Capital Fund Lighting 1.000%Water Tax 2.000% Water Supply & Drainage Fund Drainage 1.000%Education - Education Fund Total 10.000%

b) Profession tax Income from Profession Tax is assumed to increase @ 5% per annum. The Profession Tax was last revised on 1.10.2003 and the next revision is due in 2008-09. It is assumed that every revision would contribute to 15% increase Besides, the profession tax base would be increased by carrying out survey in 2010-11. It is assumed that the survey would increase the profession tax base by 20% in 2010-11. c) Assigned revenue Assigned Revenue comprises Entertainment Tax and Surcharge on Stamp Duty. It is assumed the same shall increase as under : Duty on Transfer of Property : 5% Entertainment Tax : 1%


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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 8.7 Water supply Charges - Existing

Type of service connections Connection Tariff Residential Rs .3000 Rs.65.00 Per month Commercial Rs. 6000 Rs.115.00 per month Industrial Rs .6000 Rs.105.00 per month

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.75.00 p.m Commercial – Rs.150.00 p.m Industrial - Rs. 150.00 p.m. It is also assumed that the water connection charges shall be revised as under : Residential - Rs.5000 Commercial - Rs.10000 Industrial - Rs.10000 It is assumed that water charges shall be increased as below every 5 years : Residential - Rs.15.00 p.m Commercial & industrial – Rs.25.00 p.m


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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 8.8 House Service Connections - Percentage Year 2004-05 Property tax assessments HSCs % Residential 11236 3910 35% Commercial 1047 45 2% Industrial & Govt. 1649 57 3%

The improvements in water supply shall result in increase in operation & maintenance by Rs.35.00 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. 3300 lakhs. The implementation period is 2 years starting from 2010-11 to 2011-12. On completion of the scheme, it is assumed that around 70% of the property tax assessments would have sewerage connection. It is assumed that the scheme shall be completed as below :

2010-11 60%2011-12 40%

The Deposits and Charges shall be collected accordingly. It is assumed that the sewerage charges will be collected as below :

Table 8.9 Sewage Charges

Domestic %

Connections Connection Tariff per month

< 500 Sq.ft. 34% Rs.5000 Rs.70 500 -1200 Sq.ft. 31% Rs.7000 Rs.100 1200-2400 Sq.ft. 23% Rs.9000 Rs.150 Above 2400 Sq.ft. 12% Rs.15000 Rs.200 Special - Rs.18000 Rs.250 Non Domestic Connection Tariff < 500 Sq.ft. 35% Rs.10000 Rs.140 500 -1200 Sq.ft. 28% Rs.21000 Rs.300 1200-2400 Sq.ft. 20% Rs.27000 Rs.450 Above 2400 Sq.ft. 17% Rs.75000 Rs.1000 Special - Rs.90000 Rs.1250


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It is assumed that the Domestic & Non Domestic drainage charges shall be increased every 5 years as below :

Table 8.10 Increase in Tariff - Sewage Charges Domestic Non Domestic < 500 Sq.ft. Rs.15 Rs.20 500 - 1200 Sq.ft. Rs.20 Rs.30 1200 - 1400 Sq.ft. Rs.25 Rs.45 Above 2400 Sq.ft. Rs.50 Rs.75

It is assumed that the Domestic & Non Domestic connection charges shall be increased every 5 years as below :

Table 8.11 Increase in Deposit - Sewage Charges Domestic Non Domestic Up to 500 Sq.ft. Rs.1000 Rs.2000 500 - 1200 Sq.ft. Rs.1500 Rs.4000 1200 - 2400 Sq.ft. Rs.2000 Rs.5000 Above 2400 Sq.ft. Rs.3000 Rs.10000

The O&M charges shall be Rs. 99.00 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 14 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 1.56 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.10.00 per month Commercial - Rs.20.00 per month Industrial/Government - Rs.30.00 per month The same shall increase as below every 5 years ; Domestic - Rs.5.00/- Commercial/ Industrial/Government - Rs.10.00/-


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The cost of the scheme is Rs. 800 lakhs and the O&M cost shall be equal to around Rs. 12.50 lacs per annum. The same shall increase @ 5% per annum. l) Commercial Buildings Commercial Buildings shall be constructed at 1 place and the rent collection and deposit mobilization from the same shall be as below : Rent Deposit Erode Road Rs. 100000 p.m. Rs. 2500000 The rent shall increase @ of 15% every 3 years. Rental holiday of 2 years shall be provided against rental deposit collected. The operation & maintenance of the commercial building is estimated at Rs. 3 lacs per annum and the same shall increase @ 5% per annum. m) Bus Stand The income from Bus Stand shall increase by 15% on completion of ongoing improvements. n) Markets It is estimated that Daily Market shall fetch rental income of Rs. 15 lacs per annum. The Weekly Market / shandy shall fetch rental income of Rs. 10 lacs per annum. The rental income shall increase @ 15% every 3 years. The additional operation & maintenance of markets is estimated at Rs. 3 lacs per annum and the same shall increase @ 5% per annum. o) Slaughter House & Gasifier Crematorium The Slaughter House shall be let out on lease @ Rs. 1.5 lacs per annum. The Gasifier Crematorium shall result in income of Rs. 1.5 lacs per annum. The O&M charges of Slaughter House shall be Rs. 0.75 lacs per annum. The O&M charges of Burial Ground shall be Rs. 1 lac per annum. The income shall increase @ 15% every 3 years and the expenditure shall increase @ 5% per annum. p) Advertisements Bill Boards would be put at 20 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. q) Parking Rent The income from parking shall be Rs. 1 lac per annum. The same shall increase @ 15% every 3 years.


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8.5.2 EXPENDITURE a) Increase in Expenditure The expenses are assumed to increase as under :

Table 8.12 Assumptions - Increase in Expenditure Personnel Cost – Salaries 7.50% Personnel Cost – Others 5.00% Terminal & Retirement Benefits 5.00% Operative Expenses 7.50% Repairs & Maintenance 5.00% Program Expenses 2.50% Administrative Expenses 7.50%

b) Operation and Maintenance The additional operation & maintenance expenses to be incurred are as below:

Table 8.13 Assumptions – O&M

Ongoing Projects Rs. in lakhsVarious Projects 5.55 New Projects (other than Sewerage & Water supply) Rs. in lakhs Strom Water Drains 4.50 Solid Waste Management 12.50Roads 22.00 Street Lights 5.00 Slum Improvement 15.00 Parks & Playfields 0.40 Market 3.00 Public Convenience 0.50 Slaughter House 1.00 Burial Ground 0.50 E-Governance 0.10 Urban Greenary 0.10 Commercial Buildings 3.00 Updation of Database on GIS 1.00 Property Mapping 0.15 Total 74.30

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 not been factored in the financial projections for the first 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.


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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 :

Table 8.14 Assumptions – Provision of doubtful debts

Provision for Doubtful Debts is assumed @ 2% on total revenue for Revenue Fund 8.5.3 Collections

a) Property tax

Table 8.15 Assumptions – Property tax collection The current property tax collection is 97% The same shall improve to 97% The arrears property tax collection is 21% The same shall improve to 50%

b) Profession tax

Table 8.16 Assumptions – Profession tax The current profession tax collection is 89% The same shall improve to 100% The arrears profession tax collection is 100% The same shall improve to 100%

c) Other Non Tax Income

Table 8.17 Assumptions – Other Non Tax Income The current rental / lease collection is 99% The same shall be 100% The arrears collection % of rent / lease 30% The same shall improve to 60%

d) Water Charges

Table 8.18 Assumptions – Water Charges The current water charges collection is 99% The same shall improve to 85% The arrears water charges collection is 56% The same shall improve to 60%


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e) Drainage Charges Table 8.19 Assumptions – Drainage Charges

The current drainage collection is Nil The same shall be 80% The arrears drainage collection is Nil The same shall be 60%

f) Other income The collection % of all other income is taken at 100% h) Others The collection % of all other items of income is taken at 100% 8.5.4 Annuity Factor The Annuity Factor for the new loans works out as under :

Table 8.20 Terms of Loan Funding for Proposed Investments

Tenor 20 years 10 years Interest Rate 9.50% 9.50 Repayment Period 15 years 8 years Moratorium 5 years 2 years Repayment Factor 0.13 0.18 Conversion Factor Calculation a. Rate of Interest 9.5% 9.5% b. Repayment Period 15 8 c. Loan Amount 17.00 1.00 Conversion Factor 2.17 0.18

Total Conversion Factor 2.36

Note : Sewerage and Water Supply Loan works out to 17% of total project cost identified. Other Loans works out to 1% of total project cost identified. 8.6 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. a) Income and Expenditure projections Table 8.21 captures the Income and Expenditure projections for the next 20 years with potential improvements and borrowings :


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Table 8.21Consolidated Income & Expenditure for next 20 years (up to FY 2028-29) S.No Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

I Income

a) Property Tax 45.43 54.11 62.79 64.36 65.97 67.62 76.07 77.97 79.92 81.92 83.97 b) Other Taxes 10.88 6.26 6.57 7.88 8.28 8.69 9.99 10.49 11.02 11.57 12.15 c) Assigned Revenue 25.74 26.99 28.31 29.69 31.14 32.66 34.26 35.94 37.70 39.55 41.49 d) Devolution Fund 108.14 90.00 96.75 104.01 111.81 120.19 129.21 138.90 149.31 160.51 172.55 e) Service Charges & Fees 46.33 42.68 44.44 143.61 166.83 430.83 441.92 453.30 497.30 510.10 568.45 f) Grants & Contribution 1.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 g) Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 h) Other Income 54.36 32.52 37.84 39.55 47.94 73.23 75.16 93.45 97.73 99.95 125.42 Total Income 291.93 252.56 276.70 389.10 431.96 733.23 766.61 810.06 872.98 903.59 1004.02 II Expenditure a) Personnel Salaries Cost 48.53 52.17 56.08 60.29 64.81 65.62 70.54 75.83 81.51 87.63 94.20 b) Personnel Cost - Others 1.39 1.49 1.61 1.73 1.86 2.00 2.15 2.31 2.48 2.66 2.86 b) Terminal & Ret Benefits 3.64 3.82 4.01 4.21 4.42 4.65 4.88 5.12 5.38 5.65 5.93 c) Operating Expenses 58.48 68.42 103.61 184.70 195.75 306.49 323.91 342.37 361.91 382.61 404.55 d) Repairs & Maintenance 70.74 74.28 77.99 81.89 85.98 90.28 94.80 99.54 104.52 109.74 115.23 e) Program Expenses 0.31 2.50 2.56 2.63 2.69 2.76 2.83 2.90 2.97 3.05 3.12 f) Administration Expenses 10.41 11.24 12.09 12.99 13.97 15.02 16.14 17.35 18.66 20.05 21.56 g) Finance Expenses 13.40 32.90 57.70 126.88 202.88 205.93 203.02 199.29 192.93 181.32 168.53 h) Depreciation 122.76 118.52 142.15 347.12 685.99 854.96 842.92 713.66 526.00 406.18 328.15 Total Expenditure 329.66 365.35 457.80 822.44 1258.36 1547.70 1561.18 1458.36 1296.35 1198.90 1144.14 Surplus / (Deficit) (37.73) (112.79) (181.11) (433.34) (826.40) (814.47) (794.57) (648.30) (423.36) (295.31) (140.12) Profit before Depreciation 85.03 5.73 -38.95 -86.22 -140.41 40.49 48.35 65.35 102.63 110.88 188.04


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S.No Particulars 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 I Income

a) Property Tax 94.66 97.02 99.45 101.94 104.49 118.00 120.95 123.97 127.07 130.25 147.35 b) Other Taxes 13.97 14.67 15.40 16.17 16.98 19.53 20.50 21.53 22.61 23.74 27.30 c) Assigned Revenue 43.52 45.66 47.91 50.27 52.74 55.34 58.07 60.93 63.94 67.09 70.41 d) Devolution Fund 185.49 199.40 214.36 230.44 247.72 266.30 286.27 307.74 330.82 355.63 382.31 e) Service Charges & Fees 583.06 598.07 650.02 666.74 735.05 753.95 773.34 834.60 856.07 935.97 960.03 f) Grants & Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 g) Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 h) Other Income 130.78 133.81 142.63 148.73 164.91 175.36 182.66 186.96 198.92 221.76 227.04 Total Income 1051.49 1088.64 1169.77 1214.28 1321.89 1388.48 1441.79 1535.74 1599.43 1734.44 1814.43 II Expenditure a) Personnel Salaries Cost 101.26 108.86 117.02 125.80 135.24 145.38 156.28 168.00 180.60 194.15 208.71 b) Personnel Cost - Others 3.08 3.31 3.56 3.83 4.11 4.42 4.75 5.11 5.49 5.90 6.35 b) Terminal & Ret Benefits 6.23 6.54 6.86 7.21 7.57 7.95 8.34 8.76 9.20 9.66 10.14 c) Operating Expenses 427.79 452.42 478.52 506.19 535.52 566.62 586.56 620.56 656.62 694.85 735.40 d) Repairs & Maintenance 120.99 127.04 133.39 140.06 147.06 154.42 162.14 170.24 178.76 187.69 197.08 e) Program Expenses 3.20 3.28 3.36 3.45 3.53 3.62 3.71 3.80 3.90 4.00 4.10 f) Administration Expenses 23.18 24.91 26.78 28.79 30.95 33.27 35.77 38.45 41.33 44.43 47.76 g) Finance Expenses 155.88 144.22 134.05 123.76 114.74 104.89 94.79 85.50 75.61 67.15 57.59 h) Depreciation 276.04 240.17 214.59 195.62 180.99 169.26 159.52 151.19 143.89 137.35 131.41 Total Expenditure 1117.65 1110.74 1118.13 1134.70 1159.71 1189.83 1211.87 1251.63 1295.39 1345.18 1398.53 Surplus / (Deficit) (66.16) (22.11) 51.64 79.58 162.19 198.65 229.92 284.11 304.03 389.26 415.90 Profit before Depreciation 209.89 218.06 266.22 275.20 343.17 367.91 389.45 435.30 447.92 526.62 547.31

It may be observed from the above table that the Municipality has incurred surplus prior to depreciation in 17 out of the next 20 years and the cumulative cash flows are positive for all the years.


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b) Balance Sheet - Table 8.22 Consolidated Balance Sheet for next 20 years (up to FY 2028 – 29)

S.No Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 I Liabilities

a) Liabilities Loans 236.29 172.09 462.33 1080.06 1878.24 1860.54 1842.85 1803.77 1722.32 1586.49 1450.66 Contn from Municipal Fund 90.68 164.68 261.26 986.56 2062.39 2147.07 2232.62 2232.62 2232.62 2232.62 2232.62 Contribution from Government 167.32 201.00 201.00 201.00 201.00 201.00 201.00 201.00 201.00 201.00 201.00 Grant 173.07 284.07 1369.45 3390.77 5636.03 6388.95 7048.15 7048.15 7048.15 7048.15 7048.15 Accumulated Depreciation 431.05 539.54 681.69 1028.81 1714.80 2569.76 3412.67 4126.33 4652.33 5058.51 5386.67

b) Current Liabilities Reserve for Doubtful Colln 1.86 6.91 12.44 20.23 28.87 43.53 58.86 75.06 92.52 110.60 130.68 Tender Deposits - Contractors 14.65 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Security & Deposit Others 17.54 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Other Deposit 1.77 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Water Connection Deposit - 3.09 132.04 354.46 480.25 501.73 523.76 546.34 574.10 602.57 631.74 Sewerage Deposit - 0.00 0.00 230.40 47.36 396.26 433.62 471.92 511.17 551.45 600.53 Library Cess Payable 9.54 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Interest Payable Account 58.52 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 IT & ST Deduction - Conts 0.64 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Recoveries - Staff 1.33 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Accounts Payable - Suppliers 7.07 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Accounts Payable - Expenses 0.15 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Other Recoveries & Payables 0.70 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

c) Accumulated Surplus -117.17 -229.97 -411.08 -844.42 -1670.82 -2485.29 -3279.86 -3928.16 -4351.52 -4646.83 -4786.95 Total 1095.01 1279.40 2847.15 6585.88 10516.11 11761.55 12611.68 12715.03 12820.70 12882.56 13033.10


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S.No Particulars 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29

I Liabilities

a) Liabilities Loans 1332.52 1214.38 1096.25 978.11 859.97 741.83 623.70 505.56 387.42 269.28 151.15 Contn from Municipal Fund 2232.62 2232.62 2232.62 2232.62 2232.62 2232.62 2232.62 2232.62 2232.62 2232.62 2232.62 Contribution from Government 201.00 201.00 201.00 201.00 201.00 201.00 201.00 201.00 201.00 201.00 201.00 Grant 7048.15 7048.15 7048.15 7048.15 7048.15 7048.15 7048.15 7048.15 7048.15 7048.15 7048.15 Accumulated Depreciation 5662.71 5902.88 6117.47 6313.09 6494.08 6663.34 6822.86 6974.06 7117.94 7255.30 7386.71

b) Current Liabilities Reserve for Doubtful Colln 151.71 173.48 196.87 221.16 247.60 275.37 304.20 334.92 366.91 401.59 437.88 Tender Deposits - Contractors 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Security & Deposit Others 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Other Deposit 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Water Connection Deposit 661.64 692.29 728.95 766.52 805.03 844.50 884.95 932.35 980.93 1030.72 1081.76 Sewerage Deposit 650.83 702.39 755.24 809.46 873.85 939.85 1007.50 1076.84 1147.98 1230.86 1315.81 Library Cess Payable 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Interest Payable Account 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 IT & ST Deduction - Contrs 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Recoveries - Staff 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Accounts Payable - Suppliers 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Accounts Payable - Expenses 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Other Recoveries & Payables 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

c) Accumulated Surplus -4853.11 -4875.21 -4823.58 -4743.99 -4581.81 -4383.16 -4153.24 -3869.13 -3565.10 -3175.83 -2759.93 Total 13226.08 13429.99 13690.98 13964.12 14318.49 14701.50 15109.75 15574.37 16055.85 16631.69 17233.14


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S.No Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 II Assets

a) Fixed Assets 1042.31 1227.29 2703.27 6212.81 10378.40 11216.00 11960.75 11960.75 11960.75 11960.75 11960.75 b) Current Assets Stock 0.93 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Property Tax Rec - Current 0.97 1.62 1.88 1.93 1.98 2.03 2.28 2.34 2.40 2.46 2.52 Property Tax Rec - Arrears 1.59 2.05 3.16 4.10 4.59 4.73 4.40 4.48 4.58 4.69 4.80 Profession Tax Rec - Current 5.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Profession Tax Rec - Arrears - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Lease Amount Rec -Arrears - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Lease Amount Rec-Current 0.06 0.04 0.03 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Water Charges Rec - Current - 4.89 5.02 19.81 23.21 23.79 24.38 24.99 30.46 31.22 32.00 Water Charges Rec - Arrears - 0.00 6.85 9.77 31.64 45.15 51.36 54.68 56.86 65.39 69.87 Sewerage Charges - Current - 0.00 0.00 0.00 0.00 51.91 53.20 54.53 55.90 57.29 67.77 Sewerage Charges - Arrears - 0.00 0.00 0.00 0.00 0.00 51.91 73.97 84.12 89.55 93.11 Specific Grant Receivable 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 Deposits Recoverable 2.24 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Staff Advance Recoverable 0.43 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Other Advance - Recoverable 11.84 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Other Assets 0.44 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

c) Cash & Bank Balances 24.35 11.54 94.97 305.49 44.32 385.98 431.43 507.32 593.67 639.24 770.30 Total 1095.01 1279.40 2847.15 6585.88 10516.11 11761.55 12611.68 12715.03 12820.70 12882.56 13033.10


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S.No Particulars 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 II Assets

a) Fixed Assets 11960.75 11960.75 11960.75 11960.75 11960.75 11960.75 11960.75 11960.75 11960.75 11960.75 11960.75 b) Current Assets Stock 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Property Tax Rec - Current 2.84 2.91 2.98 3.06 3.13 3.54 3.63 3.72 3.81 3.91 4.42 Property Tax Rec - Arrears 4.92 5.30 5.56 5.76 5.94 6.10 6.59 6.92 7.18 7.40 7.61 Profession Tax Rec - Current 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Profession Tax Rec - Arrears 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Lease Amount Rec -Arrears 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Lease Amount Rec-Current 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Water Charges Rec - Current 32.80 33.62 39.95 40.95 41.97 43.02 44.10 51.40 52.69 54.00 55.35 Water Charges Rec - Arrears 72.75 75.03 77.09 86.76 92.03 95.57 98.46 101.12 112.41 118.73 123.10 Sewerage Charges - Current 69.46 71.20 72.98 74.80 86.91 89.08 91.30 93.59 95.93 109.90 112.65 Sewerage Charges - Arrears 105.01 111.47 115.79 119.30 122.52 135.91 143.44 148.68 153.06 157.15 172.76 Specific Grant Receivable 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 Deposits Recoverable 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Staff Advance Recoverable 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Other Advance - Recoverable 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Other Assets 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

c) Cash & Bank Balances 945.56 1137.74 1383.91 1640.76 1973.26 2335.55 2729.51 3176.22 3638.05 4187.88 4764.53 Total 13226.08 13429.99 13690.98 13964.12 14318.49 14701.50 15109.75 15574.37 16055.85 16631.69 17233.14

The full projects investment scenario indicates that Vellakoil Municipality would end up with a cumulative cash surplus of Rs. 4765 lacs by the end of FY 2028-29 (after 20 years)


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8.7 IMPACT OF POTENTIAL IMPROVEMENTS Vellakoil’s ability to improve on its financial performance hinges primarily on its ability to sustain and improve on the revenue growth noticeable in recent years. Specific interventions with respect to revenue realization and cost management are detailed in chapter 6 of the report. On ‘Full Project Investment Scenario’ basis, Vellakoil’s own revenues (comprising taxes, user charges and other income) could grow from Rs. 158 lacs in FY 2006-07 to Rs. 1302 lacs by FY 2028-29, implying an absolute growth of 36%. Vellakoil 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. 910 lacs (exclusive of Deposits) 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.

Vellakoil also needs to explore scope for private sector participation for development of remunerative projects and city beautification projects that have been identified by Vellakoil. 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 60% 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 Vellakoil’s high power costs. 8.8 ESTIMATION OF INVESTMENT CAPACITY 8.8.1 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. 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 :


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Table8.23 Summary of Borrowing and Investment Capacity – Scenario I Borrowing Capacity Rs. 373.26 lacs Investment Capacity (BC x 4 times) Rs. 1493.02 lacs 8.8.2 Scenario II - Estimation of Investment Capacity with Projects & Growth Rate of 7.5% for Devolution Funds In Scenario II, the financial projections have been worked out for the next 30 years assuming that the income from Devolution Funds would grow @ 7.5% p.a. But the financial projections for the next 20 years have been taken to arrive at the Borrowing & Investment capacity. The borrowing capacity of Vellakoil Municipality has been arrived 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 18% Loans, 63% Grants and 19% 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.

Table8.24 Summary of Borrowing and Investment Capacity – Scenario II Borrowing Capacity Rs. 744.13 lacs Investment Capacity (BC/0.14) Rs. 4134.08 lacs Investment Requirement Rs. 9018.12 lacs Sustainable Investment Capacity % - IC / IR 46% Thus the sustainable investment capacity works out to 46% in case the growth in Devolution Funds is taken @ 7.5% p.a. 8.8.3 Scenario III - Estimation of Investment Capacity with Projects & Growth Rate of 10% for Devolution Funds In Scenario III, the financial projections have been worked out for the next 30 years assuming that the income from Devolution Funds would grow @ 10% p.a. But the financial projections for the next 20 years have been taken to arrive at the Borrowing & Investment capacity. The borrowing capacity of Vellakoil Municipality has been arrived 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 18% Loans, 63% Grants and 19% 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.


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Table8.25 Summary of Borrowing and Investment Capacity – Scenario III Borrowing Capacity Rs. 937.48 lacs Investment Capacity (BC/0.14) Rs. 5208.24 lacs Investment Requirement Rs. 9018.12 lacs Sustainable Investment Capacity % - IC / IR 57.75%

Thus the sustainable investment capacity works out to 58% of the total investment requirement at Rs. 5210 lacs in case the growth in Devolution Funds is taken @ 10% p.a. 8.9 KEY INDICATORS The key Indictors of the Municipality based on the financial projections of Scenario II (Growth Rate of Devolution Funds @ 7.5% p.a.) works out as below :

Table 8.26 Key Indicators Minimum Maximum Average Existing (2001-02 to 2006-07) Operating Ratio 0.71 1.01 0.85 Debt Service Ratio 0% 6% 2% Category 1 Short Term (2009-10 to 2013-14) Operating Ratio 0.92 1.33 1.07Debt Service Ratio 28% 49% 34%Category 3 Long Term (2009-10 to 2028-29) Operating Ratio 0.70 1.33 0.84 Debt Service Ratio 6% 49% 22% Category 1

Note : 1 – Financially Sound; 2 – Financially Fragile; 3 – Financially Insolvent The financials and the ratios of the Municipality are not good in the short term due to high operating ratio and debt service ratio. But in the long run, the same have improved and is good due to higher number of commercial and industrial assessments. 8.10 INFERENCE

The investment capacity of Vellakoil Municipality on ‘As is Where Basis’ works out to Rs. 1493 lacs.

The investment capacity of Vellakoil Municipality works to 46% in case of Scenario II (Growth Rate of Devolution Funds assumed @ 7.5% p.a.) and 58% in case of Scenario III (Growth Rate of Devolution Funds assumed @ 10% p.a.).

In value terms the investment capacity works out to Rs. 4135 lacs under Scenario II and Rs. 5210 lacs under Scenario III.

It may be observed that the investment capacity has improved with the introduction of new projects as compared to ‘As is Where Basis’ scenario. The same is on account of the fact that


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the Municipality has large number of commercial and industrial assessments, which are presently untapped on account of water and sewerage connections.

Thus it can be inferred that the investment capacity of the Municipality is around 46% of the total investment requirement.

Based on the above, it can be inferred that the Municipality can take up only the small projects, where the funding is mostly by way of Grants as given below :

Table 8.27 Priority projects suggested under CDP S.No. Particulars Total Priority Funding By

A Physical Infrastructure Facilities L : G : O I Water Supply

a) Improvements to Water Supply 1199.20 A 0:90:10 II Sewerage & Sanitation a) New Underground Sewerage Scheme 3300.00 A 37:35;28 Total 4499.20

The above two projects can be taken up by the Municipality as there are large number of

commercial and industrial assessments and on stand alone basis these projects are viable at the funding pattern given above.

Besides the above, the following other small projects can be taken up, where the funding pattern is mainly by way of grants and deposit mobilization :

Table 8.27a Priority projects suggested under CDP S.No. Particulars Total Priority Funding By

A Physical Infrastructure Facilities L : G : O I Strom Water Drains

a) Construction of new drains and providing mesh covers 300.00 A 0:90:10 II Bus Shelter a) Construction of New Bus Shelter 10.00 A 100% Grant III Street Lights a) High mast lights at Old & New Bus Stand 14.00 A 100% Grant b) Retrofitting and energy saving devices 23.00 A ESCO c) Central Median lights at main roads for 3Km 45.00 A 0:90:10 B Social Infrastructure Facilities I Slum Improvements

a) Improvement to Slums 709.00 B 100% Grant II Market a) Construction of Daily Market 75.00 A 100% ULB b) Construction of Weekly Market 75.00 A 100% ULB C Other Projects I Remunerative Projects

a) Commercial Building (G+2) at Erode Road near 50.00 A 100% ULB


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Bus Stand II E-Governance a) E-Governance 16.00 A 100% Grant b) Updation of Database on GIS 40.00 C 0:90:10 c) Property Mapping 4.30 A 100% ULB Total 1361.30

As regards other projects with large financial cost, the Municipality would require more support

from the Government towards both capital cost and operation & maintenance expenses. Thus it would be possible to take up those projects if more support is provided by the Government and by improving own sources of income.


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9 PUBLIC CONSULTATION PROCESS

The City Development Plan is a tool which adapts a corporate approach to plan and implement projects in a participatory mechanism involving users, elected councilors, line agencies, private organizations, NGOs and CBOs. The broad purpose of stake holders’ participation is to involve the stakeholders in the development plan for the city. In this process, residents of various sections of the communities in the town were enquired into at random during surveys and visits to the sites and also otherwise suggested by the elders. This plan focuses largely on the totally implementable urban infrastructure and other projects to adequately meet the present and future demands of the growing town. The attendant results and concomitant effects in terms of town’s economic development, societies’ standard of living, improvement in the living environment, equality in the access to the necessary services, facilities and amenities for all the sections of people largely sub-serving alleviation of the urban poverty element, on the completion of the project proposals. At the initial stage, the Councilors, the Chairman and the Municipal Officials were individually discussed with. The consultants gathered information on ward and town level requirements relating to Municipal services and other promotive projects. As a second step, a public consultation meeting was arranged and the details are as below: Minutes of the stake holder’s meeting The stake holder’s meeting was held in Vellakoil Municipality at Venkatesan Marriage Hall, Vellakoil on 22/05/08 at 10.30 am with an introduction given by the Chairman followed by SMEC Consultant Mrs. S. Rajalakshmi. An discussion on the town requirement was thrown open with the ward councilors, Senior Citizens of the town, Teachers, working staff, Government official, Chairman, and public. The stakeholders have been invariably very co-operative and practical about the needs of the town at ward and town levels. During the meeting, participants were asked to describe the desired future vision for their town. The participants were given a chance to comment on the strategic options put forth in broad terms and on the local strength and weaknesses affecting city’s future development. These comments were considered while developing strategic options for the plan. At the end of the workshop, consulting team organized for written feed backs from the stakeholders, to be incorporated to the CDP. The major issues highlighted during the meeting and the solution initiatives are given below:


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Table 9.1 Major issues and solution initiatives NO MAJOR ISSUES RAISED SOLUTION INITIATIVES

1 Implement the source segregation method in solid waste management.

Source segregation and preparation of compost is proposed

2 Set up crematorium for this Vellakoil town A gasifier crematorium is proposed.

3 Take steps to come all the buses in to bus stand.

Cooperation from the private and government bus operators, Drivers and conductors and the public is essential

4 Improve the basic amenities in Weekly market.

Reconstruction of weekly market with basic amenities is proposed.

5 Improve the basic amenities of Bus stand.

Expansion of bus stand with basic amenities is proposed

6 Require Public Toilet facility at MGR Nagar.

About 10 numbers of public toilets are proposed at various locations including MGR nagar.

7 Regulate the house tax for improve the financial status of Town

Reforms in property tax collection are proposed will improve the financial condition of the town.

8 improve the bus shelter facilities through Lions Club

5 number of new bus shelters has been proposed to be implemented by NGOs and Voluntary agencies.

The suggestions and feed backs from all attendees of the workshop are listed below:

Table 9.2 Minutes of the consultative process meeting

Chairman: Mrs. Shanthi Kandasamy

Introduction given for City Development Plan for Vellakoil Municipality

Assistant Director, Regional District Municipal Administration,

Briefed about the importance of City Development plan and need for development in public toilet facilities, road works, street light, water supply, bus stand, Park and play ground.

V.V.Thambidurai, Ex. Ward Councilor,

• Widening of Tharapuram road. • In new layouts need road facilities, public water stand post. • This town requires UGD and street light facility for all the roads.

DMK Secretary, Vellakoil DMK

• Increase the number of municipality workers involved with water supply, sanitary workers.

• Implement the source segregation method in solid waste management.

• Require park, play ground and entertainment facilities. P.K. Kumarasamy, President, Saiva Sidhantha Group

• Require Public Toilet facility at MGR Nagar. • Remove and stop the brick industries in settlement area.

Panner selvam, Lions club

• Park should be set up in town center. • Set up crematorium for this Vellakoil town. • Lions club will help to improve the bus shelter facilities.

Gurusamy, Financier • Bus stand should be transferred from old location to new location. Because buses are not coming to bus stand.

Periyasamy

• Give importance to Improvement of bus stand and buses operation.

• Require road improvement and clear the road side encroachment. • Improve the storm water drains, daily market, Government collage,

Farmers daily market • Upgrade the Primary health center as Town hospital. • Improve the Electric supply of this town.


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Jothi, Secretary, Communist Party of India (Marxsist)

• Develop basic amenities in textile mills. • Construct community marriage hall and recreation facilities. • Arrange the facility of free ambulance service. • Improve the basic amenities of Bus stand. • Improve the basic amenities in Weekly market. • Remove the encroachment in the town. • Require Park and Play ground facilities. • Stop the collection of fees for birth and death certificate. • Provide the basic amenities in Arivoli nagar. • Take steps to come all the buses in to bus stand. • Stop the stray dogs menace.

Deluxe Mani, 3rd ward Council member

• Improve the basic amenities based on population. • Regulate the house tax for improve the financial status of Town. • Provide patta for all resident of town. • Take steps to restrict the cotton export. • Provide uninterrupted power supply for Water supply. Take

immediate action against mixing of sewage water in to drinking water.

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