Vella Koil

CITY DEVELOPMENT PLAN
VELLAKOIL MUNICIPALITY
Final Report p
August 2009
Submitted to
The Commissionerate of M nicipal
Submitted by
SMEC (I di ) P t Ltd The Commissionerate of Municipal
Administration
6
th
Floor, Ezhilagam Annex Building
Chepauk, Chennai 600 005
SMEC (India) Pvt. Ltd.
No. 11/6, 18th East Street,
Thiruvanmiyur
Chennai 600 041
CITY DEVELOPMENT PLAN

VELLAKOIL MUNICIPALITY

Final Report
December 2009

Submittedto Submittedby
TheCommissonerateofMunicipalAdministration SMEC(India)Pvt.Ltd
6
th
Floor,EzhilagamAnexBuilding No.11/6,18thEastStreet,
Chepauk,Chennai600005 Thiruvanmiyur,
Chennai600041
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 83641N and 783 30E 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 Municipalitys borrowings are high at Rs. 236 lakhs compared to its income. This may result
high debt service in future years. So the Municipalitys 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 III
Borrowing 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 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 :

Priority projects suggested under CDP
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 Remunerati ve 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% 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.

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
J NNURM : J awaharlal 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 RESOLUTION
ABBREVIATIONS AND ACRONYMS
1 CONTEXT, CONCEPT AND CONTENTS OF CITY DEVELOPMENT PLAN
1.1 Context of the Study 1
1.2 Objectives 1
1.3 Revice Meeting for Dtaft Final Reports 1
2 TOWN PROFILE, PHYSICAL PLANNING AND GROWTH MANAGEMENT 4
2.1 Regional Setting 4
2.2 Physical Features 4
2.3 Climate and Rainfall 4
2.4 History of the Municipality 4
2.5 Demographic Features 4
2.5.1 Population and its Growth 4
2.5.2 Population projection 6
2.5.3 Sex ration and literacy 7
2.6 Occupational Pattern 7
2.7 Physical Planning and growth management issues 8
2.8 Growth Management issues and solution initiatives 8
3 VISION AND STRATEGIES FOR ECONOMIC DEVELOPMENT 9
3.1 Stakeholders workshop and Vision statement 9
3.2 SWOT Analysis 9
3.3 Vision for Vellakoil Town 9
3.4 Strategies for Economic Development 10
3.5 Urban Infrastructure 11
3.5.1 Sector wise Vision 11
3.6 Performance and Demand Assessment 12
3.7 Strategies for Poverty Reduction and Slum Upgradation 14
4 ORGANISATIONAL STRUCTURE 15
4.1 Elected Body 15
Executive Wing 15
4.2.1 General Administration 15
4.2.2 Engineering Department 16
4.2.3 Accounts Department 16
4.2.4 Public Health Department 16
4.2.5 Town Planning Department 16
4.3 Staff Strength Position and vacancy position 16
4.4 Issues in Human Resource 18
4.5 Organisation Management 18
5 INFRASTRUCTURE STATUS AND NEEDS ASSESSMENT 19
5.1 Physical Infrastructure 19
5.1.1 Water Supply 19
5.1.2 Sewerage 21
5.1.3 Storm Water Drains 21
5.1.4 Improvement to water bodies 22
5.1.5 Soild Waste Management 23
5.1.6 Roads 25
5.1.7 Bus Stand 27
5.1.8 Bus Shelter 27
5.1.9 Street Lights 27
CONTENT
5.2 Social Infrastructure 29
5.2.1 Slum Improvement 29
5.2.2 Parks and Play fields 30
5.2.3 Market 31
5.2.4 Public Convenience 31
5.2.5 Slaughter House 31
5.2.6 Burial Ground 31
5.2.7 E-Governance 32
5.2.8 Urban Greenary 32
5.3 Other Projects 32
5.3.1 Updation of Database On GIS Platform 32
5.4 Proposals to be implemented by other Agencies 33
5.5 Capital Investment Plan 34
6 REFORMS AND ACTION PLAN FOR PROJECT IMPLEMENTATION 36
6.1 Present Scenario in Urban Reforms 36
6.2 Proposed Interventions at state level 37
6.3 Proposed Interventions at Municipal level 38
6.3.1 Reforms In Resource Mobilisation 39
6.3.2 Privatisation Initiatives 42
6.3.3 Energy and Resource efficiency 44
6.3.4 Computerisation and E-governance 45
6.3.5 Accounts and auditing 46
6.3.6 Institutional Management 46
6.3.7 Reforms in Municipal Service Delivery 51
7 ASSETS MANAGEMENT 52
7.1 Activities of Asset Management Plan (AMP) 52
7.2 Priority asset management options 53
7.3 Land Assets 54
7.4 Management Options for land assets 55
7.5 Proposed New Assets 55
8 FINANCIAL OPERATING PLAN 57
8.1 Capital Investment Plan 57
8.2 Other Projects and on going projects 59
8.3 Means of Finance 60
8.4 Financial Sustainability 65
8.5 Basic Assumptions for Projections 65
8.5.1 Income 66
8.5.2 Expenditure 71
8.5.3 Collections 72
8.5.4 Annuity Factor 73
8.6 Project Cash Flows and FOP Results 73
8.7 Impact of Potential Improvements 81
8.8 Estimation of Investment Capacity 81
8.9 Key Indicators 83
8.10 Inference 83
9 PUBLIC CONSULTATION PROCESS 86
2.1 Population and growth 4
2.2 Comparative statement of projected population 7
2.3 Occupational Pattern - 2001 7
3.1 SWOT Analysis 9
3.2 Sector wise vision for the key Infrastructure 11
3.3 Performance Indicators for key Municipal Services 12
3.4 Demand for Municipal Services 13
4.1 Staff Strength 17
4.2 Additional Staff Required 18
5.1 Details of OHTs 20
5.2 Water Tariff-Deposit Details 20
5.3 Demand & Supply in Water Supply - Projection 20
5.4 Storm water Drains - proposals 22
5.5 Solid Waste management Proposals* 25
5.6 Category of roads 26
5.7 Road improvement - Proposals 26
5.8 Existing street lights and energy consumption 27
5.9 Street lights - Proposals 28
5.10 Location of Existing Slum Areas 29
5.11 Details of Existing Slum Areas 29
5.12 Slum - Proposals 30
5.13 Market - proposals 31
5.14 Proposals to be implemented by other Agencies 33
5.15 Capital Investment Programme 34
6.1 Road map Environmental Improvement 39
6.2 Road Map - Improving revenue from own sources 40
6.3 Road Map Improving revenue from user charges 41
6.4 Road Map for Formation of new sustainable revenue bases 42
6.5 Road Map for Privatization initiatives 44
6.6 Road Map for Energy and Resource efficiency 45
6.7 Road map for Computerization and E-Governance 46
6.8 Technical Assistance for Elected representatives 47
6.9 Technical Assistance for ULB staff 48
6.10 Road map for Accounts & auditing and Institutional Management 49
6.11 Road Map For Implementation Of All Projects 50
6.12 Reform Agenda - Municipal Service Delivery 51
7.1 Priority Municipal Assets Vellakoil Municipality 53
7.2 Proposed Use Land Asset 54
7.3 New Assets for the year - 2010 to 2015 55
8.1 Projects to be executed by the Municipality 57
8.2 Projects to be executed by Other Agencies 59
8.3 Projects under Implementation by the Municipality 59
8.4 Multi Year Investment Plan and Means of Finance 60
8.5 Consolidated Means of Finance 65
8.6 Ratio of Property tax 66
8.7 Water supply Charges - Existing 67
8.8 House Service Connections - Percentage 68
8.9 Sewage Charges 68
8.10 Increase in Tariff - Sewage Charges 69
8.11 Increase in Deposit - Sewage Charges 69
8.12 Assumptions - Increase in Expenditure 71
8.13 Assumptions O&M 71
8.14 Assumptions Provision of doubtful debts 72
8.15 Assumptions Property tax collection 72
8.16 Assumptions Profession tax 72
8.17 Assumptions Other Non Tax Income 72
8.18 Assumptions Water Charges 72
8.19 Assumptions Drainage Charges 73
8.20 Terms of Loan Funding for Proposed Investments 73
TABLES
8.21 Consolidated Income & Expenditure for next 20 years (up to FY 2028-29) 74
8.22 Consolidated Balance Sheet for next 20 years (up to FY 2028 29) 76
8.23 Summary of Borrowing and Investment Capacity - Scenario I 82
8.24 Summary of Borrowing and Investment Capacity - Scenario II 82
8.25 Summary of Borrowing and Investment Capacity - Scenario III 83
8.26 Key Indicators 83
8.27 Priority Projects suggested under CDP 84
8.27a Priority Projects suggested under CDP through Grants and Deposits 84
9.1 Major issues and solution initiatives 87
9.2 Minutes of the consultative process meeting 87
2.1 Occupational Pattern of Vellakoil -2001 7
4.1 Status of Municipal Staff Strength 17
4.2 Organisational structure of Vellakoil Municipality 17
5.1 Functional Elements of a Municipal Solid Waste Management System 24
2.1 Regional setting of the Town 5
2.2 Town Map - Vellakoil Municipality 6
1 Minutes of Meeting
2 Population Projection
3 Finance Working Sheets
4 Urban Indicators
FIGURES
MAPS
ANNEXURES
City Development Plan for Vellakoil Municipality SMEC India Pvt Ltd
Final Report TNUDP III
1

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 Consultants updations are presented below:
2

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.

3

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
4

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 83641N
and 783 30E 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 36C. 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 rate
1991 28,878 -
2001 34,438 19.3
5

Map 2.1 Regional setting of the Town
6

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METTUPALAYAM VILLAGE
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SEMMANDAMPALAYAM
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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

7

Table 2.2 Comparative statement of projected population
Sl. no. Method
Projected Population for Vellakoil
2010 2025 2040
1 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

8

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 towns economy.

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

9

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


10

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

11
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

12
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 -

13
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 112132
Water Supply
Per Capita supply @ 135 liters ML 6.97 7.74 11.05 15.14
Requirement of Distribution line @ >100% to road length km 77.43 85.99 122.81 168.20
Under Ground Sewerage System
Network coverage @ 100% to road length km 77.43 85.99 122.81 168.20
Storm Water Drains
Requirement @ 130% to road length km 101 112 160 219
Solid Waste Management
Waste generation at 300 gms TPD 15.49 17.20 28.66 39.25
Compost yard area requirement @ 1 acre per 10000 pop Acres 5 6 8 11
Roads
Road requirement with benchmark @ 1.5 to 2 m per capita
road length km 77.43 85.99 122.81 168.20
Street Lights
Requirement @ 30 m gap between street lights Nos 2581 2866 4094 5607
Parks and Open spaces
Requirement @1.0 to 1.2 hectare per 1000 population Acres 127.5 141.59 202.23 276.97
Community Hall and Library
Requirement @ 1 per 15000 population (2000 sq.m) Nos 3 4 5 7

14

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 womens 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.
Final report TNUDP III

15

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
4
ORGANISATIONAL STRUCTURE

16

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.


17

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 1
3 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 MUNICIPALITY
EXECUTIVE BODY
EL ECT ED BODY
Ex ecu tiv e Off icer
Ch air m an
En g i n e eri n g
s t a f f
Public
Healt h staff
Adm in ist ra tion
/Re ven ue St aff
Vice Ch air m an an d
war d Co un cilo rs
Pro jec t
App ro va ls
Wa ter
Su pp ly
Dra ins
Roa ds
Str eet ligh ts
Solid wa ste ,
Drai nag e,
Bir th &
Dea th
Reg ist rat ion
Off ice
Ad m in istr at i
o n Acc ou nt s
Ta x
Colle ctio n

18

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.
19

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 supply
Population (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.

20

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

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
21

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%.
22

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

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.

23

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.

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.

24

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,
25

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) 15.00
3 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 300.00
6 IEC activities 10.00
Total 800.00
Annual Operation and Maintenance cost 6.25

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
26

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

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

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

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

27

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.
28

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
29

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 Population
1. 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 6741

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

30

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

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.

31

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 lakhs
1 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.

32

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.
33

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.

34

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
35

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,
Final ReportTNUDP III
36
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 States total tax revenue passed on to urban local bodies.
2. State Finance Commissions: Three consecutive state finance commissions were
setup for recommendations to Government.
3. Setting up of TNUDF: A successful private-public partnership initiative to tap the capital
market.
4. Accrual Based Accounting System: The new accounting system has been
implemented in all the urban local bodies.
5. Computerization and E-governance of select Municipal functions have been
successfully implemented in all urban local bodies.
6. Urban indicators: Performance assessment of ULBs initiated by 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.
37
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.
38
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:
39
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
40
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 1
st

and 2
nd
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
S.N Reforms
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.
41
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
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

42
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
S.N Reforms
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
43
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.

44
Table 6.5 Road Map for Privatization initiatives

S.N Reforms
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
45
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
S.N Reforms
Year 1
Year
2
Year
3
Year
4
Year
5
1 Energy audit
i Leak detection study
ii Fixing of bulk water meter
iii Fixing flow control values and meters

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

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
46
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
S.N Reforms
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

48
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
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
49
Effective use of computers

statutes
Training for development of a positive attitude
Citizen handling and grievance handling
Managing urban poor, education and health services
Implementation skills
Training in developing a Performance Management Systems (PMS)
and key Result Areas (KRA)
Training for Operational
staff
Functional skills required in their respective function
- Training in office Procedures
- Training in computers
- Training in team work
Training in general office administration and management
- Training in effective servicing
- Training in communication
- Training in equipment usage
Source: CMA Records.

Table 6.10 Road map for Accounts & auditing and Institutional Management
Sl.N
o
Reforms
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
30
th
)

2 Institutional Management

i
Capacity Building for Elected
Representatives

ii Capacity Building for ULB staffs

50
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 5
1 Water Supply TWAD Board 71:25:4 1199.12 1199.12
2 Under Ground Sewerage System TWAD Board 35:37:28 3300.00 1500.00 1800.00
3 Storm Water drains Municipality 90:00:10 300.00 60.00 80.00 100.00 60.00
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
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:MGrants:Loan:MunicipalOwnFund
51
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
WAETR
SUPPLY
Net Supply per capita 135 lpcd 70 lpcd
Period
of
Implem
entatio
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
Availabl
e
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

52

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.


53

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

54

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--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


55

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 74
th
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 publicprivate 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 1199.12
2 Sewerage System 3300.00
3 Storm Water Drains 300.00

56

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
17 Updation of Database on GIS Platform 4000
18 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.


57

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 municipalitys 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 - - - - 1199.12
a) New Underground Sewerage Scheme - 1500.00 1800.00 - - 3300.00
III 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 1833.00
b) 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


58

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
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 towns
growth; public utility, urban environment, economic and social development, land use and
transportation, municipal resources, urban governance and capital facilities. The projects in the plan
were developed through a consultative process carried out between the Local Body Officials,
Council Staff and Elected Officials, Public Interest Groups, Project Stakeholders and the local
citizens.

The projects have been prioritized in the following order :
a) 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


59

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

-

SFC Infrastructure
3

Construction of Modern
Slaughter House
25.00
-
10.00

15.00

SFC Infrastructure
4
Improvement to Bus Stand
85.00
-
51.00

34.00

SFC Infrastructure
Total 185.00 0.00 111.00 74.00


60

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
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 1283.06
2 Sewerage
Total Project Cost - 1500.00 1800.00 - - 3300.00
Add : Price Inflation @ 7% 0.00 217.35 405.08 0.00 0.00 622.43
Total 0.00 1717.35 2205.08 0.00 0.00 3922.43
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 3922.43
3 Storm Water Drains
Total Project Cost - 60.00 80.00 100.00 60.00 300.00
Total 0.00 68.69 98.00 131.08 84.15 381.93
Means of Finance
Grant 0.00 61.82 88.20 117.97 75.74 343.74
Total 0.00 68.69 98.00 131.08 84.15 381.93
4A SWM - Cost of land fill site
Total 0.00 286.23 367.51 0.00 0.00 653.74
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


61

4B
SWM - Land fill site & compost yard
devt
Total Project Cost - - 200.00 - - 200.00
Total 0.00 0.00 245.01 0.00 0.00 245.01
Means of Finance
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
Total 26.75 28.62 0.00 0.00 0.00 55.37
Means of Finance
Grant 13.38 14.31 0.00 0.00 0.00 27.69
Total 26.75 28.62 0.00 0.00 0.00 55.37
5A Roads - Upgradation & Restoration
Total Project Cost 90.00 450.00 657.00 336.00 300.00 1833.00
Total 96.30 515.21 804.85 440.43 420.77 2277.55
Means of Finance
Grant 86.67 463.68 724.37 396.38 378.69 2049.80
Total 96.30 515.21 804.85 440.43 420.77 2277.55
5B
Roads - Improvements to Road
Geometry
Total Project Cost - - 50.00 60.00 - 110.00
Total 0.00 0.00 61.25 78.65 0.00 139.90
Means of Finance
Grant 0.00 0.00 55.13 70.78 0.00 125.91
Total 0.00 0.00 61.25 78.65 0.00 139.90
5C Roads - Widening
Total 0.00 80.14 36.75 0.00 0.00 116.89
Means of Finance
Grant 0.00 72.13 33.08 0.00 0.00 105.20
Total 0.00 80.14 36.75 0.00 0.00 116.89


62

6 Bus Shelter
Total 6.42 4.58 0.00 0.00 0.00 11.00
Means of Finance
Grant 6.42 4.58 0.00 0.00 0.00 11.00
Total 6.42 4.58 0.00 0.00 0.00 11.00
7A Street Lights - High Mast Lights
Total 7.49 8.01 0.00 0.00 0.00 15.50
Means of Finance
Grant 7.49 8.01 0.00 0.00 0.00 15.50
Total 7.49 8.01 0.00 0.00 0.00 15.50
7B Street Lights - Street Lights & Fittings
Total Project Cost 10.00 - 30.00 30.00 30.00 100.00
Total 10.70 0.00 36.75 39.32 42.08 128.85
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
Total 0.00 26.33 0.00 0.00 0.00 26.33
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 42.80 5.72 0.00 0.00 0.00 48.52
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
1 Slum Improvements
Total Project Cost - 375.00 150.00 113.00 71.00 709.00


63

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
Total 0.00 0.00 0.00 0.00 28.05 28.05
Means of Finance
Grant 0.00 0.00 0.00 0.00 19.64 19.64
Total 0.00 0.00 0.00 0.00 28.05 28.05
3A Market - Daily Market
Total 0.00 85.87 0.00 0.00 0.00 85.87
Means of Finance
Total 0.00 85.87 0.00 0.00 0.00 85.87
3B Market - Weekly Market
Total Project Cost - - 75.00 - - 75.00
Total 0.00 0.00 91.88 0.00 0.00 91.88
Means of Finance
Total 0.00 0.00 91.88 0.00 0.00 91.88
4 Burial Ground with Gasifier
Total 0.00 114.49 0.00 0.00 0.00 114.49
Means of Finance
Grant 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
Total 16.05 17.17 6.13 0.00 0.00 39.35
Means of Finance
Grant 8.03 8.59 3.06 0.00 0.00 19.67


64

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
0.00 14.49 0.00 0.00 0.00 14.49
Total
0.00 114.49 0.00 0.00 0.00 114.49
Means of Finance
Loan
0.00 103.04 0.00 0.00 0.00 103.04
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 0.00 0.00 0.00 0.00 14.03 14.03
Means of Finance
Grant 0.00 0.00 0.00 0.00 14.03 14.03
Total 0.00 0.00 0.00 0.00 14.03 14.03
3A E-Governance
Total 8.56 9.16 0.00 0.00 0.00 17.72
Means of Finance
Grant 8.56 9.16 0.00 0.00 0.00 17.72
Total 8.56 9.16 0.00 0.00 0.00 17.72
3B GIS Mapping
Total 0.00 0.00 0.00 0.00 56.10 56.10
Means of Finance
Grant 0.00 0.00 0.00 0.00 50.49 50.49
Total 0.00 0.00 0.00 0.00 56.10 56.10
3C Property Mapping
Total Project Cost 4.30 - - - - 4.30
Total 4.60 0.00 0.00 0.00 0.00 4.60
Means of Finance
Total 4.60 0.00 0.00 0.00 0.00 4.60

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


65

Table8.5 Consolidated Means of Finance
Multi Year Investment Plan
I Project Cost
Total Project Cost
1404.42 3067.00 3377.00 639.00 531.00 9018.42
98.31 444.41 759.97 198.60 213.75 1715.04
Total
1502.73 3511.41 4136.97 837.60 744.75 10733.46
II Means of Finance

(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 towns infrastructure is estimated and phased
based on the construction activity. Implications of this investment in terms of external borrowings
required, resultant debt service commitment and additional operation and maintenance expenditure
are worked out to ascertain sub-project cash flows. Revenue surpluses of the existing operations are
applied to the sub-project cash flows emerging from full project investments the Municipality fund
net surpluses indicates the ULBs ability to sustain full investments.
FY 2009-10 is taken as the base year and FY 2028-29 is assumed as the reference year (20 years)
to determine the net surpluses and whether the Municipality maintains a debt / revenue surplus ratio
as an indication of the ULBs ability to sustain investments.

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.


66

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 Annum
General 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%


67

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


68

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


69

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. 1/3
rd
out of the
same shall comprise Bio-degradable waste and the manure generation would be 1/3
rd
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/-


70

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.


71

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 lakhs
Various Projects 5.55
New Projects (other than Sewerage & Water supply) Rs. in lakhs
Strom Water Drains 4.50
Solid Waste Management 12.50
Roads 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.


72

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%


73

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 :


74

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


75

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.


76

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


77

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


78

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


79

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)


81

8.7 IMPACT OF POTENTIAL IMPROVEMENTS
Vellakoils 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, Vellakoils 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 Vellakoils 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 :


82

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 :
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
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 :
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.


83

Table8.25 Summary of Borrowing and Investment Capacity Scenario III
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)
Category 3
Long Term (2009-10 to 2028-29)
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


84

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
I Water Supply
a) Improvements to Water Supply 1199.20 A 0:90:10
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
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
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
a) Commercial Building (G+2) at Erode Road near 50.00 A 100% ULB


85

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.

86

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 towns 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 holders meeting

The stake holders 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
citys 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:

87

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.
88

J othi, 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, 3
rd
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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CITY DEVELOPMENT PLAN

Final Report City Development Plan for Vellakoil Municipality

Formation of Sustained Economic Development Organisation

Implementation of graded tariff structure (UGSS) for domestic and non-domestic

6.3.1.3 Action Plan: Formation of New Sustainable Revenue Bases

ii. O&M of street lights.

Table 6.5 Road Map for Privatization initiatives

also exposes modern/scientific technological advancement in engineering, management and

B. Capacity Building for Ulb Staff

Effective use of computers

Table 6.11 Road Map for Implementation of all Projects

6.3.7 REFORMS IN MUNICIPAL SERVICE DELIVERY

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