Gudiyattam Gudiyattam Town - Municipal

SEPTEMBER 2 0 0 9 

S S T A G E ññ IV 

C L U S S T T E E R R ññ VV 

Submitted by: 

Tamil Nadu Urban Infrastructure 

Financial Services Limited (TNUIFSL) 

Final Report 

for 

City Corporate cum Business Plan 

for 

Gudiyattam Town 

(Vellore District) 

Voyants Solutions Pvt. Ltd 

Level ñ 4, ìDiamond Duneî 

323, P.H. Road, Chennai ñ 600 029 

Tele: 044 4269 8584 Fax: 044 2668 1180 

E-mail: vsplchennai@voyants.in

Final Report City Corporate Cum Business Plan 

EXECUTIVE SUMMARY ñ GUDIYATTAM MUNICIPALITY 

1. CITY CORPORATE CUM BUSINESS PLAN ñ CONTEXT and CONTENT 

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

municipality in strengthening and improving its financial position for effective capital 

investment management and urban service delivery. The CMA and TNUIFSL have 

initiated the process of preparing the CCCBP for the municipality to enhance the vision 

of stakeholders in the growth of the town. The objective of this study is 

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

suggest a comprehensive infrastructure plan with capital investment plan to meet 

the future needs. 

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

revenue enhancement & financial improvement in the ULB 

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

implement the infrastructure plan. 

2. SWOT and VISION 

Gudiyattam, a Grade I Municipality located in Vellore district is at a distance of about 

170 km west of Chennai. The area of the town is 4.93 Sq. km and the population is 91,452 

as per census 2001. The latitude and longitude of this town are 12 57í Northern latitude 

and 78 52í Eastern longitudes respectively. 

Gudiyattam is an important centre for trade, small scale manufacturing industries and 

handloom industry in Vellore district. The major industrial activities in Gudiyattam are 

textile, tanneries, rice mills, safety matches, beedis, engineering works, saw mills and 

food processing mills.. Gudiyattam is also a centre for handloom activity in the district. 

Gudiyattam is famous for its lungi manufacturing. 

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 Gudiyattam Municipality 

Strength Weakness 

Located on State Highway connecting with 

the Chennai ñ Bengaluru Industrial Corridor of 

Excellence Lack of public utility Infrastructure 

Absence of recreational facilities that is, 

Located on Jolarpettai ñKatpadi Railway line parks and play fields. 

Centre for small scale industries, trade and Environmental pollution affecting land, 

handloom industry(lungies) 

water and air. 

Access to world class medical facilities at 

CMC , Vellore and Ida Scudder , Ranipet. 

Taluk Headquarter to Gudiyattam Taluk 

Traffic congestion due to encroachments 

and narrow roads 

Opportunities Threat 

Availability of cheap unskilled and semi skilled Poor road surfaces leading to dusty / unsafe 

labour force. 

conditions and stagnation during monsoons. 

Well established educational and Low awareness levels regarding importance 

administrative facilities in the district 

of treating industrial effluents, 

Drastic reduction in agricultural activities 

Proposed leather Goods SEZ by TN Govt. at due to land pollution and lucrative industrial 

Ranipet and SEZ at Katpadi 

jobs. 

Proposed IT park at Vellore by ELCOT, 

expected to provide direct and indirect 

employment opportunities to more than 20,000 

persons. 

Source : Feedback from stakeholders meeting and analysis. 

The town of Gudiyattam is visualized as ìTo be a center for industrial activities 

supplemented with the necessary infrastructural facilities and amenities to provide 

better standards of living conditions for living in the town.î 

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

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

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

covered in the report for Gudiyattam 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. 14913.53 lakhs. 

Capital Investment Needs for Gudiyattam 

Sl.No Description 

Estimated Cost 

(Rs in Lakhs) 

1 Water Supply - Mettur CWSS 7211.00 

2 Water supply improvement scheme 1013.33 

3 Sewerage 4039.84 

4 Storm Water Drains 312.00 

5 Solid Waste Management 853.08

6 Traffic and Transportation - roads 574.19 

7 Bus stand Improvement ñ Old and New 300.00 

8 Streetlight 55.86 

9 Slum 554.00 

10 Education 241.20 

11 Parks 77.00 

12 Improvements -Daily market & weekly market 27.00 

13 Shopping Complex near Robinson tank 500.00 

14 Mordernised shopping complex at old bus stand 500.00 

15 Slaughter House Improvement 8.00 

16 Public Convenience 43.79 

17 Burial Ground improvements 75.38 

18 E-Governance 18.00 

19 GIS Mapping for Comprehensive Property Database 20.00 

20 Mobile tax collection vehicle 10.00 

Total 16433.67 

4. FINANCIAL PERFORMANCE OF GUDIYATTAM MUNICIPALITY 

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

In the case of Gudiyatham Municipality, it is observed that the Municipality has 

incurred deficit in all the years mainly due to depreciation and high finance 

charges. Thus the Municipality needs to undertake lot of fiscal reforms and full 

leverage of its assets over the next few years to improve its financial strength. Prior 

to depreciation, the Municipality has incurred surplus in 4 out of the last 6 years, 

which is a positive sign. 

The average current collection efficiency of the municipality is poor, between 60 

ñ 70% for all the cases of Own Revenue. The arrears collection performance is also 

poor. 

The broad financial analysis of the Gudiyatham Municipality finances reveal that 

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

collection efficiency for servicing the additional borrowings in the future. 

The Municipalityís borrowings as on 31st March 2007 is Rs. 651.77 lacs. It is 

observed that around 50% of the fixed assets excluding Land have been funded 

by means of Contribution and Grants from Government over the years and the 

balance 50% from Loans. 

To summarize, the overall income pattern of the Gudiyatham Municipality indicates 

both positive as well as negative trends. The positive trends are on the income side, 

where the Municipalityís Own Revenue has shown growth of around 10-15% over the 

past 6 years. The income from Devolution Fund has increased by around 50% p.a. 

over the last 5 years.

5. PROPOSED REFORMS 

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

a. Reforms in resource mobilization 

i. Reforms in Taxation 

Property mapping - Onetime assessment of all unassessed and under assessed 

properties. 

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

years 

ii. Improving revenue from user charges 

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

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

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

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

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

industries and other commercial establishments 

Revenue Generation from sale of compost and scrap. 

iii. Reforms in Energy and Resource efficiency 

Conducting energy audits, leak detection studies, Enforce regulations on 

illegal tapping of water, Fixing flow control valves and meters. 

Provision of energy saving lights and equipments, Privatizing the maintenance 

of street lights to ESCO companies. 

iv. Formation of new sustainable revenue sources 

The remunerative proposals idenfied are 

Construction of new bus stand at Govt. higher sec. school ground 

Improvements at Daily market & weekly market 

Construction of Shopping Complex at Robbinson tank 

Construction of Shopping complex at old bus stand 

v. Reforms in Audit and Accounting 

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

Appointing a private Chartered Accountant as consultant 

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

fiscal year 

vi. Regular and mandatory capacity buildings sessions for elected representatives 

& municipal officials

6. BORROWING AND INVESTMENT CAPACITY 

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

revenue income and expenditure under the sustainable scenario, after implementation 

of the mandatory reforms proposed in this report. 

The investment capacity for the sustainable scenario assuming entire capital and O&M 

of Mettur CWSS is as grant, the following is summed up as below: 

Description 

Borrowing Capacity 

Investment Capacity 

Summary of Borrowing and Investment Capacity 

Base case Scenario 

1 

Sustainable 

Scenario 2 

Sustainable 

Scenario 3 

No project With Mettur Without Mettur 

Rs. 993.35 lacs 

Rs. 3973.40 lacs 

Investment Requirement - 

Sustainable Investment Capacity 

% - IC / IR 

- 

- - 

- - 

Rs. 16433.67 lacs Rs. 16433.67 lacs 

-ve -ve 

The investment capacity of Gudiyattam Municipality on ëAs is Where Basisí works out 

to Rs. 3973 lacs. 

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

(With Metur CWSS project) and Nil in case of Scenario III (Without Metur CWSS 

project). 

Thus it can be inferred that Gudiyattam Municipalityís financial position is weak and is 

not in a position to undertake major projects like water supply improvements and 

underground by way of borrowings on account of high operation & maintenance 

expenses and interest cost. 

Based on the above, it can be concluded that the Municipality based on its financial 

position can undertake only smaller projects identified in the CCP as given below : 

Projects Identified for Implementation based on financial position 

S.N. Particulars Total Priority 

Means of 

Finance 

A Physical Infrastructure Facilities L : G : M 

I Bus Stand 

a) Construction of New Bus Stand 300.00 B 90:00:10 

II Street Lights 

a) Proposed new lights 40.00 A 100% ULB 

b) 

Retrofitting existing lights & 

energy saving devices 15.86 A ESCO 

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

B Social Infrastructure Facilities 

I Education 

a) Improvements to Schools 91.20 B 100% ULB 

b) 

Construction of Municipal Higher 

Secondary School 150.00 B 100% ULB 

II Parks & Playgrounds 

a) 

Improvements to Nehru Park & 

Arun Park 45.00 B 0:50:50 

b) New Park at Robinson Tank 32.00 B 0:50:50 

III Burial Ground / Crematorium 

a) 

b) 

Improvements with Gasifier at 

Sunnampupettai 60.19 C 0:50:50 

Burial Ground improvement at 

Malalathur Road 15.19 B 0:90:10 

IV Market 

a) 

Improvements at Daily & Weekly 

market 27.00 A 100% ULB 

V Shopping Complex 

a) 

Shopping Complex near 

Robinson Tank 500.00 A 90:00:10 

VI Slaughter House 

a) Improvement to Slaughter House 8.00 B 0:50:50 

VII Public Convenience 

a) Public Convenience 43.79 B 0:50:50 

C Other Projects 

I Vehicle 

a) Mobile tax collection van 10.00 A 100% ULB 

II E-Governance 

a) E-Governance 18.00 C 100% Grant 

III 

GIS Mapping for comprehensive 

database 

a) Property Mapping 5.00 A 0:90:10 

b) GIS data base 15.00 C 0:90:10 

Total 1376.23 

As regards major projects like water supply improvements, underground sewerage 

scheme, storm water drains, solid waste management, roads, new shopping 

complex etc., the Municipality can undertake these projects with minimum or Nil 

borrowings and more support from the Government towards capital cost. 

Mettur CWSS project can be taken up by the Municipality only if both capital cost 

and operation & maintenance expenses is supported by the Government. 

Since the town does not have the borrowing capacity to take up the proposed UGSS 

and Mettur CWSS, it is suggested that remunerative projects and PPP projects be 

taken up initially. The state Government needs to extend support to Gudiyattam 

Municipality to take up the proposed UGSS and WS schemes. After the 

implementation of the proposed mandatory reforms and improving the 

Municipalityís own revenue sources, the other projects could be taken up.

11 

TTAABBLLEE OFF CCONTTEENTTSS 

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Final Report: Gudiyattam Municipality 

BBAACCKGRROUND AAND MEETTHODOLLOGIICCAALL FFRRAAMEEWORRK OFF TTHEE SSTTUDYY .. . ... .. .. ... .. ... .. .. ... .. ... .. .. 1122 

1.1 BACKGROUND ............................................................................................................................... 12 

1.2 OBJECTIVES ..................................................................................................................................... 12 

1.3 SCOPE OF WORK: .......................................................................................................................... 12 

1.4 STAGE III: DRAFT FINAL STAGE .................................................................................................... 14 

1.5 PRESENTATION AND DISCUSSION WITH REVIEW COMMITTEE.............................................. 14 

1.6 DISCUSSION WITH STAKEHOLDERS ............................................................................................. 16 

22 

TTOWN PPRROFFIILLEE. .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 1177 

2.1 GUDIYATTAM . . . TOWN PROFILE ............................................................................................... 17 

2.2 REGIONAL CONNECTIVITY .......................................................................................................... 17 

2.3 HISTORY OF THE MUNICIPALITY .................................................................................................. 17 

2.4 POPULATION CHARACTERISTICS ................................................................................................ 18 

2.4.1 Population Distribution ................................................................................................................ 18 

2.4.2 Population Growth ....................................................................................................................... 19 

2.4.3 Population Projections ................................................................................................................ 19 

2.4.4 Population Density ....................................................................................................................... 20 

2.4.5 Slum Population ............................................................................................................................ 20 

2.4.6 Sex Ratio ......................................................................................................................................... 20 

2.4.7 Literacy ............................................................................................................................................ 20 

33 

EECCOONOOMI ICC DDEEVVEELLOOPPMEENTT AANDD PPHHYYSSIICCAALL 

PPLLAANNIINNGG .. . ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 2211 

3.1 URBAN ECONOMIC DEVELOPMENT - SITUATION ANALYSIS ................................................ 21 

3.1.1 Occupational Pattern .................................................................................................................. 21 

3.1.2 Classification of Main Workers .................................................................................................. 21 

3.2 PHYSICAL PLANNING .................................................................................................................... 22 

3.2.1 Physical Growth Trend ................................................................................................................ 22 

3.2.2 Land Use Analysis ......................................................................................................................... 22 

3.2.3 Land rates ....................................................................................................................................... 23 

3.3 GROWTH MANAGEMENT ISSUES ................................................................................................ 23 

44 

SSTTAAKEEHOOLLDDEERRSS CCONSSULLTTAATTIIONSS .. . .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 2255 

4.1 CITY OPINION SURVEY ................................................................................................................. 25 

4.2 KEY ISSUES HIGHLIGHTED IN THE CONSULTATION MEETING ................................................ 25 

4.2.1 Sector Prioritization ....................................................................................................................... 25 

4.2.1.1 PHYSICAL INFRASTRUCTURE PRIORITY ................................................................................................... 26 

4.2.1.2 SOCIAL INFRASTRUCTURE PRIORITY ....................................................................................................... 26 

4.2.1.3 ENVIRONMENTAL ISSUES ...................................................................................................................... 27 

55 

VVI IISSI IIONN AANNDD SSTTRRAATTEEGI IIC 

PPLLAANN .. . ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 2299 

5.1 TOWN LEVEL SWOT ......................................................................................................................... 29 

Voyants Solutions Private 

Limited

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5.2 VISION FORMULATION .................................................................................................................. 29 

5.3 STRATEGY OPTION FOR ECONOMIC DEVELOPMENT ............................................................. 30 

66 

HOUSSIING IINCCLLUDIING SSLLUMSS .. . ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 3322 

6.1 EXISTING HOUSING SCENARIO ................................................................................................... 32 

6.1.1 HOUSING CONDITION ......................................................................................................................... 32 

6.1.2 HOUSING STOCK ................................................................................................................................. 32 

6.2 EXISTING SLUM SCENARIO ........................................................................................................... 33 

6.2.1 SLUM POPULATION .............................................................................................................................. 33 

6.2.2 SLUM PROFILE ..................................................................................................................................... 33 

6.2.3 SLUM IMPROVEMENT PROGRAMME ..................................................................................................... 35 

6.3 ISSUES ................................................................................................................................................ 35 

6.4 PROPOSAL ...................................................................................................................................... 36 

6.5 PROPOSAL ...................................................................................................................................... 36 

77 

INNSSTTI I IITTUUTTI IONNAALL 

FFRRAAMEEWORRKK .. . ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 3377 

7.1 ELECTED COUNCIL ........................................................................................................................ 37 

7.2 EXECUTIVE WING ........................................................................................................................... 38 

7.2.1 GENERAL ADMINISTRATION ................................................................................................................. 38 

7.2.2 HEALTH SECTION ................................................................................................................................. 39 

7.2.3 ENGINEERING SECTION ....................................................................................................................... 39 

7.2.4 TOWN PLANNING SECTION.................................................................................................................. 39 

7.2.5 ACCOUNTS SECTION ........................................................................................................................... 39 

7.3 CITIZENíS CHARTER ........................................................................................................................ 39 

7.4 INFORMATION CENTRE ................................................................................................................ 40 

7.5 STAFF STRENGTH POSITION AND VACANCY POSITION ........................................................ 40 

7.6 ADDITIONAL STAFF REQUIREMENT ............................................................................................. 41 

7.7 INSTITUTIONAL FRAMEWORK FOR SERVICE DELIVERY ........................................................... 42 

7.8 ORGANIZATION MANAGEMENT ................................................................................................ 42 

88 

URRBBAAN IINFFRRAASSTTRRUCCTTURREE AAND SSEERRVVI ICCEESS ... . .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 4444 

8.1 WATER SUPPLY ................................................................................................................................ 44 

8.1.1 SOURCE OF WATER SUPPLY ................................................................................................................. 44 

8.1.2 STORAGE AND DISTRIBUTION NETWORK ............................................................................................... 48 

8.1.3 DEMAND SUPPLY SCENARIO ............................................................................................................... 48 

8.1.4 SALIENT DETAILS OF WATER SUPPLY SCHEME......................................................................................... 49 

8.1.5 PERFORMANCE INDICATORS ............................................................................................................... 49 

8.1.6 ISSUES IN WATER SUPPLY SECTOR ......................................................................................................... 50 

8.1.7 PROPOSAL BY MUNICIPALITY ............................................................................................................... 51 

8.2 SEWERAGE AND SANITATION ..................................................................................................... 54 

8.2.1 SEWERAGE .......................................................................................................................................... 54 

8.2.2 SANITATION ......................................................................................................................................... 54 


8.2.4 ISSUES IN SEWERAGE AND SANITATION PROVISIONS ............................................................................. 56 

8.2.5 PROPOSAL BY THE TWAD ................................................................................................................... 56 


Limited

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8.3 STORM WATER DRAINAGE .......................................................................................................... 57 

8.3.1 EXISTING CONDITION OF STORM WATER DRAINAGE ........................................................................... 57 

8.3.2 HOUSEHOLD CONNECTIVITY TO DRAINAGE ......................................................................................... 58 


8.3.4 ISSUES IN STORM WATER DRAINAGE PROVISIONS ................................................................................ 58 

8.3.5 PROPOSAL .......................................................................................................................................... 59 

8.4 SOLID WASTE MANAGEMENT .............................................................................................. 59 

8.4.1 GENERATION OF SOLID WASTE ............................................................................................................ 59 

8.4.2 COLLECTION OF SOLID WASTE ............................................................................................................ 59 

8.4.3 TRANSPORTATION FACILITIES ................................................................................................................ 60 

8.4.4 DISPOSAL OF SOLID WASTE ................................................................................................................. 61 


8.4.6 ISSUES IN SOLID WASTE MANAGEMENT SECTOR................................................................................... 62 

8.4.7 PROPOSAL BY MUNICIPALITIES ............................................................................................................. 62 

8.5 STREET LIGHTING..................................................................................................................... 62 

8.5.1 STATUS OF STREET LIGHTING ................................................................................................................. 62 


8.5.3 ISSUES IN STREET LIGHT PROVISIONS ..................................................................................................... 64 

8.5.4 PROPOSAL .......................................................................................................................................... 64 

8.6 TRAFFIC AND TRANSPORTATION ....................................................................................... 64 

8.6.1 REGIONAL LINKAGES- ROADS, RAILWAYS AND AIRWAYS .................................................................... 64 

8.6.2 TOWN LEVEL ROAD NETWORK AND HIERARCHY .................................................................................. 65 

8.6.3 NATIONAL AND STATE HIGHWAY ......................................................................................................... 65 

8.6.4 MUNICIPAL ROADS ............................................................................................................................. 65 

8.6.5 PARKING ............................................................................................................................................. 65 

8.6.6 PEDESTRIAN PATHS .............................................................................................................................. 66 

8.6.7 PUBLIC TRANSPORT SYSTEM ................................................................................................................. 66 

8.6.8 ISSUES IN TRAFFIC AND TRANSPORTATION SECTOR ............................................................................... 66 

8.6.9 BUS STAND .......................................................................................................................................... 66 

8.6.10 PROPOSAL FOR ROAD ........................................................................................................................ 67 

8.7 SOCIAL INFRASTRUCTURE FACILITIES ........................................................................... 67 

8.7.1 EDUCATIONAL FACILITIES ..................................................................................................................... 67 

8.7.2 ISSUES .................................................................................................................................................. 69 

8.7.3 PROPOSAL .......................................................................................................................................... 69 

8.7.4 HEALTH FACILITIES................................................................................................................................ 70 

8.7.5 ISSUES IN HEALTH SECTOR .................................................................................................................... 70 

8.7.6 PROPOSAL .......................................................................................................................................... 70 

8.7.7 PARKS ................................................................................................................................................. 70 

8.7.8 ISSUES .................................................................................................................................................. 70 

8.7.9 PROPOSAL .......................................................................................................................................... 70 

8.7.10 SLAUGHTER HOUSE .............................................................................................................................. 70 

8.7.11 ISSUES .................................................................................................................................................. 71 

8.7.12 PROPOSAL BY MUNICIPALITY ............................................................................................................... 71 

8.7.13 BURIAL GROUND ................................................................................................................................. 71 

8.7.14 ISSUE ................................................................................................................................................... 71 

8.7.15 PROPOSAL .......................................................................................................................................... 71 


Limited

99 

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MUNIICCIIPPAALL FFIINAANCCEE. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 7722 

9.1 OVERVIEW .................................................................................................................................... 72 

9.2 GENERAL DETAILS ................................................................................................................... 72 

9.3 RECEIPTS ...................................................................................................................................... 72 

9.3.1 PROPERTY TAX ..................................................................................................................................... 72 

9.3.2 PROFESSION TAX ................................................................................................................................. 74 

9.3.3 ASSIGNED REVENUES ........................................................................................................................... 75 

9.3.4 REVENUE DEVOLUTION FUNDS IN AID OF REVENUE EXPENDITURE .......................................................... 75 

9.3.5 WATER CHARGES ............................................................................................................................... 76 

9.3.6 DRAINAGE CHARGES.......................................................................................................................... 77 

9.3.7 SERVICE CHARGES & FEES .................................................................................................................. 77 

9.3.8 INCOME FROM PROPERTIES & OTHER INCOME .................................................................................... 78 

9.4 EXPENDITURE............................................................................................................................. 79 

9.4.1 ESTABLISHMENT EXPENSES .................................................................................................................... 79 

9.4.2 O&M EXPENSES ñ WATER SUPPLY ...................................................................................................... 79 

9.4.3 O&M EXPENSES ñ STREET LIGHTS & OTHERS ....................................................................................... 80 

9.4.4 ADMINISTRATION & OTHER EXPENSES .................................................................................................. 80 

9.5 SUMMARY OF FINANCES ........................................................................................................ 80 

9.6 KEY FINANCIAL INDICATORS .............................................................................................. 84 

9.6.1 RESOURCE MOBILISATION INDICATORS ................................................................................................ 84 

9.6.2 FUND APPLICATION INDICATORS ......................................................................................................... 84 

9.6.3 LIABILITY MANAGEMENT INDICATORS .................................................................................................. 85 

9.6.4 OVERALL FINANCIAL PERFORMANCE INDICATORS .............................................................................. 85 

9.6.5 EFFICIENCY INDICATORS ...................................................................................................................... 86 

9.7 MEASURES TO BE TAKEN FOR IMPROVING COLLECTION EFFICIENCY ........... 86 

1100 

CCAAPPIITTAALL IINVVEESSTTMEENTT NEEEEDSS FFORR 

IIDEENTTI IFFIIEED 

PPRROJJEECCTTSS ... . .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. 8899 

10.1 PHYSICAL INFRASTRUCTURE - IMPROVEMENT NEEDS ......................................... 90 

10.1.1 WATER SUPPLY: ................................................................................................................................... 90 

10.1.2 SEWERAGE SYSTEM ............................................................................................................................ 93 

10.1.3 DRAINAGE .......................................................................................................................................... 94 

10.1.4 SOLID WASTE MANAGEMENT............................................................................................................. 96 

10.1.5 STREET LIGHT .................................................................................................................................... 98 

10.1.6 ROADS AND TRANSPORTATION ........................................................................................................... 99 

10.1.7 EDUCATIONAL INSTITUTIONS ........................................................................................................... 100 

10.1.8 HEALTH FACILITIES .......................................................................................................................... 100 

10.1.9 PARKS AND PLAY GROUND .............................................................................................................. 101 

10.1.10 MARKET DEVELOPMENT .................................................................................................................. 102 

10.1.11 SLAUGHTER HOUSE DEVELOPMENT ................................................................................................. 102 

10.1.12 BURIAL GROUND DEVELOPMENT ..................................................................................................... 103 

10.1.13 SLUM IMPROVEMENT ........................................................................................................................ 103 

10.1.14 SYSTEM IMPROVEMENT AND E-GOVERNANCE ................................................................................. 104 

10.2 OTHER DEPARTMENT PROJECT ........................................................................................ 105 

1111 

RRIISSKSS AAND MIITTIIGGAATTIION MEEAASSURREESS .. . ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... . 110077 

11.1 PROJECT RISK AND MITIGATION MEASURES ......................................................................... 107 


Limited

1122 

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RREEFFORRMSS AAND AACCTTIION PPLLAAN .. . .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... . 111111 

12.1 PRESENT SCENARIO IN URBAN REFORMS .............................................................................. 111 

12.2 PROPOSED INTERVENTIONS AT STATE LEVEL ......................................................................... 112 

12.3 PROPOSED INTERVENTION AT MUNICIPAL LEVEL ................................................................ 115 

12.3.1 REFORMS IN RESOURCE MOBILISATION .............................................................................................. 115 

12.3.2 ACTION PLAN : IMPROVING REVENUE FROM OWN SOURCES ............................................................ 115 

TABLE 12-1: ROAD MAP - IMPROVING REVENUE FROM OWN SOURCES ............................................................... 116 

12.3.3 ACTION PLAN : IMPROVING REVENUE FROM USER CHARGES ............................................................ 117 

12.3.4 ACTION PLAN: FORMATION OF NEW SUSTAINABLE REVENUE BASES .................................................... 118 

12.3.5 ACTION PLAN: PRIVATISATION INITIATIVES .......................................................................................... 119 

12.3.6 ACTION PLAN: ENERGY & RESOURCE EFFICIENCY ............................................................................. 121 

12.3.7 ACTION PLAN: COMPUTERIZATION AND E-GOVERNANCE ................................................................. 122 

12.3.8 ACTION PLAN: ACCOUNTS AND AUDITING ....................................................................................... 124 

12.3.9 ACTION PLAN: INSTITUTIONAL MANAGEMENT ................................................................................... 124 

12.3.10 A. CAPACITY BUILDING FOR ELECTED REPRESENTATIVES AND COMMITTEE MEMBERS ......................... 124 

12.3.11 B. CAPACITY BUILDING FOR ULB STAFF ............................................................................................. 125 

12.3.1 REFORMS IN MUNICIPAL SERVICE DELIVERY ....................................................................................... 129 

1133 

AASSSSEETT MAANAAGEEMEENTT PPLLAAN .. . ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... . 113300 

13.1 ACTIVITIES OF ASSET MANAGEMENT PLAN (AMP) .............................................................. 130 

13.2 INFRASTRUCTURE ASSETS ............................................................................................................ 131 

13.2.1 MOVABLE AND IMMOVABLE ASSETS................................................................................................... 131 

13.3 PRIORITY ASSET MANAGEMENT OPTIONS .............................................................................. 133 

13.4 PROPOSED NEW ASSETS ............................................................................................................ 134 

1144 

FFIINAANCCI IAALL OPPEERRAATTIING 

PPLLAAN ... . .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... . 113366 

14.1 CAPITAL INVESTMENT PLAN ...................................................................................................... 136 

14.2 OTHER PROJECTS AND ON GOING PROJECTS .................................................................... 138 

14.3 MEANS OF FINANCE ................................................................................................................... 139 

14.4 FINANCIAL SUSTAINABILITY ........................................................................................................ 146 

14.5 BASIC ASSUMPTIONS FOR PROJECTIONS : ............................................................................ 147 

14.5.1 Property Tax ................................................................................................................................. 147 

14.5.2 Profession tax ............................................................................................................................... 148 

14.5.3 Assigned revenue....................................................................................................................... 148 

14.5.4 Devolution Fund ......................................................................................................................... 148 

14.5.5 Service charges and fees ........................................................................................................ 148 

14.5.6 Grant and Contribution ............................................................................................................ 148 

14.5.7 Sales and Hire charges ............................................................................................................. 148 

14.5.8 Other Income .............................................................................................................................. 148 

14.5.9 Water Supply Charges .............................................................................................................. 148 

14.5.10 Drainage Charges ..................................................................................................................... 149 

14.5.11 Solid waste Management ....................................................................................................... 150 

14.5.12 Bus Stand ...................................................................................................................................... 151 

14.5.13 Market ........................................................................................................................................... 151 

14.5.14 Remunerative Projects .............................................................................................................. 151 


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14.5.15 Slaughter House & Gasifier Crematorium ............................................................................ 151 

14.5.16 Advertisements ........................................................................................................................... 152 

14.5.17 Parking Fees ................................................................................................................................. 152 

14.5.18 Expenditure .................................................................................................................................. 152 

14.5.19 Operation and Maintenance ................................................................................................. 152 

14.5.20 Power charges ............................................................................................................................ 153 

14.5.21 Interest ........................................................................................................................................... 153 

14.5.22 Depreciation................................................................................................................................ 153 

14.5.23 Provision of doubtful debts ...................................................................................................... 153 

14.5.24 Collections.................................................................................................................................... 153 

14.5.25 Annuity Factor ............................................................................................................................. 154 

14.6 PROJECT CASH FLOWS AND FOP RESULTS ............................................................................ 155 

14.7 IMPACT OF POTENTIAL IMPROVEMENTS ................................................................................ 162 

14.8 SCENARIO I -ESTIMATION OF INVESTMENT CAPACITY ON AS IS WHERE BASIS ............. 163 

14.9 SCENARIO I I-ESTIMATION OF BORROWING AND INVESTMENT CAPACITY WITH 

METTUR CWSS ............................................................................................................................... 163 

14.10 SCENARIO III-ESTIMATION OF BORROWING AND INVESTMENT CAPACITY WITHOUT 

METTUR CWSS ............................................................................................................................... 164 

14.11 KEY INDICATORS OF SCENARIO II (FULL PROJECT SCENARIO WITH METTUR CWSS) .. 164 

14.12 INFERENCE. ................................................................................................................................... 165 

AANNEEXXURREE .. . ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... .. .. ... .. ... . 116677 


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LIST OF FIGURES 

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Figure 3-1: Existing Landuse 2002 ............................................................................................ 23 

Figure 4-1: Priorities for Physical Infrastructure ...................................................................... 26 

Figure 4-2: Priorities for Social Infrastructure .......................................................................... 27 

Figure 4-3: Priorities for Environmental Protection ............................................................... 28 

Figure 5-1: Chennai-Bengaluru Industrial corridor of excellence .................................... 30 

Figure 6-1: Housing Condition .................................................................................................. 32 

Figure 6-2: Location of slum ñ Gudiyattam Municipality ................................................... 34 

Figure 7-1: Organisational structure of Gudiyattam Municipality .................................... 38 

Figure 8-1: Bodipet ñ Collection well ...................................................................................... 44 

Figure 8-2: Pasumathur - Source ............................................................................................. 44 

Figure 8-3: Schematic Diagram of Head works and Service Reservoirs ......................... 47 

Figure 8-4: Water Supply Proposal Map ................................................................................ 53 

Figure 8-5: Status of Toilet Facility in Gudiyattam Town .................................................... 55 

Figure 10-1: Mettur Combined Water Supply Scheme ...................................................... 92 

Figure 10-2: Site Identification for Landfill .............................................................................. 97 


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LIST OF TABLES 

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Table 2-1: Urban Population Share in the Town and the Region ..................................... 18 

Table 2-2: Population Growth in Gudiyattam Municipality ............................................... 19 

Table 2-3: Population projection ............................................................................................. 19 

Table 2-4 Comparative Population Density ......................................................................... 20 

Table 3-1: Work Force Participation Ratio in Gudiyattam Town ...................................... 21 

Table 3-2: Sectoral Occupational classification of Main Workers in Gudiyattam Town 

....................................................................................................................................................... 22 

Table 3-3: Existing Landuse in Gudiyattam in 2002 ............................................................. 23 

Table 3-4: Land Values in Gudiyattam Town ....................................................................... 23 

Table 5-1: Town level SWOT ...................................................................................................... 29 

Table 6-1: Existing Housing Stock ............................................................................................. 32 

Table 6-2: Slum Details ............................................................................................................... 33 

Table 6-3: Details of infrastructure available in slums (As per ISHDP report out of 23 

slums pockets clumped /reduced to 18 slum Pockets) ..................................................... 34 

Table 6-4: Proposal for Integrated Housing and Slum Development Programme 

(IHSDP) .......................................................................................................................................... 36 

Table 7-1: Existing staff strength ............................................................................................... 40 

Table 7-2: Additional Staff Requirement ............................................................................... 41 

Table 7-3: Institutional Framework for Urban Service Delivery .......................................... 42 

Table 8-1: Details of Source and Head works ...................................................................... 45 

Table 8-2: Break up of Water Supply Connections ............................................................. 45 

Table 8-3: Classification of Sources of Water by type in Gudiyattam ............................ 46 

Table 8-4: Location of Reservoirs............................................................................................. 48 

Table 8-5: Water Supply Distribution Details in Gudiyattam Town ................................... 48 

Table 8-6: Supply gap Analysis ................................................................................................ 48 

Table 8-7: Existing water supply salient features .................................................................. 49 

Table 8-8: Salient details of Proposed Water supply Scheme to Gudiyattam Scheme 

....................................................................................................................................................... 51 

Table 8-9: Proposal water supply Scheme Salient Features .............................................. 51 

Table 8-10: Classification of modes of sanitary waste disposal by type ........................ 54 

Table 8-11: Public Toilets ........................................................................................................... 55 

Table 8-12: Zone wise demand Estimation for Provision Sewerage Facilities ................ 56 

Table 8-13: Under Ground Drainage system ñAbstract of Cost Estimate ....................... 56 

Table 8-14: Storm Water Drainage Facility ............................................................................ 57 

Table 8-15: Existing Storm Water Drains ................................................................................. 57 

Table 8-16: Existing Drainage Scenario .................................................................................. 58 

Table 8-17: Type of Waste Generated from Gudiyattam Municipality .......................... 59 

Table 8-18: Waste Collection Vehicles .................................................................................. 60 

Table 8-19: Solid Waste Practices in Gudiyattam Town ..................................................... 60 

Table 8-20: Availability of Staff for Solid Waste Management in Gudiyattam Town ... 60 

Table 8-21: Number and Type of vehicles used for Transportation ................................. 61 


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Table 8-22: Street lighting status in Gudiyattam Town ....................................................... 62 

Table 8-23: Number of Street Lights in Gudiyattam Municipality ..................................... 63 

Table 8-24: Length of National Highways Passing through Gudiyattam ........................ 65 

Table 8-25: Types of Roads in Gudiyattam Municipality .................................................... 65 

Table 8-26: Roads by Hierarchy, 2004 .................................................................................... 65 

Table 8-27: Details of Education Facilities ............................................................................. 67 

Table 8-28: Existing Educational facilities in Gudiyattam Town ........................................ 68 

Table 9-1: Property Tax Components ..................................................................................... 73 

Table 9-2: Property Tax Assessments ...................................................................................... 73 

Table 9-3: Property Tax ñ Growth during last 6 years .......................................................... 73 

Table 9-4: Property Tax ñ Demand Collection % (Rs. in lacs) ............................................ 73 

Table 9-5: Profession Tax ñ Growth during last 6 years ....................................................... 74 

Table 9-6: Profession Tax ñ Demand Collection % (Rs. in lacs) ......................................... 74 

Table 9-7: Assigned Revenue ñ Growth & % of Total Income ........................................... 75 

Table 9-8: Devolution Fund ñ Growth & % of Total Income (Rs. in lacs) ......................... 76 

Table 9-9: Water Tariff & Deposit ............................................................................................. 76 

Table 9-10: No. of House Service Connections .................................................................... 76 

Table 9-11: Water Charges ñ Growth & % of Total Income (Rs. in lacs) ......................... 76 

Table 9-12: Water Connection Charges ñ Growth & % of Total Income (Rs. in lacs) .. 77 

Table 9-13: Water Charges ñ Demand Collection % (Rs. in lacs) ..................................... 77 

Table 9-14: Service Charges & Fees ñ Growth & % of Total Income (Rs. in lacs) .......... 78 

Table 9-15: Income from Properties & Other Income ñ Growth & % of Total Income . 78 

Table 9-16: Non Tax Income ñ Demand Collection % (Rs. in lacs)................................... 78 

Table 9-17: Establishment Expenses ñ Growth & % of Total Expenditure (Rs. in lacs) ... 79 

Table 9-18: O&M Expenses (Water Supply) ñ Growth & % of Total Expenditure ........... 79 

Table 9-19: O&M Expenses (Street Lights & Others) ñ Growth & % of Total Expt ........... 80 

Table 9-20: Administration Expenses ñ Growth & % of Total Expenditure ....................... 80 

Table 9-21: Summary of Finances for last 6 years (Rs. in lacs) ........................................... 80 

Table 9-22: Head-wise Income & Expenditure for last 6 years(Rs. in lacs) ..................... 81 

Table 9-23: Borrowings of the Municipality (Rs. in lacs) ...................................................... 82 

Table 9-24: Status of Contributions & Grants ........................................................................ 83 

Table 9-25: Resource Mobilisation Indicators ....................................................................... 84 

Table 9-26: Fund Application Indicators................................................................................ 85 

Table 9-27: Liability Management Indicators ....................................................................... 85 

Table 9-28: Financial Performance Indicators ..................................................................... 86 

Table 9-29: Efficiency Indicators ............................................................................................. 86 

Table 10-1: Summery of Capital Investments under CCCBP ............................................ 89 

Table 10-2: Investment requirement in water supply sector for Gudiyattam 

Municipality ................................................................................................................................. 93 

Table 10-3: Capital Investment Needs for the Sewerage System and Public 

Conveniences ............................................................................................................................ 94 

Table 10-4: Capital Investment Needs for the Storm Water Drainage System ............. 95 

Table 10-5: Capital Investment Needs for the Solid Waste Management .................... 98 


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Table 10-6: Capital Investment Needs for the Street Light ................................................ 99 

Table 10-7: Capital Investment Needs for the Roads and Transportation ..................... 99 

Table 10-8: Capital Investment Needs for the Educational Institutions ........................100 

Table 10-9: Capital Investment Needs for the Parks and Play Grounds .......................101 

Table 10-10: Capital Investment Needs for the Market Development .........................102 

Table 10-11: Capital Investment Needs for Slaughter House Improvement ...............103 

Table 10-12: Capital Investment Needs for Burial Ground Development ....................103 

Table 10-13: Capital Investment Needs for Slum Improvement .....................................104 

Table 10-14: Capital Investment Needs for the e-Governance .....................................105 

Table 10-15: Project to be taken by Other Department ..................................................105 

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

projects ñ Gudiyatham ...........................................................................................................107 

Table 12-1: Road Map - Improving revenue from own sources .....................................116 

Table 12-2: Road Map Improving revenue from user charges ......................................118 

Table 12-3: Road Map for Formation of new sustainable revenue bases ...................119 

Table 12-4: Road Map for Privatization initiatives ..............................................................121 

Table 12-5: Road Map for Energy and Resource efficiency ...........................................122 

Table 12-6: Road map for Computerization and E-Governance ..................................123 

Table 12-7: Technical Assistance for Elected representatives ........................................124 

Table 12-8: Technical Assistance for ULB staff ....................................................................125 

Table 12-9: Road map for Accounts & auditing and Institutional Management ......127 

Table 12-10: Road map for implementation of all projects ............................................128 

Table 12-11: Reform Agenda Municipal Service Delivery ...............................................129 

Table 13-1: Land Assets ñ Proposed use ..............................................................................133 

Table 13-2: Income Details from Remunerative Assets ....................................................134 

Table 13-3: Income from Proposed new Projects..............................................................134 

Table 13-4: New Assets for the year -2009-10 to 2013 -14 ................................................135 

Table 14-1: Projects to be executed by the Municipality ................................................136 

Table 14-2: Projects to be executed by Other Agencies ................................................138 

Table 14-3: Projects under Implementation by the Municipality ...................................138 

Table 14-4: Multi Year Investment Plan and Means of Finance .....................................139 

Table 14-5: Consolidated Means of Finance .....................................................................145 

Table 14-6: Ratio of Property Tax ..........................................................................................147 

Table 14-7: Water supply Charges - Existing .......................................................................148 

Table 14-8: House Service Connections - Percentage ....................................................149 

Table 14-9: Sewage Charges ................................................................................................150 

Table 14-10: Assumptions - Increase in Expenditure .........................................................152 

Table 14-11: Assumptions ñ O&M ..........................................................................................152 

Table 14-12: Assumptions ñ Provision of doubtful debts ...................................................153 

Table 14-13: Assumptions ñ Property tax collection ..........................................................153 

Table 14-14: Assumptions ñ Profession tax ...........................................................................154 

Table 14-15: Assumptions ñ Other Non Tax Income ..........................................................154 

Table 14-16: Assumptions ñ Water Charges ........................................................................154 


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Table 14-17: Assumptions ñ Drainage Charges .................................................................154 

Table 14-18: Terms of Loan Funding for Proposed Investments ......................................154 

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

.....................................................................................................................................................156 

Table 14-20: Balance Sheet - Consolidated Balance Sheet for next 20 years (up to FY 

2028 ñ 29) ...................................................................................................................................158 


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Chapter ñ 1 Final Report: Gudiyattam Municipality 

1 BACKGROUND AND METHODOLOGIICAL 

FRAMEWORK OF THE STUDY 

1.1 BACKGROUND 

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

Gudiyatham Municipality in strengthening and improving its financial position for 

effective capital investment management and urban service delivery. The 

municipality has good potential for immediate implementation of financial reforms 

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

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

municipality with the vision of stakeholders growth of the town. 

1.2 OBJECTIVES 

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

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

activity mix / growth; 

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

gap in services with respect to the vision; 

3. Broadly outline the infrastructure needs; 

4. Define specific rehabilitation of infrastructure and capital improvement needs 

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

5. Indicate the priority of projects 

6. Define revenue enhancement and revenue management improvements 

required to sustain the rehabilitation proposed; 

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

public private partnership in infrastructure development 

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

to promote integrated development 

1.3 SCOPE OF WORK: 

The scope of work covers the following: 

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

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

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

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

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

dues, pension etc) and a review of revenue and service management 

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

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

services. 

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

service levels and coverage and institutional constraints. Develop quick 

indicators of performance, based on the following: 

Current coverage and additional population during medium term (10 

years) 

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

city wide infrastructures. 

To improve service coverage and asset quality 

Define priority assets and indicative costs of rehabilitation 

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

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

project. 

Explore funding options for rehabilitation facilities. 

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

works for the ULBs and shall present the following. 

A. Areas of reduction in expenditure 

Energy audit resulting in savings energy. 

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

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

composting etc, items of revenue can be identified. 

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

resulting in increasing operating surplus. 

Water recycling /refuse 

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

Privatization & options for raising revenue 

B. Options for increasing the revenues through non traditional methods 

Land development for raising revenues 

Suggestions for improvement of revenues. 

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

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

Performance Benchmarks to be monitored along with other financial targets 

and outputs from the financial and operating plan. 

6 Initiate consultations with council and local stakeholders on the priorities 

redefine priorities. 

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

priorities and commitment to implement revenue and management 

improvement measures. 

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1.4 STAGE III: DRAFT FINAL STAGE 

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

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

the revenue enhancement measures required to sustain proposed 

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

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

action plan to sustain investments based on capital investment needs listed 

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

implementation and action plans to sustain investments based on the capital 

investment needs. 

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

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

Municipal Council to effectively implement the proposed urban reforms in the 

CCCBP. 

1.5 PRESENTATION AND DISCUSSION WITH REVIEW COMMITTEE 

The review meeting for Revised Draft Final Report was held on 23 rd June 2009 at the 

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

below: 

COMMON POINTS 

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

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

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

operate all the new schemes. 

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

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

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

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

phasing of the projects identified. 

b) The assumption made on the means of finance. 

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

of finance have been added in the executive summary under the table ë 

Projects Identified for implementation based on financial positioní in the 

executive summaries. 

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TOWN SPECIFIC COMMENTS 

Ranipet 

Address the requirement of staff quarters and indicate the same as a project 

in CIP in consultation with the ULB. 

The staff quarters (24 units) at a proposed cost of Rs.150.00 lakhs has been 

added to the CIP in consultation with the ULB. 

Update the details on the Bus Stand project at Muthukadai adjoining Pinji 

Lake in consultation with the ULB. 

As bus stand cannot be proposed on ëland under water bodies ë, an 

alternate site for the proposed bus stand needs to be identified by the 

Municipality. The details are given in section 10.1.6 chapter -10 

Highlight the impact on discharge of polluted water in to Palar river. 

The impact of effluent discharge into River Palar has been highlighted in 

section 5.3 of chapter 5 based on various reports prepared by NEERI, TNPCB , 

CPCB and Palar River Basin Management and Development Board. 

Thiruvathipuram 

The consultants were requested to 

Update the details on the assets in consultation with the ULB. 

The details of assets have been updated under section 13.2.1 of chapter 13. 

Revise the Bus Stand improvement project in consultation with the ULB. 

The cost for proposed shopping complex and lodge inside the bus stand is 

revised in consulting with ULB and revised cost is mentioned in section 10.1.6 

chapter ñ 10. 

Madhavaram 

The consultants were requested to revise the assumptions on means of 

finance in accordance with JNNURM norms and revise the FOP 

accordingly. 

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

scheme. The assumptions are give in the table ëProjects Identified for 

implementation based on financial positioní in the executive summary. 

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

in Annexure I d. 

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1.6 DISCUSSION WITH STAKEHOLDERS 

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

commissioner, Councillors and NGOís of the project town. A base plan was 

prepared for the visit to the project towns during the month of October ë08. The 

objective of the stakeholder meeting was to discuss about the needs of CCCBP and 

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

drainage, roads, social infra structures, etc. 

Stakeholderís Meeting 

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

meetings and the councillors and NGOís were requested to mention the issues on 

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

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

Councillors, NGOís and Engineers, infrastructure requirements for the present and 

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

the following chapters. 

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Chapter ñ2 Final Report: Gudiyattam Municipality 

2 TOWN PROFIILE 

2.1 GUDIYATTAM . . . TOWN PROFILE 

Gudiyattam is a Grade I municipality located in the district of Vellore in the 

Gudiyattam Taluk. It is located at a distance of 32 km from the district headquarters. 

Initially the people from nearby villages started settlements on the bank of River 

Goundanya. These settlements slowly developed and thus formed the present 

Gudiyattam Town. 

Gudiyattam municipality is connected through roads with Palamaner in Andhra 

Pradesh, Vellore and Katpadi on the east, Ambur and Krishnagiri on the West, 

Vaniyambadi and Thirupathur to the Southwest. The town is geographically located 

at 12 57í Northern latitude and 78 52í Eastern longitudes. 

2.2 REGIONAL CONNECTIVITY 

It is connected to the town of Palamaner in Andra Pradesh, Thiruthani, Vellore and 

Katpadi on the east, Ambur and Krishnagiri on the West, Vaniyambadi and 

Thirupathur to the South West. 

Road 

Gudiyattam Town is well connected by Road and Rail. The town has good 

accessibility to Chennai ñ Bengaluru industrial Corridor of Excellence through SH. The 

State Highway passing through the town connects the town with the surrounding 

urban centres. Gudiyattam is about 170 Km west of Chennai and 165 Km southeast 

of Bangalore. 

Rail 

The town is located nearby the Katpadi-Jolarpettai railway line connecting 

Bengaluru and Chennai which connects the town with industrial centres and major 

urban nodes. 

Air 

The nearest airport is in Chennai at a distance of 170 km and the Bengaluru airport is 

in located at a distance of 165 Km from the town. 

2.3 HISTORY OF THE MUNICIPALITY 

Gudiyattam was upgraded to Grade I municipality as per G.O.Ms.No.143 dated 

25.01.1973 RD & LA Department. Gudiyattam Municipality was constituted as third 

grade in the year 1886. The area of the town is 4.93 sq.km. The town has a 

population of 91,452 as per the 2001 census data. 

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2.4 POPULATION CHARACTERISTICS 

2.4.1 Population Distribution 

Figure 2.1: Map of Vellore District 

The Table 2.1 shows the distribution of urban population in Tamil Nadu and Vellore 

District. 

GUDIYATTAM 

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

NAME Total Population % Distribution of Urban Population wrt 

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District 

Tamil Nadu Urban 27,483,998 - 

Vellore District 3,477,317 100 

Vellore District Urban 1,307,998 37.62 

Gudiyattam (M) 91,452 2.63 

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


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2.4.2 Population Growth 

The townís population growth rate is not uniform and varies from 1% to 3%. The 

growth rate during 1961-71 and 1971-81 is above 2% and then gradually decreases 

to 1%. The decadal growth rate of the past few decades is given in the table below. 

Table 2-2: Population Growth in Gudiyattam Municipality 

Census Year Population Variation Growth rate in % 

1961 50384 578 1.03 

1971 63007 3221 2.51 

1981 76408 3163 2.13 

1991 83,232 6,824 0.89 

2001 91,452 8,220 0.99 

Source: Compiled from Primary Census Abstract of Tamil Nadu, Census of India - 

2001 

Growth Rate 

Source: Census of India, 2001 

2.4.3 Population Projections 

5 

4 

3 

2 

1 

0 

1941 - 1951 1951 - 1961 1961 - 1971 1971 - 1981 1981 - 1991 1991 - 2001 

Gudiyatham Municipality 

Figure 2-2: Decadal trend of population growth 

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

population of the town has been projected and given in the table below 

Source: Estimated 

Table 2-3: Population projection 

Year Population Growth Rate in % 

1991 83,232 0.89 

2001 91,452 0.99 

2007 97,367 1.05 

2009 99,540 1.11 

2011 1,01,783 1.12 

2016 1,07,878 1.17 

2020 1,13,150 1.20 

2025 1,20,282 1.23 

2030 1,27,990 1.25 

2035 1,36,528 1.30 

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2.4.4 Population Density 

The population density in Gudiyattam municipality during 1991 was 169 persons per 

ha which has increased to 186 persons per ha in 2001. The ward population density 

in 2001 varies from 95 persons per ha to 169 persons per ha. 

Attributes Area 

Table 2-4 Comparative Population Density 

(Sq. Km) 

Total 

Population 

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Density (Persons 

per Sq. Km) 

Density 

(Persons per Ha.) 

1991 4.93 83,232 16883 169 

2001 4.93 91,452 18550 186 

Source: Compiled from Primary Census Abstract of Tamil Nadu, Census of India ñ 

2001 

2.4.5 Slum Population 

There are a total of 9 notified slums in Gudiyattam municipality and 14 un-notified 

slums with a population of 8,651 and 7,774 respectively. Thus, the total population of 

the slums is 16,425 with 2,737 households i.e. 18% of the population living in slums in 

the town. 

2.4.6 Sex Ratio 

Sex ratio is a sensitive indicator of the status of women in society. The sex ratio in 

Gudiyattam municipality is 1011 females per 1000 males as per Census 2001. The Sex 

ratio in Gudiyattam is higher when compared with the district and state sex ratio. 

The comparative sex ratio of state, district and town is given in the table below. 

Table 2-5: Comparative Sex Ratio 

Particulars Sex Ratio Sex Ratio 0-6 

Tamil Nadu Urban 982 955 

Vellore District 997 943 

Vellore District Urban 1003 960 

Gudiyattam (M) 1011 947 

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

2.4.7 Literacy 

Literacy is one of the important social indicators. There are 64767 literates in 

Gudiyattam municipality. The literacy rate is 79.68%. The literacy rates of State, 

District and the town is given in the table below 

Particulars 

Table 2-6: Comparative Literacy 

Literacy Rate 

Person Male Female 

Tamil Nadu 73.45 82.42 64.43 

Tamil Nadu Urban 82.53 88.97 75.99 

Vellore District 72.36 81.99 62.79 

Vellore District Urban 80.46 87.77 73.22 

Gudiyattam (M) 79.68 87.57 71.93 

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


Limited


3 ECONOMIIC DEVELOPMENT AND PHYSIICAL 

PLANNIING 

3.1 URBAN ECONOMIC DEVELOPMENT - SITUATION ANALYSIS 

Gudiyattam is an important centre for trade, small scale manufacturing industries 

and handloom industry in Vellore district located on the Katpadi-Jolarpettai railway 

line connecting Bengaluru and Chennai. The major industrial activities in 

Gudiyattam are textile, tanneries, rice mills, safety matches, beedis, engineering 

works, saw mills and food processing mills. A Sugarcane Research institute is located 

in Melalathur, Gudiyattam, started in 1935 under the Imperial Council of Agricultural 

Research. 

Gudiyattam is an important centre for handloom activity in the district. Gudiyattam 

is famous for its lungi manufacturing. Other than these, there are two cotton mills in 

production at Gudiyattam. 

3.1.1 Occupational Pattern 

According to 2001 census, the work force participation rate (WFPR) in Gudiyattam is 

40.6%. There are 37,155 total workers, out of which there are 34,851 main workers 

and 2,304 marginal workers. The marginal and main workers account for 93.80% and 

6.20% the total workforce respectively. Table 3.1 and 3.2 shows the work force 

participation rate and occupation pattern of Gudiyatham municipality. 

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

NAME Total 

Population 

Total Workers WFPR % Main 

- 21 - 

Workers 

% 

Marginal 

Workers 

Tamil Nadu 62,405,679 27878282 44.67 85.22 14.78 

Tamil Nadu Urban 27,483,998 10318514 37.54 91.75 8.25 

Vellore District 3,477,317 1427180 41.04 82.17 17.83 

Vellore District Urban 1,307,998 444958 34.02 91.91 8.09 

Gudiyattam (M) 91,452 37,155 40.63 93.80 6.20 

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

3.1.2 Classification of Main Workers 

Out of the main workforce, about 0.5% of main workers are cultivators, 1.6% are 

agricultural labourers and 33% of workers are engaged in household industries. The 

remaining 64% workers are included in ëother workersí category. 


Limited


Table 3-2: Sectoral Occupational classification of Main Workers in Gudiyattam Town 

NAME Main 

Workers 

Cultivators 

(%) 

Agricultural 

Laborers (%) 

- 22 - 

Workers in 

HH Industry 

(%) 

Other 

Workers (%) 

Tamil Nadu 23757783 19.95 25.52 5.31 49.23 

Tamil Nadu Urban 9467240 3.41 9.11 6.05 81.43 

Vellore District 1172645 19.86 19.85 11.64 48.66 

Vellore District 

Urban 

408969 2.17 4.47 13.69 79.67 

Gudiyattam (M) 10049 0.49 1.62 33.86 64.03 

Source: Compiled from Primary Census Abstract, Census of India 2001(All the figures 

in %age) 

3.2 PHYSICAL PLANNING 

3.2.1 Physical Growth Trend 

The town is strategically located near to Jolarpettai - Katpadi BG railway line 

connecting Chennai and Bengaluru, and is located near the Industrial Corridor of 

Excellence. The River Goundanya flows through the town towards southeast and 

joins with River Palar. The Katpadi main road, Palamaner road connecting Chittoor 

and the Railway Station road connecting to Vellore are the major roads within the 

town. 

Major Commercial areas have developed on the northern side of the river near 

Robinson Tank called ìDharnamper Bazaarî and on the southern side of the river 

called ìThalayatham Bazarî. 

As the town is situated near to the Chennai ñ Bengaluru Industrial corridor of 

Excellence, the growth of the town is more towards Vellore on the east. The major 

growth directions of this town are towards Chittoor in the northeast direction and 

towards Vellore and Katpadi in the east. The south and west of the town is 

surrounded by agricultural lands and thus the growth on these sides is limited. 

3.2.2 Land Use Analysis 

According to the existing Land use pattern 2002, the developed land in the town 

constitutes 69% of the total area of the town. Land under agriculture is 20% and 

water bodies 11%. Among the developed land, the Residential area constitutes 43 

%, Commercial 5 %, public and Semi public about 0.12 %. 

The total undeveloped area in the town is 31%, of which 20% comes under 

agricultural land. The water covers a large area as the river Goundanya flows 

through the town. The land use pattern of Gudiyattam municipality is given in the 

table below 


Limited


Table 3-3: Existing Landuse in Gudiyattam in 2002 

S.No. Land use Area in Hectares % to Total Area 

DEVELOPED AREA 

1 Residential 211.35 42.90 

2 Commercial 25.35 5.15 

3 Industrial 24.71 5.02 

4 Educational / Institutional 11.11 2.25 

5 Public & Semi Public 5.69 0.12 

6 Transportation 58.58 11.89 

Total Developed Area 336.79 68.35 

UNDEVELOPED AREA 

7 Agricultural 99.95 20.29 

8 Water bodies 55.97 11.36 

Total Undeveloped Areas 155.92 31.65 

Grand Total 492.71 100.00 

Source: Master Plan, Municipality of Gudiyattam 

3% 

7% 

Figure 3-1: Existing Landuse 2002 

Source: Master Plan, Municipality of Gudiyattam 2002 

3.2.3 Land rates 

2% 

8% 

17% 

The land rates are high in Kanagamukkalabatha Muniyaba Chetty Street is Rs. 

8036/sq.m, and low in Gopallapuram Attrora Street (Chekumedu) i.e. Rs. 469/sq.m. 

The land values in Gudiyattam town are given below. 

Table 3-4: Land Values in Gudiyattam Town 

Ward no. 

Housing Site 

Minimum Values Rs./Sq.M Maximum Values Rs./Sq.M 

Ward. 1 610 1349 

Ward.2 178 2776 

Ward. 3 65 2782 

Ward. 4 467 1227 

Ward. 5 196 2537 

Source: Sub Registrar Office Gudiyattam 

3.3 GROWTH MANAGEMENT ISSUES 

Gudiyattam municipality has good accessibility to Vellore, the district head 

quarters and directly connected with the Chennai ñ Bengaluru industrial Corridor 

of Excellence through State Highways. This linkage is expected to stimulate the 

- 23 - 

63% 

Residential 

Commercial 

Industrial 

Educational / 

Institutional 

Public & Semi 

Public 

Transportation 


Limited


small scale industrial growth already existing in the town, which will enhance the 

socio economic condition of the town. This will result in the rapid encroachment 

upon agricultural lands due to the growing demand for housing and industries. 

Retaining existing agricultural base in the surrounding rural areas for equitable 

growth is a must. Controlling and guiding urban sprawl in a phased manner 

applying modern principles of physical planning and growth management is 

suggested. 

Necessary basic infrastructure facilities including housing, health, education and 

recreational facilities need to be provided to achieve better standard of living. 

Need for strengthening of regional linkages for capitalising on the economic 

development of the region. 

The Goundanya River and Palar River are the major source of drinking water in 

the town. The water bodies also serve as the recharge system for underground 

aquifers and flood accommodators during monsoon. River Conservation plan for 

Palar River and Goundanya River is necessary. The Palar River Basin 

Management and Development Board (PRBMDB) endeavours the primary role in 

sustainable water resources planning and management in an integrated 

manner covering the activities of all departments concerned. The Goundaya 

River conservation plan need to done through Water resources department. 

- 24 - 


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4 STAKEHOLDERS CONSULTATIIONS 

The purpose of stakeholder consultation is to provide an opportunity for the 

stakeholders to involve in preparation of development plan for the town. The 

planning process need to be a consultative one, with stakeholders representing a 

wide spectrum of interests in the formulation of a vision, development objectives 

and identification of priority projects. 

4.1 CITY OPINION SURVEY 

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

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

stakeholders of the Municipality. The rationale behind conducting surveys in two 

stages was to evolve a broad vision for the municipality considering the problems, 

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

finding of the surveys conducted was included in the inception report. The analysis 

and findings of stake holderís consultations are detailed below: 

4.2 KEY ISSUES HIGHLIGHTED IN THE CONSULTATION MEETING 

The key issues highlighted during the stakeholders consultation meeting are given 

below 

1. Need for Under Ground Sewerage System in the town 

2. Need for parks and playground for recreation 

3. Development of industrial complexes for economic development 

4. Privatization of Operation and maintenance of street lights and Solid waste 

management 

5. Modernization of Burial grounds with basic facilities 

6. Improve the tax collection mechanism through reforms 

7. Need for new water supply scheme for better drinking supply 

8. Law enforcement and regular monitoring on match box factories 

9. Dying effluents discharged into water bodies without treatment 

4.2.1 Sector Prioritization 

Projects identified in the city development plan cannot be taken at one step for 

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

phasing of the projects based on stake holderís priority could be a viable option 

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

asked to prioritize the sectors pertaining to Physical infrastructure, Social 

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

- 25 - 


Limited


4.2.1.1 Physical Infrastructure Priority 

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

sectors related to Physical infrastructure on the following order: 

1. Under Ground Drainage 

2. Drinking Water Supply 

3. Road Network 

4. Storm Water Drainage 

5. Parking facilities 

6. Solid Waste Disposal 

7. Street lighting 

8. Transport 

120 

100 

80 

60 

40 

20 

0 

Source: From Stake Holderís Survey 

Figure 4-1: Priorities for Physical Infrastructure 

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

prioritized if it gets 0 score. 

4.2.1.2 Social Infrastructure priority 


sectors related to Social infrastructure on the following order: 

1. Schools and Colleges 

2. Health facilities 

3. Parks, Playfields 

4. Public transport 

5. Market 

50 

60 

Transport Street 

Lighting 

70 

Parking 

Facilities 

60 

Solid waste 

Disposal 

80 

Strom 

Water 

Drainage 

- 26 - 

100 

90 

UGD Drinking 

Water 

80 

Road 


Limited


6. Public Toilet 

7. Community hall 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

60 


Figure 4-2: Priorities for Social Infrastructure 

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

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

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

facilities as one of their high priority sector. 

4.2.1.3 Environmental Issues 


Environmental Issues on the following order: 

1. River/Lake 

2. Water Pollution 

3. Open drainage 

4. Land Pollution 

5. Air pollution 

6. Noise Pollution 

40 

80 

Market Public Toilet Parks and 

Recreation 

40 

- 27 - 

90 90 

Community Hall Health Facilities Schools and 

Colleges 

75 

Public Transport 


Limited


120 

100 

80 

60 

40 

20 

0 

65 

0 

25 

Open Drain Noise Pollution Land Pollution Water Pollution Air Pollution River 


Figure 4-3: Priorities for Environmental Protection 

- 28 - 

80 

10 

100 


Limited


5 VIISIION AND STRATEGIIC PLAN 

A vision statement is a primary step to where a town wishes to be in the next 25-30 

years as its preferred future. It is a realistic and reliable statement, reflects the 

competitive advantages, preferences & values of city dwellers, physical 

characteristics, historic and cultural characteristics and relation to regional and 

local economies. Vision gives a sense of direction and purpose to the plan, focus on 

and encourage creative solutions in an open manner building in interest and 

commitment. 

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

is based on stakeholder feedback and analysis of the town. 

5.1 TOWN LEVEL SWOT 

SWOT analysis is made for the town in its regional context. The SWOT for Gudiyattam 

Municipality with reference to its regional context is given in the table below: 

Table 5-1: Town level SWOT 

Strength 

Located on State Highway connecting with the 

Weakness 

Chennai ñ Bengaluru Industrial Corridor of 

Excellence Lack of public utility Infrastructure 

Absence of recreational facilities that is, parks 

Located on Jolarpettai ñKatpadi Railway line and play fields. 

Centre for small scale industries, trade and Environmental pollution affecting land, water and 

handloom industry(lungies) 

Access to world class medical facilities at CMC , 

Vellore and Ida Scudder , Ranipet. 

Taluk Headquarter to Gudiyattam Taluk 

air. 

Traffic congestion due to encroachments and 

narrow roads 

Oppurtunities Threat 

Availability of cheap unskilled and semi skilled Poor road surfaces leading to dusty / unsafe 

labour force. 

conditions and stagnation during monsoons. 

Well established educational and administrative Low awareness levels regarding importance of 

facilities in the district 

treating industrial effluents, 

Proposed leather Goods SEZ by TN Govt. at Drastic reduction in agricultural activities due to 

Ranipet and SEZ at Katpadi 

Proposed IT park at Vellore by ELCOT, expected 

land pollution and lucrative industrial jobs. 

to provide direct and indirect employment 

opportunities to more than 20,000 persons. 

5.2 VISION FORMULATION 

Using the results of the analysis combined with consultations with key stakeholders 

and civic societies, vision formulation is meant to develop a perspective for 

development of the town. 

The vision for the town is proposed as ìTo be a center for industrial activities 

supplemented with the necessary infrastructural facilities and amenities to provide 

better standards of living conditions for living in the town.î 

- 29 - 


Limited


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

mission statements are evolved. 

Mission 1: 

To achieve a Financially and infrastructure wise self sustainable city by 2015 so as to 

prepare Gudiyattam as competing City for induced investments 

5.3 STRATEGY OPTION FOR ECONOMIC DEVELOPMENT 

1. Benefit from the proximity to Chennai ñ Bengaluru Industrial corridor of 

Excellence 

Industrial parks, Special Economic Zones, information technology parks and 

integrated townships are expected to come along the proposed Chennai ñ 

Bengaluru industrial corridor of excellence. The objective was to provide ìglobally 

competitive infrastructure and promote inclusive and sustainable industrial 

development.î The town as being center for small scale and cottage industries, 

connected by SH 127 with the corridor, can leverage opportunities for employment 

generation and development of trade which would ensure inclusive, sustainable 

and balanced economical growth. 

Figure 5-1: Chennai-Bengaluru Industrial corridor of excellence 

2. Establishment of Handloom Export Zones 

To encourage the export trade of handloom products, ëHandloom Export Zonesí 

can be declared in Gudiyattam. These Handloom Export Zones are being 

developed jointly by the Department of Handlooms and Textiles and the Handloom 

Export Promotion Council (HEPC). Under the above project, emphasis is laid on skill 

upgradation and design development for the weavers for producing export 

- 30 - 


Limited


varieties and would be linked with the leading exporters, helping the weavers to 

earn more wages. 

3. Effort to boost up small scale and cottage industries 

The town has, Handloom, tanneries, rice mills, safety matches, beedis, engineering 

works, saw mills etc. in and around the town. The small scale and cottage industries 

and can be encouraged by giving assistance and concessions through support 

schemes and programmes of the Government. 

4. Promote marketing of handloom goods 

Marketing Promotion Programmes like Publicity and Exhibitions, setting up of 

Marketing Complexes, Participation in trade fairs, Increasing capacity building in 

entrepreneurship and marketing skill of weavers will open new marketing avenues. 

5. Livelihood enhancement for weavers through schemes and programmes for 

social development 

There are lot of support institutions and schemes to supplement weaving activities. 

The Institutions like Weavers Service Centre, Co-optex, National Institute of Design 

are in place to support the Handloom Cluster in Tamil Nadu. One could also see 

academic Institutions for importing textile technology. Development of such 

Supportive Technical Institutions will pave easy access for the goods of Cluster. 

Implementing various schemes and centers such as Handloom Development 

Centre, setting up of common facility center, Project Package Scheme, Help 

Package Scheme, Weavers Welfare scheme on Insurance coverage, Housing 

scheme for weavers may further encourage the production and marketing. 

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

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

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

stimulate industrial development. 

Proactive physical and social infrastructure provisioning. 

Development of SEZs, Export Zones and Expansion/Establishment of Industrial 

complexes/parks 

Improving the transportation network connecting the towns and industrial 

clusters will act as development catalysts for surrounding rural areas 

Improve mobility within the town and the surrounding 

Sustainable communities encompassing places of work, stay and assembly. 

- 31 - 


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6 HOUSIING IINCLUDIING SLUMS 

6.1 EXISTING HOUSING SCENARIO 

6.1.1 Housing Condition 

The town has 15,993 dwelling units out of which 10,975 units are permanent 

structures. 2,345 units account for Semi-permanent and the remaining 2,673 units are 

temporary. Out of the temporary structures 771 are non-serviceable units 

Figure 6-1: Housing Condition 

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

India, 2001 

6.1.2 Housing Stock 

As mentioned earlier, there are total 17,130 residential units in the town out of which 

15,993 are used by the people for living purposes as per census 2001 

accommodating 19309 households. The Household size of Gudiyattam Town is 5, 

which is marginally less than district Urban i.e. 5 in the year 2001. 

Table 6-1: Existing Housing Stock 

Population No. of Households Average HH Size 

Tamil Nadu Urban 27483998 6381600 4.31 

Vellore District 3477317 756365 4.60 

Vellore District Urban 1307998 272982 4.79 

Gudiyattam (M) 91452 19309 4.74 

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

- 32 - 


Limited


6.2 EXISTING SLUM SCENARIO 

6.2.1 Slum Population 

There are 9 notified slums and 14 non-notified slums are identified with a population 

of 16,425 (2,737 Households), which account for 18% of the total population in the 

town. The location of slums are shown in figure 6.2 

6.2.2 Slum Profile 

Slums have developed in the wards 1, 2,4,7,12,14,15,17,25, 28, 29, 31, 33, 34and 36 

resulting into unhealthy living conditions. 

Table 6-2: Slum Details 

S.No. Slum details Ward. No Population Household 

1. Subedhar Arani Nanumiyan street 1 1210 246 

2. New Aliyar street 2 426 184 

3. Sudhandira veethi west 4 452 64 

4. Kaspa Gowthampet 7 1339 164 

5. R.S. Nagar Colony 12 1059 238 

6. Arunthathiyar colony 12 536 121 

7. Ambedkar Nagar 14 594 73 

8. Sedukkarai Colony 15 1227 91 

9. Sivarajapuram 17 235 27 

10. Bhuvaneswaripet 25 521 78 

11. N.S.K. Nagar 28 317 167 

12. Nellorepet Budhar Nagar Colony 29 1035 109 

13. Cheruvangi Colony 31 1009 205 

14. Periyar Nagar 33 609 167 

15. Mousanpet 34 839 132 

16. Thalayatham Colony 36 722 110 

17. Lal Bhagadur Sastry Nagar 12 480 27 

18. Jothi madam 36 107 11 

19. 

Arani Nanumiyan street, Yahoob st, Gosha 

Gulamudeesn street 

1 1218 138 

20. 

Alanthur Dhadamiyan street, Neelikollai 

street 

1 726 102 

21. Thiruvalluvar Nagar Vinayagar koil street 3 345 29 

22. Zubethar Nagar 6 839 132 

23. Busveswara Thoppu street 1,2,3 25 580 122 

TOTAL 16425 2737 

Source: Municipality of Gudiyattam 

- 33 - 


Limited


Figure 6-2: Location of slum ñ Gudiyattam Municipality 

Table 6-3: Details of infrastructure available in slums (As per ISHDP report out of 23 

slums pockets clumped /reduced to 18 slum Pockets) 

S. 

No. 

Ward. 

No 

Water Supply Sanitation Roads Streetlight 

Public 

Stand Post 

(Nos) 

Hand 

Pumps 

(Nos) 

Septic tanks(No 

of House hold 

Covered) 

- 34 - 

Pucca 

(km) 

Katcha( 

km) 

1. 7 10 - 79 1.730 - 39 

2. 13 10 - 60 1.120 - 36 

3. 14 4 - 51 0.450 .310 18 

4. 15 7 15 47 1.050 - 86 

5. 25 4 - 5 0.250 .150 26 

6. 29 5 3 47 0.450 .400 21 

7. 31 5 - 23 0.950 - 27 

8. 33 5 - 27 0.900 - 18 

9. 36 7 - 45 0.900 .150 30 

10. 1 16 19 107 1.36 0.600 51 

11. 2 11 5 269 0.750 .100 28 

12. 3 2 2 76 0.350 - 21 

13. 4 2 2 77 0.600 - 9 

14. 12 6 1 36 0.950 .150 24 

Nos 


Limited


15. 17 2 1 36 0.600 - 14 

16. 26 9 1 47 0.350 .300 14 

17. 28 9 1 32 0.900 .630 21 

18. 34 10 4 63 0.500 .350 21 

Total 18 124 54 1127 14.26 2.79 504 

6.2.3 Slum Improvement Programme 

Currently, only Integrated Housing and Slum Development Program (IHSDP) is in 

operation for slum improvement in Gudiyattam town. This programme is taken up by 

Gudiyattam and now under operation. 

6.3 ISSUES 

Threat to health & hygiene in turn provoking attack of epidemics due to provision 

of drainage is not satisfactory 

Due to improper monitoring and implementation of development regulation 

more than one-third of the town population lives in slums (18% of the total 

population live in slums) 

Lack of access to services in wards where dominance of slum prevails and on 

the land developed for housing by private developers 

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

municipal limits 

Lack of awareness among slum dwellers regarding health and hygiene 

Lack of planned interventions in the past 

- 35 - 


Limited


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

unaffordable land supply within municipal limits 

Increasing inadequate serviced land for housing within municipal limits 

Lack of awareness regarding health and hygiene 

Unregulated physical development 

6.4 PROPOSAL 

Table 6-4: Proposal for Integrated Housing and Slum Development Programme 

(IHSDP) 

Name of the Work 

S. 

No 

Name of the Slum 

Shelter OHT Drain 

C. C. 

Road 

Street 

Light 

Total 

1 Kaspa 

( Gowthampet colony ) 

29.40 3.45 -- 10.00 0.70 43.55 

2 R.S.Nagar ñ Katpadi Road 29.40 3.45 2.78 2.70 0.35 38.68 

3 Ambedkar Nagar 26.46 3.45 2.00 -- 0.70 32.61 

4 Chedukkarai colony 29.40 3.45 6.35 6.50 2.10 47.80 

5 Bhuvaneswaripet colony 19.60 3.45 6.35 9.60 0.70 39.70 

6 Nellorepet colony 17.64 3.45 6.35 9.60 0.70 37.74 

7 Cheruvangi colony 17.64 3.45 6.35 6.50 0.21 34.15 

8 Periyar Nagar 29.40 -- 6.35 6.50 0.42 42.15 

9 Thalayatham colony & Jothi 

Madam 

12.74 3.45 6.35 9.20 0.35 32.09 

10 Alathur Dhadhamiyan street, 

Neelikollai st., Arani 

Nannumiyan st., Yakub st., 

Gosha Gulam sahib street & 

Jubethar Nagar 

20.58 -- -- 6.40 0.70 27.68 

11 Asanallipet (Madhar street) & 

New Aliyar 1,2 & 3 streets. 

11.76 -- 8.60 2.00 0.70 23.06 

12 T.V.Nagar 

( Vinayagar Koil street ) 

11.76 -- 4.00 -- 0.14 15.90 

13 Sudhandra Veedhi ( West ) 4.90 -- 1.50 1.10 0.35 7.85 

14 Lal Bahadur Sastri Nagar, 

Arunthathiyar colony 

23.52 -- 8.60 2.15 0.63 34.90 

15 Sivarajapuram 14.70 -- 0.90 -- 0.63 16.23 

16 Basweswara thoppu I, II & III 

street 

10.78 3.45 -- 9.60 0.70 24.53 

17 N.S.K. Nagar 23.52 3.45 9.50 8.80 0.63 45.90 

18 Mousanpet -- 3.45 -- 4.70 0.70 8.85 

TOTAL PROJECT COST 333.20 37.95 75.98 95.35 11.41 553.89 

Source: Gudiyatham Municipality 

6.5 PROPOSAL 

Proposal has been prepared for ISHDP scheme at an outlay of Rs. 553.89 Lakhs for 

improvement and up-gradation of shelter as well as other amentias in slum 18 slum 

areas. The nature of work is to be taken under this scheme as follows. 

- 36 - 


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7 IINSTIITUTIIONAL FRAMEWORK 

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

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

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

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

consists of Elected Council and Executive wing. 

7.1 ELECTED COUNCIL 

The Elected Council, the political wing consists of 36 elected councilors. Each 

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

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

municipal council and he is assisted by vice chairman. 

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

have been constituted namely: 

Appointment committee 

Agreement/Contract Committee 

Taxation Appeal Committee 

Local Planning Authority 

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

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

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

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

purview of the Appointing Committee. Contract Committee is another statutory 

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

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

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

- 37 - 


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GENERAL: Financial 

Administration 

and Budget & Accounts 

7.2 EXECUTIVE WING 

Figure 7-1: Organisational structure of Gudiyattam Municipality 

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

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

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

organization structure of the Municipality comprises of 5 functional departments 

namely, 

Executive Body 

Commissioner 

PUBLIC HEALTH: Sanitation, 

Drainage Public Health, 

Birth & death registration 

TOWN PLANNING: 

Planning, 

Designing and Approval 

1. General Administration 

2. Engineering and Water Supply section 

3. Accounts Section 

4. Public Health Section and 

5. Town Planning Section 

7.2.1 General Administration 

GUDIYATTAM 

MUNICIPALITY 

ENGINEERING: Water 

Supply, Road laying 

and Street lights 

REVENUE: Tax 

& Non Tax 

Collection 

Elected Body 

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

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

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

responsible for general supervision and Administration of Office. The Administrative 

wing looks after general administration of the Municipality including establishment 

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

Government and other departments, public relations, redressing of public 

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

- 38 - 

Chairman 

Vice Chairman 

Ward Councilor 


Limited


administration. All establishment matters are dealt with in the General 

Administration. 

7.2.2 Health Section 

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

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

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

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

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

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

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

7.2.3 Engineering Section 

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

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

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

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

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

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

after the above work. 

7.2.4 Town Planning Section 

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

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

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

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

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

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

works. 

7.2.5 Accounts Section 

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

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

discipline. Also look after the Actual based Accounting System. 

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

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

responsible for the entire collection of Revenue. 

7.3 CITIZENíS CHARTER 

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

published its ëCitizens Charterí during 1998 to bring ULBs functioning closer to the 

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

- 39 - 


Limited


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

chapter are to: 

Provide fast and quality services to citizens 

Inform the public about time limits to address the problems 

To provide transparency in administration 

7.4 INFORMATION CENTRE 

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

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

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

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

the spot. 

7.5 STAFF STRENGTH POSITION AND VACANCY POSITION 

As of now, there are 229 personnels are working in various sections of the 

municipality against the sanctioned strength of 342 post. There are 113 vacancies in 

the proposed staff strength norms. The details are given in the table below: 

Sl. 

No 

Name of the Post (Service wise) 

Table 7-1: Existing staff strength 

- 40 - 

Sanctioned 

strength 

Present staff 

strength 

General Services 

1 Manager 1 1 

2 Revenue Officer 1 0 

3 

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

Accounts) 

1 0 

4 Accountant 1 1 

5 Assistant Accountant 1 0 

6 Assistants 2 2 

7 Revenue Inspector 1 1 

8 Market Superintendent 1 0 

9 Junior Assistant 8 11 

10 Cashier 1 0 

11 Typist 2 2 

12 Revenue Assistant (Bill Collector) 6 10 

13 Store Keeper 1 0 

14 Record Clerk 1 2 

15 Office Assistant 8 8 

16 Assistant Programmer 1 1 

17 Data Entry Operator 1 1 

18 Night Watchman (Office) 1 1 

Total 39 41 

1 

Engineering Services 

Municipal Engineer Gr-II (AE/JE Cadre) 1 1 

2 

Assistant Engineer / Junior Engineer (Public Works 

/ Water Supply) 

3 0 


Limited


Sl. 

No 

Name of the Post (Service wise) 

- 41 - 

Sanctioned 

strength 

Present staff 

strength 

3 Draughtsman 1 0 

4 Work Inspector 3 1 

5 Tap Inspector 2 1 

Total 10 3 

Health Services 

1 Sanitary Officer 1 1 

2 Health Visitor 2 0 

3 Sanitary Inspector 4 4 

Total 7 5 

Health Service (Non Centralized) 

1 Maternity Assistant (Material & Child Health) 4 3 

2 Field Assistant 1 1 

3 Driver (Lorry, Motor or Tractor) 9 6 

4 Sanitary Supervisor 8 8 

5 Public Health Peon 1 1 

6 Ayah (Maternity and Child health) 4 3 

7 Sanitary Workers (All type) 251 153 

Total 278 175 

Maternity Centre , General Dispensary, Ayurvedic / Siddha Dispensary 

1 Medical Officer 1 1 

2 Pharamacist 1 1 

3 FNA/MNA 1 0 

4 Night Watchman 1 0 

5 Sanitary Worker 1 0 

Total 5 2 

Town Planning Services 

1 Town Planning Officer Grade - II 1 0 

2 Town Planning Inspector 1 2 

3 Chainman 1 1 

Total 3 3 

Total 342 229 

7.6 ADDITIONAL STAFF REQUIREMENT 

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

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

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

In view of appointing Project Management Consultant for the proposed water 

supply and UGSS projects, Privatization of Solid Waste Management and 

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

the municipality need to be strengthened with the following personnel: 

Table 7-2: Additional Staff Requirement 

Sl No Name of the Post Section No. of Personnel 

1 Accountant for Infrastructure project General 1 

2 Revenue Inspector General 1 

3 Assistant Engineer/ Junior Engineer Engineering 3 


Limited


(WS, UGSS, UIDSSMT & IHSDP Projects) 

4 Overseers (UIDSSMT & IHSDP Projects) Engineering 1 

Total 6 

Source: Analysis and discussions with Municipal officials 

7.7 INSTITUTIONAL FRAMEWORK FOR SERVICE DELIVERY 

The responsibility for good governance and management is vested with the 

Municipality. Although, the municipality is responsible for overall development of 

the town including provision and maintenance of services, there are other agencies 

responsible for planning, development and provision of specific services. Such key 

stakeholders include: 

Table 7-3: Institutional Framework for Urban Service Delivery 

S.No Services Planning and design Implementing 

1 Master plan preparation and 

Updation 

- 42 - 

agency 

DTCP Municipality 

2 Water Supply TWAD TWAD 

3 Sewerage TWAD TWAD 

4 Drainage ULB ULB 

5 Solid waste Management ULB/CMA/TNUIFSL ULB 

6 Roads and Highways Highways dept / 

Municipality 

7 Bridges and water bodies Municipality / 

CMA/PWD 

Highways dept / 


Municipality / PWD 

8 Street Lighting Municipality/TNUIFSL Municipality 

9 Parks and playfields Municipality Municipality 

10 Health and Education GoTN / Municipality GoTN / Municipality 

11 Slum Development Municipality/ TNSCB Municipality 

12 Environmental protection TNPCB 

7.8 ORGANIZATION MANAGEMENT 

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

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

system. This could be overcome by certain specific options: 

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

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

the services as it requires an efficient personnel management. 

The organization and delivery mechanism in some of the important personnel 

intensive service sectors has to be modernized. To mention the important few 

particulars relate to Solid Waste Management, where large no. of workers 

and staff are involved, could be modernized resorting to localized and more 

efficient composting and Landfill system. This could be assigned to NGOs, 

voluntary organizations or even the respective resident associations in the 

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

This process not only will significantly reduce the burden of the Municipality in 


Limited


engaging workers and staff but also will improve its resource position either 

through substantial reduction in a cost of solid waste management and / or 

could improve in the resource position as a remunerative venture. 

Tamil Nadu Urban Infrastructure and Financial Services initiated action to 

identify Landfill site through GIS in combination with 2 or more municipality as 

a centralized disposal of solid waste. This will reduce the cost of solid waste 

management for each municipality. 

Privatizing the operation and maintenance of water supply system, 

collection of taxes and fees and maintenance of public assets particularly 

sanitary and public health units is a well known option. This could be taken 

up under joint venture between urban local body and private sector. 

- 43 - 


Limited


8 URBAN IINFRASTRUCTURE AND SERVIICES 

8.1 WATER SUPPLY 

8.1.1 Source of Water Supply 

The existing water supply scheme for Gudiyattam town was commissioned in the 

year 1908 with river Goundanya Maganadhi as source. This scheme was designed 

for the population of 22,650 @ 66lpcd. In Gudiyattam Town the main sources of 

water are from the Goundanya and Palar River. There are two waterworks schemes, 

where as first head work is located at Goundanya River at Bodipet, 2 km away from 

the town and the other is located at Palar River at Pasumathur which is 10 km away 

from the town. Since the Goundanya source was not a perennial source it was 

proposed to take the water from palar river which was commissioned during 1976. 

The Figure 8.1 & 8.2 shows the Bodipet & pasumathur head works. 

Figure 8-1: Bodipet ñ Collection well 

Figure 8-2: Pasumathur - Source 

- 44 - 

Voyants Solutions Private Limited


a) Bodipettai Head works on Goundanya river: 

The headwork comprises of 10 bore wells, 2 infiltration wells and 2 collection 

wells with pump room. About 15 LL per day have been pumped through 

200mm dia. CI pumping main for about 2 km distance. 

b) Pasumathur Head works on Palar river: 

This head works comprises of 2 intake wells with 7 infiltration wells & 7 Bore 

wells including 7 bore wells. The average pumping per day is 66.7 LLD 

including head works 1 & 2. These flow have been pumped through 350mm 

dia. C.I and PSC pipe respectively. 

The Table 8-1 shows the details of source and Head works for the Gudiyattam 

Municipality. Figure 8-3 shows the schematic diagram of Head works for the town. 

S. 

No. 

1 

Source Place of 

Installation 

of Intake 

Goundanya 

Mahanathy 

River 

2 Palar River 

Table 8-1: Details of Source and Head works 

Pump 

Bodipettai 

Head Works 

Pasumathur 

Head Works 

-I 

Pasumathur 

Head Works 

-II 

Collection 

Well Infiltration 

Well(Nos) 

- 45 - 

Bore 

Well 

(Nos) 

2 2 10 

1 3 2 

1 4 5 

Pumping 

Main 

200 mm CI 

Pipes ñ 

2 Km 

300/350 mm 

CI pipes ñ 

10 km 

350 mm PSC 

Pipes -10 km 

Voyants Solutions Private Limited 

Quantity 

Pumped 

15 LLD 

22.7 

LLD 

44 LLD 

At present the Gudiyattam Municipality has provided 6,379 individual connections, 

of which 6294 connections are domestic and 81 connections are non-domestic 

connections. The Municipality is maintaining 296 hand pumps and 92 mini power 

pumps. There are 347 Public Fountains and 314 borewells in all the wards. The total 

amount of water supplied per day is maintained about 57 lakh liters. Table 8-2 and 

8-3 shows the details of water supply connection and classifications of sources 

respectively. 

Table 8-2: Break up of Water Supply Connections 

S. No. Type No. of Connections Percentage of Total 

1. Domestic 6294 98.67 

2. Non-Domestic (Including 

Institutional) 

Total 6379 100.00 

Source: Compiled from data provided by Municipality, Gudiyattam. 

85 

1.33


Table 8-3: Classification of Sources of Water by type in Gudiyattam 

Location 

Total 

number of 

households 

Tap 

Source of drinking water 

Hand pump Tube well Well 

Any other 

Within Premises 9,239 6,416 270 1,230 1,304 19 

Near Premises 7,199 4,696 1,160 177 574 592 

Away 692 427 102 17 89 57 

Total 17,130 11,539 1,532 1,424 1,967 668 

%age of Households 67.36 8.94 8.31 11.48 3.90 

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

* As per the Primary Census Abstract the Number of Households in Gudiyattam are 

19309 

There are a total of 17,130 households out of which 9,239 households have the 

facilities with in the premises while 7,199 is located nearby and 692 are away from 

the premises. The most common source of water in the households is tap, hand 

pumps and wells. 

- 46 - 


Chapter -8 Final Report: Gudiyattam Municipality 

Figure 8-3: Schematic Diagram of Head works and Service Reservoirs 

- 47 - 


Chapter ñ 8 Final Report: Gudiyatham Municipality 

8.1.2 Storage and Distribution Network 

The municipality was dived into 5 zones in order to supply water to all the consumers 

with sufficient quantity and pressure. The existing distribution system comprises of 

distribution network from the service reservoirs to the individual house service 

connections and public fountains. Each zone consist of separate overhead tanks. 

The details of zone wise OHTís are presented in Table 8.4. The total capacity is about 

28.55 Lakh litres. The total length of existing Distribution network is about 45km. Table 

8.5 shows the details of existing distribution network in the town. The Figure 

S.No. Location 

Table 8-4: Location of Reservoirs 

Capacity 

(Lakh liters) 

Zone 

Noís 

- 48 - 

Wards Covered by each Service 

Reservoir 

1. Sedukkarai GRL 10.00 3 10,11,12,13,14,16,17,18,19,20 

2. Santhapet 5.70 1 27(50%),28,29,30,31,32,33,34,35,36 

3. Gopalapuram 2.70 2 16,20,21,22,23,24,25,26 

4. Pavodum Thoppu 0.15 5 27(50 %) 

5. Chittore Gate 10.00 4 1,2,3,4,5,6,7,8,9 

Total 28.55 5 36 

Source: Compiled from data provided by Municipality, Gudiyattam 

Table 8-5: Water Supply Distribution Details in Gudiyattam Town 

Distribution system Details 

Network length 45 km 

Storage capacity 28.55 lakh litres 

Storage reservoirs 5 in Number 

Public Fountain 347 

House Service Connection 6014 

Source: Compiled from data provided by Municipality,Gudiyattam 

8.1.3 Demand Supply Scenario 

At present, the per capita supply of water is 66 lpcd once in 2 days, which is 

supplied for the duration of two hours in a day to all household connections and 

public fountains. The current water requirement is 64.26 Lakh litres per day. As per 

CPHEEO standard for a town, which has a sewerage system, it is required to supply 

water @ 135 lpcd. Therefore, we will calculate the demand of water supply @ 135 

lpcd. Table 8-6 summarises the demand supply scenario in the town. 

Table 8-6: Supply gap Analysis 

Year 

2007-08 

(Current Year) 

2009 

(Base year) 

2024 

(Intermediate year) 

2039 

(Ultimate Year) 

Population 97367 111000 133900 159900 

Per 

Capita(LPCD) 

66 135 135 135 

Demand(LLD) 

@ 135 LPCD 

131.44 149.85 180.76 215.86 



Supply of 

Water(LLD) 64.26 64.26 64.26 64.26 

Gap(LLD) -67.18 -85.59 -116.51 -151.61 

Source 

Identification 

Satisfied with 

proposed scheme 

with palar as a 

source. 

Satisfied 

with 

proposed 

scheme with 

palar as a 

source 

8.1.4 Salient details of Water supply scheme 

- 49 - 


proposed scheme 

with palar as a 

source 


Hogenakkal 

scheme 

Table 8-7 shows the salient details of water supply scheme for Gudiyattam town. 

Table 8-7: Existing water supply salient features 

SI No. Description Details 

1. Extent of Municipal Area 11sq.km 

1. Source of water supply Goudaniya river 

2. Location of Source 

3. Quantity of supply (in Lakh litres) 

4. Population details 

Palar river 

Goudanya river Bodipettai 

Palar river Pasumathur 

Bodipettai 15.00 LL 

Pasumathur 66.70 LL 

Total 81.70 LL 

Current year (2007 -08) 97,367 

Base year (2009) 1,11,000 

Intermediate year (2024) 1,33,900 

Ultimate year (2039) 1,59,900 

5. Flow details 

Existing flow (@ 66lpcd) 64.26 LL 

Demand details 

Current demand (2007) - @ 135 lpcd 131.44 LL 

Base demand (2009) - @ 135lpcd 149.85 LL 

8.1.5 Performance Indicators 

Attributes Components Indicator Formula Value Unit 

Service 

Level 

Service 

Delivery 

Water supply 

per day 

Average hours 

of supply per 

day 

Average 

number supply 

days in a week 

Total supply to the 

city per day / total 

population of the city 

Hours of supply on 

supply day / number 

of days between two 

supply day 

66 Liters per 

capita 

day 

per 

2 Hours 

2-3 Day 



Service 

Coverage 

Treatment 

plant capacity 

Storage 

capacity 

Service 

coverage in 

Slums 

Population 

coverage 

Physical 

coverage 

Treatment 

plant capacity 

as percentage 

of surface water 

supply 

Storage 

capacity 

adequacy 

Ratio of slum 

population to 

Public Stand 

Posts 

Percentage of 

Households 

covered by 

water 

connections 

Percentage of 

water supply 

pipe Length to 

Total Road 

Length 

8.1.6 Issues in Water Supply Sector 

(Capacity of 

treatment plant 

/water supplied from 

ground 

resources)* 100 

water 

(Total storage 

capacity(ML)/Total 

water 

(MLD)* 100 

supplied 

Slum population not 

covered by piped 

network /Total Public 

Stand Posts 

(Number of water 

connection/Total 

number 

Households)* 100 

of 

(Length of water 

supply 

pipelines/Total Road 

length)* 100 

- 50 - 

NA Percent 

44.42 Percent 

NA Percent 

35.62 Percent 

70.11 Percent 

The Bodipettai Head works located in Koundanya Mahanadhi scheme was 

started at 1908 and the Pasumathur Head works located in Palar scheme was 

stated at 1976. The existing pumping systems of the both Head Works exceeded 

the design period. 

The transmission line from head works located at R.S. Road ( 5 km from the head 

works ), Sedukkarai ( 6 km from the head works) and Ammana Kuppam are the 

main transmission loss places as well as water theft also happened in that area 

by the surrounding village people. 

The existing service reservoir located at Pavadum thoppu was built on 1976 and 

another Ground level reservoir located at Sedukarai was built on 1940. Both 

service reservoirs are in demolishing stage. 

The tail end of distribution lines in Karai Street, murugappa mudali Street, Kottaih 

subbiah Street faced the low pressured in water supply distribution line. 

Due to inadequate system of water supply, it is supplied at an interval of 48 hours 

and only for 2 hours. 



8.1.7 Proposal by Municipality 

Table 8-8: Salient details of Proposed Water supply Scheme to Gudiyattam Scheme 

S. No Year Base Year 2009 

Intermediate Stage 

2024 

Ultimate Stage 2039 

1 Population 111000 133900 159900 

2 Water Demand 118.21LL 141.60 LL 170.29 LL 

*Requirement at 135 LPCD through House Service Connections for 70 % of population and 40 

LPCD through Public Fountain for 30% of population including 10 % of Transmission loss 

3 Rate of supply in 

LPM at 20 hours 

pumping 

Additional 45.90LL /day is proposed to be supplied through 15 deep 

bore wells, 3 Infiltration Wells and 3 open wells to meet the 

immediate requirement 

Table 8-9: Proposal water supply Scheme Salient Features 

S. No Description Capacity/Quantity 

1 Source 

Infiltration wells 3 Nos 

Deep wells 15 Nos 

Open wells 3 Nos 

2 Short Rising main 

100mm DI K7 pipe (Open Well Nellurpet 

toNellurpet Eri proposed Sump) 

- 51 - 

3125 m 

150 mm DI D/F Pipe (Infiltration Well to Sump) 1871 m 

90 mm PVC 4 KSC Pipe /80 mm GI from Bore 

wells 

3 Sump 

5140 m 

Nellurepettai 15000 Litres Capacity 

Indiranagar 30000 Litres 

4 Pump Room 

5 Pump Sets 

3m X 4 m-2 Nos at Indira Nagar 

and Nellurpettai Lake Bund 

1.5 X 1.5 m -2 Nos at Pasumathur 

Head Works 

a. Submercible Pumpset 100 Lpm X 175 m (In Bore Wells ) 

ñ 5 Nos 

b. Open Wells sumercible pumpset ( Indranagar 

Sump) 

80 LPM X175 m (in Bore Wells ) ñ 

5 Nos 

75 LPm X176 m (In Bore Wells) ñ 

5 Nos 

640 Lpm X 38 m ñ 6 Nos(100% 

Standby) 

c. Sumbercible pumpset Nellurpettai Open well 100 lpm X 32 m- 6 Nos(100 % 

stand by) 

d. Sumbercible pumpset Nellurpettai sump 300 lpm X19 m ñ 2 Nos (100 % 

stand by) 

e. Submersible pumpset Pasumathur Infiltration 750 lpm X28 m ñ 2 Nos(100 % 



well stand by) 

6 Pumping Main 

150 mm DI K7 CL 2000m 

90 mm PVC KSC pipe /80 mm GI pipe 5220 m 

7 Branch Main 

200 mm DI K7 Pipe - 1960 m 

150 m DI K7 pipe 630 m 

- 52 - 

750 lpm X26 m ñ 2 Nos(100 % 

stand by) 

750 lpm X19 m ñ 2 Nos(100 % 

stand by) 

Service Reservoir 6.00 LL ñ 2 Nos 

Distribution Main 90 mm PVC 6 KSC ñ 9 KM 

140/110/90 mm PVC 6 KSC - 

33.337 Km 



Figure 8-4: Water Supply Proposal Map 

- 53 - 



8.2 SEWERAGE AND SANITATION 

8.2.1 Sewerage 

At present, Gudiyattam town does not have a Sewerage network. There is no 

separate system of sewage and storm water disposal. The drains are either side of 

the roads and they carry both rainwater and sullage. 

Gudiyattam Municipal Council has resolved to implement the Under Ground 

Drainage scheme with the financial assistance under the National River 

Conservancy Programme and resolved to execute the scheme through TWAD 

Board 

8.2.2 Sanitation 

The most common mode of sanitary facility is the water closet, which constitutes 56% 

of the total modes used. The safe modes of sanitary facilities are Pit Latrine and the 

water closet while the unsafe modes include other forms and those households that 

do not have a latrine. Out of the total number of households, 3735 household is 22% 

that do not have latrines. 

Public Toilet ñ Gopalapuram 

Table 8-10: Classification of modes of sanitary waste disposal by type 

Facility by Type Households Percentage 

Safe mode of disposal 

Unsafe mode of 

disposal 

Pit latrine 2816 16.44 

Water closet 9535 55.66 

Other latrine 1044 6.10 

No latrine 3735 21.80 

Total Households 17130 100 

- 54 - 



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

2001 

Unsafe 

Mode 

Other latrine 

6% 

No latrine 

22% 

Water closet 

56% 

- 55 - 

Pit latrine 

16% 

Figure 8-5: Status of Toilet Facility in Gudiyattam Town 

Apart from this, the municipality is maintaining 11 public toilets in different areas of 

the town. However, considering the floating population, there arises a need for 

provision of public toilets and Pay and Use toilets especially in the commercial 

localities and other public places like bus stand, rickshaw stand etc. Another area 

where the sanitation standard needs to be improved is in educational institutions. It 

is essential that this aspect be given immediate attention. 

Details 

Table 8-11: Public Toilets 

No. of 

No. of Seats 

Units Male Female Total 

Public Flush out Latrines 19 79 138 217 

Pay & Use Flush out Latrines 2 9 9 18 

TOTAL 21 88 147 235 


There are 235 seats in 21 toilet complexes in the towns. These toilets are divided into 

Public Flush out latrines and pay and use flush out latrines. There are 217 seats in 

Public Flush out latrines out of which 138 for female and 79 for male. Apart from this, 

18 seats are pay and use flush out latrines,of which 9 for male and 9 for female. 


Attributes Components Indicator Value unit 

Service 

level 

Service 

coverage 

Level of 

Hygiene 

Population 

Coverage 

Percentage of pay and use toilet to 

total public toilets 

Percentage of population covered by 

individual septic tank 

Safe 

Mode 

8.29 Percentage 

72.1 Percentage 



8.2.4 Issues in Sewerage and Sanitation Provisions 

Lack of sewerage system and sewage treatment plant. 

At present , open storm water drain only used for sewerage and finally it is 

disposed to the Koundanya River and Palar River. 

There has totally 18 public toilets are maintained by the municipality. Out of 18, 3 

from ISP scheme and 5 from VAMBAY scheme toilets are maintained properly by 

the Self Help Groups . Remaining 10 public toilets require improvements. 

8.2.5 Proposal by the TWAD 

Table 8-12: Zone wise demand Estimation for Provision Sewerage Facilities 

Zone Details Description Base Year- 2009 Intermediate -2024 Ultimate -2039 

Zone ñI 

Zone ñ II 

Population 77851 93912 112148 

Sewage Quantity 7.79 MLD 9.39 MLD 11.21 MLD 

Population 33149 39988 47752 

Sewage Quantity 3.31 MLD 4.00 MLD 4.78 MLD 

Total (Population) 1,11,000 1,33,900 1,59,900 

Total Sewage Quantity 11.10 MLD 13.39 MLD 15.99 MLD 

Table 8-13: Under Ground Drainage system ñAbstract of Cost Estimate 

S. No Description Cost in Rs. Lacs 

1 Collection system 1371.00 

2 Pumping station, pump sets 234.79 

3 Pumping Main 299.16 

4 Sewage Treatment 600.00 

5 House Service Connection 444.74 

6 Sewage Cleaning Equipment 35.00 

Sub Total I 2984.69 

7 Physical Contingencies at 2.5 % 74.62 

8 Unforeseen items of work at 2.5 % 74.62 

9 

Sub Total II 3133.93 

Supervision Charges at 5 % 156.70 

Sub Total III 3290.62 

Miscellaneous Items of works such as Road Restoration ,EB 

Deposit, Deposit to Telephone Dept 

- 56 - 

47.94 

10 Add 1 % for Inter Dept Permission on Miscellaneous Items 0.47 

Sub Total IV 3339.03 

11 Add for price escalation at 10 % for 2 years 700.81 

Total 4039.84 



8.3 STORM WATER DRAINAGE 

8.3.1 Existing Condition of Storm Water Drainage 

The total length of the storm water drains that are maintained by the municipality is 

61 km. The total drains in the town are 144.77 km. Maximum portion of the drains are 

earthen these accounts for 83.77 km. 

Strom water drain ñ R.S Road 

Table 8-14: Storm Water Drainage Facility 

Drain Type Length (KM) Percentage Coverage of total Road Length 

Open pucca/surfaced 46.01 82.07 

Kutcha/Unlines 5.54 9.88 

Total drains (Km) 51.55 91.96 

No drainage facilities 4.509 8.04 

Total road length (Km) 56.059 100.00 


Table 8-15: Existing Storm Water Drains 

Drains Length in K.M. 

Both Side R.R. Mansonry 2.00 

Both Side Brick Mansonry 32.00 

One Side R.R. Mansonry other side brick Mansonry 11.00 

Both Side C C wall 16.00 

One Side C C Walls & Other Side Brick / R R Mansonry Both Side RCC -- 

- 57 - 



wall 

Drains Length in K.M. 

One Side R C C Wall & Other Side Brick / R R Mansonry -- 

Earthern Drain 83.77 

TOTAL 144.77 


8.3.2 Household Connectivity to Drainage 

There are 17,130 households in the town out of which maximum number of 

households are connected with open drains which account for 58% of total 

household. 15% of the household have not been provided with drainage facility 

while only 27% of the household have closed drainage. 

Table 8-16: Existing Drainage Scenario 

S. No. Type of Drainage No. of Houses Percentage 

1. Closed drainage 4,625 27 

2. Open drainage 9,998 58 

3. No drainage 2,507 15 

Source: Housing & Household Amenities Census, 2001 


Attributes Components Indicator Value unit 

Service 

Level 

Strom Water 

Drains 

Percentage of Road Length that 

have storm water drains 

8.3.4 Issues in Storm Water Drainage Provisions 

- 58 - 

91.60 percentage 

The sewage is mixed with storm water drain; it was finally disposed to the 

Goundanya River and Palar river. 

Drains are of brickwork and damaged in many places 



The untreated water is flowing to Palar River and Goundanya Mahanathy River 

Mousarpet ,Servangi Colony , Muthu Nagar Colony , Eri Karai Bend area were 

very low laying area, so water stagnation are more in that area 

8.3.5 Proposal 

At present, municipality has temporary solutions or proposals like providing street 

storm water drain. For horizon year, the needs of the storm water drain s are discuss 

in the Chapter 10. 

8.4 SOLID WASTE MANAGEMENT 

Solid waste management is one of the important obligatory functions of any urban 

local body. 

8.4.1 Generation of Solid Waste 

The daily average generation of garbage in Gudiyattam Town is 33 Metric Tonne 

per day. Out of the total waste generated, 70% of the waste is biodegradable and 

2% paper, 10% plastic, 3% rags 5% metal, 5% rubber and leather, 5% glass. 

Table 8-17: Type of Waste Generated from Gudiyattam Municipality 

Type of Waste % to Total Waste 

Bio degradable 70 % 

Glass 5 % 

Rags 3 % 

Paper 2 % 

Plastic 10 % 

Leather & rubber 5 % 

Metals & other domestic hazardous 5 % 

Inert --- 


Biodegradable waste contributes to the highest total waste generated which 

accounts for 70% of waste. Primary collection of solid waste is collected and stored 

in Dustbins and dumper power bins. 

8.4.2 Collection of Solid Waste 

The collection of solid waste is done through mini Lorries, Tractors, Dumpers, autos, 

Tricycles, Tipper, Bulldozer, Pock line, dozer and tippers. 

- 59 - 



Table 8-18: Waste Collection Vehicles 

Vehicle Type Capacity / Vehicle Number 

LMVs (Mini Lorry) 0.5 M T 3 

Tractors --- --- 

Others (Dumper placer, Tricycles , Tipper, Bulldozer, Pock line ) 0.25 M T 12 

Bullock-Carts --- --- 

Dumper Placer 2 M T --- 

Tipper 2 M T --- 

Total 22 


Door to door collection of solid waste and segregation is done in 20 wards with the 

assistance of Municipal Sanitary Workers. 

Table 8-19: Solid Waste Practices in Gudiyattam Town 

Type of Practices 

Availability Practice Duration 

House-to-house waste collection 

Central collection 

Street sweeping and collection of 

sweeping wastes 

Secondary Segregation 

Desilting of storm water drains 

Desilting of sewer lines 

Desilting of service drains 

Secondary waste collection 

Transportation of wastes 

Disposal of wastes 


8.4.3 Transportation Facilities 

Yes No Daily Half Weekly Weekly 

The collected solid waste from secondary storages and transported in dumpers, 

Tippers and Lorries, which are taken to the dumping ground. 

Table 8-20: Availability of Staff for Solid Waste Management in Gudiyattam Town 

S.No. Name of the post Total 

1 Sanitary Officer 1 

3 Sanitary Inspector 1 

4 Sanitary Supervisor 8 

5 Driver 6 

6 Field Assistant 1 

7 Sanitary Workers 0 

8 Malaria Mazhoor 0 

9 Maternity Assistant 1 

- 60 - 



10 Maternity Aya 2 


Total 20 

The fleet of vehicles for transporting waste is not adequate. Moreover, lack of waste 

collection system to achieve segregation at source leads to non-retrievable 

collection of the probable reusable waste resources. 

Table 8-21: Number and Type of vehicles used for Transportation 

Vehicle Nos. 

Dumper placer, Tricycles , Tipper, Bulldozer, Pock line, dozer 12 

Push Carts 29 

Tricycle 0 

Mini Lorry 3 

Bins 150 

Auto 5 


8.4.4 Disposal of Solid Waste 

The garbage is collected and dumped by the municipality on open area near Ulli 

village and available land is about 9.46 areas of land, which is being used as a 

compost yard at a distance of 6 km from municipality. The mode of disposal is open 

dumping 5.35 acres of additional land has been identified in Earthangal Village. 


Compost Yard ñ Ulli Village 

Attributes Components Indicator Value Unit 

Service level 

and coverage 

Waste 

collection 

percentage of waste collection 96.43 Percentage 

Capacity of percentage of capacity of waste 33 Percentage 

- 61 - 



Service cost and 

efficiency 

bins collection bins 

Coverage 

average road length covered per 

sweeper 

Less 

than1 

Km per 

sweeper 

Financial 

management 

cost per M.T of waste 

collection/day 

1237 

Rs per 

M.T 

Staff 

efficiency 

manpower per tone 4 Person 

8.4.6 Issues in Solid Waste Management Sector 

The existing compost yard at Ulli Village are used for dumping yard only. 

Its compound wall height are very low, so the wastes are flown by the air and 

affect the sorrouding Ulli Village 

Un-scientific solid waste management strategy. 

Uncontrolled littering along main roads and streets 

Transportation of the waste material is by open tractor trolleys. 

There has no places for transfer station in the town limit. 

Lack of Safety suits - Injurious to the health of the sanitation workers and reduces 

the productivity of the manpower. 

Community awareness and involvement is absent 

The unauthorized solid wastes are disposed in Robbinson open land. 

8.4.7 Proposal by Municipalities 

At present, municipality has temporary solutions or proposals like buying vehicles, 

extend the compost yard area. For horizon year, the needs of the solid waste 

management proposal are discuss in the Chapter 10 

8.5 STREET LIGHTING 

8.5.1 Status of Street Lighting 

The municipality of Gudiyattam has provided 1982 streetlights. The street lighting is of 

three major types that are 250 Watts Sodium Vapour Lamps, Tube lights and 70 watt 

Sodium Vapour Lamps. 

Table 8-22: Street lighting status in Gudiyattam Town 

Status % 

Present 100 

Not present 0 

Total 100 

Source: Engineering Department, Gudiyattam Municipality, 2007-08 

- 62 - 



The streets in the residential areas are provided with tube lights. The average 

distance between the poles is 35 meter. However, the distance between the street 

light poles on all the roads varies from 30 meter, 40 meter and 50 meter. On the 

other roads an average distance of 35 meter is maintained but the height of the 

street lights is very low in comparison with the standards. 

Ward No 

Table 8-23: Number of Street Lights in Gudiyattam Municipality 

250 Watt Sodium 

Vapour Lamps 

Tube Lights 

- 63 - 

70 Watts Sodium 

Vapour Lamps 

Grand 

Total 

1 2 -- 34 36 

2 5 25 21 51 

3 3 42 4 49 

4 8 28 5 41 

5 16 17 3 36 

6 17 6 6 29 

7 2 38 21 61 

8 7 16 9 32 

9 8 30 1 39 

10 5 20 2 27 

11 4 27 -- 31 

12 7 107 1 115 

13 3 0 3 56 

14 30 129 7 166 

15 -- 34 0 64 

16 16 33 4 53 

17 12 30 3 45 

18 12 34 3 49 

19 16 27 8 51 

20 20 76 4 100 

21 7 32 -- 39 

22 7 44 2 53 

23 6 23 1 30 

24 10 34 2 46 

25 7 42 -- 49 

26 8 98 1 107 

27 7 42 1 50 

28 46 2 2 50 

29 10 27 1 38 

30 5 49 2 56 

31 5 9 44 58 

32 14 32 2 48 

33 4 35 -- 39 

34 4 47 4 55 

35 12 36 -- 48 

36 15 67 3 85 

TOTAL 360 1388 234 1982 


The major problem with these street lights is there placing as there are no specialised 

poles for these and as a result lights are implanted on electricity poles which are 

relatively shorter in height and restricts the spread of light to a limited area. 



Streetlights should be removed from electricity poles and separate poles should be 

raised to maintain its height. 


Components Indicator Formula Value 

Street light 

coverage 

number of street light 

per km of road length 

Staff efficiency staff per 1000 street 

lights 

8.5.3 Issues in Street Light Provisions 

Number of street lights /total road 

length in kms 

Total number of staff /total 

number of street lights *1000 

- 64 - 

31 

NA (services 

outsourced) 

No criteria and standards were taken in to consideration when providing street 

lights 

The placing of streetlights is very near and this results in more spending on 

infrastructure and more electricity bills. 

Operator switching streetlights require 1 to 1.5 hrs to operate all the switches in 

an area, resulting in some places lights are switched on/off almost 1 to 1.5 hrs 

prior and after the required time; 

Lighting levels are higher than required standards 

During off peak hours (after 11 pm in night) lighting levels increase further due to 

increase in voltage 

Lighting devises are not mounted properly, thus unnecessarily distributing light to 

surrounding areas and providing less light on roads and pathways; and 


At present, municipality has attended the temporary problems, when problems or 

repairs arise in streetlights. For horizon year, the needs of Streetlight proposals are 

discuss in the Chapter 10. 

8.6 TRAFFIC AND TRANSPORTATION 

Gudiyattam town is well connected with roads and rail linkages. Gudiyattam is 

connected to the town of Palamaner in Andhra Pradesh, Thiruthani, Vellore and 

Katpadi. Katpadi lies to the Ambur and Krishnagiri on the West, Vaniyambadi and 

Thirupathur to the South West. 

8.6.1 Regional Linkages- Roads, Railways and Airways 



8.6.2 Town Level Road Network and Hierarchy 

The national and state highways passing throught the town . The total length of the 

state highways is 8.20 Km. The total length of the municipal roads is 64.19 Km. 

8.6.3 National and State Highway 

Only the State Highway passes through the town: 

Table 8-24: Length of National Highways Passing through Gudiyattam 

S. No. Name of the Road Road Length (Km) 

1 National Highways -- 

2 State Highways 8.20 Km 

3 Major District Roads -- 

4 Other District Roads -- 

8.6.4 Municipal Roads 

Total 8.20 km 

The municipality maintains 64.19 Km of roads within the town. The category of the 

roads maintained by the municipality is given in table below: 

Table 8-25: Types of Roads in Gudiyattam Municipality 

S. No. Type of Roads Road Length (Km) 

1 B.T. Roads 27.019 Km 

2 Cement Concrete Pavement 18.846 Km 

3 Cut Stone Slab -- 

5 W.B.M. Roads 1.385 Km 

6 Earthern Roads 16.937 Km 

Total 64.187 Km 

Source: Gudiyattam Municipality 

The analysis of road network inventory data is shown in the table 8-26: 

Table 8-26: Roads by Hierarchy, 2004 

ROADS in km. ROW (in mtrs.) 

State Highways 8.20 7 to 10 

Town Roads 64.19 5 to 9 

Source: compiled from data collected from Gudiyattam Municipality 

Figure is an approximate Value 

8.6.5 Parking 

There is no authorised parking area in the town. The Municipality can not afford to 

spend on parking lots. Cars and buses are parked on the side of roads, which further 

make the roads narrower. Private buses stay parked for around an hour and leave. 

Trucks stay for a longer time. Cars, Autos and two-wheeler use the roadside space 

- 65 - 



for parking for reasonable time on the side of roads but even for that time it this 

causes congestion on the roads. 

8.6.6 Pedestrian Paths 

There is no provision of pedestrian paths along the major and minor roads and 

people face problem in walking on the main roads also this creates problem for the 

fast moving traffic. The both sides of the main roads have been encroached by 

shop owners on the existing carriageway up to 1 meter and it acts as a hindrance 

for free flow of traffic. 

8.6.7 Public Transport System 

The major form of public transportation is buses. The bus stands both old and new 

are functional. Gudiyattam is well connected with the surrounding rural areas by a 

number bus services. The town is connected to a number of towns like Vellore, 

Ambur, Thiruppattur, Pernampet, Arni, Arcot and Chittoor, Palamaner etc. 

8.6.8 Issues in Traffic and Transportation Sector 

The public Road , T.K shetty Street ,Ambedkar and Chitore Gate Junctions had 

the poor Road Geometrics 

Thalaiyatham Bazzer is very narrow, encroached by shop owners for a width of 

10m on either side for about 1 km. 

Similarly Archnan Mudali Street, Aliyar Street , Melbut Road , Katpadi Road are 

narrowed . 

Absence of the foot paths , mainly the pedestrians movement are so high in the 

following area: G.H Road, Katpadi Road, Rajendra Singh Road, Melbet Road, 

Pernampet Road and Palamanar . 

Inadequate rain water drainage facilities on both sides of roads 

Inadequate width of culverts and bridges 

In-efficient management of traffic for meeting the need of increasing number of 

fast moving traffic. 

8.6.9 Bus Stand 

Old bus stand had no separate bus bays, 

Absence of passenger seating arrangement 

Auto and Two wheeler stand are not there, so they park their vehicle inside , 

it affected the traffic movement 

- 66 - 



8.6.10 Proposal for Road 

Bus Stand ñ Gudiyattam 

At present, municipality has done a small batch works on street roads under part II 

scheme. After UGD scheme implementation, the exiting all roads( including Cement 

Concrete Roads) are to be converted as a cement concrete Road .For horizon 

year, the needs of the road proposal , road junction improvements, Road widening 

proposals and Bus-stand improvements are discuss in the Chapter 10. 

8.7 SOCIAL INFRASTRUCTURE FACILITIES 

8.7.1 Educational Facilities 

There are 25 elementary schools, 1 middle school, 4 high schools and 4 higher 

secondary schools. 

There is one government Arts College for men and one polytechnic. There are two 

private colleges but the lie outside the Municipal Boundary. 

Table 8-27: Details of Education Facilities 

S.No. Name of the School Address Ward No 

1. Dharnampet Muslim Boys Ele. School Aliyar street , Gudiyattam 2 

2. Dharnampet Muslim Girls Ele. School Aliyar street , Gudiyattam 2 

3. Kaspa Elementary School 

Gowthampet Kaspa , 

Gudiyattam 

4. Thirumagal Mills Elementary School Katpadi road , Gudiyattam 12 

5. Chunnambupet Elementary School 

Rajendira singh street 

Chunnambupet Gudiyattam 

6. Gandhi Road Elementary School Gandhi Road , Gudiyattam 21 

7. 

Gopalapuram Muslim Boys Ele. 

School 

Majeeth street , Gopalapuram , 


- 67 - 


7 

16 

24


S.No. Name of the School Address Ward No 

8. 

Gopalapuram Muslim Girls Ele. 

School 

Majeeth street , Gopalapuram , 


9. Bodipet Elementary School Bodipet Road , Gudiyattam 26 

10. Nellorepet Elementary School 

11. Cheruvangi Elementary School 

12. Kamatchiyammanpet Ele. School 

13. 

14. 

Thalayatham Muslim Girls Ele. 

School 

Thalayatham Muslim Boys Ele. 

School 

15. Thalayatham Hindu Ele. School 

16. Ambapuram Aided Ele. School 

17. Kalaivani Aided Ele. School 

18. Thiruvalluvar Aided Ele. School 

Sannathi street , Nellorepet , 


Melpatti Road , Cheruvangi , 


Pillaiyar Koil street , 

Kamatchiyammanpet, 


Goodanagaram Road, 

Thalayatham , Gudiyattam 

Goodanagaram Road 

Thalayatham Gudiyattam 

Thalayatham Bazar 


G.P.M. street Ambapuram 


T.R. Chetty street Dharnampet 


S. Kuppannan street Pudupet 


19. National Aided Ele. School Gandhi Road Gudiyattam 8 

20. Kasthuribai Aided Ele. School 

21. Selva Aided Ele. School 

22. Vallalar Aided Ele. School 

Kasthuribai street Pitchanoor 


Jailor Munisamy street 

,Santhapet Gudiyattam 

Sivagamiyamman street , 

Santhapet Gudiyattam 

23. Jothy Aided Ele. School Pernambut Road Gudiyattam 28 

24. Suriyodhaya Aided Ele. School Kondasamudram Gudiyattam 14 

25. Annai Indira Aided Ele. School 

Source: Gudiyattam Muncipality 

Pandiyan Nagar 

Kondasamudram Gudiyattam 

Table 8-28: Existing Educational facilities in Gudiyattam Town 

Educational Facilities No. of Institutions 

Elementary 25 

Middle 1 

Matriculation 4 

Higher secondary 4 

College 1 

Technical institutions 1 

Source: Compiled from District Statistical Abstract Vellore ñ 2006 

- 68 - 

24 

28 

31 

32 

36 

34 

36 

20 


8 

9 

4 

35 

30 

12


8.7.2 Issues 

1. Municipality High School 

4 class rooms are fully damaged 

Main building of the school roof were damaged , during rainy season rain 

water enters through the roof 

Chemistry lab of the building R.C.C came out as well as beam were 

deflected 

Compound wall of the school damaged , so night time it became space for 

miscreants 

Electrical works are very old 

2. Gangadhara Swamy Municipal School 

The roof are built by the A.C sheet, so they want to change the concrete roof 

3. Muslim Boys and Girls High School 

The plinth level of the boys school was low to the road level , during rainy 

season storm water enters the class room 

The roof of the building are built by Mangalore Tiles, it was too old and poor in 

condition. 

The has no separate water supply , so toilet room are not properly maintained 

The syntax has broken by the Monkeys, so they require the concrete OHT. 


At present, municipality has done a small repairs works under Elementary 

educational fund and MP, MLA scheme. For horizon year, the needs of the 

educational proposal are discuss in the Chapter 10. 

- 69 - 



8.7.4 Health Facilities 

At present, one Government Hospital, two private nursing home, one maternity 

centre and three private clinics are functioning in Gudiyattam Town. 

The capacity of Government Hospital is 32 beds serving a population of 29,475 

(2001). Total bed strength of hospitals and nursing homes within Gudiyattam Town is 

41. Adopting a standard of 3 beds per thousand population, medical facilities are 

sufficient for the existing population of the town. The Government hospital is doing 

significant services in this town. 

8.7.5 Issues in Health Sector 

It was recently renovated by the municipality, with all basic infrastructure facilities. 

There have no specific issues on the maternity centre. 


The exiting one Maternity centre only under control of Municipality. It was recently 

renovated at a cost of Rs 2 Lacs under part II Scheme 2006 -0 7. 

8.7.7 Parks 

The town having two municipal parks i.e. Nehru park and Arun Nagar Park in the 

municipality limit. Apart from this the open land i.e. Robbinson place is used for 

unauthorized solid waste disposal. 

There has enough land available for Park, Shopping Complex and Rain Water 

Harvesting arrangements. 

8.7.8 Issues 

The compound wall are not there in both Nehru Park and Arun Park , so it 

become space for miscreants 

In Nehru park, inadequate seating arrangements are there . 

The lighting facility and Walking path way was not there in both Arun Park and 

Nehru Park. 


At present, there has no action taken by the municipality. The detailed proposal are 

discussed in the Chapter 10. 

8.7.10 Slaughter House 

The new slaughterhouse was built at an cost of Rs 16 Lacs in Sunnampupettai , under 

Part II scheme 2006-07. 

- 70 - 



8.7.11 Issues 

Treatment facility is not available in the new slaughter house 

8.7.12 Proposal by Municipality 

The treatment plant was not there in the new slaughterhouse. The detailed proposal 

was discussed in the chapter 10. 

8.7.13 Burial ground 

Two burial ground was maintained by the municipality. One of the burial ground 

located in Malalathur Road and another one was located in Sunnampupettai. 

8.7.14 Issue 

Separate water supply not there in both burial ground . 

Compound wall fully damaged in Malalathur Burial Ground. 

Inadequate lighting facility for both burial ground 

Absence of security room in Malalathur Burial Ground . 


At present, there has no action taken by the municipality. The detailed proposals 

are discussed in the Chapter 10. 

- 71 - 



9 MUNIICIIPAL FIINANCE 

9.1 OVERVIEW 

Gudiyatham Municipality maintains a municipal fund for managing the finances of 

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

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

based double entry book keeping system was implemented. The Municipality 

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

and Education Fund. 

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

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

indicators. 

9.2 GENERAL DETAILS 

Gudiyatham is located at Vellore District and the total population as per 2001 

census is 91452 Nos. Out of the same the total urban poor is 16236 Nos., comprising 

17.75% of the total population. The total number of slums is 9 Nos comprising 

population of 8651 Nos., which aggregates to 9.45% of total population. 

It is a Grade I municipality. 

9.3 RECEIPTS 

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

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

income. 

9.3.1 Property Tax 

Property Tax is the single largest tax revenue source and accounts for around 25% of 

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

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

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

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

let out. 

The Municipality currently charges property tax @ 17.50% per annum on the basis of 

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

- 72 - 



Table 9-1: Property Tax Components 

S.No Particulars % (Per Annum) 

1 General 5.75% 

2 Water Tax 3.75% 

3 Drainage 1.25% 

4 Lighting 3.00% 

5 Scavenging 1.25% 

6 Education 2.50% 

Total 17.50% 

The total number of property tax assessments is 14536 Nos. the breakup of which is 

as below : 

Table 9-2: Property Tax Assessments 

S.No Particulars Nos. 

1 Domestic 10063 

2 Commercial 3923 

3 Industrial 522 

4 State Government Properties 18 

5 Public Sector Undertakings 10 

Total 14536 

The total number of unapproved layouts in the Municipality is 11 Nos. and there are 

no un-approved layouts for which property tax assessment is carried out. The last 

revision of Property Tax was carried out on 01.10.1998. 

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

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

S.No Year Rs. in lacs % Growth Rate 

1 2001-02 95.54 - 

2 2002-03 96.25 0.74% 

3 2003-04 98.25 2.04% 

4 2004-05 99.71 1.46% 

5 2005-06 102.18 2.42% 

6 2006-07 114.19 10.52% 

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

around Rs. 65-100 lacs per annum and has grown by around 3.5-4% per annum. 

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

S.No Property Tax 

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

2001- 

02 

2002- 

03 

- 73 - 

2003- 

04 

2004- 

05 

2005- 

06 

2006- 

07 

1 Demand 

- Current 103.69 104.47 106.62 108.27 110.93 97.02 

- Arrears 108.84 122.85 138.92 152.60 190.85 79.51 

Total 212.53 227.32 245.54 260.87 301.78 176.53 

2 Collection 

- Current 69.41 67.08 69.78 53.99 58.27 45.92 



- Arrears 20.36 18.85 23.65 32.54 39.77 20.70 

Total 89.77 85.93 93.43 86.53 98.04 66.62 

3 Collection % 

- Current 67% 64% 65% 50% 53% 47% 

- Arrears 19% 15% 17% 21% 21% 26% 

Total 42% 38% 38% 33% 32% 38% 

The current collection performance of property tax is poor at around 65% and the 

arrears collection performance is around 20%. 

9.3.2 Profession Tax 

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

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

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

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

on a slab basis. 

The total number of profession tax assessments is 5006 Nos., out of which state / 

central / quasi Govt. employees comprise 468 Nos., private employers / companies 

is 269 Nos. and traders / self employed professionals 4269 Nos. 

During the last 5 years ended 2005-06, it has increased from Rs. 14 lacs to Rs. 19 lacs. 

During 2006-07, it was further increased to Rs. 88 lacs. It accounts for around 4.25% 

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

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

S.No Year Rs. in lacs % Growth 

1 2001-02 14.66 - 

2 2002-03 15.84 7.45% 

3 2003-04 19.92 20.48% 

4 2004-05 19.07 (4.46%) 

5 2005-06 19.23 0.83% 

6 2006-07 87.76 78.09% 

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

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

S.No Profession Tax 

2001- 

02 

2002- 

03 

- 74 - 

2003- 

04 

2004- 

05 

2005- 

06 

2006- 

07 

1 Demand 

- Current 14.65 15.84 19.91 19.07 19.23 92.45 

- Arrears 36.87 41.20 43.57 48.52 54.96 53.88 

Total 51.52 57.04 63.48 67.59 74.19 146.33 

2 Collection 

- Current 10.54 11.85 13.47 14.55 13.49 15.78 

- Arrears 10.91 2.16 14.90 0.19 0.11 0.91 

Total 21.45 14.01 28.37 14.74 13.60 16.69 


- Current 72% 75% 68% 76% 70% 17% 



- Arrears 30% 5% 34% 0% 0% 2% 

Total 42% 25% 45% 22% 18% 11% 

The Municipality has average current collection performance of 70% and the 

average arrears collection performance is around 15%. 

9.3.3 Assigned Revenues 

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

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

in the form of municipalityís share of taxes levied and collected by GO TN from 

establishments / operations within municipal limits. 

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

items on which these revenues are realized by municipality. 

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

nearly 7% of the total municipal revenue. The assigned revenue for the last 6 years is 

as below: 

S.No Particulars 

Table 9-7: Assigned Revenue ñ Growth & % of Total Income 

2001- 

02 

2002- 

03 

- 75 - 

(Rs. in lacs) 

2003-04 2004-05 2005-06 2006-07 

1 

Assigned 

Revenue 

Duty on 

transfer 

property 

of 18.70 53.58 29.60 20.38 18.65 18.85 

Entertainment 

Tax 

7.39 23.80 16.14 12.33 4.92 1.67 

Total 26.09 77.50 45.74 32.73 23.57 20.52 

2 

% of 

Income 

Total 

9.15% 17.76% 9.61% 7.89% 4.54% 4.15% 

3 % Growth - 66.34% (69.44%) (39.75%) (38.86%) (14.86%) 

It may be observed that there has been no significant growth in Assigned Revenue 

over the last 6 years. In case of entertainment tax, the Commercial Department 

collects entertainment tax from cinema halls functioning within municipal limit. The 

CT Department transfers 90% of total tax collection to municipality and retains 10% 

towards management charges. In case of Gudiyatham Municipality there are 11 

theatres, but income from entertainment tax has reduced over the years. 

9.3.4 Revenue Devolution Funds in aid of revenue expenditure 

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

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

revenue grants and compensations from State Government under various heads. 



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

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

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

specific purposes are adhoc in nature. 

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

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

is as below: 

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

S.No Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 

1 Devolution Fund 76.60 152.97 201.29 166.16 268.67 100.83 

Total 76.60 152.97 201.29 166.16 268.67 100.83 

2 % of Total Income 26.86% 35.06% 42.29% 40.05% 51.76% 20.41% 

3 % Growth - 49.92% 24.01% (21.14%) 38.15% (166%) 

9.3.5 Water Charges 

The water charges and deposits collected by the Municipality are as below : 

Table 9-9: Water Tariff & Deposit 

S.No Category Tariff Deposits 

1 Domestic Rs. 40/- p.m. Rs. 2000/- 

2 Commercial Rs. 150/- p.m. Rs. 3000/- 

3 Industrial Rs. 100/- p.m. Rs. 4000/- 

The total number of house service connections (HSC) is 6172 Nos., the breakup of 

which is as below : 

Table 9-10: No. of House Service Connections 

S.No Particulars Nos. 

1 Domestic 6095 

2 Commercial 73 

3 Industrial 4 

Total 6172 

The percentage of water supply connections to property tax assessments is only 

around 43%. The Municipality should take steps to increase it to at least 70-75%. This is 

possible because of adequate water supply in the town. 

The water charges for the past 6 years is as below : 

Table 9-11: Water Charges ñ Growth & % of Total Income (Rs. in lacs) 


2001- 

02 

2002- 

03 

2003- 

04 

2004-05 

2005- 

06 

2006-07 

1 Water Charges 22.19 23.78 31.92 29.73 31.20 39.20 

Total 22.19 23.78 31.92 29.73 31.20 39.20 


3 % Growth - 6.69% 25.5% (7.37%) 4.71% 20.41% 

- 76 - 



It may be observed that water charges account for around 7% of total income. 

There has been average growth of around 12-15% over the last 6 years. 

The water connection charges for the past 6 years is as below : 

Table 9-12: Water Connection Charges ñ Growth & % of Total Income (Rs. in lacs) 


2001- 

02 

2002-03 2003-04 2004- 

05 

- 77 - 

2005-06 2006-07 

1 

Water 

Connection 

Charges 

5.00 3.62 12.96 5.52 4.33 2.2 

Total 5.00 3.62 12.96 5.52 4.33 2.2 


3 % Growth - (38.12%) 72.07% (135%) (27.48%) (96.82%) 

It may be observed that water connection charges account for around 1% of total 

income. The water connection charges have reduced over the years. 

The last date of revision of water charges was in 2003. The demand collection 

balance statement of water charges for the last 6 years is as below : 

Table 9-13: Water Charges ñ Demand Collection % (Rs. in lacs) 

S.No Water Charges 

2001- 

02 

2002- 

03 

2003- 

04 

2004- 

05 

2005- 

06 

2006- 

07 

1 Demand 

- Current 22.18 23.78 31.91 31.92 31.17 58.18 

- Arrears 18.06 23.99 28.91 37.40 59.19 47.67 

Total 40.24 47.77 60.82 69.32 90.36 105.85 

2 Collection 

- Current 14.67 14.27 17.61 9.60 12.18 15.49 

- Arrears 3.90 4.58 5.84 5.48 11.52 14.05 

Total 18.57 18.85 23.45 15.08 23.70 29.54 


- Current 66% 60% 55% 30% 39% 27% 

- Arrears 22% 19% 20% 15% 19% 29% 

Total 46% 39% 39% 22% 26% 28% 

The municipality has very low collection performance, with current collection 

charges at around 40%. The arrears collection % is around 20%. 

9.3.6 Drainage Charges 

The Municipality does not have Underground Drainage System and the households 

mainly have septic tank facility. 

9.3.7 Service Charges & Fees 

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

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

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



Table 9-14: Service Charges & Fees ñ Growth & % of Total Income (Rs. in lacs) 


2001- 

02 

2002-03 

- 78 - 

2003- 

04 

2004-05 2005-06 2006-07 

1 

Service 

Fees 

Charges & 

8.49 14.02 15.13 14.25 12.04 22.30 

Total 8.49 14.02 15.13 14.25 12.04 22.30 


3 % Growth - 39.44% 7.34% (6.18%) (18.36%) 46.01% 

9.3.8 Income from Properties & Other Income 

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

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

toilets etc. 

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

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

misc. recoveries and other income. 

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

below : 

Table 9-15: Income from Properties & Other Income ñ Growth & % of Total Income 

(Rs. in lacs) 


Income from 

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

1 

Properties and other 

income 

36.57 50.98 50.24 47.53 57.87 106.68 

Total 36.57 50.98 50.24 47.53 57.87 106.68 


3 % Growth - 28.27% (1.47%) (5.70%) 17.87% 45.75% 

The demand collection balance statement of income from properties and other 

income for the last 6 years is as below : 

Table 9-16: Non Tax Income ñ Demand Collection % (Rs. in lacs) 

S.No Other Income 

2001- 

02 

2002- 

03 

2003- 

04 

2004- 

05 

2005- 

06 

2006- 

07 

1 Demand 

- Current 25.79 16.88 47.76 3.02 3.12 226.53 

- Arrears 8.11 22.24 20.19 0.47 0.00 76.57 

Total 33.90 39.12 67.95 3.49 3.12 303.10 

2 Collection 

- Current 18.56 3.29 44.79 3.49 3.12 50.88 

- Arrears 0.50 6.69 1.78 0.00 0.00 50.34 

Total 19.06 9.98 46.57 3.49 3.12 101.22 


- Current 72% 19% 94% 116% 100% 22% 

- Arrears 6% 30% 9% 0% 0% 66% 

Total 56% 26% 69% 100% 100% 33% 



The total current collection performance of other income is 70% and the arrears 

collection performance is around 30%. But the amount of arrears is nominal. 

9.4 EXPENDITURE 

The revenue expenses mainly comprises of establishment charges, power charges 

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

on account of maintenance of roads, public health etc. 

9.4.1 Establishment Expenses 

The major revenue expenditure incurred by the Municipality is establishment 

expenses comprising personnel cost and terminal benefits. The details of 

establishment expenses for the last 6 years is as below : 

Table 9-17: Establishment Expenses ñ Growth & % of Total Expenditure (Rs. in lacs) 

S.No Estb Expenses 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 

1 Personnel ñ Salaries 163.57 157.99 153.54 156.14 167.24 206.78 

2 

Terminal & 

Retirement Benefits 

38.58 48.01 35.56 27.86 61.49 0.68 

Total 202.15 206.00 189.10 184.00 228.73 207.45 

3 % of Total Expt 46.56% 43.30% 38.20% 36.15% 41.77% 56.42% 

4 % Growth - 1.87% (8.94%) (2.77%) 19.56% (10.26%) 

The establishment expenses constitute around Rs. 200 lacs per annum. 

9.4.2 O&M Expenses ñ Water Supply 

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

same accounts for around 10% of the total expenditure. 

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

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

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

supply for the last 6 years is as below: 

Table 9-18: O&M Expenses (Water Supply) ñ Growth & % of Total Expenditure 

(Rs. in lacs) 

S.No O&M - Water Supply 

2001- 

02 

2002- 

03 

2003- 

04 

2004- 

05 

2005-06 

2006- 

07 

1 Power Charges 20.71 26.95 46.65 37.50 31.30 33.49 

2 Maintenance Exps 1.60 - 2.57 - 1.00 2.72 

3 Vehicle Maint. 0.15 0.90 0.89 1.00 0.24 

4 Hire Charges - - - 7.70 6.60 - 

5 Others 1.71 5.10 2.33 3.23 - - 

Total 24.17 32.97 53.50 50.39 39.90 36.45 

6 % of Total Expt 5.57% 6.93% 10.81% 9.90% 7.29% 9.91% 

7 % Growth - 26.69% 38.37% (6.17%) (26.29%) (9.47%) 

- 79 - 



The O&M Expenses ñ water supply constitute around Rs. 40 lacs per annum and 

constitutes around 10% of total expenditure. The same has grown @ 5% p.a. over the 

last 6 years. 

9.4.3 O&M Expenses ñ Street Lights & Others 

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

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

vehicle maintenance, repairs & maintenance ñ buildings, roads and others. The 

expenses on account of street lights & others for the last 6 years is as below: 

Table 9-19: O&M Expenses (Street Lights & Others) ñ Growth & % of Total Expt 

(Rs. in lacs) 

S.No 

O&M ñ Street Lights & 

Others 

2001- 

02 

2002-03 2003-04 2004-05 

2005- 

06 

2006-07 

1 Operative Expenses 20.09 43.63 34.86 29.56 43.33 28.39 

2 Repairs & Maintenance 7.40 5.45 5.32 5.20 10.15 26.01 

Total 27.49 49.08 40.18 34.76 53.48 54.40 

3 % of Total Expt 6.33% 10.32% 8.12% 6.83% 9.77% 14.80% 

4 % Growth - 43.99% (22.15%) (15.59%) 35% 1.69% 

9.4.4 Administration & Other Expenses 

Besides establishment and O&M expenses, administration expenses form the major 

part of revenue expenditure. The summary of administration expenditure over the 

last 6 years is given below : 

Table 9-20: Administration Expenses ñ Growth & % of Total Expenditure 

(Rs. in lacs) 


2001- 

02 

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

1 Administration Expenses 12.27 32.75 43.48 42.11 34.58 62.70 

Total 12.27 32.75 43.48 42.11 34.58 62.70 

2 % of Total Expt 2.83% 6.88% 8.78% 8.27% 6.31% 17.05% 

3 % Growth - 62.53% 24.68% (3.25%) (21.78%) 44.85% 

The administration expenses comprise around 8% of the total expenditure. The same 

has grown @ 20% over the last 6 years. 

9.5 SUMMARY OF FINANCES 

We summarize below the finances of Gudiyatham Municipality for the last 6 years : 

Table 9-21: Summary of Finances for last 6 years (Rs. in lacs) 


Audited 

Unaudited 

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

1 Income 285.14 436.27 475.96 414.88 519.09 493.98 

- 80 - 



2 Expenditure 266.92 321.07 326.26 337.82 356.69 367.66 

3 

Surplus before Int & 

Depreciation 

18.22 115.20 149.70 77.06 162.40 126.32 

4 Finance Charges 54.61 61.57 77.16 88.81 114.05 0.00 

5 

Surplus / (Deficit) 

before Depreciation 

(36.39) 53.63 72.54 (11.75) 48.35 126.32 

6 Depreciation 112.63 93.08 91.64 82.39 76.88 0.00 

7 Net Surplus / (Deficit) (149.02) (39.45) (19.10) (94.14) (28.53) 126.32 

Note : 

The real autonomy of any organisation depends on its financial autonomy. Weak 

tax base, inadequate tariff level and poor collection performance have continued 

to be the salient features of local bodies in India. 

In the case of Gudiyatham Municipality, it is observed that the Municipality has 

incurred deficit in all the years mainly due to depreciation and high finance 

charges. Thus the Municipality needs to undertake lot of fiscal reforms and full 

leverage of its assets over the next few years to improve its financial strength. 

Prior to depreciation, the Municipality has incurred surplus in 4 out of the last 6 

years, which is a positive sign. 

The summary of finances of the Municipality under the broad heads of income 

and expenditure for the last 6 years is as below : 

Table 9-22: Head-wise Income & Expenditure for last 6 years(Rs. in lacs) 


2001-02 2002-03 

Audited 

2003-04 2004-05 2005-06 

Un-audited 

2006-07 

1 Income 

Property Tax 95.54 96.25 98.25 99.71 102.18 114.49 

Profession Tax 14.66 15.84 19.92 19.07 19.23 87.76 

Water 

Drainage 

& 

27.19 28.71 45.39 35.43 35.53 41.40 

Assigned 

Revenue 

26.09 77.50 45.74 32.73 23.57 20.52 

Devolution 

Fund 

76.60 152.97 201.29 166.16 268.67 100.83 

Serv. Chgs & 

Fees 

8.49 14.02 15.13 14.25 12.04 22.30 

Grants & Cont. 0.00 0.00 0.00 0.00 0.00 0.00 

Sale 

Chgs 

& Hire 

0.00 0.00 0.00 0.00 0.00 0.00 

Other Income 36.57 50.98 50.24 47.53 57.87 106.68 

Total Income 285.14 436.27 475.96 414.88 519.09 493.98 

2 Expenditure 

Personnel Cost 163.57 157.99 153.54 156.14 167.24 206.78 

Terminal 

Benefits 

38.58 48.01 35.56 27.86 61.49 0.68 

O&MñStreet 

Lights 

20.09 43.63 34.86 29.56 43.33 28.39 

O&M ñ Water 20.71 27.87 50.27 38.57 31.30 35.61 

- 81 - 



3 

4 

Repairs 

Maint. 

& 

11.70 10.60 8.55 17.02 18.75 26.85 

Programme 

Exps 

0.00 0.00 0.00 26.56 0.00 6.65 

Administrative 

Exp 

12.27 32.75 43.48 42.11 34.58 62.70 

Finance 

Expenses 

54.61 61.57 77.16 88.81 114.05 0.00 

Depreciation 112.63 93.08 91.64 82.39 76.88 0.00 

Total 

Expenditure 

434.16 475.72 495.06 509.02 547.62 367.66 

Surplus / 

(Deficit) 

(149.02) (39.45) (19.10) (94.14) (28.53) 126.32 

It may be observed that the higher income over the years is mainly on account 

of increase in Grants Income over the years. Besides the depreciation has 

reduced from around Rs. 110 lacs to Rs. 80 lacs over the last 6 years. 

The assigned revenue of the municipality has been on reducing trend over the 

years. As regards Devolution Fund, the same has increased from around Rs. 75 

lacs to around Rs. 250 lacs over the years, increase of around 50% over the last 5 

years. This has mainly contributed to increased revenue over the years. 

The municipalityís own resources has also shown increase over the years, which is 

a positive sign. The municipalityís own revenue comprising property tax, 

profession tax, water charges and income from properties have all shown growth 

of around 10-15% over the last 6 years. 

The total accumulated surplus of the Municipality as on 31st March 2007 stands 

at Rs. 3954 lacs. As against the same, the total fixed assets comprising land, 

buildings, plant & machinery, vehicles etc. stands at Rs. 5608 lacs. Out of the 

total fixed assets, the value of land is Rs. 4028 lacs. 

The total loans of the Municipality as on 31st March 2007 stands as below : 

Table 9-23: Borrowings of the Municipality (Rs. in lacs) 

S.No Loan from Purpose 

Rate of 

Interest 

O/s as on 31.3.07 

1 Government Loan Ways & Means 10.5% 175.41 

2 Loan from TUFIDCO 

Special Roads & 

Water Supply 

13% & 15% 331.94 

3 Loan from TNUDF Roads & Drains 15% 53.72 

4 Loan from Bank - 15% 90.70 

Total 651.77 

As against the same, the contribution by Municipality, contribution by 

Government and Grants from Government as on 31st March 2007 stands as 

below : 

- 82 - 



Table 9-24: Status of Contributions & Grants 

S.No Particulars Rs. in lacs 

1 Contribution by Municipality 271.30 

2 Contribution by Government 383.97 

3 Contribution by Private Parties 9.53 

4 Grants from Government 61.08 

Total 725.88 

It is observed from the above that around 50% of the fixed assets excluding Land 

have been funded by means of Contribution and Grants from Government over 

the years and the balance 50% from Loans. 

The average current collection efficiency of the municipality is poor, between 60 

ñ 70% for all the cases of Own Revenue. The arrears collection performance is 

also poor. 

The broad financial analysis of the Gudiyatham Municipality finances reveal that 

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

collection efficiency for servicing the additional borrowings in the future. 

To summarize, the overall income pattern of the Gudiyatham Municipality 

indicates both positive as well as negative trends. The positive trends are on the 

income side, where the Municipalityís Own Revenue has shown growth of 

around 10-15% over the past 6 years. The income from Devolution Fund has 

increased by around 50% p.a. over the last 5 years. 

On the negative side the Municipalityís borrowings is very high resulting in very 

high interest payout, which is affecting its Debt Service Ratio. The operating ratio 

is also high at 91% leaving only around 10% for debt service. The collection 

performance of the Municipality is poor and needs to be improved. Thus the 

Municipality needs to augment its resources for future investments and servicing 

of debt. 

With more effective management of resources, there is scope for further 

enhancing credit worthiness and revenues of the Municipality. 

On our review of the past 5 years financials of Gudiyatham Municipality, we find the 

following major variations in the various heads of income and expenditure resulting 

in disparities in financial results : 

The accounts for the year 2006-07 are un-audited and hence some of the heads of 

income and expenditure are showing variations as given below : 

Income 

There is a reduction in Devolution Fund income by around Rs. 100 lacs in 2006-07. 

The same is on account of the fact that certain interest dues and repayment of 

- 83 - 



loans have been adjusted against release of Devolution Fund income. The 

Municipality should obtain these figures and incorporate the same in Accounts. 

Expenditure 

Depreciation and Finance Charges have not been provided for the year 2006- 

07. 

Terminal and Retirement Benefits have not been provided for the year 2006-07. 

The same works out to around Rs. 25 lacs per annum. 

9.6 KEY FINANCIAL INDICATORS 

A set of key financial indicators has been derived using the financial data procured 

from the Municipality for the assessment period. These indicators are used to assess 

the municipal performance with regards to resource mobilization, fund utilization, 

financial performance and collection efficiencies. 

9.6.1 Resource Mobilisation Indicators 

These indicators summarise the performance of the Municipality with regards 

sources of funds. Gudiyatham Municipality derives about 75 percent of its revenue 

income from own sources, while grants account for just about 25 percent of the 

revenue income. 

Table 9-25: Resource Mobilisation Indicators 

S.No Indicators Value 

1 Per Capital Income 

- 84 - 

Rs. 489/- 

p.a. 

2 Share of Own Sources in Total Revenue Income 75.43% 

3 Share of Property Tax in Total Revenue Income 23.18% 

4 Share of Revenue Grants & Subsidies in Total Revenue Income 24.57% 

5 Growth in Revenue Income 20.85% p.a. 

6 Growth of Own Sources of Revenue Income 76.21% p.a. 

7 Per Capital Own Income 

9.6.2 Fund Application Indicators 

Rs. 369/- 

p.a. 

These indicators are a measure to ascertain the utilization from the municipal fund. 

Around 42% of the revenue expenditure is spent on establishment heads, only 17% 

for municipal assets and services, leaving around 41% utilized for administration 

expenses and debt servicing. Establishment expenditure accounts for about 44% of 

the total revenue generated by the municipality. 



Table 9-26: Fund Application Indicators 


1 Per Capita Expenditure 

Rs. 542/p.a. 

2 Share of Establishment Expenses in Total Revenue Expenditure 41.71% 

3 Share of O&M Expenditure in Total Revenue Expenditure 17.05% 

4 Share of Establishment Expenditure to Total Revenue Income 44.06% 

5 Growth in Establishment Expenditure 2.62% 

6 Growth in O&M Expenditure 15.57% 

7 Growth in Total Revenue Expenditure 5.23% 

9.6.3 Liability Management Indicators 

These indicators are a measure to ascertain the utilization from the municipal fund 

regarding debt servicing. The ratio of debt servicing to revenue income is extremely 

high at 106% during the assessment period due to very high interest pay out. The per 

capita average debt outstanding works out to Rs. 646/- and the per capita 

outstanding debt to property tax demand is around 569% of the property tax 

demand for the current year, and both are very high during the assessment period. 

Table 9-27: Liability Management Indicators 


1 Per Capita Liability 

- Outstanding Debt per Capita Rs. 646/- 

- Outstanding Non Debt Liability per Capita - 

- Total Outstanding Liability per Capita Rs. 646/- 

2 As a proportion of Property Tax Current Demand 

- Outstanding Debt as % of Property Tax Demand 569% 

- Outstanding Non Debt Liability as % of Property Tax Demand - 

- Total Outstanding Liability as % of Property Tax Demand 569% 

3 As a proportion of Property Tax Own Revenue Income 

- Outstanding Debt as % of Own Revenue Sources 175% 

- Outstanding Non Debt Liability as % of Own Revenue Sources - 

- Total Outstanding Liability as % of Own Revenue Sources 175% 

4 Non Debt Liability as % of Total Liability - 

5 Debt Servicing Ratio 106% 

9.6.4 Overall Financial Performance Indicators 

These indicators are a measure to assess the overall financial performance of the 

Municipality with regards operational performance and effective growth in revenue 

income and expenditure. The average operating ratio during the assessment period 

was high at 91%. The indicators of growth in per capita income and expenditure 

item heads indicate the effective growth, giving a performance measure relative to 

the growing population. Gudiyatham Municipality has demonstrated annual growth 

in per capita revenue income of 11.38% during the assessment period, while the per 

capita revenue expenditure has grown at a negative CAGR of 2.85% during the 

- 85 - 



corresponding period, which indicates that as population increases revenue fund 

will be surplus. 

Table 9-28: Financial Performance Indicators 


1 Operating Ratio 91% 

2 Growth in Per Capita Own Revenue 17% 

3 Growth in Per Capita Grant 1.41% 

4 Growth in Per Capita Total Revenue Income 11.38% 

5 Growth in Per Capital Establishment Expenditure 0.50% 

6 Growth in Per Capita O&M Expenditure 12.22% 

7 Growth in Per Capita Revenue Expenditure 2.85% 

9.6.5 Efficiency Indicators 

These indicators are essentially a measure to assess municipal efficiency with 

regards revenue base coverage and utilization. Gudiyatham Municipality has low 

collection performance both with regards to all sources of Own Revenue (Property 

Tax - 65%, Profession Tax ñ 70%, Water Charges ñ 40% and Non Tax Income ñ 70% 

respectively). The average population per residential assessment at 9.09 persons 

indicates that the property tax base has a very low coverage. 

Table 9-29: Efficiency Indicators 


1 Tax Collection Performance (Current) 

- Property Tax 65% 

- Profession Tax 70% 

- Water Charges 40% 

- Non Tax Income 70% 

2 No. of Property Tax Assessments per Tax Collection Staff 1423 Nos. 

3 Property Tax Demand per Assessment Rs. 735/- p.a. 

4 No. of Municipal Staff per 1000 Population 2.83 Nos. 

5 Annual Revenue (Own Source) per Municipal Staff Rs. 1.44 Lakh p.a. 

6 Population per Residential Property Tax Assessment 9.09 persons 

Note : 

The detailed financials of Gudiyatham Municipality comprising Income & 

Expenditure Statement, Balance Sheet, Demand Collection Balance Statement, 

and Growth in Income and Key Indicators for the last 6 years are given as Annexure. 

9.7 MEASURES TO BE TAKEN FOR IMPROVING COLLECTION EFFICIENCY 

The average collection efficiencies under the various heads of revenue works out as 

below : 

Particulars Current Arrears 

Property Tax 57.72% 19.88% 

Profession Tax 62.99% 11.89% 

- 86 - 



Water Charges 46.19% 20.75% 

Other Fees 70.54% 18.47% 

The collection efficiency under all the heads of income is between poor to average 

and needs to be improved. 

Implement door-to-door collection mechanism, whereby property tax and water 

charges are collected from every household by the municipality staff. A 

separate collection team to be formed for this purpose, which will visit all the 

households and collect tax. A mobile collection van has been provided for this 

purpose in the FOP, which will help the staff in collection mechanism. 

Launch a focused drive on existing arrears. 

Conduct one time settlement scheme for old arrears and incentivise payments 

through marginal rebates for arrears > 5 years. 

Implement payment due date along with a 90 day grace period during which 

payments would involve a nominal interest payment. 

Payments beyond the grace period should include a steep penal charge to 

encourage payments on time. 

Work with GoTN to moot creation of a special tribunal for speedy disposal of 

properties under litigation. 

In case of disputed property tax, the assessee should first pay the tax under 

protest as in the case of excise or customs and then take necessary legal course. 

The Act should be modified in such a way that no legal recourse should be 

available to the assessee without paying the tax under protest. 

The billing mechanism, accounts and DCB Register should be fully computerized. 

This will help the Municipality in providing ready information on defaults and help 

in speedy recovery process. 

With regard to improvement in collection efficiency of water charges, the 

Municipality should first improve the service levels. The Municipality should 

conduct a survey on the present service levels and identify places where service 

levels are good. The Municipality should then do a focused drive on these blocks 

with good service levels and implement various collection measures given 

above. 

The Municipality may also consider implementation of late payment fines and in 

case of extreme overdue situations, disconnecting supply. 

As regards blocks with low service levels, the Municipality should improve the 

service levels and effect various measures to improve the service levels. Only 

with improvement in service levels, the collection efficiencies can be improved. 

- 87 - 



As regards Other Fees, which basically comprises rent / lease from various assets 

of the Municipality, the Municipality should send eviction notices to the 

defaultees. Unlike property tax and water charges, the Municipality can enforce 

eviction of defaultees. 

- 88 - 



10 CAPIITAL IINVESTMENT NEEDS FOR IIDENTIIFIIED 

PROJECTS 

All the projects relating to urban infrastructure, urban growth and development 

have been identified through a conscious participatory process. The projects are in 

the form of improvements and, extension of the existing services and facilities such 

that the present inadequacies as per the norms and standards are made up and, in 

addition meet the requirements of the projected population of the town during the 

perspective period of plan. 

Each project component, as identified has been verified in the field of their 

suitability and feasibility in terms of location, coverage and adequacy and finalized 

with as intensive consultation with the office of the municipality and as suggested 

and recommended in the review meetings of the previous stage of this exercise in 

the office of TNUIFSL. The projects thus finalized and firmed up are detailed thus 

finalized and firmed up are detailed out in their present status, gaps, projected 

requirements, cost estimates, capital needs, funding pattern etc in the following 

section. In all the identified projects constituting physical and social infrastructure 

facilities and other projects including bus stand, remunerating projects are including 

cost about Rs. 164.34 crores to be implemented starting from the current financial 

year. These projects have been prioritized as warranted in their importance over the 

implementation time frame. The Capital Investment Plan has been prepared based 

on Gudiyattam Master Plan of the DTCP. 

The projects, breakup of the investment and implementation schedule are given in 

the following tables: 

Table 10-1: Summery of Capital Investments under CCCBP 

S. No. Focus Area Total Cost Rs.in Lacs 

1 Water Supply & Mettur scheme 8224.33 

2 Sewerage & Sanitation 4083.63 

3 Solid Waste Management 853.08 

4 Drainage 312.00 

5 Traffic & Transportation 874.19 



8 Parks 77.00 

9 Market 1027.00 

10 Slaughter house 8.00 

11 Burial ground 75.38 

12 Urban & Municipal Reform 48.00 

13 Slum Up-gradation including 554.00 

14 Total 16433.67 

. - 89 - 



10.1 PHYSICAL INFRASTRUCTURE - IMPROVEMENT NEEDS 

In chapter -6 the problems and issues of the physical infrastructure as well as social 

infrastructure sector has been identified. Also the projects identified by the 

municipality for the following sectors which are mostly curative measures in the 

particular sector and not for the future needs. Here it is discussed about the 

shortcomings in the projects identified by the municipality or by the different 

agencies i.e. Municipality, TWAD board etc. and discuss about the improvement 

needs, future proposals and funding pattern. 

10.1.1 Water Supply: 

1. Improvement Needs: 

The frequent bursts and leaks in the main from Palar Head Works and Goundya River 

is causing problem. Though the municipality has meted out temporary repairs, a 

permanent solution is required for an effective distribution of water supply to the 

town. The lines were mostly laid more than 30 years before and they need 

replacement. So there should be a comprehensive study for effective solution for 

water supply provision and rezoning. 

2. Water Supply Proposals 

The TWAD Board has estimated additionally 3 numbers of infiltration well , 3 open 

well , 15 deep bore well ,and distribution line 42.336 Km of sizes varying 90 to 140 mm 

PVC 6 KSC km and 2 Service Reservoir. The total cost of the estimate around 5.90 

Crores. 

The main draw back of the proposal by the TWAD board is in terms of supply side as 

they had proposed the supply of water to 70 % population through House Service 

Connection and 40 LPCD for 30 % population through Public Fountain at the 

intermediate year 2024.But, there has no further improvement on increasing water 

supply to 135 lpcd, because the yield of both Palar and Goundanya river was an 

reducing stage only. 

As per TWAD board proposal, the water demand at intermediate year 14.26MLD, 

they proposed additional infiltration wells, bore wells and open wells are met upto 

11.59 MLD.The Ultimate demand shall be fulfilled using combined Mettur scheme. The 

Detailed Project Report for this scheme is under preparation by TWAD Board. The 

water allotment details from Mettur scheme for various municipalities are shown in 

Figure 10.1 

The existing Transmission line already exceeds its design period, the replacement of 

transmission line at a cost of Rs.1.72 Crores. 

As of now, there has no bulk meters system in exiting system as well as proposed 

scheme also for the leakage detection. The Bulk metering system required in head 

works and service reservoir will therefore have to be implemented. The System was 

taken up to install 7 Nos, at a cost of Rs. 21Lacs. 

. - 90 - 



It is important to assess consumption at the consumer ends which will helpful for 

performance of production system and supply side. Installation of good consumer 

meters will be starting point of recovery of cost of production and supply. For the 

horizon year 2039, it requires Rs. 1.28 Crores. 

The exiting water supply system has not proper disinfection system. As of now, 

bleaching powder only is used as disinfectant, so the installation of chlorinatiors will 

therefore be an important to health aspect. It estimated cost of 45 lacs . The 

description of fund requirement for the water supply sector is given in the table 10.3: 

The mettur scheme has been identified for combined water supply scheme for this 

municipality. The schematic and proportionate cost details of mettur scheme is 

presented in the below figure 10.1. 

The water can be drawn from palar river upto intermediate stage 2024 and after 

intermediate stage the mettur scheme can be used. The capital cost of mettur 

scheme is Rs. 1170 crores and O&M cost is Rs 40 crores per annum. The proportionate 

capital cost of Gudiyattam municipality is Rs. 72.11 crores and O&M cost is Rs. 2.47 

crores. 

The total estimated cost including renovation of existing water supply scheme is Rs. 

8224.33 lacs. 

. - 91 - 



Figure 10-1: Mettur Combined Water Supply Scheme 

- 92 - 



Table 10-2: Investment requirement in water supply sector for Gudiyattam 


S.No Description Amount Rs in Lacs 

1 Source Augmentation 

Bore wells 9.15 

Open Wells 18.55 

Infiltration well 22.95 

2 Transmission System Improvement 

Pumping Main 154.21 

Sump 2.58 

Pump Room 2.71 

Construction of Service Reservoirs /Overhead tanks 

73.90 

Renovation of Transmission Line 172.80 

3 Improvement of Distribution System 

Supply and installation of bulk water meters (7) 21.00 

Supply and installation of consumer water meters 127.92 

Supply and installation of vaccum feed chlorinators( 

3NOs) 

Coverage of services in new areas/ uncovered areas & 

replacement of existing distribution line 

4 Up-gradation of Existing System 

- 93 - 

45.00 

292.06 

Rehabilitation of existing reservoirs (2 Nos) 62.50 

5 Water Management Programme 8 

Rain Water Harvesting in Robbinson Park area 8 

Total 1013.33 

10.1.2 Sewerage System 

1. Needs: 

At present there is no underground sewerage system in the Municipality. The 

sewage and sullage water are discharged in the open drains and finally let in to the 

Goundanya River and Palar river without any treatment. This disposed sullage and 

sewage in to Goundanya River and Palar river causes severe environmental 

degradation and Pollution of water source in Palar river and Goundanya river. 

But Government of Tamil Nadu has proposed to lay new system in every municipality 

in Tamil Nadu. 

There has totally 18 public toilets are maintained by the municipality. Out of 18, 3 

from ISP scheme and 5 from VAMBAY scheme toilets are maintained properly by the 

Self Help Groups. Remaining 10 public toilets require improvements. 



2. Sewerage Proposals 

The Detailed Project Report was prepared by TWAD Board. They estimate total 

length of sewerage 72.44 km and the sub pumping Station located one in northern 

bank of river Goundanya and another one in southeren bank of river Goundanya. 

The Sewage Treatment Plant of capacity of 31.39 mld (ASP Technology) is proposed 

to be located near Indira Nagar 

The two new public conveniences to proposed in sheriff Nagar and Ashok Nagar at 

an estimated cost of Rs. 4083.63 Lacs 

Table 10-3: Capital Investment Needs for the Sewerage System and Public 

S. No Descripition 

Conveniences 

- 94 - 

Cost in Rs. 

Lacs 

1 Collection system 1371.00 

2 Pumping station, pump sets 234.79 

3 Pumping Main 299.16 

4 Sewage Treatment Plant 600.00 

5 House Service Connection 444.74 

6 Sewage Cleaning Equipment 35.00 


7 Physical Contingencies at 2.5 % 74.62 

8 Unforeseen items of work at 2.5 % 74.62 

9 

10 

Sub Total II 3133.93 

Supervision Charges at 5 % 156.70 


Miscellaneous Items of works such as Road Restoration 

,EB Deposit, Deposit to Telephone Dept 

47.94 

Add 1 % for Inter Dept Permission on Miscellaneous 

Items 

0.47 

Sub Total IV 3339.03 

11 Add for price escalation at 10 % for 2 years 700.81 

Total 4039.84 

12 Public Conveniences 

New Toilets at Ashok Nagar & Sherif Nagar 

16.29 

10.1.3 Drainage 

1. Needs: 

Up gradation of existing 10 public toilets 27.50 

Grand Total 4083.63 

The existing drainage condition of Gudiyattam consists of tanks and manmade 

drainage system (Storm water open drains). Due to the natural slope of the town, all 

the drains discharge water in Palar River. The present condition of Storm Water 



Drainage is that it also carried the sludge and sewage water, which ultimately 

carried to the Palar River. This has created enormous environmental problems. Also 

there are certain length of roads which is unlined and needs to convert them in 

lined drains to use the Rain Water Harvesting in an effective way. 

2. Drainage Proposals 

The existing storm water drains are not up to mark as the pucca drains are open and 

the kutcha drains are cover 79 % of the road length. Items including main roads 

having puuca and kutcha open drains are converting to pucca closed drain is 

estimated to Rs. 88 Lacs. The major construction is required on the following drains 

and the rest of the money will be spent on up-gradation of household drainage. 

The wastewater including sewage and sullage could be treated in decentralized 

treatment units that could be located in each of the natural drainage in the town. 

After UGD scheme implementation, it take care of the sewage is in the process of 

being implemented. Therefore, only the sullage and storm water need to taken care 

of and both these items could be carried by the road side. 

Accordingly, the suggested improvements are as under: 

i) the exiting puccca drains are open and they should be covered with 

meshed openings at regular intervals say 30 meters 

ii) The kutcha drains and the ìno drain ìstrectches should be provided with 

pucca closed drains. 

Table 10-4: Capital Investment Needs for the Storm Water Drainage System 

S.No Street Name Length (m) 

- 95 - 

Amount Rs in 

Lacs 

1 Alathr Dathamiyan street 143 3.24 

2 Aliyar Street 445 10.07 

3 Madar street 390 8.83 



7 Kaspa main road 20 0.45 

8 Arasamara street Main road 100 2.26 

9 Arasamara street Main road 145 3.28 

10 Public road 115 2.60 

11 Teacher's colony 195 4.41 

12 Vaithesvaran I st Main Road 280 6.34 

13 Congress House Road 140 3.17 

14 Thenkulakkarai 90 2.04 

15 Thenkulakkarai 95 2.15 

16 Kosa Annamalai street 412 9.33 

17 Gandhi Road 500 11.32 

18 Kallore road 480 10.87 

Storm drain for new layout 223.64 

Total 3903 312.00 



10.1.4 Solid Waste Management 

1. Needs: 

Domestic waste consists of wastes generated at the household level, primarily 

houses. The household waste is dumped at various community collection points 

spread over entire town. Though municipality is doing its best to manage the solid 

waste yet it is not up to the mark to manage the solid waste from collection to 

disposal and lot has to be done for it. 

Community Participation: Current level of participation in Gudiyattam is very low. 

There are NGOs operating in the city, especially in health and sanitation sector. Due 

to semi urban characteristics of the town there are not many residential colonies in 

the city. Due to this fact, community level organizations such as residence welfare 

associations do not exist in the town. Street plays and ward wise meetings are 

conducted to motivate the people. 

Community Education: The steps involved in implementing and ensuring community 

participation will comprise formulation of neighbourhood communities, residential 

welfare associations or other community organizations, identification and 

mobilization of NGOs and other social welfare groups in the town. 

Conduct Sanitation Campaign: Vigorous sanitation campaign across the town could 

also be taken up emphasizing the need for storage and segregation, recycling and 

reduction and local composting of wastes. In these campaigns, the school children 

and NGOs shall also be involved so that the message of the campaign reaches the 

community. 

Campaigning and Environmental Awareness: Media is another important tool in 

environmental education, hence extensive campaigning through electronic media, 

print media, mass media and other means on environmental sanitation and solid 

waste management could carry out 

2. Solid Waste Management Proposals 

Based on the situation assessment and consultations with stakeholders, following 

urgent improvement needs has been identified for Compost Yard, landfill and 

transportation facilities. 

House hold dust bin - 63690 number to be used for segregation of wastes at 

source 

50 Tricycles & 10 Push carts shall be used by sweepers in the town 

20 Auto Tippers to collect wastes from narrow lanes of the town 

4 new dumper placer to carry secondary collection work 

6 container body kept in transfer station 

- 96 - 



As per standard, every 10,000 population required 1 Acers. At present 14.81 

acres available, for ultimate stage it require 1.19 Acres. 

1 JCB for disposal site and composting operating plant operation 

The feasibility studies under progress by Anna university to centralize sanitary landfill 

which requires for Gudiyatham, Ambur, Vaniyambadi and Pernampet 

Municipalities. 

Also it is not viable to propose a separate Sanitary landfill facilities for each 

municipalities, since land is not available to construct sanitary landfill. So, it is 

proposed to construct combined sanitary landfill at Agaramcheri village and Ulli 

village to the above mentioned municipalities. Figure10.2 shows the location of 

identified site for sanitary Landfill. The proportionate cost for the construction of 

Sanitary Landfill is presented in Table 10.5. 

The estimated cost for improvement of solid waste Management of Rs. 853.08 Lacs 

including proportionate cost for landfill. 

Figure 10-2: Site Identification for Landfill 

- 97 - 



Table 10-5: Capital Investment Needs for the Solid Waste Management 


1 Improvement of Solid Waste Collection System 

Purchase and Distribution of household dustbins i.e. 

Segregated Format 

2 Improvement of Solid Waste Transportation System 

- 98 - 

31.98 

Auto Tippers (20 Nos.) 26.00 

Tricycle (50 Nos.) 8.50 

Push Carts (75 Nos.) 9.00 

Dumper Placer (2 Nos) 29.00 

Dumper Body Container (4 Nos.) 33.00 

3 Improvement of Solid Waste Disposal System 

Land Requirement for Compost Yard 11.90 

4 Purchase of Equipments for Landfill site 

Management 

Bulldozer (1 Nos) 70.00 

JCB (1 Nos.) 25.00 

Turner 10.00 

Wind Rose Platform 30.00 

Compound Wall 6.00 

Electricity 2.00 

water Supply/ OHT 2.00 

Internal road 4.00 

Watch man Shelter 1.00 

Weigh Bridge 10.00 

5 Innovative Projects for Waste Disposal 

Land Fill Development cost 468.00 

Land for Land fill (7.57 Acres) 75.70 

Total 853.08 

10.1.5 Street Light 

1. Needs: 

In the midst of unplanned growth of the town, there are numerous places with in the 

town where street light is essential for security. High mass poles of 25m height are to 

be installed at suitable places with in the town. As the city is under the pressure of 

heavy maintenance and electricity bill of street lights it need innovative ideas to 

reduce the reoccurring expenditure in this sector. 

2. Street Light Proposals 

The suggested innovation of existing street light with automatic timer switch, high 

mass light and retrofitings etc., is required. The total estimate cost for street light is Rs. 

55.68 lacs. 



Table 10-6: Capital Investment Needs for the Street Light 

S. No Description Amount in Rs Lacs 

1 Proposed new lights 40.00 

2 Retrofitting exisitng lights & energy saving devices 15.86 

Total 55.86 

10.1.6 Roads and transportation 

1. Needs: 

The town has lot of important roads which connect it with the surrounding and most 

important is Vellore and Gudiyattam road. One more major opportunity to develop 

the road is connectivity to Ambur town. There are city roads which need widening 

as well as resurfacing, apart from this these city roads are encroached and without 

drainage facility and side walks. So these roads need improvements. 

2. Road and Transportation Proposals 

The capital works relating to improvements of roads in-terms of converting exiting 

earthen road and WBM roads to new Concrete Road. Also included the road 

widening, road junction improvements and bus stand at an estimated cost of Rs. 

874.19 Lacs. 

Table 10-7: Capital Investment Needs for the Roads and Transportation 


1 Road Widening 

Widening of internal city roads(Archnan Mudali 

Street, Aliyar Street , Melbut Road , Katpadi Road & 

Thalaiyatham Street) 

- 99 - 

15.00 

2 Road Improvement 

New Road Formation 123.13 

W.B.M. Roads to B.T 30.09 

Earthen Roads To CC 315.97 

3 Road Junction Improvement 

Public Road 5.00 

T.K Shetty Road 5.00 

Ambedkar Street 5.00 

Chitore Gate 5.00 

4 Proposed new roads 70.00 

5 Bus Stand Improvement 

Construction of new bus stand at Govt. higher sec. 

school ground 

300.00 

Total 874.19 



10.1.7 Educational Institutions 

1. Needs: 

The school needs relate to renovation of exiting old buildings, the A.C roof and 

Mangalore tiles are to be convert the R C C roof Structures, sports materials, 

computers and separate water supply arrangements 

2. Educational Institutions Proposals 

Some of the Municipal schools need improvement in building structures as well as in 

basic minimum facilities for the students. For improvements of the building, sports 

material, computers and separate water supply arrangements in 3 elementary 

school and one higher secondary school total investment need is Rs. 91.10 Lacs. 

Table 10-8: Capital Investment Needs for the Educational Institutions 

S. No. Description Amount in Rs Lacs 

1 Higher Secondary School 

Renovation of existing building 48.00 

Provision of computers/internet facility 0.90 

Providing additional furniture 1.50 

Electrical Arrangements 0.30 

Greenary in the school environment 0.40 

Sports utilities 1.00 


2 Gangadhara Swamy Municipal School 

A.C sheets convert to R C C roof 2.50 

Computers 0.90 

Toilet 0.80 

Water Supply 0.20 

Sun Total II 4.40 

3 Muslim Boys school 


Renovation of Existing Building 30.00 

water supply 0.20 


4 Muslim Girls School 


Roof Convert to R C C structures 2.00 

water Supply 0.20 

Renovation of Meal Centre 0.50 

sub total IV 3.60 


10.1.8 Health Facilities 

Needs: 

The municipality runs only one maternity centre in the town. Now only it was 

modernized by the municipality under part II scheme. Main needs of this maternity 

centre, they require specialized doctor. 

- 100 - 



10.1.9 Parks and Play Ground 

1. Needs: 

Restoration of parks with children play facilities, greenery, lawns, tree 

plantation etc. 

Development of new parks/ play fields 

Development of road side gardens through sponsorship 

Walkways all-round the parks 

Apart from acting as the lung spaces and recreation area to the local population, 

these parks could act as a temporary resting and refreshment area for the people. 

A look at the parks reveals that they are very poorly maintained and are used for 

other than the designated uses. All the parks require proper fencing for 

maintenance and right use of the land parcels; Landscaping of the parks is a must 

by planting of choice species. Provision of pathways along the periphery of the 

parks with shrubs and plantations on both the sides is one of the present 

requirements as walkways for all age groups of residents. 

Maintenance of greenery comprising shady, ornamental and avenue trees will 

greatly improve the quality and usage of parks. Fountains and water supply 

provisions should be provided in the parks at appropriate places. The maintenance 

of the parks may be entrusted to interested voluntary agencies on private 

participation/donation. Also some of the commercial houses may be involved in 

maintaining the parks providing appropriate advertising space. 

2. Parks and Play Ground Proposals 

Renovations of the existing Arun Nagar and Nehru Nagar parks including landscape 

of parks and play fields is estimate to cost Rs.45Lakhs. The New park to be 

developed at Rabbinson Street at an estimated cost of Rs. 32.00 Lacs. 

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

S. No. Description Amount in Rs Lacs 

1 Existing Park(Nehru & Arun Park) 

Water supply 

- 101 - 

1.50 

Lighting 

5.00 

Compound wall 9.00 

Childrenís play material 1.00 

Adequate seating arrangements 2.00 

All around Path Way 2.00 

Water casecade & fountains 2.00 

Sub Total -I 22.50 

Total( for 2 parks) 45.00 

2 Robbinson Park ñ New Park 

Lighting 4.00 



Compound wall 15.00 

Water supply 2.00 

Childrenís play material 1.00 

Adequate seating arrangements 3.00 

All around Path Way 5.00 

Water cascade & fountains 2.00 

Sub Total -II 32.00 

Total 77.00 

10.1.10Market Development 

1. Needs: 

The existing market of municipality needs the basic infrastructure facility, lighting 

arrangements and Vehicle Parking. it is also one of the most remunerative project to 

the municipality . 

2. Market Development Proposals 

The improvement for the exiting 2 daily market and 1 weekly market needs Rs. 27.00 

lacs for following items i.e. water supply arrangements, toilets, lighting arrangements 

and vehicle parking lots are included in the estimation cost . 

One more new shopping complex are also proposed and built in Rabbinson open 

area. Totally 150 numbers of new shop are to be built with an basic infrastructure 

facilities at an cost of Rs.500 Lacs. 

Table 10-10: Capital Investment Needs for the Market Development 

S.No Description Amount in Rs Lacs 

1 Improvements of Market 

Water Supply arrangements 2.00 

Lighting facilities 2.00 

Vehicle parking stand 2.00 

Urinals 3.00 

Sub Total - I 9.00 

Total ( for 3 market) 27.00 

2 Shopping Complex at Robbinson 500.00 

3 

Modernised Shopping complex at old bus 

stand 

500.00 


10.1.11Slaughter House Development 

1. Needs 

There is one slaughter house located in the municipality limit. Its renovation work was 

completed recently .But treatment system was not provided in that slaughter House 

- 102 - 



2. Slaughter House Development Proposals 

The treatment system is proposed for the existing slaughterhouse at a cost of Rs. 5.00 

lakhs 

Table 10-11: Capital Investment Needs for Slaughter House Improvement 


1 Improvement to Slaughterhouse 

Providing treatment unit to proper disposal 8.00 

Total 8.00 

10.1.12Burial Ground Development 

1. Needs: 

The existing burial grounds need the compound wall, prayer hall and adequate 

lighting facility. 

2. Burial Ground Development Proposals 

The estimated cost for the both burial grounds with inclusion of Gasifier 

Crematorium, Compound wall and Lighting facility at a cost of Rs.70.38 Lacs. 

Table 10-12: Capital Investment Needs for Burial Ground Development 


1 Existing Burial Ground 

Solar Light - 8 Nos 2.19 

Compound Wall 2.00 

Water Supply Arrangements 1.00 

Concrete Road 2.00 

Prayer Hall (Thidhi) 5.00 

Office and security room 2.00 

Landscaping and planting trees 1.00 

Sub Total 15.19 

Sub total ( for 2 Burial Ground) 30.38 

Gasifier with Room (for One Burial 

Ground) for R.S Road Junction 

- 103 - 

45.00 

Total 75.38 

10.1.13Slum Improvement 

1. Needs: 

Nearly, 18 slums are identifies with a population of 16,425 (2737 House holds), which 

account for 18 % of the total population in the town. The slums are mainly lack in 

physical infrastructure facilities 



2. Slum Improvement Proposals 

The estimate cost for construction of shelter, Public toilets, Drainage facility, water 

supply arrangements and street lighting around Rs. 554.00 Lacs. 

Table 10-13: Capital Investment Needs for Slum Improvement 


1 Shelter 333.00 

2 OHT 38.00 

3 Strom water drain 76.00 

4 C. C. Road 96.000 

5 Street Light 11.00 

Total 554..00 

10.1.14System Improvement and E-Governance 

1. Needs: 

Till date there is no entirely dependable and realistic database for the town, in form 

of topography, updated base map, assessment of properties in their location, size, 

use and intensity, assets ñ lands and structures in their location, status, extent and 

quality, topography, land parcels by town survey, numbers and sub divisions and so 

on. All these can be updated with cent percent precision using high resolution 

satellite imageries supplemented by cent percent primary survey. All these with 

spatial and non-spatial data can be had on a GIS format which, on a click at any 

features or site on the town map will provide the entire details including the 

description of the features / address of the owner including tax paid etc. This is a 

one time 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. 

2. System Improvement and E-Governance Proposals 

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. Apart from this GIS is a perfect 

solution for upgraded information in terms of grievance redrassal as well as property 

tax collection. Also these upgraded solutions will provided to monitor the city growth 

for future. Computerization of ULB is required and each person above LDC level 

should be trained to operate the computer system. There is a need that the ULB 

should upgrade the website on daily basis and there should be uniformity in the 

content provided in the website of the ULBs in Tamil Nadu. The total estimate cost for 

e-governance around Rs. 38 Lacs. 

- 104 - 



Table 10-14: Capital Investment Needs for the e-Governance 

S.NO Description 

1 e-Governance 

- 105 - 

Amount in Rs. 

Lacs 

GIS Mapping for Comprehensive Property Database 20.00 

Software, Hardware & Networking for Municipality 18.00 

2 Mobile tax collection vehicle 10.00 

Total 48.00 

10.2 OTHER DEPARTMENT PROJECT 

1. By pass road 

Due to traffic congestion in the Railway station road ( Main road), the buses and 

other heavy vehicles very difficult to passes this road and takes more time also . 

Both sides of the main roads are occupied by the traders, government office and 

schools, so it is very difficult to expand the both side of the existing main road. 

State Highways department finds three options for by pass road from Palmanar road 

to Pernampet road (nearly 5 km). The feasibilities study is under progressing by State 

highways department and rough/ tentative cost about Rs.13.64 Crores. 

2. Bridge Across River 

The Goundanya Mahanadhi river passes through Gudiyatham Municipality .There is 

a existing river cross road connecting Melpet and Rajendra-singh area. 

Generally the river bed at this Junction is dry in condition but during rainy season, 

the exiting access road across the river will be submerged. So itís proposed to 

construct cross bridge across the river in the same location by PWD. The length of 

cross bridge is about 500 m. The total cost of is about Rs,24 Crores. 

Table 10-15: Project to be taken by Other Department 

S.N 

o Project Description Nodal Agency 

1 

2 

3 

4 

Cost (Rs.in 

lakhs)- 

Regional Level 

River Conservation Plan for 

Goundanya River Water Resources department 

Handloom Export promotion 

Council [Union Textile ministry 

.. 

Feasibility study for establishment of and Dept of Handloom and 

Handloom Export Zones 

textiles] 

Handloom market promotion 

.. 

Feasibility study for setting up of council [Union Textile ministry 

market complex for handloom and Dept of Handloom and 

goods 

Preparation of Regional Traffic 

textiles] .. 

Operation and Management Plan NHAI 5.00 

Town Level 

5 Feasibility study for Bye pass road NHAI 

Study under 

progress 



6 

7 

Construction of bridge across 

Goundanya Mahanadhi river 

connecting Melpet and Rajendrasingh 

area. 

Awareness campaign for NGOs on 

their roles and responsibilities in 

Water Resources department 2400.00 

community development Municipality 5.00 

- 106 - 



11 RIISKS AND MIITIIGATIION MEASURES 

11.1 PROJECT RISK AND MITIGATION MEASURES 

Risk is an integral ingredient in any project venture. Projects without risk are not 

heard to have met with great success. Particularly the project package such as this 

for a Municipal body has multi-various risks as it is mainly with the public of different 

attitudes, background, profession and traits. As such the local bodies are facing 

problems of complex nature even in carrying out their rightful functions and duties. 

The project risks identified are addressed below 

1. Environmental risks* 

2. Social risks* 

3. Site risks 

4. Implementation risks 

5. O&M risks 

6. Financial risks 

7. Market risks 

8. Risks due to Natural disasters 

9. Risks in private participation 

Though the projects identified under the CCCBP do not mostly constitute as sensitive 

environmental components, but come under various degrees of environmental 

concerns. The identified projects are categorized under the environmental concerns 

relating to E1, E2, E3 and Based on the Project Affected Area (PAP) and the level of 

social impact as S1, S2 and S3. 

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

projects ñ Gudiyatham 

No. Project Items Environmental Category Social Category 

1 Water Supply E2 & E3 S2 

2 Sewerage System E2 S1 

3 Storm Water Drains E2 S2 

4 Solid Waste Management E1 & E2 S2 

5 Roads E2 S3 

6 Bus Stand E2 S2 

7 Street Lights E3 S3 

8 Parks and Playgrounds E3 S2 

9 Burial Grounds E2 S2 

10 Public Convenience E2 S3 

11 Medicare E2 S2 

12 Slum improvement E3 S1 

13 Market E2 S2 

14 GIS database E3 S3 

15 E-governance E3 S3 

- 107 - 



Note: 

E1 projects relate to those where major environmental impacts are foreseen 

warranting Environmental Assessment Report (EAR). 

E2 projects are moderate in environmental concerns. 

In E3 projects, no environmental issues are foreseen 

S1 projects will affect 200 people or more. 

S2 projects are those where no PAP is physically displaced and less than 10% 

of the productive assets are lost. 

In S3 projects, no household will be affected. 

The risks involved in the identified projects and the mitigation measures are given in 

the table below 

Each of the above categories are detailed out in the table below: 

Category Mitigate measures 

Land interests and land acquisition 

Resistance from public 

Delay due to statutory approvals 

Un-suitable site conditions. 

Environmental issues 

Site risks 

Providing all land related information to the 

contractor 

Community consultations to ensure least resistance 

from local population 

Interfacing with all concerned departments to 

ensure land approvals or reduce bottlenecks 

Careful site selection after detailed investigation of 

site history and characteristics 

Addressing all related environmental issues before 

the bid process , including impact assessments 

Implementation risks 

Risks related to design ,construction and commissioning the projects such as: 

Design flaws 

Non - availability of suitable contractor 

due to the simultaneous execution of 

similar project in many ULBs near by. 

Time and cost over runs 

Defaulting in meeting dead lines in 

construction and commissioning 

Review of proposed design by Government, 

parstatal agencies. 

Ensure correction of design and construction 

defects before commencing service delivery 

Consolidating contract packages and calling 

tender at state level or National level. 

Short listing of potential contractors at regional 

level and Tendering the contract in a planned 

manner. 

Proper specification of project outputs and core 

services to be delivered. 

Linking contracting services to key performance 

indicators and in turn to the payment schedule 

- 108 - 



Ensuring service delivery 

Independent commissioning tester to ensure 

delivery of the required performance. 

O&M risk 

Increase in predicted operating costs Address future service delivery demands also 

Impact of design flaws & defective 

construction, deterioration of 

performance standards 

Technologically outmoded practices 

Inherent defects of the system 

Defaults from designer, builder and 

operators 

Funding uncertainties 

Cost escalation 

Delays in financial closure of the project 

General economic down turn 

Changes in Government policies, 

Shift in industry focus 

Operating guarantees/performance bonds to 

ensure service continuity and compensation for 

default 

Inbuilt options for upgrading technology as the 

contract term proceeds 

Escrow mechanisms to ensure protected cash 

flows and enforce during service/operational 

default 

Financial risks 

- 109 - 

Termination rights in case of insufficient 

delivery/break down in service provision 

Ensuring project structure, in-built contractual 

provisions and foreseeing risks make the project 

bankable, addressing lender related issues. 

Mitigate risks arising from inflation, interest rates, 

foreign exchange rates etc. 

Avoid looking for the lowest cost bid- base 

selection upon financially sound structure and 

business plan 

Market risks 

Quantify demand, providing demand related 

information at the bid stage 

Initiate feasibility studies, demand forecasting, 

sensitivity analysis. 

Change in target-market competition Incentives to stimulate end-users 

Floods, Cyclones, Earth quakes, Tsunami 

Insurance coverage 

Interruption in Service delivery 

Risks from Natural disasters 

Minimize impacts through appropriate insurances 

to transfer risk to insurer 

Regularly review insurance policies to ensure 

effective and adequate coverage 

Appropriate action plans for temporary service 

arrangements 

Risks in Private sector participation 



Project initiation 

Private operator 

Lack of service delivery 

Inadequate capabilities for legal and 

technical issues 

Delays due to statutory approvals 

Delays due to land acquisition 

Unforeseen risks to private operator 

Technically out dated mechanisms 

Specify desired project outcomes, taking into 

account Govt. policies 

Ensure sound financing pattern or the model on 

which the private sector has based its 

participation 

Ensure Government rights to take over some or all 

of the sub-contracts of the private party in case of 

its failure to perform. 

Contingency plans for continuation of core or 

ancillary services 

Ensure and technical legal ability to contract with 

private party 

Identify and facilitate Govt. approvals-related to 

planning, environment etc 

Anticipate ,identify and resolve land tenure issues- 

Acquisition , title, encroachments, usage of land 

Insurances to cover aspects like ownerís liability, 

asset risks, business interruption, some policy risks, 

natural disaster. 

Incentives to private sector to incorporate latest 

technology by making the design consultant, 

builder and the operator part of the OWG 

- 110 - 



12 REFORMS AND ACTIION PLAN 

A City Corporate cum Business Plan (CCCBP) is essentially a road map to achieve a 

set of development objectives within a specific period. This CCCBP has identified 

gaps in municipal service delivery and institutional management, ascertained by 

expert analysis and stakeholder feedback. The proposed interventions for the 

Municipality are in the form of reforms, action plans and strategies to achieve the 

same. 

Strategies and Action Plans are the elements which bridge the gap between the 

Proposed Reforms and implementation. The following sections detail out the 

strategies and Action Plan plans for the proposed Reforms and interventions in the 

areas of revenue enhancement, privatization, computerization initiatives, energy 

efficiency and municipal service delivery. 

12.1 PRESENT SCENARIO IN URBAN REFORMS 

ìReforms 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. ì 

The following are the key reforms implemented by the GoTN : 

1. Devolution of funds: 3.5% of Stateís total tax revenue passed on to urban local 

bodies. 

2. State Finance Commissions: Three consecutive state finance commissions 

were setup for recommendations to Government. 

3. Setting up of TNUDF: A successful private-public partnership initiative to tap 

the capital market. 

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

implemented in all the urban local bodies. 

5. Computerization and E-governance of select Municipal functions have been 

successfully implemented in all urban local bodies. 

6. Urban indicators: Performance assessment of ULBs initiated by CMA 

- 111 - 



7. Revision of Property tax : With effect from April 1.2008, subject to a maximum 

of 1.25 times the existing tax structure. 

8. Debt monitoring cell: It has been established with office of CMA with the 

objective of collecting financial information on individual ULBs, assisting them 

in making realistic financial projections and facilitating the Urban Local Bodies 

to access the Capital Markets by information dissemination from CMA office. 

9. GIS for 5 urban local bodies: Consultancy for Preparation of Property 

mapping and Utility Mapping for Madurai, Coimbatore and Tiruchirappalli 

Corporations and Rajapalayam & Gobichettipalayam Municipalities has 

been initiated as a pilot project by the office of CMA. 

10. ESCO Studies: TNUIFSL initiative for the Implementation of energy efficiency in 

Water pumping and Street lighting systems under performance contract. 

11. Right to Information Act, GoI : An Act to provide for setting out the practical 

regime of right to information for citizens to secure access to information 

under the control of public authorities, in order to promote transparency and 

accountability in the working of every public authority. 

12. Preparation of Human Development report for 5 Municipal Corporations 

under TNUDP-III, Commissionerate of Municipal Administration- to identify the 

strengths and weaknesses of each urban local body on the appropriate 

parameters. This would enable them to propose and implement schemes to 

overcome the shortcomings and improve the quality of life of their residents. 

12.2 PROPOSED INTERVENTIONS AT STATE LEVEL 

a. Property Tax 

Implement a framework law for disputed properties, so that the assessees pay the 

tax first and then carry out necessary litigation as in Central Govt. Depts. 

b. Community participation law 

Enacting the ìCommunity Participation Lawî that will make it mandatory for the 

government and its agencies to get the view of citizens, mainly residentsí welfare 

associations and other citizensí groups, before starting any project. 

c. Initiatives in Private Participation 

Frame work law for PPP as in Gujarat, Punjab and Andhra Pradesh ñ An enabling and 

regulatory framework for private sector participation. TNUIFSL may initiate capacity 

building in public institutions and private sectors for handling PPP projects. 

Setting up a PPP cell and creating database at the State level listing projects in 

various sectors of developmental activities for PPP participation. 

- 112 - 



Base source: www.pppinindia.com Fig 12.1 Organisation chart of PPP Cell 

- 113 - 



Infrastructural projects: 

Water supply project 

1. As regards water supply projects, the consultant proposes using available 

UGSS project 

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. 

1. Highly engineered and mechanized conventional sewage treatments require 

large Capital Investments, demand high maintenance costs and are not 

feasible for the developing countries like ours. Capital intensive and highly 

technological waste disposal solutions, utilizing indiscriminate collection and 

large-scale disposal, do not consider the value of recovering organic waste 

resources and do not promote recycling. The land required for the disposal of 

treated wastewater in the conventional treatment systems is not readily 

available. Alternative treatment systems like Root zone treatment methods 

could be used. 

2. GoTN may also encourage recycle of water, to meet requisite standards 

rather than let them out into streams or sewage farms. This will not only 

promote water recycling , but also resource recovery of minerals. 

Integrated Water Resources Management Plan (IWRM) ñ The solution. 

As a general rule, in the past with smaller populations, less intense economic 

activity and with less affluent societies demanding much less water, supply of the 

resource was usually much greater than demand for it. In such circumstances 

water for agriculture, for industry, for domestic and all other uses could be 

managed separately there being sufficient water to accommodate all needs 

and there being little competition between uses and between users. 

As populations have grown, as food production has increased, as economic 

activity has developed and as societies have become more affluent, so 

demand for water has burgeoned. The traditional fragmented or purely sectoral 

approach is no longer viable and a more holistic approach is essential. This is the 

rationale for the Integrated Water Resources Management (IWRM) approach 

that has now been accepted internationally as the way forward for efficient and 

sustainable development and management of the worldís limited water 

resources and for coping with conflicting demands. 

- 114 - 



ìIWRM is defined as a process that promotes the coordinated development and 

management of water, land and related resources, in order to maximize the 

resultant economic and social welfare in an equitable manner without 

compromising the sustainability of vital ecosystemsî. 

Source: Status Report on Integrated Water Resources Management and Water 

Efficiency Plans ñ UN water report. 

12.3 PROPOSED INTERVENTION AT MUNICIPAL LEVEL 

The Proposed Municipal intervention is broadly categorized under the heads of: 

1. Reforms in Resource Mobilisation 

2. Privatisation Initiatives 

3. Energy & resource efficiency 

4. Computerization and E-governance 

5. Accounts and Auditing 

6. Institutional Management 

7. Municipal service delivery 

12.3.1 Reforms in Resource Mobilisation 

In an environment in which business activity is booming and urban infrastructure 

threatens to become a constraint to growth, the municipalities are faced with an 

unprecedented need to find substantial resources for development, and an 

unprecedented opportunity to raise the same. The various options for enhancement 

of Municipal revenue based is discussed below: 

1. Improving revenue from own sources 

2. Improving revenue from user charges 

3. Formation of new sustainable revenue bases 

12.3.2 Action Plan : Improving revenue from own sources 

Strategy options : 

i. Property and Profession tax 

1. Expanding Property tax and Profession tax base. 

Onetime assessment of all unassessed and under assessed properties. This 

would increase the property tax revenue base by 20-30%. The project could 

be taken up as a door ñto ñdoor survey of all existing properties, with details 

on 

1. Size & built up area of the property 

2. Present use - residential, commercial, industrial or vacant. 

3. Number of households, houses, size of families, etc. 

- 115 - 



On comparing with other municipalities in Tamil Nadu, the household size 

(arrived from population and residential tax assessments) is 9.1, which is high. 

Thus it is imminent that the property tax mapping exercise needs to be taken 

up immediately to enhance the revenue generation of the municipality. 

Street naming and property numbering already undertaken by Govt. of Tamil 

Nadu needs to be linked to this to streamline the study. At the rate of Rs.30.00 

per property, the estimated cost for the project would be about Rs.5.00 lakhs. 

Property mapping would form a database for GIS projects (Land use and 

Utility Mapping), which is a long term project and in the rationalization of tax 

structure. The participation of the SHGs, (youth and women) could be utilized 

for the purpose. 

Identifying and including omitted Profession tax assesses - This project is to be 

linked to the property mapping exercise. An improvement of 20-30% on the 

existing tax base could be expected. 

2. Rebates on Property tax: 

Most of the collections take place during the last quarter of the year. This 

results in poor collection efficiency, wherein the ULB ends up collecting much 

less taxes than the tax demand raised. The option of providing rebates upto 

10% for ëearly birdsí 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. Mobilizing a ëFast Track Litigation Campaigní to settle disputes on 

properties. 

5. Levying Vacant Land Tax as per the recommendations of Third State 

Finance Commission. Empowering the municipality to convert non- 

claimed lands to socially benefiting uses. 

ii. Profession Tax Reform 

Revising the profession tax based on the Third State Finance Commission 

recommendations. 

iii Regularization of unapproved construction 

Regularization fees for unapproved constructions at the rate of 5 times the 

existing building license fee. 

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

Sl.No Reforms 

1 

Property tax Reform 

i Property Mapping √ 

- 116 - 

Year of Implementation 

Year 1 Year 2 Year 3 Year 4 Year 5 



2 

ii Rebates on Property tax √ 

iii 

iv 

Regular and periodic 

increment of property tax √ 

Mobilizing a ëFast Track 

Litigation Campaigní 

v Levying Vacant Land Tax √ 

Regularization of unapproved 

construction √ 

12.3.3 Action Plan : Improving revenue from user charges 

Strategy options 

i. Water supply and UGSS 

Approval of the Municipal council for the proposed tariff and deposit 

structure to enhance the public contribution and meet the entire O&M cost. 

Increase in the penetration of connections to at least 85% of total 

assessments. This backed by higher collection efficiency and enforced 

leakage losses (less than 15%) would further improve service delivery. 

Levy Reasonable User Charges to recover full O&M Cost of water supply and 

UGSS. 

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

domestic connections. This needs to be linked to property mapping project 

and type of assessment to be ensured. 

Mandatory mobilisation of deposits for Capital intensive WS or UGSS projects 

during pre-construction stage of the project. 

ii. Solid Waste Management 

Approval of the Municipal council for the proposed Solid waste conservancy 

charges for commercial and industrial establishments during the base year 

and after 5 years for domestic assessments. 

For implementing collection of conservancy fee for Solid waste Management 

.The proposed tariff structure is given below: 

Domestic - Rs.5 per month.(medium term plan) 

Commercial - Rs.10 per ton. 

Industrial - Rs.15 per ton. 

Bio-medical - Collected by IMA. 

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. 

- 117 - 

√ 



Revenue Generation from sale of compost at the rate of Rs.1000 per tonne as 

bulk supply to nearby agricultural areas. Incidentally, the manure generated 

from Municipal garbage is found to be richer in NPK values compared to the 

one available in the market. This has resulted in producing better yield of 

agricultural products both in quantity and quality. 

Sl.No Reforms 

1 

Water Supply and UGSS 

Table 12-2: Road Map Improving revenue from user charges 

i Increasing deposit and tariff √ 

- 118 - 



ii Graded tariff for UGSS √ 

iii Pre mobilization of deposits √ 

2 Solid Waste Management 

ii 

iii 

Collection of conservancy fee for 

Commercial and Industrial 

Establishments 

Collection of conservancy fee for 

Domestic assessments 

12.3.4 Action Plan: Formation of new sustainable revenue bases 


i. Remunerative projects 

To improve the revenue base of the municipality, following are the remunerative 

proposals identified. 

Construction of new bus stand at Govt. higher sec. school ground 

Improvements at Daily market & weekly market 

Construction of Shopping Complex at Robbinson tank 

Construction of Shopping complex at old 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 areas. 

Initiating time based pay and park facilities for vehicles. Appropriate rent structure 

from auto stands, LCV and heavy vehicles parking would also improve income 

generation. 

The proposed parking fee structure is: 

Bicycles - no tax 

Two wheelers - Rs.2.00 

√ 


√


Light Vehicles - Rs.5.00 

Heavy Vehicles - Rs.10.00 

iii Advertisement Regularisation Plan 

Identifying strategic locations such as bus shelters, road medians, for hoardings and 

poster places in Municipal area and levying advertisement tax at the rate of Rs.25 

per sq. ft per annum. 

To prepare an inventory of advertisement spaces within their limits with size and type 

.Auctioning the entire rights to a single bidder on an annual basis is suggested. The 

initiative of GoTN to remove hoardings and encroachments is a welcome step to 

regularize the advertisements and hoardings. 

iv. Collection of Annual Tract rent 

From cable T.V operators - (Rs.3.00 per running metre) 

From Telecommunication service providers - (Rs.5.00 per running metre) 

The urban local body may be empowered to collect the security deposits at 

Rs.10,000 per operator and revise the tract rent every three years. The collection of 

tract rent and deposits can be handed over to Youth SHGs. 

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

Sl.No Reforms 

1 Formation of new sustainable revenue bases 

i 

ii 

Premobilization of deposit for the 

construction of shopping complex at 

Robinson tank 

Premobilization of deposit for the 

construction of modernised Shopping 

complex at old bus stand 

- 119 - 



iii Parking Regularization √ 

iv Advertisement Regularization √ 

v Collection of Annual tract rent √ 

12.3.5 Action Plan: Privatisation Initiatives 

The present areas of privatization of the functions of the ULB in Tamil Nadu are 

i. Solid waste management - all components. 

ii. O&M of street lights. 

iii. O&M of water supply distribution. 

iv. AMC of public and pay & use toilet facilities. 

v. Parks and parking lots Maintenance and user charges collection. 

√ 

√ 



The GoTN states that this list is indicative and ULBs are free to explore more options. 

This would not only save the O&M expenses, but also indirectly in pension and 

gratuities. The various strategy options are discussed below: 


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 ëwillingness to payí 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. 

- 120 - 



Sl.No Reforms 

Table 12-4: Road Map for Privatization initiatives 

1 Privatization of Operation and Maintenance 

2 

- 121 - 



i water supply and Distribution system √ 

ii Sewer network & STP √ 

iv street lights √ 

vi 

vii 

AMC of Public and pay % use toilet 

facilities 

Parks and parking lots Maintenance 

and user charges collections 

Privatisation options in Solid Waste 

Management 

Privatization of Door to door collection of 

solid waste 

Compost yard management & sale of 

compost & scrap 

3 Privatization of Collection mechanism 

4 

5 

Spot billing and tax collection using mobile 

van 

Formation and sensitisation of youth & 

women SHGs 

Public awareness campaign for improving 

tax collection (IEC) 

12.3.6 Action Plan: Energy & resource efficiency 


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 preparation of Energy Saving Company(ESCO) studies for 

energy efficiency in the O&M of street lights and pumping machinery for select 

Municipalities throughout Tamil Nadu. ESCOs provide comprehensive services - 

√ 

√ 

√ 

√ 

√ 

√ 

√ 



encompassing audits for energy saving performance, design & implementation of 

conservation measures, maintenance, operation and management of the 

introduced facilities and procurement of project funds. ESCOs conduct retrofitting 

for energy conservation without damaging the environment. The ESCO will 

guarantee the savings that would meet or exceed the annual payments to cover 

up the entire project costs usually a period of 5 to 10 years. The savings can be 

shared proportionately with the institution for which the project is designed and 

implemented for. 

The salient features of performance contracting for energy savings through ESCO 

based business model are as under: 

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. 

Sl.No Reforms 

1 Energy audit 

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

- 122 - 

Year 

1 


i Leak detection study √ 

ii Fixing of bulk water meter √ 

iii 

iv 

Fixing flow control values and 

meters 

Implementing energy saving 

measures on street lights and 

pumping machineries (ESCo) 

12.3.7 Action plan: Computerization and E-governance 


√ 

Year 2 Year 3 Year 4 Year 5 

√ 



1. Launch data warehousing on a large scale, which would avoid cross- 

reference to paper record, which are time consuming and also preservation 

of paper media, which occupies space, could be avoided. 

2. Computerization of bill payment and facilitation of on line payments 

3. Computerisation of registration of land records within Municipal limit 

4. Digitisation of Birth and death certificates for the past 30 years 

5. Property Mapping to be computerised and details on area, year of 

construction, type of assessment to be computerized to facilitate calculation 

of property tax. 

6. Administration and issue of trade licenses to be on line, including payment 

and reconciliation of license fee. 

7. Computerization of birth and death certificates and on line issue of 

certificates. 

8. Computerization of public grievances and Redressal mechanism 

9. Introduction of asset management system for all available land and building 

assets of the Municipality 

10. On-line submission of building plans and approval. 

11. Track O&M of assets and their replacement 

12. E-tendering processes. 

The above proposal can be taken up after giving sufficient training to Municipal 

staff in hard ware and software. 

Table 12-6: Road map for Computerization and E-Governance 

Sl.No Reforms 

1 Computerization and E-governance 

i 

Digitizing municipal records (past 30 

years) 

ii On-line bill payment √ 

iii Registration of Land records √ 

iv 

v 

Digitization of old Birth and death 

certificates 

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 √ 

- 123 - 



√ 

√ 



12.3.8 Action plan: Accounts and Auditing 

A Consultant committee of chartered accountants having experience 

in municipal accounting should be constituted to provide training to the 

Municipal employees. 

Timely Auditing should be performed with the use of private Chartered 

Accountants for routine audit and local audit to carry out proprietary audit. 

Closing all Auditing before September 30 of the next financial year 

and publishing the audited statement on the website. 

12.3.9 Action Plan: Institutional Management 

The constant change in urban sector in the context of reforms results in the need for 

continuous upgradation of the skills and knowledge of the ULB staff. TNUDP III has 

initiated the process of providing the required training to the staff during the current 

planning period. It is essential that the training process becomes a sustainable one 

with the introduction of an institutional framework which would ensure that the 

training is provided in a continuous manner. 

Training programmes need to be evolved depending upon whether they are 

Elected Representatives, Senior level officers, Middle level officers and staff in 

various sections of the ULBs. Training of public representatives and staff of ULBs will 

not only improve their skills but also exposes modern/scientific technological 

advancement in engineering, management and inter personal communication. 

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. 


12.3.10 A. Capacity Building for Elected Representatives and Committee 

members 

The details of the various training requirements for elected representatives and 

Committee members are presented below. 

Table 12-7: Technical Assistance for Elected representatives 

Category Identified Training areas 

Elected representatives Visioning, goal setting, Planning 

Urban Governance, Management and Planning 

Social management and urban poor management 

Financial and cost management 

Budget preparation 

- 124 - 



Tender procedure 

Training in interpretation of various laws, rules, regulations and 

statutes that ULB is bound by 

E - Governance 

Redressal of public grievances 

Environment management 

JNNURM, UIDSSMT, IHSDP, IHSDP & BSUP 

City Corporate Plan, Urban Development plans (Master plans, 

DDPs) 

Solid waste management. 

Disaster management 

Managerial development and effectiveness 

Public relations and Human resource development. 

Crisis management and Stress management 

Personality development and Motivation skill development 

Written and Oral Communication skills 

Committee members Tax appeal committee: tax assessment methods; interpretation 

12.3.11 B. Capacity Building for ULB staff 

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 

The training areas identified for ULB staff in all position is classified as functional, 

managerial & behavior and attitude in short, medium and long term training. The 

details of the various training requirements for ULB staff are presented below. 

Table 12-8: Technical Assistance for ULB staff 

Category Identified Training areas 

Senior Management Staff People management skills 

Motivation and Interpersonal skills 

Leadership and Public relations 

Attitudes ñ 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 

- 125 - 



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 

Training for Operational 

staff 

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) 

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 

- 126 - 



Table 12-9: Road map for Accounts & auditing and Institutional Management 

Sl.No Reforms 

1 

Accounts and Auditing with charted 

accountant 

I 

Ii 

iii 

Appointing private charted 

accountant consultant 

Closing of audit and accounts 

(Sept 30th) 

Online publication of audited 

statement (Oct 30 th ) 

2 Institutional Management 

i 

Capacity Building for Elected 

Representatives 

ii Capacity Building for ULB staffs 

- 127 - 



√ 

√ 

√ 



Table 12-10: Road map for implementation of all projects 

S.N Projects Implementing Agency 2009-10 2010-11 2011-12 2012-13 2013-14 

I Water supply 

Source augmentation 

Transmission system Improvement 

Improvement of Distribution system 

Up-gradation of Existing system 

TWAD Board 

II Under Ground Drainage system with STP TWAD Board 

III Strom water Drain Municipality 

V Solid Waste Management 

Vehicles & equipments for primary and 

secondary collection 

Purchase of Compost yard 

Purchase of Land fill site 


Compost yard and Land fill site 

Municipality & Private 

development 

Operator 

VI Road 

Road Improvement and Widening 

New Roads 


VII Bus stand 

Construction of new bus stand 

VIII Street light ESCO/ Municipality 

IX Slum Municipality 

X Education 

XI Parks 

XII Market 

Improvements in Daily Market and Weekly 

Market 

Shopping Complex near Robinson tank 

Modernised Shopping complex at old bus 

stand 


XIII Slaughter House 

XIV Public Convenience 

XV 

XVI 

Burial Ground 

E-Governance 


XVII GIS Mapping 

XVIII Mobile tax collection van 

Source: Analysis and calculations 

- 128 - 



12.3.1 Reforms in Municipal Service Delivery 

The reform agenda for municipal service delivery is given in the following table 

Sector Particulars 

WAETR SUPPLY 

SEWERAGE 

SYSTEM 

SOLID WASTE 

MANAGEMENT 

ROADS, STORM 

WATER DRAIN, 

STREET LIGHTS 

Table 12-11: Reform Agenda Municipal Service Delivery 

Benchmark 

considered 

Existing 

Net Supply per capita 135 lpcd 66 95 120 

HSCs - % of assessed 

properties 

Frequency of Supply - Hours 

per day 

≥85% 44 60 70 

24x7 hours 

Once In 

2 Days 

HSC coverage ≥85% Nil - 

Coverage of UGSS network - % 

of road length 

Availability of Composting 

facility 

100% Nil - 

100% 

available 

Available 

Collection efficiency 100% 85% 

Surfaced roads- % of total road 

length 

Storm water drains - % of total 

road length 

Average spacing between 

Street lights 

Source: Analysis and research 

- 129 - 

Target 

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

Period of 

implementation 

Period of 

implementation 

Period of implementation 

100% 79% Period of implementation 

130% 199% 

130% 

30m 37m Period of implementation 

135lpcd 

85% 

2 hrs daily 

≥85% 

100% 

availabl 

e 

100% 

100% 

30m 

135 lpcd 

≥85% 

24x7 

≥85% 

100% 

100% 

available 

100% 

100% 

130% 

30m 



13 ASSET 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 Gudiyattam 

Municipality. 

The management of assets in the local bodies is at the initial stage where, only the 

assets are listed and status is described. Invariably, in all the cases, the management 

component is missing as to the techniques and methods of managing the assets 

either in improving their state and value or in sustaining them with a growth motive. 

There is hardly any case where a local body has made use of its immovable assets 

for raising loans or improving its borrowing capacity. It requires an overall approach 

outlining the alternative options of maintaining and managing the assets in a 

worthwhile mode. 

13.1 ACTIVITIES OF ASSET MANAGEMENT PLAN (AMP) 

The Asset Management Plan for Gudiyattam 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 ëcondition- 

surveyí 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. 

- 130 - 



3. Assessment of Remunerative potential 

Municipality should review the existing revenue earning potential of all its assets. 

New projects or initiatives should be taken to maximize the revenue earning 

potential of assets including infrastructure facilities. The intangible benefits of social 

facilities also need to be considered in the process. 

4. Digitisation of asset register 

Focus should be placed on designing, testing and installing a database 

management system for municipal assets. All data, once complied should be 

classified on the basis of sector specific infrastructure facilities, land and properties. 

Specific software should be customized to suit local requirements and data should 

be translated into specified formats. 

5. Training in database management 

Training is the most important part of an asset management plan. Training should 

emphasize methods of simplified updation of data, and methods of monitoring and 

follow-up relating to infrastructure facilities management, land use, litigation, 

encroachment, values, expenditure and revenue flows. 

13.2 INFRASTRUCTURE ASSETS 

Infrastructure Assets will include all movable and immovable equipments and 

properties including water supply, drainage, sewerage, solid waste management, 

roads, street lighting etc. Unlike other assets of the municipality, these assets 

undergo constant use, wear and tear, addition, repair etc. This correspondingly 

changes their values and hence a constant value updating is necessary. 

13.2.1 Movable and immovable assets 

Water Supply 

Number of Head works - 2 Nos 

Public Fountains - 347 Nos 

Number of Hand pump - 296 Nos 

Number of mini power pump - 92 Nos 

H.S.C.s - 6172 Nos 

OHTSs - 5 Nos 

Distribution line - 45.00 km 

Public Convenience 

ISP - 3 Nos 

VAMBAY - 5 Nos 

Public Toilets - 9 Nos 

Pay and Use - 1 No 

Storm Water Drains 

- 131 - 



Open pucca drain - 46.01 km 

Kutcha drain - 5.54 km 

Total existing Drain - 51.55 km 

Solid Waste Management 

Tri cycles - 12 Nos 

Pushcarts - 29 Nos 

Mini lorry - 03 Nos 

Auto - 05 Nos 

Tipper - 02 Nos 

Dumper placer with 20 Numbers 

of dumper bin - 01 Nos 

Roads 

B T Road - 27.00 km 

C C Road - 18.00 km 

W B M Road - 1.38 km 

Earthen Road - 16.93 km 

Bus Stand 

No. of bus stands - 2 - C ñgrade 

Street Lightings 

250 V Sodium Vapour lamps - 360 Nos 

Tube lights - 1388 Nos 

70 W Sodium Vapour lamps - 234 Nos 

Parks 

Municipality parks - 2 Nos 

Burial Grounds 

No. of burial grounds - 2 NOs 

Slaughter house 

No. of Slaughter house - 1 No 

Education 

Elementary school - 16 Nos 

Middle school - 1 No 

Higher secondary - 1 No 

- 132 - 



Medicare 

Maternity center - 1 No 

Markets 

Weekly Market - 1 No 

Daily Market - 2 Nos 

Shopping complex 

Anna Street ñ shops - 70 Nos 

G.H road - shops - 26 Nos 

In front of the municipality -shops - 52 Nos 

Near Robbinson tank ñ shops - 20 Nos 

Market ñ shops - 22 Nos 

Karpagam Super Market - 3 Nos 

13.3 PRIORITY ASSET MANAGEMENT OPTIONS 

There are remunerative and non-remunerative assets of the municipality on which 

the municipality incur considerable expenditure for operation and maintenance. 

The commercial complexes in the town, Shops in the bus stand, Markets, 

Slaughterhouse, Pay and Use toilets, etc are all remunerative. Non-remunerative 

assets of the municipality are the burial ground, public toilets, compost yard, parks 

and playfields etc,. The list of land assets are given in the table below: 

Table 13-1: Land Assets ñ Proposed use 

S.No Location Present use Proposed use 

1 Ulli Village Compost Yard 

- 133 - 

Compost Yard (Improvements 

proposed) 

2 Agaramcheri village Vacant land Land fill site(Proposed) 

3 R S Road Bus stand 

Bus stand (Improvements 

proposed) 

4 

Nehru park, Arun Nagar 

Park & Robbinson place 

Not efficiently used Parks 

5 

Tharanampettai Daily Market 

Daily market (Improvements 

proposed) 

6 Tharanampettai Weekly Market 

Weekly Market (Improvements 

proposed) 

7 Robbinson place Vacant land Shopping complex (proposed) 

8 Sunnampupettai Vacant land 

Slaughter house Treatment plant 

(proposed) 

9 

Sunnampupettai & 

Melalathur Road 

Burial ground 

Burial ground (improvement 

proposed) 

Source: Survey, Analysis and discussion with municipal officials 



Table 13-2: Income Details from Remunerative Assets 

S.No Particulars Amount Rs.in Lacs 

1 Income form Water Supply 30.00 

2 Income from Water Connections 5.00 

3 Fees for Pay & Use Toilets 3.00 

4 Fees for Bays in Bus 5.00 

5 Rent from Building 0.20 

6 Rent from Shopping Complex 30.00 

7 Slaughter House Fees 0.75 

8 Daily Market Fees 15.00 

9 Weekly Market Fees 1.00 

Table 13-3: Income from Proposed new Projects 

S.No Description Income (Rs.in lakhs) 

1 Gasifier Crematorium 1 

2 Slaughter House 2 

3 Shopping Complex 36 

The suggestions for the improvement of land asset management are listed below: 

1. Create land asset register listing all Municipal properties with the following 

data: 

Survey number 

Location 

Ownership data 

Date of acquisition 

Extent in Sq.m 

Present status 

Rate per sq.m 

2. Establishment of GIS inventory for Municipality lands. 

3. Removal of encroachments on Municipal lands. 

4. Alternatively, levy of rent on Encroached Municipal lands. 

5. Use of land assets for borrowing loans from capital market. 

6. Identifying the most remunerative activity by Public Private Participation, BOT, 

BOLT, BOOT initiatives. 

7. Lease or rent out of land parcels for a specific period of time. 

8. Asset creation by acquiring lands in peri-urban areas. 

13.4 PROPOSED NEW ASSETS 

Since every year there is an addition to such assets, an indication of the values is a 

must in calculating the present values and also projecting to the future. In the 

absence of any trend, the values of the structural assets have become difficult to be 

- 134 - 



computed. However, the values of the proposed projects in the form of assets both 

for structural elements and certain movable items are indicated in the statement. 

The assets creation by way of the projects proposed under CCCBP for 

implementation in the years to come are indicated with the capital investment 

values as in table below: 

Table 13-4: New Assets for the year -2009-10 to 2013 -14 

S. No. Focus Area Total Cost Rs.in Lacs 

1 Water Supply & Mettur scheme 8224.33 

2 Sewerage & Sanitation 4083.63 

3 Solid Waste Management 853.08 

4 Drainage 312.00 

5 Traffic & Transportation 874.19 



8 Parks 77.00 

9 Market 1027.00 

10 Slaughter house 8.00 

11 Burial ground 75.38 

12 Urban & Municipal Reform 48.00 

13 Slum Up-gradation including 554.00 

14 Total 16433.67 

- 135 - 



14 FIINANCIIAL OPERATIING PLAN 

14.1 CAPITAL INVESTMENT PLAN 

The proposed projects for Gudiyatham 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 municipalityís own 

resources) for the same. 

S.No 

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

. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total 

A Physical Infrastructure Facilities 

I Water Supply 

a) Improvements to Water Supply 531.00 482.33 - - - - - 1013.33 

b) Metur CWSS - - - - - 3605.50 3605.50 7211.00 

II Sewerage & Sanitation 

a) 

New Underground Sewerage 

Scheme - - 2000.00 2039.84 - - - 4039.84 

III Strom Water Drains 

a) 

Construction of new drains and 

providing mesh covers - - - 200.00 112.00 - - 312.00 

IV Solid Waste Management 

a) Cost of Land Fill site 87.60 - - - - - - 87.60 

b) 

c) 

Land Fill site & compost yard 

development - 401.89 226.11 - - - - 628.00 

Vehicles & Equipment for 

collection - 30.00 45.00 30.00 32.48 - - 137.48 

V Roads 

a) BT & CC Roads - Improvements - - - 163.01 326.18 - - 489.19 

b) Road Widening - - - - 15.00 - - 15.00 

c) Proposed New Roads - - - - 70.00 - - 70.00 

VI Bus Stand 

a) Construction of New Bus Stand - - - 300.00 - - - 300.00 

VII Street Lights 

a) Proposed new lights 10.00 15.00 15.00 - - - - 40.00 

b) 

Retrofitting existing lights & 

energy saving devices 10.31 5.55 - - - - - 15.86 


I Slum Improvement 

a) Improvements to Slums - - 119.10 225.70 209.20 - - 554.00 

II Education 

a) Improvements to Schools - - 39.10 52.10 - - - 91.20 

b) 

Construction of Municipal 

Higher Secondary School - - - 150.00 - - - 150.00 

- 136 - 



III Parks & Playgrounds 

a) 

Improvements to Nehru Park & 

Arun Park - - - 45.00 - - - 45.00 

b) New Park at Robinson Tank - - - - 32.00 - - 32.00 

IV Burial Ground / Crematorium 

a) 

b) 

Improvements with Gasifier at 

Sunnampupettai - - - - 60.19 - - 60.19 

Burial Ground improvement at 

Malalathur Road - - - 15.19 - - - 15.19 

V Market 

a) 

Improvements at Daily & 

Weekly market - 27.00 - - - - - 27.00 

VI Shopping Complex 

a) 

b) 

Shopping Complex near 

Robinson Tank 250.00 250.00 - - - - - 500.00 

Modernised Shopping complex 

near Old Bus Stand 250.00 250.00 - - - - - 500.00 

VII Slaughter House 

a) 

Improvement to Slaughter 

House - - 8.00 - - - - 8.00 

VIII Public Convenience 

a) Public Convenience - - 43.79 - - - - 43.79 


I Vehicle 

a) Mobile tax collection van 10.00 - - - - - - 10.00 


a) E-Governance 18.00 - - - - - - 18.00 

b) 

GIS Mapping for 

comprehensive database 5.00 - - - 15.00 - - 20.00 

Total 1171.91 1461.77 2496.10 3220.84 872.05 3605.50 3605.50 16433.67 

The initial building blocks of the Corporate Plan are the ëelementsí required to 

sustain the townís 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) 

- 137 - 



f) Roads, traffic and transportation 

g) Street Lighting 

14.2 OTHER PROJECTS AND ON GOING PROJECTS 

The details of projects identified to be executed by other departments / agencies 

and the ongoing projects that are being executed by the Municipality are given 

below : 

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

S.No Particulars Total Funding By 

I Regional Level 

a) River conservation plan for Goundanya - Water Resources 

River Department 

b) Feasibility study for establishment of - Handloom Export 

Handloom Export Zones Promotion Council 

c) Feasibility study for setting up of market - Handloom Market 

complex for handloom goods Promotion Council 

d) Preparation of Regional Traffic Operation 5.00 NHAI 

and management plan 

II Town Level 

a) Feasibility study for Bye pass road Under NHAI 

b) 

Construction of bridge across 

- 138 - 

Progress 

Goundanya 2400.00 Water Resources 

Mahanadhi river connecting Melpet and Department 

Rajendra Singh area 

c) Esco Study 1.00 CMA / TNUIFSL, 


d) Awareness campaign for NGOs on their 5.00 Municipality 

roles and responsibilities in community 

development 

Total 2411.00 

Table 14-3: Projects under Implementation by the Municipality 

S.No Particulars Total Cost Loan Grant Mun Cont. Funding By 

a) 

School - Supply and 

delivery of 2.00 - 2.00 - 

sports materials 

b) Road Works 13.50 - 13.50 - 

Total 15.50 0.00 15.50 0.00 

100% Grant 

(MLA Scheme) 

100% Grant (MP 

Scheme) 



14.3 MEANS OF FINANCE 

The means of finance for each individual project identified taking in to account 

whether the same is remunerative or non-remunerative and the availability of 

Grants from various sources is given below : 

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

Multi Year Investment Plan 

S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total 

A 

1A 

Physical 

Infrastructure 

Facilities 

Improvements to 

Water Supply 

Total Project Cost 531.00 482.33 - - - - - 1013.33 

Add : Price 

Inflation @ 7% 37.17 69.89 0.00 0.00 0.00 0.00 0.00 107.06 

Total 568.17 552.22 0.00 0.00 0.00 0.00 0.00 1120.39 

Means of Finance 

TNUIFSL Loan 340.90 331.33 0.00 0.00 0.00 0.00 0.00 672.23 

Grant 170.45 165.67 0.00 0.00 0.00 0.00 0.00 336.12 

Municipality Own 

Funds 56.82 55.22 0.00 0.00 0.00 0.00 0.00 112.04 

Total 568.17 552.22 0.00 0.00 0.00 0.00 0.00 1120.39 

1B Metur CWSS 

Total Project Cost - - - - - 3605.50 3605.50 7211.00 

Add : Price 

Inflation @ 7% 0.00 0.00 0.00 0.00 0.00 1805.38 2184.15 3989.53 

Total 0.00 0.00 0.00 0.00 0.00 5410.88 5789.65 11200.53 


Grant 0.00 0.00 0.00 0.00 0.00 5410.88 5789.65 11200.53 

Total 0.00 0.00 0.00 0.00 0.00 5410.88 5789.65 11200.53 

2 Sewerage 

3 

Total Project Cost - - 2000.00 2039.84 - - - 4039.84 

Add : Price 

Inflation @ 7% 0.00 0.00 450.09 633.97 0.00 0.00 0.00 1084.06 

Total 0.00 0.00 2450.09 2673.81 0.00 0.00 0.00 5123.90 


TNUIFSL Loan 0.00 0.00 1470.05 1604.29 0.00 0.00 0.00 3074.34 

Grant 0.00 0.00 735.03 802.14 0.00 0.00 0.00 1537.17 


Funds 0.00 0.00 245.01 267.38 0.00 0.00 0.00 512.39 

Total 0.00 0.00 2450.09 2673.81 0.00 0.00 0.00 5123.90 

Storm Water 

Drains 

Total Project Cost - - - 200.00 112.00 - - 312.00 

- 139 - 



Add : Price 

Inflation @ 7% 0.00 0.00 0.00 62.16 45.09 0.00 0.00 107.24 

Total 0.00 0.00 0.00 262.16 157.09 0.00 0.00 419.24 


TNUIFSL Loan 0.00 0.00 0.00 157.30 94.25 0.00 0.00 251.55 

Grant 0.00 0.00 0.00 78.65 47.13 0.00 0.00 125.77 


Funds 0.00 0.00 0.00 26.22 15.71 0.00 0.00 41.92 

Total 0.00 0.00 0.00 262.16 157.09 0.00 0.00 419.24 

4A SWM - Land Fill 

4B 

4B 

5A 

Total Project Cost 87.60 - - - - - - 87.60 

Add : Price 

Inflation @ 7% 6.13 0.00 0.00 0.00 0.00 0.00 0.00 6.13 

Total 93.73 0.00 0.00 0.00 0.00 0.00 0.00 93.73 


Grant 93.73 0.00 0.00 0.00 0.00 0.00 0.00 93.73 

Total 93.73 0.00 0.00 0.00 0.00 0.00 0.00 93.73 

SWM - Land Fill 

site & compost 

yard devt 

Total Project Cost - 401.89 226.11 - - - - 628.00 

Add : Price 

Inflation @ 7% 0.00 58.23 50.88 0.00 0.00 0.00 0.00 109.12 

Total 0.00 460.12 276.99 0.00 0.00 0.00 0.00 737.12 


Grant 0.00 230.06 138.50 0.00 0.00 0.00 0.00 368.56 


Funds 0.00 230.06 138.50 0.00 0.00 0.00 0.00 368.56 

Total 0.00 460.12 276.99 0.00 0.00 0.00 0.00 737.12 

SWM - Vehicles & 

Equipment 

Total Project Cost - 30.00 45.00 30.00 32.48 - - 137.48 

Add : Price 

Inflation @ 7% 0.00 4.35 10.13 9.32 13.07 0.00 0.00 36.87 

Total 0.00 34.35 55.13 39.32 45.55 0.00 0.00 174.35 


Grant 0.00 17.17 27.56 19.66 22.78 0.00 0.00 87.18 


Funds 0.00 17.17 27.56 19.66 22.78 0.00 0.00 87.18 

Total 0.00 34.35 55.13 39.32 45.55 0.00 0.00 174.35 

Roads - BT & CC 

Road 

improvement 

Total Project Cost - - - 163.01 326.18 - - 489.19 

Add : Price 

Inflation @ 7% 0.00 0.00 0.00 50.66 131.30 0.00 0.00 181.97 

Total 0.00 0.00 0.00 213.67 457.48 0.00 0.00 671.16 

- 140 - 



5B 

5C 

6 


TNUIFSL Loan 0.00 0.00 0.00 128.20 274.49 0.00 0.00 402.69 

Grant 0.00 0.00 0.00 64.10 137.25 0.00 0.00 201.35 


Funds 0.00 0.00 0.00 21.37 45.75 0.00 0.00 67.12 

Total 0.00 0.00 0.00 213.67 457.48 0.00 0.00 671.16 

Roads - BT & CC 

Road Widening 

Total Project Cost - - - - 15.00 - - 15.00 

Add : Price 

Inflation @ 7% 0.00 0.00 0.00 0.00 6.04 0.00 0.00 6.04 

Total 0.00 0.00 0.00 0.00 21.04 0.00 0.00 21.04 


TNUIFSL Loan 0.00 0.00 0.00 0.00 12.62 0.00 0.00 12.62 

Grant 0.00 0.00 0.00 0.00 6.31 0.00 0.00 6.31 


Funds 0.00 0.00 0.00 0.00 2.10 0.00 0.00 2.10 

Total 0.00 0.00 0.00 0.00 21.04 0.00 0.00 21.04 

Roads - BT & CC - 

New Roads 


Add : Price 

Inflation @ 7% 0.00 0.00 0.00 0.00 28.18 0.00 0.00 28.18 

Total 0.00 0.00 0.00 0.00 98.18 0.00 0.00 98.18 


TNUIFSL Loan 0.00 0.00 0.00 0.00 58.91 0.00 0.00 58.91 

Grant 0.00 0.00 0.00 0.00 29.45 0.00 0.00 29.45 


Funds 0.00 0.00 0.00 0.00 9.82 0.00 0.00 9.82 

Total 0.00 0.00 0.00 0.00 98.18 0.00 0.00 98.18 

New Bus Stand 

Improvement 

Total Project Cost - - - 300.00 - - - 300.00 

Add : Price 

Inflation @ 7% 0.00 0.00 0.00 93.24 0.00 0.00 0.00 93.24 

Total 0.00 0.00 0.00 393.24 0.00 0.00 0.00 393.24 


TNUIFSL Loan 0.00 0.00 0.00 353.91 0.00 0.00 0.00 353.91 


Funds 0.00 0.00 0.00 39.32 0.00 0.00 0.00 39.32 

Total 0.00 0.00 0.00 393.24 0.00 0.00 0.00 393.24 

7A Street Lights - New 

Total Project Cost 10.00 15.00 15.00 - - - - 40.00 

Add : Price 

Inflation @ 7% 0.70 2.17 3.38 0.00 0.00 0.00 0.00 6.25 

Total 10.70 17.17 18.38 0.00 0.00 0.00 0.00 46.25 


- 141 - 



7B 

B 

1 

2A 

2B 


Funds 10.70 17.17 18.38 0.00 0.00 0.00 0.00 46.25 

Total 10.70 17.17 18.38 0.00 0.00 0.00 0.00 46.25 

Street Lights - 

Retrofitting & 

Energy Saving 


Add : Price 

Inflation @ 7% 0.72 0.80 0.00 0.00 0.00 0.00 0.00 1.53 

Total 11.03 6.35 0.00 0.00 0.00 0.00 0.00 17.39 


ESCO 11.03 6.35 0.00 0.00 0.00 0.00 0.00 17.39 

Total 11.03 6.35 0.00 0.00 0.00 0.00 0.00 17.39 

Social 

Infrastructure 

Facilities 

Slum 

Improvement 

Total Project Cost - - 119.10 225.70 209.20 - - 554.00 

Add : Price 

Inflation @ 7% 0.00 0.00 26.80 70.15 84.21 0.00 0.00 181.16 

Total 0.00 0.00 145.90 295.85 293.41 0.00 0.00 735.16 


Grant 0.00 0.00 131.31 266.26 264.07 0.00 0.00 661.65 


Funds 0.00 0.00 14.59 29.58 29.34 0.00 0.00 73.52 

Total 0.00 0.00 145.90 295.85 293.41 0.00 0.00 735.16 

Education - 

Improvements 

Total Project Cost - - 39.10 52.10 - - - 91.20 

Add : Price 

Inflation @ 7% 0.00 0.00 8.80 16.19 0.00 0.00 0.00 24.99 

Total 0.00 0.00 47.90 68.29 0.00 0.00 0.00 116.19 



Funds 0.00 0.00 47.90 68.29 0.00 0.00 0.00 116.19 

Total 0.00 0.00 47.90 68.29 0.00 0.00 0.00 116.19 

Education - 

Municipal School 


Add : Price 

Inflation @ 7% 0.00 0.00 0.00 46.62 0.00 0.00 0.00 46.62 

Total 0.00 0.00 0.00 196.62 0.00 0.00 0.00 196.62 



Funds 0.00 0.00 0.00 196.62 0.00 0.00 0.00 196.62 

Total 0.00 0.00 0.00 196.62 0.00 0.00 0.00 196.62 

- 142 - 



3A 

3B 

4A 

4B 

Parks - Imp to 

Nehru Park & Arun 

Park 


Add : Price 

Inflation @ 7% 0.00 0.00 0.00 13.99 0.00 0.00 0.00 13.99 

Total 0.00 0.00 0.00 58.99 0.00 0.00 0.00 58.99 


Grants 0.00 0.00 0.00 29.49 0.00 0.00 0.00 29.49 


Funds 0.00 0.00 0.00 29.49 0.00 0.00 0.00 29.49 

Total 0.00 0.00 0.00 58.99 0.00 0.00 0.00 58.99 

Parks - New Park 

at Robinson Tank 


Add : Price 

Inflation @ 7% 0.00 0.00 0.00 0.00 12.88 0.00 0.00 12.88 

Total 0.00 0.00 0.00 0.00 44.88 0.00 0.00 44.88 


Grants 0.00 0.00 0.00 0.00 22.44 0.00 0.00 22.44 


Funds 0.00 0.00 0.00 0.00 22.44 0.00 0.00 22.44 

Total 0.00 0.00 0.00 0.00 44.88 0.00 0.00 44.88 

Burial Ground - 

Gasifier at 

Sunnampupettai 


Add : Price 

Inflation @ 7% 0.00 0.00 0.00 0.00 24.23 0.00 0.00 24.23 

Total 0.00 0.00 0.00 0.00 84.42 0.00 0.00 84.42 


Grant 0.00 0.00 0.00 0.00 42.21 0.00 0.00 42.21 


Funds 0.00 0.00 0.00 0.00 42.21 0.00 0.00 42.21 

Total 0.00 0.00 0.00 0.00 84.42 0.00 0.00 84.42 

Burial Ground - 

Imp at Malalathur 

Road 


Add : Price 

Inflation @ 7% 0.00 0.00 0.00 4.72 0.00 0.00 0.00 4.72 

Total 0.00 0.00 0.00 19.91 0.00 0.00 0.00 19.91 


Grant 0.00 0.00 0.00 17.92 0.00 0.00 0.00 17.92 


Funds 0.00 0.00 0.00 1.99 0.00 0.00 0.00 1.99 

Total 0.00 0.00 0.00 19.91 0.00 0.00 0.00 19.91 

- 143 - 



5 

6A 

6B 

Market - 

Improvements 

Total Project Cost - 27.00 - - - - - 27.00 

Add : Price 

Inflation @ 7% 0.00 3.91 0.00 0.00 0.00 0.00 0.00 3.91 

Total 0.00 30.91 0.00 0.00 0.00 0.00 0.00 30.91 



Funds 0.00 30.91 0.00 0.00 0.00 0.00 0.00 30.91 

Total 0.00 30.91 0.00 0.00 0.00 0.00 0.00 30.91 

Shopping 

Complex near 

Robinson Tank 


Add : Price 

Inflation @ 7% 17.50 36.23 0.00 0.00 0.00 0.00 0.00 53.73 

Total 267.50 286.23 0.00 0.00 0.00 0.00 0.00 553.73 


TNUIFSL Loan 240.75 257.60 0.00 0.00 0.00 0.00 0.00 498.35 


Funds 26.75 28.62 0.00 0.00 0.00 0.00 0.00 55.37 

Total 267.50 286.23 0.00 0.00 0.00 0.00 0.00 553.73 

Modernised 

Shopping 

Complex 


Add : Price 

Inflation @ 7% 17.50 36.23 0.00 0.00 0.00 0.00 0.00 53.73 

Total 267.50 286.23 0.00 0.00 0.00 0.00 0.00 553.73 


TNUIFSL Loan 240.75 257.60 0.00 0.00 0.00 0.00 0.00 498.35 


Funds 26.75 28.62 0.00 0.00 0.00 0.00 0.00 55.37 

Total 267.50 286.23 0.00 0.00 0.00 0.00 0.00 553.73 

7 Slaughter House 

8 

Total Project Cost - - 8.00 - - - - 8.00 

Add : Price 

Inflation @ 7% 0.00 0.00 1.80 0.00 0.00 0.00 0.00 1.80 

Total 0.00 0.00 9.80 0.00 0.00 0.00 0.00 9.80 


Grant 0.00 0.00 4.90 0.00 0.00 0.00 0.00 4.90 


Funds 0.00 0.00 4.90 0.00 0.00 0.00 0.00 4.90 

Total 0.00 0.00 9.80 0.00 0.00 0.00 0.00 9.80 

Public 

Convenience 

Total Project Cost - - 43.79 - - - - 43.79 

- 144 - 



Add : Price 

Inflation @ 7% 0.00 0.00 9.85 0.00 0.00 0.00 0.00 9.85 

Total 0.00 0.00 53.64 0.00 0.00 0.00 0.00 53.64 


Grant 0.00 0.00 26.82 0.00 0.00 0.00 0.00 26.82 


Funds 0.00 0.00 26.82 0.00 0.00 0.00 0.00 26.82 

Total 0.00 0.00 53.64 0.00 0.00 0.00 0.00 53.64 


1 

Mobile tax 

collection van 


Add : Price 

Inflation @ 7% 0.70 0.00 0.00 0.00 0.00 0.00 0.00 0.70 

Total 10.70 0.00 0.00 0.00 0.00 0.00 0.00 10.70 



Funds 10.70 0.00 0.00 0.00 0.00 0.00 0.00 10.70 

Total 10.70 0.00 0.00 0.00 0.00 0.00 0.00 10.70 

2A E-Governance 


Add : Price 

Inflation @ 7% 1.26 0.00 0.00 0.00 0.00 0.00 0.00 1.26 

Total 19.26 0.00 0.00 0.00 0.00 0.00 0.00 19.26 


Grant 19.26 0.00 0.00 0.00 0.00 0.00 0.00 19.26 

Total 19.26 0.00 0.00 0.00 0.00 0.00 0.00 19.26 

2B GIS Mapping 

Total Project Cost 5.00 - - - 15.00 - - 20.00 

Add : Price 

Inflation @ 7% 0.35 0.00 0.00 0.00 6.04 0.00 0.00 6.39 

Total 5.35 0.00 0.00 0.00 21.04 0.00 0.00 26.39 


Grant 4.82 0.00 0.00 0.00 18.93 0.00 0.00 23.75 


Funds 0.54 0.00 0.00 0.00 2.10 0.00 0.00 2.64 

Total 5.35 0.00 0.00 0.00 21.04 0.00 0.00 26.39 

The consolidated ëMeans of Financeí for all the projects put-together is summarized 

below : 

Table 14-5: Consolidated Means of Finance 

Multi Year Investment Plan 

S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total 

I Project Cost 

Total Project Cost 1171.91 1461.77 2496.10 3220.84 872.05 3605.50 3605.50 16433.67 

Add : Price 

Inflation @ 7% 82.03 211.81 561.73 1001.02 351.05 1805.38 2184.15 6197.17 

- 145 - 



Total 1253.94 1673.58 3057.83 4221.86 1223.10 5410.88 5789.65 22630.84 

II Means of Finance 


Funds 132.25 407.79 523.66 699.93 192.25 0.00 0.00 1955.88 

(including 

Deposits from 

Public) 

Grant 288.26 412.90 1064.12 1278.23 590.57 5410.88 5789.65 14834.61 

TNUIFSL Loan 822.40 846.54 1470.05 2243.70 440.27 0.00 0.00 5822.97 

BOOT / Private 

Sector 11.03 6.35 0.00 0.00 0.00 0.00 0.00 17.39 

Total 1253.94 1673.58 3057.83 4221.86 1223.10 5410.88 5789.65 22630.84 

14.4 FINANCIAL SUSTAINABILITY 

The sustainability analysis assumes that the Municipality will carry out reforms 

indicated as assumptions for financial projections. A Financial and Operating Plan 

(FOP) prepared which evaluates the Municipality Fund status for the Full Project 

scenario. 

The FOP is a cash flow stream of the ULB based on the regular Municipality revenues, 

expenditures and applicability of surplus funds to support project sustainability. The 

FOP horizon is determined to assess the impact of full debt servicing liability resulting 

from the borrowings to meet the identified interventions. The proposed capital 

investments are phased over 5 years investment from FY 2009-10 to FY 2013-14. 

The full project investment scenario is based on all the proposed investments 

identified for Gudiyatham Municipality and the requirement for upgrading the 

townís 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 ñ the Municipality fund net surpluses indicates the ULBís 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 ULBís ability to sustain 

investments. 

- 146 - 



14.5 BASIC ASSUMPTIONS FOR PROJECTIONS : 

The FOP is based on a whole range of assumptions related to income and 

expenditure. These are critical to ascertain the investment sustenance and would 

also provide a tool to test certain specific policy decisions regarding revenue and 

expenditure drivers on the overall Municipality fiscal situation. This section elucidated 

the key assumptions adopted for the FOP scenario. 

The growth rates for the various heads of income and expenditure have been 

arrived based on the past growth rates and the future estimated population growth. 

Improvements to the existing current and arrears collection percentages have been 

assumed for the various revenues directly collected by the Municipality, which 

implies that the Municipality would have to improve its collection mechanism to 

sustain full investments. 

Given below are the various assumptions forming part of the FOP workings : 

14.5.1 Property Tax 

The population of Gudiyatham Municipality is estimated to grow at around 1.20% 

p.a. Based on the same Property Tax Revenue are assumed to increase @ 1.20% 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 15% due to revision in 2008-09 & that revision would be done @ 

15% every 5 years. 

It has also been established as per the Survey in 2002 that around 27% of the 

properties are unassessed and further 20-25% of the properties are unassessed. 

Considering the above, it is assumed that the same shall be set right and together 

these shall contribute to increase in property tax revenue by 10% from next year viz. 

2009-10 after GIS mapping. 

The Property Tax income is divided between Revenue, Water Supply and Education 

Fund in the following ratio: 

General 5.750% ) 

Scavanging 1.250% ) 

Lighting 3.000% ) 

Table 14-6: Ratio of Property Tax 

Per Annum 

- 147 - 

Revenue & Capital 

Fund 

Water Tax 3.750% } Water Supply & Drainage Fund 

Drainage 1.250% } 

Education 2.500% ] 

Total 17.500% 

Education 

Fund 



14.5.2 Profession tax 

Income from Profession Tax is assumed to increase @ 3% per annum. The Profession 

Tax was last revised on 1.10.2003 and the next revision is due in 2008-09. It is assumed 

that every revision would contribute to 15% increase. 

Besides, the profession tax base would be increased by carrying out survey in 2010- 

11. It is assumed that the survey would result in increase in profession tax base by 

20% in 2010-11. 

14.5.3 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% 

14.5.4 Devolution Fund 

Devolution Fund is also assumed to increase by 7.5% per annum 

14.5.5 Service charges and fees 

Service Charges and Fees are assumed to increase @ 8% per annum 

14.5.6 Grant and Contribution 

No Grant has been assumed in the financial projections. 

14.5.7 Sales and Hire charges 

Nil income assumed from Sales & Hire Charges. 

14.5.8 Other Income 

Other Income comprising basically fees and other rental income are assumed to 

increase @ 5% per annum. 

14.5.9 Water Supply Charges 

The present connection charges/deposit and tariff for water are as below : 

Table 14-7: Water supply Charges - Existing 

Type of service connections Connection Tariff/Per Month 

Residential Rs. 3000 Rs.50.00 

Commercial Rs. 6000 Rs.200.00 

Industrial Rs. 8000 Rs.200.00 

It is assumed that after completion of water supply improvements work, the house 

service connections will be equal to 90% of property tax assessments. 

- 148 - 



The water charges shall be revised as below : 

Residential - Rs.60.00 p.m 

Commercial ñ Rs.250.00 p.m 

Industrial - Rs. 300.00 p.m. 

It is also assumed that the water connection charges shall be revised as under : 

Residential - Rs.4000 

Commercial - Rs.8000 

Industrial - Rs.12000 

It is assumed that water charges shall be increased as below every 5 years : 

Residential - Rs.15.00 p.m 

Commercial & industrial ñ Rs.25.00 p.m 

It is assumed that water connection charges shall increase every 5 years as below : 

Residential - Rs.1000 

Commercial & industrial ñ Rs.2000 

The house service connection as % of property tax assessments is as below: 

Table 14-8: House Service Connections - Percentage 

Year 2004-05 Property tax assessments House service connections % 

Residential 10063 6095 61% 

Commercial 3923 73 2% 

Industrial & Govt. 550 4 1% 

The improvements in water supply shall result in increase in operation & 

maintenance by Rs.45 lakhs per annum and the same shall increase @ 5% per 

annum 

The Metur CWSS Scheme shall result in increase in operation & maintenance cost by 

Rs. 245 lacs and the same shall increase @ 5% p.a. 

14.5.10 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.4040 lakhs. The 

implementation period is 2 years starting from 2011-12 to 2012-13. 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 : 

2011-12 50% 

2012-13 50% 

The Deposits and Charges shall be collected accordingly. 

- 149 - 



It is assumed that the sewerage charges will be collected as below : 

Table 14-9: Sewage Charges 

Assessments Deposits (in Rs) Tariff (in Rs) 

Residential 5000 75 

Commercial 12000 150 

Industrial 15000 300 

The new connection charges and tariff have been taken on average basis. It is 

assumed that the drainage charges shall be increased every 5 years as below : 

Residential - Rs.15/- 

Commercial & industrial ñ Rs.25/- 

It is assumed that the connection charges shall be increased every 5 years as below 

: 

Residential - Rs.1000/- 

Commercial ñ Rs.2000/- 

Industrial - Rs.3000/- 

The O&M charges shall be Rs.80.00 lakhs per annum and the same shall increase @ 

5% per annum. 

14.5.11 Solid waste Management 

It has been estimated that solid waste generation per day shall be around 33 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 4 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/- 

The cost of the scheme is Rs.853.00 lakhs and the O&M cost shall be equal to around 

Rs. 20 lacs per annum. The same shall increase @ 5% per annum. 

- 150 - 



14.5.12 Bus Stand 

Improvements to Bus Stands shall be undertaken by the Municipality for Rs. 300 lacs. 

It is estimated that the upgradation shall increase the revenue from Bus Stand to the 

Municipality by 40% and the same shall increase @ 5% per annum. 

Besides, the improvements shall result in creation of new shops as given below : 

No. of Shops Rent p.m. 

New Shops 30 2500 p.m. 

The rent shall increase @ 15% every 3 years. 

The O&M charges of the Bus Stand shall amount to Rs. 9 lacs per annum. The same 

shall increase @ 5% per annum. 

14.5.13 Market 

Improvements to Markets shall be carried out at a cost of Rs. 27 lacs. 

The income from Markets shall increase by 20% on completion of renovation. The 

income shall increase by 5% every year. 

The O&M charges on market shall be equal to Rs. 1.00 lacs per annum and the 

same shall increase by 5% every year. 

14.5.14 Remunerative Projects 

A Shopping Complex shall be constructed at a cost of Rs. 500 lacs. The total number 

of shops shall be 120 Nos. and the average rent for the same shall be Rs. 1500/- per 

shop per month. The same shall increase @ 15% every 3 years. 

Besides, a modern shopping complex shall be constructed at a cost of Rs. 500 lacs. 

The total number of shops at the modern shopping complex shall be 75 Nos. and the 

rent shall be Rs. 3000/- per month. The same shall increase @ 15% every 3 years. 

The annual O&M charges of both the shopping complexes together shall be Rs. 

29.81 lacs and the same shall increase @ 5% p.a. 

14.5.15 Slaughter House & Gasifier Crematorium 

The improvements to Slaughter House shall result in increase in income by 20%. The 

expenditure on Slaughter House shall be Rs. 0.24 lacs p.a. and the same shall 

increase by 5%. 

The Gasifier Crematorium shall result in additional income of Rs. 2 lacs per annum. 

The expenditure of Burial Ground shall be Rs. 2.26 lacs per annum and the same shall 

increase @ 5%. 

- 151 - 



14.5.16 Advertisements 

Bill Boards would be put at 10 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. 

14.5.17 Parking Fees 

Parking Lots would be developed and income from parking is estimated at Rs.0.50 

lakhs per annum. The same would increase @ 3% per annum. 

14.5.18 Expenditure 

The expenses are assumed to increase as under : 

Table 14-10: Assumptions - Increase in Expenditure 

Personnel Cost ñ Salaries 5.00% 

Personnel Cost ñ Others 5.00% 

Terminal & Retirement Benefits 5.00% 

Operative Expenses 7.50% 

Repairs & Maintenance 10.00% 

Program Expenses 2.50% 

Administrative Expenses 7.50% 

14.5.19 Operation and Maintenance 

The additional operation & maintenance expenses to be incurred are as below: 

Table 14-11: Assumptions ñ O&M 

Ongoing Projects Rs. in lakhs 

Roads 2.00 

Schools ñ Play Materials 0.25 

New Projects (other than Sewerage & Water supply) Rs. in lakhs 

Strom Water Drains 

15.60 

Solid Waste Management 

42.65 

Roads 

28.71 

Bus Stand 

9.00 

Street Lights 

2.79 

Slum Improvement 

16.62 

Education 

7.24 

Parks 

2.31 

Market & Shopping Complex 

30.81 

Slaughter House 

0.24 

Burial Ground / Crematorium 

2.26 

Public Convenience 

1.31 

E-Governance 

1.14 

Mobile Van 

0.50 

Total 

The same shall increase @ 5% per annum. 

163.43 

- 152 - 



14.5.20 Power charges 

There will be a savings of around 40% in power charges due to installation of energy 

saving lights. As the same will be installed by private players, the savings in power 

charges have been factored in the financial projections after 15 years. It is assumed 

that the savings in power charges would be utilised towards returns of the private 

player towards capital cost and interest. 

14.5.21 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. 

14.5.22 Depreciation 

Depreciation is provided based on the rates adopted by the Municipality for 

previous years. 

14.5.23 Provision of doubtful debts 

Doubtful debts have been provided as under : 

Table 14-12: Assumptions ñ Provision of doubtful debts 

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

Provision for Doubtful Debts is assumed @ 1% on total revenue for Water Fund 

Provision for Doubtful Debts is assumed @ 0% on total revenue for Education Fund 

14.5.24 Collections 

a) Property tax 

Table 14-13: Assumptions ñ Property tax collection 

The current property tax collection is 58% The same shall improve to 80% 

over the next 5 years. 

The arrears property tax collection is 20% The same shall improve to 60% 


- 153 - 



b) Profession tax 

Table 14-14: Assumptions ñ Profession tax 

The current profession tax collection is 63% The same shall improve to 90% 


The arrears profession tax collection is 12% The same shall improve to 50% 


c) Other Non Tax Income 

Table 14-15: Assumptions ñ Other Non Tax Income 

71 

The current rental / lease collection is 


% The same shall be 

The arrears collection % of rent / lease is over the next 5 18 The same shall improve 

years. 

% to 

d) Water Charges 

Table 14-16: Assumptions ñ Water Charges 

The current water charges collection is 


The arrears water charges collection is over the next 5 

years. 

e) Drainage Charges 

- 154 - 

46 

% 

21 

% 

The same shall improve 

to 

The same shall improve 

to 

Table 14-17: Assumptions ñ Drainage Charges 

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


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


f) Other income 

The collection % of all other income is taken at 100% 

g) Others 

The collection % of all other items of income is taken at 100% 

14.5.25 Annuity Factor 

The Annuity Factor for the new loans works out as under : 

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

Tenor 20 years 10 years 

Interest Rate 9.50% 9.50 

Repayment Period 15 years 8 years 

Moratorium 5 years 2 years 

Repayment Factor 0.13 0.18 

95 

% 

50 

% 

80 

% 

60 

% 



Conversion Factor Calculation 

a. Rate of Interest 9.5% 9.5% 

b. Repayment Period 15 8 

c. Loan Amount 17.00 9.00 

Conversion Factor 2.17 1.66 

Total Conversion Factor 3.83 

Note : Sewerage and Water Supply Loan works out to 17% of total project cost 

identified. Other Loans works out to 9% of total project cost identified. 

14.6 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 14.19 captures the Income and Expenditure projections for the next 20 years 

with potential improvements and borrowings : 

- 155 - 



Table 14-19: Consolidated 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 115.87 133.25 146.57 148.33 150.11 151.91 174.70 176.79 178.91 181.06 183.23 

b) Other Taxes 19.81 22.78 23.46 28.15 29.00 29.87 34.35 35.38 36.44 37.53 38.66 

c) Assigned Revenue 24.76 25.80 26.89 28.03 29.23 30.48 31.80 33.18 34.62 36.14 37.73 

d) Devolution Fund 178.62 192.02 206.42 221.90 238.54 256.43 275.67 296.34 318.57 342.46 368.15 

e) Service Charges & Fees 56.06 57.33 58.65 60.01 145.57 171.45 358.01 379.75 402.00 441.10 447.34 

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 42.68 44.81 48.15 50.52 103.56 130.19 133.86 146.99 151.24 155.58 185.98 

Total Income 437.79 475.98 510.14 536.94 696.01 770.34 1008.38 1068.43 1121.79 1193.87 1261.08 

II Expenditure 

a) Personnel Salaries Cost 170.87 179.42 188.39 197.81 207.70 218.08 220.08 231.09 242.64 254.77 267.51 

b) Personnel Cost - Others 1.60 1.68 1.76 1.85 1.95 2.04 2.14 2.25 2.36 2.48 2.61 

b) Terminal & Ret Benefits 39.39 41.35 43.42 45.59 47.87 50.27 52.78 55.42 58.19 61.10 64.15 

c) Operating Expenses 85.86 92.25 151.10 212.82 318.09 341.95 447.59 481.16 517.25 803.04 863.27 

d) Repairs & Maintenance 27.08 29.79 32.76 36.04 39.64 43.61 47.97 52.77 58.04 63.85 70.23 

e) Program Expenses 7.03 7.43 7.86 8.31 8.80 9.32 9.88 10.48 11.11 11.79 12.52 

f) Administration Expenses 17.10 18.38 19.76 21.24 22.84 24.55 26.39 28.37 30.50 32.78 35.24 

g) Finance Expenses 60.38 53.11 126.57 202.24 336.09 536.57 564.49 543.80 514.44 476.97 432.49 

h) Depreciation 258.08 187.03 166.37 183.51 235.42 394.82 609.00 709.39 740.97 733.21 671.67 

Total Expenditure 667.38 610.43 737.99 909.42 1218.39 1621.21 1980.34 2114.73 2175.50 2440.01 2419.69 

Surplus / (Deficit) (229.59) (134.45) (227.85) (372.47) (522.38) (850.87) (971.96) (1046.29) (1053.71) (1246.14) (1158.61) 

Profit before Depreciation 28.49 52.58 -61.48 -188.96 -286.96 -456.05 -362.96 -336.90 -312.75 -512.92 -486.95 

- 156 - 




I Income 

a) Property Tax 210.72 213.25 215.81 218.40 221.02 254.17 257.22 260.31 263.43 266.59 306.58 

b) Other Taxes 44.46 45.79 47.17 48.58 50.04 57.54 59.27 61.05 62.88 64.77 74.48 

c) Assigned Revenue 39.39 41.14 42.98 44.90 46.91 49.03 51.25 53.58 56.02 58.58 61.26 

d) Devolution Fund 395.76 425.44 457.35 491.65 528.52 568.16 610.77 656.58 705.82 758.76 815.67 

e) Service Charges & Fees 482.40 490.79 497.77 538.89 548.36 586.66 595.04 605.65 650.46 659.81 704.06 

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 191.14 196.43 211.61 217.53 236.77 254.47 261.52 268.78 289.13 311.67 325.80 

Total Income 1363.87 1412.84 1472.67 1559.94 1631.62 1770.04 1835.07 1905.93 2027.73 2120.18 2287.85 


a) Personnel Salaries Cost 280.89 294.93 309.68 325.16 341.42 358.49 376.42 395.24 415.00 435.75 457.54 

b) Personnel Cost - Others 2.74 2.87 3.02 3.17 3.33 3.49 3.67 3.85 4.04 4.25 4.46 

b) Terminal & Ret Benefits 67.36 70.73 74.27 77.98 81.88 85.97 90.27 94.79 99.53 104.50 109.73 

c) Operating Expenses 928.02 997.62 1072.44 1152.87 1239.34 1332.29 1395.40 1500.06 1612.56 1733.50 1863.52 

d) Repairs & Maintenance 77.26 84.98 93.48 102.83 113.11 124.42 136.86 150.55 165.60 182.17 200.38 

e) Program Expenses 13.30 14.13 15.02 15.97 17.00 18.09 19.26 20.51 21.85 23.29 24.83 

f) Administration Expenses 37.88 40.73 43.78 47.06 50.59 54.39 58.47 62.85 67.57 72.63 78.08 

g) Finance Expenses 385.70 341.13 302.69 267.51 236.16 212.07 189.61 167.26 145.57 123.65 102.70 

h) Depreciation 623.64 584.85 552.56 524.94 500.81 479.32 459.89 442.11 425.66 410.32 395.92 

Total Expenditure 2416.79 2431.98 2466.93 2517.51 2583.64 2668.55 2729.85 2837.22 2957.39 3090.06 3237.16 

Surplus / (Deficit) (1052.92) (1019.14) (994.26) (957.57) (952.02) (898.51) (894.78) (931.28) (929.65) (969.88) (949.31) 

Profit before Depreciation -429.28 -434.28 -441.70 -432.63 -451.21 -419.18 -434.89 -489.17 -503.99 -559.56 -553.38 

It may be observed from the above table that the Municipality shows deficit before depreciation in most of the years. The cash flows 

are also negative in many years. 

- 157 - 



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


a) Liabilities 

Loans 394.40 348.63 1125.26 1926.03 3290.12 5366.97 5640.39 5370.89 5024.26 4579.63 4070.31 

Cont from Municipal Fund 271.30 271.30 403.55 811.34 1335.00 2034.93 2227.18 2227.18 2227.18 2227.18 2227.18 

Cont from Private Parties 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 

Cont from Government 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 

Grant from Government 61.08 76.58 364.84 777.74 1841.86 3120.09 3710.66 9121.55 14911.19 14911.19 14911.19 

Accumulated Depreciation 464.05 651.09 817.46 1000.97 1236.38 1631.20 2240.20 2949.59 3690.56 4423.77 5095.44 

b) Current Liabilities 

Reserve for Doubtful Coll 75.35 83.69 92.63 102.09 113.87 126.88 142.79 159.68 177.41 196.21 216.29 

Tender Deposits 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 

Security & Deposit Others 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 

Deposit on Water Conn 2.33 4.69 75.25 93.41 145.78 246.68 300.63 355.79 412.17 423.88 435.73 

Deposit on Sewerage 0.00 0.00 0.00 0.00 108.70 203.52 393.23 404.10 415.10 426.23 437.49 

Library Cess Payable 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 

GIS Contribution Payable 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 

Interest Payable Account 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 

IT & ST Ded ñ Conts 2.50 2.50 2.50 2.50 2.50 `2.50 2.50 2.50 2.50 2.50 2.50 

WS & Drainage Tax Pay 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 

Education Tax Payble 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 

Survey charge payable 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 

Recoveries ñ Staff 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 

Accounts Payable 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 

Other Recoveries & Pay 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 

Inter Funds Transfer 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 

Others 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 

Accumulated Surplus 3658.48 3524.02 3296.17 2923.70 2401.32 1550.45 578.49 -467.80 -1521.51 -2767.65 -3926.26 

Total 6256.04 6289.05 7504.21 8964.32 11802.09 15609.78 16562.64 21450.03 26665.41 25749.49 24796.42 

- 158 - 




I Liabilities 


Loans 3560.99 3111.85 2727.12 2342.39 2037.58 1787.81 1538.04 1288.27 1038.50 788.72 538.95 

Cont from Municipal Fund 2227.18 2227.18 2227.18 2227.18 2227.18 2227.18 2227.18 2227.18 2227.18 2227.18 2227.18 

Cont from Private Parties 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 9.53 

Cont from Government 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 559.37 

Grant from Government 14911.19 14911.19 14911.19 14911.19 14911.19 14911.19 14911.19 14911.19 14911.19 14911.19 14911.19 

Accumulated Depreciation 5719.08 6303.93 6856.49 7381.43 7882.24 8361.57 8821.46 9263.57 9689.23 10099.55 10495.47 


Reserve for Doubtful Coll 237.93 260.49 284.17 309.18 335.56 364.15 393.95 425.09 458.22 493.11 530.73 

Tender Deposits 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 27.50 

Security & Deposit Others 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 221.00 

Deposit on Water Conn 447.72 459.86 472.14 487.00 502.03 517.25 532.65 548.23 566.58 585.15 603.95 

Deposit on Sewerage 451.00 464.67 478.51 492.51 506.68 523.26 540.04 557.02 574.20 591.59 611.56 

Library Cess Payable 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 57.86 

GIS Contribution Payable 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 19.67 

Interest Payable Account 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 189.88 

IT & ST Deduction - Cont 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 

WS & Drainage Tax Pay 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 

Education Tax Payble 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 16.06 

Survey charge payable 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 

Recoveries - Staff 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 

Accounts Payable 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 

Other Recoveries & Pay 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 

Inter Funds Transfer 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 93.02 

Others 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 

c) Accumulated Surplus -4979.18 -5998.32 -6992.58 -7950.15 -8902.17 -9800.68 -10695.5 -11626.7 -12556.4 -13526.3 -14475.6 

Total 23904.96 23069.90 22293.26 21529.78 20829.34 20220.77 19598.10 18922.86 18237.75 17499.27 16772.50 

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II Assets 

a) Fixed Assets 5581.84 5599.34 6853.28 8526.86 11584.69 15806.56 17029.65 22440.54 28230.18 28230.18 28230.18 

b) Current Assets 

Stock 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 

Property Tax - Current 46.35 46.64 43.97 37.08 30.02 30.38 34.94 35.36 35.78 36.21 36.65 

Property Tax - Arrears 158.03 156.97 140.82 114.38 82.83 63.16 55.64 57.20 58.24 59.08 59.84 

Profession Tax - Current 6.93 6.83 5.87 5.63 4.35 2.99 3.43 3.54 3.64 3.75 3.87 

Profession Tax - Arrears 103.72 79.54 54.56 33.14 22.20 15.45 10.71 8.79 7.93 7.61 7.56 

Lease Amount -Arrears 7.32 6.15 4.84 3.39 4.31 4.41 4.51 4.98 5.09 5.20 5.74 

Lease Amount-Current 37.76 33.75 26.40 18.04 12.41 10.51 9.67 9.34 9.65 9.91 10.15 

Water Charges - Current 16.12 14.27 12.38 10.44 25.28 30.27 33.92 37.65 41.47 48.37 48.95 

Water Charges - Arrears 61.04 58.85 49.58 37.17 25.31 35.41 44.43 51.69 58.33 64.80 74.29 

Sewerage Chgs - Current 0.00 0.00 0.00 0.00 0.00 0.00 31.03 31.40 31.78 32.16 32.55 

Sewerage Chgs - Arrears 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.03 43.81 49.30 51.88 

Specific Grant Receivable 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 

Employee Adv-Rec 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 

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 Rec 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 

Other Advance - Rec 73.08 0.50 73.08 0.50 73.08 0.50 73.08 0.50 73.08 0.50 73.08 

Inter-Fund Transfer 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 

Others 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 

c) Cash & Bank Balances 40.25 162.62 115.83 54.07 -186.01 -513.45 -891.98 -1385.59 -2057.17 -2921.19 -3961.92 

Total 6256.04 6289.05 7504.21 8964.32 11802.09 15609.78 16562.64 21450.03 26665.41 25749.49 24796.42 

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II Assets 

a) Fixed Assets 28230.18 28230.18 28230.18 28230.18 28230.18 28230.18 28230.18 28230.18 28230.18 28230.18 28230.18 


Stock 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 

Property Tax - Current 42.14 42.65 43.16 43.68 44.20 50.83 51.44 52.06 52.69 53.32 61.32 

Property Tax - Arrears 60.58 66.38 69.20 70.84 72.02 73.01 80.04 83.46 85.44 86.86 88.06 

Profession Tax - Current 4.45 4.58 4.72 4.86 5.00 5.75 5.93 6.10 6.29 6.48 7.45 

Profession Tax - Arrears 7.65 8.27 8.71 9.07 9.39 9.70 10.60 11.23 11.72 12.15 12.55 

Lease Amount -Arrears 5.87 6.00 6.62 6.77 6.92 7.64 7.80 7.98 8.81 9.00 9.21 

Lease Amount-Current 10.82 11.27 11.64 12.44 12.98 13.41 14.34 14.98 15.47 16.54 17.27 

Water Charges - Current 49.54 50.13 50.73 58.14 58.84 59.54 60.26 60.98 68.93 69.76 70.59 

Water Charges - Arrears 78.67 81.00 82.53 83.75 91.64 95.49 97.74 99.35 100.72 109.22 113.44 

Sewerage Chgs - Current 38.68 39.14 39.61 40.08 40.57 47.14 47.71 48.28 48.86 49.45 56.51 

Sewerage Chgs - Arrears 53.30 59.99 63.14 64.86 66.03 66.98 73.93 77.28 79.19 80.54 81.66 

Specific Grant Receivable 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 

Employee Advance-Rec 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 

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 Rec 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 17.82 

Advance Rec - Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Other Advance ñ Rec 0.50 73.08 0.50 73.08 0.50 73.08 0.50 73.08 0.50 73.08 0.50 

Inter-Fund Transfer 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 89.36 

c) Others 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 

Cash & Bank Balances -4801.01 -5726.38 -6441.08 -7291.58 -7932.53 -8635.59 -9205.99 -9965.72 -10594.7 -11420.9 -12099.8 

Total 23904.96 23069.90 22293.26 21529.78 20829.34 20220.77 19598.10 18922.86 18237.75 17499.27 16772.50 

The full projects investment scenario indicates that Gudiyatham Municipality would end up with a cumulative cash deficit of Rs. 

12100 lacs by the end of FY 2028-29 (after 20 years) 

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14.7 IMPACT OF POTENTIAL IMPROVEMENTS 

Gudiyathamís 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 12 of the report. On ëFull Project Investment Scenarioí basis, 

Gudiyathamís own revenues (comprising taxes, user charges and other income) 

could grow from Rs. 234 lacs in FY 2006-07 to Rs. 1336 lacs by FY 2028-29, implying an 

absolute growth of 24%. Gudiyatham 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 ñ through an enhanced revision in ARV, widening assessee base 

and closer scrutiny. Besides periodic increase (every 5 years) in property tax 

rates. 

Professional Tax ñ sustaining a higher assessment growth. 

User Charges ñ periodic increases in user charges for water connections and 

sewerage connections. The Municipality could generate additional Rs. 600 lacs 

of income per annum by FY 2028-29 by providing water connections to 80% of 

property tax assessments and sewerage connections to 70% of property tax 

assessments. 

Gudiyatham also needs to explore scope for private sector participation for 

development of remunerative projects and city beautification projects that have 

been identified by Gudiyatham. 

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 95% 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 Gudiyathamís high 

power costs. 

- 162 - 



14.8 SCENARIO I -ESTIMATION OF INVESTMENT CAPACITY ON AS IS WHERE BASIS 

We carried out the exercise of arriving at the Investment and Borrowing Capacity on 

as is where basis without any financial reforms being carried out and no new 

projects taken in to consideration. The borrowing capacity has been arrived by 

taking the NPV over the next 20 years on the minimum of the following : 

30% of revenue projections 

Primary Operating Surplus (Surplus before Interest & Depreciation) 

The investment capacity has been arrived @ of 4 times the borrowing capacity 

assuming that loans constitute 25% of total investment requirement. 

In such a scenario, the Investment and Borrowing Capacity works out as below : 


Borrowing Capacity Rs. 993.35 lacs 

Investment Capacity (BC x 4 times) Rs. 3973.40 lacs 

14.9 SCENARIO I I-ESTIMATION OF BORROWING AND INVESTMENT CAPACITY WITH 

METTUR CWSS 

In Scenario II, the financial projections have been worked out for the next 30 years, 

by taking all projects in to consideration including Metur CWSS. It has been assumed 

that Metur CWSS would be funded by way of 100% Grant and executed in VI & VII 

years. The operation & maintenance of Metur CWSS would be fully borne by the 

Municipality. The financial projections for the next 20 years have been taken to 

arrive at the Borrowing and Investment capacity. We have arrived at the borrowing 

capacity of Gudiyatham Municipality on the minimum of the following : 

30% of revenue projections 

50% of Primary Operating Surplus less Debt Service 

The overall financing mix has been arrived to include 26% Loans, 65% Grants and 9% 

own funds. The repayment period of loans has been taken at 5+15 years for 

Sewerage and Water Supply Loans and 2+8 years for other project loans. The above 

factors have been taken in to account for arriving at the Annuity Factor, which has 

been applied on the lowest of the above to arrive at the overall borrowing capacity 

and investment capacity. 


Borrowing Capacity - 

Investment Capacity (BC/0.26) - 

- 163 - 



Investment Requirement Rs. 16433.67 lacs 

Sustainable Investment Capacity % - IC / IR -ve 

At an aggregate level, assuming loans to be equivalent to 26% of investment, 

sustainable investment capacity works out to Nil. 

14.10 SCENARIO III-ESTIMATION OF BORROWING AND INVESTMENT CAPACITY 

WITHOUT METTUR CWSS 

In Scenario III, we carried out the exercise of arriving at the Investment and 

Borrowing Capacity of Gudiyatham Municipality without Metur CWSS project. In this 

scenario it is assumed that the entire capital cost and O&M of Metur CWSS would 

be supported by the Government. Thus both the capital cost and O&M cost would 

be received as 100% Grant by the Municipality. 

In such a scenario, the Investment and Borrowing Capacity works out as below : 


Borrowing Capacity - 

Investment Capacity (BC/0.26) - 

Investment Requirement Rs. 16433.67 lacs 

Sustainable Investment Capacity % - IC / IR -ve 

It may be observed that the investment capacity continues to be Nil even if the 

entire O&M cost of Metur CWSS is fully supported by the Government. Thus it can be 

inferred that the Municipality is not in a position to bear the operation & 

maintenance expenses and interest cost of major projects like water supply 

improvements and underground sewerage resulting in negative investment 

capacity. 

14.11 KEY INDICATORS OF SCENARIO II (FULL PROJECT SCENARIO WITH METTUR 

CWSS) 

The key Indictors of the Municipality based on the financial projections works out as 

below : 

Existing (2001-02 to 2006-07) 

Minimum Maximum Average 

Operating Ratio 0.74 1.03 0.88 

Debt Service Ratio 0% 16% 11% 

Category 1 

Short Term (2009-10 to 2013- 

14) 

- 164 - 





Category 3 

Long Term (2009-10 to 2028- 

29) 



Category 3 

Note : 1 ñ Financially Sound; 2 ñ Financially Fragile; 3 ñ Financially Insolvent 

It may be observed that the Municipality is financially very fragile both in the short 

term and long term. The Municipality is unable to bear the high operation & 

maintenance expenses and interest cost on borrowings resulting in operating ratio > 

1% and Debt Service Ratio > 30%. 

14.12 INFERENCE. 

The investment capacity of Gudiyatham Municipality on ëAs is Where Basisí works 

out to Rs. 3973 lacs. 

The investment capacity of Gudiyatham Municipality works to Nil in case of 

Scenario II (With Metur CWSS project) and Nil in case of Scenario III (Without 

Metur CWSS project). 

Thus it can be inferred that Gudiyatham Municipalityís financial position is weak 

and is not in a position to undertake major projects like water supply 

improvements and underground by way of borrowings on account of high 

operation & maintenance expenses and interest cost. 

Based on the above, it can be concluded that the Municipality based on its 

financial position can undertake only smaller projects identified in the CCP as 

given below : 

S.No. Particulars Total Priority Funding By 

A Physical Infrastructure Facilities L : G : M 

I Bus Stand 

a) Construction of New Bus Stand 300.00 B 90:00:10 

II Street Lights 

a) Proposed new lights 40.00 A 100% ULB 

b) Retrofitting existing lights & energy saving devices 15.86 A ESCO 


- 165 - 



I Education 

a) Improvements to Schools 91.20 B 100% ULB 

b) Construction of Municipal Higher Secondary School 150.00 B 100% ULB 

II Parks & Playgrounds 

a) Improvements to Nehru Park & Arun Park 45.00 B 0:50:50 

b) New Park at Robinson Tank 32.00 B 0:50:50 

III Burial Ground / Crematorium 

a) Improvements with Gasifier at Sunnampupettai 60.19 C 0:50:50 

b) Burial Ground improvement at Malalathur Road 15.19 B 0:90:10 

IV Market 

a) Improvements at Daily & Weekly market 27.00 A 100% ULB 

V Shopping Complex 

a) Shopping Complex near Robinson Tank 500.00 A 90:00:10 

VI Slaughter House 

a) Improvement to Slaughter House 8.00 B 0:50:50 

VII Public Convenience 

a) Public Convenience 43.79 B 0:50:50 


I Vehicle 

a) Mobile tax collection van 10.00 A 100% ULB 


a) E-Governance 18.00 C 100% Grant 

b) GIS Mapping for comprehensive database 20.00 A 0:90:10 

Total 1376.23 

As regards major projects like water supply improvements, underground 

sewerage scheme, storm water drains, solid waste management, roads, new 

shopping complex etc., the Municipality can undertake these projects with 

minimum or Nil borrowings and more support from the Government towards 

capital cost. 

Metur CWSS project can be taken up by the Municipality only if both capital cost 

and operation & maintenance expenses is supported by the Government. 

- 166 - 


Annexure Final Report: Gudiyattam Municipality 

Annexure 

Annexure I - a: Minutes of Meeting: First Stakeholdersí Workshop - Gudiyattam 

Date of Workshop : January 26, 2008 

Time (Opening) : 11:30 AM 

Time (Closing) : 01:30 PM 

Sl.NO PERSON NAME DESIGNATION CONTACT NO 

01 Thiru R.S.Shivaprakasam Chairman 9840778989 

02 Thiru. S.Soundarrajan Vice Chairman 9842398426 

03 Thiru U.Saravanan 

Commissioner and 

Municipal Engineer 

9444848104 

04 Thiru .Venkateshan Building Inspector 9894984577 

05 Tmt.M.Zakiya Begam Councilor 04171-227592 

06 V.R.Rafeeque Ahmed Councilor 04171-225263 

07 Tmt.D.Paramaswari,B.Com Councilor 94434 90714 

08 Thiru.P.Ramachandiran Councilor 99440 23764 

09 Thriu.P.Saravanan Councilor 93459 12999 

10 Tmt.A.Gowsar Councilor 93459 20700 

11 Thiru.R.Moorthy Councilor 98947 25449 

12 

Thiru.Jayaprakash(A) Saidai 

Babu 

Councilor 98423 78976 

13 Thiru. S. Ravi, B.Sc., M.A.M.A. Councilor 04171- 224408 

14 Thiru.S.D.Yuvaraj Councilor 94424 55789 

15 Thiru. G. Devaraji Councilor 94860 51375 

16 Tmt. Manimegalai Councilor 94429 75560 

17 Thiru.N.Mariyappan L.E.E Councilor 94426 29313 

18 Thiru.K.S.SenthilKumar Councilor 93459 13295 

19 Thiru. G.JayaKumar, M.A Councilor 93455 54355 

20 Tmt.K.Amudha Councilor 98650 69293 

21 Tmt.G.Sharmila Councilor 94423 12572 

22 Tmt.A.Saraswathi Councilor 98942 28829 

23 Thiru.R.K.Anbu Councilor 93459 25707 

24 Thiru.S.Sathyamoorthy Councilor 94862 57240 

25 Thiru.K.Kesavan Councilor 94435 42133 

26 Thiru.M.N.Baskaran Councilor 94428 07655 

27 Tmt.S.Thirumagal H.Sc. Councilor 94434 90784 

28 Thiru.P.Mohan Councilor 94435 42197 

29 Thiru.S.C.Prakash sowdri Councilor 98423 78978 

30 Tmt.I.Dhanalakshmi Councilor 99420 05710 

31 Tmt.N.Mahalakshmi Councilor 93830 70007 

32 Tmt.R.Kanchana Councilor 9365846649 

33 Thiru.R.Kirubakaran Councilor 99423 51191 

34 Tmt.A.Sheeba Councilor 92452 28491 

35 Thiru.S.Mohan Councilor 94428 05590 

36 Thriu.S.I.Syed Anwar Basha Councilor 92451 43163 

- 167 - 



37 Thiru.M.Baskaran Councilor 94431 14187 

38 Thiru.M.E.Parthiban Councilor 04171-329300 

The stakeholdersí workshop started at 11:30 AM on Saturday, January 26, 2008 in the 

Conference Hall of the Municipality. The workshop was chaired by Chairman ñ Thiru 

R.S.Shivaprakasam. In His opening speech, Mr. Shivaprakasam briefed the 

stakeholders about the objectives of the project and the workshop. The Acting 

Commissioner & Municipal Engineer of The Municipality Thiru U.Saravanan presented 

his view on the City Corporate cum Business Plan. Vice ñ Chairman Thiru. 

S.Soundarrajan presented the general view of the town. Mr. Sanjeet Ahlawat 

(Manager, Voyants Solutions Private Limited) briefed about the work completed by 

the consultant for the City Corporate cum Business Plan. After that Mr. Saravanan & 

Mr. Sathiyaraj presented the brief status, problem and issues relating to urban basic 

services an infrastructure in Gudiyattam. And after this presentation, the 

stakeholders were asked to give their suggestions/ comments in three parts. In first 

part, the consultants invited comments on the contents of the presentation. In the 

second part stakeholders were invited to present the problems of the city which are 

hindrances to the development. In the last section of the workshop, stakeholders 

were asked to suggest the projects required for the integrated development of 

Gudiyattam. 

The Suggestions: 

The suggestions given by the various stakeholders are presented below: 

Thiru R.S.Shivaprakasam, Chairman 

City is having very less fund for infrastructure development, though industrialists 

and business man belong to this want to contribute for improvement 

infrastructure of town but that fund also is not sufficient 

Grant from Government is very low so they can not initiate the development of 

basic infrastructure. 

People are ready to pay for provision of infrastructure but it should be quality 

infrastructure and nominal for them as they are paying for RO treated water 

supply. 

Town roads are encroached by the people so they should be fined and need 

widenening for congestion free traffic. 

The formula to calculate the Propoerty tax is wrong it should be revised as a 

person living in a single floor with small house is paying the same price, what a 

person with 3 floor is paying. 

There is a need to provide infrastructure to Govt. School as the quality of 

infrastructure is very poor. 

Sewerage system and replacement of Water line is on priority and after that the 

road work should start. 

- 168 - 



Thiru. S.Soundarrajan, Vice Chairman 

People of Gudiyattam are very co-operative and want improved infrastructure 

in terms of sewerage and sanitation 

The approach Road from Vellore to Gudiyattam and the connectivity from 

Gudiyattam need widening for better accessibility of town. 

The roads are encroached in town and there is a heavy congestion near the 

Bus- Stand so need to regularize the development. 

Drainage system is not appropriate and need improvement after the laying of 

sewerage system so that water can be treated in an effective way 

There is a need to assess the properties of the town and slum needs 

regularization and improved infrastructure. 

It is necessary that the Govt. should release the fund on time to utilize in better 

way. 

Thiru U.Saravanan, Commissioner and Municipal Engineer 

City need additional sources to provide 135 LPCD water and the augmentation 

of source need funding from CMA. 

Sewerage system is necessary for the town as without that the cleaning of drains 

can not be possible in an effective way 

The municipality is putting money for solid waste management but it is not 

sufficient and need a detailed plan and additional source of fund for tools and 

site development. 

Thiru. G. Devaraji, Councilor, Ward No - 11 

Required underground sewerage system 

Required more taps in all streets for drinking water. 

Road improvement is required. 

Required facilities and shops in bus stand. 

Tmt.G.Sharmila, Councilor, Ward No -18 

Underground drainage is required. 

Park with playing facilities is required 

Thiru.M.E.Parthiban, Councilor, Ward No -36 

Present water supply is not sufficient, so required more. 

Due to heavy traffic at santhappetai bazaar, required bye pass road. 

Required park with children playing instruments. 

Compound wall, water facility and burial sheds are required at Burial ground. 

Improvement is need in Nehru Park. 

Tmt.M.Zakiya Begam, Councilor, Ward No -11 

Quality of water is not sufficient, also quantity is not sufficient so required more. 

Parks and playground for children should be maintained well as now they are 

used as dumping yard. 

- 169 - 



Thiru.P.Ramachandiran, Councilor, Ward No -4 



Required facilities and shops in Markets. 

There should be a dedicated place for Auto Rickshaws and Cycle Rickshaws as 

they park their vehicles any where 

There should be tax imposed on any type of sign board to generate extra 

income for municipality 

Thiru.R.Moorthy, Councilor, Ward No - 7 

Road cleaning and drain cleaning should be done on daily basis 

Thiru.Jayaprakash (A) Saidai, Councilor, Ward No - 8 

Additional fund is required from the state government for development works in 

the municipality 

There is a need to increase the incentive of the councilor so that they can 

perform their duty in an effective way 

There is a need to lay sewerage system in town including slums 

Need to develop a good market in town 

Thiru. S. Ravi, Councilor, Ward No - 9 

There is a need for technical institutions in Gudiyattam tio get the people 

trained. 

There is a need to upgrade the infrastructure facilities in school 

Infrastructure should be provided in every part of the town to develop it equally 

These are some of the suggestions provided by the key person of the municipality, 

the major focus was to develop infrastructure in the town and it should be done is a 

systematic way. The basic infrastructure should be provided to every people and 

the nominal charges should be applied on the available so that the people can 

pay it. After the discussion Chairman and municipal engineer thanked all the 

councilors and key people who attended the discussion. The consultant distributed 

the formats to each of the person present in the meeting to take individuals view 

and priority of infrastructure development and to note down the suggestion and 

briefed the survey format and after the stakeholders finished the filling of survey 

formats Mr. Saravanan thanked all the people attended the Stakeholdersí 

Workshop. 

- 170 - 



Annexure I - b: Minutes of Meeting: Second Stakeholdersí Workshop - Gudiyattam 

Date of Workshop : October 16, 2008 

Time (Opening) : 04.00 PM 

Time (Closing) : 06.00 PM 

Sl.NO PERSON NAME DESIGNATION CONTACT NO 

01 Thiru R.S.Shivaprakasam Chairman 9840778989 

02 Thiru. S.Soundarrajan Vice Chairman 9842398426 

03 Thiru R.Subramanian Commissioner 

99407 79023 

04 Thiru U.Saravanan Municipal Engineer 

- 171 - 

9444848104 

04 Thiru .Venkateshan Building Inspector 9894984577 

05 Tmt.M.Zakiya Begam Councilor 04171-227592 

06 V.R.Rafeeque Ahmed Councilor 04171-225263 

07 Thiru.P.Ramachandiran Councilor 99440 23764 

08 Tmt.A.Gowsar Councilor 93459 20700 

09 Thiru.R.Moorthy Councilor 98947 25449 

10 

Thiru.Jayaprakash(A) Saidai 

Babu 

Councilor 98423 78976 

11 Thiru. S. Ravi, B.Sc., M.A.M.A. Councilor 04171- 224408 

12 Thiru. G. Devaraji Councilor 94860 51375 

13 Thiru.N.Mariyappan L.E.E Councilor 94426 29313 

14 Thiru.K.S.SenthilKumar Councilor 93459 13295 

15 Thiru.S.Sathyamoorthy Councilor 94862 57240 

16 Thiru.M.N.Baskaran Councilor 94428 07655 

17 Thiru.P.Mohan Councilor 94435 42197 

18 Thiru.S.C.Prakash sowdri Councilor 98423 78978 

19 Thiru.M.Baskaran Councilor 94431 14187 

20 Thiru.M.E.Parthiban Councilor 04171-329300 

21 Thiru.V.Rajenedran 

Asst. Executive 

Engineer- TWAD 

94432 53890 

22 Thiru.M.Kumar Assistant Engineer- EB - 

23 Thiru.Kumarasen Junior Engineer- EB - 

24 Thiru.A.Sekar Junior Engineer - EB - 

25 Tmt.Malika Innerwheel ñ President 

26 Tmt.Vijaylakshmi Ramamoorthy Innerwheel - PP - 

27 Tmt.Vasanthi Lakshmipathu Innerwheel ñ PP - 

28 

Thiru. N.Krishnan President ñ Traders 

Association 

- 

Thiru.R.Venkada Krishnan President ñ Hotel, Tea 

29 

shop & Bakery 

Association 

- 

30 

Thiru.K.Srinivasen President ñ Labor 

welfare Association 

- 

31 

Thiru.D.Rajendren Director ñ Rice Mill 

Association 

- 

32 

Thiru T.Munsamy Joint Director- Municipal 

Shops Assocaitions 

- 



The stakeholdersí workshop started at 4.00 PM on Thursday October 16, 2008 in the 

Conference Hall of the Municipality. The workshop was chaired by Chairman ñ Thiru 

R.S.Shivaprakasam. In His opening speech, Mr. Shivaprakasam briefed the 

stakeholders about the objectives of the project and the workshop. The 

Commissioner of The Municipality Thiru R.Subramanian presented his view on the 

City Corporate cum Business Plan. Municipal Engineer Mr.U.Saravanan presented 

the general view of the town. Mr. P.M.Saravanan (Senior Engineer, Voyants Solutions 

Private Limited) briefed about the work completed by the consultant for the City 

Corporate cum Business Plan. After that Mr. Saravanan & Mr. Sreepathy presented 

the brief status, problem and issues relating to urban basic services an infrastructure 

in Gudiyattam. And after this presentation, the stakeholders were asked to give their 

suggestions/ comments in three parts. In first part, the consultants invited comments 

on the contents of the presentation. In the second part stakeholders were invited to 

present the problems of the city which are hindrances to the development. In the 

last section of the workshop, the officials from various departments were answered 

and suggested the projects required for the integrated development of 

Gudiyattam. 

The Suggestions: 

The suggestions given by the various stakeholders are presented below: 

Thiru R.S.Shivaprakasam, Chairman 

City is having very less fund for infrastructure development, though industrialists 

and business man belong to this want to contribute for improvement 

infrastructure of town but that fund also is not sufficient 

Grant from Government is very low so they can not initiate the development of 

basic infrastructure. 

People are ready to pay for provision of infrastructure but it should be quality 

infrastructure and nominal for them as they are paying for RO treated water 

supply. 

Town roads are encroached by the people so they should be fined and need 

widening for congestion free traffic. 

The formula to calculate the Property tax is wrong it should be revised as a 

person living in a single floor with small house is paying the same price, what a 

person with 3 floor is paying. 

There is a need to provide infrastructure to Govt. School as the quality of 

infrastructure is very poor. 

Sewerage system and replacement of Water line is on priority and after that the 

road work should start. 

Electric cable to be change as a underground cable. 

The Rabbinson tank to be renovated with rainwater harvesting facilities and 

create the park in and around tank. 

The old bus stands to be changed as shopping complex. 

- 172 - 



Out of 17 schools, 10 schools are in damaged condition, it should be renovated 

like a private schools. 

Gudiyatham Municipality requires Industrial Estate. 

Thiru. S.Soundarrajan, Vice Chairman 

People of Gudiyattam are very co-operative and want improved infrastructure 

in terms of sewerage and sanitation 

The approach Road from Vellore to Gudiyattam and the connectivity from 

Gudiyattam need widening for better accessibility of town. 

The roads are encroached in town and there is a heavy congestion near the 

Bus- Stand so need to regularize the development. 

Drainage system is not appropriate and need improvement after the laying of 

sewerage system so that water can be treated in an effective way 

There is a need to assess the properties of the town and slum needs 

regularization and improved infrastructure. 

It is necessary that the Govt. should release the fund on time to utilize in better 

way. 

Thiru R.Subramanian, Commissioner 

City needs additional sources to provide 135 LPCD water upto Ultimate year. 

More numbers of additional remunerative projects to be required. 

The exiting bus stand needs to be improvements. 

Out of two burial ground, one burial ground to be changed as a Gasifier 

Crematorium. 

The feasibility studies to be conducted for by pass road and River cause Bridge 

by respective other departments. 

Existing transition main and distribution line of water supply to be changed based 

on its life period. 

Thiru U.Saravanan, Municipal Engineer 

City need additional sources to provide 135 LPCD water and the augmentation 

of source need funding from CMA. 

Sewerage system is necessary for the town as without that the cleaning of drains 

can not be possible in an effective way 

Railways station road have more traffic congestion area ,it affects the traffic 

flow of the road, 

The municipality is putting money for solid waste management but it is not 

sufficient and need a detailed plan and additional source of fund for tools and 

site development. 

Thiru. G. Devaraji, Councilor, Ward No - 11 

Required underground sewerage system 

- 173 - 





Required facilities and shops in bus stand. 

Robbinson tank to be renovated and in ñand ñaround of the tank have more 

space , it should be used such as shopping complex etc 

Thiru.M.E.Parthiban, Councilor, Ward No -36 

Present water supply is not sufficient, so required more. 

Due to heavy traffic at santhappetai bazaar, required bye pass road. 

Required park with children playing instruments. 

Compound wall, water facility and burial sheds are required at Burial ground. 

Improvement is need in Nehru Park. 

Tmt.M.Zakiya Begam, Councilor, Ward No -11 

Quality of water is not sufficient, also quantity is not sufficient so required more. 

Parks and playground for children should be maintained well as now they are 

used as dumping yard. 

Thiru.P.Ramachandiran, Councilor, Ward No -4 



Required facilities and shops in Markets. 

There should be a dedicated place for Auto Rickshaws and Cycle Rickshaws as 

they park their vehicles any where 

There should be tax imposed on any type of sign board to generate extra 

income for municipality 

The existing market shops to be renovated. 

Thiru.R.Moorthy, Councilor, Ward No ñ 7 

Road cleaning and drain cleaning should be done on daily basis 

Underground drainage is required. 

New bus stand to be located out of town. 

Park with playing facilities is required 

Thiru.Jayaprakash(A) Saidai, Councilor, Ward No - 8 

Additional fund is required from the state government for development works in 

the municipality 

Water distribution line exceeds 30 years, it should be changed. 

There is a need to increase the incentive of the councilor so that they can 

perform their duty in an effective way 

There is a need to lay sewerage system in town including slums 

Need to develop a good market in town 

- 174 - 



Thiru. S. Ravi, Councilor, Ward No - 9 

There is a need for technical institutions in Gudiyattam to get the people 

trained. 

There is a need to upgrade the infrastructure facilities in school 

Modernized public toilets to be required for Bazzar area and bus stand. 

Tmt.Malika , President Innerwheel Association 

The solid waste management to be improved like Chennai city 

The transportation facilities of the Solid waste should be stick a per their time 

schedule. 

The Under ground drainage required very soon and proper treatment system 

require at right place of the town 

The footsteps required for Uzalavar Sandhai and weekly market area. 

Rainwater harvesting to be implement in every home. 

Thiru. N.Krishnan, President ñ Traders Association 

Separate toilet room required for Main Bazzar area and weekly market area. 

The slaughterhouse wastewater should be treat and then dispose to the water 

bodies. 

Traffic flow should be maintained by traffic police. 

The road side encroachment should be removed by the town planning Officer. 

Generator facilities required for municipal office 

The remunerative projects to be implement forth coming years. 

Thiru.V.Rajenedran, A.E., TWAD Board. 

TWAD board prepared Detailed Project Report for water supply to meet 

intermediate demand of water. 

The ultimate requirement of water may meet out from Combined Mettur 

Scheme (Cauvery as a source) , the feasibility studies under progress. 

The UGD detailed project report was already prepared, waiting for CMA 

approval. 

These are some of the suggestions provided by the key person of the municipality, 

the major focus was to develop infrastructure in the town and it should be done is a 

systematic way. The basic infrastructure should be provided to every people and 

the nominal charges should be applied on the available so that the people can 

pay it. After the discussion Chairman and municipal engineer thanked all the 

councilors and key people who attended the discussion. The consultant distributed 

the formats to each of the person present in the meeting to take individuals view 

and priority of infrastructure development and to note down the suggestion and 

briefed the survey format and after the stakeholders finished the filling of survey 

formats Mr. Saravanan thanked all the people attended the Stakeholdersí 

Workshop. 

- 175 - 



Annexure I ñ c : Draft Memorandum Of Agreement 

This Agreement is made on this ___________________ day of ____________ 

(Month), 2009 (year) between Tamil Nadu Urban Infrastructure Financial Services 

Limited (referred to as TNUIFSL) and the Gudiyattam Municipality (referred to as ULB) 

1. This agreement follows the completion of the City Corporate Plan cum 

Business Plan (CCP-BP) prepared for the ULB with assistance from Grant Fund 

managed by TNUIFSL. A Vision Plan exercise was conducted by the ULB to identify 

specific projects required to be developed, and certain projects were identified in 

the Vision Plan have been taken through the next steps in terms of preparation of 

detailed project reports and implementation, there was a felt need among 

stakeholders to draw a comprehensive CCP-BP, taking into account a holistic 

perspective of the city/townís current status and gaps. It was to address this need 

that the CCP-BP exercise was conducted. The objectives of the CCP-BP exercise 

were to: 

Define the growth directions and service up-gradations in relation to the 

activity mix / growth 

Assess demand for projects specified by the ULBs and gap in services 

Outline the infrastructure needs; 

Define specific rehabilitation and capital improvement needs with regard to 

priority city infrastructure in slums and other areas 

Identify measures for revenue enhancement and cost reduction required to 

sustain the proposed investments 

Identify reforms required in local administration and service delivery and 

policy interventions 

List out changes required at the local level to improve O&M and better asset 

management 

2. The study will be completed in June 2009 and the municipal council 

passed a resolution adopting the report for implementation on-------------- (Date). 

3. This agreement is being entered into between TNUIFSL and the ULB for 

TNUIFSLís assistance in: 

(a) Developing and financing projects identified as part of the Capital 

Investment Program (CIP) of the CCP and 

b) Monitoring the implementation of a reform agenda required to improve 

municipal management and to carryout implementation of projects identified in a 

sustainable manner. 

- 176 - 



4. The guide lines of this MOA are listed below: 

i. The Gudiyattam municipal council agrees to implement the reform agenda 

as per the targets recommended in the CCP-BP report. A summary of the reform 

agenda in terms of existing status and norms/targets is enclosed in Annexure III. The 

reform agenda outlined focuses on those reforms are to be carried out at the ULB 

level. 

ii. The Gudiyattam municipal council will provide a half-yearly update report 

to TNUIFSL on the status of the implementation of the reform agenda. TNUIFSL shall 

provide a standardised format for reporting this information. 

iii. In case there is any delay in the implementation of the reforms agenda by 

ULB due to circumstances beyond its control, the decision on the matter of 

extension of time for the achievement of targets shall be fixed based on 

consultations between TNUIFSL and the ULB 

iv. TNUIFSL shall also assist the ULB in preparing DPRs for a set of projects jointly 

identified by TNUIFSL and the ULB, based on the Capital Investment Plan (CIP), 

prepared as part of the CCP-BP report. 

vi. TNUIFSL would subsequently assist in structuring and financing projects 

identified earlier through combination of Loan and Grants along with ULB own funds. 

The sanction and disbursement of loans and grants from TNUIFSL shall be in 

conformance with the lending policies and guidelines of Loan and Grant Funds 

under its management and due appraisal of the ULB and the projects by TNUIFSL 

5. The council agrees to the following points: 

i. Issues presented in the project report and to agree to follow all directions of 

CMA/GOTN/TNUIFSL towards execution of the project. 

ii. Draw the loan part for the execution of the works and repay the loan with 

the applicable interest 

iii. Open a joint account with the Concerned Authority and agree to deposit 

the ULBís share every quarter (-- % of the cost of the tendered works), failing which 

to abide by action of CMA/GOTN/ TNUIFSL 

iv. Conform to the subsequent change, if any, in the loan-grant composition 

made by GoTN 

6. Undertake the following reforms during the financial year 2009-10 and to improve 

during the loan period to achieve the target set for every year: 

- 177 - 



i. Listing of assets of the ULB and maximizing efficient use of the same, 

revenue generation from municipal properties through improved collection of land 

revenue /lease to at least of 90 per cent of demand. 

ii. Listing of all trade activities and improving collection of trade license fee to 

at least 90 per cent of demand. 

iii. Revising water tariff as per the G.O------, identification/ regularization of un- 

authorized water connections, improved collection of at least 80 per cent of water 

tariff. 

iv. Imposing solid waste management cess /fees 

v. Increasing coverage with respect to property tax collection i.e. bringing 

at least 90 per cent properties into the tax net, increasing collection efficiency 

and ensuring arrear collection of at least 90 per cent of current demand for 

property tax. 

vi. Computerizing municipal systems and procedures 

vii. Undertake public awareness through ward-level consultation meetings, 

with NGO involvement, improving the image of the ULB and generating confidence 

among citizens regarding the ability of the ULB to deliver quality services 

ix. Acquire land, free from all encumbrances / encroachments, required for 

all identified projects before project loan effectiveness 

x. Solve all problems (like agitation) during construction activity and to ensure 

timely completion of the work as per schedule 

xi. Offer necessary co-operation/coordination with consultants, NGOs and 

various other agencies involved in implementation of the project 

xii. Undertake full responsibility, in respect of civil works, for quality assurance 

and joint measurement of completed works and to assure full co-operation and co- 

ordination and to agree to all pre-qualification requirements and bidding 

procedures of World Bank and to impose penalty, if any, from the first bill itself; 

xiii. Undertake that no variation order without citing reasons for variation as 

well as working out the time and financial implications, will be issued subsequent to 

tendering without prior approval of TNUIFSL 

xiv. Carryout the all the directions of CMA/GoTN/TNUIFSL. 

- 178 - 



Finally, the Council agrees to bind itself to these terms, which would form part of 

future agreement with GoTN/TNUIFSL, and further resolve to authorize the 

Commissioner/Chief Executive Officer to take necessary action to get the above 

mentioned infrastructure facilities to this town. The Council further agrees to 

authorize the Commissioner and Chairman to sign the loan agreement with TNUIFSL. 

SIGNATORIES: 

Place: 

Date: 

Managing Director and CEO, TNUIFSL 

Chairman, ULB Council 

Commissioner, ULB 

- 179 - 



Annexure I ñ d : Minutes of Meeting 

Minutes of Meeting on Revised Draft Final Report submitted by M/s Voyants Solution 

Pvt. Ltd. for City Corporate Plan cum Business Plan study for Cluster V covering Arcot, 

Gudiyatham, Ranipet, Tirupattur, Vaniyambadi and Walajapet, Municipalities held 

on 23.6.2009 and for Ambur, Arakonam Arani, Thiruvathipuram and Madhavaram 

Municipalities held on 24.06.2009 at the office of TNUIFSL. 

Members Present ñ List enclosed 

The consultants were requested to address the following: 

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

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

operate all the new schemes. 

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

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

phasing of the projects identified. 

d) The assumption made on the means of finance. 

Town specific comments 

Ranipet 


Address the requirement of staff quarters and indicate the same as a project 

in CIP in consultation with the ULB. 

Update the details on the Bus Stand project at Muthukadai adjoining Pinji 

Lake in consultation with the ULB. 

Highlight the impact on discharge of polluted water in to Palar river. 

Thiruvathipuram 


Update the details on the assets in consultation with the ULB. 

Revise the Bus Stand improvement project in consultation with the ULB 

- 180 - 



Madhavaram 

The consultants were requested to revise the assumptions on means of 

finance in accordance with JNNURM norms and revise the FOP 

accordingly. 

The consultants were requested to address the above points and include in final 

report. The revised draft final reports for CCCBP are approved. 

- 181 - 



Annexure IX- a: Revenue and Capital Fund - Income 

S.No. Particulars 

Audited 

Unaudited 

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

I Income 

a) Property Tax 

Property Tax for General 

Purpose 

54.57 54.98 56.11 56.98 58.38 69.30 

Excess Remittance - 

Property Tax 

0.02 0.03 0.04 - - - 

b) 

Other Taxes (Profession 

Tax) 

14.66 15.84 19.92 19.07 19.23 87.76 

c) Assigned Revenue 

Duty on Transfer of 

Property 

18.70 53.58 29.60 20.38 18.65 18.85 

Entertainment Tax 7.39 23.92 16.14 12.35 4.92 1.67 

26.09 77.50 45.74 32.73 23.57 20.52 

d) Devolution Fund 76.60 152.97 201.29 166.16 268.67 100.83 

e) Service Charges & Fees 

Trade Licence Fees 3.90 3.27 2.24 2.89 3.00 6.08 

Licence fee under FPA 

act 

0.14 0.03 0.14 0.13 0.13 0.13 

Building Licence Fees 1.20 1.50 1.29 1.65 1.36 3.91 

Fee for Bays & Others 0.90 3.95 5.17 5.18 4.34 6.72 

Survey Fees 0.03 0.04 0.06 0.10 0.16 0.10 

Fees for Free & Pay Toilets 1.74 2.43 3.96 2.78 2.47 4.30 

Other Fees 0.08 2.25 1.72 0.91 0.08 0.57 

Copy application fees 0.50 0.55 0.55 0.61 0.50 0.48 

f) Grants & Contribution 

Grants for Schemes 

Implementation 

- - - - - - 

g) Sale & Hire Charges - - - - - - 

h) Other Income 

Market Fees - Daily 

Market 

7.90 8.03 10.61 10.74 8.45 17.82 

Market Fees - Weekly 

Market 

- 0.90 0.98 1.10 1.02 0.90 

Fees for Slaughter House 0.44 0.55 0.58 0.59 0.44 0.77 

Income from Cable TV - 13.58 - - - - 

Cart Land / Lorry Stand 

Fees 

0.17 - 3.00 - - 0.09 

Rent on Shopping 

complex 

10.56 15.12 13.83 14.66 15.27 37.74 

Rent on Buildings 0.08 0.07 0.07 0.06 0.07 0.21 

Road cut Restoration 

charges 

2.67 0.51 0.57 - 0.46 0.87 

Avenue Receipts - 0.21 0.14 0.71 - 0.55 

Other Income 2.74 1.00 0.50 0.90 10.62 29.01 

Interest from F.D - - - 3.50 2.04 - 

Interest from Investment - 0.81 0.99 - - 0.70 

Development Charges - 0.17 0.26 - - - 

Interest from Bank 0.21 0.07 0.04 0.15 - - 

. - 182 - 



Project Overhead Appr - 

Expenses 

7.56 6.92 14.78 5.42 17.54 17.35 

Income from Road 

Margins 

- - 1.80 - 0.30 - 

Others 1.22 1.97 0.16 - - - 

Total Income 240.07 442.75 432.28 359.75 461.67 427.26 

Annexure IX- b: Revenue and Capital Fund - Expenditure 


2001-02 2002-03 

Audited 

2003-04 2004-05 2005-06 

Unaudited 

2006-07 


a) 

Personnel Cost - 

Salaries 

Salary & 

Allowances 

151.41 95.15 89.48 143.37 88.39 93.79 

Dearness 

Allowance 

- 44.00 45.62 - 59.46 39.04 

House Rent 

Allowance 

- 4.17 4.03 - 3.99 7.64 

Cash Allowance - - - - - 42.53 

Conveyance 

Allowance 

- 0.20 0.20 - - 0.02 

Medical 

Allowance 

- 1.20 1.16 - 1.19 1.11 

Others - 1.74 0.95 - 0.86 1.08 

Exgratia/Bonus - - - - - 4.54 

b) 


Others 

Travel 

Allowance 

0.27 0.18 0.30 1.13 0.55 0.77 

Supply of 

Uniform 

Terminal & 

1.30 1.22 1.26 1.27 0.25 0.75 

c) Retirement 

Benefits 

Pension 27.64 23.55 25.12 14.97 55.47 0.38 

Commutation of 

Pension 

- 4.43 - - - - 

DCR Gratuity 4.97 6.89 4.96 6.57 4.19 - 

SPF - 0.50 - 0.25 - 0.30 

GIS 1.62 1.64 1.65 1.65 - - 

Pensionary 

Contribution 

- 6.99 - - 1.83 - 

d) 

Operating 

Expenses 

Power Charges - 

Street Lights 

10.58 38.37 31.48 16.03 39.61 26.91 

Maintenance - 

Street Lights 

6.07 3.28 2.54 7.82 3.16 - 

Wages 

Sanitary / 

0.53 - - - - - 

Conservancy 

expenses 

- 0.45 0.84 5.17 0.56 0.28 

. - 183 - 



e) 

f) 

g) 

h) 

Others 

Repairs & 

Maintenance 

2.91 1.53 - 0.54 - 1.20 

Light Vehicle 

Maintenance 

3.08 3.75 4.41 1.22 5.62 5.11 

Heavy Vehilce 

Maintenance 

Repairs & 

0.83 0.58 0.20 3.98 0.54 17.51 

Maintenance - 

Buildings 

Repairs & 

2.09 0.40 0.62 - 1.74 - 

Maintenance - 

Strom Water 

Repairs & 

1.09 0.34 0.09 - 2.17 - 

Maintenance - 

Others 

Programme 

Expenses 

Anti-Falaria/Anti 

0.31 0.38 - - 0.08 3.39 

Malaria 

Operation 

- - - - - 2.45 

Election 

Expenses 


Expenses 

- - - 0.05 - 4.20 

Telephone 

Charges 

1.23 1.31 1.76 1.80 1.48 1.17 

Stationery & 

Printing 

Postage & 

1.00 1.83 2.35 1.72 2.20 1.99 

Telegram 

Charges 

0.13 0.17 0.20 0.17 0.16 0.10 

Legal Expenses - 0.31 0.05 0.21 1.54 0.87 

Advertisement 

Charges 

Computer 

0.24 1.08 0.80 1.47 1.16 1.19 

Operating 

Expenses 

0.48 0.62 2.99 1.59 1.37 1.69 

Contribution to 

Municipal Fund 

- 20.66 24.51 31.20 - - 

Contribution 0.18 0.16 0.20 0.16 - 0.28 

Contributions to 

other funds 

5.68 - - - 22.70 4.30 

Books & 

Periodicals 

0.02 0.04 0.04 0.02 0.10 0.04 

Sitting Fees for 

Councillors 

1.19 1.32 1.22 1.31 1.40 0.97 

Survey charges - 1.62 0.23 0.71 0.24 - 

Others 

Finance 

Expenses 

Provision for 

1.85 0.27 8.69 1.12 2.03 50.01 

doubtful 

collection of rev 

5.76 7.49 12.59 13.12 27.75 - 

. - 184 - 



items 

Interest on Loans 

/ Ways Means 

Adv / OD 

24.94 27.62 40.82 20.17 58.96 - 

Others 3.61 2.25 0.10 0.65 1.17 - 

I) Depreciation 104.40 86.62 84.03 70.94 57.37 - 

Total Expenses 365.41 394.31 395.49 350.38 449.29 315.60 


for the year 

(125.34) 48.44 36.79 9.37 12.38 111.67 

Annexure IX - c: Water Supply and Drainage Fund 


2001-02 2002-03 

Audited 

2003-04 2004-05 2005-06 

Unaudited 

2006-07 

I Income 


Water Supply & 

Drainage Tax 

27.29 27.49 28.06 28.49 29.20 30.13 

Excess Remittance 0.01 - 0.01 - - - 

b) 

Service Charges & 

Fees 

Initial amount for 

WSNSC 

Initial amount for 

5.00 - - - 4.33 1.40 

new water 

connection 

- 3.62 12.96 5.52 - 0.80 

Metered / Tap Rate 

charges 

22.19 23.78 31.92 29.73 31.20 39.20 

Other Fee - 1.31 0.51 0.18 - - 

c) Other Income 

Other Income 1.87 0.03 - - - - 

Project Overhead 

Appr - Expenses 

0.60 0.82 0.76 7.69 0.84 - 

Others 0.01 0.07 - 0.01 - - 

Total Income 56.97 57.12 74.22 71.62 65.57 71.53 


a) 

Personnel Salaries 

Cost 

Salary / Exgratia / 

Bonus 

10.59 6.60 6.69 10.35 7.40 10.97 

Dearness Allowance - 3.08 3.41 - 4.10 3.35 

House Rent 

Allowance 

- 0.31 0.31 - 0.30 1.04 

Conveyance 

Allowance 

- 0.03 0.02 - 0.63 - 

Medical Allowance - 0.08 0.09 - 0.12 0.15 

Others - 0.03 0.02 - - - 

b) 


Others 

- - - 0.02 - - 

c) 

Terminal & 

Retirement Benefits 

Pension 4.35 4.01 3.83 2.49 - - 

DCR Gratuity - - - 1.88 - - 

. - 185 - 



GIS, Management 

Contribution 

- - - 0.05 - - 

d) Operating Expenses 

Wages - 0.92 1.05 1.07 - - 


Head Water Works 

20.71 26.95 17.58 29.15 31.30 22.57 


Street Light 

- - 29.07 8.35 - 10.92 

Street Light 

Maintenance 

- - 2.57 - - 2.12 

e) 

Repairs & 

Maintenance 

Light Vehicle 

Maintenance 

0.15 - 0.90 0.89 1.00 0.24 

Hire Charge for 

water supply 

Maintenance 

- - - 7.70 6.60 - 

charges TWAD 

Board 

Repairs & 

1.60 - - - 1.00 - 

Maintenance - Inst. 

& P&M 

- - - - - 0.60 

Others 1.71 5.10 2.33 3.23 - - 

24.17 32.97 53.50 50.39 39.90 36.45 

f) Program Expenses - - - 13.01 - - 

g) 


Expenses 

Telephone Charges 

Municipal 

0.25 0.23 0.20 0.11 0.10 0.10 

contribution to other 

funds 

- 2.30 - - 0.10 - 

Other Expenses 0.02 0.01 0.24 0.48 - - 

h) Finance Expenses 

Provision for 

doubtful coll. of 

revenue items 

1.97 2.50 2.63 22.57 3.97 - 

Interst on loan 17.65 19.70 19.70 30.51 22.20 - 

Irrecoverable 

revenue items w/off 

- 0.80 - 0.02 - - 

Bank charges - 0.01 - - - - 

I) Depreciation 6.43 4.71 5.55 9.00 11.59 - 



for the year 

(32.63) (53.22) (75.47) (119.65) -64.74 (16.98) 

Annexure IX - d: Education Fund 


2001-02 2002-03 

Audited 

2003-04 2004-05 2005-06 

Unaudited 

2006-07 

I Income 


Education Tax 13.65 13.75 14.03 14.24 14.60 15.06 

b) Other Income 

Project Overhead Appr - 0.54 - 0.98 - 0.59 0.65 

. - 186 - 



Expenses 

Others - 0.15 0.19 2.00 0.23 - 

Total Income 14.19 13.90 15.20 16.24 15.42 15.71 


a) Operating Expenses - 0.22 - - - - 

b) Repairs & Maintenance 

Repairs - Building 0.84 0.05 - - - - 

c) Program Expenses - - - 13.50 - - 

d) 


Expenses 

- 0.82 - 0.04 - - 

e) Finance Expenses 

Provision for doubtful 

collection of rev items 

- 0.80 - 1.77 - - 

Irrecoverable items 

write off 

0.68 0.40 1.32 - - - 

f) Depreciation 1.80 1.75 2.06 2.45 7.92 - 


Surplus / (Deficit) for the 

year 

10.87 9.86 11.82 (1.52) 7.50 15.71 

. - 187 - 




I Income 

Annexure IX - e: Summary of Income and Expenditure Accounts 

Audited Unaudited 

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

Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total 

Capital Supply Education Capital Supply Education Capital Supply Education Capital Supply Education Capital Supply Education Capital Supply Education 

a) Property Tax 54.59 27.30 13.65 95.54 55.01 27.49 13.75 96.25 56.15 28.07 14.03 98.25 56.98 28.49 14.24 99.71 58.38 29.20 14.60 102.18 69.30 30.13 15.06 114.49 

b) Other Taxes 14.66 - - 14.66 15.84 - - 15.84 19.92 - - 19.92 19.07 - - 19.07 19.23 - - 19.23 87.76 - - 87.76 

c) 

Assigned 

Revenue 

26.09 - - 26.09 77.50 - - 77.50 45.74 - - 45.74 32.73 - - 32.73 23.57 - - 23.57 20.52 - - 20.52 

d) 

Devolution 

Fund 

Service 

76.60 - - 76.60 152.97 - - 152.97 201.29 - - 201.29 166.16 - - 166.16 268.67 - - 268.67 100.83 - - 100.83 

e) Charges & 

Fees 

8.49 27.19 - 35.68 14.02 28.71 - 42.73 15.13 45.39 - 60.52 14.25 35.43 - 49.68 12.04 35.53 - 47.57 22.30 41.40 - 63.70 

f) 

g) 

Grants & 

Contribution 

Sale & Hire 

Charges 

0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 

0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 0.00 - - 0.00 

h) Other Income 33.55 2.48 0.54 36.57 49.91 0.92 0.15 50.98 48.31 0.76 1.17 50.24 37.83 7.70 2.00 47.53 56.21 0.84 0.82 57.87 106.03 0.00 0.65 106.68 

Total Income 213.98 56.97 14.19 285.14 365.25 57.12 13.90 436.27 386.54 74.22 15.20 475.96 327.02 71.62 16.24 414.88 438.10 65.57 15.42 519.09 406.74 71.53 15.71 493.98 


a) 

b) 

c) 

d) 

e) 

f) 

g) 

Personnel 

Cost - Salaries 

Personnel 

Cost - Others 

Terminal & 

Retirement 

Benefits 

Operative 

Expenses 

Repairs & 

Maintenance 

Programme 

Expenses 

Admnistrative 

Expenses 

151.41 10.59 - 162.00 146.46 10.13 - 156.59 141.44 10.54 - 151.98 143.37 10.35 - 153.72 153.89 12.55 - 166.44 189.74 15.51 - 205.25 

1.57 0.00 - 1.57 1.40 0.00 - 1.40 1.56 0.00 - 1.56 2.40 0.02 - 2.42 0.80 0.00 - 0.80 1.52 0.00 - 1.52 

34.23 4.35 - 38.58 44.00 4.01 - 48.01 31.73 3.83 - 35.56 23.44 4.42 - 27.86 61.49 0.00 - 61.49 0.68 0.00 - 0.68 

20.09 20.71 0.00 40.80 43.63 27.87 0.22 71.72 34.86 50.27 0.00 85.13 29.56 38.57 0.00 68.13 43.33 31.30 0.00 74.63 28.39 35.61 0.00 64.00 

7.40 3.46 0.84 11.70 5.45 5.10 0.05 10.60 5.32 3.23 0.00 8.55 5.20 11.82 0.00 17.02 10.15 8.60 0.00 18.75 26.01 0.84 0.00 26.85 

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 13.01 13.50 26.56 0.00 0.00 0.00 0.00 6.65 0.00 0.00 6.65 

12.00 0.27 0.00 12.27 29.39 2.54 0.82 32.75 43.04 0.44 0.00 43.48 41.48 0.59 0.04 42.11 34.38 0.20 0.00 34.58 62.60 0.10 0.00 62.70 

h) 

Finance 

Expenses 

34.31 19.62 0.68 54.61 37.36 23.01 1.20 61.57 53.51 22.33 1.32 77.16 33.94 53.10 1.77 88.81 87.88 26.17 0.00 114.05 0.00 0.00 0.00 0.00 

I) Depreciation 104.40 6.43 1.80 112.63 86.62 4.71 1.75 93.08 84.03 5.55 2.06 91.64 70.94 9.00 2.45 82.39 57.37 11.59 7.92 76.88 0.00 0.00 0.00 0.00 

Total 

Expenditure 

Surplus / 

(Deficit) 

365.41 65.43 3.32 434.16 394.31 77.37 4.04 475.72 395.49 96.19 3.38 495.06 350.38 140.88 17.76 509.02 449.29 90.41 7.92 547.62 315.60 52.06 0.00 367.66 

(151.43) (8.46) 10.87 (149.02) (29.06) (20.25) 9.86 (39.45) (8.95) (21.97) 11.82 (19.10) (23.36) (69.26) (1.52) (94.14) (11.19) (24.84) 7.50 (28.53) 91.14 19.47 15.71 126.32 

. - 188 - 




I 

Income (% of 

Total Income) 

Annexure IX - f: Summary of Income and Expenditure Accounts in Percentage 


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



a) Property Tax 26% 48% 96% 22% 15% 48% 99% 22% 15% 38% 92% 21% 17% 40% 88% 24% 13% 45% 95% 20% 17% 42% 96% 23% 

b) Other Taxes 7% - - 3% 4% - - 4% 5% - - 4% 6% - - 5% 4% - - 4% 22% - - 18% 

c) 

Assigned 

Revenue 

12% - - 6% 21% - - 18% 12% - - 10% 10% - - 8% 5% - - 5% 5% - - 4% 

d) 

Devolution 

Fund 

Service 

36% - - 18% 42% - - 35% 52% - - 42% 51% - - 40% 61% - - 52% 25% - - 20% 

e) Charges & 

Fees 

4% 48% - 8% 4% 50% - 10% 4% 61% - 13% 4% 49% - 12% 3% 54% - 9% 5% 58% - 13% 

f) 

Grants & 

Contribution 

0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 

g) 

Sale & Hire 

Charges 

0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 0% - - 0% 

h) Other Income 16% 4% 4% 8% 14% 2% 1% 12% 12% 1% 8% 11% 12% 11% 12% 11% 13% 1% 5% 11% 26% 0% 4% 22% 

Total Income 100% 100% 100% 65% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 

II 

Expenditure 

(% of Total 

Expt) 

a) 

Personnel Cost 

- Salaries 

41% 16% - 37% 37% 13% - 33% 36% 11% - 31% 41% 7% - 30% 34% 14% - 30% 60% 30% - 56% 

b) 


- Others 

Terminal & 

0% 0% - 0% 0% 0% - 0% 0% 0% - 0% 1% 0% - 0% 0% 0% - 0% 0% 0% - 0% 

b) Retirement 

Benefits 

9% 7% - 9% 11% 5% - 10% 8% 4% - 7% 7% 3% - 5% 14% 0% - 11% 0% 0% - 0% 

c) 

Operative 

Expenses 

5% 32% 0% 9% 11% 36% 5% 15% 9% 52% 0% 17% 8% 27% 0% 13% 10% 35% 0% 14% 9% 68% - 17% 

d) 

Repairs & 

Maintenance 

2% 5% 25% 3% 1% 7% 1% 2% 1% 3% 0% 2% 1% 8% 0% 3% 2% 10% 0% 3% 8% 2% - 7% 

e) 

Programme 

Expenses 

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 9% 76% 5% 0% 0% 0% 0% 2% 0% - 2% 

f) 

Admnistrative 

Expenses 

3% 0% 0% 3% 7% 3% 20% 7% 11% 0% 0% 9% 12% 0% 0% 8% 8% 0% 0% 6% 20% 0% - 17% 

g) 

Finance 

Expenses 

9% 30% 20% 13% 9% 30% 30% 13% 14% 23% 39% 16% 10% 38% 10% 17% 20% 29% 0% 21% 0% 0% - 0% 

h) Depreciation 29% 10% 54% 26% 22% 6% 43% 20% 21% 6% 61% 19% 20% 6% 14% 16% 13% 13% 100% 14% 0% 0% - 0% 

Total 

Expenditure 

Surplus / 

(Deficit) (% of 

Total Income) 

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - 100% 

-71% -15% 77% -52% -8% -35% 71% -9% -2% -30% 78% -4% -7% -97% -9% -23% -3% -38% 49% -5% 22% 27% 100% 26% 

. - 189 - 



S.No 

Annexure IX - g: Growth in Revenue and Cost for Last 5 Years 

Particulars 

2002-03 

2003-04 

. - 190 - 

2004-05 

2005-06 

2006-07 

Simple 

Average 


Comp. 

Average 

I Income 

a) Property Tax 0.74% 2.08% 1.49% 2.48% 12.05% 3.77% 3.97% 

b) Other Taxes 8.05% 25.76% -4.27% 0.84% 356.37% 77.35% 99.73% 

c) 

Assigned 

Revenue 

- Duty on 

Transfer of 

Property 

- 

186.52% -44.76% -31.15% -8.49% 1.07% 20.64% 0.16% 

Entertainment 

Tax 

223.68% -32.53% -23.48% -60.16% -65.98% 8.31% -15.47% 

d) 

Devolution 

Fund 

Service 

99.70% 31.59% -17.45% 61.69% -62.47% 22.61% 6.33% 

e) Charges & 

Fees 

- Water 

Charges 

- Water 

7.17% 34.23% -6.86% 4.94% 25.64% 13.02% 15.33% 

Connection 

Charges 

-27.60% 258.01% -57.41% -21.56% -49.19% 20.45% -11.20% 

- Others 65.14% 7.92% -5.82% -15.51% 85.22% 27.39% 32.53% 

f) 

Grants & 

Contribution 

- - - - - 0.00% - 

g) 

Sale & Hire 

Charges 

- - - - - 0.00% - 

h) Other Income 39.41% -1.45% -5.39% 21.75% 84.34% 27.73% 38.34% 


a) 


- Salaries 

-3.34% -2.94% 1.14% 8.28% 23.32% 5.29% 5.34% 

b) 


- Others 

Terminal & 

-10.83% 11.43% 55.13% -66.94% 90.54% 15.87% -0.58% 

c) Retirement 

Benefits 

24.44% -25.93% -21.65% 120.71% -98.90% -0.27% -19.65% 

d) 

Operative 

Expenses 

75.78% 18.70% 0.00% 9.55% -14.24% 17.96% 11.37% 

e) 

Repairs & 

Maintenance 

-9.40% -19.34% 99.06% 10.16% 43.20% 24.74% 25.90% 

f) 

Program 

Expenses 

- - - -100.00% - -20.00% - 

g) 

Administrative 

Expenses 

166.91% 32.76% -3.15% -17.88% 81.32% 51.99% 82.20% 

h) 

Finance 

Expenses 

12.74% 25.32% 15.10% 28.42% -100.00% -3.68% -20.00% 

I) Depreciation -17.36% -1.55% -10.09% -6.69% -100.00% -27.14% -20.00%


Annexure IX - h: Revenue and Capital Fund Balance Sheet 


2001-02 2002-03 

Audited 

2003-04 2004-05 2005-06 

Unaudited 

2006-07 

I Liabilities 


Loans from 

Government 

120.89 119.90 119.70 108.18 91.02 91.02 

Loan from 

TUFIDCO 

- 10.61 10.61 10.61 331.90 331.94 

Loan from 

TNUDF 

65.00 66.12 61.10 65.00 51.51 53.72 

Loan from Bank 

Contribution 

- - - - - 90.7 

from Municipal 

Fund 

Contribution 

15.95 38.89 39.95 58.80 166.36 155.7 

from Private 

Parties 

Contribution 

2.54 2.54 2.55 5.04 9.50 9.53 

from 

Government 

97.22 203.33 262.76 291.1 312.67 312.67 

Grant from 

Government 

53.30 40.34 24.43 33.94 45.94 61.08 

Accumulated 

Depreciation 

106.4 287.91 371.95 442.89 57.37 101.02 

b) 

Current 

Liabilities 

Reserve for 

Doubtful 

Collection of Rev 

Items 

Tender Deposits 

- 34.53 47.13 54.71 57.60 57.60 

- Contractors & 

Suppliers 

24.36 18.10 16.03 18.58 8.20 22.75 

Security & 

Deposit Others 

2.69 26.28 25.67 24.66 190.00 210.37 

Other Deposit - 0.71 1.10 1.24 - - 

Library Cess 

Payable 

31.96 42.10 49.48 51.69 57.86 - 

GIS Contribution 

Payable 

11.30 14.35 16.00 17.65 19.67 - 

Interest Payable 

Account 

24.75 91.61 121.53 102.55 71.55 - 

Audit fees - 

payable 

IT & ST 

1.37 2.52 2.99 2.26 - 

Deduction - 

Contractors 

Water supply & 

4.00 4.02 3.28 3.32 0.16 - 

dranage Tax 

Payable 

4.59 - 1.33 1.32 1.70 - 

Education Tax 

Payble 

2.29 0.48 0.49 0.56 - 

Survey charge 

payable 

- 16.32 16.33 16.32 17.36 - 

. - 191 - 



c) 

Recoveries - Staff 43.59 42.42 43.31 45.63 40.25 135.01 

Outstandings 

Accounts 

53.02 - - - - 1044.00 

Payable - 

Suppliers & 

Others 

Accounts 

1.70 2.76 2.81 - - - 

Payable - 

Expenses 

- - - -0.35 - - 

Other Recoveries 

& Payables 

- 53.28 53.15 54.01 2.00 - 

Inter Funds 

Transfer 

Municipal 

- 8.89 8.89 82.72 36.80 - 

Contribution to 

Specific Shemes 

- - 24.51 - - - 

Accumulated 

Surplus 

3220.57 3004.45 2991.05 2959.89 2974.82 3034.16 

Total 3887.49 4131.98 4318.12 4452.25 4544.80 5711.27 

Annexure IX - i: Revenue and Capital Fund Balance Sheet 

S.No Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 

II Assets 

a) Fixed Assets 

Land 3174.08 3163.04 3163.04 3163.04 3163.10 3163.04 

Buildings 111.19 136.02 182.14 206.93 231.37 275.08 

Bridges & Flyovers 

Strom Water Drains, 

23.52 23.85 23.86 23.86 25.05 26.55 

Open Drains & 

Culverts 

57.87 85.03 118.79 129.42 118.79 153.99 

Heavy & Light 

Vehicles 

12.11 12.11 12.11 12.11 22.22 24.05 

Other Vehicles 0.54 0.54 0.54 0.54 2.52 2.54 

Furniture & Fixtures 0.50 0.5 0.50 0.50 4.28 5.37 

Electrical Inst. 33.64 35.46 35.46 35.49 38.24 41.86 

Plant & Machinery 1.19 1.59 1.82 1.82 1.82 2.91 

Roads & Pavements 280.75 244.4 260.26 275.75 271.02 297.53 

Roads & Pavements 

Black Topped 

- 131.05 153.43 157.67 176.36 260.97 

Sullage water 

removable tankers 

- - - - - 1.69 

Water Supply Head 

Works 

- - - - - 0.36 

Borewell & Hand 

Pumps 

- - - - - 40.07 

Public fountains - - - - - 30.43 

Projects in Progress - 

Govt. Grants 

- - - 2.36 - 11.75 

Projects in Progress 33.20 7.74 - 0.47 - - 


Stock 2.65 0.2 4.51 4.10 4.51 4.51 

Property Tax 16.35 19.68 19.40 28.57 27.70 51.09 

. - 192 - 



C) 

Recoverable - 

Current 

Property Tax 

Recoverable - Arrears 

Profession Tax 

30.87 53.15 60.66 70.70 79.50 58.81 

Recoverable - 

Current 

4.00 3.9 6.44 4.52 5.62 76.67 

Profession Tax 

Recoverable - Arrears 

Licence Fees & Other 

32.87 39.03 42.08 48.33 53.88 52.97 

Fees Recoverble - 

Current 

Licence Fees & Other 

- - - - 4.64 - 

Fees Recoverble - 

Arrears 

0.50 0.47 0.50 0.47 6.17 - 

Lease Amount 

Recoverable -Arrears 

3.37 7.76 11.03 9.62 - 6.19 

Lease Amount 

Recoverable-Current 

Material cost- 

4.24 9.68 3.67 4.44 - 41.01 

Recoverable (Cement 

) 

Material cost- 

3.30 - - - - - 

Recoverable 

(Bitumen ) 

0.10 0.63 - - - - 

Specific Grant 

Receivable 

0.58 0.58 0.58 - 0.50 0.58 

Library cess Account - - - 0.81 - - 

Employee Advance- 

Recoverable 

- 4.89 5.07 - 5.38 5.32 

Deposits Recoverable - 3.05 - 0.27 118.18 - 

Staff Advance 

Recoverable 

1.62 1.79 1.74 - 1.77 1.81 

Advance Recoverable 

- Expenses 

4.88 - - 5.61 - - 

Other Advance - 

Recoverable 

29.92 72.93 72.93 72.93 72.58 - 

Income from Cable 

Tv 

- 28.66 28.66 28.66 - 4.72 

Inter-Fund Transfer 0.03 -30.34 -12.19 -8.38 - - 

Cash & Bank 

Balances 

Cash on Hand 0.05 0.35 - 15.71 0.41 72.98 

Banks Accounts 16.35 57.45 41.44 155.93 109.19 996.42 

Fixed Deposit 7.22 16.79 79.65 - - - 

Total 3887.49 4131.98 4318.12 4452.25 4544.80 5711.27 

. - 193 - 



Annexure IX - j: Water Supply and Drainage Fund Balance Sheet 

S. 

No 

Particulars 

2001-02 2002-03 

Audited 

2003-04 2004-05 2005-06 

Unaudited 

2006-07 

I Liabilities 


Loan from Government 145.88 145.89 145.89 145.89 142.28 84.39 

Tufidco Loan - - - 151.83 - - 

Contribution from Municipal 

Fund 

0.40 2.70 13.54 48.27 112.04 112.04 

Contribution from 

Government 

11.38 18.63 38.63 73.80 52.94 52.95 

Accumulated Depreciation 11.02 15.74 21.29 30.29 7.80 87.19 


Provision for doubtful 

collections 

9.42 11.07 13.70 31.66 17.85 1.78 

Tender Deposit 0.08 0.08 0.16 0.53 0.75 1.12 

Other Deposits - 0.03 - - - 0.05 

Staff Advance Recoverable - 1.68 1.58 1.64 - - 

IT & ST Deduction - 

Contractors 

0.35 0.36 0.36 0.50 - 0.19 

Royalty - - - 10.74 - - 

Interst on loans pay able 55.97 79.11 98.81 109.62 98.81 195.97 

Other Recoveries / Payables 1.46 0.09 0.12 1.20 0.20 26.09 

Inter Division Transfer - 0.75 0.79 0.79 56.21 56.21 

c) Accumulated Surplus -70.14 -90.59 -112.40 -339.69 -65.70 - 

Total 165.82 185.54 222.47 267.07 423.18 617.98 

II Assets 


Land 20.95 20.95 20.95 20.95 20.95 20.95 

Buildings 3.42 3.42 3.42 3.42 7.30 8.41 

Heavy & Light Vehicles 3.44 3.44 3.44 3.44 3.44 3.52 

Electrical Installation 1.08 1.08 1.08 1.08 3.88 3.87 

Plant & Machinery 18.95 20.68 20.68 40.09 20.69 81.32 

Water Supply Mains - 0.82 15.38 37.70 43.90 43.90 

Project in Progress Govt. 

Grants 

- - - - - 2.30 

Bore Well & Hand Pump 28.56 36.38 60.33 95.60 186.11 195.70 


WSD Tax Receivable - 

Current 

9.01 9.84 9.70 14.29 13.86 29.01 

WSD Tax Receivable - 

Arrears 

7.51 26.57 30.33 35.23 39.76 29.34 

Water Charges Recoverable - 

Current 

14.16 9.51 14.30 19.02 18.98 42.69 

Water Charges Recoverable - 

Arrears 

23.33 19.40 23.07 32.99 47.67 33.61 

Recoverable - Staff Advances 0.07 0.09 0.09 0.09 0.08 0.89 

Recoverable - Advances 

Others 

0.20 0.33 0.73 1.90 1.23 0.40 

Inter Funds transfer 23.87 22.55 4.68 -43.42 10.68 8.48 

Stock on Hand - 0.42 0.36 1.90 0.36 0.36 

Others - 0.44 13.97 0.61 - 0.06 

c) Cash & Bank Balances 

Bank Accounts 11.27 9.62 -0.04 2.18 4.29 112.47 

. - 194 - 



Total 165.82 185.54 222.47 267.07 423.18 617.28 

Annexure IX - k: Education Fund Balance sheet 


2001-02 2002-03 

Audited 

2003-04 2004-05 2005-06 

Unaudited 

2006-07 

I Liabilities 


Contribution 

Municipal Fund 

1.36 2.19 2.19 5.87 3.56 3.56 

Contribution from 

Government 

8.65 8.62 16.69 16.70 18.35 18.35 

Accumulated 

Depreciation 

3.26 5.01 7.07 9.53 15.42 17.76 


Provision for 

Doubtful Collection 

Tender Deposits - 

3.01 3.62 4.93 6.59 8.29 8.29 

Contractors & 

Suppliers 

0.07 0.08 0.09 0.68 -0.15 0.61 

Project overhead 

Appropriation Exp 

- - - - - 0.66 

Education Tax 

Payble 

Account payable 

- - - - - 15.06 

(Contrators 

&Suppliers) 

(0.48) (0.48) -0.48 -0.48 -0.48 17.70 

Deposit - Others - 0.08 0.10 0.03 0.04 0.73 

Welfare 0.06 0.06 - 0.10 - - 

IT & ST Deduction 

- Contractors 

0.16 0.12 0.11 0.11 - 0.44 

c) 

Accumulated 

Surplus 

898.91 908.96 920.84 919.50 920.86 919.60 

Total 915.00 928.26 951.54 958.63 965.89 1002.76 

II Assets 


Land 844.37 844.37 844.36 844.36 844.37 844.38 

Buildings 37.56 38.47 48.45 55.54 52.51 48.94 

Projects in Progress - - - - - 16.13 


Education Tax Rec 

- Current 

4.50 4.92 4.80 7.14 6.92 14.76 

Education Tax Rec 

- Arrears 

11.70 13.28 15.16 17.67 19.88 14.53 

Staff advance - 0.02 0.02 0.02 - 15.80 

Fixed Deposit - 5.07 15.06 10.48 5.40 - 

Inter Fund 

Transfer 

- 15.54 16.03 20.53 31.58 25.03 

Others - 0.03 0.13 0.04 - - 

c) 

Cash & Bank 

Balances 

Cash on Hand 6.58 - - - - - 

Bank A/c 10.29 6.56 7.53 2.85 5.23 23.19 

Total 915.00 928.26 951.54 958.63 965.89 1002.76 

. - 195 - 




I Liabilities 

a) 

b) 

c) 

Grants / 

Contribution 

Accumulated 

Depreciation 

Current 

Liabilities 

Annexure IX - l: Summary of Balance sheet 


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



354.90 157.66 10.01 522.57 481.73 167.22 10.81 659.76 521.10 198.06 18.88 738.04 572.67 419.79 22.57 1015.03 1008.90 307.26 21.91 1338.07 1106.36 249.38 21.91 1377.65 

106.40 11.02 3.26 120.68 287.91 15.74 5.01 308.66 371.95 21.29 7.07 400.31 442.89 30.29 9.53 482.71 57.37 7.80 15.42 80.59 101.02 87.19 17.76 205.97 

205.62 67.28 2.82 275.72 357.89 93.17 3.48 454.54 434.02 115.52 4.75 554.29 476.80 156.68 7.03 640.51 503.71 173.82 7.70 685.23 1469.73 281.41 43.49 1794.63 

d) Net Surplus 3220.57 (70.14) 898.91 4049.34 3004.45 (90.59) 908.96 3822.82 2991.05 (112.40) 920.84 

Total 

Liabilities 

3799.49 

. - 196 - 

2959.89 (339.69) 919.50 3539.70 2974.82 (65.70) 920.86 3829.98 3034.16 0.00 919.60 

3887.49 165.82 915.00 4968.31 4131.98 185.54 928.26 5245.78 4318.12 222.47 951.54 5492.13 4452.25 267.07 958.63 5677.95 4544.80 423.18 965.89 5933.87 5711.27 617.98 1002.76 7332.01 

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

S.No Particulars Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total Rev & Water Elem'tary Total 

II Assets 


a) Fixed Assets 3728.59 76.40 881.93 4686.92 3841.33 86.77 882.84 4810.94 3951.95 125.28 892.81 4970.04 4009.96 202.28 899.90 5112.14 4054.77 286.27 896.88 5237.92 4338.19 359.97 909.45 5607.61 

b) 

Current 

Assets 

Cash & 

135.28 78.15 16.20 229.63 216.06 89.15 38.86 344.07 245.08 97.23 51.20 393.51 270.65 62.61 55.88 389.14 380.43 132.62 63.78 576.83 303.68 144.84 70.12 518.64 

c) Bank 

Balances 

23.62 11.27 16.87 51.76 74.59 9.62 6.56 90.77 121.09 -0.04 7.53 128.58 171.64 2.18 2.85 176.67 109.60 4.29 5.23 119.12 1069.40 112.47 23.19 1205.06 

Total Assets 3887.49 165.82 915.00 4968.31 4131.98 185.54 928.26 5245.78 4318.12 222.47 951.54 5492.13 4452.25 267.07 958.63 5677.95 4544.80 423.18 965.89 5933.87 5711.27 617.28 1002.76 7331.31 


3953.76


Annexure IX - m: Demand Collection Balance Statement ñ 2006-07 


Demand Collection Collection % 

Arrears Curren 

t 

Total Arrears Current Total Arrears Current Total 

A 2006-07 

I Tax Income 

a) Property Tax 79.51 97.02 176.53 20.70 45.92 66.62 26% 47% 38% 

b) 

Profession 

Tax 

53.88 92.45 146.33 0.91 15.78 16.69 2% 17% 11% 

II 

a) 

Total Tax 

Income 

Non Tax 

Income 

Water 

Charges 

133.39 189.47 322.86 21.61 61.70 83.31 16% 33% 26% 

47.67 58.18 105.85 14.05 15.49 29.54 29% 27% 28% 

b) Other Fees 76.57 226.53 303.10 50.34 50.88 101.2 

2 

Total Non 

Tax Income 

124.24 284.71 408.95 64.39 66.37 130.7 

6 

III 

Total Tax & 

Non Tax 

Income 

257.63 474.18 731.81 86.00 128.07 214.0 

7 

. - 197 - 

66% 22% 33% 

52% 23% 32% 

33% 27% 29% 

Annexure IX - n: Demand Collection Balance Statement -2005-06 


Demand 

Arrears Current Total 

Collection 


Collection % 


B 2005-06 

I Tax Income 

a) Property Tax 190.85 110.93 

301.7 

8 

39.77 58.27 98.04 21% 53% 32% 

b) 

Profession 

Tax 

54.96 19.23 74.19 0.11 13.49 13.60 0% 70% 18% 

Total Tax 

Income 

245.81 130.16 

375.9 

7 

39.88 71.76 

111.6 

4 

16% 55% 30% 

II 

Non Tax 

Income 

a) 

Water 

Charges 

59.19 31.17 90.36 11.52 12.18 23.70 19% 39% 26% 

b) Other Fees 0.00 3.12 3.12 0.00 3.12 3.12 - 100% 100% 

Total Non 

Tax Income 

59.19 34.29 93.48 11.52 15.30 26.82 19% 45% 29% 

III 

Total Tax & 

Non Tax 

Income 

305.00 164.45 

469.4 

5 

51.40 87.06 

138.4 

6 

17% 53% 29% 



Annexure IX - o: Demand Collection Balance Statement -2004-05 


Arrears 

Demand 

Current Total 

Collection 


Collection % 


C 2004-05 

I Tax Income 

a) 

Property 

Tax 

152.60 108.27 260.87 32.54 53.99 86.53 21% 50% 33% 

b) 

Profession 

Tax 

48.52 19.07 67.59 0.19 14.55 14.74 0% 76% 22% 

Total Tax 

Income 

201.12 127.34 328.46 32.73 68.54 101.27 16% 54% 31% 

II 

Non Tax 

Income 

a) 

Water 

Charges 

37.40 31.92 69.32 5.48 9.60 15.08 15% 30% 22% 

b) Other Fees 0.47 3.02 3.49 0.00 3.49 3.49 0% 116% 100% 

Total Non 

Tax Income 

Total Tax & 

37.87 34.94 72.81 5.48 13.09 18.57 14% 37% 26% 

III Non Tax 

Income 

238.99 162.28 401.27 38.21 81.63 119.84 16% 50% 30% 

Annexure IX - p: Demand Collection Balance Statement -2003-04 


Arrears 

Demand 

Current Total 

Collection 


Collection % 


D 2003-04 

I 

Tax 

Income 

a) 

Property 

Tax 

138.92 106.62 245.54 23.65 69.78 93.43 17% 65% 38% 

b) 

Profession 

Tax 

43.57 19.91 63.48 14.90 13.47 28.37 34% 68% 45% 

Total Tax 

Income 

182.49 126.53 309.02 38.55 83.25 121.80 21% 66% 39% 

II 

Non Tax 

Income 

a) 

Water 

Charges 

28.91 31.91 60.82 5.84 17.61 23.45 20% 55% 39% 

b) Other Fees 

Total Non 

20.19 47.76 67.95 1.78 44.79 46.57 9% 94% 69% 

Tax 

Income 

Total Tax 

49.10 79.67 128.77 7.62 62.40 70.02 16% 78% 54% 

III & Non Tax 

Income 

231.59 206.20 437.79 46.17 145.65 191.82 20% 71% 44% 

. - 198 - 



Annexure IX - q: Demand Collection Balance Statement -2002-03 


Arrears 

Demand 

Current Total 

Collection 


Collection % 


E 2002-03 

I Tax Income 

a) 

Property 

Tax 

122.85 104.47 227.32 18.85 67.08 85.93 15% 64% 38% 

b) 

Profession 

Tax 

41.20 15.84 57.04 2.16 11.85 14.01 5% 75% 25% 

Total Tax 

Income 

164.05 120.31 284.36 21.01 78.93 99.94 13% 66% 35% 

II 

Non Tax 

Income 

a) 

Water 

Charges 

23.99 23.78 47.77 4.58 14.27 18.85 19% 60% 39% 

b) Other Fees 22.24 16.88 39.12 6.69 3.29 9.98 30% 19% 26% 

Total Non 

Tax Income 

Total Tax & 

46.23 40.66 86.89 11.27 17.56 28.83 24% 43% 33% 

III Non Tax 

Income 

210.28 160.97 371.25 32.28 96.49 128.77 15% 60% 35% 

Annexure IX - r: Demand Collection Balance Statement -2001-02 


Demand 


Collection 


Collection % 


E 2001-02 

I Tax Income 

a) Property Tax 108.84 103.69 

212.5 

3 

20.36 69.41 89.77 19% 67% 42% 

b) 

Profession 

Tax 

36.87 14.65 51.52 10.91 10.54 21.45 30% 72% 42% 

Total Tax 

Income 

36.87 14.65 

264.0 

5 

10.91 10.54 

111.2 

2 

30% 72% 42% 

II 

Non Tax 

Income 

a) 

Water 

Charges 

18.06 22.18 40.24 3.90 14.67 18.57 22% 66% 46% 

b) Other Fees 8.11 25.79 33.90 0.50 18.56 19.06 6% 72% 56% 

Total Non 

Tax Income 

26.17 47.97 74.14 4.40 33.23 37.63 17% 69% 51% 

III 

Total Tax & 

Non Tax 

Income 

63.04 62.62 

338.1 

9 

15.31 43.77 

148.8 

5 

24% 70% 44% 

. - 199 - 



Annexure IX - s: Key Financial Indicators 

Indicators Value Unit 

A Resource Mobilization 

1 Per Capita Income 489 Rs. p.a 

2 Sources of Funds 

a) Share of Own Sources in Total Revenue Income (RI) 75.43 % 

b) Share of Property Tax in Total Revenue Income 23.18 % 

c) Share of Revenue Grants & Subsidies in Total RI 24.57 % 

3 Growth in Revenue Income 20.85 % p.a. 

4 Growth in Own Sources of Revenue Income 76.21 % 

5 Per Capita Own Income 369 Rs. p.a 

B Fund Application 

1 Per Capita Expenditure 542 Rs. p.a 

2 Uses of Funds 

a) Share of Establishment Expenditure in Total RE 41.71 % 

b) Share of O&M Expenditure in Total Revenue Expenditure 17.05 % 

c) Share of Establishment Expenditure to Total RI 44.06 % 

3 Growth in Establishment Expenditure 2.62 % 

4 Growth in O&M Expenditure 15.57 % 

5 Growth in Total Revenue Expenditure 5.23 % p.a. 

C Liability Management 

1 Per Capita Liability 

a) Outstanding debt per Capita 646 Rs. 

b) Outstanding Non-Debt Liability per Capita - Rs. 

c) Total Outstanding Liability Per Capita 646 Rs. 

2 As a Proportion of Property Tax Current Demand 

a) Outstanding Debt as % of P.T Demand 569 % 

b) Outstanding Non-Debt Liability as % of P.T Demand - 

c) Total Outstanding Liability as % of P.T Demand 569 % 

3 As a Proportion of Property Tax Own Revenue Income 

a) Outstanding Debt as % of Own Revenue Sources 175 % 

b) O/s Non-Debt Liability as % of Own Revenue Sources - 

c) Total Outstanding Liability as % Own Revenue Sources 175 % 

4 Non-Debt Liability as % of Total Liability - 

5 Debt Servicing Ratio (D/S Revenue Income) 106 % 

D Performance Indicators 

1 Operating Ratio 91 % 

2 Growth in Per Capita Own Income 17.00 % 

3 Growth in Per Capita Grant 1.41 % 

4 Growth in Per Capita Total Revenue Income 11.38 % 

5 Growth in Per Capita Establishment Expenditure 0.50 % 

6 Growth in Per Capita O&M Expenditure 12.22 % 

7 Growth in Per Capita Revenue Expenditure 2.85 % 

. - 200 - 



E Efficiency Indicators 

1 Tax Collection Performance (Current) 

a) Property Tax 65 % 

b) Water Charges 70 % 

c) Profession Tax 40 % 

d) Non Tax Income 70 % 

2 No of P.T Assessment per Tax Collection Staff 1423 Nos. 

3 Property Tax Demand per Assessment 735 Rs. p.a. 

4 No. of Municipal Staff per 1000 Population 2.83 Nos. 

5 Annual Revenue (Own Source) per Municipal Staff 1.44 Rs.lakh p.a. 

6 Population per Residential P.T Assessment 9.09 persons 

S.No. 

Loan Particulars 

Annexure IX.t: Loan statement as on 31.3.2008 

Original 

Loan 

Amt 

Purpose 

1 Government Loan 241.05 Ways & Means, 

Roads & Others 

2 Government Loan 7.20 Basic Amenities 

3 TNUDF Loan 32.90 

Road 

Improvement & 

Drainage 

. - 201 - 

Date 

of 

Credit 

31-03- 

1996 

24-11- 

1996 

07-04- 

1997 

Loan 

O/s as 

on 31- 

3-2008 

(Rs. in lacs) 

Int O/s 

as 

on 31- 

3-2008 


Penal 

Interest 

21.88 159.63 Write-off 

7.20 - Write-off 

25.66 - - 

4 TNUDF Loan 65.00 Special Road 31-01- 

Works Scheme 

2001 

9.03 6.15 - 

5 

MUDF Loan - 

Phase II 

2.32 Special Road 11-04- 

Works Scheme 

2001 

2.32 - - 

6 

Director of Town & 

Country Planning 

10.61 IUDP Loan - 10.61 21.26 1.81 

7 TFIDCO Loan 151.83 Water Supply 

Improvement 

Scheme 

24-03- 

2003 

35.04 5.77 - 

8 TUFIDCO IDSMT 286.50 

Shopping 

Complex 

& Improvement 

of Roads 

21-07- 

2005 

11.10 2.84 - 

Total 797.41 122.84 195.65 1.81


Annexure XII-a: Institutes in Tamil Nadu Providing Training Programs 

The list of local training institutes (Other than the in ñhouse institutes) is as follows; 

S.N Name of 

Institute 

1 Dr. Ambedkar 

Institute of 

Productivity 

(Training 

Institute of 

National 

Productivity 

Council) 

2 Environmental 

Training 

Institute 

3 Institution of 

Road Transport 

4 Institution of 

Labor Studies 

5 Institute of 

Water Studies 

6 Institute of 

Public Health 

Contact Details Courses offered 

6, SIDCO Industrial Estate, 

Ambattur, Chennai ñ 600 098 

Ph: 044-2625 3144 

Fax:044-2625 3122 

Email: npc-chennai@eth.net 

76, Anna Salai, Guindy Chennai ñ 

600 032 

Ph : 044-2235 3134/3159 

Email: 

tnpceti@gias.md01.vsnl.net.in 

100 feet road, Taramani Chennai ñ 

600 113 

Ph:044-22541730/1761 

Fax:044-2254 1761 

Email : irt.taramani@vsnl.net 

Web: www.tn.nic.in/transport 

3, Kamarajar Salai, 

Chennai ñ 600 005 

Ph: 044 -2844 0102/5778 

Fax: 044-28440966 

Taramani, Chennai ñ 600 113 

Ph: 044-22541580 

Fax:044-2254 2360 

Poonamallee, 

Chennai ñ 600 056 

Ph: 044 2627 2062 

Fax: 044-24335075 

. - 202 - 

Human Resource related (e.g Problem Solving 

Techniques, Leadership & Team Building, Human 

Resource Management, etc) 

Engineering Courses (e.g. Total Productive 

maintenance, Municipal Solid Waste Management 

etc) 

Environmental related courses (e.g. Environmental 

impact assessment, Air Pollution Management, etc) 

Other courses e.g. Managing Information Resources, 

ISO courses, etc. 

Hazardous waste characterization and disposal 

Natural Disaster Management 

Environmental Management, Hazard Prevention 

methods 

Avoidance of Pollution and maintenance of good 

environment 

Traffic Congestion Control 

Traffic Control and Best Practices 

Labor Laws 

Various national and state acts 

Personnel and Industrial Acts 

Personnel and Industrial Management 

Water Supply maintenance and management 

Computerized design of water supply 

Water and Waste Water treatment 

Public Health Reforms 

Preventive measures to maintain Public Health 

Reproductive and Child Health 

Induction Training to medical Practitioners 

Municipal Health Administration 

Public Health Act 

Malaria Control, Mosquito control 

Prevention of Epidemics and Endemics 



Annexure XIII-a: Details of Depreciation Statement for Assets as on 31.03.2007 ñ 

Revenue 

. - 203 - 

(Rs. in Lacs) 

S.No 

Item Gross Block Depreciation Net Block 

1 Land 3163.04 - 3163.04 

2 Buildings 275.08 24.66 250.42 

3 Subway & Causeways 0.00 - 0.00 

4 Bridges & Flyovers 26.55 1.50 25.05 

5 Drains & Culverts 154.00 12.55 141.45 

6 Heavy Vehicles 3.61 1.84 1.77 

7 Light Vehicles 20.46 - 20.46 

8 Other Vehicles 2.52 - 2.52 

9 

Furniture, Fixtures & Office 

Equipments 

5.36 0.99 4.37 

10 Electrical Installation Lamps 41.86 1.45 40.41 

11 Electrical Installation Others 0.00 - 0.00 

12 Plant & machinery 2.91 0.07 2.84 

13 CC Roads & Payments 297.43 57.37 240.06 

14 BT Roads 260.97 - 260.97 

15 Other Roads 0.01 - 0.01 

16 Project in Progress 0.00 - 0.00 

17 Project in Progress - Grants 11.76 - 11.76 

18 Ground water & Bore well 39.57 - 39.57 

19 Drainage & Sewerage pipes 1.69 - 1.69 

20 Hand Pumps 0.50 - 0.50 

21 Water supply Head water works 0.37 - 0.37 

Total 4307.69 100.43 4207.26 

Annexure XIII-b: Details of Depreciation Statement for Assets as on 31.03.2007 ñ 

Water supply 

(Rs. in Lacs) 

S.No. Item Gross Block Depreciation Net Block 

1 Land 20.95 - 20.95 

2 Buildings 8.42 17.18 -8.76 

3 Heavy Vehicles 0.08 0.08 0.00 

4 Light Vehicles 3.44 - 3.44 

5 Electrical Installation 3.87 - 3.87 

6 Plant & Machinery 81.30 - 81.30 

7 Public Fountains 0.00 - 0.00 

8 Water Supply Head works, OHT etc. 43.90 - 43.90 

9 Deep Bore Wells / Ground Water Well 195.71 9.25 186.46 

10 Hand Pumps - India Mark II 0.00 - 0.00 

11 Reservoir 0.00 - 0.00 


13 Projects in Progress - Govt. Grants 0.00 - 0.00 

Total 359.97 26.51 333.46 



Annexure XIII-c: Details of Depreciation Statement for Assets as on 31.03.2007 ñ 

Education fund 

. - 204 - 

(Rs. in Lacs) 

S.No Item Gross Block Depreciation Net Block 

1 Land 844.37 - 844.37 

2 Buildings 48.94 17.74 31.20 

3 Furnitures, Fixtures & Office Equipments 0.01 - 0.01 


5 Project in Progress - Govt.grant 11.23 - 11.23 

Total 909.45 17.74 891.71

Gudiyattam Gudiyattam Town - Municipal

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