Conversion of CCP into BUSINESS PLAN FOR VILLUPURAM

Department of Planning, School of Architecture and Planning, Anna University

CCP To Business Plan / TNUIFSL / September 2006 68

Conversion of CCP into

BUSINESS PLAN FOR VILLUPURAM

Draft final Report

SUBMITTED TO:

TNUIFSL

BY

Department of Planning School of Architecture and Planning

Anna University Chennai 600 025



Chapter TITLE Page No.

1. INTRODUCTION

1.1. Context Of Conversion Of CCP Into Business Plan 1

1.2. Objectives 2

1.3. Preparation Of Business Plan 2

1.4. Methodology 2

2.0 TOWN PROFILE

2.1. Location 8

2.2. Physical Features 8

2.3. Climate And Rainfall 9

2.4. The Town in History 9

2.5. Local Planning Area 9

2.6. Demographic Profile 10

2.7. Economic Base of Villupuram 13

2.8. Economic Growth 13

2.9. Occupational Pattern 13

2.10. Issues –Economic Development 14

2.11. Strategic Plan-Economic Development 15

2.12. Land use Dynamics 15

2.13. Developmental Trends of Villupuram Town 23

2.14. Physical Constraints 23

2.15. Current Trends of Development 23

2.16. Thrust for Developments 24

2.17. Strategy Adopted for Population Projection 24

3.0 BASIC SERVICES AND SOCIAL FACILITIES

3.1. Water Supply 29

3.2. Sewerage And Drainage 38

3.3. Solid Waste Management 47

3.4. Roads & Streets 50

3.5. Street Lighting 53

3.6. Educational Institutions 55

3.7. Medicare 56

4.0. FUTURE VISION OF VILLUPURAM AS IDENTIFIED BY CCP

4.1. Future Vision 59

4.2 Mission Statement 62

5.0 ASSET MANAGEMENT PLAN

5.1. Inventory Of Assets 63

5.2. Street Lights 64

5.3. Roads & Streets 64

5.4. Water Supply system 64

5.5. Others 65



6.0 BUSINESS PLAN – PROJECT PROFILE

6.1 Construction Of Commercial Complex @ Old Bus Stand 68

6.2 Expansion of Vegetable market 73

6.3 Underground Sewerage System 78

6.4 Solid Waste Management 86

6.5 Office cum Shopping Complex at the first floor of Kalayanamandapam

91

6.6 Energy Saving Measures – Street Lights 96

6.7 Improvement of Shops at Kamarajar Salai 102

6.8 Status of Business Plan Projects 107

7.0 VILLUPURAM MUNICIPAL FINANCE

7.1 Revenue receipts 110

7.2 Revenue Expenditure 113

7.3 Share of Income & Expenditure – Villupuram Municipality 114

7.4 Trend of Income & Expenditure – Villupuram Municipality 116

7.5 Demand Collection Balance Scenario 117

7.6 Assessment of Performance of Municipal Finance 122

7.7 Financial Operational Plan (FOP) 122

Annexure – I - Ward wise Population Density: Villupuram Municipality - 2001

Annexure – II - Ward wise House Service Coverage: Villupuram Municipality

Annexure – III - Streetwise Road Details: Villupuram Municipality - 2006

Annexure – IV - Villupuram Municipality - Buildings – 2006

Annexure –V – Villupuram Municipality - Lands – 2006

Annexure –VI – Villupuram Municipality - CULVERTS / BRIDGES - 2006

Annexure –VII – Furniture, Fixture and Office Equipments – 2006

Annexure –VI - Property Tax Assements Ward wise: Villupuram Municipality – 2006



List of Figures

Sl.

No.

Fig No.

Title Facing Page No.

1. 2.1 Location Map – Villupuram

9

2. 2.2 Villupuram Town Map 9

3 2.3 Villupuram – Ward Boundaries 9

4. 2.4 Villupuram – Population Density: 2001 census 12

5. 2.5 Trend of Development 24

6. 3.1 Water Supply System - Villupuram 32

7. 3.2 Water Supply System - Villupuram 32

8. 3.3 Drainage System - Villupuram 42

9. 3.4 Road Network - Villupuram 51



List of Tables

Sl.

No.

Table No.

Title Page No.

1. 2.1 Growth of Population – Villupuram Town 1901-2001 10

2. 2.2 Decennial Sex Ratio – Villupuram town: 1901-2001 12

3 2.3 Literacy - Villupuram Town 1991-2001 12

4. 2.4 Participation Rate and Occupational Structure: Villupuram Town 1971 – 2001 13

5. 2.5 Distribution of Industries by Type and % of Employment - Villupuram 14

6. 2.6 Existing Land Use Villupuram 1995 18

7. 2.7 Proposed land Use break Up -2011 19

8. 5.1 Roads – Types and Length 64

9. 5.2 Water Supply Appurtenances and their Numbers 64

10. 5.3 Building Of Schools, Hospitals and Parks 65

11. 6.1 Distribution of Development Components 69

12. 6.2 Repayment Schedule – Cash Inflow 70

13. 6.3 Cash Outflow 72

14. 6.4 Cash flow statement 72






20. 6.10 Development Components in phasing 81
















34. 6.24 DEBT / SAVINGS STATEMENT 99

35. 6.25 Benefits of Privatization 101

36. 6.26 Cash Outflow (implemented by the local body) 101




40. 6.30. Cash flow statement 106

41. 6.31. Loan Details of Business Plan Projects 107

42. 6.32. Cash Flow Statement for the Business Plan Projects 108

43. 7.1 Revenue Receipts: 2000-01 to 2005-06, Villupuram 111

44. 7.2 Revenue Receipts as percentage of Total Revenue Receipts 111

45. 7.3 Break – up of Revenue Expenditure: 1999-00 to 2003-04 113

46. 7.4 Revenue Expenditure as percentage of Total Revenue Expenses 114

47. 7.5 Loan Outstanding – Villupuram Town 114

48. 7.6 Income and Expenditure - Major heads Growth Trend 2000-01 to 2005-06 116

49. 7.7 DCB for Property Tax of Villupuram 2000-01 to 2004-05 118

50. 7.8 DCB for Professional Tax of Villupuram 2000-01 to 2004-05 120

51. 7.9 DCB of Water Charges of Villupuram 2000-01 to 2004-05 121

52. 7.10 Performance of Villupuram Municipal Finance, 2000-01 to 2004-05 122

53. 7.11 Assumptions for the Financial Projections - Property Tax 124

54. 7.12 Assumptions for the Financial Projections - Professional Tax 124

55. 7.13 Assumptions for the Financial Projections - Water Charges 125

56. 7.14 Assumptions for the Financial Projections - Other Revenue Receipts 126

57. 7.15 Assumptions for the Financial Projections – Other Revenue Expenses 127

58. 7.16 Financial Operational Plan (FOP) – Short Term Period (2006-07 to 2010-11) 129

59. 7.17 Financial Operational Plan (FOP) – Long Term Period (2006-07 to 2025-26) 130

60. 7.18 Financial Operational Plan (FOP) – Short Term Period (2006-07 to 2010-11) - (Excluding Business Plan Projects)

132

61. 7.19 Financial Operational Plan (FOP) – Long Term Period (2006-07 to 2025-26) - (Excluding Business Plan Projects)

133



PREFACE

Preparation of Business Plan was the second important step taken by

the Tamilnadu Urban Development Fund (TNUDF) under Tamilnadu Urban Development Progarmme (TNUDP – III) being sponsored by World Bank. In the earlier attempt under capacity building of urban local bodies TNUDF had sponsored to prepare CCP for number of towns. The C.C.P. has identified series of projects focusing on economic development, environmental protection, infrastructure improvement and preservation of historical monuments and heritage elements, besides formulating strategies and tasks for mobilization of resources and augmentation of municipal finance. Though the local body could implement various projects proposed in the C.C.P, the local bodies needed the guidance in implementing some of the innovative

projects especially private partnership. Therefore, it is considered pertinent to formulate a strategic plan for effective conversion of C.C.P into a Business Plan (BP).

The BP is a non-conventional and practical plan with economic viability

and sustainability. Methodically and systematically, it generates funding through “Business like” means and with the application of innovative techniques and management skills including Private Partnership and improvement of services effectively. Good Business Plans are practical in the sense that it sets concrete goals, responsibilities and deadlines. While the project is on implementation, the BP provides a platform for regular review and course of corrections. We are thankful to the Managing Director, Tamilnadu Urban Development Fund (TNUDF) for awarding this job to us. We believe this project is a practical planning exercise to us.

We are extremely thankful to the Chairperson of the Villupuram Town Council, They promptly called the consultative meetings of the Council, stakeholders, and in providing all information and discussing the issues, prospects of town’s improvement and growth. We are sure that implementation of projects of Business Plan would bring in vibration in the towns activities. Dr.V.M.Marudhachalam Project in-charge Villupuram

Dr.S.P.Sekar Project Coordinator Business Plan

Dr. V.M. Marudhachalam HOD, Department of Planning SAP, Anna University



1

INTRODUCTION

1.1 CONTEXT OF CONVERSION OF CCP INTO BUSINESS PLAN

City Corporate Plan (CCP) was prepared for Villupuram in 2004 under the Tamil Nadu

Urban Development Programme II (TNUDP-II). The unique feature of the C.C.P is that it

is a plan prepared with united efforts and involvement of stake holders- elected

representatives, public, private agencies, Non-Governmental Organizations (NGO’s) and

Community Based Organizations (CBO’s). Therefore, C.C.P. focuses on felt needs and

priorities of the city, in terms of quality of environment and municipal services. The

C.C.P has identified series of projects focusing on economic development, environmental

protection, infrastructure improvement and preservation of historical monuments and

heritage elements, besides formulating strategies and tasks for mobilization of resources

and augmentation of municipal finance. However, the local body could not implement

various projects proposed in the C.C.P due to financial constraints, lack of implementing

mechanisms, institutional capacity and lack of private investments and resources.

Therefore, it is considered pertinent to formulate a strategic plan for effective

conversion of C.C.P into a Business Plan (BP).

The BP is a non-conventional and practical plan with economic viability and

sustainability. Since the stack holders involved in identifying the developmental needs it

creates an ownership and acceptance in terms of the BP identified projects and means

of finance. Methodically and systematically, it generates funding through “Business like”

means and with the application of innovative techniques and management skills

including Private Partnership and improvement of services effectively. Good Business

Plans are practical in the sense that it sets concrete goals, responsibilities and deadlines.

BP assigns tasks to each involved in the project life cycle or departments and links to

milestones. BP also guides to breakdown one strategy to many implementable parts.

While the project is on implementation, the BP provides a platform for regular review

and course of corrections



1.2 OBJECTIVES In the above context, the following are the primary objectives of the Business Plan (BP):

1.2.1. To crystallize and prioritize bankable projects from out of the projects

identified in the CCP and newly thought Programme,

1.2.2. To confirm the so identified projects through consultative process; 1.2.3. To workout and test performance indicators to assess the services

and financial efficiency of the local body;

1.2.4. To formulate Financial Operation Plan (FOP) and design a mechanism of project implementation including identifying potential investors.

1.3 PREPARATION OF BUSINESS PLAN Business Plan is (a) to augment the financial resources and minimization of expenditure of the local body and (b) to develop Asset Management Plan (AMP) for improving the quality of basic services. These are the two prime components of the Business Plan. The approach towards BP is essentially the state of art of consultative and stakeholders involvement in preparing and implementation of the plan respectively. The method of realizing the objectives of the plan will be essentially collective and coordinated efforts of planners, local body administrators and participation of stakeholders. It is also to turn the local bodies efforts for the provision of services and facilities from conventional provider role to innovative private investments as under business like environment. This, in turn improves the municipal finance besides improve the service delivery. 1.4 METHODLOGY 1.4.1 FINANCIAL STATUS REPORT:

First step in the process of optimization of the financial system of the local body is to prepare a status report on the financial position of the local body, on one side and on improving the quality of basic services on the other. The status report dwells on sources of income and the pattern of expenditure. The main sources of finance of local bodies could be categorized as internal and external. Internal reserve, include ‘local taxes’, ‘user charges’, ‘fees’ and rent or lease amount collected from properties owned by the local body.

Following are some of the taxes collected by local bodies.

(i) Property tax

(ii) Registration fee



(iii) Fair tax

(iv) yearly tax

(v) Market tax

(vi) Profession tax

(vii) Advertisement tax

(viii) Entertainment tax

The user charges are directly connected with the services rendered by the local body.

This would include lighting tax, water tax and library cess. Fee and duties are stamp

duty and land and property registration fee. Part of this amount is made available to the

local body from out of the enhanced value of properties. Proceeds from tenants and

lessees of municipal properties constitute another source of income. Loans and grants

are important components of external source of revenue. Grant–in–aid may be of three

types.

a) An ordinary grant meant to defray administration costs;

b) Grant in lieu of octroi;

c) Special grant-in-aid for assistance in development or maintenance.

A lion’s share of the income is spent on salary to staff and pension to retired employees.

Local bodies have hardly any resource for capital investment or for rehabilitation of

existing assets. Maintenance of decaying services becomes responsibilities of municipal

councils, whereas, the entire capital input into cities fall to the share of development

authorities.

1.4.2 FINANCIAL ASSESSMENT OF THE LOCAL BODY

The purpose of this BP is to identify issues and problems in the process of augmentation

of the municipal resources.

Basis of levy of taxes: To examine the principles, in which a particular type of tax is

levied. For example, the property tax is levied based on certain principles such as

location, land and building use, housing typology, and owner/tenant occupation. This

concept will be examined with reference to all taxes and additional parameters, if any,

for any of the tax base will be proposed



(a) Rationality of revision of taxes:

Tax structure/ rate has to be periodically revised based on certain logical

reasoning. To quote an example, property tax structure has to

commensurate with the increase in rental and property value.

(b) Payment of grants and its predictability:

Grant–in-aids are mostly paid based on certain formulae as proposed by

the State Finance Commission and other concerned agencies. Therefore,

it may be possible to predict future grants and plan accordingly.

(c) Identification of issues in revenue realization:

This is to consider whether

- the methods of tax assessment is simple and the collection mode

is hassle-free;

- Transfer of grants / defrayed amounts are automatic and routine;

- Institutional mechanism for assessment and collection is

transparent and accountable.

(d) Cost- benefits analysis of projects/ assets

This method is adopted to evaluate economic and social inability of

projects. In this method, the ratio of net annual benefits to the net

annual cost is determined. The capital cost which is one time cost, is

converted into an annual cost by using the Capital Recovery Factor (CRF).

1.4.3 FINANCIAL PLAN

A Financial plan for the local body is formulated based on the outcome of the status

report and Financial Assessment.

• Optimization of Existing Resource Base: Existing resource base may be

optimized by activating the system, by plugging loopholes, by achieving perfection in

recovery, and periodical revision of tax-structures.

• Identification of benchmark cost: Benchmarking is a process of comparing and

measuring costs of various services within the local body against with that best in

class. The benchmark cost is taken for optimization.



• Institutional Mechanism for Financial Management: The existing institutional

mechanism for the financial management may have to be revamped by honing of

skills through training, motivation and by the system of incentives and disincentives.

Building Management Information System (BMIS) will help to rein accountability and

transparency.

• Resource Generation: Additional resource may be generated through non-

conventional and innovative methods such as:

i. Recycling of municipal land

ii. Land use conversion and intensification of development of

municipal property.

iii. Public- Private Partnership (PPP) for service Provision, BOT

(Build, Operate and Transfer), DBFO (Design, Build, Finance

and Operate)

iv. Higher tariff for excess consumption

v. Leasing of Air space

vi. Optimization of energy resources

1.4.3. IMPROVE THE QUALITY OF BASIC SERVICES

The quality of basic services provided by the local body is improved through the

assessment of the level of the basic services and formulation of Asset Management Plan

(AMP).

Assessment of Level of Basic Services (LBS): The level of basic services provided by the

local body is assessed by development of performance indicators. Performance

indicators provide the ‘Gauge’ to measure the level accomplishment of quality services.

The following may be various elements of performance indicators.

Coverage – including that in Economically weaker Section Area (EWSA).

Economic viability of the service vis- a- vis tariff/user charges, subsides,

Benefits Cost Ratio(BCR).

Affordability, with particular reference to Economically Weaker Sections /Slum

dwellers.



Participatory process: whether services system enables and encourages the

participation by stakeholders-end users, representation from Non-Governmental

Organizations (NGOs), Community Based Organization (CBOs), and private

investors in decision making.

Technical application in the planning, design, development and delivery

– recycling, reuse, .Application of modern techniques such as GIS and Remote

Sensing.

Environmental Impact of the Services: water- surface and ground water

Land, Air quality, Noise level, Vibrations, Dust, Soil erosion, Cutting and filling of

soil Cutting of trees.

o Institutional constraint

o Dearth of technical know-how

o Lack of accountability and transparency

o Excessive overhead charges. 1.4.4.1 COMPREHENSIVE ASSET MANAGEMENT PLAN The principal objective of Comprehensive Asset Management Plan is to prioritize projects

for capital investment and for investment for re-habilitation. Various services provided

by the local body are examined against a set of performance indicators. Depending upon

the level of different services offered by the municipal council, proposals will be

formulated to improve the quality of services.

1.4.5 FORMULATION OF BUSINESS PLAN

Financial Plan and Asset Management plan are dovetailed to have the Business Plan. The BP will be a sustainable one from economic, social, technical and institutional points of view and emulate improve the service delivery.



2

TOWN PROFILE

2.1 Location and Importance

Villupuram town having a population of 95,459 as per 2001 census is a selection Grade

Municipality and also headquarters of Villupuram District. It is the largest urban centre in

the district and is about 160 km south of Chennai at 11°57’ north latitude 79°3’ east

longitude. Villupuram is located on one of the major transportation corridors of the state

i.e. between Chennai and Madurai. The railway line, Chennai – Trichy, converted from

meter gauge to board gauge, and the road NH 45 and 45A pass through this town.

Villupuram is a railway junction and transportation nodal centre with meter gauge lines

to Pondicherry, Cuddalore and Katapadi as also the road N.H 45 A to Pondicherry

starting from here (Fig 2.1). Important urban centres around Villupuram in about

200 km radius are Cuddalore, Trichy, Salem, Vellore, Kancheepuram and Pondicherry. It

is gate way to the southern part of TamilNadu, and a Commercial centre dealing with

agricultural and food products largely meant for its hinterland.

2.2 Physical Features

The total geographical are of Municipality extends over 8.93 sq.km. The terrain of the

town though a flat one, with a falling gentle slope towards the east is having physical

constraints for development due to falling gentle slope towards the east is having

physical constraints for development due to a number of railway lines traversing the

town. The Municipality constitutes a single local planning of area. The Municipality has

plans to extend its present administrative boundary. The residential area is spread

almost throughout the municipal area except in the railway colony with sparse

development as it comes under central government’s possession. However, the major

commercial uses are mainly concentrated at the centre of the town, i.e. at the

intersection of Pondicherry Road and Gandhi Nagar Road. The weekly market, regulated

market and the whole sale markets are also located in this area.



2.3 Climate and Rainfall

The town experiences moderate temperature conditions except during severe summer

period. The normal maximum temperature is 39.9°C, and minimum 20.5°C. Though the

town gets rainfall from both the monsoons, north east monsoon contributes more than

the south –west monsoon.

2.4 The Town in History

Though the town has not played any important role historically, there are inscriptions of

the lord Krishna Devaraya period in the Shiva Temple located in Ward 6 of the town.

This temple formed the Citadel of a small fort during wars of eighteenth century. The

Fort was taken over by the British in 1952 from the French. Villupuram town which was

formed as Third Grade Municipality on 1.10.1919, was upgraded to Second Grade

Municipality on 1.10.1952, then to First Grade Municipality on 1.4.1973. It is now

functioning as a Selection Grade Municipality since 02.03.88.

2.5 Local Planning Area

The town LPA covers an area of 8.93 sq km. The Municipal limit of the Villupuram town

was declared as Local Planning Area by the Government under section 10 (4) of

TamilNadu Town and Country Planning Act 1971, in G.O. Ms. No 641/R.D. & L.A.

Department, dated 16th March 1974 , and this includes Villupuram (part), Poonthottam

(part), Marudur (part), Panampattu (part), Maharajapuram (part) and Keelperumbakkam

revenue village of Villupuram taluk. A local planning authority was constituted by

Government of Tamil Nadu under section 11(1) TamilNadu Town and Country Planning

Act 1971 in G.O. Ms .No 651 /R.D & L.A Department, dated 8th April 1979.



Decadal Growth Rate

0

10

20

30

40

50

60

1911 1921 1931 1941 1951 1961 1971 1981 1991

Year

Gro

wth

Rat

e (%

)

Decadal Growth Rate

2.6 Demographic Profile

2.6.1 Population Growth

The population of the town was just 11263 in

1901, which was gone up to 95459 in 2001,

showing more than eight fold increases during

the last 10 decades. The average growth rate

per decades during the above period was

24.83%. A maximum decadal growth of 51.1%

was registered during 1941-51 due to addition

of adjacent areas and a minimum growth rate

7.5% during 1991 -01 due mainly to exodus of

population to work centers including Chennai.

(Table 2.1).

Table 2.1: Growth of Population –

Villupuram town: 1901-2001

Year Population Growth Rate

Density / Km

1901 11263 -- --

1911 16157 43.5 --

1921 17423 7.8 --

1931 20127 16.3 --

1941 23829 18.5 --

1951 35684 51.1 --

1961 43496 21.9 5190

1971 60242 38.5 7189

1981 77091 28.0 9199

1991 88788 15.2 10595

2001 95459 7.5 10690

Source: Census of India 2001

Trend of Population Growth: 1901 - 2001

0

20000

40000

60000

80000

100000

120000

1901

1911

1921

1931

1941

1951

1961

1971

1981

1991

2001

Pop

ulat

ion

Population



2.6.2 Population Density

a) Town Level

Population density of the town as a whole shows a tremendous increase of almost three

times during 1961-2001. But during 1961-01, i.e. four decades, it doubled from 5190

persons per sq km area (1961) to 10690 persons per sq km area (2001) (Table 2.1 ). A

look at the table reveals that during every decade since 1961 excepting 1991-01 an

additional 2000 persons were added to every sq.km area of the town, and it was

stagnating during 1991-2001. A study of the physical spread of the town with additional

developments on a large scale in unapproved on a large scale in unapproved layouts

during the last 3 or 4 decades shows an accelerated phase to town development since

recently.

b) Ward Level

The town is divided in to 36 electoral wards varying in area from 4.8 ha (w: 28) to 82

(w: 18) and accommodating population from 1443 (w: 13) to 4665(w: 29) according to

1991 census. The density of population varies from 28 to 444 persons / sq.km, sparsely

populated ward being 25 and the crowded ward being 28. (Annexure- I). The following

figure reveals the population density ward wise in relation to the average population

density of the town.



2.6.3 Sex Ratio

The trend of sex ratio over the last seven decades (since 1941) Table (2.2) shows a

stable situation in the first three decades, and slight downward shift up to 1981. But

during 1981-91, the sex ratio plumbed down to remarkable low of 818 which could be

ascribed to a large scale male influx into the town due to accentuated development and

construction activities.

Table 2.2: Decenial Sex Ratio – Villupuram town: 1901-2001

S.No Year Population Males Females Sex ratio Tamil Nadu

1 1941 23829 12193 11636 954 1012

2 1951 35684 18256 17428 954 1007

3 1961 43496 22258 21238 954 992

4 1971 60242 31422 28820 917 978

5 1981 77091 39828 37263 935 977

6 1991 88788 43287 35425 818 974

7 2001 95455 48094 47361 984

Source: Census of India 2001 Compared to TamilNadu as whole, the sex ratio of Villupuram remained relatively lower

till 1991 and the decade 1991-01 indicates more male mobility in Villupuram town and

thus showing higher sex ratio i.e., 984 females per 1000 males.

2.6.4 Literacy

0

50

100

150

200

250

300

350

400

450

Den

sity

(P

PH

)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Wards



In the 1981 and 91 census years the literacy rate in the town was 65% of which was

nearly 40% constituted the male literacy and the rest, females. The town’s literacy

performance during 2001 is improved i.e., 77.32% literates to the total population.

Accordingly, the male female literacy is 53.74% and 46.26% of the total literates. By the

total males, 82% are literates while it is 72.10% for females as per 2001 census.

(Table 2.3)

Table 2.3 Literacy - Villupuram Town 1991-2001

Year Total Population Total literate

(%)

Male literate to Total

Literates (%)

Female Literate to Total

Literates (%)

1971 60242 59.42 36.39 23.03

1981 77091 65.09 38.15 26.94

1991 88788 64.51 39.9 24.61

2001 95459 77.32 53.74 46.26

Source: Census of India 2001 2.7 Economic Base of Villupuram

Villupuram is one of the major urban centers in Chennai – Trichy transport corridor.

Villupuram functions as a market center and it has large catchment area. From the

census data (2001), the town by its work force distribution among the various economic

activities, emerges as a dominant Trade and commerce centre in the region. Villupuram

was acting as one of the railway work shop centers earlier, but now, that the activity has

ceased and after electrification of the railway line, trade activities in the town have said

to have increased.

2.8 Economic Growth

The growth and decay of the settlement to large extent depends on its economic base

and its buoyancy. The data on growth of participation rate as per Table 2.4 in

Villupuram shows a Stagnation trend. Between 1961-71, the growth of main work force

was in the order of 2.75 percent per annum, which came down to 2.63 percent in the



year 1971-81 and it marginally improved to 2.72 percent per annum during the decade

1981-91. It further marginally improved to about 2.97 percent during 1991 – 01.

However, it may be noted that the growth of employment is almost in stagnation with

very marginal variation during the last 4 decades and this trend is in tune with the

growth rate of population in the town.

2.9 Occupational Pattern

As per the Table 2.4 the Primary sector is declining, Secondary sector plays a very low

role in town’s economic development compared to the standards and Service sector

comprising of trade and commerce, transportation and other services play a vital role in

the town’s economy.

Table 2.4: Participation Rate and Occupational Structure: Villupuram Town 1971 – 2001

% age to the Total Workers Year

% age of Workers to the Total Population Primary Secondary Tertiary

1971 27.59 12.38 7.02 80.60

1981 26.38 7.66 1.79 90.55

1991 27.20 8.10 20.14 71.76

2001 31.65 (29.76) 2.93 3.42 93.65

Source: Census of India 1971 - 2001 2001 census figures inclusive of marginal workers, Figures in the bracket indicates % without marginal workers The participation ratio in general is less than the normal of 30%to 33%(32.61%in TN

urban in 1991)and as it is as of 1991 , the proportion of marginal workers or the

disguised unemployment in the town is about four times more than that of the

TamilNadu urban sector, and the proportion of non –workers is also more in the town by

5.5% compared to that of the state’s urban .This only indicates that the dependent

population in the town is around 11%more than the normal according to 91 census.

2.9.1 Industrial sector

In Villupuram town and its vicinity, there are only three industries worth naming of

which two are outside the municipal limits and one is within Villupuram town limits. They

are Madras Vanaspati Factory in the town, South India Sugars and Southern Agriculture

Industries Ltd. Out side the town .All the three units together provide employment for



about 500 persons. In addition to the three units, small-scale industries provide

employment for about 1900 persons. Thus the industrial activity in Villupuram is not

very significant and as such requires strengthening.

Table 2.5: Distribution of Industries by Type and % of Employment - Villupuram

S. No Industries By Category % of Employment to

total industrial workers

1 Beverages 2.1

2 Printing & Publishing 2.0

3 Electrical Machinery 2.2

4 Clay & Ceramics 3.0

5 Metal Products 4.0

6 Wood Products 8.0

7 Transport & Equipment 14.3

8 Food Products 63.0

9 Miscellaneous 1.4

Total 100

2.10 Issues –Economic Development

i) Secondary sector’s role in the town’s economy is far low and continuation of this

trend may deteriorate the economy of the town.

ii) Industries in the town are connected to the rural feeder lines of the electricity

board, which is subjected to frequent load shedding, and hence it badly affects

industrial production and growth.

iii) Town’s proximity to Pondicherry State, which offers concessions and thus

entrepreneurs move to Pondicherry. An industrial estate is also located in

Pondicherry.



iv) Advantage of being close to Chennai , and being located on National Highways

and important Railway lines is not fully tapped

2.11 Strategic Plan-Economic Development

In view of the existing relative location and economic situation, the strategic plan for

Villupuram, in collaboration and consultation with State Industries Department, Town

and Country Planning Department, District Industries Centre, TamilNadu Electricity

Board and individuals along with the entrepreneurial skills ; who are the main stake

holders in the industrial development of Villupuram town, postulates the following

strategies aiming at achieving the vision of Villupuram as a “ Commercially strong

with industrial bias” urban centre over 2 decades:

i) Villupuram town is acting as the regional centre with a large rural hinter land,

with demand for commercial activities. Thus, the municipality is in the thinking

process of developing commercial space to meet the demand.

ii) There are agricultural markets for cotton and ground nuts. Villupuram

municipality is in touch with marketing committee to provide the necessary

infrastructure like parking yards.

iii) Villupuram municipality is willing to cooperate with EB ,DIC and state industries

department in promoting industrial activity in the town

iv) Directorate of Town and Country Planning in the light of newly formed districts

may review process of identification of least urbanized taluks. If done, it is most

probable that Villupuram will be identified as one of the backward taluks. Once

done, a special development plan for the taluk could be evolved after studying

the potentials in the taluk and the role of Villupuram as the district and taluk

head quarters.

2.12 Land use Dynamics

2.12.1 Existing land Use

Villupuram Planning Area extends over 8.93 sq.km. The town is divided in four segments

by north south Madras-Trichy Railway line, east – west Villupuram –Pondicherry

Highway. The Trichy Madras National Highway No.45 runs through the western part of



the own .The trend of development to large extent closely follows the alignment of this

transport corridor .The areas lying adjacent to the transportation arterials have come up

fast .The land area earmarked for development within the planning area measures about

441.40 ha or 73.84% of the total extent of the town as per Master plan revised and

approved (2004).

2.12.1.1 Growth Directions

The town is growing in all directions except in north and northwest as the railway line

acts as a physical constraint. In the past, the growth was along Pondicherry road and on

southern part of Pondy Road. But with the formation of NH45A, the physical

development turned towards the southern side of the town .A large number of approved

and unapproved layouts have come in Salamedu, Poonthottam and V.Maradur

settlements. Now, with the construction of new bus stand and Collectorate complex new

layouts and land subdivision are seen around these developments.

2.12.1.2 Existing Land Use: 1995

a) Residential Use

Residential area occupies 223.27 ha of land covering 50.58% of the total developed

area. The residential developments are concentrated in V.Maradur Poonthottam,

Kilperumbakkam and Kamala Nagar surroundings. Among these residential areas,

Poonthottam registers comparatively more intensive development.

b) Commercial Use

Commercial use is mainly concentrated in the heart of the town, and at ten junctions of

Pondicherry road and Mahatma Gandhi Road. The weekly market regulated markets and

whole sale trades are all located in this area. Villupuram town is an important

commercial centre dealing mainly with agriculture commodities and food products.

Commercial activity occupies 21.02 ha accounting for 4.76% of the developed area. The

retail business activities are evenly distributed in the new developed area. Commercial

activities are fast developing along Kanniyakulam road.

c) Industrial Use



There is only one large scale industry within the Villupuram planning area -viz. The

Madras Vanspathi Product Industry covering an area of 10 ha. And two other industries

are outside LPA. The automobile industrial units comprising mainly workshop and service

centers are located along Trichy -Madras National Highways. A concentration of rice and

oil mills is found along the Pondicherry road on the eastern side of the town. The area

under the industrial use occupies in all nearly 30 ha covering 6.67% of the developed

area.

d) Public and Semi Public Use

Government offices, civic buildings, religious, educational and medical institution which

are elements of public and semi public uses public uses occupy 14.11 ha i.e. 3.2% of

the developed area. These uses are found concentrated along Thiruvika Road and Trichy

–Madras National Highway.

e) Educational Institutions

There are 13 elementary schools, 14 high schools, 4 higher secondary schools and 5

technical intuitions in the town. The schools are concentrated in the developed area and

particularly the high schools are located on western and eastern sides of the railway

junction.

One Government Arts College is located in the town and it occupies an area of 16.37 ha.

There is also a Government Teachers School for secondary Grade Women Teachers, and

a Government Training School of Engineering for class –IV Railway Staff.

The educational institutions occupy in aggregate an area of 38.17 ha accounting for

8.65 % of the total developed area.

f) Medical Institutions

Government Hospital occupying an area of about 0.9 ha with bed strength of 96 is

located at the junction of the National Highway Madras- Trichy, and Pondicherry road.

There is also a railway hospital with bed strength of 26, located on eastern side of

railway junction, and along the Pondicherry Road. A part from these hospitals, the town

has one maternity home, two dispensaries and several private nursing homes and

private consulting clinics. Almost all the medical institutions are adjacent to the

Pondicherry road. The total area occupied by these institutions is about 1.22 ha.



Break Up of Developed Area

50%

7%9%

3%

26%

5%

Residential CommercialIndustrial EducationalPublic & Semi Public Transportation

g) Utilities and Services

The area occupied by this category of use is about 11.95 ha (2.7% of developed area)

comprising land under uses viz. water supply, drainage and electricity. Recreation and

open spaces cover around 6.03 ha, i.e.1.65% of the town’s developed area.

h) Housing

It may be seen that during 61-71, 71-81, & 81-91, the growth rates of houses were

34%, 54% & 32% respectively while the corresponding growth rates in households were

less being 31%, 29% & 17%. Existing land use picture is an in Table 2.6

Table 2.6: Existing Land Use Villupuram 1995

S. No Use Extent in Ha % to

Developed area

% to total

area

Developed Area

1 Residential 223.7 50.58 37.35

2 Commercial 21.02 4.76 3.52

3 Industrial 29.46 6.67 4.93

4 Public and Semi Public 14.11 3.2 2.36

5 Transport & Communications 115.37 26.14 19.3

6 Educations 28.17 8.65 6.38

Total Developed Area 441.4 100 73.84

1 Agricultural Lands 117.95 - 19.73

2 Vacant Lands 21.45 - 3.62

3 Land under Water 17.05 - 2.81

Total 156.45 - 26.16

Net Total 597.85 100 100

Source: DT&CP Records – Master plan for Villupuram 1995

Break Up of Undeveloped Area

75%

11%

14%

Agricultural LandsVacant LandsLand under water



2.12.2 Proposed Land Use and Population Projection –Master Plan.

The land use pattern of the town as proposed for a prospective period up to 2011 as in

Table 2.7

Table 2.7: Proposed land Use break Up -2011

S. No Use Extent in

Ha

% to the developed

area

% to total area

Developed Area

1 Residential 356.47 61.38 59.62

2 Commercial 23.02 3.96 3.85

3 Industrial 32.46 5.59 5.43

4 Public & Semi Public 14.11 2.43 2.36

5 Transport & Communication 116.57 20.07 19.46

6 Education 38.17 6.57 6.38

Total Developed Area 580.8 100 97.03

ll Un Developed Area

1 Land under water 17.05 - 2.97

Total Un Developed Area 17.05 - 2.97

Total For Non - DD Plan Area 597.85 100.100

DD Plan Area 295.15 - -

Net Total Area of the town 893 - -

Source: DT&CP Records – Master plan for Villupuram

a) Residential

The land under this use at present is 50.58% and this is equal to the suggested %.

Considering the existing density pattern and the projected population of 1.30 lakhs for

the year 2011 Villupuram Town will accommodate a residential use of 356.47 ha a

residential density of 364 persons per hectare in the developed area The lands now lying

vacant on the northern and eastern sides of the town are slowly emerging as residential

colonies, since these are the only available vacant lands and having sufficient

transportation facilities. The above areas are proposed as residential areas in the

proposed land use plan.

b) Commercial



The town functions as an important commercial centre. So it is proposed that about 23

ha of land be earmarked for this use covering 3.96% at the end of the planning period.

Space to depth of 30m on both the sides of Kanniakulam road and Pandit Jawaharlal

Nehru road are of commercial use. Accordingly, these road sides are designed as

commercial area in the perspective plan taking in to account the trends of development.

c) Industrial

There are no industries worth mentioning in the town except Madras Vanaspathy

Factory. Presently, about 29.46 ha of land is being utilized for industrial purpose. Scope

for establishing new industries within the town is almost nil. This is due to the lack of

motivation among the people and high cost of land in the available vacant area. Hence a

piece of vacant land available adjacent to the existing Vanaspathy factory has been

earmarked as industrial land so as to facilitate its expansion, if needed in future.

Further, a small piece of land near the existing rice mill has been earmarked as

industrial use, since it abuts the existing burial ground. The total area provided for

industrial use is 32.46 ha i.e. 5.5% of developed area for the planning period up to

2011.

d) Public and semi Public

Public offices are concentrated at CBD area and also scattered on the western side of

the town. Most of the public offices are functioning in the rented buildings. The total

area now available for public and semi public uses is 14.11 ha. Due to scarcity of vacant

government lands, it is suggested that these designated area be used intensively to

accommodate more government offices. Therefore, new areas are identified for this use

in the proposed land use plan.

e) Education

As regards the land requirements for educational use number of Higher Secondary

Schools, colleges and Higher Educational Institutions are only considered. Taking in to

account the present availability of educational facilities, no additional area has been

proposed for educational use.



f) Traffic and Transportation

Regarding traffic and transportation, a road of 600 m length and 20 m width from north

to south connecting Pondicherry road and Panambattu road has been proposed to

control the flow of traffic occurring on Pandit Jawaharlal Nehru – Pondicherry road in

future. A part from this, two by-pass roads for the National Highways N H 45 and N H

45 A passing through the town have been subsequently considered. The by-pass for

Madras-Trichy N H has been taken up and for Pondicherry road by feasibility study has

been completed by the N H Department.

2.12.3 Issues- Land Use

i) Sine economic activities are not attracted either within or outside the town,

the development of the town seems to be nil or minimal.

ii) Inadequate control on land subdivision leads to formation of un approved

layouts in which Villupuram Municipality is not able to provide good

environment conditions.

iii) Location of new functions like bus stand and district head quarters attracts

un planned haphazard developments in the vicinity of the sites. In the

absence of proper monitoring management of such developments created is

bound to be poor.

iv) Ribbon development along the national highways is likely to create problem

in future both for the town and the adjacent Village Panchayats.

v) Railway property (colony) occupies about 38 ha of prime land and it has

ceased to residential colony, any longer. The area largely is in disuse and the

few old building is dilapidated condition. Since the municipality has no control

over the area, undesirable social activities are on the increase in this railway

colony area.

2.12.4 Strategic Plan Proposals

The land and urban growth management options have to essentially direct the

physical form of the town in achieving an environmentally sound and sustaining urban

area. In order to realize the objectives, the strategies and tasks spelt out are:



i) Include the areas closer and adjacent to new bus stand as part of the

town as prepare a plan for better management of the land.

ii) Develop municipal lands as commercial propositions so as to improve the

revenue capacity of the municipality and at the same time,

encroachments of the municipal lands could also be prevented.

iii) Take steps to regularize the unapproved layouts and provide/ extend

basic services adequately which will improve the overall quality of life in

the town.

iv) Safe ground municipal lands and natural channels from encroachments.

v) Shift automobile workshop to other areas designated for industries

vi) Provide by-pass to the N H s

vii) Establish industrial activities in private and public sectors through local

economic development, entrepreneurial development skills.

viii) Improve water supply

ix) Uninterrupted power supply to be provided.

x) Provide good drainage/sewerage system

xi) Improve health care facilities.

xii) Solve the problem in the railway colonies. Concerted efforts are required

to seek NOC. So that the area could be used by the local Body, or lease

for 99 years or alienate the land of the L B, or the Railway Department to

provide facilities and a congenial living environment.

2.13 Developmental Trends of Villupuram Town

Villupuram town, having a population of 95,459 as per 2001 census, and an area of 8.36

sq.km, is a selection grade municipality. It is a Headquarters town of Villupuram District

and it is the largest urban centre in the district. It is located on one of the major

transportation corridors of the state between Chennai and Madurai. The broad gauge

and metre gauge railway lines and NH 45 and NH 45 A pass through this town.

Important urban centres around Villupuram is about 200 kms radius are Cuddalore,

Trichy, Salem, Vellore, Thiruvannamalai, Kanchipuram, Pondicherry. It is considered as a

transportation nodal centre as well as gateway to the southern districts of TamilNadu.

The town is slowly evolving as an service town and as nodal point by attracting people



for trade and commerce opportunities from the neighboring villages and towns. The

increase in the industries is evident from the increasing share of workers in the tertiary

sector of the town over the recent years.

2.14 Physical Constraints

Villupuram is well connected through road and rail network. The town is growing in all

directions except in north and northwest as the railway line acts as a physical constraint.

In the past, the growth was along Pondicherry road and on southern part of Pondy

Road.

2.15 Current Trends of Development

While doing CCP as well as Business Plan Consultative meetings, the common opinion

observed is that, the recent mushrooming of developments in the town have started

adding on to the infrastructure deficiencies of the town. The residential areas are held in

a threat of being converted into commercial areas. As a result of these changes, many

of the residents have moved out of the town, towards the periphery leading to the

growth in the fringe area, particularly along Poonthottam. But with the formation of

NH45A, the physical development turned towards the southern side of the town. A large

number of approved and unapproved layouts have come in Salamedu, Poonthottam and

V.Maradur settlements. Now, with the construction of new bus stand and Collectorate

complex new layouts and land subdivision are seen around these developments.

2.16 Thrust for Developments

Villupuram municipal area is compact, thickly built up and congested. The town extends

to an area of about 8.93 sq.km only. To make the town carry on its economic activities

in future, it has to be supported with various developmental activities in the town, for

which there is no land available within the municipal limits and thus the focus for

developments should in the following spheres,



� Enhance facilities to promote the town, Villupuram as a commercial centre laid

down with better facilities and services for both localities and also commuters

from different parts of the region.

� Improvement of the Trade facilities with in the town, like relocation or

improvement of the market areas.

� Improvement of the quality of the infrastructural facilities of the town to provide

better standard of life for the local inhabitants.

2.17 Strategy Adopted for Population Projection Population projections become indispensable in the event of envisaging development

projects for a town. Increase in population of the town is governed by 3 basic factors of

population components. They are Birth, Death, and Migration. All the 3 components are

influenced heavily by external factors which influences the town development. For e.g. a

town population may go high because of in-migration induced by employment

opportunities (or) town may decline in population size because of out-migration. This

may be a factor due to non availability of employment & facilities. Therefore estimating

population for Villupuram town is being done with the following assumptions. The BP

identified projects could attract more employment, and the proposed development could

attract more in-migrants to the town, So the estimated population may hold good

realization of the town. Considering the size in terms of the population and the land area

in one hand and the dynamic growth pattern of the town it is proposed to adopt 3

scenarios in terms of population projection 1. Based on Arithmetic Projection (assuming

Natural growth + some amount of investment attraction) 2. Geometric projection

(calculated with added project which may likely to induce some amount of employment

generation) 3.Exponential projection (Implementation of Large scale long term projects

adding on to the employment opportunities).

2.17.1 Scenario for Arithmetic Projection Method



Villupuram town, in last decades have increasing growth rate in terms of population. It

is attributed to the fact that the town experiences a much faster commercial growth

slowly influenced by the location of the town and its increasing industrial activities. By

the way of identifying projects & implementing them during the post CCP period, the

living standards of the residents could be improved and a natural check may limit the

change in the town. Projects such as Strom water drainage & sanitation improvement,

improvement of street lights, Roads improvement etc are completed / being

implemented which gives better look to the town as well as serve population better. On

conclusion of the Business plan consultative meeting and identifying potentials of

Villupuram additional projects are identified both short term and long term. Short term

projects are to be implemented in next 5 years time which is likely to improve the

services and trade opportunities of the town. This may results more in migrants and

limit people moving out of the town.

2.17.2 Scenario for Geometric Projection Method

POPULATION PROJECTION

WORKERS POPULATION PROJECTION

The scenario of population

projection based on arithmetic

projection considering the past

trend of the population growth rate

of 26%. In this scenario total

projected population for 1991-2026

is 1.3 lakhs. Workers population

forms part of the projected

population. It is aimed that workers

under tertiary sector are increased

& the estimated workers under

secondary, tertiary workers are in

0.66%, 44% respectively.

Arithmetic Progression method

-20000

0

20000

40000

60000

80000

1991 2001 2011 2021 2026 2031

Primary Secondary Tertiary

ARTHIMETIC INCREASE METHOD

0

20000

40000

60000

80000

100000

120000

140000

160000

1971 1981 1991 2001 2011 2021 2026 2031

Population



The Arithmetic projection method it is assumed that much of the secondary sector

projects need not be implemented in short term. If the town will to get attracted and

grow better projects under Trade & industrial sector has to be pushed through. Primarily

manufacturing & industries are under private sector and local body has to find means of

attracting the private people to invest. Therefore better terms and conditions for private

operators are to be explored to provide service facilities. Some of the innovative projects

such as Renovation of market Complexes and Construction of Shopping complexes do

form part of Business plan. Villupuram is having still potentials for more projects under

trade, lodging facilities, education center, industrial development, commercial

development. If such projects are implemented, Villupuram may gear up for a higher

level of population mostly attracting workers of secondary and tertiary sector.

2.17.3 Scenario for Exponential Projection Method

The experience of the consultative meetings of CCP & Business Plan highlights that

Villupuram to be a Commercial – Industrial – Sustainable town in the next 20 years.

BY Geometric projection

method the estimated

population up to 2026 is

about 1.9 lakhs and the

expanded employment

as indicated above may

result to workers such

as secondary, tertiary in

the proportion of 0.11%,

53% respectively.

Geometric Progression method -50000

0

50000

100000

150000

200000

1991 2001 2011 2021 2026 2031

Primary Secondary Tertiary

GEOMETRIC INCREASE METHOD

0

50000

100000

150000

200000

250000

1971 1981 1991 2001 2011 2021 2026 2031

Population



Being blessed with conventional industries, Villupuram has the potentiality to explore as

a industrial center at the regional level. Since it is on the National Highway connecting

important towns and also with the potentiality of workshops & service stations it could

grow in that sector as well. It is seen that If at all Villupuram has to grow better some

amount of focused activities are to be done to promote industrial development. It is

anticipated that proper political outlook added with administration thrust, Villupuram’s

population can grow in many folds.

2.17.4 Adopted Population for the Next 20 Years

It is seen a number of possibilities of population growth shifting from one trend to

another trend purely based on the kind of inducement anticipated. In order to work out

projects that includes service projects expressed by people, selected by Local body some

logical projection of population need to be adopted. Since Geometrical method demands

large scale long term heavy investment project it is likely that it may likely be suitable to

By Exponential growth

method the Villupuram town

may have accommodate

about 2.3 lakhs population

during 2026 with a

composition of 0..05% of

secondary, 115% of tertiary

sector respectively.

Exponential Projection method

0

100000

200000

300000

400000

500000

600000

1991 2001 2011 2021 2026 2031Primary Secondary Tertiary

EXPONENTIAL METHOD

0

50000

100000

150000

200000

250000

300000

1971 1981 1991 2001 2011 2021 2026 2031

Population



this municipality. Whereas Arithmetic projection may be simple to adopt the current

trend and CCP as well as Business plan anticipate some amount of inducement

practically population of Villupuram is likely to grow more than that of Arithmetic

projection. As the municipality is moderated in size having limited resource may not be

able to tap huge loans it may not also touch up to Exponential growth rate. Therefore

the population adopted to work out business plan for 2026 may be in a measured

phase. Thus the population increase may be by Geometric Projection method

fulfilling the vision of the town to be developed in Sustainable – Industrial and

Commercial Center.

Population Projection- Adopted

POPULATION PROJECTION METHOD

0

50000

100000

150000

200000

250000

300000

1971 1981 1991 2001 2011 2021 2031

YEA R

Arthimetic Increase M ethod Geometric Increase M ethod Exponetial M ethod



3

BASIC SERVICES AND INFRASTRUCTURAL FACILITIES

3.0 General Position

Provision and maintenance of basic services namely water supply, sewerage,

drainage, roads/streets, street lights and electricity constitute the obligatory

functions of the local body. The town enjoys fairly good level of services except in

the small –unapproved layouts and also railway colony, which comes under the

central railway ministry.

Sizeable development works in terms of provision of services either newly and /or as

improvement have been completed in all the wards by the local body and works are

3.BASIC SERVICES AND INFRASTRUCTURAL

FACILITIES

3.0 General Position

Provision and maintenance of basic services namely water supply, sewerage,

drainage, roads/streets, street lights and electricity constitute the obligatory

functions of the local body. The town enjoys fairly good level of services except in

the small –unapproved layouts and also railway colony, which comes under the

central railway ministry.

Sizeable development works in terms of provision of services either newly and /or as

improvement have been completed in all the wards by the local body and works are

continuing in many parts of the town as the consultant team could see during

August 2000.Enquiries from the public either in the ward level consultative meetings

or other at random, have not revealed any serious problem of service except for the

drainage system by residential developments.

3.1 Water Supply.



3.1.1 Present Status.

3.1.1.1 Surface Water Sources

i) The town is provided with protected water supply. Protected water supply system

was introduced in the year 1970 from a source 12 km away in South Pennaiar River

Basin. The scheme was designed for an ultimate population of 81,700 in the year

1996 with a supply of 12.25 lakhs gallons or 46.3 lakhs liters a day. The head works

are located down stream of Ellis Chattiram Anaicut in Pennaiar River near Kappur

Village. The existing head works consists of one well 10.4 km deep,3.66 m (12 feet)

in diameter with one 6m (20ft) diameter infiltration gallery, and three 11 m deep 2

m diameter bore wells . The water drawn from the collection well is being conveyed

through the pipes in to services reservoirs located along NH45 near travelers

bungalow and along Pondy road near the railway quarters.

ii) Another source was developed in 1990. This project comprises two deep bore

wells of 2 m diameter each sunk 123m deep at Anangur Village 8 k.m away from the

town. This water is pumped in to OHT of eastern zone.

3.1.1.2 Piped Water Supply System

For the purpose of distribution of water supply to the town limits inhabitants, the

town has been divided in to two zones namely Zone I&ll. Zone l covers the area west

of Madras –Trichy Railway line and ,Zone ll covers the area east of Madras –Trichy

Railway line.

At present 54 lpcd of water is supplied through 78.40 kms distribution water mains

and public fountains, mini power pumps and hand pumps. This covers 80% of the

town area excluding the portion occupied by railway quarters and some unapproved

layouts. There are 144 public stand points supplying water in areas where individual

house connections are rare.

The nearby village’s viz.Vazhuda reddy and Thiruppan Chavadi are also provided

with 1 lakh liters and 1.5 liters of water a day respectively from these sources. There

are two OHT zone in each water supply zone located at the junction of Jawaharlal

Nehru Road and Power House Street in the eastern zone and, another on the



hospital road south of Singara Thoppu in the western zone having storing capacities

of 9 lakh litres and 7 lakh litres respectively. The municipality supplies water

normally twice a day from two hours in the morning and, one and half –hours in the

evening. The piped water supply amounts to 35 lpcd. 5453 houses are given water

supply connections till March 2006 and 118 non domestic connections. Expect the

railway colony which is under the possession of Central Government and some of the

unapproved layouts, all other area are provided with water supply distributions

mains.

3.1.1.3 Under ground Sources

There are 205 hand pumps each with a bore well. Hand pump provide water supply to

about 4000 families. In addition there are a number of open wells / bore wells

maintained by individual families. All these sources of both surface and subsurface

supply roughly 50 lpcd on an average to the total population. This 50 lpcd include

ground water contribution of 15 lpcd . By and large, the citizens have no serious

complaints about water supply. Water charges are Rs .2 per 1000 liters or Rs 20 for

domestic supply and Rs 6 per 1000 liters of water subject to minimum of Rs 60 for

non domestic supply per mensum. Water supply distribution network and locations of

200 hand pumps are shown in the town map (Fig.3.1)

3.1.2 Issues – Water Supply

3.1.2.1 Town Level

a) Quantity inadequacy

Water supply as per month by the state government is to be 90 lpcd . The present

supply is 54 lpcd by piped supply and about 15 lpcd by sub surface sources. But the

random enquiries made in different parts of the town except unapproved colonies

revealed fair level of satisfaction among users. One of the main reasons for this being,

there are a number of private bore wells and hand pumps yielding water sufficient to

meet both drinking and non drinking requirements. However, these sources over time

cannot be depended upon as the ground water level is sinking and also, the seepage

from the “kuttais” and “kulams” which function as sewage ponds pollute the ground



water faster. As the population keeps growing faster than predicted in the Master Plan,

the problem of adequately meeting the water requirement will become a matter of

serious concern sooner than expected this requires a suitable and sustainable solution.

b) Quality Improvement

Surface water is treated to safe limits of domestic consumption. Sub surface water,

though is said to have caused no discomfort, particularly in the un-approved layouts

where citizens depend only on ground water in layouts near kuttais is said to taste

differently. These ground water require to be tested and treated.

c) Pressure

The pressure at the points of supply at eth tail end areas of supply system particularly in

the northern and western wards of the town is less. There are certain main reasons for

this inadequacy:

a. There are only over-head tanks supplying the entire town at present.

Both the tanks are located in the southern half of the town, and the

distance between the tanks is as much as three fourth of a kilometer and

each supplies area up to 650 meters distance in the northern parts of the

tank. The tanks were constructed as early as 1970 and development and

growth of the town since then has been almost double till 2001.

b. The supply is on alternate days for 2 hours (6.0 am to 8.00 am) and

effective supply time at the tail ends reduces to less than an hour.

c. The topography of the town is almost flat with gentle slope down

eastwards. The water supply distribution mains are not laid in gravity

gradient, and in certain wards there are humps in the lines resulting in

poor distribution and supply pressure.

d. At various points along the mains, the water is clandestinely sucked

through boosters by individuals disrupting the flow and quantity down

stream.

e. The design supply meant for 81700 populations in 1996 is now used for a

population more than a lakh (2006) and a little less than a lakh (2001)



and over far extended stretches, thus straining the system beyond its

effective capacity.

These problems could be taken care of if the quantum of supply is enhanced and the

locations of the main supply tanks are distributed. In certain pockets it may require to

correct the levels of the supply mains.

d) Storage Capacity- Inadequate

The water from the surface sources is stored in two OHTs and then supplied through the

distribution system. The total capacity of the two tanks is only 16 lakh litres, and if filled

twice a day , the total storage is 32 lakh litres and including the supply hours when the

water keeps flowing in to the tanks the total storage works out to nearby 36 lakh litres .

The third source is being developed to produce 16 lakh litres. One OHT of 8 lakh litres

capacity (to supply minimum 16 lakh litres in two spells) is part of development of 3rd

source. One more OHT 10 lakh litres capacity has to be created to meet the projected

requirement of 70 lpcd by 2005-06, that would supply in two spells a day including

pumping 24 lakh litres. A fourth source of 24 lakh litres supply a day has to be

developed by 2005-06.

3.1.2 .2 Issues at Ward / Street-Water Supply

i) The said weakness in the supply manifest themselves in different forms at

the micro levels as expressed by the Councilors and the public (please refer

Annexure on ward level /street level demands with specific reference to

water supply).

ii) In the recent past, due to large scale developments on the courses many of

the original drainage canals and nullahs, and also the ponds lakes, there is

large scale depletion of sub-surface water sources , and the ground water

level has gone deeper;10-15 m. Moreover, the ground water is polluted as

the as the left over portions of ponds and pools are used as sewage storage,

giving rise to nuisance of mosquito round the year, besides unsanitary and

unhygienic conditions in a number of parts of the town, affecting the living

environment.



iii) Though the situation cannot be fully retrieved to original stage, even now

provision of a proper drainage to drain the town’s waste water away and

restoring the ponds and lakes / nullahs by desilting / drudging and storm

water in the water bodies will certainly rise the ground water level and

improve its quality.

iv) Distribution lines are not laid in proper gradient in a number of streets

resulting in disturbance in supply particularly at the peripheral areas.

v) Water supply presently covers only 85% of the population , and many parts

in wards 1,2,3,18,17,14,9,7,5and 23 are not yet covered by organized water

supply.

The demand for water supply for a population of 95,455 lakhs (2001) at 70 plcd will

require an additional supply quantum of 12.8 lakh litres. Piped water supply will be

enhanced to reach 90 lpcd by 2011 by developing additional 20 lpcd for a population of

1.3 lakhs by 2011, i.e. 26 lakh litres additional supply during 2006-11. It may be noted

that in addition, the ground water sources through bore wells / hand pumps by the

municipality and private individuals will help augmenting the supply by 15 lpcd as

estimated as of 2000 A.D. and by a minimum of 90 lpcd by 2005-06.

3.1.3 Future Requirements

3.1.3.1 Town Level

a) Quantity

While reviewing the master plan for Villupuram, DT&CP has assigned a population size

of 1.10 lakhs for 2001 and 1.30 lakhs for 2011. But already according to the municipality

mid 2000 assessment the population was 1.21 lakhs. How ever, for calculation of water

demand, DTand CP’s projections were considered. Though a norm of 90 lpcd is

suggested by the state government by the state government, keeping in view the

present level of 35 lpcd through piped water supply and another 15 lpcd through hand

pumps and individual wells, it may be too difficult to hike the supply almost double in a

short span of 5 years. It is there fore suggested that the piped water supply is at the

most enhanced to reach 70 lpcd by 2005-06, in view of the fact that the satisfaction



level of the public as of 2000 AD is at 51 lpcd including hand pumps etc and there is no

valid reason that the bench mark satisfaction level will increase abruptly beyond 70 lpcd

of piped supply in the next 5 years.

e) Quality

The water from two existing surface sources are treated and supplied. How ever, water

from sub surface sources requires treatment in terms of chlorination and adding alum to

coagulate the suspended matter.

f) Supply

In order to reach, water to all and with adequate pressure , one more OHT, proposed is

to be constructed – at EB colony in the next one or two years , and one more by 2005

after development of 4th source to supply the required additional quantum of 24 lakh

litres a day during 2002-03 and 2005-06.

3.1.3.2 Requirements at Ward / Street Levels.

At ward and street levels, water supply requirements are in the form of laying or

extension of water supply distribution mains, particularly in unapproved layouts,

provision of public fountains, hand pumps and construction of over head tanks, as

expressed by the councilors and the public at the consultative meetings.

Construction of one OHT particularly will be relevant only when the supply is enhanced

as the third source and one more OHT of 10 lakh litres capacity at ward no.28 during

2002-03 and 2005-06. Simultaneous to development of fourth source of water supply for

24LL a day. Between 2006 and 2011, sources to supply 26 lakh litres a day have to be

developed.

3.1.4 Strategies – Water Supply

Strategies for an effective and efficient supply of water will include:



i) Planning and augmenting supply identifying suitable and sustainable sources

of water supply to the required level by 2005 &2011.

ii) Provision or extension of distribution network to supply water to all citizens.

iii) Creating storages i.e. OHT’s with suitable heads and capacity to meet the

quantum and pressure requirements.

iv) Planning innovative operation and maintenance mechanism to oversee and

coordinate water supply in all parts of the town efficiently.

3.1.5 Tasks 3.1.5.1 Town Level a) Augmentation of Water Supply

i) TWAD Board had already attempted a project to enhance water supply to the

town through a battery of 8 deep bore wells in Somanur village and another 3

deep wells in Arpichampalayam village. The waters from the wells were to be

stored in Salayampalayam village before it was pumped to Villupuram. It was

proposed to distribute the water from new 5 OHTs . The project was estimated

to cost Rs 12.23 crores with a running cost of RS 3 crores every year. As the

debt service burden would be beyond the repaying capacity of the local body,

the municipal council resolved in March 2000 to drop the proposal, after

assessing the economics of the project from the municipality resource capacity

side.

ii) Another project, at the instance of the Hon’ble Minister for Transport.

Government of Tamil Nadu , in a review meeting taken on 11.10.99, was decided

to be entrusted to TWAD Board , in order to enhance the water supply to

Villupuram town. This project consists of 3 deep bore wells to be sunk in the

Malattar river bed, 8 km away from the town at a rough cast estimate of Rs 175

lakhs. The project includes an OHT of 8 lakh litres capacity in Marudur area. The

town council ha resolved in its meeting held on 26.11.99 to take up the project

raising loan from the State Government, and getting the project as a deposit

work by TWAD Board.



On completion of the project interalia , 500 new connections could be given in

Marudur area. This will fetch the municipality Rs .50 lakhs in the form of deposit

at Rs 10000 per new connection Rs 1.25 lakhs as supervision charges , and

Rs2.4 lakhs as water charges . This project will help increase the supply from 35

lpcd to 51 lpcd from the organized supply system and with ground water supply,

the supply will be about 65 lpcd.

Already TWAD Board has stated the preliminary works of erecting test bores in

September 2000, and the project is expected to be completely by the end of

2002-03. Thus investigations may have to be continued to locate sources in and

around Pennaiar River which is the only near by perennial source of water supply

is enhanced to reach 70 lpcd by 2005 -06 with an additional quantum of 24 lakh

litres.

iii) As per CCP(2001), by the end of 2004-05 two over head tanks to a supply a

total quantity of 40 lakh litres will constructed at EB colony and in ward 28, and

of which one is proposed to be completed 2002-03, for on OHT of 8 lakh litres

capacity is already included in the 3rd water source project by TWAD Board .

Another OHT of 10 lakh capacity will have to be constructed in Ward no .28

vi) Water traffic has to be revised so that capital investment on water supply

improvement recovered from the users. The revision could have been effected

by the municipality from 2002-03 and in 2005-06.

v) The entire system will be computerized and geographical information System is

generated to include System Configurations In Terms Of Components, Location

Age Structure Characteristics, Traffic Structure, Collection Performance And

Related Operations.

vi) Expect Capital Works, Operation And Maintenance And Tariff Collection on water

supply may be privatized.

3.2 Sewerage and Drainage



3.2.1 Existing Status

3.2.1.1 Town level – Sewerage and Drainage

There is no separate system for carrying the sewage and storm water separately in the

town. The road side drains used for carrying both the sullage and rain water. Of the

18000 houses as of 2000 AD, only about 6500 houses have septic tanks, and 3500 leach

pits or low cost sanitary latrines. Though the conservancy system of removing the

human waste was eradicated; old houses do not have latrines and they use community

toilet or even open places.

Under ground drainage system does not exist in the town.

Open drains are available in almost all parts of the town and the road side drains total to

length of 74140 m against the road length of 54700 m. There are as many as 8 major

drainage systems draining various parts of the town. They are briefly explained in the

following paragraphs.

i) Kolianur channel running west –east over the entire length of the town for

about 4 km along the Jawaharlal Nehru Road is the main drain to carry part

of the town’s sullage and storm water. Infact, this is an irrigation channel

owned by PWD connecting Poonthottam tank on the west of the town and

Erumanthangal tank on the east of the town , finally joining a pond. This

channel located south of eth PJN road up to the railway line drains wards 15

(part),13, 17,30,29 &, east of the railways , runs north of PJN road draining

25th ward (part), 11 and 7(part). It joins Erumanthangal Eri beyond the town.

Kolianur channel is embanked except for about 700 m long stretch west of

Eills Chatram Road lying in Ward No.17 and it si considered not necessary to

embank it an another 700 m from EB Colony to the boundary along J.Nehru

Road, which is to be lined.

ii) Another channel namely Marudur Channel branching off from kolianur

channel east of the junction of Kanniya kulam road and the Kolianur channel

runs south for about 600 m to the municipal limit, draining wards 15

(part),14,27,28 and joins Marudur Eri across the boundary of teht town .

While the Kolianur Channel is lined with cut stone and rubble , and is open ,



the Marudur channel is linked with cut stone and rubble , and is open , the

Marudur channel is kutcha and due, to encroachment of the channel

poromboke , the flow course is narrwed to 1-1.5 m (from 10m) . More over,

the residents along the channel dump their wastes in the channel choking its

flow that renders stagnation along the channel show lack of civic sense and

non cooperative attitude. They complain of severe mosquito problem but at

the same time they insist on dumping the waste in to channel blocking the

flow.

iii) A small drain draining ward no.13 south wars flows in to Marudur Eri

iv) Another drain measuring about 2 km existed emanating from a pond of

Municipal office and cutting across railway colony and crossing the municipal

boundary north of Erikarai St to join a lake near the town limits. This drain

took care of storm water and sewage from the central area of the town

covering wards 31,32,33,35,36 and railway colony , government Arts College

and part of Kilperumbakkam ward 6(part). But now the drain area has been

sited and pattas issued for the initial 450 m length of the drain up to

Gurusamy road and the last 400 m length of the drain from the end of

Kannagi St to the town boundary. The rest of the channel is silted and the

portion of the channel under the railway lines is a critical portion as it

desilting is more difficult.

Since the tail of the drain within the town is blocked by the development, the

drain water forms a pool south of Erikarai St in the Government Art College

area before it squeezes out through a culvert across the boundary.

v) One more natural drain viz. Kakuppam drain, for about 1120 m long

originating from a pond at Kakuppam , north of Govindasamy layout in the

north eastern part of the town in Kilperumbakkam area, runs east to join

Erumanthangal lake. Now , the first 200 m length of the drain has come

under development and its flows across the town boundary is constrained by

development , but as narrowed drain it crosses the boundary and joins the



lake beyond the town limit . As the tail end of the drain is narrow, the flow is

slow and the rest of drain faces stagnation of sullage water.

vi) There was on more natural drain draining the North West part of the town,

emanating from a pond east of Agarampattai, running for about 800 m east

wards to cross the boundary and to flow east to Kakuppam village. There is

vent under the railway lines and the vent is choked and narrowed and the

portion of the drain for more than 200 m long east railway line has come

under residential layout. The municipality has constructed a well adjacent to

the railway lines on the east and is pumping the sewage to take it along the

roads in the Raja layout in east –west direction along the road in ward 4 and

up to Oovaiar St to join the Kakuppam drain. This pool of sewage has spread

west of the railway line to a large lake –storage, and it is a mosquito –

breeding centre. This drain serves wards 19,20,21,22, and 34 (part).Up to

the railway line for about 200m, the drain needs embankment and desilting.

vii) The north –west part of the town, east of Madras Trunk Road in ward 1&2, is

drained by an artificial drain starting from Singara Thoppu, to cross the

Gingee road and flowing northwards along the Katpadi railway line through a

culvert and run along Madras Trunk Road to Cross the boundary of the town

and join Pambai River 2 km away. An originally irrigation channel emanating

from the trunk road near Lalkhan Kuttai flows north –west up to the junction

of the trunk road and the railway line to cross it eastwards to join a Kuttai .

This drain area is not encroached and can be embanked. Area under ward

no. 18 can be drained in to Kolinur channel as the slope of the area is falling

south wards.

Viii) The Vavva Sippi Eri which existed in ward no 3 north of the railway line is

silted and residential development has come up here. This area was draining

in to part of Eri beyond the town boundary. Now that was also vanished. The

drain flows in to Ooral Kuttai at present beyond town limits.



The biggest stumbling block in draining the drainage system in the town in the Municipal

is helplessness as most of drains are under the possession of Revenue Department

Experience shows that alienation of the lands from Revenue Department to Municipality

is time taking process if at all it is agreed to alienate the land. The channels are under

ownership of PWD.

3.2.1.2 Ward / Street level: Sewerage and Drainage

Drains as said earlier, act as sewers also as the sullage water joins. Excluding the

unapproved layouts, and railway colony, in all other area in 36 wards only those streets

and cross streets which are still of mud or WBM surface, do not have drains. Even here

some of WBM street have been provided with drains. It is also rare if the BT roads not

having drains unless they are recently BT carpeted from WBM. For e.g., in wards 3& 7,

number of sit are of WBM/MR, and therefore are not yet provided with pucca drains.

On the other hand, most of the streets in wards no ,4, 5, 6, 10, 11, 13, 15, 16, 19, 21,

22, 26, 27, 28, 29, 30, 31, 35, & 36 have drains on both the sides of the roads . The

drains vary from 0.23 m -0.4m in width.

The total length of the drains accordingly to the municipality’s ledgers is 70410 m

against the total length of the roads of 54700 m. Thus only 15440 m of roads do not

drain on both sides as of Oct 2000.

3.2.1.3 Quantum of Sewage /Drain Water.

The quantum of sewage is not measured and there is no record in the local body. There

is no treatment plant also. But assuming 54 lpcd supply of water, and 80% to return as

waste water, the estimated sewage is in the order of 43 lakh litres a day.

3.2.2 Issues: Sewerage and Drainage

3.2.2.1 Town Level

i) There is no separate system of sewerage or drainage, and the existing

system is combined one.



ii) Estimated 4000-5000 families do not have sanitary provision of their own,

and use public toilets and others use open areas. Families using dry latrines

are not existent.

iii) The natural drainage system that existed two decades back in the town has

been badly tampered with. The natural flow of the waste rain water has

been blocked and built upon resulting in pools ands ponds of the waste /rain

water stagnating at number of places in the town breeding lot of mosquito’s.

iv) The stagnant waste water becomes septic and putrefaction takes place

emanating foul smell in the area besides presenting a filthy environment.

Environment health is greatly affected by these pools of pollutants.

v) Seepage of the polluted putrefied waste water pollutes the ground water

rendering it unusable for any domestic use.

vi) Most of the drain areas belong to Revenue Department, with the result, the

position of the Municipality becomes precarious in the sense that though

these drains lie within the limits of the municipal town, the municipality town,

the Municipality is not in apposition to do much including prevention of

encroachments, protection of drainage lands construction of drains along the

drain courses to provide an environmentally free living environment.

vii) The raw waste water is disposed of in areas outside the town, and it is a

nuisance to those village panchayats.

3.2.2.2 Ward / Street level issues: Sewage and Drainage

i) Unapproved layouts officially and legally are not with in purview of the

municipal Governance for provision of basic services. As such, till such time

the unapproved layouts are approved or a decision is taken about their

approval by the Government, Municipal administration can hardly help in this

regard. Even then, some facilities which the local body could help have been

provided.

ii) Roads mainly of mud or WBM surface are not yet provided with side drains.

iii) In some of the streets, the drains are not constructed with proper gradient to

facilitate a smooth flow preferably with “self cleaning velocity”. The resulted

in the waste water either stagnating particularly when the flow is thin, or



flowing partly in opposite directions from the same streets ending at wrong

destinations

iv) In some parts of the town , the drain levels are higher than the floor level,

resulting in sullage water running in to building especially at the time of rains

3.2.3 Future Requirements: Sewage and Drainage

3.2.3.1 Town Level

i) At town level, there is already a proposal to construct underground

sewerage system for which TWAD Board has under taken preparatory

works. Under this scheme the town will be dividing in to 5 sewage zones,

and finally the sewage from the 5 zones will be disposed of in the

Vadakuchipalayam and Poyyappakkam villages in sewage farm, and to

grow grass. For this purpose, the district collector has assessed the value of

acquisistion of 59.0.9.5 ha of land in Poyyappakkam at Rs 53 lakhs in 1995.

The municipal Council had resolved in August 1996 to mobilize this amount

from the government either as grants or loans . A request for this fund was

made by the commissioner Municipal Administration in August 1996 itself.

TWAD Board also followed up the proposal with the CMA to obtain the funds

. The district Revenue officer also insisted the need for acquiring the land

first, for the project to be taken up.

For the purpose of storming the waste waster in the five zones of the town

as identified by the TWAD Board, 5 ‘Kuttais’ one in each zone was chosen

and they are:

Zone Name Of Kuttai Area in Ha

1 Pappankulam Kuttai 0.63

2 Kanniakulam Kuttai 0.55

3 Eswaran Koil Kuttai 0.49

4 i)Vannan Kuttai

ii)Kulam

0.15

1.45

5 Thamarai Kulam Kuttai 0.25



On taking up the scheme, sewage will be collected separately and disposed of. Then

part of the existing system of ‘drains’ will suffice to conduct the storm water away in to

water courses outside the town. This under ground sewerage system project is

estimated by TWAD Board to cost Rs 28.15 crores.

Alternate Proposal

An alternate to the TWAD Boards proposals of underground drainage costing Rs 28

crores has been felt in evitable as the financial position of its municipality may not bear

such a large loan burden for years to come. More over, even if the municipality decided

to venture in to such proposal, the whole process as contemplated in the project will

take fairly along time by when, the cost will have escalated substantially rendering the

repaying capacity of the municipally almost to reach to reach a point of break, and this

would incidentally impose a stop on taking up other important capital works and proper

O&M of existing services in the town. Therefore an alternative comparably effective in

addressing the sewage/ drainage problem of the town has become un avoidable. The

alternate proposal is largely as described below. The town is topographically flat with a

gentle slope down eastwards and the drains as of now serve to carry waste water as

well as rain water. Though there is no no unified system of sewage or drainage, various

parts of the town are being drained out and as such as drainage pattern exists. The out

flowing drains joins water bodies such as Marudur Eri, Anangur Eri Koliyanur Eri

Chiterrikarai Kuttai Erumanthangal Eri and Kilperumbakkam Eri all outside the town

limits. These ‘Eris’ are either poromboke lands or under revenue department and they

are being used as waste waster ponds for decades now.

In these very locations, treatment plants either Activated Sullage Process (ASP) or

Tricking Filters (TF) of different sizes could be constructed, and the number of the

treatment plants can be restricted to four. The sullage that is generated as of 2000 A.D

is estimated at maximum of 5 mld as 80% of the total water consumption. As per the

scientific norms, the unit cost of per mld waste waster for ASP as well as TF is Rs 28.5

lakhs . For 10 mld capacity plant, the total cost of disinfection plant, capitalized O&M

cost for 20 years excluding land cost estimated as Rs 443.086 lakhs for ASP and

Rs415.905 lakhs for TF.



The land requirement for one mld is 0.22 ha for ASP as well as TF .In the case of

Villupuram Municipality, the land is already available and is in use. Even if to be paid for

100 mld plants, the land would cost not more than Rs 10 lakhs. The treated effluent can

be very well used for irrigation purpose, and if need be, that can fetch some revenue

also. During heavy rains, the storm water can be conducted as of now, through the

existing drains This proposal also includes isolating all the kulams and kuttais now being

used as sewerage storages in the town , and taking the waste waster in separate box by

passing these water bodies. This requires a separate study to prepare the project.

i) The existing drains will be first desilted, and sub trunks covered.

ii) At VannaKulam , a vent under the railway lines has to be desilted . Matter

has to be taken up with the railways, and the action has already been

initiated in October 2000.

iii) The municipality will take up the matter with the revenue Department and

PWD, in order to obtain no objection certificate from them or lease of their

lands for 99 years or alienation of land municipality so that the

municipality can use only for the purpose of discharging obligatory

functions of the municipality , besides checking encroachments and

protecting their lands.

iv) As the legal case against encroachments and violations take , as it is lot of

time in the court as per the present system , some legal set up at regional

or district level be established vested with powers to only deal with

violations / encroachments of lands in the municipalities for quick disposal

of these cases.

v) An intensive and extensive education campaign may be launched by the

municipal Administration to educate the public and make them fully aware

of their duties in keeping the environment hygienic and livable, and also to

solicit their co-operation with the municipality in the un keep and protection

of appurtenances provided with infrastructural facilities in the town.

3.2.3.2 Ward/ Street level requirements: Sewerage and Drainage



a) Ward level and road level requirements in respect of sewerage and drainage as

expressed by the respective councilors and general public , have been listed and

included in capital improvement programme during 5 years starting 2001-02

The priorities have been fixed on the basis of importance of the service at the specific

area and technical/economic feasibility.

3.2.4 Strategies-Sewerage and Drainage

Strategic Plan for 2001 envisages 100% population coverage by sewerage and drainage

systems, and the sewage generated will be in the order of 110 lakh litres from 90 lpcd

supply of water for a projected population of 1.6 lakhs by 2021. Sewage treatment

capacity will have to be enhanced by suitable additions of treatment units.

Strategies will include:

i) Diversion of the sewage flows from kuttais and Kulams to the sub-trunk

sewer/drainage lines.

ii) Strengthening of the sub –trunks of drains cum sewers in all the 8 major

drainage system as of now.

iii) Integrating the flow and treating to stipulated BOD limit.

iv) Use the effluents for the sewage farms and / or dispose of in to water

courses after treatment.

v) Strengthening the operation and maintenance by updating the know-how

and methods and techniques of handling waste water , and even privatizing

the O&M

vi) Educating the citizens about the need foe scientific methods of sanitary uses

and the need for environment hygiene.

vii) Covering the entire population by sanitary measures and facilities by 2011.

3.2.5 Tasks and Actions

i) Conduct ground level survey to fix the gradients in each identified drainage

area and fix the gradient of the collectors, sub trunk and trunk lines .



ii) Design suitable treatment plant units as per the capacity requirements at four

outlet points in the eri lands

iii) Initiate action to privatize operation and maintenance of the sewage /

drainage systems.

iv) Computerize the entire system and its operation for prompt attention for

maintenance and for solution for the problem.

v) Provide public toilets where ever necessary.

3.3 Solid Waste Management


a) Quantity

Though exact amount of solid waste being generated in the town is not assessed by the

local , it is estimated that about 400 gms of solid waste is being produced a day per

capita, and as such as for a population of 95,455 as per2001 census , the total

generation of solid waste is about 38.18 tones a day 27 tones or 70 % of the garbage is

being lifted every day. But the compost manure has no demand at all and as the result

the yards are spilling over, and no more dumping was possible. At present, the town’s

garbage is dumped in to 3 kuttais namely Easwaran Kuttai along Madras trunk road in

the north, Poonthottam kuttai abutting the old bus stand, and Ooral Kuttai near the

municipal Park. Nearly half of the Poonthottam Kuttai as reclaimed by dumping the

wastes for taxi stand.

b) Collection

Collection of garbage is managed by2 sanitary inspectors against 7 Sanitary inspectors,

9 health supervisors, 6 drivers, 129 permanent and 84 on consolidated basis under the

over all supervision of Municipal Health Officer . In order to provide better and effective

health service to the people, the town is dived in to 7 divisions assigning one division to

one sanitary inspector.

c) Disposal Method



To dump the wastes, the municipality is having two compost yards over 2.19 ha and

1.17 ha, one along Chennai – Trichy national highway and another along PJN Road

outside the town limits. These compost yards expected to treat 3000 tones of garbage,

but they are being used partly now.

3.3.2 Issues - Solid Waste Management

3.3.2.2 Town level –Issues

i) There is room for improvement of garbage collection performance.

ii) Compost yards outside the town are over spilling, and the manure is not

lifted by any body as the method of refill is not scientific.

iii) Recycling and separation of organic and in organic materials are not being

practiced.

iv) Garbage dumping in the kuttai’s in the town is not desirable as it is un

hygienic and is polluting the ground water and air besides being unsightly

v) The garbage contains more of inorganic matter rendering it difficult for

composting unless segregated.

3.3.2.3 Ward/ Street Level – Issues

i) Placement of dustbins is an issue, as though the residents demand dustbins

in the streets as individuals, they avoid keeping the dustbin in front of their

houses. Placement of permanent dust chamber also face the same problem


3.3.3.1 Town Level

i) Proper sanitary refill has to be however maintained outside the town after

recycling the wastes. Organic wastes will have to be segregated and treated

in compost plants to convert the wastes in to manure.

ii) The site needs to be planned for proper treatment of eth bio–gradable

wastes and the manure has to sell at a price to make ‘Wealth from Waste’.

The use of compost yards will be reviewed.



iii) Solid waste management can also be privatized so that a clean environment

is ensured, as also it will be easy for the Municipality to administer. Here,

other town models can be adopted.

iv) The compost yards lying over –dumped out side the town will be cleared of

the dump and sanitary refill will be done in scientific method.

v) The compost yards will be protected by a compound wall and the roads in

them will be suitably raised / improved

3.3.3.2 Street/ Ward Levels

i) Collection will have to be systematized by giving each house a polythene or a

bio –gradable bag so that it can be kept at the gates on the street for easy

collection. Contrarily, the residents can also be instructed to carry their

garbage wastes to the vehicle passing through the street at fixed timings

with signals, through alarms and the like in the collection vehicles.

ii) As a first step, dust bins as required by the residents will be supplied to place

at vantage points or constructed with the consent of the residents.

3.3.4 Strategies -Solid Waste Management

i) The municipality has sufficient sites outsides the town for disposal of garbage

but for want of practicing scientific disposal method , the depression within

the town is used for dumping . This requires reviving the Solid Waste

Management system and practice by renovation of compost sites and reuse

of them.

ii) Recycling of the waste and segregation of organic / bio gradable from in

organic will be practiced

iii) In organic matter will be used to fill in the depression, which require to

reclaimed in the town.

iv) Operation and maintenance staff will be trained to handle the garbage

scientifically and as a remunerative activity.

v) Solid waste management will be privatized in a phased manner

vi) Computerizing the solid waste management in order to have effective

monitoring nod management as the issue is of great health concern.



vii) Locale will be educated and made aware through cable media and hand bills

, meetings etc about the importance of public hygiene and the methods they

have to following solid waste management , and for their cooperative

attitude.

3.3.5 Tasks- Solid Waste Management

i) The waste in its composition and characteristics will be studied , so that a

suitable method of scientifically handling it could be evolved

ii) Recycling of waste and their economic and environmental implications will be

assessed

iii) Privatization is already attempted on an experimental basis by the

municipality. If found satisfactory, the SWM will privatized

iv) The compost yards outside the town will be revived for sanitary refilling of

waste after segregating organic wastes

v) Community participation is a sprit of public service and voluntary service will

be elicited

vi) O&M will be over hauled for a better restructuring.

vii) Computerization of SWM will be under taken for simplifying the procedure

and for better monitoring

3.3.6 Sustainability Indicators

• Proportion of garbage lifted :85% to 100

• Proportion of vehicle capacity 100% of waste generated

• Spacing of dust bins :35 m

• Road Length per conservancy staff:205m

• No. of conservancy staff per 1000 persons (1991):3

3.4 Roads and Streets


Transportation and communication uses occupy 115.37 ha which works out to 26.14%

of the total developed area which is the second predominant use in the town



There are five major roads passing through this town of which two roads are National

Highways (6.4 kms) and the remaining roads are MDR and ODR, and are under the

maintenance of Highway Department. Besides, a number of inter linking and feeder

roads connecting the above major roads constitute the towns circulation pattern under

the maintenance of the local body. The mass transportation facility exists in all major

roads within the town. In the town as of 2004 – 05, about 54.861 km lengths of roads

are in existence, of which about 10 km of the roads maintained by high ways

Department, and the remaining by the municipality.

With regard to rail net work. Villupuram is railway junction having 3 m gauge and one

board gauge lines branching off in all four directions. Villupuram railway junction

handles 26 express 28 passenger and 32 goods trains daily.

S.No. Roads by surface Length in Kms % to total

1 Roads concreted 25.344 46.22

2 Tar roads 27.433 42.7

3 Gravel Roads 4.224 7.7

4 Mud roads 1.860 3.4

Total 54.861 100.00

Source :Annual report 2004-05 Villupuram Municipality

3.4.2 Issues: Roads and Streets

3.4.2.1 Town level –Issues

i) Madras –Trichy trunk road and Jawaharlal Nehru Road become highly

congested during peak hours. More over, through out the day, particularly

along distance by passable traffic make deafening noise along these roads

resulting in difficulty in transaction of business and peoples talking, and rise

in blood pressure and tension. Apart from these, the dust the traffic raises



from thick layers of articles in the vicinity of these roads. Enquires revealed

that it becomes a handicap for elders , un healthy and children to take to

take rest or to sleep in these arterial belts in the town.

ii) A few roads are of mud and WBM surfaced. How ever, the municipality has

plans to pave all the roads either by BT or cement concrete.

iii) The new bus stand has become an asset to the ULB as old bus stand was in

sufficient to the buses, both local and regional and which was also causing

heavy congestion in the centre of the town.

3.4.2.2 Ward / Street Levels: Roads

i) At peak hours, in some of the roads, traffic volume is such that two way

movements result in delays pollution and extra fuel consumption.

ii) 17 roads constituting only 3.84 are of WBM.


3.4.3.1 Town Level

i) Two by passes to carry the by passable traffic are necessary. One from NH45

and the other NH 45A. Master plan for the town suggest a by pass road.

Alignment has been done by the National Highway department for the by

pass on NH 45. For another , the NH Department has under taken a

feasibility study , accordingly, the take off is 14 km away on pondicherry road

to join NH45 north of the town

ii) In the new bus stand, bus movement area has to be concreted. Old bus

stand has to be repaired and maintenance ensured.

iii) Parking spots to be identified for three wheelers.

3.4.3.2 Street/ Ward levels

At street levels, the following measures are suggested.

i) Speed breakers on Gingee road, KK Road

ii) Road dividers between new bus stand and siginal , PJN Road

iii) Railway over bridge across Villupuram-katpadi line south of the town



iv) One way – Kamaraj road. M G Road. TVK Road ,Kilperumbakkam main road f

v) Foot paths – along KK Road

vi) Manned Railway crossing across – railway feeder road

vii) Widening of Pondy road

3.4 Strategies – Roads and Streets

Strategic plan for 2011 for a population of 1.3 lakhs will have another 10 km of roads

and land use coverage of 116 ha as per the master plan. The aggregate road length of

more than 40 un approved layouts will be more than 10 km . Provision of by pass roads

to NH45 and NH 45A will save the town from traffic congestion and dust pollution from

by –passable traffic.

i) The municipality is proposing to cement concrete most of the roads and

bitumen surface all WBM /MR roads.

ii) Tree/ shrubs plantation on sides of major roads

iii) Provision of speed breakers and dividers on select roads as suggested by

stake holders.

iv) Provision of foot path along KK Road

v) Saving a few roads from congestion by opening them only for one way traffic

3.4.1 Tasks – Roads and Streets

i) Decongest main roads from by –passable traffic by providing by passes

ii) Decongest some roads from congestion by making them on way roads and

providing dividers

iii) Reduce danger of speeding by speed breakers

iv) Road side plantation for shade and avenue look.

3.5 Street lighting




In order to take care of providing and maintaining street lights, one electrical inspector,

3 wire men and 3 helpers are working in the municipality

As of 2004 - 05, there were 2166 Street lights

250 w- Sodium vapour lamps 350

40w- Tube lights 1719

250w- Mercury Vapour Lamps 95

High mast lamps 2

Total 1979

According to norms of one light for every 25 m of road length in 54.7 km of road/street

in the town 2188 lights would suffice. There are 242 roads with bends and curves, and

they would need extra lights. On the whole, except in un approved layouts, there are

enough number of lights.

3.5.2 Issues

i) Municipality has first provided tube lights and as the demand and need

increased the local body for sodium Vapour Lamps. Citizens now in

variably demand Sodium Vapour Lamps and mercury vapour lamps which

are costly and power intensive. How ever, the local body has decided to

replace the tube light by sodium vapour lamps over time, and mercury

vapour lamps in select area.

ii) Unapproved colonies for obvious reasons do not have adequate number

of street lights.

iii) According to norm of one street light for every 25 m of road length the

town has to have 2188 lights against 2166 available, there by a shortage

of 22 light exists (2004 - 05).

iv) Tube light pose O&M problem as they last for short time compared to

other lights replacement by Sodium Vapour lamp or Mercury Vapour

Lamp however is relatively more costly.



3.5.3 Future Requirements – Street lighting

Un approved lay outs require street lights on a priority basis and the municipality is

planning to replace the tube lights by sodium vapour lamps. As of 2004 - 05, the local

body has decided to provide additionally 75 Sodium Vapour Lamps besides attending to

repair works at the estimated cost of Rs.3.88 lakhs

3.5.4 Strategies and Task – Street Lighting

• Adequate number of street lights at least according to eth norms will be

provided

• Over time , the tube lights may be replaced by Sodium Vapour Lamps, and in

specific areas by Mercury Vapour Lamps

• Unapproved layouts will also be provided with street lights

• The municipality has installed 3 High Mast Lamps. Some more at the bus stand,

and junction of NH and at the Gandhi Statue will be provided

3.5.5 Sustainability Indicators – Street lighting

i) Spacing of Street lights 27.5m to 25m

ii) % of Tube Lights 80%-20%

iii) No of lights/ sq.km 222-245

iv) No of lights /1000 ppn 18-25

3.6 Educational Institutions


Educational institutional structures belong to the local body and are maintained by the

local body. Payment of salary for the teachers and staff is made by the state

government since April 1990. One Government College of Arts viz Perarignar Anna Arts

College is located in the town. There are 8 primary schools, 2 middle schools, 2 high

schools and 1 higher secondary schools.



3.6.2 Future Requirements-Schools

By norms, the number of primary schools which serve giving initial education to the

children should be at least one for every 1000 population , accordingly minimum four

more primary schools may have to constructed in the town . Like wise 2 more middle

schools may have to be setup. But demand for less additional schools was made at the

consultative meetings, for, there are number of private schools which meet

requirements.

3.6.3 Issues – Education

The municipality has to only build/ repair/ renovate and maintain the existing schools.

But the municipality gets no funds for this separately.

3.6.4 Strategies and Tasks

i) Literacy level will have to be improved in the town, and it was only

64.5% in 1991 against the states 77.9%.

ii) Citizens will be made aware of the poor literacy level of the town in

habitants and encourage them to send their children in variably to

schools.

iii) Due to finance crunch, there is constraint for additions to the schools or

constructions of new schools. But this can be done from government’s

grants or from people’s contributions.

3.6.5 Sustainability Indictors - Education

3.7 Medicare


a) Literacy rate (1991) 64.5%

b) No of primary Schools/ 10000 population 0.73-1

c) No Middle schools /10000 0.18



The municipality maintains three medical units: One Maternity hospital, one Allopathic

Hospital and one siddha dispensary. One lady Medical officer is in charge of the

Maternity Hospital, one Allopathic Doctor is in charge of the Allopathic dispensary and

likewise one Siddha dispensary. They are assisted by 2 compounders, 4 (maternity)

nurses, 6(maternity) ayas, one office assistant and 2 watch men. All these medical units

are located within the municipal buildings. There are a number of private clinics of

various sizes in the town

In addition, at various points of time. Health camps are organized and they are either

government sponsored or private NGOs/ Missionary sponsored. In Villupuram, the

following campus are being organized every year

i) Polio administrators camps 4-5 times a year covering all the wards.

ii) Government department of Health and Medicine sponsors Chicken pox

inoculation campus 3 -4 times a year for children up to 9 months

iii) Tests and investigators survey camps to detect leprosy cases are arranged 2-

3 times a year by the municipality.

iv) As a preventative measure , medicine for Filariasis are distributed 2-3 times

a year

v) Special camps to bring in public awareness about AIDS are arranged 2-3

times a year and people are give free advice and guidance.

vi) Under ‘jeeva jothi’ campaign , school students are medically tested to

investigate problems of health if any relating to anaemia , worms ear-nose

throat problems , dental care and the like thousands of students get the

benefit from these camps.

vii) As a regular feature , under NFCB programme , the MHO overseas mosquito

elimination through sprays and gas emissions –all over the city . Eleven

employees are working in this cell in the municipality.

viii) To prevent adulteration of food stuffs and eatables surprise raids as are

conduced to collect samples of food grains and other food items for testing.

The municipality qualified adulteration investigators for this purpose. The

samples are normally tested in Coimbatore labs.



3.7.2 Future Requirements- Medicare

Repair, maintenance, renovation and more staff, equipping the hospitals with modern

equipment and instruments and deploying specialist doctors for proper health care

priority requirements. Additional Medicare facilities in terms of Public Health Centre and

Maternity Home are required in the town. A veterinary hospital is also required in the

town. At town level, how ever a full fledged General Hospital is demanded as the town is

fast growing besides being District Head Quarters, and for emergency / complicated

surgery , the patients are to be taken to Pondicherry hospitals . An incinerator to treat

the medical wastes is a must in the town.A trauma care wing has to be attached to GH.

3.7.3 Strategies – Medicare

i) A full fledged hospital with 100-200 beds as an extension to the existing GH

necessary and the government will be approached for the purpose.

ii) Existing facilities will have to be revived and up dated in terms of equipment,

specialization medicines and branches of medi care in the GH.

iii) For other systems of medicine, full- fledged dispensaries will have to be

opened

iv) Two public Health Centers and a Maternity Home are to be set up

v) One veterinary hospital is required in the town

vi) People will have to be educated and informed about various new diseases

and the need for an awareness of them as a preventative measure and also

the remedies and precautions the people have to take to avoid contracting

the disease.

4

FUTURE VISION

4.1 Future Vision

As a foremost initial step, the ‘vision’ for the town has to be established in clear cut

terms as aspired by the people and, finally acceptable to them.



“Participation of the public, the users of the plan” is considered the essence of the

strategic plan, and in turn the business plan for the town in expressing their

aspirations and dreams about the town’s future character, form and function.

As the first priority step, a consultative process was evolved involving all the elected

councilors who are the responsible representatives of the public to reflect the

collective wish of their respective ward citizens and, the line agencies who all

contribute in their respective sectors of development to build the city. In four open

meetings, for the ward wise citizens, for the councilors and for the line agencies,

presided over by the chairman of the town council and, in the presence Municipal

Commissioner and all concerned from municipality, the participants deliberated at

length, at the instance of the consultant team, the issues relating to the town, the

town’s present status and its future. For the purpose of consolidating their considered

views, they have given in writing in the questionnaire provided for this purpose. An

analysis of views of the councilors and the line agencies wish the town to grow

“Commercially strong with an industrial bias in future in a sustainable living

environment”.

The town at present is growing commercial centre with vast agricultural hinterland.

Commodities and food products followed by textiles and jewellery are traded in the

markets. The neighboring towns like Pondicherry are growing competitors as the

products in Villupuram are largely conventional. In order to make the products

attractive and competitive, and also to diversify the economy, setting industrial

establishments in manufacturing at house holds and other than house hold levels

become essential.

The requirements at area level expressed by the councilors and other stake holders

including the public a the series of consultative meetings at ward level mostly relate to

building a city with target of making it to fulfill the vision evolved for the city .

In brief, the importance blocks of the city building process are as follows:



i) Urban Governance

The organization has to be developed in such away that it is responsive to the

citizens’ needs with an understanding of the aspiration of the people and provide the

services and facilities to an acceptable and minimum satisfactory level in a

transparent mode of operation.

ii) Municipal Finance

The organizational resources have to be managed in a way to meet the strategic and

corporate plan capital and other requirements through an optimal assessment

method of raising resources, so that the citizens are conscious and willing to pay and

contribute as when required. This is to be done with a well through out Financial and

operating Plan Considering the short term and long term capital and O&M

requirements.

iii) Economic Development

The city is growing commercial centre with District Headquarters administrative set

up. For sustaining the town’s growth and development, an industrial input is

necessary in light of the entrepreneurial skill and potential of the town in the

regional setting.

iv) Land Use

The master plan for the town has extensively dealt the composition and disposition

of land use mosaic for the town for a perspective plan period of 20 years. The land

use plan keeps in view the growth dynamics of the town.

v) Traffic and Transportation

The town is traversed by arterial roads and railway lines, and because of its

locational advantages in the regional setting, the town’s road become increasingly

congested and polluting the town’s atmosphere. By passable traffic has to be

diverted , and the town roads will be made as far as possible dust free and less

congested , leaving the town’s environmental livable.

vi) Essential Services



Basic services such as water supply, sewerage, sanitation, street lighting, solid waste

management and roads /streets will be provided to the satisfaction of the citizen so

as to meet the social economic environmental norms and needs.

vii) Environment

The town’s land water and air will be kept environmentally acceptable through

concerted efforts to mitigate pollution and contamination of them by wastes, dust

and noise. The efforts in this direction will ensure sustainment of good environment

of the town.

viii) Privatization

For effectiveness and efficiency in managing services and commercial ventures of

sizable capital investments, private sector has to be involved, where the local body

will play a role of facilitator or enabler besides a manager.

ix) Community participation and Development

Community’s participation will be of utmost importance in the development of the

town and accordingly the efforts in planning for the town over short terms will be

oriented. The strategies for achieving these goals are clearly spelt out in the

respective sections.

4.2 Mission Statement

i) The short term mission for the town as the synthesis of corporate plan goals

will be to prepare adequate sound economic, social physical base as

foundation for building the “Vision” project in the long term. This would

mean provision of basic services to the people in an effective and efficient

manner, through an economic / financial investment programme.

ii) The long term vision for the town includes a well coordinated mission –

target-oriented effort that would include line-departments’ involvements with

the local body through a planned investment and implementation schedule.



5 ASSETS MANAGEMENT PLAN

5.0 Introduction

The local bodies like families and individuals, persons certain assert and properties. In

order to retain and strengthen the same as to earn income or provide needful service

out of them, they should maintain and preserve them at most. The exercise to maintain



and preserve them is what we may call Assert Management Plan (AMP). These assets

may be of movable and immovable items. Specifically the roads, parks, water supply

sources and river pumping stations, storm water drains, sewerage lines, street lights,

lands, buildings, markets, shopping complexes etc… are immovable assets and vehicles

and others can come under movable assets.

As to draw AMP, we need to have information on the conditions, costs, values, extent of

area in case of land or building, performance and management/ maintenance standards

if any.

5.1 Inventory of Assets

The basic aspects of the assets the AMP should have are types of assets in terms of

quantity and quality, location and locational distribution of assets, procurement age of

the assets, life cycle of the assets. Almost all assets either increase or decrease in their

values through the time and space and use. Thus the values as particularly the value

updating are yet other aspects of AMP.

Annexure III states the conditions and types of roads and length of each road street

wise. Annexure IV and V show the ward wise location and extent of various buildings

and lands of the municipality.

5.2 Street Lights

Villupuram Municipality, as of 2002 has provided 2203 streetlights in the Town.

5.3 Roads and Streets

Villupuram has roads to a length of 61,260 Kms, as asset to its credit. Of these roads,

75 percent of the roads are either BT or CC surfaced.

TABLE 5.1 Roads – Types and Length

S.No. Type of Roads Length in Kms

% to total

Highway Roads

1 National Highways 6.40 10.45



Sub Total 6.40 10.45

Municipal Roads

1 Concrete roads 25.34 41.36

2 BT roads 23.43 38.25

3 WBM roads 4.22 6.89

4 Earthen roads 1.86 3.04

Sub Total 54.85 89.55

TOTAL 61.26 100.00

5.4 Water Supply System

All the units relating to water supply systems covering Head works, Transmission Ducts,

OHT’s, Reservoirs, Supply and distribution mains, House connections, Treatment units

and other related appurtenances belong to the corporation. The distribution pipelines of

the town runs about 78.40 kms in length.

TABLE 5.2 Water Supply Appurtenances and their Numbers

S.No Type of Appurtenances No’s

1 Private Hand pumps with bore wells 200

2 Mini Power pumps 48

3 Public Fountains 144

4 OHTs 2

5 House service connections 5554

5.5 Others

The municipality owns vehicles for the officials, for lifting of garbage and in addition

owns compost yards for dumping of garbage.



Table 5.3: Building Of Schools, Hospitals and Parks

S.No Buildings No.

1 Municipal school buildings 36

2 Hospitals 4

3 Municipal Parks 3



6.1 CONSTRUCTION OF SHOPPING COMPLEX

6.1.1 INTRODUCTION

Villupuram is an important administration

centre with the population of 95,459 as per

2001 census and it is a fast growing urban

centre in the northern part of Tamilnadu. It

has got one of the important railway junction

connecting various important towns of

Tamilnadu and other states of India. The NH 45 and NH 45A runs through the town. It

is a major commercial centre famous for the wholesale trade of Paddy, Groundnut,

Sugarcane, Cotton etc., The major roads and municipal roads in the centre of the town

have large number of shops and trading activities. The Old bus stand site in centre of

the town is at present vacant and abuts the Pandit Jawaharlal Nehru Road. All these

features make the town more vibrant in recent years.

6.1.2 NEED ASSESSMENT

Due to congestion, bus stand operated within the town centre is shifted to a new

location during 2000. Total extent of the New Bus Stand is 15 acres located outside the

municipal limit along NH-45 (Trichy road) near Collectorate and Integrated Court

Complex Building with adequate facilities for handling more buses. Now Erstwhile Bus

stand site is used for parking town buses operated within the radius of 25 to 30km from

Villupuram. The total extent of old bus stand site is approximately 78,000 sq.ft along

Jawaharlal Nehru Road but only part of the land is used for bus bays rest of the land is

left vacant. Therefore Old bus stand can be utilized to develop commercial activities.

Since Villupuram is a major commercial and trading centre in the district, planned

commercial complexes are required of the time and proper spatial arrangement of the

activities. The old bus stand site is abutting the Pandit Jawaharlal Nehru Road which is a

wider and major road with commercial activities. Thus it is more situated for commercial

complex. Besides this, still some of the town buses terminate and start from this locality.

Thus the bus passengers and town population and as well as the hinterland population

Old Bus Stand Site



visiting the commercial centre will be benefited. The rental revenue and deposits of the

new shops will strengthen the revenue base of the Municipality. Already local body

owned 15 shops and rented to private people in this site. These shops yield nearly Rs.

2.50 lakhs per annum as a rent. Municipality felt that vacant land available in old bus

stand site is the prime location where shopping complex can be constructed in order to

utilize the land for mobilizing more resources for the local body.

6.1.3 COMPONENTS

It is suggested that shopping complex can be constructed in order to generate

sustainable revenue. It is proposed to construct in G+ 1 floor with all the infrastructure

facilities. It is proposed that shopping complex can be constructed at a plinth area of

29,000 sq.ft.

6.1.4 EXPENSES

Development cost for the project includes 2% of the total project cost as O&M charges

and 4% of the total project cost as inflation charges. The construction cost of Shopping

complex for a area of 58124 sq.ft in G+1 floor at a market rate of Rs. 1000 per sq.ft

comes around Rs. 581.24 lakhs. Over heads including O&M and Inflation for this project

is calculated as Rs. 34.87 lakhs. Thus the total project cost estimated is Rs. 616.11

Lakhs. The total cost is to be borrowed from TUFIDCO, TUUIFSL & Similar agencies at

the interest rate of 12.5% per annum for a repayment period of about 20yrs.

Table 6.1: Distribution of Development Components

S.No Development Component Rs. In Lakhs

1 Establishment Cost 581.24

Development costs (a) 581.24

1 O&M Charges @ 2% of (a) 11.62

2 Inflation @ 4% of (a) 23.25

Over heads (b) 34.87

GRAND TOTAL (a+b) 616.11



Table 6.2: Repayment Schedule – Cash Inflow

REPAYMENT SCHDULE - CASH INFLOW Rs. in lakhs

No. of years for Repayment: 20

Moratorium period: 5 Years

Repayment starting year: 2008


Loan Repayment

year Principal Interest Total Balance Year

Total Repayment

616.11 2007 0.00 0.00 0.00 616.11 2007 0.00

2008 32.43 77.01 109.44 583.69 2008 109.44

2009 32.43 72.96 105.39 551.26 2009 105.39

2010 32.43 68.91 101.33 518.83 2010 101.33

2011 32.43 64.85 97.28 486.41 2011 97.28

2012 32.43 60.80 93.23 453.98 2012 93.23

2013 32.43 56.75 89.17 421.55 2013 89.17

2014 32.43 52.69 85.12 389.12 2014 85.12

2015 32.43 48.64 81.07 356.70 2015 81.07

2016 32.43 44.59 77.01 324.27 2016 77.01

2017 32.43 40.53 72.96 291.84 2017 72.96

2018 32.43 36.48 68.91 259.42 2018 68.91

2019 32.43 32.43 64.85 226.99 2019 64.85

2020 32.43 28.37 60.80 194.56 2020 60.80

2021 32.43 24.32 56.75 162.14 2021 56.75

2022 32.43 20.27 52.69 129.71 2022 52.69

2023 32.43 16.21 48.64 97.28 2023 48.64

2024 32.43 12.16 44.59 64.85 2024 44.59

2025 32.43 8.11 40.53 32.43 2025 40.53

2026 32.43 4.05 36.48 0.00 2026 36.48

616.11 729.61 1386.26 1386.26

The total repayment made at the end of 2026 is about Rs.1386.26 Lakhs for a total loan

amount of Rs.616.11 Lakhs for the base year 2007.



6.1.5 REVENUE

It is proposed that shopping complex will hold 64 shops with the size of 12m x 6m and

24 shops with the size of 6m x 3m in G+1 floor. It is proposed to rent shops at a base

rate of Rs. 20 per sq.ft per month.

Therefore in a year nearly Rs. 133 Lakhs of revenue can be generated out of 88 shops.

Base rate arrived at this year will be revised on every consecutive 3 years of 10%

through out the repayment period. The total recovery arrived at 2026 out of this project

will be Rs.3325.11 Lakhs. The surplus amount out of this project at the end of 2026 is

Rs.1938.35 Lakhs.

6.1.6 DEBT SERVICES

The total project cost is carried by loan. Debt servicing will start with the interest pay in

the year 2008 (of Rs.77.01 lakhs). In 2008 repayment of loan (Principle + Interest) will

be Rs.109.44 lakhs and at the end of 2026 it reduced to Rs. 36.48 lakhs. The total debt

serving for the project works out to be Rs.1386.26 lakhs for a loan amount of Rs.616.11

Lakhs and total debt services are 616:1386(round off).

6.1.7 CASH FLOW

Throughout the repayment period the cash flow is in surplus and the Recovery &

Repayment ratio starts with 1.22 in the year 2008 and for the project is 2.40. Meanwhile

the rate of debt charges and recovery remains under 0.82 indicating the project revenue

is surplus over the debt servicing.



Table 6.3: Cash Outflow

CASH OUTFLOW Rs in lakhs

RECOVERY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Rent from Shops

0.00 133.44 133.44 133.44 146.78 146.78 146.78 161.46 161.46 161.46 177.61 177.61 177.61 195.37 195.37 195.37 214.91 214.91 214.91 236.40

TOTAL 0.00 133.44 133.44 133.44 146.78 146.78 146.78 161.46 161.46 161.46 177.61 177.61 177.61 195.37 195.37 195.37 214.91 214.91 214.91 236.40

Table 6.4: Cash flow statement

CASH- FLOW STATEMENT Rs. In Lakhs

Particulars 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 TOTAL

RECOVERY

Rent from Shops

0.00 133.44 133.44 133.44 146.78 146.78 146.78 161.46 161.46 161.46 177.61 177.61 177.61 195.37 195.37 195.37 214.91 214.91 214.91 236.40 3325.11

TOTAL (A) 0.00 133.44 133.44 133.44 146.78 146.78 146.78 161.46 161.46 161.46 177.61 177.61 177.61 195.37 195.37 195.37 214.91 214.91 214.91 236.40 3325.11

REPAYMENT

Debt charges 0.00 109.44 105.39 101.33 97.28 93.23 89.17 85.12 81.07 77.01 72.96 68.91 64.85 60.80 56.75 52.69 48.64 44.59 40.53 36.48 1386.26

TOTAL (B) 0.00 109.44 105.39 101.33 97.28 93.23 89.17 85.12 81.07 77.01 72.96 68.91 64.85 60.80 56.75 52.69 48.64 44.59 40.53 36.48 1386.26

Surplus /Deficit

0.00 24.00 28.05 32.11 49.50 53.56 57.61 76.34 80.39 84.45 104.65 108.70 112.75 134.57 138.62 142.68 166.27 170.32 174.37 199.92 1938.85

CUMULATIVE SURPLUS/ DEFICIT

0.00 24.00 52.05 84.16 133.66 187.21 244.82 321.17 401.56 486.01 590.66 699.36 812.11 946.68 1085.30 1227.98 1394.24 1564.56 1738.94 1938.85

Recovery /Repayment

(A/B) 0.00 1.22 1.27 1.32 1.51 1.57 1.65 1.90 1.99 2.10 2.43 2.58 2.74 3.21 3.44 3.71 4.42 4.82 5.30 6.48 2.40

Debt Charges /Devt. Charges (B/A)

0.00 0.82 0.79 0.76 0.66 0.64 0.61 0.53 0.50 0.48 0.41 0.39 0.37 0.31 0.29 0.27 0.23 0.21 0.19 0.15 0.42



6.2 VEGETABLE MARKET

6.2.1 INTRODUCTION

Villupuram Municipal Market is one of the important commercial centre, which support

the daily needs of the population residing in the surrounding rural areas and the town.

Agricultural commodity such as cereals, grains and fruits are purchased and routed

through Villupuram, having high rural commuters between villages and Villupuram. The

Municipal market is located in the central area near the Old Bus Stand and

accommodates 42 shops (both Vegetable and Non-Vegetable shops).


The Urban Local Body maintains one daily market, which caters to the need of

Villupuram town and surrounding rural areas. The existing market is located in ward no.

31 with T.S. No. 2 and T.S. No. 3 to 30 at a total extent of 5900 m2. The Municipal

market consists of different type of commercial activities like Vegetable Shops, Mutton

Shops, Fish Markets, Petty Shops and Provision Shops. Villupuram Municipal Market is

one of the important commercial centre and generates revenue (Rs. 1.25 lakhs per

annum), which is a source of income to local body.

At present, municipal market is located in the central area and consists of 42 Shops

(Vegetable and non-vegetable shops). Other than this, there are many shops also

functioning outside the market area. Different type of commercial activities is

concentrated along the M G Road, Baharsha Street and Kamaraj Street. Utilization of

this market and arrangement of shops as observed by the consultant’s team is not

proper and effective in tune with the town’s growth. Fish stalls and vegetable shops are

run unremuneratively according to the enquiries made with the shop keepers because

the street / pavement vendors along the commercial streets in the town do the similar

activities. The daily market shop keepers pay daily rent to the Municipality. It is

observed that this way the monthly rent per shop of vegetable and fish market may be

around Rs. 500 to Rs. 600 only. As per the survey conducted and from the interest of

Local Body in augmenting revenue, it is proposed to go in for Modernized Complex for



Market / Shops in G+1 floors in the existing vegetable Market site with all infrastructure

facilities. As to maximize the returns from the scarce urban land of this market and set

right the disorderly spatial arrangement, the present daily market complex may be

remodeled and reconstructed so that more shops are constructed in an orderly manner.

This way more revenue will add to the existing revenue base of the Villupuram

Municipality. As to run the daily market at more profitable level, the pavement / street

vendors along the commercial streets / roads need to be regulated and controlled.

Simultaneously this regulation will smoothen the traffic flow along the major roads of

the town too.

6.2.3 COMPONENTS

In existing market site, it is proposed to have Modernized Complex in G+ 1 floor with

400 shops. In that ground floor is used to sale vegetables & Grocery; first floor is for

Fruits and Flowers. Each shop is designed to have a approximate working space of

200 sq.ft at a construction cost of Rs.1000/sq.ft. Total estimated cost for the

construction of these shops is about Rs.800 Lakhs and overheads of Rs. 48 Lakhs. The

shops will be rented on monthly basis for Rs.3000 per shop and the total estimated

revenue will be Rs.144 Lakhs per annum.

6.2.4 OPERATING PARAMETERS

The total project cost has to be sourced from the finance institutions such as TUFIDCO

under the IDSMT Scheme for about Rs.848 Lakhs deducting the deposit amount of Rs.

40 lakhs at a rate of Rs. 10,000 from each shop owners. It involves the establishment

cost such as laying of staircase, construction of 400 shops. The total estimated cost

involves the operation and maintenance cost with the inflation.

6.2.5 EXPENSES

Development cost for the project includes 2% of the total project cost as O&M charges

and 4% of the total project cost as inflation charges. Thus the total project cost is

Rs.848 lakhs.





1 Establishment Cost 800.00


1 O&M Charges @ 2% of (a) 16.00


Over heads (b) 48.00


Deducting Rs. 40 Lakhs collected from shop owners as deposits the loan to be raised is

Rs. 808 Lakhs. The loan is to be borrowed from TUFIDCO, TUUIFSL & Similar agencies

at the interest rate of 12.5% per annum for a repayment period of about 20yrs.

Table 6.6: Repayment Schedule – Cash Inflow REPAYMENT SCHDULE - CASH INFLOW Rs in lakhs





Loan Repayment


Total Repayment

808.00 2007 0.00 0.00 0.00 808.00 2007 0.00

2008 42.53 101.00 143.53 765.47 2008 143.53

2009 42.53 95.68 138.21 722.95 2009 138.21

2010 42.53 90.37 132.89 680.42 2010 132.89

2011 42.53 85.05 127.58 637.89 2011 127.58

2012 42.53 79.74 122.26 595.37 2012 122.26

2013 42.53 74.42 116.95 552.84 2013 116.95

2014 42.53 69.11 111.63 510.32 2014 111.63

2015 42.53 63.79 106.32 467.79 2015 106.32

2016 42.53 58.47 101.00 425.26 2016 101.00

2017 42.53 53.16 95.68 382.74 2017 95.68

2018 42.53 47.84 90.37 340.21 2018 90.37

2019 42.53 42.53 85.05 297.68 2019 85.05

2020 42.53 37.21 79.74 255.16 2020 79.74

2021 42.53 31.89 74.42 212.63 2021 74.42

2022 42.53 26.58 69.11 170.11 2022 69.11

2023 42.53 21.26 63.79 127.58 2023 63.79

2024 42.53 15.95 58.47 85.05 2024 58.47

2025 42.53 10.63 53.16 42.53 2025 53.16

2026 42.53 5.32 47.84 0.00 2026 47.84

808.00 956.84 1818.00 1818.00



The total repayment made at the end of 2026 is about Rs.1818 Lakhs for a loan amount

of Rs.808 Lakhs from the base year 2007.

6.2.6 REVENUE

The shops in the complex are left to lease on the monthly basis and the total revenue

for all the 400 shops on an average will be around Rs.12.00 lakhs / month. The total

recovery arrived at 2026 will be Rs.3588.25 Lakhs. This is assessed based on the

prevailing market rate. Base rate arrived at this year will be revised on every

consecutive 3 years of 10% through out the repayment period. The surplus amount out

of this project at the end of 2026 is Rs.1770.25 Lakhs.

6.2.7 DEBT SERVICES

Debt servicing will start with the interest in the year 2008 (of Rs.101 lakhs). In 2008

repayment of loan (Principle + Interest) will be Rs.143.53 lakhs and at the end of 2026

it reduced to Rs. 47.84 lakhs. The total interest paid for the project works out to be

Rs.1818 lakhs for a loan amount of Rs.808 Lakhs and total debt services are

808:1818(round off).

6.2.8 CASH FLOW

In this project, cash flow is in surplus through out the repayment period and the

Recovery & Repayment ratio starts with 1.00 in the year 2008 and for the project is

1.97. Meanwhile the rate of debt charges and recovery remains under 1.00 indicating

the project revenue is surplus over the debt servicing.





RECOVERY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Revenue from shops

0.00 144.00 144.00 144.00 158.40 158.40 158.40 174.24 174.24 174.24 191.66 191.66 191.66 210.83 210.83 210.83 231.91 231.91 231.91 255.10

TOTAL 0.00 144.00 144.00 144.00 158.40 158.40 158.40 174.24 174.24 174.24 191.66 191.66 191.66 210.83 210.83 210.83 231.91 231.91 231.91 255.10




RECOVERY

Revenue from shops

0.00 144.00 144.00 144.00 158.40 158.40 158.40 174.24 174.24 174.24 191.66 191.66 191.66 210.83 210.83 210.83 231.91 231.91 231.91 255.10 3588.25

TOTAL (A) 0.00 144.00 144.00 144.00 158.40 158.40 158.40 174.24 174.24 174.24 191.66 191.66 191.66 210.83 210.83 210.83 231.91 231.91 231.91 255.10 3588.25

REPAYMENT

Debt charges

0.00 143.53 138.21 132.89 127.58 122.26 116.95 111.63 106.32 101.00 95.68 90.37 85.05 79.74 74.42 69.11 63.79 58.47 53.16 47.84 1818.00

TOTAL (B) 0.00 143.53 138.21 132.89 127.58 122.26 116.95 111.63 106.32 101.00 95.68 90.37 85.05 79.74 74.42 69.11 63.79 58.47 53.16 47.84 1818.00

Surplus /Deficit

0.00 0.47 5.79 11.11 30.82 36.14 41.45 62.61 67.92 73.24 95.98 101.30 106.61 131.09 136.41 141.73 168.12 173.44 178.76 207.26 1770.25

CUMULATIVE SURPLUS /DEFICIT

0.00 0.47 6.26 17.37 48.19 84.33 125.78 188.39 256.31 329.55 425.53 526.83 633.44 764.53 900.94 1042.67 1210.79 1384.23 1562.99 1770.25

Recovery /Repayment

(A/B) 0.00 1.00 1.04 1.08 1.24 1.30 1.35 1.56 1.64 1.73 2.00 2.12 2.25 2.64 2.83 3.05 3.64 3.97 4.36 5.33 1.97

Debt Charges /Devt. Charges (B/A)

0.00 1.00 0.96 0.92 0.81 0.77 0.74 0.64 0.61 0.58 0.50 0.47 0.44 0.38 0.35 0.33 0.28 0.25 0.23 0.19 0.51



6.3 UNDERGROUND SEWERAGE SYSTEM

6.3.1 INTRODUCTION

Contour of the town is generally flat, with a falling gentle slope from North to South and

West to East. There is no separate drainage, STWD, Sewerage system. The Natural course

of drainage system serves through out the town. It is proposed to have a UGD system

based on contour falling; the entire town is divided into 3 sewer zones with three pumping

stations at Xavier Colony, Pappan Kulam and Thamaraikulam. STPs at Poyyapakkam and

Vadakachipalayam. Zone I cover wards 1 & 18 fully and ward nos. 2, 17, 19 & 34 in western

part of the municipality. Zone II covers the central portion of the town including ward nos.

3, 13, 14, 15, 16, 19, 20, 21, 22, 23, 26, 27, 28, 29, 30, 31, 32, 33, 35 & 36 fully and 2, 17,

19 & 34 partly. Zone III covers the eastern part of the municipality includes ward 4, 5, 6, 7,

8, 9, 10, 11, 12, 24 & 25 fully.


Villupuram town has not been provided with an Underground Sewerage system. All the rain

water takes the natural course and drain water, storm water, sullage and sewer together.

The town is provided only with open masonry drains in most of the streets. The open drains

put up are along the sides of the roads / streets. There are 8 major drains draining various

parts of the town. Sewerage is let out directly into street drains without treatment

throughout the town. Sometimes they are let into low lying areas or ponds which act as

mosquito’s breeding grounds. Thus the performance of existing open drains system and

sewage disposal or not satisfactory. As to protect the towns population and considerable

amount of floating population visiting regularly the town. To improve the sanitary conditions

of the total town and to improve the quality of life a network of underground sewerage

system, a proper treatment and safe disposal is necessitated.

6.3.3 COMPONENTS

In order to provide under ground sewerage system involves construction of sewer lines,

house service connections, bedding, construction of main pumping station, sewage

treatment plant, Laying of pumping Mains & construction of STP. It was roughly worked out

that the total estimated cost for the project is about Rs.3380.31 Lakhs and the service



providers are asked to pay the initial deposits at a rate of Rs. 5000 for domestic and Rs.

20000 for non-domestic use. The estimated connections will be about 25000 domestic

connections and 4000 commercial connections. The total estimated deposits will be of

Rs.716.67 Lakhs.


About 30% of the total Project cost is been provided as grant by TUNIFSL for the service

project. The deposits obtained for the service connections in the first & second phase is

excluded from the project cost to arrive total amount to be raised as a loan. It is proposed

to obtain Rs.840.77 Lakhs as a loan from financial institutions such as TNUIFSL at the

interest rate of 8.25% per annum for a repayment period of about 20yrs in which

moratorium period is of 5 yrs. This project is phased in two phases and the loan amount

obtained from the finance agencies are taken in phases as per the requirement.

6.3.5 EXPENSES

The core activity involved in this project are construction of sewer lines, house service

connections, bedding, construction of main pumping station, laying of main pumping station

and construction of STP. Development costs for the project involves Physical Contingency @

5 % of base cost and Price Contingency @ 10 % of the total project cost & Supervision

Charges @ 5% compounding for 3 years and Interest for 3 years. So the total project cost is

expected to be Rs.3380.15 Lakhs.



Development costs

1 Sewer System (89.230 km)

Zone 1 (19.550 km) 225.000

Zone 2 (45.466 km) 533.000

Zone 3 (24.214 km) 345.320

2 House Service Connections 537.460

3 Road restoration charges for sewers, Hsc & Pumping main

301.490

4 Sewage cleaning equipment 25.000

sub total (A) 1967.270



5 Pumping Stations (3 nos.)

Zone 1 - PS1 20.500

Zone 2 -PS2 34.330

Zone 3 -PS3 25.910

Interconnection between various units 2.560

sub total (B) 83.300

6 Laying of Pumping Mains (3 nos.)

PM1 55.000

PM2 89.000

PM3 61.000

sub total (C) 205.000

7 Construction of Sewage Treatment Plant 375.000

8 Miscellaneous Items 135.000

sub total (D) 510.000

Total Base Cost (A+B+C+D) 2765.570

Over heads

9 Physical Contingency @ 5 % of base cost 138.280

sub total (E) 2903.850

10 Price Contingency @ 10 % of sub total E 290.380

sub total (F) 3194.230

11 Supervision Charges @ 5% of sub total F 159.710

sub total (G) 3353.940

Interest for 3 years 26.370

Total Project Cost 3380.315

6.3.6 PHASING

The loan is obtained in 2 phases, Phase I accounts to Rs. 1481.197 Lakhs and Phase II

accounts to Rs. 1899.118 Lakhs. For Phase I loan is obtained during 2007 and repayment of

loan ends in 2026 and for Phase II loan is obtained during 2008 and repayment ends in

2027. Phase I having a grant component of Rs. 798.67 Lakhs and deposits of Rs. 358.34

Lakhs. Phase II having a grant component of Rs. 1024.12 Lakhs and Rs. 358.34 Lakhs as

deposits. Therefore Loan amount for Phase I is Rs. 324.11 Lakhs and for

Phase II is Rs. 516.66 Lakhs.



Table 6.10: Development Components in phasing

S.No PROJECT COST Rs. In lakhs

Development costs Phase 1 Phase 2 TOTAL

1 Sewer System (89.230 km)

Zone 1 (19.550 km) 225.000 225.000

Zone 2 (45.466 km) 533.000 533.000

Zone 3 (24.214 km) 345.320 345.320

2 House Service Connections 537.460 537.460

3 Road restoration charges for sewers, Hsc & Pumping main 301.490 301.490

4 Sewage cleaning equipment 25.000 25.000

sub total (A) 758.000 1209.270 1967.270

5 Pumping Stations (3 nos.)

Zone 1 - PS1 20.500 20.500

Zone 2 -PS2 34.330 34.330

Zone 3 -PS3 25.910 25.910

Interconnection between various units 2.560 2.560

sub total (B) 54.830 28.470 83.300

6 Laying of Pumping Mains (3 nos.)

PM1 55.000 55.000

PM2 89.000 89.000

PM3 61.000 61.000

sub total (C) 144.000 61.000 205.000

7 Construction of Sewage Treatment Plant 187.5 187.5 375.000

8 Miscellaneous Items 67.5 67.5 135.000

sub total (D) 255 255 510.000

Total Base Cost (A+B+C+D) 1211.830 1553.740 2765.570

Over heads

1 Physical Contingency @ 5 % of base cost 60.592 77.687 138.279

sub total (E) 1272.422 1631.427 2903.849

2 Price Contingency @ 10 % of sub total E 127.242 163.143 290.385

sub total (F) 1399.664 1794.570 3194.233

3 Supervision Charges @ 5% of sub total F 69.983 89.728 159.712

sub total (G) 1469.647 1884.298 3353.945

Interest for 3 years 11.550 14.820 26.370

Total Project Cost 1481.197 1899.118 3380.315



6.3.7 REVENUE

The revenue generated from this project is by getting service charges at the rate of

Rs.5000/ domestic connection and Rs. 20000/ commercial connection. The total amount

obtained as deposits will be Rs.716.67 Lakhs. Revenue also includes service charges for

each connection it accounts to Rs. 396.00 Lakhs during 2010. Base rate has been arrived for

the initial 3 years by considering the prevailing market rate and it is proposed to increase

10% for the consecutive 3 years through out the repayment period. The total recovery

arrive



Table 6.11: Repayment Schedule – Cash Inflow REPAYMENT SCHDULE - CASH INFLOW Rs. in lakhs

No. of years for Repayment: 20 No. of years for Repayment: 20

Moratorium period: 5 Years Moratorium period: 5 Years

Repayment starting year: 2008 Repayment starting year: 2009

Repayment starting

year: 2008

Loan Repayment

year Principal Interest Total Balance Loan

Repayment year

Principal Interest Total Balance Year Total

Repayment

324.11 2007 0.00 0.00 0.00 324.11 2007 0.00

2008 17.06 0.00 17.06 307.05 516.66 2008 0.00 0.00 0.00 516.66 2008 17.06

2009 17.06 0.00 17.06 289.99 2009 27.19 0.00 27.19 489.47 2009 44.25

2010 17.06 0.00 17.06 272.93 2010 27.19 0.00 27.19 462.27 2010 44.25

2011 17.06 0.00 17.06 255.87 2011 27.19 0.00 27.19 435.08 2011 44.25

2012 17.06 21.11 38.17 238.82 2012 27.19 0.00 27.19 407.89 2012 65.36

2013 17.06 19.70 36.76 221.76 2013 27.19 33.65 60.84 380.70 2013 97.60

2014 17.06 18.29 35.35 204.70 2014 27.19 31.41 58.60 353.50 2014 93.95

2015 17.06 16.89 33.95 187.64 2015 27.19 29.16 56.36 326.31 2015 90.30

2016 17.06 15.48 32.54 170.58 2016 27.19 26.92 54.11 299.12 2016 86.65

2017 17.06 14.07 31.13 153.52 2017 27.19 24.68 51.87 271.93 2017 83.00

2018 17.06 12.67 29.72 136.47 2018 27.19 22.43 49.63 244.73 2018 79.35

2019 17.06 11.26 28.32 119.41 2019 27.19 20.19 47.38 217.54 2019 75.70

2020 17.06 9.85 26.91 102.35 2020 27.19 17.95 45.14 190.35 2020 72.05

2021 17.06 8.44 25.50 85.29 2021 27.19 15.70 42.90 163.16 2021 68.40

2022 17.06 7.04 24.09 68.23 2022 27.19 13.46 40.65 135.96 2022 64.75

2023 17.06 5.63 22.69 51.17 2023 27.19 11.22 38.41 108.77 2023 61.10

2024 17.06 4.22 21.28 34.12 2024 27.19 8.97 36.17 81.58 2024 57.45

2025 17.06 2.81 19.87 17.06 2025 27.19 6.73 33.92 54.39 2025 53.80

2026 17.06 1.41 18.47 0.00 2026 27.19 4.49 31.68 27.19 2026 50.14

324.11 168.88 492.98 2027 27.19 2.24 29.44 0.00 2027 29.44

516.66 269.21 785.86 1278.85

The total repayment made at the end of 2026 is about Rs.1278.85 Lakhs for a total loan amount of Rs.840.77 Lakhs for the base

year 2007.



6.3.7.1 Assumptions

It is assumed that the total deposits collected for the service connections will be added

in the principle amount in order to reduce the loan amount obtained from the finance

institutions. Thus we take only the service charges collected in each year can be

calculated as revenue. Since the installation period is 3 years the service charges will be

collected from the year 2010. The surplus amount out of this project at the end of 2027

is Rs. 9120.59 Lakhs.

6.3.8 DEBT SERVICES

The interest rate 8.25% will be calculated as per phases and in the first phase the

principle starts in the year 2008 (of Rs.17.06lakhs) the interest from 2012 will

Rs.21.11 Lakhs. The total loan amount paid for the first phase will be Rs.492.98 Lakhs.

In the second phase the principle starts at 2009 (of Rs.27.19 Lakhs) and the interest

from 2013 (of Rs.33.65 Lakhs). The total loan amount paid for the second phase will be

Rs.785.86 Lakhs. The total debt serving for the project works out at Rs.1278.85 Lakhs

for a loan amount of Rs.840.77 Lakhs (including the grants) and total debt services are

841 : 1279 (rounded off).

6.3.9 CASH FLOW

From the cash flow statement, the cash flow remains deficit till 2009 after then it is

having surplus revenue each year. At the end of 2027 project ends with the surplus

revenue of Rs. 9120.59 Lakhs at a Recovery-Repayment ration of 8.13. Meanwhile the

rate of debt charges and recovery remains under 0.20 indicating the project revenue is

surplus over the debt servicing.





RECOVERY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Service Charges 0.00 0.00 0.00 396.00 396.00 396.00 455.40 455.40 455.40 523.71 523.71 523.71 602.27 602.27 602.27 692.61 692.61 692.61 796.50 796.50 796.50

TOTAL 0.00 0.00 0.00 396.00 396.00 396.00 455.40 455.40 455.40 523.71 523.71 523.71 602.27 602.27 602.27 692.61 692.61 692.61 796.50 796.50 796.50



Particulars 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 TOTAL

RECOVERY

Service Charges

0.00 0.00 0.00 396.00 396.00 396.00 455.40 455.40 455.40 523.71 523.71 523.71 602.27 602.27 602.27 692.61 692.61 692.61 796.50 796.50 796.50 10399.44

TOTAL (A) 0.00 0.00 0.00 396.00 396.00 396.00 455.40 455.40 455.40 523.71 523.71 523.71 602.27 602.27 602.27 692.61 692.61 692.61 796.50 796.50 796.50 10399.44

REPAYMENT

Debt charges 0.00 17.06 44.25 44.25 44.25 65.36 97.60 93.95 90.30 86.65 83.00 79.35 75.70 72.05 68.40 64.75 61.10 57.45 53.80 50.14 29.44 1278.85

TOTAL (B) 0.00 17.06 44.25 44.25 44.25 65.36 97.60 93.95 90.30 86.65 83.00 79.35 75.70 72.05 68.40 64.75 61.10 57.45 53.80 50.14 29.44 1278.85

Surplus

/Deficit 0.00 -17.06 -44.25 351.75 351.75 330.64 357.80 361.45 365.10 437.06 440.71 444.36 526.57 530.22 533.87 627.86 631.51 635.16 742.70 746.35 767.06 9120.59

CUMULATIVE

SURPLUS/ DEFICIT

0.00 -17.06 -61.31 290.44 642.19 972.83 1330.63 1692.07 2057.17 2494.23 2934.94 3379.30 3905.86 4436.08 4969.95 5597.81 6229.32 6864.48 7607.18 8353.53 9120.59

Recovery

/Repayment (A/B)

0.00 0.00 0.00 8.95 8.95 6.06 4.67 4.85 5.04 6.04 6.31 6.60 7.96 8.36 8.81 10.70 11.34 12.06 14.81 15.88 27.06 8.13

Debt Charges

/Devt. Charges (B/A)

0.00 0.00 0.00 0.11 0.11 0.17 0.21 0.21 0.20 0.17 0.16 0.15 0.13 0.12 0.11 0.09 0.09 0.08 0.07 0.06 0.04 0.12



6.4 SOLID WASTE MANAGEMENT

6.4.1 INTRODUCTION

Villupuram is the municipality of about 8.36 sq.Km and maximum of the town is under the

urban use. As per 2001 census, the total population of the town is about 95,459 persons.

Villupuram town generates 42 MT of Solid Waste per day out of this nearly 40 MT of the

Solid Waste being collected, transported and disposed daily, which works to per capita

generation of 420 gms/ day. The efficiency of the present mechanism can able to collect

95% of the total waste generated in the town. The town is not provided with proper

disposal yard and it is required to propose a new one for the development of the town.


At present, there is no full-fledged compost yard facility is available for solid waste dumping

and the waste is generally disposed in the NH 45 Road Compost Yard 1KM away from the

town centre, which occupy an area of 5.42 acres. The existing compost yard is not provided

with adequate infrastructure facilities such as road, Weigh Bridge, Waste Segregation

platform, mechanical sewer and security room. Under Vision Plan

proposal under scrutiny for the purchase of 15 acres of land Kakuppam Village located 9 km

East from the necessary proposals are submitted for Pollution Board Clearance. Current

practice of Solid waste management is simply dumping in an open yard. As there are no

composting the waste remains as waste thus generating environmental Solid waste

problems as well as stinky environment. It is very close to existing residential colonies and

there is a stiff resistance from this colony people on the use of this site for composting.

Under the circumstance, the Local body was to push through to identify a new compost

yard with an extent of 15 acres at Kakuppam village.

6.4.3 COMPONENTS



The project basically involves 3 phases in which improvement of collection & Transportation

is in the first part, setting of compost plant and improvement of land fill site is in the next

consecutive level. From the current practice, no revenue is generated from the sale of

manure and sale of recyclable waste which is generated out of the solid waste collected

from the town. The proposed project cost could be equated from the revenue gained out of

sale of the compost. Thus the total revenue generated out will be around Rs.386.48 Lakhs

at the end of 2026.


This project cost is calculated with the works involved such as Improvement of collection &

Transportation, setting up of compost Yard, Improvement of land fill site. The development

cost is Rs. 168.00 lakhs. This amount is proposed to be sourced from the finance institutions

such as TUFIDCO or under the IDSMT Scheme.

6.4.5 EXPENSES

This project activity has Improvement of Collection & Transportation, Setting up of Compost

plant, Improvement of land fill site are executed from the total amount of Rs.168.00 Lakhs.


S.No PROJECT COST- in Lakhs

Development Cost TOTAL

1 Purchase of Dumper placer, dumper pins & auto tippers

47.00

2 Construction of transfer station 10.00

3 Vermi Compost Shed 8.00

4 Compost Yard 71.00

5 Information, education & communication 32.00

Total 168.00




REPAYMENT SCHDULE - CASH INFLOW Rs in lakhs

No. of years for Repayent: 20




Loan Repayment


Total Repayment

168.00 2007 0.00 0.00 0.00 168.00 2008 0.00

2008 8.84 0.00 8.84 159.16 2009 8.84

2009 8.84 0.00 8.84 150.32 2010 8.84

2010 8.84 0.00 8.84 141.47 2011 8.84

2011 8.84 0.00 8.84 132.63 2012 8.84

2012 8.84 10.94 19.78 123.79 2013 19.78

2013 8.84 10.21 19.05 114.95 2014 19.05

2014 8.84 9.48 18.33 106.11 2015 18.33

2015 8.84 8.75 17.60 97.26 2016 17.60

2016 8.84 8.02 16.87 88.42 2017 16.87

2017 8.84 7.29 16.14 79.58 2018 16.14

2018 8.84 6.57 15.41 70.74 2019 15.41

2019 8.84 5.84 14.68 61.89 2020 14.68

2020 8.84 5.11 13.95 53.05 2021 13.95

2021 8.84 4.38 13.22 44.21 2022 13.22

2022 8.84 3.65 12.49 35.37 2023 12.49

2023 8.84 2.92 11.76 26.53 2024 11.76

2024 8.84 2.19 11.03 17.68 2025 11.03

2025 8.84 1.46 10.30 8.84 2026 10.30

2026 8.84 0.73 9.57 0.00 2027 9.57

168.00 87.54 255.54 255.54


amount of Rs. 168.00 Lakhs for the base year 2008.

6.4.6 REVENUE



After the project got completed the revenue can be generated by selling the manure

produced and by sale of recyclable waste. It is assumed that about 10% of the total

garbage is converted into manure i.e.1095 tons per year taking a base rate of Rs. 1000 per

ton. Also recyclable waste accounts to 5% of total garbage. For calculation purpose 0.25

tons of wastes are sold as a recyclable waste per day. Therefore revenue generated by

means of selling recyclable waste in a year is Rs. 4.56 lakhs considering Rs. 5000 per ton.

The total recovery by means of sale of manure & recyclable waste is about Rs.15.51 Lakhs

per annum. Base rate has been arrived for the initial 3 years by considering the prevailing

market rate and it is proposed to increase 10% for the consecutive 3 years through out the

repayment period.

6.4.7 DEBT SERVICES

Debt servicing for this project starts with principle in the year 2008 (of Rs.8.84 Lakhs) and

the interest from 2012 (of Rs.10.94 Lakhs). The total debt serving for the project works out

at Rs.255.54 Lakhs for a loan amount of Rs.168.00 Lakhs and total debt services are 168 :

256 (rounded).

6.4.8 CASH FLOW

In this project we have a surplus Cash flow throughout the repayment period and the

recovery vs repayment ratio starts at 1.75 in the year 2008 and those of the project it is

1.51 where as the rate of debt charges and recovery remains under 1.12 indicating the

project revenue is surplus over the debt servicing.





RECOVERY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

sale of manure

0.00 10.95 10.95 10.95 12.05 12.05 12.05 13.25 13.25 13.25 14.57 14.57 14.57 16.03 16.03 16.03 17.64 17.64 17.64 19.40

sale of recyclable waste

0.00 4.56 4.56 4.56 5.02 5.02 5.02 5.52 5.52 5.52 6.07 6.07 6.07 6.68 6.68 6.68 7.34 7.34 7.34 8.08

TOTAL 0.00 15.51 15.51 15.51 17.06 17.06 17.06 18.77 18.77 18.77 20.64 20.64 20.64 22.71 22.71 22.71 24.98 24.98 24.98 27.48




RECOVERY

Sale of manure

0.00 10.95 10.95 10.95 12.05 12.05 12.05 13.25 13.25 13.25 14.57 14.57 14.57 16.03 16.03 16.03 17.64 17.64 17.64 19.40 272.86

sale of recyclable

waste 0.00 4.56 4.56 4.56 5.02 5.02 5.02 5.52 5.52 5.52 6.07 6.07 6.07 6.68 6.68 6.68 7.34 7.34 7.34 8.08 113.63

TOTAL (A) 0.00 15.51 15.51 15.51 17.06 17.06 17.06 18.77 18.77 18.77 20.64 20.64 20.64 22.71 22.71 22.71 24.98 24.98 24.98 27.48 386.48

REPAYMENT

Debt charges 0.00 8.84 8.84 8.84 8.84 19.78 19.05 18.33 17.60 16.87 16.14 15.41 14.68 13.95 13.22 12.49 11.76 11.03 10.30 9.57 255.54

TOTAL (B) 0.00 8.84 8.84 8.84 8.84 19.78 19.05 18.33 17.60 16.87 16.14 15.41 14.68 13.95 13.22 12.49 11.76 11.03 10.30 9.57 255.54

Surplus / Deficit

0.00 6.67 6.67 6.67 8.22 -2.72 -1.99 0.44 1.17 1.90 4.51 5.24 5.97 8.76 9.49 10.22 13.22 13.95 14.68 17.91 130.95


0.00 6.67 13.34 20.00 28.22 25.50 23.51 23.95 25.12 27.02 31.53 36.76 42.73 51.49 60.98 71.20 84.42 98.36 113.04 130.95

Recovery / Repayment

(A/B) 0.00 1.75 1.75 1.75 1.93 0.86 0.90 1.02 1.07 1.11 1.28 1.34 1.41 1.63 1.72 1.82 2.12 2.26 2.42 2.87 1.51

Debt Charges / Devt. Charges

(B/A) 0.00 0.57 0.57 0.57 0.52 1.16 1.12 0.98 0.94 0.90 0.78 0.75 0.71 0.61 0.58 0.55 0.47 0.44 0.41 0.35 0.66



6.5 OFFICE CUM SHOPPING COMPLEX

6.5.1 INTRODUCTION

Villupuram town is a district headquarters town. It is also a major urban centre and

commercial centre for a vast hinterland of the district Villupuram. It is an important

transportation nodal centre as the broad and metre guage railway lines and NH 45 and NH

45 a pass through this town. These national highways and major municipal roads in the

centre of the town are commercially developed. The Muncipal Kalyana Mandapam situated

in Pandit Jawaharlal Nehru Road which is a major commercial road running from east to

west in southern part of the town. The location of this kalyanamandapam is a potential land

but developed as a kalyanamandapam in ground level only.


The site within which the municipal kalyanamandapam is put up is a prime and valuable

urban site. It can have two proposals. One proposal is on the intensification of the use of

this site. It is necessitated as it can fetch more revenue to the Municipality. Thus, the first

floor to be put, after finding out the feasibility corrective measures, will be used for

shopping cum office complex with separate entries. A Lodge, which is also an remunerative

activity in that locality can also be thought. The other proposal is on improving the

kalyanamandapam with good finishing like tiled floorings, furnishings, fittings and lighting

arrangements within and outside the buildings. The good finish and aesthetic nature of the

kalyanamandapam will attract the public to conduct the marriages, meetings, social and

public functions etc. This way the improved kalyana mandapam will fetch additional revenue

to the Municipality.

6.5.3 COMPONENTS

The existing Kalayanamandapam is proposed to improve at a cost of Rs. 15 Lakhs. It is

suggested that Office cum shopping complex with better infrastructure facilities can be

constructed in the first floor at an extent of 6,000sq.ft over the existing

Kalayanamandapam. It is proposed to construct each shop with an area of 250sq.ft at a

prevailing construction cost of Rs. 1000 per sq.ft. Approximately it is designed to have 16



numbers of shops occupy an area of 4000 sq.ft. Remaining area (2000 sq.ft) is proposed to

rent it for office purpose. It is estimated that nearly Rs. 79.50 Lakhs of capital is required to

implement this project.


The total project cost has to be sourced from the financial institutions such as TUFIDCO

under the IDSMD Scheme for about Rs. 79.50 Lakhs. This cost involves the establishment

cost for office & shopping complex and improvement of existing Kalayanamandapam. The

total estimated cost involves the operation and maintenance cost with the inflation.

6.5.5 EXPENSES

Development cost for the project includes construction cost of office & shops and 2% of the

total project cost as O&M charges and 4% of the total project cost as inflation charges.

Thus the total project cost arrived is Rs.132.71 Lakhs.



1 Improvement of Kalayanamandapam 15.00

2 Construction of Office cum shopping Complex 60.00


1 O&M Charges @ 2% of (a) 1.50


Over heads (b) 4.50


The total cost is to be borrowed from TUFIDCO, TUUIFSL & Similar agencies at the interest

rate of 12.5% per annum for a repayment period of about 20yrs.




REPAYMENT SCHDULE - CASH INFLOW Rs. in Lakhs




Repayment starting

year: 2012

Loan Repayment


Total

Repayment

79.50 2007 0.00 0.00 0.00 79.50 2007 0.00

2008 4.18 9.94 14.12 75.32 2008 14.12

2009 4.18 9.41 13.60 71.13 2009 13.60

2010 4.18 8.89 13.08 66.95 2010 13.08

2011 4.18 8.37 12.55 62.76 2011 12.55

2012 4.18 7.85 12.03 58.58 2012 12.03

2013 4.18 7.32 11.51 54.39 2013 11.51

2014 4.18 6.80 10.98 50.21 2014 10.98

2015 4.18 6.28 10.46 46.03 2015 10.46

2016 4.18 5.75 9.94 41.84 2016 9.94

2017 4.18 5.23 9.41 37.66 2017 9.41

2018 4.18 4.71 8.89 33.47 2018 8.89

2019 4.18 4.18 8.37 29.29 2019 8.37

2020 4.18 3.66 7.85 25.11 2020 7.85

2021 4.18 3.14 7.32 20.92 2021 7.32

2022 4.18 2.62 6.80 16.74 2022 6.80

2023 4.18 2.09 6.28 12.55 2023 6.28

2024 4.18 1.57 5.75 8.37 2024 5.75

2025 4.18 1.05 5.23 4.18 2025 5.23

2026 4.18 0.52 4.71 0.00 2026 4.71

79.50 94.14 178.88 178.88



6.5.6 REVENUE



since Kalayanamandapam is already exists there is no revenue is projected for making cash

out flow for this project Only revenue from office and shops is considered. Office cum shops

is designed for 16 nos. It is proposed to rent a shop at Rs. 20 per sq.ft per month. The

revenue generated per month by way of rent from shops is around Rs. 80,000.

Therefore annually Rs. 9.60 Lakhs of revenue can be mobilized out of 16 shops. Office is

proposed to have a working area of 2000 sq.ft and a monthly rent of Rs. 15,000 is

proposed to collect. Therefore it accounts Rs. 1.80 Lakhs per annum. Therefore annually Rs.

11.40 Lakhs of revenue can be mobilized out of this project. Base rate arrived at this year

will be revised on every consecutive 3 years of 10% through out the repayment period. The

total recovery arrived at 2026 will be Rs.284.07 Lakhs. The surplus amount out of this

project at the end of 2026 is Rs.105.19 Lakhs.

6.5.7 DEBT SERVICES

Debt servicing will start with the interest in the year 2008 (of Rs.9.94 Lakhs). The total debt

serving for the project works out to be Rs.178.88 Lakhs for a loan amount of Rs.79.50

Lakhs and total debt services are 79:179(round off).

6.5.8 CASH FLOW

In this project the cash flow is deficit till 2011 to an amount of 6.61 Lakhs. Later this project

experiences a surplus of Rs. 0.51 Lakhs during 2012. At the end of 2026 it ends to a surplus

of Rs. 15.49 Lakhs. Recovery & Repayment ratio starts with 0.81 in the year 2008 and for

the project is 1.59. Meanwhile the rate of debt charges and recovery is over 1.00 till 2011

later it remains less than 0.90 indicating the project revenue is surplus over the debt

servicing. For the entire repayment period ratio of debt charges and recovery is 0.63.




CASH OUTFLOW Rs in Lakhs

RECOVERY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Revenue from Office and Shops

0.00 11.40 11.40 11.40 12.54 12.54 12.54 13.79 13.79 13.79 15.17 15.17 15.17 16.69 16.69 16.69 18.36 18.36 18.36 20.20

TOTAL 0.00 11.40 11.40 11.40 12.54 12.54 12.54 13.79 13.79 13.79 15.17 15.17 15.17 16.69 16.69 16.69 18.36 18.36 18.36 20.20




RECOVERY

Revenue from Office and Shops

0.00 11.40 11.40 11.40 12.54 12.54 12.54 13.79 13.79 13.79 15.17 15.17 15.17 16.69 16.69 16.69 18.36 18.36 18.36 20.20 284.07

TOTAL (A) 0.00 11.40 11.40 11.40 12.54 12.54 12.54 13.79 13.79 13.79 15.17 15.17 15.17 16.69 16.69 16.69 18.36 18.36 18.36 20.20 284.07

REPAYMENT

Debt charges 0.00 14.12 13.60 13.08 12.55 12.03 11.51 10.98 10.46 9.94 9.41 8.89 8.37 7.85 7.32 6.80 6.28 5.75 5.23 4.71 178.88

TOTAL (B) 0.00 14.12 13.60 13.08 12.55 12.03 11.51 10.98 10.46 9.94 9.41 8.89 8.37 7.85 7.32 6.80 6.28 5.75 5.23 4.71 178.88

Surplus /Deficit

0.00 -2.72 -2.20 -1.68 -0.01 0.51 1.03 2.81 3.33 3.86 5.76 6.28 6.80 8.85 9.37 9.89 12.08 12.61 13.13 15.49 105.19


0.00 -2.72 -4.92 -6.60 -6.61 -6.10 -5.06 -2.25 1.08 4.94 10.69 16.98 23.78 32.63 42.00 51.89 63.97 76.58 89.71 105.19

Recovery/ Repayment

(A/B) 0.00 0.81 0.84 0.87 1.00 1.04 1.09 1.26 1.32 1.39 1.61 1.71 1.81 2.13 2.28 2.45 2.93 3.19 3.51 4.29 1.59

Debt Charges


0.00 1.24 1.19 1.15 1.00 0.96 0.92 0.80 0.76 0.72 0.62 0.59 0.55 0.47 0.44 0.41 0.34 0.31 0.28 0.23 0.63



6.6 STREET LIGHTS.

6.6.1 INTRODUCTION

Energy savings means energy producing. It is a well known fact and it is very much

essential for any city to reduce expenditure and generate resources. If so the resource will

be available for spend on other developmental activities. Villupuram town’s financial

situation displays that there is considerable amount of money spend on the electricity

charges. Street Lighting is one of the major consumption of energy for the Local Body. It is

a recurring activity where in the local body has to pay regular by this energy tariff to TNEB.

Conservation of energy is the national agenda, to cope with the peace of development and

conservation is the need of the hour. Increasing population in the city needs the city

authority to find means and ways to reduce the cost in supply and increase the efficiency.

The technology now had come up to reduce this tariff by altering the consumption pattern

by adopting energy saving equipments like Timmer, Dimmer and high tech Chokes. By

doing so about 40% of the consumption of energy could be saved. It requires marginal

investment of altering existing fittings. It is assessed from the records that many private

agencies shown interest to take up change over of current system to new system of install

& maintenance totally by private parties.


There are about 1752 tube lights in the municipality and by opting to energy saving

methods about 40% of the energy is saved by Lumen control, Energy Efficient illuminaries.

This employs specially designed low impedance circuit which reduces the running current

and voltage to an optimum level in the load circuits without ejecting the other parameters

which caused to save energy about 25% to 40% in lighting loads. Dimmer introduced in

power saving switch is most superior to other control devices. Automatic Timmer is

introduced in the municipality in order to reduce the power supply in the mornings. Thus we

could save ample amount of energy.



6.6.3 COMPONENTS

The proposed project is of installation of energy saving street lights by changing the existing

40W lights into 36W lights and also introducing dimmer option for all the sodium vapour

lamps. This project involves Switching off Alternate lamps during off Peak hour in high mask

lamps, Automation in Switching On / Off, Using Timers and replacement of the existing 40

Watts choke with energy efficient electronics choke. It is roughly worked out that the total

cost estimated for the project is Rs.6.13 Lakhs. By introducing this option, there is scope for

energy savings of almost 40 % which is quite substantial. The expected cost savings would

be around Rs.7.54 Lakhs / year and the investment needed to achieve this savings is only

Rs.6.13 Lakhs which is a one time investment.


The project cost has to be sourced from the finance institutions for the total project cost of

about Rs.6.13 Lakhs. This cost is used for Establishment of Energy saving street lights.

6.6.5 EXPENSES

This project is a short term project and the inflation and O&M Charges will not be calculated

for it. So the total project cost is expected to be only Rs.6.13 Lakhs.



1 Replacement of 40w tube lights to 36w tube lights 0.70

2 Fixing of Dimmer for Sodium Vapour Lamps 0.53

3 Installation of Timer 3.30

4 Replacing 40w choke into electronic choke 1.60

GRAND TOTAL 6.13

The total cost is to be borrowed from TUFIDCO, TUUIFSL & Similar agencies at the interest

rate of 8.25% per annum for a repayment period of about 20yrs in which moratorium

period is of 5 yrs.








Repayment starting

year: 2012

Loan Repayment


Total

Repayment

6.13 2007 0.00 0.00 0.00 6.13 2007 0.00

2008 0.32 0.00 0.32 5.81 2008 0.32

2009 0.32 0.00 0.32 5.48 2009 0.32

2010 0.32 0.00 0.32 5.16 2010 0.32

2011 0.32 0.00 0.32 4.84 2011 0.32

2012 0.32 0.40 0.72 4.52 2012 0.72

2013 0.32 0.37 0.70 4.19 2013 0.70

2014 0.32 0.35 0.67 3.87 2014 0.67

2015 0.32 0.32 0.64 3.55 2015 0.64

2016 0.32 0.29 0.62 3.23 2016 0.62

2017 0.32 0.27 0.59 2.90 2017 0.59

2018 0.32 0.24 0.56 2.58 2018 0.56

2019 0.32 0.21 0.54 2.26 2019 0.54

2020 0.32 0.19 0.51 1.94 2020 0.51

2021 0.32 0.16 0.48 1.61 2021 0.48

2022 0.32 0.13 0.46 1.29 2022 0.46

2023 0.32 0.11 0.43 0.97 2023 0.43

2024 0.32 0.08 0.40 0.65 2024 0.40

2025 0.32 0.05 0.38 0.32 2025 0.38

2026 0.32 0.03 0.35 0.00 2026 0.35

6.13 3.19 9.32 9.32


amount of Rs.6.13Lakhs for the base year 2007.



6.6.6 REVENUE

This project will not be having any revenue after installation of the energy saving street lights but the amount of electricity

consumed in the present situation will be less than that of the proposed option. The saved amount will be around Rs.7.54 Lakhs

which could be used for other development projects in the Municipality. So the total amount saved at the end of 2026 will be around

Rs.151.56 Lakhs i.e. the loan obtained in 2007 can be repaid by the amount saved in the project. From the Table below we can find

the savings amount per year is more than the Debt charges and the total savings gained at the end of the repayment period is

Rs.142.23 Lakhs.

Table 6.24: DEBT / SAVINGS STATEMENT

DEBT/ SAVINGS STATEMENT Rs. In Lakhs


Debt charges

0.00 0.32 0.32 0.32 0.32 0.72 0.70 0.67 0.64 0.62 0.59 0.56 0.54 0.51 0.48 0.46 0.43 0.40 0.38 0.35 9.32

Savings 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 7.58 151.56

TOTAL (B) 7.58 7.26 7.26 7.26 7.26 6.86 6.88 6.91 6.94 6.96 6.99 7.02 7.04 7.07 7.10 7.12 7.15 7.18 7.20 7.23 142.23

So we can assume the Total surplus amount gained out of this project at the end of 2026 is Rs.142.23 Lakhs.



6.6.7 DEBT SERVICES

Debt servicing for this project starts with principle in the year 2008 (of Rs.0.32 Lakhs) and the interest from 2012 (of Rs.0.40 Lakhs).

The total debt serving for the project works out at Rs.9.32 Lakhs for a loan amount of Rs.6.13 Lakhs and total debt services are 6 : 9

(rounded of).

6.6.8 PRIVATISATION

Privatization of street light project will be cost effective for the Local body. The conditions for this project will be the total initial

investment should be done by the private person. About 50% of the total cost saved by this project should be shared with the local

body. The Private organization has the privilege to enjoy the benefits for 5 years. At the beginning of 6th year the total cost saved

will be enjoyed by the revenue to the local body. Thus the total revenue gained from 2018 till the end of 2026 will be Rs.68.20 Lakhs

without any initial investment.



6.7 IMPROVEMENT OF SHOPS

6.7.1 INTRODUCTION

Villupuram is an important administration centre with the population of 95,459 as per

2001 census and it is a fast growing urban centre in the northern part of Tamilnadu. It

has got one of the important railway junction connecting various important towns of

Tamilnadu and other states of India. The NH 45 and NH 45A runs through the town. It

is a major commercial centre famous for the wholesale trade of Paddy, Groundnut,

Sugarcane, Cotton etc., The major roads and municipal roads in the centre of the town

have large number of shops and trading activities.


Since Villupuram is a major commercial and trading centre in the district, planned

commercial complexes are required of the time and proper spatial arrangement of the

activities. To cater this municipality has owned some shops abutting the Kamarajar

Street. This road is a wider and major road in Villupuram with commercial activities. The

existing shops fetch some revenue to the local body by means of rents but the shops

are not potentially used. As to maximize the returns from the scarce urban land of these

shops and set right the disorderly spatial arrangement, the present shops may be

remodeled and reconstructed so that more shops are constructed in an orderly manner.

This way more revenue will add to the existing revenue base of the Villupuram

Municipality. The rental revenue and deposits of the new shops will strengthen the

revenue base of the Municipality. Already local body owned some shops and rented to

private people in this site. Municipality felt that existing shops can be renovated by

constructing shopping complex with better facilities since this site is the prime location

for mobilizing more resources to the local body by constructing shopping complex.

6.7.3 COMPONENTS

The existing Shops in the Kamarajar Street are proposed to improve at a cost of

Rs. 50 Lakhs. It is suggested that shopping complex with better infrastructure facilities

can be constructed G+1 floor at an extent of 5,000sq.ft in place of existing shops. It is



proposed to construct each shop with an area of 250sq.ft at a prevailing construction

cost of Rs. 1000 per sq.ft. Approximately it is designed to have 20 numbers of shops

occupy an area of 5000 sq.ft with 10 shops in ground floor and 10 shops in first floor. It

is estimated that nearly Rs. 53 Lakhs of capital is required to implement this project

including O&M and Inflation.


The total project cost has to be sourced from the financial institutions such as TUFIDCO

under the IDSMD Scheme for about Rs. 53.00 Lakhs. This cost involves the

establishment cost for office & shopping complex and improvement of existing

Kalayanamandapam. The total estimated cost involves the operation and maintenance

cost with the inflation.

6.7.5 EXPENSES

Development cost for the project includes construction cost of office & shops and 2% of

the total project cost as O&M charges and 4% of the total project cost as inflation

charges. Thus the total project cost arrived is Rs.53.30 Lakhs.



1 Improvement of shops 50.00


1 O&M Charges @ 2% of (a) 1.00


Over heads (b) 3.00


The total cost is to be borrowed from TUFIDCO, TUUIFSL & Similar agencies at the

interest rate of 12.5% per annum for a repayment period of about 20yrs.









Loan Repayment


Total

Repayment

53.00 2007 0.00 0.00 0.00 53.00 2007 0.00

2008 2.79 6.63 9.41 50.21 2008 9.41

2009 2.79 6.28 9.07 47.42 2009 9.07

2010 2.79 5.93 8.72 44.63 2010 8.72

2011 2.79 5.58 8.37 41.84 2011 8.37

2012 2.79 5.23 8.02 39.05 2012 8.02

2013 2.79 4.88 7.67 36.26 2013 7.67

2014 2.79 4.53 7.32 33.47 2014 7.32

2015 2.79 4.18 6.97 30.68 2015 6.97

2016 2.79 3.84 6.63 27.89 2016 6.63

2017 2.79 3.49 6.28 25.11 2017 6.28

2018 2.79 3.14 5.93 22.32 2018 5.93

2019 2.79 2.79 5.58 19.53 2019 5.58

2020 2.79 2.44 5.23 16.74 2020 5.23

2021 2.79 2.09 4.88 13.95 2021 4.88

2022 2.79 1.74 4.53 11.16 2022 4.53

2023 2.79 1.39 4.18 8.37 2023 4.18

2024 2.79 1.05 3.84 5.58 2024 3.84

2025 2.79 0.70 3.49 2.79 2025 3.49

2026 2.79 0.35 3.14 0.00 2026 3.14

53.00 62.76 119.25 119.25





6.7.6 REVENUE

Shops are designed for 20 nos. It is proposed to rent a shop at Rs. 20 per sq.ft per

month. The revenue generated per month by way of rent from shops is around

Rs. 1,00,000. Therefore annually Rs. 12.00 Lakhs of revenue can be mobilized out of 20

shops. Base rate arrived at this year will be revised on every consecutive 3 years of 10%

through out the repayment period. The total recovery arrived at 2026 will be

Rs.299.02 Lakhs. The surplus amount out of this project at the end of 2026 is Rs.179.77

Lakhs.

6.7.7 DEBT SERVICES

Debt servicing will start with the interest in the year 2008 (of Rs.6.63 Lakhs). The total

debt serving for the project works out to be Rs.119.25 Lakhs for a loan amount of

Rs.53.00 Lakhs and total debt services are 53:119(round off).

6.7.8 CASH FLOW

In this project the cash flow is surplus throughout the repayment period. It starts with a

surplus of Rs. 2.59 during 2008 and ends to a surplus of Rs. 18.12 Lakhs during 2026.

Recovery & Repayment ratio starts with 1.27 in the year 2008 and for the project is

2.51. Meanwhile the rate of debt charges and recovery is remains less than 1. indicating

the project revenue is surplus over the debt servicing. For the entire repayment period

ratio of debt charges and recovery is 0.40.




CASH OUTFLOW Rs in Lakhs

RECOVERY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Revenue from Shops

0.00 12.00 12.00 12.00 13.20 13.20 13.20 14.52 14.52 14.52 15.97 15.97 15.97 17.57 17.57 17.57 19.33 19.33 19.33 21.26

TOTAL 0.00 12.00 12.00 12.00 13.20 13.20 13.20 14.52 14.52 14.52 15.97 15.97 15.97 17.57 17.57 17.57 19.33 19.33 19.33 21.26




RECOVERY

Revenue from Shops

0.00 12.00 12.00 12.00 13.20 13.20 13.20 14.52 14.52 14.52 15.97 15.97 15.97 17.57 17.57 17.57 19.33 19.33 19.33 21.26 299.02

TOTAL (A) 0.00 12.00 12.00 12.00 13.20 13.20 13.20 14.52 14.52 14.52 15.97 15.97 15.97 17.57 17.57 17.57 19.33 19.33 19.33 21.26 299.02

REPAYMENT

Debt charges 0.00 9.41 9.07 8.72 8.37 8.02 7.67 7.32 6.97 6.63 6.28 5.93 5.58 5.23 4.88 4.53 4.18 3.84 3.49 3.14 119.25

TOTAL (B) 0.00 9.41 9.07 8.72 8.37 8.02 7.67 7.32 6.97 6.63 6.28 5.93 5.58 5.23 4.88 4.53 4.18 3.84 3.49 3.14 119.25

Surplus /Deficit

0.00 2.59 2.93 3.28 4.83 5.18 5.53 7.20 7.55 7.90 9.70 10.04 10.39 12.34 12.69 13.04 15.14 15.49 15.84 18.12 179.77


0.00 2.59 5.52 8.80 13.63 18.81 24.34 31.54 39.09 46.98 56.68 66.72 77.12 89.45 102.14 115.18 130.32 145.81 161.65 179.77

Recovery/ Repayment

(A/B)

0.00 1.27 1.32 1.38 1.58 1.65 1.72 1.98 2.08 2.19 2.54 2.69 2.86 3.36 3.60 3.88 4.62 5.04 5.54 6.77 2.51

Debt Charges


0.00 0.78 0.76 0.73 0.63 0.61 0.58 0.50 0.48 0.46 0.39 0.37 0.35 0.30 0.28 0.26 0.22 0.20 0.18 0.15 0.40



6

BUSINESS PLAN – PROJECT PROFILE Introduction: It is been clear from the vision statement collected at the instance of CCP, the stakeholders anticipated that Villupuram town could be a industrial cum transportation node and a tourist center. To achieve this, investments need to be routed at appropriate projects. As the vision statement do not directly lad to a specific project consorted efforts are to be plowed in to achieve the vision. Business Plan is one such efforts to review the projects that are identified in CCP and later implemented and yet to formulate additional innovative projects. The Business Plan looks the local body as a resource center rather than only service provider and tries to emulate projects that are feasible to attract private investments. Consultative Process:

To execute this assignment, a stakeholders meeting was called to assess the new innovative projects that are to be included in the Business Plan preparation. Meeting was held in Villupuram during 27th of July 2006. It was headed by the Municipal Chairman and Commissioner of Villupuram town and it includes the participants like Councilors of all the wards, Municipality officials, key stakeholders, NGOs and various organizations etc. The projects that are listed by the stakeholders are assessed for implementation. The consultants also went around to identify innovative projects in the market. A key decision taken by way of consultation is included in the report. The following are the workable projects proposed and that are considered under the Business Plan for the development of the town to enhance the town as an industrial town while keeping in mind achieving the quality of life of the people in the town.

• Commercial complex at old bus stand

• Expansion of Vegetable market

• Under ground Sewerage Systems

• Solid Waste Management

• Office cum Shopping complex at the first floor of Kalayanamandapam

• Energy saving Measures – Street Lights

• Improvement of shops – Kamarajar Salai

The identified projects are as basic services and specialized service for the improvement of the quality of living of the people of Villupuram town. The details of the above said projects are presented in the subsequent pages following an order in each project such as a brief introduction, need assessment, component courses, and operating parameters according to phase wise, expenses, revenue, debt services, and cash flow.



6.8. Status of Business Plan Projects

Under this assignment 7 projects are identified in Villupuram Municipality. Each project is

backed with cash flow statement describing recoveries out of the project and repayment of loan

(Principle + Interest) over a period of time is worked out elaborately considering the interest

rate and moratorium period which is applicable for obtaining loan. Table 6.32 describes the

cash flow statement worked out for this business plan. At the end of 2027, Rs. 5046.09 lakhs of

money has to be repaid including principle & interest for the loan amount Rs. 2571.51 lakhs at

8.25 % rate of interest for service and 12.5% for commercial projects including a moratorium

period of 5 years and 1 year respectively. A total recovery out of business plan projects is

Rs. 17637.43 lakhs at the end of year 2026. Therefore at the end of the repayment year

business plan projects ends at a surplus of Rs. 12620.78 lakhs.

Table. 6.31: Loan Details of Business Plan Projects

Projects Loan

Raised Recovery Debts

Surplus /

Deficit

Shopping complex - Old bus stand 616.11 3325.11 1386.26 1938.85

Market complex 808.00 3588.25 1818.00 1770.25

UGDS 840.77 9602.94 1249.41 8353.53

SWM 168.00 386.48 255.54 130.95

Office & Shops over Kalayanamandapam 79.50 284.07 178.88 105.19

Energy Saving – Street lights 6.13 151.56 9.32 142.23

Improvement of shops 53.00 299.02 119.25 179.77

Total 2571.51 17637.43 5016.66 12620.78

Share of Debts In Project

36%

25%

2%

28%

0.19%5% 4%

Shopping complex - Old bus stand

Market complex

UGD

SWM

Office & Shops over Kalayanamandapam

street light

Improvement of shops

Share of Recovery In Project

20%54%

2%

2%1%

19%2%

Shopping complex - Old bus standMarket complexUGD

SWMOffice & Shops over Kalayanamandapamstreet lightImprovement of shops



Out of seven identified projects construction of UGD takes nearly 33 percent of the total

loan amount. Improvement of Vegetable market also shares 31% of loan amount

accounts to Rs. 808 lakhs. Even then recoveries from UGD top the list by bagging

54% of total recoveries (Rs. 9602 lakhs) during the repayment period. It is followed by

market of Rs. 3588 lakhs by means of user charges during the repayment period.

Table. 6.32. Cash Flow Statement for the Business Plan Projects

Year Recovery Repayment Cumulative Surplus / Deficit

2007 7.58 0.00 7.58

2008 323.93 302.73 21.20

2009 323.93 319.68 4.25

2010 719.93 309.44 410.49

2011 751.56 299.20 452.37

2012 751.56 321.41 430.16

2013 810.96 342.65 468.31

2014 845.76 328.01 517.76

2015 845.76 313.36 532.40

2016 914.07 298.71 615.36

2017 952.35 284.06 668.29

2018 952.35 269.41 682.93

2019 1030.91 254.77 776.14

2020 1073.01 240.12 832.89

2021 1073.01 225.47 847.54

2022 1163.35 210.82 952.53

2023 1209.67 196.18 1013.49

2024 1209.67 181.53 1028.14

2025 1313.56 166.88 1146.68

2026 1364.51 152.23 1212.27

2027 796.50 29.44 767.06

TOTAL 18433.93 5046.09 13387.84

During the entire repayment period recoveries are more than the repayment for the loan

raised, maximum surplus is achieved during the year 2026 (ie. Rs. 1212.27 lakhs). In

2009 surplus of Rs. 4.25 lakhs is the least compared to a repayment period of 20 years.



Recovery Vs Repayment

0

200

400

600

800

1000

1200

1400

1600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Year

Rs. in lakhs

Recovery Repayment



7 VILLUPURAM MUNICIPAL FINANCE

7.0 Villupuram Municipal Finance

The finances of ULBs are operated under the general account of “Income and

Expenditure”. Some times these accounts are classified depending on the sources as

“revenue” and “capital”. Therefore, the outgoing items relate to “revenue expenditure”

and “capital expenditure” and, the incoming to “revenue receipt” and “capital receipt”.

However, for a medium sized municipality like Villupuram, the capital expenditure is not

to be sizable, which otherwise may effect the municipal finance heavily, the “revenue”

and “capital” (receipt and expenditure) are not dealt separately. Therefore, municipal

finance is classified as “Income” and “Expenditure”.

7.1 Revenue receipts

Under this head taxes, fees, grants, income from properties and special services are

included. The amount under most of these heads is growing however their share to the

revenue receipts in respective years is unstable. Revenue receipts accounts to Rs.656

lakhs in 2000-01 grown to Rs.690 lakhs in 2005-06 with 3 percent average annual

growth rate over past 6 years.

i) Taxes - own sources - Taxes are collected by the Municipality and also by

other agencies. Municipality collects property tax and profession tax. In 2005-06, the tax

receipts accounted for Rs.231 Lakhs.

ii) Taxes - Assigned Revenue - Taxes collected by other agencies include

entertainment tax, duty on transfer of property, taxes on carts and animals which

amounted to Rs. 78 1akhs in 2005-06.



Table 7.1 Revenue Receipts: 2000-01 to 2005-06, Villupuram (Rs in lakhs)

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06 Sl.

No. Code No.

Actuals Budget

INCOME STATEMENT

1 Property Tax 170.80 155.68 183.29 145.74 199.58 209.58

2 Other Taxes

a. Professional Tax 21.38 22.30 22.85 20.71 20.34 21.36

b. Other Taxes

(excluding Professional Tax) 0.00 0.03 0.55 0.10 0.11 0.15

3 Assigned Revenue 87.88 55.17 109.73 88.41 83.46 78.50

4 Devolution Fund 92.67 102.54 159.77 162.71 82.18 104.40

5 Service Charges and Fees

a. Water Charges 17.19 17.71 8.69 13.84 17.50 18.50

b. Service Charges and Fees (excluding Water Charges)

65.69 70.46 91.73 141.06 110.66 129.39

6 Grants and Contributions 100.68 37.03 7.69 0.00 0.00 0.00

7 Sale and Hire Charges 53.69 57.23 61.80 85.79 64.48 81.24

8 Other Income 0.96 7.77 1.37 4.01 0.25 0.30

9 Deposits & Advances 45.51 33.91 119.39 23.17 46.97 46.60

Total Income 656.45 559.83 766.86 685.54 625.53 690.02

Table 7.2 Revenue Receipts as percentage of Total Revenue Receipts (in %)

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06 Average Sl.

No. Code No.

Actuals Budget

INCOME STATEMENT

1 Property Tax 26.02 27.81 23.90 21.26 31.91 30.37 26.88

2 Other Taxes

a. Professional Tax 3.26 3.98 2.98 3.02 3.25 3.10 3.26

b. Other Taxes

(excluding Professional Tax) 0.00 0.01 0.07 0.01 0.02 0.02 0.02

3 Assigned Revenue 13.39 9.85 14.31 12.90 13.34 11.38 12.53

4 Devolution Fund 14.12 18.32 20.83 23.73 13.14 15.13 17.54


a. Water Charges 2.62 3.16 1.13 2.02 2.80 2.68 2.40

b. Service Charges and Fees

(excluding Water Charges) 10.01 12.59 11.96 20.58 17.69 18.75 15.26

6 Grants and Contributions 15.34 6.61 1.00 0.00 0.00 0.00 3.83

7 Sale and Hire Charges 8.18 10.22 8.06 12.51 10.31 11.77 10.18

8 Other Income 0.15 1.39 0.18 0.58 0.04 0.04 0.40

9 Deposits & Advances 6.93 6.06 15.57 3.38 7.51 6.75 7.70

Total Income 100.00 100.00 100.00 100.00 100.00 100.00 100.00



0

100

200

300

400

500

600

700

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Property Tax Other Tax Non-Tax SFC Devolution Assigned Revenue Other grants

Revenue Receipts

0

100

200

300

400

500

600

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Salaries O&M Debt Servicing

Revenue Expenses

iii) Non-tax Revenue - This head includes income from Fees, Properties, Special

services & Miscellaneous. This head amounts to Rs. 147 lakhs in the year 2005-06.

iv) Grants & Contributions - Following 74th CAA grants in aid of revenue

expenditure got boosted, since ’97-98’; the effect of the CAA is substantially felt in ULBs

resource. It accounts to Rs. 104 lakhs during the year 2005-06 also grants and

contribution accounts for Rs. 8 Lakhs in 2002-03.



7.2 Revenue Expenditure

Villupuram municipality uses the resources for general administration, operation and

maintenance of services along with public works, obligatory, discretionary and

remunerative and education. Revenue expenditure during 2000-01 was Rs.483 lakhs

and in 2005-06 it accounts to Rs. 494 lakhs. It has grown nearly 1.5% every year.

i) Personal Cost - This constitutes one of the major components of expenditure

accounting for Rs. 251 lakhs during 2005-06. It goes on increasing from Rs. 208 lakhs

in 2000-01 to Rs. 251 lakhs in 2005-06 at a average growth of 5 percent each year.

ii) Operating Expenses - This head includes the O&M of core services and it

accounts to Rs. 79 lakhs in 2005-06 at a share of 16 percent of total expenses.

iii) Administrative Expenses – In this nearly Rs. 67 lakhs of money spend during

2005-06. It achieve a rapid pace (77% average growth) over past 6 yrs. In an average it

takes a share of 8% of total expenses.

Table 7.3 Break – up of Revenue Expenditure: 1999-00 to 2003-04 (Rs in Lakhs)

Sl. Code No. 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06



No. Actuals Budget

EXPENDITURE STATEMENT

1 Personnel Cost 208.74 203.24 207.77 206.70 182.35 251.95

2 Terminal and Retirement Benefits

45.79 47.18 47.37 49.74 42.60 20.65

3 Operating Expenses 143.76 153.18 178.54 113.42 97.90 79.40

4 Administrative

Expenses 16.88 13.79 57.54 26.74 63.92 67.00

5 Finance Expenses

a. Interest on Loans 57.07 77.35 90.12 61.15 64.94 34.04

6 Deposits & Advances 10.83 25.95 27.71 8.25 40.32 41.60

Total Expenses 483.07 520.69 609.05 466.00 492.03 494.64

Table 7.4 Revenue Expenditure as percentage of Total Revenue Expenses (in %)

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

Average Sl.

No. Code No.

Actuals Budget


1 Personnel Cost 43.21 39.03 34.11 44.36 37.06 50.94 41.45


9.48 9.06 7.78 10.67 8.66 4.17 8.30

3 Operating Expenses 29.76 29.42 29.31 24.34 19.90 16.05 24.80

4 Administrative

Expenses 3.49 2.65 9.45 5.74 12.99 13.55 7.98

5 Finance Expenses

a. Interest on Loans 11.81 14.86 14.80 13.12 13.20 6.88 12.44

6 Deposits & Advances 2.24 4.98 4.55 1.77 8.19 8.41 5.03

Total Expenses 100.00 100.00 100.00 100.00 100.00 100.00 100.00

The debt and overdue of the municipality in terms of outstanding Principal is from

Government of Tamil Nadu, MUDF/ TNUDF and TUFIDCO to the tune of Rs. 396 lakhs in

the year 2003-04.

Table 7.5. Loan Outstanding – Villupuram Town

(Rs. in Lakhs)



Sl. No.

Loan Particulars

Total Amount

Drawn

Loan Period

Rate of Interest

Total Principal

&

Interest Repaid

Outstanding as on March

31, 2004

All financial figures in Rs. Lakhs

1 Mudf / Tnudf 99.00 5 15.50 0.00 99.00

2 Others (Specify) - TUFIDCO 297.00 8 15.00 262.83 34.17

Total 396.00 262.83 133.17

7.3 Share of Income & Expenditure – Villupuram Municipality

When aggregated under major heads of income and expenditure it shows

(Table 7.2 & 7.4) major incomes are from property tax and devolution fund which

together accounts for about 30% of total revenue of the municipality (Table 7.4). It is

followed by Assigned revenue at a contribution of 13% to total revenue of the ULB.

Property tax is the single largest resource of the Villupuram town with the average share

of 27% to total revenue over past six years. On expenditure side about 41% spends on

personal cost and 25% on operating expenses. Interest on loans accounts to an average

of 13% of total expenses.

Share of Expenses

50.9%

4.2%

14%

8.4%

6.9%

16.1%

Personnel Cost Terminal and Retirement Benefits

Operating Expenses Administrative Expenses

Finance Expenses Deposits & Advances



Share of Resources

30.4%

3.1%

11.4%15.1%

21.4%

11.8%6.8%

Property Tax Other TaxesAssigned Revenue Devolution FundService Charges and Fees Sale and Hire ChargesDeposits & Advances



7.4 Trend of Income & Expenditure – Villupuram Municipality

Income increased at an average of 2.5% over past few years in other hand expenses

increases at a trend of 1.5 % growths during 2000-01 to 2005-06. All the revenue heads

shows a positive trend especially property tax and assigned revenue shows a trend of 6%

each over the years. Except administrative expenses and personal cost all the other

expenditure heads shows a negative trend. Income & Expenditure trend of the municipality

is shown in the following fig.

Table 7.6. Income and Expenditure under Major heads Growth Trend 2000-01 to 2005-06

( in %)

2001-02 2002-03 2003-04 2004-05 2005-06 Average Sl.

No. Code No.

Actuals Budget

INCOME STATEMENT

1 Property Tax -8.85 17.74 -20.49 36.94 5.01 6.07

2 Other Taxes

a. Professional Tax 4.30 2.47 -9.37 -1.79 5.01 0.13

b. Other Taxes

(excluding Professional Tax) -- 1733.33 -81.82 10.00 36.36 424.47

3 Assigned Revenue -37.22 98.89 -19.43 -5.60 -5.94 6.14

4 Devolution Fund 10.65 55.81 1.84 -49.49 27.04 9.17


a. Water Charges 3.03 -50.93 59.26 26.45 5.71 8.70

b. Service Charges and Fees

(excluding Water Charges) 7.26 30.19 53.78 -21.55 16.93 17.32

6 Grants and Contributions -63.22 -79.23 -100.00 -- -- -80.82

7 Sale and Hire Charges 6.59 7.99 38.82 -24.84 25.99 10.91

8 Other Income 709.38 -82.37 192.70 -93.77 20.00 149.19

9 Deposits & Advances -25.49 252.08 -80.59 102.72 -0.79 49.59

Total Income -14.72 36.98 -10.60 -8.75 10.31 2.64


1 Personnel Cost -2.63 2.23 -0.51 -11.78 38.17 5.09


3.04 0.40 5.00 -14.35 -51.53 -11.49

3 Operating Expenses 6.55 16.56 -36.47 -13.68 -18.90 -9.19

4 Administrative Expenses -18.31 317.26 -53.53 139.04 4.82 77.86

5 Finance Expenses

a. Interest on Loans 35.54 16.51 -32.15 6.20 -47.58 -4.30

6 Deposits & Advances 139.61 6.78 -70.23 388.73 3.17 93.61

Total Expenses 7.79 16.97 -23.49 5.59 0.53 1.48



Percentage of Property Tax Collection

0

20

40

60

2000-01 2001-02 2002-03 2003-04 2004-05

% o

f C

olle

ctio

n

1 Current 2 Arrears

Growth of Property Tax Demand & Collection

-30

-20

-10

0

10

20

30

2001-02 2002-03 2003-04 2004-05

Gro

wth

Rat

e in

%

1 Current 2 Arrears

Growth Pattern of Revenue & Expenditure

690626686

767

560656

495

492466

609

483

521

0

100

200

300

400

500

600

700

800

900

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Rs. in lakhs

Total Income Total Expenditure

7.5 Demand Collection Balance Scenario

It is seen from the Income and Expenditure statement that the major source of income for

the municipality is through the taxes. The DCB of major sources of incomes are from (i)

Property Taxes (ii) Professional Taxes and (iii) Water Taxes.

i) Property tax

In 2004-05, the total demand for property tax

(including arrears and current) stood at Rs.845

lakhs of which Rs. 200 lakhs has been

collected. The collection performance was 24%

and, on an average around 22% of property

tax has been collected yearly.

Coming to arrears and current demand

collection, 19% and 33% has been collected on

an average in last five years. (Table 7.6)



Prperty Tax Collection Performance

0100

200300400

500600700

800900

2000-01 2001-02 2002-03 2003-04 2004-05

Year

Rs. in lakhs

Demand Collection Balance

Table 7.6. DCB for Property Tax of Villupuram 2000-01 to 2004-05

Sl.

No.

Particulars 2000-01 2001-02 2002-03 2003-04 2004-05

Figures Rs. In lakhs

I. Property Tax - Demand, Collection and Balance

Total Number of Assessments 15248 15678 16237 16949 17730

Growth in Assessments -- 2.82 3.57 4.39 4.61

A. Demand

1. Arrears 462.84 491.99 541.31 568.97 634.15

2. Current 199.95 205.00 210.95 210.92 210.99

3. Total 662.79 696.99 752.26 779.89 845.14

B. Collection

1. Arrears 113.63 89.51 120.40 80.60 101.42

2. Current 57.17 66.17 62.89 65.14 98.16

3. Total 170.80 155.68 183.29 145.74 199.58

C. Balance

1. Arrears 349.21 402.48 420.91 488.37 532.73

2. Current 142.78 138.83 148.06 145.78 112.83

3. Total 491.99 541.31 568.97 634.15 645.56

D. Collection Analysis

1. Arrears (%) 24.55 18.19 22.24 14.17 15.99

2. Current (%) 28.59 32.28 29.81 30.88 46.52

3. Total (%) 25.77 22.34 24.37 18.69 23.62



Percentage of Profession Tax Collection

01020304050

60708090

100

2000-01 2001-02 2002-03 2003-04 2004-05

% o

f C

olle

ctio

n1 Current 2 Arrears

Growth of Profession Tax Demand & Collect ion

-20

-15

-10

-5

0

5

10

2001-02 2002-03 2003-04 2004-05

1 Current 2 Arrears

ii) Profession tax

The total demand under this item in 2004-

05 was RS. 58 lakhs and the amount

collected was only RS. 20 lakhs, with a

collection performance of 35%. On an

average nearly 38% of profession tax has

been collected. (Table 7.7).

The arrear amount in 2004-05 was Rs.37

lakhs, while the current demand was Rs.21

lakhs of which’s 0.88 lakhs and Rs.19 lakhs

have been collected by the Municipality,

which accounts for 2% and 92%

respectively. On an average, the collection

performance for arrears and current

demand is 6% and, 86% respectively.



Profession Tax Collection Performance

0

10

20

30

40

50

60

70

2000-01 2001-02 2002-03 2003-04 2004-05

Year

Rs. in lakhs


Table 7.7. DCB for Professional Tax of Villupuram 2000-01 to 2004-05

Sl. No.

Particulars 2000-01 2001-02 2002-03 2003-04 2004-05


II. Profession Tax - Demand, Collection and Balance

Total Number of Assesses 8750 8312 7897 7729 7517

Growth in Assessments -- -5.01 -4.99 -2.13 -2.74

A. Demand

1. Arrears 31.62 31.83 33.33 33.21 37.05

2. Current 21.59 23.80 23.73 24.55 21.00

3. Total 53.21 55.63 57.06 57.76 58.05

B. Collection

1. Arrears 2.10 1.45 2.84 2.80 0.88

2. Current 19.28 20.85 21.01 17.91 19.46

3. Total 21.38 22.30 23.85 20.71 20.34

C. Balance

1. Arrears 29.52 30.38 30.49 30.41 36.17

2. Current 2.31 2.95 2.72 6.64 1.54

3. Total 31.83 33.33 33.21 37.05 37.71


1. Arrears (%) 6.64 4.56 8.52 8.43 2.38



Percentage of Water Charges Collection

0

50

100

2000-01 2001-02 2002-03 2003-04 2004-05

% o

f C

olle

ctio

n

1 Current 2 Arrears

Grow th of Water Charges Demand & Collection

-150

-100

-50

0

50

2001-02 2002-03 2003-04 2004-05

Gro

wth

Rat

e in

%

1 Current 2 Arrears

2. Current (%) 89.30 87.61 88.54 72.95 92.67

3. Total (%) 40.18 40.09 41.80 35.86 35.04

iii) Water Charges

The total demand in 2004-05 was Rs.29

lakhs and Rs.17.50 lakhs have been

collected (59% of demand) and on an

average this component has been found

to be increasing at 2% yearly.

The collection performance was at 46%

and 63% for arrears and current demand

respectively. (Table 7.8)



Water Tax Collection Performance

0

5

10

15

20

25

30

35

2000-01 2001-02 2002-03 2003-04 2004-05

Year

Rs. in lakhs


Table 7.8. DCB of Water Charges of Villupuram 2000-01 to 2004-05

Sl.

No. Particulars 2000-01 2001-02 2002-03 2003-04 2004-05


III. Water Charges - Demand, Collection and Balance

Total Number of Assessments 5359 5432 5487 5487 5491

Growth in Assessments -- 1.36 1.01 0.00 0.07

A. Demand

1. Arrears 12.28 9.92 7.11 13.48 14.67

2. Current 14.83 14.90 15.06 15.03 15.03

3. Total 27.11 24.82 22.17 28.51 29.70

B. Collection

1. Arrears 6.76 6.02 1.64 5.93 7.39

2. Current 10.43 11.69 7.05 7.91 10.11

3. Total 17.19 17.71 8.69 13.84 17.50

C. Balance

1. Arrears 5.52 3.90 5.47 7.55 7.28

2. Current 4.40 3.21 8.01 7.12 4.92

3. Total 9.92 7.11 13.48 14.67 12.20


1. Arrears (%) 55.05 60.69 23.07 43.99 50.37

2. Current (%) 70.33 78.46 46.81 52.63 67.27

3. Total (%) 63.41 71.35 39.20 48.54 58.92



7.6 Assessment of Performance of Municipal Finance

From the actuals, Villupuram revenue account stand for about 10.94 crores in the year

2005-2006. This includes OB of about 8.98 crores and the trend shows an increasing

amount of revenue which is favorable to the municipality for any investment. The Operating

Ratio (RE / RI) shows less than 1 for all the years between 2000-01 to 2005-06 except in

2001-02 which has crossed 0.90 mark (Table 7.9). In the same year, DS to income was

13% but in rest of the years are under control and very much comfortable in the year 2005-

06 which was 4.93 percentage to income.

Table 7.9. Performance of Villupuram Municipal Finance, 2000-01 to 2004-05 (Figures Rs. In lakhs)

Account Head 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Sl.

No. Actuals Budget

1 Revenue Account Status

(Incl. OB) 348.71 387.85 545.66 765.20 898.70 1094.08

2 Operating Ratio

(Rev. Expen./Rev. Inc.) 0.74 0.93 0.79 0.68 0.79 0.72

3 Debt Servicing –

Percentage of Income (%) 8.69 13.82 11.75 8.92 10.38 4.93

7.7 Financial Operational Plan (FOP)

The Financial Operating Plan (FOP) is essentially a multi-year forecast of finances of the

urban local body. The FOP can be generated for a short-medium term of 5-8 years and also

for a long-term for 20 years period. In this context, the FOP is envisaged with short-term

period of 5 years (2006-07 to 2010-11) and a long-term period of 20 years (2006-07 to

2025-26). A salient feature of the FOP is that all outstanding dues including debt and non-

debt liabilities have been taken into account. It needs mention that the identified

investments are phased from the year 2006-07.

The FOP is essentially a financial forecast, developed on the basis of the growth trends of

various components of income and expenditure, based on the time-series data. It is

noteworthy that several assumptions need to be made while forecasting the finances of the

ULBs. The immense care have been taken to adopt various assumptions based on the

current growth trends, contribution pattern of various revenue drivers and utilization pattern

of various expenditure drivers. In addition, various quantifiable assets and liabilities of the



ULBs were also taken into account and phased out over a period of time. The following

section provides an insight into the various assumptions made, necessary logic and

justifications for such assumptions.

7.8.1 Assumptions:

The financial forecast for the horizon period has been made based on the analysis of the

growth trend, sectoral contribution (for receipts/income) and utilization (for expenses) and

other externalities likely to impact the forecast like pay commission revisions, flow of

devolution fund, etc. The FOP is prepared for a short-term & long-term horizon periods with

sustainable level of capital investments in both the terms. Following are some of the

assumptions adopted while projecting the FOP of Villupuram town.

7.8.2 Revenue Receipts / Income: It has been projected under the following heads:

� Property Tax

� Other Taxes

o Professional Tax

o Other Taxes (excluding Professional Tax)

� Assigned Revenue

� Devolution Fund

� Service Charges and Fees

o Water Charges

o Service Charges and Fees (excluding Water Charges)

� Grants and Contributions

� Sale and Hire Charges

Property Tax:

Property tax accounts for an amount of about Rs. 209 lakhs in the year 2005-06. It

accounts on an average for about 26 percent of the total income of the municipality.

Property tax is one of the major revenue sources of the Villupuram Municipality. The

projection for future is based on the forecast demand and the current demand of year 2005-

06 is taken as the base. Its trend for the past 5 years shows at 6 percent increase and it is

assumed to grow at the rate of 2.0 percent per year for the projected period.



Further, it is also assumed that the general ARV revision (which was due last year) would be

undertaken during the year 2005-06. The other assumptions underlying projection of

revenue from property tax are presented in the table below:

Table 7.11. Assumptions for the Financial Projections - Property Tax

Sl. No. Items/Particulars Assumption Basis

1. ARV Revision � Next revision during the year 2006-07

� Increase at a rate of 30 percent per revision

� Revision once in 5-years as per the Act

2. Growth in Assessments

� Increase annually � Existing trend or maximum

of 5% p.a. for ULB

� Existing or nominal growth

3. Collection Performance

� Existing trend or maximum of 95 percent

� Average collection performance (both current & arrear demand)

� Current demand - 75-85% � Arrear demand - 50-60%

Professional Tax:

Professional tax is one of the major revenue sources among the other taxes levied by the

ULB. The projection for future is based on the forecast demand and the current demand of

year 2005-06 is taken as the base. Further, it may be noted that the last revision was done

during 2002-03 and thus the next revision is assumed after 10-12 years (2014-15). The

professional tax scored at Rs. 21.36 lakhs (2005-06) having an average growth of 3 percent.

It is assumed that this would grow at the rate of 5 percent for the projected period. The

other assumptions underlying projection of revenue from professional tax are presented in

the table below:

Table 7.12. Assumptions for the Financial Projections - Professional Tax


1. Revision � Next revision during the year 2014-15

� Increase at a rate of 30 percent

� Revision generally once in 10-12 years


� Increase annually � Existing trend or

maximum of 7 % p.a. for ULB






� Average collection performance (both current & arrear

demand) � Current demand - 70-

80 percent � Arrear demand - 45-50

percent

Water Charges:

The projection of water charges for future is based on the forecast demand and the current

demand of year 2005-06 is taken as the base. The water charges scored at Rs. 18.50 lakhs

(2005-06) having an average growth of 2.40 percent. It is assumed that this would grow at

the rate of 2 percent for the projected period. The other assumptions underlying projection

of revenue from professional tax are presented in the table below:

Table 7.13. Assumptions for the Financial Projections - Water Charges


1. Revision � Next revision during the year 2005-06

� Increase at a rate of 20 percent per revision

� Revision allowed once in 3 years as per the Act


� Increase annually � Existing trend or

maximum of 3 % p.a. for ULB




� Average collection performance

� Current demand - 75-85 percent

� Arrear demand - 50-55

percent

Devolution Funds:

Devolution funds are projected based on the formula adopted by the GoTN to devolve SFC

grants. The State’s official projection of Sales Tax for next 10 years is considered as the

base. As per the formula, about 8 percent of the State’s Sales ax would be devolved for the

local bodies (both urban and rural). About 42 percent of the total amount available for the



devolution would be devolved to the urban local bodies at the following rate:

� Municipal Corporations -31percent

� Municipalities - 34 percent

� Town Panchayats - 35 percent

Further, it may be observed that the base population figure considered for SFC devolution is

the latest Census figures and accordingly, the SFC devolution per capita has been calculated

for ULB, at the State level. This per capita devolution has been adopted to project the SFC

devolutions for the Villupuram town, keeping the population of the ULB as per the 2001

Census as the base.

Other Revenue Receipts / Income:

The assumptions for forecast of other revenue items are presented in the table below. The

growth rate under each item of receipt is adopted based on the average trend of all the

ULBs under different categories. In case of abnormalities in the growth trend, a nominal

growth rate has been adopted.

Table 7.14. Assumptions for the Financial Projections - Other Revenue Receipts

Sl. No.

Items/Particulars Unit Assumptions for

Forecast

1. Other Taxes (excluding Professional Tax) Percent 8.00

2. Assigned Revenue Percent 8.00

3. Service Charges and Fees (excluding Water and

Sewer Charges)

Percent 10.00

4. Grants and Contributions Percent 5.00

5. Sale and Hire Charges Percent 5.00

6. Other Income Percent 15.00

7.8.3 Revenue Expenditure: It has been projected under the following heads:

� Personnel Cost

o Salaries

o Others

� Terminal and Retirement Benefits

� Operating Expenses

� Repairs and Maintenance



� Program Expenses

� Administrative Expenses

� Finance Expenses

o Finance Expenses (excluding Interest n Loans)

o Interest on Loans

� Phasing of Non-Debt Liability

Personnel Cost (including Salaries and Other Establishment Expenditure):

The present average growth in establishment expenditure is about 1-6 percent per annum.

However, for the future, the annual growth rate in Personnel Cost is arrived based on the

increase in following sub-components:

� Net salary increase - 3 percent per annum

� Revision of DA - 4 to 5 percent per annum

� Others (new recruitments, etc) - 2 to 3 percent per annum

Accordingly, the Personnel Cost is assumed to be growing at the rate of 10 percent per

annum.

Other Expenditure:

The assumptions for forecast of other revenue expenditure items are presented in the table

below. The growth rate under each item of expenditure is adopted based on the average

trend in this local body over last five years. In case of abnormalities in the growth trend, a

nominal growth rate has been adopted.

Table 7.15. Assumptions for the Financial Projections –

Other Revenue Expenses

Sl. No.

Items/Particulars Unit Assumptions for

Forecast

1. Terminal and Retirement Benefits Percent 10.00

2. Operating Expenses Percent 10.00

3. Repairs and Maintenance Percent 8.00

4. Program Expenses Percent 10.00

5. Administrative Expenses Percent 10.00



6. Finance Expenses (excluding Interest on Loans)

Percent 10.00

It is noteworthy that the revenue expenditure item ‘Depreciation’ is not considered for

financial projection, as it is just a notional item

Finance Expenses - Debt Servicing:

Debt servicing component has been dealt separately in detail as per the terms and

conditions of the loan. The debt servicing of both existing proposed loans have been taken

into consideration. While calculating the debt servicing, the principal repayment and interest

payable on the loans have been calculated separately. The interest on loans has been

considered as the revenue expenditure item while the principal repayment has been taken

as cash-flow item. However, for calculating the Debt-Service Coverage (DSC) ratio, both

principal repayment and interest payable on the loans have been taken into account.

7.8.4. Financial Operational Plan: (Including Business Plan Projects)

Based on the above assumptions, FOP has been formulated for a short term period of 2006-

07 to 2010-11 and in that the total revenue receipt has been estimated to reach to Rs.

2031.16 lakhs in 2010-11 from Rs.690.02 lakhs in 2005-06. The total revenue expenditure

has been increased from Rs.494.64 lakhs (2005-06) to Rs. 1042.60 Lakhs (2010-11). It is

observed that in all the years operating ration (RE/RI) remains more than 0.7. But in other

hand debt serving over the total revenue is well within 15 percent indicating ease of the

municipal finance in repayment of loan (Table 7.16). For a Long term period of 2006-07 to

2025-26, total revenue receipt has been estimated to reach to Rs. 6269.16 lakhs in 2025-26

from Rs.690.02 lakhs in 2005-06. The total revenue expenditure has been increased from

Rs.494.64 lakhs (2005-06) to Rs. 3250.92 Lakhs (2025-26). In long term also Operating

ration (RE/RI) is around 0.50. The debt serving over the total revenue is well within 20

percent indicating ease of the municipal finance in repayment of loan (Table 7.17).



7.8.5. Summary Status:

Key Indicators Minimum Maximum Average

Existing (2000-01 to 2005-06)

OR (Ratio) 0.68 0.93 0.77

DSR (%) 8.42 13.82 10.33

Short-Term (2006-07 to 2010-11)

OR (Ratio) 0.51 0.65 0.58

DSR (%) 4.28 24.81 17.23

Long-Term (2006-07 to 2025-26)

OR (Ratio) 0.49 0.52 0.51

DSR (%) 2.43 14.71 7.74



Table. 7.16. Financial Operational Plan (FOP) – Short Term Period (2006-07 to 2010-11)Figures Rs. In lakhs

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Sl. No.

Account Head

Actuals =================================> Est. Short-term Projections ======================>

Opening Balance 175.33 348.71 387.85 545.66 765.20 898.70 1070.01 1435.90 1902.78 2374.93 3277.69

Revenue Receipts

1 Property Tax 170.80 155.68 183.29 145.74 199.58 209.58 220.67 292.60 298.45 304.42 310.51

2 Other Taxes

a. Professional Tax 21.38 22.30 22.85 20.71 20.34 21.36 16.72 17.55 18.43 19.35 20.32

b. Other Taxes (excluding Professional Tax) 0.00 0.03 0.55 0.10 0.11 0.15 0.16 0.17 0.19 0.20 0.22

3 Assigned Revenue 87.88 55.17 109.73 88.41 83.46 78.50 84.78 91.56 98.89 106.80 115.34

4 Devolution Fund 92.67 102.54 159.77 162.71 82.18 104.40 279.23 306.93 337.17 367.21 399.92


a. Water Charges 17.19 17.71 8.69 13.84 17.50 18.50 18.81 19.18 19.57 23.95 24.43


65.69 70.46 91.73 141.06 110.66 129.39 142.33 156.56 172.22 189.44 208.38

6 Grants and Contributions 100.68 37.03 7.69 0.00 0.00 0.00 2.02 2.12 2.23 2.34 2.45

7 Sale and Hire Charges 53.69 57.23 61.80 85.79 64.48 81.24 85.30 89.57 94.05 98.75 103.69

8 Other Income 0.96 7.77 1.37 4.01 0.25 0.30 0.35 0.40 0.46 0.52 0.60

9 Deposits & Advances 45.51 33.91 119.39 23.17 46.97 46.60 53.59 61.63 70.87 81.50 93.73

10 Recoveries from Projects 0.00 0.00 0.00 0.00 0.00 0.00 7.58 323.93 323.93 719.93 751.56

Total Revenue Receipts 656.45 559.83 766.86 685.54 625.53 690.02 911.52 1362.20 1436.44 1914.41 2031.16

Revenue Expenditure

1 Personnel Cost 208.74 203.24 207.77 206.70 182.35 251.95 277.15 304.86 335.35 368.88 405.77

2 Terminal and Retirement Benefits 45.79 47.18 47.37 49.74 42.60 20.65 22.72 24.99 27.49 30.23 33.26

3 Operating Expenses 143.76 153.18 178.54 113.42 97.90 79.40 87.34 96.07 105.68 116.25 127.87

4 Administrative Expenses 16.88 13.79 57.54 26.74 63.92 67.00 73.70 81.07 89.18 98.09 107.90

5 Finance Expenses

a. Interest on Loans 57.07 77.35 90.12 61.15 64.94 34.04 14.91 11.20 7.49 3.78 1.60

b. Debt service on new investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 302.73 319.68 309.44 299.20


Total Revenue Expenditure 483.07 520.69 609.05 466.00 492.03 494.64 521.57 871.25 940.22 987.58 1042.60

Revenue Surplus / Deficit 173.38 39.14 157.81 219.54 133.50 195.38 389.96 490.95 496.22 926.83 988.56

Principle Payment (Earlier Loan) 0.00 0.00 0.00 0.00 0.00 24.07 24.07 24.07 24.07 24.07 4.27



Net Surplus / Deficit 173.38 39.14 157.81 219.54 133.50 171.31 365.89 466.88 472.15 902.76 984.29

Closing Balance 348.71 387.85 545.66 765.20 898.70 1070.01 1435.90 1902.78 2374.93 3277.69 4261.98

Key Financial Indicators

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Account Head Actuals =================================> Est. Short-term Projections ========================>

Status of Accounts (incl. OB, PP and CC but exc. Dep)

348.71 387.85 545.66 765.20 898.70 1070.01 1435.90 1902.78 2374.93 3277.69 4261.98

Operating Ratio (Rev. Expen./Rev. Inc.) 0.74 0.93 0.79 0.68 0.79 0.72 0.57 0.64 0.65 0.52 0.51

Cash Debt-Service Coverage Ratio (DSCR) 6.11 5.01 6.05 12.51 13.84 18.41 36.84 5.63 6.76 9.72 13.97

DS/TR (Debt Service/Total Revenue) 8.69 13.82 11.75 8.92 10.38 8.42 4.28 24.81 24.45 17.62 15.02

Table. 7.17. Financial Operational Plan (FOP) – Long Term Period (2006-07 to 2025-26)

Figures

Rs. In lakhs

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Account Head

Long-term

Projections===============================================================================================================>

Opening Balance 4261.98 5340.52 6487.17 7713.98 8983.56 10372.97 12033.15 13748.84 15613.33 17583.27 19621.21 22041.88 24592.66 27234.29 30092.95

Revenue Receipts

Property Tax 411.74 419.97 428.37 436.94 445.68 627.91 640.47 653.27 666.34 679.67 901.24 919.26 937.65 956.40

Other Taxes

Professional Tax 21.33 22.40 23.52 24.70 25.93 38.65 41.35 44.25 47.34 50.66 54.20 58.00 62.06 66.40

b. Other Taxes (excluding Professional Tax) 0.24 0.26 0.28 0.30 0.32 0.35 0.38 0.41 0.44 0.48 0.51 0.56 0.60 0.65

Assigned Revenue 124.57 134.54 145.30 156.92 169.48 183.03 197.68 213.49 230.57 249.02 268.94 290.45 313.69 338.78

Devolution Fund 437.65 478.94 524.12 573.56 627.67 686.89 751.69 822.60 900.21 985.13 1078.07 1179.77 1291.07 1412.87



Service Charges and Fees

a. Water Charges 24.92 30.50 31.11 31.73 38.84 39.61 40.41 52.37 53.41 54.48 66.69 68.02 69.38 84.92


229.22 252.14 277.36 305.09 335.60 369.16 406.08 446.69 491.36 540.49 594.54 654.00 719.40 791.34

Grants and Contributions 2.58 2.71 2.84 2.98 3.13 3.29 3.45 3.63 3.81 4.00 4.20 4.41 4.63 4.86

Sale and Hire Charges 108.87 114.31 120.03 126.03 132.33 138.95 145.90 153.19 160.85 168.89 177.34 186.20 195.51 205.29

Other Income 0.69 0.80 0.92 1.06 1.21 1.40 1.61 1.85 2.12 2.44 2.81 3.23 3.71 4.27

Deposits & Advances 107.79 123.96 142.55 163.93 188.52 216.80 249.32 286.72 329.73 379.19 436.07 501.47 576.70 663.20

Recoveries from Projects 751.56 810.96 845.76 845.76 914.07 952.35 952.35 1030.91 1073.01 1073.01 1163.35 1209.67 1209.67 1313.56

Total Revenue Receipts 2221.16 2391.48 2542.15 2669.01 2882.80 3258.39 3430.67 3709.36 3959.19 4187.45 4747.95 5075.04 5384.06 5842.54

Revenue Expenditure

Personnel Cost 446.34 490.98 540.08 594.08 653.49 718.84 790.73 869.80 956.78 1052.46 1157.70 1273.47 1400.82 1540.90

Terminal and Retirement Benefits 36.58 40.24 44.27 48.69 53.56 58.92 64.81 71.29 78.42 86.26 94.89 104.37 114.81 126.29

Operating Expenses 140.66 154.73 170.20 187.22 205.94 226.54 249.19 274.11 301.52 331.67 364.84 401.32 441.46 485.60

Administrative Expenses 118.69 130.56 143.62 157.98 173.78 191.16 210.27 231.30 254.43 279.88 307.86 338.65 372.51 409.77

Finance Expenses

a. Interest on Loans 0.96 0.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

b. Debt service on new investments 321.41 342.65 328.01 313.36 298.71 284.06 269.41 254.77 240.12 225.47 210.82 196.18 181.53 166.88

Deposits & Advances 73.70 81.07 89.17 98.09 107.90 118.69 130.56 143.61 157.98 173.77 191.15 210.27 231.29 254.42

Total Revenue Expenditure 1138.35 1240.55 1315.34 1399.43 1493.39 1598.21 1714.98 1844.88 1989.25 2149.51 2327.27 2524.27 2742.43 2983.87

Revenue Surplus / Deficit 1082.81 1150.93 1226.81 1269.58 1389.41 1660.18 1715.70 1864.48 1969.94 2037.94 2420.68 2550.77 2641.63 2858.67

Principle Payment (Earlier Loan) 4.27 4.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Surplus / Deficit 1078.54 1146.66 1226.81 1269.58 1389.41 1660.18 1715.70 1864.48 1969.94 2037.94 2420.68 2550.77 2641.63 2858.67

Closing Balance 5340.52 6487.17 7713.98 8983.56 10372.97 12033.15 13748.84 15613.33 17583.27 19621.21 22041.88 24592.66 27234.29 30092.95 33111.20




2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025Account Head Long-term Projections=======================================================================================>

Status of Accounts (incl. OB, PP and CC but exc. Dep)

5340.52 6487.17 7713.98 8983.56 10372.97 12033.15 13748.84 15613.33 17583.27 19621.21 22041.88 24592.66 27234.29 30092.95 33111.20

Operating Ratio (Rev. Expen./Rev. Inc.) 0.51 0.52 0.52 0.52 0.52 0.49 0.50 0.50 0.50 0.51 0.49 0.50 0.51 0.51

Cash Debt-Service Coverage Ratio (DSCR) 16.35 18.68 23.52 28.67 34.73 42.36 51.03 61.28 73.23 87.02 104.55 125.36 150.03 180.33

DS/TR (Debt Service/Total Revenue) 14.71 14.52 12.90 11.74 10.36 8.72 7.85 6.87 6.06 5.38 4.44 3.87 3.37 2.86


estimated that total revenue receipt is estimated to reach to Rs. 1279 lakhs in 2010-11 from

Rs.690 lakhs in 2005-06.

The total revenue expenditure is also increased from Rs.494 lakhs (2005-06) to Rs. 743

Lakhs (2010-11). It is observed that in all the years Operating ration (RE/RI) remains

around 0.7. The debt serving over the total revenue is well within 15 percent indicating ease

of the municipal finance in repayment of loan (Table 7.18). For a Long term period of 2006-

07 to 2025-26, total revenue receipt has been estimated to reach to Rs. 4904 lakhs in 2025-

26 from Rs.690 lakhs in 2005-06. The total revenue expenditure has been increased from

Rs.494 lakhs (2005-06) to Rs. 3098 Lakhs (2025-26). It is observed that in all the years

Operating ration (RE/RI) remains well within operating feasibility of (less than 1). The debt

serving over the total revenue is well within 1 percent indicating ease of the municipal

finance in repayment of loan (Table 7.19).

7.8.7. Summary Status:

Key Indicators Minimum Maximum Average

Existing (2000-01 to 2005-06)

OR (Ratio) 0.68 0.93 0.77

DSR (%) 8.42 13.82 10.33

Short-Term (2006-07 to 2010-11)

OR (Ratio) 0.55 0.58 0.57

DSR (%) 0.46 4.31 2.67

Long-Term (2006-07 to 2025-26)

OR (Ratio) 0.56 0.63 0.60

DSR (%) - 0.36 0.03


CCP To Business Plan / TNUIFSL /September 2006 142

Table. 7.18. Financial Operational Plan (FOP) – Short Term Period (2006-07 to 2010-11) - (Excluding Business Plan Projects)


2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Sl.

No.

Account Head

Actuals =================================> Est. Short-term Projections =========================>

Opening Balance 175.33 348.71 387.85 545.66 765.20 898.70 1070.01 1428.32 1874.00 2341.90 2834.17

Revenue Receipts

1 Property Tax 170.80 155.68 183.29 145.74 199.58 209.58 220.67 292.60 298.45 304.42 310.51

2 Other Taxes

a. Professional Tax 21.38 22.30 22.85 20.71 20.34 21.36 16.72 17.55 18.43 19.35 20.32

b. Other Taxes (excluding Professional Tax) 0.00 0.03 0.55 0.10 0.11 0.15 0.16 0.17 0.19 0.20 0.22

3 Assigned Revenue 87.88 55.17 109.73 88.41 83.46 78.50 84.78 91.56 98.89 106.80 115.34

4 Devolution Fund 92.67 102.54 159.77 162.71 82.18 104.40 279.23 306.93 337.17 367.21 399.92


a. Water Charges 17.19 17.71 8.69 13.84 17.50 18.50 18.81 19.18 19.57 23.95 24.43

b. Service Charges and Fees (excluding

Water Charges) 65.69 70.46 91.73 141.06 110.66 129.39 142.33 156.56 172.22 189.44 208.38

6 Grants and Contributions 100.68 37.03 7.69 0.00 0.00 0.00 2.02 2.12 2.23 2.34 2.45

7 Sale and Hire Charges 53.69 57.23 61.80 85.79 64.48 81.24 85.30 89.57 94.05 98.75 103.69

8 Other Income 0.96 7.77 1.37 4.01 0.25 0.30 0.35 0.40 0.46 0.52 0.60


Total Revenue Receipts 656.45 559.83 766.86 685.54 625.53 690.02 903.95 1038.28 1112.52 1194.49 1279.60

Revenue Expenditure

1 Personnel Cost 208.74 203.24 207.77 206.70 182.35 251.95 277.15 304.86 335.35 368.88 405.77

2 Terminal and Retirement Benefits 45.79 47.18 47.37 49.74 42.60 20.65 22.72 24.99 27.49 30.23 33.26

3 Operating Expenses 143.76 153.18 178.54 113.42 97.90 79.40 87.34 96.07 105.68 116.25 127.87

4 Administrative Expenses 16.88 13.79 57.54 26.74 63.92 67.00 73.70 81.07 89.18 98.09 107.90

5 Finance Expenses

a. Interest on Loans 57.07 77.35 90.12 61.15 64.94 34.04 14.91 11.20 7.49 3.78 1.60


Total Revenue Expenditure 483.07 520.69 609.05 466.00 492.03 494.64 521.57 568.52 620.55 678.14 743.40

Revenue Surplus / Deficit 173.38 39.14 157.81 219.54 133.50 195.38 382.38 469.75 491.97 516.34 536.19

Principle Payment (Earlier Loan) 0.00 0.00 0.00 0.00 0.00 24.07 24.07 24.07 24.07 24.07 4.27

Net Surplus / Deficit 173.38 39.14 157.81 219.54 133.50 171.31 358.31 445.68 467.90 492.27 531.92

Closing Balance 348.71 387.85 545.66 765.20 898.70 1070.01 1428.32 1874.00 2341.90 2834.17 3366.09


2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Account Head

Actuals =================================> Est. Short-term Projections ========================>

Status of Accounts

(incl. OB, PP and CC but exc. Dep) 348.71 387.85 545.66 765.20 898.70 1070.01 1428.32 1874.00 2341.90 2834.17 3366.09

Operating Ratio (Rev. Expen./Rev. Inc.) 0.74 0.93 0.79 0.68 0.79 0.72 0.58 0.55 0.56 0.57 0.58

Cash Debt-Service Coverage Ratio (DSCR) 6.11 5.01 6.05 12.51 13.84 18.41 36.64 53.14 74.21 101.77 573.15

DS/TR (Debt Service/Total Revenue) 8.69 13.82 11.75 8.92 10.38 8.42 4.31 3.40 2.84 2.33 0.46

Table. 7.19. Financial Operational Plan (FOP) – Long Term Period (2006-07 to 2025-26) - (Excluding Business Plan Projects)


CCP To Business Plan / TNUIFSL /September 2006 143


2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Sl. No

.

Account Head

Long-term Projections=========================================================================================================

======>

Opening Balance 3366.09

4014.48

4692.82

5401.88

6139.05

6913.10

7904.99

8937.75 10026.0

9 11163.1

4 12353.5

4 13821.6

9 15358.9

7 16972.4

6 18684.4

5

Revenue Receipts

1 Property Tax 411.74 419.97 428.37 436.94 445.68 627.91 640.47 653.27 666.34 679.67 901.24 919.26 937.65 956.40 975.53

2 Other Taxes

a. Professional Tax 21.33 22.40 23.52 24.70 25.93 38.65 41.35 44.25 47.34 50.66 54.20 58.00 62.06 66.40 71.05

b. Other Taxes (excluding Professional Tax)

0.24 0.26 0.28 0.30 0.32 0.35 0.38 0.41 0.44 0.48 0.51 0.56 0.60 0.65 0.70

3 Assigned Revenue 124.57 134.54 145.30 156.92 169.48 183.03 197.68 213.49 230.57 249.02 268.94 290.45 313.69 338.78 365.89

4 Devolution Fund 437.65 478.94 524.12 573.56 627.67 686.89 751.69 822.60 900.21 985.13 1078.07 1179.77 1291.07 1412.87 1546.16


a. Water Charges 24.92 30.50 31.11 31.73 38.84 39.61 40.41 52.37 53.41 54.48 66.69 68.02 69.38 84.92 86.62


229.22 252.14 277.36 305.09 335.60 369.16 406.08 446.69 491.36 540.49 594.54 654.00 719.40 791.34 870.47

6 Grants and Contributions 2.58 2.71 2.84 2.98 3.13 3.29 3.45 3.63 3.81 4.00 4.20 4.41 4.63 4.86 5.10

7 Sale and Hire Charges 108.87 114.31 120.03 126.03 132.33 138.95 145.90 153.19 160.85 168.89 177.34 186.20 195.51 205.29 215.55

8 Other Income 0.69 0.80 0.92 1.06 1.21 1.40 1.61 1.85 2.12 2.44 2.81 3.23 3.71 4.27 4.91

9 Deposits & Advances 107.79 123.96 142.55 163.93 188.52 216.80 249.32 286.72 329.73 379.19 436.07 501.47 576.70 663.20 762.68

Total Revenue Receipts 1469.60

1580.52

1696.39

1823.25

1968.72

2306.04

2478.32

2678.46 2886.18 3114.44 3584.59 3865.37 4174.39 4528.98 4904.66

Revenue Expenditure

1 Personnel Cost 446.34 490.98 540.08 594.08 653.49 718.84 790.73 869.80 956.78 1052.46 1157.70 1273.47 1400.82 1540.90 1694.99

2 Terminal and Retirement Benefits 36.58 40.24 44.27 48.69 53.56 58.92 64.81 71.29 78.42 86.26 94.89 104.37 114.81 126.29 138.92

3 Operating Expenses 140.66 154.73 170.20 187.22 205.94 226.54 249.19 274.11 301.52 331.67 364.84 401.32 441.46 485.60 534.16

4 Administrative Expenses 118.69 130.56 143.62 157.98 173.78 191.16 210.27 231.30 254.43 279.88 307.86 338.65 372.51 409.77 450.74

5 Finance Expenses

a. Interest on Loans 0.96 0.32 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

6 Deposits & Advances 73.70 81.07 89.17 98.09 107.90 118.69 130.56 143.61 157.98 173.77 191.15 210.27 231.29 254.42 279.86

Total Revenue Expenditure 816.94 897.90 987.34

1086.0

7

1194.6

8

1314.1

5

1445.5

6 1590.12 1749.13 1924.04 2116.44 2328.09 2560.90 2816.99 3098.69

Revenue Surplus / Deficit 652.65 682.62 709.05 737.18 774.05 991.89

1032.76

1088.34 1137.05 1190.40 1468.15 1537.28 1613.49 1711.99 1805.97

Principle Payment (Earlier Loan) 4.27 4.27 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

Net Surplus / Deficit 648.38 678.35 709.05 737.18 774.05 991.89

1032.76

1088.34 1137.05 1190.40 1468.15 1537.28 1613.49 1711.99 1805.97

Closing Balance 4014.48

4692.82

5401.88

6139.05

6913.10

7904.99

8937.75

10026.09

11163.14

12353.54

13821.69

15358.97

16972.46

18684.45

20490.42


2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Account Head

Long-term Projections==========================================================================================================>

Status of Accounts

(incl. OB, PP and CC but exc. Dep) 4014.48 4692.82 5401.88 6139.05 6913.10 7904.99 8937.75 10026.09 11163.14 12353.54 13821.69 15358.97 16972.46 18684.45 20490.42

Operating Ratio (Rev. Expen./Rev. Inc.) 0.56 0.57 0.58 0.60 0.61 0.57 0.58 0.59 0.61 0.62 0.59 0.60 0.61 0.62 0.63

Cash Debt-Service Coverage Ratio (DSCR) 767.25 1022.05 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

DS/TR (Debt Service/Total Revenue) 0.36 0.29 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

CCP To Business Plan / TNUIFSL /September 2006

By way of implementing the suggested projects in the Business plan the local body attain a position were they could sustain their revenue

and in turn civic services could be improved by means of their own resources without getting engrossed in debts.

Conversion of CCP into BUSINESS PLAN FOR VILLUPURAM

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