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Tamilnadu Urban Infrastructure Financial Services Limited fc Workable solutions to help you make the difference Tamilnadu Urban Infrastructure Financial Services Limited Final Report – Tirunelveli Municipal Corporation Conversion of City Corporate Plan into Business Plan FEBRUARY 2007 A Division of Tirunelveli Business Plan TABLE OF CONTENTS EXECUTIVE SUMMARY ..................................................................................................................5 1. BACKGROUND .........................................................................................................................11 1.1 OBJECTIVES AND SCOPE ........................................................................................................ 11 1.2 APPROACH TO CCP AND BP ................................................................................................. 13 1.3 REPORT STRUCTURE.............................................................................................................. 14 1.4 DELIVERABLES...................................................................................................................... 14 2. REVIEW OF CCP - CITY PROFILE ...................................................................................... 15 2.1 ECONOMIC PROFILE............................................................................................................... 15 2.2 CONSTITUTION OF CORPORATION ......................................................................................... 15 2.3 PAST PLANNING EFFORTS...................................................................................................... 15 2.4 KEY DEVELOPMENT ISSUES................................................................................................... 16 3. REVIEW OF THE CCP – MUNICIPAL ASSESSMENT: INFRASTRUCTURE AND ORGANISATION............................................................................................................................... 17 3.1 WATER SUPPLY IS ADEQUATE, BUT DISTRIBUTION IS NOT EQUITABLE................................. 17 3.1.1 Service reservoirs capacity is adequate for current levels ........................................... 17 3.1.2 Distribution system is 64% of road length.................................................................... 17 3.2 SANITATION AND SEWERAGE PROJECTS ARE UNDER EXECUTION......................................... 18 3.2.1 Sewerage project to cover a wider area ....................................................................... 18 3.2.2 Sanitation ......................................................................................................................18 3.3 MODERATELY HIGH LEVEL OF ROAD NETWORK ................................................................... 19 3.4 DRAINS COVERAGE IS LOW ................................................................................................... 19 3.5 SOLID WASTE MANAGEMENT (SWM) HAS 72% EFFICIENCY............................................... 20 3.6 THE SPACING BETWEEN STREET LIGHTS IS WIDER THAN REQUIRED ..................................... 21 3.7 SOCIAL INFRASTRUCTURE IS ADEQUATE .............................................................................. 21 3.7.1 Education ......................................................................................................................21 3.7.2 Health............................................................................................................................ 21 3.8 THE ORGANISATION REQUIRES TRAINING IN KEY AREAS...................................................... 21 3.8.1 Revenue department...................................................................................................... 22 3.8.2 Accounts department..................................................................................................... 22 3.8.3 Engineering, water supply and drainage department................................................... 24 3.8.4 Public health and sanitation department ...................................................................... 25 3.8.5 Information Technology (IT)......................................................................................... 26 3.8.6 Status of e-Governance ................................................................................................. 27 4. REVIEW OF MUNICIPAL FINANCE.................................................................................... 28 4.1 CURRENT FINANCIALS REFLECT PER CAPITA DEFICIT ........................................................... 28 4.1.1 Revenue receipt show inconsistent growth ................................................................... 29 4.1.2 Revenue expenditure below state average .................................................................... 30 4.1.3 Capital receipts and expenditure .................................................................................. 30 4.2 OUTSTANDING LIABILITIES ................................................................................................... 31 4.2.1 Debt liabilities - 28% of 2004-05 closing balance....................................................... 31 4.2.2 Non-debt liabilities........................................................................................................ 31 4.3 KEY PERFORMANCE INDICATORS.......................................................................................... 32 1 Tirunelveli Business Plan 5. CAPITAL INVESTMENT PROGRAM................................................................................... 33 5.1 CAPITAL INVESTMENT........................................................................................................... 33 5.2 DEPARTMENT WISE INVESTMENT IDENTIFIED FOR IMMEDIATE REQUIREMENT .................... 34 5.2.1 Rs. 1606 lakhs required for water supply projects ....................................................... 34 5.2.2 Rs. 11170 lakhs required for sewerage and sanitation facilities .................................. 35 5.2.3 Rs. 403 lakhs required for SWM ................................................................................... 36 5.2.4 Rs. 7797 lakhs required for roads and drains............................................................... 37 5.2.5 Rs. 536 lakhs required for street lighting services........................................................ 38 5.2.6 Rs. 1732.5 lakhs required for other services................................................................. 38 6. FINANCIAL OPERATING PLAN........................................................................................... 40 6.1 NEED FOR A FOP................................................................................................................... 40 6.2 ASSUMPTIONS FOR FOP ........................................................................................................ 40 6.2.1 Revenue Receipts Items................................................................................................. 41 6.2.2 Revenue expenditure ..................................................................................................... 41 6.2.3 Capital income and expenditure ................................................................................... 41 6.3 PROPERTY TAX AND WATER TAX IMPROVEMENTS HAVE THE MAXIMUM IMPACT................ 42 6.4 PROPERTY TAX / GENERAL TAX HAVE A LOWER COVERAGE ................................................ 42 6.4.1 Current scenario ........................................................................................................... 42 6.4.2 Improvement measures ................................................................................................. 43 6.5 WATER CHARGES .................................................................................................................. 43 6.5.1 Current scenario ........................................................................................................... 43 6.5.2 Improvement measures ................................................................................................. 44 6.6 SHOPS & MARKET RENT ........................................................................................................ 44 6.7 OTHERS ................................................................................................................................. 44 6.8 AREAS OF EXPENDITURE REDUCTION................................................................................... 45 6.9 ALTERNATIVE PAYMENT STRUCTURES AND INCENTIVE STRUCTURE ................................... 47 6.10 MAXIMUM INVESTMENT POTENTIAL OF THE TOWN IS RS. 27631 LAKHS ............................. 47 6.10.1 Summary – Improvement measures mandatory to sustain the required investment ..... 48 7. ASSET MANAGEMENT PLAN............................................................................................... 49 7.1 CLASSIFICATION OF MUNICIPAL ASSETS ............................................................................... 49 7.1.1 Activities of Asset Management Plan (AMP) ................................................................ 49 7.1.2 The process ................................................................................................................... 50 7.2 PLANNING OF TIRUNELVELI MUNICIPAL ASSETS .................................................................. 51 7.2.1 Non-remunerative asset ................................................................................................ 51 7.2.2 Remunerative asset ......................................................................................................
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