DEMAND NO. 33
MUNICIPAL ADMINISTRATION AND WATER SUPPLY DEPARTMENT
( 2004-2005)
PREAMBLE
The increase in the urban population in the State has placed tremendous responsibility on the Government to provide civic services of a high order so as to maintain and improve the quality of urban life. Apart from planning the growth of the urban centers, this Government is taking steps to arrest the degradation of urban environment due to the increasing pressure of the population so that the urban areas do not degenerate into urban slums. The higher expectations of the people in the urban areas is an added dimension of the challenge. Provision of a clear urban environment and maintaining public health in the urban areas call for an integrated approach in the provision of core civic services. In this direction, this Government is committed to increase the investment in the urban sector and is taking effective steps by implementing various schemes. The Department of Municipal Administration and Water Supply is responsible for coordinating the activities of various organizations and agencies in the planning, execution and maintenance of measures to provide improved infrastructure and services in the urban areas of the State.
The Goal of the Department would be to enhance quality and dignity of life by:-
INCREASING URBAN AMENITIES & REDUCING URBAN POVERTY
1. MUNICIPAL ADMINISTRATION
1. Tamil Nadu has a total population of 621.08 lakhs (2001) and occupies sixth rank in size with a share of 6.1 per cent in total population of the country, The urban population in the State consists of 272.41 lakhs with a share of 43.9 per cent of total state population and Tamil Nadu is one of the highly urbanised States in India, During the decade 1991-2001, the growth rate of urban population has been 42.8% as compared to 19.5% during the decade 1981-91.
2. Until 14.6.2004, there were 6 Corporations, 102 Municipalities and 611 Town Panchayats in the State. The 611 Town Panchayats were providing basic amenities to a population of about 1 Crore. Most of the Town Panchayats were financially very weak and rural in character. To improve the financial position of the Town Panchayats by enabling them to avail central and other funds ear marked for the rural development sector, Government decided that the Town Panchayats with population less than 30,000 be reclassified as Village Panchayats. Accordingly, out of the 611 Town Panchayats in the State 566 Town Panchayats were reclassified as Village Panchayats with effect from 14.6.2004. The nomenclature of the balance 45 Town Panchayats was also changed as "Third Grade Municipality" with effect from 14.6.2004. The Tamil Nadu District Municipalities Act, 1920 has been amended accordingly.
3. Subsequently, four reclassified Village Panchayats which have population of more than 30,000 as per 2001 census were upgraded as Third Grade Municipalities with effect from 5.7.2004. As such there are 49 Third Grade Municipalities (erstwhile Town Panchayats) in this State as on date. The Government will undertake appropriate measures to improve the basic civic infrastructure and quality of life in these Municipalities.
The grade wise classification of Municipalities in the State is as follows:
Sl.No. Grade No. of Municipalities 1 Special Grade 13 2 Selection Grade 28 3 I Grade 36 4 II Grade 25 5 III Grade 49 Total 151
Vision Document
4. During the past 10 years, the State has undertaken many major reforms to improve the services rendered by the Urban Local Bodies to achieve better quality of service and good governance. The Second State Finance Commission (2001) has assessed the requirement of funds for covering the deficiency in core sector for the years 2002-2007 as in the Table below: (Rs. in crores)
Service Corporat Municip Town Total ion alities Panchay ats
Water 506.20 673.38 1409.41 2588.99 Supply
Sewerage/ 409.34 391.28 41.67 842.29 Sanitation
Roads 310.81 204.37 406.51 921.69
Storm 747.94 1101.63 684.47 2534.04 Water Drains
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Street 43.19 43.58 125.50 212.27 lighting
Solid 115.95 33.75 20.48 170.18 Waste Managem ent
Others 341.68 231.03 282.91 855.62
Total 2475.11 2679.02 2970.95 8125.08
Similarly, the O&M requirement in major sectors has also been assessed by the Second State Finance Commission for the years 2002-2007 as in the Table below:
(Rs. in crores)
Service Corporat Municip Town Total ion alities Panchay ats
General 366.27 374.28 206.88 947.43 Administra tion
Road 761.47 329.75 123.01 1214.23 works
PH/Conse 264.02 202.80 133.50 600.32 rvancy
Sanitation/ 179.96 51.81 -- 231.77 Drains
Street 271.90 221.70 210.89 704.49 lighting
Water 218.40 289.27 239.96 747.63
Miscellane 97.36 82.34 153.41 333.11 ous
Addl. O&M 122.73 107.55 144.94 375.22 for new schemes
Town 4.64 3.65 -- 8.29 Planning
Education 61.91 14.64 -- 76.55
Total 2348.66 1677.79 1212.59 5239.04
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5. A Vision document has been prepared for the Municipalities and Corporations of the State for next 5 years taking into account the above parameters.
The Vision is to improve the quality of life in the urban areas by ensuring:
(i) Economic sustainability (ii) Consistent and reliable services (iii) Excelling in citizens satisfaction
The thrust shall be on:
(i) Efficient management of Solid Waste (ii) Best education at affordable cost (iii) Cost-effective Health Care (iv) Safe and adequate water (v) Better Utilities (vi) Creation of good environment – greeneries in cities (vii) Better roads and safety
6. The Vision Document includes all the core functions included in the statutory provisions and also the peripheral functions of the Urban Local Bodies. However, keeping in view the huge requirements of funds, the programme is divided into two Phases. Phase-I will focus on the sectors of immediate attention like:-
(i) Solid Waste Management (ii) Water Supply (iii) Street Lights (iv) Education and computer aided education (v) Better Health Care delivery (vi) Improvement of bus stands and bus shelters (vii) Market places, etc.
7. Phase-I is time bound and will be completed before March, 2006, while Phase-II, which includes long gestation projects will be started within this period, but execution of which will be spread over the next five years. The total plan is for a sum of Rs.4554.65 crores and the outlay for the Phase-I will be Rs. 2351.14 crores. The approaches to the execution of the plan will focus on public- private partnership, transparency and social audit.
The funding for the Vision Plan shall be met from the following sources:-
(a) Own funds (b) Government Grants (c) Borrowal from funding agencies (d) Public contribution and sponsorship. (e) Devolution Funds
8. Work on preparation of Detailed Project Reports and preparation of estimates has already started. Once the Plan is launched, it will integrate with the on-going schemes of Corporations and Municipalities. Apart from this, the Municipalities and Corporations are toning up their administration by launching:- (i) Improved citizens' charter (ii) Transparency in Governance (iii) Launching of web-site – Customer Redressal System and (iv) IEC activities on Health and Sanitation
Solid Waste Management
9. In pursuance of the Supreme Court Judgment, the Government of India, Ministry of Environment and Forests formulated and enacted the Municipal Solid Waste (Management and Handling) Rules 2000 in exercise of the powers conferred by the Environment (Protection) Act 1986 of Government of India. The SWM rules 2000 stipulated, among other things, certain compliance criteria.
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The above Rules also made Municipal authorities responsible for complying with these Rules and Regulations within the prescribed time frames.
10. The Hon'ble Chief Minister's 15 Point Programme lays clear emphasis on improving environment. The average per capita waste generated in urban areas ranges from 300gms - 700gms. The average waste collected by Urban Local Bodies per day is between 9000 - 10000 MT. In Municipalities, out of 3392 wards, segregation of garbage at source is followed in 2314 wards and door to door collection of garbage is followed in 2900 wards. The target is to achieve 100% source segregation, disposal of garbage in scientific manner and make the towns garbage-free. Special efforts have also been taken to clear the accumulated garbages in the bus stands, markets and other important places.
11. The Urban Local Bodies face problems ranging from non-availability of required staff strength, fleet inadequacy, lack of modernization, lack of suitable compost sites, labour problems etc. in handling the solid waste and the waste collection efficiency ranges between 60% - 70%. The Government has laid emphasis on privatization to take care of these problems. The privatization of Solid Waste Management is slowly gaining momentum.
12. Considering the importance of land which is required for setting up of compost yards and knowing that almost all the ULBs are not financially sound, the Government have sanctioned Rs.3.25crores to 49 Municipalities for purchase of land. So far, 12 Municipalities have purchased land for compost yard and similar activities are under progress in other Municipalities.
13. During 2004-05 an assistance of Rs.150 lakhs under Part-II scheme will be given to 40 Municipalities as 25% grant for purchase of land.
14. To improve the existing infrastructure facilities under solid waste management, Rs.448 lakhs has been sanctioned to 62 Municipalities and Rs.408 lakhs to 5 Corporations under equalization funds as part of SFC Devolution Grant in March 2004. The funds will be utilized in the current year.
15. For improving various infrastructure facilities under solid waste management, Rs.600 lakhs have been sanctioned to 8 Municipalities in Chennai Metropolitan Area.
16. All the Urban Local Bodies in the State have taken effective steps for segregation at source with special IEC efforts for zero garbage concept. In addition to this, field staff handling solid waste management viz. Sanitary Inspector/ Sanitary Officer / Municipal Health Officer have been given training on the subject under World Bank assisted TNUDP-II .
During 2004-2005 it has been programmed to motivate Self Help Groups (SHGs) in preparing manure from degradable waste in the compost yards.
Basic Amenities Programme
17. To tide over the financial crisis of weaker Municipalities, an amount of Rs.10.00 crores has been sanctioned for the provision of basic amenities like water supply, street lights and for laying and repairing of roads. Financially weaker Municipalities will be benefited under the special programme this year. e- Governance
18. To provide efficient and quick service to the public, computers were procured and installed at all Corporations and Municipalities under TNUDP.II. Computer professionals also have been appointed in all the Urban Local Bodies to handle the systems and to provide consumer services.
19. Using Information Technology tools, 18 application software modules have been developed to help in Municipal functions. The software modules are on birth and death certification, property tax collection, water charges collection, financial accounting system, non-tax items, trade licenses, building plan approval etc., Out of the total 18 modules, 14 main modules are in operation in all the Corporations and Municipalities and the rest will be operationalized this year. This will help improve the efficiency and transparency of municipal administration.
20. Additional supply of computer hardwares, softwares and peripherals for all Corporations and Municipalities including Municipal Administration Department and Directorate of Town Panchayats
4 at a cost of Rs.17.00 crores have been made in November 2003. The installation and commissioning have been successfully completed in March 2004.
21. For better service delivery, online citizen services through service centres and banks are in operation in 3 Corporations and 87 Municipalities and are in implementation stage at other 2 Corporations and 15 Municipalities. This will be completed during 2004-05. The next stage in e- governance is to launch website for all the ULBs and to network the ULBs to regional head quarters and to the Commissionerate in Chennai. This exercise will be completed in 2004-2005.
Water Supply
22. Due to deficient rainfall during the past five consecutive years, there is an unprecedented drinking water scarcity in the entire State and the situation has posed serious problems in some of the urban local bodies. Government have initiated various drought relief measures to tide over the situation. Last year 2384 works were taken up at a cost of Rs.16.16 crores out of which 2077 works have been completed so far. New hand pumps mini-power pumps have been provided wherever needed, in addition to source improvement & flushing works. An awareness campaign on water conservation, prevention of leakages/pilferages, re-use / recycling, etc., will be launched vigorously in all the urban local bodies this year.
23. New water supply schemes have been completed in 9 Municipalities and in one Corporation. Out of 21 new scheme works taken up by the Tamil Nadu Water Supply and Drainage Board in 2003-2004, works in 10 Municipalities and in one Corporation are under progress and the same will be completed this year. 24. Besides, it is proposed to implement water supply augmentation schemes in 10 Municipalities, viz., Virudhunagar, Aruppukottai, Chengalpattu, Pollachi, Gobichettipalayam, Thuraiyur, Sivagangai, Bodinayakanur, Cumbum and Erode during 2004-2005.
Rain Water Harvesting
25. Urban Local Bodies have successfully implemented Rain Water Harvesting structures in the buildings for recharging ground water through various Rain Water Harvesting techniques and the achievements during the year 2003-2004 are detailed below.
Achievements
Government Buildings 7647
Private Residential Houses & 2315520 Institutional and Commercial Buildings Water Sources 36,977 Road Margins 2546 Thorough Fares 99 Streets 2335 Corporation & Municipal Tanks 409 Bridges & Culverts 365 Total 23,65,898
26. The awareness programme will be continued during the current year also, to avail full benefits in the ensuing monsoon.
27. Under the special programme for Renovation, Restoration and Rehabilitation of water bodies within the Municipal limits, out of the total of 594 water bodies , 376 temple tanks, lakes and ponds, etc., have been covered so far, and the balance will be covered this year. Government have released an amount under Reserve Fund, Incentive Fund and Equalisation Fund for Rain Water Harvesting which is an important component.
Underground Sewerage Schemes
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28. Underground Sewerage Schemes are functioning in 15 urban towns comprising 4 Municipal Corporations and 11 Municipal towns. Even in these towns, the coverage is only partial.
29. Under the National River Action Plan, Interception, Diversion and waste water treatment works for abatement of pollution in the river Cauvery have been taken up in the Municipal towns of Erode, Bhavani, Komarapalayam and Tiruchirappalli. Works in Tiruchirappalli and Erode have been completed and the works in Bhavani and Komarapalayam will be completed during this year.
30. Under the National River Conservation Programme, new sewerage schemes are being implemented in Tiruchirappalli, Madurai, Tirunelveli, Karur, Kumbakonam, Thanjavur, Mayiladuthurai with assistance from Government of India at the total cost of Rs.575.30 crores
31. A new sewerage scheme for Alandur town, taken up with assistance from TNUIFSL has already been put into beneficial use of the public. Phase-II of the scheme is under progress and will be completed this year.
32. Action has also been taken to implement new sewerage schemes for Ambattur, Tiruvottiyur, Kancheepuram, Ambur, Ranipet, Wallajahpet, Tiruppur, Tambaram, Pallavaram, Avadi, and Chengalpattu. Investigation works for new sewerage schemes for all the district headquarter towns will be completed this year and implementation will be taken up this year. The project will cost around Rs.1800 crores. Moreover, investigation works for new sewerage schemes will be taken up in 30 other municipal towns.
Street Lighting
33. Quality control measures have been implemented in the purchase of spares and street light materials in the Urban Local Bodies to effect energy savings and to ward off complaints of inferior / inadequate lighting.
34. Emphasis will be laid to provide additional street lights wherever required in all Municipalities and Corporations within the norm of one pole for every 30m, during the Current year. It is also proposed to privatize the operation and maintenance of streetlights for a region on a trial basis and the model will be experimented in Tiruppur region this year and based on the results, replication of the model in other regions will be considered. Similarly, a Self Help Group (SHG) will be involved in operation and maintenance of Street lights. Inundation Prevention Measures
35. Due to heavy showers in Chennai city and surrounding Municipal towns in November 2002, many areas suffered inundation resulting in heavy damages to roads and other infrastructure. As an immediate measure, an infrastructure investment plan was formulated at an estimated cost of Rs.31.12 crores to tackle the inundation problems in the 8 Municipalities surrounding Chennai City and 175 works including construction of new storm water drains, upgradation of damaged roads, etc., were taken up and completed on war-footing. During the current year, the following works are proposed to be taken up, at an estimated cost of Rs.91.74 crores under Phase –II of the above programme:- i) Sewerage Schemes .. Rs.46.55 Crores ii) Solid Waste management .. Rs.11.19 Crores iii) Water Supply .. Rs.10.40 Crores iv) Storm Water Drains .. Rs.15.00 Crores v) Roads .. Rs. 8.60 Crores ------Total Rs.91.74 Crores ------
Integrated Sanitation Programme
36. Realising the need for improved sanitation facilities in urban areas, Schemes for Integrated Sanitary Complexes have been taken up for implementation by the Government of Tamil Nadu with financial assistance under TNUDP-II in order to provide public sanitation facilities viz. toilets with bathing and washing areas. The facilities have been planned for those who are living below poverty line in slum areas or where open area defecation is a problem.
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37. All Municipal Corporations (Except Chennai) and all the Municipalities are implementing this scheme. The programme also envisages support from the existing community organisations and structures to provide the maintenance. The special feature of the programme is active participation of the user group and this is ensured from the preliminary stages of the programme viz. selection of project sites till handing over the sanitary complex to user groups for maintenance by them.
38. Construction of 525 ISP complexes were undertaken during 2001-2002 at a cost of Rs. 52.50 crores with the following funding pattern:-
Total Total ISP VAM ULB Total No. of Estim (TNUDP- BAY Contribution Units -ated II Funds) Grant (Corporations Cost (GOI) Special & Selection Grade Municipalities) (Rs. in Crores) 525 52.50 29.00 16.80 6.70 52.50
39. All these ISPs have been completed and have been handed over to the user groups for further maintenance, except one at Chengalpattu which is held up due to litigation. These integrated sanitary complexes are all very successful and are serving the people well.
40. Based on the feedback and response received from the elected representatives, Commissioners of Corporations and Municipalities, it was decided to construct small sanitary complexes with 10 seaters in lesser extent of spaces so that more number of slums can be covered. 905 such units have been taken up during 2003-2004 at an estimated cost of Rs.36.20 crores. The unit cost fixed is Rs.4.00 lakhs.
Total Units Total Cost GOI Grant GOTN Share
(Rs. in Crores) 905 36.20 18.10 18.10
Out of 905 units, 426 units have been completed so far and remaining units are under progress and will be completed this year.
Swarna Jayanthi Shahari Rozgar Yojana Scheme
41. Under the Urban Self Employment Programme component of SJSRY, Government of India released a sum of Rs.648.580 lakhs during the year 2003-2004, to cover about 5700 persons for assistance in self employment ventures. The State Government released the proportionate State share to an extent of Rs.217.11 lakhs to cover approximately 1700 persons. Under the Urban Wage Employment Programme Rs.174.946 lakhs has been released by Government of India and Government of Tamil Nadu for creating 86,430 mandays of employment. The District Urban Development Agencies have been activated and District Collectors have been instructed to take keen interest in the implementation of the programme.
Reducing Urban Poverty:
42. For the year, 2004-2005 the Government of India is likely to provide funds to the tune of Rs.15 crores, and the State share of about Rs.5crores will also be added to total availability funds under the scheme. About 17000 urban poor will be benefited by this scheme in 2004-2005. It is proposed to increasingly implement the SJSRY through Self Help Groups and Neighbourhood Groups. It is planned to increase the number of Self Help Groups in Urban Areas from the present number of 40, 000 to 1,00,000 over the next five years. Such Self Help Groups will also be increasingly involved in the provision of Municipal services like sanitation, Solid Waste Management, Car Park maintenance etc, which will provide avenues of employment to the poor women and also result in an improvement in the
7 efficiency of services. Further, Self Help Groups will also be involved in the execution of schemes under the NSDP.eg., formation of culverts, street lights, rain water harvesting structures and shelter upgradation. Efforts will be undertaken to improve the linkages between the local bodies and the Women's Development Corporation in order to ensure that poor women get the full benefit of the Urban anti-poverty schemes. Similarly, this will also result in better implementation of the Chief Minister's Entrepreneurship Development Programme for women and improve prospects for micro enterprise development by women. Special efforts will be made to improve the marketing opportunities for products made by such Self Help Groups assisted under the SJSRY. Shops/ Mobile vans will be allotted by Local Bodies to Self Help Groups for this purpose.
National Slum Development Programme
43. The National Slum Development Programme was introduced in the year 1996-97 with the assistance from Government of India. The main object of this scheme is to provide basic amenities such as, roads, culverts, water supply, street lights, construction of community latrines, Integrated Sanitation and rain water harvesting structures in the slum areas. The programme will be taken up in a focused manner in all urban areas in the State. The above amenities will be provided in slum areas with the objective of making these slums habitable and improving the quality of the life of the people living there. There will be a special focus on involvement of community groups like Self Help Groups in execution of works under the NSDP.
44. Out of the allotment of Rs.2520 lakhs released during 2003-2004, a sum of Rs.2267.91 lakhs has been allotted for basic amenities and 10% of the allotment, about Rs.251.99 lakhs was ear marked under the Shelter Upgradation Programme for upgradation of existing houses for the people living in slum areas which will benefit 1510 families. Allotment for this scheme has been disbursed to ULBs for implementation of the scheme.
45. During the year 2004-2005, out of the anticipated allotment of Rs.27.11 crores, a sum of Rs.24.40 crores will be allotted for basic amenities works and 10% of the allotment, (i.e.), Rs.2.71 crores will be spent under Shelter Upgradation Programme for upgradation of existing houses of the people living below poverty line which will benefit about 1510 families.
Eleventh Finance Commission Recommendation Grants
46. Under the Eleventh Finance Commission recommendation a sum of Rs.3867.00 lakhs has been provided as grant for the year 2004-2005 for the Urban Local Bodies. This grant will be utilised for the maintenance of civic services in urban areas which includes provision of primary education, primary health care, safe drinking water, street lighting, sanitation including drainage and scavenging facilities, maintenance of cremation and burial grounds, public conveniences and other common property resources.
Integrated Development of Small and Medium Town (IDSMT)
47. During 2004-2005, it is proposed to provide funds from Government of India and Government of Tamil Nadu to the tune of Rs.46 crores under IDSMT to take up 80 projects in 20 Municipal Towns for the development of various infrastructure facilities.
Mega City Programme
48. It is proposed to provide funds from Government of India and Government of Tamil Nadu to the tune of Rs.144 crores to 8 Municipalities and 9 erstwhile Town Panchayats in and around Chennai Metropolitan area during 2004-2005 for the improvement of commercial and service projects.
Second State Finance Commission Grants
49. A sum of Rs.418.71 crores was provided in the State Budget 2003-2004 for release to Urban Local Bodies as per the recommendation of Second State Finance Commission. For the year 2003-2004 Government have released as sum of Rs.390.01 crores towards distribution to 6 Corporations and 102 Municipalities. The Government took a policy to release of grant on monthly basis which is very helpful to the ULBs. The grant to the local bodies as recommended by the Second State Finance Commission is distributed among the Corporations and Municipalities as per the formula given under.
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87% Towards Devolution 2% Reserve Fund 5% Incentive fund 6% Equalisation Fund
50. From April 2003 onwards, efforts were taken to transfer grants through Electronic Transfer System. From August 2003 onwards all funds are being transferred from Commissionerate of Municipal Administration through Electronic Transfer to all the 102 Municipalities and 5 Corporations. This has saved a lot of time and expenditure on postage.
Puratchi Thalaivar MGR Nutritious Meal Programme
51. To carry out repairs to Noon Meal Centres in Municipalities and Corporations, a sum of Rs.803.93 lakhs was provided by Government for the year 2003-2004 and necessary action has been taken for distribution of the above funds to the Municipalities and Corporations through District Collectors concerned. A special thrust will be given in 2004-05 to ensure that all buildings in which Noon Meal Centres in Urban local bodies are located have adequate safety features; necessary corrective measures will be undertaken, through public - private partnership wherever possible. Transparency
52.In order to ensure greater public participation and transparency in municipal governance, it is proposed to start regular public contact programmes in all Urban Local Bodies, jointly by the Chairpersons and Commissioners on a monthly basis where the local public can ventilate and seek redressal of their grievances. A public grievances day will be conducted on each Tuesday in all Urban Local Bodies.
Improving incomes of Urban Local Bodies
53. Keeping in view the huge requirement of funds for providing the requisite level of civic services, all Urban Local Bodies will be geared to improve revenue collection. Special focus will be placed on improvement of property tax collections by bringing unassessed properties into the assessment net and using better mechanisms to identify such unassessed properties.
Human Resource Development Measures
54. It will be the endeavour of Government to promote Human Resource Development in Urban Local Bodies through appropriate training of elected representatives and officials in matters relating to ethical practices in local governance, public responsiveness, team building and need based planning.
Urban Reforms Incentive Fund
55. In order to provide an impetus to increased availability of land for housing, generate rental housing stock, simplify procedures and introduce more efficient ways in which property transactions are conducted, improve the resource base of urban utilities and municipal bodies in order to provide better urban infrastructure and improve on the availability of civic amenities, Government of India, Ministry of Urban Development and Poverty Alleviation has created a fund, namely, the Urban Reforms Incentive Fund with an outlay of Rs.500 Crores per annum. The fund will be in existence during the Tenth Plan Period i.e. 2002-2003 to 2006-2007.
56. Under this fund, allocations will be made to States every year during the Tenth Plan Period, in proportion to their Urban Population and allocation to Tamil Nadu is Rs.47.75 Crores per annum. To access the funds, Government have signed a Memorandum of Agreement with Government of India on 1.8.2003 in which commitment is expressed to carry out reforms on the following fronts:-
i) Repeal of the Urban Land Ceiling and Regulation Act;
ii) Reform of Rent Control Laws;
iii) Introduction of computerized processes of registration;
iv) Reform of Property Tax so that it may become a major source revenue of urban local bodies;
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v) Levy of reasonable user charges by Urban Local Bodies, with the objective that full cost of O & M (Operation and Maintenance) is collected by end of the Tenth Plan period;
vi) Introduction of Double entry system of accounting in Urban Local Bodies.
The Memorandum of Agreement also details the milestones to be achieved under each area of reform, every year during the Tenth Plan Period. These measures relate to the subject matter of the Departments of Revenue, Housing and Urban Development, Commercial Taxes besides this Department.
A sum of Rs.26.2625 crores was released by the Government of India to this State in 2003- 2004.
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II. CORPORATION OF CHENNAI
1. The Chennai Corporation is governed by the Chennai City Municipal Corporation Act, 1919. The Corporation area covers an extent of 174 sq. km. and has a population of 42.16 lakhs (2001 Census). Chennai Corporation has strived to make Chennai clean and green with good motorable roads and good health and educational infrastructure for the underprivileged under a citizen friendly and responsive administration. To achieve the above objective during 2003-2004, Chennai Corporation spent Rs.168.20 crores on infrastructure development and during 2004-2005, an outlay of Rs.258.31 crores has been proposed as capital outlay towards infrastructure development.
Roads 2.During 2003-2004, a sum of Rs.127.90 crores was spent towards relaying of 647 K.Ms. of interior roads and 104 K.Ms. of Bus Route Roads besides relaying of 328 K.Ms. of footpaths.
In 2004-2005, an amount of Rs.141 crores has been provided to relay interior and bus route roads.
Bridges
3.Chennai Corporation aims to make Chennai City free from level crossings. To fulfil this objective, 7 over bridges will be taken up for construction during 2004-2005 at a cost of Rs.34 crores.
Storm Water Drain
4. A sum of Rs.16 crores was spent towards construction / improvements to storm water drains during the financial year 2003-2004. Long pending work of major canal desiltation was taken up and works completed in respect of 15 out of 16 canals maintained by Chennai Corporation. During 2004-2005, Rs. 22 crores has been provided for construction of storm water drains in new areas and to complete the missing links, besides desilting of storm water drains.
Solid Waste Management
5. To make Chennai a garbage - free city, a massive community mobilization drive was launched for door to door collection and segregation of the garbage at source, which has found tremendous success among the citizens, with 100% coverage of the city under door to door collection.
During 2004-2005, it is proposed to improve transfer stations and two land fill sites as per the norms prescribed under Municipal Solid Waste (M & A) Rules 2000, along with fleet augmentation. Government have released a sum of Rs.10 crores towards creation of a corpus fund to enable the Corporation to undertake Solid Waste Management measures.
The Corporation will start the work on a major solid waste management plan in 2004-2005.
Parks
6. To make the city greener, 74 parks and 45 traffic islands were improved besides tree plantation on the roadsides of major roads at a cost of Rs.1.54 crores during 2003-2004.
During 2004-2005, 76 parks will be improved at a cost of Rs.4 crores. An amount of Rs.6 crores has been provided as grant to develop an ECO park at Adyar Creek .
During 2004-2005, it has been proposed to plant road side trees and improve traffic islands, mobile medians, vacant lands below flyovers and roadside unused lands of all departments with landscaping. A total outlay of Rs. 17 crores has been provided for the improvement of parks and playfields during 2004-2005.
Education
7. The Corporation of Chennai aims at providing equality of opportunity through quality education. To mobilize this vision, it is proposed to fulfill the basic infrastructure needs of all schools run by the Corporation in a phased manner and to improve the quality of education through technology
11 aided learning, to achieve 100% enrolment at elementary level, 100% retention and achievement of expected skills at all levels.
During 2003-2004, activity based teaching methodology was introduced for the first and second standard students after due training to all teachers in teaching learning material preparation.
During 2004-2005, 65 science labs will be provided in High Schools and Higher Secondary Schools at a cost of Rs.40 lakhs. All the schools will be provided with 3-phase electricity connection at a cost of Rs.1.50 crores, besides an outlay of Rs. 1.30 crores towards furniture procurement and construction of 190 classrooms at a cost of Rs.10 crores.
For the first time, 90 ICDS mobilize will be improved by providing water supply, toilets, electrification and hygienic kitchen with concrete roofing at a cost of Rs.2.50 crores.
Health 8. Corporation of Chennai has envisaged short term and long term plans to tackle the mosquito menance in the city.
Effective action has been pursued to tackle the cattle nuisance in the city by removing 2238 cattle from the city by entrusting them to Blue Cross. The same will be intensified during 2004-2005. The adolescent segment constitutes 16% of the population in Chennai city. During 2004-2005 it is proposed to conduct adolescent health programmes to take care of adolescent health through community mobilization and awareness creation as well as through school level intervention. To tackle open air defecation, 284 numbers of public conveniences were repaired and given a face lift at a cost of Rs. 3.63 crores during 2003-2004. A major initiative was taken up during 2003-2004 to improve the condition of 18 numbers of burial grounds by providing greenery and landscaping at a cost of Rs.1.63 crores. The same shall be pursued during 2004-2005 for the remaining burial grounds.
During 2004-2005, Chennai Corporation has proposed to improve the health service delivery for mother and child welfare in the city, especially to the slum population.
Due to the sustained efforts of the Corporation, 4.84 lakhs children were covered under Pulse Polio against a target of 4.50 lakhs.
The Maternal Mortality Rate (MMR) has been brought down to 0.2%. The Corporation has directed its action to achieve zero MMR.
Efforts are underway to reduce substantially the present Infant Mortality Rate of 14.1.
The number of laparoscopy cases has increased by more than 4 times, i.e. from 147 in 2002- 2003 to 645 in 2003-2004.
Finance
9. The Property tax collection, which stood at Rs.164 crores during 2002-2003, was geared up to reach Rs.209.00 crores during 2003-2004 and is expected to reach Rs.260.00 crores during 2004-2005. Now, citizens can also pay their dues on -line.
Effective steps have been taken to curtail revenue expenditure and increase expenditure on developmental schemes. Loans, which stood at Rs.230.00 crores at the beginning of the year 2003- 2004, have been brought down to Rs.127 crores. Chennai Corporation has saved Rs.10.20 crores during 2003-2004 due to debt swapping as well as early retirement of loans. e-Governance
10. The Year of 2003 - 2004 has witnessed significant progress in e-Governance measures in Chennai Corporation. Records relating to Birth and Death and Property Tax dues were hosted on the Web and citizens can now pay their dues to Chennai Corporation on line. Lease - line connectivity was provided to all the 10 zones of Chennai Corporation and on-line renewal of trade licenses was implemented successfully. Lease line connectivity will be gradually extended to Units and Divisions. On-line issue of Birth and Death certificates was also started on experimental basis in Zone III. During 2004-2005, on-line property tax collection and collection of other dues and on line issue of
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Birth and Death certificates will be implemented at Zonal offices. Citizens will also be able to book community halls, burial grounds and obtain building permit certificates on line.
Urban Poverty Alleviation Programme
11. Chennai Corporation is implementing SJSRY in Chennai District. A good administrative structure has been created with the help of Arivoli Iyakkam Staff and volunteers to implement the scheme along with frequent interaction with the bankers. A fresh Below Poverty Line (BPL) survey was conducted during December 2003 among slums covering 380649 households out of which 261742 households were identified as living below poverty line.
During 2004-2005, it is proposed to provide a subsidy of Rs.45,65,492 towards loan to individual beneficiaries, at the rate of 15% of the loan amount subject to a maximum of Rs.7500 per beneficiary. An amount of Rs.14,94,127 will be provided as subsidy towards starting income generation activities by the Self Help Groups at the rate of 50% of the total loan amount subject to a maximum of Rs.1.25 lakhs, Rs.2,10,567 shall be provided as revolving funds to the Self Help Groups at the rate of Rs.1,000 per member.
Under infrastructure, it is proposed to provide a mobile van to sell SHG products in Chennai City. Similarly, Corporation also proposes to allot shops to SHGs on priority basis. The Corporation also have a plan to promote canteens run by SHGs in various Corporation Offices and Schools.
Under development of community structures, till now, 1509 neighbourhood groups, 100 neighbourhood Committees and 10 Community development Societies have been formed. During 2004-2005, it is planned to form 4500 neighbourhood groups 200 neighbourhood Committees and 20 Community development Societies.
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III. CORPORATION OF MADURAI
Roads
1. During the year 2004 - 2005, 50 Kms of roads would be relaid with B.T. and 30 Kms of streets would be laid with cement road at a total cost of Rs. 2160.00 Lakhs.
Water Supply
2. During the year the Corporation will spend Rs.30.00 lakhs on relaying of old pipes to avoid sewerage contamination in drinking water and also to extend water supply pipes to unserved areas.
Second Pipe Line to Madurai
3. A consultant has been appointed by TNUDF for preparing a DPR for a major scheme for drawing 600 Mcft. of water from Vaigai Dam to serve the North Zone. The approximate cost of the scheme is Rs. 50.00 crores, for which funds will be sought through TNUDF. Tourism Development Scheme
4. Under the Central - State Tourism Funds, the Corporation will construct a Yatri Nivas at the shopping complex in the bus stand area in the south zone. Along with the Yarti Nivas, to generate revenue, a shopping complex would be constructed with a loan assistance of Rs. 143.00 lakhs from TUFIDCO.
Integrated Sanitary Complex
5. Sixty Nos. of integrated sanitary complexes will be constructed this year at a cost of Rs.240 lakhs in areas having problems of open defecation.
Underground Sewerage Schemes
6. At present Under Ground Sewerage scheme is being implemented at a cost of Rs.165.00 crores under N.R.C.P. Out of 6 Phases, at present Phase - 1 works have been completed at a cost of Rs.43.03 crores and Phase -II work at a cost of Rs.70.25 crores is in progress and will be completed by 2005.
National Slum Development Programme
7. In 2004 - 2005 various improvement works will be taken up at a cost of Rs.48.00 lakhs in the slums to provide basic amenities.
Central Market shifting
8. The Central Market which is presently situated in the heart of the city near the temple will be shifted to Mattuthavani.
Creation of a Truck Terminal
9. To decongest the traffic in the city, a truck terminal at a cost of Rs.3.31 crores will be constructed on the Dindigul Highway. A new site is to be identified.
Street Lights
10. During 2004-2005, 1500 Nos. of Sodium Vapour Lamps will be provided on the bus route roads, 4 streets and extension areas at a cost of Rs.200.00 Lakhs.
Solid Waste Management
11.The Corporation has planned to mordenise the collection of solid waste with a new fleet of tri-cycles, autos, compactors, tippers etc., at a cost of Rs.2.72 crores during this year.
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IV. CORPORATION OF COIMBATORE
Roads
1. During the year 2004-05, a sum of Rs.10 crores will be spent on the maintenance of B.T. Roads. To minimise the maintenance cost, Coimbatore Corporation is planning to introduce new technology by converting non-recyclable plastic waste into powder through machines and mixing with bitumen for laying new plastic roads.
Water Supply
2. A sum of Rs.1 crore will be spent for the replacement of old Siruvani main and distribution pipes. Drought relief works including sinking of bore wells will be taken up at an estimated cost of Rs.3 crores during 2004-05.
Underground Drainage System
3. For implementation of underground drainage system in Coimbatore city, a detailed project report at an estimate cost of Rs.177 crores has been prepared and is under the consideration of the Government. A sum of Rs.53 crores is earmarked during 2004-05 part of which will be as loan assistance through the TNUDF.
Special Schemes
4. Detailed project reports have been prepared for the construction of a sub way in Gandhipuram at a cost of Rs. 150 lakhs, indoor station at G.V. residential area (Rs.120 lakhs), new bus-stand at Mettupalayam road (Rs. 480 lakhs), new shopping complex at Gandhipuram cross cut road (Rs.275 lakhs), modern multi storied parking place (Rs.100 lakhs), new flower market and auction centre at Mettupalayam road (Rs.43 lakhs), vegetable and fruit market at Ukkadam (Rs.116.60 lakhs), and a new fish and other meat market (Rs.129.18 lakhs). The overall estimated cost of these works is Rs.1413.78 lakhs. During 2004-05, Rs.500 lakhs is earmarked for these works.
The South Zone office building will be constructed at an estimate of Rs.90 lakhs.
A sum of Rs.3.20 crores has been proposed in 2004-05 for construction of additional school buildings and toilets and Rs.1 crore for the provision of basic facilities for schools.
Construction of the Thayir Itteri bridge across the Sanganur tank linking Sivanandha colony Bye-pass road and Rathnapuri road will be taken up at a cost of Rs.80 lakhs. Works on other bridges will also be taken up at a cost of Rs. 70 lakhs in 2004-05.
The Coimbatore Zoological park will be developed at an estimate cost of Rs. 97 lakhs, to be obtained as grant from Central Zoo Authority. A sum of Rs. 20 lakhs will be allotted during 2004-05. e-Governance
5. For the implementation of E-Governance, two more service centers, in addition to the already existing six centers, will be opened at a cost of Rs.30 lakhs.
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V. CORPORATION OF TIRUCHIRAPALLI
Water Supply
1. It is proposed to takeup Water Supply Improvement works in the erstwhile Srirangam Municipal area and a provision of Rs.200.00 lakhs is provided in the Budget Estimate for 2004-2005. The Detailed Project Report is under preparation by TWAD Board. In addition, Rs.40.00 lakhs is provided for extension of pipeline and Rs.25.00 lakhs for purchase of water supply materials.
Underground Sewerage Scheme
2. The new Underground Drainage Scheme is under implementation for the omitted areas in erstwhile Tiruchirappalli Municipality and for Golden rock and Srirangam areas under the NRCP at an outlay of Rs.11667.00 lakhs. A provision of Rs.4000.00 lakhs has been provided in the Budget 2004-2005, involving Rs.3002.00 lakhs from the Central and State Government and Rs.998.00 lakhs from Local Body and Public Contribution.
Integrated Sanitation Programme
3. It is proposed to construct Integrated Sanitary Complexes in 10 needy places in the Corporation limit under the VAMBAY Scheme, at an estimated cost of Rs.40.00 lakhs during the year 2004-2005, involving a grant of Rs.20.00 lakhs and Rs.20.00 lakhs from the Corporation funds.
Solid Waste Management
4. It is proposed to purchase modern conservancy vehicles at an estimated cost of Rs.50.00 lakhs, substituting old conservancy vehicles. In addition, it is also proposed to undertake the improvements of the existing compost yard.
Roads
5. It is proposed to take up conversion of mud roads into B.T. roads during the year 2004-2005 at an estimated cost of Rs.500.00 lakhs. Out of this, Rs.360.00 lakhs will be obtained from TUFIDCO as loan and the balance Rs.140.00 lakhs will be borne by the Corporation. The Detailed Project Report is under preparation. It is also proposed to improve the existing main bus route roads at a cost of Rs.300.00 Lakhs.
Street Lights
6. It is proposed to purchase street light materials for annual maintenance at an estimated cost of Rs.60.00 lakhs.
National Slum Development Programme
7. It is proposed to take up Slum Development works at an estimated cost of Rs.48.00 lakhs during the year 2004-2005 under the NSDP scheme. The City Corporation will get an amount of Rs. 16.00 lakhs as grant and the balance will be met from its own funds.
Repairing of Noon Meal Centres
8. It is proposed to do repair work of the Noon Meal Centres at an estimated cost of Rs.90.00 lakhs during the year 2004-2005, with a grant of Rs.65.00 lakhs. e-Seva Centres
9. All public utility services will be brought under one umbrella under "Seva Maiyyams" launched by the Corporation. The Corporation is already implementing e-governance comprehensively.
Under the above scheme, a sum of Rs.20.00 lakhs has been proposed for this purpose.
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Education
10. It is proposed to carryout the repairs of school buildings and also construction of additional school buildings during the year 2004-2005 at an estimated cost of Rs.100.00 lakhs under the Education Fund.
Self Sufficiency Scheme
11. It is proposed to improve basic amenities at an estimated cost of Rs.60.00 lakhs with the grant amount of Rs.45.00 lakhs and a public contribution of Rs.15.00 lakhs during 2004-2005.
Yanaikulam Shopping Complex
12. It is proposed to construct a shopping complex at Yanaikulam (Singarathope) at an estimated cost of Rs.768.23 lakhs and a sum of Rs.330.00 lakhs has been provided in the Budget Estimate for 2004-2005. The Corporation will take a loan of Rs. 300 lakhs for this purpose.
Construction of New Bus Stand
13. It is proposed to construct a new bus stand at Devadanam at an estimated cost of Rs.630.92 lakhs and an amount of Rs.100.00 lakh is provided in the Budget Estimate for 2004-2005 for acquisition of land. It is also proposed to extend the existing Central Bus Stand by acquiring Railway land for which a provision of Rs.100.00 lakhs has been made.
Link Road
14. Widening of link road near Mahatma Gandhi School, Tennur to Bharathidasan Salai at an estimated cost of Rs.320.00 lakhs, is proposed. A sum of Rs.220..00 lakhs will be obtained from LPA and rest of the funds will be provided by the Corporation.
Drought Relief
15. It is proposed to take up drought relief works at an estimated cost of Rs.150.00 lakhs in the year 2004-2005.
Construction of Working Women Hostel
16. It is proposed to construct a Working Women's Hostel at an estimated cost of Rs.75.00 lakhs, with Central Government financial assistance of Rs.67.50 lakhs.
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VI. CORPORATION OF SALEM Roads
1. The Corporation maintains 644.54 kms of roads. It is proposed to resurface and form 55 numbers of roads at an estimated cost of Rs. 2.15 crores.
Water Supply
2. The project for construction of 16 numbers of reservoirs at an estimated cost of Rs. 18.34 crores has been proposed by the TWAD Board, which will be funded by TNUDF.
Solid Waste Managements
3. It is proposed to purchase dumper placers, compactors, tippers, excavators and steel containers at a cost of Rs. 1.00 crore during the year 2004 – 2005 for transport of solid waste.
Swarna Jayanthi Shahari Rozgar Yojana: (SJSRY)
4. SJSRY scheme provides assistance for the self employment of people below poverty line. This year under the scheme 300 urban poor will be assisted for setting up of individual enterprises in which priority will be given to women members of Self Help Groups. Under DWCUA loan with subsidy for group entrepreneurship will be given to 15 groups involving 150 women. Training programmes will be organized for skill development at a cost of Rs. 2000/- per trainee for 400 urban poor out of which 60% will be women.
National Slum Development Programme: ( NSDP)
5. Development activities such as provision of roads, drainage, street lights etc., will be taken up at an estimated cost of Rs. 48 lakhs in slum areas.
Vambay Toilets
6. Under this scheme 30 places have been selected for the construction of 30 nos of ISP (VAMBAY) toilets for the poor in slum areas. The estimate cost for each ISP toilet is Rs. 4.00 lakhs per unit. The total cost comes to Rs.1.20 crores.
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VII. CORPORATION OF TIRUNELVELI
Water Supply
1. It is proposed to take up detailed investigation for implementation of a water supply scheme in Thachanallur area in Tirunelveli Corporation.
Solid Waste Management
2. A proposal has been sent to Government of India for implementation of Solid Waste Management Scheme at a cost of 125 lakhs in Tirunelveli Corporation. The emphasis will be on modernisaztion of fleets, compost yard management and IEC. Privatisation of Solid Waste Management will be taken up during 2004-05 to bring better responsiveness.
Underground Drainage Scheme
3. A sum of Rs.300 lakhs will be spent for the restoration of roads under the UGD Scheme in Tirunelveli Corporation.
Swarna Jayati Shahari Rozgar Yojana (SJSRY)
4. Under SJSRY a sum of Rs.26.84 will be spent during 2004-05 to assist below poverty line families.
National Slum Development Programme (NSDP)
5. A sum of Rs.48 lakhs will be spent under NSDP during 2004-05 to provide basic infrastructure in slum areas. e-Governance
6. A sum of Rs.45 lakhs will be spent for the purchase of computer peripherals under e- Governance during 2004-05 for enlarging the e-governance network in the City. VIII. TAMIL NADU URBAN DEVELOPMENT PROJECT II
1.The Tamil Nadu Urban Development Project II is a World Bank assisted project implemented at a cost of US $105 million (Rs.441 crores). The Project comprises two components, viz., lending component and non-lending component. The Tamil Nadu Urban Development Fund (TNUDF) was provided with US $80 million (Rs.336 crores) for lending programmes and the Project Management Unit(PMU), TNUDP II was provided with US $25 million (RS.105 crores) for non-lending components to meet expenses on Institutional Development and Urban Investment for Integrated Sanitation Programme.
Institutional Development Component
2. The following activities have been taken up towards capacity building of Urban Local Bodies.
i) Preparation of City Corporate Plans and 5 year Capital Investment Programme:
The preparation of the City Corporate Plans has been already completed for 11 Cities/Towns in Pilot and first Phase. In the year 2003-2004, interim status reports were prepared for another 20 Cities/Towns. City Corporate Plan preparation for these 20 Cities /Towns shall be completed during 2004-2005. ii)Performance Indicators:
Performance Indicators have been developed with the requisite Software, for measuring the performance of the Urban Local bodies covering all the functions of the Local Bodies like Water Supply, , Finance, and Urban Governance. This will be hosted in the NIC Chennai Server after collecting Data from all the ULBs during 2004-2005. iii) Strengthening the Managerial, Financial and Technical Capacities of the Urban Local Bodies through training of elected representatives and officials of Urban Local Bodies:
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29 training programmes were conducted for 8380 ULB Officials and elected representative in 414 batches. Another 32 Training Programmes have been programmed for the rest of the project period (Up to November 2004), as part of the Training Operational Plan.
iv)Study tours for Officials and elected representatives:
Five study tour programmes within the country have been programmed to expose the elected representatives and officials of the Urban Local Bodies to the best practices in the field of Urban Management and Municipal Governance.
v) Studies:
a) A Study on land use planning which enlists the responsibilities and functions of the Urban Local Bodies arising out of the amendment of the 74th Constitutional Amendment Act has been completed. This will be put into use in 2004-2005.
b)Study of Municipal Structure and Functions to review and suggest improvement for the existing Municipal structure and functions has been completed . This will be put into use in 2004-2005.
vi) Operational Manual:
a)The following manuals have already been prepared and supplied by the PMU, TNUDP II to all the Urban Local Bodies viz., 5 Corporations, 102 Municipalities and 611 erstwhile Town Panchayats;
i) Accounting Manual ii) Computer Manual iii) Engineering Manual
b)The Quality Assurance manual is being prepared and will be supplied to the Engineering personnel of the Urban Local Bodies. The Engineering Personnel of the Urban Local Bodies will be trained under this programme during 2004-2005.
c) The Municipal Manual is being revised and will be completed before 2004.
vii) Computer Support:
Large scale computerization has been effected to improve the efficiency of service delivery systems and to have transparency in transactions. During the year 2003-2004, Computer hardware, software and allied peripherals have been installed and commissioned in 5 Corporations (except Chennai), 102 Municipalities, 7 Regional Directorates of Municipal Administration Offices, 611 erstwhile Town Panchayats, 16 Assistant Directorates of Town Panchayats, Directorate of Town Panchayats, Project Management Unit, Commissionerate of Municipal Administration and Municipal Administration and Water Supply Department.
The Geographical Information System (GIS) is planned to be implemented in Coimbatore and Tiruchirapalli Corporations, Rajapalayam Municipality and Chennai Metropolitan Development Authority during 2004-2005. Basic computer training has been commenced for 2027 personnel of the Urban Local Bodies. Application software modules covering 18 functions have been developed and installed in local bodies during 2003-2004. These will be operationalised in the year 2004-2005.
viii) Accrual based Accounting system:
After the successful introduction of the accrual based accounting system in 102 Municipalities and 5 Municipal Corporations, the accounts of all urban local bodies are being prepared and finalized under this system. This system has been introduced and implemented successfully in all the erstwhile 611 Town Panchayats.
ix) Integrated Sanitation Programme:
The Integrated Sanitation Programme has been implemented under TNUDP II with the assistance of the World Bank to benefit those living below the poverty line in 5 Corporations (except
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Chennai), 102 Municipalities and 611 erstwhile Town Panchayats. This Programme provides a package of public sanitation services for the urban poor. The programme provides for construction of community toilets, including bathing and washing areas separately, both for men and women with additional facilities like water supply, lighting, garbage collection, sewerage and approach roads.
Under this programme, 525 sanitary complexes have been constructed by the Urban Local bodies at an estimated cost of Rs.52.50 crores, in 5 Corporations (except Chennai) and 102 Municipalities. In the erstwhile Town Panchayats, 720 toilets for women have been completed at an estimated cost of Rs.18.72 crores.
The special feature of these complexes is that the participation of the user groups is ensured from the beginning of the programme and the sanitary complexes are operated and maintained by such groups.
For ensuring sustainability in the operation and maintenance of the sanitary complexes even after the tenure of the TNUDP II, the user groups are being trained by regional NGOs.
TAMIL NADU URBAN DEVELOPMENT PROJECT III
With a view to continuously make available resources for urban infrastructure, the third Tamil Nadu Urban Development Project has been evolved with proposed financial assistance to the tune of Rs.750 crores from the World Bank. The objective of the proposed project is to further consolidate the achievement of the TNUDP II projects, continuing to improve urban infrastructure services in Tamil Nadu in a sustainable manner. This objective would be achieved through institutional development component and urban investment component.
⇒ Capacity building: Strengthening the managerial, financial and technical capacities of ULBs through an institutional development programme, in line with the urban sector reforms.
⇒ Financing : Mobilising resources for basic urban infrastructure investments (viz., water supply, sewerage and sanitation, solid waste management, roads, transport networks, storm water drains and street lighting etc.) and provide incentives for investments in low income neighbourhoods through capital grants. Also through securing sustainable funding sources for urban infrastructure investment, through TNUDF and municipal bond issuance.
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IX. TAMIL NADU URBAN DEVELOPMENT FUND (TNUDF)
1. High level of urbanisation in the urban conglomerates of Tamil Nadu has created increased demand for the provision of quality infrastructure. Further, municipal infrastructure has to cope with technical advancements and this requires long term funds at affordable cost. Besides, the demand is so huge that the private sector investment is inevitable to supplement the financing of urban infrastructure. To bridge the demand – supply gap and to promote public-private partnerships in this critical sector, the Government of Tamil Nadu had established the Tamil Nadu Urban Development Fund (TNUDF) on a ‘Public-Private Partnership’ mode, with the participation of ICICI, HDFC and IL&FS to provide long term debt for civic infrastructure on a non-guarantee basis and to make the urban local bodies sensitive to market conditions. The Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) is the fund manager of the TNUDF.
2. The aim of the TNUDF is two fold, viz., facilitation of capital investment in this sector and to strategically reduce the imbalances of infrastructure among the urban population by financing qualitative facilities. The TNUDF seeks to achieve the following:-
• Fund urban infrastructure projects which improve the living standards of the urban population.
• Facilitate private sector participation in infrastructure through joint venture and public- private partnership.
• Operate a complementary window, the Grant Fund, to assist in addressing the problems of the urban poor.
• Improve the financial management of urban local bodies enabling them to access capital markets.
3. The World Bank, has assessed the TNUDF to be a successful project with over 75% disbursement towards asset creation in the municipal sector within the project period. The fund has so far approved 192 projects at a total project cost of Rs.1070 crores and has sanctioned loan assistance of Rs.604.84 crores cumulatively. The projects range from commercially viable projects such as commercial and market complexes to civic oriented projects such as water supply, storm water drains, solid waste management and underground drainage. During the FY 2004 – 2005, it has been proposed to sanction financial assistance of about Rs.50 crores, by promoting around 10 urban projects with an outlay of Rs.193 crores. TNUDF’s sector wise portfolio of loan sanctions is furnished below:
TNUDF’s Sector wise Portfolio (Sanctions):
SECTOR Rs. in Crores In %
Bridges & Roads 292.97 48% Bus Stations & Markets 21.57 4% Sewerage & Sanitation 228.51 38% Water Supply 50.67 8% Storm Water Drains 5.63 1% Others 5.49 1% Total 604.84 100%
Capital Market Access:
a) TNUDF has undertaken two initiatives in resource raising for the Urban sector. One is the Revenue Bond of Madurai, the first of its kind in India by a Municipal Corporation, where the debt for the asset is being serviced by the revenue generation from the asset, without resorting to the general revenues of the Corporation. This was facilitated by TNUIFSL and the size of the issue was Rs.29 crores.
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b) The other major link between city civic need and capital market access is established through the Water and Sanitation Pooled Fund (WSPF). The Government of Tamil Nadu, in order to reform the capital market access at the municipal level on a consortium basis formed the Water and Sanitation Pooled Fund, so as to pool the credit risks of the ULBs to make capital market access practical for the small and medium sized Urban Local Bodies. The first bond issue of Rs. 30.41crores saved a sizable amount in the debt servicing of the Urban Local Bodies, thereby freeing up the resources of ULBs for further augmentation. USAID has extended guarantee to the extent of 50% of the principal for this bond issue. Thirteen ULBs participated in this consortium. This pooled financing structure was the first of its kind in India.
c) TNUIFSL has facilitated the floating of the Bond issue of CMWSSB to the extent of Rs.42 crores. This is the first effort by the CMWSSB in accessing the capital market.
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X. TAMIL NADU URBAN FINANCE AND INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED
1.The Tamil Nadu Urban Finance & Infrastructure Development Corporation Limited (TUFIDCO) was created to extend financial assistance to various Govt. agencies to develop infrastructure including water supply, drainage, roads, bridges, flyovers, commercial complexes and various civic amenities in the urban areas of the State. TUFIDCO is also the nodal agency for two important Centrally Sponsored Schemes, namely the Megacity Programme (MCP) of Chennai and the Integrated Development of Small and Medium Towns (IDSMT).
Mega City Programme
2. With a view to improve the quality of life in urban areas, the Government of India had introduced the Megacity programme. Five major cities, Mumbai, Calcutta, Chennai, Bangalore and Hydrabad have been selected for the Megacity Programme. In respect of Tamil Nadu, the programme covers the Chennai Metropolitan Area, which includes Chennai Corporation, 8 Municipalities and 28 erstwhile Town Panchayats under the Greater Chennai Area. 50% of the cost of the project is advanced as soft loan. The funds for Megacity programme are provided as equal grant from the Government of India and the Government of Tamil Nadu. The funding pattern of the project would be such that the remaining 50% is met by institutional finance and/or own funds of the implementing agency. So far, from its inception, the fund sanctioned by the Govt. of India for the scheme is Rs.189.71 crores.
Performance:
Last year (2003-04), TUFIDCO sanctioned projects worth of Rs.128.36 crores. which included a 'Slum Improvement' Programme at Chemmancheri & Thalankuppam, Flood Alleviation Programme in Chennai Metropolitan Area and Improvement of Water Supply, Creation of III Source to Tambaram & Pallavaram. For the current financial year 2004-05, projects worth Rs.275.00 crores with a Mega City share of Rs.138.00 crores under this scheme are proposed.
Integrated Development of Small & Medium Towns (IDSMT)
3. Large-scale migrations away from smaller and medium towns happen for want of better living conditions. The Government of India formulated the IDSMT scheme to strengthen infrastructure and thereby living conditions in such small and medium towns. This scheme is in operation since the year 1979-80 and so far projects worth of Rs.216.01 crores have been sanctioned in the State, covering 144 towns.
Performance:
For the financial year 2003-04, Govt. of India had approved projects worth of Rs.31.29 crores for 18 towns. During the current financial year, 2004-05, projects worth Rs.46.00 crores are proposed.
TUFIDCO Infrastructure Scheme
4.Institutional finance is an integral part of both the Megacity programme and Integrated Development of Small and Medium Towns (IDSMT) schemes. The local body and other government departments have to approach banks and other financing institutions to meet 50% of the cost of infrastructure schemes. On many occasions, such financing comes with higher, if not, exorbitant rates of interest. To mitigate the liability of such heavy interest burdens, TUFIDCO introduced an Infrastructure Funding Scheme under which loans for the project under the Megacity and IDSMT schemes are sanctioned, based on appraisals on a case-by-case basis. Last year, TUFIDCO sanctioned projects worth Rs.477.73 crores under this scheme. During the current financial year (2004- 05), Rs.500.00 crores are planned for sanction under TUFIDCO’s Infrastructure Scheme.
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XI. NEW TIRUPPUR AREA DEVELOPMENT CORPORATION LIMITED
1. The New Tirupur Area Development Corporation Limited (NTADCL) was established in February, 1995 under the Indian Companies Act of 1956 as a Special Purpose Vehicle (SPV) by Government of Tamil Nadu Infrastructure Leasing & Financial Services Limited (ILFS) and Tirupur Exporters Association (TEA) with the primary objective of implementing the Tirupur Area Development Project (TADP). This is the first Water Sector related project developed under the public-private partnership framework in the country.
Scope of the Project
2. Under the Project, facilities would be constructed to provide water supply access to the Dyeing and Bleaching industries in Tirupur and the domestic consumers in Tirupur Local Planning Area (TLPA) comprising the Tirupur Municipality (TM), 15 Village Panchayats and erstwhile 3 Town Panchayats. In addition, water supply is proposed to be provided to five wayside Unions which lie enroute on the water transmission system corridor. The foundation stone for the Project was laid by the Hon’ble Chief Minister on 20th June 2002.
Construction of the Project commenced in November 2002 and physical progress of 50% has been achieved by March 31, 2004. The project is expected to be completed on schedule. The first phase of the Project will be completed by April 2005 when supply will be made to Industries. The second and final phase of the Project (i.e.) extending water supply to the Tirupur Municipality, villages and the sewer system, will be completed by October 2005.
FINANCIAL STATUS
3. The total cost of the project aggregating to Rs.1023 crore has been fully tied up as per details below:
Equity : Rs. 322.70 crore Subordinate Debt: Rs. 86.50 crore Debt : Rs. 613.80 crore ------Total : Rs.1023.00 crore ------
Security was created in favour of the Lenders on February 20, 2003. A sum of Rs.497 crore has been spent till March 31, 2004. The entire equity contribution of Rs.50 crore from Government of Tamil Nadu has been provided.
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XII. TAMIL NADU WATER SUPPLY AND DRAINAGE BOARD
Human health and productivity depend on the provision of safe drinking water and sanitation. During successive plan periods, the water supply sector has received high priority, which is reflected in the impressive coverage achieved so far. The widening gap between demand and supply, scarce resources and sustainability issues are the present major challenges in the sector.
2.The State is mostly covered by hard rock formations where the availability of ground water is uncertain. The failure of the monsoon during the past five consecutive years, coupled with indiscriminate exploitation of ground water has led to the scarcity of drinking water in certain pockets. Hence, to ensure source sustainability, Government have given the highest priority for augmenting water resource development through rainwater harvesting. The Government is also committed to managing the available resources effectively, keeping in mind the increasing demands of the people.
TAMILNADU WATER SUPPLY AND DRAINAGE BOARD
3. Tamilnadu Water Supply and Drainage Board is the main implementing agency in executing Water Supply and sewerage schemes in the State, excluding Chennai Metropolitan area. It is implementing various programmes in the water supply and sewerage sector, in coordination with the district administration and various departments under the control of both the State Government and Government of India. PERFORMANCE ON THE PROGRAMMES ANNOUNCED FOR 2003-04:
4.Rural Water Supply
The following rural water supply schemes have been implemented at a total expenditure of Rs. 471.28 crores during 2003-04.