Tamil Nadu Urban Infrastructure Financial Services Limited City Corporate Plan cum Business Plan for Pudukottai Municipality Final Report April 2008 ICRA Management Consulting Services Limited Contents 1. INTRODUCTION ............................................................................................................................................ 1 1.1 BACKGROUND TO THE STUDY ..................................................................................................................... 1 1.2 OBJECTIVES, SCOPE OF WORK AND STUDY MODULES .................................................................................. 1 1.3 APPROACH AND METHODOLOGY ................................................................................................................ 2 1.4 ORGANIZATION OF THIS REPORT ................................................................................................................. 4 2. TOWN PROFILE AND CITY DEMOGRAPHICS ........................................................................................... 5 2.1 TOWN PROFILE ........................................................................................................................................ 5 2.2 PUDUKOTTAI MUNICIPALITY ........................................................................................................................ 6 2.3 POPULATION AND OTHER SOCIAL INDICATORS OF PUD-M .............................................................................. 6 2.4 POPULATION PROJECTIONS........................................................................................................................ 7 3. ECONOMIC STATUS AND TOWN PLANNING ............................................................................................ 9 3.1 ECONOMIC DEVELOPMENT ......................................................................................................................... 9 3.2 OCCUPATIONAL PATTERN ........................................................................................................................ 11 3.3 LAND USE AND GROWTH MANAGEMENT ..................................................................................................... 11 4. RAPID URBAN ASSESSMENT – SERVICES, ISSUES AND GAPS .......................................................... 13 4.1 WATER SUPPLY ..................................................................................................................................... 13 4.2 SEWERAGE AND SANITATION ................................................................................................................... 14 4.3 SOLID WASTE MANAGEMENT (SWM) ....................................................................................................... 16 4.4 ROADS, BUS STANDS AND STREET LIGHTS ................................................................................................. 18 4.5 URBAN SERVICES FOR POOR ................................................................................................................... 19 4.6 MARKETS AND OTHER ASSETS.................................................................................................................. 20 4.7 SOCIAL INFRASTRUCTURE........................................................................................................................ 21 4.8 SUMMARY - PERFORMANCE VIS-A-VIS SELECT INDICATORS .......................................................................... 22 5. URBAN GOVERNANCE AND MANAGEMENT .......................................................................................... 24 5.1 POLICY OVERSIGHT AND INSTITUTIONAL FRAMEWORK – STATE LEVEL ........................................................... 24 5.2 GOVERNANCE STRUCTURE OF PUDUKOTTAI MUNICIPALITY .......................................................................... 26 5.3 MANPOWER POSITION ............................................................................................................................. 28 5.4 ROLE OF OTHER AGENCIES ...................................................................................................................... 29 5.5 REFORMS UNDERTAKEN BY PUDUKOTTAI MUNICIPALITY .............................................................................. 30 6. ANALYSIS OF FINANCIALS ....................................................................................................................... 31 6.1 INCOME AND EXPENDITURE SUMMARY OF PUDUKOTTAI MUNICIPALITY .......................................................... 31 6.2 REVENUE STREAMS OF ULB IN TAMIL NADU .............................................................................................. 33 6.3 REVENUES ............................................................................................................................................. 33 6.4 COSTS .................................................................................................................................................. 37 6.5 LOANS AND FINANCE CHARGES ................................................................................................................ 38 7. VISION & STRATEGIC PLAN, CIP AND ASSET MANAGEMENT PLAN .................................................. 40 7.1 POTENTIAL THEMES FOR ECONOMIC DEVELOPMENT .................................................................................... 40 7.2 SWOT ANALYSIS ................................................................................................................................... 41 7.3 STRATEGIC PLAN – FOCUS AREAS AND TIME HORIZON ................................................................................. 42 7.4 POPULATION PROJECTIONS UNDERLYING THE STRATEGIC PLAN ................................................................... 42 7.5 WATER SUPPLY ..................................................................................................................................... 42 7.6 SANITATION ........................................................................................................................................... 45 7.7 SOLID WASTE MANAGEMENT ................................................................................................................... 47 7.8 ROADS, TRANSPORTATION AND STREETLIGHTS ......................................................................................... 48 7.9 URBAN SERVICES FOR THE POOR ............................................................................................................. 50 7.10 SOCIAL INFRASTRUCTURE AND OTHER URBAN AMENITIES ............................................................................ 51 7.11 CAPITAL INVESTMENT PLAN – SUMMARY ................................................................................................... 52 7.12 TECHNICAL ASSISTANCE REQUIREMENTS ................................................................................................... 53 7.13 INTERVENTIONS REQUIRED FROM OTHER AGENCIES/DEPARTMENTS OF GOTN ............................................... 53 7.14 REFORM TARGETS .................................................................................................................................. 53 7.15 ASSET MANAGEMENT PLAN ..................................................................................................................... 54 CCP cum BP - Pudukottai Municipality 8. PROJECT PROFILES INCLUDING ANALYSIS OF RISKS AND ESA CONSIDERATIONS ..................... 61 8.1 PROJECT PROFILES OF SELECT PRIORITY PROJECTS ................................................................................... 61 9. REFORM AGENDA AND TECHNICAL ASSISTANCE ............................................................................... 64 9.1 URBAN SECTOR REFORM IN TAMIL NADU – AN OVERVIEW ............................................................................ 64 9.2 REFORM AGENDA – INTERVENTIONS REQUIRED AT THE STATE LEVEL ............................................................ 65 9.3 MEASURES FOR IMPROVING FINANCIAL PERFORMANCE ............................................................................... 68 10. SUSTAINABLE FINANCIAL AND OPERATING PLAN .......................................................................... 74 10.1 FINANCIAL AND OPERATING PLAN (FOP)– TIME HORIZON, BASIS AND ASSUMPTIONS ...................................... 74 10.2 ESTIMATION OF BORROWING CAPACITY AND INVESTMENT CAPACITY ............................................................. 76 10.3 PROJECT SPECIFIC CASH FLOWS .............................................................................................................. 77 10.4 POSSIBLE FINANCING MIX FOR ACHIEVING FULL INVESTMENTS ...................................................................... 77 10.5 FINANCIAL AND OPERATING PLAN............................................................................................................. 78 CCP cum BP - Pudukottai Municipality List of exhibits Exhibit 1.1 IMaCS’ approach and methodology .................................................................................................... 3 Exhibit 2.1 Population growth trend ...................................................................................................................... 6 Exhibit 2.2 Literacy and sex ratio ........................................................................................................................... 7 Exhibit 2.3 Population Projections ........................................................................................................................