Tamil Nadu Urban Infrastructure Financial Services Limited City Corporate Plan cum Business Plan for Pattukottai 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. CITY PROFILE AND CITY DEMOGRAPHICS .............................................................................................. 5 2.1 LOCATION AND CONNECTIVITY .................................................................................................................... 5 2.2 PATTUKOTTAI MUNICIPALITY ....................................................................................................................... 6 2.3 POPULATION AND OTHER SOCIAL INDICATORS OF PAT-M............................................................................... 6 2.4 POPULATION PROJECTIONS........................................................................................................................ 7 3. ECONOMIC PROFILE AND LAND USE ..................................................................................................... 10 3.1 ECONOMIC DEVELOPMENT ....................................................................................................................... 10 3.2 OCCUPATIONAL PATTERN ........................................................................................................................ 11 3.3 LAND USE AND GROWTH MANAGEMENT ..................................................................................................... 12 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 ................................................................................................. 17 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 .......................................................................... 23 5. URBAN GOVERNANCE AND MANAGEMENT .......................................................................................... 24 5.1 POLICY OVERSIGHT AND INSTITUTIONAL FRAMEWORK – STATE LEVEL ........................................................... 24 5.2 GOVERNANCE STRUCTURE OF PATTUKOTTAI MUNICIPALITY ......................................................................... 26 5.3 MANPOWER POSITION ............................................................................................................................. 28 5.4 ROLE OF OTHER AGENCIES ...................................................................................................................... 29 5.5 REFORMS UNDERTAKEN BY PATTUKOTTAI MUNICIPALITY ............................................................................. 30 6. ANALYSIS OF FINANCIALS ....................................................................................................................... 31 6.1 INCOME AND EXPENDITURE SUMMARY OF PATTUKOTTAI MUNICIPALITY......................................................... 31 6.2 REVENUE STREAMS OF ULB IN TAMIL NADU .............................................................................................. 32 6.3 REVENUES ............................................................................................................................................. 32 6.4 ANALYSIS OF COSTS ............................................................................................................................... 37 6.5 LOANS ................................................................................................................................................... 38 7. VISION & STRATEGIC PLAN, CIP AND ASSET MANAGEMENT PLAN .................................................. 39 7.1 POTENTIAL THEMES FOR ECONOMIC DEVELOPMENT .................................................................................... 39 7.2 SWOT ANALYSIS ................................................................................................................................... 40 7.3 STRATEGIC PLAN – FOCUS AREAS AND TIME HORIZON ................................................................................. 40 7.4 POPULATION PROJECTIONS UNDERLYING THE STRATEGIC PLAN ................................................................... 40 7.5 WATER SUPPLY ..................................................................................................................................... 41 7.6 SANITATION ........................................................................................................................................... 43 7.7 SOLID WASTE MANAGEMENT ................................................................................................................... 45 7.8 ROADS, TRANSPORTATION AND STREETLIGHTS ......................................................................................... 47 7.9 URBAN SERVICES FOR THE POOR ............................................................................................................. 49 7.10 SOCIAL INFRASTRUCTURE AND OTHER URBAN AMENITIES ............................................................................ 49 7.11 CAPITAL INVESTMENT PLAN – SUMMARY ................................................................................................... 50 7.12 ASSET MANAGEMENT ............................................................................................................................. 53 8. PROJECT PROFILES INCLUDING ANALYSIS OF RISKS AND ESA CONSIDERATIONS ..................... 59 8.1 PROJECT PROFILES ................................................................................................................................ 59 CCP cum BP - Pattukottai Municipality 9. REFORM AGENDA AND TECHNICAL ASSISTANCE ............................................................................... 62 9.1 URBAN SECTOR REFORM IN TAMIL NADU – AN OVERVIEW ............................................................................ 62 9.2 REFORM AGENDA – INTERVENTIONS REQUIRED AT THE STATE LEVEL ............................................................ 63 9.3 MEASURES FOR IMPROVING FINANCIAL PERFORMANCE ............................................................................... 66 10. SUSTAINABLE FINANCIAL AND OPERATING PLAN .......................................................................... 71 10.1 FINANCIAL AND OPERATING PLAN (FOP)– TIME HORIZON, BASIS AND ASSUMPTIONS ...................................... 71 10.2 ESTIMATION OF BORROWING CAPACITY AND INVESTMENT CAPACITY ............................................................. 73 10.3 POSSIBLE FINANCING MIX FOR ACHIEVING FULL INVESTMENTS ...................................................................... 74 10.4 FINANCIAL AND OPERATING PLAN............................................................................................................. 74 CCP cum BP - Pattukottai Municipality List of exhibits Exhibit 1.1 IMaCS’ approach and methodology .................................................................................................... 3 Exhibit 2.1 Population characteristics of Pattukottai town (1961-2001) ............................................................... 5 Exhibit 2.2 Population growth trend ...................................................................................................................... 6 Exhibit 2.3 Literacy and sex ratio ........................................................................................................................... 7 Exhibit 2.4 Population Projections ......................................................................................................................... 8 Exhibit 3.1 List of categorised agricultural produce in Pattukottai town ............................................................ 10 Exhibit 3.2 Occupational distribution in Pattukottai town (2001) ....................................................................... 11 Exhibit 3.3 Land Use Distribution