Chidambaram PDF
Chidambaram PDF
Chidambaram PDF
Final Report
April 2008
The objectives of the exercise are three-fold: a) to assess existing demand-supply gaps in service
delivery and derive a comprehensive infrastructure improvement plan (including a Capital Investment
Plan), b) to identify revenue enhancement and financial improvement measures and c) to develop a
Financial and Operating Plan to implement a sustainable infrastructure improvement plan.
Population growth has shown a decreasing trend in last two decades and projection indicate
characteristics of a low population growth over the next couple of decades. This decline is largely due
to a combination of structural limitations of the town and outward migration, given limited economic
opportunities within the town. Nearly the entire town area has been developed and there is limited
scope for increase in population. The economic base of Chidambaram town is largely related to the
tourism potential from the Natarajar temple.
There is no significant industrial activity in the town, which is also reflected in the land allocated for
industrial usage (<1% of the developed area of the town). A few micro-scale industrial enterprises,
such as, weaving and cane furniture has come up in the town. Industry based employment in the town
is also only 7% of the total worker population, which is an indication of the low scale of industrial
economy of the town. Services and tertiary activities primarily relating to trade and tourism from the
major economic activity in the town.
The key economic development themes for Chidambaram town are summarized below:
1. Actively promote Chidambaram as a transit hub for a larger tourism circuit. Tourism in the
town is largely linked to the Natarajar temple and Annamalai university and peaks seasonally
(Natyanjali festival etc.). With tourist places like Pichavaram lake and the Navagraha circuit,
Chidambaram could potentially be developed as a nodal centre for tourists visiting religious sites
within and around the town all year round. The town can also actively promoted as a weekend
destination for tourists from Chennai and Pondicherry. Creation of tourist amenities would enable
attracting tourists and provide an avenue for incremental economic opportunities.
2. Exploit the town’s cultural heritage by setting up a centre of excellence in performing arts.
Chidambaram town is famous for its Natyanjali festival and has a tradition in showcasing
performing arts. This cultural association can be strengthened by establishing an academy / centre
of excellence in the bharatanatynam dance form and related performing arts. This would facilitate
greater visibility for the town which could indirectly create economic opportunities.
3. Build on the presence of Annamalai University to further strengthen Chidambaram’s
position as an Educational hub. Annamalai University, a major educational centre is located on
the outskirts of the town and also contributes to economic activity in the town. The University is a
renowned centre for higher learning with nearly 48 Departments, in 9 Faculties. The university
contributes significantly to the floating population in the town and any efforts to improve on the
educational infrastructure could lead to greater influx of people into the town and resultant
economic opportunities.
4. Create infrastructure for agricultural extension facilities and trade, given the agrarian
nature of adjoining areas. Cuddalore district continues to be significantly rural (more than 63%
rural population vis-à-vis state average of 56%) and agrarian (nearly 2.72 lakh hectares are under
cultivation). Therefore, Chidambaram could play a vital important role in agricultural extension
support and setting up of terminal markets and related agriculture infrastructure.
5. Review master plan and explore scope for extending town limits. The town faces structural
limitations for growth, given that more than 88% of the area is already developed. Extension of
town limits could facilitate an orderly growth of an urban agglomeration around Chidambaram.
CCP cum BP - Chidambaram Municipality ii
Municipal Services - Status assessment, gaps and actions being taken
Exhibit 1 presents a summary of service levels and status with respect to select indicators in Water
Supply, Sanitation, Transportation, Street lights and Solid Waste Management.
Exhibit 1 Summary of prevailing service levels – key indicators, issues and gaps
Sl. no Name of the Indicator Value Issues and Gaps / Initiatives
Water Supply
1 Daily Per Capita Supply (LPCD) ~ 76 With commissioning of proposed
2 Storage Capacity / Daily Supply (%) 44% improvement scheme, prevailing
3 Distribution Network / Road Length (%) 76% supply gap likely to be addressed
4 Water connections / Assessed properties 46% Bottlenecks prevail in distribution
(%) Connection and Collection efficiency
5 Population per Public Fountain (Nos.) ~ 129 extremely poor, even after factoring
slum population
Connection fee perceived to be high
and a deterrent.
Sanitation
6 Presence of UGD network (Yes / No) Partial Poor sanitation conditions. Proposed
7 Sanitation coverage ~ 45% UGD scheme needs to be accorded
8 Slum population per PC seat (nos.) ~ 46 highest priority
9 Storm Drain Length / road network (%) 127% Public conveniences network needs
to be expanded.
Greater thrust on maintenance and
upkeep required
Awareness programs to educate
populace on importance of sanitation
should accompany asset creation.
Roads and Street Lights
10 BT roads / Total (%) 87 % Several BT surfaced roads are in
11 Road length per Street Light (m) 40 m poor condition
Flood prone nature of town makes
roads particularly vulnerable
Solid Waste Management
11 Waste generation per capita (GMS) 641 Significant gaps in SWM practices
12 Collection efficiency (% of waste 90% Need for an integrated program to
generated) implement SWM rules and
14 Disposal area (Acres per 10,000 population 2.16 regulations on priority.
for 2027) Proposed improvements in the
15 Average vehicle trips 2.02 Dumping yard to be implemented on
16 Source Segregation and Composting No priority.
(Yes/No) Need for greater awareness creation
and investments
As seen, Chidambaram has significant gaps in sanitation and in water supply. Surfaced roads account
for 87% of total while average distance per streetlight at 40 m is significantly higher than the norm of
30 m. While the town has reasonably good coverage of storm water drains, there is need for
improving solid waste management practices including introduction of composting and scientific
disposal.
Exhibit 1 provides a summary of the income and expenditure of Chidambaram Municipality. This
summary has been prepared based on information provided by Chidambaram Municipality.
Overall, revenue declined by 6% while expenditure declined by about 10% during FY 03-06. The
revenue decline appears to be on account of decrease in devolution fund and assigned revenue, even
though own income of the municipality has shown an increase of 5%. Most of the expenditure heads
have shown a decline particularly, Salaries and finance charges.
Priority projects
Priority projects identified for implementation by Chi-M are listed below in Exhibit 4.
A list of project level / sector specific technical assistance requirements needed from CMA/TNUISFL
is given below:
1. Development of a comprehensive GIS for the town with updated information on all urban assets
including roads, water supply, sanitation etc.
2. DPR on comprehensive water supply for achieving 135 LPCD water and implementation road
map for 24x7 supply.
3. DPR for solid waste management with focus on scientific disposal and mechanised handling.
4. DPR and assistance in project structuring on PPP of remunerative projects identified in Exhibit 4
above (projects 8,9 and 10 above).
Reform Agenda
Chi-M’s ability to improve on its financial performance hinges primarily on its ability to sustain and
improve on the revenue growth noticeable in recent years.
State level
1. Implement recommendations of the Third State Finance Commission, particularly those relating
to the revenue buoyancy including property tax reform and devolution income from GoTN.
2. Ensure stability of tenure of key officials and ensure that except for extraordinary circumstances,
there should be a minimum tenure of at least 2 years for all the key positions including
Commissioner, Municipal Engineer, Manager, Town Planning Inspector, Sanitary and public
health head and Accountant. Further, guidelines need to be clarified and enforced for formal
charge handover whenever there is a transfer of officials to ensure continuity.
3. Carry out an independent assessment of skill gaps and manpower needs of ULBs to ascertain the
appropriate manpower plan in terms of skill sets and experience/seniority. This is particularly
relevant given the recent developments, specifically in urban planning and GIS, municipal
Chi-M could potentially by FY ending 2012 through focused interventions in the following areas:
1. Property tax: – through revision in ARV, widening assessee base and closer scrutiny.
2. Professional tax – sustaining a growth in assessments through widening tax base among traders
and self-employed professionals
3. User charges – through increased penetration of water connections and new sewerage
connections could potentially triple user charges income from the current levels.
4. PPP / remunerative projects - Chi-M also needs to explore land development as a revenue
enhancement mechanism and should focus on attracting private sector participation through
appropriate BOT/ SPV structures for implementing remunerative projects.
5. Energy costs - A savings of 10-15% reduction in energy costs appears imminently achievable and
could translate to annual savings of nearly Rs. 5-7 lakh on the current cost base of Rs. 40-50 lakh.
6. Collection Efficiencies – Collection efficiencies in taxes as well as user charges indicate
significant scope for improvement.
7. NGOs / Corporate participation - Intensify focus on attracting NGOs/advertising revenue for
city beautification projects to reduce reliance on grants for such projects.
CCP cum BP - Chidambaram Municipality vii
FOP, borrowing capacity and investment capacity
Exhibit 5 provides a summary of the results of the FOP prepared for a 20 year horizon. As can be
seen, Chi-M’s revenues could potentially go up to Rs. 1817 lakh by 2012 and Rs. 3429 lakh by 2017
(8.7% CAGR).
Exhibit 5 Financial and Operating Plan – summary
Estd. Revenues – FY 2008 (Rs. Lakh) 702
Estd. Revenues – FY 2016 (Rs. Lakh) 1,817
Estd. Revenues - FY 2027 (Rs. Lakh) 3,429
Revenue CAGR % - FY 2008-17 10.9%
Revenue CAGR % - FY 2008-27 8.7%
Average TE (excluding depreciation)/TR (%) 69%
Average DS/TR (%) 30%
Average DSCR 1.01
Borrowing Capacity 3891
Investment Requirement 14,911
Investment Capacity (at 50% loan) 7,782
IC/IR (including Urban Service for Poor) 52%
Based on the projections and norms (Minimum of NPV of 50% operating surplus or 30% of revenue),
the borrowing capacity of Chi-M works out to Rs. 3891 lakh. At an aggregate level, assuming loans
to be equivalent to 50% of investment, sustainable investment capacity works out to Rs. 7782 lakh,
which translates to only 52 % of the total investment requirement (including slum rehabilitation).
Therefore Chi-M would require significant grant support to implement its CIP in full. While Loans
and own funds should be used to finance core infrastructure projects which also have an identifiable
revenue component (such as UGD), Chi-M should utilize Grants from schemes like UIDSSMT and
IHSDP to undertake non remunerative projects relating to slum development, canal de-silting etc.
Further, Chi-M should get private sector participation to implement land development projects (such
as re-development of markets).
The Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) intends to assist
Chidambaram Municipality (also referred to as Chi-M in this document) in strengthening and
improving its financial position for effective capital investment management and urban service
delivery. As part of its project development and capacity building role, TNUIFSL retained ICRA
Management Consulting Services Limited (IMaCS) for assistance in preparation of a City Corporate
Plan cum Business Plan for Chi-M.
This exercise intends to build on internal efforts of Chi-M and the Vision Plan prepared by Chi-M in
FY 2005 that identified projects and development priorities in various areas of municipal functioning
and also enable Chi-M to develop a holistic, structured and consultative approach to fine-tune and
define its development priorities going forward. The objectives of the exercise are three-fold: a) to
assess existing demand-supply gaps in service delivery and derive a comprehensive infrastructure
improvement plan (including a Capital Investment Plan) required, b) to identify revenue enhancement
and financial improvement measures and c) to develop a Financial and Operating Plan for a 10-year
period to implement a sustainable infrastructure improvement plan.
A brief summary of the scope of work for the study is given below:
1
Compiled from the Terms of Reference document prepared by TNUIFSL
We have clubbed overlapping and related study outputs defined in TNUIFSL’s RFP into the
following modules:
Module I - Rapid Urban Assessment
Module II - Strategic Plan, Capital Investment Needs and Asset Management Plan
Module III - Project risk, environmental and social assessment
Module IV - Financial and Operating Plan
Module V - Policy Interventions and Technical Assistance requirements
We conducted this study in three phases. Exhibit 1.1 provides a snapshot of the approach and
methodology along the study modules and the deliverable(s) covered in each phase.
The diagnostic review was directed towards achieving an understanding of demographic and
economic profile of the town along with a review of the operating and financial performance of
Chidambaram municipality. During this phase, we focused our fact gathering on the following:
Understanding of the city context and characteristics in terms of demographics, land-use and
economic development
Assessment of current status and requirements for various urban services
Review of operational performance and service delivery of Chi-M in infrastructure segments
Compilation of information on ongoing and proposed schemes and projects.
In phase II, we validated the findings of our rapid urban assessment report through extensive
consultations in the town. The activities during this phase included:
a) Consultations with the Council - The focus of these consultations was to understand issues in
urban services and to discuss options and drive a consensus on the future vision and strategy for
This phase involved finalizing the contours of the City Corporate Plan cum Business Plan of
Chidambaram municipality. During this phase we crystallized
a) Reform agenda to be adopted by Chi-M including revenue enhancement options.
b) Policy interventions and technical assistance required for Chi-M to implement the CCP-BP.
c) Assessment of borrowing capacity of the municipality and preparation of a sustainable Financial
and Operating Plan for the municipality.
This document presents our Final Report of the study and is structured along the sections given below.
Prior to finalisation, the Draft Final Report was submitted and reviewed by TNUIFSL, CMA and Chi-
M. The report with the incorporated changes was presented to the municipal council, which passed a
Council Resolution2, approving the report in its meeting on 28.02.08
Section 1 Introduction
Section 2 City profile and demographics
Section 3 Economic profile and Land use
Section 4 Rapid urban assessment – services, issues and gaps
Section 5 Urban Governance and management
Section 6 Analysis of financial performance
Section 7 Vision and strategic plan, CIP and asset management plan
Section 8 Project profiles including analysis of risks and ESA considerations
Section 9 Reform Agenda and Technical Assistance
Section 10 Financial and Operating Plan
Chidambaram is a taluk head quarters and is located in Cuddalore district. The present Cuddalore
district was formed in 1993. Cuddalore district lies between North Latitude between 15o 5'/11o 11’ and
12o 35’ and East Longitude between 78 o 38’ and 80o. Cuddalore district encompasses an area of 3678
sq. km and includes 681 village panchayats, 16 town panchayats, 13 panchayat unions and 5
municipalities. On the Revenue Side, it includes 3 revenue divisions, 6 Taluks respectively and 896
revenue villages.
Chidambaram is a revered pilgrim center for Shaivites (or worshippers of lord Shiva). The city has
grown around the famous Lord Natraja temple, which attracts religious tourists from across the
country. Dedicated to Lord Nataraja, this ancient temple, built during the Cholas reign, is unique not
only in it being devoted to the art of Bharatanatyam, but also as one of the rare temples where Shiva is
represented by an idol rather than the customary shiva lingam. This place is also considered a gateway
to the famous navagraha temples tourist circuit and all the important temples are very near to this
place. The town is very famous for its chariot festival, which is organised annually in the city and
also natyanjali festival which held annually in the temple.
Annamalai University one of the biggest universities in South India is near this town. This famous
university is located on outskirts of the town and is well known through out the country for its
facilities for on campus and distance education and research in all most all branches of arts, science,
technology, engineering and medicine.
Chidambaram is in proximity to the coastline at an elevation of 5 meters from the MSL and has a
coastal climate that shows little variations. The general topography of the town is flat with forests and
vegetation surrounding the town. The town receives rainfall from northeast monsoons, which last
from October to December. Average annual rainfall is about 100 mm.
The town is located at a distance of about 250 km south of Chennai. This town is geographically
situated 97o 44’ East longitude and 11 24’ North latitude. It is located at a distance of about 250 Km
Southe of Chennai and well connected by major district roads with the adjoining towns such as
Cuddalore and Pondicherry at a distance of 20 Km and 43 Km respectively. It is also connected by
2
Copy enclosed with Executive Summary of report
CCP cum BP - Chidambaram Municipality 5
road with Sirkali towards south and Bhuvanagiri towards North west direction at a distance of 20 Km
and 43 Km respectively.
Since 1998, the town is functioning as Selection Grade Municipality. The Chidambaram Town
became a III rd grade Municipal town as per G.O.Ms NO 33, Finance Department 25-3-1873 and
then upgraded as II nd grade Municipal town in G.O Ms No 2302 RD & LA dt 11-4-1949. During the
year 1974, the town was upgraded as I grade Municipal Town as read in G.O.Ms No 1815 RD & LA
dt 9-8-1974.
Chidambaram municipality comprises 33 wards and extends over an area of 4.8 sq.km with an official
population of 58,968 (2001 census).
2.3 Population
Exhibit 2.2 provides a snapshot of the population growth over the last few decades.
The town witnessed population growth during 1960-80s, which can be attributed to growing
concentration of commercial activities in the town and provision of physical and social infrastructure
providing livelihood opportunities for a large section of the population.
Population growth rate has however shown a decreasing trend in last two decades. While census data
for 2001 seems to indicate an sharp decline in population, there seems to be some discrepancy in this
figure. The voter population details shown in municipal records (people > 18 years old) itself is
52,753. This corresponds to 91% of the reported Census population of the town in 2001, which
appears very high compared to the corresponding figure of 75% for the state as a whole. However, it
can be said safely that the town is getting saturated and the population growth has slowed down
significantly in the last couple of decades. This decline is largely due to a combination of limited land
available within the town for further growth and outward migration given limited economic
opportunities within the town. Nearly the entire town area has been developed and there is limited
scope for significant increase in population. Discussions with municipal officials reveal that the town
has a significant floating population with more than 100,000 tourists visiting the Chidambaram temple
every year.
Exhibit 2.3 provides details of the male and female population of the town along with details of
Literates.
Wards 2, 3, 6,7,16.22,23,30 and 33 had population more than 2,000 at the time of Census 2001. The
average population per ward in 2001 was 1749 and the median population was 1694. The town has a
population density of about 120 persons per hectare and a literacy of 65% as per the latest census data.
Population of the town is largely concentrated in the central region of the town correlating to the
higher residential density in the central parts of the town, around the Natraja Temple. Most of the
development activity has also centred around this temple.
Population projection for Chidambaram town has been made using the following methods:
a) Arithmetical Increase Method
b) Geometric Increase Method
c) Incremental Increase Method
Annexure IV provides details of the computations underlying the population projections. Exhibit 2.4
provides the summary of the population projections made for the town.
As seen, the population of Chidambaram town could be about 66,000 in the next two decades. The
town area is getting saturated and further growth would require exploring the scope for extending the
area of the town. This growth also needs to be factored in planning for urban services. The next two
sections detail the current status and the gaps with land-use management and urban service delivery.
The economic base of Chidambaram town is largely related to the tourism potential from the famous
Chidambaram Natarajar temple. Chidambaram town is the headquarters of Chidambaram taluka and
is an important religious centre.
There is no significant industrial activity in the town, which is also reflected in the land allocated for
industrial usage (>1% of the developed area of the total town). A few micro scale industrial
enterprises, such as, weaving, that has come up in the town. Industry based employment in the town is
also only 7% of the total worker population, which is an indication of the low scale of industrial
economy of the town. Services and tertiary activities primarily relating to trade and tourism from the
major economic activity in the town. This is also reflected in the occupational pattern which is
detailed below.
Exhibit 3.1 below provides a summary of the Census data of year 2001 on occupational pattern of the
town’s population is reflective of the economic opportunities and employment potential. Worker pulat
Primary 5% 912
Secondary 7% 1277
In terms of economic activities, the town is the local and regional marketing centre for trading of
agricultural produce of farmers from neighbouring villages. Paddy is the most traded agricultural
product in Chidambaram.
Exhibit 3.2 Details of Agriculture production - Cuddalore district vis-à-vis Tamil Nadu
There is no significant industrial activity in the town, which is also reflected in the land allocated for
industrial usage (less than 1% of developed area of the total town), in the town’s approved master
plan. Industrial activities in the town comprise of household activities and cane furniture
manufacturing. All these industrial activities put together, offer employment to only a few hundred
persons and the potential for economic activity arising out of secondary sector appears marginal.
Chidambaram is a well-known religious centre as well as a centre for learning. Lord Natraja’s temple
occupies the central theme of the town and draws religious tourists from all over the country and also
overseas. The temple is unique in the sense that both Lord Shiva and Lord Vishnu are worshipped in
the same temple. The town itself is built with the temple at the centre. The oldest part of the town is
spread concentrically around the temple. Tourists visiting the town form the key driver for
commercial activities in the town.
Apart from the temple, Chidambaram tourism offers an array of excursion options including the
following
Pichavaram, located 16 km east of Chidambaram, is a favourite tourist spot. 16 km from
Chidambaram Pitchavaran ranks among the most exquisite scenic spots with abundant and
varied tourism resources. The backwaters, which are interconnected by the Vellar, cut
coleroon system offers abundant scope for water sports and rowing. The pitchvasow forest
offers waterscape and backwater cruise.
Neyveli, located about 30 kms from Chidambaram, is one of the biggest industrial complexes
in the country and well known for mining of lignite.
From interactions with the local stakeholders, it was revealed that the town hosts a floating population
of about 100,000 across the year comprising mainly of religious tourists to the Natraj temple. This
flow of tourists has been a major driver of economic development in the town spurring the creation of
services and commercial enterprises.
Hence, the focus for development of Chidambaram will revolve around (1) Provision of infrastructure
services to offer good quality of life to the citizens and (2) Provide infrastructure facilities to support
service / commercial activities in the town. The Government of India under the Adishankara tourist
circuit has allocated sum of Rs 192.50 Lakh for development of road around the temple, lightening
and development of parks and providing water supply and car street.
3.2 Land-use
The administrative area of Chidambaram town extends over an area of 480 hectares and the total
developed area of the town is 432 hectares, equivalent to 88% of the total area. Almost 55% of the
land is under residential / administrative buildings. While commercial space accounts for 5% of the
total land area, industrial activity accounts for less than 1%. There is hardly any vacant land area
inside the town for further development. The Land use pattern per the 1991 master plan (the latest
available with Chi-M) is given below in exhibit 3.3.
Exhibit 3.3 Land use distribution in Chidambaram 1991 and proposed (2001)
The town is a regional commercial centre and an educational centre because of the existence of the
university. The west and south Ratha streets are the main centres of commercial activities, giving way
to intense commercial land and building use. The bus stand and railways stations are located in the
eastern part of the town. As per the master plan 1991, residential land use occupies the maximum area
in the town. Residential land use is 53.46% of the total developed are and 41.06% of the total
planning area of the town, reiterating its role as primarily a residential town.
More than 10% of the total developed area is used for public, semi public and educational purposes.
Annamalai University is situated 3 kilometers from the university and forms part of the Chidambaram
Urban Agglomeration. The municipal office, taluk office PWD office Judicial first class Munsif
office and some other public offices are situated in areas marked under this land use. Transport and
communication, including roads comprise 14% of the total developed area. About 7.5 hectares of total
land area of the town is occupied by the educational institutions, which comprise of municipal schools
and does not include the University.
This section provides details of the current status and summarizes the key issues:
As per municipal norms of 90 litres per capita per day (LPCD), the Municipality’s current
requirement for the year 2001 is 5.3 MLD, and the existing water availability is 4.6 MLD, (the rate of
current provision of water is 76 LPCD) which leads to shortfall of 0.7 MLD of water schemes which,
would be required by the municipality in the short term.
A total of 4.6 Million Litters per day (MLD) of water is supplied to the city by the two schemes.
Currently the water is supplied daily for one and half-hours, in the morning and evening. The
municipality has two water supply schemes. The protected water supply scheme, Vakkaramari Head
Water works, for the town was implemented in the year 1911 also called as the Lawley water supply
system. This is a low water supply area and the source of water for this scheme is from North Rajan
Channel (Irrigation Channel connected to Coleroon river through a supply sluice situated near head
works at Vakramaari village), which is about 6 km from the town. The head works consist of two
summer storage tanks of 164 million litres capacity each, pump house pressure filters, DG sets of 50
KVA capacity. The pumped water is conveyed to elevated service reservoirs of 3.86 Lakh litres
capacity at west car street.
The GoTN accorded administrative approval for combined water supply scheme for Chidambaram
Municipality and Annamalai Nagar. The water supply system is part of the Combined Cauvery Water
Supply Scheme at Chidambaram and Annamalai Nagar being maintained by the TWAD board. The
new scheme has been handed over to the municipality for maintenance with effect from August 2000.
The TWAD board maintains the pumping stations and pumping mains.
The source of water supply for this system is the Kollidam River at Nalamputhur village. Head works
comprise of four infiltration wells. Water from this source is supplied to Over Head Tanks at
Kanagasabai Nagar and Mana lane. Besides these two sources, the town also has seven deep
borewells (700 – 800 feet) for emergency water supply to the town. The details of these bore wells are
4.1.3 Storage
Water is pumped through headwork and transmitted to the Over Head Tanks (OHTs), located at
various places in the city. Water is then distributed through localized distribution networks, without
treatment, from the respective OHTs. The total capacities of the reservoir work out to 23.87 ML as
shown in exhibit given below.
As observed from the table, storage capacity is about 50% of the total water supply and about 44% of
demand at 90 LPCD.
4.1.4 Distribution
Water supply within the town is distributed within various zones through localised distribution
networks from the above OHTs. The length of the distribution network is 57 km and covers
approximately 76% of the road network. The details of water supply connections and tariff as
provided to us by Municipality are given below in Exhibit. The overall water connections is 5583 and
there are 226 public fountains and 244 hand pumps.
1. Requirement of Water supply to meet future needs -As per municipal norms of 90 litres per
capita per day (LPCD), the Municipality’s requirement is 7.78 MLD in 2035 to meet its water
supply needs completely. The existing water availability is 4.6 MLD, which leads to shortfall of
3.18 MLD of water schemes which, would be required by the municipality in the long term.
To address the above issues, the municipality is planning some projects in the anvil, which is outlined
in the exhibit given below:
The town has an old UGD system for carrying sewage and storm water separately in the town. About
35% of households in the town have service connections and 10% percent of the total households
have resorted to private arrangements, in the form of septic tanks and low cost sanitation units. These
together accounts for about 45% of the total households. Rest of the households are not covered and
do not have access to safe disposal systems.
Based on the per capita water supply levels of the city it is estimated that around 4.6 MLD of sewage
is generated in the town. While the quantum of sewage generated is clearly proportional to the water
supplied, the need arises to determine the stress areas in order to provide an underground drainage
network. The sullage and sewage from some houses are let into open road side drains, which find their
way to the nearest low lying areas within the Municipality. Therefore there is significant wastewater
stagnation, unsanitary conditions and mosquito breeding.
The town does not have a sewerage treatment plant. It has a 5-acre oxidation pond. In order to
overcome problems, municipality has proposed to provide a sewerage treatment plant and plan for
efficient removal and disposal of sewerage. It is proposed to divide the town into four zones along
with improvements in the existing sewerage system. Treatment systems in 56 acres area are proposed
in the Lalpuram disposal yard. The treatment plant is proposed to comprise of a waste stabilisation
pond with the final disposal in the sewerage farm. The total cost of the UGD scheme is estimated to
be about Rs. 3847 lakh.
There are 9 Integrated Sanitary Complexes (ISCs) and 37 toilets within municipality. These have
about 370 seats between them. Exhibit given below provides details of PCs within the municipality.
1 Number of Units 20 17
Storm water drains carry the wastewater in addition to storm water generated during rains. With a
total length of 95 km, the open drainage system covers the entire road network of the town. Although
pucca drains covers maximum road network yet these are drains uncovered in the town. Though
nearly all the municipal roads have some form of drains in place, there are inadequacies in the design,
with lack of connection to main channels. In a number of wards, there is water stagnation in these
drains. These drains are also being used for letting out sullage water from households leading to
CCP cum BP - Chidambaram Municipality 18
pollution and poor hygiene conditions. The desilting of these drains are also not done frequently and
in some places the houseowners have closed these drains leading to blockage of water flow. If this can
be addressed by the municipality then the water flow during rainy season would be streamlined and
would result in lesser water stagnation. In addition, such water stagnation leads to breeding of
mosquitoes and spreading of various dangerous diseases.
Specific issues relating to sewerage and sanitation in this municipality are highlighted below:
4.2.5 Projects
To address the above issues, the municipality is planning some projects in the anvil, which is outlined
in the exhibit given below.
UIDSSMT UGD System 3847 This project is needed The project has been
to address the conceptualized and the DPR
sanitation is being prepared by TWAD.
requirements of the A proposal has been
town. submitted under UIDSSMT.
UIDSSMT Storm water drains to cover 55.00 This project is needed The project has been
2.835 km to bring the extension conceptualized and a
areas under storm proposal has been submitted
water drain network of under UIDSSMT. This
the town. proposal has been put on
hold
Chidambaram generates around 35 MT of waste every day at a rate of 606 grams per capita per day.
Other than residential sources, commercial and institutional establishments also contribute
significantly to the total waste generated by the town. Managed by the health department of the local
body, on an average 33 MT of waste is being collected from all the health zones and disposed off
through dumping by the agency, which shows a collection efficiency of 95%. The major contributors
to SWM are outlined in exhibit given below.
CCP cum BP - Chidambaram Municipality 20
Exhibit 4-10:Source of SWM
2 Lab 1
The collection system available with the municipality comprises of open masonry bins where the
waste is collected by municipal staff and thereafter disposed in the disposal yard. Waste is transported
in open vehicles. The vehicular fleet available with the municipality for disposal of solid waste
includes pushcarts, tractor-trailers, trucks and tippers.
Door to door collection of waste has been implemented in 31 wards of this municipality. This
collection is undertaken thorough pushcarts. Waste collected from these pushcarts is loaded into
dumper placer bins located at various places inside the town. Solid wastes from these bins are
mechanically lifted and transported by dumper placer lorry to the municipal compost yard. Only the
market place has been privatized where the primary collection is done by the market itself and
secondary collection is done by the municipal staff. The collection used to be privatized prior to 2006
but the practice has been subsequently stopped. The number of sanitary workers at present is 129
which is also less as compared to the sanction posts of 193. Therefore, the collection suffers from
non-availability of staff and materials.
The municipality has implemented a new scheme (service charges scheme) by which garbage from
commercial establishments are collected every day by means of a separate lorry. For the above
scheme the municipality collects service charges from the establishments depending on the nature of
the commercial establishments.
At present, waste is disposed off through dumping in a disposal yard outside the town. Solid waste
from the town is disposed by open dumping in a 4.58 acres composting yard at village C.
Thandeswaranallur, situated about 2 kilometres from the town.
Being close to residential areas, this landfill site pollutes residential areas and ground water. As per
new norms the municipality requires 8.62 acres of land for the year 2025. Additional land of 8 acres
of land at Lalpuram village has been identified by the municipality and NOC from TNPCB has been
obtained. The fencing work at this site is under progress.
Specific issues and gaps in Solid waste management at municipality are highlighted below:
1. Need for integrated approach to SWM - There appears to be substantial deficiencies in Solid
Waste management within the municipality and this aspect of the municipal management requires
immediate attention across the entire chain of activities starting with segregation and collection,
transfer and improvement of disposal yard and setting up composting facilities. The municipality
is aware of the criticality of this problem and has initiated some steps to solve the same.
2. Need for segregation No segregation between bio and non-bio degradable waste is done at
present.
3. Dumping Yard - The dumping yard on the periphery of the town is in a bad state where dumping
has been carried out in an indiscriminate manner. The dumping area is not properly fenced and
waste is scattered all over the place. A new dumping yard has been purchased for this purpose
4. Deficiencies in collection - There are visible garbage pile-ups in various pockets of the town
indicating the need for better collection efficiencies. There may also be a need to intensify
awareness campaigns to educate citizens on the need for handling and segregating their waste.
5. Equipment - The condition and the capacity of vehicles used in secondary collection indicate the
need for upgradation and investment in equipment, both in transfer and in material handling at the
disposal yards.
4.3.5 Projects
To address the above issues, the municipality is planning some projects in the anvil, which is outlined
in the exhibit given below.
UIDSSMT Purchase of vehicles namely 16 19.49 This project is needed The project has been
Push carts, 11 Dumper placer to augment the SWM conceptualized and a
bins and 1 dumper placer lorry effort and cover the proposal has been submitted
left out area under under UIDSSMT.
SWM..
As per the latest master plan, roads cover 14.8% of the total developed area in Chidambaram with
total road length of 64.12 km. Almost 87% of the total road length is surfaced. Detail of type of roads
inside the town is outlined below.
The road network is planned with the temple in the middle and four ratha streets around it. A gridiron
pattern of roads covers the town thereafter. Although the town’s extent is only about 5 kilometers,
number of district roads emanate from the town. These roads include
Cuddalore road
Pitchavaram Road
Sirkazhi Road
Kattumanarkoil road
Old Bhuvanagiri road.
These five roads form the main entry and exit to the Chidambaram town. Old Bhuvanagiri road has a
90% content of two wheelers and bicycles in its traffic volumes. Kattumanarkoil road also has a near
90% of traffic made up of two wheelers and bicycles. Motorised two wheelers form almost 30% of
the traffic volume in all other roads except in Pitchavaram road where it is 35%. Bicycles make up
30% of the traffic volume on Cuddalore road whole old Bhuvanagiri road it is 60%. For Cuddalore
road, 30% of the traffic volume consists of heavy vehicles. Pitchavaram road has 22% of traffic
composed of small passengers of cars, jeeps, taxi and auto rickshaws.
As the existing highways and roads run throughout the length and breadth of the town, during peak
hours the traffic jam in the town is beyond control. So there is a proposal by the state highways
department to construct a bye-pass road, which will not enter the city and reduce the traffic snarls in
the town. This would lead to also shifting of the existing bus stand to outside the city and would help
in de-congesting the town.
There is one B grade bus stand (as per state government standards) with BT Pavement, Toilets, Cycle
Stand, and Shopping Complex. One high mast light, one pay and use toilet and one free toilet serve
the bus stand. This bus stand has 46 bays. There are no bus shelters throughout the city for town
buses.
Since this town of historical importance, the floating population in this town is very high compared to
other towns and hence it is essential to improve the amenities available in the bus stand. Existing pay
and use toilet is totally dilapidated condition and has to be rebuilt. There is also a proposal to build a
full-fledged toilet complex at the south east corner of the bus stand. Clearly given the congestion,
there is a felt need to develop a new bus stand at the periphery of the town and use the existing bus
stand as a town bus stand.
The town had 1786 streetlights of which 84% is tube lights as shown in exhibit. The town has 28
streetlights per kilometer of road length with a spacing of 42 meters between lampposts, which is not
meeting the norm of 30 meters distance.
Exhibit 4-4: Details of streetlights
Types Nos %
Total 100%
6
Distance between lamps ~40 m
Specific issues and gaps with respect to roads and street lighting are summarized below:
1. Poor quality of roads - Though nearly 90% of the road network is in the surfaced category, a
number of roads are in poor condition.
2. Inadequate road widths and lack of organised parking facilities - Increase in the number of
vehicles and inadequate road networks are leading to traffic congestion. Further, given the
important tourist centers and seasonal spikes in floating population, there is a need to earmark
dedicated parking lots and better traffic planning.
3. Encroachments along the roads - Informal activities and street vendors along the road margins
and illegal encroachments of pedestrian areas and footpaths are the other causes for traffic
congestion in the town. There is considerable commercial activity on the streets around the
temple, which also is a part of main entry and exit route to the town. Many shops along these
roads have encroached the road / footpath which creates congestion in the centre of the town.
4.4.5 Projects
To address the above issues, the municipality is planning some projects in the anvil, which is outlined
in the exhibit given below.
There are 17102 people residing in 3954 houses in 31 slums in the town. Almost 30% of the town’s
population lives in slums. There is insufficient provision of physical amenities like water supply,
storm water drains, community baths, sewers, community latrines, street lights leading to health
hazards. There is also, lack of community based facilities like primary education, primary health, and
recreational activities
4.5.2 IHSDP/BSUP
The municipality is proposing to execute scheme to the tune of Rs.417.40 lakh under this scheme.
4.6.1 Markets
There are two daily markets in the town. One of the market is situated at West Car street and the other
one is at Gnanaprakasham street. Apart from this market there is one uzhavar sandhai situated at Anna
kalaiarangam. Two fish markets are being operated at North main road and Omakulam Fish market.
There is a need to evolve a plan for modernization and upgradation of all markets. The West car street
market upgradation has already been proposed under the Vision Plan of the municipality. s
4.6.2 Schools
Chidambaram serves as a hub for education for surrounding region and thus there are number of
institutions in the town catering to the needs at all levels. There are nine municipal schools in the
town, which includes primary and middle schools. Besides municipal schools, the town also has a
number of Government and private schools offering secondary and higher secondary education.
Schools occupy a total of 10.91 hectares of developed area in the town, which is 2% of total
developed area of the town. The educational infrastructure available in the town is presented in the
exhibit below.
All the primary schools are distributed throughout the town, covering all the remote areas. Higher
secondary schools are located in the densely populated parts of the town, whereas the colleges are
located both in the central and in outskirts of the town.
Healthcare services are amongst the most vital services provided by the municipal bodies.
Chidambaram is served by government hospitals with bed strengths as shown in exhibit given below.
Supplementing govt. health care facilities, town has a healthy mix of private health care facilities,
private nursing homes with consulting and dispensary to cover the needs of the people of the town.
At present, there are no burial grounds available within the municipal limits.
4.6.5 Slaughterhouse
There are 2-slaughter houses. One of them on the north main road is equipped with treatment
facilities.
There are a total of 8 parks and playgrounds in the town. This includes 4 large municipal parks, of
which the municipality maintains two parks, and one of them is maintained by private agency. In the
open spaces, avenue plantation is low and the survival rates of trees decreases during summers due to
lack of water. There are four cinema theatres in the town with a total seating capacity of 2700. The
municipality has also provided for one reading room in the town.
The following are the summary of issues and gaps for the services given above:
Service Issues
Market The west car street market is in need of repairs and
maintenance. This improvement would involve improvement of
approach roads, shelters and parking space.
Slaughterhouse The basic issues as
(1) Lack of facilities like building and treatment facilities.
(2) Damaged Building at Ambalpuram slaughter house
(3) Lack of treatment plant at Ambalpuram slaughterhouse
Noon meal centers . The basic issues are
dilapidated condition of existing building
Inadequate toilet facility and
Inadequate dining hall facility.
4.6.8 Projects
To address the above issues, the municipality is planning some projects in the anvil, which is outlined
in the exhibit 4.18 given below.
Apart from the above projects the town is also covered under the Tourism, development program
project for which the town has been sanctioned an amount of Rs. 236.50 lakh
Exhibit 4.19 below captures the status of core urban services of the Municipality in terms of key
indicators, summarizes key issues, and gaps in these areas. The table summarizes the baseline
situation in some critical performance indicators from the analysis presented above and highlights the
critical gaps in the core urban services namely, Water Supply, Sanitation, Roads, Street lighting and
Solid waste Management
The governance of urban local bodies assumes importance with the adoption of 74th Constitutional
Amendment Act. The Act proposes mandatory elections and greater devolution of functions to the
urban local bodies including Town Corporations. The enactment of the 74th CAA provides an entirely
new framework for the governance of the Urban Local Body. The Act provides for mandatory
elections and a substantially larger devolution of functions to the ULBs, including several new areas
hitherto not under their control. The Tamil Nadu District Municipalities Act (1920) governs the
management of Municipality and Town Panchayats of Tamil Nadu. An amendment to the
Municipalities Act (1920) was made in 2003 to provide impetus for environment improvement
through Rain Water Harvesting.
The Urban sector in Tamil Nadu comes under the oversight of the Department of Municipal
Administration and Water Supply, Government of Tamil Nadu (MAWS). The institutional structure
for the urban sector is presented in Exhibit 2.3 below:
The department of Municipal Administration and Water Supply administers Urban Local Bodies and
also implements development programs for the Urban Local Bodies in the State. The department is
also responsible for planning and implementing water supply and under ground sewerage schemes in
both rural and urban areas in the State.
At present, there are 6 Corporations, 152 municipalities and about 561 Town Panchayats (smaller
ULBs) that comprise the urban sector in Tamil Nadu. The institutional framework for municipal
administration is described below:
Chidambaram municipality has two wings, namely, a political wing and an administrative wing.
While the Municipal Council, headed by a Chairperson and constituting ward level council members
constitutes the Political wing and is directly elected by the people, the Executive wing is headed by
the Commissioner and consists of various operational departments.
The municipal council with a directly elected chairman and 32 other elected councilors, each
representing a ward, forms the political wing of the municipality. Three committees viz., appointment
committee, contract committee, tax appeal committee have been formed consisting of elected
representatives and commissioner as members.
Appointment Committee
The committee is responsible for all appointments in the municipality. It consists of three members
including the commissioner.
Contract Committee
A three member contract committee is responsible for approval of all contracts costing up to Rs.5000.
Works above Rs.5000 is approved by the municipal council through a sealed tender.
This committee addresses appeals filed by the public against orders on revision of taxes. The
committee consists of five members comprising of the chairman and four councilors.
The administrative wing is responsible for the day-to-day functioning of the corporation and assists
the deliberative wing in the decision-making process. The Municipal Commissioner heads the
executive wing of the ULB, and various officers in charge of different departments or sections assist
the Commissioner in managing the ULB. Apart from its own employees, the ULB also employs daily
wage basis workers or contractual workers for services such as street lighting, and sanitation and
water supply. These include electricians, watchmen, water boys, drivers, valve operators etc. Certain
jobs like sanitary works and garbage clearance are done through contracts, where the usual procedure
followed is selection through tenders.
The Municipal Commissioner heads the administrative wing of the municipality. The functions of
the administrative wing include:
All executive functions with the Administrative Head (Commissioner)
Establishment matters such as appointment, transfers, Pay and allowances, etc.,
correspondence with Government and other departments,
Public relations, redressal of public grievances, Legal matters etc.
Sanctioning of estimates and approval of contracts, payments, etc.
Various departments under the ULB, share the responsibility of service delivery within the
Corporation. The functions of various officials/departments, under the Administrative wing, are
elucidated hereunder:
a) Commissioner. The Commissioner is at the apex of this structure and is responsible for all
activities carried out by the ULB. The Commissioner is responsible for preparation and
certification of all periodical records, returns and furnishes all information as may from time to
time be required by the Municipal Council or the Standing committees. He is also responsible for
preparation of accounts. At each general meeting, the Commissioner along with some other key
officials, discuss various issues with the elected representatives.
b) General Administration Department. - This department is responsible for establishment, other
essential matters relating to office, officers, staff and their welfare like preparation of staff pay
bills, maintenance of registers for advances, GPF, pension, PF’s etc.
c) Engineering and Water Supply Department. This department looks after all the works relating to
execution and maintenance of basic amenities like Water Supply, Drainage, Sewerage, Storm
water drains, Roads, Street lights, etc. The Engineering department is also responsible for
ensuring the quality of works and their execution within the time frame.
d) Accounts Department The Accounts Section is responsible for supervising all financial
transactions related to the CMC, advising the Commissioner on all internal financial matters,
updating financial receipts and expenditure details in accordance with the utilization of funds,
reporting deviations in expenditure of funds in any of the allocated schemes, assisting preparation
of the CMC budget, maintenance of accounts regarding stamp duty, SFC Grants, MP Grants,
maintenance of petty cash book and general cash book and attending to audit requirements and
other such accounts-related duties.
e) Revenue Department. Revenue Officer, heading the Revenue Section, is responsible for collecting
taxes such as, trade tax, house tax, advertisement tax, and entertainment tax; development
charges; transfer of properties; collection of duty; issuing notices for recovery of tax; and
monitoring revenue collections of the ULB.
f) Public Health Department. The is responsible for ULB services such as Solid waste management,
public health related works like malaria control, family planning, mother and child health care,
birth and death registration etc, and other government assisted programs related to health and
poverty reduction and awareness programs. Besides, this department is responsible for the
enforcement of the Public Health Act. The department is also involved in promotion of health
awareness programs and implements various State and Central assisted schemes like pulse polio
project, SJSRY etc.
g) Town Planning Department. The major function of this department is issue of building license,
preparation and implementation of development plans and eviction of encroachments, urban
planning and building regulation.
Exhibit 5.2 provides the manpower position vis-à-vis sanctioned posts as of October 2007.
The State Government’s line departments continue to play a crucial role in urban basic service
delivery. Sectors and agency involvement include:
a) Water Supply & Sewerage. The Tamil Nadu Water Supply and Drainage Board (TWAD) is
responsible for creation of water and sewerage infrastructure in the state.
b) Master Plan. The Department of Town and Country Planning (DTCP) prepares the Master Plan
and Comprehensive Development Plan (CDP) for the city/town, and the mandate of implementing
the Master Plan lies with the ULB.
c) Roads and Highways. Department of Highways, Government of Tamil Nadu maintains the
National, State Highways and select arterial roads that pass through the city. Municipal roads are
however created and maintained by the ULB.
d) Environmental Protection. The Tamil Nadu Pollution Control Board (TNPCB) is responsible for
environmental protection and enforcement of rulings related to the same, passed by competent
authorities.
e) Slum Upgradation. The Tamil Nadu Slum Clearance Board (TNSCB) develops improvement
schemes for notified/regularized slum settlements in the city/town. Infrastructure provision is
financed partly through loans from the Housing and Development Corporation (HUDCO) and
partly through grants from GoTN and GoI.
Fund based accrual accounting has been implemented in the urban local bodies in Tamil Nadu under
TNUDP-II and Chidambaram municipality has also been following the system for the last 4-5 years.
5.5.2 E-Governance
As per the directions of the Government of Tamil Nadu, the Chidambaram Municipality has published
its ‘Citizen’s Charter’ during 1998 to bring ULBs function closer to the people. The main focus of this
charter is to introduce transparency, responsibility and user friendliness in its service provision and
maintenance. Its basic objectives were:
Provide fast and quality service to the citizens.
Inform the public about time limits to address the problems, and
Provide transparency in administration.
This publication of citizen's charter brings people and administration closer and to let people know
how much time is required to get works done. If the work is not attended to even after stipulated
time, they can approach the Commissioner/ Chairperson. Thus, people’s rights are made known to
them. This also reduces time on the part of public, as they need not follow the movement of their
applications at the municipal office. Further, through this charter, they also create awareness about
sanitation, town improvement, tax payment and the like. Based on the time frame given for
understanding / compliance, various works/ activities can be evaluated either by citizens or by Chi-M,
paving the way for improving performance. Specific interventions in human resource development
and systems dealt with in the section 9 - Reform agenda subsequently in the report.
This section provides a summary analysis of the financial performance of Chidambaram Municipality.
Exhibit 6.1 provides a summary of the income and expenditure of Chidambaram Municipality. This
summary has been prepared based on information provided by Chidambaram Municipality.
Exhibit 6.1 Income and Expenditure
INCOME Rs.in lacks 2002-03 2003-04 2004-05 2005-06 CAGR%
OWN INCOME 283 321 315 324 5%
Property tax 117 126 133 123 2%
Profession tax 14 15 27 17 6%
Other Service Charges & Fees 20 25 27 27 10%
Water & Sewerage Charges s 39 51 54 63 17%
Other Income 91 103 74 94 1%
ASSIGNED REVENUE 133 78 52 59 -24%
DEVOLUTION FUND 105 98 122 50 -22%
GRANTS & CONTRIBUTIONS 3 2 0 3 -1%
PRIOR PERIOD INCOME 0 22 2 0
TOTAL 524 522 492 435 -6%
EXPENDITURE Rs.in lacks 2002-03 2003-04 2004-05 2005-06 CAGR %
Salaries 218 195 197 170 -8%
Operating Expenses 74 102 77 80 3%
Programme Expenses 0 0 1 1
Administrative Expenses 37 12 14 13 -30%
Finance Expenses 34 121 8 1 -67%
Depreciation 120 108 2 0 -100%
Prior Period Expenses 0 17 0 1 28%
TOTAL 363 447 297 266 -10%
SURPLUS- (Ex.cl depn) 161 75 195 170 2%
Operating Ratio (Total Exp/ Total inc) All are in percentage
Excluding depreciation 69% 86% 60% 61% 69%
Including deprication 92% 106% 61% 61% 80%
Debt Servicing Rupees in lacks
Loan Interest 10.73 85.15 4.00 1.03 100.91
Loan Repayment 17.12 11.86 10.90 4.88 44.76
Percentage of Income 5% 19% 3% 1% 7%
Source :Chi-Mply
Overall, revenue declined by 6% while expenditure declined by about 10% during FY 03-06. The
revenue decline appears to be on account of decrease in devolution fund and assigned revenue, even
though own income of the municipality has shown an increase of 5%. Most of the expenditure heads
have shown a decline particularly, Salaries and finance charges.
ULB-Income
Entertainment
Non- Tax Income Tax Income Devolution Fund
Tax
Grants and
Stamp Duty
Contribution
Property Tax
Water Charges
Profession Tax
Other Charges
Other Taxes
Other Income
3
This appears to be in view of the intercept of finance charges from the devolution fund income, which has declined during
the period. However, in the absence of break up of SFC devolution income (gross and net figures), we are not in a position to
confirm this.
CCP cum BP - Chidambaram Municipality 38
6.3 Revenues
Exhibit 6.1 provides details of revenue of Chidambaram Municipality along various heads between
FY03 and FY05. These are based on information provided by Chidambaram municipality. Audited
statements till FY 2005 and unaudited statement for FY 2006
percentage
FY03 to FY06. While professional tax has grown by 100
Rs. Lakh
20%
6%, Property Tax revenue growth has been 15%
marginal. Share of property tax in overall revenue 50 10%
has increased from 22% in FY 03 to 28% in FY 06, 5%
0 0%
whereas share of professional tax in revenue has
2002-03 2003-04 2004-05 2005-06
increased from 3% to 4% during this period. Revenue
from taxes accounts for a third of its total income base. Prop Tax
Prof. Tax
Property tax%of Total Income
Profession tax % of Total Income
Exhibit 6.3 provides a snapshot of the collection efficiency for property tax.
a) Almost stagnant property tax revenue - Property tax increased marginally in absolute terms.
b) Stagnant demand per assessment - Though there has been an overall increase in the number of
assessments, average demand per property assessed has shown stagnancy at a level of 1%.
c) Low collection efficiencies - Collection efficiency is a cause for concern. While collection
efficiency in arrear demand has grown from 17 to 24%, the recovery of current demand needs
attention as it has been reduced to 50% from 54%. Overall collection efficiency dipped to
33% in 2006-07
Exhibit 6.4 provides an analysis of key drivers for professional tax revenue.
a) Demand per assessment has increased from Rs. 916 in FY2003 to Rs. 1014 in FY2007.
b) Collection efficiency is low at 70%. Current collection efficiency dipped in 2005-06 but
appears to have recovered to 78%. The ULB should take steps to increase collections to at
least 95% levels.
percentage
Rs. Lakh
percentage
stamp duty and entertainment tax) declined
Rs. Lakh
100 20%
from Rs 133 lakh in FY 2003 to Rs. 59 lakh
in FY 2006. Share of assigned revenue in 50 10%
total income declined from 25% of revenue in 0 0%
FY 2003 to 14% of revenue in FY 2006.
2002-03 2003-04 2004-05 2005-06
Assigned Revenue
Assigned Revenue %of Total Income
6.3.6 Devolution Fund
Devolution fund
Devolution fund increased marginally from 150 30%
slightly more than Rs 104.73 lakh in FY
percenta
Rs. Lakh
100 20%
2003 to nearly Rs 121.90 lakh in FY 2005,
ge
but declined to Rs. 50 lakh in FY 2006. The 50 10%
share of devolution revenue in total has
0 0%
declined from 20% in FY 2003 to 11% in FY
2006. 2002-03 2003-04 2004-05 2005-06
Deaolution fund
Devolution fund%of Total Income
100 15%
share in total income of the municipality went
50 10%
up from 17% in FY 2003 to 21% in FY 2006. 5%
0 0%
2002-03 2003-04 2004-05 2005-06
Exhibit 6.6 provides details of costs of Chidambaram Municipality along various heads between FY
2003 and FY 2005. Though total expenditure decreased drastically from Rs 482 lakh in FY 2003 to
Rs 300 lakh in FY 2005, though it showed a tremendous increase in FY 2004 to a level of Rs 758
lakh. Decline in this year is primarily due to increase in finance charges of the municipality and
administrative expenditure has shown a steady upward trend over the period.
Exhibit 6.6 Costs (as a % of income) – FY03 and FY05
percentage
200 42%
Rs. Lakh
170 lakh in FY 2006 and its contribution declined from 42% of 150 40%
100 38%
income to 39% of income. 50 36%
0 34%
2002- 2003- 2004- 2005-
6.4.2 Operations and Maintenance
03 04 05 06
Salary & Wages Salary & wages %of Total Income
Repairs and maintenance represents 18% of total income
incurred by the municipality. In absolute terms, repairs and
maintenance expenditure has been around Rs. 75 lakh to 80 lakh except for a spike in FY 2004.
Source:Chi M
Exhibit 6.8 gives the details of power costs out of the total repair and maintenance expenditure
relating to Water & Sewerage and Street lights.
Exhibit 6.8 Power costs - Water & Sewerage and Street Lights (Rs in Lakh)
Exhibit 6.9 gives details of capital expenditure by Chidambaram Municipality during 2001-05.
Exhibit 6.10 provides the details of loans outstanding as of FY 2006 provided to us by Chidambaram
municipality.
Intere
Amoun Repayment Morator
Year of st Out standing
Lending Agency t (Rs in period ium
drawal Rate amount
Lakh) (years) Years
%
TUFIDCO - Water 203.26 1996 10% 30 5 203.26
TUFIDO (take over finance) 85.17 2002 9% 20 5 78.35
TNUDF 30.00 1995 9% 15 5 8.91
IUDP 16.5 1989 14% 20 5 13.50
Source : Chi M
The key development themes for Chidambaram town are articulated below:
7.1.1 Actively promote Chidambaram as a transit hub for a larger tourism circuit
The places of tourist interest in and around Chidambaram have been detailed in section 3 – Economic
profile and land use earlier in this report. Tourism in the town is largely linked to the Natarajar
temple and peaks seasonally depending on the festivities and cultural season (Natyanjali festival) of
the temple and the visitors to Annamalai University.
With a number of places of tourist interest including Pichavaram lake and the Navagraha circuit,
Chidambaram could potentially be developed as a nodal centre for tourists visiting religious sites
within and around the town all year round. The town also be positioned and actively promoted as a
weekend destination for people from Chennai and Pondicherry. Creation of tourist amenities and
recreation activities would enable attract and handle larger number of tourists and provide an avenue
for incremental economic opportunities.
Chidambaram town is famous for its Natyanjali festival and has a tradition of being a centre for
showcasing performing arts. This cultural association of the town can be strengthened by establishing
an academy / centre of excellence in the bharatanatynam dance form and related performing arts. This
would also facilitate greater awareness and visibility for the town which will indirectly lead to better
economic and socio-cultural opportunities.
7.1.3 Create infrastructure for agricultural extension facilities and trade, given the
agrarian nature of adjoining areas.
Cuddalore district continues to be significantly agrarian (more than 63% rural population vis-à-vis
state average of 56%) and nearly 2.72 lakh hectares are under cultivation in the district. Therefore,
urban settlements like Chidambaram play a significantly important role in agricultural extension and
farm support as well as in providing trading facilities including terminal markets and other related
agriculture infrastructure.
Annamalai University, a major educational center is located on the outskirts of the town and also
contributes to economic activity in the town. The University which started with only seven
departments in 1929 has, over the last 75 years, developed into a mighty institution of higher learning
with nearly 48 Departments, in all 9 Faculties. The university contributes significantly to the floating
population in the town and any efforts to improve on the educational infrastructure could lead to
greater influx of people into the town from adjoining areas.
7.1.5 Review master plan and explore scope for extending town limits
From the land-use pattern of Chidambaram town, it is quite clear that the town faces structural
limitations for growth given that more than 88% of the area is already developed. Given this scenario,
it maybe necessary to review the master plan for the town and adjoining areas to explore the
possibility of extension of town limits. This would facilitate an orderly growth of an urban
agglomeration in and around Chidambaram.
We had in-depth consultations with the municipal council on the development priorities and vision for
the town. Some of the key points that were articulated as a key ingredient in the Vision for the town,
apart fro the infrastructural deficiencies that were pointed out are summarized below:
Clearly, there seems to be an inclination to evolve the town’s growth along culture and arts, tourism,
religious importance and commercial potential among the local public. The economic development
themes listed earlier are consistent with this vision and outlook that emerged from our consultations in
the town with both the council and public stakeholders.
Strengths Weakness
Important religious tourism and cultural centre Limited industrial activity and employment
Transit centre for a large tourism circuit. generation potential
Large agricultural belt in the vicinity Land related limitations and congested areas
Commercial / trading hub for surrounding areas within town limit
Presence of Annamalai university Tourist traffic continues to be highly seasonal
Opportunities Threats
Scope for promoting Heritage / Religious tourism Outward migration of skilled workforce
and nearby attractions Continued constraints on ability and
Trade and Education hub for nearby villages willingness to pay for urban services in view of
Need to explore potential for reviewing master limited economic potential
plan and widening town limits to guide growth in a
planned manner.
The focus of the City Corporate Plan exercise and the strategic plan is on provisioning of urban
services in 8 areas including
a) Water Supply
b) Sewerage and Sanitation
c) Roads, Transportation and street lighting
d) Solid Waste Management
e) Urban services for the Poor
f) Social infrastructure and other urban amenities
The strategic plan for urban service delivery involves identification of interventions to address the
gaps in service delivery between the prevailing levels and the required levels of services in the short
term (covering a period of 5 years starting 2007-08 up to 2011-12) and long term (covering a period
of 15 years starting 2012-13 up to 2026-27). The geographical coverage of the plan includes the area
under the jurisdiction of Chidambaram municipality as of March 2007.
7.4.1 Population projections underlying the strategic plan
Exhibit 7.1 provides the population projections that form the basis of arriving at the sector wise
service delivery gaps, interventions required and capital investment estimates.
Baseline Projected
Unit
2007 2012 2017 2027
Population nos 60830 62,302 63,452 65,275
Households (Estd.) nos 10542 12,460 12,690 13,055
Assessed Properties nos 12220 13,083 13,960 15,013
Road length km 75 75 85 92
The population projections have been arrived at as an average of the population projected based on
Arithmetical Increase Method, Geometric Increase Method and Incremental Increase Method. A
household size of 5 is assumed (in line with Census 2001), while property tax assessments are
assumed to be 21% of population by 2012, gradually going up to 23 % of population by 2027. This
reflects a 1.1 %annual growth in number of properties during 2008-27 against a projected population
growth of 0.4 %.
Exhibit 7.2 provides the service goal/outcomes and reform targets for 2008-12.
Baseline Target
FACTOR Unit
2007 2012 2017 2027
Service Goals
Per capita supply at doorstep LPCD 76 135 135 135
Storage capacity / Total demand % 44% 50% 50% 50%
Distribution network / Road length % 76% 80% 80% 80%
Frequency of supply hours/day 3 4 4 24X7
Reform targets
Current collection efficiency % 54% 75% 90% 90%
House Service Connections / Assessed Properties % 46% 60% 65% 70%
Population per water fountain nos. 129 200 200 200
Implementation of graded / metered tariff Yes / No No Yes Yes Yes
User charge collection - % of O&M plus debt servicing % n.a 60% 100% 100%
As observed, Chi-M currently falls short of the municipal norm of 90 LPCD. However, Chi-M intends
to implement a comprehensive water supply project to provide 135 LPCD by 2012.
On the reform agenda, however, at 54% the current collection efficiency requires significant
improvement. Connection efficiency (as measured by connections / assessed properties) also is low at
54% and indicates scope for improvement. Chi-M appears to have a high level of public fountain
access which would require some level of rationalization. While user charges are already being
collected, the same need to get progressively linked to usage through implementation of metering /
graded tariffs.
Exhibit 7.3 lists out the identified set of interventions and project components in the short term over
the next 3-5 years based on ongoing initiatives and proposals of Chi-M.
Exhibit 7.3 Water Supply - Baseline status and gaps (short term and long term)
Chi-M is currently in the process of implementing 2 OHTs at Uzhavar Sandhai and Bus stand of 2
Lakh litres each as a short term measure. In addition, as mentioned above, Chi-M intends to
implement a comprehensive water supply scheme in the next 3-5 years.
7.5.3 Baseline status and requirements – short term & long term
Exhibit 7.4 provides details of the water supply infrastructure and the requirements and gaps in the
short, medium and long term after taking into account the interventions mentioned above.
Exhibit 7.4 Water Supply - Baseline status and gaps (short term and long term)
Investment / Project components needed in the short term have already been detailed in section 2.3.2.
The proposed water supply (involving an preliminary estimated outlay of Rs. 15 crore) should be
implemented on priority.
We do not envisage any significant investments subsequently in major components of water supply.
However, we have provided for addition of distribution network (estimated at 13 km) considering the
scope for new roads/layout formation. Chi-M should strive towards 24x7 water supply in the medium
to long term. Given that Chi-M is already targeting 135 LPCD within 5 years, it should aspire for
24x7 supply. This would require comprehensive metering of all HSC connections and implementing
user charges based on consumption. We have provided for investments in metering during 2018-27.
The total outlay and phasing of investments for water supply is given in Exhibit 7.5 below.
Exhibit 7.5 Water Supply - Capital Investment outlay and phasing (Rupees in Lasks)
Exhibit 7.6 provides the service goal/outcomes and reform targets for 2008-12..
Baseline Target
Unit
2007 2012 2017 2027
Service Goals
UGD Network
Availability Yes/no Partial Yes Yes Yes
Exhibit 7.7 presents the list of ongoing and proposed projects of Chi-M in the immediate term.
UGD scheme
An UGD scheme is being proposed for Chi-M at an outlay of Rs. 38.47 crore. The Detailed Project
Report for the same is being prepared by TWAD and the project is currently in technical sanction
stage. The project is to be taken up shortly.
Water bodies and public conveniences
A comprehensive proposal to desilt 13 water bodies involving an outlay of Rs. 185 lakh has been
prepared by Chi-M. As a first step, Chi-M is taking up desilting of 3 water bodies at an outlay of Rs. 9
lakh during the current year.
Exhibit 7.8 provides the baseline status on sanitation and the requirements and gaps in the short,
medium and long term after taking into account the above projects.
Exhibit 7.8 Sanitation- Baseline status and gaps (short term and long term)
There are significant gaps in sanitation in the immediate term and the following actions are required
within the next 5 years.
a) Completion of proposed comprehensive Underground Drainage Scheme
b) Restoration of all identified water bodies in Chidambaram town in a phased manner over the next
5-10 years. A list of water bodies in the town is enclosed in Annexure VII.
The proposed investments in UGD will take care of bulk of the sanitation requirements in the medium
to long term as well. However, additional investments will required to take care of growing
population and increase in road length due to new formations / layouts in extension of sewer length.
We have provided for investments in these areas on a normative basis, depending on the demand gaps
emerging from Exhibit 2.6 above. The restoration of water bodies will continue into the medium term.
Exhibit 7.9 provides a summary of the project components, capital outlay and phasing for sanitation.
Rs. Lakh
2008- 2013- 2018-
CAPEX PLAN AND PHASING 2008 2009 2010 2011 2012 TOTAL
12 17 27
ONGOING / PROPOSED PROJECTS
UGD renovation and upgradation - 1,282 1,282 1,282 - 3,847 3,847
Proposal for desilting water bodies 9 44 44 44 44 185 185
NEW -
Sewer laying in uncoverd areas - 67 34 101
SANITATION 9 1,326 1,326 1,326 44 4,032 67 34 4,133
Exhibit 7.10 provides the service goal/outcomes and reform targets in SWM during 2008-27.
Exhibit 7.10 Solid Waste Management - Service Goals and Reform Targets
Baseline Target
Unit
2007 2012 2017 2027
Collection efficiency % 90% 90% 90% 100%
Door-to-door collection % 100% 100% 100% 100%
Source Segregation % 30% 60% 100% 100%
Scientific disposal % 0 50% 100% 100%
Conservancy fee Yes / no No yes yes yes
Exhibit 7.11 provides the baseline status in solid waste management and the requirements and gaps in
the short, medium and long term. As can be seen, Chi-M has a surplus land available for disposal vis-
à-vis municipal norm of 1 acre per 10000 population (2027).
Exhibit 7.11 Solid Waste Management - Baseline status and gaps (short term and long term)
The gaps in primary collection and secondary collection have been arrived at on a normative basis in
terms of tricycle equivalents for primary collection and tonnage requirement for secondary collection,
based on assumptions relating to waste generation per capita and the no. of trips.
Chi-M is in the process of implementing its solid waste management action plan. Some of the ongoing
/ recently completed projects are detailed below:
a) A Rs. 14 lakh development plan has been outlined for development of Compost yard
b) Most of the equipment available with Chi-M are in good condition. Chi-M has recently procured
10 dumper bins and 33 pushcarts at an outlay of Rs. 10 lakh
7.7.4 Interventions required
a) Completion of ongoing project investments in compost yard and equipment. Chi-M seems
reasonably well placed in terms of managing its solid waste activities in the next 5 years.
b) Development of scientific landfill site at an estimated outlay of Rs. 80 lakh.
Exhibit 7.12 provides a summary of the project components, capital outlay and phasing for Solid
Waste Management in Chidambaram town.
Exhibit 7.13 provides the service goal/outcomes and reform targets for the horizon period.
Exhibit 7.13 Transportation and street lighting - Service Goals and Reform Targets
Baseline Target
Unit
SERVICE LEVEL GOALS AND OUTCOMES 2007 2012 2017 2027
Municipal roads as % of Total Area % 11% 11% 12% 13%
Surfaced roads to Total roads % 87% 100% 100% 100%
Street Lights - Distance between streetlights m 40 30 30 30
Street Lights - Proportion of high power lamps % 19% 25% 30% 30%
Street Lights - Proportion of lights with energy saving devices % 25% 30% 30%
Exhibit 7.14 provides the baseline status and interventions in transportation and street lighting in the
short term and long term.
87 % of the total road network is surfaced. However, there is a need for substantial investment in the
road network even in the short term given the proposed underground sewerage projects in the town.
The key investment components in roads and transportation in Chi-M are listed below:
a) Road upgradation, surfacing and restoration – Chi-M has nearly 64 km of roads and nearly
99% are surfaced roads. About 57 km of roads would need to be restored and upgraded with new
BT surface at an outlay of Rs. 684 lakh. Records provided by Chi-M indicate that there is only 1
km of non-BT roads that need to be upgraded to BT surface at an estimated outlay of Rs. 15 lakh.
b) Road facilities – The gaps in Chi-M with respect to specific road facilities are highlighted in
Exhibit 2.12 above and need to be addressed to meet the service level targets outlined in exhibit
2.11. Overall outlay for road facilities is estimated at Rs. 125 lakh.
c) Bus stand - Chi-M is contemplating to acquire 10 acres of land at an outlay of Rs. 100 lakh on
the periphery for this purpose. The new bus stand complex is estimated to cost Rs. 500 lakh.
7.8.4 Capital outlay and phasing
Exhibit 7.15 provides the details of the capital outlay for transportation and street lighting.
Exhibit 7.15 Transportation and Street lighting - Capital Investment outlay and phasing
In Chidambaram Municipality there are 40 notified slums. As per a presentation made by Chi-M for
funds access under IHSDP, the population of the slums is 40609 with 8223 households.
Exhibit 7.16 gives a snapshot of the service level goals and outcomes of Chi-M with respect to
provision of urban services for the poor
Exhibit 7.16 Urban Services for poor – Service level goals and outcomes
Target
Unit
2012 2017 2027
Road Coverage for slum household % 100% 100% 100%
Sanitation coverage for slum households % 100% 100% 100%
Streetlights % 100% 100% 100%
Pucca houses for all slum households % 100% 100% 100%
Chi-M has taken up a comprehensive proposal for upgradation of 9 slums at an outlay of Rs.417 lakh.
Exhibit 7.17 provides the summary of capital outlay and phasing of investments for provision of
urban services for the poor.
Exhibit 7.17 Urban Services for the poor - Capital outlay and phasing
Exhibit 7.18 provides the summary of interventions, capital outlay and phasing of investments for
provision of other urban service amenities in Chi-M.
Phasing
Segment Proposals 2008- 2013- 2018- Outlay
2008 2009 2010 2011 2012
12 17 27
Existing project - Mat.
Centre renovation @ Rs.
Healthcare
12 lakh. Rs. 10 lakh every
5 years subsequently 12 12 10 20 42
Existing project - 3 schools
Schools @ Rs. 14 lakh. Rs. 2 lakh
per school every 5 years 14 5 19 10 20 49
Other assets
Ongoing project - Rs. 20
Slaugher House
lakh 20 20 20
Rs. 5 lakh per park every
Parks
10 years 6 6 6 6 6 30 30 60 120
Re-development of yatri
Remunerative
nivas 50 50 50
Tourism
TOTAL 32 26 11 6 56 131 50 100 281
Chi-M is in the process of implementing a tourism proposal at an outlay of Rs. 770 lakhs. Details of
the tourism proposal is enclosed below.
Estimated
Sl.No Description of Work amount
Rs. In Lakh
1 Construction of Welcome Arch at 1) North Main road Entrance 2) Sabanayagar 10.00
st Entrance
2 Providing Landscapping at North main road Near Anna Kulam 10.00
3 Providing Hard Shoulder to the following roads. 1) North Main road 2) South car 75.00
street 3) west car street d) venugopal street e) s.p.koil street
4 Providing Ornamental light (160 Nos.) in the following streets. a) North main road 100.00
b) Four car street.c) four sannathi street, d) sabanayagar st,e) venugopal street, f)
railway feeder road
5 Providing Platform and construction of strom water drain in the following streets 120.00
a) venugopal street, b) sabanayagar street, C) Railway feeder road
6 Construction of Public Toilet at South Sannathi st 5.00
7 Improvement to existing 5 Nos.Parks in the town street 15.00
8 Providng High mast light for the following places, a) north sannathi street junction 15.00
b) west sannathi street junction c) bus stand east side
9 Providing dancing sculpture at east sannathi street 5.00
10 Providing to the existing Bus stand building a) provding CC road at bus stand, b) 280.00
construction of modernized toilet at bus stand ,c) Construction of strom water
drain at bus stand, d) providing vehicles parking at bus stand. , e) providing
landscaping at bus stand east side , f) Renovation of existing bus
stand building , g) providing 'KIOSK" (touch screen) at bus stand. h)
improvement existing tourist bunglow
11 Improvements to marriage hall and construction of compound wall, kitchen 35.00
arrangements, toilet facilities, drinking water provisions etc. near tillai kali koil
12 Improvements to the water bodies by providing retaining wall and desilting of 100.00
around the tank etc. roade side park. 1) Thillai kali koil kulam,2)Anna kulam 3)
nagacherry kulam 4)omakulam 5) thatchan kulam 6) gnanprakasam kulam
Total 770.00
CCP cum BP - Chidambaram Municipality 57
Improvements to building assets of healthcare centres and government schools account for an
estimated Rs. 42 lakh, while development of schools is estimated to cost another Rs. 49 lakh. Chi-M
is currently developing a slaughter house that is expected to be complete during this financial year.
There is also a proposal to re-develop the yatri nivas that is currently lying unused.
The critical priority projects to be implemented by Chi-M in the short term (2008-12) are summarized
below in Exhibit 7.19.
Exhibit 7.20 provides a summary of sector wise phasing of investment needs of Chi-M.
A list of project / sector specific technical assistance requirements needed from CMA/TNUISFL is
given below:
1. Development of a comprehensive GIS for the town with updated information on all urban assets
including roads, water supply, sanitation etc.
2. DPR on comprehensive water supply for achieving 135 LPCD water and implementation road
map for 24x7 supply.
3. DPR for solid waste management with focus on scientific disposal and mechanised handling.
4. DPR and assistance in project structuring on PPP of remunerative projects identified in Exhibit 4
above (projects 8,9 and 10 above).
7.11.4 Interventions required from other agencies/departments of GoTN
Specific initiatives required departments and agencies of GoTN (other than Chi-M) are detailed
below:
1. State Highways/National highways – a) Feasibility study and implementation of Bypass / ring
road around Chidambaram, b) traffic and junction improvements on the 10.5 km of roads
maintained by State Highways and National Highway departments.
2. DTCP – Review of master plan for the town and adjoining areas
3. Department of Agriculture / Tamil Nadu State Agriculture Marketing Board – Feasibility
study for setting agri-extension facilities and terminal markets in Chidambaram/adjoining areas.
4. TWAD – Feasibility study for comprehensive water supply and roadmap for 24x7 water supply.
5. Tourism development – Development of tourism amenities in and around Pichavaram lake.
7.11.5 Reform targets
Exhibits 7.21 and 7.24 summarize reform targets and asset management plan for Chi-M respectively.
Baseline Target
FACTOR Unit
2007 2012 2017 2027
WATER SUPPLY
Service Goals
Per capita supply at doorstep LPCD 76 135 135 135
Storage capacity / Total demand % 44% 50% 50% 50%
Distribution network / Road length % 76% 80% 80% 80%
Frequency of supply hours/day 3 4 4 24X7
Reform targets
Current collection efficiency % 54% 75% 90% 90%
House Service Connections / Assessed Properties % 46% 60% 65% 70%
Population per water fountain nos. 129 200 200 200
Implementation of graded / metered tariff Yes / No No Yes Yes Yes
User charge collection - % of O&M plus debt servicing % n.a 60% 100% 100%
This section details the asset management plan for various urban service areas and assets owned by
Chi-M and follows from a review of the asset register of the municipality particularly relating to its
land and buildings and open space areas (such as parks and water bodies).
In the following paragraphs we analyse the information provided to us on land and building assets
available with Chi-M and outline specific observations and suggestions on maintaining and updating
these assets. The Asset Management Plan for core services areas namely Water Supply, Sanitation,
Solid Waste Management and Transportation follows largely from the Capital Investment Plan
outlined in the earlier paragraphs and is outlined below under sections 7.16.2 to 7.16.5 below.
Specific actions relating to asset management and reform steps in these areas are also summarized in
Exhibit 7.24.
Details of information on assets of Chi-M have been compiled and enclosed as Annexures as shown
below:
Annexure VIII – Land details as per Schedule I of asset register
Annexure IX – Building details as per Schedule II of asset register
Exhibit 7.22 and 7.23 summarises the details of land and building assets in Chi-M as shown in
schedule I and II of the asset register of the municipality.
No of Flinth area of
Particulars Buildings Total area Building
Office Building 9 10952 8048
Noon Meal centre 19 1051 1051
Schools 10 10874 3674.77
Basic amenities 22 1683.23 1555.73
Water supply
Public convenience 22 1683.23 1555.73
Social 3 3214 1036
Health 3 3214 1036
Remunerative 7 6121 4428
Markets 3 3755 2532
Meeting hall 1 250 250
Shops 3 2116 1646
Others 6 494.34 494.34
Total 76 34389.57 20287.84
Short term
a) Review and update asset register to reflect the latest status and establish process along with
accountability for updating asset register on a periodic basis.
b) Provide a ward wise report on capital works undertaken online on a quarterly basis.
c) Undertake an independent study to assess loss levels in transmission, storage points and
distribution and develop a roadmap for providing 24x7 water supply.
d) Conduct periodic IEC campaigns on water conservation and rainwater harvesting practices.
e) Review losses and illegal connections and widen the base of house service connections.
Long term
a) Critical asset management and development activities in the medium to long term are listed
below:
b) Implement metering and metering-based-tariff /graded water tariff at household level
c) Implement 24x7 water supply on a pilot basis in select zones / wards and replicate the same in a
phased manner within a ten-year timeframe.
d) Undertake a comprehensive GIS mapping of the water supply network of the town.
7.12.3 Sanitation
a) Create baseline information database on sanitation assets and performance of the municipality.
Establish processes and accountability for periodic updation and dissemination.
b) Conduct IEC campaigns and public consultations to educate citizens on the benefits of
Underground drainage scheme.
c) Ensure adequate upkeep of sanitation assets including public conveniences and storm water drains
through encouraging community level participation and feedback
CCP cum BP - Chidambaram Municipality 62
d) Disseminate information on tariffs a transparent manner and undertake a focused program to
mobilise connection deposits
e) Use a combination of incentives and penalties to encourage timely payment of user charges.
Chi-M should incorporate the sanitation asset details as part of a wider GIS implementation program.
Further, tariffs can be structured on a slab rate structure with property tax assessments as the basis.
Short Long
Medium term
Sl.No ASSET MANAGEMENT / DEVELOPMENTAL ACTIVITIES Responsibility Term Term
2007-12 2013-17 2018-27
WATER SUPPLY
1 Create Baseline information on water supply assets / performance Chi-M
2 Accountability and process for periodic updation / dissemination Chi-M
3 IEC campaigns for water conservation and rainwater harvesting Chi-M
4 Leak detection plan / Losses assessment Chi-M
5 Implementation of usage based / graded tariffs Chi-M
6 Incentives / penalties to encourage timely payment of water charges Chi-M/CMA
7 GIS mapping of water supply assets/connections Chi-M/CMA/TWAD
8 Roadmap for 24x7 water supply TWAD / Chi-M
9 Metering at household level and usage based tariffs TWAD / Chi-M
10 Piloting 24x7 water supply TWAD / Chi-M
11 Implementation of 24x7 water supply TWAD / Chi-M
SANITATION
1 Create Baseline information on sanitation assets / performance Chi-M
2 Accountability and process for periodic updation / dissemination Chi-M
3 IEC campaigns and public consultations on UGD benefits Chi-M
4 Mobilisation of public deposits Chi-M
5 Initiate and encourage Community participation for upkeep of sanitation assets Chi-M
6 Incentives / penalties to encourage timely payment of water charges Chi-M/CMA `
7 Implementation of graded tariffs Chi-M
8 GIS mapping of sanitation assets/connections Chi-M/CMA/TWAD
SOLID WASTE MANAGEMENT
1 IEC activities Chi-M
2 Review and updation of SWM action plan / Preparation of DPR Chi-M/CMA
3 Door to Door Collection Chi-M
4 Source Segregation Chi-M
5 Identified transfer / collection points Chi-M
6 Sychronisation of primary/secondary collection Chi-M
7 Conservancy fee for primary collection Chi-M
Interventions requiring technical assistance/support in DPR preparation are shaded in the table above
8.1.2 Sanitation
Sector Sanitation
Project Description Implementation of Underground Drainage (UGD) Scheme
Project Status Sanctioning and appraisal
Need for the Chi-M has a old UGD scheme covering only parts of the town. In view of the
project poor sanitation conditions and to address uncovered areas in the town, a new
comprehensive UGD scheme is being developed.
Technical The DPR for the project has already been prepared.
assistance
Project Cost Rs. 3847 lakh
Revenue impact Chi-M intends to levy user charges for connections and mobilise public deposits
to part finance the project
Sector Sanitation
Project Description Desilting and restoration of water bodies
Project Status Sanctioning and appraisal
Need for the Chi-M has identified 10 water bodies in the town that need to be desilted and
project rehabilitated.
Project Cost Rs. 185 lakh
Revenue impact Non-remunerative project
Financing mix Given the size of the project and the non-remunerative of the project proposals,
implementation of the project would require significant grant support.
Remarks There is a need for a clear O&M strategy involving local community participation
at the project implementation stage itself.
ESA analysis and E1 – Project could have major environmental impacts thus necessitating
tentative rating Environmental Assessment Reports (EAR),
S1 or S2 – is likely to have PAPs and hence need fairly detailed assessment.
Sector Transportation
Project Description Development of new bus stand complex
Project Status Concept stage
Need for the Existing bus stand is in the town area which is very congested and leads to lot of
project traffic problems. The proposal is to develop a new bus stand in the periphery of
the town and convert the existing bus stand into a town bus stand.
Project Cost Rs. 600 lakh
Revenue impact Remunerative project. Can be implemented on PPP mode with upfront deposits
from potential commercial establishments and revenue share from private
developer.
Financing mix Combination of loans (30%), grant (50%) and private capital
Remarks Considering that a ring road / bypass is also being planned for the town, the bus
stand could be planned along with this to facilitate orderly development.
ESA analysis and E2 -Expected to have only moderate environmental issues. Mostly generic
tentative rating impacts in nature
S3 - No social issues expected. Hence socially benign no social mitigation
measures required, need to submit SSR
Tamil Nadu is considered a pioneer in the area of urban reforms. Tamil Nadu has constituted three
successive State Finance Commissions for improving resources of local bodies and devolution of
funds from the State to Urban Local Bodies and has conducted three successive elections to Urban
Local Bodies on due dates. Apart from this, other key reform initiatives undertaken by Tamil Nadu in
the urban sector are given below
1. Reduction in stamp duty on transfer of property from 15 to 8 percent.
2. Implementation of accrual accounting system in all Urban local bodies
3. Introduction of modified area based property tax system
4. Computerization of sub-registrar’s offices
5. Repeal of the Land Ceiling Act, while a reformed Rent Control Act is being considered
6. Commitment to levy user charges and improvement in collections for water and sanitation
services.
7. Creation of TNUDF to provide access to capital markets in a non-guarantee mode.
Apart from setting in motion a process for financial devolution through creation of SFC, Tamil Nadu
has also moved a fair bit towards delegating a number of functions to the ULBs. The 12 th Schedule of
the Constitution provides for 18 functions to be undertaken by ULBs.
1. Urban planning, including town planning;
2. Regulation of land-use and construction of buildings;
3. Planning for economic and social development;
4. Provision of roads and bridges;
5. Provision of water supply for domestic, industrial, and commercial purposes;
6. Provision of public health, sanitation conservancy, and solid waste management;
7. Provision of fire services;
8. Promotion of urban forestry, protection of the environment, and promotion of ecology;
9. Safeguarding of the interests of weaker sections of society, including the handicapped and
mentally retarded;
10. Slum improvement and upgrading;
11. Urban poverty reduction;
12. Provision of urban amenities and facilities such as parks, gardens, and playgrounds
13. Provision of cultural, educational and aesthetic aspects
14. Provision of burials and burial grounds, and cremations, cremation grounds, and electric
crematoriums;
15. Provision of cattle pounds, and prevention of cruelty to animals
16. Recording of vital statistics including registration of births and deaths
While not mandatory, the provisions direct state governments to decide the powers and functions to
be devolved to local bodies. Tamil Nadu has delegated functions 2 to 6 and 8 to 18 to ULBs 4. Though
Urban Planning as a function is vested with the Department of Town and county planning, both the
political and administrative heads namely the Chairman and the commissioner are typically involved
in the process of preparing master plans.
As observed above, GoTN has ushered in a number of reforms in the urban sector. However, there is a
need to persist with this direction. The stage is set for the state to usher in a set of second generation
reform that furthers the vision of the 74th Constitutional amendment in empowering and strengthening
local governance. In this regard, we have outlined below a set of possible reform areas and
interventions below:
1. Implement recommendations of the Third State Finance Commission – The
recommendations relating to the revenue buoyancy of the ULBs including property tax reform
and devolution income and transfer are particularly critical for the financial stability of the ULBs
and need to implemented on priority.
2. Maintain reasonable stability of tenure of key officials – We recommend that except for
extraordinary circumstances, there should be a minimum tenure of at least 2 years for all the key
positions including Commissioner, Municipal Engineer, Manager, Town Planning Inspector,
Sanitary and public health head and Accountant. Further, guidelines need to be clarified and
enforced for formal charge handover whenever there is a transfer of officials to ensure continuity
of city level vision, projects and streamlined service delivery.
3. Carry out an Independent assessment of skill gaps and manpower needs of Chi-M - There is
a need for an independent review of the skill requirements in various grades of municipal bodies
to ascertain the appropriate manpower plan in terms of skill sets and experience/seniority. This is
particularly relevant given the recent developments and the growing service delivery expectations
in the urban sector specifically in urban planning, municipal accounting and systems, e-
governance and modern practices in infrastructure service delivery including potential for public-
private partnerships.
4. Address critical operational areas through focused training and capacity building
interventions - Three areas stand out in terms of criticality and the need for significant training
interventions. These include:
4
Source: Local Governments Finances and Bond Markets. ADB. 2003
CCP cum BP - Chidambaram Municipality 70
Engineering and project development – A number of new grant and loan schemes (both
central and state) including the UIDSSMT are available for ULBs to tap into for meeting
their asset creation requirements. However, there seems to be very little understanding of the
scope and potential of using these schemes for implementing local level projects. GoTN and
CMA should conduct periodic training and awareness programs for senior management
personnel including Commissioners, Managers and Engineering staff. This would enable
them work towards developing projects that can leverage such schemes. Agencies like
TNUIFSL and TUFIDCO should also take the lead in organising such awareness programs.
Accounting and Finance – Though accrual accounting has been implemented in Chi-M and
is under operation for more than 5 years. Computerised Financial and Administrative
systems are in place or are in various stage of implementation/upgradation. There is a
therefore a need for continued emphasis on training to bring the accounting and finance staff
upto speed on these developments.
Use of CAD/GIS applications in Town Planning/Engineering – Town planning and
engineering officials in Chi-M were provided training in CAD and GIS as part of the
USAID-ICMA organised City Links initiative in Chidambaram town. As part of the USAID
program, a GIS map for the town was developed. CMA and GoTN should initiate a state-
wide program to train Town planning and engineering staff on CAD and GIS applications.
Overall, revenue declined by 6% while expenditure declined by about 10% during FY 03-06. The
revenue decline appears to be on account of decrease in devolution fund and assigned revenue, even
though own income of the municipality has shown an increase of 5%. Most of the expenditure heads
have shown a decline particularly, Salaries and finance charges. Current collection efficiencies in
property tax and water user charges are abysmally low at 50% and 54 % respectively.
Chi-M’s ability to improve on its financial performance hinges primarily on its ability to sustain and
improve on the revenue growth noticeable in recent years. While there is potential for expenditure
control in certain areas (as in the case of energy costs), the focus of cost management should be to
shift expenditure from administration to better asset management and O&M. The following
paragraphs outline select interventions for improvement of financial and operating performance.
Property tax
Specific recommendations for improving property tax revenue and collections are detailed below.
Recommendations in bold are actions that can be implemented immediately by the municipality
without any significant investment and can enable the municipality to show immediate results
Professional Tax
Professional tax has grown at 6% over the last four years and is becoming an important revenue
stream. It is also a visible revenue stream and hence collection efficiency (especially on current
demand) should be higher than the 78% that was achieved in FY 2007. In this regard,
31. Chi-M should focus on widening its professional tax base by bringing more traders and
independent professionals within the ambit of professional tax. Specifically, Chi-M should
consider tapping into databases of potential professional tax assesses including
Professional associations including Institute of Chartered Accountants of India (ICAI), the Bar
Council, Medical Council etc.
Commercial Taxes Department, GoTN to get details of sales tax registrations (existing and
new) within Chi-M.
32. A Targeted approach should be followed to widen the tax base for professional tax. In
particular, the municipality should focus on gathering information on the following groups that
could potentially add to the professional tax assessment base including the following:
User charges
With the commissioning of the new UGD system and recent implementation of the Combined Water
supply scheme, user charges would need increased monitoring and follow-up given their potential to
contribute to Chi-M’s revenue. Specifically Chi-M should
33. Increase penetration of connections for water supply. As of FY 2006, Chi-M has about 5400
connections, which accounts for only 46% of the properties assessed. Chi-M should target to
increase this to at least 60 % in the next 5 years progressively going up to 70% in the next
decade.
34. Providing water fountains only in areas with a predominantly low income population to minimise
revenue loss.
35. Improve revenue per connection through implementation of either a graded water tariff scheme
(as is being considered by CMA, GoTN) or a metering based tariff. While the metering based
system would a better system in principle (charges on the basis of usage) and in terms of
incentivising water conservation, ULBs have faced resistance in implementation of metered tariffs.
Chi-M could also consider implementation of meter based tariffs through involvement of Self Help
Groups as meter readers.
36. Adopt measures to improve collection efficiency. Overall collection efficiency at 54% needs to be
improved. CHI-M should consider stiff penalties for non-payment of user charges. Specifically
CHI-M should consider implementation of late payment fines and in case of extreme overdue
situations, disconnecting supply.
Well-structured PPPs apart from relieving ULBs of some investment burden could also be a potential
revenue enhancement option, particularly in structuring remunerative projects. In particular, Chi-M
could
37. Develop its proposed remunerative projects namely, a) re-development of markets through
private participation.
38. Actively encourage corporate / NGO partnerships for city beautification projects including bus
stops, street lighting, parks
Chi-M needs to take steps to address its power costs which have shown a steep increase over the last
three years. The following steps are needed in this direction:
39. Chi-M should conduct a comprehensive energy audit to identify areas for reducing power
consumption and related costs.
40. Chi-M should implement automatic time based dimmers on street light network and ensure that all
pumps / motors are energy efficient.
41. Chi-M indicated that leakages in its water supply network are in the region of 25-30%, which adds
to overall cost of service delivery. A focused study is needed to assess the level of leakages and
to recommend measures to minimise the same.
10.1 Financial and Operating Plan (FoP)– time horizon, basis and assumptions
10.1.1 Time-horizon
The FOP has been prepared for a 20-year period i.e., FY 2008-2027.
Exhibit 10.1 provides the population projections that form the basis of developing the Capital
Investments and other revenue and cost projections for the municipality.
Baseline Projected
Unit
2007 2012 2017 2027
Population nos 60830 62302 63452 65275
Households nos 10542 12460 12690 13055
Slum population nos 17102 17102 17102 17102
Slum households nos 3954 3954 3954 3954
Assessed Properties nos 12220 13083 13960 15013
Road length km 75 75 85 92
10.1.3 Revenues
Exhibit 10.2 provides details of the assumptions for projecting revenues for Chidambaram
10.1.4 Expenditure
Exhibit 10.3 provides details of the assumptions for projecting expenditures for Chidambaram
10.1.5 Assets
The addition to assets is as per the Capital Investment Plan given below
The Financial and Operating Plan allows for 3 types of loan – short, medium and long term. The
assumptions relating to loans are given below:
We have arrived at the borrowing capacity based on the Income and expenditure projections including
debt servicing of existing loans as of FY ending 2005. We have arrived at the borrowing capacity of
Chidambaram as the minimum of
NPV of 30% of revenue projections and
NPV of 50% of operating Surplus projections.
10.3 Possible financing mix for achieving full investments
Based on these criteria, the borrowing capacity of Chidambaram works out to Rs. 3891 lakh. At an
aggregate level, assuming loans to be equivalent to 50% of investment, sustainable investment
capacity works out to Rs.7782 lakh, which translates to only 52 % of the total investment
requirement (including slum rehabilitation). Even with financial improvements, Chidambaram would
require significant grant financing to meet its investment requirements in full.
10.4.1 Projections
Exhibit 10.6 below provides a summary of the financial projections for 10 years. As can be seen, Chi-
M’s revenues could potentially go up to Rs. 1323 lakh by 2012 and Rs. 1780 lakh by 2017.
Actual Projections
Income 2006 2007 2008 2009 2010 2011 2012 2012 2014 2015 2016 2017
Own income 289 305 357 366 376 669 850 916 972 1,034 1,155 1,064
Property Tax 120 137 178 179 180 181 182 248 249 250 251 252
Profession Tax 13 5 6 6 6 6 6 8 8 9 9 9
Water Charges - - - - - 153 217 181 218 238 315 237
Sewerage Charges - - - - - 129 236 259 266 295 327 299
10.4.2 Summary
Exhibit 10.7 below provides a summary of the results of the Financial and Operating Plan.